Monday 27th March 2017 by THISDAY Newspapers Ltd

UBA Grows Profit by 32%, Declares Final Dividend of 55kobo Obinna Chima United Bank for Africa (UBA) Plc, the pan-African financial services group operating in 19 countries, has released its audited 2016 full year results, showing a significant growth

in gross earnings and profits. A statement from the bank yesterday attributed the improved earnings and profits to its resilience, enhanced productivity and geographic diversification, evident in the impressive

contribution from its African subsidiaries. The UBA Group reported a 22 per cent growth in gross earnings to N384 billion for December ending 2016, from N315 billion at the end of the 2015 financial year,

illustrating the bank’s ability to grow profitability despite the difficult macroeconomic environment. According to the statement, in addition to the rising adoption of electronic banking channels in many of the

African markets where UBA operates, the bank leveraged its strong franchise and geographical footprint. As reflected in the results released on March 24, 2017 at the Nigerian Stock Exchange (NSE) covering the period

January to December 2016, the UBA saw a 32 per cent growth in profit before tax to N91 billion, compared to N68 billion profit recorded over the same period of 2015, Continued on page 12

Folarin Williams: It's a Big Sacrifice for Lawyers to Go to the Bench… Page 66 Monday 27 March, 2017 Vol 22. No 8012. Price: N250

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Malabu Deal: Mohammed Abacha, Fasawe Give Details of How $1.1bn was Shared Adoke, Etete, others for arraignment April 3

Tobi Soniyi Court processes sighted by THISDAY, which have not been verified, have shown details of how the $1.1 billion paid by Shell Nigeria Ultra-Deep (SNUD) Ltd, Shell Nigeria Exploration and Production Company (SNEPCO) Ltd and Nigerian Agip Exploration (NAE) Ltd

to the federal government in 2011 for the purchase of Oil Prospecting Licence (OPL) 245 originally held by Malabu Oil and Gas Limited was shared by some prominent Nigerians. This is just as a Federal High Court in Abuja has fixed April 3 for the arraignment of the Continued on page 12

PDP Peace Deal Short-lived as Makarfi, Sheriff Factions Resume Hostilities

Onyebuchi Ezigbo in Abuja

Barely four days after the warring parties in the Peoples Democratic Party (PDP) conflict agreed to scale down their verbal war, the Senator Ali Modu Sheriff-led faction of the party has threatened to sue Senator Ahmed Makarfi for operating an illegal faction of the PDP. Both sides in the PDP conflict had reached a truce last Thursday to stop verbal attacks against each other. But in a statement issued

yesterday by Sheriff’s deputy, Cairo Ojougboh, the party said based on the pronouncement of the Court of Appeal in Port Harcourt, the National Caretaker Committee headed by Makarfi was not supposed to still be in existence. Calling on media houses to take note and not to refer to the group as a faction, Sheriff said the appeal at the Supreme Court was not a stay of execution, insisting that the group was illegal. Continued on page 12

Goldman Sachs Warns of Another OilGlutin2018… Page 66

L-R: Managing Director/CEO, Keystone Bank Limited, Philip Ikeazor; Obi of Onitsha, Igwe Alfred Nnaemeka Achebe; and President/Chairman of Council, Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, during a visit by CIBN’s management to the traditional ruler in Lagos… weekend

T H I S D AY MONDAY MARCH 27, 2017

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T H I S D AY MONDAY MARCH 27, 2017

MONDAY, MARCH 27, 2017 • T H I S D AY

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AMCON Hands over Keystone Bank to New Investors Obinna Chima

The Sigma Golf-Riverbank consortium, the new investors that acquired Keystone Bank Limited from the Asset Management Corporation of Nigeria (AMCON), at the weekend took control of the financial institution. The new investors have pledged to reposition the bank on a growth path with immediate effect. AMCON recently announced Sigma Golf Nigeria Limited and Riverbank Investment Resources

Limited as the new owners of the bank. The completion meeting, according to a statement from Keystone Bank, was held last Thursday with representatives of Sigma Golf-Riverbank consortium, AMCON, the board and management of Keystone Bank, the advisers to the buyer (KPMG Professional Services, Boston Advisory Services, Giwa Osagie & Co., Pan-African Capital Limited), as well as those of the seller (FBN Capital Limited, Citibank Nigeria Limited, Banwo & Ighodalo,

CrosswrockLaw). The completion meeting signified the effective handover of the bank to the buyer and the commencement of a transition process that will culminate in the reconstitution of the board and management of the bank to reflect the new ownership. Keystone Bank was taken over by AMCON in 2011 and was until the sale managed by the AMCON appointed board and management that stabilised the bank to make it attractive as a potential target for eventual acquisition by the investors.

According to AMCON, the Sigma Golf-Riverbank consortium emerged as the preferred bidders after a very transparent and competitive bidding process. “The emergence of the Sigma Golf-Riverbank consortium will bring a new lease of life with the expected injection of fresh capital that would position the bank to play competitively in the banking space and actualise its full potential. “In moving the bank forward as a major player in the industry, the new investors will be backed

up by a pool of reputable professionals both currently within the bank and across the industry. “Keystone Bank therefore assures all its stakeholders that the transition process will reposition the bank to serve its customers better, creating enhanced value for all stakeholders,” the bank added. THISDAY had exclusively reported that the bank, which was valued at almost N4 billion, was sold to the Sigma Golf-Riverbank consortium for N25 billion ($81.5 million), while

the reserve bidder offered N13 billion ($42.4 million). One of the financiers of the consortium is the former Managing Director/CEO of Sigma Pensions Limited, Mr. Umar Hamidu Modibbo. Modibbo and his brother, Adamu Mu’azu Modibbo, a former governorship aspirant in Adamawa State, were the founders of Sigma Pensions, a pension fund administrator (PFA), until its sale to Actis LLP, a private equity investor in emerging markets, in November 2015.

where we benefit from our increasingly diverse revenue streams. “We reiterate our pledge to delivering excellent services to our customers, and remain committed to creating superior and sustainable return for our shareholders.” Ugo Nwaghodoh, Chief Financial Officer (CFO) of UBA Group stated that the bank extracted efficiency gains across its operations to boost profitability. He confirmed that the bank has seen significant improvement across major performance metrics, including an improvement in the net interest margin. “Our performance in 2016 reflects the strong potential and resilience of our business. We grew top and bottom lines by 22 per cent and 32

per cent respectively, despite the stagflation in Nigeria, our core market. “Reflecting improved balance sheet management and better value extraction, our net interest margin (NIM) improved by 40 basis points year-on-year to 6.7 per cent,” the CFO noted. He also expressed delight at the performance of the group’s African subsidiaries (ex-Nigeria), which contributed a third of the group’s profits, adding that the bank will continue to leverage innovative offerings to grow its share of the respective markets. “As we diligently execute our Customer First initiative, I am particularly upbeat on the future of business and the value creation for shareholders,” he added. UBA has a presence in 19

African countries, as well as the United Kingdom, the United States of America and France. The group boasts 11 million customers globally through a diverse service channels in sub-Saharan Africa comprising 632 business offices, 1,750 ATMs, some 13,500 PoS’, and a robust online and mobile banking platform. UBA was the first Nigerian bank to make an Initial Public Offering (IPO), following its listing on the NSE in 1970. It was also the first Nigerian bank to issue a Global Depository Receipts (GDRs). The shares of UBA are publicly traded on the NSE and the bank has a welldiversified shareholder base, including foreign and local institutional investors as well as individual shareholders.

impunity in the history of our great party. His threat against our hard working staff should therefore be ignored and treated with the utmost contempt coming from a lawless impostor. “For the education of Sheriff and his cohorts, our appeal at the Supreme Court is already on. To that extent, the position and status of the National Caretaker Committee remains completely unaltered. “Since they cannot comprehend even very simple matters, we will use a simple analogy: If a governor loses at the election petitions tribunal and at the Court of Appeal, does he cease to be a governor even when his appeal is pending before the Supreme Court? And would the civil

servants then refuse to serve him? “The position of the law is that he would remain the governor and all government employees will be expected to continue to service his government until otherwise determined by the Supreme Court. “In the light of the above, we urge our loyal party members and staff to ignore this latest rants of the APC lackeys. “We went out of our way a few days ago to reach some kind of accommodation with them, even when some of our top leaders had serious misgivings about any type of talks with them given their unreliability. “We are happy that we have shown our goodwill and they too have demonstrated their bad faith,” he said.

UBA GROWS PROFIT BY 32%, DECLARES FINAL DIVIDEND OF 55KOBO while the bank’s profit after tax grew by 22 per cent to N72 billion, from N60 billion recorded the previous year. The performance was buoyed by considerable growth in both interest and non-interest income, as well as increasing efficiency gains from cost management initiatives. The statement added: “UBA’s subsidiaries outside Nigeria are increasingly gaining market share, reinforcing the strong and impressive subsidiary contribution to the Group, estimated at one-third of profit in 2016, from a quarter in 2015 financial year.” Following the impressive performance, the Board of Directors proposed a final dividend of 55kobo per share, subject to the approval of the shareholders at the

forthcoming Annual General Meeting, scheduled to be held on April 7, 2017 at the Eko Hotel and Suites in Lagos. The bank had earlier paid an interim dividend of 20kobo per share to shareholders, bringing the total dividend for the 2016 financial year to N0.75, an unprecedented yield of 13.9%, based on the stock’s unit price of N5.39 on the floor of the NSE. UBA stated: “The results and dividend proposal justify investor confidence in the bank, as reflected in the 20% year-to-date rally in the share price, compared to the overall market loss of 5% over the same period.” Commenting on the results, Kennedy Uzoka, Group Managing Director/CEO of UBA expressed satisfaction with the resilience of the bank,

despite the macroeconomic challenges in a number of countries where UBA operates. “Given the operating environment in 2016, I am very pleased with our profitability - an impressive 32 per cent growth in profit before tax to N91 billion - whilst we have also focused keenly on operational efficiencies, illustrated by the reduction in our cost-to-income ratio,” Uzoka said. Speaking on its outlook for the 2017 financial year, Uzoka expressed optimism on the bank’s pan-African operations increasingly gaining critical mass across its chosen markets. “As we implement our Customer First Philosophy, we are approaching 2017 with real optimism, especially with the outlook remaining positive in many of our markets,

PDP PEACE DEAL SHORT-LIVED AS MAKARFI, SHERIFF FACTIONS RESUME HOSTILITIES He warned Makarfi and his group to stop interfering in the affairs of the party, adding that the job vacancies he (Ojougboh) declared was to fill positions at the PDP national secretariat, when the old staff decided to abandon their work even after he appealed to them. He said: “Makarfi should behave himself, he should not interfere in our business, because we are not interested in his private business. “Any further careless statement from him will force us to reconsider our earlier peace agreement. We have already employed staff who are running the bureaucracy efficiently. “If Makarfi so desires, he should keep the old staff, just as he is

doing now. We have had enough, and enough is enough of this.” Ojougboh further said that as chairman of the party, Sheriff has the right to employ staff, adding: “We are preparing to complete state congresses where necessary and working hard planning our national convention. We will not be distracted from our set objective to return the party to the grassroots by inconsequential issues. “We must prevent anybody whose aim is to kill the party, especially those who were brought to the party by persons who have already decamped to other parties. “We are giving seven days to the old staff who still have the property of our party in their possession to return them immediately, or we will be left

with no option than to hand them over to the police.” But in a quick riposte, the Makarfi faction accused the Sheriff leadership of violating a ceasefire agreement reached between the two warring parties. The spokesman of the National Caretaker Committee of the PDP, Mr. Dayo Adeyeye described the action by Sheriff and his men as “unbecoming for men of honour”. In a statement yesterday, Adeyeye urged the party faithful to ignore them. “We have always known that Sheriff and his co-travellers, especially Cairo Ojougboh, were never men of honour with whom one could reach any agreement. “But we tagged along to avoid being accused of unnecessary

intransigence. “Since the leopard cannot change its spots, it is now very clear that no agreement or political solution can be reached with these bunch of people with a huge integrity deficit. “Cairo is a nonentity, an impostor and a rabble rouser in a non-existent National Working Committee (NWC). Sheriff has no men to constitute an NWC with the required constitutional quorum.” He said Sheriff has surrounded himself with the likes of Ojougboh who were neither elected nor appointed into leadership positions in the PDP. “Cairo shamelessly parading himself as the Deputy National Chairman is the worst case of

MALABU DEAL: MOHAMMED ABACHA, FASAWE GIVE DETAILS OF HOW $1.1BN WAS SHARED former Attorney General of the Federation and Minister of Justice, Mr. Mohammed Adoke, a former Minister of Petroleum Resources, Chief Dan Etete, and others charged with various alleged offences for their roles in the transaction. According to court papers, a son of the late military Head of State, Sani Abacha, Mohammed, and a known associate of former President Olusegun Obasanjo, Oyewole Fasawe, gave details of how OPL 245 was allegedly taken from them and sold to the SNUD,

SNEPCO and NAE consortium in 2011. They also provided insight into how the $1.1 billion paid by the consortium for OPL 245, which was facilitated by the Nigerian government, was shared by some prominent individuals, without the knowledge and involvement of a majority of the actual owners of Malabu Oil. Abacha and Fasawe equally gave details, in their joint plaintiffs’ statement of claims, in a suit they recently filed at the

RETRACTION In a report titled: ‘Association Threatens to Shut Down LBIC’, in our online edition of September 11, 2016, certain imputations were wrongfully made against the MD/CEO, Lagos State Building Investment Company (LBIC), Ms. Folasade Folivi. We hereby withdraw the entire report and apologise for whatever embarrassment the report may have caused Ms. Folivi. - Editor

Federal High Court, Abuja, of the roles allegedly played by former Ministers of Petroleum, Justice and Finance – Dan Etete, Mohammed Adoke and Yerima Lawal Ngama, respectively – in the transaction leading to the sale of OPL 245 and the lodgment of the proceeds from the deal in the federal government’s escrow account. The EFCC, in a court document filed earlier this year, had stated among other things that Malabu Oil was incorporated in Nigeria sometime in April 1998 with shareholders, namely: Mohammed Sani (fronting for the late Gen. Sani Abacha), Kwekwu Amafegha (representing Dan Etete, then Minister of Petroleum Resources) and Hassan Hindu (on behalf of Ambassador Hassan Adamu.) The commission stated that in the same month, the Ministry of Petroleum Resources offered Malabu Oil a deepwater oil block

processing licence in respect of OPL 245. EFCC stated that upon the death of Gen. Abacha in June 1998 and between 1999 and 2000, the corporate status and shareholding structure of Malabu Oil were altered severally through forged board resolutions, which eventually divested Mohammed Sani of his shares while new shareholders and directors were appointed fraudulently. In their court documents filed on March 20, 2017, Abacha and Fasawe, who claimed to own a 70 per cent stake in Malabu Oil, said they were fraudulently divested of their shares. The suit has Malabu Oil and Gas Ltd, Mohammed Sani and Pecos Energy Ltd as plaintiffs, with Kweku Amafegha, Munamuna Seidougha, Amaran Joseph, Corporate Affairs Commission (CAC), Shell, Agip, Federal

Government of Nigeria (FGN), Attorney General of the Federation (AGF), and the Petroleum Minister as defendants. The plaintiffs stated that at inception, Malabu Oil’s equity holding of 20 million was shared among its initial subscribers thus: Mohammed Sani: 10 million (equivalent of 50 per cent), Kweku Amafegha: 6 million (30 per cent) and Hassan Hindu: 2 million (20 per cent). They said Hindu’s 20 per cent was later bought in 2000 by Fasawe through his company, Pecos Energy Ltd. They stated that while Abacha was imprisoned between 1999 and 2002 and could not actively participate in the affairs of Malabu Oil, “Chief Dan Etete (also known as Chief Dauzia Loya Etete, the consultant to the first plaintiff Continued on page 13

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T H I S D AY • MONDAY, MARCH 27, 2017

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WhatsApp Technology on Int’l Radar after British Terror Attack With the spectre of terror attacks and insecurity worldwide, WhatsApp users may no longer be guaranteed privacy, as the British government is demanding for access to encrypted messaging services provided by technology firms on mobile devices. There must be “no place for terrorists to hide” and intelligence services must have access to encrypted messaging services, the Britain’s Home Secretary, Amber Rudd has said.

It comes after it emerged that Khalid Masood was reportedly on the messaging app WhatsApp two minutes before an attack in Westminster in which he killed four people. Police were unable to read his messages. But labour leader Jeremy Corbyn said there was a balance between the “right to know” and “the right to privacy”. Amber Rudd said she would be

asking tech firms to “work with us” when she meets with them this week. Speaking to BBC One’s Andrew Marr programme, Ms Rudd said: “We need to make sure our intelligence services have the ability to get into situations like encrypted WhatsApp.” Encryption is a way of scrambling computer data so it can only be read by the people you want to see it. All messages sent on WhatsApp have end-to-end encryption. This means messages are

unreadable if they are intercepted by anyone, including law enforcement. The Facebook-owned company, which has a billion users worldwide, has said protecting private communication was one of its “core beliefs”. Asked if there was an issue about giving the security services more powers to hack in to messaging services like WhatsApp, Mr. Corbyn told ITV yesterday that they already had “huge powers” of investigation.

But writing in the Sunday Telegraph, the home secretary said she was asking companies like Google, Twitter and Facebook to be more “proactive” in tackling extremism. In the Sunday Times, Foreign Secretary Boris Johnson also called for internet companies to develop technology to detect and remove extreme material. The calls come after Wednesday’s terror attack when attacker Masood

ran down pedestrians and fatally stabbed a police officer who was guarding the houses of Parliament. In total, five people died – including the attacker who was shot by police – and 50 others were injured, two seriously. On Saturday the Metropolitan police said they believed Masood acted alone. But they added they were also “determined” to find out whether he had been inspired by terrorist propaganda.

African Cooks to Look out For on London Streets There are 54 countries in Africa, each with numerous ethnic groups and languages and each with their own individual cuisines,” says Alicia Ama, who runs a Ghanaian food business called Chalé! in east London. “It’s such a vast continent, but when it comes to African food in the UK, there are so few reference points in the general public’s mind. People think of tagines and Jamie Oliver’s jollof rice. But it’s so much more than that.” Ama is one of a new generation of cooks, many of them coming up through the London street food scene, who are striving to broaden and complicate our notions of African food. Even now, if you want to sample cooking from Nigeria, Ethiopia or Zimbabwe, you have to do a bit of detective work. The restaurants exist, and some of them are excellent, but they tend to cater to the diaspora rather than the general public (and good luck to you if you’re searching for decent African restaurants outside London). But things are starting to change. African food is on the rise this year, and it’s Ama and a growing number of young culinary pioneers – at markets, pop-ups and cafés around London – who are bringing it about.

Makda and Jack Harlow, Lemlem Kitchen Long before they started Lemlem Kitchen in 2014, Makda and Jack Harlow wanted to run a business together. She was working in fashion

Makda. “It’s an introduction of Eritrean flavours to the London scene.” “We weren’t sure what kind of reaction we’d get,” says Jack. “There’s been a bit of criticism online, but mostly people are inspired. Kids in the diaspora who associate traditional food with weddings and funerals see us mixing Eritrean flavours with things like tacos and wings and it blows their minds.”

Alicia Ama, Chalé!

Alicia Amaa of Chale! retail, he was an operations manager at Universal Music. They didn’t know what their business would be exactly, but both loved cooking and food markets. Gradually, the idea of setting up a food stall came into focus. From there, it wasn’t a great leap to figure out what kind of food they’d serve. Makda grew up in Eritrea, and although there are some very good traditional Eritrean restaurants in London, there was a gap to be filled on the street food scene. The tougher question, when they secured a space at Netil Market in east London, was how to present it. “We came up with lots of ideas including wraps and

buns,” says Jack, “but the idea that was almost an afterthought is now our signature dish.” They call them “Afro-tacos” – palm-sized disks of injera, the ubiquitous spongy flatbread of Eritrean and Ethiopian cuisine, topped with intensely flavoured hits of spiced lamb, cardamom-braised beef or fried fish with yogurt and pickled green chilli. Sides include chicken wings in awaze sauce and steak fries with asmarino salsa. While the flavours are recognisably Eritrean, the presentation has a universal appeal. “We’re trying to find a way to change traditional food to something different, to make it accessible,” says

When Alicia Ama first served her food at a market in east London in June 2014, she worried that some of her customers might find it overwhelming. “Is it too spicy?” she wondered. “Are you going to die?” Ama, who grew up in Ipswich, was cooking dishes from Ghana, where her mother was born. Ama had visited the country regularly as a child and loved the intensity of Ghanaian cuisine – “125% spicy” – but she had no idea how Londoners would react. Fortunately, there were no casualties: “People kept coming back.” Now Ama runs a flourishing street food company called Chalé!, which means “friend” in Ghanaian slang. She trades most Sundays at Chatsworth Road market in Hackney and occasionally at the weekend food market at the Southbank Centre. She also does pop-ups at cafés and bars around London, including a yearly residency at

Tottenham’s Craving Coffee. The spiciness has been toned down since that first day, but her customers have proved more adventurous in other ways. “At first I tried doing fusion,” she says. “I’d put jollof rice into wraps and make chichinga (beef kebab) into a sort of burger. But then I found that the authentic dishes sold much better. People were more interested in our peanut butter stew or vegan kontomire (spinach stew with coconut and pumpkin) than the more westernised dishes.” It’s not only Ama who was taken aback by this. “My aunties back home in Ghana were amazed,” she laughs. “They couldn’t believe people in London wanted to eat Ghanaian food. They didn’t realise how hungry people in the west are for new flavours.” One day Ama might open a restaurant, but for now she’s “really enjoying the street food scene. It’s more dynamic and you get to meet your customers. It’s hands-on, fast and fun.”

“I want to bring West African food to the masses,” says Nima Owino, who runs supper clubs and market stalls in east London. “I don’t see why it shouldn’t be as popular as Indian or Chinese food.” Owino was raised in London, but she has family connections to

West Africa. At her monthly supper club Cham Cham, launched in October 2014, and her food stall of the same name at Well Street market in Hackney, she focuses on the cuisine of Sierra Leone and Liberia, where her mother grew up. “Some of the dishes are truly authentic,” she says, “whereas some have a personal twist.” She serves pepper chicken, a classic West African street food dish, in a sweet bread roll with a superb jacato (aubergine) baba ganoush, which you can also buy in jars from her stall. One detail that sets Liberian and Sierra Leonean food apart, says Owino, is the use of leaves from root vegetables such as cassava or sweet potato. A favourite dish of hers, which you might get to try at her supper club if you’re lucky, is cassava leaves slow-cooked with beef, butter beans and onions. What has kept West African food from becoming as popular as cuisines from India or China? It’s down to lack of familiarity, says Owino. “When Punjabi food was introduced here, people were like: ‘Oh I’m not really familiar with that ingredient, that smell or spice.’ It’s the fear of the unknown, really.” That’s beginning to change, she says. “In the last year I’ve seen loads of African stalls and cafés popping up and people are becoming more familiar with the dishes. It’s definitely getting a lot more interesting now.” • Culled from The Guardian, UK

1005556552 in Keystone Bank, a transfer of $54 million was made to Bombadier as payment for the purchase of an aircraft. They further stated that none of the persons listed as having been paid from the proceeds of the sale of OPL 245 sale rendered any known service to Malabu Oil and that no aircraft has been delivered to date. The plaintiffs noted that at the time of the transaction leading to the payment of the money, the first plaintiff operated from the offices of Mr. Rasky Gbinijie on the 3rd Floor of No. 30 Catholic Mission Street, Lagos. They added that it (Malabu Oil) has no office notwithstanding the $401 million allegedly received by it. “The first plaintiff’s purported Account No: 1040659338 in Keystone Bank Plc to which the proceeds of the alleged surrender of the first plaintiff’s OPL 245 was paid, has as its sole signatory one Chief Dauzia Loya Etete, who is neither a shareholder nor a director of the first plaintiff and it is the said Chief Dauzia Etete that frittered away the whole proceeds paid to the first plaintiff,” the plaintiffs said. None of the defendants has responded to the suit while the case is yet to be assigned to a judge for hearing. Meanwhile, Justice John

Tsoho has fixed a new date for the arraignment of Adoke, Etete and others for alleged corruption, after the EFCC failed to turn up in court last Thursday when the two charges it filed against the accused involved in the Malabu deal were mentioned. None of the defendants was also represented in court. An official of the court later drew the judge’s attention to a letter from the EFCC seeking an adjournment to enable it tidy up some issues regarding the case, in view of the fact that most of the defendants were said to be currently outside the court’s jurisdiction. Justice Tsoho acceded to the request by the EFCC and adjourned to April 3 for possible arraignment of the defendants. Shell, Agip, Adoke, Etete and others have been charged to court by the EFCC over alleged corruption involving the sale of OPL 245. Agip’s parent company in Italy, ENI, and its CEO are facing similar corruption charges in Italy. After obtaining a temporary forfeiture order on OPL 245 to the federal government, EFCC’s attempt to get a permanent forfeiture order on the oil lease was blocked recently when the court ordered that the oil block be returned to Shell and Agip.

Nima Owino, Nim’s Din Blog/Cham Cham Supper Club and Stall

MALABU DEAL: MOHAMMED ABACHA, FASAWE GIVE DETAILS OF HOW $1.1BN WAS SHARED (Malabu Oil) whose function was in an advisory capacity, took over the first plaintiff’s books, documents and records in the absence of the second plaintiff (Mohammed Sani) without any mandate to do so. The plaintiffs further stated that sometime in 2010, they learnt of some fraudulent alterations of the shareholding structure of Malabu Oil in its files with the CAC, purporting to divest the three original shareholders of their investments in Malabu Oil and allegedly making Seidougha and Joseph the only shareholders and directors with 10 million shares each. They added that upon realising of the alleged fraudulent alteration of the company’s share structure and the plan to sell its core asset, OPL 245, they wrote a letter dated May 24, 2011 to then AGF, Adoke, “Complaining of the fraudulent alteration of the shareholding structure of the first plaintiff and the need to prevent the conclusion of the transaction in respect of OPL 245.” They added: “Sometime in April 2011, SNUD, SNEPCO and NAE entered into a negotiation and allegedly bought over the assets of the first plaintiff, OPL 245, through the second and third defendants (Seidoougha and

Joseph) and Chief Dan Etete acting as the two directors and consultant respectively of the 1st plaintiff, for a consideration of about $1.3 billion with the Federal Republic of Nigeria acting as an obligor. “The said transaction was carried out through a series of agreements signed and dated between 29th and 30th April 2011 by Seidougha Munamuna purportedly acting as a director of the first plaintiff and Mr. Rasky Gbinijie purportedly acting as company secretary of first plaintiff, with the fifth, sixth and seventh defendants – Shell, Agip and FGN,” the plaintiffs said. They stated that conscious of the possible consequences of their (plaintiffs’) complaints and protests about the alleged illegality of the transaction leading to the sale of OPL 245, Shell and Agip “requested the involvement of the FGN as a form of guarantee and security for the investment they sought to engage in. The plaintiffs said: “Following the execution of the several agreements, $1,092,000,000.00 was paid into a Federal Republic of Nigeria Domiciliary Escrow Account No: 41454193 domiciled in JP Morgan Chase Co., London to be passed to the first plaintiff as consideration for the alleged

surrender of its asset - OPL 245. “On 16th August 2011, the FGN through the then Minister of State for Finance, Dr. Yerima Lawan Ngama and the AGF, Mohammed Bello Adoke (SAN) instructed the release of the money from the said Domiciliary Escrow Account of the FGN in the following manner: $401,540,000 paid into Account No: 2018288005 purportedly belonging to the first plaintiff in First Bank of Nigeria Plc, and $400,000,000 paid into supposed first plaintiff’s account No: 3610042472 with Keystone Bank Limited. “Out of the $1,092,000,000.00, the sum of $801,540,000 was paid into the first plaintiff’s account with First Bank of Nigeria Plc and Keystone Bank Limited allegedly opened and run by the first plaintiff, yet Chief Dauzia Loya Etete (aka Chief Dan Etete) is the sole signatory to the two accounts,” they said. On how the money was eventually shared, the plaintiff stated that on August 24, 2011 when the Keystone Bank account, of which Etete was the sole signatory, was credited with $400 million, $336,456,906.98 was transferred to Account No: 1005556552 allegedly owned by Rocky Top Resources in Keystone Bank, Abuja CBD branch. They added that the balance of $60,000,000 was transferred to

account No: 3610042596 for forex trading. The plaintiffs, who stated that Rocky Top Resources Ltd was owned by Abubakar Aliyu and Bashir Adewumi, explained that the money transferred to the Keystone Bank account was further transferred to other unnamed individuals, leaving a balance of $171,135,960.63. They also stated that the $401,540,000 paid into the First Bank account, was distributed as follows: • A Group Construction Co. Ltd. (owned by Abubakar Aliyu and others) of No. 2378 Limpopo Street, Maitama was paid $157 million. • Mega Tech. Engr. Co. Ltd. (owned by AVM Nura Imam, Bashir Galandashi and others of 14C Durbin Katsina Road, Kano) got $180 million. • Imperial Union Ltd of Plot 14 Wempco Road, Ikeja (owned by Omochonu Josef and Adeyemi Adeyinka) got $34 million. • Novel Property and Development Ltd of No. 22 Capitol Road (owned by Adesegah Moses, Abubakar Aliyu, Adeyemi Tunji and Suleiman Ibrahim) got $30 million. The plaintiffs added that by the statement of account of Rocky Top Resources Ltd’s Account No:

T H I S D AY MONDAY MARCH 27, 2017

COMMENT

Editor, Editorial Page PETER ISHAKA Email peter.ishaka@thisdaylive.com

ECONOMIC RECOVERY AND GROWTH PLAN

Boniface Chizea raises questions over the implementation of the plan because of the 2019 elections

e celebrate the fact that the Economic Recovery and Growth Plan had finally seen the light of the day. A cursory look on the document conveys a distinct impression of a job well done. The expectation is that now that the document has now been released it would live up to its billing by hastening steps to exit the recession which by all account should happen this year and if we do what we should do with Budget 2017 and also satisfy the requirements of the multilateral financial institution, IMF, which insists that for us to deal with them that we need to craft a recovery and growth plan. There are a number of issues arising from the plan which we would wish to foreground to alert us of the pitfalls ahead. We are all concerned regarding the possibility of having this plan implemented despite the fact that it has been observed in the document that focused implementation is at the core of the delivery strategy of the plan over its four-year duration which is anchored on the fact of political will at the highest level of government. We also concur that the scenario to have the plan implemented has radically changed following the merger of the budget and the planning functions which we have recommended for so many years. But we are not so sure about the indication that a delivery unit would be established at the Presidency to guarantee focused delivery. We are particularly concerned that this would amount to undue multiplication of bureaucracy which is one of the shortcomings of governance in the country. Our take is that the Ministry of Budget and Planning retaining its monitoring and evaluation role should be able to perform this function even if a separate unit should be created for emphasis regarding the importance placed on delivery of the objectives of the plan. But a greater concern regarding implementation is from the perspective of the time available to implement the plan factoring in the recently released election calendar by INEC. We have been informed that primary elections for the 2019 elections would commence from the third quarter of 2018 and it’s common knowledge that once politics is in the air little or scant attention is paid to governance. Therefore for a four- year plan with commencement date for implementation this year and for which there is barely at best one more year left does not have much chance of gaining traction by way of effective implementation. And the experience has been that even if the incumbent party is returned after the elections that sufficient momentum must have been lost as to almost assure that it would be an unusual occurrence for the plan to be dug up for focused implementation. And while we are discussing this four-year plan you might be reminded that we have another three-year plan: the Medium Term Expenditure Framework (MTEF) which was supposed to provide the beacons for the implementation of Budget 2017. It would appear that even as we have been hearing of the MDAs going to the Assembly to defend their budget, the role of the MTEF whose approval should to all intents and purposes precede Budget 2017 preparation is hardly being mentioned and would appear to have been conveniently forgotten. And when you recall this country’s record with implementation of such plans; Vision 2010, Vision 20:2020 which in my assessment still remains today the document which all such future efforts must be benchmarked in terms of its completeness and overall professional packaging, and many other such plans you can only struggle to suspend doubt that this new plan would fare

