MDN September Issue

C or ion Pl at for m . A l at . D av i d Ang a . T he o L aw s on . AFRIFF

MARKET DIGEST FINANCE & LIFESTYLE

N IG E R IA

VOL 2 No 2

www.marketdigestng.com Nigeria’s Troubling Rising Debt Profile Nigeria’s rising debt servicing costs in relations to the government’s dwindling revenue Telecom contributes N1.54trn to GDP the telecommunications sector contributed 9.5 percent to the GDP in the second quarter of the year Major Economies Move To Ban Petrol Engines As Nigeria’s regional groups struggle to control oil revenue the West is moving towards a new source of energy

THE ROAD TO RECOVERY Nigeria’s Difficult Long Road To Economic Recovery After Its Worst Recession In More Than Two Decades

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Interview with

Chioma Ude

Founder AFRIFF

49

Q&A with

Ida Froyda

Head of communications and marketing

Corion platform

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Interview with

Actor, film director David Anga CONTENT REGULARS

51

Editors Letter Tech/mobile News 17 Economic News 25 Finance News 35 Lifestyle News 42 Events 43

FEATURES

Leading the digital transformation of banking Alat’s technology disruption 15

Luxury living 53 Fashion

Neck tie 55

Automobile

10 Electric Vehicles with the best range in 2017 57

Interview with

Theo Lawson

Nigerian regional groups move for oil control as major economies move to ban petrol engines 61 The road to recovery

Bank Lending and the jobless recovery 67

Founder Total Consult Ltd

79

Top 9 free things to do in Osaka Japan 76 Nigeria’s troubling rising debt profile 81

Uncovering misleading government unemployment strategies A macro alternative reality 85

Banks rising non-performing bad energy loans 88

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www.marketdigestng.com

News at your fingertips.....Anytime....Allday. .....Anywhere in the world.

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EDITOR’S NOTE Dear reader,

T

he struggle has been long and arduous. But gazing across the battered businesses and high levels of unemployment, it is time to declare that the fight against financial chaos and inflation is won.

According to the NBS, in the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55% (year-on-year) in real terms, indicating the emergence of the economy from recession after five consecutive quarters of contraction since Q1 2016. But one only needs to look at the roller-coaster ride of the Nigerian stocks and other economic indicators to see why there is still much worry over the economy, despite the report that Nigeria is officially out of recession. This worry and uncertainty has lead many banks to “sit on a pile of cash,” unwilling or unable to justify capital spending until economic conditions become more clear.

Over the last year-and-a-half, unemployment and government belt-tightening have being rife in Nigeria-the result of attempting to gain control over the potentially crippling debt obligations and Naira fall. The recession lasted from Q1 2016 to Q3 2017 a mere 19 months about average, as recessions go. Yet the trauma feels deep and lasting, that may be because so many disruptions have upended national life at once. A lot of Nigerians have lost their jobs, nearly every state faces a budget shortfall, and hundreds of businesses have shut their doors.

The young are unemployed, living at their parents’ home. Tribal and religious groups seeking for secession have proliferated, and national leaders of the major political parties have seen their support decline.

Of course, times of flux are often times of anxiety and unrest. But as the economy begins its slow and stuttering recovery, the vast changes wrought by this recession will continue to reverberate for many years in ways predictable and otherwise.

Politically, we are not going to differ from the consensus forecast in these matters. But we are more convinced that President Buhari will be able to implement a large part of his economic agenda at least till 2019.

So far, the reaction of the Naira and the financial markets has been in anticipation of meaningful moves by the current tenant at Aso Rock.

From the corporate end, the future is very uncertain, but this much is clear: Companies will need to develop and deliver greater value, a more complete experience, and deeper emotional engagement. Customers will demand it, and they’ll penalize harshly those that are unable or unwilling to deliver it. We better be ready for it.

Enjoy and thanks for reading!

With warmest thanks, Esele Walter Odion EXECUTIVE EDITOR

EXECUTIVE EDITOR Esele Walter Odion MANAGING EDITOR Ailsa Callum FINANCE MANAGER Muhammad Asoloko CREATIVE DIRECTOR MDN Graphics ADVERTISING MANAGER Ade Kayode BUSINESS DEVELOPMENT Amanda Akah DISTRIBUTION Tunde Balogun For advertising opportunities Please contact +234(0) 705 957 0580 Market Digest Nigeria magazine is published four times yearly.

Unauthorized reproduction is strictlyforbidden.

Printed by Market Digest Nigeria Publishing. www.marketdigestng.com MARKET DIGEST NIGERIA 13

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Leading the Digital Transformation of Banking ALAT’s Technology disruption

Imagine a scenario where a bank offers their services digitally, not as an ad hoc feature but as a fully integrated mobile experience. A digital-only bank that allows customers to do everything on their smartphones, from opening a new account to making payments, settling credit card bills to resolving disputes, all without having to go to a physical branch. If this sounds premature, then perhaps it is time to update your view of what’s happening worldwide and currently in Nigeria, thanks to Wema’s recently launched ALAT. bank in Nigeria, Wema Bank Plc. has over the years, diligently offered a fully-fledged range of value-adding banking and financial advisory services to the Nigerian public. In 2009, the Bank underwent a strategic repositioning exercise spearheaded by a new management team that has seen its profile rise considerably.

In an interview with Emma Okonji, The Chief Digital Officer of ALAT by Wema Bank, Mr. Dele Adeyinka, said that Wema Bank is currently the only surviving L-R: Dele Adeyinka, Chief Digital Officer, ALAT by Wema; Yinka Asekun, Chairman, Board of Directors, indigenous bank in Nigeria that Wema Bank Plc; Segun Oloketuyi, MD/CEO, Wema Bank Plc; and Demola Adebise, Deputy Managing Director, Wema Bank Plc; at the launch of ALAT powered by Wema Bank, held in Lagos. has been doing retail financial business. “Technology has helped lat is the hottest player in the challenger banking space; it is the us this far to do effective retail first of its kind in Nigeria, joining a brave new cadre of disruptors, financial business since 1945 and which have cast aside the branch and manager in favor of hyper-inwe are leveraging the ALAT app tuitive apps and superior transparency. Rather than a street to street to further digitize the operations physical presence, these digital-only providers aim to take advantage of of the bank that will bring about the increasing popularity of mobile and online banking by providing digital disruption in the banking their customers with what Tandem bank describes as a “slick, intuitive sector” he said. mobile and web experience.” Mobile banking and the new digital only banks are saving their customers billions of pounds a year in charges Oloketuyi said Wema Bank is claims a new report. Money transfer service Azimo carried out a survey happy to power ALAT as the first of more than 4,000 people across both the UK and Europe and found Digital Bank in Nigeria, adding that the Brits who have moved over to mobile and Internet banking are that the bank is committed to saving themselves £7 billion every year. This was obviously what the satisfying its present and prospecmanagement of Wema bank who are more client-centric, tech-savvy, tive customers by offering them and inclusive had in mind with the Introduction of Alat. an optimal banking experience

A

ALAT’S LAUNCH The Managing Director/Chief Executive Officer of Wema Bank Plc, Mr. Segun Oloketuyi, announced the launch of Alat, Nigeria’s first digital bank in a launch event at the Eko Hotel and Suites, Lagos on Tuesday 2 May 2017 to commemorate the 72nd anniversary of the lender, which is widely reputed as the longest surviving and most resilient indigenous 14 MARKET DIGEST NIGERIA

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through innovative digital technology. Mr. Segun Oloketuyi, also said the lender is eyeing three million customers through ALAT. According to him “ALAT is the bank for the future and it redefines the seamless relationship we have with our customers. This is an

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Native offering to the young professionals, entrepreneurs and students who are tech savvy and always on the move. It is an opportunity to integrate banking into their lifestyle without hassles, by offering them real value, as they desire, “he said.

So far customer responses have been very encouraging, and customers are currently migrating to the new digitized app. According Mr. Dele Adeyinka “In less than two weeks that the app was launched, we have had over 10,000 customers using the app”.

scription) and forget about them.

With ALAT, new debit card can be activated online, and customers can also programme their debit cards to function in countries they wish to travel to, that is outside Nigeria and this could be done online on the ALAT platform, without visiting the bank. Card control among various payment channels within Nigeria can be done online with the ALAT app.

Another unique feature of the app is that it comes with a 10% interest rate per annum on the customers’ savings. In the financial industry in Nigeria, banks give 3% interest on savings. It also saves customers time with a WHAT IS ALAT? simple account opening process that takes less than five minutes, it also delivers a free debit card you can actiAlat is a digital banking service powered by Wema vate, lock and unlock from your phone to you anywhere Bank Nigeria, which allows you to do all your in Nigeria. banking transactions without being physically present at a bank. The ALAT app also helps cusHOW TO OPEN AN ALAT ACCOUNT tomers to manage their finances better and even offering an incentive on its savings platform. It You can open an ALAT account easily from your phone. offers a simple onboarding process without the Install ALAT from the Apple App Store or the Google hassles of filling forms, huge interest on savings, in-app card services (card request, activation and Play Store, it is also available on the web for Blackberry control) ability to schedule recurring transfers and and Window’s phone users. Open the app and sign up with your Bank Verification Number and a valid phone bill payments as well as seamless profile settings.

All these made possible by an automated Back-of- number. Thereafter, you will need to upload a photo fice processes including a 24-hour state-of-the-art of a valid means of identification (a government-apContact Centre, automated Know Your Customer proved ID card), a photo of a utility bill (not older than 3 months) and your passport photograph.

(KYC) process, automated card production and delivery as well as automated Settlement and Rec- Your account will be activated as soon as the ALAT team verifies your documents and address, usually in onciliation processes.

While ALAT is driven by smartphones, it is not a 24 hours. In the meantime, you can put money in your digital product. It is Nigeria’s first fully functional ALAT account but you can’t spend from it. Your ALAT digital bank that totally eliminates the need to visit account number will be emailed to you. It will also be displayed on your dashboard each time you log in to a physical branch. ALAT digital bank allows you to open fully functional savings account using just ALAT. Account holders can instantly fund their account your BVN and phone number in exactly 5mins. It using any existing local or international debit/credit card is targeting all existing and prospective customers you may have, in-app. No branch/ATM visits necessary. who are tech-savvy. No paperwork required ALAT Debit cards are delivered to an account holder’s address in two business days, anywhere in Nigeria, at no cost. is selling simplicity, reliability and convenience

UNIQUE FEATURES ALAT comes with an automatic transaction, when a customer makes the first monthly bill payment on the platform and saves it for subsequent transactions, the app automatically performs the function in the subsequent month, without further command. Holders of ALAT account can also schedule frequent transfers (e.g. salaries or children’s school stipend) and bills (e.g. DSTV subMARKET DIGEST NIGERIA 15

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News

TECH/MOBILE

Telecom contributes N1.54trn to GDP

In a report by Florence Onuegbu, The telecommunications sector contributed N1.54 trillion to Nigeria’s Gross Domestic Product (GDP) in the second quarter of 2017. Prof. Umar Danbatta, Executive Vice-Chairman of Nigerian Communications Commission (NCC) said that the figure was derived from recently released Bureau of Statistics’ report on the economy. Danbatta unveiled the figure disclosed when he received the visiting Chairperson of Liberia Telecommunications Authority (LTA), Madam Angelique Weeks in Abuja. The National Bureau of Statistics (NBS) in its second quarter Gross Domestic Product GDP report had on August 29th announced Nigeria’s exit from recession after it slumped early 2016. He said the figure showed that the telecommunications sector contributed 9.5 per cent to the GDP in the second quarter of the year.

According to him, the figure represents a 6.68 per cent increase from the first quarter’s contribution of N1.45 trillion. “We are very proud of the remarkable contributions the sector is making. “Even in the recent times when the whole economy was facing challenges, the sector has remained resilient and stable,” the NCC boss said in a statement. On data usage, Danbatta noted a remarkable increase in the usage of data by Nigerians at a monthly usage of about 40 million terabytes. He said the country would undergo a massive ICT transformation by the time the excess data capacity at landing point in Lagos was deployed to the hinterland through licensing of Infrastructure Companies (InfraCos).

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NITDA, computer makers to open service centers in Nigeria Computer makers under the umbrella of Certified Computer Manufacturers Association of Nigeria are working in collaboration with the National Information Technology Development Agency to roll out service centers nationwide. This was one of the resolutions reached at a meeting NITDA held with Original Equipment Manufacturers, NITDA spokesperson, Uwa Suleiman, said in a statement issued in Abuja.

The centres, which will cater for after-sales services, support, maintenance and needs of patrons of locally made IT products, are expected to begin operations in major cities of Nigeria from October 2017. Suleiman said the meeting was in furtherance of the implementation of the Executive Order no 003 – Support for Local Content in Procurement by Ministries, Departments and Agencies of Federal Government of Nigeria-recently issued by the Federal Government. She said the meeting was convened to, among others, strengthen partnerships and discuss strategies that would ensure the required quality was upheld in manufacturing practices and to discuss areas of collaboration for increased and sustained patronage of indigenous IT products and services.

Photo Credit: NAICOM.ng.

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News

Apple, Studios May Upend The Way We Watch Movies

I

n a report by Elaine Low and Reinhardt Krause, Apple is in talks with major Hollywood studios to sell digital downloads of films as soon as two weeks after they debut in theaters, according to a Bloomberg report. Warner Bros., Universal Pictures and other studios are in talks with the consumer tech behemoth and cable giant Comcast to offer rentals as soon as two weeks after new releases hit theaters, without the blessing of theater chains. Studios and exhibitors had previously discussed splitting revenue from such an agreement, but sources told the outlet that theater operators wanted as much as a 10-year agreement to a revenue split, to which the studios were unwilling to commit Now, Hollywood studios could ink a distribution deal with Apple and Comcast as soon as early next year, forcing cinemas to get on board or be left behind. Exhibitors could retaliate by choosing not to show those movies on the big

screen at all.

Apple is said to be in the most serious talks with Warner and Comcast’s Universal Pictures. AT&T is seeking approval to buy Warner Bros. parent Time Warner. Walt Disney is reportedly not interested in the premium video-on-demand model. On the media heavyweight’s earnings call last week, Chief Executive Bob Iger said Disney’s newly announced standalone streaming service, which will so far feature Disney and Pixar movies, would offer customers the chance to buy, download-toown or download-to-rent Disney movies “in the window prior to pay, which used to be called the home video window.” “We’re not planning to put our movie, to use this service to encroach on a theatrical window, if that’s what you’re asking,” he told an analyst.

That news rattled both Disney and Netflix shares the following day.

Bloomberg sources said the new Disney streaming service has put

‘‘AT&T is seeking approval to buy Warner Bros.’’ more pressure on theater chains to reach an agreement with studios.

If premium video-on-demand becomes a reality, what could viewers expect? A $50 product that offers digital rentals about 17 days after a movie’s theatrical release or a $30 product that offers new titles four to six weeks after their debut in theaters, sources told the outlet, though the terms reportedly vary between each studio and theater chain. DirecTV, now owned by AT&T (T), tried a similar offering in 2011, but consumers didn’t rush to buy the early release movies for viewing in living rooms.

Photo Credit: Marke Jones Lib.

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News

Women say they quit Google because of racial discrimination: ‘I was invisible’

As Google reels from the fallout over a controversial diversity memo, multiple women say they faced regular discrimination and ultimately left. notoriously strict confidentiality policies, which some say are used to intimidate and silence critics, several former and current employees spoke in interviews about the ways in which they believe minorities, particularly women of color, are denied opportunities and equal pay. They described a culture that tolerates racism and sexism, where white male managers frequently support and promote employees who look like themselves.

google-campus-hq-headquarters-home-offices. Photo Credit: google.com

I

n a report by Sam Levin for The Guardian, U.K., Qichen Zhang couldn’t believe what she was hearing.

The technical specialist was in the middle of the office at Google when a white male colleague began joking with her about her hiring. “He said, ‘It must’ve been really easy for you to get your job because you’re an Asian woman and people assume you’re good at math,’” Zhang recalled in a recent interview. “It was absolutely stunning. I remember me just emotionally shutting down.”

The conversation was one of many instances where Zhang said she felt isolated as a woman of color working for the technology giant, and a few months later, feeling like there was no future for her at Google, she quit. “I didn’t see a lot of women, especially Asian women, black women or other women of color in the executive ranks,” she said. “I didn’t see any opportunities for myself …the culture there is really discouraging, and that’s ultimately why I left.” Zhang spoke with the Guardian days after a white male engineer at Google sparked an international uproar with a memo criticizing diversity initiatives, arguing that white men are victims of discrimination and that women are underrepresented in tech because they are biologically less suited to engineering and leadership positions.

More women have since come forward with stories of sexism at Google, and now, people of color are sharing accounts of racial discrimination at the corporation, which has a predominantly white and male workforce, much like the rest of Silicon Valley. Despite Google’s

Qichen Zhang outside her home in Brooklyn. She quit working for Google in 2014. Photograph- Tim Knox for the Guardian

‘I didn’t belong’

Concerns about discrimination at Google have escalated this year following the US Department of Labor’s allegations that women across the company are paid less than men for similar work, in violation of federal law. Google has vehemently denied that it underpays women. The recent memo – which argued that women’s high rates of “neuroticism” and “agreeableness” make them less qualified for tech jobs has further exposed a mentality that some say is common among conservative white men in tech who believe affirmative action and gender equality initiatives are bad for businesses (despite research showing the opposite). James Damore, the author, was fired, turning him into an overnight hero to the “alt-right”.>>>

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News At Google, men occupy 80% of tech jobs and 75% of leadership roles; according to the company’s own figures. Overall, only 2% of employees are black, 4% are Hispanic, 35% Asian and 56% white. The company has touted its recent 1% increases in a number of underrepresented groups. Asked about the slow pace of progress, Yolanda Mangolini, Google’s director of global diversity and inclusion, said in an interview that “change takes time”, adding: “We know that it’s not just about recruiting a diverse workforce. It’s about creating an environment where they want to stay.”

for people of color: “They didn’t like the way you’re prioritizing diversity, because that’s not your role.” The woman said that her time serving on a hiring committee was particularly disheartening. Committees of mostly white hiring managers would complain that a candidate lacked “Googliness”, meaning they believed an applicant might not be a good match for the company culture, she said. “It seems like we are interviewing people to fit in with white people, and not to interview everyone to make sure they are culturally competent.” “When you speak up, you’re going to be negatively impacted,” she said. “It was almost like you had to compromise on your values and morals.”

People had this concept of ‘racism doesn’t exist at Google’

Yolanda Mangolini, Google’s director of global diversity. Photograph- Weinberg-Clark Photography

One black woman who worked as a specialist at Google for several years told the Guardian that discrimination and prejudice impacted her job on a daily basis. “I felt like I didn’t belong nor did anybody want me to belong,” said the woman, who requested anonymity for fear of retaliation by Google. The former employee, who said she was the only black woman on her team, noted that employees would frequently ask to see her identification throughout the Google campus while non-black workers were rarely questioned. She said she also overheard racist jokes on multiple occasions and that she immediately felt left out at the workplace – excluded from emails and social events and working alongside colleagues who didn’t bother to learn her name. The woman said that her efforts to advocate for diversity further took a toll on her. The company seemed primarily interested in PR and positive branding when it came to diversity initiatives, which made it difficult to push for more substantive reforms.

She felt she was negatively judged for her advocacy

Zhang, a Harvard graduate, said she was thrilled to get a job at Google in 2013, noting that she loved the “don’t be evil” motto and its reputation as a “politically progressive” company “using technology to improve the world”, she said. “Everybody wants to work at Google.” While initially enamored, she quickly felt “disposable” and unappreciated as a specialist who was not an engineer – a feeling made worse by the fact that most engineers and their managers were men.

She recalled one meeting where she said she was the

“It seems like we are interviewing people to fit in with white people,” only woman, surrounded by white male engineers, who excluded her from the discussion. “It’s just these little daily aggressions that really add up over time,” she said. “Having a lack of people who look like you in general is demoralizing.” The culture at Google promoted the idea of the “meritocracy”, meaning discrimination is no longer a problem and that women struggling to get promotions should simply work harder and advocate more loudly, said Zhang. “People had this broad concept of ‘racism doesn’t exist at Google and sexism doesn’t exist at Google’,” she said. “Just because your officemates aren’t saying racial slurs out loud doesn’t mean they’re not racist.”

Zhang added: “They care about getting good press, but they don’t actually want to put in the work to understand racism and sexism.”

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News

Zuckerberg-and-Lola. Picture Credit:lolo-omolola

Facebook’s Mark Zuckerberg Praises Nigerian Woman For Million-Plus Facebook Support Group In a report by Conor Gaffey, Facebook founder Mark Zuckerberg has given a shout out to a U.S.-based Nigerian woman who is the administrator of a support network for women with more than 1 million members. Zuckerberg met with Lola Omolola, who is based in Chicago, and praised her work in a message on Tuesday about Female IN (FIN), a secret Facebook group run by Omolola. “It’s a no-judgement space where more than a million women come to talk about everything from marriage and sex to health issues and work problems and it’s helping end the culture of silence that exists for women in some parts of the world,” said Zuckerberg. The Facebook founder, who visited Nigeria in 2016, said that he looked forward to “meeting more admins like Lola” at the first Facebook Communities Summit, which is due to take place in Chicago later in June. Zuckerberg said the summit would serve to help founders like Lola “do even more to build community.”

