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Trump urges Buhari to halt attacks on Christians MICEAL ANI, DIPO OLADEHINDE, ENDURANCE OKAFOR & BUNMI BAILEY

... Wants Nigeria to take down trade barriers

he President of the United States of America (USA), Donald Trump has urged the Muhammadu Buhari led government to tackle the incessant killings of Christians in the country by so called ‘Fulani Herdsmen’.

The US president made this statement at a joint press con-

ference with the 75 year-old Nigerian president at the white house on Monday.

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“We’ve had very serious problems with Christians who have been murdered, killed in Nigeria. We’re going to be working on that problem, because we can’t allow that to happen,” Trump said during the meeting.

“This includes the burning of churches and burning down of institutions. We are set to

strengthen ties to curtail that and enhance peace.”

Trump said the U.S is fighting against the Islamic State, jihadist and human traffickers.

“We are also helping Nigerians in providing training facilities and military equipment that will help them to protect their citizenry,” the US president added.

Trump added that the U.S.

“deeply values and appreciates Nigeria’s role as a strong democratic leader in the region.”

He said the nation is seeking to expand trade and commercial ties with African nations including Nigeria “to create jobs, wealth and employment.”

“Nigeria is one of our biggest trade partners in the Africa region and we are looking forward to growing more trade Continues on page 4

Nigeria desperately needs a modern rail, but why is it so hard to get?

OUR REPORTER t was meant to be an interim deal but it took Nigeria one whole year to negotiate and sign an agreement with a consortium led by the global infrastructure giant General Electric (GE) for the modern-

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Continues on page 34

Banks net fee income hits N418.52bn as customers groan under excess charges HOPE MOSES-ASHIKE & BALA AUGIE

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ine deposit money banks earned a total of N418.52 billion from fees and commissions in full year 2017, representing 8.09 percent increase over N387.18 billion earned in the corresponding Continues on page 34

On May Day, workers deserve a higher wage and the truth – government cannot P. 4 afford it Fidelity Bank profits soar 94% as PBT tops N20bn in 2017 FY P. 29

L-R: Olawale Cole, vice president, Lagos Chamber of Commerce and Industry (LCCI); Nike Akande, immediate past president; Oscar Onyema, CEO, Nigerian Stock Exchange (NSE); Babatunde Ruwase, president, LCCI; Toki Mabogunje, deputy president, and Muda Yusuf, director-general, during the closing gong ceremony at the NSE by the LCCI delegates in Lagos, yesterday.

Pic by Olawale Amoo

How Boko Haram turns wealthy Northern farmers, traders to paupers CALEB OJEWALE

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oko Haram insurgents in Nigeria’s northeast have crippled the economy of agrarian communities, with millions of displaced farmers not only living in internally displaced persons (IDP) camps, but also revealing a grace to grass story as people who were once wealthy have become impoverished and begging to survive.

BusinessDay correspondent recently embarked on a trip to Borno and Yobe; two of the most affected states by Boko Haram insurgents, and in the encounters with people, though they tried to be hopeful; defeat,

BD INVESTIGATIVE SERIES demoralisation, desperation and absolutely no clue on when things will possibly get better was very evident.

As people who were once farmers and traders in agricultural commodities shared their experiences, sadness and despair was conveyed in the tone. Till date, farmers remain targets for the insurgents and are killed when they venture into the farms, making many stay put in the IDP camps.

“Recently, the insurgents killed about 15 of our farmers.

They came and reported to me and I asked; what can I do about it? It happened in this Jere area

where they went to clear their farms and gather some firewood.

All of them were slaughtered on their farms, and there is nothing anybody can do about it. And that is why even now, no one goes outside Maiduguri, off the tarred road for more than five to six kilometres,” said Abdulkadir Jidda, chairman, All Farmers Association of Nigeria, Borno State Chapter.

Even Abba Gambo, a professor at the University of Maiduguri, who is also a member of the El Kanemi royal family, and says 32 members of his family have been lost to insurgency has been unable to visit his farm in the last

five years. The farm, which according to Gambo is located five kilometres from the university of Maiduguri, is within the village called Dalori, which has one of the IDP camps named after it, due to proximity.

“We cannot access it, and then the military will tell us not to grow sorghum, millet or other crops that will grow high. You have to grow legumes like groundnut and cowpeas, and then the last time the Boko Haram people came with pamphlets, dropping it in the village that anyone who grows tall growing crops will be eliminated.

“And then I have an orchard Continues on page 4

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power projects On May Day, workers deserve a higher wage and Why in West Africa fail to attract investments the truth – government cannot afford it JOSHUA BASSEY

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oday is worker’s day and it is going to be the last worker’s day before the 2019 elections.

As Nigerian workers come out to celebrate this day, they are certain to hear the government and organised labour start another rhetoric around minimum wage and promises about putting in place a new minimum wage structure before 2019.

It is an old trick that workers all over the world tend to fall for. The lure of ever increasing salaries is very difficult to resist.

Several figures have been bandied around about what will be the new minimum wage, which at current levels of N18, 000 per month is a pittance.

Already, public hearings are being conducted on the proposed minimum wage. Chris Ngige, Minister of Labour and Employment, is dreaming of leaving a higher minimum wage as his legacy having not achieved much in his almost three years as a minister.

Ngige at the Public Hearing on Minimum Wage for the SouthSouth Zone in Port Harcourt, Rivers State said Minimum Wage being a federal law as contained in section 34 of the Constitution, “means a price floor below which

workers may not yield their labour.”

“Above that floor, any state can pay as high as its resource capacity accommodates.”

The Nigeria Labour Congress (NLC)injointproposalwiththeTrade Union Congress of Nigeria (TUC) are pushing for N66,500, as against N93,000, proposal submitted by the United Labour Congress (ULC).

All of the unions have rightly cited inflationary trends, depreciating value of the naira, high cost of living and transportation in the absence of efficient and organised public transportation system, as reasons why the Federal Government should see the urgency to review the N18,000 national minimum wage.

Agnes Sessi, chairman, political committee, NLC, Lagos State Chapter, at public hearing on the minimum wage last week, said the current wage structure could not sustain any worker at this critical period in the nation’s economy.

And she is right.

In her opinion, the N66,500 new minimum wage would lift the workers out of the poverty trap and would conform with the International Labour Organisation (ILO) standards on minimum wage to meet the needs of workers and their families.

But Sunday Esan, representative of ULC believes the minimum wage should even be higher. In

his submission, he said N93, 000 must be the benchmark. He argued that N18,000 translates to $50 per month for an average worker and this placed Nigeria among the least paying country in Sub Sahara Africa when compared to South Africa ($517); Ghana ($128); Gabon ($418); Kenya ($331); Ethiopia ($77) and Tanzania which pays $149 as minimum wage.

While the workers have a strong a case for a higher minimum wage, there is also the other side of the argument, which in a pre-election year; the government is reluctant to admit.

They do not have the funds to pay a higher minimum wage. It is estimated that the country’s 36 states have a total wage bill of about N2.6 trillion per annum. Yet annual internally generated revenue is just below N1 trillion, with about 40 percent of it accounted for only by Lagos state.

A recent report by Economic Confidential show that 17 states have internally generated revenues that is less than 10 percent of their federal allocations.

Without federal allocations, these states cannot sustain their operations. With the current N18,000 minimum wage, it is a fact that most states exist to pay salaries with little or nothing left to provide critical infrastructure.

The story is not different at the

federal level, where the government basically borrows to pay salaries.

Budgeted personnel cost in 2017 stood at N1.9 trillion.

When other personnel related costs are added at the federal level, the total cost balloons to N2.99 trillion, representing about 59 percent of government total projected revenues in 2017.

The Federal Government is only able to sustain these payments and meet its other obligations by tapping generously from the domestic debt markets, a luxury that is not available to most states.

Current revenue reality shows that the government cannot afford the higher minimum wage, no matter the public posturing.

Higher minimum wage will only be implementable, if it is followed by a right sizing of the country’s labour force.

Right sizing the labour force is not politically popular topic, so it is a discussion that is avoided but it represents the sad reality of the current situation. Labour can have a higher wage but it will come with a downsizing of the labour force.

This should happen. The country actually needs a leaner and more productive workforce earning higher wages. This also means trimming and aligning agencies and parastatals in line with current realities and opportunities.

How Boko Haram turns wealthy Northern...

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behind the Chad Basin Development Authority, with about 100 mango trees in it and they were fruiting very well. I was taking very good care of them and the harvest used to be plentiful, and then during the dry season when the river comes, I plant rice on the farm and used to get about 100 bags of paddy rice.

But can you believe that for the last five years, I could not step into the farm.

“And honestly, I do not have the guts to go there. I just do not have,” Gambo lamented.

The killing of farmers and the fear of going into farms is not all that places a burden on the minds of many people, but the unfortunate conditions many erstwhile successful farmers and traders have now found themselves.

“Imagine coming from a village where you were so rich there, with plenty cattle, food, everything, and within one hour you’re forced to run out with one gown, or one jumper, you come here but no one cares about you, because many are like you. You see someone who was the richest person in their area, begging in the market here in Maiduguri, this is how bad it is,” Jidda, Borno’s AFAN chairman tells BusinessDay. Sharing his personal grief, he says “it was a terrible thing for me, especially because I have a large family and being a leader of the farmers, but now sitting at home doing nothing for five,

six years. You can’t imagine the pain I am in, you just can’t imagine it.”

In Potiskum, Abubakar Agwai, Yobe state secretary of the Amalgamated cattle dealers association of Nigeria, also lamented that “before insurgency, this was the only market in Nigeria where we spend not less than N950 million every week during the market days of Tuesday, Wednesday, and Thursday. This amount is spent just to buy cows and take them to the southern parts of the country. But it is very unfortunate that this insurgency has severely impacted us, and reduced our capacity to do business like before.

“Many people are unable to cope and recover from the losses. This is because, someone who in the past was buying 15 cows to send to the southern part of the country, is now unable to buy anything. Most of them are now labourers in the market.

“Imagine someone that bought cows and transported to places like Warri, Lagos, Enugu and other places (in the south), is now the one working for those coming to buy, so they can give him some change to live on,” Agwai told BusinessDay. The tales by several traders and farmers share the common theme of despair as the rich at some point are now beggars, and in all of these, hope becomes difficult to hold on to as there appears to be no end in sight to the insurgency.

– World Bank

… Integrated power trade in region to save $5-8bn annually ISAAC ANYAOGU

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he World Bank says Nigeria and other West African countries fail to attract investments for their power projects because they rely on small-scale, expensive oil-fired power generation rather than large projects that benefit from economies of scale.

This is a function of low domestic demand in the countries and the absence of large multi country projects and lack of planning which has led to reliance on emergency rental plants, which further inflates costs.

“Access to electricity in West Africa is at 52 percent, with shortages of up to 80 hours per month, and yet electricity there remains among the costliest in the world, at $0.25 per kilowatt-hour, more than twice the global average,” says the World Bank Group.

The organisation is now encouraging is now calling for investments in large projects Continues on page 34 L-R: Adim Jibunoh, president/ CEO, Transnational Corporation of Nigeria (Transcorp) plc; Tony Elumelu, chairman, Transcorp plc; Helen Iwuchukwu, company secretary, and Kayode Fasola, non-executive director, at the 12th annual general meeting of the company in Lagos, yesterday.

Trump urges Buhari to halt attacks on...

Continued from page 1

relationship based on fairness and reciprocity,” Trump said.

“We give Nigeria $1 Billion in aid every year and we have already started talking with the president in taking down the trade barriers, very substantial trade barrier with the united states trade with Nigeria, as these measures will make it easy for both Nigeria and the United States’ companies to invest. And we will be investing substantially in Nigeria if only they can provide the global play field that we’ll ask for.”

Trump said the U.S. seeks to create a “level playing field” in trade.

Days before Buhari’s visit, 19 Christians were killed after a gunman opened fire in a church in a remote region of the country.

The clashes are largely between Muslim herdsman and Christian farmers in the region.

The U.S President disputed that pulling out of the Iran deal would

send the wrong message to North Korean dictator Kim Jong Un as the U.S prepares to have talks with the North Korean leader.

He said if anything it’s proven he’s been “100 percent right.”

Trump further commented on Israeli Prime Minister Benjamin Netanyahu’s press conference on the Iran deal, saying the reports that Iran has moved nuclear weapons program to a secret location is “not an acceptable situation.”

“I’ve been saying that’s happening, they’re not sitting back idly, they’re setting off missiles which they say are for television purposes, I don’t think so,” said Trump.

He added that he would make a final decision on his stance on the Iran nuclear deal “on or before the 12th” of May. Buhari said that Trump “deserves great deal of credit” for his “statesman” role in the steps being taken towards denuclearization in

the Korean Peninsula. He extended his congratulations to leaders in the region for reaching a pact to take steps toward peace.

Trump said he was moved by inspiring stories of courage and resilience of two rescued Chibok girls kidnapped by Boko Haram he met personally.

Buhari sidestepped questions on Trump’s reported vulgar comments about Africa.

“I’m very careful with what the press says about people other than myself, I’m not sure about the validity or whether that allegation against the president was true or not, the best thing for me is to keep quiet,” said President Buhari when asked if the president’s reported use of vulgar language in describing immigrants from Africa came up during their meetings on Monday.

“We didn’t discuss it. You do have some countries that are in very bad shape. We didn’t discuss it because the president knows me and knows where I’m coming from,” Trump responded.

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Growing investor confidence validates analysts’ positive outlook forecast for real estate in 2018 CHUKA UROKO

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ctivities in the Nigerian real estate sector, as seen in the first quarter of this year, have validated analysts’ prediction at the beginning of the year of a positive outlook for the sector.

The African Property Investment (API) Events had predicted that, given the macroeconomic indicators released by the International Monetary Fund (IMF) pointingtoa5percentGDPgrowth across 18 economies in sub-Saharan Africa, investment opportunities would increase in Nigeria, particularlyintherealestatesector.

The sector has seen some level of investments, especially through joint venture arrangements with state governments, and this cuts across major cities in Nigeria. Apart from this being a demonstration of confidence in the economy, the investors are also responding to the relative improvement in the macroeconomic environment.

In addition to the 3,500 housing units it is developing in Life Camp, Abuja, Brains and Hammer, an Abuja-based real estate developmentfirm,recentlysealed pactwithLagosStategovernment

todevelop750housingunitsinthe state’s upcoming Jubilee Estate in Iganmu.

This is a significant development in a state with over 3 million housing demand-supply gap, more so as the units come in various house-types that may be affordable to various segments of the society.

According to the authorities of the company, the 750 units will comprise 132-tower units and 618 units to be delivered in phases. The Phase 1 of the project comprises 129 units made up of 12 unitsof 2-bedrooms, 24 unitsof 4-bedrooms terrace and 93 other units. There are also twin towers made up of 132 units, comprising 60 units of 1A-bedroom, 24 units of two 1B-bedroom, and 24 units of 3-bedroom maisonette.

Land prices have gone up, which Damola Akindolire, executivedirectoratAlphaMeadDevelopmentCompany,estimatesat10 percentintheupcominglocations such Ibeju Lekki, Lagos, where investors are taking position to tap from the opportunities that will come with developments at the Free Trade Zone.

“We are considering doing a development there because that axis will soon explode”, affirmed Gbenga Olaniyan, CEO, Estate

Links, insisting that increasing number of interests in doing developments reflects investors’ confidence in the economy and, more importantly, serves as a markofwillingnessofgovernment to address housing challenge.

In Ogun State, more than ever before, investors are showing interest in the New Makun City, prompting the Ogun State InvestmentCorporation’s(OPIC)efforts at creating a housing hub along the Lagos – Ibadan Expressway.

Thenewhousinghub,accordingtoofficialsofthecorporation, is aimedatassistingthestategovernment to create a mega city footprint by providing housing units in the new city housing project at theShagamuinterchangeandthe MTR Garden Estates at Isheri end of the expressway.

The partnership that will deliver about 3,000 housing units in the next few years under the Port Harcourtmegacityinitiativeispart of the rising investor-interest that has seen the Rivers State government partnering with private real estate developers.

Expectationisthatthesedevelopments will see more Nigerians, especially city dwellers, having access to homes, leading to improvement in the country’s gross domestic product.

Africa Vaccination Week: Edo charges stakeholders on immunisation, assures of rural penetration of campaign

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do State governor, Godwin Obaseki, has called on stakeholders to intensify efforts to ensure that children are vaccinated to protect them from ailments and diseases that deprive them of a healthy, fulfilling life.

Governor Obaseki, who said this in commemoration of the Africa Vaccination Week celebrated from April 23 to 29, specifically every last week in April, said the call became necessary owing to the growing importance of vaccination of children to stem infant mortality and safeguard their future.

He said the week marked as one of the initiatives of the World Health Organisation’s (WHO) regional office for Africa’s effort to ramp up sensitisation on the need for immunisation.

According to Obaseki, “We have recorded modest success in the state’s immunisation campaign due to a reward

system that saw each local government jostle to get every child at the ward level take the vaccine. The state-wide campaign was adjudged successful by the in-country teams of our donors and we are happy to be setting the pace.”

Noting that the state government is setting up structures to sustain the gains recorded and also get more support from the rural communities, he said, “We will not relent in this campaign.

Already, the local government chairmen have picked the baton from us and are aggressively pursuing the immunisation campaign with renewed vigour.”

He stressed that the 500 healthcare centres to be built across the wards in the state will also fast- track the delivery of healthcare services, noting that the overall strategy is to ensure that no child is left behind.

He said the theme for the 2018 commemoration, ‘Vac-

cines work, Do your part!” draws attention to the need for stakeholders to work together towards ensuring the goals set for immunisation in Nigeria and other parts of Africa are attained, adding, “We do not just need to work together, we need to ensure that we are not working at cross-purpose to ensure that efforts align and that the mission to reach every Nigerian child with vaccines is accomplished.”

According to the WHO, “The over-arching slogan of African Vaccination Week (AVW) is “Vaccinated Communities, Healthy Communities”. This year’s theme highlights the collective action needed to ensure that every person is protected from vaccine-preventable diseases. It urges greater action on immunisation across Africa, with a particular focus on spotlighting the role that everyone can play in this effort, from donors to individuals.”

FG restates commitment to global fight against terrorism

… as the world says, ‘no money for terror’

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he Federal Government has affirmed its commitment to the global fight against the financing of terrorism.

Minister of finance, Kemi Adeosun, gave this pledge at an international conference against the financing of terrorism in Paris, France.

The conference, which had as theme “No money for terror,” was hosted by the French President, Emmanuel Macron, and was attended by the managing director of the International Monetary Fund, Christine La-

garde; President of the World Bank Group, Jim Kim; US Treasury Secretary, Steven Mnuchin, as well as UK Chancellor, Phillip Hammond.

Adeosun, who represented President Muhammadu Buhari, said the country was reinvigorating efforts to tackle the financing of terrorism.

In her address at the conference, the minister said, “The Nigerian government is very committed to the fight against terrorism and cutting off funding for terrorists’ activities.

“The government, in addi-

tion to monitoring of the formal channels of finance via the Nigeria Financial Intelligence Unit (NFIU) and other bodies, is also monitoring ‘non-formal cashbased structures,’ which can often be used for illicit purposes.”

She emphasised the need to address the root cause of terrorism and not the symptoms, saying the men and officers of the Nigeria Customs Service were working to effectively track physical cash movements and transactions at the various borders, including Niger, Benin Republic and Cameroon.