THE MINISTRY OF BUDGET AND PLANNING, RETAINING ITS MONITORING AND EVALUATION ROLE, SHOULD BE ABLE TO PERFORM THIS FUNCTION EVEN IF A SEPARATE UNIT SHOULD BE CREATED FOR EMPHASIS REGARDING THE IMPORTANCE PLACED ON DELIVERY OF THE OBJECTIVES OF THE PLAN

better in this respect. There is also some doubts regarding the extent of inclusiveness which attended this plan formulation from the perspectives of involvement in plan preparations. Usually the monetary authorities are also carried along and indeed participate in such an exercise but it does not appear that this has been the case this time around as there had not been any specific proposals regarding monetary policy thrusts in the plan. We read of the push to relax restrictions with a view to a market-driven regimen and the goal for single digit inflation rate by the year 2020 from the current rate of over 19 per cent which has just been reported to have dropped to 17.8 per cent against the background of drop in the price of food and nonfood items. This has remained the target of monetary authorities for some time now and in point of fact the rate of inflation remained single digit for a long time in the immediate past until the onset of recession. It is also a bit worrisome that part of the measures included in the plan is a review of some of the items which were denied access to the official foreign exchange window by the central bank as a means of stabilising the macroeconomic environment with the statement of the intention to have this policy stance reviewed. It is surprising that such a measure which strictly should be work in progress could find its way as one of the strategies to be included in a four-year plan! Also the desire for coordination of monetary and fiscal policies to ensure that they complement is also considered one of the strategies for the attainment of macroeconomic stability and worthy of inclusion in the plan. Often for such documents there is separate consideration for debt policies particularly as we would seem to have commenced rapid accumulation of these debt in our determination to exit the recession but which if not circumscribed by a policy framework might see the country slipping back to the dreaded debt peonage of yesteryears. It is however reassuring that we have been informed that the sub-national governments have been carried along in the plan preparations and that even some of the state governments have commenced the implementation of some of the strategies in the plan. The state governments in the country are notorious for noncompliance with such policy measures. A case in point is the Fiscal Responsibility Act in which the states are expected to toe the line for guidance with the preparation of their annual budgets and which to a large extent is being observed in the breach. The plan includes the statement of a vision in which an attempt is made to document the expected state of economic affairs following the plan implementation but there was no specific articulation of a vision statement such as is often committed to memory to help to keep the imperative of the plan in people’s consciousness. And usually for such plans, an attempt is often made to articulate a mission statement which has not been included here. Some of the targets in the plan are most certainly ambitious. For instance the target to grow job opportunities during the plan period to create 15 million jobs which translates to over three million jobs a year is ambitious going by our very recent experience, to cut fuel import by 60 per cent by the end of 2018 and become a net exporter by 2020 should also be seen in the same context. But it is music to the ears to read of the intention to leverage on Science, Technology and Innovation and to build a knowledge-based economy over the plan period because that is clearly the way of the future. Dr. Chizea is a management consultant

ALONE IN A CROWD

ith juicy carrots on one hand and barbed sticks on the other, the All Progressives Congress has been cashing in on the internecine feud that has engulfed the Peoples Democratic Party in recent past. Even as efforts are being made by notable leaders of the party to resolve the dispute between the Ahmed Makarfi and Ali Sherriff factions, the APC has succeeded in luring fair-weather politicians away from the party. The exodus of such political ‘heavyweights’ has been most pronounced in the South East geopolitical zone, the latest being the immediate past governor of Enugu state, Sullivan Chime. Though he has not publicly joined the APC, he found the national dispute within the PDP a convenient alibi to quit. The big fishes have been the most vulnerable: if there are no Dasuki funds to refund, like in the case of Jim Nwobodo, there is a national appointment to keep, like in the case of Ken Nnamani or a platform is needed for a governorship election, like in the case of Andy Uba. The list continues to grow, especially in Enugu State, but the decision by Chime to jump ship is most curious, and provides a different perspective on its own. Though there was noticeable disquiet in Enugu over the news of Chime’s defection, not many party faithful would lose much sleep; after all, not many

Sullivan Chime’s decision to dump the PDP is ill-advised, argues Sheddy Ozoene have even sighted him in public since his departure from Lion Building, Enugu State’s seat of power. However, the statements he made as he exited the party have raised a few eyebrows. After parting ways with the party on whose platform he rose to the governorship of Enugu State, he has launched into several half-truths and outright lies to justify his decision, and ultimately find accommodation within the APC. Forget his claim that “the PDP I joined in 1999 and had the opportunity of leading in the state for eight years no longer exists in the true sense of it”, his real intention is to rally whatever remains of his supporters to another platform where he plans to actualise whatever personal political aspiration he nurses. Many say he is frustrated with his downward slide in political relevance since quitting office. After becoming Enugu governor on popular acclaim in 2007, Chime maintained a fair rating all through his eight years tenure, made even more so by the sentiment against his predecessor, Chimaroke Nnamani. After what many consider to be an eventful–-even if controversial---tenure, largely defined by Nnamani’s propensity for stepping on toes and the high-handed tactics he applied in extracting political loyalty from subordinates, Chime’s eight years offered a sharp contrast in leadership style. While he didn’t totally disappoint on that score, it was always going to be difficult to maintain political relevance out of office considering his awkward aloofness and his ascetic, self-effacing

nature that keeps him withdrawn from the public. He may also have been miffed that he is increasingly being overshadowed in the political scheme of things in Enugu State. On this score too, he stands to blame. Ever since he left office, the man noted for his reclusive nature has not identified with the party at the ward, local government and state levels, a sharp contrast from what obtains with other leaders who make it a point of duty to attend any and every party meeting. The fact that his very popular successor, Governor Ifeanyi Ugwuanyi, coupled with a formidable ally like Ike Ekweremadu, has built an awesome political structure in the state ought not to displease him or create unnecessary animosity in the state. The speculation that Chime may be spoiling for one more dog-fight with Ekweremadu for the Enugu West Senatorial seat in 2019 is far-fetched. Though he was muscled out in 2015 by Ekweremadu, even as a sitting governor, it is doubtful if Chime can muster the political clout to stand Ekweremadu who by virtue of being the DSP is the highest ranked PDP man in public office in Nigeria today. In the nation’s order of protocol, Ekweremadu is also the foremost Igbo politician in Nigeria. When considered against his low approval rating among his Udi and Enugu West kinsmen over what they consider his uncharitable statements and low-energy performance in the area while he was the state governor, Chime has no chance in a senatorial contest involving Ekweremadu.

However, Chime may be charting a very unlikely route to launch to the forefront of Enugu politics: immediately after taking the PDP exit door, he mounted the campaign to get the Independent National Electoral Commission to deregister Ekweremadu’s PDP. He has been vehement in saying the PDP was no longer working in tandem with the constitution that created it, and insisting that neither Makarfi nor Sherriff can actually lay claim to the position of PDP National Chairman. Many have referred to the ex-governor’s ongoing corruption case with the EFCC as his reason for quitting the nation’s opposition party. Though he strenuously denies the EFCC link, the fact that he has been hard put explaining his government’s financial indiscretions give a lie to his grandstand. His performance as governor is a different matter altogether. While there is a preponderance of opinion that he was above average, the latter day disagreements with the state House of Assembly which unearthed some allegations of financial misdemeanor, were revealing. Has Chime always been a loyal member of the PDP? It is debatable considering that he picked up the party membership card from his Udi ward only after his predecessor, Nnamani, had fingered him as the party’s governorship hopeful in 2007. His decision, ill-advised as it is, does not, therefore, come as a surprise. As it is, that association with the party lasted just as long as his governorship. Ozoene wrote from Nsude, Enugu State

T H I S D AY • MONDAY MARCH 27, 2017

EDITORIAL DEALING WITH THE FOREX CONUNDRUM

The central bank should allow the forces of demand and supply to determine the exchange rates

fter almost defying the law of gravity, the naira seems to be finding its level in the foreign exchange market following the decision by the Central Bank of Nigeria (CBN) to counter-attack the currency speculators. But to the extent that we cannot say that the naira has finally settled at its true value, we call on the apex bank to take a long-term view of the foreign exchange problem in the bid to finding a lasting solution, especially now that it appears to be winning the battle against the speculators. The problem started with the massive drop in the price of crude oil towards the end of 2014, when it became clear that as a largely mono product economy in terms of foreign exchange earnings, Nigeria was going to be under pressure. The first action by the CBN in 2015 was to draw up a list of 41 items which it took out of the official foreign exchange market. This was done to control the demand for foreign exchange and conserve our THE PRESENT ACTIONS foreign reserves. MAY GIVE SOME Unfortunately, that TEMPORARY RELIEF, BUT was the point at THEY ARE DEFINITELY which the exchange UNSUSTAINABLE rate started going up. The reason for this is simple: these items needed to be funded through unofficial sources. As the naira continued its free fall, there were strident calls by critical stakeholders within the economy for the CBN to devalue the currency. The logic for these calls included that since the apex bank didn’t have limitless supply of the foreign currency, it could not forever control the price. The second reason is that an overvalued currency serves to encourage imports and discourage exports. It is also argued that an overvalued currency tends to discourage foreign

Letters to the Editor

capital investments. Besides, it is inefficient to insist on artificial low rates for the foreign currency as the government literally cheats itself of the opportunity to raise commensurate local currency from its sales of the scarce foreign currency. If it sold at market determined rates, it would be able to raise more naira with which to settle local debts to creditors, including contractors. Most important, selling foreign currency at subsidised rates creates a strong incentive for speculation and round tripping. However, the CBN decided that it would continue to hold the naira/dollar exchange rates at pre-determined levels. But there is a problem with that. The official rate of N305/dollar does not have any scientific basis. To make matters worse, the CBN came up with several other rates for different kinds of transactions. The basis for these rates is also at best opaque.

T H I S DAY

EDITOR IJEOMA NWOGWUGWU DEPUTY EDITORS BOlAJI ADEBIYI, JOsEpH UsHIGIAlE MANAGING DIRECTOR ENIOlA BEllO DEPUTY MANAGING DIRECTOR KAYODE KOMOlAfE CHAIRMAN EDITORIAL BOARD OlUsEGUN ADENIYI EDITOR NATION’S CAPITAL IYOBOsA UWUGIAREN

T H I S DAY N E W S PA P E R S L I M I T E D

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t some point, the CBN publicly challenged speculators that it would continue to flood the market with dollars to ensure they face sustained losses. In less than two weeks, the CBN pumped over $1.5b into the market to take care of unsatisfied invisible transactions of school fees, medical bills and other remittances that had been lingering on in the market for several weeks. The black market rate had been pummelled to about N395 as at the time of going to press. While we sympathise with the CBN that has had to make difficult choices in recent months, we nonetheless believe that this is the time for it to play its role as regulator in the market while allowing the forces of demand and supply to determine the exchange rates. There is no doubt that there may be an initial spike in the exchange rates but it is bound to settle at the equilibrium while other actions that will follow will stabilise the market at more realistic levels. From our understanding of the market, the present actions may give some temporary relief, but they are definitely unsustainable.

TO OUR READERS Letters in response to specific publications in THISDAY should be brief (150-200 words) and straight to the point. Interested readers may send such letters along with their contact details to opinion@thisdaylive.com. We also welcome comments and opinions on topical local, national and international issues provided they are well-written and should also not be longer than (9501000 words). They should be sent to opinion@thisdaylive.com along with the email address and phone numbers of the writer.

CHILD ABUSE AND RIGHTS’PROTECTION SYSTEM

hildren represent the future and ensuring their healthy growth and development ought to be a prime concern of all. A working child protection system is a prerequisite for any nation aspiring for growth and development. Planning for development without a set of laws, policies, regulations and services across social sectors could only amount to a futile exercise. It is a fact that nations that experience prosperity are where family stability is jealously guided. To achieve global development goals, Article 19 of the UN Convention on the Rights of the Child provides for the protection of children in and out of the home. Similarly, Nigeria’s Child Rights Act 2003 provides for children’s rights. But the sad reality is that child right protection policy in most states and at the federal level is adequate only on paper. This explains why, in spite of being regarded as precious gifts from God and best hope for the future, children are still subjected to abuses and neglect. In Nigeria today, fundamental rights of children are being encroached upon on a daily basis without appropriate sanction. And this is so, not because we don’t have laws and policies on child protection but due to lack of social consensus and political will to successfully implement laws and policies. According to global survey conducted in 2012 by The Economist Intelligence Unit, Nigeria is rated one of the worst countries in the world for children or for a child to be born. It could be heartbreaking reading about inhuman and degrading treatment being meted out to Nigerian children both at home and institutional level. In some schools, it is still usual to see

children being subjected to all forms of corporal punishments. Child abuse also occurs at homes when parents unduly yell, threaten, reject or ignore the child. It could be shocking seeing the extent at which some parents rain curses on their children. Some even fail to provide basic needs, adequate food, clothing, hygiene and medical care or support for their children. All these can lead to interference with the child’s normal social or psychological development leaving the child with lifelong psychological scars. Also, sexual abuses, which include but not limited to child marriage is a form of child abuse that has become a scourge in our society. Cases abound where fathers, uncles, guardians, male teachers, clerics, etc., have sexually molested under-age girls. Some engage in child violation for ritual purposes and most time this leads to mental disorder on the part of abused child with perpetrators escaping sanction. In the United States, there was a case of Warren Jeffs, a Christian fundamentalist leader who was jailed for life in 2011 for taking a 12-year-old as bride. In our clime, Warren Jeffs would have escaped the hand of the law. Research has found that girl children who marry before the age of 20 are more likely to report experiences of physical or sexual violence when they started living with their husbands. This could be as a result of inability to perform marital and motherhood role as desirable. Today, we still have many children whose habitation is on the streets and since they domicile in the streets, they are generally referred to as street children. These are children that have historically been labelled and considered as delinquents,

street urchin and Almajiris, among others. Some of these children were driven from home because of maltreatment by mothers, step mothers, fathers, and step fathers, as a result of death of either of their parents or as a result of broken homes. These children are denied their basic rights and are exposed to physical, sexual and all sorts of harm and abuses and also live in inhumane and deleterious conditions. The United Nations Children Fund (UNICEF) distinguishes between two different groups of street children based on their family situations but both have a common characteristic in that they spend their lives on the streets. The first categories are of children “on” the streets. These are children who work and maintain regular relationship with their families. The second category is of children who are “of” the streets and consider street their home. The streets are where they eat, sleep, play and make friends. Children in both categories have much in common; they have unstable emotional relationships with adult world, a negative self-image, social stigma, violence, exploitation and uncertain futures. In other words, street children suffer physical abuse, psychological abuse, neglect and often sexual abuse. The increasing spate of child abuse with its attendant consequences therefore calls for urgent assessment, prevention and mitigation in order to secure the future of Nigerian children. The truth is that our child protection system is weak and we need to strengthen it. We are all duty bound in this respect. Rasak Musbau, Lagos State Ministry of Information and Strategy, Alausa, Lagos

T H I S D AY MONDAY MARCH 27, 2017

T H I S D AY • MONDAY, MARCH 27, 2017

POLITICS

Group Politics Editor Tobi Soniyi Email tobi.soniyi@thisdaylive.com 08033146139 SMS ONLY

M O N D AY D I S C O U R S E

Beyond Restructuring of the Nigerian State Although the agitation to restructure Nigeria continues to reverberate, Tobi Soniyi examines past efforts to restructure the country, concluding that the Nigerian structure may not be the issue but the people governing it

A cross section of prominent Nigerians at the 2014 national conference...an effort thrown into national archives

he call to restructure Nigeria is once again hitting the airwaves. With the country still in recession, and a general belief that the government has performed below expectation, no one is surprised that the call to restructure the county is again back in the front burner. Some claim that the country has failed to grow economically and politically because of the way it is structured. Others said Nigeria is doomed and will remain doomed unless it is saved by restructuring. The agitation for a restructured Nigeria has always been a handy tool in the hands of those who perceived that they are being marginalised in the scheme of things and those who are seeking ways to take control of governance. Elder statesman, Anthony Enahoro championed this call when he was alive. He formed the Movement for National Reformation and the Pro-National Conference Coalition for this purpose. He went as far as preparing a constitution which he thought would be ideal for the country. There were similar efforts by the National Democratic Coalition (NADECO) and a host of others. Also, a former Secretary General of the Commonwealth, Chief Emeka Anyaoku, one

of the few respected diplomats the country ever produced, learnt his voice to the call for restructuring. Speaking at a book launch in Abuja, he said: “I think that the Nigeria we have of 36 federating units now is not working. The country continues to underperform because of the 36 states we have

Former President Goodluck Jonathan played the same game. He waited till the tail end of his administration before setting up a constitutional conference whose report is gathering dust in Aso Rock. Not less than N7 billion was wasted to organise the conference

now. No less than 27 of them can no longer pay the salaries of their workers.” He suggested a return to regionalism. Lately, a former Vice President, Atiku Abubakar has also painted a gloomy picture of the country. In his views, the structure of the country is to be blamed for the lack of development in the country. He said: “Our current structure and the practices it has encouraged have been a major impediment to the economic and political development of our country. In short, it has not served Nigeria well, and at the risk of reproach it has not served my part of the country, the North well. The call for restructuring is even more relevant today in light of the governance and economic challenges facing us. And the rising tide of agitation, some militant and violent, require a reset in our relationships as a united nation.” Interestingly, many in the south believe that the present arrangement favours the north. No one knows yet what their reactions will be to Atiku’s claim that the system we currently operate has not helped the north. It is crucial to point out however, that the Kano State Governor, Abdullahi Ganduje disagreed with Atiku. He said that restructuring was not the solution to the country’s

socio-economic and political problems. To him, eradicating corruption will address developmental challenges the country faces. Past Governments Reactions to Calls for Restructuring Successive governments understood the game quite well and had always responded with the usual attitude: give them something to keep them busy. In this wise, the country had spent billions of naira setting up constitutional conferences which had always come up with reports that often usually appear to be a rehash of the earlier reports of earlier conferences. Psychologically, this gimmick has worked. By allowing people to air their views, invest their energy and time and come up with a report not intended for implementation, it’s easy to buy the time to run the government. The elites have always easily fallen for this old trick. Why the elites continue to demand for a new constitutional or sovereign national conference when the reports of such conferences held in the past were not implemented is also beyond comprehension. The military played the card well and lately, former President Goodluck Jonathan CONT’D ON NEXT PAGE

T H I S D AY • MONDAY, MARCH 27, 2017

POLITICS

MONDAY DISCOURSE

B E YO N D R E S T R U C T U R I N G O F T H E N I G E R I A N S TAT E

Buhari...restructuring not on his mind

played the same game. He waited till the tail end of his administration before setting up a constitutional conference whose report is gathering dust in Aso Rock. Not less than N7 billion was wasted to organise the conference. In 2005, the then president, Olusegun Obasanjo inaugurated a political reform committee. For the students of history, the constitutional conference set up by President Goodluck Jonathan in 2014 was about the 10th of such attempts to produce a constitution that would restructure the country since 1922. Past attempts were the Clifford Constitution (1922); Richards Constitution (1946); Macpherson Constitution (1951); Lyttleton Constitution (1954); 1960 Independence Constitution; 1975/76 Constitutional Conference, 1988/89 Constitutional Conference and 1994/95 National Political Reform Conference. There were also Constituent Assemblies of 1977/78 and 1988/89. An Executive Director, Office of Secretary of State, Atlanta, Georgia, United States, Dr Femi Ajayi, once noted that Nigerian leaders had been dancing round the circle searching for a workable constitution, with no headway. One could not agree more with veteran columnist and former managing director of the New Nigerian Newspapers, Mohammed Haruna, who after reviewing various postindependence conferences concluded that “virtually every constitutional conference in this country has come with a hidden agenda by its convener and virtually all of them have come to grief”. Although restructuring advocates are united by the word itself, they begin to part ways when it comes to specifics. While some favour ceeding more powers to states other would prefer a situation where whatever resources is found in a state belong to that state. Is Structure the Problem? Granted that no system of government is perfect and all governance structures can benefit from reforms, it is however, absurd to see the developmental challenges the country faces as purely due to the way the country is structured. Nothing can be more fallacious. A Kaduna based lawyer, Adamu Muhammed queried why Atiku Abubakar did not see anything wrong with the structure when he was the vice president. He said: “Atiku is merely telling some people what they like to hear so that he can win them to his side. For me, it is politicking. Give the Igbos the presidency today and they will shout you down if call for restructuring. Have you asked yourself why the Ijaws were not interested in having

Jonathan...a wasted effort?

Atiku is merely telling some people what they like to hear so that he can win them to his side. For me, it is politicking. Give the Igbos the presidency today and they will shout you down if call for restructuring. Have you asked yourself why the Ijaws were not interested in having the country restructured when Goodluck Jonathan was the president?

Atiku...throwing up the restructure debate

the country restructured when Goodluck Jonathan was the president?” Muhammed said some sections of the south west want restructuring because they feel they are not getting a fair deal from the present administration. “Look, I am not a politician but in my view, structure is not the problem of Nigeria. It is the greed of our elites, the desire to steal the country dry and deprive the poor the means to live a peaceful life.” He argued that no matter the structure put in place, as long as it would be operated by greedy elites, the situation would remain the same. Mohammed is not alone. There are those who are of the view that the problem with Nigeria is not just the arrangement, but the attitude of the people operating the system. A public affair analyst, Mr Emmanuel Ugwu wondered whether the Nigeria structure is the worst on earth. This is how he puts it. “Do we have the most self-defeating structure in the world? Does our structure

bear imperfections that are radically different from those of other countries? Is a change of structure all we need to witness an automatic, dramatic change of fortune? “Blaming the state of Nigeria on the structure is flirting with escapism. Nigeria is a man-made tragedy. It is a tragedy that would have evolved no matter our choice of structure. Nigerians have proved skilled in bastardising the most promising structures that serves other countries well and domesticating it as a nightmare.” Perhaps, the time has come for us as a people to shit our focus from fixation with restructuring to critically examine the credentials and the capability of those who seek to lead the country. Dr Ajayi’s suggestion in this regard is quite apt. He said: “It has been suggested that some operators of the Constitution should undergo some surgical appraisal of their mental capability before giving them the mandate to lead the country. In addition, the followership mental state of mind has

to be revamped.” Those who are still holding on to the belief that structure is the problem may wish to read the New York Editorial of March 7, 2005, titled “Hope in the Land of Dashed Hopes”. It reads in part: “For more than 40 years, the epitome of wasted potential and squandered opportunity in Africa has been Nigeria. From the time it gained independence from Britain in 1960, that behemoth of 137 million people has seemed to do its level best to fritter away every natural advantage. Given the second-highest proven oil reserves in Africa, Nigerian officials spent oil income on lavish estates in Europe instead of decent schools and water systems back home. The country that produced the Nobel laureate Wole Soyinka and arguably Africa’s best author, Chinua Achebe, was better known for the cruel, thieving dictator Sani Abacha.” Kano State Governor, Umar Ganuje, earlier cited, while rejecting restructuring as the cause of the nation’s under development called for ‘restructuring of the people’s mindsets’ as a way of returning the country to the path of progress. He said:”Nigeria should devote attention to tapping from the potentialities of its youths for national integration and development.”

T H I S D AY • MONDAY, MARCH 27, 2017

POLITICS

PERSPECTIVE

Chairman, Presidential Advisory Committee against Corruption, Prof Itse Satay...more work to be done

The Risk of Whistle Blowing Giving the limited legal protection available to whistleblowers, a legal practitioner, Dr Moses Ediru warns that the prospect of a whistleblower is precarious and beset with uncertainty

ood as whistle blowing is in fighting corruption, Moses Ediru writes that without necessary amendments to the Economic and Financial Crimes Commission act, it is not likely to achieve the desired end Whistle blowing as an adjunct to the current anti-corruption war should have been a great boost but for the lacuna in the law. In countries with well developed anti-graft regime whistle blowing has played a pivotal role which is not likely to be so in Nigeria unless there is a major amendment to the EFCC Act. The procedure for prosecuting the corruption war under the present regime has assumed a straight-jacket format of receiving complaints or petitions, investigating the petitions by scrutinising public documents to fish out illegal deals, arrest suspects, trace the proceeds of the illegal deals either to the bank or elsewhere for the purpose of attachment and prosecution of suspects and if successful, the illegal proceeds are forfeited to the government. It is the application of these formal procedures engendered by our adversitorial criminal justice system that is the bane of the anti-corruption war, particularly the onus on the prosecution to establish that the proceeds in question are derived illegally. This is even when international instruments, for example, the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988, (Art 5, para. 7) enjoins signatory nations to

consider reversing the onus of proving the legitimate origin of such proceeds and placing same on the accused because of the covert nature of the transactions giving birth to the illegal proceeds. Consciously or unconsciously, the Nigerian constitution has provided for the reversal of the onus of proof of the legitimate origin of proceeds of illegal acts in the proviso to Section 36(5) which

Andrew Yakubu’s dollars cannot be legally forfeited to the government without proof by the prosecution that the dollars are proceeds of illegal acts. In other words, even though whistle blowing has led to the physical recovery of the dollars, conviction under the current law and procedure is still illusive

reads thus: “Provided that nothing in this section shall invalidate any law by reason only that the law imposes upon any such person the burden of proving particular facts. With the above constitutional provision all that is required to accomplish the task is to insert a provision in the EFCC act to that effect otherwise, the Andrew Yakubu’s dollars cannot be legally forfeited to the government without proof by the prosecution that the dollars are proceeds of illegal acts. In other words, even though whistle blowing has led to the physical recovery of the dollars, conviction under the current law and procedure is still illusive. Without conviction any attempt to forcibly take the dollars will be illegal. However, if Andrew Yakubu is to prove that the dollars are proceeds of lawful acts, failing which the dollars will be forfeited in addition to his conviction and sentence then the whistle would have sounded a distinct call. This marks the difference between the acquittal of the former governor of Delta State in Nigeria and his conviction in London. In making the above suggestion, the writer is not unmindful of the possible argument that criminal legislation do not have retrospective force and therefore reversing the onus of proof now may not affect existing cases. Wherever and whenever such an issue is raised the writer’s argument would be that non-retrospectivity of criminal legislation attaches to distinct offences with commencement dates unlike onus of proof.

Also, the principle of he who asserts must prove under evidence law cannot be invoked against the prosecution in the circumstance since the reversal of onus of proof is of constitutional force. Apart from the limitation of whistle blowing under the current anti-corruption regime, it is expedient to sound a note of warning to potential whistle blowers. This has become necessary because of the prevailing public opinions as to whether whistle blowing should be a permanent feature of the corruption war and how it can be sustained. The writer’s concern here is the range of the protection that avails a potential whistle blower. Much as the writer knows that as soon as the whistle is blown, the blower runs under the protection of the state as provided by the law, the level of insecurity in the country may allow mysterious deaths of potential whistle blowers before they would have had the opportunity to put their mouths on the whistle. This is because; desperate corrupt officials are going to embark on elimination spree of all who played a part in hiding the loot or illegally gotten wealth. It is, therefore, clear that the pre-whistle blowing life of a potential whistle blower is precarious and berserk with uncertainty. This fact calls on the potential whistle blower to be swift in deciding what to do. Finally, the writer’s position is that whistle blowing can only be a boost to the anti-corruption war if the necessary amendment to the EFCC act is carried out. Ediru, a public opinion analyst, wrote in from Lafia, Nasarawa State

MONDAY, MARCH 27, 2017 • T H I S D AY

FEATURES

Acting Features Editor Charles Ajunwa Email charles.ajunwa@thisdaylive.com

How Nigeria Committed S’Africa to Ending Xenophobia Alex Enumah writes that with the recent establishment of the Early Warning Unit by both the Nigerian and South African Governments, end is now in sight for xenophobia in Southern African country

L-R: Nigeria’s Minister of Interior, Lt. Gen. Abdulrahman Bello Dambazau (rtd), Nigeria’s Minister of Foreign Affairs, Mr. Geoffrey Onyeama, South African Minister of International Relations and Cooperation, Maite Nkoana-Mashabane and Minister of Home Affairs of the Republic of South Africa, Mr. Malusi Gigaba, at the conference room of The Department of International Relations and Cooperation in South Africa…recently

elations between Nigeria and South Africa are both historical and strategic. The relations which according to the two countries are special date back to the era of the fight against apartheid in South Africa, when Nigeria though in the western region of Africa identified with and contributed in great measure to the emancipation of the people of South Africa. This relationship has flourished over the years that today there are more than 120 South African businesses in major sectors of the Nigerian economy and with Nigerian professionals shaping development in South Africa. “In Nigeria we cannot overestimate the role of South African business in the development of Nigeria, in telecommunication, be it in the media, television, retail sector, wholesale sector in our country, making real visible impact on our economic, social and cultural development and job creation that we see because South African investment in our country is enormous. “So too here in South Africa, in almost every sector; universities, doctors, professors, engineers, all aspect of lives, you have Nigerians also helping to drive development of this country. So, we have so much holding us together,” says Minister of Foreign Affairs, Geoffrey Onyeama. At the national level, there have been high level visits and meetings between the two countries to the extent that a decision was taken to elevate the existing Bi-National Commission (BNC) to the Heads of State level in further demonstration of their collective desire to forge a special relationship.

The aim, according to Onyeama is to ensure that presidents of the two countries speak with one voice at all times, on issues of common interest in their countries, region, continent and globe. However, this lofty ideal is on the verge of being destroyed by the recent xenophobic

The beauty of the Early Warning Unit mechanism apart from making vital information available to all parties is that its report forms part of the agenda of the Bi-National Commission meetings at the level of Heads of State. This means that the Nigerian and South African Presidents are up to date with happenings to their citizens in each other’s country and can quickly intervene before things get out of hand

attacks on foreign nationals living in South Africa, especially Nigerians. In the February attack, though no life was lost, there was however, reported cases of body injuries and loss of properties estimated to be around N84m. The grouse of the South Africans is that foreigners particularly, Nigerians were taking away the jobs that were meant for them. They also alleged that the high level of crimes such as drug, prostitution and kidnapping were perpetuated largely by foreigners in their country. But whatever are reasons for the attacks, it did not go down well with Nigeria and Nigerians, who for the very first time, in their rage did not only call for reprisals on South African investments in Nigeria but embarked on a protest, with the National Association of Nigerian Students (NANS) giving a 48-hour ultimatum to South African nationals to leave Nigeria. Also South African businesses such as Shoprite, MTN, MultiChoice and others were threatened. To salvage the situation, the Ministry of Foreign Affairs took the first diplomatic step by summoning the South African High Commissioner to Nigeria, Lulu Mnguni, for explanation and position of the South African Government over the matter. Onyeama, also requested the envoy to facilitate a visit of a Nigerian delegation to South Africa to enable them find a lasting solution to the issue. Convinced that the problem at hand could best be resolved through dialogue rather than being confrontational, the Federal Government of Nigeria sent a powerful delegation headed by Ministers of Foreign Affairs and Interior to

meet with their South African counterpart as well as ascertain the well-being of Nigerians living and doing business in South Africa. The decision to dialogue was based on Nigeria’s conviction that the attack was the action of a criminal minority which does not have the backing of the South African Government. According to Onyeama, the incident should not be allowed to define relations between the two countries. He said, “Unfortunately for some time now there has been this incidence of attacks and Nigerians have been victims and we as a government have known that this was not state sponsored and that the South African Government always condemned this and that the South African people always condemned this and it was very often the action of a small minority, a small criminal minority.” Speaking shortly after the meeting with the Nigerian delegates in Pretoria, South Africa’s Minister of International Relations and Cooperation, Maite Nkoana-Mashabane, also agreed that the two countries should not allow the attacks to dent their relationship. She disclosed that a mechanism has been put in place by both governments that would help curtail the rising wave of xenophobia and afrophobia in her country. The early warning unit The major fall out of the meeting of representatives of the Nigerian and South African Governments aimed at eradicating xenophobia as well as deepening bi-lateral relations was the establishment of the Early Warning Unit

T H I S D AY • MONDAY, MARCH 27, 2017

FEATURES (EWU). The unit consists of representatives of the Ministry of Foreign Affairs, Home Affairs, Immigration, Police and the Nigerian Union in South Africa. The unit is also replicated in Nigeria with members drawn from the counterpart bodies in Nigeria. The EWU after its first meeting, within a few weeks from now, is expected to hold regular quarterly meetings where issues of mutual concerns are discussed and vital information shared in preventing conflicts among the host and their guests. What this means is that before an outbreak of violence could occur, all parties would have been alerted and jointly take decision to quell it. The advantage is that Nigeria to a large extent is involved in taking decision alongside South Africa on crucial issues concerning them. Same thing goes for South African businessmen in Nigeria. Also the EWU mechanism to a large extent will check alleged police complicity in crimes as they are now part of the EWU and whatever action they take is visible to all and reflected in their quarterly meetings. The beauty of the EWU mechanism apart from making vital information available to all parties is that its report forms part of the agenda of the Bi-National Commission meetings at the level of Heads of State. This means that the Nigerian and South African Presidents are up to date with happenings to their citizens in each other’s country and can quickly intervene before things get out of hand. Also, the critical issue of payment of compensation to victims of not just the February attacks but other attacks since the first in 2008 can now be looked into at the EWU. “What we have achieved with this meeting is great. Our proposal was accepted. The Nigerian Union with South African government will now sit together to address issues of common interest. That is unique and you hardly find that anywhere,” Onyeama said. Adding that, “They agreed to that because we engaged them. That is a concrete result which we could not have achieved if we had gone to the media.” Security of lives and property Another benefit of the visit was the assurances of the South African Government that it will do all within its powers to prevent future occurrence so as not to derail the collective visions of the two countries of a united Africa. Onyeama said, “The government and people of South Africa are fully with us, fully supportive of Nigerians, welcoming Nigerians in this country and are taking all the necessary measures to ensure that Nigerians here are able to stay here in peace and security and that their properties and their rights will always be respected.” Similarly, South African Minister of International Relations and Cooperation stating her country’s earlier condemnation of the incident and need for South Africa to heighten law enforcement, reiterated South Africa’s condemnation of all forms of discrimination based on race, religion, sex or creed, including xenophobia or afrophobia. “I further affirmed South Africa’s constitutional democracy which enshrines human rights, bills of rights, democratic values, human dignity, equality and freedoms,” she added. Restoring hope What may be regarded as the hallmark of the visit to South Africa is the solidarity visit by the delegation to victims of the attacks. First, was an automobile workshop at 442 Christofell Street, Rebecca, Pretoria, where 28 vehicles were destroyed. The workshop belongs to one Simon Adeoye and partners. Next was a burnt property at House 225 Pretoria West, belonging to Abayomi Oyetoro who alleged police complicity in the mayhem. Also visited was another auto shop still in Pretoria West known as Nigerian embassy since almost all Nigerian tribes are said to be found in the workshop. While they presented their plight to the Nigerian government and urged the government to urgently come to their rescue, they appreciated the ministers for taking time out to visit them and see things for themselves, noting that it was the very first of any Nigerian senior officials to do so since the inception of xenophobice attacks in 2008. Both Onyeama and Minister of Interior, Lt. General Abdulrahman Bello Dambazau (rtd) advised them to take inventory of all destroyed properties and collate them for onward presentation at the EWU, where the

L-R: Nigeria’s Minister of Foreign Affairs, Mr. Geoffrey Onyeama and South African Minister of International Relations and Cooperation, Maite NkoanaMashabane, at the media briefing room of The Department of International Relations and Cooperation in South Africa

L-R: Nigeria’s Minister of Foreign Affairs, Mr. Geoffrey Onyeama and Minister of Interior, Lt. Gen. Abdulrahman Bello Dambazau (rtd), on site visit to Pretoria West, Pretoria, South Africa where a Nigerian house was burnt during the last Xenophobic attacks

South African Minister of International Relations and Cooperation stating her country’s earlier condemnation of the incident and need for South Africa to heighten law enforcement, reiterated South Africa’s condemnation of all forms of discrimination based on race, religion, sex or creed, including xenophobia or afrophobia

Nigeria’s Minister of Foreign Affairs, Mr. Geoffrey Onyeama, addressing journalists during his visit to South Africa Nigerian government would exploit all legal avenues for their compensation. President of the Nigerian Union in South Africa, Ikechukwu Anyaene, who conducted the ministers round the scenes of destruction, thanked them for their solidarity and assured of their readiness to take advantage of the Early Warning Unit mechanism to prevent the perpetuation of violence in their host country. Speaking later at a broader meeting of the delegation with representatives of the Nigerian community in South Africa, Anyaene said, “Your visit has reassured us that our government has not abandoned us and it has also given us an opportunity to present our challenges, though most of them have already been addressed.”