Omolola replied to Zuckerberg’s post, describing herself as an “ordinary woman from modest means” and saying that Zuckerberg’s platform had helped her “create the world I wish to live in and have my eight and 10-year-old inherit.” Set up two years ago and originally named Females In Nigeria, FIN is a secret group, meaning that only group members known as FINsters can invite a new member to join. In a public video posted on the FIN Facebook page, Omolola said that the group was established as a “way to disrupt the status quo and change the landscape” in communities where women’s voices are not heard. “I come from a community where lots of the time women have a lot to

say, but we have been conditioned and we have been raised to keep silent, because someone is going to get embarrassed by something we say,” says Omolola in the video interview with Facebook’s diversity director, Maxine Williams. Nigeria’s constitution prohibits discrimination on the basis of gender, but women in the West African country face a variety of problems, including fewer economic opportunities, domestic violence and a high maternal mortality rate in part caused by a lack of access to healthcare among women. Nigeria is a highly religious country, split between a mainly Muslim north and largely Christian south, which can be a source of discrimination against women: the country’s top Muslim cleric rejected a gender equality bill in 2016 that proposed equal inheritance for men and women on the grounds that it violated Islamic law.

Fitbit shares jump following a partnership with diabetes-tracking DexCom Shares of Fitbit were up 10 percent earlier this month after the company said its watches will soon be compatible with Dexcom’s glucose-monitoring sensors, allowing users with diabetes to track blood sugar levels the Fitbit Ionic. “With Ionic, we are focused on driving positive health outcomes and more health focused tools, and this collaboration is a wonderful example of how we plan to bring that vision to our users,” said Fitbit CEO James Park in a statement. DexCom’s system for continuous glucose monitoring requires users to embed a sensor just below the skin and provides updated levels every five minutes through an app.

The companies expect to role out the new function by early 2018, according to a release. More than 400 million people around the world live with diabetes, according to the World Heath Organization.

Photo Credit: cnbc.com

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News

MTN ‘UniversitiesConnect’ initiative reopens digital library MTN Foundation, under its ‘UniversitiesConnect’ initiative, has re-opened the digital library donated by the foundation to the University of Lagos. An MTN Foundation delegation led by the Chairman, Board of Directors, Mr. Julius Adelusi-Adeluyi, presented the facility to the school’s Vice Chancellor, Prof. Rahman Bello, at an event witnessed by members of the University Senate and the MTN Nigeria’s management team. Built in 2005, the fully furnished and air-conditioned digital library is equipped with 128-networked computers, running on Microsoft 365, which was donated by Microsoft Philanthropies. The library is equipped with an alternative source of electricity for a seamless digital library experiences. It also has three laser jet printers, a server, and VSAT-based Internet connectivity. Other universities that have benefited from the ‘UniversitiesConnect’ initiative include the Ahmadu Bello University, the University of Nigeria, Nsukka, and the University of Benin. Adelusi-Adeluyi expressed delight on the fact that the facility had been re-opened, urging the students to collaborate with the university to ensure that the library is well managed.

He said, “This project aligns with the foundation’s commitment to enhancing learning and teaching by providing infrastructure, content and access to students in tertiary institutions across the country.

Apple, Accenture Team on iOS Enterprise Apps In a report by David Jones, Apple and Accenture has announced a new partnership to develop iOS tools and services to help enterprises connect with their customers through iPads and iPhones. Accenture will create a dedicated iOS practice within Accenture Digital Studios, staffed by a range of visual and experience designers, programmers, data scientists and architects, as well as hardware and software designers. An Apple expert will be embedded in the team. “Starting 10 years ago with iPhone and then with iPad, Apple has been transforming how work gets done,” said Apple CEO Tim Cook. “Yet we believe that businesses have only begun to scratch the surface of what they can do with our products.”

Based on his firm’s experience with developing apps, iOS is a superior platform for business, said Accenture CEO Pierre Nanterme.

The companies plan to develop new ecosystem services to deal with the full range of iOS integration requirements needed to connect back-end systems.

They will leverage Accenture’s expertise in systems integration, along with unique iOS advantages that Apple built with its partners Cisco and SAP. The “UNILAG was the first institution to partner us on the companies plan to develop Internet of Things ser‘UniversitiesConnect’ project and we are pleased to vices featuring new tools, templates and predesigned reopen this pioneer digital library.” In his remark on code to take greater advantage of IoT platforms in behalf of the university community, Bello commended iOS apps. They also plan to work on migration serMTN Foundation for its commitment to the develvices to help move applications and data from legacy opment of education and Information and Commusystems to modern iOS apps. nications Technology in Nigeria. “This is a welcome development in line with ongoing efforts to bridge the digital divide. I assure you that this center will be used Photo Credit:Accenture.co.uk for learning and extensive research by our students,” he said.

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News For individual or home users, Google has the Backup and Sync app that replaces and streamlines both the Google Drive and Google Photos apps into a singular interface. The new app works similar to the Google Drive app and functions nearly the same with the added option of saving some space while uploading high quality photos. For corporate or enterprise customers, Google has rolled out the Drive File Streamer which debuted in March for early adopte

either looking to acquire HTC’s smartphone business or become a strategic partner. In the past year, HTC has differentiated its smartphone division and Vive virtual reality unit and has focused more on the latter. DigiTimes notes that the demand for HTC made smartphones have waned and there doesn’t seem to be a turnaround in the near future.

rs. The Drive File Stream app works in nearly the same way as Backup and Sync, with the added features of on-demand file streaming and access to Team Drives.

Google Drive desktop app to shutdown in March, Backup and Sync to replace it

Google Connects Mobile Searchers to Depression Assessment Tool

The Google Drive app for Windows and Mac will be replaced by the Backup and Sync app. Support for both versions will stop on December 11, 2017 and the app will shut down completely on March 12, 2018.

The National Alliance on Mental Illness (NAMI) earlier this month announced that Google on mobile now provides people who search for the term “clinical depression” with a direct link to the PHQ-9 questionnaire used by medical professionals in the United States to evaluate patients for the disorder. People can conduct a self-assessment by filling in the questionnaire online. When someone conducts a Google search on mobile for information on “clinical depression,” a link to “check if you’re clinically depressed” will appear in the depression knowledge panel. Clicking on the link will take the user to the PHQ-9 questionnaire.

Google has officially announced the demise of its desktop Google Drive app for Windows and Mac. Starting December 11 this year, Google will cut support for its Drive app and will completely shut it down on March 12, 2018. Users who are still using the Google Drive app will start seeing a “going away” notification starting October and Google is now directing consumers towards two replacements depending on whether they’re a consumer or a business user.

Google planning to acquire HTC’s mobile Smartphone division: Report Google is reportedly close to acquiring HTC’s mobile business as the Taiwan-based company continues to struggle with financial losses. According to China’s Commercial Times, Google and HTC are in the final stages of negotiating a deal where Google will rescue the company behind the first Android smartphone. HTC launched the very first Android smartphone in 2008 and is also the manufacturer for Google’s first Pixel-branded smartphones.

The report states that Google is

(Left) Photo Credit: VSpc.com (Middle) Photo Credit: Digit.com (Right) Photo Credit: TechNewsWorld

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News

Facebook turning to Instagram Stories to make Stories on its main app work

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n an article by Karthekayan Iyer, Facebook seems to be exploring an option to use the success of Instagram Stories to push adoption of Stories on its main app. Some Instagram users are getting an option to simultaneously share their stories on both Facebook as well as Instagram. Facebook will continue to showcase the stories shared from Instagram in its own Stories section but will clearly label them with “Instagram’ under the user’s name. This new feature seems as if Facebook is desperately trying to make its Stories feature work. Stories - a feature that allows users to post images or short videos that disappear after 24 hours has been a huge hit among Snapchat users. Facebook immediately copied the feature to compete with Snapchat and debuted Instagram Stories. Since its launch, Instagram Stories has grown to over 250 million users and it is growing faster than its competition.

Samsung’s Note8 Is Its Biggest Galaxy Phone Yet

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n an article by Peter Suciu, Samsung in August unveiled its Galaxy Note8 smartphone, positioning the oversized handset as the ideal choice for those who want to do bigger things. The new Android-powered device’s larger Infinity Display features nearly bezel-less full-frontal glass and an edgeto-edge screen. The Note8 comes with an improved S Pen that will allow users to communicate in what the company described as more “personal ways.” The Galaxy Note8 is both water- and dust-resistant, and it supports fast wireless charging. Under the hood, it features 6 GB of RAM, an Octa Core 2.36-GHz Quad + 1.7-GHz Quad 10nm processor, 65 GB of storage, and expandable memory.

Although the handset is built around a 6.3-inch Quad HD+ Super OMOLED screen with a truly wide 18.5:9 aspect ratio, it still can be considered a true “handset,” as it can fit in most users’ hands reaFacebook brought Stories to its main app in March sonably well. The S Pen allows users to send handand the feature is yet to take off among its 2 billion written notes and even create animated GIF files active users. In order to boost adoption, Facebook started showing greyed out profile pictures in its Sto- from videos. Samsung has touted this functionality ries section. Facebook is also said to be experimenting as a true step up from traditional text messaging.

Stories for its desktop version. Facebook Stories has a The S Pen is more than a stylus, as it features a genuine engagement problem despite the fact that Sto- 0.7mm tip that is far more precise that the styluses ries has been a hit on Instagram, WhatsApp and even that were used with Palm and other devices a decade Messenger. Instagram Stories is a success because of its ago. Among its feature highlights are the Galaxy Note8 rear cameras as in plural. It is the first handfeatures and Facebook integrating the two platforms makes sense for the company but will that be enough set to feature two 12-MP rear cameras with Optical Image Stabilization (OIS). to let people post frequently, remains a question.

Photo Credit: MarketingLand

Photo Credit: Android Central

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ECONOMY

The World’s Population Is Forecast to Reach 9.8 Billion by the Year 2050, Nigeria 3rd most populous.

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n a report by Edith M. Lederer / AP, India’s population is expected to surpass China’s in about seven years and Nigeria is projected to overtake the United States and become the third most populous country in the world shortly before 2050, a U.N. report said Wednesday.

The report by the Department of Economic and Social Affairs’ Population Division forecasts that the current world population of nearly 7.6 billion will increase to 8.6 billion by 2030, 9.8 billion in 2050 and 11.2 billion in 2100. It said roughly 83 million people are added to the world’s population every year and the upward trend is expected to continue even with a continuing decline in fertility rates, which have fallen steadily since the 1960s. John Wilmoth, director of the Population Division, said at a news conference that the 24 MARKET DIGEST NIGERIA

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report includes information on the populations of 233 countries or areas of the world. “The population in Africa is notable for its rapid rate of growth, and it is anticipated that over half of global population growth between now and 2050 will take place in that region,” he said. “At the other extreme, it is expected that the population of Europe will, in fact, decline somewhat in the coming decades.”

The U.N. agency forecasts that from now through 2050 half the world’s population growth will be concentrated in just nine countries India, Nigeria, Congo, Pakistan, Ethiopia, Tanzania, United States, Uganda and Indonesia. Those nations are listed in the order of their “expected contribution to total growth,” the report said.

During the same period, it added, the populations of 26 African

countries are expected to at least double. Nigeria, currently the world’s seventh largest country, has the fastest growing population of the 10 most populous countries worldwide, and the report projects it will surpass the U.S. shortly before mid-century. The new projections also forecast that China, which currently has 1.4 billion inhabitants, will be replaced as the world’s most populous country around 2024 by India, which now has 1.3 billion inhabitants. The report, titled “The World Population Prospects: The 2017 Revision,” said fertility has been declining “the world’s women had 2 1/2 births per woman over a lifetime “Europe has the lowest fertility level, estimated at 1.6 births per woman in the most recent period, while Africa has the highest fertility, with around 4.7 births per woman,” he said.

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News

Dangote plans Offer for South Africa’s Largest Cement Factory

Amaechi embarks on monthly monitor of rail project

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LafargeHolcim Ltd., the world’s biggest cement maker based in Jona, Switzerland, and Germany’s HeidelbergCement AG are also monitoring PPC’s situation, the people said. Titan Cement Co. SA of Greece is also looking at the South African company, according to one of the people. The cement makers’ interest was sparked after Toronto-based Fairfax offered to buy 2 billion rand of PPC’s shares and support a merger with AfriSam earlier this week, the people said. The proposal “significantly undervalued” the business, PPC said at the time.

“Sand clearing is done, we have started taking away the debris, hopefully by 2017 December, they will start laying tars, we believe that if they maintain the current speed, we should be able to deliver by 2018.” On gas pipelines and cables earlier discovered as obstruction, the minister said that the ministry had started talk with all the concern ministries to relocate those pipes and cables. The minister, however, declined to state the specific percent of the work done on the project. He commended the cooperation of Lagos residents especially those whose building were demolished during the process of executing the project. The minister also commended Oyo, Ogun and Lagos governments for support on the project. On locomotives and coaches, the minister said that the Federal Government had approved purchase of locomotives for two major rail lines.

frica’s richest man, Aliko Dangote is reportedly considering counter-offers for PPC Group Ltd. that could signal a bidding contest for South Africa’s largest cement maker, according to people familiar with the matter, according to reports by Bloomberg.

Dangote Cement Plc sees a bid for the Johannesburg-based company as a way to accelerate expansion outside its home market of Nigeria, said the people, who asked not to be named as the matter is private. PPC will consider any rival offers to the joint approach by Canada’s Fairfax Financial Holdings Ltd. and domestic rival AfriSam Group Pty Ltd. and present them to shareholders in early October, one of the people said. PPC shares jumped 2.9 per cent to 6.38 rand as of 3:30 p.m septmber 13th in Johannesburg, on track for the highest on a closing basis since April 25. That values the company at 10.2 billion rand ($792 million).

Photo Credit: FootpritOfAfrica

he federal government has resolved on month-bymonth inspection of Lagos-Ibadan rail project to ensure its completion in December 2018. The Minister of Transportation, Mr Rotimi Amaechi, who inspected the Lagos-Ibadan Standard Gauge railway praised the contractors on the current pace of work. Ameachi gave the assurance that the project would be completed end of 2018 during an on the spot inspection on the project on Friday in Lagos. “On monthly basis, we try to review the performance of contractors so as to ensure that we meet our target of laying this tars by 2018 December. “We are satisfied with the work done.

Photo Credit: NAN

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Nigeria and South Africa both come out of recession

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n a report by Yomi Kazeem and Lynsey Chutel for Quartz, for Africa’s two largest economies are making a comeback: Nigeria’s economy is finally lifting its head after five consecutive quarters of recession, while South Africa clawed back from a technical recession after months of barely-there growth. Data published by Nigeria’s National Bureau of Statistics (NBS) shows that the economy grew 0.55% in the second quarter of 2017. The first hint of recovery came in the fourth quarter last year when, despite still in being in a recession, the economy showed an uptick. The economic growth is meager but many Nigerians will hope that this signals the start of a permanent turnaround in the country’s economic fortunes after Nigeria slipped into recession for the first time in two decades>>>

The economic struggles have had significant ripple effects for both countries. The struggles of several companies meant Nigeria’s unemployment problem worsened to 14.2% in the last quarter of 2016. A foreign exchange shortage hobbled businesses reliant on imports and made it difficult for Nigerians to access US dollars to pay bills at foreign schools and hospitals and for holiday trips. South Africa’s recession came after months of political turmoil that directly affected the economy and led to a ratings downgrade in April this year. Trade and manufacturing were already struggling and not even South Africa’s usually buoyant finance sector could prevent the country from experiencing two consecutive quarters of negative growth rates, according to Statistics South Africa. Unemployment rocketed to a fourteen-year-high at 27.7% and con

sumer confidence dipped to apartheid-era levels of economic pessimism, with a survey showing that few believed the economic position of the country and their households would improve in the year.

Nigeria’s recovery is strongly linked to a sustained increase in its oil production and revenues. Last year, after a brief resumption in militancy in its oil-rich south, Nigeria’s oil production levels fell to 20-year lows. Accompanied by the fall in global oil prices, it meant Nigeria’s revenues from oil—its main export—fell sharply.

In the second quarter of 2017, Nigeria produced 1.84 million barrels per day—it’s highest output rate since the first quarter of 2016 when it slipped into recession, NBS data shows. The Muhammadu Buhari-led__

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News government has also kicked off reforms to make it easier to do business in the country, like easing bottlenecks at local ports and relaxing entry visa requirements. South Africa had a maize-crop boom to thank for its recovery. After a record drought in 2015, local farmers harvested the country’s best crop in history in 2016. The agricultural sector grew by 33.6% in the second quarter of 2017, following a 22.2% growth in the previous quarter, while others contracted, according to data from Statistics South Africa.

South Africa’s backbone industry, mining, also performed well over the last two quarters, recovering from previous years’ hardship. The electricity industry also showed signs of stabilizing, according to Statistics South Africa.

Despite the optimism, South Africa’s statistician general Pali Lehohla was cautious, warning that the headline figures should not be celebrated in isolation.

Instead, he warned that the country should take a long-term look, which still showed signs of subdued growth. “So even though 2,5% might seem like an impressive recovery, longer-term indicators show subdued growth,” the statistician general said in a statement. In contrast, Nigeria’s government will likely look to claim the new economic data as a win. Earlier today, president Muhammadu Buhari’s assistant in social media took to Twitter to offer “congratulations” to Nigerians.

“The economic struggles have had significant ripple effects for both countries. The struggles of several companies meant Nigeria’s unemployment problem worsened to 14.2% in the last quarter of 2016.”

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World Health Organization Spent More On Plane Tickets And Hotels Than Aids And Malaria

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he World Health Organization reportedly spent more money last year on traveling around the globe, than they did on actually combating the world’s illnesses. The health agency spent approximately $200 million on plane tickets, hotel accommodation and other travel expenses more than its combined spending to tackle AIDS, malaria, tuberculosis and hepatitis, according to an investigation by the Associated Press on May 21. The organization may be a global entity, but it is funded by taxpayers via states’ contributions to the United Nations. The allegations around W.H.O.’s travel spending are hard to reconcile when considering its increasingly desperate pleas for donor funding.

The investigation reveals that outgoing director-general Dr. Margaret Chan apparently preferred to fly and stay in luxury (Chan has headed the organization since November 2006). Just this month, Chan travelled to Guinea to celebrate the end of the Ebola virus outbreak there, and stayed at the presidential suite of the Palm Camayenne hotel, known for its “discreet luxury” at $1,008 a night. WHO intimated that the host country might have covered the hotel bill, which brings little comfort since Guinea’s health budget was depleted by the Ebola outbreak.

WHO denied Chan preferred first class, saying that business class for flights over nine hours long.

WHO said Chan gets the same daily stipend as everyone else: €212, nearly $240. Last year, WHO spent $78 million staff travel, “roughly the same” as other UN agencies, WHO said in an email to Quartz. In a May 22 statement, the WHO said nearly two thirds of its travel budget was spent on sending external experts to affected countries, adding that it has already cut its travel budget by 14% (thanks in part to few business class tickets) in 2016 to $200 million, compared to $234 million spent in the previous year.

The AP investigation alleges that in 2016, WHO spent $70.5 million on AIDS and hepatitis, $61 million on malaria and $59 million on TB—less than the $201 million spent on travel costs for around 7,000 staffers. WHO’s program for 2016/2017 was $4400 million, an increase of $236.6 million from 2014/2015

Photo Credit: NewYorkPost

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News of all money raised was classified merely as “other expenses.”

Donald’s charity

The Ebola outbreak in West Africa saw an understandable spike in WHO’s expenses, with travel costing $234 million, according to the AP. Chan’s travel alone is believed to have cost $370,000 during the outbreak, while director of WHO’s outbreak response Dr. Bruce Aylward’s travel bill rose to $400,000 during the crisis. Still, the new investigation reveals that this spike was not very far above the WHO’s usual travel expenditure. The AP investigation describes an organization that is clearly struggling to prioritize its outward objectives, while also struggling to curb internal spending culture. A leaked internal document showed that only two of seven WHO departments stayed within budget. Attempts at travel austerity were often thwarted by senior staff who opted to fly first or business class, setting a poor precedent for more junior staff.

Similar Cases: Bono’s ONE foundation An investigation on Bono’s anti-poverty foundation ONE in 2012, revealed that only a small percentage of money it raised reaches the needy. The non-profit organization set up by the U2 front man received £9.6million in donations in 2008 but handed out only £118,000 to good causes (1.2%). The figures published also show that £5.1million went towards paying salaries. ONE spokesman Oliver Buston defended the way the organization is run, insisting the money is used for promoting its campaign and raising awareness rather than being given straight to those who need help.

The Clinton Foundation

The Donald J. Trump Foundation is not like other charities. An investigation of the foundation including examinations of 17 years of tax filings and interviews with more than 200 individuals or groups listed as donors or beneficiaries found that it collects and spends money in a very unusual manner. For one thing, nearly all of its money comes from people other than Trump. In tax records, the last gift from Trump was in 2008. Since then, all of the donations have been other people’s money an arrangement that experts say is almost unheard of for a family foundation.

Money from the Trump Foundation has also been used for political purposes, which is against the law. The Washington Post reported this month that Trump paid a penalty last year to the Internal Revenue Service for a 2013 donation in which the foundation gave $25,000 to a campaign group affiliated with Florida Attorney General Pamela Bondi (R). Trump has claimed that he gives generously to charity from his own pocket: “I don’t have to give you records,” he told The Post earlier this year, “but I’ve given millions away.” Efforts to verify those gifts have not succeeded, and Trump has refused to release his tax returns, which would show his charitable giving.

