Page 1

Vol. 003 Issue No. 007, December, 2017

N1000; £5; SAR50; Ce70:00; US$7.50

ISSN: 2449-1217


W’Coast Operation Is To Actualise Vision Of ECOWAS Founders


With Over 18 Subsidiaries, Over 26,000 Employees In Over 28 Countries






KING SUNNY ADE: Music Legend With A Unique Brand

The Trilogy of Advertising – The Profession : The Practice : The Philosophy



60 Years Of Marital Bliss


Med-View: West Coast Operation To Actualise Vision Of ECOWAS Founders

Business Growth, Survival




Troubled Sky: Foreign Airlines Run Into Stormy Weather On Nigerian Routes







Dangote: Africa’s Global Brand

Business Processes, Procedure, In Outdoor

NEWMAP: Tackling Erosion, Improving Lives Using Watershed Concept


Advertising Industry






2016 Porsche: Panamera Elegant with boldness

Metaphor Of Vacancy: Managing Challenges Of Out-Of-Home Advertising In Nigeria


P 4


Planning Succession





This Edition


Africa’s Global Brand THERE are brands and there are brands. Each of the world acclaimed brands in all sectors started as one man’s idea and the pursuit of the vision to go beyond the immediate environment of operation particularly a brand’s country of origin made it become a global reference. Even while renowned foreign brands invaded our privacy in our own country, there had been indigenous brands that suffered the effect of high powered competitions from the foreign ‘invaders’ until the local ones are killed and subsequently making the people dependent on importation having been hooked on such foreign brands. Sadly, African countries are not only hooked on these but have consciously continued to promote the interest of foreign brands at the expense of the local options convinced of course, that those from abroad are not only of good quality but are well packaged and tailored for their taste. If not the biting inflation and the tough economic realities of the times, no one needs to be told that it is now wisdom to embrace the options available locally, the perceived quality of the foreign alternatives notwithstanding. The prevailing economic climate has therefore posed challenging opportunities to indigenous brands to respond to the consumers’ taste and the demands since they are, more than ever before, willing to embrace what they can afford in the face of limited funds

available. While some may be groaning, others are willing to rise up to the challenge of filling the gap and the vacuum created as the hitherto domineering foreign brands become scarce and expensive. And with the benefits of globalisation which has made movement of goods and services less cumbersome, local but ambitious brands are equally taking opportunities that abound these days to venture abroad in order to confront competitors out there if only to prove a point. Gone are the days when almost all household consumer items, including water, rice, sugar, salt, tooth paste, tissue papers and many more; were either made in England or the United States. It was then a status symbol to live on imported brands only. But today, the trend is not only changing but has been reversed as the local brands, with what it takes to face global competitions, are not only exporting but dominating markets outside the shores of this country. One of such daring brands storming the markets out there and dominating them is Dangote, a name that is now synonymous with quality products in virtually all household consumable items. The new generation of Nigerians may not understanding what the nation experienced in the past when survival depended on imported sugar, tooth paste, soaps, salt, rice, beans and many items for which the Dangote brands have now provided local alternatives and quality brands.

THE TEAM Publisher/Editor-In-Chief: Sola Akinsiku, frpa, mnipr Editorial Consultant/ Chairman Editorial Board: Seyi Fasugba Editorial Advisers: Prof. Ralph Akinfeleye Prof. Abigail Ogwuezzy Ndisika Dr. Josef-Bel Molokwu, frpa Dr. Dayo Daramola Contributors: Dr. Odion Oscar Odibo Dr. Kunle Adeyemi Chief Akin Babafemi (Ph.D) Bankole Ebisemiju Alhaji Bola Agboola Engr. Dayo Akinola Joe Eugene Onuorah Zacchaeus Akinadewo Auto Correspondent Emmanuel Olisemeke Aviation Correspondent: Rachael Koiki Correspondents: Adebayo Abiodun Adebayo Tosin Akinsiku Motunrayo Advert Executive Christiana Onyejeaka Northern Nigeria Bureau: Emma Eshiebor Head, Account/Admin Oluwayemisi Oyelakin Secretary/PA to the Publisher: Hotonu Olawunmi Graphics: King Ododoru Joshua Awolumate Marketing Consultants: Isaac Phritnol Professional Services Corporate Communications Consultants: Quintessence Public Relations Printed & Published by: Visibility Dynamics Publishing Limited 80, Adeniyi Jones, Ikeja, Lagos State.



Book Review

The Trilogy of Advertising – The Profession : The Practice : The Philosophy Author: Dr Josef Bel-Molokwu Reviewer: George E .Thorpe, frpa The book – The Trilogy of Advertising – The Profession : The Practice : The Philosophy – by Dr Josef Bel-Molokwu is the most comprehensive and detailed account of the genesis, growth and development of the advertising agency industry and its practitioners in Nigeria that I have ever read. If in writing this 3-part expose on the fundamental nature of advertising, the actual application of its principles and how its paid operators have fared over the years in Nigeria, the author sought to fill ‘some gaps’ and ‘to stimulate further advanced books on advertising’, he has exceeded all expectations and set a high bar for subsequent debates about the future of advertising in Nigeria. Dr. Bel-Molokwu, currently Senior Fellow at the School of Media and Communications, Pan Atlantic University, Lagos, Adjunct Senior Lecturer at the ESUT Business School Master’s Degree Programs also serving as External Examiner for PHD (Advertising) for the University of Ibadan, who as Chief Executive and Registrar of the Advertising Practitioners Council of Nigeria (APCON) for 11 years, was placed in a vantage position to take a panoramic view of the industry and its practitioners, can be truly proud of this work. I will now attempt a review of The Trilogy of Advertising. The Trilogy of Advertising is laid out in a total of 377 pages in 33 sections within 3 books titled



1. The Profession (Understanding Advertising) 2. The Practice (Working with Advertising) and 3. The Philosophy (Seminal Papers, Didactic Notes and Generic Issues in Advertising) In Understanding Advertising, there is effective coverage of what advertising does and how including the types of advertising, historical comparative billings, types of advertising media from where there is a sneak preview of how media brokerage gave rise to media independent practice. In The Development of Advertising, the genesis of advertising in Nigeria is presented including mention of the first advertising agency in Nigeria – the West African Publicity Ltd – incorporated in London on August 13 1928 as an affili-

ate of the UAC. This history is traced to the milestone creation of APCON by Decree (now Act) No. 55 of 1988 to regularize advertising practice by introducing yardsticks for registration, maintenance of a register of practitioners, setting educational standards, creation of training facilities, vetting of advertisements and publication of literature on advertising. The next section, Structure of the Advertising Industry, is organized around the advertiser, the advertising practitioner or creator/ agency and the advertising media. This section draws extensively from advertising literature and previous publications by the author. Chapter 1.4, on Regulation of the Practice, is a must for all advertising practitioners in Nigeria. It schematically shows APCON as the apex regulator for individuals and organizations in all then 4 Organized Sectoral Groupings – ADVAN, AAPN (now AAAN), OAAN, NPAN and BON. As book reviewer, Chapter 1.5 on The Development of the Advertising Agencies, holds a special interest. I learnt about the controversy about the first advertising agency in the world – whether it is Reynold and Son set up in London in 1812 or N. W. Ayer and Son in the USA in 1890 (giving a 78 years margin of error) – how WAP metamorphosed into LINTAS West Africa in 1965 with a ‘full-scale open-market-competition brief’. UAC sold off its interest in LINContinues on P8



Book Review

The Trilogy of Advertising Continues from page 6

TAS West Africa in 1974 as a result of the Indigenization Decree which placed advertising agencies in a schedule for 100% Nigerian ownership. This is the place to learn about the evolution of the indigenous advertising agency industry – from the first-generation agencies like LINTAS and OBM to second generation agencies like Rosabel, Goldmark and Insight in the 1974 to 1985 period and third generation agencies like SO&U, Concept Unit and LTC since. The next Chapter deals with quality Agency Briefs – the process and format for various types of briefs. Chapter 1.7 lays out the theoretical foundation for the advertising process starting with the familiar models like AIDA to DAGMAR, Lavidge-Steiner Model (never heard of this one before) and the Adoption Process. The last chapter in Part 1 of Book 1 is Developing a Career in Advertising. The role of APCON in professionalizing advertising in Nigeria and maintaining the register of practitioners according to 4 categories – Student Member, Associate Member, Full Member and Fellow – is highlighted here. The jobs that are open to only APCON registered members is to be found in pages 154-156. The author noted his frustration with the failure of APCON to follow through on his efforts as its CEO/Registrar to have the concept of advertising directorates to be adopted in the public sector and failure to refer the issue of a national advertising policy to the Ministry of Information. The only chapter in Part 2, The Business of Advertising dwells on



advertising business strategies, the regulatory and compliance challenges they face, the responsibilities for and organizational structures that agencies use for managing advertising and marketing communications, special recognition of development on the media front – media independents, media monitoring service providers and alternative media (digital?). Book 2 starts with Chapter 2.1 on Working with Advertising. It addresses the meaning and process for advertising campaigns and how they might be measured for communication effects. The next three chapters cover Advertising Techniques, Creative Strategy in Advertising and International Advertising. Chapter 2.15, Advertising Scheduling and Media Selection is of particular interest because Nigeria is obviously the largest and most complex and dynamic media market in Africa. Starting from zero and within 10 years, 80% of regular brand me-

dia advertising is now handled by fewer that ten Media Independents who exclusively MPS audience data for all media planning; this section of The Trilogy of Advertising can do with some updating. This weakness is only partially relieved in Chapter 3.33 titled Media Independent Evolution, Relevance and Challenges: The Regulator’s Perspective. The next 9 chapters cover The Nigerian Advertising Environment, Online Advertising, Advertising Agencies: Roles and Types, International Advertising and Public Relations: An Integrated Approach, International Public Relations and Advertising and International Advertising Strategy. The last 3 chapters – The Advertiser and the Adman in International Advertising: Relationship and Influence, Media Technology and Promotional Communication & Thinking Points in International Advertising and Public Relations all make very interesting read. If the scholarly credential of the author were ever in doubt, the eight seminal papers that make up Book 3 which he developed and presented at various local and international academic and professional circles has put paid to that. Two of the many exciting topics – Advertising and Nation Building, Media Independent Evolution, Relevance and Challenges – would suffice as teasers. The Trilogy of Advertising has laid a solid foundation for a discussion of how we got to where we are today. One could sarcastically say that if we do not where to go, with The Trilogy of Advertising, we at least know where we came from and how we travelled.

Book Review

Public Presentation Of ‘ A Trilogy Of Advertising’ It was a gathering of who is who in the advertising world at the public presentation of the book: A Trilogy of Advertising: The Profession : The Practice : The Philosophy , authored by one- time registrar of the Advertising Practitioners Council of Nigeria, (APCON), Dr. Josef Bel Molokwu. Here are some of the faces at the event held on November 17, 2017 in Lagos.






Med-View: West Coast Operation To Actualise Vision Of ECOWAS Founders THE mission of Med-View Airlines in its flight operations to the West African countries who are members of the Economic Community of West African States is to actualise the vision of the founding founders of the sub regional body and to achieve the real economic integration of the community. The Managing Director and Chief Executive Officer of the Airline, Alhaji Muneer Bankole, who led the management team, expressed this during the inaugural flights to three French speaking member countries of the sub region, Cote d’Ivoire, Guinea Conakry and Senegal to increase the number of its flight operations along the West Coast. Prior to the inclusion of the three countries in the West Coast operations, Med-View had become a major player in flight connections to the English speaking ECOWAS

member countries of Ghana, Sierra Leone and Monrovia. The new destinations have now increased the countries to six in West Africa while still exploring the possibility of increasing the number. The arrival of the Airline was not only a mission accomplished for Med- View but an instant answer to the prayers of the Francophone business and the diplomatic community who have waited for years to get solutions to the often cumbersome ways of flight connections outside and within Africa. The enthusiasm from their end was reflected in the mood the inaugural flight was welcomed into the three countries with pomp and pageantry and particularly by the enthusiastic crowd of travellers who were already on the lookout for the commencement of the operations.

The flight first touched down in Abidjan, the Ivorien capital where the team was received by high powered delegation led by the Special Assistant to the Prime Minister, Allasain Quatarra in addition to the Nigerian Ambassador and a full complement of staff of the Nigerian chancery in Abidjan. In addition were politicians and members of Parliment, Issiaka Sumahoro, the representative of the Chamber of commerce and Industry in Cote D’ivoire, Louis-Guillaume N’dia, members of Nigerians in Diaspora and representatives of Nigerians resident in Cote D’ivoire. The brief but impressive Airport reception for the team featured he cutting of the inaugural cake after the ceremonial showers for the aircraft to officially welcome the flight to the country. At the formal cereContinues on P12




West Coast Operation To Actualise Vision Of ECOWAS Founders Continues from page 11

mony held inside within the Airport facility, Alhaji Bankole explained the motives behind the operation which among others were aimed at assisting the sub regional body achieve its economic integration by easing the movement of personnel and goods to enhance the dignity of Africans. In Conakry the Guineans however appeared more prepared to receive the Med-View delegation with high expectation as demonstrated by the reception hosted in honour of the team led by Alhaji Bankole. To the Guineans, the arrival of the flight was a dream come true particularly for the business community who had to spend days in trying to connecting flights to Europe and

elsewhere in the world. The Guinean Ambassador to Nigeria, His Excellency Gaoussou Toure, who was on board the flight from Lagos to Conakry explained to BV that it was mission accomplished for him as a person and the diplomatic community to have a direct access to Lagos through MedView from where they can connect other parts of the world. Speaking at the elaborate Airport reception in Conakry, Ambassador Toure said the arrival of Med-View operation was as a result of the visionary leadership of President Alpha Conteh to open the Guinean economy to investors in order to tap into the opportunities offered for the benefit of Guineans and other ECOWAS members in general.

The Med-View delegation was received by the Director General of the Guinean Civil Aviation Authority, Mamady Kaba who represented the Minister of Transport. The Guineans were more excited to discover that the pilot who flew the team to Conakry, Habeeb Diakabi is a Guinean, formerly with their national carrier, Guinean Airways before venturing into Nigeria to work with Med-View. On ground to receive the delegation was the Nigeria’s Ambassador Extraordinary and Plenipotentiary, Ambassador B.M. Mairiga and staff of the Chancery in Conakry. Among them was the second secretary, Felix Benjamin, Counsellor, Mrs Yetunde Ogunsanya and the Consular, Taofik O. Coker.

Guineans Celebrate Pilot, Demand More Opportunities THE Inaugural flight of Medview Airline to the three Francophone West African countries of Cote D’Ivoire, Guinea and Senegal was more of an eye opener to the Guineans on discovering that the pilot who flew the delegation to Conakry is a Guinean. The discovery of the strategy perfectly utilised by the management of the airline created a scene of celebration for the Guinean officials who were on hand to receive the delegation led by the Managing Director of the Airline, Alhaji Muneer Bankole, members of his management and some traditional rulers. Captain Habeeb Diakabi whi also enjoyed every moment of the celebration as he was proudly introduced to the home crowd explained in a



Capt. Habeeb Diakabi

chat with BV that he was not only elated but he never imagined that he will be that celebrated by the home crowd who were at the airport to witness the brief reception held for the entourage. Diakabi started his career as a pilot for Air Guinea, the country’s national

carrier before it went bankrupt and thus began his journey to where his services will be needed as a season and experienced pilot. This development made the Guinean Director of National Civil Aviation, Mamady Kaba to request for more opportunities for Guinean professionals that may be needed by Med-View airlines saying that Diakabi who was competent to be a Captain with the airline is a product of the standard of aviation personnel particularly those trained by the defunct Air Guinea. Alhaji Bankole assured the Guineans of the readiness of his organisation to open up more opportunities for those with relevant skills and qualifications as the business expands after the inaugural flight.


Med-View’s Inaugural Flights To Cote d’Ivoire, Guinea Conakry, Senegal Med-View Airline recently, launched its flights to three more countries along the West Coast to increase the number to six with the inaugural flights to Abidjan, Cote d’Ivoire, Conakry in Guinea and Dakar, Senegal. Below are the events as captured by BV.

Alhaji Bankole (m) with government officials who were on hand to receive the Med-View team in Abidjan, Cote d’ Ivoire.

Diector of Guinea National Civil Aviation Commision, Mamady Kaba, Nigeria’s Extraordinary and Plenipotentiary in Guinea, Ambassador B. M Mairiga and MD/CEO of Med-View Airline, Alhaji Muneer Bankole cutting the tape at the International Airport in Conakry, Guinea.

Officials of the Nigerian Embassy in Conakry; Counsellor, Mrs Yetunde Ogunsanya (m) flanked by Consular, Taofik O Coker and Second Secretary, Benjamin Felix.

Airport reception formalities held for the Med-View delegation by representatives of the Ivorien leader, Allansaine Quattara, inside the terminal building at the Airport in Abidjan. Alhaji Bankole (3rd right) with the Head Civil Aviation of Senegal, Madamme Sarr Aissata Ba and other while cutting the inaugural flight cake in Dakar.

Executive Director Business Development Med-View, Isiaq Na’allah (r) with Marketing/ Corporate Sales Med-View, Afolabi Olusola.

L-R: Senegalese Ambassador in Nigeria, Abubakar Samba and his Guinean counterpart, Gaoussou Toure.

The First Bank team led by Mr Ademola Adegbusi, (2nd left) on arrival in Dakar, Senegal.

The white cap chiefs from Lagos who were in the Med-View delegation.



Cover Story

DANGOTE: Africa’s Global Brand Over the years Nigerians have lived to celebrate foreign brands, largely because the country has been import dependent, one thing many even considered normal without weighing the implications for our own economy and growth as a nation. Today Nigerians are witnessing the emergence of a home-made brand that is taking other countries by storm, thus making Nigerians proud. Almost all known household items that were once rationed among Nigerians due to limited supplies are among the Dangote portfolios which are produced locally. While meeting local demands, the Group has ventured into other countries as a foreign conglomerate. This edition of BV examines the emergence of this undoubtedly leading Nigeria’s global brand. It also presents views of the CEOs of its major subsidiaries in the group. Enjoy the package. THE Dangote Group is first and foremost an indigenous brand, homemade and home grown brand that has successfully emerged a Nigerian multinational industrial conglomer-



ate. From the records, Dangote Group is reputed to be the largest conglomerate in West Africa and one among Africa’s largest on the continent today. It

generated revenue in excess of $3bn in 2015. The group is one of the leading diversified business companies in Africa. Today there are more than 26,000 people in its employment.

Cover story

DANGOTE: Africa’s Global Brand

Dangote’s cooporate head office , Marble House Lagos

The Dangote Group with its headquarters in Lagos has a diversified portfolio with interests across a range of sectors in Africa. Currently the Group’s investments include cement, sugar, flour, salt, pasta, beverages and real estate, oil and gas, petroleum refinery and petrochemical plant; the first privately owned in Nigeria and by extension Africa with other projects in telecommunications, fertilizer and steel. The Group focuses on provision of local, value-added products and services that are designed to meet the needs of Africans on the continent. Dangote Cement, the largest cement production company in Africa, with a market capitalization of almost $14bn on the Nigerian Stock Exchange, has subsidiaries in Benin Republic, Cameroun, Ghana, South Africa and Zambia. The conglomerate taking the world by storm today started as a trading outfit selling imported products most of which the Group now manufactures locally today. This strategy is seen running through the major subsidiaries that started with the buying and selling stage of the business before the strategy changed to that of manufacturing industries. This same concept is being replayed in most of the countries where the Group has shifted attention to for

investment. With the abundance of major raw materials in some of the African countries wisdom demands that rather than depending on importation, the products can also be produced locally to meet the demands of the consumers while at the same time providing employment opportunities for thousands of citizens who would have been jobless while the country is import dependent. Subsidiaries of the Dangote Group: 1. ALCO International Limited 2. Dangote Nigeria Limited 3. Dangote Transport Limited 4. Dangote Cement Plc. This accounts for over 60% of Group revenue and is on the Nigerian Stock Exchange. 5. National Salt Company of Nigeria Plc - also on the Nigerian Stock Exchange 6. Dangote Flour Mills Plc. – Listed on the Nigerian Stock Exchange 7. Dangote Sugar Refinery– Listed on the Nigerian Stock Exchange 8. Dangote Oil & Gas Industries International 9. Dangote Textiles Limited 10. Dangote Holdings Limited 11. Blue Star Limited 12. Dansa Foods Limited 13. Dansa Food Processing Limited 14. Dancom Technologies

15. Greenview International Company Limited - Has invested US$28+ million in cement factory in Ghana. 16. Sephaku Cement Limited Dangote Group has 64% shareholding in this South African Cement company. 17. Alheri Engineering Limited 18. Kura Holdings Limited. 19. AG Dangote Construction Limited 20. Sino Dangote Trucks Limited This Special report on the Dangote Group also features the Chief Executive Officers of the leading subsidiaries in the group who narrated the story of the success of their own companies which by extension accounted for the success story of the Dangote Brand. The trend in the group’s investment strategy is to gradually replace the consumers’ over dependence on imported brand by providing them with local alternatives which are better in quality, at the same time affordable and in the process has succeeded in forming strong bond between the companies in the group and their various target audience in their operations. The most widely spread of the Group’s investment, Dangote Cement, has not only emerged as the leading in that sector in Nigeria today but has also proved to be what an average consumer will ever desire to have. It has not just widened the gap when compared to other competitors but it is equally affordable, available and meets the desired quality for all seasons. In the process it has succeeded in forging a strong bond with the end users in such a way that it has left the competitors struggling not to lose more ground in the sector.



Cover Story

Dangote’s Portfolio: Meeting Needs Globally With Over 20 Products THE Dangote Group is a highly diversified and fully integrated conglomerate. The Group’s interests cut across a wide range of sectors in Nigeria and Africa. Current interests of the Group, which started as a trading company in 1978, include cement, sugar, salt, pasta, beverages and real estate with new projects underway in the oil and gas, telecommunications, infrastructure, fertiliser and steel sectors of the economy. The Group’s core business focus is to provide local, value-added products and services that meet the ‘basic needs’ of the populace. Through the construction and operation of large scale manufacturing facilities in Nigeria and across Africa, the Group is focused on building local manufacturing capacity to generate employment, prevent capital flight and provide locally produced goods for the people. Accordingly and in line with its core values, Dangote seeks to be a world-class enterprise that is passionate about the quality of life of the people and giving high returns to stakeholders. This philosophy is driven by its core values, which anchors on the platform of customer service, entrepreneurship, excellence and leadership. Going by the size of the conglomerate today, the mission has not only been accomplished and the organization has since surpassed meeting the basic needs of its target audience but has also ventured into other areas as dictated by its current



portfolio. We examine a number of them here CEMENT Cement subsidiary in the group is fully integrated and currently has operations in 14 African countries including Nigeria, Benin, Ghana, Senegal, Tanzania, Cameroun, Ethiopia, South Africa and Zambia, among others. The company operates three cement manufacturing plants in Nigeria namely the Obajana Cement Plant, the largest cement plant in sub-Saharan Africa with a current capacity of 10.25 million metric tonnes per annum and an additional 3.0 million metric tons per annum planned before the end of 2014; the Benue Cement Company Plc (BCC) with 4.0 million metric tons per annum production capacity; and its newest plant, the Ibese Cement Plant, with a capacity of 6.0million metric tons per annum. This has made it one of the largest

cement producers in the world. SUGAR The Group’s sugar refining business started in March 2000 at its refinery located at Apapa Port, Lagos. The current production capacity of Dangote Sugar Refinery in Apapa is 1.4 million MT of refined sugar per year. The capacity is currently being increased to 2.5MT per annum. This will make it the largest sugar refinery in the world. The Group imports raw sugar from Brazil and refines it into white, Vitamin A fortified sugar. The Group is the largest supplier of sugar to all industrial users as well as household consumers in Nigeria, catering for almost all the needs of bottling plants, bakery, confectionery producers and others consumers through a wide network of distributors all over the country. The sugar refining business was operated as a division of Dangote Industries Limited until January 2006 when it started as Dangote Sugar

Cover story

From Import To Export Of Leading Brands an installed capacity of 30,000mt per annum producing several variants of macaroni and spaghetti. Bag: The Group produces environmentally-friendly polypropylene bags for the packaging of its products – cement, flour, sugar and salt. Bag production is the sole business of the Group’s Dangote Agro Sacks Limited, which is able to meet Group’s current bags requirements and produces 500 million 50kg-bags per annum. Dangote Agro Sacks Limited now operates as a subsidiary of Dangote Flour Mills Plc.

Refinery Plc. It was listed on the Lagos Floor of the Nigerian Stock Exchange in March 2007. The Group also operates a sugar cane farming, processing and refining plant in Adamawa State known as the Savannah Sugar Company Limited. SSCL was established by the Federal Government in 1997. FLOUR The Group’s flour milling business was commissioned in 1999 and consists of facilities in Lagos - Apapa and Ikorodu- Kano and Ilorin. All mills have a combined milling capacity of 2.7 million MT per annum. The company imports hard wheat from the US which is then milled into 50kg bags of flour. The Company also produces confectionery flour, Semolina

and Alkama. The flour milling business was operated as a division of DIL until January 2006 when it transformed into Dangote Flour Mills Plc. DFM is now listed on the Lagos Floor of the Nigerian Stock Exchange. The division has three wholly owned subsidiaries, Dangote Pasta Limited, Dangote Noodles Limited, (recently sold to Dufil Foods, makers of Indomie) and Dangote Agro Sacks Limited. Pasta: The Group’s pasta production business commenced in June 2000 at Nigerian Ports Authority, Ikorodu Terminal –Lagos, Nigeria. The Dangote Pasta Plant, started business with a single production line, churning out two million cases of spaghetti of 10kg per case. The factory currently has five lines with

Continues from page 17

SALT The Group’s salt production and refining business started at Apapa Port in September 1998. The company currently has 400,000 MT per annum of installed production capacity for Industrial Salt- 25-50kg bags of salt and 100,000kg per annum for Domestic Salt in smaller sachets (250g, 500g and 1kg) of salt. To improve efficiency, the salt division currently operates under the Nigerian Stock Exchange listed National Salt Company of Nigeria Plc (NASCON), a company in which the Group has majority control. PORTS OPERATIONS The Group is one of the concessionaires under the Federal Government’s concession arrangement for private sector involvement in the management of Nigerian sea ports. Under its wholly owned subsidiary, Greenview Development Services Limited, the Group currently manages Terminal E of the Apapa Port, Continues on P18



Cover Story

Dangote: Turning Liabilities To Assets

Continues from page 17

Lagos. The Group’s Ports operations include stevedoring, terminal operations and bulk cargo operations. HAULAGE The Group runs a thriving haulage business which it operates as a division under the name Dangote Transport aka DanTrans. It provides freight services with a fleet of over 5,000 trucks under commercially competitive terms, to subsidiaries in the Group to facilitate transport of raw materials from the sea ports to factories located inland and distribution of finished goods. REAL ESTATE The Group owns real estate assets at various locations in Nigeria including Lagos, Cross River, Kano, Rivers and Abuja. The Group’s real estate assets include warehouses,



flats and commercial offices. TELECOMMUNICATIONS Dancom Technologies Limited (Dancom) is a subsidiary of the Dangote Group, set up as an independent telecommunications company to provide and also manage the telecommunications interests of the Group. Dancom Technologies is a telecom service provider pioneering new technology in the deployment of fiber optic cable network in Nigeria. STEEL PRODUCTION The Group acquired the assets of Oshogbo Steel Rolling Mills in line with the privatization programme of the Federal Government. The company currently operates as Integrated Steel Plc and produces steel bars and rods with a production capacity of 400,000 mt per annum.