He however advised that the government take conscious and urgent steps to revamp Nigeria’s economy so that a lot of them can return home. On the alleged criminal activities of some Nigerians, Dambazau advised Nigerians to fish out those smearing the image of the country and report them accordingly. He also advised that the union in conjunction with the Nigerian High Commission in South Africa operate a register of all Nigerians as well as their professions. Dambazau, also disclosed that as part of efforts aimed at addressing the challenges of obtaining Nigerian passports, the ministry was considering increasing the expiration period from five to 10 years. “Instead of having this passport validity for five years, we want to

see the possibility of extending it to 10 years,” he said. Other Nigerians, who commended the visit of the ministers, include former Nigerian international, Peterside Idah, who noted that South Africans would now think twice before doing anything since it is now obvious that Nigerians now have the backings of their home government. “Formerly no one was talking; they were treating us who are foreigners like we didn’t have help coming from anywhere. But now it is obvious, they see that we have the government behind us they will treat us with more respect,” he said. Idah however, urged the Nigerian delegation to pursue the issue of compensation to a logical conclusion, noting that until South Africans begin to pay compensation, the issue of xenophobia would not stop.

IMAGES

T H I S D AY • MONDAY, MARCH 27, 2017

Photo Editor Abiodun Ajala Email abiodun.ajala@thisdaylive.com

L-R; Chairman/CEO, Phillips Consultant, Mr. Foluso Phillips; Deputy Managing Director, NEM lnsurance, Ms. Abisola Giwa-Osagie; President, Chartered lnstitute of Management Accountant (CIMA), Mr. Andrew Miskin and Executive Director, Heirs Holding, Mr. Sam Nwanze at the CIMA Speaks Series, a thought leadership discouse in Lagos....recently

Olubadan of Ibadanland, Oba Saliu Adetunji(left) and Oyo State Governor, Senator Abiola Ajimobi, during the conferment of “The great visionary leader” award on the governor by the Federation of Artisans, in Ibadan... recently

L-R; National President, Nigeria Union of Local Government Employees (NULGE), Comrade Ibrahim Khaleel; National Treasurer, Ambali Akeem; National Trustee, Abimbola Babalola; and the Lagos State Chapter President, Afolabi Ajose, at a press conference on Local Government Autonomy, held by the Nigeria Union of Local Government Employees South West Zone, in Lagos....recently SUNDAY ADIGUN

L-R, Group Corporate Affairs Director, Jagal, Joy Okebalama; British Deputy High Commissioner for Lagos, Laure Beaufils; Group CFO, Jagal, Richard Turner and Senior Project Manager, Nigerdock, Temitope Odulate during the courtesy visit of the British Deputy High Commissioner to Nigerdock’s facility at the Snake Island Integrated Free Zone (SIIFZ) in Lagos...recently.

L-R Vice President Yemi Osibanjo, Abia state Governor Dr. Okezie Ikpeazu, His deputy Sir Ude Okochukwu, Speaker Abia state House of Assembly, Rt. Hon. Chikwendu Kanu, Okey Enelama Minister of Industry, Trade and Investment and Minister of State, Petroleum Resources, Ibe Kachukwu during a Town Hall Meeting to interface with some oil producing communities of Abia state at the International Conference Centre in Umuahia....recently

L-R; Ogun state Commissioner for Health, Dr. Babatunde Ipaye, Group Managing Director, Vitafoam Nigeria Plc., Mr. Taiwo Adeniyi; Commissioner for Commerce and Industry, Otunba Bimbo Ashiru and Director, Group Corporate Services, Vitafoam Nigeria Plc, Mr. Tunji Anjorin during the facility tour of the company at Sango-Ota, Ogun state.... recently.

L-R; Corporate Affairs Director, FrieslandCampina WAMCO Nigeria, Mrs Ore Famurewa; Chief Operating Officer, Consumer Product Europe, Middle East & Africa, Royal FrieslandCampina, The Netherlands; Mr. Roel van Neerbos; Director and Co-founder, Sahel Capital Partners, Dr. Ndidi Okonkwo Nwuneli; and Associate Partner, Sahel Capital Partners & Advisory, Nathalie Ebo, at the signing of Memorandum of Understanding (MoU) on the Nigeria Dairy Development Programme between FrieslandCampina WAMCO Nigeria Plc and Sahel Capital Partners & Advisory in Lagos, recently

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Quick Takes Etisalat Bags EMS Certification

BOOSTING E-COMMERCE

L–R: Managing Director, VDT Communication, Biodun Omoniyi; Director of Strategy, Airtel Nigeria, Tenu Awoonor; Minister of Communications, Barrister Adebayo Shittu; Managing Director, Pinet, Lanre Ajayi and Managing Director, VODACOM Nigeria, Lanre Kolade at the Pinet eInsurance Conference that held in Lagos ...recently

FG May Jettison Airport Concession Chinedu Eze There is an indication that the federal government may abandon the airport concession programme, which was one of the cardinal development goals this administration wished to actualise in the aviation sector. Minister of State, Aviation, Senator Hadi Sirika had on assumption of office declared he would concession the airports, see to the establishment of a national carrier as well as facilitate the establishment of Maintenance, Repair and Overhaul (MRO) facility. Two years down the line, there is no indication that the government is still going ahead with any of those projects. Informed source told THISDAY at the weekend that “from all indications, the concession programme might have been abandoned owing to the stiff

AVIATION resistance by the staff of the Federal Airports Authority of Nigeria (FAAN). Besides, the minister was said to have been under pressure by some people in government not to go ahead with the concession programme. In fact, sources said the opposition the minister is getting from some top government functionaries and the fear that if due process is followed, he may not realise the objective in the next three years all combined to frustrate his move to concession the airports. THISDAY also learnt that from the onset, the minister had envisaged that Tav of Turkey, a company that manages most airports in Turkey would benefit from the concession. In June last year, a group from the company visited Nigeria and toured the airport facility at the

Nnamdi Azikiwe International Airport, Abuja. Sources at the Bureau of Public Enterprises (BPE) and Infrastructural Concession Regulatory Commission (ICRC) said that if government wished to concession airport facilities, it must follow due process and due process demands that there must be open bidding for the airports and the process obviously would last beyond the tenure of this administration. Senior official of the Air Transport Service Senior Staff Association (ATSSSAN), FAAN branch told THISDAY that it would not be possible for government to concession the airports as it earlier planned because of the strategy the Minister adopted to carry out the concession programme. Sirika had planned that the government would concession the most viable airports first,

Libya Ports Prepare to Ship Oil

which include the ones in Lagos, Port Harcourt, Abuja and Kano and in the second phase of the other airports would be concessioned. The unions and the FAAN workers are kicking against the concession plan, saying that the first four airports are the most viable in the country, with Lagos contributing over 60 percent of the revenues, and it is the money they generate that are used to service the other airports. “So if government gives out these four viable airports in concession, where can FAAN get the money to maintain the remaining airports? However, many Nigerians are in support of the concession plan, but some industry observers who spoke to THISDAY insist on due process and transparency. The Chairman of Airline Continued on page 24

Nigeria Tops India’s Africa Export with $9.949bn Eromosele Abiodun Nigeria has continued to outpace other African countries in export to India with $9.949 billion in exports last year. This represents 31.4 per cent of the total export to India from Africa. Head of Chancery at the High Commission of Indian, Lagos, Mr. Jagdeep Kapoor, who stated this at the Indian products and services exhibition held in Lagos, called on Indians to invest in Nigeria adding that relations between both countries has existed for decades. He stated that the recent visit of the Indian Vice President to Nigeria has also given a boost to Nigeria, Indian bilateral relations. According to him, “India as we

ECONOMY know is Nigeria’s largest trading partner. Total trade between the two countries in the financial year 2015-16 was $643.3 Billion. Crude oil is the largest item exported from Nigeria to India, while Vehicles, Pharmaceutical products and Machinery have been the largest items exported from India to Nigeria. India exported about 419 million dollar worth of vehicles including parts and accessories to Nigeria during the financial year 2015-16. Similarly about 393million dollar worth of Pharmaceuticals were exported from India to Nigeria and roughly 267 Million dollar worth of machinery and appliances.

“You will notice that these are the three main products we have tried to highlight in the present exhibition through the individual companies participating today. Telecom, Hospitals, Education, Insurance and Banking occupy the leading positions in the services sector, which again are visible in this Exhibition. This year the plan is to consolidate on what we are already exporting to Nigeria and maybe next year we will diversify into other fields like software, hospitality, construction and entertainment. A large Nigerian delegation led by Minister of Industry, Trade & Investment visited India to attend the 11th CII-EXIM Bank Conclave held in New Delhi on 14-15 March, 2016 as a partner country.” While calling on more Indian

As a proof of its commitment to excellence and global best practices, Nigeria’s most innovative telecommunications company, Etisalat, has been awarded the ISO 14001:2004 EMS international standards certification. The certification makes Etisalat the first telecommunication company in Nigeria to successfully implement the ISO 14001:2004 standard. The certification, which was awarded to Etisalat Nigeria by Bureau Veritas, a global leader in testing, inspection and certification, is conferred on organisations that establish and run an environmental management system of the highest standards. Managing Director, Bureau Veritas Nigeria, Sebastiano Fruciano, while presenting the certificate to the Chief Executive Officer, Etisalat Nigeria, Matthew Willsher, in Lagos, commended the telco for surpassing the set standards for the industry. “We wish to congratulate Etisalat Nigeria on achieving this great feat. We commend you for establishing and operating one of the best environmental management systems in the country, at least the best among telecommunications operators”, Fruciano said. Willsher thanked BureauVeritas for recognising the commitment of Etisalat Nigeria to sustainable development, environmental protection and strict compliance with existing regulations. He said, “The successful incorporation of ISO 14001: 2004 EMS into our business operations is a confirmation of our continuous commitment to excellence and regulatory compliance. This international certification has again affirmed the leadership role we play in the industry. We strive to be the best in everything we do, from product innovation to service delivery and compliance with all relevant regulations and we will continue on this path.”

companies to come to Nigeria to do business, he said: “The High Commission can only pave the way. It is for the companies participating today to consolidate on the opportunities presented through this Exhibition and move forward. Gains made at such exhibitions are not generally tangible in the beginning, but believe me; they definitely translate into showcasing your capabilities and with time and perseverance help in reaching the objective of increased trade and business. I have said this at different fora that it is the Indian exhibitors who are the true Ambassadors. Guests will view India through the products and services you display here Continued on page 24

Libya’s major oil ports of Es Sider and Ras Lanuf are resuming operations and preparing to export crude after a two-week halt in shipments due to military clashes in the holder of Africa’s largest crude reserves, according to Bloomberg. Libya’s total production rose to 646,000 barrels a day from 621,000 barrels on Sunday mostly due to an increase from Waha Oil Co., Jadalla Alaokali, a National Oil Corp. board member, said Monday by phone. Waha Oil feeds into Es Sider, the country’s biggest oil port. Staff are returning to Es Sider and Ras Lanuf, its third-largest, and exports are set to restart in a week to 10 days, Alaokali said Sunday. “Both ports are ready to restart exports,” Alaokali said. Waha Oil, a joint venture between the NOC, Hess Corp., Marathon Oil Corp. and ConocoPhillips, suspended production earlier this month after clashes between armed factions in the politically divided nation forced Es Sider and Ras Lanuf to suspend shipments. Waha Oil is “soon” expected to reach 75,000 to 80,000 barrels a day, the level it was at about two weeks ago before fighting broke out near the ports on March 3, according to Alaokali. It began pumping on Saturday. Forces loyal to Libya’s eastern-based military commander Khalifa Haftar regained control over the two ports on March 14. The fighting, including airstrikes, dealt a blow to international efforts to restore stability in the country. A rival group had seized Es Sider and Ras Lanuf earlier this month.

Shell to Sell Gabon Onshore Assets

Royal Dutch Shell plc has revealed that it has reached an agreement with Assala Energy Holdings Ltd. to sell 100 percent of its Gabon onshore interests for $587 million. As a result of the sale, which is subject to certain conditions and various approvals, around 430 local Shell employees will become part of Assala Energy. Assala will also assume debt of $285 million as part of the transaction and will make additional payments up to a maximum of $150 million, depending on production performance and commodity prices. This transaction consists of all of Shell’s onshore oil and gas operations and related infrastructure in Gabon. This includes five operated fields (Rabi,Toucan/Robin, Gamba/Ivinga, Koula/Damier, and Bende/M’Bassou/Totou), a participation interest in four non-operated fields (Atora, Avocette/M’Boukou, Coucal, and Tsiengui West), the associated infrastructure of the onshore pipeline system from Rabi to Gamba, and the Gamba Southern export terminal.

“The problem that we have currently is inadequacy of power, insufficiency of power. You cannot do anything in the economy, you cannot industrialise, you can’t diversify” Trade Adviser to the Minister of Industry, Trade and Investment,

Chiedu Osakwe

T H I S D AY • MONDAY, MARCH 27, 2017

BUSINESSWORLD FG MAY JETTISON AIRPORT CONCESSION

Operators of Nigeria (AON) Captain Nogie Meggison, said he was in full support of the concession programme, adding; “only if it will be done sincerely and transparently; because that is the solution to the infrastructural decay of the airports.” Also the CEO of Medview Airline, Alhaji Muneer Bankole told THISDAY that he supports airport concession because it will give birth to new airports in the country. Industry consultant and CEO of Belujane Consult, Chris Aligbe told THISDAY that concession would solve the problem of airport decay and enhance the aviation industry to generate more revenue and contribute significantly to the country’s GDP. However, a source close to the Transport Ministry denied that government has jettisoned the concession plan; insisting that the sequences of the plan is being executed. The ATSSSAN official confirmed to THISDAY that Sirika has set up a committee, which “is looking at the airports individually with regard to their viability and with a plan to sidestep the normal concession process.” NIGERIA TOPS INDIA’S AFRICA EXPORT WITH $9.949BN

today and form an opinion about India based on what you present. My humble request is to keep the Indian flag flying high and make us all Indians proud.” Minister of Power, Works and Housing, Babatunde Fashola had while speaking at the West Africa-Indian Trade and Economic Forum recently revealed the possibility of increase market access opportunities between India and countries within the sub-region, in terms of improved terms of trade, would be imperative to increase production efficiency and competitiveness through infrastructural development. He said it was important and necessary to address market access constraints and Non- Tariff Barriers (NTB) that hinder the free movement of goods and services across the region’s frontiers, as particular attention should be paid to the inherent supply side constraints in the West African Community in the course of the business forum.

Group Business Editor

Chika Amanze-Nwachuku AgriBusiness/Industry Editor

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Comms/e-Business Editor

Emma Okonji

Capital Market Editor

Goddy Egene

Senior Correspondent

Raheem Akingbolu (Advertising) Correspondents

Chinedu Eze (Aviation) Linda Eroke (Labour) Eromosele Abiodun (Maritime) Ejiofor Alike (Energy) James Emejo (Nation’s Capital) Obinna Chima (Money Mkt) Reporters

Nume Ekeghe (Money Market) Nosa Alekhuogie (AgriBusiness)

NEWS

Annuity Fund Controversy: Life Insurers to Open Accounts with PFCs Ebere Nwoji The face off between life insurance underwriters and Pension Fund Administrators over control of retirees’ annuity fund has been laid to rest following a directive that Life Insurance companies currently providing life annuity for retirees under the Contributory Pension Scheme (CPS) should open Operational Accounts with Pension Fund Custodians (PFCs) of their choice. This was contained in a statement jointly issued by both regulatory bodies of insurance sector, the National Insurance Commission ( NAICOM) and its Pension sector counterpart, the National Pension Commission (PenCom). The two bodies, said they are currently reviewing the regulation on Retiree Life Annuity, which will be jointly released to the public in compliance with the PRA 2014 within 3 months said operators should obey the directive pending the time the guideline will be ready for public consumption. The two bodies, which were recently summoned to a round table peace talk on the issue by the Minister of Finance Kemi Adeosun, had after the meeting, promised to come out with joint statement that will settle the annuity fund control controversy. In the statement, the two regulators, also stated that all new annuity purchased or being processed should be domiciled in the dedicated account with PFCs.

Also, it was resolved that treatment of all existing retirees’ life annuity funds and assets would be dealt with upon issuance of the Joint Regulations referred to above. They also agreed that NAICOM, should ensure that Life Insurance companies, comply with the above requirements and that processing and approvals of new retiree life annuity requests should continue forthwith while Pension Fund Administrators (PFAs), should resume the

months surrender N145.05 billion annuity assets in their custody to Pension Fund Custodians. But the law establishing the Contributory Pension Scheme (CPS) gives retirees the option to choose between buying an annuity with part of their pension savings from a life insurance company after retirement or take programmed withdrawal of the pension savings with a PFA. While annuity fund is in custody of life insurance underwriters, programme

withdrawal asset is with PFAs, who transfer the same to Pension Fund Custodians( PFCs) for investments. Since then there has been Cold War between operators of the two sectors as insurance underwriters vowed to fight the development with the last drop of their blood, while pension fund Administrators and custodians had insisted that the directive was in accordance with the law and must be obeyed.

YOUR HIGHNESS SIR

L-R: Registrar, Chartered Institute of Bankers of Nigeria (CIBN), Seye Awojobi; Managing Director/CEO Keystone Bank Limited, Philip Ikeazor; Obi of Onitsha, Igwe Nnanyelugo Alfred Nnaemeka Achebe the 21st and, FCIB, President/Chairman of Council CIBN, Prof. Segun Ajibola,Ph.D...recently

Obasanjo Calls for More Investment in Tourism Sector A former Nigerian President, Chief Olusegun Obasanjo has said that Nigeria has latent opportunities in the tourism sector, which if explored would generate revenues that could rival, if not exceed the income from oil and gas. Obasanjo made the remark recently in Lagos while addressing the 41st session of the non elective annual general meeting (AGM) of the National Association of Nigeria Travel Agencies (NANTA) as special guest of honour. Speaking on the AGM’s theme: “Tourism in a Recessed Economy,’ the former president described tourism as a catalyst for growing any economy in contemporary times and said if properly harnessed it could take the country out of its present economic recession. Obasanjo observed that for a country as blessed as Nigeria, its nationals and government have no reason to look elsewhere for their source of economic growth. “We need to pay attention to tourism. People are still travelling everywhere and that shows that with tourism there will be nothing like recession in Nigeria. We should even pay more attention to domestic tourism. A lot of Nigerians don’t travel much within the country and it is something we need

processing of new annuity requests for retirees and forward same to PenCom for necessary approval without delay. PenCom was also charged with the responsibility of ensuring that PFAs, transfer all approved premium for retiree Life Annuity to the Operational Accounts opened by the Life Insurance Companies with PFCs. The PenCom, had November last year issued a directive to life insurance underwriters directing them to within three

to embrace. Domestic tourism can generate a lot of revenue for the country,” the former President said. Obasanjo whose speech was read on his behalf by the President of NANTA, Mr. Bankole Bernard said he was working hard to turn Abeokuta, the Ogun State capital, into a major tourist site. In a keynote speech, a former Director General of the Nigerian Civil Aviation Authority (NCAA), Dr. Harold Demureen, said with tourism Nigeria could end economic recession and strengthen the nation’s currency. He therefore charged the travel agents to look inwards and focus their attention marketing the many tourists’ attractions in the country that need to be explored by Nigerians and foreigners alike. The CEO of Nigeria’s major domestic carrier, Medview Airline PLC, Alhaji Muneer Bankole who shared his experience and how his foray in tourism and aviation ignited his investment impulse, remarked that recession offers the best opportunity for the country and people to diversify their source of revenue and he urged travel agents to be more creative and innovative as there are a lot of business opportunities in the aviation and tourism markets to explore.

Minister Lists Gains of ICT Tools to Insurance Market Emma Okonji The Minister of Communications, Adebayo Shittu has highlighted the importance of information and communications technology (ICT) tools in driving the insurance market online platform, recently introduced by Pinet Informatics, a pioneer Internet Service Provider (ISP). The minister listed the importance of ICT tools, while launching the insurance market online platform, known as insurancemarket.ng, at the eInsurance Conference organised by Pinet Infirmatics in Lagos at the weekend. He called on all stakeholders in the insurance industry to leverage on ICT to grow the potentials of the Nigerian insurance industry, which he said has not been fully harnessed. The minister, while delivering a keynote address titled, ‘Driving Insurance Penetration With Information and Communications Technology, noted that the nation’s insurance sector, which provides support to the financial institutions has not been fully explored, saying ”the Insurance sector despite being a major driver of business growth that provides a critical support system to the financial market, has not fared well given the current size of the Nigerian economy and population”.

“Information available to me indicates that there are less than 1.5 million insurance policyholders, representing a paltry 0.9 per of a population of well over 170 million citizens. Similarly, the gross premium of the sector is said to be less than N500 billion, implying that the sector contributes less than 1per cent to national GDP,” Shittu said, while advising the stakeholders to fully embrace technology to further deepen insurance penetration in the country. In his welcome address at the launch of insurancemarket. ng, the Chief Executive Officer of Pinet Informatics, Mr. Lanre Ajayi said the need to launch the insurance online marketplace, was to bridge the gap between insurance and technology. According to him, the idea to hold an eInsurance conference came when it was realised that the insurance industry in Nigeria has not optimally benefitted from the huge opportunities offered by ICT. Ajayi said the Insurance Market would offer insurance companies the opportunities to setup micro websites at the market place where everyone could buy from any of the vendors. “The online platform promises to transform the way insurance business is transacted in Nigeria,” Ajayi said.

Panelists at the conference highlighted the challenges in the insurance industry and proffered solutions on how to address them, using available technology tools. The Managing Director at Rack Centre, Mr. Tunde Coker, who delivered one of the keynote addresses at the eInsurance conference, said some disruptive technologies must be put in place to revolutionise the insurance industry, using technologies, which he said, were readily available. According to him, global insurance heat maps, competitive market growth, risk of opportunities, among other factors, were pointers to the fact that Nigeria is still far behind countries like South Africa, Kenya and Zambia, in eInsurance business. He however said there were enormous opportunities for growth in the sector, which must be harnessed, using technology. The eInsurance conference concluded that there was need for stronger alliance between the insurance practitioners and ICT industry, in order to deepen insurance penetration. The ICT communities were also encouraged to come up with solutions that would help in deepening the penetration of insurance in Nigeria. The forum advised insurance industry to innovate and leverage on technology to drive the industry.

billion in 914 deals, contributing 43.22% and 14.04% to the total equity turnover volume and value respectively. T H I S D AY • MONDAY, MARCHEquity 27, 2017Turnover - Last 5 days

BUSINESSWORLD Date 20-Mar-17 21-Mar-17 22-Mar-17 23-Mar-17 24-Mar-17

Deals 2,587 2,675 2,306 2,861 2,613

Turnover Volume 495,238,034 153,720,519 198,838,062 115,110,859 346,026,965

25 Turnover Value (N) 2,548,738,994.22 1,500,877,048.12 2,527,501,296.73 1,415,693,430.46 2,330,411,203.09

Traded Stocks 92 91 88 90 92

Advanced Stocks 13 13 15 20 7

Declined Stocks 22 24 22 14 21

MARKET REPORT

Unchanged Stocks 57 54 51 56 64

Investors Stake N10.3bn on Shares amidst Bearish Trading Goddy Egene and Nosa Alekhuogie The nation’s equities market was upbeat in terms of value of trading as investors staked N10.323 billion on 1.309 billion shares in 13,042 deals, showing an increase of 29.3 per cent compared with N7.980 billion exchanged in 13,441 deals the previous week. However, despite the rise in value of trading, the market returned to the negative territory on profit taking. Contrary to the positive performance recorded the preceding week, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) depreciated by 0.77 per cent to close at 25,454.93. A look at the market performance showed that the NSE ASI recorded its first loss in five days on Tuesday, after the shares of bellwethers in banking, consumer goods, and oil & gas sectors witnessed significant sale pressure. The market declined further on Wednesday and Friday, culminating in decline of 0.77 per cent for the week. “We attribute this week’s loss to profit-taking, given that there was no major change in the seemingly less-apprehensive macro environment For Further Inquiries Contact: Market Operations Department which we have been highlighting in recent weeks,” analysts at Cordros Capital Limited said.

WEEKLY REPORT

Daily Market performance The market had sustained its positive performance when trading resumed on Monday despite activities of profit takers. Although the market closed with more price losers, the NSE ASI appreciated by 0.07 per cent to close at 25,671.55. A total of 22 stocks depreciated compared with 13 price losers. Mobil Oil Nigeria Plc and NAHCO Plc led the price gainers with 5.0 per cent apiece to close at N294 and N2.10 respectively. Fidson Healthcare Plc trailed with 4.4 per cent, while Guaranty Trust Bank Plc appreciated by 3.2 per cent. Nestle Nigeria Plc and Dangote Flour Mills Plc chalked up 2.7 per cent and 2.5 per cent in that order. Other top price gainers include: N.E.M Insurance Plc (2.4 percent); Vitafoam Nigeria Plc (2.0 per cent); Transcorp Plc (1.4 per cent); and Sterling Bank Plc (1.3 per cent). Conversely, United Capital Plc led the price losers’ chart with 5.0 per cent, trailed by Guinness Nigeria Plc and Custodian and Allied Plc, which depreciated by 4.9 per cent respectively. Neimeth International Pharmaceuticals Plc fell by 4.9 per cent, just as Julius Berger Nigeria Plc, CWG Plc and African Prudential Registrars Plc, FCMB Group shed 4.8 per cent in each. Other top price losers were: UAC of Nigeria Plc (3.5 per cent); Fidelity Bank Plc(3.4 per cent); Dangote Sugar Refinery Plc (3.1 per cent);Portland Paints, UACN Property Development Company Plc and Cadbury Nigeria Plc (2.6 per cent each). Sectoral performance analysis showed that all the sectors advanced apart from NSE Industrial Goods Index, falling by 0.3 per cent. The NSE Oil & Gas Index led the gainers on the back of appreciation in Mobil Oil (+5.0 per cent) and Oando Plc(+1.0 per cent). The NSE Banking Index trailed with 0.9 per cent gain following gains by GTBank (+3.2 per cent) and ETI (+1.0 per cent) offset the impact of selloffs in Zenith Bank (-0.9 per cent), Access Bank (-2.2 per cent) and United Bank for Africa (-0.6 per cent). In the same vein, the NSE Consumer Goods Index added 0.4 per cent following gains by Nestle Nigeria (+2.7

suffered by bellwether stocks made the Nigerian Stock Exchange (NSE) All-Share Index (ASI) to remain in the negative territory. The NSE ASI shed 0.05 per cent to close lower at 25,514.03. Seplat Petroleum Development Company Plc led the price losers with 9.7 per cent trailed by Guinness Nigeria Plc, which went down by 4.2 per cent. African Prudential Registrars Plc and Access Bank Plc declined by 3.7 per cent and 3.5 per cent per cent in that order. NASCON Allied Industries Plc closed 2.9 per cent lower just as Diamond Bank Plc shed 2.1 per cent. Forte Oil Plc and FCMB Group Plc dipped by 1.7 per cent and 1.6 per cent respectively, while Zenith Bank Plc went down by 1.4 per cent. Zenith Bank is losing value a day after the shareholders approved its final dividend of N55.573 billion final dividend for the year ended December 31, 2016. On the positive side, Lafarge Africa Plc maintained the number spot on the gainers’ chart, rising by 8.4 per cent to close at N41.00 per share. The stock had similarly led the price gainers the previous day as investors reacted Page 1 105 kobo dividend the cement to the manufacturing firm recommended for 2016 year.