Tuesday 01 May 2018

149 buildings stand distressed in Lagos as 40 demolished JOSHUA BASSEY

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ome 149 buildings are said to be standing distressed across Lagos State, as government confirmed the demolition of 40 in a move aimed at averting collapse and resultant loss of lives and property of residents.

Rotimi Ogunleye, the state commissioner for physical planning and urban development, who confirmed the figures while speaking with newsmen, Monday, said 38 other identified distressed buildings had been earmarked for removal in the next phase while others would follow suit.

According to Ogunleye, all illegal developments and contraventions including those built on drainage channels will be

brought down.

“In a systematic approach to curtail occurrences of building collapse, 149 distressed buildings were identified at different locations out of which 40 of such have been removed, while the next phase of 38 of the structurally defective structures have been earmarked for removal,” Ogunleye said.

Giving details on how the distressed buildings were discovered, the commissioner said officials embarked on audit through the Lagos State Material Testing Laboratory, and in the process, visited all the local councils in the state to inspect both ongoing construction sites and completed buildings suspected to be distressed.

“Consequently, 1,842 sites were visited; 1,392 test

advice notices were served and information on buildings identified as distressed obtained,” he said.

Other activities, he said, from April 2017 to March 14, 2018, a total of 2,023 planning permit applications were received with 1,237 approved and others at various stages of processing, while due to adoption of technology to fast-track the process through the Electronic Planning Permit (e-pp) platform, applicants can now have their permits within 10 days.

He said in order to clear backlog of applications and to encourage regularisation of developments without permit, the state has also granted six months amnesty starting from March 1 to August 31, 2018, advising property owners to fully utilise the opportunity.

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NEWS Afreximbank tasks private sector on manufacture of suitable goods for AfCFTA to reap benefits

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frican Export-Import Bank (Afreximbank) has urged the private sector in the continent to manufacture goods that would fit into the African Continental Free Trade Area (AfCFTA) to reap benefits of the agreement.

Benedict Oramah, president of Afreximbank, said this in a statement issued by Obi Emekekwue, the bank’s director and global head, communications and events management department, on Monday.

Oramah gave the advice while addressing Egyptian business leaders at a breakfast meeting in Cairo, saying it would be meaningless for the continent’s private sector to manufacture goods that were of no benefit to the Continental Free Trade Area and expect returns.

He urged the private sector in different countries to identify the opportunities in other markets, saying, “For instance, Egypt, with its relatively advanced industrial base could serve as a viable manufacturing hub and major source of technologies for most of the continent.

“Its nearness to major markets in Africa also offered a tremendous opportunity for accessing the abundant raw materials and other intermediate goods from other African countries for further processing and export at competitive rates to other markets.”

According to Oramah, this will ensure success of the CFTA, as Afreximbank has started working with the African Union Commission to ensure the realisation of the goals.

He assured that the bank

would assist with information, market intelligence and financing, which would enable the private sector take advantage of the opportunities that would emerge as a result of the AfCFTA. Kanayo Awani, the bank’s managing director, Intra-African Trade Initiative, informed the business leaders that to strengthen trade in Africa, an Intra-African Trade Fair would hold in Cairo in December.

Awani said the fair, being organised by Afreximbank in collaboration with the African Union (AU), would hold from December 11 to 17.

The business breakfast was organised by AfroDev, a Cairobased consulting and training firm that works on promoting economic development and business links among African countries.

Customs earns N11.6bn in Q1 at Lagos Airport, impounds military camouflage, others IFEOMA OKEKE

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igeria Customs Service (NCS), Murtala Muhammed International Airport (MMIA), Lagos command, earned at least N11.6 billion in the first quarter (Q1) of 2018.

Thecommandalsomadeseveral seizures that include military camouflageuniforms,bulletproof jackets, military helmets, military Fez caps and military vest of different camouflage colours from the shedsofthetwoground-handling companies at the airport.

A statement by Ephraim Haruna, the spokesman of the command, said the figure generated represented 74.34 percent of the envisage revenue target for the quarter under review.

Haruna explained that in the first month, Jayne Shoboiki, the new customs area comptroller, the command generated over N4.12 billion despite the public

holidays within the month, which prevented its officials from carrying out their duties.

He said within the first quarter, the command made seizure of consignments of military hardware imported into the country, which were intercepted at both NigerianAviationHandlingCompany (NAHCO) plc shed and the Skyway Aviation Handling Company Limited (SAHCOL) shed with different airway bill numbers and different importers and organisations.

Some of the seizures, according to Haruna, are air gun importedwithtwodifferentend-user certificates.

Other seizures were 20 pieces of assorted optical sight wrapped in a military camouflage uniform bags, mainly for riffles and grenade launcher, military knee/ shin guards, handcuffs, police official cardigans, drones, 108 cartons of expired (2009) beef, pangolin scales and Tramadol

tablets with no of the National Agency for Food and Drug Administration and Control (NAFDAC) to be exported out of the country, among others.

The statement quoted Shoboiki as advising clearing agents to enlighten the importers to desist from bringing in items that were not only prohibited, but absolutelyprohibited,addingthat military hardwares were not to be imported by individuals.

She said such items must come into the country with an end-user certificate, which she said these did not have.

She said: “We have enough fresh beef in this country, I see no reason someone will import not only beef but expired one. The item is under the import prohibition list, schedule three, item two of the Common External Tariff (CET), was abandoned and all effort made to arrest the consignee proved abortive as the address mentioned does not exist.”

NBA-SBL IP seminar: Kaduna first lady calls for public private partnerships to promote IP investments ANTHONY NLEBEM

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ife of Kaduna State governor, Asia Ahmad el-Rufai, has called for public private partnerships for the promotion of innovation, creativity and investments in intellectual property (IP) in the state, especially in the area of balancing gender involvement.

Thewifeofthegovernormade this call at a seminar organised by the intellectual property committee of the Nigerian Bar association Section on Business Law (NBASBL) in Kaduna last week, where she also called for sustainable sensitisation of the general public on the challenges, expectations and benefits of a proactive IP regime and the revamping and remodelling of our educational curriculum.

Shesaid,“Weneedtothinkout of the box in formulating policies, also taking into consideration our areas of strength and our

peculiarities.” She further called for the teaching of sciences in local languages to solve the mother tongue language barrier issues.

The event hosted by the NBASBL Intellectual Property Committee, saw the coming together of eminent and celebrated IP minds at the seminar, which had two sessions with two significant themes - ‘Securing Nigeria’s Future Through Innovation and Creativity,’and‘PoweringChange: Women in Innovation and Creativity.’

In his welcome address, chairman of the IP Committee, Afam Nwokedi, welcomed participants and called on stakeholders to join in the very useful and imperative discussions needed to draw a road mapforactualisingtheformulation of an IP policy in Nigeria.

He noted that as IP was an essential ingredient in any form of development that Nigeria would seek, it was necessary to get it right from the beginning.

Buttressingthisposition,chair-

man of the NBA-SBL, Olumide Akpata, said the NBA-SBL had undertaken the task of developing capacity and growth in the legalprofessionthroughitsvarious committees.

“To this end” he said, “The SBL is partnering with relevant institutionstoformulatecurriculums.The process of knowledge acquisition being continuous, the Section will churnoutmorethought-provoking platforms to assist in the drive for knowledge acquisition, not only amongst qualified lawyers, but potential law graduates.”

Attorney General of Kaduna State, Umma Hikima, thanked the NBA-SBL and its IP Committee for choosing Kaduna State as a seat of celebration for this year’s World Intellectual Property Organisation (WIPO)-inducedcelebration.She said the state was working assiduously towards placing the state in the forefront of benefiting from the implementations of the various treaty obligations that Nigeria had entered into in the IP space.

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Tuesday 01 May 2018

Send 800word comments to comment@businessdayonline.com

Can Nigeria survive a constitutional crisis in this climate?

MAZI SAM OHUABUNWA OFR sam@starteamconsult.com

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hat this nation is at war has become obvious. As a matter of fact, this country has faced many war situations in its recent history. The classical war was the Nigeria-Biafra war in which there were two combatants and there was some territorial delineation. Both sides were armed, even if one side was better armed and received more international support.

But recent wars in Nigeria have been largely asymmetrical. You may never fully identify who the combatants are, what the war is all about and how to determine its end. The Boko Haram war though at one time seemed to have progressed into a typical warfare, when the Nigerian Army supported by the Air force confronted it head on to recover the territories it had illegal taken, it has returned to where it started, a war against the innocent citizens of the country. It is daily attacking civilian targets, not military targets and seems to operate without boundaries. And because it has no boundaries and its targets not well defined, it has been difficult to defeat. Almost daily, its suicide bombers kill themselves and all people close by. And once in a while it springs surprise displaying exceptional military strength as it did in Dapchi in February this year or as it did in Maiduguri last week. Apparently from nowhere, a ‘defeated and degraded’

STRATEGY & POLICY

MA JOHNSON Johnson is a marine project management consultant and Chartered Engineer. He is a Fellow of the Institute of Marine Engineering, Science and Technology, UK.

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he aspiration of Nigeria to be one of the top twenty economies in the world in the nearest future will be a mere fantasy if students in our secondary schools go digital with examination malpractices.

As long as there are illegal sites on the internet, exhibiting questions and answers of school certificate examination papers organized by the West African Examinations Council (WAEC), one can say that Nigeria is not breeding quality manpower to drive its development agenda in the future.

One must accept that the world is in an era where spin-offs of the Information and Communications Technology (ICT) and internet revolutions have transformed “old economies” to “new economies”. But that does not mean that our secondary school students should use these technologies-ICT and internet-

Boko Haram launched a massive military attack on Maiduguri town.

They were repelled by the Nigerian military leaving behind several dead and injured civilians. It is clear to many that the Boko Haram war is far from over and continues to consume a lot of national resources.

The current blazing war is that of the militant Fulani herdsmen that is ravaging Nigeria with the main theatre of the war in the North central region and the epicentre in Benue state. There are several things that are unique about this particular war.

Like the Boko Haram, this war is also asymmetrical but it also has territorial ambition. The cattle herdsmen or their militants occupy conquered territories and farmlands as the ostensible reason for the war. But we have also noted where they have invaded villages or towns, killed people, burnt houses, destroyed sundry property and departed with no attempt to occupy. Perhaps these kinds of attacks are undertaken by the ‘remnants of Muamar Ghadaffi’s army’ that have free access to our country. These may be also the same groups that troubled Southern Kaduna for some time until Governor Nasir El Rufai paid them off. Who knows, they may return to Kaduna when they exhaust the ransom money.

Last week Tuesday, 24th April 2018, some suspected herdsmen or the remnants of Muamar Ghadaffi’s army arrived at a church - St Ignatius Catholic Church in Mbalom in Gwer East local Government area of Benue State in the early hours of the day and shot and killed two Catholic priests, one cathechist and sixteen other worshipers and disappeared. Now what was this about? Farmland or church land? And since then, the battles rage on in Benue and surrounding states.

This past Friday, 27th April, the mili-

Can Nigeria afford a constitutional crisis at this time? Is this incipient crisis inevitable or is it being contrived to deflect attention from the security crisis or indeed to compound it? Why did the President not seek the approval of the National Assembly before spending this money? tants freely attacked another ChurchAfrican church premises in Mbamudo village, Ukemberagya in Logo LGA in Benue, killing seven persons who were internally displaced persons (IDPs) taking refuge in the church premises.

This double attack on the church in one-week forced the National Assembly to summon the President to brief them on what has happened to Nigeria’s internal security. Indeed the legislators urged the President to declare a state of emergency in Benue as a last resort. Will the President heed the summons or accede to the counsel? Part of the uniqueness of this war unlike the Boko Haram war, is that neither the police nor the army is confronting the aggressors. The aggressors have free rein, come when they like, kill as many as they like and leave with ease. Nobody is arrested and we all wait for the next attack and then governments begin to shed crocodile tears or issue dumb condemnations. I really feel sad for the people of Benue state as they have been fully abandoned by both the federal and Benue state governments. The federal government only issues annoying statements that mock the people, promising to arrest the perpetrators which they never do and promising safety which they never could offer. Governor Ortom recently seemed to have thrown in the Towel and ran to China for safety asking his helpless citi-

zens to defend themselves with stones and pebbles as David used against the Philistines in biblical days. His deputy was a pathetic sight to behold as he came out daily to reel out the casualty figures. He looked hopeless, helpless and incredulous. What spineless leadership Benue state has!

The other theatres of the war in Plateau, Nasarawa, Taraba and Zamfara erupt from time to time stretching Nigeria’s armed forces to the limit. The Nigerian armed forces have never been as busy, at least not since the civil war of 1967-70. Since 2015, the military has launched up to twenty operationsLafiya dole, Gama Aiki, operation safe corridor, Python dance 1&2, Crocodile smile 1& 2, Tsera Teku, Awatse, Daji, Harbin Kunama 1&2, operation safe haven, Delta safe and Ruwan Wuta 1&2. It launched operation Ayem a Kpatuma (cat race) early this year in Benue and matters got worse for the citizens. A few days ago it announced ‘operation last hope’ that will run between May 1-July 18 and that will finally close the Boko Haram insurgency and rescue Leah Sharibu and the remaining Chibok girls. Last hope indeed!

If you ask me, this should be enough headache for any government.

But it seems this government is not as troubled as many of the ordinary citizens are. President Muhammadu Buhari has kept his international travel schedule as if nothing serious was happening in the country. He was in the UK for over one week attending the Commonwealth of Nations Heads of Government’s meeting and undertaking a state visit. While he was there, Senator Omo Agege led a group of militants into the hallowed chambers of the Senate and snatched the mace.

Buhari returned home and treated the matter with contempt and soon left the country on the invitation of President Donald Trump, Nigeria’s new found

friend and overlord.

Meanwhile a political crisis had been instigated in Nigeria. A couple of months ago, actually on the 13th of December, 2017, the governors of the states of Nigeria at the 83rd meeting of the National Economic Council took a unilateral decision to ‘donate ‘ one billion dollars of Nigeria’s money to the federal government for security purposes especially to support the fight against Boko Haram insurgency.

There was plenty of hullabaloo about this decision in the media. Many queried the competence of the governors’ forum to treat the money that belonged to the federation account as if it belonged to them alone. The local governments were not consulted nor the legislature- state and federal.

Others wondered what the Federal government would do with that kind of money, considering that they had already declared victory over Boko Haram and saw the Herdsmen killings as mere communal conflict. Nevertheless it was presumed that before the money would be spent, the executive arm of government would naturally seek the appropriation or approval by the National Assembly. But the entire nation was shocked last week to hear that the government had already spent about 469 million dollars as payment for 12 super Tucano aircrafts to the United States of America (USA). This information was confirmed in a communication from the President to the National Assembly asking them to approve the expenditure which he had already executed.

Note: the rest of this article continues in the online edition of Business Day @https://businessdayonline.com/

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Quality of future manpower to perpetrate examination fraud and other illegalities.

The theme of this piece was inspired by a bold front-page headline on BusinessDay edition of April 25, 2018 titled “Digital cheating rocks WAEC.” It is very embarrassing as this writer confirmed a few of the infamous websites reflected in the report. Even WAEC invigilators are alleged to be part of the scam. The future of our country is mortgaged if we allow this illegality to continue. If secondary school students carry on leisurely with exam malpractices without being checked, they will disappoint our country when it matters most. By implication, the quality of our manpower in the future will be inferior to those from other nations who are active participants in world economy.

Today, the global economy is knowledge-based. A knowledge economy creates knowledge and it is used by a nation to pursue its domestic and international goals that are relevant to national interests. In a knowledge economy, knowledge is fast replacing physical resources as the driver of economic growth. The interface of the “new economy” with “knowledge economy” has led to a rise in global productivity and growth which has resulted in accelerated investments, wealth creation, low inflation, and elimination of poverty. These characteristics are mostly found in developed and industrialized countries.

For Nigeria to be an active participant and not a spectator in global affairs, it must have an educated and skilled populationthat can create and use knowledge. Nigeria must have an efficient innovation system in firms, research centers, universities, consultancies and other organizations that can draw from the growing stock of global knowledge. They must assimilate and adapt the knowledge to local needs, in order to create relevant new knowledge.

This can be achieved when our secondary school students are not intellectually lazy.

Let’s be honest, examination malpractice has been going on for a long time. In 2004, a friend whose wife was the principal of a secondary school in Port Harcourt once told methat some parents tried to induce his wife to assist their wards to pass school certificate examinations. And because she did not accept their illegal offers, they call her all sorts of names.

Some parents even say “she will remain poor for life.”

So this writer is not surprised that some parents join forces with their wards to patronize digital examination malpractice markets in Nigeria by providing about ten thousand Naira only to have access to WAEC examination questions and answers. After all we are in a digital world.

But the question which comes to mind is: How is Nigeria going to have abundant educated and skilled population if students continue to cheat in their exams?

I ask this question because our students must cultivate a culture of “good thinking”

so that they can be good products of the society in future. If secondary school students cannot read, think, write and pass WAEC examination on their own steam without cheating, then Nigeria is breeding inferior manpower for the future.

Some secondary school children indulge in examination malpractices in order have mandatory five credits in English and Mathematics required for tertiary level admission. The consequence is that we have a country where majority of Nigeria’s tertiary students graduate with inadequacies in writing, analytical and communication skills expected of them. It is from this group of students that odd men and women who the society will refer to as professors, accountants, engineers, journalists, medical doctors, pharmacists, military generals and other professionals will emerge later. Which type of nation are we building? Nigeria cannot afford to hand over the baton of leadership to cheats who will run the affairs of this country in the future.

One of the poor narrativesof Nigeria’s education sector is that some teachers have been accused of having forged credentials. The situation is so bad that some teachers in primary and secondary schools across the country do not possess the WAEC School Certificate with credits in five subjects including English and Mathematics.

This writer still remembers the case of

teachers having fake certificates in a few states. Some of these teachers with fake certificates are back in the classrooms teaching. They have been pardoned by their state assemblies.

Nigeria has politicized its educational system. We have equally read in dailies about many Nigerians in high places without genuine certificates. Yet, only a handful are arrested, investigated and convicted while others are busy gallivanting about in the country. With these societal ills, do you expect our secondary school students to be above board? No! Gone are the days when teachers are role models to students.

Currently, most teachers have lost their character. It’s very unfortunate.

Our education system has collapsed.For many years in Nigeria, mediocrity has been the standard.

The country has deliberately relegated creativity to the background while rascality has been promoted as an acceptable means of governance. If drastic measures are not taken to halt this ugly trend, one would not be wrong to say that Nigeria is sitting on a time bomb which is about to explode. So the Registrar, WAEC must dig deep into the root cause of this crime. And to prevent our future generations from perishing, the education sector needs a complete overhaul urgently.

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Ghanaians shouldn’t worry over much about the American military

RAFIQ RAJI “Dr Raji is chief economist at Macroafricaintel. He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

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t came to light in late March that Ghana would be hosting the American military from time to time. That is putting it mildly. The louder headlines were that the Americans would be setting up a military base in Ghana; the birthplace of pan-Africanist and leader of the independence movement, Kwame Nkrumah.

Naturally, Ghanaians would have none of it. They made their feelings known on the streets. Such was the outcry, President Nana Akufo-Addo had no choice but to address his country men and women to set the record straight.

The Americans would only be using existing Ghanaian military facilities for joint exercises and so on. They could land their fighter jets and other planes at designated airports, for instance.

They would also be able to use the country’s radio channels.