Energy: Refinery, Oil and Gas The Group is a strategic investor in a number of upstream oil and gas projects in Nigeria and is at an advanced stage of project development in the downstream sector. The Group has also ventured into power generation (coal), gas exploration and fertiliser production. The group is also about to complete in 2018, the first indigenous privately owned Dangote Petroleum Refinery and Petrochemical plant in sub Saharan Africa. BEVERAGES Dansa Foods Limited manufactures and sells products in the Non Alcoholic Ready to Drink (NARTD) market of the Nigerian soft drinks industry. LISTED COMPANIES The Dangote Group currently has

Cover story

Dangote: Turning Liabilities To Assets

four listed companies on the Nigerian Stock Exchange (NSE) as part of its vision of being a world-class organisation. They include Dangote Cement Plc, Dangote Sugar Refinery Plc, Dangote Flour Mills Plc, and the National Salt Company of Nigeria (NASCON). Dangote Cement is the biggest quoted company in Nigeria, accounting for about 30 percent by volume of the NSE. This follows the historic merger between Dangote Cement Plc and Benue Cement Company Plc (BCC), on October 26, 2010. CORPORATE SOCIAL RESPONSIBILITY INITIATIVES As should be expected, Dangote Group is fully involved in Corporate Social Responsibility activities, which it executes through the Dangote Foundation. The Foundation intervenes in the areas of health, education and empowerment. The Foundation is also involved in providing humanitarian aid to victims

of natural disasters both within and outside the shores of the country. The Dangote Group has resolved to touch the lives of Nigerians and is committed to complementing government’s initiatives in making the economy private sector-driven. Dangote Group is today a testimony of successful and rewarding private entrepreneurship.

KEY MILESTONES • Dangote Cement Plc is currently the largest quoted company on the Nigerian Stock Exchange (NSE) accounting for about 30 percent of the entire market capitalization • Dangote Cement Plc is also the biggest quoted company in West Africa. • Dangote’s Obajana Cement Plant is the largest cement plant in Sub-Saharan Africa with a current capacity of 10.25 million metric tonnes per annum. • Dangote Sugar refinery is the largest sugar refinery in Sub-Saharan Africa and the second largest in the world. • Dangote Group is currently building the first privately-owned petroleum refinery in Lagos and also owns the largest fertiliser plant in Africa located in Edo State.



Cover Story

Ibese Cement Plant, Nigeria

Dangote Cement: The Group’s Leading Subsidiary With Plants in 10 African Countries ...Still Counting DANGOTE Cement is the group’s cash cow and the leading in investments and establishment of plants outside the country and into many African countries to date. Dangote Cement is Africa’s leading cement producer with 44 million tonnes per annum (Mta) of capacity operational at the end of 2015 in Nigeria, Cameroon, Ethiopia, Senegal, South Africa, Tanzania and Zambia, as well as an import terminal in Ghana. Headquartered in Lagos, the Group is managed by an executive team led by the Group Chief Executive Officer (GCEO), who reports to the Chairman and the Board of Directors. Dangote Cement has three re-



gions: Nigeria, West & Central Africa and South & East Africa, each with its own CEO and CFO reporting to the Group CEO and Group CFO respectively. The Company that became Dangote Cement was founded at a time when Nigeria was almost entirely dependent on imports. Indeed, importation of cement was our main business for many years until the Federal Government launched its industrial policy of Backward Integration in 2002. This bold initiative was designed to reduce Nigeria’s dependence on imports by encouraging the industry to build enough capacity to serve Nigeria’s needs, not just in that decade but long into the fu-

ture. Probably Africa’s most attractive market for cement, Nigeria has substantial limestone and energy resources, a large and increasingly prosperous population, strong GDP growth and a pressing need to improve infrastructure and housing on a massive scale. Dangote Cement Plant, Obajana in Kogi State, Nigeria, is the largest in Africa and one of the largest and most profitable cement factories in the world. Employing thousands of people directly and indirectly, it was opened in 2008 as a 5Mta plant and has twice been extended in size. Although Obajana is primarily gas-fuelled, we recently commis-

Cover story

Dangote Cement: The Group’s Leading Subsidiary With Plants in 10 African Countries ...Still Counting

Dangote Cement Ethiopia

sioned coal facilities to fuel its kilns as well, being significantly cheaper as a back-up fuel than the low-pour fuel oil (LPFO) we had originally used. Dangote Cement Plant, Ibese in Ogun State has four gas-fired cement lines with a combined capacity of 12Mta. Its first two lines were inaugurated in February 2012 and the second pair of lines came on stream in 2014. Dangote Cement Plant, Gboko in Benue State has 4Mta of capacity. Acquired originally during the privatisation exercise in Nigeria, we refurbished and upgraded the plant to its present capacity. Originally designed to use LPFO, Gboko is being equipped with coal milling facilities so that its kilns can run more cost-effectively on the cheaper fuel. Gboko was mothballed throughout most of 2015 as we shifted production to cheaper gas fired lines at Obajana and Ibese.

Dangote Cement, Cameroon

The invasion of Africa began 2015 with Dangote Cement plants in Senegal, South Africa and Ghana Cameroun, Zambia, Tanzania and Ethiopia. In the coming years, the company has plans to extend its ement plants to more Africa countries to

include; Kenya, Liberia, Mali, Niger and Zimbabwe. The company has also announced plans to venture beyond Africa for the first time and build a plant in Nepal to serve local and export markets.



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L-R: Representative of President Mohammadu Buhari, the Minister of Mines and Steel Development, Dr. Kayode Fayemi; President/CE, Dangote Group, Aliko Dangote; President of the Republic of Congo, Denis Sassou Nguesso; Prime Minister of Congo, Clement Mouamba and the Nigerian Minister of Industry, Trade and Investment, Dr. Okechukwu Enelemah at the commissioning of 1.5MMTPA Dangote Cement Plant, Congo, held in the Republic of Congo on Thursday November 23, 2017

New Congo Cement Plant: Dangote Stirs Industrial Revolution In Africa- President Nguesso PRESIDENT Dennis Sassou Nguesso of Congo Brazaville has described the new Dangote Cement Plant inaugurated in his country in November as the needed catalyst for economic and industrial development in Africa. Speaking at the inauguration of the cement plant, President Sassou Nguesso said the investment was an industrial revolution, sort of, within the Economic Community of the Central African States (CEMAC), saying his country was happy to host the investment. According to him, his government has observed the operations of Dangote cement in other African countries and it has helped buoyed their economies by sparking off other al-



lied industries expressed the hope that Congo situation would not be an exception. The Congolese President described the coming on stream of the Dangote cement as timely and encouraging because it starting operations at a time the total government revenues have plummeted by 31.3 percent and revenues from the oil sector have fallen 65.1 percent since 2015 due to a slide in global crude prices. President Mohammadu Buhari who was represented at the event by a powerful delegation led by the Minister of Mines and Steel Development, Dr. Kayode Fayemi commended Alhaji Aliko Dangote and his Cement Company for championing economic

renaissance of Africa with the construction of cement plants across several African countries saying the sterling accomplishment makes the Dangote Cement brand, and indeed Aliko Dangote himself, worthy ambassadors of Nigeria. President Buhari said his government has consistently supported and encouraged the Dangote Group in its quest to contribute its quota to the economic emancipation of the African continent, which is blessed with a plethora of natural resources. “I believe that it is only home-grown practical solutions that can address the myriad issues plaguing Africa today and one of such challenges that Africa has been grappling with for decades

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is the infrastructure deficit. I am confident that massive investments in cement production, which is a key driver of infrastructural development, will contribute in no small measure, to addressing this perennial problem. “ President Buhari recalled with satisfaction that local cement manufacturers such as Dangote Cement, Lafarge and BUA, have exploited one of the solid minerals, limestone which is a basic input for cement production and which Nigeria has in abundance, in different parts of the country to achieve self-sufficiency in local cement production in 2015, and is now a net exporter of the product. “The backward integration policy of the Federal Government in the cement sector, which was launched in 2002, has contributed to this success story by successfully substituting imports with local production, we have saved over $2billion spent on cement importation into Nigeria, annually. “We have also started using cement for road construction in the country due to its numerous advantages over the more common bituminous road. Again, in this area, Dangote Cement is leading the charge, through AG-Dangote, its joint venture with Andrade-Gutierrez, a construction giant in Brazil”, Nigeria’s President stated. Chairman of Dangote Cement Plc, Aliko Dangote in his address said his company was delighted to have completed the plant on schedule saying the addition of Dangote Cement’s 1.5 million metric tonnes per annum plant has more than doubled the total cement production capacity of Congo-Brazzaville, which now stands at 2.550 million metric tonnes per annum, far in excess of national de-

mand. “It is envisaged that this will contribute substantially to the availability and affordability of cement in the country and the Republic of the Congo will no longer need to depend on imports to bridge the gap between demand and supply. “It is our hope that the inauguration of the plant will boost Congo’s economy, conserve foreign exchange that would otherwise have been spent on imports for the country, and create employment opportunities down the value chain.”, he stated. Dangote commended the Congolese government noting that the bold economic reform measures put in place by President Denis Sassou Nguesso administration have been quite salutary. “The construction industry, which is a major sector of the economy, is a beneficiary of his policies, and has been receiving the attention of investors. We believe that our investment will contribute to Congo-Brazzaville’s current economic renaissance under the leadership of the President Nguesso.” The Company Chairman pointed out that his organization received tremendous support and encour-

agement both from the government and the people of Congo-Brazzaville, right from the conceptualisation stage of our project, to its final completion, and commissioning. In appreciation of the good gesture of the government and the people, Dangote disclosed that without waiting to stabilise production, the Cement company had already commenced CSR projects with the construction of a road with a length of 30km around Yamba, which would have cost the local government approximately 240 million CFA to execute. He stated further “we have also disbursed scholarships for students and we are also building a school and renovating a hospital within our host communities. Apart from these, we have repaired a dilapidated bridge on a major highway at a cost of $300,000, to enable heavy duty vehicles to cross the bridge. As a policy, we also ensure that we give priority to qualified indigenes from our local host communities in our recruitment drive.” Dangote told the gathering that Dangote Cement total production capacity across Africa at the end of May 2017, stood at 45.8 million metric tonnes per annum, making it one of the biggest cement producers on the continent adding that the aspiration is to rank among the top 10 cement producers in the world by 2020. Dangote cement commissioned its cement plants in four African countries namely: Ethiopia, Zambia, Cameroun and Tanzania. The Congo-Brazzaville plant, which began operations in the third quarter of 2017, will be the fifth cement plant that would be inaugurated in the last two years.



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We Produce, Sell Our Brand In Over 10 Countries - CEO, Dangote Cement Dangote Cement is not just the leading subsidiary in Dangote Group but also a leading brand in the global cement industry given its spread and acceptance in countries where others fear to venture. In this interaction with the BV Team in his office shortly before he stepped aside, the Group Managing Director, Onne Vander Weijde, explains the strategy that has made Dangote Cement a truly global brand as it continues to blaze the trail in markets where other competitors from Europe and the United States dare not to come. Enjoy the package.




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‘We’ve Succeeded In Backward Integration Policy’ I CAME here in early 2015 to join a Nigerian cement producer and we were making about 30million tons of cement. In the last two to three years, we have seen a tremendous growth, we have now basically doubled production, doubled sales and we operate in more than 10 countries. We are no longer a Nigerian company only. We produce and sell cement in over 10 countries in Africa and so we have become more and more a known entity and brand in Africa. How would you describe the Dangote Cement Brand in other African countries? I think we are very well received and the reason is that, we produce very quality cement; we are recognized that we produce quality cement than others. A lot of others produce 32.5kg in large quantities and we produce 42.5kg which is a superior quality but we are selling almost at the same price as the inferior cement. People just loved us. The second point why they do like us is that we are building new factories and providing a lot of employment. In every country we easily employ two, three thousand people, direct employment is really big. Another element of what they like in us is, we are building and investing in new factories, new state of the art and modern factories. We bring a lot of foreign direct investment to the other African countries. I think to round it up, we also employ a lot of transport trucks

an African company. How do you rate Nigerian consumers with other Africans? Every consumer in every country and even in Nigeria is very different. Every customer is unique. What is the uniqueness? We employ a lot of local people particularly in sales and marketing. We have local people who understand the demands, wishes and requirements of the areas in which we operate.


They do recognize us they do prefer our cement. A lot of people are even proud this is an African company and we make sure that even the areas which are normally more difficult and expensive to reach, now get their cement. I think there is a lot goings for us and it is recognized. When I started, a lot of people were sceptical; how an African company beat international companies can and they were a bit sceptical. That misconception is completely gone. If you are now in whatever country and nobody asks you how you are better than others. They do recognize us they do prefer our cement. A lot of people are even proud this is

In terms of revenue, is the cement taking the lead? Yes you are right. It is something that we as a company believe in because what we have been able to do is what we believe in. We have been successful in backward integration in Nigeria. We started with importing cement and distributing it, then started to do more and more inhouse and now we produce our own cement in Nigeria, we even now export and make Nigeria a net exporter of cement rather than an importer. We have been the most advanced in executing that strategy of backward integration especially producing locally. And to do that, we not only produce our cement locally. We also do our own electricity generation. We now produce our energy in the form of coal, we no longer import coal so it is a very strong part of our strategy that we produce locally and I think cement has been the most advanced in making everything locally. Continues on P26



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‘Sub-Saharan Africa Has Capacity For More Cement’ In my own view sub Saharan Africa can not only triple but can quadruple in capacity in a month in the next decades to come. This is the next exciting market to be. We do not have enough Continues from page 25

Do you do the same thing in other African countries? Yes, so if you look at Tanzania, we are now producing locally and also, there we are building an electricity generating power plant; we are investing in coal mining. Another reason why we are so profitable is because the profit is to be made. If you can avoid all the transport cost, additional duties, the handling cost and if you can employ Nigerians, Tanzanians, Ethiopians locally, you create employment and it is good for us too because you reduce your cost. Beyond Africa, what other countries are you looking out for? We look especially at what makes us successful because what we like is the strategy to replace import with domestic production. We like especially countries where that is the case. For example, Nepal does import almost all the cement needs from abroad so that is where it fits



our strategy very well. We are looking at other countries and especially we look at countries where our business module, our way of operating, our Dangote ways of working give us benefits. You can be assured, I have worked in Asia all my life, I have worked in the United States, Europe, I am very familiar with Latin America. We look everywhere. Technically speaking, do you still see the opportunities of having more cement plants in Nigeria? Easily, I can just give you a comparison; I am not just talking about Nigeria, but sub Saharan Africa. Sub Saharan Africa has about a billion people and has about 100million tonnes cement a month and has about 135 million to 140 million tons capacity. If you look at the group, it is almost the same population so to say as India. I went to India at the end of 1990s to 2000. India has the same amount of production capacity in a month say, about 100 and 130 million tons.

At the moment I think the demand is about 260 to 300 million production capacity. In my own view sub Saharan Africa can not only triple but can quadruple in capacity in a month in the next decades to come. This is the next exciting market to be. We do not have enough. Absolutely, this is only the beginning. Within the group, would you describe cement, as the cash cow, a leading subsidiary? For me, we are managed as a separate unit; we have a separate independent board. We have our shareholders. I am reporting to the board and I have to comply with the rules and regulations of the Stock Exchange. In terms of number of plants outside Nigeria, can we say you are leading? Absolutely. Like you know, in a portfolio, there are always opportunities, they have to see how they allocate capital like

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‘With New, Modern Plants We’re Miles Ahead’ we have to do for ourselves and I am sure there are other projects in the portfolio. Like flour was once the biggest. Who knows, I am not worried for a foreseeable future, we can quadruple easily in decades to come, there is a lot of growth ahead of us. How do you see other subsidiaries in African countries? Well, if I can mention one example close to that is the bag manufacturing company. We have a separate unit in DIL a sister company which manufactures bags and because we are a consumer of bags as well, in Ethiopia, we established a plant of which we are the consumers. If that is exactly the example of what you mean, it is where there is a synergy in using our familiarity and infrastructure in other countries for a subsidiary. Flour is a little bit more at a distance because production is very rural. In import, export we can have some synergy, sometimes both occupy a place to berth in the harbor. So, there are some synergies but not as much as with bag manufacturing. How would you rate your performance on the stock exchange? The stock exchange performance so far has been excellent. We are basically part of the overall climate. I think especially local investors can invest in interest bearing instruments that give them cash returns, or shares that can give them the best cash return in dividends. They can get much higher cash rewards by just putting money in a fixed deposit. Whereas foreign investors don’t like to invest in Nigeria because of

the not easily convertibility nature of the naira (the local currency). So actually, I think our stock is way undervalued and doesn’t show the true performance. It’s not been effective in the share price at all. So what is your suggestion going to be? I hope that the Central Bank Governor and the government have to do what they have to do and they know the total picture for the country. From my limited selfish interest, specific to the stock market, I will like to have a freely convertible currency so that you can go in and out freely so that international investors can participate in what I consider a success story. What of stock market outside Nigeria? That is true. That is another possibility that we can do, you know in our board, we regularly review this. The issue is we have a very luxury problem, we don’t need the money.


How can I persuade the Board to do a capital increase and also a capital raising and I get more money and I don’t know what to do with it. I pay a very good dividend, very strong balance sheet, very low level of expenditures. As a company, I don’t need the money so how can I justify this to my shareholders that I get diluted for what gain so this is very luxury problem that I have. Did you move from a lower grade to a higher grade? The issue is we have never produced a lower grade. It’s a competition. Like I mentioned in the 32.5 and 42.5, we are predominantly 42.5kg cement producers from the beginning. I am surprised, because I read this discussion two, three years ago but now we have proven that we produce more superior qualities than others and the good thing is even when here in Nigeria, there was Continues on P28



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always discussion going on everywhere else, if you go to Senegal, if you go to Ethiopia, ask us about our cement, people didn’t hear all these rumours which competitors planted. It’s not an issue at all, if anything at all professional builders and customers said they are happy we came into the market. How have you been able to manage competition and competitors? Actually we see that everywhere else. We are forcing people to increase their quality and I can tell you that why we are producing a better cement than our competitors. You know we were seen as African Nigerian Company, so we said to be accepted is like being a wife. If you want to break through the glass ceiling, you have to be three times better than anybody else and we said as a Nigerian African company, to compete with the multinationals, who are doing it for 100 years, it is very easy to have a campaign by them saying this is a Nigerian company they cannot produce quality product. To avoid that, we have to go one notch up and this is what we have done everywhere and it works beautifully. The proof is in the pudding. We have 25 to 30% market share in Senegal after two years, there are competitors who are there for 100 years. In South Africa, where they have a 150 years history of making cement, I ‘m not allowed to disclose but we have close to 20% share for competition reason. In Tanzania, we have being in operation for a few months, we have more than 20%, in Ethiopia we have 30%, Cameroon, we have close to 50%, Ghana we have 20%. You know they love our cement and you know they say basically, you give us a quality 28


‘We’re More Committed Than Others’

Most of what you see were all built in colonial times and nobody wanted to spend money after that, they say Africa is way too dangerous and whatever discount for the same price, they get more quality and once they start to see that, now they say we are willing to pay more for your cement. First you get the volume and that is your first recognition. The second, they prefer you and want to spend more on Dangote cement. How have you been able to manage competition coming from Europe and other continents? I think we are much more committed than others are and you know

that’s why for example; the best example to use is Nigeria, if you look at Lafarge. I don’t think they have built a new cement plant for 25 years. Most of what you see were all built in colonial times and nobody wanted to spend money after that, they say Africa is way too dangerous and whatever. You see that even the Lafarge, the Heidelberg. Nobody does what we do. We put a new cement plant in Tanzania for about five to six million dollars. A new cement plant in Ethiopia. No other foreigner would have done that. Why do we have better, quality cement? We have new state of the art modern facilities, nobody else has that. I will almost say it is easy to be better. We can beat competition easily. South Africa is other extreme example. I think South Africa with the exception of another small Chinese plant coming up or have come up, otherwise all the cement plants in South Africa and everybody is saying how

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‘Concrete Roads Are Better Than Asphalt’ can Nigeria compete in South Africa. It was almost too easy because they had not built a new cement plant for 30 years. What they have is old, it’s small, it’s tiny, and it’s outdated. If you have the vision, like Dangote, if you have the courage to invest, you can be miles ahead. I think people do not understand how many opportunities there are in Africa if you dare. And that’s why it is very logical why we make better quality cement, there is no magic. This is the recipe, build a new modern plant and you will be miles ahead and let somebody else who has not invested in anything for the last 30 years, complain about it, they just cannot keep up with us. What do you think has been scaring others away from investing in Africa? Think about this. For example, if Lafarge is to build a new plant here. It is $600 million for a good sized plant. So you do it and you make some profit and now you want to get your money out, you want to get some dollars and you can’t get it What are the shareholders in Europe going to say? Stay out of Africa, build the plant where you can get your money out. Now Dangote believes these are all temporary problems, they will go away soon. In Ethiopia, we have a similar problem, currency is very difficult, not a lot of foreigners at the moment, they don’t want to get in because of currency, frequent changes in policy. But as they say, Dangote is the son of the soil. He knows the terrain. It is important to me, I came across these questions two years ago, by now, and we

have proven it so I don’t think I need to impress you. For me it is an important question. There is nothing behind the screen. The logic can be explained. Yeah, for example, I am saying this and very proud of it, go to other competitors and look what’s coming

It is more important for me to create 300,000 new jobs than a photograph in the newspaper that I give money to somebody out of the chimneys, it’s like you are under the rain. So much dust is coming out. Then drive further and go to our plant and I follow it. In pollution, we have the equipment, we measure them, and these are modern plants. Most of our plants have equipment to measure it. Dust is measured in grams per millimetre and that is about 20, 25. Most of our plants are below 50 which is the best norm in Europe. Even in Europe, they allow a

100, we are in 25 usually, I don’t want to know. This is just for my environment. If you have a new plant, get the newest techniques. This is something I don’t have to persuade, just drive there and see it What are the other things you do to improve the lives of the people apart from just doing your major assignment? We are reinvesting and reinvesting. That is why he is better than most Europeans He is building new plants all the time. Every dollar we earn in a way is reinvested. And I think I will like to spend a little bit more time because am a little bit frustrated with something and that’s what you do and what everybody does. I have signed 10,000 new employment letters in my two and half years here. Again, if you look at it, you are Lafarge and you have been here for a hundred years and you have always had and probably have more employees and they have over the years retrenched. But you know they made that investment hundred years ago. I think what is really important is Continues on P30




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‘No Culture Shock In Other Countries’ Asphalt roads get pot holes very easily in the rainy season. Asphalt melts but concrete doesn’t more and I said yes I will listen but the amount of money I want to allocate. It is more important for me to create 300,000 new jobs than a photograph in the newspaper that I give money to somebody. Weijde

Continues from page 29

they didn’t really create new jobs and I think the value for a society of building a new factory is building new jobs and that is where I feel I am unfairly treated because the value of a new job should be so much highly ranked and be talked about. That is, you create new jobs because everybody asks us do you give some water, do you build new roads? You know which is more important and relevant and that is all we all do and so we have a programme and we help them with water, with school and all of that. But what we do is we create new jobs. Usually where we are if you go to a plant that was in a village of about 500 people and now there are about 25,000 people and off course they say, give us road, give us school. But everybody forgets that there was nothing and we have created thousands and thousands of new jobs. I know that Dangote has a vision to create 300,000 jobs in Nigeria. That is something. We live in an en-



vironment and we have to support then and we do. The main emphasis for us in Dangote is that we are industrializing Africa. We are creating new jobs. We are not importing. We are no longer flying by night. We are not repatriating money, all the money is here. How do you intend to meet other demands of the people? O yes, once you have done something, they want more but as a business leader you also have to say they will be asking for more and they will make critics and for them it is relevant and important and we should listen and communicate and see what we can do. Another thing that is important is once you start giving money to a few people. That will be at the expense of creating a new factory and creating another 10,000 jobs. As a business man also in social dimensions, you have to think about what is the best investment if I listen to a lot of people who complain around me and they always ask for

Would you say replacing asphalt with concrete on our roads is better? It is very simple, we have concepts to look at project and road is a project. It’s an investment project. So you use a concept called total cost of ownership. You look at what is the lowest cost over along period because one thing is quality and you can take it from me concrete is much more durable and producing it is much more expensive and a lot of countries certainly when the interest rates are high, you say a concrete road is better but you know you use asphalt. You have to look at what is the best situation. A concrete road is much better quality than asphalt. Now where does it make sense to use locally and again this is our philosophy. Cement we now produce locally, as for the import so why would we export our jobs away. Let us produce in Nigeria, let us not use foreign dollars, let us use naira and for a government. They will save the dollars to start with, probably the cement is cheaper to start with and