Market turnover A breakdown of the market turnover of 1.309 billion shares, the Financial Services sector led the activity chart with 1.139 billion shares valued at N6.028 billion traded in 7,518 deals, thus contributing 87.01 per cent and 58.39 per cent to the total equity turnover volume and value respectively. The Consumer Goods sector followed with 71.209 million shares worth N2.306 billion in 2,261 deals. The third place was occupied by Services Industry with a turnover of 29.390 million shares per cent) and Dangote Flour Mills Plc cent from N2.53 billion recorded the million), Access Bank (14.80 million) worth N24.594 million in 258 deals. Also traded during the week were a previous day, while the total volume of and UBA (9.48 million). (+2.5%). The performance of the stock market total of 11,585 units of Exchange Traded The bulls could not withstand the stocks traded was 115.11 million shares pressure from OF the PRICE bears onCHANGES Tuesday in 2,861 deals. The three most sectors remained negative on Thursday as Products (ETPs) valued at N144,678.50 SUMMARY as the NSE ASI declined by 0.44 per were: Financial Services (88.25 million), profit taking persisted. However, the executed in five deals compared with a total of 20 units valued at N90.90 was marginal sentiments Conglomerates (9.06 the million) and,lower Oil decline cent close at 25,558.57. Sixteen (16) equities appreciated in price during week, than thirty-one (31)asequities of the transacted the previous week in were mixed. Although price gainers and Gas (5.58 million) while the three Selloff in Tier-1 banks halted a previous week. Thirty-five (35) equities depreciated in price, higher than twenty-two (22) equities of five-day gaining streak. The negative most active stocks were: GTBank (20.53 outnumbered price losers, losses two deals. the previous week, while one hundred and twenty-six (126) equities remained unchanged higher Similarly, a total of 18,144 units of performance largely resulted from than one and (-2.5 twenty-four (124) equities recorded in the preceding week. Federal Government Bonds valued selloffs in hundred Zenith Bank per TOP TEN BROKERS(BY VALUE) AS AT LAST FRIDAY at N17.555 million were traded last cent), GTBank (-1.3 per cent), Ecobank Top 10 Price Gainers week in 12 deals, compared with a BROKER VALUE % VALUE Transnational Incorporated (-4.1 per total of 8,390 units valued at N8.203 cent) and UBA (-2.9 per cent). RENCAP SECURITIES (NIG) LIMITED 3,195,224,746.37 21.09 million transacted the previous week Sector performance largely mirrored STANBIC IBTC STOCKBROKERS LIMITED 2,073,171,501.90 13.69 Company Open Close Gain (N) % Change in four deals. the benchmark index as all sector A.R.M SECURITIES LIMITED - BRD 36.00 11.12 LAFARGE AFRICA PLC.save for the 41.01 1,684,870,514.33 5.01 13.92 indices closed in the red EFCPLIMITED 7.03 FIDSON HEALTHCARE PLC which 0.89 1.01 1,064,972,855.58 0.12 13.48 NSE Industrial Goods Index, Price Gainers and Losers MERISTEM STOCKBROKERS LIMITED 938,875,570.67 6.20 appreciated by 0.05 per cent bolstered LIVESTOCK FEEDS PLC. 0.64 0.71 0.07 10.94 Meanwhile, 16 equities appreciated by Cement Company of Northern FBN SECURITIES LIMITED 800,104,301.68 5.28 MOBIL OIL 280.00 297.25 17.25 6.16 in price last week, lower than the 31 Nigeria (+4.4NIG perPLC. cent). The NSE CSL STOCKBROKERS LIMITED 39.95 3.31 JULIUS Index BERGER PLC.cent on 41.95 501,223,887.50 2.00 5.01 equities of the previous week, while Banking fellNIG. 2.0 per NIGERIAN INTERNATIONAL SECURITIES LTD 447,000,592.63 2.95 35 equities depreciated in price, higher the back losses recorded by Zenith, CEMENT CO. OF NORTH.NIG. PLC 4.50 4.70 0.20 4.44 than 22 equities of the preceding week. GTBank, ETI, UBA and Access Bank. CARDINALSTONESECURITIESLIMITED 369,097,758.04 2.44 TRANSNATIONAL NIGERIA PLC 0.71 0.74 0.03 4.23 Lafarge Africa Plc led the price gainers In the same vein, theCORPORATION NSE Insurance OF NEWDEVCO FINANCE SERVICE CO. LIMITED 302,947,942.32 2.00 with 13.9 per cent followed closely Index shed 0.3 per cent following a COMPANY PLC NIGERIAN AVIATION HANDLING 2.00 2.06 11,377,489,671.02 0.06 3.00 75.11 by Fidson Healthcare Plc with 13.4 decline in the shares of NEM (-3.6 OANDO PLC 5.05 5.19 0.14 2.77 per cent. Livestock Feeds Plc chalked per cent) and AIICO (-3.4 per cent) NESTLE NIGERIA PLC. 730.01 749.00 18.99 2.60 up 10.9 per cent, just as Mobil Oil just as the NSE Oil & Gas Index TOP TEN BROKERS (BY VOLUME) AS LAST FRIDAY Nigeria Plc and Julius Berger Nigeria dipped by 0.04 per cent. Plc appreciated by 6.1 per cent and The NSE Consumer Goods Index %VOLBROKER VOLUME 5.0 per cent respectively. closed 0.1 per cent lower on the back UME Other top price gainers included: of depreciation recorded by Cadbury MERISTEM STOCKBROKERS LIMITED 280,589,128 13.64 For Further Inquiries Contact: Market Operations Department Page Cement 3 Company of Northern Nigeria Nigeria Plc (5.0 per cent). A.R.M SECURITIES LIMITED - BRD 280,143,000 13.62 Plc (4.4 per cent); Transcorp Plc (4.2 The market extended its downward FBN SECURITIES LIMITED 215,283,703 10.47 per cent); Nigerian Aviation Handling trend for the second day on Wednesday Company Plc (3.0 per cent); Oando as sell pressure on bellwethers dragged STANBIC IBTC STOCKBROKERS LIMITED 94,544,107 4.60 Plc (2.7 per cent) and Nestle Nigeria the NSE ASI by 0.17 per cent to close CARDINALSTONE SECURITIES LIMITED 92,258,858 4.49 Plc (2.6 per cent). at 25, 514.09 per cent. GTBank (-1.1 NIGERIAN INTERNATIONAL SECURITIES LTD 90,365,196 4.39 Conversely, Guinness Nigeria Plc and per cent), Stanbic IBTC (-4.3 per cent) CORDROS SECURITIES LIMITED - BRD 89,854,750 4.37 Seplat led the price losers, shedding and Nestle (-1.3 per cent ) were the 9.7 per cent apiece. Diamond Bank Plc CHAPEL HILL DENHAM SECURITIES LTD - BRD 62,630,147 3.05 major decliners for the day as market trailed with 8.5 per cent just as UACN capitalisation went down by N15.4 NEWDEVCO FINANCE SERVICE CO. LIMITED 58,489,026 2.84 Property Development Company Plc billion to close at N8.8 trillion. MORGAN CAPITAL SECURITIES LIMITED 54,922,848 2.67 and African Prudential Registrars Plc The total value of stocks traded 1,319,080,763 64.14 went down by 8.4 per cent each. was N1.42 billion, down by 43.99 per

T H I S D AY • MONDAY, MARCH 27, 2017

BUSINESSWORLD

INSIDE BROAD STREET (and potentially non-recurring) FX inflows. This, Afrinvest questions the ability of the CBN “to continue to intervene in the currency market at current run rate if the interbank market peg is not given up to allow for autonomous investment inflows.” “Inflows from swaps and an unidentified item tagged “other official receipts” supported flows between November 2016 and January 2017, while oil receipts inflow through the central bank declined. “Our discussion with players in the real sector revealed that though access to FX has improved for corporate end-users with tenors of forward contracts now shorter, there is still considerable time-lag between demanding for FX and obtaining supply. “The CBN also remains the dominant player, indicating that the improvement in the balance of payments and aggressive CBN interventions are yet to fully transmit into business and investment confidence. The renewed pressure on oil prices despite subsisting OPEC oil production cut agreement is an important anchor for spot exchange rate expectation, implying the call for giving up on current interbank FX rate peg will not wane in the shorter term. “While we think the conditions are right for opening up the interbank market, considering the renewed interest to close long dollar positions by both individuals and corporates, the most likely outcome would be another adjustment in the interbank peg to converge with invisibles imports/International Monetary Transfer Operators’ exchange rate (N375.00/$1),” Afrinvest added.

A view of Lagos financial district

AKINWUNMI IBRAHIM

Is the Party over for Currency Speculators? Obinna Chima Alhaji Gambo, a black market currency dealer appeared apprehensive last week following the losses he incurred in the market. Gambo, who has been in the trade for more than 15 years, never expected that the naira exchange rate would appreciate rapidly as it did in the past few days as he continued to count his losses. According to him, some of the dollars he bought between N500-N450 per dollar, he was forced to sell between N420- N400 per dollar because of the panic in the market. Clearly, Gambo had benefited immensely from the speculative attack on the naira, which weakened its exchange rate. The era of speculative attack on the naira appears to be over as the latest actions of the Central Bank of Nigeria (CBN) have engineered a dramatic appreciation of the naira exchange rate against the dollar. The FX measures clearly caught currency speculators and traffickers off guard. Several parallel market operators and speculators that had stockpiled the greenback were forced to offload the currency following the flooding of the market by the central bank. But as they bemoaned their losses, currency analysts cautioned that they were likely to incur more losses, as the CBN, in keeping with its determination to increase liquidity in has so far flooded the FX market with an estimated US$2 billion in cash and currency forwards since late February. This amount does not include its daily intervention of $1.5 million on the interbank market. Owing to this, the naira exchange rate, which depreciated by 76 per cent on the parallel market in 2016 due to scarcity of the greenback, has appreciated by 27 per cent in the last one month, since the new policy was announced. The naira moved from as low as N525 to the dollar a month ago to

MARKET INDICATOR

CBN Governor, Godwin Emefiele between N380 and N385 to the dollar last week, before weakening marginally to between N390-N395 to the dollar at the weekend. The CBN had, in explaining the objective of its actions, among other things, said it had resolved to ease the burden of travellers and ensure that transactions are settled at much more competitive exchange rates and had directed all banks to open FX retail outlets at major airports as soon as logistics permit. Furthermore, as part of efforts to further increase the availability of FX to all end-users, the CBN said it decided to significantly reduce the tenor of its forward sales from the current maximum cycle of 180 days, to no more than 60 days from the date of transaction. CBN Governor, Mr. Godwin Emefiele recently

insisted that the central bank would make sure that FX speculators, whether foreign or local, lose money in the game. Emefiele also expressed optimism about the convergence of FX rates on the official and parallel markets, stating that the gains made by the naira against the greenback in the last five weeks were not a fluke. Emefiele said he was happy that the central bank’s intervention was yielding positive results. “I am happy, indeed very gratified, that the interventions have been positive, we have seen the rates now converging and we are strongly optimistic that the rates will converge further. “In terms of sustainability, I think it’s important for us to say that the foreign reserves at this time are still trending upwards to almost $31 billion as I speak with you. “And the fact that we have done this consistently for close to five weeks, should tell everybody or those who doubt the strength of the central bank to sustain this policy. “For me, they are taking a risk and they will lose in their bid to place a wrong bet. The direction is that there is a determination to see to the convergence of those rates and with what we have seen so far, we are very optimistic that those rates will converge, and all the elements in the foreign exchange policy will no doubt be implemented,” he said. But while some analysts have continued to commend the central bank over its renewed vigour in the currency war, they also hold the opinion that the country requires broader reforms to help reset the economy. For instance, analysts Afrinvest Africa Limited argued that there are still unaddressed cyclical and structural vulnerabilities which constitute headwind to economic performance in the short to medium term. According to them, these vulnerabilities include the CBN’s FX cash flow data for January 2017 that suggested that the growth in external reserves was being partly driven by non-core

Also, analysts at CSL Stockbrokers Limited also argued that: “the CBN is providing a short-term solution to a structural problem.” “Nigeria’s sole dependence on crude oil for export proceeds means that the debate on whether or not to float/devalue, will likely be revisited by the CBN if reserves once again fall to alarming levels. We also believe foreign portfolio investments that could ease the downward pressure on FX reserves, will remain on the sidelines, given the perceived loss of confidence in the CBN’s policies,” they added. But an analyst at Ecobank Nigeria, Mr. Kunle Ezun, who welcomed the development in the FX market, pointed out that achieving a convergence between the official (interbank rate) and parallel market rate would be a very difficult task. “What the CBN has done in the last one month has really helped the parallel market rate. But we need to see improved liquidity on the interbank market,” Ezun added. On its part, the International Monetary Fund (IMF) is also expected to call for urgent reforms in Nigeria, according to a report seen by Reuters. “Much more needs to be done,” the IMF said in the document, written after a final meeting between its representatives and top officials in the capital Abuja before the fund issues its verdict on Nigeria’s economy, expected on March 29. “Further actions are urgently needed,” it said. The report - from the fund’s acting secretary and addressed to members of its executive board - is set to form part of the IMF’s verdict, although Nigeria can request alterations. The World Bank has been in talks with Nigeria for a loan of at least $1 billion for more than a year and the African Development Bank (AfDB) has $400 million on offer, but discussions have stalled over economic reforms. Nigeria is seeking the funding for infrastructure investment and to help plug an expected record deficit in this year’s budget as it boosts spending to try to end a recession. Continuing, the IMF report said if Nigeria did not remove foreign exchange restrictions and unify the exchange rates, it risked “further deterioration in (forex) reserves” and “a disorderly exchange rate depreciation”. The report said Nigeria should also tackle its over-dependence on oil, low government revenues, a large infrastructure deficit, a rising debt service and double-digit inflation. Delays in adopting these policies increase vulnerabilities and risk reforms being politicised ahead of the 2019 elections, the IMF said. Nigeria’s woes go beyond its economy, said the report, piling additional challenges onto the government. The north-east is in the throes of a humanitarian crisis caused by the Boko Haram Islamist insurgency, which is threatening millions with starvation.

T H I S D AY • MONDAY, MARCH 27, 2017

BUSINESSWORLD

APPOINTMENT / AWARDS

INTELS Bags NIPR Excellence Award Nigeria’s oil and gas logistics giant, INTELS Nigeria Limited has won the Nigerian Institute of Public Relations (NIPR), Rivers State Branch “Award for Excellence in Public Relations and Community Development”. The award was conferred on INTELS at a ceremony organised to mark NIPR Rivers State branch’s 2017 Annual Conference at the Amphitheatre of the Rivers State University of Science and Technology, NkpoluOroworukwo, Port Harcourt. The award was presented to INTELS on behalf of the institute by Chief Ferdinand Alabraba, who was Chairman of the occasion. Head, Government and Public Relations, Mr. David Alagoa, who received the award on behalf of the company, said INTELS Nigeria Limited would continue to support community empowerment and development

programmes. He said the company’s integrated participatory approach (IPA) identifies integration, participation, communication, interaction, and dialogue as important elements of its community relations development plan. According to Alagoa, INTELS prides itself on delivering topnotch logistics services to the oil and gas industry and on maintaining mutually beneficial relationships with its host communities. He said this approach has earned the company several commendations and awards from reputable Nigerian and international organisations. Expatiating on this while speaking with journalists on the sidelines of the NIPR conference, Alagoa said INTELS has received no fewer than 200 letters of commendation and awards

from lawmakers, government agencies, traditional rulers, community leaders, professional bodies and corporate organisations including international oil companies. Alagoa said INTELS has been actively involved in supporting various sporting activities, building roads, providing medical services, drainages, street lights, ultra-modern markets, modern classroom blocks, free health services; ICT centres; town halls and community centres; skill acquisition centres; public toilets; civic centres; and renovated the palaces of traditional rulers in the Niger Delta region. “We also empower indigenes of the communities through initiatives like our Women Empowerment Programme Scheme Synergy (WEPSS),” he said. INTELS is leading the Nigerian Oil and Gas logistics support

industry as a core logistics service provider through its skill, efficiency, integrity and quality of service. The organisation has 30 years of experience in ports management and terminal logistics support services in shore bases across Nigeria, applying the “One Stop Shop” solution under its Oil Service Centre Concept. In 2006, INTELS was awarded concession by the Federal Government to operate The Federal Ocean Terminal (Terminal A) and the Federal Lighter Terminal (Terminal B), both at the Onne Port Complex, which houses the Onne Oil and Gas Free Zone. It also operates terminals in Warri, Calabar and Apapa ports. Several dignitaries including the Vice Chancellor, Rivers State University of Science and Technology, Professor Blessing Didia, attended the NIPR event.

PARTNERING FOR PROGRESS

Managing Director of Nigerian Ports Authority (NPA), Hadiza Bala Usman (left) and the Corp Marshal of Federal Road Safety Corps (FRSC), Dr. Boboye Oyeyemi exchanging copies of the MoU between both organisations at the corporate headquarters of NPA in Marina, Lagos…recently

RIMA’s Best State Govt Website of the Year Emerges Enugu State’s website (www. enugustate.gov.ng) was at the weekend, awarded with the Best State Government Website in Nigeria Award by Records and Information Management Awareness (RIMA) Foundation. The State received the award at the Institute of Information Management’s (IIM-Africa) annual lecture and induction ceremony held at the University of Lagos recently, after garnering a total of 85 points to beat closest- Kaduna and Nassarawa States. Pioneered in 2005 by the Records and Information Management Awareness (RIMA) Foundation, the RIMA Awards has been recognised for excellence in the records and information management industry in Africa. While presenting the certificate to the state, President and Chairman Board of Directors/ Governing Council at IIM –

Africa, Dr. Oyedokun Oyewole, said that upon assessment, Enugu has leveraged the website to create a friendly, government-citizens interactive forum and has impacted the way government address societal challenges. He said that out of the thirty-six states in the country, two states lacked online presence in terms of functional website; whereas many others lacked contents and unresponsive in their approach. He said Enugu State has distinguished itself through a responsive, flexible and easy to navigate website with ‘live chat’ platform for citizens to engage the Government/Governor directly. According to Oyewole, “Content was primarily the yardstick the Award Committee used to assess the State. Unfortunately, two States don’t even have website, whereas some either for non-renewal of

the domain name registration or hosting subscription or they have ran out ideas on content generation, such websites are dormant or shutdown. But in the top State three Enugu, Kaduna and Nassarawa you could feel a sense of responsibility on the way those States interact with the citizens.” The Award recognises organisations and individuals for demonstrating vision and business skills through implementation of highly successful projects that utilize leadingedge business technologies, and exemplary professional practice in the field. Receiving the award on behalf of the State Government, Hon. Emeka Ani, of the Office of the Special Adviser to the Governor on Information Communication Technology (ICT), said “It is an amazing development and we are glad about it. We have one of the best responsive websites

among Government cadre in the country. He said that the responses from interaction with the Citizens of the state, have assisted in policy decisions and addressing of societal challenges in the state. “As we harness views, complaints or recommendations, we transmit same to relevant agencies for prompt actions. We have been receiving a lot of comments from the citizens. According to him, ongoing and completed projects are showcased as proof that nothing is hidden from the people. Apart from the visitors being able to subscribe to the newsletter, we have also created opportunity for them to have a snippet into the investment opportunities in the state. Therefore, we make bold to say that the website is all encompassing, and RIMA award has attested to these facts, Ani said.

Airtel Makes New Appointments, Reorganises Operations Airtel Nigeria has announced the promotion of Muhammad Bashir Ibrahim and Oladapo Dosunmu as Regional Operations Directors for North Region and South Region respectively. In their new roles, Ibrahim and Dosunmu will ensure growth indices are sustained across all channels and will be responsible for implementing the right strategy to grow Airtel’s revenue market share within their regions. They will also leverage on their distribution expertise to drive deeper penetration in their assigned regions while ensuring sustainable growth through enhanced territory development. The company also announced the reorganization of its commercial operations to accelerate growth, drive efficiency and reclaim market leadership in the highly competitive telecoms sector. Under the new commercial structure announced by the telco, Veronica Onoja, former Regional Operations Director (South Region) will take on a new role as Vice President, Airtel Money Operations while Wole Abu, former Regional Operations Director (North Region) will assume the position of Vice President, Indirect Sales, and tasked with managing Airtel’s strategic partners and also take full ownership of Airtel’s KYC operations to ensure compliance withstatutory regulations. Olusina Adegoke, erstwhile Regional Operations Director (West Region) has been reassigned as Regional Operations Director (Lagos Region) while Femi Oshinlaja, former Vice President, Airtel Money Operations, has been appointed Regional Operations Director (West Region). Oladokun Oye, former Regional Operations Director (Lagos Region) has been drafted to the Headquarters to head Airtel’s Direct Sales Directorate and tasked with not only driving and improving customer experience and profitability of this business segment but also

grow and develop new direct sales channels. The Chief Executive Officer and Managing Director, Airtel Nigeria, Segun Ogunsanya, extended warm felicitations to all for the new opportunity, noting that the reorganisation, which is in line with Airtel’s organisational commitment to continually provide opportunities for its internal talents would also help the company consolidate on its gains in the market. Prior to his appointment as Regional Operations Director (North Region), Muhammad Bashir Ibrahim was Zonal Business Manager (North Midland) where he was instrumental to managing Airtel’s presence in the war-torn regions of the North East. Ibrahim is a 1997 Mechanical/Production Engineering graduate of Abubakar Tafawa Balewa University and has close to two decade experience across multiple sectors and geographies. Previously Head, Indirect Sales at Airtel Nigeria, Oladapo Dosumu, a 1999 Lagos State University MBA degree holder, managed the transition of Airtel’s Channel Partners based distribution model to a more robust model having multiple routes to market. Before joining Airtel, Dosunmu was Head, Distribution, Glozone & Branding at Globacom Nigeria. Olusina Adegoke has over 21 years of Sales Management and Leadership experience across the Telecommunications, Finance, FMCG and Pharmaceutical industries. Prior to joining Airtel, he worked at Etisalat Nigeria Limited as the Head of Region (South West) between 2013 – 2015. Oladokun Oye is a graduate of Hertfordshire, UK, Adekunle Ajasin University, Lagos State University, and Lagos Business School, and started his career as Assistant Brand Manager, Trans-Global Market International, before joining Avdel Limited (formerly Act Global Technologies) UK as Senior Sales Manager.

Isichei Elected President of Nigerian Chamber of Shipping The Governing Council of the Nigerian Chamber of Shipping (NCS) has elected its long standing Vice President, Mr. Andy Isichei as its 6th President. The NCS in statement said Isichei has been a Vice President to four of the five past Presidents before him. “Loyal but passionate council member of the Chamber who has always provided a rallying point to the organisation and ensured it rose from every of its developmental challenges over the years. Isichei runs a successful conglomerate with deep business interests in haulage logistics, dredging, oil & gas and others. He was a one-time Managing Director of the defunct National Clearing and Freight Agency (NACFA), “it stated. In his acceptance speech, he promised to take the Chamber to a higher level working together

with the newly elected Vice President, Tijani Rhamallan and all the members of the Board. The Chamber of Shipping, he affirmed, will continue to foster cooperation, understanding and effective partnerships with all sectors of the Nigerian maritime sector including relevant government bodies and regulatory agencies. “We will partner the Legislature, the International Oil Companies (IOCs), indigenous Stakeholders and interested parties within the Nigerian Maritime industry, to ensure that Nigeria becomes the major hub of shipping business in West African sub region with world class standards in line with global best practices, “he said. He invited all stakeholders to join the Chamber of Shipping and be a change-agent to make things work again for the Nigerian Maritime Industry.

T H I S D AY • MONDAY, MARCH 27, 2017

BUSINESSWORLD

INTERVIEW

Osakwe: Nigeria’s Trade, Economic Relations with the US is Solid Trade Adviser to the Minister of Industry, Trade and Investment, Amb Chiedu Osakwe insists that the relations between Nigeria and the US, is very cordial. Osakwe who is also Nigeria’s Chief Trade Negotiator, Economic Management Team, affirmed this in a recent interview with ARISE News Network. Excerpts: Do you expect Nigeria’s economic priorities to remarkably change as a result of this meeting and all that talk of closer collaboration between the CBN and government about the fiscal and monetary policy? The change in Policy is not an event, it is not an activity, and it is not a process. So, there is a process that is initiated by the government of President Muhammadu Buhari since they came into office. And they have been bringing together some of the best minds to the country, both in and out of the government. Therefore, the MPC meeting that you talked about started with a retreat on Friday last week and then went into the weekend. Essentially, the whole idea is to establish cohesion not only between monetary and fiscal policy as you correctly said, but also structural reform policies. So you need to have coherence across these pillars of policies to be able to drive the economic activities. So is that the most pressing issue for the Central Bank of Nigeria (CBN) to address and of course, in addition to the numerous issues around forex? It’s not simply an act of the CBN. The CBN is one authority, one pillar of the Economic policies of the country. It is within the government Monetary Policy Committee (MPC), and then you have the Ministry of Finance that is working with our fiscal authority and the Minister Enelama who is working in the area of industry, trade and investment. So talking about the Nigerian economy at this particular moment... this economy has to pump at all pittances. A considerable damage was done over a long period of time with excessive reliance on one commodity (oil), and sees what happened in 2014 crash in oil prices. So the whole idea now is to have coherence across the three pillars of policy so as to move to structural ... But is the message getting across to the world because analysts are still not upbeat about Nigeria. They are still waiting to see some more fiscal initiatives before they feel more confident? Every economy is basically a thousand pounds *coregents*. It takes a while to turn it around. If you are dealing with the global economy and you are dealing with the media across the global economy, there are templates, there are stereotypes; not necessarily positive and not necessarily negative. But it takes a while to change because observers, analysts and investors want to see predictability. They want to see certainty. They want to see the execution of discretion. They want to be sure that if you travel down that road, the road that is being paved by the government is not cul-de-sac. Is Nigeria now travelling that road, moving towards open market or is it still essentially government controlled because that is one of the things investors want to see. More open markets? My sense is that government is on the right part. Is that what you are advising them to do? To move towards more open market? Excellent. It is my advice to embrace the market fundamentals but it’s not about me as there are group of very competent people in government. You have the Minister of Industry, Trade and Investment; you have a first class Finance Minister; and you have a CBN that operates based on the Monetary Policy Committee. And I must say to you that in all this, the oversight of the very cerebral leadership is provided by the Vice President of the country

Osakwe who chairs ex-officio, the Economic Management Team. A lot of these economic policies of Nigeria are being subjected to so much logical argumentation, debate, and rational scrutiny. Now let’s say I am an investor, identify for me the key drivers for the next phase of growth in the Nigerian economy. What are the opportunities that can be harnessed to create more positive change in the future? One is power. The problem that we have currently is inadequacy of power, insufficiency of power. You cannot do anything in the economy, you cannot industrialise, you can’t diversify, you can’t manage homes, and universities cannot run, hospitals cannot function, irrigation and agriculture, SMEs won’t work, and agro-business will be impossible. The number one priority in this economy is power and getting it right.

One of the key drivers of this is going to be foreign investment. We have just heard and I don’t know if you have heard about it, which also relates with trade relations with countries like the US, and companies like GE making inroads in Nigeria. However, the latest USAfrica trade meeting did take place in America without any African representatives because more than 100 delegates were denied visa to US. It’s the university of Southern California initiatives that brings African delegates together annually with the US officials but every single African delegates were denied entry visa. The reasons are not quite clear but does that give a clue about what relationship in general and trade relations in particular might look like under Trump Presidency with Africa? I think we have to separate these two stories. I don’t know the details about the meeting of

the Trade officials convened in a University. It is annual thing and it’s quite big? I am not aware of it but here it is where we are with regard to our relationship with the US. It remains a very good relationship. The relationship between Nigeria and US with regards to trade and economy is on a very solid ground. Minister Enelama and I attended a meeting in Washington and we had engagements with officials of the Trump administration and the bureaucrats, the very senior officials there. We have at this particular moment no cause for anxiety regarding Nigeria’s relationship with the US. We still don’t know what the trade relationship is going to look like? Basically, we still have AGOA....

T H I S D AY • MONDAY, MARCH 27, 2017

BUSINESSWORLD

NEWS

US-Nigeria Council Promotes Economic Diversification

Experts Call for Radical Changes to Reposition Aviation Sector

Obinna Chima

Chinedu Eze

A new business organisation, the US-Nigeria Council (USNC) is set to advance diversification and job creation in Nigeria. The Council plans to create partnerships between Nigerian and American businesses and forge a backbone of strong USNigeria relations, according to a press release by the Council. In a statement, the Council launched recently at a dinner of leaders of Nigerian and American businesses in Lagos, was hosted by the Chairman of Flour Mills Nigeria Plc (FMN), Mr. John Coumantaros, and Nigeria Sovereign Investment Authority (NSIA) CEO, Uche Orji. The event was attended by the US Ambassador to Nigeria, Stuart Symington; the Governor of the Central Bank of Nigeria, Godwin Emefiele; the US Counsel General, John Bray;

and leaders of Nigeria’s blue chip companies and major US investors. “The commitment of Nigerian businesses to USNC was demonstrated by the active participation of Alhaji Aliko Dangote of Dangote Group, Oba Oteduko of Honeywell Group, Jim Ovia of Zenith Bank, Herbert Wigwe of Access Bank, Akinsowon Dawodu of Citibank Nigeria, Adewale TInubu of Oando, Aigboje Aig-Imoukhuede of WAPIC, Abdulsamad Rabiu of BUA Group and others. “US businesses represented at the launch by senior executives included Dow Chemical Company, Chevron, UPS, Procter & Gamble, ExxonMobil and Uber, Coca Cola and 7Up through their bottlers. Among the leading investors at the event were Emerging Capital Partners, Development Partners International, Greenwish Capital

and The Carlyle Group,” the statement added. The Council also boasts of young entrepreneurs who have started companies in technology, agri-business, e-commerce and education, including Tomato Jos, Mall for Africa and Andela. The co-host of the launch dinner and co-chair of the Council, Coumantaros, stressed the aim of the Council. He noted: “the US Nigeria Council has been formed to bring US and Nigerian businesses together in developing catalytic projects that will develop capacity and accelerate economic diversification in Nigeria.” He further stated: “this Council is unique among Councils because it is business to business focused.” The council’s work, the release said, will aim to develop partnerships, investments, and develop capacity in the agro-allied and

food, infrastructure, oil and gas, and technology sectors. On his part, Orji described the work of the Council as building “a much-needed bridge of trust between US and Nigerian companies and creating a pipeline of new projects for investors that advance the development goals of Nigeria over the short, medium and long term.” USNC which already has an office in Washington DC, will establish an office in Lagos in the coming month. These offices will support US companies that want to invest in the Nigerian market and Nigerian companies seeking partners and financial backers in the United States. The Council will measure its success by the strength of the partnerships formed, investments generated, capacity developed, jobs created, and exporting relationships made.

Mutual Benefits Assurance Investigates Alleged Fraud

BUSINESS COLLABORATION

R-L: Chairman, Teach For Nigeria, Gbenga Oyebode; Founder, Teach For America and CEO/Co-founder, Teach For All , Wendy Koppand and Chief Executive Officer , Teach For Nigeria, Folawe Omikunle, during the launch of Teach For Nigeria supported by Sterling Bank Plc in Lagos...recently

Firm to Create Six million Jobs to Boost GDP Ugo Aliogo The Executive Vice-President of Hudson Group, Prince Tom Iseghohi, has said that the company plans to create six million jobs in the next three years, in its effort to increase Nigeria’s Gross Domestic Product (GDP) within five years. Iseghohi who disclosed this at a two-day strategic session organised by the group in partnership with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and other partners noted that from a gallop study conducted, it was discovered that Nigeria has the highest entrepreneurial intent in the world, which he said was an indication that there are more Nigerian entrepreneurs willing to start a business when compared with other countries in the world. He also noted that if entrepreneurs were given the needed

support to start-up a business and they become successful, the country’s GDP would grow tremendously, the per capital income would increase and employment would be addressed, adding that in terms of conversion of entrepreneurial intent for successful businesses, Nigeria is one of the lowest in the world. Iseghohi explained that the two key reasons responsible for this challenge are the lack of access to funding and access to market especially international market, stating that the focus of the conference is aimed at creating a platform to solve the issues that faces micro-small medium scale enterprises. The Hudson VP added: “We have put together a structure that includes international financiers, private sector, government officials and technocrats to come together to solve this problem which is to make micro-small me-

Experts in the aviation sector have called for the implementation of dynamic and revolutionary policies that would help combat the challenges in Nigeria’s aviation sector. Head, research Augusto &Co, Jimi Ogbobine said what he described as the “The New Deal” as enunciated by the 32nd President of United States, Franklin Roosevelt, involved a set of unconventional policies, which created a new set of institutions like the Federal Deposit Insurance Corporation (FDIC) to protect depositors funds and the Securities Exchange Commission (SEC) to regulate the stock market. Analysts say the New Deal could be applied to the Nigeria’s aviation sector to help revive it. “Recommendations of the “New Deal” include opening Nigeria’s domestic air space to foreign airlines willing to invest in the sector, increasing partnerships between local and foreign airlines as was done between Virgin Atlantic and the defunct Virgin Nigeria, a relationship that was done through code sharing and interline partnerships. “This will also include increasing accessibility between international and local airports through trams built by the private sector, appropriate fiscal incentives to stimulate investments in the sector, improving corporate governance standards amongst operators,” Ogbobine said. According to him, the Nigerian domestic aviation industry is tethering on the brink today probably facing its own great depression and it would require a ‘New Deal’ to save it from collapse and

spur it on to growth. He noted that this idea is germane at the time the Nigerian domestic aviation industry has been in dire straits for quite a while and recent statistics by the Nigerian Civil Aviation Authority (NCAA) seem to buttress the fragility of the industry. According to the NCAA, in 2000 Nigeria had 150 registered airlines but that number has reduced to eight, noting that most of these airlines collapsed because they were unable to meet the stringent regulatory requirements, which ensure safety flight operations. He noted that even with the ouster of a great legion of operators, the industry is still weakened by inadequate capitalisation, and poor corporate governance that could further undermine its long term prospects and also affect passenger safety. Experts are of the view that government ’ s recent response to some of these challenges would prove to be inadequate in the long run. The federal government recently acquired the biggest domestic airline Arik Air, even amidst the challenges following the earlier acquisition of Aero Contractors because of their huge debts to banks, including the bailout fund given to the airlines in the past. “Sadly, the repeated failures of the various bailout programs by successive administrations especially in this Fourth Republic have not engendered new thinking amongst policy makers. Some of these government bailout funds have only served as golden parachutes for the investors who then exit the industry without concrete repayment plans.

dium enterprises get formalised have access to technical partners, have access to funding. “At the end of the meeting we would have developed a clear road map that any person interested in creating a business can plug into ad tap from. We have decided that we need to be measured by very clear matrix. If we are successfully we should see SMEs getting more funding than they should have which is easily measurable. “If we are successfully, SMEs should create 6 million jobs in the next three years. If we are successfully there should be a direct traceable impact on the GDP. Nigeria’s GDP can be trillions of dollars, today it is less than $500 and the best way to drive that is through the SMEs. We have seen the commitment of government through SMEDAN. SMEDAN and other state government are partnering with us to try to begin

a process which shows that this can be done.” The SMEDAN DirectorGeneral, Dr. Dikko Radda who represented by the Director Enterprise Development and Promotion Agency of Nigeria, Dr. Wale Fasanya, stated that the agency has been involved in designing programmes and projects, creating the appropriate platforms for addressing the some of the numerous constraints of Micro Small Medium Scale Enterprises (MSMEs) adding that the contribution of the sector to export is 7.27 percent. He noted that in the face of recession, the sector is expected to serve as a catalyst for reversing the economic downslide, stressing that the expectation is not certainly misplaced but would be more justifiable if enabling environment is provided for the over 37 million new jobs created by the sector.