What would Ghana get in return?

Its military would get $20 million worth of equipment and training, courtesy of the American government. This is pittance, of course. A better deal could have been struck.

Easing in Ghana has long cooperated with the Americans on military matters. This much the U.S. embassy in Accra said in a statement on 20 March 2018: “The current Status of Forces Agreement (SOFA) between the United State of America and the Republic of Ghana is approximately 20 years old. It does not cover the current range and volume of bilateral exercises and assistance.” So why the outcry now; especially as under the new Defense Cooperation Agreement (DCA), the U.S. asserts its military would

What would Ghana get in return? Its military would get $20 million worth of equipment and training, courtesy of the American government. This is pittance, of course. A better deal could have been struck only be able to enter Ghanaian territory with permission of the government and that “…it has not requested, nor does it intend to request, the establishment of a military base in Ghana or the permanent presence of U.S. troops in Ghana.” The government accuses opposition parties of making mischief by playing politics with the matter. There is some truth there.

Still, there is a genuine aversion to any foreign military presence in Ghana and perhaps elsewhere

on the continent.

To put blame on the Americans would be unfair, though; especially as a previous Ghanaian administration is believed to have actively sought the increased military cooperation. Even so, America’s military expansionism in Africa has taken on a new dimension in recent times. It used to be that it only needed these military bases to fight terrorist elements scattered across the continent. It also sought access to ports along key sea routes for its military ships, aircraft carriers and so on for proximal logistical support for its operations.

But now there is an additional motivation: China. Hitherto, the Asian nation’s interest in Africa was largely economic. That has changed, it seems.

More the merrier But why is it important now for America to have broader access to Ghana’s military infrastructure? The United States already has military facilities in Niger in West Africa, from where it carries out drone attacks, and Djibouti in

east Africa, which has locational advantages from being by the sea and at the horn of the continent.

What the American military did not have in West Africa hitherto was unfettered access to a port.

Since neighbouring Nigeria has always shown stiff resistance to any military arrangement that puts American equipment or boots on the ground in its territory and is clearly not an option, Ghana is a natural alternative. In the agreement, the American military would be able to bring in equipment via the sea and store them in a designated area; with permission, of course. Still, how unlikely is it that it desires and might actively seek more permanent arrangements in the future? That said, outside of a desire to preserve their independence, is there really cause for Ghanaians to be concerned?

A guest with connections, who the head of the house decides to give a proper room, and would be bringing along his dog in future visits, could hardly be considered threatening.

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Lagos should adopt dynamic routing to improve commuting

OLA OLADIRAN BELLO Dr Bello holds MPhil and PhD degrees from the University of Cambridge and is the Executive Director of Good Governance Africa (GGA).

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ommuting between Lagos’s central business district on the island and the city’s mainland remains a lot more onerous than it should. Long delays on the Third-Mainland Bridge during peak periods – or what Lagosians routinely refer to as the rush hours – is both time and energy-consuming. It’s a significant productivity drain on the city with its strategic economic role. Slow mobility ranks alongside power shortage as a key structural constraint to Lagos’s competitiveness. Implementing creative ideas to optimizeexistingtransportinfrastructure will help. On the bridge especially, it can help to unblock what is arguably the most important transportation artery in Nigeria’s commercial capital.

This will bring relief to motorists even as city planners work on devising more long-term solutions. As the urban conglomeration that accounts for a full quarter of Nigeria’s economic output and Africa’s first genuine contender for the status of a megacity - Lagos must thinkboldlyandtweakmoreattheedges.

Otherwise its longer-term sustainability and bid to consolidate as Nigeria’s economic engine will hang precipitously in the balance. A dysfunctional transport system with worsening mobility will carry knock-on effects, likely hobbling Nigeria’s potential to drive integration and prosperity.

Tasking commute A system of scheduled lanes switches on the Third-Mainland Bridge will

help to expand capacity for travellers to Lagos’s islands in the mornings and commuters bound for the mainland in theafternoon.Whatfollowsthereforeisa very specific proposal for lane optimisation on the bridge which could provide significant capacity expansion to accommodateitsbustlingvehiculartraffic.

This author draws on his own anecdotal experience of early morning commutes on the bridge from the island-side in IkoyitoIkejaonthemainland,aroutehe plies about four to six times each month.

From about 4am to 8am on working days, island-bound commuters using the bridge contend with steady traffic build-up which slows to a crawl at around 7am. During the afternoon peak hours, usually from 4pm to 8pm, the direction of the pile-up is reversed.

Workers leaving the island for their abodes on the mainland contend with hours-long traffic delay.On Wednesday 18th April this author entered the bridge from the Ikoyi/Osborne estate ramp as early as 7am. It soon became apparent that vehicular traffic towards the island was already backed up for kilometres.

Whilst traffic towards the island extended unbroken to the Oworonshoki mainland end of the bridge, one would struggle to count 30 vehicles plying the entire four lanes in the mainland direction. This was the observation for the 10minutes or so needed to traverse the 11.8kmlengthtoOworonshoki.Perhaps this asymmetry between both traffic directions is not always so wide but it is the dominant morning pattern which is reversed in the afternoon as workers head home from the island. Which raises the question: why aren’t we experimenting with a system that dynamically relieves pressure on commuters in peak traffic through the use of excess lane capacity on the one side?

Re-shuffle to relieve The whole Third-Mainland Bridge needs creative rethinking. Since the bridge consists of four commuter lanes in each direction, there is a strong case for optimising the lanes during peak through co-opting two proximate lanes from the opposite side to supplement in the congested direction. This solution

will see a dynamic optimisation of the 4+4 lanesby switching it to 6+2 system when needed.Itessentiallyrequiresreversingthe normal flow of two lanes on the other side (those closest to the congested side of the bridge). Some traffic can thus be diverted to the other side to supplement capacity.

This should relief choked-up traffic with two makeshift extra capacity lanes being deployed to form six lanes (as opposed to the present four) in peak traffic periods.

Piloting this scheduled lane shifts during peak periods promises an exciting template that could be applied elsewhere in the city. Undoubtedly, the two lanes left on the lighter traffic side will be sufficient for travellers heading in thatdirection. The process should operate only on work days (Monday to Friday) with a coordinated arrangement in place to smoothly reverse theflow: six lane will convey traffic towards the island from 7am-10am and six lanes will be open to vehicular flow towards the mainland from 4pm to 8pm.

Emulate trend setters The importance of good proactive management of a dynamically switching lane systems along major commuter arteries cannot be over-emphasised. The devil is in the detail. Many world cities already implement similar approaches based on capacity expansion and constriction in each direction as needed. That has kept commutercitiesfromCapeTownthrough LosAngelestoTokyotickingthroughpeak traffic hours. Since the openingof the Third-Mainland Bridge in the 1980s, the rapidexpansioninthenumberofvehicles has not seen a corresponding expansion of road infrastructure. Under-capacity of the bridge relative to vehicularnumbers is therefore one consequence.

Other measures such as prohibiting some vehicles from plying congested routes on specific days or during some hours are certainly more draconian than the capacity switch innovation that is being proposed here. Lane switching can alleviate the perennial hardship faced by motorists pending the actualisation of Lagos’s plan to build a 38km-length FourthMainland Bridge. However, at the core of getting this right - like every public administration issue in Nigeria - will be good governanceofthesystem.Thiswillrequire

advance publicity, effective commuter education, adequate signage along the entire route, redesign of exit lanes and all other such measures required to create a well-functioning, dynamic and easily understood traffic optimisation system on the Third Mainland Bridge.

Piloting this system could allow for another big transformation in Lagos’s traffic management: the creation of a smallbutuniformedcorpstomonitoring motorist’s adherence to the temporary lanepartitionsystem.Thiswillhelpdeter some of the notorious habits that slow down traffic on the bridge, especially the hundreds of slow-moving vehicles that stayinthefastlanesandtherebyobstruct faster moving vehicles. Poor education of motorists over the years and a general lack of awareness of the drawbacks has led to “lane-hugging” contributing probably as much as 30% of the traffic build-up, with the increasing vehicular entry onto the bridge inevitably slowing down finally to a crawl. This bridge corps will also be needed to oversee a robustly implemented network of temporary cones placed at one 1 meter intervals to partition the two directions of travel.

The cones will come into place an hour beforethestartofthelaneexpansionsystem at peak-periods in either direction.

A bridge safety corps Whilst the bridge is a federal road, piloting a state traffic monitoring corps there could help lay the foundation of a dedicated bridge and highway corps. It can gradually grow into a specially-trained unit with the broader Lagos State Transport Management Agency (LASTMA).

Diligent planning and a smooth roll-out will be important to maximise benefits andmitigatepotentialrisksinthesystem.

A careful spatial re-design at specific points is needed to facilitate entry and exit onto the convertible two lanes on the proximate side of peak traffic. This redesign requires some investment but the likely gains for commuters will justify such an expenditure.

Even as the fine point in the design and implementation are carefully worked through, extensive precautionary measures will need to be in place to guarantee safety and achieve the

intended goal. First, clear signage should be erected well in advance. The bridge corps officers must also be stationed at the entry and exit to the makeshift lanes.

Theywilldisplayinformationonplacards reminding motorists of possible exits if using the two extra lanes.

Second, core components of the system should be carefully piloted before the actual roll-out. One possibility is to dedicate the two extra lanes during the mornings to only those motorists exiting at the Osborne and other ramps further into the island. Another option is to allocate one of the makeshift lanes for the exclusive use of commercial passenger vehicles, which is probably viable given the general shift to longer routing with fewer stops by commercial passenger vehicles.

Third, Lagos is notorious for large numbers of motorists (particularly the commercial operators) who ignore road signs and thereby routinely endanger the safety of other road users.

Oversight systems and physical barriers will therefore be needed to compel all drivers, for example those needing to exit the bridge earlier at points such as the Oyingbo/Adekunle ramp, to opt for the normal four lanes from their point of entry onto the bridge. Without doubt, continuing public education and clear and adequate signage throughout the route will help to guarantee public trust and buy-in for this dynamic lanes system.

In the longer term, solutions focused on spatial reordering in Lagos will complement short-term tinkering of traffic lanes between the island and the mainland. In particular, creating safe and well maintained business clusters and parks in strategic axes on the mainland will help to reduce workers’ commute through congested traffic.

But even as planners find such redesign and structural solutions, there are clear and immediate efficiency benefits to be derived from switching the existing bridge lanes to decongest peak hour traffic.

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Frank Aigbogun EDITOR-IN-CHIEF Prof. Onwuchekwa Jemie EDITOR Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, SALES AND MARKETING Kola Garuba EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure ADVERT MANAGER Adeola Ajewole MANAGER, SYSTEMS & CONTROL Emeka Ifeanyi HEAD OF SALES, CONFERENCES Rerhe Idonije SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire GM, BUSINESS DEVELOPMENT (North)

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Tuesday 01 May 2018

Instigating a constitutional crisis

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ate December last year, the government announced that the National Economic Council has approved $1 billion to be spent by the federal government from the Excess Crude Account to fight Boko Haram insurgency in the Northeast region – the same Boko Haram the government and the army repeatedly assured it had defeated technically, had been dislodged from their stronghold of Sambisa forest and which no longer controls an inch of Nigeria’s territory but whose remnant and fleeing members could only attack soft targets. For added measure, the Chairman of the governor’s forum, Abdulaziz Yari, told the media the governors of the 36 states of Nigeria approved the withdrawal even though Ekiti state governor, Ayo Fayose denied ever agreeing to such plan.

We queried the decision on the following grounds: First, the money in the Excess Crude Account belongs to the three tiers of government (the federal, state and local governments) and by extension the entire citizenry.

The federal and state govern-

ments or more appropriately, their executives alone cannot decide on what to do with it to the exclusion of the local governments and especially the representatives of the people.

It is not some personal money; therefore the governors have no right to grant permission to the federal government to use it for whatever purpose without due process. Secondly, when have the National Economic Council and the Governor’s forum become a legislative institution with the power of the purse when there is a legitimate National Assembly in place and constitutionally assigned to perform that function? Three, the government has already proposed to spend another N422 billion (the second highest in the proposed budget) for Defence in the 2018 budget.

Why another $1 billion for fighting an already defeated enemy?

Fourth, if the government’s decision is to rebuild the region affected by the insurgency, there already exist several interventions being undertaken in the Northeast both by government and the private sector including the Presidential Initiative in the North East (PINE), whose money the sacked Secretary to the Federal Government helped

himself and his associates generously to, the Northeast Development Agency, private sector led Northeast fund, interventions by national and international Non-Governmental Organisations, the dedicated focus by the World Bank as requested by the president; all targeted at rebuilding the region.

We concluded that the decision was fraught with many irregularities and impunity and the National Assembly must not allow it to pass. We were therefore taken aback when, last week, the Minister of Defence informed the nation at the end of a meeting the president had with security chiefs at the Presidential Villa that the president has approved the release of $1 billion for the procurement of security equipment to fight insurgency in the country without recourse to the National Assembly. That unilateral action would have meant officially, Nigeria is no longer a democracy. Although the presidency initially denounced the news insisting that the president could not have unilaterally approved the sum, for spending, without appropriation by the National Assembly, it later emerged that the executive had indeed spent

about $469 million to purchase 12 super Tucano aircrafts from the United States. The president merely wrote the National Assembly seeking an approval for the money already spent.

More annoying is the fact that the payment was made for aircrafts that will be delivered not in the nearest future to aid the war against terror but in 2020.

This is clearly an impeachable offence and many have been calling for the impeachment of the president. Whether that is possible or even desirable at this point in time is a debate for another day.

But like we have argued before, the lack of clarity and accountability in the release and utilisation of funds to prosecute the war on insurgency is beginning to expose the farce that is the war on terror. It appears, like many informed analysts and watchers of events in Nigeria have been insinuating, that there’s a huge industry sustaining the war on Boko Haram and ensuring the war never ends.

The National Assembly has its work well cut out for it. It must be able to discharge its responsibility of acting as an effective oversight to the government else Nigeria will officially become a dictatorship.

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Tuesday 01 May 2018

BUSINESS

COMPANIES & MARKETS

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GSK’s Q1 surge in profit signals end to FX crunch

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Co m pa n y n e w s a n a ly s i s a n d i n s i g h t

FBN Insurance’s solvency ratio weakens as earnings surge ... gross premiun written up 23.10% in FY’17 BALA AUGIE

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BN In su ra n c e Limited may not have enough buffers to settle all claims in extreme situations as its solvency ratio deteriorated whereas profit spiked amid a tough and unpredictable macroeconomic environment.

For the year ended December 2017, FBN Insurance’s solvency ratio fell to 51.91 percent from 69.80 percent the previous year.

A solvency ratio measures the extent to which assets cover commitments for future payments, the liabilities. The solvency ratio of an insurance company is the size its capital relative to all risk it has undertaken.

The ratio is calculated as the amount of Available Solvency Margin (ASM) in relation to the amount of Required Solvency Margin (RSM). The ASM is the value of the company’s assets over liabilities, and RSM is based on net premiums.

For instance in India, insurers are required to maintain a minimum ratio of 1.50 or 150 percent.

FBN Insurance’s ratio is lowest among 10 insurers

under our coverage.

The 2017 audited financial statement of 11 largest insurers show Prestige Assurance recorded a solvency ratio of (385 percent); Wapic Insurance, 283 percent ; Law Union and Rock Insurance, (225 percent); Lasaco Insurance, (204 percent); Mansard Insurance (132 percent), Consolidated Hall Mark Insurance, (116 percent).

Others are: Regency Insurance, 130 percent ; NEM Insurance, 93 percent; Continental Re, 90 percent, LEADWAY Assurance Company Limited, 76.15 percent and AIICO Insurance 53 percent.

In order to strengthen the risk management system of insurers in Africa’s most populous nation, National insurance Commission (NAICOM) has transited to the risk based solvency supervision model (RBS) model.

This means that any insurance firm intending to undertake oil and gas, aviation and marine business must have the capital to take on such risk. The objective of the RBS is to reduce the losses suffered by policyholders in the event that a firm is unable to meet claims fully.

However, a low solvency ratio doesn’t mean an in-

surance firm has underperformed as evidenced in FBN Insurance’s profit and premium income growth.

For the year ended December 2017, FBN Insurance’s net income spiked by 54.12 percent to N3.64 billion from N2.38 billion the previous year.

Net fair value gains of N1.08 billion and profit from

sale of investment securities of N1.49 billion helped underpin the Nigerian insurer’s bottom line (profit).

Gross premium written (GPW) surged by 91.15 percent to N23.09 billion in the period under review from N12.10 billion the previous year.

Gross premium income (GPI) and net premium in-

come (NPI) spiked by 83.17 percent and 77.34 percent to N22.74 billion and N20 billion respectively in the period under review.

Val Ojumah, managing director/CEO, FBNInsurance, credited the strong performance to a combination of factors including continued penetration of the retail insurance space,

strong cost optimisation culture, consistent and efficient service delivery across available touch point, exploitation of new service channels, disciplined risk management, and a well-motivated staff.

The Nigerian life insurer’s operating expenses were up 38.17 percent to N4.49 billion in the period under review. Underwriting expenses increased by 57.15 percent to N3.84 billion.

FBN Insurance has yielded returns higher than the risk free rate of return, the market rate of return and the inflation rate respectively as return on equity (ROE) increased to 34.72 percent in December 2017 from 29.22 percent the previous year.

Un d e r w r i t i ng p ro f i t dipped by 21.15 percent to N2.73 billion in the period under review from N4.01 billion the previous year.

The drop in underwriting performance was due to N9.29 billion changes in long term insurance contract incurred in the period under review.

FBN Insurance’s total assets spiked by 59.25 percent to N50.34 billion in December 2017, thanks to fair value through profit and loss (categorised under financial assets) of N38.67 billion.

UAC profit drops 83% despite earnings hitting 4-year high MICHEAL ANI

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nited Africa Company of Nigeria (UAC), a leading diversified conglomerate operating in the food and beverage space has recorded an 83 percent drop in profit, despite putting some N89.2 billion as revenue in full year 2017.

Data compiled by BusinessDAY and sourced from company’s financials on the Nigerian stock exchange, shows that its 2017 earnings

was the highest in four years (since 2014), when the NSE started compiling data.

W h i l e UA C r e v e n u e surged 8 percent from N82.6 billion that it recorded in 2016 to N89.18 billion in 2017, this could not be said about its profit for the year, rather its profit shrunk 83 percent from N5.67 billion in 2016 to N962.8 million in 2016.

A market analyst familiar with the stock discloses that the major challenge facing the company is UAC Property Development Company (UPDC).

“The main problem with UAC is UAC properties, the stockbroker said. Stressing that UAC property as a subsidiary is not doing well at all”.

“Also, most of what companies in the consumer goods space recorded as turnover were as a result of increase in the prices of goods and nothing else, as many of them last year had to review their prices north,” he added.

In a bid to position the group solely as a Fast and Moving Consumer Goods (FMCG) company, the management disclosed last year that they are working on the

deconsolidation of UAC Property development company (UPDC) from the group.

The management also revealed that UPDC was unable to recover construction costs for some of its completed properties Analyst at Lagos-based cardinal stone, an equity research institute said they view the move as a positive development as it eliminates the risk of earnings volatility from UPDC’s operations on the group; as earnings have been stifled, largely due to the consolidation of operating losses from its property

segment.