Between 2009 and 2012, the Clinton Foundation raised over $500 million dollars according to a review of IRS documents by The Federalist (2012, 2011, 2010, 2009, 2008). A measly 15% of that, or $75 million, went towards programmatic grants. More than $25 million went to fund travel expenses. Nearly $110 million went toward employee salaries and benefits. And a whopping $290 million during that period nearly 60% MARKET DIGEST NIGERIA 29

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Nigeria to work with UK to attract more investment

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n a report by Racheal Ishaya, the federal government would work with government of the United Kingdom to stimulate more direct private sector investments into Nigeria. The Minister of Budget and National Planning, Mr. Udoma Udo Udoma, said this in Abuja at a meeting with a delegation from the British government led by the Secretary of State for International Development, Mrs Priti Patel. He told the delegation that Nigerian Government was intensifying efforts at ensuring the ease of doing business in the country and would welcome more foreign investments.

The British government, he said, could help in encouraging manufacturers in the United Kingdom to take advantage of the special economic zones.

The minister said that the Federal Government was committed to creating a successful economy, pointing out that the Economic Recovery and Growth Plan launched early this year was meant to serve as a vehicle to drive government’s diversification policy. Udoma said The Federal Government had constituted an Inter-ministerial Task Force under the chairmanship of the Minister of State for Budget and National Planning to properly handle and coordinate humanitarian assistance efforts in the North East to ensure proper delivery and effective utilization of funds Patel and her team were in Nigeria to have an and materials. In her comments, Patel gave the assurance on-the-spot appraisal of the situation in the North East to enable the British Government to that the British Government would continue to assist decide on how to assist the Nigerian government Nigeria in addressing its humanitarian and developmental in addressing the situation in the region, as well challenges. She said her team would discuss further with as other development initiatives. Acknowledging the Federal Government to look at more proactive ways of the various interventions by the British Govern- dealing with the fallouts of the North East crisis. She addment in aid of Nigeria, the minister said the na- ed that more work would be done in the areas of investtion would appreciate more foreign aid from the ment in education, international partnerships, capacity British Government. He said that Nigeria would building, and scaling up of farming in local communities be looking more in the area of investments from among, other development issues. companies in UK. Aside government’s efforts in ensuring the ease of doing business, he said the government has created industrial hubs in the six geo-political zones with basic facilities required for manufacturing to thrive smoothly.

Photo Credit: NAN

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News

BoI seeks foreign collaboration to boost small business lending The Managing Director, BoI, Mr. Olukayode Pitan, stated this in Abuja during a meeting with the Secretary General, Association of Africa Development Finance Institutions in Africa and Europe, Mr. Joseph Alfred. The meeting was convened to put in place adequate strategies for Nigeria’s hosting of the association’s conference scheduled to hold in November. Pitan said the conference would be beneficial to Nigeria as it would provide a platform for the BoI to explore opportunities

from DFIs from other countries. He said with foreign collaboration, the bank would be better positioned to deliver its mandate of industrialisation of the nation’s economy.

Pitan stated, “There will be many positive take away from the conference for the BoI and other participating DFIs across Africa and Europe. We have a meeting of peer review. We will compare how things are done; not only what you’re doing here in Nigeria, but what other people are doing across the countries. “Aside from sharing information, we will be able to network. The kind of business we do, the rates are below the market; we will be able to raise money creatively. We take more risks than any other commercial bank; we will share many information, including our personnel.”

FG to launch One-Stop-Shop for MSMEs states The Federal Government has resolved to launch one-stop shops in seven states and FCT to spur Micro, Small and Medium Scale Enterprises (MSMEs). The measure is also to facilitate smoother government’s regulation and interface between entrepreneurs and agencies of government. The Vice President’s Spokesman, Mr. Laolu Akande, said in a statement that already one such one-stop shop for MSMEs in Plateau State was launched in Jos on Aug. 24, and was being housed by Plateau State Micro-Finance Development Agency (PLASMEDA). According to him, the states that are next in line are Abia, Cross River, Ogun, Akwa Ibom, Kwara, Kano, Benue and the FCT. He said that the shops were slated to take off between September and October, adding that more of the one-stop shops are expected to be launched in other states before the end of the year.

The one-stop-shop is aimed at bridging the information gap between micro and small investors and regulatory agencies of government. Such agencies include the National Agency for Food and Drug Administration and Control (NAFDAC), Corporate Affairs Commission (CAC), Standards Organization of Nigeria (SON), Federal Inland Revenue Service (FIRS), and others. Akande said that the MSMEs clinics which held in several States already had provided the opportunities for entrepreneurs and local producers in the MSME level to interact with regulatory agencies. He added that the One-Stop Shop would create an ongoing opportunity in a permanent location to achieve the same purpose.

The One-Stop Shop program is part of the on-going Nationwide Micro, Small and Medium Enterprise Clinics for Viable Enterprises (MSME Clinics) initiated by the Presidency in January 2017. The MSMEs Clinics, one of the diversification initiatives of the Buhari administration, was designed to give small businesses the opportunity to interact with the industry regulators in an effort to spur local production and harness the na(Top)Photo Credit: BOI tion’s export potential. Ban

(Bottom)Photo Credit: wikipaedia

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Nigeria Must Widen Tax Base, Diversify Economy—UBS Report

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ederal Government has been advised to widen its tax base and broaden its activities away from oil if it must continue to grow its economy. Also, according to the latest report by UBS Wealth Management’s Chief Investment Office, the liberalization of Naira exchange rates will be crucial in attracting foreign investment.

UBS, launched Africa: Cradle of Diversity, a new report on the continent’s economic prospects and challenges, highlighted that of the 64 nations the IMF projects to have average real GDP growth of more than 4% in the next five years, more than half are in Africa.

It said as Africa’s largest country both in terms of GDP and population, Nigeria offers enormous potential for the nation’s domestic market. The UN expects Nigeria’s population to reach up to 1 billion people by 2100, offering unusual potential for growth. At the same time, population growth presents a significant challenge in terms of job creation for new labor market entrants and the nation’s geographic limitations, considering Nigeria’s territory is approximately the size of Texas.

In addition, UBS CIO research

shows that indicators relating to governance and ease of doing business are clearly weaker than for peers, thus underpinning the need for reforms as foreseen in Nigeria’s Economic Recovery and Growth Plan. Decisive factors outlined in the report include efforts to broaden the country’s tax base and to diversify its economy. Nigeria’s revenue base heavily relies on oil-related activities, which exposes the nation’s fiscal balance to energy price shocks and volatility risks. Nigeria is Africa’s largest oil exporter and while commodity exports remain a major growth driver in many African countries, their importance is slowly declining as domestic demand plays an expanding role in sustaining growth. Some of the continent’s fastest growing economies are concentrated in non-resource-rich countries like Cote d’Ivoire, Senegal, Kenya and Ethiopia, which are expected to grow between 6 percent and 8 percent in the next few years.

The report points out that the manufacturing industry is probably one of the most overlooked sectors in Africa, despite the continent’s potential to become the world’s next low-cost manufacturing hub and a leading global player in resource-intensive manufacturing.

Competitive labor costs, abundance of raw materials, convenient transit locations for export and large markets for local consumption position many African countries well to replace Asian competitors as attractive locations

to produce goods and draw manufacturing foreign direct investment. In the short term, further progress toward the liberalization of the Nigerian currency’s exchange rate will have a decisive impact on the inflow of such investment. Ali Janoudi, Head of Central and Eastern Europe, Middle East and Africa, France and Belgium International at UBS Wealth Management, said: “We see tremendous potential for Nigeria’s economy, which is Africa’s largest, but in order to achieve its potential, current reform programs must be implemented and in some instances, accelerated. The current climate of higher energy prices and relative domestic stability indicate now is the right time to act.” Michael Bolliger, Head of Emerging Market Asset Allocation at UBS Wealth Management’s CIO, said: “In the near term, oil will remain an important source of income for Nigeria. However, the impressive growth rates of nonresource-rich countries in Africa clearly indicate that development beyond oil is the way forward.”

Photo Credit:UBS

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Can Jelani Aliyu, The Chevrolet Car Designer Revitalize Nigeria’s Auto Industry?

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igeria’s government has long talked about diversifying its oil-dependent economy but its actions have not always matched the bluster. Over the past few years, the automobile manufacturing industry has seemed like a plausible alternative. The hope is that it will help create thousands of jobs and draw large-scale investment from global carmakers; Nigeria’s government has been keen to tap into that potential. To this end, the National Automotive Design and Development Council (NADDC) was set up in May 2014 after a merger of previous agencies. Much of NADDC’s work has been guided by an automotive policy approved in 2013. The policy mainly aims to boost local car production and reduce vehicle imports.

To implement that policy over the coming years, Nigeria has turned to Jelani Aliyu, a Detroit-based car design veteran from General Motors. Jelani Aliyu, is a Muslim who was born in 1966 he is from Sokoto state. He is a Nigerian designer who designed a globally renowned electric car, the Chevrolet Volt, he was appointed

by President Buhari as the director-general of the Nigerian Automotive Design and Development Council (NADDC). The Chevrolet Volt has been described as a modern day revolutionary product, one that would change the world.

As the head of the council, Aliyu, would be in charge of implementing new development policies for Nigeria’s automobile industry.

Aliyu invented the Chevrolet Volt, a battery-powered, extended range passenger vehicle which was

described as General Motors’ most electrifying advanced technological vehicle.” The Chevrolet Volt has an electric generator powered by an internal combustion engine with the capacity of 62 kW. It has a fuel tank capacity of 45 liters.

The fuel tank combined with the battery charge gives it enough to run for 640 miles. He Co-designed the Buick Rendezvous. He was the lead exterior designer of the Pontiac G6. In 2014, his invention ‘the Chevrolet Volt’ was given an award by the United States Environmental Protection Agency for the most fuel-efficient vehicle in the market.

The Federal Government by this appointment has rekindled hope in the nation’s automotive industry. Aliyu, replaced Engr. Aminu Jalal, a former university lecturer who has been at the helm of affairs at the NADDC since the Federal Government started the new auto policy. The new policy attracted automotive giants from across the world, including Toyota, Nissan,

Volkswagen, Kia, Hyundai, Ford, to mention but a few. But the Federal Government’s appointment of Mr. Aliyu, who has practical knowledge of the auto industry, has ignited stakeholders’ confidence in the Nigerian auto industry. It is believed that the move by the Federal Government has shown its readiness to the nation’s automotive industry to the next level.

Photo Credit: NigerianUnion

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FINANCE SEC Approves Union Bank N50b Rights Issue In a report by Dipo Olowookere, the N50 billion rights issue of Union Bank of Nigeria Plc has received the backing of the Securities and Exchange Commission

UBA Applies for British Banking License The G.M.D. of United Bank for Africa (UBA), Mr Kennedy Uzoka, has revealed the lender’s intention to begin operations in Britain.

Mr Uzoka, according to Reuters, made this disclosure last month during the bank’s H1 2017 Conference Call & Earnings Presentation.

He noted that an application has already been filed to the Financial Services Authority of the United Kingdom for a banking license.

The UBA chief said the decision of the lender to spread its tentacles to the UK was in its bid to further connect Africa to the world through global financial centres, complementing its existing presence in New York and Paris. UBA’s first half pre-tax profit rose 66% to N57.5 billion, while its non-performing loan ratio rose to 4.2% in the half-year, up from 3.9% a year earlier. During the last month’s call, UBA, the third largest bank in Nigeria by total assets, deposits and profits with an estimated c.10% market share, said it boasts of over 14 million customers.

(SEC). The capital market regulator said the lender can go ahead to raise the Tier 1 capital, to be opened for subscription this month. During the offer period, 12.1 billion ordinary shares of 50 kobo each will be available at N4.10 per share, on the basis of five new shares for every seven shares held. The qualification date for the Rights Issue, which had been announced by the Nigerian Stock Exchange, was August 21, 2017. Chief Executive Officer (CEO) of Union Bank, Mr Emeka Emuwa, while commenting on the SEC approval, remarked that, “The approval by SEC brings us to the final stages of this important transaction for Union Bank which is critical to our short to medium term business objectives.

“The capital raised from the rights issue will support our strategy to accelerate business growth and position Union Bank as a leading commercial bank in Nigeria.”

Despite Recession, First Bank Promoted 3,000 Staff First Bank promoted over 3000 of its workforce in its recent promotion exercise in recognition of the hard work and contributions of staff rolled out unprecedented promotions across board, moving up over 3000 staff members in spite of the difficult economic downturn and challenging operating environment. This year’s promotions was targeted more towards lower and middle management cadres within the Bank in recognition of their pivotal role in customer service delivery and the Bank’s transformational programme. The performance review is an annual exercise in the Bank tailored to recognize and reward members of staff who have excelled as well as disengage members of staff who performed poorly in the last financial year.

According to Adesola Adeduntan, MD/CEO, First Bank of Nigeria Limited, “With the 2017 promotions, the Bank has delivered on its commitment to always reward staff performance and build a motivated workforce.

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News

Access Bank, Zenith, UBA, 6 others gulp N59.6bn from Maintenance charges, e-banking In a report by Samson Gabriel, Nine banks in the first six months of the year made N59.596 billion from account maintenance charges and electronic banking fees even as customers continue to groan under the several bank charges that are deducted from their accounts. United Bank for Africa, Stanbic IBTC, Access Bank, Guaranty Trust Bank, Zenith Bank, FBN Holdings, Diamond and Fidelity Banks had jointly made N34.849 billion through electronic banking charges, although it was less than N76.155 billion which they made through the same channel in the first half of 2016. With the exception of Zenith Bank, which recorded a rise in income from electronic banking fees, the other banks

had significant declines in the income from electronic channels. There was also a decline in what the banks made through account maintenance charges.

In the first half of the year, eight banks made N24.747 billion, a reduction in the charges compared to N28.368 billion that was made in the first six months of 2016. Of the banks, Zenith Bank stood out in what it made from account maintenance charges while UBA, despite the substantial decline in electronic banking fees income still recorded the highest figure. The Central Bank of Nigeria (CBN), earlier in the year had reviewed the Guide to Bank charges cutting down what customers pay for electronic bank transactions although it retained the account maintenance fee which banks started charging after the phasing out of commission on turnover in 2016. The apex bank in the revised guideline cut the charges on internet banking transactions to N50 from N100 and Real Time Gross Settlement (RTGS) to N500 from N700. It however increased charges on card maintenance fees from N100 annually to N600 annually.w

Ecobank Nigeria Customers Win in Western Union “Mega Promo” Customers of Ecobank Nigeria have won prizes at the Western Union “Mega Promotion” for its patrons in Nigeria. At the raffle draws amongst customers of 13 banks in Lagos, a western Union customer Gloria EdafeAsedegbega who transacted at Ecobank

From Left: Head, Agency Banking, Ecobank Nigeria; Funso Oyelohunnu; Head, Consumer Distribution, Ecobank Nigeria, Tunde Kuponiyi; MD/CEO of Accion Microfinance Bank, Bunmi Lawson; Deputy Managing Director, Ecobank Nigeria, Tony Okpanachi; Head, Remittance & Mobile Money, Ecobank Nigeria, Esther Obot

won one of two Hyundai cars on display. Also five other customers, who included Kemisola Aluko, Oluwatoyin Ubuake, Helen Okwudili, Bright Uche, and Solomon Okobia, won state of the art home appliances.

In her remarks, Head of Remittances, Ecobank Nigeria, Esther Obot, said the bank’s customers have the rare privilege to send and receive Western Union in very convenient and reliable ways that includes receiving through Ecobank ATMs and Retail Internet Banking (RIB) platforms. She reiterated that customers should also be assured that their records are well handled and presented for promotions like this. “We invite more customers to do their Western Union with Ecobank as the promotion is still on till December. You may just be the next lucky winner.”

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News

UBA gives reasons why they invested in Chad The United Bank for Africa (UBA) Plc has stated that its decision to invest in the Republic of chad has contributed to the growth of the economy through financing infrastructure, which has served as a critical lever in sustainable development. Speaking at the

Executive Director and CEO, UBA Francophone, Emeke Iweriebor with Christian Georges Diguimbaye, Hon. Minister of Finance and Budget, of the Republic of Chad.

roundtable Forum organized in Paris recently by the government of the Republic of chad, on the financing of the National Development Plan 2017- 2021, the Chairman of UBA Group, Tony Elumelu re-affirmed the decision to invest in the country.

Elumelu, who was represented by the Chief Executive Officer, UBA Francophone Africa, Emeke Iweriebor, said UBA Chad is one of the Pan-African bank’s high performing subsidiaries in Africa and encouraged potential investors to look into Chad as an investment destination. With presence in 19 African countries and in Paris and New York, UBA has supported several projects in Chad including a 60 Mega Watt Central Electricity power plant in Farcha, he added.

Fidelity Bank’s Helping Hands Project Fidelity Bank Plc is touching lives and impacting positively on communities, with its Fidelity Helping Hands Project, an initiative that enables the bank and its staff to carry out corporate social responsibility interventions. The lender in a statement on earlier this month said a community in the North-East benefitted from

L-R: Head, Retail Banking, Fidelity Bank Plc, Richard Madiebo; Account Officer to Star Prize Winner, Toyin Adelegan; Brother to Star Prize Winner, Olawale Dada; N2 million naira winner, Kafilat Olayinka Dada; Regional Bank Head, Apapa Region, Fidelity Bank Plc/ Chairman, Fidelity Bank Promo Committee, Obara Odeghe; Head, Savings Group, Fidelity Bank Plc, Janel Nnabuko and Branch Leader, Corporate Branch, Fidelity Bank Plc

the bank’s corporate philanthropy initiative. It said staff members donated hospital equipment and renovated a maternity and child welfare clinic in Kofaran, Bauchi State.

Dr. Musa Tarimbuka, noted that the bank took great pride in entrenching the culture of true and responsible citizenship among its staff. He said government alone could not solve all of societal problems and called on private sector organizations and corporate bodies to lend their support to government, particularly as it relates to the provision of basic infrastructure and social amenities. “Giving is a culture at Fidelity Bank and we will continue to encourage this. Under the FHHP initiative, the bank matches 100 percent whatever amount is contributed by staff to fund CSR projects of their choices. This project was funded by the combined contributions of individual staff members of Bauchi main branch of Fidelity Bank,” he stated.

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News

Heritage Bank Partners FG, LASG On 2017 Diaspora Festival Badagry

Heritage Bank Plc has partnered with the Office of the Senior Special Adviser to the President on Diaspora and Foreign Affairs and the Lagos State Government to organise the 2017 edition of Diaspora Festival Badagry, with the theme: “Door of Return Ceremony Badagry.”

The festival, which held recently in the ancient town of Badagry, was hinged on: “The Door of Return Ceremony and cultural displays.” The Door of Return Ceremony forms the ideological basis of the festival, symbolizes the emancipation of the black race as well as an expression of the Diaspora string and affiliation to African culture and heritage.

It was also an advocacy program that raised awareness about the continuous fight against oppression, neo-colonialism and enslavement and represented a symbolic boat trip by notable black persons in the Diaspora (emigrants, descendants of slaves and leaders of thoughts), where the boat convey them to the “Point of No Return” in Badagry, which is the door way through which slaves were carted away as chattels to the plantations in the Americas, with the intention of never to return to their homeland again.

Keystone Bank launches *533# convenient banking Platform In keeping with its promise to make financial services easy and accessible to its teeming customers, Keystone Bank Limited has launched another innovative mobile channel enabled by dialling *533# within Nigeria. According to the bank’s Divisional Head, E-Business Channels, Mr. Ernest Obi, the *533# Unstructured Supplementary Service Data (USSD) banking solution will enable Keystone Bank customers to conveniently perform third party transfers to both Keystone Bank and other bank account holders in Nigeria, open Keystone Bank accounts, buy airtime, pay bills and access a mini statement such as balance enquiry using their mobile phones without necessarily having internet data or airtime.

L-R: Group Head, Construction and Cement, Corporate Bank, Keystone Bank Ltd, Abubakar Jose; Chief Compliance Officer, Joyce Obi; Acting Managing Director/CEO, Hafiz Bakare; Divisional Head, Bankwide Operations, Uchenna Okwodu and Acting Directorate Head, Lagos and West, Simpson Eimiakhena, during the launch of the bank’s *533# Code in Lagos

Managing Director/Chief Executive Officer, Mr. Hafiz Bakare (m) with other members of the management team and staff at the official launching of Keystone Bank’s *533# USSD banking solution in Lagos

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News

Stanbic IBTC attracts N413.62 billion capital inflows into Nigeria Stanbic IBTC, a member of Standard Bank Group, in the second quarter of this year, facilitated a staggering $589.84 million capital inflow into the country, ranking it first among financial institutions that imported capital into Nigeria. The Nigerian Bureau of Statistics (NBS), in its Capital Importation Q2 2017 Report, stated that Stanbic IBTC accounted for 32.91 percent ($589.84 million or N216.47 billion) of the total share during the period, representing an increase of 9.12 percent over the $536.78 million it posted in the first quarter of the year. That brings to $1.127 billion (N413.62 billion) capital importation by Stanbic IBTC in the first six months of the year.