Ebere Nwoji Mutual Benefits Assurance Plc, has taken immediate steps to investigate and prosecute perpetrators of reported unethical and fraudulent practices allegedly uncovered in the company. In a statement, the Head, Corporate Communications, Mutual Benefit Assurance, Ellen Offo, said their attention had been drawn to an online publication of the unethical practices going in the company, saying the matter allegations are being investigated. Offo said: “Our attention has been drawn to an online publication alleging unethical practices going on in Mutual Benefits. While there was no mention of any specific member of staff in the report, we do commiserate with the customers involved and we have taken immediate steps to investigate and urgently look into the issues raised in the report. We use this medium to assure our numerous customers that we shall prosecute anyone found to be complicit.” Offo insisted that Mutual Benefits Assurance has zero tolerance for fraud, stressing that her company, therefore, viewed the report with grave

seriousness. According to her, as a deterrence, Mutual Benefits, has instituted a policy against payment of cash to members of staff, adding that the accepted mode of payment is clearly stated on all proposal forms of the company and policy documents. She said in addition, Mutual Benefits, has put in place secure and convenient cashless means of payment of premium such as direct debit, bank branch pay-direct, web-pay, online transfer, along with its third party insurance scratch cards. She said the company has operated for over 21 years in the insurance landscape as a leading brand in the Nigerian Insurance sector with a reputation for speedy claims settlement and excellent service delivery. “Mutual Benefits is strong, well-capitalised and committed to protecting the interests of our customers at all times. Between January and February this year, claims paid are in excess of N3 billion, while over N50 billion was paid as claims settlement between 2012 and 2016 across our business lines. This is a testimony of the value we place on our customers and their needs,” Offo said.

T H I S D AY • MONDAY, MARCH 27, 2017

BUSINESSWORLD

PERSPECTIVE

The Nigerian Economy and Policy Environment In this article, Larry Ettah proffers measures that can be adopted to achieve sustainable growth and development in the Nigerian economy Recently released data from the National Bureau Statistics (NBS) confirmed that Nigeria experienced a full year recession in 2016 with the economy contracting by 1.51%. The fourth quarter 2016 GDP came in negative at -1.3%, after the three earlier quarters had also recorded negative growth of -0.36%, -2.06% and -2.24% respectively. In the whole of 2016, the oil sector contracted by 13.65% while non-oil activities shrunk by 0.22%. These data merely confirm what Nigerian businesses, consumers and households experienced in the prior year and re-emphasize the urgency of action from government and other stakeholders to ameliorate the situation. At this point, it is important to acknowledge that the Federal Government of Nigeria through the Ministry of Budget and Planning released the much expected Economic Recovery and Growth Plan (ERGP) on March 7, 2017. I will discuss our initial impressions of the plan later on in this press conference. NBS data confirmed that by the end of 2016, the crude, petroleum and gas sector represented only 8.42% of Nigerian GDP once again reminding us of the urgent imperative of diversifying government revenue and the sources of our exports. We call again on government to aggressively provide incentives and support for non-oil exporters so that a sector that represents less than 9% of economic output will no longer provide virtually all our foreign exchange income, thus leading to the kind of FX constraints that the whole nation faced in 2016 and still faces. Note that the manufacturing sector with 9.27% of GDP in fact contributed more to GDP in 2016 than oil (8.42%) and if along with the rest of our non-oil economy, it receives appropriate support to make it more globally competitive, should be able to contribute more to our exports and foreign currency revenue than it currently does. Policy makers must focus on reversing the anomaly in which oil which is 8.42% of GDP provides 95% of export revenue, while the entire non-oil economy (including manufacturing, agriculture, trade, telecommunications, real estate, finance and insurance etc.) which collectively represents 91.58% of GDP provide about 5% of exports! In terms of sectoral performance, most domestic economic sectors similarly performed poorly

Minister of Finance, Kemi Adeosun in terms of growth in 2016 – manufacturing (-4.32%), construction (-5.95%), Trade (-0.24%), transport (0.39%), information and communication, including telecommunications (1.95%), hotels and restaurants (-5.32%), professional, scientific and technical services (0.80%), finance and insurance (-4.54%), real estate (-6.86%), education (1.35%), health (-1.79%) government (-4.58%) and arts, entertainment and recreation (3.72%). Other macroeconomic indices also remain problematic. Inflation has reached 18.7% as at January 2017 and capital market performance was and remains dismal, by all parameters. Fortunately however, there have been some recent positives – oil prices have risen to an average of $55 per barrel post the OPEC oil production cut-backs allowing the Central Bank of Nigeria to accumulate increased foreign reserves. We have also had a successful $1Billion Eurobond offer which may signpost modest improvement in foreign investor confidence in the Nigerian economy. We however have concerns about the relatively high cost of the Eurobond offer and the rising debt service obligations of the country compared to our revenue profile. THE ECONOMIC RECOVERY AND GROWTH PLAN The Federal Government should be commended for releasing the Economic

Recovery and Growth Plan (ERGP) which should provide some degree of policy certainty to domestic and foreign stakeholders on the policy direction of the Nigerian government for our economy. We appreciate the fact that the ERGP was produced through a process that involved consultations with the private sector and hope such consultative posture would be sustained. We share in the broad principles behind the plan – tackling constraints to growth, particularly fuel, power, unfriendly regulations, and foreign currency; leveraging the power of the private sector, promoting national cohesion and social inclusion and allowing markets to work. We also support some specific initiatives and targets stated in the document including the desire to increase oil production to 2.5million barrels per day by 2020; privatisation of specific enterprises and assets; reducing petrol importation by 60%; building a globally competitive economy; and improving infrastructure and the overall business environment. We urge government to ensure a focused, concerted and effective implementation of all the actions and initiatives contained in the ERGP so that the benefits may quickly accrue to the economy, businesses and citizens, and the nation as a whole. COMPARATIVE POLICY REVIEW The part of my address

is based on a comparative analysis of seven (7) countries benchmarked against Nigeria with the objective of drawing economic policy implications that may inform policy options Nigeria may consider as it seeks to exit economic recession and return to the path of economic growth and development. The comparator countries are carefully selected for relevance:Country Policy Reviews Ghana: Its major exports are gold, cocoa and oil. The country’s economic performance deteriorated in the last few years, due to the decline in commodity prices. It should be noted that Ghana still imports crude oil and refined petroleum products to supplement local production. In April 2015, Ghana signed a 3-year $920million facility with the IMF to stabilise its balance of payments. Ghana’s main responses to its economic challenges have been currency devaluation and the IMF facility. These responses have ensured resumed GDP growth estimated at 4.7% as at Q3 2016 Saudi Arabia: This is a leading OPEC member with vast oil reserves, a modest population and huge FX reserves. In spite of its fundamentally stronger position, relative to say Nigeria (with large population, lower oil reserves and low FX savings), Saudi Arabia embraced an aggressive policy response to decline of oil prices, with a strategy focused on

diversification from oil:In December 2015, McKinsey working for the Kingdom published “Saudi Arabia beyond Oil : The Investment and Productivity Transformation.” In April 2016, the country still working with McKinsey published a new Vision 2030 also anchored on diversification from oil. The final policy culmination was the “National Transformation Plan” announced in June 2016 which aims to balance the budget, create jobs, reduce subsidies, diversify the economy and develop the private sector. A key element of Saudi Arabia’s policy response is a privatisation of 5% the national oil company, Aramco slated for 2017/18 that may raise up to $100bn. The country aims to triple non-oil revenue, increase non-oil exports and secure $4Trillion investment from private sources in non-oil sector to create 6 million jobs. It will also establish a sovereign wealth fund. Norway: The significance of Norway is how as a large oil producer, it has secured relative immunity from oil price savings by institutionalising sovereign savings through a sovereign wealth fund. The country has also achieved relative export diversification with exports of fisheries and shipping in addition to petroleum and hydroelectric power. Per capita income in Norway is over $65,000! Norway’s Government Pension Fund-Global with $850bn is ranked 3rd largest in the world behind US and Japan according to Sovereign Wealth Fund Institute. Egypt: On November 3, 2016, Egypt announced it would float the Egyptian Pound (devaluation). It also announced a fiscal reform programme. Egypt also entered into a deal with the IMF based on a 3 year plan. These measures led to the massive re-entry of foreign investors who had fled the Egyptian economy due to its political and economic problems. The result was that Egypt’s $4bn Eurobond offer secured multiple over-subscription. By 2015, Egypt’s GDP growth reached 4.2%. Its exchange rate having depreciated post-floating has recently strengthened validating its floating currency system and economic reform programme. Russia: It suffered severe economic problems due to its dependence on oil and gas exports, as well as Western sanctions due to its actions in Crimea, Ukraine and Syria. As a result, the Russian economy

went into recession in 2015 (-3.7% contraction). The saving grace of economic policy in Russia is that it allowed its currency to devalue consequent on economic crisis, which enabled a “natural” market adjustment and preserved Russia’s FX Reserves of almost $400bn. In 2016, the contraction reduced to -0.6% and the Russian economy is expected to grow in 2017. The Russian stockmarket recovered in 2016, growing by over 40% and foreign investors are returning, especially for oil and gas plays. Indonesia: This is the world’s 16th largest economy by nominal GDP (approx. $940bn in 2016 and $3bn by PPP). The country’s GDP continued on an average 5% growth through 2014-2016 in spite of being a very large OPEC oil exporter and GDP per capita is around $11, 700.00. The country’s poverty and unemployment rates relative to Nigeria are fair, at 11.3% and 6.3% respectively. Indonesia’s relative macroeconomic stability and superior performance in comparison to Nigeria is because it has substantially diversified its economy, especially exports, selling not just oil and gas, but also cement, food, electrical appliances, construction, plywood, textiles and rubber to the world. The country’s FX reserves were estimated at over $116bn at December 2016 and its key policies centre around privatisation/ private capital, FDI, industrialisation and economic diversification. Angola: Its recent economic performance has been dismal as a result of falling oil prices, spiralling inflation and rising public debt, in many ways a mirror image of Nigeria! Poverty affects 40.5% of the population, Yet Angola has managed to continue to grow its GDP (4% in 2015) and its GDP per capita at over $5,000.00 is better than Nigeria’s. With 85% of its population engaged in agriculture, the country has not structurally reformed its economy and remains dependent on oil and commodity exports. Policy Implications and Recommendations Proactive Policy Response: The experience of Saudi Arabia illustrates the need for a proactive, strong and concerted policy response as oil prices began to fall. Unlike the Saudis, Nigeria is yet to articulate and communicate a coherent policy agenda in response to the oil crises. While we note positively that government has now CONTINUED ON NEXT PAGE

T H I S D AY • MONDAY, MARCH 27, 2017

BUSINESSWORLD

PERSPECTIVE

THE NIGERIAN ECONOMY AND POLICY ENVIRONMENT years late and should be implemented forthwith. We expect ERGP implementation to be based on a strong agenda to diversify exports and government revenue sources; promotion of private capital and investment; deregulation of downstream petroleum; as well as an effective flexible exchange rate system. Floating Exchange Rate System: The evidence from other economies is clear and compelling to the effect that floating exchange rate systems enables economies respond best to declines in the value of their exports and provide a natural adjustment mechanism to preserve FX reserves and change incentives and behaviour of economic actors. Nigeria’s attempt at a fixed exchange rate system and administrative controls or rationing of scarce foreign currency has clearly failed and produced FX market arbitrage and “roundtripping”; corruption, multiple exchange rates and acted as a deterrence to investment. We commend the recent reforms adopted by the CBN based on the recommendation of the Acting President/ National Economic Council and urge the CBN to take these reforms to the logical conclusion-a floating exchange rate system. Private Capital and Investments: One of the major deficiencies of current policy is the “body language” that suggests an aversion for private capital and investment and a seeming preference for government control of the economy. The evidence from most of the countries examined, especially Saudi Arabia, Egypt, Indonesia and even Russia however indicates the opposite-most oil dependent economies have anchored their post-oil strategies on private capital and investment in oil and non-oil activities. Most investors are interested in the Nigerian economy, but they have been deterred by lack of policy clarity

and the confusion over FX. We understand that ERGP articulates a clear policy preference for private capital and expect government to implement clear strategies for promoting such. The Imperative of Sovereign Savings: Nigeria missed the opportunity of high oil prices between 2010 and 2014 failing to accumulate sufficient sovereign savings to provide a buffer against oil price shocks. We did not learn the lesson that one major reason Nigeria avoided more severe consequences of the Global Financial Crisis and Recession in 2008-2009 was because of the over $65bn accumulated in both foreign reserves and “excess crude account” in that period. This failure to save was in spite of the fact that the nation had created a Sovereign Wealth Fund through legislation. Going forward we must ensure that we save a portion of our commodity-related revenues in view of the inevitability of future declines. The Case for Targeted Privatisation or “Asset Sales”: The issue of privatisation or “asset sales” has been controversial based on legitimate concerns that such policy may provide an avenue for persons or groups to “corner” precious national assets and further the entrenchment of monopolies and oligopolies in our national economy. In spite of these concerns, which we share, we cannot refuse to examine asset sales as an option in funding the economy in this recession. In particular, we believe government may consider some specific sales of assets such as Conversion of the upstream oil sector JVs into incorporated JVs with the government reducing its share in those IJVs as a means of improving governance and raising resources for infrastructure. We support full privatisation of government-owned refineries and privatisation

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Our attention has been drawn to a website www.cashcraft.net in which messages/sms/mails are being sent to the general public requesting for funds and promising a 100% payback of all donations/contributions/subscriptions or funding in minutes in the name of Cashcraft Financial Freedom. Kindly be informed that the messages are not from CASHCRAFT ASSET MGT LTD/CASHCRAFT SECURITIES LIMITED/CASHCRAFT CAPITAL LTD or any of our affiliates. We therefore advise our clients to be mindful of decision they take so as not to be swindled and deceived by fraudulent persons/organizations in the disguise of doing business with CASHCRAFT ASSET MGT LTD. Anyone who does any transaction with www.cashcraft.net or Cashcraft Financial Freedom does that at his/her own risk. Cashcraft Asset Management Limited’s website remains www. cashcraft.com Signed:

MAnAGEMEnT.

or long concessions of all federal government-owned airports. Government may also consider selling not more than 20% of its holding in NLNG to the current private investors in the company. Government should use these processes to expand the capital market through listing of privatised assets on the NSE and also encourage/ guarantee host community participation. Nigeria appears to have peremptorily ruled out an IMF facility as an option in resolving our balance of payments problem, unlike Ghana and Egypt both of which appear to have benefitted from facilities from the fund. While we are not in a position to determine whether or not the country should obtain such a facility, we advise that no policy option should be dispensed with merely on populist considerations. Nigeria needs injection of foreign currency on the best terms possible and should consider all options based on their relative merits and demerits. One consequence of the monetary authorities fixation on maintaining an artificial fixed exchange rate has been the high interest rate regime. The CBN has maintained monetary policy rate at 14% in spite of the economic recession which would have suggested a different policy responselowering interest rates to stimulate economic activity. We believe that within the context of our previous preference for a floating exchange rate system as the ideal policy response in our circumstances, that it is time for CBN to abandon its monetary tightening posture and move towards a monetary easing and a lower interest rate regime in order to boost productive activities in the economy. Nigeria’s domestic and external debts have risen significantly since 2014, and particularly in 2015 and 2016. Our domestic borrowing has risen from N577bn in 2013 to N1.18Trillion by 2016 while total borrowing (external and domestic) has grown from just N614bn in 2014 to N1.8Trillion in 2016 and a projected level of N2.3Trillion under the 2017 budget! More worrying is the fact that debt servicing obligation now represent about 35% of total budgeted revenue in both 2016 and 2017 suggesting that Nigerian government borrowing is probably unsustainable. We also note that while the successful and multiple oversubscribed $1billion Eurobon represents a vote of confidence in Nigeria’s economy, at over 7% coupon, it was highly priced. The sustainable funding strategy for the Nigerian economy should focus on private investment/FDI rather than concentrating

on unsustainable borrowings. Government may also have to review its tax policy. Tax Policy: We conducted a comprehensive benchmarking of company income tax, personal income and VAT/sales tax rates of 30 global economies. We believe on the evidence that Nigeria’s CIT rate of 30% (plus 2% education tax) lies on the upper threshold and should be reviewed downwards to 20-25%. We find that Ghana, Cote D’Ivoire, China, Malaysia and Indonesia all tax corporate profits at 25% while UK, Saudi Arabia and Russia use 20%. Countries inbetween include Portugal (21%), Botswana (22%) and Egypt (22.5%) while South Africa’s rate is 28%. On the other hand, it is incontrovertible that Nigeria’s 5% VAT rate is far below that of comparator countries and at an appropriate time may be increased to 10%. Minimum Wage: Given the depreciation in the value of the Naira as well as inflation currently at 18.6%, a strong case can be made for raising Nigeria’s minimum wage. However

we counsel that, such a step be preceded by a comprehensive review and restructuring of the public services of the federal, states and local governments. Given that such restructuring may not be expedient in this period of recession and rising unemployment, our recommendation is that a review of the minimum wage should be deferred until the economy has resumed strong growth and public sector finances have improved. Power Sector Issues: One of the problems that continue to plague the Nigerian productive sector and businesses generally is the continuing acute electricity supply deficits in the country. While we do not support a reversal of the power sector privatisation, we believe government must hold the “discos” and “gencos” to their obligations and promises before assuming ownership of these entities. We also believe government must demonstrate good faith by paying up all its debts to the power distribution companies and continue to invest in the transmission system to improve trans-

S/N

CUSTOMER

ITEM OF IMPORT

FRIESLANDCAMPINA WAMCO NIG

WHOLE MILK POWDER INSTANT

GANIYU OLAJUWON

mission capacity. Finally government should sustain and accelerate efforts to reach a political settlement in the Niger-Delta to put an end to sabotage of oil, gas and power infrastructure. Nigerian individuals, households and businesses have experienced a tough time in the last two years. We hope that all stakeholders, particularly government will put all hands on deck to ensure an end to recession, the resumption of growth and indeed accelerated economic development in this nation. We urge government to focus on clinical and swift implementation of the initiatives and actions included in the ERGP as well as other ideas presented to them by the OPS, including the recommendations I have just made in this address. On our part, as NECA and OPS, we stand ready to do our utmost best to ensure sustained and inclusive growth and development in the Nigerian economy. Ettah, President of the Nigerian Employers Consultative Association presented this paper at a press conference in Lagos

DATE OF FUND PURCHASE

EXCHANGE RATE

USD AMOUNT

20-Mar-17

308.00

200,000.00

PAYMENT FOR EXAM

21-Mar-17

306.20

1,100.00

CORONATION MERCHANT BANK

BANK CHARGE

21-Mar-17

306.20

25.00

FRIESLANDCAMPINA WAMCO NIG

WHOLE MILK POWDER INSTANT

21-Mar-17

308.00

200,000.00

CORONATION MERCHANT BANK

BANK CHARGE

22-Mar-17

305.75

1,047.26

CORONATION MERCHANT BANK

BANK CHARGE

22-Mar-17

305.75

365.54

VIRAMSUN NIG. LTD.

RAW MATERIAL FOR BOOK PROD WOODFREE PLAIN PAPER

22-Mar-17

305.75

278.27

CORONATION MERCHANT BANK

BANK CHARGE

22-Mar-17

305.75

1,444.44

VIRAMSUN NIG. LTD.

RAW MATERIAL FOR BOOK PROD WOODFREE PLAIN PAPER

22-Mar-17

305.75

274.50

OK FOODS LIMITED

LIQUID GLUCOSE INDUSTRIAL RAW MATERIAL

22-Mar-17

305.75

770.78

VIRAMSUN NIG. LTD.

RAW MATERIAL FOR BOOK PROD WOODFREE PLAIN PAPER

22-Mar-17

305.75

1,122.99

CORONATION MERCHANT BANK

BANK CHARGE

22-Mar-17

305.75

2,287.43

OLANREWAJU YUSUF

PTA

22-Mar-17

375.00

4,000.00

FAREAST MERCANTILE COMPANY

DISTELL PRODUCTS (HUNTERS DRY CIDER)

22-Mar-17

320.50

291,379.21

FAREAST (NEW HOME PRODUCTS

SCANFROST BRAND WASHING MACHINE

22-Mar-17

320.50

102,800.00

FAREAST MERCANTILE COMPANY

TIGER RAZOR BLADES

22-Mar-17

320.50

330,823.60

FAREAST (NEW HOME PRODUCTS

TIGER RAZOR BLADES

22-Mar-17

320.50

330,823.60

FAREAST (NEW HOME PRODUCTS

TIGER RAZOR BLADES

22-Mar-17

320.50

62,237.80

FAREAST (NEW HOME PRODUCTS

SCANFROST BRAND FREEZERS IN CKD FORMAT

22-Mar-17

320.50

39,935.34

STARSONIC NIGERIA LIMITED

HIGH DENSITY POLYETHYLENE LOTRENE

22-Mar-17

320.50

179,356.13

STARSONIC NIGERIA LIMITED

HIGH DENSITY POLYETHYLENE BLOW

22-Mar-17

320.50

101,484.32

FRIESLANDCAMPINA WAMCO NIG

EVAPORATED UNSWEETENED FULL CREAM MILK

22-Mar-17

320.50

461,160.00

PROMASIDOR NIGERIA LTD

CARTONS OF COWBELL TINA

22-Mar-17

320.50

63,139.41

PROMASIDOR NIGERIA LTD

BULK MULTI-PLY BAGS COWBELL INSTANT MILK

22-Mar-17

320.50

376,973.81

PROMASIDOR NIGERIA LTD

BULK MULTI-PLY BAGS COWBELL INSTANT MILK

22-Mar-17

320.50

159,886.78

OLADOKUN AYENI

PTA

23-Mar-17

375.00

4,000.00

OGUNREKUN OLUYEMI

PTA

23-Mar-17

375.00

4,000.00

CBN

RETURN OF INVISIBLES INTERVENTION

24-Mar-17

370.00

262,944.20

FAREAST MERCANTILE COMPANY

SCANFROST BRAND DLED COLOUR TELEVISION

24-Mar-17

306.75

50,000.00

FRIESLANDCAMPINA WAMCO NIG

EVAPORATED UNSWEETENED FULL CREAM MILK

24-Mar-17

320.50

461,160.00

PROMASIDOR NIGERIA LTD

BULK MULTI-PLY BAGS COWBELL INSTANT MILK

24-Mar-17

320.50

481,397.22

FAREAST MERCANTILE COMPANY

SCANFROST BRAND FREEZERS IN CKD FORMAT

24-Mar-17

320.50

5,624.66

FAREAST MERCANTILE COMPANY

QUICK QUAKER OATS (QK QUICK COOKING

24-Mar-17

320.50

179,593.12

FAREAST MERCANTILE COMPANY

TIGER RAZOR BLADES

24-Mar-17

320.50

165,411.80

FAREAST MERCANTILE COMPANY

MAXXUS BRAND BATTERIES

24-Mar-17

320.50

70,258.00

FAREAST MERCANTILE COMPANY

REDBULL ENERGY DRINK

24-Mar-17

320.50

615,259.55

EL-ALAN CONSTRUC COM (NIG)

VILLEROY & BOCH SANITRAY WARE

24-Mar-17

320.50

60,135.65

FRIESLANDCAMPINA WAMCO NIG

EVAPORATED UNSWEETENED FULL CREAM MILK

24-Mar-17

320.50

461,160.00

S/N

CUSTOMER

DATE OF FUND PURCHASE

CBN FORWARDS

22-Mar-17

EXCHANGE RATE 320.00

2,500,000.00

OTHER SOURCES 1

20-Mar-17

307.50

50,000.00

OTHER SOURCES 2

20-Mar-17

307.50

150,000.00

OTHER SOURCES 3

21-Mar-17

307.50

200,000.00

OTHER SOURCES 4

22-Mar-17

307.75

25,000.00

CBN FORWARDS

24-Mar-17

320.00

2,500,000.00

TOTAL AMOUNT

AVERAGE AMOUNT

5,425,000.00 904,166.67

USD AMOUNT

T H I S D AY MONDAY MARCH 27, 2017

MONDAY, MARCH 27, 2017 • T H I S D AY

BUSINESS/MONEYGUIDE

CBN Unveils Securities Settlement Guidelines Nume Ekeghe In furtherance of its principal objective of ensuring monetary and price stability as well as to promote a sound financial system, the Central Bank of Nigeria (CBN) has issued guidelines for the operation of the Scripless Securities Settlement System (S4). The S4 as one of the pillars of global financial markets infrastructure is a system that holds securities in dematerialised form and enables book entry transfer of securities. In some cases, the system also carries out centralised comparison, and transaction processing such as clearing and settlement of securities. According to the guidelines posted on the central bank’s website, the physical securities shall be immobilised or dematerialised so that they exist only as electronic records and maintains the definitive record of legal ownership. The system holds securities

accounts and enables securities to be transferred and settled by book entries according to predetermined multilateral rules. Such system allows for the transfer of securities either free of payment-where the transfer of securities does not involve funds, or against payment-where delivery of the securities occurs simultaneously with funds. The S4 also provides central safekeeping and asset servicing, which may include the administration of corporate actions and redemptions, and plays an important role in ensuring the integrity of securities issues (securities are not accidentally or fraudulently created or destroyed or their details changed). It also holds securities in dematerialised form (electronic records) “The S4 is set to assume a critical role to guarantee a safe and efficient transfer of securities that exist to a large extent in book entry form only and has become a central point of reference for financial markets.

“Furthermore, it records all the settlement failures occurring during the settlement period. It is therefore a key element in instilling settlement discipline. “Given the systemic importance of the system and its strategic position at the end of the post trading process, there is a strong need for an appropriate regulatory framework,” it added. The CBN stated that the functions of the S4 shall also include safekeeping, provides functionality for deposit and transfer of securities, covers the underwriting process or listing of new issues in a market, pledging of securities, among others. “The S4 carries out the settlement in cycles. Each cycle starts with the transfer of securities from the seller’s account to the buyer’s account. In the case of settlement cycles with funds transfer, movement of funds is effected from the settlement bank of the purchasing participant to the account of the settlement bank of the selling participant,” it added.

MARKET INDICATORS

Skye Bank Set to Reward More Customers Skye Bank Plc said it has revved up preparation for the second draw of its ‘Reach for the Skye Millionaire’promo. In this promo, another millionaire is expected to emerge along with several consolation prize winners. According to a statement, the draw, which holds in Owerri this Thursday aligns with the bank’s effort in encouraging saving culture and rewarding loyal customers.

The first millionaire, Olusola Olusegun Ezekiel emerged at the first draw of the season two promo which held in Lagos in February. To participate in the draw, customers were encouraged to open any Skye savings account and make a minimum deposit of N10,000 over a 30day period. “If however you already own a Skye savings account, with additional deposit of N10, 000 minimum, you increase your

chances of becoming the next millionaire. The more you save, the better your chances of emerging a millionaire,” the statement added. Also up for grabs are monthly cash prizes of N100, 000 for 10 customers; N50, 000 for 10 customers and N20, 000 for 20 loyal customers. There will also be free gift of recharge cards for the first 200 dormant accounts re-activated on a monthly basis.

Access Bank Empowers 225 Women As part of its corporate social responsibility (CSR), Access Bank Plc in partnership with the Field of Skills and Dreams Academy have trained and graduated a total of 225 women and young girls. The training sessions which took place in Lagos, Abuja, Ibadan and Calabar. Beneficiaries from the initiative which was specifically part of the CSR project of the Retail Operations Group (ROG) of the bank includes rehabilitated street girls, Chibok women in Internally Displaced Camps (IDPs), widows and rape victims. In 2015, the ROG embarked on a 3-year CSR project aimed at capacity building and empowerment of disadvantaged

women across the country for a maximum of three months. The objective was to enable them acquire skills in either catering, fashion or hairdressing. The training programme also included seminars and business training which included owning personal accounts, record keeping, customer service, etc. Upon graduation, each trainee were provided equipment such as dryers, industrial sewing machines, make up kits and commercial oven, to enable them start off their small scale businesses. Speaking during a graduation ceremony for the 225 women held in Lagos recently, the Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe,

expressed satisfaction with the support given by Access Bank. “I feel so proud that we are able to touch several people’s life. But I also think we don’t have an option. Somebody once said that 80 per cent of what we are as individuals today was as a result of support we got from someone else. So, who are we not to want to reach out and touch other people’s life? “When I hear about the IDPs today, it touches my heart because we lived there and we all lived like brothers and sister. So, we don’t have an option but to support them, when we see our people being forced out of their homes for reasons beyond their control.

Richway Microfinance Appoints Oni MD Nume Ekeghe The board and management of Richway Microfinance Bank Limited has announced the appointment of Mr. Adenrele Oni, as the Managing Director of the bank. Richway Microfinance Bank Limited is a newly licenced financial institution with focus on providing financial empowerment to those at the base of the economic pyramid and supporting SMEs. Prior to his appointment, Oni was the Managing Director of FBN Mortgages Limited, a subsidiary of First Bank of Nigeria Limited. He was also at some time, the Chief Representative Officer for FirstBank’s South African

office and President South Africa – Nigeria Chamber of Commerce and Industry He currently serves on the Board of Nigerians in Diaspora Organisation in South Africa (NIDO SA). As the Managing Director of Richway Microfinance Bank, his mandate is to position the Bank as a leading microfinance institution in Nigeria. According to a statement from the bank, “His track record typifies our bank’s value system hinged on dependability, entrepreneurship, integrity and resilience and the board has no doubt that Adenrele will make the expected impact in developing a sound foundation for the newly established organisation.”

A Fellow of the Chartered Institute of Taxation of Nigeria (FCTI), Oni is an experienced banker with over 25 years’ professional practice. He is an Honorary Senior Member of the Chartered Institute of Bankers of Nigeria (CIBN) and an alumnus of the Lagos Business School Senior Management Programme He has attended various leadership, management development, executive, banking and finance programmes in various institutions in Nigeria and abroad, such as Lagos Business School, INSEAD, Chicago Booth University, The Wharton School of the Pennsylvania University, DevPar Canada as well as University of Michigan Business School, USA.