“Whilst UPDC’s revenue appears to have rebounded, we believe the outlook for the real estate sector (particularly the luxury end) remains soft. Also with seemingly bright prospects for the other segments (especially food and beverage), we expect the group to remain profitable into the future with the exclusion of UPDC,” Analyst at Cardinal Stone said.

UAC is one of Nigeria’s biggest players in the consumer goods space, with a market cap of 48.69 billion.

The company has remained a foremost and active participant in Nigeria’s economic landscape since 1879, following the merger of four trading companies namely, Alexander Miller Brother & Company, Central African Trading Company Limited, West African Company Limited and James Pinnock.

In 2015, its revenue declined 13.9 percent to N73.77 billion from N85.65 billion.

This figure increased to N82.57 billion and N89.17 billion in 2016 and 2017 respectively.

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COMPANIES & MARKETS

GSK’s Q1 surge in profit signals end to FX crunch

Pension: PTAD adds 7,969 civil service pensioners on payroll

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MICHEAL ANI

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laxoSmithKline plc’s first quarter net income surged, a stellar performance that means the leading player in the Fast Moving Consumer Goods (FMCG) industry and health care space has overcome a foreign currency crunch.

High patronage for the firm’s products also helped spur sales as it continues to intensify on its focus and market penetration strategies.

The firms Profit after Tax (PAT) surged by 3026 percent, despite revenue increasing slightly by 9.5 percent.

PAT surged from N8.26 million in the first quarter of 2017, to N258.3 million in Q1 2018, surpassing analyst and market expectations.

“The firm’s outstanding performance is riding on the back of improved foreign exchange liquidity that has enveloped the industry as a whole,” Ayo Akinwumi Head of Research FSDH Merchant bank said.

“Also, there have been a general rebound in economic activities compared to what we at the thick of the recession which also spread into 2017”.

“Consumers pocket are also gradually gaining momentum which will show in

their spending pattern, Companies like GSK will definitely benefit in terms of increase in sales for its products,” Akinwumi added on phone.

Glaxosmith had a disappointing performance in full year 2017 on the back of a lengthy recession that hammered the Nigerian economy in 2016 and spanned into 2017, where the sector was fraught with shortage of naira liquidity as an increase in government borrowing at that time spurred banks to invest in the safety of sovereign debt rather than lending to businesses or consumers.

While revenue increased from N14.4 billion in 2016 to N16.0 billion in 2017, gross profit fell sharply from N8.9 billion in 2016 to N4.4 billion in 2017.

The company’s cost of sales jumped massively from N5.4 billion in 2016 to N11.6 billion in 2017. Overhead costs also dropped sharply from N930million in 2016 to N154 million in 2017, materials consumed jumped from N4.4 billion in 2016 to N11.3 billion in 2017.

This led to the company’s operating segments of consumer healthcare and pharmaceuticals making losses of N701 million and N15.5 million respectively in 2017.

Profit before tax increased from N185 million in 2016 to N1.1 billion in 2017. Profit after tax, however, fell sharply from N2.3 billion in 2016 to N486 million in 2017.

Despite the sharp fall in profit, the company resolved

to pay a special dividend of N7.10 from its retained earnings and N0.40 dividend from the retained portion of the pioneer earning balance.

The total cash value of the special dividend is a whopping N8.4 billion and will be paid from the portion of its retained earnings that was earned from the sale of its drinks business to Suntory in 2016.

The firm’s share price headed north after it announced the payment of special dividend to shareholders.

GlaxoSmithKline shares has risen 11.06 per cent this year outperforming the NSE All share index at 7.85 percent.

It was priced at N24:00 as at the close of trading in Lagos on Friday, with its market capitalisation standing at N28.701 billion.

Property market in high expectation as Northcourt launches affordable CHUKA UROKO

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he property market in Nigeria is in high expectation as Northcourt Real Estate Limited, a new generation real estate firm, perfects plans to enter the market tomorrow with its AFFORDABLE—a new book that promises fresh insight on, and approach to affordable housing delivery in Nigeria.

The book, authored by Tayo Odunsi, the company’s CEO, will be launched at Points by Sheraton, Victoria Island, Lagos.

The book has been described as a ‘new normal’ in the housing lexicon in Nigeria, especially in its commitment to delineating the roles of five essential participants in delivering affordable housing, including the government, private sector, professionals, community, and the individual.

“We devoted each chapter of the book to describe what a particular participant needs to do or view differently, so that sustainable affordable housing can be achieved”, explained Odundsi who spoke at a press briefing in Lagos recently.

The book which draws on experiences from European, Latin American and African contexts is also designed to help all the stakeholder to think critically about housing issues and to think differently about its delivery which has remained a huge challenge in the country.

While government plays a major role as the initiator, regulator and enabler of affordable housing , Odunsi pointed out that the community and the individual are very critical stakeholders. “An enlightened community has the power to say housing should be affordable; they can influence the market and housing value”, he

explained.

“The individual is the highest decision making participant in affordable housing delivery.

He should be the one to decide and determine what is affordable because he can decide not to buy or to buy at a given price”, he added.

Odunsi noted that each time people talk about the housing deficit in the country, focus is on the housing supplier which, in his opinion, is a wrong. The demand side is a major factor, he said, because as a people, Nigerians have wrong perception and attitude to homeownership.

Everybody wants to own homes at the same time and nobody wants to rent which creates a demand pressure too difficult for suppliers to cope with. “So, our attitude to homeownership also contributes to the deficit in the housing market”, he said.

Expectation is that Affordable will right these wrongs as each participant should know what role it has to play, leading to a coordinated approach to supply and convenient access to the product.

While the professionals have the responsibility of guiding people on housing career to correct the wrong perception and attitude to home ownership, the government can make land cheaper without reducing the price by allowing the development of multiple units on a given plot of land in a given area.

“We believe that houses are not affordable in Nigeria because the various stakeholders have not done what is expected of them; when each stakeholder realizes that his role in the housing delivery chain is as important as another, houses will begin to be affordable”, Odunsi posited.

he Pension Transitional Arrangement Directorate (PTAD) has added 7,969 Civil Service Pensioners to its payroll to receive regular monthly pension payments.

Accoring to a statement on Saturday, signed by the Executive Secretary of PTAD, Sharon Ikeazor, the pensioners were verified in the South West and North Central in the Fourth Quarter 2017 and had been paid to March 2018.

The executive secretary said the payment improved the economic livelihood of pensioners who were deprived their rights for a long period.

“This depicted the isupportive role of PTAD in making sure the labors of our heroes is not in vain.” she said.

B efore the addition, Ikeazor said over 19,500 verified Civil Service pensioners from the North West, South East, North East and South South had been reinstated and paid their arrears.

“Also ongoing is the computation of benefits for over 5,000 verified Civil Service Pensioners as the verified Civil Service Pensioners would be

listed on payroll too ” she said.

The executive secretary further said that in January 2018, the Civil Service Pension Department (CSPD) of the directorate paid N2.215 billion to 111,525 pensioners, 219 Retired Permanent Secretaries and Heads of Service.

For the month of February, she said N2.216 billion was paid and in March, N2.216 billion was paid to retired Permanent Secretaries and Heads of Service.

For the Parastatals Pension Department which started verification in Fourth Quarter of 2017, she said, 98,259 pensioners were paid monthly to the tune of N4.097 billion in January 2018.

Ikeazor said for the month of February, N4.134 billion was paid to the pensioners while N4.117bn was paid in March.

For pensioners verified in Fourth Quarter 2017 and First Quarter 2018 under the Parastatal Pension Department, she said, Nigerian-Re,NITEL/ Mtel and two others the accurate computation of their benefits ares currently being made.

US stocks unmoved by soaring corporate earnings Muted response to strongest profit growth in 7 Nicole Bullock , FT

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S companies are reporting their best profit gains in more than seven years and a record number are beating Wall Street forecasts — so why are stocks not responding?

The muted response to first-quarter earnings suggests that, against a backdrop of rising borrowing costs and other factors that could drag on profits, investors are beginning to worry that a turn in the business cycle may be in sight.

“Investors are looking at the gains in earnings and saying, ‘Great, we knew that, but what will you do going forward?’” said William Norris, chief investment officer of CIBC Bank USA. With just over half the S&P 500 having reported, the largest US companies are on course to show earnings per share growth of 23.2 per cent from a year ago, according to FactSet’s blend of actual and forecast results. That would be the highest rate of growth since the third quarter of 2010.

Seventy-nine per cent of companies reporting so far have beaten analysts’ forecasts. Most companies can

massage expectations to arrange a beat, but this year’s rate is ahead of a five-year average of 70 per cent. If it holds up, it will be the highest since FactSet began tracking beat/meet/ miss data in 2008.

The S&P 500 is up just 0.5 per cent since earnings season got into full swing in midApril, however, and shares of companies that beat forecasts are not rising as much as they typically do.

Optimism over profits had been high heading into the reporting season, said Matt Forester, chief investment officer of BNY Mellon’s Lockwood Advisors, who calculated the Trump administration’s December cut in the corporate tax rate accounted for about 7 percentage points of the rise in profits.

“We have had a really gigantic surge in expectations over the last quarter or two, particularly when the news of the tax cut came into play,” he said.

Some earnings reports have included hints of rising costs, and Caterpillar, the construction equipment maker, said last week that its firstquarter earnings would be the “high watermark for the year”, spooking the market.

Culled from - FT

Tuesday 01 May 2018

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BUSINESS DAY

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COMPANIES & MARKETS GTBank food and drink fair to scale-up SMEs market share SEYI JOHN SALAU

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agos is noted for its street food culture being a mobile state where the over 20 million people that reside in the city are on the move at any given time. There is always one open-air makeshift sheds or hawkers moving from place to place with variants of food items for gabbers needing a quick bite.

A large proportion of this food vendors lack exposure and capacity, even though the street food culture provides a cheaper meal for many of a Lagos residence who cannot afford a proper sit-down meal offered by the eateries and restaurants.

However, the annual GTBank Food and Drink Fair provide a platform for small food vendors to improve their culinary to internationally accepted standard. The GTB food

and drink fair is designed to celebrate Nigeria’s vibrant food culture whilst promoting enterprise in the small business sector of the food industry.

Oyinade Adegite, Head, Communications and External Affairs, Guaranty Trust Bank, while speaking at a press conference for the fair said, culinary experience created by the GTBank Food and Drink Fair is a testimonial of the richness in Nigeria’s food culture and the vibrancy of the small businesses involved in the industry.

According to her, the goodwill that comes with initiatives like the food and drink fair has been the sustaining faction for the fair in the last three years.

She however opined that even though vendors at the fair react to demand and supply, the bank has put measures in place to help modulate price at the fair.

According to Adegite, the

carefully curated selection of small food businesses is expected to offer the best culinary experiences for the Lagos food fair. She said the 3-day event is free for all to attend and provides small businesses with a free and vibrant platform to connect with a wider segment of their target markets as well as experts in their business fields.

This year, the GTBank Food and Drink Fair will feature series of Masterclasses in the art and business of food and drink whilst treating attendees to a host of live cooking demonstrations of their favourite delicacies by renowned international and indigenous chefs. There will be a space for Street Food, which will offer the best of local delicacies, as well as a Farmer’s Market where SMEs involved in agriculture will sell fresh and organic farm products.

Business Event

L-R: Phiwi Khonjelwayo, market development manager, Africa, Castle Lite; Becky Opdyke, brand director, Castle Lite Africa; Franscoe Bouwer, brand manager, Castle Lite; Jumoke Okikiolu, marketing manager, consumer connections, AB InBev, West Africa; Arne Rust, marketing director, AB InBev West Africa and Ramona Kayembe, marketing manager, Castle Lite Africa at the Castle Lite Unlocks Concert which held at Eko Hotel and Suites, VI, Lagos…

Pic by Pius Okeosisi

JAIZ TAKAFUL Insurance holds one day seminar for Imams in Abuja

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n its quest to deepen insurance penetration in Nigeria, Jaiz Takaful Insurance Plc has held a One-Day Seminar on Takaful Insurance for over 200 Imams of Jumaat mosques and Islamic scholars in the Federal Capital Territory (FCT) Abuja.

The event which was held at the Abuja National Mosque on 25th April, 2018, was chaired by a business tycoon, Alhaji (Dr) Umaru Abdul Mutallab who is also the Chairman, Board of Directors of Jaiz Takaful Insurance plc.

In his welcome remarks, the Chairman said, “This Seminar is organized in recognition of the fundamental role of Imams and scholars in shaping the perception of the Muslim populace towards important issues.”

He added that: “Jaiz Takaful Insurance plc is privileged to

identify with Islamic Scholars to hold this Seminar as part of our corporate efforts toward deepening insurance penetration in Nigeria and creating awareness on Takaful as another reliable vehicle for shared economic prosperity.”

In his address, the Commissioner for Insurance, Alhaji Mohammad Kari, noted that Jaiz Takaful Insurance plc has been in the forefront of awareness creation on Takaful insurance and deepening insurance culture among Nigerians.

Alhaji Kari, who was represented by the Head of Marketing Development of the Commission, Mr. Ahmad Kollere, advised Jaiz Takaful Insurance plc to seek partnership with sister Takaful insurance companies to ease difficulties such as finance associated with creation of awareness for corporate and business entities inNigeria.

Speaking, the Managing Director/CEO of Jaiz Takaful Insurance Plc, Momodou Musa Joof, noted that “Nigeria has one of the lowest insurance penetration rates in the world and the abysmal penetration rates are associated partly with the resistance of some members of the society especially Muslims who cannot embrace conventional insurance since the practice is averse to their faith via gambling, uncertainty and usury.”

According to him, “for everything that Allah prohibits, He provides lawful version for it. Thus, Jaiz Takaful Insurance plc has come—since 2016 it was licensed by the National Insurance Commission (NAICOM)—to address the public outcry and to serve as an alternative to conventional insurance.”

L-R: Abiodun Aina, Coordinating Director Domestic Taxes Group / Special Advisor To The Executive Chairman, Federal Inland Revenue Service; Gladys Olajumoke Simplice, Vice President, Chartered Institute Of Taxation Of Nigeria, and Cyril Ede, President / Chairman, Chartered Institute Of Taxation Of Nigeria, at The 38th Induction Ceremony Of The Chartered Institute Of Taxation Of Nigeria, In Lagos.

L-R Oliver Andrews, chief investment officer, Sanjeev Gupta, executive director, financial services, Adesegun Akin-Olugbade, chief operating officer & general counsel, Emeka Emuwa, chairman of general meeting, Andrew Alli, president & CEO, Ayotunde Anjorin, chief financial officer, David Johnson, chief risk officer.

Corporate communication executive L-R: Umaru Abdul Mutallab, chairman board of directors of Jaiz Takaful Insurance; Kabir Adam, MD/CEO of Jaiz Takaful; Momodou Musa Joof, representative of the Murshid of the Abuja National Mosque, at a One-Day Seminar on Takaful Insurance organised for FCT Imams and Scholars

by Jaiz Takaful Insurance Plc in Abuja.

L-R: Ladi Lawanson, honourable commissioner of transportation, Lagos State; Adewale Adetayo, general manager, SIFAX Haulage; Kayode Alatishe, operations manager, SIFAX Haulage, and Oluchi Udojindu, assistant manager human resources and administration, SIFAX Haulage during the presentation of Haulage Company of the Year Award to SIFAX Haulage and Logistics Company at the 6th edition of the Nigerian Transport Awards held at Sheraton Hotel, Ikeja, Lagos.

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BUSINESS DAY

Tuesday 01 May 2018

Propaganda, fake news big concern for industry operators Stories by Daniel Obi Media Business Editor

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he sudden spread of high level propaganda and fake news designed to mislead people have become major concerns in the industry as media specialists agreed that both are interwoven with single objective to deceive people into believing what is fabricated for mischievous purpose.

Top media experts who assessed fake news and its implications recently however consented that the phenomenon is not a new problem but its recent wild spread across systems enhanced mostly by social media is becoming a threat to life, relationships and democracy.

The media experts including, Reuben Abati, former special assistant media to former President Goodluck Jonathan; Lolu Akinwunmi, CEO of Prima Garnet Africa; Bolaji Okusaga, CEO Precise; Femi Awoyemi of Proshare; Bolanle Olatunde, a former Vice Chairman of NIPR, Lagos; Gabriel Akinadewo, a former editor of The New Telegraph and Dotun Oladipo, President, Guild of Corporate Online Publishers shared their perspectives on the subject last weekend in Lagos at the unveiling of a book ‘Brands in the News’ authored by Raheem Akingbolu, a reporter with ThisDay. They regretted that the media especially social media platforms that supposed to be tool to enhance societal development has turned

into weapon for society destruction as fabricated news about individuals and groups are wilfully disseminated. They cited copious examples that are damaging to peoples reputation.

Admitting that fake news is the hottest subject today, Abati associated the wild occurrence to emergence and reliance on social media for information. It is also due to globalisation which has deepened competition and thrown up new values. He noted that with technology, everybody has unfortunately become a journalist which has triggered battle for the mind of an news consumer.

Fake news described as misinformation and sensationalism, he said creates confusion and raises question about media that supposed to be responsible. Traditionally, journalists should provide credible news, entertain and educate but where media reaches a level where it is a tool for creating confusion and damaging people, then there is trouble, he said.

The situation is worse in the social media where sites are even created to damage and favour people against others and propaganda taken to higher level even during elections to influence votes and this is dangerous to democracy.

Stating emphatically that the media globally has failed in its responsibility both at individuals and institutions level, Abati cited example that sub desk which supposed to be engine of media is now the weakest link in the media chain as

ATSL redefines hospitality with Funplex Centre

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llied Thrust and Systems Limited (ATSL), a holding company that has been in the forefront of hospitality business in Nigeria, has officially launched its multi-million naira event center, Funplex.

Located in the heart of Magodo, Lagos, the formal opening of the delux centre, which started with a special red carpet reception played host to crème-de-la-crème of the society, top executives in the corporate world, hospitality industry and celebrities.

Funplex Event center is part of a mix called the Funplex Resort. The resort houses an amusement park (Funplex Parks and Rides), a hotel for lodging (The Grant Suites), a quick service restaurant and bakery for all sorts of catering needs (Ticklers restaurant and Bakery), and an outdoor bar with a fully air conditioned indoor lounge (Concourse Bar) that boasts of the best grill in town.

While welcoming guests, the Managing Director of Allied Thrust and Systems Limited, Emeka Nwasike, said the commissioning is a dream

come true. According to him, the dream was ignited when Allied Thrust and Systems Nigeria Limited won a BOT contract with Centre for Management Development (CMD) with a proposal to build a conference hall for the centre.

However, the company has surpassed that dream by erecting a magnificent edifice which not only houses halls for events but also facilities like bush bar, gym, cinema, among others.

“This feat is borne out of our love for hospitality and our desire to be a strong contender and pacesetter in the industry. Already, you can see that Funplex resort is a one-stop-shop for fun and entertainment. Our goal is to provide Nigerians with an event centre that can cater for all their corporate and social needs,” he said.

Speaking at the event, a former Director General of CMD, Joseph Yakubu Maiyaki, who was in office when the institute and ATSL signed the agreement for the company to manage CMD Guest House facility, described the project as a good example of a public-private partnership.

L-R: Yakubu Maiyaki, former director General of CMD; Emeka Nwasike, managing director of Allied Thrust and Systems Limited and HRM, Oba Jamiu Ajibola Adetola Lawal, Oba of Shangasha, Magodo during the commissioning of Funplex Event Centre, Magodo, Lagos recently.

there are plethora of headline and grammatical errors.