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‘We Have Hired A Lot Of People’ it has a better quality so it’s a very compelling story. Now for me as a technical person, it’s very obvious and very easy. Why a lot of roads are still being built by asphalt is in the life of a politician, it is often four years, it might be more attractive to use asphalt. Yeah, and that is not their problem and the concrete are lying there. So maybe all the roads we should give the name of a politician so they could be proud about their four years. How would you describe your concrete road project? I don’t think it is completed yet, but we have built other roads. Again, I encourage you to go and have a look. The difference between a concrete road and asphalt is huge and especially for a country like Nigeria where you have a lot of rain and especially concrete road is never influenced by the rain. Asphalt roads get pot holes very easily in the rainy season. Asphalt melts but concrete doesn’t. Do you see cement having a synergy with the petroleum refinery coming on stream soon? We are the suppliers of cement to them but relatively, they are big, very big but for us, it’s just one customer, so you know, it’s important and a nice customer, no doubt but it’s a customer. We do not have a technical synergy because at the moment, I think as a conglomerate, there are other synergies like if you can work together to have similar processes, reporting systems, policies, that is where you have synergies that is in the administrative areas and you

have more unity and lower fixed cost and that’s it. You know, we are big in our own right to be what we are. How have you been coordinating your operations in these countries? No, you have to have a good team and good people. I have CEOs in all the countries. Yes, I visit them and I have a performance review every month which we do by phones. I discuss with their team and my team here one and half hours in a month intensively how they are doing. I have a technical team, if there is a technical problem. I have a marketing team for marketing support so by function we can give support as a management team we can give support. That is the advantage if you do only cement. Yes, complexity comes from other countries but the complexity comes not from our product and we have being doing this for a long time so I am used to it. How do you cope with the issue of expatriate quota in these other African countries? We have rules and regulations that we comply with and that is nothing new to us so what we do and am very happy at what we do, we have best practices, we have Compliance Officer. For example, we have our own team, what CO does, we discuss that and there is whole governance so if you look at our report, we do a lot governance. We have like I said a board, we have independent members, every independent member is a chairman member of a committee, it can be other than risk, it can be governance and remuneration,


finance committees, technical committees, they are all chairing. So it’s such I have many bosses who are looking over my operations, my finance, my legal situations, my risks. I have to make sure they get the information so that they check that I am in compliance with all the laws of the country. One of the things I have done, not only do I have a CEO but there is a board in all the countries and in that board, they have to report on all the risks. They have to report on compliance and we are consolidated here so I have the view, I have a long list of many pages and if I go to Tanzania, I take it with me and I say these are all the rules and regulations you have to fulfil and you say this is from technical, this is from emissions, this is environment, this is from health Continues on P32



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‘I’ve Acquired Vast Experience In Cement Industry’ Continues from page 31

and safety. There are almost long list of things you have to do and every month , I look at them and I do a colour coding , red, green, yellow and I say what are we doing to follow it up. There is a whole structure in our governance and how we address it. I think again, if you look at it, we want to be good in not only making cement. If you look at our governance structure, we are one of the best companies certainly in Nigeria. Our chairman has said, maybe I have a different plan and I want to buy Lafarge and I need money, we should be ready. We want to make sure that in our governance we are ready to do that anytime Any incidences since you started from any of these countries? Of course that is what you have to do and work on and that’s why you have the structure in the reporting and oversight all the time. You know we are a fast growing company, Any threat to your operations in these countries? You know you always have the environment around you who want to have more. You have politicians, once they are there, they always want to have more money and once you are there they see you as a profitable business and they say. You have all these issues, am smiling, I like my job but it’s not as easy as it looks. I am sure Dangote gets more but you always see him smiling. When should Nigerians also be looking at Dangote Cement, perhaps taking over the building, es32



We all want to have a nice life, love our families; we need our jobs, have our dignity, we want to earn some money. By and large, we are willing to cooperate and not to fight

tates, giving us durable structures with the approval from the board? We do and we have. There are two things, we have grown very fast and

we have hired a lot of people. Really we need more certainly in the senior management that cannot be created over night. We have an academy where we train indigenous people both in Nigeria and abroad and we have a policy that every year we want to train so many people, prepare them for management and we want to replace foreigners with indigenous people. We have a programme to do that. For example, we had a third party contractor in Senegal which was working with us and we have worked on a programme with a complete technical team which we had had first from Egypt, then from China which we have released. We have replaced them with our own people. Still may be there are no Egyptians, no more Chinese but we have a few Europeans and quite a few Indians so it’s still a lot to complete. It is a process with what we are doing How are you coping with cultural issues in some of these countries particularly language? In Ethiopia, if a customer doesn’t speak English, I ask him to bring somebody from his office which he trusts and usually that is happening. When I was in Ethiopia, they brought in interpreters themselves so we can have a conversation. And I think culture is very important and it’s a lot better if you understand the cultures. But you can always look at the differences and in the cause of differences they can be and all of that. I am much more of an optimist. I see much more similarities. We all want to have a nice life, love our families; we need our jobs, have our dignity, we want

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‘I’ve Acquired Vast Experience In Cement Industry’ to earn some money. By and large, we are willing to cooperate and not to fight. These are all the extremes of human kind when things don’t go on well. I am an optimist, I don’t have a problem. I look at the communality not the differences. How many languages do you speak? I speak three languages English, Dutch, German and some French. Your Background: I am 53, married; I have two sons; 22 and 23. The 23 is working in Netherlands and 22 is still doing his Bachelors degree also in the Netherlands. My wife lives with me but she travels to see the kids and to see her parents. I have been here in this position for the last two and half years and before that I was in India for about

nine years in the cement industry. So if I go back to where I was responsible for in India, I was responsible for Sri Lanka, South Asia among others. What I was responsible for was about twice the size of what we have here now. I have a few numbers of factories so I know the problems. We were also a listed company. We have the board, we have proper governance, and we have shareholders in the US, UK, South Africa and the Middle East. I did that for about nine years. Before that, I was also in the cement industry in Indonesia. I was there for about four years. Before that, I was in Australia for about two years and I have been in Switzerland for about three years. Before that, I was in Holland. I started my career working in the investment bank and I worked for a law firm. I had one customer who was based in Switzerland, he was

making cement and I did so much for him. He says I am going to talk to your boss and you have to come and work for me and we would make a deal with a law firm I was working for. I went to Switzerland that was about 20 to 25 years ago and I started with cement and ever since I have being working with cement. My study, I have done MBA in England, I have done the senior management programme of Harvard in the US. I have lived in many places. My experience In Nigeria is Very good, like they say, the reputation is much more than the reality, I find it very pleasing. I love India for a lot of reasons but life is easier here than it was in India. I have a sailing boat here. I go sailing and I love horse riding as well. I go sailing on the sea. BV



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Our Focus: Legacy of Quality Public Infrastructural Facilities - MD, AG Dangote AG Dangote is a construction firm established from the partnership of the giant Brazilian firm in the construction industry; Andrade Gutierrez and Dangote Group, whose aim is to establish a legacy of building quality infrastructural facilities as the bedrock for economic growth. In this interaction with the BV team, the MD, Ashif Juma, gave an insight into his assignment and some of the works executed in the country.

About AG Dangote? Andrade Gutierrez Group (AG) from Brazil and the business conglomerate, Dangote Group which is the largest private group and cement producer on the African continent, and which also operates in the food, real estate and port logistics sectors in Nigeria, established a joint venture company to provide services for the infrastructure sector. AG Dangote aims at developing infrastructure projects in Nigeria and keeping close tabs on concessions, Public Private Partnership (PPP) as well as other business opportunities in the sector. We have Aliko Dangote as the Chairman while I am the Managing Director with other Directors on the board. Projects executed? Well, the AG Group is one of the largest infrastructure conglomerates in Latin America. It was founded in 1948, in Brazil. AG is renowned for expertise in heavy construction and can boast of results of successful investments in the fields of telecommunications and concessions across all business areas. Today, the company has behind it a long his34


tory of projects undertaken in 40 countries. We constructed D.Pedro road in Brazil, Lubango International Airport in Angola, Quattor Chemical Unit in Brazil, Ghardaia Pipeline in Algeria and the National Stadium in Brazil. In Nigeria, we have executed the Ibese concrete road, the Apapa road construction and Obajana road construction and we are still going to construct more. Which other countries do you operate? We are in 40 countries which include Algeria, Antigua, Argentina, Brazil, Angola, Cameroun, Peru, Portugal, Qatar, Saudi Arabia, UAE, India, Iraq, Libya, Mali, Bahamas, China, Greece, Iran, Panama, United States, Mauritania, Haiti, Chile and many more. We have up to 200,000 work force across the 40 countries where we have our operations. What is the company’s CSR policy? The AG management system policy is focused on sustainability, innovation, and knowledge manage-

Ashif Juma

ment, social and economic aspects. AG’s Corporate Social Responsibility guideline complements this policy and helps disseminate the culture of sustainability to the company’s different projects in a simple and educational way. Social-environmental responsibility and workplace safety are considered key factors. BV

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Dangote Foundation Brings Relief To Poorest of the Poor The focus of Dangote Foundation is encapsulated in the uniqueness of its services to the society at large. In this interaction with the BV team, the CEO, Zouera Youssoufou, explains that the Foundations now operates as a full fledged private philanthropy platform of its founder, Alhaji Aliko Dangote and that is is not for the Group’s Corporate Social Responsibility (CSR) as many would want to think. Using her vast experience in working with such global organisations as World Bank, Youssoufou narrates the outreaches of the Dangote Foundation. They are the outlets through which she hopes to achieve the vision of its founder.

ABOUT Dangote Foundation? Dangote Foundation is AlikoDangote’s private philanthropy. It was incorporated in Nigeria in 1993 and we have been doing a lot of work. There was a time an issue came up on whether it was a corporate or a private foundation. So in 2014, a separation happened and was endowed with N220bn and the sum of $1.25m was injected thus making it the largest private foundation in Africa. We now have a Board. Aliko Dangote Foundation is really focused on bringing relief to the poorest of Continues on P36

Zouera Youssoufou



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‘We’re Africa’s Largest Foundation’ Continues from page 35

the poor. It is the Group President’s vision and that is why we made it a private foundation. We do not engage in Corporate Social Responsibility (CSR) for the Dangote Group. If Cement wants to do CSR, they do it themselves but we can give them advice, the same with NASCON, Sugar and the other subsidiaries. If they need advice on what they should do, we help them but the funding comes from them. That explains our involvement in CSR for the group. Our main focus is Aliko Dangote’s private philanthropy. The reason for insisting on this is that we bear the same name with the group but we will be embarking on our own branding activities soon to create and sustain our own unique identity as Aliko Dangote Foundation, just to clarify the distinction between us and the Dangote Group. We are different. We are going to have a new brand name and logo, so that we have our own identity. The Foundation is looking at three areas of engagement. The first is health, second is education, and the third is economic empowerment. Again, as I said earlier, the focus is on the poorest. About 70% of our spending is on Nigeria, 20% is on the rest of Africa and 10% globally which is called Emergency Relief for problems caused by natural disasters in other parts of the world. We help people who are in need. In the area of health, we provide vaccines for them. For instance, when Congo had health problems, we were involved and that is where the humanitarian aspect of our inter36


vention comes in. In Nigeria, our focus is on health, education and economic empowerment. We have a huge crisis in the North East and we started off with the humanitarian relief by focussing on health and nutritional programmes there. We don’t just give them cheques to support them but we have been more proactive in supporting. So, when I say health we are doing more work on Polio eradication and routine immunisation. We do it together with the Bill Gates Foundation. Also in the health sector, we are working to upgrade the Muritala

We have about a million kids yearly who die of severe and acute malnutrition. In our health programme, we have a nutrition programme to address

Mohammed Hospital which is the oldest hospital in Kano, where poor people go because it is government owned and provides free medical services but it is very dilapidated and in a bad shape. We are upgrading the facilities with an operation theatre and a new diagnostic centre which they don’t have and we are also upgrading other facilities there. We are working on the electricity,


bed sheets and mattresses to bring back the hospital to life because it serves the poorest. When it comes to education, we have two components. The first one is what is called “Formal education” .This is where we have scholarship programmes where we support the World Economic Forum, Young Global Leaders who are Africans. We pay for them to participate. We give people scholarships, and also building a business school in Kano. We are rehabilitating the auditorium in Ahmadu Bello University. Those kinds of activities are in our formal education programme. Further, we are working with women primarily to teach them all kinds of things especially in the area of behavioural change , sanitation, hand washing, taking care of their kids, nutrition etc. We focus on that kind of education that they cannot find in the class room. We are helping to train them.

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‘...Getting Solution to Children Malnutrition’ The third part of what we do is what we call economic empowerment. It is really about helping, specifically women, to improve the quality of their lives and their ability to generate some income for themselves and for their families. We also focus on problems like malnutrition; I mean real malnutrition, where kids are involved. About a million kids die yearly of severe and acute malnutrition. In our health programme, we have a nutrition programme to address this challenge. Imagine if you treat a child and he or she gets better and he or she now goes back home to the same family that put them in that state, so we have to ensure that these kids don’t come back in a matter of months. That is where the economic empowerment comes in. The biggest programme of the year we operated is called the micro gram. What we do there is to ensure that in all the seven hundred and seventy four LGAS in Nigeria together with the states we identify the thousand poorest in each LGA and we give them a grant and a phone. We added the phone component this year. So in places like Lagos because of the distance, we have done two thousand women per LGA. So far we have forty thousand women that we have reached with the micro gram programme phones. We are moving to Osun State, the idea is to do all of Nigeria. So, we have almost two hundred thousand women who have benefited from this programme. This is where we give out money to help them. It is not a loan or microfinance where they have to pay it back. It is a grant, they do what


We spent a lot of time in the Internally Displaced Persons (IDP) camps in Borno, Lagos and Yobe states. We get to see people who have lost everything, who have nothing they want with it but we want them to do something business oriented, something that can help improve their livelihoods so they can help themselves do something productive with the money. In a nutshell, that is what the foundation does. Your experience as CEO of Dangote Foundation? I joined the foundation from the World Bank where I used to be the Country Manager. I covered three countries and I thought it was a difficult job. My experience here has

been excellent and amazing. I think the biggest asset is that Alhaji Dangote really cares about the Foundation; he wants us to do the right thing. He wants us to reach a huge number of people and that we have the resources that we need. He is very interested in what the Foundation is doing. That is what makes my job easier. The difficulty is just how the Foundation is been confronted with the degree of poverty we have in Nigeria. I think as we go about our daily business, most people are not really thinking about how people suffer. Since we have relatives who don’t have much but the degree of lack is shocking because we are able to go to normal hospitals and get the medical care that we need. If we have malaria we can just go and buy medicine at the pharmacy, we don’t realise that many people don’t have anything and the level of poverty and need is really difficult to deal with. We spent a lot of time in the Internally Displaced Persons (IDP) camps in Borno, Lagos and Yobe states. We get to see people who have lost everything, who now have nothing, they have no more home, they virtually have nothing to go back to. They simply have nothing. All they have is the little tent in which they live which is literally a plastic shelter a couple of pan and pad whatever they get from whoever is running the camp. The big question is how we manage this crisis so that we are not creating or supporting the creation of another or even worst type of Boko Haram? These kids are Continues on P38



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‘Dangote Foundation Embarks On Women Empowerment’ Continues from page 37

orphans who are running around and who are hopeless. They are not going to school, there is no school for them, and there is no job for them. That is the difficult part of the job I do every day. The managing, delegating is just part of it but really we are being confronted daily by people who are struggling and it is really difficult. And seeing the reason why we need the nutrition programme is because I didn’t know how many children die every year in Nigeria of malnutrition. I thought this was what was happening in places like Sudan, Somalia probably Niger Republic but not here. This is the number one economy in Africa, I mean the biggest economy in Africa but yet we have a million children who die every year. Half of the children who die under five die because of malaria, diahorrea or pneumonia but the only reason they die is because half of them are malnourished. A normal kid doesn’t just die because of diahorrea because that is not a disease that kills people but our kids are dying because their nutritional profile is so depleted that they literally can’t survive anything and then the ones who survive are malnourished long enough such that the brain becomes retarded such that they can’t learn any more. There is a limit to how much information they can absorb and how far they can go in school and how smart they can be. We have real challenges. To me that is the hardest part of my job. Knowing that this is the problem we are trying to tackle and no matter how much money we have even a billion dollars is not going to 38


be enough to solve this forever. But in terms of encouragement, we have a great working environment. I have excellent colleagues. We interact a lot with other business units. As part of separating ourselves from the group, Aliko Dangote Foundation has been a process. We just moved to a new office recently from where we used to be, that is Marble House. It is important that we look different from the Group. How about the funds? We have to manage our money; we are not going to spend all the money. The idea of endowment is that you have this part of money and you live off this part of money

Some of the new things that we are thinking of are what if we help them start a business in a practical way


and make investments. Definitely you will have to spend some of it but the idea is to invest it so it can grow and you can continuously invest. We are also looking at how to make investment I mean social investment that will have small return to help generate some money back to the Foundation. An example of this is the treatment for the severely malnourished kids which is called “ready to use therapeutic food” (RTF). It is made of groundnut, sugar, dried milk, oil, multi vitamins all in a mix. You don’t have to cook it or mix with boiled water. All you do is to squeeze it directly into the kids’ mouth. You give this to the kids and they come back to life. The problem is that no company manufactures RTF in Nigeria yet because it is expensive to make .It is like a medicine, in order to produce it you have to make it for six months and then finally get certified by UNICEF. It is just a cumbersome process so nobody in Nigeria produces it. We have to import it. The big question is why should we be importing something that is peanut based, why can’t we just produce it here? We are working towards not importing it any more .We have to set up separate special purpose vehicle to carry out that investment for us. We are going to be the principal buyers of the products .We are going to buy it at a commercial rate that enables the factory to keep going. Whatever little profit that is there gets back into the foundation to be able to buy more (RTF) used in treating the kids. So we are looking for the kind of investment we can make which will help us sustain ourselves

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‘Dangote Intervenes In Crisis Caused By Natural Disasters’


because if the idea isn’t there we keep on going to Alhaji Dangote to request for money. This is not supposed to be because an endowment is meant to be invested so as to make more money that will make things work. How would you sustain the empowerment programme among women? The women actually know it is a one-off thing. This is what Alhaji Aliko Dangote wanted to do. Some of the new things that we are thinking of are what if we help them start a business in a practical way. For example, a woman who sells Akara by the road side needs a sustained way to get the beans. She needs a new stove, a supplier of oil. When she has all that she can actually sustain herself. You will be surprised how much money she will be making from the small activities. Honestly, it is really amazing to know that people can actually make a lot of money from these small activities to which we don’t pay attention. Like the ones selling peanuts, selling oil

and groundnuts. They all make a living from it. They are able to send their kids to school from the money they make. They can also afford to go to the clinic when they fall ill. People are actually able to sustain themselves by doing activities like that. We are just thinking about going around the whole country and giving almost a million women these ideas. Then what do we do after that? We have a plan in place to understand the impact of these gifts. So far, it has been amazing seeing what the women have been doing with it. It is a blessing that just came to them. The women, from these routes since we started giving out the phones and giving

Everybody is coming together to ensure that what needs to be done is done within the malnutrition space out the money, have a mobile payment platform where they don’t have to take out all the money at the same time. They can take out a thousand naira a time with which they can manage themselves. They have had very different result from the first ones that we did where we gave them the cash in an envelope. The cash in an envelope gets lost or sometimes their husbands can take it away. Other time someone can steal it on the

way or someone deceives them by saying they are the ones who put their name on the list so you have to give me my share. All kinds of things actually led to the ineffectiveness of the programme initially. As we grow, we are trying our best to make the system effective. Doing it has a mobile payment already. You know it is the women that you sent the money and phone to that is actually getting it. Except she willingly gives her phone to somebody then you know that it really her choice. Your involvement in Nepal? Those kinds of gifts are just a gift. Alhaji Dangote was just really moved by what he couldn’t believe that people in Nepal are actually really poor and we were the only non-western organization that came to their aid because nobody in Africa or in northern America will say let us go help our brothers and sisters. It is just so far from us. But if we are the ones in difficulty other people come to us. Alhaji was like know we need to go and help these people because they’re really struggling. We just gave the money to the Prime Minister of that country they used it as part of reconstruction funds. It wasn’t like something we can actually measure by asking what they did with the money. It was like when we gave money to Tunisia when they had meningitis outbreak and they were out of vaccines. They had no money to buy the vaccines. So we quickly sent them some money to buy the vaccines so they were able to immunize the Continues on P40



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‘Its About Aliko Dangote’s Passion For Charity’ within the malnutrition space.

Continues from page 39

people. In such a situation we cannot begin to ask them the number of people they immunized because we suspect you didn’t do it well. In that whole humanitarian space it is not really going to be a big component if I’m just being fair to the women. We have done a lot of it here in Nigeria notably during the post-election violence in 2011. We also gave a lot of money, for flood relief. It is not that we are going to go back to them for accountability. We did what we were supposed to do by providing clothes, buckets, food and dresses for the people. In Borno State right now we did the distribution ourselves we are not measuring what the impact was. What we are measuring is to ensure that the items that we bring go to where they were supposed to go. Your collaboration with Bill Gates? We collaborate with everybody: the Polio team and Rotary Club team. We haven’t given physical money really but we have a lot of activities with them. With the Gates Foundation, our partnership is really good because it is very straight forward. We are the only people they work with but not their guarantees. Normally when people see that you are working with the Bill Gates Foundation, they believe they have given us money. But honestly, they are not giving us money. We put equal money on the table to get the programme done. Dangote and Bill Gates are different. To make sure that this programme is going on well, every six months we have 40



It is Alhaji Dangote, a fellow human being saying this is what I want to contribute to improving the lives of so many that are suffering so that is the big difference.

a video conference between Aliko, Bill and the governor of the states. We actually had one recently with Sokoto State. The Governor will be on to tell us how far they have gone and they will give him feedback because they are the ones who are putting in more money than him in his own state immunization programme then the relationship is very good. We are also doing the same partnership together on nutrition where we are spending about a hundred million dollars. Everybody is coming together to ensure that what needs to be done is done

Would you say we are almost through with polio? The only reason I can’t really say that is because we still have areas in Borno State specifically that we have not been able to reach because of Boko Haram. Polio would have been eradicated if there was no Boko Haram because we would have been able to go everywhere. The campaigns, routine immunization, community health workers would have gone everywhere and it would have ended. Everywhere that we were able to go it was eradicated, until they liberated a new area in Borno State where nobody has been immunized for four years. The kids came back and we were surprised that someone brought measles and polio. Because people who are in the system get immunized. But if nobody has been to where you are it is because you have been under Boko Haram control for four years. But everywhere that there is no Boko Haram polio has been fully eradicated. We only can potentially have polio in those three little pockets where we still can’t swear that there isn’t polio because we don’t know what has been happening because we have not really been able to go there. The link between the Foundation and the Dangote Group? The Foundation I think is in support of Alhaji Aliko’s brand as a person and then the group. We have been on this branding exercise going back and forth. We have been contemplating whether to stay or

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‘Why Dangote, Bill Gates Are Friends’ not based on the benefits. When we say Dangote, it is one person whether we are talking about cement, flour. Also, when we are talking about the Foundation we say Aliko Dangote but this one is in support of him and it is also in support of his business efforts. I think what the Foundation does is to be able to bring a roundedness to him .The reason Aliko and Bill Gates are close and good friends is because they are both business men who realise that it can’t just be about me making money but I have to give back. Alhaji Dangote has been giving back since he was in his 30s.The Foundation was incorporated in 1993 but he wasn’t and is still isn’t the man who is making a lot of noise and wants to beat his chest and announce to every one so they can notice that he is giving money. That is not his personality. So the Foundation is the structured way of his involvement in charity which he has been doing for a long time. It is not that we don’t want to be connected to the Group because we will always be since we have the same name but the separation is that it is not the business units that is taking the profit and trying to help the people. It is Alhaji Dangote, a human being saying this is what I want to contribute to improving the lives of so many that are suffering and that is the big difference. If you look into private foundation like Bill Gates Foundation himself and his wife are co-chairman. But the company wasn’t called the Gates Foundation but Microsoft. His business wasn’t called his name. For example MTN is a company with different CEOs


.The MTN Foundation is about the company. That is the entity that is trying to help people because they have made so much money from the business. Here we are saying the business units do CSR because that is what they are supposed to do. It is a requirement any way. Then Aliko Dangote himself wants to reach to humanity from his own pocket. Your background? My father is from Niger Republic and my mother is from Bauchi State. They met here in Nigeria when my Dad was in school. I was born in the United States and I grew up there. But I also spent a lot of time here in Africa. After I finished my first degree, I went back to Niger Republic and I worked there for four years after which I returned to the US and got my MBA .I worked on Wall Street for eight years before I joined IFC, the private sector arm of the World Bank. From there I joined the Bank itself as the Country Manager from where I was recruited by

Alhaji Dangote. I have never worked in philanthropy or charity organisations. I have never done this before. But what needs to be done is the same, whether you are managing an organisation, a business, office. So I spend time in the private sector with development agencies and trying to understand how the government agencies really works That I really learnt from my last job and now everything that I knew how to do before like implementing program structuring, your resources, check your design to check what the results are. That is what we are doing here. It is the same kind of skills that is required whether you are running a development project or a charity organisation. I lived here when I was a kid at age seven and eight. My Dad was Niger Republic Ambassador here. My mother is from Bauchi so; I used to come to Nigeria all the time. When I was in IFC my first client was Access Bank. So, Nigeria is not a strange place to me anyway. BV



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Port Operations, Nucleus of Dangote Group –Captain Oyewunmi MD/CEO In this interaction with the BV Team, MD/CEO of Port Operations, a member of the Dangote Group, Captain J.A. Oyewunmi explains the relevance of the subsidiary under his watch which handles the imports and export consignments of the various companies within the conglomerate. HOW would you describe your experience from the beginning? We started as a trading outfit. At that time we were importing bags of sugar, salt and cement. We also have our shipping line, known as Greenview Shipping and our own clearing outfit. The Group President, Alhaji Aliko Dangote is a very hardworking person. In those early days we used to charter vessels which were being coordinated by our offices in London and Dubai. We bring-in vessels to discharge 42


and we sell in bags. Naturally being a hardworking person and somebody who believes in Nigeria, Alhaji Dangote, said clearly from the beginning that if you want your country to develop, you must have faith in yourself and must show the outside world that you can take risk yourself. If you put all your money abroad then you are not convincing anybody. Gradually the Group moved from importing the products and started producing them by establishing

factories. We started with the cement factory, Obajana, in Kogi State which today has increased to many thousand tonnes per day. From Obajana to Ibese and then Gboko. The cement factory has since expanded to countries outside Nigeria, i.e. Ghana, Senegal, Cameroun, Sierra Leone, Ethiopia, Tanzania and so on. We started the sugar factory in year 2000 about 17 years ago. Alhaji Dangote believes strongly in Nigerian and Africa as a whole. One of

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‘We Ensure That Vessels Discharge Promptly’ the reasons why he is successful as a businessman is that he has trust in his workers until you prove otherwise yourself. He believes strongly in you and when a man trusts you, you don’t want to disappoint. He is also a generous man. At Port Operations we ensure that all the products belonging to the group come in freely, safely, and dispatched to various factories. We have three factories in the port; sugar factory where we discharge the bulk sugar into. We have the Blue Star Stevedoring Company where we pay more than 90% of the revenue to the workers themselves. Whereas before the labourers were getting 35-40% maximum now they have 90%. So they are very happy and they do the work very well. We have the clearing as well which comes under the Port Operations and that is why I said Port Operations is the nucleus of the group. All Cargoes pass through the customs clearing. So, we do that also and that is why nobody can fault Dangote. We pay promptly for whatever we are charged. We now have the Blue Star Shipping which brings the ships. Blue Star Shipping, makes the declaration in Nigerian Port Authorities and do the booking for the Pilot to come in and do the raising of the bills. Bills are paid promptly we have some agents also which we utilize when the volume of job is so much. We give some out and we pay directly the bills to the various Authorities. We do not give Agent the money. Previously we give the Agent the full money but now we don’t do that anymore.

also because since we own the sugar and we have the flour and who else can get it ok if you say you want to get it can you pay for our factory running to billons?.