MONEY AND CREDIT STATISTICS

(MILLION NAIRA)

DECEMBER 2016 Broad Money (M2)

23,840,392.42

-- Narrow Money (M1)

11,520,166.67

---- Currency Outside Banks

1,820,415.90

---- Demand Deposits

9,699,750.76

-- Quasi Money

12,320,225.75

Net Foreign Assets (NFA)

9,353,504.03

Net Domestic Assets(NDA)

14,486,888.39

-- Net Domestic Credit (NDC)

26,970,297.97

---- Credit to Government (Net)

4,595,579.89

---- Memo: Credit to Govt. (Net) less FMA

7,436,917.79

---- Memo: Fed. and Mirror Accounts (FMA)

-2,841,337.90

---- Credit to Private Sector (CPS)

22,374,718.08

--Other Assets Net

-12,483,409.58

Reserve Money (Base Money)

5,837,322.41

--Currency in Circulation

2,179,174.28

--Banks Reserves

3,318,344.71 • Source - CBN

MANAGED FUNDS Month

December 2016

Inter-Bank Call Rate

10.39

Minimum Rediscount Rate (MRR) Monetary Policy Rate (MPR)

14.00

Treasury Bill Rate

13.96

Savings Deposit Rate

4.18

1 Month Deposit Rate

8.53

3 Months Deposit Rate

8.80

6 Months Deposit Rate

10.23

12 Months Deposit Rate

10.76

Prime Lending rate

17.09

Maximum Lending Rate

28.55 • Monetary Policy Rate - 13%

OPEC DAILY BASKET PRICE AS AT 23 MARCH 2017 The price of OPEC basket of thirteen crudes stood at $48.35 a barrel on Thursday, compared with $48.28 the previous day, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Rabi Light (Gabon), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela). SOURCE: OPEC headquarters, Vienna

MONDAY, MARCH 27, 2017 • T H I S D AY

MARKET NEWS

Unilever Nigeria Records N3bn Profit, to Pay Higher Dividend Goddy Egene and Nosa Alekhuogie Unilever Nigeria Plc last week reported improved performance in its audited results for the year ended December 31, 2016, growing its bottom-line and recommending a higher dividend payout. The performance shows sustained growth and resilience

even under depressed economic conditions as turnover rose by 17.8 per cent to N69.77 billion, showing a 17.8 per cent increase from N59.22 billion in 2015. Mirroring the rising costs particularly raw material costs that are significantly exposed to foreign currency volatility and the rising cost of doing business generally

T H E MAIN BOARD Activity Summary on Board DEBT Federal Bond Name 15.54% FGN FEB 2020 16.00% FGN JUN 2019 Federal Totals DEBT Board Totals Bond Activity Totals Daily Summary (Equities) Activity Summary on Board EQTY AGRICULTURE Crop Production OKOMU OIL PALM PLC. PRESCO PLC Crop Production Totals Livestock/Animal Specialties LIVESTOCK FEEDS PLC. Livestock/Animal Specialties Totals AGRICULTURE Totals CONGLOMERATES Diversified Industries A.G. LEVENTIS NIGERIA PLC. JOHN HOLT PLC. S C O A NIG. PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. Diversified Industries Totals CONGLOMERATES Totals CONSTRUCTION/REAL ESTATE Building Construction ARBICO PLC. Building Construction Totals Infrastructure/Heavy Construction JULIUS BERGER NIG. PLC. Infrastructure/Heavy Construction Totals Real Estate Development UACN PROPERTY DEVELOPMENT CO. LIMITED Real Estate Development Totals CONSTRUCTION/REAL ESTATE Totals CONSUMER GOODS Automobiles/Auto Parts DN TYRE & RUBBER PLC Automobiles/Auto Parts Totals Beverages--Brewers/Distillers CHAMPION BREW. PLC. GUINNESS NIG PLC INTERNATIONAL BREWERIES PLC. NIGERIAN BREW. PLC. Beverages--Brewers/Distillers Totals Beverages--Non-Alcoholic 7-UP BOTTLING COMP. PLC. Beverages--Non-Alcoholic Totals Food Products DANGOTE FLOUR MILLS PLC DANGOTE SUGAR REFINERY PLC FLOUR MILLS NIG. PLC. HONEYWELL FLOUR MILL PLC NASCON ALLIED INDUSTRIES PLC Food Products Totals Food Products--Diversified CADBURY NIGERIA PLC. NESTLE NIGERIA PLC. Food Products--Diversified Totals Household Durables VITAFOAM NIG PLC. Household Durables Totals Personal/Household Products P Z CUSSONS NIGERIA PLC. UNILEVER NIGERIA PLC. Personal/Household Products Totals CONSUMER GOODS Totals FINANCIAL SERVICES Banking ACCESS BANK PLC. DIAMOND BANK PLC ECOBANK TRANSNATIONAL INCORPORATED FIDELITY BANK PLC GUARANTY TRUST BANK PLC. JAIZ BANK PLC STERLING BANK PLC. UNITED BANK FOR AFRICA PLC UNION BANK NIG.PLC. UNITY BANK PLC WEMA BANK PLC. Banking Totals Insurance Carriers, Brokers and Services AIICO INSURANCE PLC. CONTINENTAL REINSURANCE PLC CORNERSTONE INSURANCE COMPANY PLC. AXAMANSARD INSURANCE PLC N.E.M INSURANCE CO (NIG) PLC. NIGER INSURANCE CO. PLC. STANDARD TRUST ASSURANCE PLC STANDARD ALLIANCE INSURANCE PLC. UNITY KAPITAL ASSURANCE PLC UNIVERSAL INSURANCE COMPANY PLC WAPIC INSURANCE PLC Insurance Carriers, Brokers and Services Totals Micro-Finance Banks FORTIS MICROFINANCE BANK PLC NPF MICROFINANCE BANK PLC Micro-Finance Banks Totals Mortgage Carriers, Brokers and Services INFINITY TRUST MORTGAGE BANK PLC Mortgage Carriers, Brokers and Services Totals Other Financial Institutions AFRICA PRUDENTIAL REGISTRARS PLC CUSTODIAN AND ALLIED PLC DEAP CAPITAL MANAGEMENT & TRUST PLC FCMB GROUP PLC. STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC Other Financial Institutions Totals

DEALS

in the economy, cost of sales increased by 29.6 per cent from N38.2 billion in 2015 to N49.5 billion in 2016. According to the company, the cost of sales reflects an exchange revaluation loss of N1.7 billion in 2016. However, adopting a cost reduction strategy, marketing and administrative expenses reduced by 16 per cent from

N I G E R I A N MARKET PRICE

QUANTITY TRADED

STO C K VALUE TRADED ( N )

No. of Deals 1 1 2 2 2

Current Price 98.7 135

Quantity Traded 105 100 205 205 205

Value Traded 103,815.41 137,197.80 241,013.21 241,013.21 241,013.21

No. of Deals 11 4 15 No. of Deals 5 5 20

Current Price 44.18 46

Quantity Traded 41,208 5,201 46,409 Quantity Traded 153,470 153,470 199,879

Value Traded 1,887,024.20 240,161.40 2,127,185.60 Value Traded 119,266.60 119,266.60 2,246,452.20

Current Price 0.78

No. of Deals 1 1 4 56 48 110 110

Current Price 0.78 0.66 3.77 0.78 15.1

Quantity Traded 100 500 10,000 4,840,952 350,363 5,201,915 5,201,915

Value Traded 78 315 35,900.00 3,807,735.66 5,054,510.34 8,898,539.00 8,898,539.00

No. of Deals 1 1 No. of Deals 5 5 No. of Deals 65 65 71

Current Price 4.79

Quantity Traded 200 200 Quantity Traded 10,272 10,272 Quantity Traded 1,656,711 1,656,711 1,667,183

Value Traded 958 958 Value Traded 375,647.04 375,647.04 Value Traded 3,493,667.49 3,493,667.49 3,870,272.53

No. of Deals 1 1 No. of Deals 3 64 7 208 282 No. of Deals 18 18 No. of Deals 33 22 32 15 11 113 No. of Deals 25 98 123 No. of Deals 14 14 No. of Deals 26 17 43 594

Current Price 0.5

Quantity Traded 100,000 100,000 Quantity Traded 5,160 288,915 51,123 1,386,914 1,732,112 Quantity Traded 6,947 6,947 Quantity Traded 616,050 345,909 84,482 1,028,600 117,500 2,192,541 Quantity Traded 136,880 133,592 270,472 Quantity Traded 140,811 140,811 Quantity Traded 203,505 43,451 246,956 4,689,839

Value Traded 50,000.00 50,000.00 Value Traded 11,558.40 17,613,098.61 801,955.76 156,078,414.27 174,505,027.04 Value Traded 675,390.11 675,390.11 Value Traded 2,410,595.00 2,125,832.90 1,491,827.07 1,128,310.00 833,010.00 7,989,574.97 Value Traded 1,172,206.13 79,110,103.35 80,282,309.48 Value Traded 289,850.97 289,850.97 Value Traded 2,596,373.80 1,424,799.57 4,021,173.37 267,813,325.94

No. of Deals 167 26 27 69 219 24 1,530 73 33 1 1 2,170 No. of Deals 9 6 2 2 5 1 2 1 2 1 2 33 No. of Deals 1 2 3 No. of Deals 1 1 No. of Deals 31 16 1 68 6 132 254

Current Price 6.6 0.86 9.8 0.84 23.8 1.31 0.7 4.8 4.9 0.83 0.5

Quantity Traded 11,476,994 1,149,393 58,189 8,142,068 20,039,315 1,081,695 25,994,229 5,772,233 251,225 350 800 73,966,491 Quantity Traded 214,682 503,100 200 3,000 44,144 900 5,100 1,000 401,000 1,000 384 1,174,510 Quantity Traded 1,000 25,100 26,100 Quantity Traded 1,000 1,000 Quantity Traded 450,576 325,400 1,000 3,530,043 12,830 8,474,959 12,794,808

Value Traded 76,018,367.81 990,711.98 560,377.50 6,806,919.19 477,105,071.95 1,417,729.20 18,222,090.30 27,705,413.04 1,185,050.41 276.5 408 610,012,415.88 Value Traded 126,611.20 530,295.00 100 4,770.00 36,196.64 450 2,550.00 500 200,500.00 500 192 902,664.84 Value Traded 2,700.00 27,111.00 29,811.00 Value Traded 1,440.00 1,440.00 Value Traded 1,399,304.19 1,084,759.00 500 4,689,332.14 211,696.60 31,174,405.94 38,559,997.87

Current Price 34.83 Current Price 2.12

Current Price 2.35 60.92 16.15 117.5 Current Price 106.5 Current Price 4.1 6.1 18 1.1 7.03 Current Price 9 600 Current Price 2.08 Current Price 12.16 34

Current Price 0.59 1.05 0.5 1.59 0.79 0.5 0.5 0.5 0.5 0.5 0.5 Current Price 2.58 1.08 Current Price 1.47 Current Price 3.05 3.32 0.5 1.31 17 3.7

N13.1 billion in 2015 to N11.6 billion in 2016, just as other income grew by 60 per cent to N124 million from N77.5 million in 2015 Net finance costs reduced by 40 per cent to N1.7 billion in 2016, down from N2.8 billion recorded in 2015. The results show that net finance cost as a function of operating profit improved significantly to 29

E XC H A N G E

per cent in 2016, compared with 62 per cent in 2016, reflecting improvements in cash management. As a result profit before tax jumped from N1.771 billion in 2015 to N4.106 billion in 2016, profit after tax soared by 157 per cent to N3.07 billion in 2016, from N1.19 billion in 2015. Based on the improved

bottom-line, the directors have recommended a dividend of 10 kobo per share, which is higher than the five kobo per share paid in 2015. Going forward, Unilever Nigeria assured shareholders of its efforts to ensure a sustained and steady growth in the company’s operations to achieve better returns on their investments.

1 5 / 0 2 / 2 0 1 7

MAIN BOARD FINANCIAL SERVICES Totals HEALTHCARE Healthcare Providers UNION DIAGNOSTIC & CLINICAL SERVICES PLC Healthcare Providers Totals Pharmaceuticals FIDSON HEALTHCARE PLC GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC PHARMA-DEKO PLC. Pharmaceuticals Totals HEALTHCARE Totals ICT IT Services TRIPPLE GEE AND COMPANY PLC. IT Services Totals Processing Systems CHAMS PLC Processing Systems Totals ICT Totals INDUSTRIAL GOODS Building Materials ASHAKA CEM PLC BERGER PAINTS PLC CAP PLC CEMENT CO. OF NORTH.NIG. PLC MEYER PLC. LAFARGE AFRICA PLC. Building Materials Totals Electronic and Electrical Products CUTIX PLC. Electronic and Electrical Products Totals Packaging/Containers BETA GLASS PLC. GREIF NIGERIA PLC Packaging/Containers Totals INDUSTRIAL GOODS Totals NATURAL RESOURCES Metals ALUMINIUM EXTRUSION IND. PLC. Metals Totals NATURAL RESOURCES Totals OIL AND GAS Energy Equipment and Services JAPAUL OIL & MARITIME SERVICES PLC Energy Equipment and Services Totals Integrated Oil and Gas Services OANDO PLC Integrated Oil and Gas Services Totals Petroleum and Petroleum Products Distributors CONOIL PLC ETERNA PLC. FORTE OIL PLC. MOBIL OIL NIG PLC. MRS OIL NIGERIA PLC. TOTAL NIGERIA PLC. Petroleum and Petroleum Products Distributors Totals Exploration and Production SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD Exploration and Production Totals OIL AND GAS Totals SERVICES Advertising AFROMEDIA PLC Advertising Totals Courier/Freight/Delivery RED STAR EXPRESS PLC TRANS-NATIONWIDE EXPRESS PLC. Courier/Freight/Delivery Totals Hotels/Lodging TOURIST COMPANY OF NIGERIA PLC. TRANSCORP HOTELS PLC Hotels/Lodging Totals Printing/Publishing LEARN AFRICA PLC STUDIO PRESS (NIG) PLC. Printing/Publishing Totals Transport-Related Services NEWREST ASL NIGERIA PLC NIGERIAN AVIATION HANDLING COMPANY PLC Transport-Related Services Totals Support and Logistics CAVERTON OFFSHORE SUPPORT GRP PLC C & I LEASING PLC. Support and Logistics Totals SERVICES Totals EQTY Board Totals Daily Summary (Equities) Activity Summary on Board ASeM FINANCIAL SERVICES Mortgage Carriers, Brokers and Services OMOLUABI MORTGAGE BANK PLC Mortgage Carriers, Brokers and Services Totals FINANCIAL SERVICES Totals ASeM Board Totals Daily Summary (Equities) Activity Summary on Board PREMIUM FINANCIAL SERVICES Banking ZENITH INTERNATIONAL BANK PLC Banking Totals Other Financial Institutions FBN HOLDINGS PLC Other Financial Institutions Totals FINANCIAL SERVICES Totals INDUSTRIAL GOODS Building Materials DANGOTE CEMENT PLC Building Materials Totals INDUSTRIAL GOODS Totals PREMIUM Board Totals Equity Activity Totals

DEALS

MARKET PRICE

2,461 No. of Deals 1 1 No. of Deals 13 12 4 6 2 37 38

Current Price 0.5

No. of Deals 1 1 No. of Deals 1 1 2

Current Price 1.3

No. of Deals 7 2 7 11 1 20 48 No. of Deals 15 15 No. of Deals 3 1 4 67

Current Price 11.25 6.08 29.6 4.28 0.87 42

Current Price 1.01 14.75 1 0.66 1.95

Current Price 0.5

Current Price 1.45 Current Price 36.45 9.69

QUANTITY TRADED

VALUE TRADED ( N)

87,962,909

649,506,329.59

Quantity Traded 738,000 738,000 Quantity Traded 5,177,490 110,135 5,015 11,000 900 5,304,540 6,042,540

Value Traded 369,000.00 369,000.00 Value Traded 5,178,570.00 1,551,318.88 4,770.10 7,063.20 1,836.00 6,743,558.18 7,112,558.18

Quantity Traded 2,438 2,438 Quantity Traded 100,000 100,000 102,438

Value Traded 3,023.12 3,023.12 Value Traded 50,000.00 50,000.00 53,023.12

Quantity Traded 11,405 2,997 1,215,127 141,429 300 23,390 1,394,648 Quantity Traded 792,168 792,168 Quantity Traded 70,030 100 70,130 2,256,946

Value Traded 130,100.00 17,322.66 35,970,022.30 604,431.24 249 987,177.40 37,709,302.60 Value Traded 1,142,840.30 1,142,840.30 Value Traded 2,552,593.50 1,016.00 2,553,609.50 41,405,752.40

No. of Deals 1 1 1

Current Price 9.75

Quantity Traded 2,000 2,000 2,000

Value Traded 18,540.00 18,540.00 18,540.00

No. of Deals 2 2 No. of Deals 76 76 No. of Deals 16 20 229 20 1 16 302 No. of Deals 2 2 382

Current Price 0.5

Quantity Traded 18,000 18,000 Quantity Traded 1,722,434 1,722,434 Quantity Traded 35,100 284,436 905,220 12,017 100 8,826 1,245,699 Quantity Traded 5,150 5,150 2,991,283

Value Traded 9,000.00 9,000.00 Value Traded 8,234,046.51 8,234,046.51 Value Traded 1,190,988.64 886,497.72 56,399,639.77 3,215,511.70 3,708.00 2,400,901.12 64,097,246.95 Value Traded 2,045,501.50 2,045,501.50 74,385,794.96

No. of Deals 1 1 No. of Deals 2 3 5 No. of Deals 1 3 4 No. of Deals 1 1 2 No. of Deals 7 6 13 No. of Deals 14 1 15 40 3,786

Current Price 0.5

Quantity Traded 55,000 55,000 Quantity Traded 575 29,090 29,665 Quantity Traded 1,000 13,000 14,000 Quantity Traded 500 1,000 1,500 Quantity Traded 101,050 46,801 147,851 Quantity Traded 274,973 1,000 275,973 523,989 111,640,921

Value Traded 27,500.00 27,500.00 Value Traded 2,645.75 26,607.80 29,253.55 Value Traded 3,550.00 61,623.60 65,173.60 Value Traded 355 2,190.00 2,545.00 Value Traded 275,866.50 114,662.45 390,528.95 Value Traded 242,233.86 500 242,733.86 757,734.96 1,056,068,322.88

Current Price 4.71 Current Price 35.49 3.24 62.5 275.99 39.03 270 Current Price 380

Current Price 4.4 0.91 Current Price 3.65 4.98 Current Price 0.68 2.19 Current Price 2.73 2.57 Current Price 0.9 0.5

No. of Deals 1 1 1 1

Current Price 0.9

Quantity Traded 100,000 100,000 100,000 100,000

Value Traded 90,000.00 90,000.00 90,000.00 90,000.00

No. of Deals 279 279 No. of Deals 140 140 419

Current Price 15.01

Quantity Traded 48,467,690 48,467,690 Quantity Traded 1,684,690 1,684,690 50,152,380

Value Traded 727,624,234.12 727,624,234.12 Value Traded 5,345,599.68 5,345,599.68 732,969,833.80

No. of Deals 10 10 10 429 4,216

Current Price 169

Quantity Traded 45,766 45,766 45,766 50,198,146 161,939,067

Value Traded 7,736,239.30 7,736,239.30 7,736,239.30 740,706,073.10 1,796,864,395.98

Current Price 3.2

MONDAY, MArch 27, 2017 • T H I S D AY

MARKET NEWS

Stanbic IBTC Holdings Leads in Profit After Tax Growth Goddy Egene Stanbic IBTC Holdings Plc has recorded the highest profit growth among the four banks that have released their financial results for the year ended December 31, 2016. Access Bank Plc, GTBank Plc, United Bank for Africa Plc and Zenith Bank Plc are the other banks that have released their results. However, in terms of growth in profit after tax

(PAT), Stanbic IBTC led with 51 per cent as its PAT rose to N28.52 billion in 2016, from N18.891 billion in 2015. GTBank grew its PAT by 32 per cent from N99.4 billion to N132 billion, while Zenith Bank Plc recorded a growth of 23 per cent in PAT, rising from N105 billion to N129.6 billion. The PAT of UBA rose by 21 per cent to N72.6 billion in 2016 from N59.6 billion in 2015, while Access Bank

A Mutual fund (Unit Trust) is an investment vehicle managed by a SEC (Securities and Exchange Commission) registered Fund Manager. Investors with similar objectives buy units of the Fund so that the Fund Manager can buy securities that willl generate their desired return. An ETF (Exchange Traded Fund) is a type of fund which owns the assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides ownership of those assets into shares. Investors can buy these ‘shares’ on the

Plc recorded a PAT of N71.4 billion, up by 8.4 per cent from N65.9 billion posted in 2015. A further look at the results of Stanbic IBTC showed that the financial institution recorded gross earnings of N156.425 billion in 2016. showing a growth of 12 per cent compared with N140 billion in 2015. Net interest income rose by 31 per cent from N43.86 billion to N57.85 billion, while income before credit

floor of the Nigerian Stock Exchange. A REIT (Real Estate Investment Trust) is an investment vehicle that allows both small and large investors to part-own real estate ventures (eg. Offices, Houses, Hospitals) in proportion to their investments. The assets are divided into shares that are traded on the Nigerian Stock Exchange. GUIDE TO DATA: Date: All fund prices are quoted in Naira as at 23-Mar-2017, unless otherwise stated.

impairment stood at N124.05 billion, up from N100.6 billion in 2015. But credit impairment charges rose by 33 per cent to N19.803 billion, from N14.93 billion. Operating expenses rose by 11.2 per cent to N69 billion, from N62 billion. However, the higher impairment charges notwithstanding, Stanbic IBTC Holdings ended the year with significant growth in profit before tax, which

rose by 57 from N23.65 billion to N37.209 billion. In the same vein, PAT rose by 51 per cent from N18.891 billion to N28.52 billion. The board of directors has recommended a dividend of five kobo per share. Analysing the fourth quarter (Q4) results, analysts at FBN Quest said the performance was boosted by a significant other comprehensive income(OCI) of N4 billion compared with a loss of N87

million prior year. “Returning to the PBT, the growth was driven by a marked growth of 72 per cent in net interest income: interest income grew 31 per cent while interest expense fell 17 per cent. This positive result more than compensated for a weak non-interest income out turn , as well as increases in provisions (+85 per cent) and operating expenses (+15 per cent),” FBN Quest said.

Offer price: The price at which units of a trust or ETF are bought by investors. Bid Price: The price at which Investors redeem (sell) units of a trust or ETF. Yield/Total Return: Denotes the total return an investor would have earned on his investment. Money Market Funds report Yield while others report Year- to-date Total Return. NAV: Is value per share of the real estate assets held by a REIT on a specific date.

DAILY PRICE LIST FOR MUTUAL FUNDS, REITS and ETFS MUTUAL FUNDS / UNIT TRUSTS AFRINVEST ASSET MANAGEMENT LTD aaml@afrinvest.com Web: www.afrinvest.com; Tel: +234 1 270 1680 Fund Name Bid Price Offer Price Yield / T-Rtn Afrinvest Equity Fund 128.35 128.83 1.05% Nigeria International Debt Fund 221.03 221.73 2.69% ALTERNATIVE CAPITAL PARTNERS LTD info@acapng.com Web: www.acapng.com, Tel: +234 1 291 2406, +234 1 291 2868 Fund Name Bid Price Offer Price Yield / T-Rtn ACAP Canary Growth Fund 0.70 0.71 -0.14% AIICO CAPITAL LTD ammf@aiicocapital.com Web: www.aiicocapital.com, Tel: +234-1-2792974 Fund Name Bid Price Offer Price Yield / T-Rtn AIICO Money Market Fund 100.00 100.00 17.89% ARM INVESTMENT MANAGERS LTD enquiries@arminvestmentcenter.com Web: www.arm.com.ng; Tel: 0700 CALLARM (0700 225 5276) Fund Name Bid Price Offer Price Yield / T-Rtn ARM Aggressive Growth Fund 12.40 12.78 0.47% ARM Discovery Fund 291.62 300.42 1.55% ARM Ethical Fund 22.17 22.84 -0.77% ARM Money Market Fund 1.00 1.00 15.86% AXA MANSARD INVESTMENTS LIMITED investmentcare@axamansard.com Web: www.axamansard.com; Tel: +2341-4488482 Fund Name Bid Price Offer Price Yield / T-Rtn AXA Mansard Equity Income Fund 105.72 106.46 0.61% AXA Mansard Money Market Fund 1.00 1.00 16.75% CHAPELHILL DENHAM MANAGEMENT LTD investmentmanagement@chapelhilldenham.com Web: www.chapelhilldenham.com, Tel: +234 461 0691 Fund Name Bid Price Offer Price Yield / T-Rtn Nigeria Global Investment Fund 2.22 2.28 2.27% Paramount Equity Fund 9.40 9.64 0.42% Women's Investment Fund 86.82 89.04 2.63% CORDROS ASSET MANAGEMENT LIMITED assetmgtteam@cordros.com Web: www.cordros.com, Tel: 019036947 Fund Name Bid Price Offer Price Yield / T-Rtn Cordros Money Market Fund 100.00 100.00 18.55% FBN CAPITAL ASSET MANAGEMENT LTD invest@fbnquest.com Web: www.fbnquest.com; Tel: +234-81 0082 0082 Fund Name Bid Price Offer Price Yield / T-Rtn FBN Fixed Income Fund 1,133.07 1,134.26 3.92% FBN Heritage Fund 112.40 113.15 0.73% FBN Money Market Fund 100.00 100.00 17.93% FBN Nigeria Eurobond (USD) Fund - Institutional $107.16 $107.81 2.96% FBN Nigeria Eurobond (USD) Fund - Retail $106.88 $107.53 3.40% FBN Nigeria Smart Beta Equity Fund 112.83 114.28 0.13% FIRST CITY ASSET MANAGEMENT LTD fcamhelpdesk@fcmb.com Web: www.fcamltd.com; Tel: +234 1 462 2596 Fund Name Bid Price Offer Price Yield / T-Rtn Legacy Equity Fund 0.95 0.96 1.60% Legacy Short Maturity (NGN) Fund 2.66 2.66 3.37% FSDH ASSET MANAGEMENT LTD coralfunds@fsdhgroup.com Web: www.fsdhaml.com; Tel: 01-270 4884-5; 01-280 9740-1 Fund Name Bid Price Offer Price Yield / T-Rtn Coral Growth Fund 2,210.44 2,236.10 0.05% Coral Income Fund 2,191.99 2,191.99 4.17% GREENWICH ASSET MANAGEMENT LIMITED assetmanagement@gtlgroup.com Web: www.gtlgroup.com ; Tel: +234 1 4619261-2 Fund Name Bid Price Offer Price Yield / T-Rtn Greenwich Plus Money Market Fund 100.00 100.00 16.63% INVESTMENT ONE FUNDS MANAGEMENT LTD enquiries@investment-one.com Web: www.investment-one.com; Tel: +234 812 992 1045,+234 1 448 8888 Fund Name Bid Price Offer Price Yield / T-Rtn Abacus Money Market Fund 1.00 1.00 16.77% Vantage Balanced Fund 1.70 1.72 1.30% Vantage Guaranteed Income Fund 1.00 1.00 15.09%

LOTUS CAPITAL LTD fincon@lotuscapitallimited.com Web: www.lotuscapitallimited.com; Tel: +234 1-291 4626 / +234 1-291 4624 Fund Name Bid Price Offer Price Yield / T-Rtn Lotus Halal Investment Fund 1.02 1.03 2.84% Lotus Halal Fixed Income Fund 1,027.41 1,027.41 2.44% MERISTEM WEALTH MANAGEMENT LTD info@meristemwealth.com Web: http://www.meristemwealth.com/funds/ ; Tel: +234 1-4488260 Fund Name Bid Price Offer Price Yield / T-Rtn Meristem Equity Market Fund 9.72 9.80 0.55% Meristem Money Market Fund 10.00 10.00 16.58% PAC ASSET MANAGEMENT LTD info@pacassetmanagement.com Web: www.pacassetmanagement.com/mutualfunds; Tel: +234 1 271 8632 Fund Name Bid Price Offer Price Yield / T-Rtn PACAM Balanced Fund 1.08 1.10 2.97% PACAM Fixed Income Fund 10.44 10.48 0.32% PACAM Money Market Fund 10.00 10.00 13.14% SCM CAPITAL LIMITED info@scmcapitalng.com Web: www.scmcapitalng.com; Tel: +234 1-280 2226,+234 1- 280 2227 Fund Name Bid Price Offer Price Yield / T-Rtn SCM Capital Frontier Fund 110.94 111.76 8.92% SFS CAPITAL NIGERIA LTD investments@sfsnigeria.com Web: www.sfsnigeria.com, Tel: +234 (01) 2801400 Fund Name Bid Price Offer Price Yield / T-Rtn SFS Fixed Income Fund 1.27 1.27 2.26% STANBIC IBTC ASSET MANAGEMENT LTD assetmanagement@stanbicibtc.com Web: www.stanbicibtcassetmanagement.com; Tel: +234 1 280 1266; 0700 MUTUALFUNDS Fund Name Bid Price Offer Price Yield / T-Rtn Stanbic IBTC Balanced Fund 1,846.45 1,856.19 0.82% Stanbic IBTC Bond Fund 155.56 155.56 1.04% Stanbic IBTC Ethical Fund 0.76 0.76 -1.30% Stanbic IBTC Guaranteed Investment Fund 192.55 192.55 3.03% Stanbic IBTC Iman Fund 128.73 130.38 -0.85% Stanbic IBTC Money Market Fund 100.00 100.00 17.55% Stanbic IBTC Nigerian Equity Fund 7,376.86 7,458.51 -2.75% UNITED CAPITAL ASSET MANAGEMENT LTD unitedcapitalplcgroup.com Web: www.unitedcapitalplcgroup.com; Tel: +234 803 306 2887 Fund Name Bid Price Offer Price Yield / T-Rtn United Capital Balanced Fund 1.15 1.16 7.80% United Capital Bond Fund 1.28 1.28 15.80% United Capital Equity Fund 0.65 0.66 0.89% United Capital Money Market Fund 1.14 1.14 11.37% ZENITH ASSETS MANAGEMENT LTD info@zenith-funds.com Web: www.zenith-funds.com; Tel: +234 1-2784219 Fund Name Bid Price Offer Price Yield / T-Rtn Zenith Equity Fund 9.93 10.11 3.14% Zenith Ethical Fund 11.18 11.29 2.48% Zenith Income Fund 17.34 17.34 4.97%

REITS

NAV Per Share

Yield / T-Rtn

11.41 125.28

1.01% 1.06%

Bid Price

Offer Price

Yield / T-Rtn

8.01 72.48

8.11 73.83

-8.72% -4.36%

Fund Name FSDH UPDC Real Estate Investment Fund SFS Skye Shelter Fund

EXCHANGE TRADED FUNDS

Fund Name Lotus Halal Equity Exchange Traded Fund Stanbic IBTC ETF 30 Fund

VETIVA FUND MANAGERS LTD Web: www.vetiva.com; Tel: +234 1 453 0697

Fund Name Vetiva Banking Exchange Traded Fund Vetiva Consumer Goods Exchange Traded Fund Vetiva Griffin 30 Exchange Traded Fund Vetiva Industrial Goods Exchange Traded Fund Vetiva S&P Nigeria Sovereign Bond Exchange Traded Fund

funds@vetiva.com Bid Price

Offer Price

Yield / T-Rtn

2.77 6.20 11.70 15.01 128.05

2.81 6.28 11.80 15.21 130.05

0.71% -11.74% -2.46% -5.86% -1.40%

The value of investments and the income from them may fall as well as rise. Past performance is a guide and not an indication of future returns. Fund prices published in this edition are also available on each fund manager’s website and FMAN’s website at www.fman.com.ng. Fund prices are supplied by the operator of the relevant fund and are published for information purposes only.