To checkmate the dangerous trend, Abati suggested some control especially for the social media.

Bolanle who said that poverty of mind is the cause of dishing out fake news called for regulation bill to check the activities of social media while Bolaji Okusaga suggested for self-regulation instead of censorship of the media.

Speaking earlier, the chairman of the occasion, Wole Olanipekun, a renowned legal practitioner who laid out the territory for the discuss from professional and ethical dimensions urged media practitioners to develop conscience, responsibility and values in the assignment of information dissemination.

Raheem’s book is a compilation of his articles on brands over a period.

StarTimes takes CSR to children’s villages

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tarTimes Nigeria says it will increase its support for orphanages and other charity organizations across the country, in its bid to help children access the muchneeded care they need while growing up without parental care.

The company made this known through its Public Relations & Communications Manager, Kunmi Balogun, during a visit to SOS Children’s Villages in Lagos, to donate food items to the children.

According to him, “Every quarter, we embark on a charity drive to support the good work being done by both local and international organizations in keeping kids safe and away from the streets. The decision to visit SOS Children’s Villages was not tough to reach, given its reputation and record in providing shelter and care for children.”

On his path, the Family Strengthening Programme Coordinator at SOS Children’s Villages Nigeria, Gabriel Adajie commended StarTimes for the gesture while receiving the donation. He said that SOS Children’s Villages currently depends on the government, corporate and individual support to carry out its task.

Adajie noted that the donations and support from individuals, organizations and Government helps the organization meet its obligations in providing good family-like care for the children, many of whom he said have no traces to their biological parents.

Panasonic offers consumers new shower cooling, aerowings Air Conditioners

…Celebrates 100 years in business

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anasonic Corporation, the worldwide foremost player in electronics technologies and solutions for customers has launched a new range of Shower Cooling Aerowings Air Conditioner series into the Nigerian market.

The new air conditioner series offers a whole new air conditioning experience to the customers including the new clean air – the Panasonic

advanced air purification system using the Nanoe-G technology, healthy air flow, energy saving among other unique selling propositions.

Speaking at the unveiling of the product in Lagos recently, Hiroyuki Shibutani, Head, Africa Division, Panasonic Marketing Middle East and Africa, disclosed that the new shower cooling Aerowings series air conditioners is a revolutionary

product using latest technology to offer unparalleled comfort to the customers.

Shibutani noted that the new Aerowings series offers fast cooling and delivering precision cooling through powerful controlled airflow, intelligent airflow control which automatically shifts air direction skywards once the set temperature is reached, as well as the shower cooling with Aerowings which allows it to shoot cool air powerfully at long range by squeezing the cold air inside the main unit with two flaps at the top and bottom.

He revealed that the shower cooling air conditioner is equipped with Intelligent Sensors which enables it to detect potential waste of energy using the Human Activity Sensor and Sunlight Sensor. It is able to monitor human location, movements, absence and sunlight intensity. It then automatically adjusts power to save energy efficiently.

Tuesday 01 May 2018

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BUSINESS DAY

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Marketing&Pr ‘Access to quality broadband key to Nigeria’s transition to knowledge-based economy’ Swift Networks recently unveiled a service called Red Cheetah which allows consumers access to free Wi-Fi at designated hotspots across Lagos. It is expected that many internet consumers will key into this platform which will equally create traction for advertisers who are looking for reach and precision results. In this interview, the CEO of the Swift Networks, Charles Anudu, further explains the product and speaks more on internet usage in Nigeria. Excerpts Swift Networks re cently launched Red Cheetah, a service which allows consumers access to free Wi-Fi at designated hotspots across Lagos. Can you tell us more about this service? ed Cheetah is arguably the most ambitious free Wi-Fi service to ever emerge out of the shores of Nigeria. That is because Red Cheetah offers so much more than what the existing, regular free Wi-Fi service providers offer, especially in terms of capacity, speed and user experience.

Our objective is to make fast, reliable and secure broadband access available to Nigerians at no cost while creating measurable value for brands that support the platform. For us, this service not only complements the revolutionary democratization of information in our fast-paced, digital economy, it also empowers individuals to connect, explore the world and play participatory roles in global democracies and economies. We understand that internet access is no longer the exclusive preserve of the rich. Even the United Nations now sees denial of access to the internet as a breach of human rights.

We are confident that it is only when a society is thoroughly empowered with access to the right information and opportunities that true economic development and social inclusion can happen.

We want to drive that revolution by putting our customers first. Users are required to download the Red Cheetah app on Google Play Store and go through a one-time registration process to enjoy this free access in our hotspot channel locations across Lagos. The app version gives superior customer experience.

How will this initiative help to achieve the 30% broadband penetration ambition of the federal government under the National Broadband Plan?

Red Cheetah is a timely intervention in a country where broadband penetration still hovers at around 21%. We felt we needed to turn up the dial since Nigeria’s transition to a knowledge-based economy rests firmly on the quality of broadband access available to the citizens. We have been able to evolve a technology and business model that help drive internet penetration to the various segments of the Nigerian society.

We started from Lagos. So far, our hotspot locations are expanding by the day and we encourage more businesses to take advantage of

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this offering to delight their customers with free broadband Wi-Fi. We believe that by the time we reach our 10,000 locations target, we would have succeeded in plugging in a substantial percentage of Lagosians to the Red Cheetah service. That is massive vision in terms of user base. We also have aggressive plans to extend the offering to other major cities in the country and boost the democratization of information and opportunities to Nigerians. We are confident that by offering free WiFi service to Nigerians, we would have succeeded in helping to scale up Nigeria’s broadband growth as encapsulated in Nigeria’s 5-year broadband plan.

What motivated your company to introduce this product?

Our purpose as a company is to connect Nigerians to the digital society and economy and to ensure that nobody is left behind because those excluded will suffer severe disadvantages. So it is part of our social responsibility to ensure that as many people as possible are availed of the benefits of the fourth industrial revolution. The instinct of most people nowadays is to look for a free wifi service once they get into any public or enclosed space. This is true for those who can and those who cannot pay, from our studies. Red Cheetah exists to meet this need.

As a free Internet platform, consumers will likely be skeptical about its security, how is the security and speed guaranteed?

We have addressed from the outset any possible skepticism, especially as regards users’ privacy and security while using the service. That is why Red Cheetah was painstakingly developed in such a way that the app establishes a unique and secure Virtual Private Network (VPN) connection to the internet for each distinct device on the platform. We value the security of our users and that is one of the reasons we spent over two years building and fine-tuning what we believe will be most effective and secure internet service for Nigerians.

How do you think this product will deepen internet usage which will lead to more economic activities ?

Even though internet users rose marginally to 98.3million in December 2017, the bulk of what these Nigerians have is access to narrowband internet that limits the digital experience. Where broadband exists, it is unaffordable. We want to change that nar-

Charles Anudu

rative for good. So, Red Cheetah is a strategic intervention to shore up the numbers, empower many more Nigerians with access to opportunities and contribute to the nation’s economic growth.

Remember that every time a developing nation achieves a 10% rise in broadband penetration, it triggers a corresponding 1.3% increase in the nation’s GDP. We recognize that Internet access is the heart and soul of the fourth industrial revolution and to play

There are many reasons for the high cost of providing internet service in Nigeria among which are shortage of electric power, security, exchange and interest rate costs

effectively in that revolution, we must begin to see internet no longer as a luxury, but a growth enabler that should be made available to every citizen.

Would you say Red Cheetah is a competitive or complementary product in the internet services eco-system?

Red Cheetah does not compete with our regular broadband services; it is an offering that is distinct in its character and proposition. At a fundamental level, it serves as a major differentiation that sets SWIFT Networks apart from the other operators in the industry. Beyond this, it helps to accentuate our bold ambition to keep Nigeria connected to the larger world, discovering opportunities, exploring passions and ultimately empowering the individual and the larger community with the right knowledge to make informed decisions and transform our society.

What could be responsible for high cost of internet service in Nigeria and what kind of government policies are expected to change the situation?

Contrarily, the cost of internet service in Nigeria is one of the lowest anywhere in the world, notwithstanding the cost structure here. In fact, a lot of the prices in the market are below the cost of providing them. For the native broadband service providers like

SWIFT, the cost of generating 1 Gigabyte of data is about N650 but our selling price is far below this. The same is true for the other service providers. There are many reasons for the high cost of providing internet service in Nigeria among which are shortage of electric power, security, exchange and interest rate costs. Secondly, since the equipment are not made in Nigeria, they are imported at unfavorable exchange rates. So each time there is a devaluation, the operators also take a major hit. Additionally, the operators borrow funds to build and run their networks at unimaginable interest rates.

There is no way you can run such a capital intensive business at the current interest rates that challenge most of the operators’ balance sheets. Then the problem of vandalism is there to contend with. Every fibre you lay is likely to be cut by contractors undertaking public works or malicious and mischievous people who wantonly steal or destroy telecoms infrastructure. The problem of multiple taxes is also a nightmare that most operators live with. To lower internet cost for Nigerians, we need good synergy between the government and the private sector to build and protect the critical infrastructure required for telecoms services.

You are leveraging advertisement for the offer of free internet, what do advertisers stand to gain?

The future is digital and by 2025 unique subscribers will hit a record 5.9 billion which will account for 71% of the entire global population. To bring that home, Sub-Saharan Africa will record the highest mobile penetration levels by 2025 and Nigeria is a focal point of that digital transformation. So, what all of these mean is that digital advertising - where Red Cheetah essentially sets out to play - is going to drive incredible ROI for brands, as we have seen over the past few years. So, Red Cheetah offers targeted advertising solutions to brands who are looking to reach their desired audiences in a way that is more engaging, measurable, cost-effective and with zero media waste.

A consumer is entitled to 1 Gigabyte of data daily, can this be rolled over?

The user gets 1 Gigabyte at 12 midnight every day. Any left-over data cannot be rolled over at this time but the full 1 Gigabyte is renewed every day.

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Energy Report Oil & Gas

Power

Renewables

Environment

Contractual cycle: NCDMB, NNPC to use one-stop approval desk for Oil Industry Projects OLUSOLA BELLO

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he Nigerian Content D evelopment and Monitoring Board (NCDMB) and the Nigerian National Petroleum Corporation (NNPC) will before the end of 2018 start using a one-stop shop arrangementfor reviewing and approving oil industry projects and contracts in a bid to shorten the industry contracting cycle.

The Minister of State for Petroleum Resources, Emmanuel Ibe Kachikwu announced recently in Yenagoa, Bayelsa State at a meeting with top management of the NCDMB at its headquarters.

The collaborative approval process between NCDMB and NNPC, he explained, will ensure that the target six months contract approval cycle time is achieved, while the cost of

crude oil production will also reduce. According to him, “if you look at the cost components we are trying to drive down; from $28 per barrel, it is now $23 and we are targeting $15. We can’t achieve that if our bureaucracy is slow.”

The Minister commended NCDMB for adopting the use of Service Level Agreements (SLAs) with its key stakeholders, promising to ensure that other agencies within the Ministry of Petroleum Resources adopt the initiative which will help to drive efficiency within organisations.

The Board signed the first SLA with the Nigerian Liquefied Natural Gas Company (NLNG) in May 2017 and is preparing to sign similar agreement with the Oil Producers Trade Section (OPTS) - the umbrella body of major international and indigenous operating oil companies. The SLA with NLNG provides spe-

Emmanuel Ibe Kachikwu

cific timelines under which the Board must conclude requested reviews and approvals. Under the SLA, NLNG can proceed with its projects if the Board fails to respond at the expiration of set timelines.

Kachikwu said, “It takes

Why OML30 is embroiled in community crisis

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t the heart of crisis plaguing Oil Mining Lease (OML) 30 is the recent change in the management and operations of the asset which has been perceived as not too good a development by some of the host communities.

The host communities which are alleged to have been enjoying good relationship with the former management and its operation are apprehensive of what would be the style of the new management towards them and therefore insisting that the new management retain some of the indigenous companies for the purpose of continuity of the already established relationship instead of replacing them with foreign companies.

The communities don’t think the change would have positive impact, hence they unleashed their displeasure with a long list of demands, a leader of one of one the communities said.

The communities according to him have essentially lost trust and confidence because of some of the things

they observed being done by the new operators of the asset in the last few weeks.

To restore confidence to the communities, they advocated that one of the indigenous companies, Salvic Petroleum Resources which is a third party operator on OML 30 on behalf of Heritage Energy Operational Services Limited and which they claimed has been able to foster good relationship between them and the operators should be allowed to continue it works.

But Salvic Petroleum Resources, stating it own side of the issue claimed that a lot is going today in OML30, Nigeria’s second largest onshore oil and gas assets covering 1,095 square kilometer and comprising 11 fields with an estimated reserve of crude oil with also traversing Trans Forcados pipeline traversing the fields.

It said the asset which is a major source of revenue to 110 host communities has been experiencing unrest in the last two weeks, including shut –in of some flow stations and frequent disruption of others. This is

with other relevant institutions including Nigerian universities, some of whom have developed prototypes of modular refineries.

On the Board’s headquarters building project which had got to the 17th floor, the Minister described it as a profound statement to the people of Bayelsa State that “the Federal Government did not just come to take oil and walk away but that we took oil and left something behind.” He added that the office complex would provide a good working environment and a wonderful incentive for international and local operating companies to set up offices within the building.

He stressed that such world class buildings and other infrastructure like airports, roads, security and recreation facilities were needed so that oil companies will find it commercially sensible to move their headquarters to oil producing states.

World could miss energy-related sustainable development goals - UN

a far cry from the relative peace, general goodwill and uninterrupted operations enjoyed in the last one year “It is note worthy that for 15 months prior to march March 2017, OML30 recorded zero production and in same period, the trans Forcados Pipeline (TFP), major trunk line in the TFP system with export capacity of 400,000 barrels per day and second largest network in the Niger Delta has been down due to incessant vandalism, bunkering and bombing by various militant groups”, it stated.

The company said it has performed well in OML 30 as it took the production from level zero to 75,000 barrels per day without drilling new well, rehabilitating the TFP in records time and sustaining an uptime of over 80per cent within 12 months.

This corroborated the claims of some of the community members that the indigenous company has been able to foster good relationship with them and recorded no major security or environmental issue during the period.

Olusola Bello, Team lead, Analysts: Kelechi Ewuzie, Isaac Anyaogu, Graphics: Joel Samson.

a lot of courage for you to put a guaranty and tell people that if I don’t respond within a period, take it as approved. I will like to see this type of concept among all our parastatals. We can borrow a leaf from this.”

He reiterated that the

Board had enjoyed high quality leadership from inception, which helped the agency record sterling achievements over the years. “I did say when I came here the first time that NCDMB is one of the few federal parastatals that has benefited consistently at the top management level in terms of leadership. The consistency is commendable over the last two or three persons who have led here. Each one complemented what the other person has done.”

Speaking further, Kachikwu praised the collaboration between NCDMB and the Department of Petroleum Resources (DPR), particularly on the development of modular refineries, which would help to address the perennial shortage of petroleum resources, create jobs and minimize the scourge of illegal refining. He tasked the Board to collaborate

ISAAC ANYAOGU

T

he world is not on track to achieving energy-related Sustainable Development Goals, according to a new series of Policy Briefs launched at the United Nations.

This policy briefs supported by data and analysis from the International Energy Agency, provides the latest assessment of where the world stands on goals for universal energy access and increasing renewables and energy efficiency.

The Policy Briefs also chart the crucial inter linkages between energy and other development objectives, and outline what needs to be done to scale up and accelerate policies, innovation, finance and capacitybuilding between now and 2030.

“Energy is not only a global goal in its own right but is at the heart of the sustainable development agenda to 2030, and is essential for reducing poverty, improving health and ensuring environmental

sustainability,” says the IEA. According to the Parisbased think tank, the latest data shows that global progress falls short on all four energy-related targets established under SDG 7, which aims to ensure access to affordable, reliable, sustainable and modern energy for all by 2030.

There are still around one billion people without access to electricity. There has been significant progress in many countries, especially in Asia, but progress has been uneven: there are now more people without electricity access in sub-Saharan Africa than there were in 2000, and under current trends, there would still be more than 670 million without access in 2030.

While Nigeria is yet to move the needle on energy access for its over 70 million people without access to grid connected electricity, it is shooting itself in the foot by imposing a tariff on solar panels imported into the country even when it has no clear cut policy to encourage domestic production or even the resources to produce

locally.

While the national grid has seen significant investments over the last three years, it remains inadequate and the power sector is bogged by billions in debts, a weak electricity market and infrastructural challenges.

The IEA says the picture is even dimmer when it comes to access to clean and modern cooking facilities (SDG 7.1.2). About 2.8 billion people rely on polluting fuels to cook their daily meals, a number which has not changed since 2000. Without greater ambition, 2.3 billion will still remain without clean cooking access in 2030, with grave health, environmental and social consequences.

The share of modern renewables in global final energy consumption (SDG 7.2) has been growing steadily in the past decades, reaching nearly 10% in 2015. However, to achieve a truly sustainable energy system, this share needs to more than double to 21% by 2030. But while wind and solar deployment has accelerated, this goal is still out of reach under current policies.

Email: energyreport@businessdayonline.com, Tel: +234-8023020011; +234-7037817378; +234-8036534708

Tuesday 01 May 2018

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BUSINESS DAY

Energy Report

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NNPC push for State collaboration to drive renewable energy development KELECHI EWUZIE

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i g e r i a n Na tional Petroleum Corporation (NNPC) says its ready to partner with willing state government as part of its strategic plans to push the development of renewable energy across the country.

The corporation says it is ready to collaborate with the state government on the mass production of cassava for industrial purpose of bio-fuel programme of the Corporation.

Clara Eminike, the General Manager, Joint Venture of Renewable Energy Division of NNPC stated this at a meeting with the Governor of the state, Rauf Aregbesola at Government House, Osogbo.

Eminike said the partnership with Osun State was necessary to efficiently and productively explore the agricultural potentials of the state in order to drive the corporation’s diversification dream from oil and gas to renewable energy development in Nigeria.

She said the partnership is also aimed at linking the energy sector with the agriculture sector through the

commercial production of bio-fuel from selected energy crops like cassava, sugar cane and oil palm.

She further assured that the collaboration would help to create wealth, diversifying energy source and also create jobs for the teeming citizens of the state.

She said the visit of the NNPC team to the state has exposed them to the need to key into some major cash crops needed for the production of bio-fuel and industrial production for the benefit of the citizenry.

Eminike said the Corporation has found out that Osun is suitable for cassava production due to agroclimatic condition, hence the need to set up an ultramodern cassava processing industry in the state According to her, “The biofuel programme was initiated by the management of NNPC in line with our policy of developing alternative sources of energy. Basically, the programme is aimed at linking the energy sector with the agriculture sector through the commercial production of

bio-fuel from selected energy crops and the energy crops that we are presently looking at are cassava, sugar-cane and oil palm.

“And usually when we go into any location, we use the cash crops that we know that are predominant in that area; that is why we are looking at cassava for this state.

“We are about to look at other cash crops and some other things like sugar-cane and oil palm and basically what we want to do for this programme is to be able to create wealth, diversifying

energy source and also create jobs.

“We know that oil and gas is not renewable and internationally a lot of people are diversifying from oil and gas into other sources of energy and it might interest you that the NNPC is not left out as we have diversified from being an oil and gas company to be an energy company and that is how this comes into play too”, she added.