Do you own your own ships? We do not own ships for now but in future we may, we are looking into that. All I can tell you is that we are also the owner of the Terminal. This Terminal GDNL that is where we got the name GREENVIEW SHIPPING now changed to GREENVIEW DEVELOPMENT NIGERIA LIMITED which is the name given to this terminal. This Terminal is owned by the Group. I was in NPA before and was the first Nigerian Chief Pilot, with masters ticket before joining Dangote Group. We have a sugar factory based here already. The sugar factory started in 2000, same thing with the flour, the salt was the only one that was not here, but the salt was then ENL Terminal that is where you have about 6 to 14 Terminals. That time

What would be your role when Dangote Refinery finally comes on stream? Of course we will get ourselves involved in it and you know all it means is that we will expand more and more. We will get more experts to join us. You cannot do without a Port Operations in this world. It is like saying you are buying more plane and you are not talking of pilots. There is no way you can go anywhere without a pilot because anything to do with shipping has to go through Port Operation. That is why I said we are the nucleus of the group whatever you want to do, the operation starts from here. First we have to confirm that the vessel is capable of travelling. What is the volume of your exports outside Nigeria? Now, we are taking many things out as exports. We have berths 19 here and 20 where we are hoping soon to be exporting cement and other consignment. We have exported sugar before to Ghana, we have vessel to carry out bags of sugar out. We no longer believe in importing anymore, we want to save millions of dollars. That is the truth that is why when you call us you see us in the Refinery, so you can see us in the tankers, you can see us in sugar and flour, you can see us in all the necessary commodities that you need to Continues on P44



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‘We Serve Other Sectors In The Group’ Continues from page 43

keep life going that is the believe of the Group President and it is something that we all have gotten used to What were the challenges and how did you solve them? There is no operation without challenges. It is not possible. At Port Operation we are faced with a lot of challenges every day. Even as I am talking there are lots of challenges. Some of the ships have arrived without documents for the clearing and you know Nigerians when you even pay the duties after you pay the duties you have to go to Abuja for clearance and confirmation which in other countries are not necessary once you pay your duties. Here if the vessel is going to Calabar, we have to pay separately even though the same customs. Like in United Kingdom or United States your payment in one port covers everywhere, but in Nigeria you pay Port Harcourt, you will have to pay separately in other places. For example sometimes if investor arrives payment is not made to Nigeria Port services then you cannot berth of course time start counting. Let me give you a practical example. We have a sugar vessel that arrives since June 15 and we berth her on 27th that ship is already on demurrage. These are type of things we are talking about because they also have their own challenges. The factories are filled up, if you get to the factory now. Why? Everybody is aware of this problem in Apapa that we have been facing for many months now. Some trucks 44



have stayed on the line to enter Apapa for a week, even some vehicles, cars stop coming to the office. If you do not leave your house very early by 6 o’clock then you are in problem. Now things are getting better. Dangote Group offers to pay 4bn dollars to repair this road. People would ask why we are doing this, is it because we have too much money? No, we are not happy about this road that we have been bordering them to do something of course because of that you see we have to bring in railway wagons to load some of the sugars on top of the wagon to get them out of the port so that they would be able to produce. These are challenges but they are not insurmountable challenges. We believe personally in the Port Operation here that there is nothing that cannot be resolved with goodwill. We discuss that with the customs, we have to be friendly with them even when they are wrong we try not to criticise them

Does Blue Star Shipping service the public? Yes, if the public wants to use us why not. Any company comes to us for example you want to go Tin Can to Calabar or Port Harcourt or anything and you want to use our services we are ready just like other shipping company coming to us. We do this when we are bringing so many vessels you know then we were mainly importing, we were big importers but today we are exporters. We are now creating dollars for the country, we are no longer spending the dollars. That is the difference so those times we have 6-7 cement vessels coming and of course this cement vessel there was no way Blue Star can do all the cement and sugar. In fact there was a time we had about 40 shipping agents working for Dangote. You can see that we are employers of labour running into millions of people not only in Nigeria but everywhere all over the world.

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Engr. Abdullahi Sule

We ‘re Africa’s Largest Refinery – CEO Dangote Sugar Dangote Sugar today operates to meet the needs of Nigerians for Sugar. This subsidiary, another leading member of the Group, has succeeded in changing the country’s orientation of depending on imported sugar to one of relying on local production and it now exports the product after local demands from its refinery located inside the Apapa Port. In this interaction with the BV team, the company’s CEO/MD, Engr. Abdullahi Sule traced the journey back to the very beginning of what today is the largest on the African continent even as they hope to beat Brazil and India who are currently the world’s leading producers of Sugar with the refineries that confirm their rating. Enjoy the package.

ABOUT Dangote Sugar? Dangote Sugar refinery is the pioneer sugar producer in Nigeria. Today we are producing 1.4million metric tons per annum. To give you an idea of what that means: Nigeria’s total consumption annually is between 1.4million to1.5million metric tons which means that our capacity

alone can satisfy the consumption of Nigerians. And to give you a global picture of what 1.4million metric tons sugar refinery is, we are one of the top five biggest sugar refineries in the world by that size. The refinery actually came into business in the year 2000. Earlier than that, Dangote Continues on P46



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‘We’ve Been Certified With All ISO Categories’ One of the biggest thing that has happened to us as a company is our ISO certifications. We have been certified with all the categories of International Standard Organisation Continues from page 45

refinery had been in sugar business by importing finished sugar and selling it in Nigeria. From year 2000 when the refinery was completed, before, it was at 650,000 metric tons capacity and had since been expanded all through to 2005 and now we are at 1.4m metric tons capacity. In Africa, we are the largest sugar refinery. In Nigeria today, two other smaller sugar refineries came into operation. When we talk about competition, BUA came into operation around 2009 when they built 50% size of our own refinery and Golden Sugar in 2013 which is about the size with BUA. So, the two of them put together have almost the same capacity as what we have. The total Nigeria’s sugar refining capacity today is about 2.9m metric tonnes. That no doubt gives you a fair idea of who we are. When you talk about competition, when you are the pioneer from the beginning, it will give you a lot of



Abdullahi Sule

advantages. The entire market was actually ours, so when we have customers buying from our competitors, they used to be our former customers. With that in mind we have 70% of our customer base till this moment which means about 70% percent of Sugar you buy in Nigeria most likely is Dangote Sugar. Something significant happened in 2012 when Nigeria decided that instead of building sugar refinery, we should build fully Integrated Sugar Companies in Nigeria that will produce Sugar from cane rather than buying. Dangote Sugar refinery being the pioneers, we decided to take advantage of that. We made up our own master plan to say that we will produce 1.5m metric tonnes from the backward integration. That will be a

different subject for another time. To a certain extent, Dangote sugar refinery is a pioneer industry in the Dangote Group because when the company was built it was the first manufacturing entity that Dangote built in 2000. From 2002 to 2007,Dangote Sugar refinery was contributing over 60% of the entire Dangote income. It was not until the Obajana Cement Plant was actually completed that Dangote Cement took over from us. Before then we were the leaders within the Group. Earlier than that, it was actually the pioneer and the flagship of the entire Dangote Group. Around 2007 when the company became quoted, it was the most capitalized institution on the Nigeria Stock Exchange (NSE) with 10 billion units of shares. And today, it is still one of the most capitalised in the stock exchange. The name ‘Dangote’ is a brand name that gives us all the recognition worldwide. One of the biggest thing that has happened to us as a company is our ISO certifications. We have been certified with all the categories of International Standard Organisation. We have quality management certification, food safety certification, standardization certification and assess certification. These are the certifications that we have gone through and it makes us one of the biggest quality companies. In addition, some of the biggest consumers of sugar in the country are actually our dedicated customers and they have special certifications. For instance, we have the biggest sugar consumer in the country, which is a leading soft drink producer. They always send their own certified auditors who come to us to conduct their own audit of who

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‘Our Sugar Is Fortified With Vitamin A’ we are , as a result of that we also have in addition to our own ISO certification and certification from some of the leading companies including NESTLE, 7UP and Coca Cola. Are you contending with some foreign products coming into the country? We are not the one doing that, it is actually the government. One of the things that have happened to Nigeria is the fact that the Standard Organisation of Nigeria (SON) has indicated that only sugar fortified with Vitamin A should be sold in Nigeria. So, the Vitamin A fortification is actually an initiative of the United Nations and it is mainly for the less developed countries where people are unable to go over the counter and buy Vitamins. So, UN initiated the idea and Nigeria took it seriously and Dangote Sugar refinery was one of the first food producing companies to actually imbibe the idea. What we produce is fortified with Vitamin A and SON said whatever must be sold across Nigeria must be fortified with Vitamin A. Government came up with the idea not Dangote. It is being controlled by Nigeria Sugar Developmental Council, SON and NAFDAC where it is clearly stated that any sugar coming into Nigeria that is not fortified with Vitamin A must not be allowed but you know the way we are, how porous our borders are, so there are few areas where you will see the sugar brands that are not fortified with Vitamin A. People will not be able to bring sugar under the normal process to compete so what they do is to smuggle. That is why a lot of sugar brands are smuggled into the country. One

it is clearly stated that any sugar coming into Nigeria that is not fortified with Vitamin A must not be allowed but you know the way we are, how porous our borders are of the most expensive chemicals is actually the Vitamin A followed by another chemical that is required to ensure that vitamin A sticks to the sugar. We apply a dosage of coconut oil and then you apply the Vitamin A element and it sticks but because they are extremely expensive people prefer to smuggle sugar without Vitamin A thinking it will be cheaper.

Do Nigerians know this about Dangote Sugar? We actually do a lot of enlightenment through advertisements to inform the public about the advantages of the fortification of our own sugar. In addition to the fortification, Sugar is measured by its colour, the higher the colour the more impurities are in that sugar. The sugar that is being certified by the SON to be sold in Nigeria is called fortified ecomzar Sugar. Fortified Sugar is what is allowed in Europe, America and Nigeria too adopted the fortified ecomzar as the standard. Most likely some of these sugar brands coming into the country are either 150 ecomzar, 130 ecomzar. They have to be smuggled in because they will not be legally allowed to come in because they do not meet the Nigerian specified standard. Dangote does not make cubes; we sponsor and go into relationship with indigenous Nigerian companies that make cubes. They take the sugar from us and they cube them. A company like Magnicoms owned by a Nigerian here in Lagos, makes cube and we support them. Company like Dogan, they are foreign investors who have invested in Nigeria. If you take cube from Dogan you are likely buying Dangote sugar. How are you penetrating the market outside Nigeria? Because Nigeria is actually the hub for some of these landlocked nations; Dangote sugar is the premium sugar in some countries like Chad, Niger Republic and Cameroun today but most of the exports are made by our customers. Our customers in MaiContinues on P48



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‘We Want To Be World’s Largest Sugar Producer’ major rivers. Sugar does not need a huge measure of land but a lot of water so we are following the Rivers Benue and Niger.

Abdullahi Sule

Continues from page 47

duguri, Mubi for instance, will buy Dangote Sugar and take to those markets and from there transport to Chad and Cameroun. Our customers in Katsina and Sokoto buy Daangote Sugar and take to Niger Republic and the same thing goes all the way to Burkina Faso. Now officially, we have started exporting Dangote Sugar to Ghana. In 2007, we exported sugar to Tema in Ghana, Burkina Faso, as well as Mali. The main export will come in when we begin to produce locally. Right now, it amounts to double handling to import sugar and export few sugars. When we produce everything locally here especially where huge plantations are closer to the borders then export officially will become a little easy. When is that commencing? Well, we are already producing sugar in Savannah. Savannah came after Bacita. Savannah was government-owned before it was privatized and bought over by Dangote Industries Limited. Dangote Sugar Refinery bought the company in 2012 and 48


To give you an idea, every time there is a change in the exchange rate of the dollar, it also affects our price

from there we started rehabilitating and expanding, and it is now on 30-acres of land. The plantations are seasonal. It starts during the dry season by November and complete harvesting may be around May when the rain becomes heavier. It will not be difficult to harvest and by then we are starting preparing the factory for production. We have a farm in Taraba State, we are working on many locations like Kebbi , Niger, Nassarawa , Kogi, Kwara and Sokoto states . We are looking at all those locations. From all we have, we are following the two

The impact of current economic situation on your operations? The number one aspect that you mentioned is that being a refinery we are dependent on importing raw materials. Therefore, the lack of foreign exchange is a major problem. To give you an idea, every time there is a change in the exchange rate of the dollar, it also affects our price. So, when the change started from N155 to N199 to a dollar, we sold a bag of Dangoe Sugar for around N7000 but today, it is sold for about N18,000 per 50kg bag. This is the highest in the history of Nigeria that we have sold sugar. When the international sugar prices went up drastically from 2010 to 2012 and it sold for about 30cents, we sold sugar around N10,500 and everybody started screaming. That has a very significant impact and that is why we are working hard on our backward integration strategy so that it will reduce the effect. We are coping like any other company that goes to Central Bank to see what we will get to source for dollars. To meet up because of the brand name and credibility that we have as a company, we go to the International Financial institutions to have some bridging facilities along the way until we are able to source the FX that we require. These are all the things we continue to manage. What is your projection in taking over the entire market globally? We don’t really want to take over as

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‘Why Price Of Sugar Is Unstable’ the largest refinery in the world; Nigeria should take over as the largest producer of Sugar in the world. Refining is good business to do but it is best to actually produce the sugar locally. So that goes with consumption, land availability, water availability and the rest of them. Today, the largest sugar producer worldwide is Brazil. Brazil’s landmark cannot be compared with Nigeria. To say you want to overtake Brazil does not even make any sense. Let us take a look at the second largest sugar producer in the world India, India has the largest population Abdullahi Sule in the world with over one billion people while we are just 170million. Indians’ culture of consuming sugar is completely different from ours. In igeria will be a Nigeria, the North consumes sugar, very competitive the West not as much and the East is almost zero. Sugar is mostly consugar producer sumed in the food we eat, generally the Northern part of Nigeria like worldwide because of something sugary and it is rarer in the availability of water West and then in the East because of land and labour at the food consumption pattern, they take less sugar. So, the entire India is cheaper rate a high sugar-consuming country. The Arabs, Asians are very good in sugar consumption. That is why I don’t er worldwide because of availability think Nigeria would think of being of water, land and labour at cheaper the largest producer of Sugar. rate. It is not the international sugar price that moves up the price, it is the Do you foresee that the price of foreign exchange rate. sugar would come down and have I am not going to talk about bread direct effect on average consum- because its production is not just ers? about sugar, it also involves flour and Definitely the price will come down price of flour is also double. It moves for two reasons. Firstly, by the time we up around N6000 to N8000 now. are producing sugar locally and not The second one is the fact that, depending on foreign exchange dic- the forex issue is as a result of our oil tating, it will reduce our cost margin production. From the way things are and then the final price. Nigeria will looking, if there is stability in the Nibe a very competitive sugar produc- ger Delta and in oil prices, our situa-



tion on forex will definitely improve and ones it improves, things that go up will surely come down. For us in Sugar, we have gone up in 2010, 2011 to N11,000 and by this year we are just about N7,000. So, we went up and we came down. In the history of sugar, the price goes up and comes down. The reason is easy, because it is a seasonal product, when price is high, everybody moves up to the farm to start producing then you have excess and the price goes down. What is the level of your CSR involvement? For me the biggest CSR we have done is not about the N300m, N100m that we are giving to people. I don’t see that as CSR. The biggest CSR is in the engagement of what we call the out grower people. In our farms we actually engage people we call out growers. Every out grower that we give one hectare of land, we provide them with water , seed cane, equipment, fertilisers and chemical and harvesting process. With all that, we still guarantee them the market. We guarantee them that whatever they produce we will buy so the market is waiting for them. So we buy it and we crush it to produce sugar from our own facility. The fact that we have engaged them, and after we have engaged them in the out grower system, it has effect on their family because some of them have many wives and children that they cater for. That is one area of our CSR that I like most. Today in Savannah, we have about 150 people we have given the out grower system and if you multiply Continues on P50



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‘Sugar, Leader Of All Brands...’ Continues from page 49

that with the number of family that will rely on them. In addition to that, we provide free education because we have schools for both primary and secondary education. We also have a clinic in Savannah. The Clinic we have in Savannah is the Clinic which is the biggest medical centre for the entire local government and we are looking at just Numa Local government but we are told now that they don’t have clinic bigger than that one. We have three major local governments being serviced by the Clinic and of course we construct roads, we rehabilitate other schools outside our own that are within the campus. These are some of the CSR that we provide. Together with our group, we also provide funding. Dangote Foundation gets involved in all kinds of CSR by going to the IDPs and some road constructions. Roads are being provided and support for education too. Within the business itself, we do a lot of things with schools. Recently, we sponsored school quiz competition to encourage young ones to be involved in agriculture. We also support pupils with educational materials and also in the Apapa local government where we are, we also engage in developmental issues. Do you see Sugar beating cement to regain the number one position in Dangote Group? It depends, because it is a relative statement. When it comes to employment opportunities, by the time we finish producing 1.5metric tons per annum, we will be the biggest employer of labour in the group with nothing less than 100,000 employ50


Being food, it gives us another added advantage because not everybody is interested in cement as there are people till they die they will never buy cement because they may not build

Abdullahi Sule

ees. Sugar will by far overtake cement even refinery because refinery will overtake the number of cement by the time the refinery is completed but sugar will be ahead of them. When it comes to the number one position, I keep saying that what I admire most in our Corporate Social Responsibility is the empowerment of the people in terms of the out grower system which others may not have the opportunity of having. Being food, it gives us another added advantage because not everybody is interested in cement as there are people till they die they will never buy cement because they may not build. Some may not even buy fuel like my mother who don’t buy fuel even though she has a car but people will always buy food. They will buy sugar directly or buy what they use sugar to prepare. For me it is how much you touch the people directly, so it is obvious that Sugar will always be the leader of all because of its impact on life. Your background? I am a Mechanical Engineer by background. I am from Nassarawa State, Gudi Local government. I started my education from Roman Catholic Mission School, so, I am familiar with Christian ways. I finished from there to Technical School where I started my technical education in Jos then I went to Indiana State University in United States where I completed my education and I worked for some period in Houston, Texas. Then I returned home to become the Managing Director of Africa Petroleum PLC, after which I joined Dangote in 2007. BV

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Dangote Refinery: One Of World’s Best, Modern Projects – Engr. Soyode The fact that Dangote Refinery will alter the investment climate in Nigeria and Africa is not in doubt going by the resources and those involved in its construction. And as expected the Technical Consultant to Alhaji Aliko Dangote on the project, Engr Babajide A. Soyode in this exclusive interaction with the BV Team unveiled the opportunities, benefits and the ripples that the refinery will generate for Nigerians and in Africa. Enjoy the package.

THE investment philosophy of Alhaji Aliko Dangote is very simple and ingenious. He tries to be number one in whatever he does and he goes all out to achieve that goal. He is never daunted by challenges and difficulties. He simply does not accept that that anything can be impossible. He manages all aspects of the in-


vestment and he is involved in all aspects, the conceptual design and technical aspects. He is not an engineer but he gets involved in technical

concepts, procurement and construction. He gets involved in designing handContinues on P52



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‘Why This Project Is Important To Nigerians’ Continues from page 51

somely. He also does one thing; he goes for the largest economic capacity possible. What I mean is this, I will use the refinery which I am so familiar with but I know it is also applicable to all. Each of the NNPC refineries is at 100,000 and 210,000 capacity but he opted for 650,000. It is going to take the number of people who operate 650,000 to operate 100,000, so you can say from the operating cost in view, it is lower and he uses the most modern technology. He does not play with that. So he overwhelms competition. He has achieved the lowest cost per unit of same. If you can get the lowest cost of unit, what remains for you to manage is operating risk. The Group has no experience in refining. What he has done is to take the most successful operator in the sector, UOP of America. He is using Engineers India Limited (EIL) for the engineering designs and construction supervision. EIL designed at least 47 of the 50 refineries in India. We have not chosen erection contractors here but we are looking in the direction of China because of the biggest company there. We have been buying a lot of construction equipment so that there will be nobody that will say he cannot bring his equipment in. In this way, he manages his risk and achieves the lowest in cost per barrel. Food is number one for anybody especially for the poor that you want to make their lives better. Cement is for building and Pasta cannot take the role of cement in building a house. It is not the question of one is better than the other but the vision of satisfying the needs of the people. Why refinery is so good to all Nigerians?



We all know how petroleum has been troubling us for years. Anybody that can come to solve the problem is a national hero. That is why this project is very important to all Nigerians and government.

About Dangote Refinery? There has never been any policy that government alone should control refinery in Nigeria. For the last 43 years that I have been involved in refinery in the country, there has never

What has happened in the early year was that there was no individual with enough capital or even the will to venture into petroleum refinery industry as Alhaji Aliko Dangote has done been a policy of the federal government controlling the sector. What has happened in the early years was that there was no individual with enough capital or even the will to venture into petroleum refinery industry as Alhaji Aliko Dangote has done. When you talk of refinery, you are talking about millions of dollars which is not chicken feed. Few banks, even if any, can finance it not to talk of an individual and individuals that have the money


do not want to take the risk. The first thing about Dangote refinery is willingness to accept investment risk in such an unstable investment environment like Nigeria. We have to be honest with ourselves Nigeria is an unstable investment environment because of its political decision, governance issues, corruption and lack of infrastructure. All these make investment very difficult. Despite the goodwill and ingenuity of Nigerians, we have not been able to get it together at governmental level to create an investment environment and climate that will make both domestic and foreign investors comfortable to invest in Nigeria. But he has defied all that to go ahead. The refinery is one of the biggest anywhere in the world. The opportunities that abound? The Nigerian market is there and it will only grow with such an invest-

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‘There Are Opportunities For Nigerians In This’ ment. The only product that can compete with him is foreign import. The opportunity is there and first is to get the basic products like petrol, diesel, gas and so on. Secondly, we can produce raw materials for petrol-chemicals. So, the opportunity is there. The official refinery is in Lagos, so we are refining in the biggest market not only in Nigeria but in entire Africa, the opportunity is there. What is unique about the refinery? Firstly is the source of the crude oil, the refinery is not constraint, it can get crude oil from any part of the world because it is getting crude oil through the sea. We are going to build SPI offshore and the pipes direct to the refinery. You cannot see anybody trying to intervene or sabotage and so on because in the area there is no swamp. You can see everybody and even monitor them round the clock every day. You can even put patrol in the place or put fishermen around there to be monitoring so that if they see anybody they should raise the alarm. Nobody can interrupt the crude oil supply. Product can go out by sea to any part of Nigeria, the world and Africa. It is going to have in-house power supply, and there will be nothing nothing to stop the flow of crude oil.

they need an invincible trade. There will be supply some sort of products to those sailors who have been on the sea for months. There will be supply of rags for cleaning vessels, supply of foods to the sailors. Thousands of jobs can be created not to talk of all the petrol stations that would have the supply. Modern things about the refinery? I don’t think there will be anything different that we were not doing before. To get the product from the refinery to the petrol station you cannot do without a truck, virtually it is impossible to connect all petrol stations

The fundamental problem is that you can’t cut crude oil pipeline. Things that are not good are not good

by pipes. There is still need for tankers. What we can say is that there is need for bigger ones because of safety. Maybe those of 30,000 and 40,000 tonnes even you can have two tankers together just to reduce the numbers of tankers on the roads. The issue is that you have to use most modern equipment and instrumentation. In fact let me tell you something our refinery is going to be in Lekki, the technology providers in Illinois, United States and we are also monitoring it in Lekki and they are also monitoring it for us. Whether they are in Germany or US, they are also monitoring their activities for us. For example, I can monitor the refinery and also know what is going on from my telephone. The controllers who are monitoring there when they go to toilet they can be on their system and be monitoring. What we know is that saboteurs cannot interrupt the supply of crude oil and that will give people the highest confidence. So everything going on can be Continues on P54

Employment opportunities? Of course, it is going to generate employment. Refinery doesn’t employ so many people because they are completely automated but there are a lot of indirect employments. Even people are telling me that the ships supplying crude and taking product



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‘The Community Owns The Project’ Continues from page 53

monitored by Alhaji Dangote at his desk. The fundamental problem is that you can’t cut crude oil pipeline. Things that are not good are not good. Can we expect this kind of refinery model in some other countries? I don’t know about refineries because in Nigeria we have crude oil and market but going by his style I don’t know if Dangote will do it. It is only him that can answer that but you have a coincidence of market and the supply of crude oil is here. The demand is so high that looking at the size I don’t think there are any other places in Africa that they can just put that kind of refinery. Except he goes to Angola, Chad, Gabon where they have crude oil. You cannot dictate to any businessman because where you do not see opportunity, he sees it. How would you describe the relevance of the various stakeholders? For example the media, our communication department has been doing a good job by getting the people aware of what is going on. The major stakeholders are the people and you get to the people through the media telling them the truth. We have the Dangote Foundation which is getting the community aware. We have a joint working committee with the Lagos and the State is very key to this project. The Governor is personally supporting us. We are making sure that the authorities, the DPR, NIMASA all these agencies are really supportive even all the relevant ministries. We hope they will properly get involve.