T H I S D AY MONDAY MARCH 27, 2017

MONDAY, MARCH 27, 2017 • T H I S D AY

CITYSTRINGS

Acting Features Editor: Charles Ajunwa Email charles.ajunwa@thisdaylive.com

Benin City was described as ‘wealthy and industrious, well-governed and richly decorated’. Illustration: Decompiling Dapper: A Preliminary Search for Evidence

Benin: Mighty Medieval Capital Now Lost Without Trace The London-based Guardian newspaper writes on the golden era of Benin City that has been lost without a trace

ith its mathematical layout and earthworks longer than the Great Wall of China, Benin City was one of the best planned cities in the world when London was a place of ‘thievery and murder’. So why is nothing left? This is the story of a lost medieval city you’ve probably never heard about. Benin City, originally known as Edo, was once the capital of a pre-colonial African empire located in what is now Southern Nigeria. The Benin empire was one of the oldest and most highly developed states in West Africa, dating back to the 11th century. The Guinness Book of Records (1974 edition) described the walls of Benin City and its surrounding kingdom as the world’s largest earthworks carried out prior to the mechanical era. According to estimates by the New Scientist’s Fred Pearce, Benin City’s walls were at one point “four times longer than the Great Wall of China, and consumed a hundred times more material than the Great Pyramid of Cheops.” Situated on a plain, Benin City was enclosed by massive walls in the South and deep ditches in the North. Beyond the city walls, numerous further walls were erected that separated the surroundings of the capital into around 500

distinct villages. Pearce writes that these walls “extended for some 16,000 km in all, in a mosaic of more than 500 interconnected settlement boundaries. They covered 6,500 sq km and were all dug by the Edo people … They took an estimated 150 million hours of digging to construct, and are perhaps the largest single archaeological phenomenon on the planet.” Barely any trace of these walls exist today. Benin City was also one of the first cities to

The early foreign explorers’ descriptions of Benin City portrayed it as a place free of crime and hunger, with large streets and houses kept clean; a city filled with courteous, honest people, and run by a centralised and highly sophisticated bureaucracy

have a semblance of street lighting. Huge metal lamps, many feet high, were built and placed around the city, especially near the king’s palace. Fuelled by palm oil, their burning wicks were lit at night to provide illumination for traffic to and from the palace. When the Portuguese first “discovered” the city in 1485, they were stunned to find this vast kingdom made of hundreds of interlocked cities and villages in the middle of the African jungle. They called it the “Great City of Benin”, at a time when there were hardly any other places in Africa the Europeans acknowledged as a city. Indeed, they classified Benin City as one of the most beautiful and best planned cities in the world. In 1691, the Portuguese ship captain Lourenco Pinto observed: “Great Benin, where the king resides, is larger than Lisbon; all the streets run straight and as far as the eye can see. The houses are large, especially that of the king, which is richly decorated and has fine columns. The city is wealthy and industrious. It is so well governed that theft is unknown and the people live in such security that they have no doors to their houses.” In contrast, London at the same time is described by Bruce Holsinger, professor of English at the University of Virginia, as being a city of “thievery, prostitution, murder, bribery

and a thriving black market made the medieval city ripe for exploitation by those with a skill for the quick blade or picking a pocket.” African fractals Benin City’s planning and design were done according to careful rules of symmetry, proportionality and repetition now known as fractal design. The mathematician Ron Eglash, author of African Fractals – which examines the patterns underpinning architecture, art and design in many parts of Africa – notes that the city and its surrounding villages were purposely laid out to form perfect fractals, with similar shapes repeated in the rooms of each house, and the house itself, and the clusters of houses in the village in mathematically predictable patterns. As he puts it: “When Europeans first came to Africa, they considered the architecture very disorganised and thus primitive. It never occurred to them that the Africans might have been using a form of mathematics that they hadn’t even discovered yet.” At the centre of the city stood the king’s court, from which extended 30 very straight, broad streets, each about 120-ft wide. These main streets, which ran at right angles to each other, had underground drainage made of a sunken impluvium with an outlet to carry away storm water. Many narrower side and intersecting

MONDAY, MARCH 27, 2017 • T H I S D AY

CITYSTRINGS

View along a street in the royal quarter of Benin City, 1897. PHOTO The British MuseumTrustees of the British Museum

Curious tourists visiting Edo State in Nigeria are often shown places that might once have been part of the ancient city – but its walls and moats are nowhere to be seen. Perhaps a section of the great city wall, one of the world’s largest manmade monuments, now lies bruised and battered, neglected and forgotten in the Nigerian bush

A drawing of Benin City made by a British officer in 1897

streets extended off them. In the middle of the streets were turfs on which animals fed. “Houses are built alongside the streets in good order, the one close to the other,” writes the 17th-century Dutch visitor Olfert Dapper. “Adorned with gables and steps … they are usually broad with long galleries inside, especially so in the case of the houses of the nobility, and divided into many rooms which are separated by walls made of red clay, very well erected.” Dapper adds that wealthy residents kept these walls “as shiny and smooth by washing and rubbing as any wall in Holland can be made with chalk, and they are like mirrors. The upper storeys are made of the same sort of clay. Moreover, every house is provided with a well for the supply of fresh water.” Family houses were divided into three sections: the central part was the husband’s quarters, looking towards the road; to the left the wives’ quarters (oderie), and to the right the young men’s quarters (yekogbe). Daily street life in Benin City might have consisted of large crowds going though even larger streets, with people colourfully dressed – some in white, others in yellow, blue or green – and the city captains acting as judges to resolve lawsuits, moderating debates in the numerous galleries, and arbitrating petty conflicts in the markets. The early foreign explorers’ descriptions of Benin City portrayed it as a place free of crime and hunger, with large streets and houses kept clean; a city filled with courteous, honest people, and run by a centralised and highly sophisticated bureaucracy. The city was split into 11 divisions, each a smaller replication of the king’s court, comprising a sprawling series of compounds containing accommodation, workshops and public buildings – interconnected by innumerable doors and passageways, all richly decorated with the art that made Benin famous. The city was literally covered in it. The exterior walls of the courts and compounds were decorated with horizontal ridge designs (agben) and clay carvings portraying animals,

A plaque showing an entrance to the palace of the Oba of Benin.

warriors and other symbols of power – the carvings would create contrasting patterns in the strong sunlight. Natural objects (pebbles or pieces of mica) were also pressed into the wet clay, while in the palaces, pillars were covered with bronze plaques illustrating the victories and deeds of former kings and nobles. At the height of its greatness in the 12th century – well before the start of the European Renaissance – the kings and nobles of Benin City patronised craftsmen and lavished them with gifts and wealth, in return for their depiction of the kings’ and dignitaries’ great exploits in intricate bronze sculptures. “These works from Benin are equal to the very finest examples of European casting technique,” wrote Professor Felix von Luschan, formerly of the Berlin Ethnological Museum. “Benvenuto

PHOTO ALAMY

Celini could not have cast them better, nor could anyone else before or after him. Technically, these bronzes represent the very highest possible achievement.” What impressed the first visiting Europeans most was the wealth, artistic beauty and magnificence of the city. Immediately European nations saw the opportunity to develop trade with the wealthy kingdom, importing ivory, palm oil and pepper – and exporting guns. At the beginning of the 16th century, word quickly spread around Europe about the beautiful African city, and new visitors flocked in from all parts of Europe, with ever glowing testimonies, recorded in numerous voyage notes and illustrations. Lost world Now, however, the great Benin City is lost

to history. Its decline began in the 15th century, sparked by internal conflicts linked to the increasing European intrusion and slave trade at the borders of the Benin empire. Then in 1897, the city was destroyed by British soldiers – looted, blown up and burnt to the ground. My great grandparents were among the many who fled following the sacking of the city; they were members of the elite corps of the king’s doctors. Nowadays, while a modern Benin City has risen on the same plain, the ruins of its former, grander namesake are not mentioned in any tourist guidebook to the area. They have not been preserved, nor has a miniature city or touristic replica been made to keep alive the memory of this great ancient city. A house composed of a courtyard in Obasagbon, known as Chief Enogie Aikoriogie’s house – probably built in the second half of the 19th century – is considered the only vestige that survives from Benin City. The house possesses features that match the horizontally fluted walls, pillars, central impluvium and carved decorations observed in the architecture of ancient Benin. Curious tourists visiting Edo State in Nigeria are often shown places that might once have been part of the ancient city – but its walls and moats are nowhere to be seen. Perhaps a section of the great city wall, one of the world’s largest man-made monuments, now lies bruised and battered, neglected and forgotten in the Nigerian bush. A discontented Nigerian puts it this way: “Imagine if this monument was in England, USA, Germany, Canada or India? It would be the most visited place on earth, and a tourist mecca for millions of the world’s people. A money-spinner worth countless billions in annual tourist revenue.” Instead, if you wish to get a glimpse into the glorious past of the ancient Benin kingdom – and a better understanding of this groundbreaking city – you are better off visiting the Benin Bronze Sculptures section of the British Museum in central London.

T H I S D AY MONDAY MARCH 27, 2017

MONDAY MARCH 27, 2017 • T H I S D AY

INTERNATIONAL

email:foreigndesk@thisdaylive.com

Russia Protests: Opposition Leader, Navalny Arrested Russia’s main opposition leader, Alexei Navalny, has been arrested at an anti-corruption protest he organised in the capital, Moscow. Thousands of people have joined rallies nationwide, calling for the resignation of Prime Minister Dmitry Medvedev over corruption allegations. Most of the marches were illegal, organised without official permission. Police have been deployed in large numbers, and dozens of other protesters have been detained across the country.

TV pictures showed demonstrators chanting “Down with [Russian President Vladimir] Putin!”, “Russia without Putin!” and “Putin is a thief!”. Correspondents say the marches appear to be the biggest since antigovernment demonstrations in 2011/2012. Navalny was detained as he arrived to join the rally in central Moscow. Protesters then tried to prevent a police van from taking him away. In a tweet after his detention, he urged fellow protesters to continue with

the demonstration. “Guys, I’m fine. No need to fight to get me out. Walk along Tverskaya [Moscow main street]. Our topic of the day is the fight against corruption,” he said (in Russian). Navalny said staff at his office had also been detained for streaming the protests live online without permission. Demonstrations were also held in Sa i n t Pe tersburg, Vladivostok, Novosibirsk, To m s k and several other cities, w h e re a r re s t s h a d a l s o been reported.

Merkel Set for Success in Saarland BellwetherVote for Germany Exit polls suggest German Chancellor Angela Merkel’s centre-right party has won state elections in Saarland, ahead of September’s national vote. Her Christian Democrats (CDU) are on course to take 41%, comfortably seeing off a challenge by the Social Democrats (SPD), projected to secure 29.5% Mrs Merkel is hoping for a fourth term as chancellor.

The centre-left SPD has seen a recent surge in popularity under new leader Martin Schulz. Polls closed at 16:00 GMT in Saarland - a small southwestern state with one million inhabitants. The state is currently governed by a coalition of the CDU and SPD as junior partner, mirroring the national government. A Deutschlandtrend poll

for national TV on 24 March suggested the CDU and the SPD were on level pegging nationally, but that voters favoured Mr Schulz to lead the next government in Berlin. The former president of the European Parliament took up the post as leader of the SPD in January. He is credited with a revival in popular support for his party.

Osakwe: There’s No Cause for Alarm over US-Nigeria Trade Relations Damilola Oyedele in Abuja The Trade Advisor to the Minister of Industry, Trade and Investment and Nigeria’s Chief Negotiator, Ambassador Chiedu Osakwe has said there is no cause for alarm or anxiety, regarding the fate or direction, of the United States- Nigeria Trade Relations under the administration of President Donald Trump. Speaking with Arise News Network, the THISDAY sister broadcast arm, yesterday, Osakwe said Nigeria’s trade and economic relations with the US remain very strong and stable. He was speaking against the backdrop of reports that no single African delegate to the annual US-Africa Trade summit, was granted visa for a three day conference held at the University of South California.

The African Global Economic and Development Summit brings together business leaders from Africa with their counterparts in the US, to foster sustainable trade relationships and partnerships. Osakwe, who disclosed that he did not have details of the trade summit, or circumstances which led to the denial of visas to the African delegates, disagreed that the development is an indication of what to expect of trade relations under the Trump administration. “Our relationship with the US remains a very good relationship. The relations between Nigeria and the US with regards to trade and economics remain on very solid ground. The Minister of Trade, Industry and Investment, Okechukwu Enelemah and I attended a meeting in Washington about a month ago, to have engagement

with some of the incumbents of the Trump administration, and with the bureaucrats, the very city officials there,” he said. “We have at this moment, no cause for anxiety regards Nigeria’s trade relationships with the US,” Osakwe added. Osakwe, speaking on the state of the Nigerian economy, noted that the economy is on the path to recovery, under the cerebral leadership of Vice President Yemi Osinbajo, who heads the Economic Management Team. “We have a first class finance minister, we have a central bank that operates based on the work of the monetary policy committee, and in all this, the obvious item is the very cerebral leadership of provided by the Vice President, who is the head of the Economic Management Team,” he said.

Trump Attacks Conservative Lawmakers over Health Bill President Donald Trump on Sunday attacked conservative lawmakers for the failure of the Republican bill to replace Barack Obama’s health care law as his aides pledged to court moderate Democrats on upcoming initiatives from health care to tax cuts. On Twitter on Sunday, Trump

warned:“Democrats are smiling in D.C. that the Freedom Caucus, with the help of Club For Growth and Heritage, have saved Planned Parenthood & Ocare!” The Freedom Caucus is a hard-right group of House members who were largely responsible for blocking the bill to

undo the Affordable Care Act or “Obamacare.”The bill was pulled from the House floor Friday in a humiliating political defeat for the president. Trump initially focused his blame on Democrats for the failure and predicted a dire future for the current law.

T H I S D AY MONDAY MARCH 27, 2017

MONDAY, MARCH 27, 2017• T H I S D AY

NEWS

News Editor Davidson Iriekpen Email davidson.iriekpen@thisdaylive.com, 08111813081

Folarin Williams: It’s a Big Sacrifice for Lawyers to Go to the Bench Ejiofor Alike Lagos-based lawyer, Mr. Folarin Williams, yesterday stated that it was a huge sacrifice for outstanding lawyers to accept to take up appointments at the bench. The Chief Justice of Nigeria (CJN), Justice Walter Onnoghen, had invited the Bar to nominate lawyers for appointment as Supreme Court justices, following which the Nigerian Bar Association (NBA) shortlisted nine persons, including six SANs. But Williams, who spoke on Arise Television yesterday, argued that practicing lawyers who are appointed to the bench would be making a huge sacrifice for the country. He said that was the reason why many outstanding lawyers would not like to be appointed into the bench. On his part, Williams said he would prefer to make his own contribution to the country’s legal system from outside the bench, adding that he would not accept appointment into the judiciary. Williams however, supported

the move by the CJN to appoint lawyers into the Supreme Court, saying it would help to tap from the legal expertise of outstanding lawyers in the country. According to him, the move would broaden the source of legal knowledge in the country, adding that in some jurisdictions, there is concept of deputy judge. Williams insisted that the choice of appellate judges should not be restricted to those who are in the High courts. “As long as they are able to get over the selection hurdles, the sooner the better. Obviously, it has to be a structured approach. “I prefer acting as arbitrator. That is less restricting. I think each and every one of us has to know how best to contribute. To me personally, my best contribution is outside the bench,” he added. Also speaking on Arise TV, another lawyer, Dr. Wale Babalakin (SAN), however, argued that lawyers who want to be appointed into the judiciary should start from the High Courts and advised the federal government to make the High Courts very attractive for outstanding lawyers, especially

Goldman Sachs Warns of Another Oil Glut in 2018 Chineme Okafor in Abuja with agency report Leading global investment banking firm, Goldman Sachs, had warned that another downturn in global oil prices could come over the next three years, sparked by a new wave of supply stemming from mega projects that were planned years ago. It stated that these projects cost billions of dollars and take many years to bring online, and that many of them were initiated back when oil prices traded at $100 per barrel. “2017 to 2019 is likely to see the largest increase in mega projects production in history, as the record 2011-13 capex commitment yields fruit. This long-lead-time wave of projects and a short-cycle revival, led by United States shales, could create a material oversupply in 2018-19,” Goldman Sachs said in a note. Reported by oilprice.com, Goldman identified a handful of projects in Brazil, Russia, Canada and the Gulf of Mexico that will reach completion and add to global supply between 2017 and 2019. It explained that combined with the new shale output, these projects could add another one million barrels per day next year to the global oil stock. The investment bank also warned that the markets have become overly optimistic on oil prices since the Organisation of Petroleum Exporting Countries (OPEC) deal was announced nearly four months ago, adding that shale output could come in higher than expected this year, thus disappointing those

expecting higher oil prices. Similarly, reports indicate most European integrated companies are using a working assumption for their budgets that oil prices will average $60 per barrel in 2017, with an upper end bound of $80 per barrel between 2018 and 2020, all of which are in sharp contrast to Goldman’s projections of oversupply for the next three years. According to another research note shared by investment bank, Jefferies, OPEC’s market intervention which has reportedly taken about one million barrels per day of oil off the market has not succeeded in reversing a bearish trend for oil inventories. While oil prices are heading down again on swelling United States crude oil inventories, with Brent dropping below $50 per barrel for the first time this year, Jefferies stated that: “OPEC’s market intervention has not yet resulted in significant visible inventory draw-downs, and the financial markets have lost patience.” Also commenting on the development, Ole Hansen, Head of Commodity Strategy at Saxo Bank said: “OPEC has used up most of its arsenal of verbal weapons to support the market. One hundred per cent compliance by all is the only tool they have left, and on that account they are struggling.” With the OPEC deal at its midway point in execution, experts indicate that focus was already shifting towards an extension of the cuts through the end of the year.

those in the rank of SANs. Babalakin argued that the High Courts should be made attractive for outstanding lawyers who could be chosen from among the SANs. He recalled that between 1950 and 1975, most cases had ended at the High Courts

because they delivered judgment with high level of integrity and competence. Babalakin argued that justice is the ability to deliver justice with high level of integrity and competence, stressing that cases would end at the High Courts if there is justice.

According to him, the desire by parties to a dispute to appeal High Court ruling was very rare between 1950 and 1975 because of the sound judgment delivered by the High Courts. Babalakin had at the 10th memorial lecture in honour

of the late Kehinde Sofola (SAN), faulted the proposed appointment of SANs and other lawyers to the Supreme Court of Nigeria. “Such a privilege is for very exceptional people and there are very few around that make the mark,” he said.

PROJECT INSPECTION

L-R: Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN); Managing Director/CEO, Pacific Energy Company Limited, Mr. M.A Afini; Ogun State Governor, Senator Ibikunle Amosun; and Director, Highways, Construction and Rehabilitation, Minisrty Works, Mr. Yemi Oguntominiyi, during the minister ‘s inspection of the Olorunsogo Power Plant in Ogun State, on his tour of highway projects, in the South-west Zone...weekend

Dangote, Others Plunked $6bn in Lekki Free Zone in 2016 Lekki deep sea port begins next month

Gboyega Akinsanmi The largest manufacturing conglomerate in West Africa, Dangote Group, and other companies have invested $6 billion in Lekki Free Trade Zone (LFTZ) in the last one year. Likewise, the construction of Lekki Deep Sea Port, which was valued at $1.6billion, will take off next month as part of the plan to speed up industrial and manufacturing activities in the zone. Lagos State Governor, Mr. Akinwunmi Ambode, disclosed this at the weekend when he inspected the zone alongside state Commissioner for Commerce, Industry and Cooperatives, Mr. Rotimi Ogunleye and his transportation counterpart, Mr. Olanrewaju Elegushi, among others. Also, the Chairman, Lekki Worldwide Investment Limited, Mr. Biodun Dabiri; Managing Director, AsiaAfrica International FZE, Mr. Sun Yuchao, and General Manager, Asia - Africa international FZE, Mr. Li Yong, were part of the team that inspected the zone. Dangote Group is currently undertaking four strategic projects at the Lekki Free

Trade Zone namely: a petroleum refinery, fertilizer processing plant, sub-sea gas pipeline project, as well as a petro-chemical project projected for completion on or before 2019. During the inspection, Managing Director of Lekki Free Zone Development Company, Mr. Ding Yonghua, provided insight into the volume of investment the zone had attracted in the last 10 years. As at 2016, Yonghua disclosed that the zone had already attracted 114 investors, noting that of all the investors that came to the zone in the last 10 years, 46 “are commercial investors. More investors have indicated interest in coming to set up businesses in the zone. “The reason we have been spending more in the zone was that the zone is a swampy area and it cost $10 to sand-fill a meter within the zone. The most occupied region within the zone of the South-west quadrant where the port would be situated.” After he was briefed about the volume of investment the zone had attracted as at 2016, the governor disclosed that more than over $6 billion has been invested in the LFTZ in the last one year, saying

Dangote Group alone invested about $4 billion. Ambode explained that over $6 billion “has been invested in the zone in 2016 alone. Dangote Group has the lion’s share of about $4 billion. We have a land space of over 16,000 hectares. A portion of this land has already been put to use. “We are all aware of the investments Dangote Group and China Africa Lekki Investment Limited (CALIL) have injected into the zone. We are also aware of the partnership the duo signed with the Lagos State Government. This partnership made the company own 60 percent while Lagos State own 40 percent,” he explained. Ambode added that putting the funds at the zone at a time when Nigeria was gradually easing its way out of recession would not only improve infrastructure and boost development, but would definitely help attract more investors to the zone. Likewise, the governor promised that work “will commence on the Lekki Deep Sea Port in April,” explaining that the sea port “is indeed a critical infrastructure that will attract more investors into the zone and ensure

return on investment. “With the construction of Lekki Deep Sea Port, Lekki International Airport and others, it is obvious that a single road is no longer sufficient for the zone. We have to dualise the Lekki-Eleko road beyond the zone in order to withstand the influx of vehicle that will be making use of the road to access the zone and other areas. “With this, we will be able to sustain the investments in the area. With the Lekki Deep Sea Port, Dangote Refinery and Lekki International Airport coming on board, Lagos East will witness massive economic turnaround within the next two years,” he said. He also commended residents for the peaceful atmosphere witnessed in the zone in the last one year, which he said was crucial to the development recorded in recent time. Ambode said about 800 hectares of land “will be handed over to the zone within the next six months for further development, adding that: “The overall interest is for the residents of Lagos. Aside that we will grow our GDP, this zone help reduce unemployment and capacity for the future.”

MONDAY, MARCH 27, 2017• T H I S D AY

NEWSXTRA

Arik Air Asks Court to Disqualify AMCON’s Receiver Manager Davidson Iriekpen Arik Air last Friday told the Federal High Court in Lagos that the process leading to

the take over of the airline by the Assets Management Corporation of Nigeria (AMCON) was improper. AMCON had on February

Oil Swap Under-deliveries: Ontario Offers to Settle NNPC with Oghara Tank Farm Chineme Okafor in Abuja Ontario Oil and Gas Limited, which is one of the three oil marketing firms reportedly owing the Nigerian National Petroleum Corporation (NNPC) financial refunds for under-delivery of products in the defunct crude for product swap regime has offered to repay the corporation what it owes it with its petroleum products tank farm in Oghara, Delta State. But the corporation might have rejected the offer on the basis that the actual value of the tank farm in Oghara would not be enough to repay the total amount owed the NNPC by the company. THISDAY yesterday gathered from a top placed source in the NNPC that so far, Ontario has not made any concrete commitment to settle the outstanding obligation to the corporation. The source explained that the tank farm offer was perhaps the most tangible option Ontario had but that NNPC’s rejection has left it with no commitment yet. “Ontario doesn’t have money now, they said if we could take their tank farm in Oghara but when we valued it, it was under what they are owing and they have not showed any sign of repayment, only Aiteo and Televeras have done that,” said the NNPC

source. The disclosure by the source also coincided with a statement from the Group General Manager, Public Affairs of the NNPC, Mr. Ndu Ughamadu, which explained that so far, two of the companies involved in the reconciliation exercise namely Aiteo Energy Resources and Televeras Group of Companies have registered their commitment to settle all outstanding obligations. NNPC stated in the statement that already Televeras has agreed to make a tranche payment of $17.2 million, but unlike Aiteo and Televaras which have made firm commitment to the recovery process, it was yet to obtain any such commitment from Ontario. The corporation noted that nonetheless, negotiation on the repayment with Ontario would progress, and that it would achieve full recovery of the outstanding $184 million crude-swap-product under-deliveries as well as the full value of stock of its missing petrol in Capital Oil depot which it said was 82 million litres amounting to over N11 billion. NNPC also said it would provide regular information on its ongoing efforts to sanitise its record books through the painstaking reconciliation of the transactions executed during the defunct swap regime.

8, 2017 announced the take over of Arik Air. The corporation said it took over the airline to save it from collapse and in the best interest of the general public, workers, creditors and other interest groups in the aviation sector. A legal practitioner, Mr. Oluseye Opasanya (SAN) of the law firm of Olaniwun Ajayi LP, was appointed as the receiver manager of Arik Air Limited following its takeover. By an exparte application on February 8, AMCON secured an injunction restraining Arik Air’s “shareholders, directors, creditors, managers, officers, employees, servants, consultants, agents, representatives, privies” from

The Central Bank of Nigeria (CBN) has expressed optimism that the United States dollar would crash further this week as it plan to carry out further interventions in the interbank market. Also, following its intervention through wholesale forex auction last Thursday, the CBN at the weekend revealed that of the $100million earlier offered at the interbank market to meet customers’ demands, authorised dealers were only able to pick $81.347million after an initial bid for $91million. Commenting on the offer, the acting Director of Corporate Communications at the CBN, Isaac Okorafor, attributed the inability of authorised dealers to pick up the entire offer of the CBN to increasing dollar supply and sense of apprehension among dealers who anticipate

a further crash in the rate of the dollar. He reiterated the determination of the bank to sustain its current interventions in the market. According to him, “those who doubt the capacity of the Bank to sustain the intervention in the forex market are beginning to have a change of mind.” Okorafor also confirmed the plan to inject more forex into the market. According to him, the move underscored the commitment of the CBN to sustain the tempo of liquidity in the interbank market for the sake of different categories of genuine end-users. He therefore urged authentic prospective customers to freely approach their respective banks with relevant requirements to apply for the purchase of foreign exchange, assuring that the banks had adequate supplies to meet genuine needs. Okorafor also warned forex

Koku argued that by virtue of Rule 17 of Professional Conduct of Legal Practitioners 2007, neither Ajayi nor any other lawyer from the law firm of Olaniwun Ajayi LP could appear in a case where Opasanya is a plaintiff. Opposing the preliminary objection, however, Ajayi argued that there was a distinction between Opasanya and the law firm of Olaniwun Ajayi LP where Opasanya works and there was no law stopping anyone from the law firm from representing Opasanya. Besides, Ajayi also filed a preliminary objection challenging the locus standi of Koku’s clients to file the preliminary objection.

He argued that they were not parties in the suit in question which AMCON and Opasanya filed against Arik and the Inspector-General of Police. He described them as interlopers who should not be heard and urged Justice Mohammed Idris who is hearing the case to dismiss the preliminary objection by Koku’s clients. Citing a plethora of authorities, Ajayi said the law firm of Olaniwun Ajayi LP and Opasanya were two different entities. He urged the court to dismissed Arik Air’s objection. After hearing both preliminary objections, the presiding judge, Justice Idris, adjourned the case till May 15, 2017 for ruling.

STRATEGIC MEETING

L-R: Chief Operating Officer, Tony Elumelu Foundation (TEF), Owen Omogiafo; CEO, Parminder Vir; Founder, Tony Elumelu; Selection Committee member, Nimi Akingugbe; and another member, Martin Eigbike, during the selection committee’s meeting where 1,000 new entrepreneurs for the 2017 TEF Entrepreneurship Programme were selected and announced in Lagos...weekend

CBN Upbeat about Further Naira Appreciation Obinna Chima

interfering Opasanya’s power to manage Arik. But four persons who were aggrieved by the court order - Sir Joseph ArumemiIkhide, Chris Ndule, Dr. Michael Arumemi-Ikhide and Sangowawa Olubiyi filed a preliminary objection through their lawyer, Mr. Babajide Koku (SAN). They accused the lawyer representing AMCON and Opasanya, Prof. Kayinsola Ajayi (SAN), of engaging in professional misconduct and urged the court to void all the processes so far filed by Ajayi on behalf of AMCON and Opasanya. The grounds of their objection was that Ajayi and Opasanya are both lawyers practising in the law firm of Olaniwun Ajayi LP.

dealers against engaging in acts capable of disrupting the current smooth operations of the forex market, stressing that the CBN would penalise any organisation found guilty of bending the rules. Findings showed that the US dollar traded between N390-N395 to the dollar at some parallel market points in Lagos at the weekend. CBN, in keeping with its determination to increase liquidity in has so far flooded the forex market with an estimated US$2 billion in cash and currency forwards since February. This amount does not include its daily intervention of $1.5 million on the interbank market. Owing to this, the naira exchange rate, which depreciated by 76 per cent on the parallel market in 2016 due to scarcity of the greenback, has appreciated by about 27 per cent in the last one month since the new policy was announced.

2016 Budget: Adeosun Puts Capital Releases at N1tn Ndubuisi Francis in Abuja

the figure in an interactive session with members of the House of The Minister of Finance, Mrs. Representatives Tactical Committee on Recession in her office in Kemi Adeosun, has put total capital releases to federal Abuja. The statement noted that Ministries, Departments and Agencies (MDAs) for the 2016 the amount was released for various projects, including budget at N1 trillion. The figure, the finance minister the commencement of the said, represented the highest ever construction of a dual standard budgetary releases in the nation’s railway line that would link annual funding for capital projects. Lagos and Kano, rehabilitation “So far, N1trillion has been of roads, expanding irrigation released on capital and this is facilities to boost agriculture the highest so far in the history and the upgrading of aviation of this country. With the current infrastructure nationwide. She said the components of stability in oil price and the return of normalcy in Niger Delta, I the releases included aggregate am sure we will do more this releases to the MDAs of N870, 055,792, 283.00 billion as at year (2017),” she said. However, the minister was the end of February 2017 silent on how much of the N1 and additional releases of N65,393,920,000. trillion has been cash-backed. Others were Manual Authority According to a statement released by the Director to Incur Expenditure (AIEs) (Information), Mr. Salisu Na’inna in February 2017 in the sum Dambatta, the minister disclosed of N11,179,173,711.42 and an

additional Manual AIEs worth N45,804,709, 077.20 as at March 13, 2017. Adeosun noted that the overall capital releases totalling N992,433, 595,071.42 had impact on the Nigerian economy, by creating jobs, stimulating economic activities in communities and upgrading infrastructure, thereby improving the well-being of Nigerians. Adeosun pointed out that contractors returning to project sites around the country had employed workers, contributed to economic growth and improved the well-being of Nigerians in line with the strategic objectives of the administration of President Muhammadu Buhari. According to her, “We are determined to transform the economy and this is why we are focused on capital expenditure. If we have our rail, road and power, then we will be able to generate jobs and prosperity.”

MONDAY, MARCH 27, 2017• T H I S D AY

NEWSXTRA

APC Instructs Hameed Ali, Babachir to Honour Senate Invitation Says it won’t shield anyone from probe

Onyebuchi Ezigbo in Abuja

The All Progressives Congress (APC) has asked the Secretary to the Government of the Federation (SGF), Mr. Babachir David Lawal and the Comptroller General of the Nigerian Customs Service Col. Hameed Ali (rtd.) to honour the invitation extended to them by the National Assembly. Against the backdrop of the controversy caused by the refusal of the two senior government officials to heed invitation by the Senate, the ruling party leadership said that it would not shield any of its members from investigation, especially if it is linked to a corruption probe. The party said that it believes that the right thing to do was for its affected members to obey the invitation made to them by the Senate. The party’s National Publicity Secretary, Mallam Bolaji Abdullahi who made APC’s position known at the weekend when he spoke to journalists in Abuja, noted that it would amount to disrespecting the institution of the National Assembly for anyone to ignore summons by the legislative body. He said the party wouldn’t support anything that would portray “us as lawless, that would portray us as not having respect for democratic institutions”. “The party will not support any member of the party, any appointed official of government to disrespect the National Assembly because we recognise that the National Assembly is the very meaning of our democracy. “The difference between

dictatorship and democracy is the National Assembly. In the military rule you have the executive, you have the judiciary, the only institution you don’t have under the military rule is the National Assembly, as it where, or the House of Assembly in the states,” he said. On the Senate-SGF face off, the party spokesman said APC believes that the National Assembly has a constitutional role to investigate any official of government, irrespective of his or her level. Abudulahi said the party was not going to shield anybody from subjecting himself or herself to the constitutionally assigned role of the legislative arm of government. In the case of the SGF, the spokesman said the very reason the party must act cautiously is that people might allege that being a former member of the National Working Committee (NWC), “we are trying to kill the matter”. “The National Assembly has an oversight role to play, a constitutional role to play in some of this. We as a party, as I said earlier, we will not welcome a situation where a government official will behave in a way that would show lack of respect for a major organ of our institution. “We will not do it and if we do that, it is like we are encouraging that kind of behaviour that will impair our democracy, we won’t do that. “Secondly, if it is any issue that has to do with corruption, our president’s major commitment is to fight corruption. That is one of the major cardinal pillars

of his administration and what that means therefore is that anyone associated with this administration must not only be above board but must be seen to be above board. “So if anybody is believed to have done certain things that they were not supposed to have done, even at the level of suspicion, I think the National Assembly has the right to investigate. “We as a party believe that anybody that has any question to answer on issues that relate to corruption should answer those questions. “Nobody has been convicted and if it is at the level of investigation and the level of asking question about how people were treated and how money was utilised I think the National Assembly has the right to know. “So we are not going to shield anybody because what the people will say is that because he is a member of your party and former member of the NWC, that is why you are trying to kill the matter. “APC will not do that because President Muhammadu Buhari will not condone any form of corruption. “So if we are with him, we should believe in his leadership and we are committed to his fight against corruption. According, anybody that has a question to answer concerning corruption should answer it, because we are not going to shield or protect anybody in that area.” Speaking on the need to stabilise the institutions of democracy, Abdullahi said that

for the foundation of democracy to be strong everyone, especially those in high government offices, must ensure that they act in accordance with the law of the land and respect the various arms of government. “That is the very foundation of our democracy and we believe as a party that every single citizen, regardless of what we feel about some action or inaction of that institution, or whatever perception we have about some people in that institution, the most important thing is that this is the very institution at the heart of our democracy and any form of denigration of that institution is like flirting with suicide. So as a political party we are not going to do that. “We are not going to support anybody to disrespect our National Assembly and I believe that some of these issues that are coming up will very soon be resolved and as you have learned early last week the party said we are going to intervene on some of these issues and try to resolve them. “But I don’t think trying to intervene in a way to resolve the issues could be interpreted to mean that we are protecting some of these individuals that are involved. “We are not protecting anyone

to disrespect the National Assembly. Our desire will be to see that there is stability in the system and that the system is not unnecessarily overheated by issues that can be resolved amicably,” he said. Regarding the efforts being made by APC leadership to broker peace between the SGF and the CG of Customs and the National Assembly, Abdulahi said the party has been reaching out to its members in the Senate, adding that the party was looking for an auspicious time to bring the parties to the table to resolve the matter. “Don’t forget that the National Assembly is not populated by only members of our party, there are also other parties that are represented in the National Assembly. But we are in the majority and we believe that if we intervene, we would be able to arrive at an amicable resolution to the matter,” he said. The APC spokesman, however, expressed concern over the turn of events especially the court action instituted by the Customs CG, stating that it would complicate issues and overheat the polity. He said the leadership had hoped that both sides would exercise good judgment and allow the matter to be resolved rather dragging it to court. “But when we realised that

it wasn’t going to happen and it was generating issues that would create circumstances that are not desirable, that was when the party said we need to weigh in. “The assumption that we had at the point that we said we were going to weigh in is that we were going to bring the parties to the table and say let us discuss. “But, obviously, one of the parties probably had a different idea of what the solution should be because by dragging this issue to the court it had made things more complicated. “However, we will continue to try because you know as a party there are decision we can take, there are actions we can take to say, ‘Look if you are a member of this party there are certain things you can’t do.’ “But that is not our ultimate desire, our desire would be that we are able to intervene and resolve the matter in a way that would further stabilise the system rather than heating it up unduly,” he stated. Abdullahi acknowledged that just as the party cannot force the CG of the Customs Service to do what he doesn’t want to do, it would not also be able to force the Senate to change its mind and move in a different direction.