Zenith Bank lifts revenue, doubles profit at half year Zenith Bank closed its half-year operations for the 2017 financial year with a more robust earnings picture than it has recorded for many years. Defying economic recession and late budget approval, the bank is showing accelerating growth in earnings for the second year. Its gross earnings towered a clear 77% above the corresponding figure last year and profit soared 112% year-on-year at the end of June 2017. There is a strong growth of 44% in interest income – which accounts for 70% of gross earnings despite that the bank’s huge portfolio of loans and advances to customers declined from the closing figure last year. The main revenue growth driver so far is non-interest income led by other operating income and trading income.

Ecobank gets $250m credit line Ecobank Transnational Incorporated (ETI) Plc-the pan-African parent company of Ecobank Group, has signed a five-year $250 million senior unsecured loan facility from Deutsche Bank AG. The Public Investment Company (PIC) of South Africa, one of the major institutional shareholders of ETI, is providing full credit support to Deutsche Bank on the transaction through a sub–participation of risk. In a statement earlier this month, ETI stated that the new facility of $250 million, equivalent to N76.5 billion, would be used primarily to refinance maturing facilities.

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News

Wema Bank targets low cost deposits

Wema Bank Plc is targeting low cost funds from the retail-end of the market, insisting that retail is the future of banking. Speaking at a media briefing in Lagos, its Executive Director, Folake Sanu, said the decline in the bank’s deposit portfolio was a deliberate effort to change the structure of deposit, giving priority to low cost deposits

From left Mr Oluwole Ajimisinmi, Company Secretary; Mr Adeyinka Asekun, Chairman and Mr Segun Oloketuyi, MD/CEO, all of Wema Bank PLC

as against term deposits. “We are trying to manage high of funds that are prevalent in the industry, focusing basically on retail market through savings and current accounts, instead of bloating the deposit base with huge term and time deposits. She noted that the loan book remained diversified as there were no significant exposures to upstream oil sub-sector, power sector and foreign currency loans, the areas where some banks had issues during the year.

“We will grow our loan book to between one and five per cent for the second half of 2017. “Small businesses remain drivers of the economy, but financing them remain challenging, so what the bank plans to do is to work with the existing intervention funds from the Bank of Industry, and Central Bank of Nigeria to grow the sector,” she explained.

Skye Bank to use digital banking to Deepen Market Penetration Promoters of the Skye Bank brand have stated that their decision to extend the frontier of the bank offering through the recently launched digital banking solution called Skyexperience was to give the banking public exciting expe-

Executive Director, Technology and Services, Ndubusi Ozakwe; Chairman, Board of Directors, Skye Bank Plc, Mohammed K. Ahmad and Group Managing Director, Tokunbo Abiru, at the launch of SkyeXperience

rience. According to the bank’s Chief Executive Officer, Mr. Tokunbo Abiru, the product, which was developed in collaboration with Oracle Corporation, a leading computer technology company, was introduced to grow customer enrolment by over 2 million in 17 months as well as offering customers seamless Omni-channel experience. Meanwhile, financial technology experts have described the new solution as a game-changing innovation that is poised to put industry competitors in the digital catch-up mode.

Earlier in his welcome address, the Chairman of Skye Bank, Mr. Mohammad Ahmad described the launch of Skyexperience as “a timely intervention in the banking industry and a modest contribution towards the economic development of Nigeria, especially in the area of financial technology and digital evolution”.

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News

The World Bank is reinventing itself as a broker for private finance

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n an article on the Conversation by Felix Stein and Devi Sridhar, The World Bank’s relationship with US president Donald Trump has raised concerns about its political neutrality in recent weeks, but a larger and potentially much more important shift in how the Bank operates is underway. The World Bank is

reinventing itself, from a lender for major development projects, to a broker for private sector investment.

In April 2017, World Bank Group President Jim Yong Kim outlined his vision in a speech given at the London School of Economics. He argued that development finance needs to fundamentally change in speed and scale, growing from billions of dollars in development aid to trillions in investment.

Kim said that there are significant financial resources readily available, literally trillions of dollars “sitting on the side-lines” on capital markets, generating little in the way of returns, particularly compared to what they could make if invested in developing countries. Private investors’ lack of knowledge about these countries, and their tendency to remain generally risk-averse, mean that these funds remain largely untapped. In Kim’s view, the World Bank should therefore be a broker between the private sector and developing countries. Its future top priority should not be to lend money, but to “systematically de-risk” development projects and entire developing countries. To do that, it will promote policies that make countries and projects attractive for private investment.

Kim hopes that this will enable private sector financing, while at the same time benefiting poor countries and their populations. In his view, the bank would mediate between the interests of a global market system, developing country governments, and people in poverty. Kim provides several examples of this catalytic role: the bank’s International Finance Corporation (IFC) enabled private sector involvement in building and managing Jordan’s Queen Alia International Airport; the IFC and the bank’s investment guarantee agency MIGA helped privatize Turkey’s energy sector; and the IFC’s new risk mitigation program covers private sector investment risk with public money. As a broker, the World Bank thus provides a mixture of services that range from investment and insurance to business advice and policy lobbying.

ITN, ACCA Agree to Promote Accounting & Taxation in Nigeria In a report by Modupe Gbadeyanka, A memorandum of understanding (MoU) has been signed between the Chartered Institute Taxation (CITN) and Association of Chartered Certified Accountants (ACCA). The deal is to promote accountancy and tax profession in Nigeria and will be five years from the date of execution, but could be terminated at any time before the expiry of the initial five-year term. President of CITN, Mr Cyril Ikemefuna Ede, told newsmen at the signing ceremony that the agreement between the two professional bodies will give them the opportunity to work together for the development of accounting and taxation in the country.

According to the Director Sub-Saharan of ACCA, Mr Jameel Ampomah, “The ultimate aim of our partnership is to develop the profession and build on strong foundations created by both bodies. ACCA is excited by the potential of working with the CITN, and we look forward to a long, happy and productive partnership.”

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News

LIFETSYLE Victoria’s Secret Drops to Six-Year Low on Weak Forecast L Brands Inc. tumbled to its lowest level in almost six years after disappointing investors with its profit forecast, a sign that the company’s

Gucci’s Legal Battle With Forever 21 Goes to Court Three months ago, Gucci had filed multiple cease-and-desist letters to Forever 21 following apparent copyright infringement on a number of the fast fashion retailer’s items, utilizing a knock-off of the Italian luxury brand’s trademark “blue-red-blue” and “green-redgreen” stripe webbing. As of first week of August, Gucci filed a lawsuit against Forever 21, which was made in the United States District Court, Central District of California, according to The Business of Fashion. The contents of the filing include a motion to dismiss Forever 21’s earlier complaint against a threat of trademark litigation from Gucci and counterclaims of its own for trademark infringement, trademark dilution and unfair competition.

Several items from Forever 21’s collection incorporated the distinctive stripe-webbing motif, which included a silver bomber jacket, floral bomber jacket, a butterfly jumper, a green tiger motif jumper and a striped choker.

comeback is still far off. Earnings will be 25 cents to 30 cents in the third quarter, the owner of Victoria’s Secret and Bath & Body Works said on Wednesday afternoon. Analysts had been looking for 36 cents on average. Sales at Victoria’s Secret also fell more than projected last quarter.

The outlook underscores the troubles Victoria’s Secret has had connecting with younger customers. Shoppers have been shifting toward cheaper, less-supportive lingerie like bralettes.

Jimmy Choo auctioned off to US fashion brand Michael Kors for £900m American firm fends off rival bids for fabled British luxury shoes and bag firm Jimmy Choo, a British luxury brand whose fans include Beyoncé and the Duchess of Cambridge, has been snapped off the shelf for £896m by US fashion brand Michael Kors. Famed for its strappy stilettoes, which sell for up to £2,995, the brand was founded in a Hackney workshop in east London in 1996 by the Malaysian shoemaker Jimmy Choo, after his designs caught the eye of then Vogue accessories editor, Tamara Mellon. It shot to fame a few years later thanks to the fictional character Carrie Bradshaw in television series Sex and the City.

The firm runs 150 of its own stores around the world and a further 60 franchise outlets where it sells bags, perfume, trainers and hats as well as its shoes. The acquisition by Michael Kors, marks the fourth time Jimmy Choo, which listed on the London Stock Exchange less than three years ago at a value of £545.6m, has changed hands. Both Choo, who reportedly made his first pair of shoes at 11, and Mellon left after a string of private equity firms took control of the business. Choo sold his 50% stake in 2001 and Mellon departed in 2011 when JAB Luxury bought the firm for more than £500m.

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Events

EVENTS Indo – Africa ICT Expo 2017

TEPC in conjunction with NASSCOM held the 3rd edition of Indo – Africa ICT EXPO on the 6th and 7th of September, a two days exhibition and conference at Eko Hotel & Suites, Lagos, Nigeria. Indo – Africa ICT Summit is a platform for convergence of technology and business exchange. The event brought together over 300 companies from India and Africa for the conference and attracted over 2000 visitors for the exhibition. This mega event encapsulated strategies and learning that transcend the two most important present day industries having potential of unlocking huge demand of ICT services across multiple domains.

It was a place to network, meet and shape the future.

Adebayo Shittu, Hon’ble Minister of Communications, Government of Nigeria declaing the exhibition centre open

The event had keynote speakers like,Mr. R.K. Pathak, Secretary, TEPC, Mr. Sanjay Nayak, Co-Chairman, TEPC and CEO, Tejas Networks, Mr. Shyamal Ghosh, Chairman, TEPC, Ms. Akansha Tete, Director, NASSCOM, Nicholas Williams, Head of ICT, African Development Bank, Mr Tope Fashedemi, Director, E-Government, Ms. Moni Udoh, DiR, ICT will read the statement of Mr. Abdulaziz Abdullahi, Permanent Secretary, Federal Ministry of Communications, Nigeria, Mr. B. N. Reddy, High Commissioner of India, Nigeria, H.E. Mr. Manoj Sinha, Hon’ble Minister for Communications,Government of India , H.E. Mr. Vincent Sowah Odotel, Hon’ble Deputy Minister of Communications, Ghana ,H.E. Barr. Abdur-Raheem Adebayo Shittu, Hon’ble Minister of Communications, Government of Nigeria and many more.

Adebayo Shittu, Hon’ble Minister of Communications, Government of Nigeria Hon’ble Deputy Minister of Communications, Ghana, H.E. Barr. Abdur-Raheem

Mr. R.K. Pathak, Secretary, TEPC, Mr. Sanjay Nayak, Co-Chairman, TEPC and CEO, Tejas Networks, Mr. Shyamal Ghosh, Chairman, TEPC, Ms. Akansha Tete

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Events

Interswitch Connect tech/payment conference

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nterswitch group organized Interswitch Connect a two days conference on September 14th and 15th 2017 at the Landmark Event Center Victoria Island Lagos. It was themed Digital Transformation Imperatives: Innovative Evolution or Disruptive Innovation? The connect event partners were; Thales, Tranwall, Stratus Technologies, Discover Financial Services, Finastra, and ACI Universal Payments.

The event brought together the entire digital financial ecosystem to discuss, debate and evaluate the future of transactions, there were expert keynote presentations and product demos from the leading innovators and OEMs in the financial services industry like Brett King Best Selling Author & founder Moven, Uzoma Dozie CEO Diamond Bank Plc, Mitchell Elegbe CEO Interswitch, Nneka Mobisson Co-founder & CEO of mDoc, Olu Akanmu Executive Director for Retail Banking at FCMB, Austin Okere Founder of CWG Plc and many more.

Digitization is driving disruption and re-shaping the future across payments, banking, trade & commerce, consumer and retail industries, healthcare and other industries. Various players (Banks, retailers, telcos and merchants etc) within these various but increasingly converging and interconnected sectors are having to rapidly adapt to new market realities and a landscape that is rapidly being redefined and dominated by Fintechs disruptors. Data is essentially becoming a competitive weapon in the hands of discerning players, and more than ever before, collaboration is increasingly becoming the key to survival.

Mike Ogbalu, Divisional CEO, Interswitch Financial Inclusion Service: Obinnia Abajue, CEO Hygeia HMO Limited and Charles Ifedi, CEO Verve International.

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L-R: Charles Ifedi, CEO, Verve International: John Chaplin, President, Global Payments Innovation Jury: Mitchell Elegbe, Founder and Group Managing Director, Interswitch: Brett King, Global Best Selling Author, Futurist and CEO, Moven and Akeem Lawal, Divisional Chief Executive Officer, Interswitch

L-R: Uzoma Dozie, CEO Diamond Bank: Brett King, Global Best Selling Author, Futurist and CEO, Moven and Mitchell Elegbe, Founder and Group Managing Director, Interswitch

Mitchell Elegbe

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Events

Technology, Innovation & Entrepreneurship; Only Hope for Nigeria Survival- NIS

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he Nigeria Innovation Summit conveyed messages on the need for Nigeria, businesses and entrepreneurs, to embrace technology and innovation so as to drive a sustainable economic growth.

This is the unanimous thought of participants at the 2017 Nigeria Innovation Summit (NIS) and the Nigeria Innovation Awards, held in Sheraton Hotel, Lagos on the 7th Spetember by the Emerging Media and the African Innovation Academy. Each year, the event brings together the major drivers of Nigeria’s innovation ecosystem, namely; the government, the academics, the industry and entrepreneurs to share ideas, connect, network and more importantly work together to do practical projects that will drive innovation in Nigeria.

The Nigeria Innovation Summit, a brainchild of Emerging Media, attracted participants delegates from Research Institute for Innovation and Sustainability, South Africa; the Private Sector Health Alliance of Nigeria; Anambra State Government; Kaduna State; Google Business Group; Ministry of Industry, Trade and Investment; UNIDO/NIRP; Enspire Business Incubator, Abuja; Oxford Business Group, UK; British High Commission; Lagos Business School; University of Lagos; Federal University of Technology, Owerri; Caleb University; Crescent University; Nasarawa State University; Nuhu Bamalli Polytechnic, Zaria, amongst others.

Dr Muntaqa Umar-Sadiq, CEO, The Private Sector Health Alliance of Nigeria

Summit speakers and panellists at the Summit

The Private Sector Health Alliance of Nigeria corner

Cross section of the participants

Bankole Oloruntoba, Founder, Enspire Incubator during interview with the press at the Summit

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Events

The Creative Architects Summit & Competition

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he Creative Architects event held on the 8th, August 2017 at Muson Centre, Onikan, Lagos and in Abuja on the 10th, August 2017 at The Collonade; Nicon Luxury Hotel. Creative architects is an annual event. The event is the postlude to a Competition for architects in Nigeria. The 2017 Competition ended on Monday, 31st July 2017 and three major winners emerged. Theo Lawson, Binta Suleiman and Olumide Ayodele were the principal speakers at the event.

The top three group winners of the competition are: Owoyele Olumide, Iheanacho Victoria, Babalola Tobi as 1st Place; Moshood Emmanuel, Osagie Omosigho, Odeyemi Oluwayemi as 2nd Place and Fatai Osundiji, Ayo-Loto Emmanuel, Ogunkunle Tunde as 3rd Place.

First Position for the 2017 competition

Speaker: Theo Lawson

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Events

Nikon Nigeria Video / Photo Summit & Video Competition

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he Nikon Nigeria video and photo summit 2017 took place on the 10th of August at the Welcome center hotel Lagos, Nigeria. The event was set out to mark the Nikon 100th year anniversary. The event was organized by New Creation Worldwide Link Nigeria Limited, the representative of Nikon in Nigeria. The event was preceded by a photo walk in Lagos. All participating members were duly guided and briefed about the rules guiding street photography.

The Nikon Nigeria video and photo summit gave an opportunity to aspiring photographers to learn from professional industry players. It offered them the opportunity to get mentors and learn how not to repeat the mistakes of others. Notable industry players like Idowu Asumah, Gbenga Akindele – Nelly including Pradeep Mohan and Richard Eko of New creation worldwide were in attendance.

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Events

Creative Content conference 2017

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igeria’s first content market held on August 4th, 2017 at the Oriental Hotel, Victoria Island Lagos, the event was organised by VEXPO AFRICA, an initiative from Vortex Studios International. The theme of the event was “Africa First!

Growing our Roots” and it had over 200 people in attendance, consisting of over 100 registered content developers, over 20 Local TV networks, Distribution platforms & online platforms, international brands such as AFP, BBC and CANAL+.

The main panel was powerful as it involved a well curated panel of industry influencers; Eunice Omole Chief Strategy Officer of EBONYLIFE TV, Jane Maduegbuna Executive Director of AFRINOLLY, Matthew Okoduwa, Lagos Zonal Director of NBC, Zubby Emodi Head of RDM Nigeria and many more. The event had guest appearances from NFC, Chioma Ude Founder of AFRIFF, Obi Asika Founder of Social Media Week Lagos, Charles Olojede of INVIEW Technologies and Mimi Bartel of FilmOne sharing some amazing figures of Nollywood Movies.

The market session was a great platform as it connected content developers from the IREP Film Festival, AFRIFF, RTF, ANIMATION NIGERIA and NFC to the over 20 TV platforms from African Magic, Wazobia MAX, AFOREVO, Accelerate TV and many more.

Eunice Omole, Jane Maduegbuna, Matthew Okoduwa

Chigul, BB Sasore, Patrick Diabuah BANANA ISLAND GHOST team

African Magic Team

IREP and Obi Asika

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Interview

INTERVIEW AFRIFF is a world-class showcase that presents a complete immersion into the world of film making with participation from local and international filmmakers and professionals, celebrities, actors, directors, film critics, buyers, distributors, visual artists, film students, amateurs, equipment manufacturers, and international press.

Maintaining its inaugural theme “Africa Unites�, the vision is to raise awareness in Africa about the vast potential the entertainment industry holds and the impact it can generate in the economy.

afriff...

The Africa International Film festival was founded in 2010

by Ms Chioma Ude, an ardent film lover and entrepreneur.

Her passion for the industry grew more intense after her involvement in the production of the 2007 Nigerian Film and Video Censors Board (NFVCB) UK Roadshow. Ms Ude then went on to produce the 2008 Africa Movie Academy Awards (AMAA) during which she instituted the philanthropic arm of the awards by conceiving the AMAA Charity Benefit. This novel initiative was designed to be an annual Corporate Social Responsibility (CSR) platform for industry practitioners and

Chioma Ude stakeholders to give back to society.

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Interview

Interview with, Chioma Ude Founder, AFRIFF

What is your Film Festival succeeding at doing for filmmakers?

AFRIFF is very successful in supporting filmmakers and their aspirations in a number of ways. Firstly, AFRIFF excels in showcasing new talent. It remains a equivocal leverage event in the film industry for up-and-coming filmmakers to get their name out there and showcase their work. By submitting their work and making it to the AFRIFF final programme their work is seen and heard by a big audience. Whether the film passes muster or not with the audience, the filmmakers get recognition simply by getting it screened in a reputable festival such as AFRIFF. Those with the skill to win over the audience and receive awards reap further benefits.

What should attendees expect to experience at the festival?

Besides all of these values that AFRIFF delivers, nothing compares to attending its exceptional events in person and experiencing the excitement and fascination for yourself. It brings together filmmakers together from all over the world for a week of exceptional connections, conversations and networking. It showcases over 150 films from the best in Africa and the rest of the world. Brings together all the heavyweights and celebrities in the industry, provides a week of wonderful social experiences, premieres and parties as well as its phenomenal closing ceremony /awards gala.

Are there any qualifications for selected films?

Yes. There are simple set rules which guide submissions to every festival. Simple rules like year production, film genres etc. Also AFRIFF insists on selecting the best Africa films each year and the best cinematic impulses from the African diaspora as well.

What are your overall impressions of the Nigerian films in cinemas this year?

Nigerian films in the cinema are doing well and building bigger audiences daily for the industry. The box office hits this past year has been a blessing for the industry, with more and more films hitting the 100 million naira box office mark which will phenomenally deepen the investment in the local film industry, and continue to ensure that more screens are built to reach more and more people across the country. Even though the most successful genre has been romantic comedies so far, overall, this success will ensure that other genres get a chance to succeed as well going forward. So hopefully, a thriller or horror film will be the next biggest thing soon. Personally my money is on an animated feature causing that feat in the nearest future.

well-rounded characters, absorbing dialogue, engaging talent, strong visual appeal, and overall outstanding cinematic achievement.

What new things do you have planned for the next Film Festival?

The next edition promises more excitement because of the partnerships with the French to deliver a French film programme, another collaboration with the British Council and the British Film Institute, the National Film and Video Foundation (NFVF) of South Africa and the Kwazulu Natal film Commission (KZNFC) as well as other industry developments in the offing.

Apart from Nigeria, Which African country has the most exciting local film industry?

Ghana closely followed by South Africa have the most vibrant industries aside from Nollywood. A lot of excitement is also currently being generated in Egypt, Uganda, Rwanda and Kenya Which movies do you consider as your greatest catches of the year, so far?

We have a couple of new premieres that we are excited about but cannot announce at the moment until our programme In one sentence, what makes a great announcement on the 25th of film?

September.

A great film is a piece that successfully combines a strong plot with MARKET DIGEST NIGERIA 49

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Interview

N

igeria’s movie industry, popularly referred to as Nollywood, is considered to be the third largest in the world. It has an estimated worth of $250 million and churns out thousands of movies every year. There is a winsome era of filmmaking, which most Nigerians are oblivious to. An era that has nothing to do with the classic 1992 movie “Living in Bondage”, 1984 “Papa Ajasco”

by Wale Adenuga which became the first blockbuster, grossing an estimate of 61,000 naira in three days.