The youths must see it that it is in their interest as a lot of them will be employed in the facility How do you ensure that this project is protected by the youths? We will create employment for the youths and inform them of what the refinery is about. It is theirs, the community is their own. Once we site the refinery, we cannot remove it. So, it is in their interest that they get along. The first line of defence of security for any investment of this kind is the community. If you don’t have the community supporting you, there is nothing your security can do. It is in our own interest to get the community behind us all the time. There is no way there won’t be disagreement

but we must be seen as honest corporate citizens by the community. They must see us as adding value to the community and I can tell you that Alhaji Dangote is hundred percent committed to this policy. Employment generation, skills development, key infrastructural developments are things we have started. The youths must see that it is in their interest as a lot of them will be employed in the facility. We are going to have expatriates employed there at the senior level initially to run it and gradually we are going to phase them out. There is no way we can put somebody that does not know about it. At all times, we have somebody monitoring and learning the skills. It will take years because the refinery is extremely complex. We have 50 Nigerians that have been trained in India and another batch will be going soon. We are training them to gradually take over sensibly. What is the revenue generating projection? I cannot say exactly because revenue generation is dependent on the crude oil price at the time and the price of product in the market neither of which is under the control of Dangote. Your margin profit depends on the aggregate value of the product and the cost of the crude oil. If both are not under your control you cannot really say the amount but we are looking at generating revenue running to billions of naira annually. By the time you spend billions of dollars as capital investment without seeing kobo you will start generating money to start paying the debt. How refinery will help in deregu-

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‘Refinery ‘ll Create Employment For Youths’ lating petroleum industry? Petrol will be available. What has been the problem is supply. If supply is adequate and Dangote Refinery will guarantee adequate supply. We will need up to 3,000 tankers to evacuate the oil from refinery and there are no enough tankers and someone said they are going to control it. It will be stupid to say you want to control supply when supply is lower than demand. Except they collude with the authorities but they cannot collude with Dangote to create scarcity. If NNPC won’t supply crude oil to Dangote we will import crude oil. NNPC will need to explain to people. One thing about crude oil is that it is only on volume that you can make money. How do you cope with International diplomacy? Nigeria is very strategic and can pull all those people out of poverty including Nigerians themselves and Africans. Every time you develop something, others will come. Technology is well known and our problem is indiscipline to the highest level. We are here working, we are not looking for subsidy, we are looking for good government, security, infrastructure and good school for our children and you will pay your tax. The Lawmakers are eating deep into our economy. Nigeria has no business in asking for foreign loan. How would you handle the issue of subsidy? Talking about subsidy, Dangote Refinery will not buy crude oil on subsidy and for sure we will not sell product on subsidy and by the time we hit the market, government would have


We are here working, we are not looking for subsidy, we are looking for good government, security, infrastructure and good school for our children and you will pay your tax withdrawn subsidy because subsidy is a scam. Over N40bn was paid as subsidy in the past 30 years and still university education has gone down, health system has fallen, infrastructure decayed and virtually everything has gone down. We sell cheap petrol but people cannot eat. We cannot give education to the poor, we cannot go to our hospitals. Give us petrol at regular price. What they don’t know is that petrol

is more common than garri, our garri is more special than petrol because petrol from Russia, Afganistan and across the world is the same. So, you cannot control the price of the commodity. Another thing is that you cannot drink it and you cannot store so much. We did not control diesel but we are controlling price of petrol and which does not make sense. You use diesel to generate power, the people who are in the industry need it and a few people are controlling diesel price. They said they are giving kerosene to poor people, how many poor people have seen kerosene to buy and you said you are subsidizing. It is the greatest disaster and wickedness to the people and the Labour unions will go and protest in support of subsidy while the lawmakers in the National Assembly are carting away our money. Your background? I was born in Lagos and went to CMS Grammar School, Bariga. I was trained in the United States and also worked there in the 60s up to early 70s. I actually came back in 1974 to join NNPC Refinery Project under the Engineering Department where I was involved in building refineries. I was involved in the design and construction of Warri and Kaduna refineries. I was once the General Manager of Warri and Kaduna refineries. As General Manager Petroleum Inspectorate, I also trained most of the leaders before I left NNPC in the 1990s to become a consultant. Later I became a personal consultant to Alhaji Dangote. In the past four years, I have been working with Alhaji Aliko Dangote on this refinery project. BV



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With Dangote, Nothing Is Impossible - Bukar, (MD, Greenview Terminal) About Greenview Terminal?

Greenview Development Nigeria Limited is in charge of Terminal E at the Apapa Ports, Lagos and works directly with the Dangote Group which takes charge of the terminal E under the concessioning agreement of the Nigeria Ports Authority (NPA) to the group to operate over a period of time. The MD, Abah Isa Bukar, in this interaction with the BV team explains how the agreement has been working both for the Group and the NPA.



GREENVIEW Development Nigeria Limited is a subsidiary of Dangote Group responsible for the running of Terminal E under the port terminal concession by the Nigeria Ports Authority to the Dangote group in 2006 for a period of 25 years. Our major responsibility as a terminal is to receive ships, vessels to discharge the cargo, stack the cargo or store it and deliver to the owners of the cargo. The delivery is either direct from the ship to the owners or from the ship to our stacking areas or later to the owners. The Greenview is a general terminal,


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‘We’re Busy With Dangote Cargoes’


concession to serve all shippers, all cargo but then Dangote is the main parent. Therefore our focus is more on Dangote cargoes. That is not to say that we don’t do other cargo Before the concession of Nigerian Ports, Dangote Industries has been virtually occupying all these areas, we call it berth 19 and berth 20 where there were two major Dangote factories, the sugar refinery and the flour mill. These factories were sited during Nigerian Ports Authority time. The berths 19 and 20 are virtually dedicated to Dangote Sugar and wheat. The vessels berth at 20 to discharge cargo to the Flour mills. When the concession opportunity came, Dangote Group being an interested party was given the offer of first refusal and was concessioned to the Group for 25 years. We took over in 2006 as Greenview Development Nigeria Limited from NPA to run the

terminal. We have two reporting systems. While we are a member of the Dangote Group, we also have obligations to the Nigerian Ports Authority, because the ports belong to the NPA. We are running the ports on behalf of Dangote and at the same time report to the Ports Authority for the activities and the government in general. The terminal itself is made up of three berths 19, 19A, 20 while 21 is almost ready. The length of the berth is 510 metres. When we took over the terminal, the depth was about 19.5 metres and it is occupying about 19 hectares. When we took over, we did a lot of work because we inherited a derelict terminal, but we were able to clean up the place, put up a lot of security measures and ever since we took over, we have been expanding. Initially our cargo intake was only

Dangote Sugar and Flour but over a period of time and with the expansion of Dangote Group, we also extended our cargo profile. Now another factory has relocated. Dangote Salt has relocated making three factories here. Now we take cargo for Dangote Sugar, wheat for flour and now salt for NASCON. At the same time we are also discharging gypsum for Dangote Cement. We also receive coal for Dangote industries and fuel used for the industries, factories and we take a lot of general cargo especially project cargo. Dangote Group is ever expanding, the fertilizer and the refinery is coming. So we take delivery of a number of their project cargoes as discharged from the vessels and deliver them to various factories and projects. In the first year, we discharged about 1.2m metric tonnes of cargo. Now we are at over 3million metric tonnes of cargo. You can see the tremendous expansion within this period. Before now security was a major challenge but we were able to work on the security with the aid of police, private security to maintain security in the area. We brought-in police and bought boats to be able to patrol the water frontage. Now security has substantially stabilised at the moment but that is not to say that we don’t have challenges. In the past, we do joint patrol with the Nigeria Police, the Nigerian Navy and other interested parties along the water front but the joint patrol for sometimes has seized to exist. When we took over, the security was so bad so much so that we lose close to a thousand metric tonnes of raw sugar Continues on P58



Cover Story

‘Our Focus Is Exporting Dangote Cement’

Continues from page 57

on a ship. We have to face the security challenge drastically, invited the police; work closely with the police invested heavily on patrol boats, patrol vehicles, and we also employed private security guards. At the moment, we are working along with private security, and we have the regular police stationed in the terminal. We have the marine police at the water front using our boats to patrol. We are usually attacked by hoodlums from Ogogoro village from where they come in to steal but that has stopped. Our major challenge is stowaways. Young men who want to leave Nigeria at all cost. They keep on sneaking into vessels but more often we are almost arresting them. The security is the entire responsibility of the government, the Nigerian Ports Authority, NIMASA and others but we are just contributing our own quota to ensure that our terminal is safe. To a greater extent we have



been able to succeed in keeping the terminal safe. Do you still take private cargo operator that wants to use your terminal to discharge? We are mandated as a terminal to take all cargoes every cargo except containerised cargo. When we started, we created a lot of space to take third party cargo. Our priority is Dangote cargo. We create windows for ships to come in, discharged and go. But we have to restrict ourselves to smaller vessels of between five and 10,000 tonnes. In the past, we used to limit ourselves to fish and others but then, we do take rice and other general cargo. But due slump in importation, other ports are more or less empty so shippers will refer to go to a terminal where they will berth on arrival. What is the volume of export cargo that you also handle?

Unfortunately the Nigerian economy is import based not until recently when the government started emphasising exports. In the past, exportation was not much but we have been able to handle very little export of palm kernels, and some raw materials but very insignificant. Our focus now is that Dangote Group is expanding. For instance, Dangote Cement is talking about exporting 4 metric tonnes of cement. So, we are creating cement export terminal by constructing a berth of about 200 metre long to be able to capture 2million metric tonnes of Dangote Cement export. There are a lot of intricacies in the export business. For instance, if you are running a terminal and you take-in vessels for export, the gain is minimal, if not you are going to lose. By the provision of the lease agreement which we signed with the Nigerian Ports Authority, we have a specific rate to charge for cargo due for export and if you are not careful, the money will go on stevedoring and the rest of the services. There is a need to look into the export billing. Although government is considering reducing the cost of running business in the ports because of the ever changing circumstances; the dollar is rising against the local currency and so that fee is not sustainable. But our major focus is exporting Dangote Cement. The focus is to export to other West African countries and to supplement the countries where they are currently operating. And this is international trade and they are not limited to the countries they can export to provide the market is there.

Cover story

‘We’re Busy 365 Days’

How is the culture of excellence and believe in Dangote Group that nothing is impossible, working for you as a terminal operator? Certainly, the resilience of Dangote as a group and the dedication of manpower, the culture is that of excellence. Everybody works hard to meet that standard of excellence. Here we started with just 1.2m metric tonnes and now we are doing about 300million metric tonnes. That is Dangote Group culture to be able to push and push until you achieve the goal. With the refinery almost ready, what roles for Greenview? Of course there are many. We handle project cargoes for the refinery and they are just too enormous for what we can handle alone because we are receiving a lot. We are playing a significant role in receiving a lot of project cargoes. Not only for the refinery, we have had that done for the fertilizer, and we have continued to do for cement. Cement is ever expanding. Every year they are expanding one thing or the other. At the moment, they are thinking of


creating additional line in Obajana and another factory somewhere. We are striving hard within the limits we have to save money for the group. What we would charge will be much smaller than what others will charge. We are ever responding, we are ever thinking how fast to respond to all of Dangote imports and other group projects.

Would you say running Greenview has been commercially rewarding? Greenview is not entirely Dangote-owned business. It is a concession by the Nigerian Ports Authority to run the ports for 25 years and after that, there are possibilities to renew the agreement for Dangote Group. As long as the ships are coming and the water is there, we make a lot of money. We are making money but beyond that we are saving money for the group given the volume of cargoes we handle for the group. We are looking at how much we save for Dangote by receiving their cargo, keeping the money within the group as against the money going to other terminals and collecting the money from us. To that extent, Greenview has done very well. Greenview is very busy. It is a 100 per cent indigenous company. All our staff are Nigerians. We don’t have any expatriate here. The terminal is covered by the concessioning agreement. We have never experienced any lull in our operations. Our next neighbour is a purely container terminal. We have no basis for comparison. I wish to confirm that the terminal has been very busy. No dull moment for us in the terminal. In 365 days, we are busy working on vessels. We have never closed; we run our operations for the whole year and without shutting down except maybe once in January. To that extent we are extremely busy. What is the attraction that makes Greenview different when compared to other operators? First, we are much opened. We have no hidden charges. We are very efficient. But then, we have limitations because we have a lot of Continues on P60



Cover Story

‘Why We‘re Different From Others’ Continues from page 59

Dangote Group cargoes. As per the billing system, we are strictly guided by our concession agreement. If we give you a debit note for a specific amount, it is there in the concession agreement. We have no extra charges, we have no hidden charges. We operate 24 hours, we delivered within 24 hours. Other terminals may work in 24 hours but they don’t deliver in 24 hours. Our 24-hour operation and the capacity to discharge are beyond the accepted tonnage per day, which is 800 metric tonnes. But here, we will push you to be able to deliver 1000 metric tonnes per day. This is the only terminal where we have commendation for doing about 4000 metric tonnes a day of bulk-in, back-out. We have capacity to discharge our big vessel of 15,000 metric tonnes a day. Though bulk discharge differs. We have been able to deliver 15,000 tonnes of gypsum a day and that is a record. We discharge bulk cargo and we work with the customs and all other government agencies. What is the ownership structure? Greenview is 100% owned by Dangote Group. Our deal with the NPA is the Terminal concession to the Group for 25 years. So, we run the Terminal on behalf of NPA and pay certain charges. We pay them lease fees in the cargo on a monthly basis for that area and the reality is that after this fee expires, Dangote Group will have it renewed. So Greenview is a full fledge member of Dangote Industries.



Your background? I’m from Borno State. I went to the University of Maiduguri, and later Ahmadu Bello University, Zaria where I had my Masters Degree in Regional Planning. I worked with the Borno State government from 1982 until 1992 when I joined the Nigerian Ports Authority from where I retired as a Port Manager for container Terminal. I retired in 2003 but I joined this group as a pioneer staff in 2006 as officer in charge of Operations. I took over from the Managing Director in 2010 and since then I have been running this Terminal as Managing Director. I moved from government-owned company to private sector. I am a pure Operational staff and I told you that the Port works 24 hours 7 days a week and 365 in a year. You are expected at every point in time to supervise so as an Operation staff we work all the time. We only have op-

portunity on going on leave. You find yourself somewhere to relax believe me while at work you are virtually 24 hours out of work not actually at least pacify you are 24 hours at work. In Operation at any point anything can happen and you will be asked to either approve or direct. Operationally we are so full of work. I do take a stroll. I am not an active person actually but I do work maybe 5 to 6 km when I have the opportunity. That is the best I can do but besides that I am a good farmer too. I do farm a lot but unfortunately Boko Haram in my state has stopped us from farming. Actually my leave is dedicated to my farm work. I don’t believe in going to Europe and others places for vacation. I go to my village and sleep and work with the farm labourers, when I go into the farm in the morning I don’t come back until we close from the farm and I don’t sit down while in the farm. That actually makes me so active. BV




COMMUNICATION WITHOUT COMMUNICATING The Imperativeness of Outside-In Approach to communication A GREAT thinker of antiquity, George Bernard Shaw once said, “The single biggest problem in communication is the illusion that it has taken place” The American beer giant Budweiser produced a new beer for women called Bud Light Beer and in order to make it appealing to women, the company decided to position the beer as a brand for women who are bold and daring with a slogan which says: “Up for Whatever”. They even went as far as backing up the product with a twitter marketing campaign entitled #UpforWhatever Budweiser thought that the slogan was a great communication but unknown to them that in actual fact they weren’t communicating. As a matter of fact they were insulting women and helping to promote sexual harassment. What the hell were they thinking giving a beer that type of slogan? Take a look at this slogan again and ask yourself what does it mean? For a woman to drink a beer and be up for whatever comes her way. Many American women believed Bud Light beer’s slogan suggests that the beer is for a ‘certain type’ of woman who is carefree, gets drunk and doesn’t care what happens to her. Public Reaction There was massive public criticism of the company from activists, feminists and even men. The company was accused of creating a product that makes women vener-



By By Ishola Ayodele able to rape and sexual abuse. The public outcry led to a call for boycott of the product especially in the social media Land. And this had adverse effect on the Bud Light brand. In my forthcoming book, PR Case Studies; Mastering The Trade Vol 2, I argued fervently with research and copious case studies from Nigeria & Abroad that: “It is not what you say but what the people hear that provokes actions or reactions towards your brand, corporation or policies”. Communication is not all about talking or sending messages. It is more about mind connection, a state where two or more minds clearly get the picture of what the other person is saying in their minds. They see what the speaker has seen. They feel what he/she is feeling. Therefore, the new challenge for leaders, Brands and corporations is to communicate in a way that their audience hears what they want them to hear and respond in the way they want the audience to respond in order to get the desired results. This type of communication doesn’t happen by accident, it is planted. Yes, planted like a seed because this 21st century audiences are different. They live in an

age of information overload where there is more information than the time to process them. Consequently, your communication must be understood and interpreted the way you want it by their brain. To achieve this we must get into the mind of our audience in other to understand their biases, fears and aspirations as well as their triggers. This is why the ‘Outside-In Communication Approach’ has become imperative. Here are few elements of ‘Outside-In Communication Approach’. Market research (Data gathering). Stakeholders mapping. Message mapping Channel mapping. Gone are those days when brands own the communication channels and just send messages to audience. Now the audiences own the channel of communication and can react to promote or attack your brand based on their interpretation of your message. Therefore, you must effectively plant your message in their mind in such a way that they own it as their thoughts by Starting the communication from the mind of the audience and not yours. Ishola Ayodele is a Result Oriented Communication Strategist, the author of ‘PR Case Studies; Mastering The Trade’ book series, the go-to resource material for PR and Brand Managers. He is the Chief Communication Strategist of Ishola Mind Resources &Crisis Communication.



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Seminar This Edition

Metaphor Of Vacancy:

Managing Challenges Of Out-Of-Home Advertising In Nigeria Even before the reality of the current economic challenges dawn on many and the effects begin to bite businesses, members of the Outdoor Advertising Association of Nigeria (OAAN) appear to have a premonition. This perhaps led the group to gather Managing Directors and Chief Executive Officers of member companies for a seminar in which they were exposed to facts and figures, on how to handle the challenges that confront businesses during economic recession. What to expect and how to proffer solutions when confronted were painstakingly examined by no other persons than tested hands in the marketing communications and other related sectors who possess the experience and skills needed to impart on others. In a series of lecture delivered at the seminar for the CEOs, Mr. Jimi Awosika of Insight Communications led the team of instructors that include Mr. Bayo Babatunde, of Ernst & Young, Stella Taiwo-Ibrahim and Paul Onyia of E-motion Advertising and Emeka Emenike of ARM Capital Partners.

I SAY “the democratization of chaltest of one’s abilities or resources in lenges” because challenges of unima demanding undertaking. aginable variety and scale are lookIt is a call to engage in a contest, ing every business squarely in the fight, or competition by coordinatface today- and going forward. ing the efforts of people in order to We see that the culprit and ally, at accomplish goals and objectives; the same time is technology. using available resources efficiently So, the fact that we have a culprit and effectively. and ally all in one shows the comSo, we see that what we call chalplexity of the challenges. lenges constitute nothing but a test Therefore the issue really is of our abilities to earn our perspective. stripes as capable Which brings me practitioners in to the subject the out-ofmatter of my home adverWhat we call challenges constitute assigned distising businothing but a test of our abilities cussion at this ness. to earn our stripes as capable gathering toTherefore, practitioners in the out-of-home day: Managing I ask, what are advertising business the Challenges of the challenges? Out-of-Home AdverAs a participant tising in Nigeria. in the larger marketing For the one who sees technology communication industry, of which as the culprit, there cannot be an out-of-home is a component ofanalysis of that viewpoint without fering, I have noticed the troubling thinking of the anarchy that disrupissue of what I will think is our invition, especially by digital technology tation to other people to come take has brought upon every business, in our place, as we seemingly are colevery industry sector everywhere. lectively losing the ability to defeat I understand a challenge to be a the demanding undertaking of do-




ing our business and making decent profits while at it. This is borne from the worrisome consequences that will happen to businesses and the deeper import can be gleaned from the phrase that I have crafted for this phenomenon. It is what I call “the Metaphor of Vacancy”. I say this because the last time I checked, “vacant” means, “containing nothing”, “empty”. That is why we must examine the meaning or implication of the proliferation of the message “This Space Is Vacant” that is as we see all along our highways and streets. I propose that the deeper meaning of this phenomenon is that our abilities and resources as practitioners are being put to question. Dear colleagues, new technology has brought about our space being assaulted by new abilities, different from the ones that legacy qualifications equipped businesses in our space with; vis-à-vis the demands of today and in the future. There is also the issue of new ways. And there is also the issue of the

This Seminar Edition

new consumer. So, if we have to survive this onslaught of shifts in our business sector, knowing that nature cannot really accommodate a vacuum, we have to re-appraise our business entirely. Some of the major issues are: - Shifts in customers’ expectations as interactive and immersive customer experiences replace mere static boards or scrolling slides on digital boards. - Shifts in performance of solutions as data and tools for analysis now enable transparency and accountability; with new and effective metrics for measuring return on marketing investments. - Shifts in operating models, which are being transformed into digital models - Shifts in corporate structures, as new partnerships are now required to form collaborations to deliver solutions that require multi-disciplinary skills possessed by different companies or disciplines. - Shifts to a predominant demographic that lives on mobile. The demographic that grew on billboards is aging. - Shifts to a multi channel world; which implies that solutions should be channel-agnostic. - Shifts in application of marketing budget and costs. - Shifts in environmental consciousness, which is limiting the popularity of board and posters. The list goes on. The first step for a reappraisal is to assess what the change is and to understand the implication of these resulting shifts. This will lead to re-definitions so we can determine the meaning of our business; to the two critical recipients of our offerings- the Consumer and the Client.

Ultimately, the entire business may that what the out-of-home business need to be re-imagined so that it can does is “communication”. deliver value in the face of new realiUp until now, what we have done ties. is communicate to the consumer, on This is not sophistry. It is survival or behalf of our paying Client by the death. available means that our times and It demands the learning and prac- context allowed. tices of new ways and a lesson by Eric And this is where the problem realHoffer comes to mind here. ly begins. He says: Globalization has brought new “In times of great change, the learn- technology within our reach. ers inherit the earth while the learned Which consequently, has brought find themselves beautifully equipped upon us a myriad of channels, thereto live in a world that no longer exists”. by encouraging options or choices at To illustrate this, let us recall that by a mind-boggling scale. the turn of the last century, America And the big one, was a horse and cart society, new technology with the learned in this ilhas brought lustration being the ownupon us, the ers of the horses, stables, disruption of carriagesand other equipbusiness by the ment in the value chain of phenomenon of that mode of transportadisintermediation. tion, now fondIf we have to survive ly referred to as Then came the autothis onslaught of “u b e r i s a t i o n”, mobile and in another ten shifts in our business named after the years, the transportation sector, knowing ride hailing serindustry was driving in anthat nature cannot vice that is sendother direction. really accommodate The learned, because of ing the traditional a vacuum, we have their huge investment in taxi business reelto re-appraise our carriages found it difficult ing in the suffobusiness entirely learn new things. cating battle for The learners such as Ford, survival. Chrysler had now brought Disintermediaabout the democratization of tion, as we know, is the movement. removal of intermediaries or betAnd of course, we know who won ter put, cutting out the middlemen” the day. in the supply chain between producToday, we are at such a time as we er and consumer. have just described and despite the And as with all disruption, solutions phenomenal technologies that we are are, more often than not, counter-inseeing, we are only in the early stages tuitive. of seismic shifts in business, due to the Disruption implies defiance, even tools, processes and models that will disdain for regulations. continue to emerge. It beats regulation because by its Talking about definitions and mean- very nature, the solution does not fit ing, we must, foremost, understand Continues on P70





Continues from page 69

into theDefinition of the category that regulation was designed to exclude in the first place. Here’s an example of what I mean. What law regulates against a Client reaching the consumer through their phone with an advert, out-of-home? We can see that this question immediately throws up the issue of what “out-of-home” even means. The definition may include the traditional poster or billboard advert but how can these legacy channels bring any substantial business when the proliferation of personal communication devices has made connection to the consumer more personal, cheaper and cost effective. All this in the context of cutting of marketing budgets by Clients! The only solution left for OOH practitioners is to design sources of new value that they can convince Clients to buy. Dear Colleagues, the word is convince, not persuade. Clients want to be double sure that their efforts and money invested result in great sales. It is also a different dynamic that has come into the picture because data and analytics capabilities by new technology means that we have left the days when the effectiveness of communication was left conjecture. Disruption therefore, cannot be appeased, as it is a deliberate defiance established of received knowledge. Disruption is brutal, merciless and drains of people of energy when they keep on being path-dependent by offering the same old, same old solutions. Young people are disrupting our industry without even the knowledge of what those initials O.A.A.N mean. Or whether the association even exists. I have been seeing some of such 70


.T. hink Of Mobile-First Strategy people lately. Disruption demands innovation, which is radical and not incremental change because incremental change always demands more and more from you; until it leaves you empty of the capacity for any more solutions. Put another way; lack of innovation leaves businesses vacant. This implies that every business must avoid denial. Only the creation of new value through innovation will save our businesses because innovation is always the competitive advantage that change cannot assail. We really need to study the dynamics of the phenomenon called Disruption Only innovation satisfies the demand of change and it entails a radical shift from a current position into a preferred one. For change to be radical, it must, first of all, be qualitative; involving a re-imagining of our meaning and value to Client, as our reason for being.