Eminike noted that the programme is mainly private sector driven with NNPC, the state governments and co-investors who will take the majority equities and operate the venture as the state government provides land and the equities, hence the need for land requirement from the state government.

“We have found out that Osun state is suitable for cassava production due to agroclimatic condition. Basically the project will involve the development of 15,000 hectares of cassava plantation while other by-products will include animal feeds, yeast and carbondioxide”, she said.

Rauf Aregbesola Governor of Osun while speaking concerning the partnership prospects commended the management of the Corporation for displaying high

sense of dexterity towards the diversification of the nation’s economy.

He described the partnership as a necessity to attract investors, create wealth and generate employment opportunities for the citizenry.

Aregbesola noted that the move would support the farmers, particularly the cassava out growers who hitherto faced challenges in marketing their agriculture produce. He assured the Corporation of his administration commitment to meet the targeted goal, saying Osun has over 30000 hectares cassava farms across the state. “ Your corporation is gradually becoming a modern resource-oriented, goalgetting and patriotic Nigerian company through this diversification “We must thank the management of NNPC for their high sense of duty. And we commend the team. They are goal-getting, result-seeking and purposeful employees of the corporation”, he added.

Aregbesola urged the Corporation not to limit the scope of its diversification to bio-fuel alone but rather expand it to solar energy which he described as the most economical renewable source of energy.

Discos’ inability to meet customer’s demand put them on spotlight … as Benin, IBDC customers want review of privatization OLUSOLA BELLO

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he gathering of consumers of electricity at the at the Best western hotel, Lagos recently under the auspices of the House of Representative Adhoc committee on electricity consumer complaints gave a lot of insight into the problems facing consumers.

The forum was stormy with the deluge of complaints coming from electricity consumers.

The verdicts of the consumers was unanimous as they said that the discos have failed and that the government should take a holistic reappraisal of the privatization exercise since the objectives is not being achieved.

The Benin Electricity was the most vilified by the consumers who alleged that the Discos as being insensitive to their plights. Some of the customers said the neglect suffered in the hand of the company as unwarranted.

Ib i ku n l e O g u n d i p e, chairman Ekiti Landlord and lady electricity consumers Association disclosed at the forum that the association has been having a running battle with Benin Disco despite having several meet-

ings with the management of the company at the office of the police commissioner following consumers threat to protest against the company.

He said that there are no prepaid meters in Ado Ekiti and yet they are being confounded with outrageous bills. A one bedroom

apartment he said is being charged nN19,000, N15,000 despite the high level of the unreliability of supply.

“Benin Disco agreed that it is issuing estimated bills and the association members told the company that whatever the value of the bill it is brought they would

Power generation situation last week

Source: Power Advisary Team

not pay more than N3, 000 and if the company decides to disconnect us we would go to court,” he said.

He said most of the facilities in Ekiti are bought by the consumers and they don’t see any reason why they should made to suffer.

Adebayo Aderogba,from

Araromi Estate, at Akobo Ojurin in Ibadan has another tail of stories to tell about the Ibadan Electricity Distribution Company as he said for eight years the community has been battling to get new transformer following the blowing up of the one serving them before.

He said the community had complained severally to Ibadan Disco which had gone to inspect the transformer and since then no action is taking. He therefore appealed to the company to help his community on the matter.

Bode Ojomu who represented the Magodo residents association under Ikeja Electric stated that Nigeria is being dragged to the point of anarchy on the issue of electricity supply, adding that a holistic appraisal of the privatization exercise is needed by the government.

He accused the promoters of the Discos of being behind the outrageous estimated billings because according to him they often imposed unreasonable target them to be remitted every month without considering that the service provided is very poor.

“Nigeria state has been held by the jugular. The level of infrastructure is worse now in the power sector, we should not see our citizens as hapless, it an absurdity that people for money for the service they did not enjoy, prepaid meter is needed, the National Electricity Regulatory Commission must outlaw estimated bills,” he said.

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EDUCATION

Weekly insight on current and future trends in education

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Primary/Secondary

Higher

Human Capital

May 01: Nigerian workers danse on knife edge, over 7.5m unemployed STEPHEN ONYEKWELU

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t was 5:30am on a Monday morning, 25 year-old Tunji, who lives in Iyana Ipaja, a Lagos suburb, put on his overall jacket, safety boots and helmet; picked up his tool box filled with spanners, hammers, screws, screwdrivers and pliers, marks of his trade.

He is determined to master his new trade - auto-mechanic.

Tunji is a graduate of economics and whilst in school he had some side hustles. Sometimes he sold cloths and at other times, especially during holidays he supplied charcoal to restaurant owners in various parts of Osun state.

Tunji graduated with a Bachelor of Science (2:1) in Economics from a state university. His first job when he graduated at the age of 23 years was with a bank but lost the job after 18 months because when Africa’s most populous nations went through a recession, in 2016, the bank decided to layoff some staff. Tunji realised first-hand how fragile white collar jobs can be and decided to learn some vocational skills, possible for him because he was still young unlike older victims. He wanted to take his destiny into his own hands.

Tunji is not unique in this position.

The National Bureau of Statistics estimates that 7.5 million Nigerians were unemployed between January 2016 and December 30, 2017.

The economically active population or working age population (persons within ages 15 and 64) increased from 108.03 million to 108.59

L-R: Demola Aladekomo, chairman, Meadow Hall Foundation’s Board, and Kikelomo Usilo, Winner, Inspirational Teacher of the Year 2018, during the presentation of cheque to the winners of the Inspirational Educator Awards (INSEA) 2018 at Landmark Event Centre, Lagos recently.

million, this represents a 0.50 percent increase over the previous quarter (third quarter of 2016) and a 3.40 percent increase when compared to the fourth quarter in 2015. In the fourth quarter of 2016, the labour force population (that is, those within the working age population willing, able and actively looking for work) increased to 81.15 million from 80.67 million in Q3 2016, representing an increase of 0.60 percent in the labour force during the quarter.

“We have lost over 10 million jobs in the last two years partly because investors perceive Nigeria as an uncertain investment environment.

Partly because our economic policies have not been swift and proactive enough to deal with the avoidable

situations that led us into the recession” Teslim-Shitta-Bey, a former investment banker said in a closed door meeting.

Nigerian workers have been longsuffering. The National Minimum Wage has remained at N18, 000 since 2010, despite inflationary pressures, which have eroded the value of the naira and sent prices northward.

Headline inflation was 13.34 in March 2018, down from 14.33 in February.

However, cost of food in Nigeria increased 16.08 percent in March of 2018 over the same month in the previous year. Food Inflation in Nigeria averaged 11.51 percent from 1996 until 2018, reaching an all-time high of 39.54 percent in September of 2001 and a record low of -17.50 percent in

Oando foundation reiterates commitment to improve basic education sub-sector in Nigeria KELECHI EWUZIE

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s part of its strategic commitment to support both Federal and State government tackle the challenge of out of school children in Nigeria, Oando Foundation says it will continue to champion the move for a holistic model to improve the basic education sub-sector in the country.

Adekanla Adegoke, Head, Oando Foundation said the organisation will continue to support the creation of a world-class learning environment in public primary schools across the country through its Adopt-A-School Initiative.

Adegoke observe that the basic education subsector in the country is challenged by inadequate water and sanitary facilities; overcrowded classrooms; out-of-school children scourge, lack of teacher capac-

ity development and lack of modern learning facilities.

According to her, “These are some of the issues the foundation is tackling through its intervention in adopted schools to achieve an educational system that will truly educate and empower the Nigerian child. In her presentation in Lagos, she observed that there is currently a shortfall of 1.1m classrooms nationwide. Lack of appropriate sanitation facilities are a huge deterrent to students in public primary schools.

Severe shortages of classroom space result in class sizes that sometimes triple the prescribed teacher-pupil ratio for Nigeria of 1:40.

“Varying posts show that over 10.5million Nigerian children are out of school; and only two million of 22 million kids aged zero to five years in Nigeria have access to Early Childhood Care Education.

Tonia Uduimoh, Programme

Coordinator of the foundation said the organisation is leveraging on its resources, best practices and crosscutting solutions that have delivered similar results they aim to achieve.

Adegoke further stated that these are some of the issues that the Federal and State government as well as other concerned stakeholders should be worried about adding that foundation will continue to push for a holistic model to improve the basic education sub-sector in the country.

On their strategic focus for 2018, Adegoke said, they will institute grant awards to Civil Society Organisations that align with the foundation’s strategic focus; consolidate joint programme intervention under Educate A Child (EAC) partnership and deepen programme quality; strengthen international partnerships, utilising evidence from our theory of change and programme outcomes.

January of 2000.

This is noteworthy because data from the World Economic Forum (WEF), a Swiss nonprofit foundation, based in Geneva, Switzerland, show that over half of Nigeria’s households spend half their household income on food, and there are nine other countries that spend over 40 percent on food such as: Nigeria 56.40 percent; Kenya 46.70 percent; Cameroon 45.60 percent; and Algeria 42.50 percent. It implies the Nigerian worker, after paying for groceries has little left for to save, this in turn slows down the rate of capital formation and local investment fund pools in the economy.

Access to quality healthcare and education is alas, outreach to most Nigeria workers.

UI asks 408 students to withdraw from Varsity AKINREMI FEYISIPO, Ibadan

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he University of Ibadan has asked 408 to withdraw from on failure to meet the minimum academic requirements to stay in the University.

The Senate of the University has ratified the withdrawal at its meeting where results of graduating and nongraduating students were considered and approved.

Three-quarter of those asked to leave the university were those in 100 levels who were admitted into the university without writing the Post-UTME screening examinations.

The University of Ibadan had admitted a total of 3,483 for the 2016/2017 session when there was opposition to the conduct of postUTME screening.

Adeyinka Aderinto, the Deputy Vice Chancellor (Academic) in an interview with newsmen in Ibadan stated that the University of Ibadan will continue to uphold its standards despite dwindling funding to the university by adhering to global standards.

The DVC, a professor asked parents of those students returning to the University to ensure that they monitor to ensure that their wards who have been asked to withdraw from the university do not lie and continue to extort money in the name of being a student at the University “The conduct of UI Model of PostUTME screening has helped to separate ‘men from boys’ and helped the institution in maintaining its historical standard as a global brand. “The University is determined to uphold standards. We are saying that being admitted to the University of Ibadan is a rarely privilege that require students to be up and doing in their studies.”

Akinkuowo Cowbellpedia champion gets scholarship to study aeronautics engineering STEPHEN ONYEKWELU

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yodele Akinkuowo, the 2015 senior category winner of the Cowbellpedia Secondary Schools Mathematics TV Quiz Show, has secured a scholarship to study Aeronautic Engineering at the University of Moscow, Russia.

Promasidor Nigeria Limited, the makers of Cowbell Milk brand sponsors of the Quiz Show also donated the sum of USD $2,500 in appreciation of the feat by a ‘Cowbellpedia Ambassador.’

Akinkuowo was a student of Adeyemi College of Education Demonstration Secondary School, Ondo, Ondo State when he won the Cowbellpedia Mathematics competition in November 2015.

While hosting him in Lagos, Anders Einarsson, Managing Director of Promasidor Nigeria Limited, noted that the company remains proud of the achievement of the

young man who has hoisted the Cowbellpedia flag higher by his brilliant outing. Einarsson added that the money was a token of support for his trip and assured that Promasidor would continue to support the academic development of Nigerian children.

Akinkuowo expressed deep gratitude for the gesture and promised not to diminish the Cowbellpedia spirit in all his future endeavours. He disclosed that the competition has not only emboldened him to face the challenges of life, but it has also taught him a big lesson in faith and hope. “The day I won the competition three years ago, my mother wept.

When the then Governor Olusegun Mimiko invited me and my parents to the Government House in Akure for doing the state proud, I wept especially after the Governor shook my hand. I can never forget such moments. God and Promasidor have been kind to me. I will never forget,” he said.

Tuesday 01 May 2018

EDUCATION

21 HUMAN CAPITAL BUSINESS DAY

‘We are developing talent pool for future use’ JADESOLA ADEDEJI, Founder/CEO of STEM METS, is a social entrepreneur with a dream to change what education looks like in Nigeria. In this interview with STEPHEN ONYEKWELU and ENDURANCE OKAFOR, she points the way forward.

What is STEM METS about, what brought about the initiative and for how long has it been in existence?

TEM METS is a social enterprise and our vision is to enrich, nurture and inspire Nigerian children and youth to develop the skill set they need for the future work place.

We do that by using various STEM educational programmes, so STEM is Science Technology Engineering and Maths (STEM). We use different STEM programmes to develop these skill set in children and the skill set that will help them inculcate are specifically; critical thinking, communication, collaboration and problem solving skills.

So, they do not need to want to be a scientist to possess those skills, as they are basic skills needed in the workplace, and because technology is really influencing the way we live and work, the way we teach, the way we learn, as such we are inculcating that in how the children are been thought and is not just theory alone.

The company has been in existence for about four years

S

now, and apart from STEM, we run another program called brickz4kidz initiative, where we use leg go to teach children STEM, and that is what I mean by using innovative and an alternative learning platform to teach children. This encourages students to be better problem solvers, innovators, and creative thinkers, while preparing them for varying careers in the future work place.

How many young Nigerians have you been able to impact on using STEM initiative?

We have actually been able to reach out to over 4000 children since we started in 2014.

We run our programme as an after school programme and we also run our programme during the holidays as a camp, so children come three hours a day for a week and they are able to participate in our different programmes, but those are fee programs that we run.

Although we have been able to partner one foundation so far which has funded us to run public schools where we also run our programme.

We key into reaching as many children as possible in a v variety of ways as possible, and that is how the Air Bus foundation has also

Jadesola Adedeji

come about.

What is the idea of STEM METS and why are young Nigerians targeted in your plans?

The idea is to start when they are young, and the idea is that we are developing the talent pool for the future, the skills that they are going to need in the future are been developed now. We are developing them now, we are inspiring them now, we are giving them the skill set they

Publicnotice.ng empowers Nigerian youths through digital workshop STEPHEN ONYEKWELU

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ublicnotice.ng, Nigeria’s foremost online publisher of public announcements last week empowered almost 100 Nigerian youths though its maiden digital workshop.

The digital workshop which was designed to teach people between the ages of 20 to 35 years digital skills in order to actualise their passion was also targeted at diverse sectors of the economy.

At the event, Nosakhare Uwadiae, Managing Director, Media Supermart Ltd, a major partner for the event said the theme of the Digital Empowerment Workshop 2018 which is ‘Be What You Want to Be’ was chosen to reiterate the fact that there are no limitations to becoming anything in life through digital possibilities.

“Whether you are a fashion designer, an engineer or whatever vocation you are interested in, you need to acquire digital tools because everything is going digital. So at

the end of the day, whatever you have in your mind, you have a medium of expression through digital,” Uwadiae added.

On the selection of experts for the workshop, he said the facilitators selected are globally oriented and trained all over the world.

He explained that the participants were trained on various areas such as online digital film making, digital content writing and the digital ecosystem in terms of running effective communication as well as digital marketing, adding that Publicnotice.ng has plans to cover other parts of the country before the end of the year.

He mentioned some of the media partners for the workshop include Media Supermart Ltd, Mobiads Wi-fi proximity marketing device, LTC, CMC connect and Burson-Marsteller.

Bolaji Okusaga, Managing Consultant, Precise and a guest speaker at the event told BusinessDay that Nigeria needs to start looking at flipping the context. “If we

still believe that things are the way they used to be years ago, then we are wrong. The world has moved on. We are beginning to come into the fourth industrial revolution and one of the fundamental hallmark of that is the idea of internet of things; devices been connected and possibilities being created,” Okusaga said.

He noted that whilst Nigeria has infrastructural challenges, the country can surmount these challenges by creating an environment of innovation, adding that tech hubs and accelerators at Yaba in Lagos has been able to draw international mileage and this should be replicated in major places in Nigeria.

Okusaga said innovations will help create new industries and new jobs, so that the potentials of youths can be utilised. “Digital is the future, as it is reinventing every industry, from agriculture to Medicine, to Films, to Commerce. The whole Micro Economy is being disrupted and Nigeria needs to quicken its pace,” he added.

need and we are trying to develop it as they are growing through their educational journey. Such that in the future these skill set would have already become part of them, they can actually become skilled graduate and skilled employees, because there are many graduates in Nigeria that are not skilled.

How are you embedding technology and soft skills into your programmes?

You have people who have

Doctor of Philosophy (Ph.D.) or first class but cannot find any job, as they have the theoretical knowledge of their field of study but they do not have the practical knowledge that is required in the work place.

What are the main challenges STEM METS faces in trying to achieve its goal and objectives?

Well firstly is trying to get people to understand what we do, the objective, the outcome will are try to reach and measure; basically, as a company the challenge would be human capital, finding the facilitator, teachers that will even run our programmes. So we have a fantastic programme, great content in our curriculum but our challenge is how to get that out effectively, because remember we are inspiring and instilling, so what you are telling the children has to be of quality and it has to be passed on well.

How can government be involved in achieving indicatives like yours?

I think one would be to have access to the government, and once we have that access, being able to even let them understand what we do. Collaborations and part-

nerships are keys, as we cannot do it all alone, although we have been trying to do it alone. We have made impact but we feel that collaborations will open more doors ways and we can be able to reach more children through collaborative partnership.

What plans do you have in place to help achieve your goals?

Well, our goal is one, which is to reach as many children as possible in Nigeria and equip them with the skills they need for the future that is our singular goal. How we are going to do it is the challenge, and like I said we cannot do it alone, so we think partnership and collaboration is key, so we are always looking at creative ways to partner with different organisation to deliver the program without compromising the integrity of our program.

What is the success level of STEM METS? So far, STEM METS has been very successful but again we are restrained by resources. We are not deterred nevertheless, as our goals and aspiration are still very much the same, just that we are looking for creative ways to now administer them.

SIEMENS donates N12 m educational facilities to needy primary schools

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development partner in the AzuraEdo independent power project, Siemens Nigeria Limited, has donated educational aids to three community primary schools in the Uhunmwonde Local Government Area of Edo State.

The beneficiaries of the intervention, comprising desks, chairs and a toilet facility, include Owegie Primary School in Orior-Osemwende community.

Others are Igbinakenzua Primary School and Oba Erediauwa Primary School in Ihovbor and Idunmwowina Nurho-Nisen communities, respectively.

The General Site Manager of Siemens/Azura-Edo IPP, Timo Brand, said that the donation was part of the company’s corporate social responsibility to the host communities.

“I feel very proud; my personal achievement is to donate these pieces of equipment to the community schools hosting us for the project. I am happy that we have done this. If I had

the chance to do more, I would do so,” Brand added.

Okechukwu Nwabuzor, the Project Manager (Onshore), explained that the educational equipment, worth about N12 million, were donated after wide consultations with the schools.

According to Nwabuzor, the gesture was also part of the firm’s policy to grow the educational capabilities of host communities.

He said, “We actually did a needs-based assessment. We went to the three schools and each school told us exactly what it needed. In one of the schools, the children (pupils) were sitting on the ground; they did not have the needed infrastructure.

“So, what we did was to check the number of pupils and the availability and we arrived at 70 chairs that could accommodate 140 pupils, seven whiteboards and accessories that could last for the next one year.

“We also took the teachers into consideration. So, we provided tables and

chairs for the teachers. Some of the teachers said that they had to use their own money to buy their chairs.

“So when we heard that, we had to provide such to complement what the schools already have. The cumulative cost should be between N10 million to N12 million.”