At the last quarter of last year the romantic comedy The Wedding Party became the first movie from Nigeria’s growing film industry to break 400 million Naira ($1.3 million). And in 2016 Nollywood’s combined box office topped 3.5 billion Naira ($11.5 million) with 30% of ticket sales generated by local movies. To a Hollywood watcher those numbers will seem tiny, but for a burgeoning movie business growing out of years of rampant disc piracy and a battered economy, this was a breakthrough. The industry holds great promise, as Nigeria once again, begins to pay attention to the non-oil sector. Nollywood’s most influential people today, are a collection of thinkers and doers, actors and writers, leaders and super stars at home and abroad, one of such people that have what it takes to make the Nollywood dream come true is David Anga.

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Interview

An Interview with Actor and Film Director David Anga, WhiteFox Productions

You are well educated in media and filmmaking. What attracted you to filmmaking? What does it mean for you to be a director?

The collective craft of storytelling and visual artistry is what really attracts me to filmmaking; also being able to evoke an emotion out of an audience, whether it’s to smile, cry, be captivated or influenced. Being a Director to me is about handling the responsibility of effectively crafting a story by merging the performance, sound, visuals, production design etc to serve an audience.

I often tweak this famous quote to describe directors as “the jack of all trades but the master of one”.

We only have to be fairly knowledgeable about all the aspects of filmmaking but master the one role of directing a whole crew of creatives which include camera/ sound operators, designers and performers amongst other.

What made you decide to create WhiteFox Productions? Was there a particular moment that sealed the decision for you?

It was during the early stages of my filmmaking career when I started making short films independently. From the moment I realized the role of a director was my best suit, I felt I needed to create a platform and brand to showcase my ability so I created WhiteFox to serve that purpose. It has grown to become more of my independent brand than a company.

Tell us about your company’s profile today? Can you tell us about some of your projects?

So far I have a number of short films and documentaries under my belt as well my first music video last November. I recently completed my crime-drama film Blindside which is now ready for festival submissions and distribution. Blindside is about a ring of underground criminals who deal in the illegal sale of human organs.

The film focuses on one fateful night when a trade takes a blind turn. The teaser as well as more of my work is live on my YouTube page – WhiteFoxTV and vimeo. com/whitefoxproductions I get the feeling from your work that you are trying to answer questions about identity, culture and family. Tell us about your approach.

How would you describe your production style?

I get my inspiration from real-life situations and events, whether it be a moment I have lived or witnessed. I don’t so much as try to answer questions but attempt to represent human relationships, identities and culture as accurately as I can. I believe life itself is full of intrigue and drama so staying true to reality is always my aim when making films.

I’m also fond of weaving in clues and intricate information in my story ad visuals, just so the audience can get involved and delve into the it by reading between the lines.

Social media as a digital platform has changed the film industry, but how has it had a positive impact on your work?

It has offered me the platform to independently showcase and promote my work. It is also a great networking tool that has connected me with lots of brilliant creative partners and opportunities. A lot of what I do daily now seems to revolve around a form of social media platform in one way or another.

What is your ultimate goal when it comes to your work? What do you want to be remembered for?

My goal when I work is to be able to do justice to the content and story in the most compelling way possible for the audience. I want to be able to leave an impression on the mind of my audience so that they are able to discuss and debate their feelings on the subject matter afterwards.

It would be great to be remembered for making a catalogue of authentic movies which depict stories with substance in a way that people strongly relate to and are inspired by.

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Lifestyle

LUXURY LIVING BMW i8 2017

There are few cars that make a stronger first impression than the BMW i8. A plug-in hybrid with exterior styling that wouldn’t look out of place in a sci-fi epic; the i8 is one of a kind. Its mix of efficient technology, sporting credentials, and an astronomical price tag leave it with few natural competitors.

Eau De Karma Happiness

Beosound 1

BeoSound 1 is a portable wireless speaker with an impressive 360-degree sound performance, a rock-solid aluminium exterior crafted for mobility

Eau de Karma Happiness is a floral fresh fragrance that has the effect of a moment of stillness and inner contemplation, soothing to mind, body and soul, like a salutation to the sun.

Samsung ArtPC Pulse

ArtPC Pulse is a desktop PC that challenges traditional perceptions of how a desktop PC should look and operate. It redefines the design of computers, as we know it.

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Lifestyle

Versace Women’s Destiny Precious Mother Of Pearl Watch

This glamorous woman’s Versace Destiny Precious wristwatch, combines precious materials and superior craftsmanship

Bowers & Wilkins P9 Premium Headphones

P9 Signature raises the bar for performance from a mobile headphone.

HTC VIVE – Virtual Reality System

Putting on the VIVE headset washes away the real world with fantastical experiences

) Globe-Trotter F1-Inspired Carbon Fibre Case

To mark its 120th Anniversary, Globe-Trotter has launched a new limited-edition Carbon Fibre Trolley Case

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Fashion

Necktie Knots & Color

Companies are using specific colors to emphasize a certain brand image that they want to portray. Take the household cleaning companies for instance. Their logos are ususally green to underline their stance on environmental sustainability. Just like companies are using colors to evoke certain emotions and responses in their customers, so can a man by picking certain clothing colors. While suits and shirts typically don’t leave much room for color, it is the necktie that is the perfect accessory to take advantage of “the power of color”.

Red Ties

The bright red necktie is commonly referred to as the “power tie”.

Red is an attention grabbing color that is commonly associated with passion, power, love, and authority. Unless you are looking for a bold look that makes you center of attention, stay away from bright red neckties. When you are taking the lead on a project or want to convey a sense of ambition, consider a bold shiny red. A matte or printed red tie can be a more subtle way to convey power.

Blue Ties

Blue is men’s favorite color. It connotes a calm and soothing nature, elegance, and maturity. It is not surprising that the navy blue necktie is the most commonly sold tie color. It is a trusted color and gives confidence. A solid navy blue tie would look great when paired with classic white shirt and a light gray pinstriped suit.

Orange Ties

Orange is sometimes called the “happy color”. Check out Hermes’ collection of pastel and peach colored neckties out of this year’s collection for instance. While lighter shades of orange are great for dry season, darker orange

(burnt orange and persimmon) are excellent for raining season.

Black Ties

Black is a formal color; it shouldn’t be news to anyone. For a reason we speak of Black Tie dress code.

While you might not wear them to executive meetings on a regular basis, wearing black ties to a cocktail party or even an upscale dinner gives off a sophisticated vibe But beware: the formal black color can feel arrogant or overdressed in many situations. “Avoid it if being one of the ‘boys’ at work is necessary as you climb up the ladder.

Grey ties

It’s often smarter to stick to grey shades. A grey tie can help give you a more sophisticated look without seeming pretentious.

“Grey is kind of edgy and it can look very modern,” To pull it off; pair it with a lighter, pastel-colored shirt. Look for lighter grey shades and shiny finish for a more polished look.

Green Ties

too distracting, and it can also be difficult to find matching suits or shirts. Still, a light green tie with a subtle print can pair well with a neutral-colored shirt.

Brown Ties

Brown is commonly referred to as “the mature color”. If you are looking to portray a mature and established personality, then the brown necktie is right for you. But if you are eager for a promotion and want to stand out in the workplace, skip these colors altogether.

Pair the brown tie with a navy suit, off-white dress shirt, and dark brown dress shoes.

Purple Ties

Purple is often times referred to as “the royal color”. Purple is a shade that is commonly associated with nobility but also with religion.

Light purples (such as lavender and iris) are excellent especially when paired with tan or light gray summer suits. Plum and eggplant shades are great choices for the man seeking to add some interesting color to his business uniform.

Green can signal several things, from rebirth to the color of money in some countries. But, surprisingly, it can be too loud for the workplace. A bright green is often

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Fashion

Psychology

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Lifestyle

AUTOMOBILE

10 Electric Vehicles With the Best Range in 2017 It’s easy to think of electric cars as a relatively new concept, but they’ve actually been around since the 19th century. Buyers fell out of love with them in favor of petrol and diesel, but now electric cars are back and better than ever. Electric vehicles have come a long way. Back in the early days, consumers tended to laugh at the worst EVs on the U.S. market. Once the prize-winning EVs by Tesla appeared, green cars were never the same. As of 2017, you can find Hyundai and BMW officially in the plug-in mix along with Nissan, Tesla, and Detroit.

There’s an ever-increasing range of new electric cars on the market, which is leading more and more new car buyers to swap pump for plug. The majority of electric cars are now capable of travelling more than 100 miles on a charge – up to 300 miles in some cases – and their recharging time has tumbled. Batteries have also become smaller and lighter, benefitting the packaging, efficiency and handling of these vehicles. Here is our Top 10 list by Jaclyn Trop

1

2017 Tesla Model S Driving Range: 335 miles The sedan that started the electric car craze, the Tesla Model S, has been a leader in proving that battery power can be stylish and desirable, although it doesn’t come cheap. The Model S starts at $68,000 but quickly reaches the six-figure range when equipped with larger battery packs, allwheel drive, and optional technology. The 100D has the best driving range and tops $110,000 when equipped with all of the available features.

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Lifestyle

2017 Tesla Model X Driving Range: 295 miles

2

Chevrolet Bolt EV Driving Range: 238 miles

The gull-winged Model X is one of our top-ranked luxury midsize SUVs for its sleek styling, athletic handling, and dynamic acceleration. The Model X starts at $85,500

3

The Chevrolet Bolt, the all-new, all-electric sedan from Detroit, has captured attention for its sub-$40,000 price tag and impressive 238-mile range. Starting at $36,620, the Bolt is the viable mass-market rival to the Tesla Model S.

4

Volkswagen e-Golf Driving Range: 126 miles

The 2017 all-electric version of Volkswagen’s sporty Golf hatchback can travel up to 126 miles on a fully charged battery. Starting at $28,995, the new Volkswagen e-Golf will come with an optional digital cockpit system that borrows display technology from its sister brand Audi.

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Lifestyle

5

2017 Hyundai Ioniq Electric Driving Range: 124 miles

The all-electric Ioniq hatchback from Hyundai can travel 124 miles before needing a recharge.

6

2017 Nissan Leaf Driving Range: 107 miles

The base S model travels 84 miles on a battery charge, while higher trims can reach 107 miles. The five-passenger hatchback is roomy for a compact car and comes standard with the NissanConnect infotainment system with a 5-inch display screen. The Leaf starts at $30,680.

BMW i3 Driving Range: 114 miles

Starting at $42,400 the BMW’s updated 2017 i3 small electric car travels 40% farther than the previous generation, reaching 114 miles on a battery charge.

7

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Lifestyle

8 Kia Soul EV Driving Range: 93 miles

2017 Mercedes-Benz B250e Driving Range: 87 miles

Starting at $39,900 the Mercedes-Benz B250e, the all-electric version of the brand’s B-Class, doesn’t provide as much range for the buck as its competitors do.

Starting at $32,250 the all-electric version of Kia’, boxy Soul compact car travels 93 miles on a battery charge, which is average for electric cars in its price range

9

2017 Fiat 500e Driving Range: 84 miles

The Fiat 500e starts at $31,800, more than twice as much its gasoline-powered counterpart. Fiat’s battery-powered subcompact travels 84 miles on a charge

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Economy

Igbokwe F. Charly

Nigerian Regional Groups Move For Oil Control As Major Economies Move To Ban Petrol Engines

In an article published by the Telegraph, a futuristic forecast by a Stanford University economist Tony Seba, titled: Rethinking Transportation 2020-2030, predicts that the next generation of cars will be “computers on wheels”.

Google, Apple, and Foxconn have the disruptive edge, and will go in for the kill. Silicon Valley is where the auto action is, not Detroit, Wolfsburg, or Toyota City. “The electric drive-train is so much more powerful. The gasoline and diesel cars cannot possibly compete,” Mr Seba said.

T

his visible practical prediction, is unfolding before our eyes, and it is coming on the backdrop of various Nigerian ethnic and regional groups agitating for restructuring and resource control (oil). This agitation and competition for control of oil resources has given birth to a new industry in Nigeria called the ‘Resource Control Industry’ otherwise known as ‘resource control movement’. This debate and argument has created tension and friction between those who feel they are being short changed by the Nigerian Federation (mainly the states, tribes and peoples of the Niger Delta region), the Non- Oil Producing States and the Federation Government in Abuja.

The current arrangement is that

all oil discovered on and off shore belongs to the Nigerian State. All receipts are due to the Federal Government and the FG has a constitutional duty to remit 13% of revenues back to the source of its derivation in the Niger Delta.

In the past, before Oil became the main source of national sustenance, the Nigerian arrangement was based on a 50-50 derivation between the Regions and the Centre.

Nigeria’s Oil Exports

The National Bureau of Statistics, NBS, says Nigeria exported crude oil valued at N2.38 trillion in the first quarter of 2017. It stated in its First Quarter of 2017 Foreign Trade Statistics that Europe was

the highest buyer of Nigeria’s crude oil, as Nigeria exported N810.287 billion-worth of crude oil to the continent in the quarter under review. The country also exported N749.227 billion-worth of oil to Asia; N450.586 billion to the Americas; and N361.56 billion to other Africa countries.

Over a 12-month period, from June 2015 to May 2016, according to a document obtained, from the Nigerian National Petroleum Corporation, NNPC. India, Spain and The Netherlands have emerged biggest buyers of Nigeria’s crude oil According to the NNPC; Nigeria exported a total of 319.747 million barrels of crude oil to the three countries in the period under review, representing 42.98% of its total crude oil exports of

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Economy 743.958 million barrels.

Specifically, India imported 157.527 million barrels of crude oil from Nigeria, representing 21.17% of Nigeria’s total crude oil export, while Spain purchased 84.491 million barrels of the country’s crude oil, representing 11.36% of total exports. The Netherlands followed, accounting for 10.45% of Nigeria’s total crude oil export, with the purchase of 77.729 million barrels of oil. Despite claims that it had stopped import of crude oil from Nigeria. Nigeria’s crude oil export to France stood at 51.467 million barrels, representing 6.92% of total crude export for the period, while the United Kingdom accounted for 5.35% of Nigeria’s crude oil, as 39.824 million barrels of crude oil was exported to the country.

In addition, the NBS stated for 2017: “On a sectorial/product basis, crude oil accounted for the largest share of total trade with 44.91%, followed by other oil products — 23.37%; manufactured products — 21.93%; raw materials — 5.12% and Agricultural products —4.35%.

The End of Nigeria’s Oil Economy and the move to electric cars

As Nigeria’s regional groups are struggling to control oil, which is the mainstay of the economy, due to its needs by the West, the West is moving towards a new source of energy. It is the beginning of the end for the internal combustion engine, the invention that changed human life forever.

It won’t be a world without cars.

But the car powered by the burning of fossil fuel at different times and in different places a symbol of technological progress, of

Ride and Drive EVs Plugn DriveOntario power, of wealth, of capitalism, of freedom and, yes, of a particular kind of masculinity is entering the final phase of its life. The shift, according to Mr Seba, is driven by technology, not climate policies. Market forces are bringing it, with a speed and ferocity that governments could never hope to

“We are on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history,” achieve. “We are on the cusp of one of the fastest, deepest, most consequential disruptions of transportation in history,” Mr Seba said. “Internal combustion engine vehicles will enter a vicious cycle of increasing costs.”

According to him, the “tipping point” will arrive over the next decade as EV battery ranges surpass 200 miles and electric car prices in the US drop to $US30, 000 ($40,600). By 2022, the low-end models will be down to $US20, 000. After that, the avalanche will sweep all before it. “Certain highcost countries, companies, and

fields will see their oil production entirely wiped out. Exxon-Mobil, Shell and BP could see 40% to 50% of their assets become stranded,” the report said. OPEC claims it will take much longer, but whether OPEC believes its own claims is doubtful. Saudi Arabia’s actions suggest otherwise. The kingdom is hedging its bets by selling off chunks of the state oil giant Saudi Aramco to fund diversification away from oil.

Today, the major car manufacturers are investing heavily in the electric car technology so it seems likely that soon they will become a much more viable option, especially with “a set date” to ban the petrol engine by most Western governments. Partly in response to recent emissions scandals, European automakers are expressing a newfound interest in electric vehicles and other zero-emissions drivetrains. At the Paris Motor Show last month, BMW, Mercedes-Benz, Renault, Volkswagen and numerous other automakers all showed concept cars and future products that focus on emissions-free driving, whether via battery-electric or some other form of propulsion.

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Economy Germany pushes to ban petrol engines within next 20 years: Germany’s federal council, the Bundesrat, has passed a resolution calling for a ban on combustion engine cars by 2030. German citizens would only be permitted to purchase electric or hydrogen-fuelled cars. The resolution, which has received cross-party support but has no legislative effect, calls on the European Commission to implement the ban across the European Union. It also urges the European Commission to “review the current practices of taxation and dues with regard to a stimulation of emission-free mobility.”

Greens party lawmaker Oliver Krischer said the ban is needed to reach the requirements put forward in the Paris agreement.

“If the Paris agreement to curb climate-warming emissions is to be taken seriously, no new combustion engine cars should be allowed on roads after 2030,” Mr Krischer said. A switch to zero-emission cars is likely to put thousands of German auto industry jobs at risk as electric cars only require 10% of the work force to assemble, not to mention the facilities and oil and gas jobs in Nigeria.

“The German car industry is one of the most powerful in the world.

If this bill is passed into law, it could be a pivotal moment in the shift towards a cleaner transport system and the battle against air pollution,” Ms Hamid said.

Netherlands & Denmark on brink of banning petrol-fuelled cars: Netherlands joined a host of nations looking to pass innovative green energy laws. The Dutch government has also set a date for parliament to host a roundtable discussion that could see the sale of petrol- and diesel-fuelled cars

banned by 2025. It intends to join Norway and Denmark in making a concerted move to develop its electric car industry. The consensus-oriented parties of the Netherlands are set to consider a total ban on petrol and diesel cars in a debate on 13 October.

Richard Smokers, principle adviser in sustainable transport at the Dutch renewable technology company TNO, said the Dutch government was committed to meeting the Paris climate change agreement to reduce greenhouse emissions to 80% less than the 1990 level. The plan requires the majority of passenger cars to be run on CO2-free energy by 2050.

“Dutch cities still have some problems to meet existing EU air quality standards and have formulated ambitions to improve air quality beyond these standards,” If the law to ban the sale of new fossil-fuel cars by 2025 passes, a significant move will have been made towards phasing out all petrol and diesel cars by 2035, added Dr Smokers. His words come after Jan Vos, a member of the country’s Labour Party, hailed the success of the proposed ban in passing through the Netherland’s lower parliament.

“We need to phase out CO2 emissions and we need to change our pattern of using fossil fuels if we want to save the Earth,” Norway has hit its target of selling 50,000 electric cars three years ahead of its own target, in part owing to strong financial incentives to purchase the more environmentally friendly model. Electric vehicles have been exempted from VAT and purchase tax, which would otherwise add 50% to the cost of the vehicle, under New Norwegian laws. Denmark, meanwhile, produced so much electricity from wind power in July last year that it was able to sell its excess to Germany, Norway and Sweden.

‘We need to phase out CO2 emissions and we need to change our pattern of using fossil fuels if we want to save the Earth,’ says a Dutch Labour Party member France to ban petrol and diesel cars by 2040: France will end sales of petrol and diesel vehicles by 2040 as part of an ambitious plan to meet its targets under the Paris climate accord, Emmanuel Macron’s government has announced. The announcement comes a day after Volvo said it would only make

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Economy fully electric or hybrid cars from 2019 onwards, a decision hailed as the beginning of the end for the internal combustion engine’s dominance of motor transport after more than a century. Nicolas Hulot, the country’s new ecology minister, said: “We are announcing an end to the sale of petrol and diesel cars by 2040.” Hulot added that the move was a “veritable revolution”. He said it would be a “tough” objective for carmakers but France’s industry was well equipped to make the switch.

“Our carmakers have enough ideas in the drawer to nurture and bring about this promise ... which is also a public health issue.”

Hulot insisted that the decision was a question of public health policy and “a way to fight against air pollution”. The veteran environmental campaigner was among several political newcomers to whom Macron gave top jobs in his government.

Britain to ban sale of all diesel and petrol engines from 2040 Britain is to ban all new petrol and diesel cars and vans from 2040 amid fears that rising levels of nitrogen oxide pose a major risk to public health. The commitment is part of the government’s much-anticipated clean air plan, which has been at the heart of a protracted high court legal battle.

The government warned that the move, which will also take in hybrid vehicles, was needed because of the unnecessary and avoidable impact that poor air quality was having on people’s health. Ministers believe it poses the largest environmental risk to public health in the UK, costing up to £2.7bn in lost productivity in one year.

Ministers have been urged to

introduce charges for vehicles to enter a series of “clean air zones” (CAZ). The final plan, which was due by the end of July, comes after a draft report that environmental lawyers described as “much weaker than hoped for”. Some want the countrywide initiative to follow in the footsteps of London, which is introducing a £10 toxic “T-charge” that will be levied on up to 10,000 of the oldest, most polluting vehicles every weekday.

Prof David Bailey, an automotive industry expert at Aston University, said: “The timescale involved here is sufficiently long-term to be taken seriously. If enacted it would send a very clear signal to manufacturers and consumers of the direction of travel and may accelerate a transition to electric cars.”