Innovation triggers business impact by empowering solutions that connect more; allowing the consumer to engage with a brand at levels that were thought to be impossible before now

Innovation triggers business impact by empowering solutions that connect more; allowing the consumer to engage with a brand at levels that were thought to be impossible before now. For example today, we can employ out-of-home boards that are enabled to give the real aroma of food. By this example, the new axiom which we must master is “don’t tell me; show me”. It also means that when you are being disrupted, don’t get mad; get creative! Creativity comes out of the space where desire and restriction intersect; meaning that we have to embrace the constraints of regulation, new technology, inefficiency of power supply and so many issues that have conspired to inundate our business all along. We need to embrace new technology for new solutions and be more dramatic and engaging. It is engagement that turns the customer from a spectator into a participant in the story of the brand. We are already very enterprising and resilient people but this is not sufficient to survive today. Anyone who doubts this assertion only needs to see the emotional, financial and logistics nightmares that we put into getting a large format digital board going- the extra generator, the trouble with getting diesel fuel to keep the asset running and the “boys of the area” that have to be appeased; you know the deal! It is the knowledge era, where the key demand is Talent that are at home with knowledge of technology and how to leverage it for impact with especially the younger demographic. Traditional out- of-home advertising is not sitting well in this space, especially in our market today. I suggest


the Education function of our Association should consider this as a strategic issue that has implications that are crucial to both our relevance and even survival. This speaks to the all-important issue of Meaning or better, our business purpose as an industry sector. It’s not so much what we do or a listing of our services. It is to clarify and articulate what our offerings means to the users of the offering- in this case, the consumer and the Client. How is the consumer’s life made better by products and services that we offer? The consumer of today, is too empowered to be addressed in the way that we have done until now. An appreciation of the value of our offering is now both a survival and a growth strategy because the centre of economic activity has shifted from industrial manufacturing to the delivery of high purpose(what is desirable), in addition to performance. Are we simply all about making people be aware of products and services? Being faithful to a competitive positioning will earn us relevance and make our services appreciated. We must answer with distinction, the question: ”What is the place that the out-of-home offering hold in the minds of consumers and Clients; relative to other offerings in the holistic marketing communication mix? So, the words are “engagement”, and “interactivity”. The issue is not so much that of technology. It’s not so much that of data. It is in understanding how communications affects buying behavior and then leveraging the technology du jour to express it. OOH which by its very definition

This is the is differenreal challenge tiated from for Managethe channels ment of our that make us businesses tocouch potaday. toes, can be we must acquire the Before we are the vehicle competencies that regulated out of for a broader give us the abilities business, we must role- of enand resources to acquire the compegagement; beat the demanding tencies that give us not as a chanenvironment in which the abilities and renel that serves we are operating sources to beat the only majorly so we can design demanding envithe awaresustainability into our ronment in which ness stage in businesses we are operating the marketing so we can design communicasustainability into tion continuour businesses. um. We must note that as As we know media changes its shape, the awareness stage is only at the initial rung on the brand equity pyra- traditional channels are morphing as nearly all media will be digital and acmid. It is immersive experience that is cessible anywhere. - A digital screen on phone can the cherry on the cake and new technology can now allow us to truly in- do what TV does - Millions of digital screens are teract with the brand and product; giving opportunity for the consumer now built into the fabric of modern to feel the form of the brand; beyond cities; with capability for real-time communication and consumer enmere images. By the way, shouldn’t we rethink gagement. A new world of sensory overload, why we are still thinking Poster Awards, in the present shadow of the helped by the proliferating presence assault by digital technology and mo- and influence of the smart phone in bile-first communication models and the life of the consumer, demands that mobile-first thinking is now the platforms? The change must begin with us be- default mode, for the consumption of communication. cause as Victor Frankyl says: It means that the mobile phone or “When we are no longer able to change a situation, we are challenged phablet is now the big screen; where big in this case means strategic importo change ourselves.” tance or driver of influence. May our space not be vacant! It means that what matters is how Now is the time to stop and think as big the idea is and how it is made to there is no room for a vacuum. The truly creative mind has been come alive to the consumer. The issue goes beyond the size of naturally groomed to handle change by creatively manipulating the dy- the screen. Out-of- home advertising namics in his own favour. Continues on P75




celebration Cover Story

60 Years Of Marital Bliss The 60 years wedding anniversary of Chief Jude O. Okparaeke and that of his wife Lolo Okpraeke was marked with pomp and circumstance in Abuja on September 9, 2017 with their children, grand children, relatives and well wishers who were on hand to celebrate what the family referred to as the faithfulness of God in the lives of the celebrants and the family in general. The anniversary which took the form of new oath-taking of marital vows held at the Twelve Apostles Catholic Church in Abuja where the family had reason to thank God for the journey of 60 years in marriage. The union has produced children and grand children, many of who were on hand to celebrate with their parents and grand parents. Chief and Lolo Jude Okparaeke

The couple display their new wedding certificate at the Church service

The couple with guests



Chief Okparaeke welcoming guests.

The couple with their children as best man and chief brides maid at the church service.

Some of their children and grand children

celebration Cover story

The couple arriving at the Church for the service. Their children and guests at the event.

Their children and guests

Guests at the celebration

Special recognition for the couple at the Church.

Couple with the Ministers after the service

Children and grand children of the couple Guests at the celebration

Some of the guests at the event.




Thoughts on Advertising Regulation (3)

Who Should Regulate Advertising CLOSELY related to the question about how Advertising should be regulated is the question about who should regulate Advertising. It would appear, from our last discourse, that a regime of self-regulation would require that those who practise (engage in) Advertising, namely, advertisers, ad agencies and advert media operators, should be the ones to regulate it. Because these ‘practitioners’ of advertising are engaged in a business with intention to make profit and, at the same time, engaged in competition among themselves, their capacity to ‘regulate’ objectively and altruistically is greatly impaired. It is for this reason that in countries where the self-regulation mechanism is entrenched, the self-regulatory organizations (SRO), though funded by the industry, operate independently of the industry. In essence, and in practice, self-regulation implies establishment by the industry, of a system of regulation free of government involvement and interference but independent of the industry (operators) in the conduct of its operations. On the other hand, a regime of statutory regulation would require that government assumes responsibility for setting out and enforcing rules of engagement with a view to protecting the interests of consumers and the public as well as ensuring a fair and equitable environment for competition in the industry. Ordinarily, one would expect that in a regime of statutory regulation, government would be at liberty to constitute its regulatory agency (board, council, parastatal, whatever) as it considers suitable to protect consumer/public interests and ensure equitable competition. This, the Federal Government of Nigeria appears to have done through the enactment of Act number 55 of 1988 which provides for the composition of the Advertising Practitioners Council of Nigeria – its Advertising regulatory agency. It would appear from the actions of the same Federal Government of Nigeria in re-constituting the governing Council of APCON, at least three different times, that the government is not convinced about the suitability or appropriateness of the composition or the process of composing the APCON Council as provided by the Act. On each of such occasions, government had attempted to re-constitute the APCON Council without recourse to the APCON Act. It had appeared to regard APCON as any other (regulatory) agency or parastatal of government, composition of which board should be informed only by the suitability of the persons appointed (from the point of



Advertising Regulation By

Joe-Eugene Onuorah, rpa

view of the government) to deliver the mandates of the agency. On each of such occasions, confronted with the provisions of the APCON Act which constrains government to appoint (and endorse) mostly industry players, government had been faced with a dilemma while the advertising industry had been thrown into regulatory limbo. It seems to me that this dilemma, which government finds itself and the consequential regulatory quargmire whenever a Council is to be re-constituted for APCON, is a product of a conflict (some would say contradiction) in the status of APCON as both an industry regulatory body as well as a professional institute. This conflict which sometimes, turns to confusion, manifests even among senior Advertising practitioners when they discuss their regulatory concerns and expectations from APCON. Depending on what suites a commentator, APCON is viewed and expected to act, as an industry regulator and in such commentary, compared with regulatory agencies like NAFDAC, NCC, NBC, NERC, SON, etc. At other times, it is viewed as a professional institute (practice regulatory body) and compared with ICAN, Nigeria Medical Council/ NMA, Nigeria Council for Legal Education/ NBA, Nigeria Society of Engineers/COREN, Pharmaceutical Council of Nigeria/PSN, etc. For the purpose of conceptual clarity, professional institutes (practice regulatory bodies) prescribe and enforce standards of admission into and performance within a profession or practice, internalize global professional best practice among members of the profession and ensure professional cohesion and discipline among members. An industry regulatory body, on the other hand, sets out and enforces rules of conduct applicable across an industry and beyond specific professions within the industry. Its emphasis is on the conduct of the business of players in the industry and how they impact on the general (public) wellbeing. For example, NAFDAC does not get involved in the criteria or procedure for becoming a pharmacist or in the professional advancement or performance of pharmacists. These are within the purview of the Pharmaceutical Council of Nigeria and PSN. As a regulator, NAFDAC sets out and enforces acceptable standards for the

manufacture, distribution and sale of drugs, food and cosmetics in order to safeguard the wellbeing of the public. Its regulatory activities cuts across the various professions concerned with food, drugs and cosmetics. How appropriate and practicable is it for a professional institute or practice regulatory body to function, at the same time, as an industry regulator? Especially for an industry such as Advertising (marketing communication) in which a number of distinct professions (professionals) play, is APCON suitably positioned to perform the dual functions of practice and industry regulator as Act 55 of 1988 appears to impose on it?. There are analysts and stakeholders who canvass for amendment of the APCON law to strengthen its capacity to regulate the Advertising industry. The amendments canvassed include equitable (some say equal) representation of industry stakeholders, especially professions or specializations within the marketing communication industry, in the governing council of APCON and greater enforcement powers against breaches of advertising regulation. While some segments of the industry have been quite vocal, even combative, in their demand for equitable representation, others have chosen to be diplomatic and strategic. Amendment of the APCON Law in this direction will perhaps create a more cohesive, inclusive, enthusiastic and compliant regulatory environment different from the current regime where some segments of the industry feel and act marginalized and uncooperative. The question however persists as to the appropriateness of placing industry (not practice) statutory regulation in the hands of industry players. How appropriate and effective would it be to constitute NAFDAC board with owners/operators of the major drug and food manufacturing and marketing (importers) companies or NCC board with owners/operators of telecommunication companies or NBC board with owners/ operators of the major broadcast organizations or NERC board with owners/operators of the electricity generation and distribution companies?. Once or twice in the past, those on the saddle in APCON had faced a moral dilemma in the performance of their official duties when their business interests had been subject of regulatory adjudication. It had taken the personal moral character of the actors, at great pain and sacrifice, to refrain from exercising their powers and influence Continues on P75


Managing Challenges Of Out-Of-Home Advertising In Nigeria Continues from page 71

has also been compelled to flow in the direction of personalized marketing messaging. On the phone therefore, the video, the signage, the content converges on the hand of the individual. Dear Colleagues, if any communicator or Client has been in doubt that the Consumer is truly Queen, this is the junction at which to disembark from that train of thought. The consumer now has you in her hand and it’s her prerogative or even whim, if she likes, to accept you or shut you out of her life. And therefore her pocket! So out-of-home now has to be conceived, designed and delivered with a mobile-first strategy and execution If our stated purpose is “to promote and sustain the recognition of the Association as the only competent body to determine the competence of Outdoor Advertising Companies in Nigeria”, we must know that there are solutions providers that we may want to exclude because they do not belong. But our Clients will soon be going to them for help. Adaptive thinking, courage and agility are the key values for the business leader who wants to thrive or to even still be around in the

next very few years. If in doubt, ask Kodak or Nokia. And that’s if you can find them. The secret is in empathizing with the modern consumer, even going to anticipate the way she consumes; starting from the first step in her journey that finally leads to the consumption. A world of varied and various dynamics are involved here; from desire to transaction to consumption. Technology has made it easy for the learners who care to see that these are all the new possibilities that the out-of-home practitioners should embrace in designing and delivering solutions. Challenges are the perfect atmosphere for great wealth for a business because that’s when we are forced to shed the routine strategies that, at best, only produce very low yield. It’s Innovation creates meaningful margin. We need to demand to know the secret source of problems by forcing ourselves to look. There are new problems everyday and these come with their own opportunities. Looking hard and learning to change is how we release the capacity

within us to see untapped supply and unaddressed demand where others see nothing. Great companies are being built on a daily basis from this insight. And, Ladies & Gentlemen, this is the core of the marketing communication business- creativity. It’s how we all have got here and if we engage deeper, there are no challenges that cannot be defeated. “Billboards” are not who we are. At some point, technology, no matter how new, will go out of trendand new ones will emerge. But who we are will never go out of trend. So, who are we? Communicators are who we are! Creativity; is our tool. Let me close by quoting Paul Arden, the late Creative Director of Saatchi and Saatchi who said: If you can’t solve a problem, it’s because you’re playing by the rules And by the way, the abbreviation of out-ofhome is o o h, pronounced “ooh” Ooh! the opportunities that await us! BV Jimi Awosika, frpa, the Chief Executive Officer of Insight Communications Limited, is a leading practitioner in the marketing communications industry in Nigeria.

Who Should Regulate Advertising Continues from page 74 to their personal (business) advantage. Prince Tony Momoh who was the minister of information at the time APCON was conceived as a practice institute but delivered as a practice (industry?) regulator had suggested, years later, that if the time for (industry) regulation had come, it was not for the practitioners to be judge in their own case. Those who labored for and have been

delighted at the progress of APCON would like to see advertising regulation advance to the next logical level rather than having the Federal Government, frustrated by its inability to constitute the board of a regulatory agency funded by it as it deems suitable, withdraw its financial and legal backing for APCON, at best or abrogate the APCON Act and abandon advertising regulation to its fate, at worst. The industry and practitioners must now decide whether they want to embrace self

regulation, properly conceived and implemented or submit to statutory regulation, also as properly designed and implemented. The repeated dilemma over re-constitution of APCON Council and the regulatory quargmire into which the advertising industry is repeatedly thrown, must cease. BV Joe-Eugene Onuorah is Advertising scholar and Asst. Director, Operations, Advertising Practitioners Council of Nigeria.




Business Growth, Survival Dayo Babatunde Earnest & Young THE Nigerian economy is indeed facing its greatest challenge ever in this period of time. Crude oil price crashed, renewed hostilities in the Niger Delta region, recent spate of bombing of oil installations, all these while crude oil remains the mainstay of the economy. Closely associated with the foregoing are the depletion of the country external reserve, increase in inflation rate, weakened local currency against the USD to mention a few. These unfavourable indexes poses a challenge to sustainable business growth as businesses are not insulated from the dynamics of their environment. ness continuing its activity or operation, irrespective of interruptions Growth and Survival defined Process of improving some measStages of business growth ure of enterprise’s success Five stages of business growth Achieved by: Boosting the top exist, namely; line or revenue with greater prod• Stage 1 - Existence uct sales. • Stage 2 - Survival Or increasing the bottom line or • Stage 3 - Success profitability by minimizing costs. • Stage 4 - Take-off Survival is the process of a busi• Stage 5 - Resource maturity



Factors that relate to the company are: • Financial resources, including cash and borrowing power. • Personnel resources, relating to numbers, depth, and quality of people, particularly at the management and staff levels. • Systems resources, in terms of the degree of sophistication of both information and planning and control systems. • Business resources, including customer relations, market share, supplier relations, manufacturing and distribution processes, technology and reputation, all of which give the company a position in its industry and market. Factors that relate to the owner are: • Owner’s goals for himself or herself and for the business. • Owner’s operational abilities in doing important jobs such as marketing, inventing, producing, and managing distribution. • Owner’s managerial ability and willingness to delegate responsibility and to manage the activities of others. • Owner’s strategic abilities for looking beyond the present and matching the strengths and weaknesses of the company with his or her goals. Key influencers of business growth There are seven growth drivers Customer: From the outset, leading companies know all about their customers –who they are, what they want and when they want itand they know that building customer loyalty goes hand in hand with long-term sustainable growth


People, behaviours and culture: Any organization is only ever as good as the people working for it. To win the war for talent, businesses build and environment that values diversity and inclusiveness. Digital technology and analytics: They are fundamentally changing the ways consumers interact with companies, while also opening up new business models. If harnessed can create a strategic and competitive advantage. Operations: Your operating model is the link between your strategic intent and the ability of your organisation to deliver on that intent. Leading companies take control by analyzing their operation and ensuring that all parts remains at their most effective at all times. Funding and finance: Leading companies determine the best financial solution – or mix of solutions- for their business and derive maximum benefits from their management of available funds Transactions and alliance: Market-leading companies rarely evolve by organic growth alone, they make a concerted effort to remain alert, to build profile in their markets and to ensure that they’re well positioned to seize an opportunity as soon as it arises. Risk: To suc-

ceed in today’s fast-moving climate, senior executives must have a strategic approach to risk management. Regardless of a company’s stage of growth, the ability to identify and manage risk stands out as a vital element of success Managing risk Risk avoidance: completely avoiding a potential risk while attractive is not always practical but the possibility should not be overlooked Risk transfer: this involves passing some or all of the risk to a third party, so that the person bears the risk Risk reduction: this involves minimizing the frequency and severity of risk Risk retention: this is the level of risk an organization is willing to accept to achieve it’s set out goals Avoiding future problems Owners who want such growth must ask themselves: Do I have the quality and diversity of people needed to manage a growing company?

Do I have now, or will I have shortly, the systems in place to handle the needs of a larger, more diversified company? Do I have the inclination and ability to delegate decision making to my managers? Do I have enough cash and borrowing power along with the inclination to risk everything to pursue rapid growth? Similarly, the potential entrepreneur can see that starting a business requires an ability to do something very well (or a good marketable idea), high energy, and a favorable cash flow forecast (or a large sum of cash on hand). These are less important in Stage V, when well-developed people-management skills, good information systems, and budget controls take priority. Perhaps this is why some experienced people from large companies fail to make good as entrepreneurs or managers in small companies. They are used to delegating and are not good enough at doing. Developing a growth strategy Intensive growth Market penetration Market development Alternative channels Product development New product for new customers Integrative growth: Horizontal, Backward and Forward Diversification Growth strategies are never pursued in a vacuum, and being willing to change course in response to feedback from the market is as important as implementing a strategy Continues on P78



Seminar Continues from page 77

Threats to business survival The threats to business survival in Nigeria include; • Inflation • Lower crude oil prices • Loose monetary and fiscal policy • Inability to meet the projected 4% GDP Growth by the government • Increased unemployment rate • Lower disposable income • Weaker Naira • Infrastructure decay and bad roads • General insecurity in the country

in a single-minded way. Too often, companies take a year to develop a strategy and, by the time they’re ready to implement it, the market has changed on them. Fundamentals of business survival Fundamental 1: Have a solid vision Take time to lay out a solid vision for where you want to go and how you plan to get there. Do it while times are good, so that you’ll be prepared should times get tough. A purpose, a direction, and a path will keep you on course when you’ll be tempted to stray. Fundamental 2: Have people who “can” When you face tough times, having people who actually possess the capacity to turn things around is imperative. Best chance of renewed success comes from a great team that understands the challenge, has faced difficulties before, and has experience making the tough decisions Fundamental 3: Know where you stand, really If you know where you want to go and you have great people who are willing to put in the hard work of turning things around, then you need a realistic picture of where you’re starting from. When it comes to turnarounds, you have to establish a current benchmark, set your goal to rise above it, and act fast. Fundamental 4: Stick to your values Set a good example by sticking to 78


Adedoyin, OAAN President

your values. It may hurt in the short term, but your customers and employees will admire and support you when you lead by example. One of Ernst & Young’s core values – Building relationship based on doing the right thing -- is like a guiding light for us when it comes to tough decisions. Fundamental 5: Communicate with everyone Is there anything more crucial? That goes for the message as well as the communication systems you have in place. Tough times are challenging, but they can be impossible if you aren’t prepared for them. And let’s face it -- no one can really be entirely prepared. But everyone can own up to the fact that tough times can happen in any business and not every project is a slam dunk. Recognize that there will come a time when you’ll be glad you practiced the fundamentals.

Strategies for business survival Business utilizes a blend of strategies to stay competitive, proactive and aggressive to continue growing while the economy contracts. • Keeping costs down • Differentiation • Customization • Business acquisition or mergers • Environmental scanning • Internationalization • Market penetration • Market expansion • Product expansion • Diversification Starting a business is like stepping onto a roller-coaster with no safety harness. Growing a business into a successful enterprise is a tough call, requiring perseverance, leadership skills, and a lot of critical thinking. A lot of opportunities abound within emerging economies which if identified and properly exploited will translate into higher returns and growth. Growth is never by mere chance; it is the result of forces working together. BV


, s e s s e c o r P s s e n i s Bu n I , e r u d e c o r ustry P d n I g n i s i t r e v d A r Outdoo

Stella Taiwo-Ibrahim is of E-Motion Advertising Limited

DO we really need Business Process & Procedures in the Outdoor Industry? • It may not be necessary if the MD/CEO is the CFO, CMO, CSO, Operations Manager, Internal Auditor, Company Secretary………in fact Chairman of the business! • Why? He is a sole proprietor and knows all aspect of his business well such that he needs no one. He is jack of all trade…with multiple hands. • The implications? Business can-

not grow beyond his capacity, no one to sharpen his ideas, no check on him leading to poor decisions, sub-optimality, very limited growth, fatigue, burn out etc. Do you desire a growth in business? It is important to put in place detailed processes and procedures which are shared with employees; doing this can help to ensure that products and services maintain the high quality that customers expect.

However, before making a transition to managing processes and procedures, an organization must answer whether it has: • Clearly defined what its objectives are. • Evaluated the impact of those objectives on the stakeholders. • Designed the critical, end-toend processes and procedures necessary to deliver the objectives. • Assessed and provided the resources, skills and competence to Continues on P80




Continues from page 79

make the processes work. • Understanding of how it will measure and monitor the success of achieving those objectives. Meaning of Business Process & Procedure Business Process A business process is the complete set of end-to-end activities required to complete a transaction that provides value to a customer. A business process typically operates across many functions, and may cross department lines. A business process is the big picture with many elements, it’s the breath e.g. Revenue Process. A business Processes assist us in defining responsibilities, internal controls, and work standards for compliance, consistency, and performance. Procedure You can think of a procedure as a road map where the trip details are highlighted in order to prevent a person from getting lost or ‘wandering’ off an acceptable path identified by the company’s management team. • A Procedure is a series of steps, taken together, to achieve a consistent result, in this case process outputs. • Procedure describes each element of process, it’s the depth.



It describes who does what and when (in sequence or order). It can be called a Standard Operating Procedure. • Procedures are required for compliance, are helpful for training, help to retain important information that helps the organization prevent errors. Why document Business Process and Procedures? Some of the benefits of documenting business processes and procedures are: • It allows management to guide operations without constant management intervention. • It allows employees to clearly understand their roles and responsibilities within predefined limits, thereby eliminating common misunderstandings amongst staff. • It provides consistency amongst staff in the day-to-day operational activities. The system makes the operations well-organized and enhances more efficient and effective service delivery. • It is useful for getting new staff to be trained faster. • It used to create an effective internal control system and enhance compliance to regulations and standards. Using internal controls, review of the effectiveness of the processes and procedure can be made so that necessary corrections can be identified and implemented for improvements.