MONDAY, MARCH 27, 2017• T H I S D AY

NEWSXTRA

Report: Customs Responsible for 82% of Charges at Nigerian Ports A study by Nigeria’s leading accounting firm, Akintola Williams Deloitte, has blamed the high cost of doing business at the nation’s seaports on the Nigeria Customs Service (NCS) and other government agencies, claiming that customs processes are responsible for not less than 82.1 per cent of the charges incurred by consignees. This assertion was contained an industry report titled: ‘Public Private Partnership (PPP) as an anchor for diversifying the Nigeria economy: Lagos Container Terminals Concession as a Case Study’ which it published and a copy was obtained at the weekend. Akintola Williams Deloitte stated that its value chain analysis of a 20-foot container laden with cargo worth N44.42million ($100,000) imported into Nigeria from China, revealed that about N6.5million would be required to clear and transport the container out of the port. It said of this amount, about N5.3million (representing 82.1 per cent) is paid to the NCS as import duty, Comprehensive Import Supervision Scheme (CISS), ECOWAS Trade

Liberalisation Scheme (ETLS), Port Development Surcharge and Value Added Tax (VAT). The firm further stated that other actors in the value chain include shipping companies, Nigerian Ports Authority (NPA), terminal operators, clearing companies and haulage services providers. It said shipping companies are responsible for 13.8 per cent of the port cost (N897,000); terminal operators 1.8 per cent (N117,000); customs 82.1 per cent (N5.3million); transporters 1.1 per cent (N71,500) and clearing agents (N78,000). According to the report, “The value chain of a typical container terminal operations begins with the shipment of the goods through a shipping line to the host country. The consignee pays the freight charges for the shipping as well as the container deposit fees. Demurrage charges may apply where the consignee fails to return the containers on time. “Upon arrival of the container at the Nigeria port, the consignees pays terminal handling charges, storage charges, delivery charges and customs examination charges

to the terminal operators. In addition, the consignees also pay the relevant customs import duty. “Consignees pay for logistics services to get the goods out of the terminal. “Consignees pay for the services of the clearing agents (where applicable). Large companies are directly responsible for clearing their goods.” Notwithstanding their huge investment and meager earnings, the report stated that terminal operators bear the burden of most of the challenges at the port. “Terminal operators face huge challenges in the area of storage as the terminals are used as “cheap storage warehouse alternatives” by cargo owners. “The current policy provides for a free three days storage after which a charge of N900 is applied per day and regulated by the NPA. Importers take advantage of the low storage charges offered by the terminal operators to store their imported goods at the terminal as opposed to a site warehousing facilities that charge as much as N60,000 per day,” the report stated.

21 People Die of Meningitis in Sokoto, Says Health Commissioner The death toll as a result of the meningitis epidemic in Sokoto State has now risen to 21. The state Commissioner for Health, Balarabe Kakale, confirmed this in an interview with the News Agency of Nigeria (NAN) in Sokoto yesterday. Kakale also provided an update on the state of high alert declared by the ministry since March 20. The deaths were recorded in the seven local governments of Kebbe, Bodinga, Rabah, Wamakko, Gada, Dange/ Shuni and Tureta, which are mostly affected by the meningitis outbreak. “The state government had since last Monday deployed no fewer than 15 medical teams, comprising of over one hundred and fifty medical personnel,” the commissioner said. “They were deployed across the 23 local governments of

the state, fully equipped with ambulances and provided with free drugs, as well as medicament. “The emergency response teams were conducting house to house search, definition and management, both at home and the hospitals. “They had so far treated no fewer than 330 mixed cases of severe malaria and meningitis across the seven top-hit local governments. “Out of the 330 cases, 40 were confirmed in the laboratories to be cases of meningitis, out of which 14 fatalities were recorded. “These14 deaths excluded the seven deaths earlier recorded in parts of Gada local government of Gada local government.” Kakale further noted that thousands of other cases were treated at the Primary Health Centres in the local governments. The commissioner said there were some “imported cases”

from Koko in Kebbi State, which compounded the epidemic. He also lamented that traditional belief in witchcraft was making fighting the disease difficult, with some families refusing to take their suspected patients to the hospitals. “You will see suspected cases having symptoms of meningitis like vomiting, high fever, headache and steepness of the neck, but they will not be conveyed to the health facilities. “The people of the state should disregard rumours of witchcraft and take all suspected persons to the hospitals early. “Keeping them at home will only make the disease worse and cause transmission to other members of the family. “The residents should also reduce the number of those to take care of confirmed patients, avoid sleeping in overcrowded rooms, as well as ensure personal and environmental hygiene,” Kakale advised.

Presidency Denies Buhari’s Involvement in Certificate Scandal Omololu Ogunmade in Abuja The presidency has denied President Muhammadu Buhari’s involvement in any certificate scandal. Reacting to a publication in a national daily (not THISDAY), last night, with the headline: ‘Prominent Nigerians with certificate scandals,’ where Buhari was listed as one of the high profile Nigerian personalities with certificate scandal, the president’s spokesman, Malam Garba Shehu, in a statement, said Buhari did not belong to the

category. Other personalities listed in certificate scandal by the newspaper were former President Goodluck Jonathan; former Senate President, Evans Enwerem; former Speaker of the House of Representatives, Salisu Buhari; Ekiti State Governor, Ayo Fayose; and a national leader of the All Progressives Congress (APC), Senator Bola Tinubu. “We wish to emphatically state that President Buhari does not fit into categorisation of leaders with certificate scandals because he bears none that is on available records.

“In the course of the contest for the office of the President in 2015, a number of wild, untrue and malicious allegations were made against him in order to stop him from contesting for the office in the election. “The issue of certificates was raised against him but the campaign successfully dealt with the allegations by providing evidence that not only was he qualified to run, he had a far higher academic qualification than is required by the constitution. As a result, he went on to run for the office and eventually win,” Garba said.

MONDAY, MARCH 27, 2017• T H I S D AY

NEWSXTRA

Shell Loses Bid to Stop House Summons Davidson Iriekpen A Federal High Court sitting in Abuja presided over by Justice Binta Murtala-Nyako has dismissed an action filed by Shell Nigeria Exploration and Production Company Limited (SNEPCO) seeking to stop the House of Representatives and its Speaker from conducting an investigative hearing in respect of a petition written against Shell by a non-governmental organisation alleging a breach of the provisions of Nigerian Oil and Gas Industry Content Development Act in the award of contract for the provision of Marine Patrol Vessels in Rivers State. In its originating summons filed on May 4, 2016 by its counsel, Chief Dafe Akpedeye (SAN), Shell has sought a declaration from the court seeking a determination whether from the combined construction of sections 88 and 89 of the 1999 Constitution (as amended) the House or its committee is vested with constitutional powers to investigate the petition against Shell which said petition allegedly touched on the conduct of its private business as a private entity. Shell also sought orders of perpetual injunction restraining the Speaker and the House from either by themselves or acting through any committee from commencing or continuing

with the investigative hearing of the petition from an NGO - Youth Coalition for Change against Shell for alleged denial of invitation to indigenous contractors to tender for Shell’s contract for procurement of Marine Patrol Vessels. Shell also sought an injunction restraining the Speaker and the House and its committees from issuing or further issuing any summons or invitation by any name so called against Shell or any of its agent, staff or directors to appear before it in connection to an investigative hearing of the petition from the Youth Coalition for Change on the issue of contract for the provision of Marine Patrol Vessels. In their defence filed by Chief Emeka Ngige (SAN), the Speaker and the House contended that based on the provisions of Sections 88 and 89 of the 1999 Constitution it cannot be argued that the House cannot exercise oversight functions on anything related to provisions of the Nigerian Oil and Gas Industry Content Development Act which was enacted by the sixth National Assembly. They further contended that that the invitation to Shell to appear before it did not in any way or manner amount to usurpation of the functions of the judiciary. The House argued that it was a total misconception of the doctrine

of separation of powers for Shell to refuse to honour a simple invitation to appear before it and defend itself against the NGO’s petition. They stated contended that there was nothing to suggest that the Speaker and the House were exercising judicial powers by merely seeking to know whether the allegation against Shell was true or false adding that it did not matter that Shell is a private limited liability company seeking to buy marine patrol vessels for the protection of its business. They further contended that as long as the contract comes within

the confines of the provisions ofNigerian Oil and Gas Industry Content Development Act 2010, the National Assembly has the amplitude of powers to deal with the petition. The Speaker and the House further contended that Shell was in an undue haste in rushing to court to stop the House Committee on public petitions from performing its oversight functions. While contending that the Nigeria constitution is tailored in the format of American Constitution and that sections 88 and 89 of Nigerian Constitution were borrowed from

similar provisions in the American Constitution, the Defendants urged the Court to dismiss the suit for being premature and inchoate. In her judgment, Justice Nyako held that the House has the power under section 88 of the 1999 Constitution to look into the petition sent to it as it relates to the application of an Act of National Assembly. The court also agreed with the Speaker and the House that the suit as constituted was inchoate and premature and that Shell should appear before the House and answer

questions arising from the petition by the NGO. Justice Nyako further held that what the House extended to Shell was just an invitation and that it was within its powers to do so. She further held that it was only if in the course of responding to the petition, the House delves into the way and manner Shell runs its affairs that it could be said that the House was going beyond its limits. The court consequently dismissed the suit with no order as to costs.

House Minority Leader Opposes Call to Cut CBN Gov’s Powers James Emejo in Abuja Minority Leader of the House of Representatives, Hon. Leo Ogor, has opposed the call by the Minister of Finance, Mrs. Kemi Adeosun, to cut the powers of the Governor of the Central Bank of Nigeria (CBN). He told journalists at the weekend in Abuja that such moves should be disregarded because it amounts to eroding the independence of the apex bank. He said: “Rather than whittling down the powers of central bank which is not in conformity with international

best practices as present day realities has demonstrated world wide, our finance minister should initiate relevant fiscal policies aimed at stimulating the economy from recession.” According to him: “If the minister succeeds with her plan, the reaction time of the CBN to monetary policies will be greatly impaired by bureaucracy as it is expected to act through a supervisory agency and such move will result in undue political interference in monetary policies, which will not augur well for the economy.” Ogor further argued that

rather than asking for cuts, the minister should have sought to strengthen the CBN’s powers. He said: “The central bank should remain independent and not be brought under the Ministry of Finance. The CBN should not be seen as an appendage of the finance ministry.” The lawmaker is particularly worried about adverse impact the whittling down the powers of the CBN would have on the larger economy by further subjecting the bank to the ministry’s supervision. He said reinforcing the CBN’s autonomy as a

global practice should be encouraged while the relationship between it and the ministry should be the coordination of monetary and fiscal policies. He added: “To say that the governor and the central bank should be under the control of the executive would mean that any decision that is made by the CBN will be subjected to political influence. So, the place of the central bank is sacrosanct. In fact, such an idea should be thrown out immediately as it is not in consonance with global best practices.”

T H I S D AY • MONDAY, MARCH 27, 2017

MONDAYSPORTS

Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com

I N T E R N AT I O N A L F R I E N D LY

Onazi Assures Nigerians on S’Eagles Qualification for W’Cup Femi Solaja Super Eagles stand-in captain, Ogenyi Onazi, is already looking beyond the remaining team’s qualifying matches for next year’s World Cup finals in Russia as he confidently opined that Nigerian flag will fly high at the Mundial next year in Russia. Onazi, who captained the Super Eagles 1-1 draw against Senegal last week Thursday in London yesterday said that; “Nigeria’s young and vibrant squad is thinking of little else apart from qualifying for the 2018 FIFA World Cup and the 2019 Africa Cup of Nations,” he remarked during a meeting of the Super Eagles with the Nigeria Football Federation (NFF), President Amaju Pinnick, at the team’s Crowne Plaza London Ealing hotel. “I am always delighted anytime I look at the faces of everyone in camp. The determination is real and infectious. It is a young and focused group; we all want to qualify for the FIFA World Cup 2018 and the next Africa Cup of Nations. “We are happy that the NFF President is here and spoken very well, and we want to assure Nigerians that we will keep up the momentum in the World Cup qualifying race and at the same time go all out for the Cup of Nations ticket.” Onazi, who plays for Trabzonspor FC of Turkey, added that the friendly against Senegal’s Teranga Lions on Thursday was an excellent preparation for the Super Eagles’ very crucial five competitive matches later this year. After missing out at the last edition in Gabon, Super Eagles will

host South Africa in a 2019 Africa Cup of Nations qualifier in June, before quick, home-and-away 2018 FIFA World Cup sessions against current African champions, Cameroon late August and early September, and concluding World Cup qualifiers against Zambia (at home in October) and Algeria (away in November). Earlier, Pinnick appreciated the players and officials for their sense of duty and commitment to the cause, while assuring that the Federation will work assiduously hard to see that their outstanding entitlements are offset soonest. Chairman of the Senate Committee on Sports and Youth Development, Senator Obinna Ogba also assured the group of the Nigeria government’s appreciation of their toil, and charged them to go ahead and earn the tickets to the FIFA World Cup and the Africa Cup of Nations. In another development, Confederation of African Football (CAF) executive member and NFF boss, Pinnick will fly to Zurich, Switzerland tomorrow to attend the inaugural meeting of the Organising Committee for FIFA Competitions, taking place at the secretariat of FIFA on Wednesday. Nigerian Football’s supremo was in January appointed a member of the second most important committee in world football (after the FIFA Council), which also has the Presidents of three Confederations (UEFA President Aleksander Ceferin, Oceania President David Chung and Asia boss Sheikh Salman Bin Ebrahim Al Khalifa). The Organising Committee for FIFA Competitions replaced the plethora of Organising committees

Okpekpe Organisers Hail Ecobank Organisers of the Okpekpe international 10km road race have hailed Ecobank Nigeria Limited, an affiliate of Ecobank Transnational Incorporated (ETI) for renewing its partnership with the race as its official bank. Ecobank was the official bank of the third and fourth editions of the race in 2015 and 2016 respectively and will now continue in that position as the official bank and one of the leading sponsors of the race for 2017. ‘We are indeed delighted that the leading financial services group in sub-Saharan Africa has continued to identify with us once again,’said Dare Esan,spokesman for the race.

NPFL MATCHDAY 15 RESULTS

Katsina 1-0 Rangers Remo 2-1 Wikki Enyimba 1-0 Rivers Plateau 4-1 ABS Gombe 1-0 MFM FC Abia Warriors 3-0 Pillars Nasarawa 1-0 3SC Tornadoes 2-1 Sunshine El-Kanemi 1-0 Lobi

‘The profile of the race as one of the prestigious road races in the world and one of only two in Africa to get an International Association of Athletics Federations (IAAF) label rating has no doubt made it very attractive to sponsors as the focus of the entire world will be on Okpekpe, a rustic, hilly town in Etsako East Local Government of Edo state on Saturday May 13, 2017 when the fifth edition of the race holds. It will be the 44th IAAF label race of the year and the first to hold in Africa this year,’ said Esan. Meanwhile, Ecobank insists its support for the race is not by happenstance. Charles Kie, Managing Director, Ecobank Nigeria said the bank identifies sports as fulcrum and key component of rapid financial integration and economic development of the Africa continent. He maintains that the Bank is well positioned to partner sporting events with regional appeal that create opportunities for African youths to converged on healthy and competitive basis.

for FIFA’s competitions, viz FIFA World Cup, FIFA Women’s World Cup, FIFA Confederations Cup, FIFA U20 World Cup, FIFA U20 Women’s World Cup, FIFA U17 World Cup, FIFA U17 Women’s World Cup, FIFA Club World Cup, FIFA Futsal World Cup and the FIFA Beach Soccer World Cup. The new model has only the following committees: Governance, Finance, Development, Member Associations, Referees, Players’ Status, Football Stakeholders, Medical, Organising Committee for FIFA Competitions. The Organising Committee for FIFA Competitions is headed by UEFA President Aleksander Ceferin and the tenure of members is for 2017-2021. Pinnick, who earlier served on the Organising Committee for the FIFA U20 World Cup, is vice president of WAFU B and Member of the Executive Committee of Confederation of African Football.

Prof. Wole Soyinka (left) with former World Heavyweight Champion, Evander Holyfield

Soyinka to Referee in Boxing Match between Tinubu, Heavyweight Champ Holyfield Legendary five-time World Heavyweight Boxing Champion, Evander Holyfield will in May, feature in the most anticipated exhibition boxing match that will pitch him against former Lagos State Governor, Bola Ahmed Tinubu (BAT). According to a statement by Foluke Michael, the Project Manager of the fight, tagged “Rhumbles in Lagos’’, the match will hold on 25 May at the Eko Atlantic City and will be beamed live to the world. Holyfield is 54, while Tinubu is 65.

The charity event is the first of its kind on the African continent, she said. It will be refereed by Nobel Laureate, Prof. Wole Soyinka. Tinubu in his endorsement of the BAT vs Holyfield bout, said: “I can’t wait to knock Evander down. I’m the real champion of the world!’’ The private sector-initiated event is designed as a contribution to the 50thanniversary celebration of the creation of Lagos State under the ongoing project, Lagos @50, chaired by Soyinka.

“Significantly, it is aimed at bringing world attention to some health-related issues in Africa, and will focus on cases such as Autism in Children, Breast Cancer, Mental Illness and HIV/AIDS and River Blindness. “Foluke said it will also especially focus on the plight of Africans living with Disabilities among others. The event will donate five 40ft. containers of medical and relief materials worth over $2 million dollars to Lagos State Government and other

neighbouring states, she said. Part of the proceeds from the event would benefit not-for-profit organisations and agencies in Lagos which cater to, and were engaged in research programmes aimed at eradicating these medical conditions. The “Real Deal’’ Evander Holyfield was billed to arrive in Lagos in May, and he would engage children and youths in the course of his visit. The charity fight is promoted by ACI Entertainment and Bishop Entertainment Consult based in Atlanta, Georgia.

Greensprings Kanu Football Camp to Host Queen’s Baton Few weeks after Queen Elizabeth of England launched the Baton Relay for the 2018 Commonwealth Games; the Queen’s Baton will berth in Lagos with Greensprings Kanu Football Camp hosting the baton team on April 4. The Queen at the Buckingham Palace on March 13 handed the baton to two-time Olympic champion, cyclist Anna Meares to kick start the baton journey to the host country Australia. Greensprings School, the organizers of the annual football camp and partner of the Nigeria Olympic Committee (NOC) will host the Baton team during the

football camp holding at the Lekki Campus of the school. With the presence of top coaches from England and Netherlands participating in this year’s Greensprings Kanu Football Camp, the participants are expected to have a unique experience of the Queen’s Baton Relay at the camp. In a letter signed by the Secretary General of NOC, Tunde Popoola, the Queen’s Baton Relay which is a replica of the Olympic Torch will be berthing in Nigeria for five days as one of the 71 commonwealth countries that will play host to the Queen’s baton

in its 388 days trip across more than 200,000 miles before reaching the Gold Coast. ‘It is traditional for the Queen’s Baton to be received by the highest authorities in the land and to visit other places of significance or corporate concerns that have links with the Commonwealth. In the light of the above, NOC and the Queen’s Baton team would like to visit Greensprings School, Lekki as our partner on Tuesday, April 4 for staff and students to share a Baton experience,” the NOC scribe said. The Queen’s Baton Relay, similar to the Olympic Torch

Relay, is a relay around the world held prior to the beginning of the Commonwealth Games. The Baton carries a message from the Head of the Commonwealth, currently Queen Elizabeth II. The Relay traditionally begins at Buckingham Palace in London as a part of the city’s Commonwealth Day festivities. The Queen entrusts the baton to the first relay runner. At the Opening Ceremony of the Games, the final relay runner hands the baton back to the Queen or her representative, who reads the message aloud to officially open the Games.

RYSA Seeks Lagos Govt Support for Sports Devt The Royal Youth Sports Association (RYSA), has called on Lagos State Government to support its programs which are aimed improving the level of sports and community development in the state. The body, whose main objective is in sports development but also pride

itself community developmental projects, social and cultural activities rolled out its plans for this year last week. The association which is newly established is guided by a vision to assist the government in the areas of youth and community enhanced projects in other to provide supports for sports and

academics as well as charity matters. The president of RYSA Dr. Rekson C. Isaacs in an interview said that the establishment of the association is to contribute massively to the development and empowerment of through it various programms. “Our vision is anchored on

our ability to turn the dreams of our youths into reality with the kind of projects we intend to embark upon which are very relevant to the issue that will prevent restiveness, unemployment, crime and other social vices that afflict the society we live in today.

Monday March 27, 2017

UT H

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MISSILE Ogundipe to Police “The crisis in Ife is surprising given the age-long harmonious relationship between the two communities with inter-ethnic marriages and a lot of business relationships. As a lawyer, I will not support any act of violence and illegality; but the security officials posted there (Ile-Ife) did not demonstrate enough professionalism in the way they handled the situation during and after the crisis.’’ Chef Bisi Ogundipe, President of Ife Club 1, on the recent inter-ethnic violence in Ife.

ALEXOTTI OUTSIDE THE BOX

alex.otti@thisdaylive.com

Stagflation, Fragility and Arrested Development of the Nigerian Economy at No 26 in the world, but when you look at our GDP per Capita of $2,800, we move down to No 180 out of the 228 countries ranked by the IMF World Economic Outlook, 2016. And in Africa, we ranked No 17 out of the 53 countries ranked. These are the real numbers that we don’t like to show, but they are the numbers that attempt to compare apples with apples and not with oranges. Bottom line: ours is a very weak and fragile economy. In fact, we have continued to slide downwards in the Fragile States Index (FSI) ranking from No 17 in 2014, when we were ranked amongst the “Alert” category, through No 14 in 2015 moving downhill to the “high alert” category at No 13 in 2016 out of the 178 countries ranked. We are only better than countries like Guinea, Haiti, Afghanistan, Chad, Sudan and Somalia.

On Friday March 10, 2017, I was one of the speakers at the Vanguard Economic Discourse where the erudite Prof. Charles Chukwuma Soludo gave the Keynote address. I hereby publish the paper I prepared for the discourse, even though I did not have the luxury of time to give a detailed presentation at the event.

INTRODUCTION

y intervention is going to focus on a long term approach towards building a virile and resilient economy. My contention would be that the issue of stagflation popularly called recession is a short term problem that even if we solve, will not resolve the deeper structural political and economic problems that have separated us from becoming the giant we hope to be. Until we address those problems, development will remain a mirage. The onus should not be left with leadership alone as it would not want to commit suicide. Civil society and patriotic elite should use all legitimate means to force the restructuring to happen. It is not in dispute that the country is going through some economic challenges which has had severe impact on people and businesses. As individuals, our personal finances and lives have felt the negative impact of the downturn. These impacts can be felt in the following areas: • High unemployment • Decline in GDP • Weak local currency value • High interest rates • Increasing prices of goods and services • Weakening Stock market • Soft real estate market • General drop in the standard of living

PRESENT ECONOMIC OUTLOOK

Macroeconomic indicators have been challenged in the last couple of quarters leading the Federal government to officially declare by mid-2016, that the economy was technically in recession. An economy is said to be in recession when it witnesses negative growth rate in Gross Domestic Product for two or more consecutive quarters. We have experienced negative GDP growth rates for the four quarters of 2016. In quarter 1, the growth rate was -0.36%. It further declined to -2.06% in quarter 2, and contracted further to -2.24% in quarter 3, while quarter 4 recorded a negative GDP growth rate of -1.30%. In economic parlance, a recession is normally accompanied by a general decline of prices of goods and services. It was not until the 1970s that economists realised that it was possible for recession to occur alongside inflation. This kind of situation, they called Stagflation. So, what we are dealing with in Nigeria is not recession as such, but stagflation. Our situation is caused by some short term and long term circumstances, though most analysts have dwelt on the short term causes. The short term causes will include oil price decline which resulted in massive revenue drop for the government, the largest spender in the economy. Owing to the oil price decline, there was also a general strain on foreign capital inflow. The security situation in the country, particularly the North East and the Niger Delta has not encouraged investors. There has, therefore, been a massive exit of Foreign Direct Investment in the country. All these and more have brought untold pressure on the country’s foreign reserves and exchange rate, further weakening the economy. The impact of Stagflation on businesses could be very damaging and in some cases, catastrophic if not properly managed. They include decline in revenue and ultimately, income, drop in production and productivity, decline in demand for goods and services, delays in payment of wages and salaries, layoffs and outright closures.

Minister of Finance, Kemi Adeosun

CHANGING THE NARRATIVE

Somehow, we know there are more fundamental issues around the economic challenges than what we have been told so far. The point is that recession or stagflation may just be the symptom of a fundamentally flawed economic structure. An economy that has remained import- dependent for decades cannot withstand external shocks. An economy characterized by decayed infrastructure, in the area of roads, rails, airports, marine transport, and the biggest one, power cannot be said to be resilient. There is a table (Table 1, available online only) which highlights Power Generation Capacity for 44 selected countries divided into the Highest 10 countries and the lowest 10. Nigeria understandably, is not only in the lowest 10, but boarded last in the list of the lowest 10. A country which seems to have deliberately embarked on a de-industrialisation policy and cares less about the number of manufacturers and industrialists closing shops cannot claim to be ready for global competitiveness. A country that pays little or no attention to education nor health care delivery is not ready for sustainable economic development. A country that has refused to diversify from a commodity to a knowledge economy cannot be said to be ready for the 21st century. A country that borrows to finance its recurrent expenditure even in an era of oil boom cannot qualify as being ready for development We cannot take ourselves very seriously when we continue to defend a bloated, unreasonable and unsustainable political structure. We cannot continue to deceive ourselves, pretending to be an oil economy when in the real sense of it, even with our position as the 6th largest producer of oil in the world, we are but a very poor country with some oil, whose impact on a per capita basis is at best insignificant. We conveniently fail to compare ourselves with other oil economies as doing this would puncture our hypnosis in our dream land. (See Table 2 on the website). This table shows that while a barrel of oil on per capita basis is shared by 2 people in Kuwait, 4 people in Qatar, 15 people in Angola and 35 people in Algeria, 105 people shared one barrel of oil in Nigeria, according to 2015 average daily production statistics. It also shows that we are the largest importer of refined petroleum products amongst all the countries analysed. A country that loves to humour itself as a large or potentially large economy when it knows its fundamentals are very fragile cannot be said to be serious. We say we are the largest economy in Africa measured by GDP after we rebased our GDP in 2014. We, however, conveniently forgot to tell the rest of the story. We failed to tell our people that what is important is not the absolute GDP figures, but GDP per Capita. The Current GDP figures of $415b, (some analysts believe it is much lower) placed us

WHERE DO WE GO FROM HERE?

We have argued that recession is a temporary situation that can easily be reversed once the economy becomes GDP positive. If for instance, oil prices suddenly recover and we begin to see pre 2014 prices again, we will be out of recession in a jiffy. If for some reason we reduce imports either by fiat or by accident and begin to spend less foreign exchange or if foreign exchange supply increases for some strange happenstance either by reason of increased exports or inflow of foreign investment, recession will abate. If we increase spending in real terms, either by reducing interest rates or by borrowing, recession would give way. The government may also choose to reduce taxes and tariffs to leave more money in the hands of people and business. The same effect will be witnessed if government finds a way of paying salaries and domestic debts owed to local contractors. An expansionary government spending policy by way of issuing fiscal stimulus package will put more money in the economy, encourage consumption, jump start production, and create jobs. All these will cure recession, but the fundamental problems with the economy will remain and recession can happen again if any of the challenges that led us here show up again and the bad news is that they are bound to show up again. It is therefore important to look at those things that must be done to ensure a long term solution to our economic challenges. My submission is that the solution transcends economic considerations as the major area to look at is the political structure. I am therefore, like every other student of political economy, inclined to locating our economic crisis within the context of the structure of the polity. Even at that, within the economic sphere, somethings must be done right to support a sound system. We must set up a robust economic development plan with clear deliverables and monitoring mechanism to ensure zero tolerance for non-implementation. I am not unaware of previous attempts at economic planning in the country. The major problem with those plans was that there was no will to implement them. Our suggested plan would be very heavy on implementation. The plan must set clear guidelines on how to industrialise the economy, how to build a non-import dependent economy, how jobs would be created and what number over a defined period of time. It must also set out how to build sustainable wealth for the country that is not commodity based. It must focus on infrastructure and the promotion of micro, small and medium scale enterprises as a sine qua non for economic development. The economic plan should also provide for massive investment in education to eradicate illiteracy and herald an innovation and technology revolution while at the same time encouraging a sustainable health care delivery system for the populace. This plan must also not be silent on eradication of poverty and corruption. Still on structural reforms, we need to tinker with the democracy model we copied from the US. It is simply not working and I do not see how it will work. We cannot afford it as it is not only inefficient, but it

is unsustainable. We cannot afford a Presidency with minimum of 36 ministers and thousands of aids. We cannot, in all honesty, continue to fund 36 governors and their deputies with thousands of aids and assistants. We do not need 109 senators nor do we need 360 house of representative members with over 2,500 aides. In fact, we do not need a bicameral legislature. We cannot afford close to 1000 house of assembly members with thousands of aids across the 36 states of the Federation. Neither can we afford 774 virtually idle or impotent local government chairmen and thousands of councilors maintained by the public till. We must reject a situation where over 70% of our annual budget is used to run less than 1million people by way of recurrent expenditure while a meagre 30% is set aside as capital expenditure for the remaining 180m+ people (see Table 3 on website). We should not tolerate a situation where government revenue cannot pay salaries of government personnel like have been the case in the recent past. Since, it will amount to committing suicide for some of these far reaching reforms to be made, given that it would require making changes to the constitution and those that can make those changes are also the ones benefitting from the status quo, I am sure people will wonder how they can be achieved. It takes the people to dictate the kind of changes they require. But for that to happen, the populace must be educated to even understand what it wants. The patriotic elite in the society must lead and insist on the reforms. Some of these absurdities have been encouraged by the silence and docility of the populace. It is time people begin to speak out and reject leaderships that do not mean well for the country. It was Albert Einstein who warned that “the world will not be destroyed by those who do evil, but by those who watch them without doing anything”. Unfortunately, most of what we know today as civil society, has become clapping society, out of greed and penchant for “stomach infrastructure” but it is the people that must insist and get the reforms and changes they need. I do not see that we need more than 6 states with 6 governors and not 36. We need only one chamber of the National Assembly with no more than 60 members. We need a lot fewer ministers and aids. We can do with much fewer local governments. Public service at this level should literally be pro bono to attract the right caliber of leaders who had been successful in other endeavours and discourage ‘chartered politicians’ whose interest in politics is self-serving.

CONCLUSION

The current economic crisis did not just happen. We planned for it by failing to plan for a resilient, self-reliant economy. The situation was compounded by a masturbative belief that we are an oil economy. We actually began to behave like one, when in the real sense of it, we are but a poor country with some oil and gas deposits in some parts of the country. We went on a spending spree, importing everything from the profound to the profane with its attendant impact on our foreign reserve. Wittingly or unwittingly, we started a project of deindustrialisation of the economy by promoting infrastructural deficit and decay. We left our educational system in ruins, as well as our healthcare delivery system. At the same time, we were making little progress with eradicating corruption in virtually all aspects of our economy. To make matters worse, we have been operating a profligate political system that we can ill afford. To get out of these on a sustainable basis, we must tell ourselves the truth and hit the reset button immediately with a view to institutionalising sound economic and political reforms otherwise, we should prepare for a full blown descent into a failed state. • Tables and graphs to this article can be seen on our website: www.thisdaylive.com

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