He further stated that the intervention was part of activities to mark the successful completion of the 459 megawatt power project.

Nwabuzor added, “We would not have felt satisfied that we had completed the power project without contributing to the communities.”

Responding, the Headmistress of Oba Erediauwa Primary School, Florence Osunbor, described the donation as a timely measure that would alleviate the plight of the school.

Osunbor said, “We have a population of over 400 pupils with a block of classrooms. When you come during the school session, you will see that the pupils are on the ground.

22 BUSINESS DAY

Tuesday 01 May 2018

THE BIG HEART DIGEST In association with Delta State Micro, Small and Medium Enterprises Developement Agency (DEMSMA)

Delta feeds 243,000 pupils with N1.4bn in home-grown school feeding programme …As enrolment increases by 50,000 in one year MERCY ENOCH, Asaba

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elta State has so far received N1.4Bn from the federal government to feed 243,002 pupils in the past one year. The federal government did this through its Home-Grown School Feeding Programme (HGSFP) for the purpose of feeding pupils in primaries one to three in public schools across the 25 local government areas of the state.

This is just as enrolment of pupils into public schools in the state has continued to increase since May 2017 when the programme which is one of the Social Investment Programme of the FG kicked off in the state.

The programme manager of the HGSFP, Eddy Nwamaka, made the disclosure during an interview with newsmen in Asaba shortly after the press ministerial briefing where the commissioner for basic and secondary education, Chiedu Ebie, briefed on the achievements of the Ifeanyi Okowa-led administration via his ministry.

Ebie mentioned the HGSFP as one of the achievements of the current administration having keyed into it to improve the lives of Delta pupils in public schools.

Nwamaka, in the inter view with pressmen, then explaine d, “When the programme started in May 2017, we started with 193,800 pupils and then in October 2017, the figure increased to 233,662 pupils.

That’s about 17.2 percent increment in school enrolment, largely due to the

school feeding programme.

And then, in January, the figure increased further to 243,002 pupils. That’s about 3.5 percent growth in the number of enrolments”, disclosed Nwamaka.

“So far (as at April 16, 2018), we have got eight payments from the federal government, totaling about N1.4 billion. The payment is done monthly, and they have paid for 20 school calendar days in a month, and afterwards they will pay for the next month”, he disclosed.

“Presently in Delta State, we have 1,113 schools that are participating in the programme. It cuts across the 25 local government areas in the state. A total of 2,078 cooks have so far been cleared for payments while seven cooks are yet to be cleared”, he said.

Early in the year, over 4 0 , 0 0 0 pu p i l s w e re n o t eating because their cooks were yet to be cleared. The Big Heart Digest gathered that more and more pupils have continued to benefit from the programme as more cooks are being cleared. As the number of cooks yet to be cleared dropped to seven, the number of pupils yet to be eating also decreased.

Efforts of the ministry to ensure all the pupils eat: He s a i d : “ We hav e a listening governor with a good heart. He is somebody I know and I know he has the interest of his people at heart. I know he is looking into this programme, and I know that somewhere along the line, he would see how the state would collaborate to ensure the continuity of this

Governor Okowa

programme.

“Now, the programme is just for public primary schools. You see lots of mass movement from the private schools to the public schools, according to statistics. The programme is for public schools. Any pupil in pr ivate s cho ol that wants to be part of it should better come to public schools.”

N70 meal, cooks’ profit and pupils’ satisfaction “N70 is small but when you look at N70 times the number of pupils, times the

number of days you have the money in bulk, and we have made some arrangements where the cooks can get foodstuff locally. Now, if you look at our menu, it is strictly foodstuff that are grown locally like the simple ugu leaf, the spinach, rice, yam, beans etc. That is why the programme is called home-grown school feeding programme. If you look at our menu, the content is sourced locally. So, we have linked most of the cooks with the farmers in each local council area. We

have ward coordinators, LGA coordinators, and senatorial zones’ coordinators.

We have state coordinators, too.” .

Monitoring “So, in terms of monitoring, we ensure that the people at the grassroots, the ward coordinators, inspect these schools and bring us feedback. Also, the federal government has come up with ‘track with us’. It’s also an initiative where anybody can walk into a school and make enquiries of what was going on. We have our members out there who can send us information; they can whatsapp to us and of course, we move in straightly.

“So, the information we get, we send to our coordinators down to these places.

Even some of them have to travel through the river because some of our schools are beyond land. Some must go through the river. We have logistics for that. So, in terms of monitoring, I think we are quite okay with that.

Monitoring however costs a lot. We are trying to see how we can manage the little resources we are given to ensure we have results.”

Assessment of the programme “I would say the programme is a huge success in the sense that quantitatively, the size of school enrollment has increased.

Qualitatively, when you see the pupils, you would see growth in them. They desire to go to school and they desire to learn. You see lots of parents coming to us to say it’s a very laudable programme”.

Challenges: Nwamaka described the programme as a new one

with its own challenges. “We had the challenge of getting to regroup the cooks, getting to give them orientation that this is not a programme of settlement or political gratification. It is rather aimed at helping the pupils, which is the main focus of this programme. And by and large, we had to go through a lot of screening process; we made them go through health check to make sure they were okay. We had to train them on hygiene, and we had several orientation programmes; teaching them how to cook the menu. We have a lot of them comply with the stipulated guidelines”.

Co nt i nu i ng, h e sa i d , “As with every other programme, we have some people who feel they could do what they like. Then, we have put measures in place and when we fish them out, proper sanction is meted out on them.”

Advice “I advise parents whose children benefit from this programme to ensure the children continued to go to school. Pupils that are not going to school should be encouraged to get back to school because the objective of the programme is to ensure that children were fed one good meal per day, to have the right nutrition. And you know, if children do not have the right content in terms of what they should get from food, they may not perform optimally. They should do so because I believe this programme w ould continue”, he said.

He thanked the state governor, Ifeanyi Okowa, for ensuring the state keyed properly into the programme.

Junior, middle staff quarters’ residents move from tenants to apartment owners MERCY ENOCH, Asaba

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s part of its social responsibilities, the Delta State Government has approved the conversion of the status of the current residents of the Junior and Middle Management Staff Quarters in Asaba from tenancy to owner-

occupier status.

This was one of the decisions taken during the State Executive Council meeting held last Tuesd a y , i n s i d e t h e E XC O chambers of Government House, Asaba.

The State’s Commissioner for Information, Patrick Ukah, speaking after the meeting, said

that under the new arrangement, occupiers of the quarters would pay N800, 000.00 for the onebedroom apartments and N1, 600,000.00 for the two-bedroom apartment.

Modalities for the payments by the residents would be determined in due course, through the Delta Trust Mortgage

Bank, Ukah revealed.

Residents say there is great shortage of housing especially for the low-income earners in Asaba. A household sample survey conducted by a researcher in one selected part of the town some years back revealed that about 84.46% of the housing units in Asaba

are flats while only 28.4% are tenement units. This has resulted in high room occupancy ration of more than five persons per habitable room as recorded in parts of Umuaji, Umuezei, and Egengbome.

“The general inadequacy of housing in Asaba urban is revealed in shocking

data obtained from some filed surveys. For example house occupancy ranging from 3-5 persons per room had been recorded in many parts of the state capital.

In the case of Ezenei Avenue, Ogbeilo Umuanaji quarters and Ezeugbome, an overall average of 5-6 persons per room was obtained in a survey of tene-

Tuesday 01 May 2018

C002D5556

BUSINESS DAY

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In association with

NUC’s nod to ARCON request to upgrade Architecture study lifts profession

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Gilead Global flaunts luxury townhouses as The Margaret berths in Banana Island …blends hard exterior with soft touch of female interior architecture Stories by CHUKA UROKO

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ver the last 10-20 years, Ikoyi, an upscale and exclusive neighbourhood in Lagos, has witnessed massive growth and impressive transformation, growing from an old, sleepy, residential area into a modern, mixed-use community. Its streets have moved from being lined with colonial duplexes with expansive gardens to displaying some of the most ambitious office complexes and high-rise residences.

A walk down Alfred Rewane (Kingsway), Alexander or Bourdillon Roads lends credence to this.

Nestled in the heart of this neighbourhood is the gated fortress known as Banana Island, arguably, Nigeria’s most affluent neighbourhood. Its beautifully tarred roads and picturesque green areas make it a destination of choice for multimillionaires both at home and abroad looking for the security, serenity and service the estate offers.

Within the bowels of this island stands The Margaret, a stunning collection of four and five-bedroom townhouses. The building is designed by critically acclaimed female architect, Okwi Onuzo, in collaboration with London-based

landscape architect, Moji Adeniran and Sicilianbased interior architect, Martina Pardo.

Consistent with the African cultural saying, “the woman owns the home”, this development boasts of specific features which are extremely pertinent to women. This is due to its all-star female team of architects, engineers and designers. It is a special offer to, and a celebration of womenfolk.

The Margaret is an apt name for this modern English residential enclave, which draws inspiration from the values of Margaret Thatcher, former British Prime Minister fondly referred to as the ‘Iron lady’. Hence, its hard exterior is fashioned out of concrete, glass and steel, which conceals its much softer interior of handpolished wood, natural Carrara marble and other organic materials.

Gilead Global, the developers of the project, explain that they are on a mission to close the gender equality gap in the fields of construction and architecture in Nigeria. According to Ololade Babalola, cofounder of Gilead, “the goal is not just about filling in the blanks, but also really about the meaningful inclusion of women in senior decision-making positions on major real

estate projects such as this.

“It is about slowly transforming the institutional culture and the mind-set that women should be relegated to the backseat when it comes to such projects. Women make up 49 percent of the Nigerian population and one out of every four women in Sub-Saharan Africa is a Nigerian”, Babalola said.

This represents enormous human resources potential which can be harnessed to increase economic productivity, but the disparities in job opportunities between men and women have never been starker. Gilead was moved to embark on this direction for the project after using the Dezeen gender to pay gap calculator, which revealed it paid its female employees 34 percent less per month than their male counterparts.

For the very few who are able to afford it, residents of The Margaret, will have access to the most luxurious of amenities such as private gardens and courtyards, individual vitality swimming pools for each residence, high ceilings, hand finished brass fixtures, a private home cinema for all residents, yoga classes, 24-hour concierge and valet parking.

“We are very clear, this development is not for everybody. It is for a very

niche market of sophisticated buyers and renters who understand quality design and premium service. It’s a very small group but we are getting a huge amount of interest”, Babalola said.

The townhouses are now officially for sale offplan, with two of them already sold. The development will offer residents a botanical oasis of peace amidst the surrounding hustle and bustle of Lagos.

Gardens and communal areas will be maintained

by UK-based New Era Gardens, making sure residents don’t have to worry about forgetting to prune or water the plants.

Its inter iors feature an earthy palette with an abundance of natural light seeping through the oversized French windows.

Each townhouse and penthouse has its own private vitality swimming pool, which would also be maintained by the facilities managers present on site.

Residents will also have access to a private home cinema, where they would be able to watch current box-office movies from the comfort of their homes The townhouses come starting at a price tag of N280 million ($800,000). The penthouses are not up for sale at this time and construction is set to commence in the coming weeks.

he architecture profession received a significant boost recently following National Universities Commission’s (NUC’s) approval of request by the Architects Registration Council of Nigeria (ARCON) to upgrade the study of architecture from department to faculty.

This is happening after about a decade of initiating the process, but the good news is that this new policy would, in a few months, become operational, as the commission has said it would soon hold a oneday retreat with all academic and practising architects towards implementing this development.

Abdulrasheed Abubakar, NUC’s executive secretary, made this disclosure recently at an annual colloquium organized by ARCON in Abuja.

“Having been satisfied that ARCON had met all specified conditions, the NUC had approved in principle its request to upgrade architecture study in Nigerian universities from the developmental to faculty level”, said Abubakar, who was represented by Mariam Salle, acting director, Department of Students’ Support Services.

Ahead of implementing this development and to ensure seamless execution, Salle said that, very soon, a one-day retreat would be held with the academics and the professionals to finalise the upgrading process.

After this, a directive would be sent to the universities for immediate implementation”, she said, adding, “ARCON’s request was a good one, hence, NUC gave the approval; the approval would, no doubt, lift the profession of architecture to the next level”.

Continuing, she assured, “the graduate of that course will be better off. The studies of architecture will definitely be better off with this. It is a positive development for Nigerian

students studying architecture.”

She urged leaders of the profession to embrace the approval and work towards improving the delivery of the curriculum.

Umaru Aliyu, the ARCON president, said the approval brought a great excitement to them, because the council had been on this since 2012, describing the development as a dream come true.

“By this policy, the production of architects in Nigeria will triple; now that the study of architecture has been upgraded to faculty, it means that more prospective students will be admitted and that will clearly lead to increased number of architects in Nigeria,”he said.

Umaru explained that ARCON initiated the move because the council realised that Nigeria was in shortfall of architects, estimating the need at 18,000 architects to serve the populace.

To get it to this point, ARCON and NIA members both in public or private were sensitised and we reached an accord to support the initiative; I believe that the new policy would increase the production of architects, just as it will equally create more jobs and wealth in the country.

Adibe Njoku, president, Nigerian Institute of Architects (NIA) said his members had been part of this initiative, saying it was a good development for the profession.

He added that the new government’s policy would impact positively on the quality of architecture, built environment and the nation, as the issue of quackery would be effectively tackled.

Umar Murnai, Registrar, ARCON, thanked NUC for assenting to its request, hoping that architecture in Nigerian would not remain the same.

According to him, ARCON has been working assiduously to get to this point, assuring all stakeholders that it would not relent but ensure smooth implementation of the new policy.

L-R: Gabriel Ajayi, vice president, ARCON; Mariam Salle, representative of NUC executive secretary; Jimoh Faworaja, director of colloquium; Umar Murnai, Registrar; and Emmanuel Omatsonen, treasurer, at ARCON’s annual colloquium in Abuja recently.

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BUSINESS DAY

Tuesday 01 May 2018

FM experts’ policy dialogue seeks attention to public assets, infrastructure maintenance Stories by CHUKA UROKO

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dequate attention to infrastructure and public assets maintenance will be at the centre of discussion when stakeholders, including public and private sector operators, gather for a policy dialogue to be convened by facilities management (FM) experts and professionals in Lagos.

The forum, which is part of activities to mark this year’s World Facilities Management Day, anticipates top level government functionaries including Yemi Osinbajo, the vice president of Nigeria, and experts from in and outside the country.

Klinserv Solutions Limited, a leading provider of Asset & FM Technology support services to the FM industry, which is organizing the event in conjunction with other FM industry practitioners, says

“the is first of its kind and the largest platform for interaction among policy makers, managers of public assets/ utilities and infrastructure”.

According to authorities of Klinserv Solutions, the event at which the organized private sector and facility management practitioners are also expected is titled ‘Effective Maintenance as a tool for National Development’ and focuses on Education, Healthcare and Technology.

“One of the biggest challenges of our economy has been our persistent inability to articulate a sustainable national and sub-national policy and framework that will ensure the regular and effective maintenance of our public assets, buildings, utilities infrastructure and facilities”, explained Tunde Ayeye, the lead convener and executive chairman of Klinserv Solutions, at a press conference in Lagos.

Ayeye, who is also the

group managing director of the International Facilities Services (IFS) Group, added that poor maintenance culture has over the years led to a perennial problem of poor functioning of these assets, wanton wastage and dissipation of Nigerian citizens common heritage, poor economic performance, and corruption.

It is not hard to see instances of poor maintenance culture in Nigeria as this reflected in bad roads, poorly maintained bridges, nonfunctional health centers and hospitals, dilapidated school buildings, refineries our national power infrastructure, etc. “Anywhere you look; it is evident that the issue of poor maintenance of our public facilities demands national attention”, Ayeye said.

The policy forum dialogue is therefore a call on all stakeholders and lovers of Nigeria to join hands and

L-R: Afolabi Abraham, country manager, Draiklinas Ltd; MKO Balogun, MD, Global Properties and Facilities Int’l; Tunde Ayeye, chairman, Klinserv Solutions Ltd (Lead Convener), and Emmanuel Atat, operations director, IFS Ltd, at the press conference on Policy Dialogue in Lagos recently.

support government in its efforts at investing in infrastructure development and actualization of its Economic Recovery and Growth Plan (ERGP) which is already beginning to achieve results.

To increase, sustain and accelerate the growth patterns being seen in the economy, Ayeye believes that a well-articulated long

term policy on total life cycle management of public assets is urgently required at the national, state and local government levels as against a focus on cost of acquisition alone without adequate policies and plans that will guarantee that the asset continues to function optimally and serve its intended purpose throughout

its useful lifecycle.

The policy dialogue will focus specific attention on infrastructure, health and education facilities which, according to MKO Balogun; managing director, Global Property and Facilities International Limited, is in tandem with the philosophy and key areas of focus of the federal government’s ERGP.

BDTECH

BUSINESS DAY

Tuesday 01 May 2018

25

In association with

Nigeria sees 35% increase in use of satellite television JUMOKE AKIYODE LAWANSON

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igeria has seen a significant 35 percent increase in the use of satellite TV from 2015 to 2017, this is according to Satellite Monitor, a market study commissioned by SES. The survey which provides insights on the broadcasting industry shows that there are a total of 35 million TV homes in Nigeria, of which close to 10 million are served by satellite, and the rest are served by terrestrial networks.

In the report, penetration of digital TV has expanded to 25 million homes receiving digital TV signals, which represents 35 percent growth compared to 2015.

The growth in use of satellite can be attributed to a number of factors including the fact that SES, a leading satellite operator, which has IPSOS as its partner in Nigeria, has significantly increased its technical reach in Nigeria to over 11 million TV homes in 2017, up from 3 million in 2015.

The Satellite Monitor survey results also reveal that SES now reaches over 11 million TV homes, of which 3.5 million are directly served by its satellite fleet - a twofold increase compared to 2015.

This means SES now directly serves 37 percent of satellite TV homes in Nigeria. Digital Terrestrial Television (DTT) homes fed indirectly

by SES also contributed to the increased reach.

However, digital switchover for

terrestrial TV is still lagging, as 40 percent remains analog.

Presenting facts from the recently released report to select ICT journalists in Lagos, Ricardo Topham, senior market and business analyst, SES, said, “terrestrial TV in Nigeria has a long way to go to be fully digital.

“Out of 25.1 million terrestrial TV homes in Nigeria, 10.1 million (40 percent) of them are analog while 15 million (60 percent) are digital,) Topham said.

Paul Freeman, Vice President at SES marketing told BusinessDay that there is still a long way to go on

a couple of things in Nigeria’s TV market, including the fact that the market still has more than 10 million homes to convert to digital.

However, he said that this is happening very rapidly.

“With the increased availability of data service, we will see more IPTV in the market but data is still quite expensive. To have enough data to run TV on handheld devices all the time is very expensive, so satellite free to air television and pay TV is actually much cheaper by comparison and you can get local and international content available, Freeman said.

Explaining the reason behind the less than one percent cable TV access in Nigeria’s residential market, Freeman told BusinessDay that tapping/dubbing of cable TV channels from the few paid subscribers in very common in many markets in Africa.

“As digital satellite TV becomes more prevalent; we expect this trend of passing wires to tap cable TV channels from neighbors to reduce. The SuperSport content on DSTV tends to be more pirated and this is the reason for the loess than 1 percent cable TV subscription in the survey results,” Freeman said.