EU to ban cars from cities by 2050 Cars will be banned from all other cities across Europe under a draconian EU master plan to cut CO2 emissions by 60% over the next 40 years. The European commission June this year unveiled a “single European transport area” aimed at enforcing “a profound shift in transport patterns for passengers” by 2050. Top of the EU’s list to cut climate change emissions is a target of “zero” for the number of petrol and diesel-driven cars and lorries in the EU’s future cities.

Siim Kallas, the EU transport commission, insisted that Brussels directives and new taxation of fuel would be used to force people out of their cars and onto “alternative” means of transport.” That means no more conventionally fuelled cars in our city centres,” he said.

“Action will follow, legislation, real action to change behaviour.”

Japan: In Japan, home to the world’s top-selling electric car, the Nissan Leaf, political support for a phaseout appears high. Prime Minister Shinzo Abe has called climate change a “defining issue of our time,” and is working on a national infrastructure plan. Sources close to Abe say it will pair subsidies for so-called city cars, short-range electric vehicles, with investments into the country’s rail network outside major metropolitan areas, to make it easier for people living outside the biggest cities to travel on public transport.

Eight US States To Ban Petrol And Diesel Car Sales From 2050 In a report by Brad Anderson, a total of eight American states so far have announced their intention to ban the sale of new petrol and diesel cars from the year 2050. This US states follow the zero-emissions vehicle (ZEV) mandate of California and plan on completely banning the sale of petrol and diesel cars in 35 years.

They are Rhode Island, Connecticut, Maryland, Massachusetts, New York, Oregon and Vermont.

According to Car and Driver, this initiative, along with others planned around the world, will slash global CO2 emissions by 40% and result in sea levels and temperatures dropping.

India: India is drawing up plans to phase out all petrol and diesel cars by 2032, leap-frogging China in an electrification race across Asia.

The brains trust of Prime Minister Narendra Modi has called for a mix of subsidies, car-pooling, and caps on fossil-based cars.

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Interview

Q&A with

Ida Froyda

Head of Communications & Marketing

Corion Platform CORION was created by the CrypMo Foundation, a Switzerland-based organization. The company lists its developers, contributors, and other professionals at the official website, Corion.io. The company was first organized between 2015 and 2016, when they started performing market research and creating a business and development plan. By Q1 2017, they had started developing the CORION wallet. By Q3 2017, the company released the first version of the wallet, which offers features like two-factor authentication, transaction history, secured asset and private key storage with 256-bit AES encryption, and multiple currency account management.The wallet will be available through a secured web app.

By the end of Q4 2017, the company hopes to release its wallet app for iOS and Android, integrate at least one fiat currency in the platform, and introduce 5 more major cryptocurrencies. In 2018, CORION plans to introduce multi-signature verification, card and NFC payment methods, investment options, P2P lending, trading options and cloud mining.

Bitcoin, the digital currency based on blockchain technology, has become seriously popular, seriously quickly. Unsurprisingly, Bitcoin currently has the highest market capitalization of all the cryptocurrencies. However, Bitcoin is to blockchain what email is to the Internet – it’s just one application. New options are cropping up regularly, especially now that companies are beginning to invest in their own digital ledgers. As the hype intensifies, the number of competing cryptocurrencies can be confusing. Even so, there are some clear challengers on the rise. One of such challengers is Corion Platform, which recently launched in Nigeria.

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Interview To get right into it, can you tell us about your background and your career, how you became interested in Blockchain and cryptocurrencies, and how you decided to join Corion platform?

People usually tell me ‘You are lucky’. I admit, I am. I have always had the privilege to study. I graduated first as an economist, then I got my degree in linguistics.

I have improved my abilities in several personal and professional courses and trainings that helped me through many obstacles. I have established eleven companies, six were international joint ventures which I sold .

By default, I am a life-long learner, open to novelties. That’s how I came across Blockchain and cryptocurrency. For many years my major concern has been the question of ‘freedom’. The freedom of the individual to choose what they want, and to decide on their own without being compelled, directly or indirectly, by any external force.

What is Corion platform about?

We at CORION have developed a unique platform, with a revolutionary protocol to truly change the world paradigm in finance and commerce. Finally, merchants and investors can feel secure using and buying a digital asset without the dangers of “pump and dump,” without the volatility so common in other cryptocurrencies.

For me, CORION Platform is a tool to achieve the kind of freedom I mentioned before. It is an opportunity for anyone to build financial independence.

What is blockchain and Cryptocurrency, what problems do they solve?

To put simply, they disrupt the

centralized control in our finances, grant data protection, fast and secure transactions never seen before.

In 2009, a certain Satoshi Nakamoto, created a protocoll to be used as electronic money, and a payment processor as well. His innovation named Bitcoin, is a gamechanger, because people are free to transact, to send and receive funds without a 3rd party control or supervison. The system is based on cryptography, and millions of computers run and check whether their database matches that of the others’.

How do you think the people working with blockchain can drive greater acceptance of cryptocurrencies among the “general public”, people who aren’t intimately familiar with blockchain technology?

Make it simple, cheap and easy to use.; show its benefits, and give rewards for the users.

For CORION part, we created a platform with multiple services, including the first multifunctional and yet the simplest wallet for fast and cheap transactions. In addition, CORION Platform incentivizes the merchants and consumers, in fact each member for the regular usage of our coin.

The ‘Fair Distribution of Wealth’ has become a reality in our system. Each and every coin holder is entitled to get a stake from the daily coin release up to 2.5% per day.

Corion Platform was recently launched in Lagos. Do you see the Nigerian regulatory environment becoming more favorable when it comes to cryptocurrencies, and Bitcoin trading in the future?

For me, being a non-Nigerian citizen to express any opinion about the perspectives of cryp-

tocurrencies in your country would be disrespectful, unfair and unfounded. Regulators all over the world have shown increasing interest towards the subject recently.

It is well understood cryptocurrency is at our threshold, actually one foot is already in.. Wise decisions will be made by the Nigerian government and regulators as well. It won’t take long crypto will become the ruling payment asset of the upcoming years. I trust corion will be on the top.

How do you factor in-security with Blockchain and Crytocurrency?

Whenever a transaction is started, all the data are encrypted in break-proof chains of codes, which are, as per today’s knowledge, impossible to be hacked in our lifetime.

What sorts of emerging trends are you seeing with the overall blockchain landscape in Nigeria? And what do you foresee as the future of the digital payments industry in Nigeria?

Based on my ten-day experience in the field, I firmly believe that Nigeria will take the most benefit of CORION Platform and will be the flagship to lead the developing countries in its introduction.

We trust as more and more merchants and services are involved to accept corion as a payment asset, it will take a positive turn and spreading the use of cryptocurrency will enjoy the support of the government. Especially, because we at CORION can see now the extreme benefits for developing economies. In Lagos we already signed agreements with two companies; one is SamrtCab an online taxi service, the other is Kaavwin an e-Commerce company.a

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Finance

THE ROAD TO RECOVERY Bank Lending and the Jobless Recovery

Esele W. Odion

A

n economic recovery can be defined as the period of time from the official trough of the business cycle up to the date at which real GDP per capita returns to its prior peak. If we listen to most Nigerian economists, we are told that the recession is over and we are in a period of recovery. In fact, The National Bureau of Statistics (NBS), the official voice on this matter, from Data released in July this year, the 2016 4th Quarter Gross Domestic Product (GDP) Report shows a significant improvement in the country’s economic fundamentals and promising signs that things are beginning to turn for the better.

Indicators in the critical sectors

show some encouraging improvements compared to those of the previous six months and also signposting a gradual recovery from recession. According to the report, Gross Domestic Product (GDP) contracted by -1.30% in the quarter which translates to an estimated growth rate of -1.51% for the year so far. Though the released figures reflect the slowdown in the economy for most part of that year, it also shows that the economy is gradually scaling up as indicated by improving trends in several key sectors.

Fortunately, most Nigerians focused on making a living see right through this illusion. For example, The World Bank’s in its

newly released Bi-annual Economic Update, has revealed that Nigeria faces the prospect of fragile economic recovery in 2017 given the high degree of fragility and risks from future shocks to the oil price or further unrest in the Niger Delta region. There is now an ongoing attack on the free-enterprise system that for over a century has made Nigeria the greatest economic power in Africa. Millions of dollars have been spent “pump-priming” the Nigerian economy.

Additionally, in the first quarter of 2017, In an effort to support and shore-up the value of Naira, the Central Bank of Nigeria (CBN) flooded commercial banks with

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Finance dollars. The banks were reported to be holding excess Forex and were seeking customers to buy the foreign currencies. The banks had so much dollars that its marketers were asked to encourage customers to request for the greenback.

The bank wanted to avoid a situation where it would be forced to return excess Forex to the CBN. Doing so would force the CBN to reduce the quantity of Forex sold to the bank. Ironically, all of this intervention was aimed at “stabilizing” the market and at reducing unemployment. But what has all this intervention accomplished?

Not much. The purchasing power of the Naira is still poor and worsened over this period. The National Bureau of Statistics last month said the country’s unemployment rate has risen from 12.1 per cent in the first quarter of this year to 13.3 per cent as at the end of the second quarter, which we know is much higher. As the employment numbers are released, it becomes increasingly clear that job growth is anemic.

Nigeria’s Unemployment Problem Is Getting Worse The harsh economic situation currently facing the country may have forced about 3.67 million Nigerians into the unemployment market within a one-year period covering October 2016 to July 2017 alone, figures obtained from the National Bureau of Statistics (NBS) have revealed. According to an analysis of the unemployment report for the period, the number of unemployed Nigerians rose from 7.51 million in the beginning of the October 2015 to 11.19 million at the end of September 2016. The unemployment rate in Nigeria increased to 14.2% in the

last quarter of 2016 from 10.4% a year earlier. It is the highest jobless rate since 2009 as the number of unemployed went up by 3.5 million to 11.549 million while employment rose at a slower 680.8 thousand to 69.6 million. The labor force increased by 4.194 million to 81.151 million and those detached from it declined by 625.7 thousand to 27.439 million.The unemployment rate was higher for persons between 15-24 years old (25.2%), women (16.3%)

the underemployed rate rose to 21.0 per cent in the fourth quarter of 2016 from 19.7 per cent recorded in the third quarter of the same year. Analysts said the rise in the unemployment and underemployment rate was due to the negative economic growth recorded by the nation in 2016.

It’s the ninth consecutive quarter that the unemployment rate in Nigeria has increased.

Employment has faltered as businesses struggle amid Nigeria’s first recession in two decades.

The NBS noted that as the number of unemployed people in the economy is growing, the number of underemployed people is also rising. According to the report,

quarter, and decreased by 1.92 million or 3.5% when compared to fourth quarter of 2015. The number of underemployed in the labor force (those working but doing menial jobs not commensurate with their qualifications or those not engaged in fulltime work) increased by 1,109,551 or 7.0%, resulting in an increase in the under-employment rate from

Meanwhile, the total number of persons in full time employment decreased by 977,876 or 1.8% when compared to the previous

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Finance 19.7% (15.9 million persons) in third quarter 2016 to 21.0% (17.03 million persons) in fourth quarter of 2016. Similarly, in the fourth quarter of 2016, there were a total of 28.58 million persons in the Nigerian labor force that were either unemployed or under-employed compared to 27.12 million in the third quarter, 26.06 million in second quarter and 24.5 million in first quarter 2016.

The report also revealed that the unemployment and under-employment rates were higher for women than men in the fourth quarter of 2016. During the quarter, 16.3 per cent of women in the labor force were unemployed, and a further 24.2 per cent of women in the labor force were under-employed. On the other hand, 12.3 per cent of males were unemployed, while 17.9% of males in the labor force were under-employed during the same period.

Industry Job Losses Aviation:

The aviation industry is particularly hard hit. In February, debt-ridden Arik Air, Nigeria’s largest airline was taken over by the government to save it from collapse. Arik Air accounts for 55% of Nigeria’s passenger traffic.

In September 2016, Aero Contractors, Nigeria’s oldest working airline at the time, suspended operations citing grave economic challenges. International airlines have also slashed operations. Last October, Emirates, one of the world’s richest airlines, reduced daily flights to Lagos and Abuja and earlier, in May 2016, United Airlines shut down its Nigeria operations.

According to a report by The Guardian, Bristow Helicopters, Caverton, Executive Jet and others have already trimmed their workforces, citing low patronage.

Sources at Bristow Helicopters quoted disclosed that about 400 workers have been laid off, including pilots. Caverton Helicopters also reportedly posted a loss of over N2 billion in the first half of the year. At the moment, less than 30 aircraft make up the total fleet operated by domestic airlines. This represents over 50 per cent cut

from 65 serviceable aircraft in operation some years ago. No airline is operating today at optimum.

Everyone is down to 50 to 60 per cent capacity. Everyone is operating at a very tight margin.

Oil & Gas:

The President of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) comrade Igwe Achese has said that the oil and gas industry is worst hit by the economic recession affecting the country as over 3,000 workers for the four majors IOC’s had been retrenched since the recession began while many others were rendered redundant. Research done by the Nation newspaper shows that the figures was in hundreds of thousands. Mobil Producing Nigeria

(MPN) Unlimited, operator of the Nigerian National Petroleum Corporation MPN/NNPC Joint Venture in Akwa Ibom laid off about 150 contract staff and 40 drivers from its employ, while Total fired 100 in its Nigerian operations. Over 4,000 Nigerians in the oil and gas industry lost their jobs in the last 18 months. 75% of these oil workers were former staff in the operations of the IOCs; the indigenous firms sacked about 1,000 staff, which is the remaining 25%.

In total, this number of sacked workers is 16.4% of the total number of staff on sack list by just two oil giants, Shell and Chevron, in their global operations.

Oil giant, Shell, had in May 23, declared plans to sack additional 5,000 staff, raising the number of staff to be laid off in Nigeria and other countries of operations by the company. Shell’s vice president for the United Kingdom (UK) and Ireland, Paul Goodfellow, who announced the plan to lay off 5,000 more staff, said that 2,200 more jobs would be cut in the first phase of the new disengagement, as the world’s second biggest oil companies continue to adjust to the slump in oil prices. This takes the tally of sacking by Shell to 15,000 between 2015 and 2016, as the oil

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Finance firm adjusted to the slump in prices. Chevron, on its own, rounded up the number of sacked workers to 8,500 before December while other companies such as ExxonMobil, Total have also sacked about 4,000 workers secretly in their global operations.

Banks:

Some have blamed the banks woes on the implementation of the TSA. A source said “things have become more difficult since the full implementation of the TSA started”.Another banking industry source said since the implementation of the policy, many bank employees had found it difficult meeting their monthly targets and had thus been asked to resign, falling back to the unemployment market.

Diamond Bank sacked 400 staff and Ecobank has so far sacked 1040 staff. Ecobank had earlier sacked 50 senior managers in February, citing need to cut cost and improve efficiency. There have also been unconfirmed reports that other banks have retrenched employees, though on a small scale.

While some firms have resorted to cutting salaries, others delay payments, sometime well into the next month, while yet others do not pay at all. For Skye Bank, between August and September 2016 alone, several branches were shut and about 350 workers were

“things have become more difficult since the full implementation of the TSA started”

sacked. Some of them claimed the decision was taken in order to ensure that there was enough to balance the bank’s books, while Unity Bank sacked no fewer than 215 employees. Most of those sacked were branch managers and senior staff. Heritage Bank staff had their salaries slashed as instructed by the management. The bank took the decision not to sack anybody.

Staff members of most of the commercial banks have been living in fear that it is only a matter of time before they would meet same fate.

Photo Credit: newsjournal

Construction:

Construction firms were not left out, not less than 65,000 workers had been sacked. This followed their inability to meet up with their obligations to the workers as the recession hit the sector with over N600billion debt, which the federal and state governments owed the sector. President of Federation of Construction Industry (FOCI), Solomon Ogunbusola, explained that the 135 construction firms registered and operating under the association are being owed, a situation which has compelled some to lay off their staff.

Food, beverage and tobacco firms:

Food, beverage and tobacco firms were also hard hit. Already, lead-

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ing companies in the sector, such as Nigerian Flour Mills, Nigerian Breweries, Guinness Plc, Nigerian Bottling Company, 7-UP Bottling Company Plc, Friesland Campina Wamco Plc, among others, have written to labour for discussions on retrenchment of workers. In the last three months, no fewer than 1,500 workers had been sacked in the sector as employers seek ways of coping with foreign exchange crisis.

President of Food, Beverage and Tobacco Senior Staff Association,

FOBTOB, Quadri Olaleye, had called on the federal government to intervene to save the industry and over three million jobs. He claimed that employers in the sector had devised every opportunity to sack workers, noting that between the 2012 and the first half of 2015, over 3,000 workers were sacked in the guise of re-engineering, restructuring, right sizing, downsizing, redundancy and re-organization. He said: “the current situation has reached a pathetic level, because it seems all the employers in our sector are in competition with each other on who can lay off the most workers.

Every company is now calling for a downsizing of the workforce.

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Finance milk and Three Crown milk, the sacked workers are still in shock.

When the management summoned all Heads of Departments to its head office in Ogba, a lot of them did not know the intention of the board. They were, however, stunned when they were informed that about 400 workers had to go as their termination of appointment letters had been handed over to the HODs.

Maritime:

In a report by Ships & Ports ltd, the maritime sector has lost over 6,000 jobs to the economic recession in addition to the closure of many companies, according to the President-General, Maritime Workers Union of Nigeria (MWUN), Anthony Nted. Nted said this at the union’s National Executive Council Meeting and Special Delegates Conference in Lagos.

According to Nted, one maritime company alone has retrenched over 3,000 workers because of harsh operating environment since the economic recession started. He said that loss of job was affecting the union as more workers were faced with insecurity, which had exposed the lives of their families to jeopardy. The MWUN leader said that it had become more difficult to protect the jobs of members in various branches, as the union had not been able to discuss review of conditions of service. On Tally Clerks and On-board Security men, Nted expressed hope that the court would give justice to the workers to enable them get back their jobs.

Media:

The media wasn’t left out; the rising cost of operation and production forced some Nigerian newspapers to cut down on the number of staff in their newsrooms, according to a report by Premium Times. The Punch, one of the largest employers in the media industry, was reported to have fired about 40 staff within one-week to the start of the recession, following a staff performance appraisal. “It’s true that they were

management said that would be too draconian.” She further explained that the paper would reabsorb affected reporters as full staff once the economic crisis eases.

The Recession has Turned The Unemployed Into The Unemployable Long-term unemployment is becoming the defining feature of

MSME Event in Abuja, 20th July 2017. Photo Credit: NOVO-ISIORO

dismissed, but not entirely because of the economic situation. We look at staff productivity like every year and those who didn’t meet up were many this year,” a source told Premium Times.

Meanwhile, at Leadership, there was a recommended 70% cut in staff strength, but the management thought it more expedient to convert some of their reporters to freelancers as opposed to a total layoff. Zipporah Tanko, the director of Human Capital of Leadership Newspaper, confirmed the development in her organization saying, “It is true that we had to convert them to freelance, but this was even after a painstaking effort by the management. The recommendation we got was to dismiss around 70% of our staff and the

the Nigerian Recession. Of the 11.9 million unemployed, about 45% have been jobless for more than six months, and over 70% of those have not worked in a year or more according to NBS. No other business cycle has come close to matching the current experience.

The World Economic Forum and the Lagos Business School say the country sits on a “time bomb”.

The economic costs of long-term unemployment are much greater than a period of high unemployment that quickly dissipates, in the short run, the drag on consumer spending lasts longer. Credit quality remains poor, making banks less willing to lend, especially now amid heavy loan defaults. Each monthly job report makes it clear that the current job recession is

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Finance different from the typical up and down pattern of past business cycles.

However, many economists are starting to fear that Nigeria may never return to the days of 7% or less unemployment. That’s because the long-term jobless are losing their skills and their employment connections, and are drifting further away from the labor force.

People are less likely to move from unemployment to employment

productivity in rough waters.

Hiring always lags behind in economic recoveries, but the outlook this time is worse, many economists say. Most forecasters now expect a prolonged period of high unemployment, even though the Federal government is expected to report at the end of the fourth quarter that the economy grew in the third quarter of 2017.

A trader sorting baskets of tomatoes at the Yankaba vegetables market in northern Nigerian city of Kano / AFP PHOTO /

the longer they are out of work. Of people who have been jobless for more than 12 months, only about 3 in 10 return to work, while about 70% judging from past job losses have either remained unemployed or dropped out of the labor force, started a business or seek for a better life abroad.

The increasingly disenfranchised workers generally include youth, the less educated, and industries most affected by the recession, especially construction, where unemployment is more than 33%.

To make matters worse, recent research suggests that companies across the Nigerian economy are holding off on hiring even as the profit outlook improves in some sectors, amid economic uncertainty and their own success at raising

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Bank Lending to Businesses In general, the Nigerian economy over decades of different leadership has failed to create many new good jobs relative to population growth, and there are disagreements about what that trend means, whether it will continue, or what to do about it if it does continue. Bank lending to businesses tends to be procyclical, contracting with an economic slowdown and rising with an expansion. However, throughout the recession and the current recovery experts and business owners propounded that the volume of commercial and industrial (C&I) loans actually continued to contract.