• It forms a framework for reference. Documentation of Business Processes & Procedures In order to satisfy the requirements, needs and expectations of customers, shareholders, employees, suppliers etc., organizations have to identify the critical processes and procedures that deliver satisfaction. Core processes for which procedures are needed are but not limited to: • Sales and Marketing • Operations • Credit Control • Procurement • Human Resources Recruitment Procedure for Sales and Marketing Some of the areas to address when documenting a procedure for sales and marketing include: Proposal presentation for new business Site identification, Rates and negotiation Preparation of the presentation, Follow up, Site selection and inspection, Media Purchase Order Details, Vacant board reservation,Account Management, Sales Order, MPO, Invoice, Printing, Monitoring of job execution, Reporting, Posting of campaign, Requesting Officer,Approving Officer, Mode of communication, Posting requirements/ conditions, Cancellation of MPO/ campaign,


Business Processes, Procedure Campaign renewal, Timeline for notification of renewal etc. Expired campaign, Notification for blanking expired campaign, Timeline for sending notification, Approval to blank expired campaign, Who is responsible for ensuring expired campaigns are blanked, Customer retention services, Need to develop and maintain cordial relationship with clients, Feedback on service delivery, Handling of clients complaints, Reconciliation of clients accounts, Procedure for Operations Some areas to address when documenting a procedure for Operations include: Materials/printing requirements • Materials specification per board type • Checks and confirmation upon receipt of material • Responsibility for printing, collection • Posting timelines, • Quality control, Photo shots, Billboard maintenance, Occupied boards, Vacant billboards, Boards status, Maintenance requirements, • Maintenance schedule and approval, • Site inspection and security, • Operations store and admin, • Generator fueling and maintenance,

Procedure for Credit Control Some areas to address when documenting a procedure for the Credit Control include: • Category of clients to be granted credit or not to be granted credit. • Guidelines for determining credit lines. • What guides your payment terms for clients and who determines them? • What justification should be provided when requesting for credit and by who? • Who should do credit evaluation and what would such Officer consider? • What are the conditions for granting credit? • Who should give approval for credit to be granted to clients? • Who will be responsible for monitoring adherence to the payment terms? Who should follow up with clients for payment as at when due? • What steps should be taken when clients default in payment? • What are the consequences of default on the part of the clients? • What methods are to be employed for recovery of doubtful debt? Procedure for Procurement Some areas to address when documenting a procedure for procure-

ment include: • Identify the procurements methods to be used e.g. : 1. Direct open market purchase 2. Quotation 3. Direct purchase under a Standing Agreement (Preferred Supplier) 4. Competitive Tendering & Contracting: a) Request For Tender (RFT) b) Request for Proposal (RFP). A RFP is ideally suited for procurement of professional services such as audit, tax and legal, etc. • How to select an appropriate procurement method. Procurement methods and thresholds. • Who has the capacity to procure? Who are the authorized procurement officers? • Define roles and responsibilities e.g. Procurement Officer, CFO, CEO, etc. This will help ensure there is segregation of duties to the full extent possible. • Approving Authority and thresholds. Recruitment Procedure Some areas to address when documenting a procedure for recruitment include: • Responsibility • Authority to recruit • Job description and personal specification Continues on P82



Seminar Continues from page 81

• Recruitment sources • Shortlisting applicants • Interview process • Selection criteria and decision • Employment checks Steps to documenting business process and procedure? • Create an action plan. • Determine staff responsibilities and training needs • Create work teams • Define and prioritize processes and procedures • Get existing (if any) documentation • Involve all appropriate departments • Draft documentation • Review and finalize documentation • Establish annual review and procedures • Establish and monitor measures • Obtain approval of the document and circulate to all for training and compliance. Who Participates in Creating this Documentation? • Documenting business process & procedure should be team effort among all departments impacted by the process & procedure, staff doing the work, team leads, managers, heads of departments and other stakeholders. • Everyone involved should be allowed to participate to the extent that their roles require and where employees who are not process & procedure writers are involved, they could be trained in process & procedure writing. Who Uses this Documentation? EVERYONE! 82


• Management • Staff/Employees • Auditors • Customers • Partners/Consultants When should Process & Procedure be updated? Business Process and Procedures need to be reviewed and updated at least annually to make improvements and keep them current. • They should be consistently reviewed for its effectiveness and to ensure that what is being done in practice is adding value. If your business already has established Process and Procedures, how can you determine if they are meeting your needs? A few signs that your process and procedures need to be reviewed and updated would include: • The workforce can provide important clues that your company’s procedures need to be reviewed. These clues could include: • More staff questions on ‘normal operations’ or a feeling of general confusion within a department or division. • Employees may also be demonstrating inconsistency in their job performance. Finally, your customers may provide additional clues in the form of increasing complaints. Conclusion • Whether any change is necessary depends upon perception and

attitude. • What are your company’s written processes and procedures? Oh, you say you don’t have written processes and procedures. Fear not, it’s never too late to take advantage of tools and techniques many of your competitors have, and are using successfully to grow their business and market share. • Are you interested in growing your business without dramatically increasing your burden of employee management responsibilities? If your answer is yes, we recommend creating, reviewing and implementing processes and procedures that are effective, and that work on your company’s behalf. • Don’t adhere to your procedures so rigidly that you are unprepared for change. Review your processes/ procedures routinely so you know if you are getting the results you want. Trust is good, control is better… • Once someone else is involved in playing any of these roles, boundaries have to be established, rules become a must otherwise, there will be frictions and infractions, conflicts of ideas, opinions, reasoning etc. and unless something is done about this, everybody will be busy doing something. If they succeed in achieving anything, it will be called NOTHING. • No man likes rules, regulations, controls etc. as they imply restrictions, limitations of whims etc! but without these, no organization can grow healthily and live long. BV Stella Taiwo-Ibrahim, is the Internal Control Manager, E-motion Advertising Ltd


P n l a o i n s s n e i n c c g u S

Paul Onyia

Changing Roles of HR Management

PEOPLE management is a growing challenge for today’s business. Impending skills shortages are making both recruitment and staff retention increasingly difficult. Employers need to plan ahead to beat competition – recruiting the right new employees and retaining current skilled employees. Based on industry trends, research and experiences, the following are current top HR priorities: HR Priorities Organizations in various surveys identified similar HR priorities for the next two years. The top priority, identified by 52 percent of international companies, was leadership development. Domestic organizations also ranked leadership development as a top priority (35 percent).

Recruiting high-quality employees ranked second as a priority for both international (40 percent) and domestic companies (46 percent). Employee retention was also a top concern for both international

(33 percent) and domestic companies (46 percent). In fact, employee retention was the top priority for domestic organizations.




Expected Role of The HR Function

Strategic HR Roles Strategic Partner: Working to align HR and business/corporate strategy to deliver results. Employee Champion/Advocate: Listening and responding to employees’ needs & delivering competent/committed employees. Change Agent: Managing change processes to increase the effectiveness of the organization. Deliver capacity for change in individual behavior and organization culture Administrative Expert: Working to improve organizational processes and delivering efficient HR practices. Succession Planning: Succession planning is a systematic approach to: Building a leadership talent pool to ensure leadership continuity Developing potential successors in ways that best fit their strengths Identifying the best candidates for categories of positions Concentrating resources on the talent development process, yielding a greater return on investment. SP recognizes that some jobs are the lifeblood of the organization and too critical to be left vacant or filled by any but the best qualified persons. Effectively done, SP is critical to mission success and creates an effective process for recognizing, developing, and retaining top leadership talents.

Brings HR systems into alignment Assures continuity of key positions Avoids transition problems Ensures new managers are prepared for their jobs Focuses on Organizational Effectiveness Why Succession Planning? When SP has not been conducted effectively, some of the more detrimental results can include: Disruptions in services, production, or productivity Stalled critical projects Decreased employee morale Unclear organizational direction Loss of critical knowledge and Competing interests or ideas stalling the replacement process and putting further strain on the organization Effects of Poor Succession Planning and Leadership Development Loss of continuity of business Potential loss of customers/ business Time/ expense to find replacement Negative impact on revenue Shareholder concerns and potentially lower stock price (if CEO or key senior leader) Possible acquisition target (if CEO has no replacement) Core Principles Underlying Succession Planning Leaders really do matter … in managing/driving accountability, results, culture. Performance is what counts … top performers over high potentials (the “what” & “how” both count). Today’s top performing leaders aren’t necessarily tomorrow’s … even our best leaders can fall behind or derail. Talent is an enterprise resource … willingness to share talent makes the system work. A broad set of experience & assignments is the best classroom … yet a balanced approach is still necessary for development. It’s incumbent upon today’s “top-100” to leave a legacy of future talent … current leaders must teach, mentor, & role model others on what it takes to succeed. Invest in the best … focus on the rest. Four Levers for Learning

Getting the right number of people with the right skills, experiences, and competencies in the right jobs at the right time. Succession planning is having a systematic process where managers: identify, assess and develop their staff to ensure they are ready to assume key roles within the organization. Effective Succession Planning Is … Identifying key player gaps through workforce planning Giving employees at all levels opportunities to develop their skills Embedding development opportunities in everyday work processes Embedding knowledge sharing into work processes Developing employees for more challenging positions Why Succession Planning? Engages management in a disciplined review of organizational talent Guides developmental activities of staff



1. Assessment of Key Positions: What are the competencies and experiences needed to qualify for each key position? 2. Identification of Key Talent: Typically people at the top two levels of the organization and high potential employees one level below. Identified by management’s assessment of their performance and potential for advancement. 3. Assessment of Key Talent: For each person, primary development needs are identified focusing on what they need in order to be ready for the next level. 4. Generation of Development Plans: A development plan is prepared for how we will help the person develop over the next year. 5. Development Monitoring & Review An annual or semi-annual succession planning review is held to review progress of key talents and to refresh or revise their development plan. Trex Telecommunications: Experiences Profile For General Manager / CEO Bottom line accountability; Has managed a P&L Experience in several different functional assignments Negotiation of a relationship with an external partner (Negotiating experience) Lived and worked in multiple locations including overseas Has multi-company or multi-divisional experience Management of a unit during a downturn; Has effected a turnaround Successful product creation and deployment Heading up a start-up or new venture assignment Significant customer contact; Has demonstrated the ability to close big deals Successful experience in transforming the culture of an organization Development Toolbox

“There are two kinds of people in organizations: Those with 20 years experience and those with one year experience repeated 20 times.” — Gene Dalton, BYU “We put good people in big jobs before they are ready.” — Pepsi Co. Leadership Development = V+C+L Variety of Experiences + Challenging Assignments + Ability & Willingness to Learn — Center for Creative Leadership Succession Planning: Key Elements

The Development Formulae 10% Knowledge (classes/book learning) + 20% Learning from others (mentors) + 70% Experience (do it) = 100% (A shiny new competency!)


Business Expansion: Mergers, Acquisitions Emeka Emenike

M & A Motivations

Business Growth and the M&A Landscape

M & A Motivations II

Understanding Mergers & Acquisitions

M&A – Many shades and flavours

M&A – Acquisition Forms In a stock purchase, the acquirer provides cash, stock, or combination of cash and stock in exchange for the stock of the target firm. A stock purchase needs shareholder approval. Acquirer assumes target’s liabilities. In an asset purchase, the acquirer buys the assets of the target firm, paying the target firm directly. An asset purchase may not need shareholder approval. Acquirer likely avoids assumption of liabilities.




Caveat Emptor – Why M&A deals fail

The M&A process – Negotiating the deal

*Poor strategic rationale * A mismatch of cultures * Difficulties communicating and leading the organization poorly * Integration planning and execution * Paying too much for the target company.

*Comprehensive Due Diligence *Agreement on Valuation *Tax Structuring *Negotiating the definitive agreements (Purchase and Sale agreements) Description of securities used to purchase company Details on consideration Representations made by buyer and target Closing conditions

Navigating the complex M&A maze Clarity on the strategic rationale cannot be overlooked Growth, Synergy, Expansion??? Understand the process Engage the right advisers Watch out for the deal pitfalls

Navigating the complex M&A maze – Critical Points

The M&A process – On Valuation Methods Market Based – Market Comparable, Transaction comparable Asset Based – Net Asset Method, Liquidation value etc. Income Based – Discounted Cash flows, Income Capitalization

The M&A process – Integrating the Companies No Integration Plan = M & A Failure Realistic Integration Plans must start before transaction close Understanding the Value drivers in the integration process is critical to success

The M&A process (Acquirer view)

The M&A process – Target Identification Step 1 Environmental Scan Engage potential targets Advisers and industry experts may be useful to identifying potential deals Step 2 Preliminary due diligence to identify the opportunity : Synergy, Growth etc. Preliminary valuation (price) Draft indication of interest (non-binding)



Consider the Culture of Both Companies There are always cultural differences High levels of integration require greater cultural blending Cultural blending may be a matter of: combining elements of both cultures essentially replacing one culture with the other The ability to integrate efficiently may be a source of competitive advantage

The Key Lessons M&A is most likely a standard fixture in the life of a business that grows so you must understand it. Plan Thoroughly, Act Quickly Strategic Thrust should be the driver of any M&A transcation Culture Matters, Pick Partners Carefully. BV

This Edition

Music Legend With A Unique Brand Chief Sunday Adeniyi Adegeye popularly known as King Sunny Ade is not just a household name in the country but also an enigma in the world of entertainment where he has remained very relevant for more than four decades now. On September 22, 2016, the King of World Beat clocked 70 years of age which he marked with carnival-like celebration in Ondo City where family and friends converged to celebrate with him. The uniqueness of his indigenous brand turned global is the focus of BV in this edition. Enjoy the package.




‘Why My Brand Is Unique’ WITH an uncommon record of over 123 albums over a period of 51 years, Nigeria’s King Sunny Ade is not just a king of entertainment and Juju music pioneer but also a household name. The journey he began years ago when, in 1982, he was signed to Island Records has produced tremendous impact on the society and the music industry. His first album, Juju Music earned him a resounding recognition from the Rolling Stone magazine while the next release; ‘Syncro System’ was nominated for a Grammy in 1983. In one of his interviews, Sunny Ade gave an insight into why his brand of music is unique and enjoyed followership: “When you play Sunny Ade’s music you will find all the flavours of any African sound in it. From Juju to Fuji, and even highlife. That is how I have tried to stay relevant in the past 15 years”. 88


“I always study what people want to hear and dance to. At every stage, I ask myself; How do I cook music, (just like you cook stew) that the people will continue to love and it would not fade?” “In my house, I have what I call, Crazy Room. There, I look at what I have done before and do the post mortem. I could turn it around, improve on it or even change it. Change here is not drastic because there could be a reversal if my fans don’t like it.” “I am a lucky one My best album is ‘Asiri ni lati Ode Orun’. I love dancing. At 71, I see myself still dancing. People make fun of me that I like dancing Ijo lo ma njo.The new generation coming now has been told I am a dancer. They now see me as a dancer. “I am actually a jack of all trades. I didn’t even plan to go into music. I had learnt Carpentry, and car spraying from school. I played football. I

played Tennis. I am an Athlete. I am an Artiste. I am an Actor. I went into music the moment I discovered I was good at it. “I planned a radio station quite different from the name of others. The station is called M&C FM (Music and Culture FM). I have started already. The take off of this Radio station is one of the things that can make me to be so happy though it is yet to be launched. “When I look back to see where I started from, the years, the months, the weeks, the days if you calculate it over 70 years, for you to have been on the planet, there is nothing you can say than to roll on the ground, or the floor and start thanking God. He is the only one that does it and getting people to love you. “My life has been like a big miracle. Take the issue of the radio station. This is a radio station we have been eager to have for the past 12 years and it took a long while to realise. But it now came all of a sudden. “Whatever is worth doing is worth doing well. The NBC has its operational standard, so do I. I deliberately took time off to carefully select a team of loyal partners who share same vision on what a music station should be. Don’t forget also that this will be the first radio station in Nigeria that will be solely devoted to promoting our culture and our music.” ‘I couldn’t regret anything. I believe God wanted it that way. I tried my best not to have so many women. They even love me more than I love them. If it were now, I would have said may be they loved me because of money or material things. But that is not so. Now, they don’t even care about my wealth, they just treat me as their loved husband.”


King Sunny Ade Thunder Wire:

The Grammy, The Nobel SOMETIMES in 1997, this writer had sought the authority of Distinct Associates, a corporate body, jointly registered by afrobeat maestro, King Sunny Ade and Clement Ige, after they had both opened a mini-studio in Ikeja and the latter had recently published a mini-biography on the former, to do a strange documentary on KSA, with the strange genre known as “art-o’-biography”. “Art-o’-biography” was the product of my poetic licence to coin a word that would marry King Sunny Ade’s art with his biography in a manner that Wole Soyinka, Black Africa’s first Nobel Laureate in Literature, would later marry two words like “Hydra”(the many-headed monster in Greek mythology) with “Octopus”(the many-legged aquarian) to arrive at the word “Hydropus” in one of the titles of his 21st Century works: POWER, HYDROPUS AND OTHER TOXIC MUTATIONS.


McNezer FASEHUN So the title of my manuscripts, as submitted to Spectrum Publishers, Ibadan, Nigeria, was ‘THUNDER WIRE: ART-O’-BIOGRAPHY OF KING SUNNY ADE’. It had stuck. Internal and external assessors to whom the manuscripts were assigned had scored it 90% and had rated it high in market prospect. In format, the book had been inspired by a similar work on Bob Marley Berhane Selassie, Order of the Trinity, of the Tribe of Joseph, titled BOB MARLEY: NATURAL MYSTIC-SOUL REBEL, and authored by Adrian Boot and Vivien Goldman. In context, however, it had been inspired by my researches into the Yoruba tradition at both Master’s and Doctorate degrees. Here, I’d wondered what would have qual-

ified many poets to have won the Nobel Prize in Literature that would not have qualified a King Sunny Ade had the Yoruba language been taken to the deserving international pedestal by scholars in African or Comparative Literature,. much as I’d wondered why Bob Marley couldn’t have bagged the D.Litt (Honoris Causa) of a Cambridge or an Oxford same as King Sunny Ade had of the Obafemi Awolowo University, IleIfe, Nigeria. As William Shakespeare would say in ‘Measure for Measure’ that “actions and characters are sometimes affected by the workings of a blind destiny”, the Abaiye, Oba Dr. Victor Adesimbo Kiladejo, Jilo lll, CFR, the Osemawe of Ondo Kingdom, and the then Chairman of the Ondo Development Committee, ODC, (now late) Otunba Noah Fadayomi, had both run into me at my new place of work, the Wesley University Ondo, and the latter had




The Grammy, The Nobel re-list me as Member of the Editorial Board of the Ekimogun Day, 2016, where, after 13 years of similar experience, I’ve been saddled with the responsibility of doing the features column I’d created in 2002, the “Eminent Ondo Personalities”. Then came King Sunny Ade who had just clocked 70 as one of them. Barring that this edition coincided with the 10th anniversary of the ascension of the Osemawe to the throne, there was no better edition to feature King Sunny Ade on its cover. After all, the last American President to visit Nigeria was Bill Clinton, and there were only two names he mentioned as synonymous with his memory of Nigeria, Wole Soyinka and King Sunny Ade. Way back in the preceding year, 2015, my learned colleague and dye-in-wool fan of KSA, Ekiti-born Barrister Steve Kayode Adaramoye(a.k.a Aburo Sunny Ade), had put me under pressure to publish the long overdue manuscripts of ‘Thunder Wire’ to mark the virtuoso’s 70th Birthday. I’d complained of funds until this opportunity came to share a slice of it with my readers. How true could Shakespeare be! As if KSA would win the Nobel Prize for Literature in the near, immediate or distant future, the same 2016 in which Sunny Ade clocked 70, was the first time a musician, American Bob Dylan, would win the Nobel Prize in Literature for “having created new poetic expressions within



the great American song tradition” Talk about the inspiration for the title of the book, and the design on the blurb parading the pictures of Benjamin Franklin, Wole Soyinka and King Sunny Ade. What was I trying to say by suggesting that to the artist, Yomi Ola, then a Daily Times cartoonist, now Associate Professor of Art History in Spelman College, Atlanta? One, Benjamin Franklin, whose portrait you’d find on the $100 bill was the physicist American President, and author of Poor Man’s Almanac, who discovered thunder catcher with the use of the copper metal. Two, in Wole Soyinka’s magnum opus and longest poem, ‘Idanre’, the author celebrates his protege deity, Ogun, not just as the god of metal and steel who subdued Sango, the fiery deity of thunder, lightning and electricity through the thunder catcher, but also as the power pylon without which electricity could

not be trasmitted! Three, King Sunny Ade, as one of his fans, Chief Olu Akinmurele, the Lotu Omo’ba of Ondo Kingdom says in his interview with Life Reality Magazine that he “electrifies” wherever he goes with his music, while the said fan had picked ‘Ogun’ as his favourite KSA album, this writer’s inspiration came from the flip side of the ‘Ogun’ album, where KSA used the guitar strings to work magic, the way Ghanaian author, Ama Ata Aidoo, says “Soyinka works magic with words”: “Aditu l’ere wa o/ Number yi ga l’ola/ “Aditu l’omo odu/ Sunny Ade ma lo ni yen/ “Thunder Wire/ A gbo te’wo ijo...” Other than his rich lyrical textures, KSA has, through his use of musical accompaniment, especially the string instruments, in more than 100 albums, done so much to remind us that the word “lyric” came out of the use of the “lyre” to accompany the performance of poetry! With too many albums to cite and analyse in this short essay, let us conclude by saying that scholars of Black African Literature would have performed far below average


The Grammy, The Nobel should they fail to produce a winner of the Nobel Prize in Literature in the 21st Century, should the fail to produce one in KSA in a lifetime. Having been nominated for the Grammy Award(the most prestigious entertainment award in the world), in the folk song category, same as Fela Anikulapo-Kuti was, the choice of which is the best album KSA has produced would depend on who is listening to his music. His Island Records label titled ‘Aura’, and featuring Stevie Wonder on the Harmonica, seemed to have crossed international boundaries in terms of acceptance. The very fact that Island Records, which has produced great hits like the works of Jimmy Cliff, Bob Marley and others from the less metropolitan countries of the world, has to produce KSA’s ‘Aura’, is a stamp of the global outlook of his work. The same ‘Aura’ was what you were likely to tune into if you were on board SwissAir,(the official carrier of the government of Switzerland) in the mid-1980s. It is also in the same album that KSA celebrates his pride in Ondoness with the lyrics of an Ondo folk song, rendered in uncoloured and undiluted Ondo dialect. Hear him: Oode wa lailai Oode wa o D’a mu yi t’ajo bo S’awa lo l’ode

j a

Ogun n i

Aiye imole Aiye imole D’ibobo je D’ibobo mu D’ibobo d’aso alara bo’ra Aiyeeee Eeeeee! While we congratulate the Ondo Kingdom for producing a global quantum in a King Sunny Ade, we believe the Ondo Development Committee, or its ancillary body of academy would do its utmost to advance the cause of sponsoring works in this direction. We hereby propose to Oba Dr Victor Adesimbo Kiladejo, CFR, D.Litt, Jilo lll, the Osemawe of Ondo Kingdom, the establishment of the Ondo Academy of Letters(OAL) and the Ondo Academy of Science(OAS) ,with the view to showcase the contributions of their own to sons and daughters to global masterpieces in the intellectual world, thereby providing inspiration and role models to future generations of the Ondo people! Happy 71st Birthday, King Sunny Ade, Eminent Ondo Ekimogun Personality!

kaikatika Ogun ja ni kaikatika Ogun ja ni Sokoti Akure ile

McNezer Fasehun, Esq., Lawyer, Journalist, Lecturer, and Author is Senior Assistant Registrar at Wesley University of Technology, Ondo City.




Celebrating KSA ‘The Master Guitarist ’ IT was in the early 70s. I had gone on an errand for my father, to deliver a goodwill message to one of his friends whose son was getting married. I had delivered Baba’s message and was on my way home when I saw a crowd of youngsters like me gathered around a vehicle. On approach, I discovered it was King Sunny Ade (then known as Sunny Ade and the Green Sports Band, or was it “ And His African Beats?). The gist is, all of us followed the truck bearing the musical instruments to Olamojiba Hotel, SurulereOndo venue of a much publicised owambe party. It was a distance of about two kilometres from where the intracity convoy began. We got there together, with the truck. But we were disappointed because we did not see our musical hero, Sunny Ade, alighting from any of the vehicles that followed t h e

truck! So we waited. We must have waited for some four hours without seeing the man. At a point the mu-




SOLA AKINSIKU sic started, but it was so obvious that the Master was not there. We knew he was not there because the Kings guitar was not yet sounding. Th e n all of a sudden, the music changed. The tempo was unmistakable. Sunny Ade had joined the

band on stage and the fireworks from the Master Guitarist (as he was popularly known then) rent the hitherto serene almost lukewarm atmosphere. Those of us who had gone as far as to the gate (of course we couldn’t go beyond that spot; and it wasn’t that we had planned to go in any way) were disappointed that he had sneaked in and we could not catch a glimpse of him, but we were consoled when the popular lyrics of the day now began to ooze from within the securely gated fence of Olamojiba Hotel. We sang along. We danced – yes out there. We had fun. We were happy. And then, about midnight, I remembered I had not gone back home to tell Baba what his friend had asked me to tell him. What happened? That should be a story for another day. Suffice to say that close to fifty years after that experience, I personally still find King Sunny Ade’s presence, anywhere, an awesome experience.