Speaking in response to the al-

legation leveled against financial institutions by the operators of the SMEs, at an SME event earlier this year, Mr. Adekunle Sonola, Executive Director at Union Bank of Nigeria, said that the banking sector in Nigeria is highly regulated, and this has made it fairly difficult to assist SMEs. He informed that the inability of government to execute favorable fiscal policies has undermined the capacity of the financial institutions to render assistance to the SMEs. He also noted that high incidence of government regulatory agencies as well as taxes and levies by different levels of government have resulted in high cost of running SMEs. Regional Director for Sage West Africa, Mr. Magnus Nmonwu, at an SME event suggested that providing support for small businesses in Nigeria could be one of the key ingredients to carrying the country through these tough times.

He pointed out that this should become a priority for big businesses and the Federal Government.

“Nigerian entrepreneurs and business owners are the engines that drive the country’s economy,” says Nmonwu. He added that, “During recessions, big companies are able to adjust by downsizing and cutting costs. Small businesses, however, keep going and carry the losses. They need our support, as they can contribute to turning the

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Finance economy around, far more quickly. “It is important that government and other stakeholders listen to entrepreneurs’ concerns as they seek to grow and contribute to the economy.

Surprisingly, in the current recovery, based on official figures, the weak financial conditions of banks that precipitated previous recessions are not present. Bank capital has been strong, and the deterioration in loan quality has been quite mild compared with the earlier recession, but banks have not relaxed the tighter lending stance toward businesses that was established during the recession. Rather than the unusual supply constraints, weak business loan demand appears to be the dominant factor in restraining bank loan growth to businesses.

In particular, the jobless recovery has lessened the need for external financing due to firms’ lower wage bills, and the persistent low rates of business investment have weakened the demand for C&I loans more directly. On balance, the recent weakness in C&I lending across all business borrowers primarily reflects the continued downturn in demand for working capital by businesses that has been

“Bank capital has been strong, and the deterioration in loan quality has been quite mild compared with the earlier recession”

held in check by an exceptionally weak job market and a sluggish recovery of business investment, and it does not appear to have been exacerbated by the imposition of unusually stringent credit rationing by banks.

The Audited Results However, conversely, the audited results of 2016 for 14 banks

trillion the previous year; Zenith Bank Plc.’s financial statement also showed the bank gave out N2.289 trillion as loans and advances to its customers, compared with the N1.989 trillion recorded the previous year. Similarly, while UBA loaned customers N1.505 trillion in 2016, up from N1.037 trillion the previous year; Access Bank recorded N1.809 trillion in 2016, from N1.368 trillion in 2015; GT Bank recorded N1.589 trillion

MSME. Photo Credit: Prince Digital

quoted on the Nigerian Stock Exchange (NSE) have shown a 22% increase in total loans and advances to their customers from N13.315 trillion in 2015, to N16.372 trillion in the year under review. The results of the banks showed deliberate efforts by the banks, mostly to support operators in the real sector of the economy.

Similarly, the total profit after tax (PAT) of the 14 banks rose marginally to N452 billion in 2016, up from the N442.451 billion recorded the previous year; just as their total gross earnings climbed to N4.007 trillion in the reviewed year, as against the N3.441 trillion recorded in 2015.

A breakdown of the figures, however, showed that while FBN Holdings’ loans and advances increased to N2.084 trillion in the reviewed year, up from N1.817

in 2016, up from N1.372 trillion in 2015; ETI also posted N2.824 trillion in 2016, from N2.232 trillion in 2015; Diamond Bank Plc. also posted N995.334 billion as customer loans and advances in 2016, up from N763.635 billion the previous year, while Fidelity Bank also posted customer loans and advances of N718 billion in 2016, higher than the N578 billion it gave out in the previous year.

In terms of profit after tax, the breakdown also showed that while GT Bank recorded N132.281 billion in 2016, higher than the N99.437 billion posted the previous year; Zenith Bank earned PAT of N129.652 billion in 2016, from N105.663 billion in the previous year; UBA’s PAT was N72.264 billion in 2016, from N59.654 billion the previous year; Access Bank’s PAT increased to N71.439 billion

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Finance in 2016, from N65.869 billion; while FBN Holdings’ posted PAT of N17.141 billion, from N15.539 billion.

Operators of the SMEs, however, believe that failure on the part of the financial institutions set up to render assistance to them have also hindered them from operating efficiently, as these financial institutions are seen requesting stringent conditions in return

Businesses As An Engine For Growth Governments in most countries have formulated policies aimed at fast tracking and empowering the growth and development of businesses especially during their bout of recession. Others however focused on assisting the SME’s to obtain soft loans and other fiscal incentives for growth. But

Poultry Farm filter. Photo Credit- Paul Aghali

before they grant loans. And even when they can access loans, it is usually short-term yet what SMEs, according to economic experts, require are long-term loans, which can be rolled on investment over time, but when questionable high placed societal figures with extremely poor credit history ask for loans, it’s a different story.

In an FSS report released at the last quarter of 2016, fifty customers owed commercial banks the sum of N5.23tn, representing 33.4% of the total private sector credit exposure of N15.68tn.

The FSS report, posted on the CBN website, also showed that the nation’s banks gave N1.537tn loans to oil companies and some state governments in the first six months of the year.

the issue of how far the Nigerian governments have gone in this respect is always a cause for debate in business gatherings. Businesses in Nigeria are major engines of job growth. But as the recession deepened in 2016, at least 60% of all job losses were in the SME’s-business sector. In fact, from 2016 to

“Foreign investors do not invest to spread the wealth around; they invest to make a profit.”

September 2017, Nigerian entrepreneurs started the fewest new businesses in more than a decade.

If the financial position of small business does not improve, neither will the employment picture.

The policies pursued by the Nigeria federal government policymakers during these trying times are causing disequilibrium in the market. This disequilibrium is clouding the business community with uncertainty, which is the greatest detriment to businesses. At the January 9 Collective 4th anniversary lecture with the theme “SMEs, the engine room of the economy, who is talking to them?” According to Mrs. Ndidi Nwuneli, Founder of Leap Africa, lack of fund is a major constraint to SMES; empirical evidence showed that finance contributed at least 25% of the success of SMEs. Most small-business owners and venture capitalists are uncertain as to where the economy is heading, budget deficits are in the billions of Naira, amidst plans by the federal government to borrow more and the result of an inflationary Federal Reserve policy is starting to show up in commodity prices.

There is also uncertainty concerning the regulatory environment.

Foreign investors do not invest to “spread the wealth” around; they invest to make a profit. Investors are not reacting well to the talk of “fundamentally transforming the Nigerian economy” by the Buhari led federal government.

Indeed, there has been more government intrusion into the market during the last few years than since the structural adjustment program (SAP) of Ibrahim Badamasi Babangida. For the most part, business owners want the federal policymakers to impose MARKET DIGEST NIGERIA 73

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Finance a light tax and regulatory touch, keep spending under control, maintain low inflation, and otherwise get out of the way so entrepreneurship and investment can thrive. Until the Nigerian federal policymaking moves in a clear pro-entrepreneur, pro-growth direction, most small-business owners face great uncertainty. According to William Dunkelberg, an economist at the National Federation of Independent Business puts it more succinctly: “There’s just a huge amount of uncertainty.

And when you’re uncertain, you don’t make bets. “And with this uncertainty, there is no expansion of production a requirement for creating employment opportunities.

Amidst this harsh climate the Nigerian Federal government still plans to increase tax revenue to 15% in 4 years. The Minister of Budget and National Planning, Sen. Udoma Udo Udoma, made this known in Abuja March this year, when a group from Financing for Development (F4D), a joint project of ActionAid Nigeria (AAN) and OXFAM paid him an advocacy visit. “One of the things that we have identified and looked at there in the plan is that there is a need to diversify our sources of

“Because of the uncertainties, most venture capitalists, the financial lifelines of small-business owners are sitting on the sidelines”

revenue and the need to increase our tax revenues. “Currently the tax revenue that government realises is about 6 percent of the Gross Domestic Product (GDP).“We intend to increase that percentage format from 6 percent to something nearer to 15 percent of the GDP, he said. Meanwhile he had denied plans to increase taxes, a month earlier, when Mr. Murray-Bruce had insinuated the federal government was about to

say the past recession?) has destroyed an enormous amount of personal wealth in Nigeria. Therefore, there is less money available for business expansion.

Because of the uncertainties, most venture capitalists, the financial lifelines of small-business owners are sitting on the sidelines. In this economy, most investments are simply not worth the risk. When such a vital source of financing

MSME: woman at the balogun market, Lagos. Photo credit: oikocredit

increase taxes, an action he said would worsen the poor economic fortunes of Nigerians and businesses. “There is no increase at all in taxes. But people who are not paying taxes must be made to pay.

So, the idea is to increase revenue by broadening the tax base, not by increasing taxes,” Mr. Udoma said.

Seven out of ten small-business owners use personal savings to start or expand their business.

They do not have the benefit of being “too big to fail.” Government planners fearful of systemic collapse do not inject them with cash to improve their liquidity position. In fact, these business owners are the remnants of the rugged individualists that once turned Nigeria from an agrarian society to the Africa’s foremost economic power. The current recession (or should I be politically correct and

runs out, the small-business owner must turn to the banking system.

Banks are flush with cash thanks to the government infusion of oil and gas proceeds. But are the banks lending enough? The answer to this question is a resounding NO. The importance of business to the Nigerian economy as it recovers from recession is overwhelming. Without increased capital formation in this sector, we will not see the significant job growth necessary to bring down the unemployment numbers.

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Travels

Top 9 Free Things To Do In Amanda Akah

Osaka,Japan

Tokyo has a reputation for being expensive. It’s true that the basic costs aren’t really cheap, but at the same time there’s a variety of free entertainment options. Tokyo is such a large city with so many cool neighborhoods and fun attractions that you can visit around this metropolis. But there are actually a lot of free things that you can do to experience the old, authentic and unique areas of the city without spending a lot of money, and with free admission to these sites.

To help you experience Tokyo less like a tourist and more like its inhabitants, Amanda shares 9 of her favorite things to see and do for free.

Admire scenic views of the city at night

1

There are several nice places where you can enjoy the dynamic night-time view of Tokyo besides the paid observation decks at Tokyo Skytree, Tokyo Tower and Roppongi Hills. The most famous free observation deck is located in the Tokyo Metropolitan Government Building. The great thing about this one is that it’s open until 11 pm almost every day.

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Travels

Enjoy the greenery: cherry blossoms and more!

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If you visit Tokyo in spring, you shouldn’t miss the opportunity to do ohanami (cherry blossom viewing), which typically involves having a party under the cherry trees. People bring food and drinks, sit down on picnic rugs and chat with their friends or colleagues.

Immerse yourself in spiritual experiences Can you guess the number of shrines and temples in Tokyo? According to statistics published by the Agency for Cultural Affairs, there are 1,469 and 2,880, respectively. While Kyoto’s most famous temples have admission fees, you can visit temples and shrines for free in Tokyo. At some Tendai and Shingon (esoteric Buddhist sects) temples, Fukagawa Fudoson for example, you can see powerful Goma rituals.

3

Go and see the Imperial Palace You may be wondering if there are any castles in Tokyo. Actually, there aren’t any completely preserved ones, but there are many ruins. You can see the moats, walls and ramparts of what was Japan’s biggest castle, Edo-jo, on the grounds of the Imperial Palace.

4

Discover Japanese gardens in hotels Tokyo is one of the best cities for enjoying Japanese gardens. One of the reasons is that, during the Edo period, feudal lords lived in mansions. Having a gorgeous garden was a symbol of their power. Consequently, Japanese gardening techniques spread throughout the city.

5

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Travels

Make the most of free museum entry Most of the famous museums in Japan charge an admission fee, but some allow you to enter for free on certain days, so make sure to check the website of the museum that interests you before your visit.

For example, the National Museum of Modern Art offers free entry on the first Sunday of every month, May 18 (International Museum Day) and November 3 (Culture Day).

Try clam digging If you want to do something different, why not try clam digging in Tokyo! The general season is from mid-March to June. You can do it for free at several spots, for example Jonan-jima Park, Odaiba Park, Kasai Rinkai Park and the beach close to Haneda Airport.

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Visit a sumo stable

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Sumo is one of the major attractions in Tokyo and if you’re lucky you might get the chance to visit a sumo stable during your time in the city. These stables are where sumo wrestlers live and train, and there are over 50 sumo stables in Tokyo. When the wrestlers aren’t involved in tournaments, you can go along and watch their early morning practices.

Enjoy one of the many festivals in Tokyo

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Festivals are a very important part of Japanese culture and take place regularly throughout the year.

The focus of these festivals can be incredibly varied and can include flowers, fertility, longevity, the dead, the moon, children, stars and plenty more.

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Interview

Interview With Theo Lawson, Founder Total Consult Ltd You are well grounded in Architecture, besides your experience and qualifications home and abroad. What attracted you to architecture? What does it mean for you to be an architect?

Firstly, I became an architect by accident, I had wanted to go into graphics; at the time, I thought of architecture more akin to engineering and would require physics and maths a-levels. My sister told me about the Architectural Association School of Architecture in London that she thought would interest me, being more design driven. I applied, was accept and my life changed. I have come to describe architecture as the Science of Art or the Art of Science.

However, in a general sense, architecture can be as varied as the languages in the world.

What made you decide to create Total Consult Ltd in 1991? Was there a particular moment that sealed the decision for you?

Buildings across Nigeria are known to have demonstrated a thorough response to the climate, technology and socio-economic milieu in which they evolved. The advent of colonialism in Nigeria changed the traditional life and the culture of “The Modern Nigerian”, became rife, which created a weak connection between traditional and contemporary architectural designs in Nigeria. Most recent buildings across Nigeria have been tailored to satisfy the modernity self-ego and aspirations. One architect bridging this gap is Theo Lawson, among his notable projects are the redesigning of the old Broad Street Prison to a theme park, now Known as Freedom Park; the redesigning of the residence of the legendary Afrobeat artiste, Fela Anikulapo-kuti into a museum named Kalakuta Museum.

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I formed Total Consult in 1991 with two friends; a Quantity Surveyor and another a furniture maker and envisaged it as a design and build practice. This was after spending five years practicing in Jos. Jos had been an inspiring place albeit not business friendly.

Tell us about your company’s profile today? What sets your firm apart from other firms with similar experience?

In the mid 90’s Total consult ventured into design of stage sets for product lunches, pageants, awards

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Interview and concerts and for almost 20yrs grew to become the major provider to the industry. We employed over 50 personnel from different disciplines and carried out cutting edge events for our clients. The firm developed a mantra ‘Impossibles we do right away, miracles take a little longer’.

What is your typical day like?

Are you working on any project at the moment?

I tend to take life easier now, I am 58 years old and have restructured the company back to core architecture. I get to the office between 10 and 11am on the average, and spend time between design work and site supervision. I am currently working on a farm project.

Tell us about your design approach. How would you describe your signature style?

The Architect is a solution provider, every brief is a challenge that requires a solution. The context is also very important; how the solution relates with its immediate environment and its users. I often let the design yield its own aesthetic, fashion will change but Style is constant.

Architects usually do not learn business in school. In that sense there is a gap in the education of architects. What do you think about schools’ education and the difference to real world learning?

After completion of your course in architecture, there is a mandatory 2yrs minimum in which the architect is meant to work within a professional practice to gain practice experience. This does not remove the need to seek further business and management courses

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that abound. Personally, I attended a business support program organized by Fate Foundation.

Among your notable projects is the redesigning of Freedom Park, the redesigning of the residence of the legendary Afrobeat artiste, Fela Anikulapo-kuti, among other notable projects.

As we all know, we’re in the era of the ‘iconic building’ and the ‘starchitect’. How do you feel about this trend?

It is every Creative’s dream to produce at least one landmark project in his lifetime; a project that both speaks to his philosophy, as it meets a larger socio-cultural need.

The building becomes iconic by popular acceptance and perhaps the Starchitect is born.

What are your thoughts about contemporary architecture in Africa?

For a long time, architecture in africa had been dominated by foreign architects who began to redefine what the African architectural vernacular should be. A lot of these firms came with Independence and helped to promote the image of the new fledging states. Fifty years on, with over a hundred architecture schools in the continent, there is a more robust dialogue in the practice and delivery of architecture.

Do you have experience with “green” or sustainable design?

My contribution towards green design is usually to introduce as many trees as I can, encourage rainwater harvesting, specify low energy consumption fixtures and appliances. I am still researching though.

What do you feel is the greatest challenge when it comes to

designing for environmental sustainability?

I believe the biggest challenge to environmental sustainability design is Government and clarity of its programs and objectives. It pays lip service to what should be very aggressively pursued. Policies for waste management and flood mitigation readily come to mind.

How do you see the future of architecture in Nigeria? In which areas (outside of traditional practice) can you see major opportunities for up and coming architects?

I see a lot of young, hardworking architects, a few of whom I have had opportunity to mentor; 3D whizkids that bring life to presentations, and are at the cutting edge of global trends. I have no fear whatsoever for the future of architecture here in Nigeria, many have and will apply their training to allied services in film, fashion, stage, graphics, publication etc.

They ultimately will hone all their experiences into becoming great architects.

What is your ultimate goal when it comes to your work? What do you want to be remembered for?

I find most satisfaction in the design of public spaces and would love to remain and thrive in this realm.

Do you have any advice for “Archipreneurs” who are interested in developing their own projects?

To the upcoming Archipreneurs, the first rule is to know yourself and what ‘good’ you bring to the table and then, be true to that good. Your ‘goods’ will sustain you.

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Finance

Nigeria’s Troubling Rising Debt Profile Rasheed M. Suleiman

Nigeria’s rising debt servicing costs in relations to the government’s dwindling revenue is becoming a big concern for international organizations and local experts. The DMO put the nation total debt profile for the 2nd quarter of 2017 at N19. 16 trillion. According to the figures released by the debt management office, Nigeria’s domestic debt stood at N11.96 trillion in 2016 as against N8.51 trillion recorded in 2015, representing a 40. 71% increase. External debt of federal and state governments rose from $9.46 billion to $13.81 in two years, an increase of 45.98%.

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overnment revenues in Nigeria decreased to N805.05 billion in the fourth quarter of 2016 from N938.71billion in the third quarter of 2016. The government revenues averaged N803.03 billion from 2010 until 2016, reaching an all time high of N1091.75 billion in the third quarter of 2011 and a record low of N498.54 billion in the second quarter of 2015.

External Debt in Nigeria in-

creased to 13807.59 USD million in the first quarter of 2017 from 11406.28 USD Million in the fourth quarter of 2016. External Debt in Nigeria averaged 7106.57 USD Million from 2008 until 2017, reaching an all time high of 13807.59 USD Million in the first quarter of 2017 and a record low of 3627.50 USD Million in the first quarter of 2009.

A breakdown of the foreign debt showed that $7.99billion of the debt was multilateral, $198.25million was bilateral (AFD) and $3.22billion from the Exim Bank of China credited to the Federal Government of Nigeria (FGN).

Further analysis revealed that, total FGN debt accounted for 68.72 percent of Nigeria’s total foreign debt while all states and the Federal Capital Territory (FCT) accounted for the remaining 31.28

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Finance percent. Similarly, total FGN debt accounted for 78.89 percent of Nigeria’s total domestic debt while all states and FCT accounted for the 21.11 per cent balance.

High debt servicing However, figures published by the Debt Management Office (DMO) shows that Nigeria spent $1.974 billion dollars to service its external debt and another N4.855 trillion to service its domestic obligations in the last six and a half years. The then DMO Director-General, Dr. Abraham Nwankwo, had, revealed last February that the nation’s total debt profile as at December 31, 2016, was N17.36 trillion up from N16.29 trillion in June 2016.

Further analysis of figures obtained from the agency indicates that the country spent $166.02 million to service its external debts in the first half of 2016 while N616.68 billion was spent on servicing local debts during the same period with the figure is expected to rise this year. The government recently issued a $500 million Eurobond as part of the 2016 budget – after raising $1 billion in February – it is also seeking to get loans (at least $1 billion) from the World Bank in addition to the $600 million it had taken last year out of a $1.6 billion African Development Bank (AfDB) loan.

In a report by Emeka Ejere, there is, perhaps, no better way to paint the picture of the deplorable condition and the resultant headache of the Minister of Finance, Mrs. Kemi Adeosun and her economic management team in the face of the nation’s frightening debt profile. The minister’s frustration

became even more apparent in May when she unwillingly called integrity to question by reversing, within 24 hours, her position on whether or not the country should borrow further. Mrs. Adeosun was quoted to have stated at a business forum in Abuja: ‘‘we cannot borrow anymore. We just have to generate funds domestically enough to fund our budget; mobilize revenue to fund the necessary budget increase.”

But barely 24 hours later, she recanted on the strategic direction to the chagrin of most Nigerians.

Speaking through the Director of Information, Federal Ministry of Finance, Mr. Salisu Na’Inna Dambatta, Adeosun said Nigeria would continue to borrow (both domestic and foreign), adding that nothing had changed to dictate otherwise.

INTERNATIONAL CONCERNS WORLD BANK

The World Bank in its newly released Global Economic Prospects report observed that the Nigeria’s debt servicing costs had risen but remained sustainable for most countries, it said the rise in government’s debt, exchange rate depreciation, and increased recourse to non-concessional borrowing for

infrastructure development had resulted in rising debt servicing costs. According to the report, “However, for most countries in the region, the interest-to-revenue ratio remains sustainable, helped by the high share of concessional borrowing. A notable exception is Nigeria, where the Federal Government’s interest-to-revenue ratio rose from 33% in 2015 to 59% in 2016.

The report also noted the regional outlook is subject to significant external risks, to which Nigeria is exposed. It said, “A sharp increase in global interest rates could discourage sovereign bond issuance, which has become a key financing strategy for governments in recent years, as they have increasingly looked to global markets for the funds to finance domestic investment. “On the domestic front, in countries where significant fiscal adjustments are needed, failure to implement appropriate policies could weaken macroeconomic stability and slow the recovery. This risk is particularly significant for Angola, CEMAC (Central African Economic and Monetary Community) countries, Mozambique and Nigeria.”

In April this year, the World Bank in a separate report also cautioned Nigeria and other African nations against excessive debts, urging a MARKET DIGEST NIGERIA 81

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Finance balance between massive spending for development on the one hand and moderation in borrowing on the other.

Chief Economist for African Region, Albert Zeufack, who spoke on the latest update on the continent’s economy, Africa’s Pulse, via webcast from the bank’s headquarters in Washington DC, USA, said: “What is good for Nigeria is that debt to the GDP ratio is still low but the debt to revenue ratio is already high. The environment of weak economic growth comes at a time when the continent is in dire need of necessary reforms to boost investment and tackle poverty.

Countries also have to undertake much-needed development spending while avoiding increasing debt to unsustainable levels.

“Fiscal restructuring is going to be challenging and the government has to be careful in order to balance efforts to develop the country with a moderation in borrowing.”

with Nigeria issued a few weeks ago, advised Nigeria to remove currency-trading restrictions and reduce its budget deficit and debt-service costs to “sustainable” levels, pointing out that Nigeria’s debt-service costs doubled last year to 66% of revenue. The Fund stated: “Stronger macroeconomic policies are urgently needed to rebuild confidence and foster an economic recovery,” adding that there’s a “need for a front-loaded, revenue- based fiscal consolidation, to reduce the Federal Government interest payments-to-revenue ratio to sustainable levels.”

The IMF Assistant Director and Head of Fiscal Policy and Surveillance, Catherine Pattillo at the IMF/World Bank yearly meetings in Washington DC, expressed concern that notwithstanding the recession challenges for Nigeria, the rising level of public debt needs to be checked.

According to Pattillo, while the debt profile is rising alongside inflation, it is getting more complicated with the rise in the cost of the servicing, which is about 45% of Nigeria’s estimated revenue. She advised that increase in non-oil revenue as oil crisis persists is the way forward, while government minimizes subsidies related to fuel, as well as effective public service reforms.

The International Monetary Fund, IMF, has also projected that Nigeria’s indebtedness would climb to 24.1% of its Gross Domestic Product, GDP, by 2018. The Fund made this declaration in its World Economic and Financial Surveys, presented last month. By the IMF’s projection, Nigeria’s debt to GDP ratio would have surged by 100%, from 12.1% in 2015 to 24.1% in 2018.

IMF Rising debts in the public and private sectors have become a source of worry to the International Monetary Fund (IMF), which described the development as anti-growth. The IMF in its recent report, Article IV Consultation

“By the IMF’s projection, Nigeria’s debt to GDP ratio would have surged by 100%, from 12.1% in 2015 to 24.1% in 2018” 82 MARKET DIGEST NIGERIA

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Finance

Possible problems with Costs of High Debt in poor and emerging Countries

The cost of poor and emerging economies’ high debt is typically analyzed in terms of the relative amount of resources utilized to service the debt and the diversion of those funds from other potential spending areas. This cost of high levels of external includes:

The debt overhang

The most commonly cited channel by which large debt is thought to hinder growth is the so-called “debt overhang.” This overhang is thought to exist when a country’s high debt burden dampens the incentive to invest because investors expect that future taxes on returns to capital will be imposed to service the debt. In particular, expectations of distortionary measures to service the debt, such as currency devaluations or inflationary policy, may especially discourage investment. Moreover, as the outcomes of debt rescheduling negotiations are often unpredictable, a climate of heightened uncertainty within heavily indebted countries can induce investors to delay making new investments.

Liquidity constraint

Large debt service payments may hinder growth by depriving the country of foreign exchange needed for the importation of capital goods.

Fiscal effect

This tends to follow three lines.

First, in order to service their debts, governments must cut back on public investment, which re-

duces total investment. Second, a reduction of social spending may reduce growth in human capital, a determinant of long-term economic growth. Lastly, in the absence of fiscal discipline, governments may run large budget deficits, which also dampen private investment.

Productivity suppression

The uncertainty generated by high debt biases investment toward quick returns and discourages the long- term investment necessary for productivity growth. Meanwhile, the expectation that foreign creditors will appropriate future benefits of economic growth may also weaken the incentive for domestic policy reforms that spur productivity growth.

It undermines policy credibility

High debt can erode confidence in economic reforms and thus diminish the sustainability of what might be an otherwise sound economic reform strategy.

It encourages short-termism:

It shortens horizons, which creates longer-term difficulties. When countries face the pressures of external debt service in addition to their other short-term obligations (civil service wages, etc.), budget financing and allocation decisions can be made counter to long-term economic health. On the financing side, this can lead to non-selective borrowing, including agreement to conditions that might otherwise be rejected or that the government has no intention of fulfilling. Or, in the current global environment, accepting debt relief is viewed primarily as another form of shortterm resource mobilization. Either way, a non-optimal outcome is

encouraged by short-term needs trumping long term planning and decision-making. Because many governments in low-income, high-debt countries already face political and capacity barriers to sound long-term planning and decision-making, high debt may exacerbate this troubling tendency.

It distorts fiscal adjustment

Fiscal reform is a major component of economic reform in most high debt poor countries.

High relative debt service obligations could affect fiscal discipline and create a bias toward current expenditure over capital expenditure.

There are many direct and indirect costs of high debt in low-income countries. High debt does indirectly contribute to a negative policy dynamic and frequently threatens the sustainability of economic reforms that might have succeeded in the absence of high debt. Lastly, high debt levels place a heavy administrative burden on states, further exacerbating capacity constraints and slowing the development of capable public institutions.

“High debt does indirectly contribute to a negative policy dynamic and frequently threatens the sustainability of economic reforms that might have succeeded in the absence of high debt” MARKET DIGEST NIGERIA 83

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Finance

Paul A.Wallace

Uncovering Misleading Government Unemployment Strategies

A Macro Alternative Reality Unemployment occurs when people are without work and actively seeking for a job. It is a global issue as developed, developing, undeveloped and underdeveloped nations of the world are experiencing it. Unemployment has maintained a rising trend over the years in Nigeria. It is an understatement to say the rate of unemployment in Nigeria is alarming. This has actually contributed to numbers of societal malaises among Nigerians and can be traced to the malfeasances of some programs or officials of present and past governments administrations that have been ruling Nigeria since independence, due to a poor understanding of the economics concept of aggregation, which Economists call the Fallacy of Composition.

The Fallacy Of Composition

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he origins of macroeconomics trace back to the recognition that the mainstream economics approach to aggregation was rendered bereft by the concept of the Fallacy of composition which refers to errors in logic that arise “when one infers that something is true of the whole from the fact that it is true of some part of the whole. So the

fallacy of composition refers to situations where individually logical actions are collectively irrational.

For example, if you stand up at a concert, you can usually see better.

You may then directly infer that if everyone stands up, everyone can see better. But you know it doesn’t work that way and will lead to obscured views for the majority of attendees. Therefore, what might be true for one individual in the crowd is not true for the whole crowd.

These fallacies are rife in the way Nigerian mainstream macroeconomists and political office holder’s reason and strategize their policy responses. The general reasoning failure has occurred over decades, as successive governments policies wrongfully try to apply logic that might operate at a micro level to the macro level. In fact, historically, it is what led to the establishment of macroeconomics as a separate discipline. As indicated,

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Finance prior to the Great Depression, macroeconomics was thought of as an aggregation of microeconomics. The neo-classical economists (who are the precursors to the modern neo-liberals) didn’t understand the fallacy of composition trap and advocated spending cuts and wage cuts at the height of the Depression.

Keynes led the attack on the mainstream by exposing several fallacies of composition. While these types of logical errors pervade mainstream macroeconomic thinking, there are two famous fallacies of composition in macroeconomics: (a) the paradox of thrift and (b) the wage cutting solution to unemployment.

The Paradox Of Thrift The paradox of thrift tells us that what applies at a micro level (ability to increase saving if one is disciplined enough) does not apply at the macro level (if everyone saves aggregate demand and, hence, output and income falls without government intervention). So if an individual tried to increase his/her individual saving (and saving ratio) they would probably succeed if they were disciplined enough.

But if all individuals tried to do this en masse, and nothing else replaces the spending loss, then everyone suffers because national income falls (as production levels react to the lower spending) and unemployment rises. The impact of lost consumption on aggregate demand (spending) would be such that the economy would plunge into a recession.

As a result, incomes would fall and individuals would be thwarted in their attempts to increase their

savings in total (because saving was a function of income). So what works for one will not work for all. This was overlooked by the mainstream. The causality reflects the basic understanding that output and income are functions of aggregate spending (demand) and adjustments in the latter will drive changes in the former. It is even possible that total savings will decline in absolute terms when individuals all try to save more because the income adjustments are so harsh. If the private sector desires to save, for example, 10 Naira in every 100 Naira it receives then that 10 Naira is lost from the expenditure stream. If nothing else happens, unsold inventories will appear and firms will start to lay off workers because the production level is too high relative to demand. Firms project demand expectations and make their production decisions based on what they think they can sell in the forthcoming periods. The decline in economic growth then reduces national income which in turn reduces saving, given that the latter is a positive function of total national income.

This classic example of the fallacy of composition, illustrates the fact that a society can save more only by spending more. If everyone reduced spending, then the demand for products and services as explained above would decline. This decline would lead to lower growth and revenue for businesses. As a result, businesses might have to lower wages or lay off individuals. People would have less income and would save even less. What is true for an individual in the economy is not necessarily true for the whole economy.

But if the economy is to remain

at full employment all the output produced has to be sold, this is where the government steps in to bridge the gap. It is the one sector that can step in and net spend the 10Naira in every 100 Naira to fill the “spending gap” left by the saving. All the output is sold and firms are happy to retain the employment levels that created the output. The system is what economists call “a full employment equilibrium”. So there is no particular problem for the economy in households increasing their desired saving. As long as the government sector “finances” that rising saving behavior from the households, economic growth can continue and the paradox of thrift effect thwarted. The rising net spending promotes income and employment growth, which combine to generate the rising saving capacity desired by the households. It is a win-win.

The Wage Cutting Solution To Unemployment.

The other major fallacy of composition relates to the way in which the Nigerians conceive of a solution to unemployment. Macroeconomics emerged out of the failure of mainstream economics to conceptualize economy-wide problems – in particular, the problem of mass unemployment.

The point is that prior to this, the mainstream Nigerian employers and government officials with regards to the Nigerian states and Federal civil service failed to understand that what might happen at an individual, ministry or state level will not happen if all individuals, ministries or estates do the same thing. In terms of their solutions to unemployment, they believed that one firm, ministry or state might be able to cut costs by MARKET DIGEST NIGERIA 85

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Finance lowering wages for their workforce and because their demand will not be affected they might increase their hiring. However, they failed to see that if all firms, ministries or states did the same thing, total spending would fall dramatically and employment would also drop. Again, trying to reason the system-wide level on the basis of individual experience generally fails.

Wages are both cost and and income. The mainstream ignored the income side of the wage deal.

The technical issue comes down to the flawed assumption that aggregate supply and aggregate demand relationships are independent.

This is a standard assumption and it is clearly false. Mass unemployment occurs when there are not enough jobs and hours of work being generated by the economy to fully employ the willing labor force. And the reason lies in there being insufficient aggregate spending of which the net spending by government is one source.

The erroneous government response to the persistent unemployment that has beleaguered Nigeria for the last three decades is to invoke supply-side measures – wage cutting, stricter activity tests for welfare entitlements, relentless training programs. But this policy approach, which has dominated both the military and civilian regimes since independence, reflects their emphasis on the individual firm, ministry or state falls foul of the fallacy of composition problem.

They mistake a systemic failure for an individual firm, ministry or state failure. You cannot search for jobs that are not there. The main reason that the supply-side approach is flawed is because it fails

to recognize that unemployment arises when there are not enough jobs created to match the preferences of the willing labor supply.

The Federal Government keeps on coming up with different schemes To Train the Youths in Skill Acquisition, when the issue is availability of jobs. The research evidence is clear – churning people through training programs divorced from the context of the paid-work environment is a waste of time and resources and demoralizes the victims of the process – the unemployed.

Case Study: The Parable Of 100 Dogs And 95 Bones Imagine a small community comprising 100 dogs. Each morn-

dig up the usual one bone. But, as a matter of accounting, at least 5 dogs will return home bone-less.

Now imagine that the government decides that this is unsustainable and decides that it is the skills and motivation of the bone-less dogs that is the problem. They are not skilled enough. So a range of dog psychologists and dog-trainers are called into to work on the attitudes and skills of the bone-less dogs.

The dogs undergo assessment and are assigned case managers. They are told that unless they train they will miss out on their nightly bowl of food that the government provides to them while bone-less.

They feel despondent.

Anyway, after running and digging skills are imparted to the bone-less dogs things start to change. Each day as the 100 dogs go in search of 95 bones, we start to observe different dogs coming back bone-less.

The bone-less queue seems to become shuffled by the training programs. How-

ing they set off into the field to dig for bones. If there are enough bones for all buried in the field then all the dogs would succeed in their search no matter how fast or dexterous they were. Now imagine that one day the 100 dogs set off for the field as usual but this time they find there are only 95 bones buried. Some dogs who were always very sharp dig up two bones as usual and others

ever, on any particular day, there are still 100 dogs running into the field and only 95 bones are buried there! In Nigeria there are about 20 bones for every 100 dogs! The point is that fallacies of composition are rife in Nigerian government officials mainstream macroeconomics reasoning and have led to very poor policy decisions.

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Finance

Banks Rising Non-Performing bad Energy Loans

Ade Kayode

Nigerian banks are once again struggling with rising non-performing loans on their books fuelled by fall in crude oil prices and the resulting recession. Although, Energy sector bankruptcies are reducing as we detox from the recession, but total secured and unsecured energy sector debt, moved into bankruptcy stood at billions of Naira last year. The extent of bad debts on the books of banks were exposed when Central Bank of Nigeria (CBN) on 5 April released its financial stability report showing that the non-performing loans of banks have risen sharply in the last one year.

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he International Monetary Fund (IMF), says non-performing loans, NPLs, across Nigerian banks have increased by more than double since 2015 and that the current 0.8% growth in the Nigerian economy in the first half of 2017 is still not sufficient to end poverty and reduce unemployment in the country.

Preliminary data for the first half of the year indicate significant revenue shortfalls, with the interest-payments to revenue ratio remaining high (40% at end-June) and projected to increase further

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under current policies. “High domestic bond yields and tight liquidity continue to crowd out private sector credit. Given Nigeria’s low growth environment and the banking system’s exposure to the oil and gas sector, non-performing loans increased from 15% in 2015 to 29.9% in March 2017” according to the CBN.

Energy Loans not hedged & poorly-collaterised In a Financial Times report, Nigeria’s energy companies that bought oilfields from majors when oil was

selling for more than $100 a barrel have been hammered by the crash in prices. Now their troubles are taking a toll on the banking sector.

In the two years before crude oil prices began falling in mid-2014, Nigerian banks lent an estimated $10bn to local oil and gas companies to buy assets from Royal Dutch Shell, Eni and Total as they retreated from the country’s onshore industry. At the time these loans were celebrated as a milestone for Nigerian finance and a boost to bank portfolios aimed at supporting greater domestic participation in the industry. Now MARKET DIGEST NIGERIA 87

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Finance that the price of Brent crude has fallen by nearly two-thirds to the mid-$40s, much of that lending has become a liability.

“The banks lent way too much,” said a foreign oil executive who observed the wave of acquisitions in 2012-2014. “The assumptions made by the local oil companies were inaccurate. The value of the assets is basically zero with the low oil price” he said speaking on condition of anonymity. “They are kicking the can down the road and hoping the oil price will recover” by restructuring the loans, he added. Most of Nigeria’s 22 licensed commercial banks are exposed to the industry through large syndicated loans, many of which were not hedged, and some of which were poorly collateralized, according to analysts.

Upstream oil and gas and services make up an average of around 28% of the banking sector’s loan books. But Robert Omotunde, analyst at Afrinvest, a Lagos-based investment bank, says at least two banks have made more than 30% of their loans to upstream energy, “The banks are well within their rights to restructure their problem loans”, said a former member of the Central Bank of Nigeria’s monetary policy committee. “Except that some of these borrowers should never have gotten loans in the first place.”

CBN Financial Stability Report In a report by Motolani Oseni in April 2017, the CBN’s latest Financial Stability Report (FSR) showed that depreciation of the Naira in commercial banks NPLs to gross loans in 2015 closed at 5.3% from 5% in the second half of 2015.

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The apex bank in its new financial stability report disclosed that ratio of core liquid assets to total assets increased by 2.3% points to 16.3% in 2016 from 14% recorded at half year ended June 2016. It further

because large banks hold a significant proportion (88.02per cent) of total banking industry loans.”

“The ratio of non-performing loans net of provision to capital for the banking industry increased

noted that the ratio of core liquid assets to short-term liabilities increased by 2.9% points to 24.5% in 2016 compared with 21.6% in second half of 2016.

to 38.4% in 2016 from 28.4% as at second half of 2016.”

“The increase in the ratio of core liquid assets to both total assets and short-term liabilities reflects improved buffers to absorb short term obligations,” the financial stability report of CBN explained.

According to the report, the banking industry stress test covered 23 commercial and merchant banks, to evaluate the resilience of the banks to credit, liquidity, interest rate and contagion risks. The report stated that, “The economic headwinds have adversely impacted bank borrowers, resulting in rising NPLs which required additional provisioning by banks, thereby reducing the banks’ CAR. “The decline of the CAR of small and medium banks did not weigh significantly on the industry CAR

According to the report, banking industry total credit by sector showed that Oil & Gas sector constituted 29.59% of total banking industry credit, while Manufacturing, General Commerce, Government and Others, constituted 13.41, 8.71, 6.25, 8.34 and 33.70%, respectively, in 2016. “The stress test result of a 20 per cent default

“Nigeria’s energy companies that bought oilfields from majors when oil was selling for more than $100 a barrel have been hammered by the crash in prices”

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Finance in oil and gas exposures will lead to CARs of 13.98, 14.67, 11.87 and 2.63 per cent for the banking industry, large, medium and small banks, respectively. “However, with a more severe shock of 50 per cent default in exposure to the sector, only the large banks will have CAR of 10.17 per cent, which is above the regulatory threshold.

This showed that medium and small banks have more oil and gas credit concentration risk than the large banks, despite their smaller proportion of exposure to the sector.” “Overall, the result indicated the potential for high contagion risk through unsecured interbank exposure as three banks (including two Systemically Important Banks) failed CAR after a 100% default shock,” the report said.

Report Analysis Analysis by Anthony Osae Brown of the CBN report reveals that from an average NPL ratio of 5.3% in December 2015, the NPL ratio of Nigerian banks closed 2016 at 14%. This is the highest NPL ratio level since 2012 and already twice higher than the 5% maximum limit set by the CBN for the banking industry. Further indicators of trouble in the banking industry include the fact that the ratio of regulatory capital to risk weighted assets at 13.9% is at a five year low while non-performing loans net of provisions to capital has also risen to a five year high of 38.4%.

But not all banks are at risk of imploding from the rising bad loans in the banking industry.

The small banks, defined by the CBN as banks with assets less than N500 billion are the most affected as their average capital adequacy ratio now stands at 3.14 percent.

Medium sized banks, defined as banks with total assets in the range of N500 billion to N1 trillion have average capital adequacy ratio of 12.75 percent, above the 10 percent minimum set by the CBN while large sized banks, defined as banks with assets in excess of a trillion naira, have capital adequacy ratio of 15.47 percent. This indicates that the bigger the bank is, the higher the capital adequacy position.

The CBN admits that there is high contagion risk “through unsecured interbank exposure as three banks including two systemically important banks failed a capital adequacy ratio test after the 100 percent default shock.”

This means that there is a risk of AMCON 2.0 being triggered if one of these “systemically important banks” sparks off a contagion risk in the financial system. But the chances of this happening will likely be determined by the direction of crude oil prices going forward because of the significant exposure of banks to the sector.

highest with 13.41% of total industry credit.

If crude oil prices fail to rise further from current levels, Nigerian banks, especially the small and medium sized ones will have to look for ways to boost their capital position in order not to collapse under the weight of their rising NPLs. What is clear from the CBN financial stability report is that the health of Nigeria’s financial sector, like the Nigerian economy, continues to be closely tied to the direction of crude oil prices in the international markets. Chances of a potential crisis in the banking sector will be significantly alleviated if crude oil prices keep rising or stay at current levels of above US$50. Without rising crude oil prices, some banks will struggle.

Loans to the oil and gas sector make up 29.95% of total banking industry credit according to the CBN. Manufacturing is the next

“banking industry total credit by sector showed that Oil & Gas sector constituted 29.59% of total banking industry credit”

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