Perhaps it is not too far from the truth to say that KSA is an enigma. He has the God-given capacity to hold any audience spell bound. He is a special gift to Ondo City, Ondo Kingdom, Ondo State, Nigeria and Africa. Indeed, he is a gift to his world. BV


Troubled Sky: Foreign Airlines Run Into Stormy Weather On Nigerian Routes •Over $600m Trapped Naturally, Nigeria is supposed to be the hub of aviation in Africa because of its geographical placement, but wrong policy formulation and implementation, uncomfortable airport environment and lack of planning have taken away what appears the country’s birth right. Emmanuel Olisemeke presents an analytical examination of the troubled aviation industry in Nigeria.

their home countries. The foreign airlines’ funds trapped in the country’s banks grew to over $600m within the first seven months of the year and this generated-lot of crisis in the industry. In the wake of the crisis, two foreign carriers; Iberia and United Airlines suspended flight operations into Nigeria. Iberia cited its inability to repatriate ticket sales fund back to its home country and dwindling passengers patronage as some of the reasons it

had to quit the country’s route. United Airlines while announcing that it would quit the Nigerian route on June 30, 2016, mentioned poor financial performance, weakness in the energy sector and difficulties in sending home monies made from ticket sales as some of its reasons for the action. The airline, commenced scheduled operations to Nigeria on December 13, 2010 as a result of the open skies Continues on P94

THE Nigerian aviation industry has been in turbulent since the beginning of 2016. The first salvo that confronted this sub-sector especially the foreign operators in the year was their inability to repatriate ticket sales funds back to




Foreign Airlines Run Into Stormy Weather On Nigerian Routes Continues from page 93

agreement signed between Nigeria and the United States to boost economic relationships between both nations, it recently declared that it had been operating at a loss in recent times. Nigeria was the only African country the airline operated to from the US. Apart from the two, no fewer than 10 other foreign airlines have withdrawn their services from the country, mostly cargo operators. Besides, by July, Emirates Airlines that was operating twice daily to the Murtala Muhammed International Airport, MMIA, Lagos and seven frequencies weekly to the Nnamdi Azikiwe International Airport, NAIA, Abuja, reduced its 21 frequencies weekly into Nigeria to 14 cutting the Lagos operations by 50 per cent. Till date, the Nigerian aviation industry has not recovered from the first year’s quarter crisis as more foreign carriers are reducing their operations in Nigeria while others have resorted to purchasing Jet A1 (aviation fuel) outside the country, thereby further reducing revenue earnings for the Federal Government. But, stakeholders forecasted that some of the challenges in the sub-sector may continue for a long time or even get tougher by 2017 unless the government take some proactive steps to address the situation, stressing that the country’s recession may affect their performances. Commenting on the economic crunch and how it is affecting airline operations, the Chief Executive Officer, CEO, Belujane Konsult, Mr. Chris Aligbe, attributed the recent stoppage of Nigerian routes by foreign carriers to the shrinking Nigerian market. 94


Minister of State, Aviation, Sirika Hadi

Aligbe noted that it is easy for foreign carriers to quit the Nigerian scene because most of them do not invest in the country, unlike other countries where they also operate, stressing that their inabilities to repatriate their funds was responsible for some of them quitting the stage in the country. Apart from this, Aligbe observed that British Airways, which used to fly the Jumbo Jet aircraft, Boeing 747 into Nigeria for over two decades, had to cut down its services by reducing the size of its aircraft to B777 on its Lagos-London route. He however, observed that the current crisis bedevilling foreign carriers in the country may be a blessing in disguise for the Nigerian carriers like Arik Air and Med-View Airline on the international routes. He said reduction of capacities, frequencies and total suspension of Nigerian routes by some of the foreign carriers indicated that any Nigerian carriers flying such routes would fill up the vacuum this has created. He said: “This is an opportunity for

Nigerian airlines like Arik Air and MedView. They can attract more passengers to their flights, but they should not hike their fares because of this opportunity they may have. Rather, they should try to retain these new customers. “This reality now will show that Nigeria needs to grow its own carriers. National airline is a necessity. As days go, it becomes clear that Nigeria needs to have its airlines operating international routes. We need to support Nigerian airlines.” But, the National Union of Air Transport Employees, NUATE, has its own fears and primary among such is that the fingering crisis in the airline sub-sector may lead to downsizing of about 2,000 workers by the foreign carriers. Abioye declared that such massive sack as a result of the government’s policy poses a great threat to the sector’s development especially at a time when qualified personnel could not secure jobs in the sector. Abioye emphasised that as a result of the policy, international airlines have devised several ways inimical to safety and security, stressing that this would also lower the services they render to their passengers. He urged the Federal Government to wade into the sordid situation to save thousands of workers from loosing their jobs. Abioye pointed out that should the foreign airlines go ahead to sack some of their staff as they had threatened, it would not be in the interest of the aviation sector and Nigeria as a whole. “We hasten to place in the front burner an emerging threat confronting over 2,000 private sector aviation workers in Nigeria which requires your


Troubled Sky: Foreign Airlines Run Into Stormy Weather On Nigerian Routes intervention to forestall imminent loss of jobs of this number of workers”, Abioye added. Also, President of the National Association of Nigeria Travel Agencies, NANTA, Mr. Bankole Bernard, said that the new forex policy and economic crunch came with enormous negative effect on travel agencies, the reason the carriers exited the country. Speaking at the Aviation Round Table, ART, breakfast meeting held in Lagos recently, Bernard said that travel agencies that sold about $1.4bn worth of air tickets in 2015 were beginning to record losses with the departure of the airlines, adding that there was fear that more airlines might quit flying the Nigerian routes. Bernard mentioned inconsistent policy of the current administration, particularly on the naira devaluation as the major reason the industry is on the decline. The Regional Manager of British Airways, Mr. Kola Olayinka, also said that for every $1m repatriated since the new policy began, the airlines lose not

less than N80m. Olayinka blamed the situation on what he called the immediate and unfortunate effect of the new policy, which is affecting all foreign airlines that had funds sitting in the Nigerian banks. Olayinka expressed regret that the effects of the new policy are quite unfortunate, but a price to be paid for “the economic realignment,” but assured that the country would overcome some of its current challenges with the policies of the government. Besides, Olayinka assured that the airline would not close the Nigerian shop because of the long-time relationship with the country. Olayinka insisted that Nigeria remained a strategic market for the British Airways, adding that its operations locally were very strong. He said: “British Airways has a long history in Nigeria, having begun operations in the country 80 years ago as Imperial Airways. Nigeria remains a strategic market for BA and our operations locally are very strong.

“We have not issued any statements at any time indicating that we are on the verge of terminating operations in the country. We will continue daily operations into both Abuja and Lagos.” The President, ART, Mr. Gbenga Olowo in an interview with Brand Visibiity observed that some airlines lost up to 50 per cent of their funds due to the forex policy. Olowo, however, stressed that the foreign airlines remained a major stakeholder in the aviation industry, citing that they currently account for about 90 per cent of the air passenger traffic in the country. He added that even if the foreign airlines continued to leave; it would still not be to the advantage of local carriers like Arik and Med-View, since their fleet capacity is too low to accommodate the huge traffic. Olowo appealed to government to be consistent in its policies relevant to the sub-sector, and to ensure that operators have an enabling environment conducive for profitable aviation business. BV.







Dr. Amos Abu (middle), World Banks’ Task Team Leader on an inspection of the project.

By Adebayo Thomas

Tackling Erosion, Improving Lives Using Watershed Concept

ONE of the most crucial aspects of the Nigeria Erosion and Watershed Project (NEWMAP) is the critical component, watershed. This was conceived not only to mitigate the adverse effect on soil but with an integrated approach to provide a better living condition to the people that are affected by gully erosion and to also enhance their livelihood. Some of the principles include; supports for community’s soil and water conservation; livelihood enhancement activities such as re-grassing and afforestation; income generation, agricultural skill acquisition of the affect-

ed community; continuous engagement and participation of the affected communities; sensitization and awareness creation towards environmental sustainability. Wikipedia described Watershed management as the study of the relevant characteristics of a watershed aimed at the sustainable distribution of its resources and the process of creating and implementing plans, programs, and projects to sustain and enhance watershed functions

that affect the plant, animal, and human communities within a watershed boundary. Likewise, Suhas P Wani and Kaushal K Garg of the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) Patancheru 502 324, Andhra Pradesh, India, in defining watershed management concept and principles explained that Watershed is not simply the hydrological unit but also socio-poContinues on P98




Tackling Erosion, Improving Lives Using Watershed Concept Remediated gully with solid and vegitation Continues from page 97

litical-ecological entity which plays crucial role in determining food, social, and economical security and provides life support services to rural people. And what are the main objectives of an integrated watershed approach? The different objectives of watershed management projects are; to protect, conserve and improve the land of watershed for more efficient and sustained production; to protect and enhance the water resource originating in the watershed; to check soil erosion and to reduce the effect of sediment yield on the watershed; to rehabilitate the deteriorating lands; to moderate the floods peaks at downstream areas; to increase infiltration of rainwater; to enhance the ground water recharge, wherever applicable. to reduce the occurrence of floods and the resultant damage by adopting strategies for flood management; and, to provide standard quality of water by encouraging vegetation and waste disposal facilities. However, NEWMAP 98


summarized all the aforementioned objectives into one: to reduce vulnerability to soil erosion in targeted sub-watershed. Suffice to state; therefore that the activities of the NEWMAP in Nigeria is no less in implementation as described above. According to Salisu Dahiru, NEWMAP’s National Coordinator, the integrated watershed management approach; most especially

the Livelihood and Community participatory aspect, made the project attractive to a great number of stakeholders. “This was why initially, eleven states indicated the desire to start off the project, however seven states; Abia, Anambra, Cross Rivers, Ebonyi, Edo, Enugu, and Imo now referred to as the first mover states were objectively considered and selected. He believed that the successes


Before recorded in these first mover states and the prospect of sustained progress towards the achievement of the project’s objective, led to requests by more states to join NEWMAP. In December 2014, after series of evaluation of applications from additional states, the FPMU and in collaboration with the Federal Ministry of Finance (FMoF) and World Bank (NEWMAP Task Team), seven additional states of Delta, Oyo, Sokoto, Gombe, Plateau, Kogi and Kano were cleared to join, thus making the total number of NEWMAP states fourteen (14). These new additional states have recorded considerable progress in their efforts to commence Project implementation. Speaking further, Dahiru revealed that presently the projects 21 gully erosion sites across the first mover states have achieved varying degrees of appreciable percentage completion after compulsory payment of compensation to about 500 project affected persons (PAP). He also noted that the project has provided job opportunities to more than 300 Nigerians.

After Recently NEWMAP conducted a section of the media to some of its Project sites in Enugu(9th Mile and Ajali water works); Anambra, (Amachalla); Edo (Queen Ede & Oshiobhugie in Auchi); Ebonyi( Nguzu Eda in Afikpo); and Cross river(Ikot Anwatim, Atakpa and Nyanghasang). The first leg of the tour was with the Honourable minister of state, Federal Ministry of Environment, Alhaji Ibrahim Jibril. The oversight activity commenced from the coal city of Enugu and ended in Awka, Anambra state.

Speaking after the exercise, the Minister of State acknowledged that the project, going by the activities on ground, “is meeting up with the development objectives of its existence”. He said the Federal Government was committed to ending erosion menace in the affected states. According to him the partnership with states and the funding partners, i.e. the World Bank that led to the creation of NEWMAP has become very fruitful visibly in the seven first movers states of Abia, AnamContinues on P100




Tackling Erosion, Improving Lives Using Watershed Concept Massive drainage constructed by NEWMAP to contain volumes of water in Auchi Continues from page 99

bra, Ebonyi, Edo, Enugu, Cross River and Imo. Alhaji Jibril who attributed the increasing erosion menace in various parts of the country to what he described as harmful environmental practices by many Nigerians, observed that the beauty of NEWMAP intervention was that “it does not restrict itself to the bioremediation or reclaiming of the land, but also on road construction in some cases, as long as it is factored into the site design.



The coordinator of NEWMAP in Anambra State, Mr. Michael Ivenso believed that the holistic watershed approach of the project; community participation, well detailed site engineering design, transparent procurement and fiduciary procedures as well as governments support in terms of payment of counterpart fund contributed to the success of the project in the state. According to him, “Amachalla gully one of the intervention sites in Awka, Anambra state capital, emanated from the uncontrolled storm

water discharged down the steep sandy slopes of interconnecting village roads, and since there were no drains, the roads became the natural channels for conveying the storm water to the gully heads.” He went further that the situation was compounded by the unplanned development within the area, adding, “the gully was about 172.27m long, 22m deep and 36.4m wide with an elevation between 122m to 153m above sea level.” “Before NEWMAP intervention, interconnected roads between the communities were affected while eight houses were on the verge of being consumed by the gully. The area of reclaimed land is 1Hectare eight houses saved from being consumed by the gully erosion, while 29 households benefited from the livelihood options in the area, with each household having between 5-6persons.” The media Team was also at the Palace of the Otaru of Auchi, His Royal Highness Alhaji Aliru H. Momoh, Ikelebe III, Otaru of Auchi Kingdom. The team entered Auchi from the axis of the Federal Polytechnic located in the town, students, travellers, traders, artisans, civil servants and all, provided the trappings of a


How NEWMAP Saved Auchi From Gully Erosion

Otaru with some officials

busy community. At the Otaru’s palace we were ushered into the reception wing. As usual for those well acquainted with His Highness, he was very businesslike. He commended NEWMAP; the Edo state government, particularly Governor Adams Oshiomole for the vision to partner with NEWMAP towards addressing the decade long gully erosion menace that has divided and fragmented the Auchi city into many unreachable parts. According to Him, a great number of houses and lives have been lost due to the gully erosion issues in Auchi. He said: “previous administrations have tried to employ a piece meal approach to remedy the gully erosion issues. “ adding, “such method was not only unproductive but rather escalated the level of degradation of the area.” He therefore commended the intervention of NEWMAP Its holistic and systematic approach which he described as the best standards and global best practice in fighting the erosion menace. For those who may not be aware, prior to the intervention of NEWMAP, Auchi Gully (also called Oshiobugie Gully) was located in Auchi town. The Oshiobugie plain occupies a large area of land stretching from Warrake Road to Auchi – Igarra road in the main Auchi town. The gully cuts across the villages in Auchi-

Osomekhe, Oluedide and so on. The flood water drains from the sloppy terrain, towards Orle River and this then affected roads and adjoining streets in the town. This led to a dangerous situation whereby roads were cut –off by the gully. schools were threatened and structures submerged by the gully including pipes, as well as siltation of rivers in the area. Auchi gully accelerated in the 1980s when the government engaged in several gully control construction activities within the area in their quest to prevent the action of the gully. In the intervention, most of the drainage systems have insufficient capacity, wrongly placed and in most cases abruptly terminated. All these anthropogenic factors together with the natural factor of convergent topography of Auchi town brought about further destruction and environmental degradation of the gully area. According to Edo State Commissioner for petroleum and Environment, Prince Clem Agba, The nature of soil and topography coupled with the fairly heavy rainfall contribute immensely to the menace of gully erosion in the tow. He however noted that primarily, the gully erosion was caused by a drainage channel that was abruptly terminated. The gully expanded with repeated rain-

falls and the consequent huge overland flow and runoffs. The pattern of flow was such that the flood water flows through several communities such as Ibie, Jattu, Akharuma, Aibotse, Igbei, Akpekpe, Utsogu, Iyekhei, the GRA (through the general hospital) and Oluedide. Then, each heavy rainfall flow builds up to a heavy storm water that destroyed everything on its path before emptying into River Orle; 2km from the gully sites. He noted before NEWMAP moved in the gully was “about 2.4 km in length, with a depth of about 25 -30 m, with the top and bottom widths ranging between 70-120m and 17-108m respectively, with a spread that resulted to seven (7) gully fingers.” He further explained that the erosion gullies became a great threat to the lives and properties of the town folks while in many situations hindered the socio-economic activities in the area over the years. Describing the NEWMAP intervention activities in Auchi, the state project coordinator, Mr. John Adisa said that the project intervention was the watershed approach. He noted that other activities involved small-sized civil works such as construction of infrastructure and gully stabilization, using stone revetment to reclaim, protect and reinforce the exposed Continues on P102




Community Leaders Applaud NEWMAP Continues from page 101

soil surface to stop scouring action of flow velocity. He said according to the engineering designs the project constructed extension of culvert from Otaru Road (Inu-Umoru street) into the gully, with chute channel, stilling basin, apron and installation of rip-rap and gabions mattresses at some areas of the gully. He noted that the interventions were subdivided into three sections; Section 1 has Gully 1 (Obe Main) and its tributary gullies comprised Gully 3 (Obe road 1) and Gully 4 (Obe road 2 with other rills along Audu Momoh Lane 1 and 2). The maximum height of Gully 1 was about 26 m at CH0+723, that of Gully 3 about 18 m at CH0+365, and that of Obe street 2 was 6 m at CH0+253, stressing that “the depth of each gullies gives an idea about the effect that the erosion had with respect to neighbouring buildings before NEWMAP interventions. Speaking further, Adisa noted that the depth of the gullies gives an idea about the activeness and destructions with respect to neighbouring buildings before NEWMAP came to the rescue. He said that Section 2 had Gully 2 and its other tributary gullies (Gully 6 and Gully 7). Gully 2 (NEWMAP intervention) located along Inu Umoru road with its head just beside Momoh Primary School. He said this area was then dilapidated by the gully. The maximum height of Gully 2 before intervention was about 24 m at CH0+860; that of Gully 6 was about 22 m at CH0+266 and that of Gully 7 was about 7 m at CH0+767. NEWMAP intervention in section




3, that is Gully 5, consists of check dams along the main gullies within catchment 7 of the entire Auchi watershed. Gully 5 has a maximum depth of about 12 m at its head and deepens to about 25 m (confluence with the main gully) in an estimated length of 147 m. The average top and bottom widths of the gully are 30 m and 10 m, respectively. The visit to Ebonyi was a very colourful. Just as it were in other south – eastern states, traditional drums and dancers heralded the entry of the NEWMAP team to its sites. This was put together by the livelihood beneficiaries over 300 who have been one way or the other affected by the project intervention in Nguzu Edda. The Ebonyi state Commissioner for Environment, Chief Moses Ogodoali Nomeh enthused the impact of the project in the state. He said the state was very appreciative for the partnership with the Federal Government most especially the livelihood component of the

NEWMAP project. Lastly the Project has done appreciably well in Cross River state. NEWMAP State Coordinator, Mr. Fidelis Anukwa explained that the project was currently working on five critical erosion sites in the state, including Ikot Anwatim, Ikot Ekpo, Edim Otop, Nyaghasang and Atakpa. He explained the precarious effects of erosion in the state prior to NEWMAP intervention, most especially erosion challenge in some communities in the state capital, Calabar including the New Navy International Hospital. “The project has brought relief to these communities especially Ikot Ansa which is a major erosion site in Calabar.” Commenting on the NEWMAP and erosion issue in the state the State Commissioner for Environment, Engr. Mike Eraye recalled that for the past 30 years erosion has been a major threat to the aforementioned communities stating that in the past the state government had made several attempts to stop the damage and had done all in its power to control the damage which he described as a tip of the iceberg but they were not successful. He said for the little time that he came on board he could see that NEWMAP actually has touched lives with its intervention at reclamation, re-grassing and civil works. A Community Leader, Mr. Efiom Etim, thanked the NEWMAP and the World Bank for coming to their aid after a long time of living in fear of losing their property to erosion. He promised to galvanise other members of the community to work hand in hand with the project. BV



Panamera Emmanuel Olisemeke The Porsche Panamera is a curious automotive creature. It has the feature content, interior quality and price tag of a flagship luxury sedan, yet it has only four seats and the hatchback body style of, well, a hatchback. It has the interior design and performance soul of a 911, and the exterior styling of one that went on a binge diet of Baconators. The Panamera really is like nothing else on the road, and that just makes it all the more special. A big part of its distinctiveness is the sheer number of variations available. The whopping 14-model range covers performance (from the

Elegant with boldness 310-horsepower base V6 to the ballistic 570-hp Turbo S), eco-friendliness, poor-weather friendliness and interior space. And then there’s the abundant equipment. Although the Panamera boasts more standard features than the typical Porsche sports car, its options list still includes many of the same customisation choices as the rest of the line-up. The Porsche Panamera is a fourdoor, four-passenger sedan with a hatchback-style trunk. There are 14 trim levels: base, Edition, 4, 4 Edition, S, 4S, S E-Hybrid, GTS, Turbo, Turbo

S and the extended-wheelbase 4S Executive, Turbo Executive, Turbo S Executive and the ultralow-volume Exclusive. The base rear-wheel-drive Panamera and all-wheel-drive Panamera 4 are powered by a V6 and include 18-inch wheels, automatic bi-xenon headlights, LED running lights, front and rear parking sensors, power-folding and auto-dimming mirrors, automatic wipers, cruise control, a sunroof, a power liftgate, dual-zone automatic climate control, heated eight-way power front seats, partial leather upholstery, a




tilt-and-telescoping steering wheel and a 60/40-split rear seatback. Standard tech features include a navigation system, a 7-inch central touchscreen, smartphone app integration, Bluetooth connectivity and an 11-speaker sound system with satellite and HD radios, an auxiliary audio jack, a USB port and a media player interface. The Edition trims add special badging and design cues, the Turbo’s 19-inch wheels, two-tone leather upholstery, a power-adjustable sport steering wheel, 10-way power front seats with four-way lumbar adjustment and memory functions and heated rear seats. Other than the design elements, this equipment is optional on other Panamera models. The Porsche Panamera is available with a variety of engine choices. Each is paired to an automated manual transmission known as PDK. Rear-wheel drive is standard on most models. The GTS, Turbo, Turbo S and “4” come equipped with allwheel drive. An automatic engine stop-start system is included on all models to save fuel.



The base Panamera is powered by a 3.6-litre V6 good for 310 hp and 295 pound-feet of torque. Porsche estimates it will go from zero to 60 mph in 6 seconds, though auto experts expect it to be quicker than that given testing of a previous, less powerful model. The Panamera S has a turbocharged 3.0-litre V6 that produces 420 hp and 384 lb-ft of torque. Porsche estimates a rear-drive version will hit 60 mph in 4.9 seconds, or 4.6 seconds with the launch control function included with the Sport Chrono package. The 4S and its superior traction should shave off 0.3 second. EPA-estimated fuel economy is 21 mpg (17 city/27 highway) with rear- or all-wheel drive. The 4S

Executive returns 20 (17/26). The Turbo S has a version of the same engine pumped up to 570 hp and 553 lb-ft of torque. Its overboost gives it 590 lb-ft of torque. Porsche says it’ll hit 60 mph in 3.6 seconds. It returns the same EPA-estimated fuel economy as the regular Turbo. Finally, the rear-wheel-drive plugin Panamera S E-Hybrid receives an Audi-sourced supercharged 3.0-liter V6 that’s paired with a 95-hp electric motor for a combined output of 416 hp. The transmission is a conventional eight-speed automatic. The EPA estimates that it will return 25 mpg combined when driven in hybrid mode when the plug-in portion of its battery has been depleted. It also estimates an all-electric range of 16 miles, which we verified in our own testing. A full recharge can be achieved in 2.5 hours on 240-volt current or in about 20 miles of driving (we observed it took 26.5) via the unique E-Charge drive mode, which enlists the V6 to charge the battery pack while you’re on the move. Fuel economy predictably plummets in this mode, where we observed 18 mpg while simultaneously driving and charging. Every Porsche Panamera comes standard with antilock brakes, stability control, front and rear side airbags, side curtain airbags and front knee airbags. A rear-view camera is available, as is a blind-spot monitoring system. The Panamera’s optional adaptive cruise control feature is bundled with a forward collision mitigation system that first issues audible and visual warnings, then automatically applies the brakes (potentially all the way to a stop) unless the driver takes action. BV


Branding Your Friendship:

The Hidden Power Of Your Personal Network

By Rafael Aparicio IN today’s world, where competition is global and products so similar, brands go to great lengths to differentiate themselves from the rest, looking for new ways to attract customers to buy something that is essentially the exact same product as their competitors. Think soap, sneakers, electronics, even advertising agencies, almost everything today, including ideas, has become commoditized and has left people relying solely on one thing to make

their decisions: brand. Some go for a nicer identity, smarter packaging, better customer service, the list goes Pele on. Companies are constantly trying to find the slightest edge that can ultimately mean their key differential and set them apart. Now imagine your group of friends being that differential. Let me start off first by asking you this question: are you a brand? Yes, you. Do you consider yourself a brand? We accept David Beckham and Michael Jordan as brands, but somehow we tend to think “us mor-

tals” are not, just because we’re not recognizable enough and don’t even have our own line of underwear. Just as the old saying goes, “If a tree falls in a forest and no one is around to hear it, does it still make a sound?” – well, “if you walk out to the street and no one recognizes you, are you still a brand?” I have to say the answer is yes, of course you are. Regardless of the power of your brand, it will still trigger a perception to those around you, and that’s what branding is all about: perceptions. It is up to you to go ahead and take control of how people perceive you, because if you don’t take control of your own brand, others will.   The way you talk, walk, behave, all adds up to that brand called you. Think of your group of friends, each has a set of traits that makes them – “them.” Are you the cool friend? The nerdy one? The jock? Many of your friends make up for what you’re lacking. You might be shy, but thanks to that idiotic extroverted friend of yours, you now have a girlfriend. Now hold on to that thought and raise it to a professional level. We’ve all have had situations with clients or bosses where you are lacking some vital knowledge and you remind yourself of a friend that can help. So you call him up and voila! Problem Continues on P106




The Hidden Power Of Your Personal Network Continues from page 105

solved. When they ask you how you managed to solve the problem you answer, “I just called up a friend.” Ah, the power of friendship: people sharing valuable knowledge and knowhow just for the sake of friendship. That friend might just have helped you close a deal, and not only was he pleased to help you, he doesn’t expect much in return other than a beer or two – after all – ‘that’s what friends are for’. Now imagine if instead of saying, “I called up a friend” as the reason of your solution, you tell your boss or client “I’m part of a knowledge network.” Not only that, you go ahead and put a name on that knowledge network and even slap on a logo and a slogan to it; You brand it. Suddenly the informality of “calling up a friend” transforms into this tangible, solid institution that can differentiate you.  Your clients don’t only think, “this guy has a friend” but rather, “this guy has access to knowledge.” You might think your personal brand is pretty cool, but your brand as part of a group brand might be even cooler. Both personal brands and group brands can leverage from each other. A personal brand might sell well, but people often overlook the potential group branding has. Think of Marvel’s carefully thought-out 5 year plan to make box office history. Each “personal brand” was given its own spotlight to then conclude with the climactic ‘The Avengers’ movie, which went on to be the 3rd-highest grossing film of all time. Captain America, Thor, Hulk, and Ironman – all of them built as solid personal brands – had movies launched year after year, knowing 106


that the idea of having them together in one final movie would be irresistible to fans worldwide. That’s basically why the 1992 US Olympic Basketball team, better known as “The Dream Team” packed stadiums. Michael Jordan was already amazing, but the idea of MJ alongside Larry Bird, Magic Johnson, Charles Barkley and the likes, was mind-blowing. During my  executive MBA at the Berlin School of Creative Leadership, not only did I meet some of the world’s top advertising creatives and executives, I met true friends. Later on, back home in Bogotá, Colombia, working at my recently founded advertising agency, Raf & Mike, I had three occasions where “I called up a friend” needing their help, each for a special reason. Every time I came back to the client telling them “I talked to this person from this city” they were more than impressed. I

thought to myself, “what if this calling up friends thing was more than that, what if it was organized and managed? What if it was branded?” They say behind every good brand there’s a good story – we already have the story, we are just missing the brand. My thesis went on to research, not only branding but also the creation and management of knowledge networks, the academic foundation I needed to establish this new network and have the structural groundwork for a fluid knowledge network, not just a group of friends. So tomorrow, I can walk into client boardrooms presenting my agency as part of one of the world’s most exclusive advertising and creative Knowledge-sharing Networks, ‘The Berlin Exchange’… 20 of some of the worlds top advertising creatives and executives at their reach. They let me pick their brains and I let them pick mine. It’s one big brain-picking fest, all because we believe in each other’s talent and good faith, something only friendship can build. So think of your friends on a professional level, what can they bring to the table that you are lacking or that can reinforce and complement your knowledge? More importantly; what can you bring to the table? How could you  brand your friendship? You never know, that brand might be the one who sets you apart. Rafael Aparicio Gómez is Co-Founder and Chief Strategy Officer of Raf & Mike, an advertising agency based in Bogotá, Colombia. Culled from Forbes






Profile for Brand Visibility

Brand visibility issue 007  

A professionally packaged magazine on brand profiles to provide strategic positioning for the world's leading products and services.

Brand visibility issue 007  

A professionally packaged magazine on brand profiles to provide strategic positioning for the world's leading products and services.


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