The prime orbital position at 28.2 degrees East was a key driver for the growth of SES’s direct reach, with three million TV homes directly served via this orbital slot, up from 1.3 million in 2015. This video position hosts SES’s premium freeto-air TV platform for Nigeria, giving broadcasters access to the highest technical reach in West Africa.

The growth of SES’s reach was also driven by direct satellite broadcasting and feeding DTT head-ends via 5 degrees East.

“SES has been committed to driving the growth of digital TV in Nigeria for many years, and local partners in the country appreciate the Satellite Monitor study as a token of our commitment,” said Clint Brown, Vice President, Sales & Market Development for Africa, SES Video. “We are particularly excited by our growing technical reach at 28.2 degrees East, which broadcasters and content programmers will be able to leverage to increase their audience via our Nigerian TV platform. In addition, the results show that the hybrid DTH/ DTT approach is the winning strategy to deliver TV entertainment to the highest number of TV homes.”

SES has also expanded its reach to 30 million TV homes across Africa. In addition to the growth of homes reached in Nigeria, the study also shows that there was an increase from 2 million to 4 million homes reached in Ghana. Ethiopia, Uganda and Tanzania – which are being included in the Satellite Monitor for the first year – account for an additional 7 million homes reached by SES.

Nigeria’s kid inventors present ‘Virtual Farm’ app at global innovation challenge JUMOKE AKIYODE LAWANSON

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our junior secondary school students in Nigeria who have created a mobile app that could revolutionise agriculture globally are preparing to showcase their disruptive innovation at this year’s Conrad Challenge Annual Innovation Summit in Florida, USA. The young achievers from Whitesands School Lagos, created

a VirtualFarm application which helps farmers manage their farm and connect with their target markets. With its innovation, the team entered the Conrad Challenge, which encourages high school students to develop cutting-edge solutions to real-world problems in the areas of aviation, cyber technology, environment and health, amongst others.

Aged between 12 and 14, Mordi Menashi, Gbemi Famobiwo, Afo-

labi Williams and Osagumwenro Ugbo, known together as Team Neon will be sponsored to the summit by Guaranty Trust Bank plc.

Competing in the ‘Smoke-Free World’ category, Nigeria’s Team Neon made it to the final stage of the competition, which held during the 2018 Spirit of Innovation Summit at the Kennedy Space Centre, from the 25th to 28th April, 2018.

“Improving extension services in rural Africa is a critical step for

any agricultural change and Team Neon makes a good case for how the Virtual Farm technology will work,” said the Judges of the Challenge.

This is the first time that African farmers will have access to the package, which has a range of technical advice, [and] with the USSD version of the app, it would be a win-win for the team.

Inspired by the team’s outstanding young talents and driven by its passion for innovation, Guaranty

Trust Bank plc, decided to sponsor the young innovators to the finale of the Conrad Challenge.

The Bank’s sponsorship includes, among other benefits, the total coverage of the team’s travel and stay in America.

Guaranty Trust Bank plc has consistently played a leading role in Africa’s banking industry and is regarded by industry watchers as one of Africa’s most innovative financial institutions.

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BUSINESS DAY

Tuesday 01 May 2018

BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

Five impacts of Konga – Yudala merger on e-commerce in Nigeria

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-commerce in Africa has remained a tough nut to crack.

Despite significant optimism of an unprecedented upsurge in global e-commerce spend which is widely expected to gross $4.058 trillion or 14.6 percent of total retail spending by 2020, e-commerce in Nigeria and on the African continent is still largely untapped.

Till date, majority of players in the sector are locked in a battle of attrition in their bid to turn profitable. Many others have lost the battle and quietly exited the scene. The list of such failed ventures is seemingly endless.

Recently, an operational merger between two e-commerce giants, Konga and Yudala was announced – a piece of news that has dominated headlines for the past one week. According to the official announcement released by the management of both companies, the business merger, which takes effect from Tuesday May 1st 2018, will see both companies operate under the Konga brand name and with dual CEOs in the persons of Nick Imudia who will be in charge of online among others and Prince Nnamdi Ekeh who will be responsible for the offline arm of the business.

Founded in 2012, Konga has featured prominently in the news in the past couple of months following its acquisition by Nigerian tech giants, Zinox Group, after months of intense negotiation with the company’s erstwhile majority investors, Naspers and AB Kinnevik.

A merger between Konga and Yudala is a master strategy that undoubtedly has the potential of finally cracking the e-

Ernest Ndukwe, chairman, Open Media Group (m) presenting software company of the year award to David Okeme, chief commercial officer, SystemSpecs (r) , and Oyindamola Olofinlua, lead, content development, SystemSpecs (l) , at the Beacon of Information and Communications Technology (BoICT) awards in Lagos. Pic by Olawale Amoo.

commerce bug in Nigeria and beyond.

Here are five reasons why: Strongest e-commerce force in Africa: The merger between Konga and Yudala has ultimately transformed the new Konga brand into a strong e-commerce group, arguably the biggest on the African continent. By virtue of the shared resources that will naturally benefit the brand from the merger including sheer size, human resources capacity, massive warehousing capabilities, increased reach and wider array of products, services and offerings at its disposal, industry watchers and other experts are unanimous in their position that Konga can finally rise as an e-commerce force that can rival some of the world’s biggest such as Amazon and Alibaba.

Improved customer experience: One of the major obstacles that has prevented e-commerce from taking off in Nigeria is shoddy customer

experience. With Konga and Yudala merging operations, there is renewed hope for the average customer, especially when one considers a fusion of Konga’s world-class online platform and Yudala’s ubiquitous network of physical stores. Both platforms are efficient, highly responsive and respectively best in class in the industry. With this merger, perhaps, the time has come to look forward to a highly improved shopping experience, one that has largely eluded many in the industry.

Cutting-edge Technology: Konga is primarily a technology company, one that has invested heavily in technology and crucially reliant on cutting-edge tech to drive its operations. By merging forces with Yudala, another technology-driven business and leveraging on the huge access to technology at the disposal of its parent company, the Zinox Group, there is a golden oppor-

tunity to improve the ease and convenience of the shopping experience, a factor that has recurrently featured as one of the pain-points of e-commerce.

Through the deployment of technology in automating most of the processes that have previously encumbered shoppers, including products classification, stocking, check-outs, logistics and delivery, among others, a fresh dawn seems imminent for e-commerce in Nigeria. Should the new brand live up to expectations by deploying a predominantly automated, user-friendly range of cutting-edge tech solutions, it will succeed in creating a frictionless e-commerce experience that will set a standard for the continent.

Better logistics/delivery: Many e-commerce companies across Africa leave a lot to be desired when it comes to service level expectations in logistics/delivery. Items take days or even weeks to get to the

final user, even in urban city centres, leading to a situation in which many potential shoppers would rather prefer to visit a physical/brick-and-mortar store to purchase or personally pick-up their items. In Konga Express, Konga boasts an excellent logistics company with advanced delivery capabilities for internal and external customers. Through the expected new investment that will come in through the Yudala merger, shoppers can finally look forward to a more reliable delivery option. Further lending a sense of excitement is the multiple pick-up locations which Yudala’s nationwide network of store locations offers.

Overcoming distrust by cracking mobile payments: Trust remains a major issue that has kept e-commerce in Africa from reaching its muchvaunted potential. A number of potential shoppers are wary of scams, a legitimate concern which prevents many from disclosing their credit/debit card/financial information and buying online. Although Konga announced a ban on payment on delivery (POD) before its acquisition by the Zinox Group, there are possibilities that this policy could be rescinded in the light of the merger with Yudala. Furthermore, through Konga Pay, a CBN-licensed mobile money platform, Konga has a fitting tool with which to crack the mobile payment bug. By positioning Konga Pay prominently as a secure platform and doing the hard work at the back-end to assure online transactions are effortlessly and safely carried out, ecommerce may just be on the verge of exploding in Nigeria and beyond.

StarTimes mobile app delivers free entertainment on the go JUMOKE AKIYODE-LAWANSON

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tarTimes has worked on its mobile application to deliver rich content on news, music, international movies, local content and entertainment in general.

According to Qasim Elegbede, the brand and marketing director, “The StarTimes mobile app comes preloaded with 40 Free channels which include sports channels, entertainment, Hollywood and Nollywood movies, series and lots more and is available for download in the android and iOS app store.”

Elegbede added that “StarTimes subscribers with an active TV subscription are able to register and watch all channels on the app from 2 mobile devices while non-subscribers who download the app can enjoy all the channels at no cost until 12th of June” The StarTimes app already has over close to 2 million downloads since it become available in Nigeria. StarTimes is the leading digital TV operator in Africa, serving nearly 10 million subscribers with a signal covering the whole continent and a distribution network of 200 brand halls, 3,000 convenience stores and 5,000 distributors. The company also owns a featured content platform, with 480 authorized channels consisting of news, movies, series, sports, entertainment, children’s programs etc.

Financial data, more susceptible to cyber attacks - CEO, Arit of Africa JUMOKE AKIYODE-LAWANSON

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onke Okeremi, Managing Director of Arit of Africa, an information technology and communications [ICT] firm in Nigeria, has confirmed that financial data is the most prone to cyberattack in the world and has therefore urged business owners to carry out regular vulnerability assessment on their infrastructure to determine threat areas.

Okeremi described cyberattack as any risk of financial

loss, disruption or damage to the reputation of an organisation, which may arise from some failures of its information technology systems.

While explaining that identity theft has become rampant, she advised organisations that store identity and financial data to “be on the alert”.

Okeremi also identified the importance of information security system, reiterating that what is crucial to all organisations is “to protect their information” and conduct businesses.

“If the United States of

America can be hacked despite its sophisticated global technology fame, then no country is safe.” she said.

Okeremi therefore advised that businesses should engage in frequent and proactive vulnerability assessment on their infrastructure in order to determine threat areas.

“There are solutions that offer early warning threat signals which aims to provide alerts on incoming threats, shutdown and remediate for prevention. These solutions come at a cost to implement but would how-

ever prevent firms to a large extent from cyber-attacks.”

She added that the importance of information security is to protect the companies’ ability to function, enable the safe operation of applications implemented on the organisation’s IT systems, protect the data that establishments’ collect and use, and to safeguard the technology assets in the organisation.

“Information security is crucial to all organizations as it will protect their information and assist them to adequately conduct their busi-

nesses. Information security is defined as the protection of information and the system as well as hardware that use, store and transmit that information,” she said.

Okeremi implored the management of financial and non-financial organisations to improve their levels of cyber security awareness as any organisation can be attacked at some point in time.

“Businesses should carry out frequent and proactive vulnerability assessment on their infrastructure in order to determine threat areas.

There are solutions that of-

fer early warning threat signals which aims to provide alerts on incoming threats, shutdown and remediate for prevention. These come at a cost to implement but would however prevent organisations to a large extent from cyber-attacks.

“It is important for businesses to safeguard sensitive information, services and products. This further protects their internal and thirdparty customers from theft, email-borne viruses, worms, trojans, spyware, malware and phishing attacks”, she advised.

Tuesday 01 May 2018

C002D5556

BUSINESS DAY

27

FEATURE Controlling asthma through support, commitment to healthcare in Nigeria With approximately 15 million Nigerians affected by asthma and the prevalence has been on the rise as a result of increasing air pollution and urbanisation, ANTHONIA OBOKOH writes on the need for effective management and improving awareness of the ailment in Nigeria, as the world celebrates World Asthma Day today.

T

he triggers of asthma have been classified as inducers and inciters; its origin is from the Greek word, “aázein,” meaning

“to pant.”

Asthma is a chronic inflammatory disorder of the airways in which many cells and cellular elements play a role. The chronic inflammation is associated with airway hyper-responsiveness that leads to recurrent episodes of wheezing, breathlessness, chest tightness, and coughing, particularly at night or early in the morning.

Asthma is one of the world’s most common long-term conditions; the disease is estimated to affect as many as 300 million people worldwide, and could increase by another 100 million by the year 2025.

Sadly, the disease is not a respecter of age, sex or ethnicity, as it affects all across the globe. But from recent statistics, it is prevalent among the blacks, the less developed nations than the developed.

The reason may not be far fetched, as the developed nations have advanced in research and development into the ailment, and this is where GSK comes in, to bridge the gap in Africa.

Statistics also show that the ailment is common to men than women from middle to old age.

Meanwhile, as Nigeria joins the rest of the world to celebrate World Asthma Day with the theme “Never too early, Never too late,” asthma is estimated to affect 15 million people in the country, which means almost one in every 15 Nigerians may have the condition.

However, in order to control the disease in Nigeria and leverage adequate infrastructure and resources as well as standard care, to commemorate this year’s World Asthma Day, GlaxoSmithkline Nigeria, in partnership with the Pharmacist Council of Nigeria, has urged Nigerians to address and treat cases of airways diseases as soon as they notice the symptoms rather than wait for the situation to deteriorate.

As in the case of asthma, such early treatment may help in reducing cases of asthmatic attacks, which may sometime become fatal.

This year’s theme is a call to action for both patients and healthcare providers across the globe to adequately examine symptoms of airways diseases such as asthma no matter at what point in human life such symptoms occur, GSK Nigeria says. By doing so, they will have control and the risk of the situation advancing to a critical stage may be minimised.

“As part of its advocacy activities, GSK Nigeria has committed resources into regular and continuous

update of its members and health workers on the management of airways diseases including asthma.

“These enlightenment programmes are very essential to enhance respiratory healthcare. Asthma is a huge burden in Nigeria. With over 15 million Nigerians living with the disease in the country and 235 million worldwide, it is critical that we work together to improve health and better asthma control. From the use of inhalers, vaccines and regular visits to the doctor, serious actions must be taken” according to the company.

Reports indicate that the prevalence of asthma has been on the rise in Nigeria, because of increase in air pollution and urbanisation. Many more people are exposed to polluted air and are thus predisposed to developing asthma.

“We are proud to join people all over the world to mark the World Asthma Day as part of our commitment to improve the quality of human life by helping Nigerians feel better and live longer. As a responsible company,

GSK will continue to identify with and complement government’s efforts to control asthma. We are working at developing vaccines for the treatment of asthma and other ailments, and we are committed to this cause for the benefit of patients and consumers in Nigeria,” the company noted, as it collaborates the pharmacists.

According to the World Health Organisation, people who suffer from asthma suffer from wheezing, breathlessness, chest tightness, and coughing. Although a cure is yet to be identified, the condition can be prevented and controlled.

“Over 80 percent of asthma deaths occur in low and lowermiddle income countries. Asthma is under-diagnosed and undertreated, creating a substantial burden to individuals and families and possibly restricting individuals’ activities for a lifetime,” the WHO says in a report.

However, commending the efforts of GSK Nigeria, Elijah Mohammed, registrar, Pharmacist Council of Nigeria, says, “The Council is

grateful to GSK for their support and commitment to healthcare in Nigeria. We believe that this kind of support is a demonstration of a genuine willingness to ensure that Nigerians are healthy and promote a healthy society.”

In GSK Nigeria, commitment to help the country fight the rising prevalence has shown to ensure that every patient with asthma in Nigeria can breathe easy and live a healthy life.

To this end, the firm has a number of responsibilities - ensuring provision, availability and supply of life-saving asthma medication and devices in Nigeria (doing this for over three decades).

GSK also ensures that they contribute to improving knowledge about asthma and respiratory disease. They supported the Nigeria Thoracic Society (NTS) and other stakeholders in developing, introducing, and disseminating guidelines for the management of asthma in Nigeria, for the first time.

So that every physician will be able to diagnose, manage and treat asthma better and also partnered with educational organisations to train over 2,000 healthcare professionals on asthma management.

The organisation therefore has continued to sponsor healthcare professionals to medical and scientific conferences.

It says it will continues to invest in research and development to ensure every patient living with asthma can breathe easy and have a healthy life.

How to prevent asthma A person with asthma should avoid eating or breathing things that bring on attacks. The house or workplace should be kept clean. Keep chickens and other animals outside.

Air bedding in the sunshine sometimes it helps to sleep outside in the open air. Drink at least eight glasses of water each day to keep the mucus loose.

Avoid areas where people smoke: Breathing smoke - even secondhand smoke and smoke on clothing,

furniture or drapes - can trigger an attack. Be sure to ask for a smokefree hotel room when travelling.

Avoid harsh cleaning products, chemicals and inhaling fumes at home, and prevents exposure away from home as much as possible; fumes from household cleaners can trigger asthma.

Reduce stress: Intense emotions and worry often worsen asthma symptoms. So, take steps to relieve stress in your life. Make time for things you enjoy doing - and for relaxation.

Pay attention to air quality: Extremely hot and humid weather and poor air quality can exacerbate asthma symptoms for many people.

Limit outdoor activity when these conditions exist or a pollution alert has been issued.

Exercise indoors: Physical activity is important - even for people with asthma. Reduce the risk for exercise-induced asthma attacks by working out inside on very cold or very warm days. Talk to your doctor about asthma and exercise.

Take control of your seasonal allergies: Allergies and asthma are closely related, so talk to your doctor if you have hay fever. Use medications as directed and stay inside as much as possible when pollen counts are high.

Make sure people around you know you have asthma: It is important for family members, friends, co-workers, teachers, and coaches to be able to recognise symptoms of an asthma attack - and know what to do if one occurs.

Keep quick-relief asthma medicines readily available: Follow policies at your child’s school to make sure he or she is allowed to carry an inhaler and any other emergency rescue medications that may be necessary. Make sure the school nurse knows your child has asthma.

Treatment for asthma Asthma treatment can vary from anti-inflammatory and bronchodilator asthma inhalers to oral medications to asthma drugs delivered in an asthma nebulizer or breathing machine. Get a better understanding of how asthma medications work so you will know which medications can prevent asthma symptoms.

Also, learn about natural asthma remedies and ways to monitor your breathing at home.

The types and doses of asthma medications you need depend on your age, your symptoms, and the severity of your asthma and medication side effects.

Because your asthma can change over time, work closely with your doctor to track your symptoms and adjust your asthma medications, if needed.

28

BUSINESS DAY

Tuesday 01 May 2018

INTERVIEW

‘Hennessy’s success comes from listening to what consumers want’ Roch Hennessy, head of business development in China, for Hennessy was in Nigeria recently to mark the 200 years anniversary of Hennessy VSOP (Very Superior Old Pale). The Hennessy VSOP Privilege Cognac is one of the 22 brands of the company and perhaps the most popular in the emerging markets. It was first launched in 1818 and it is gradual blend of about 60 eau de vie taken from the Cognac region, in France.

Roch had a chat with BusinessDay’s Frank Eleanya over the growth of the brand in the Nigerian market and what it took the company to build its very popular cognac.

Tells us about your journey so far with the Hennessy brand have different passions. I have worked in aviation and in luxury goods as well for other brands. I was given a specific role when I started working with Hennessy, the role of business developer in China and other commercial strategic parts in the country. So I am not an ambassador like Maurice is. I am doing something different and it is really unique that we are here, the both of us. It is not my job to go travel around the world.

came with storms. We are hoping that 2018 will be a really good year.

But you can never know until late May and beginning of June.

I

You recently launched a new plant in Southwest France to serve demand in the US and China, how far has it gone to help improve the problem of logistics?

Hennessy invests a lot in its production and quality control capacities.

Just in October 2017, we opened up a new plant which is a state of the art bottling plant. That plant will help us achieve the objective of 10 million cases worldwide. The plant currently is working a full capacity because we put everything up to speed. The idea is to produce the cognac to supply the demand in the US, Asia and new markets like Africa.

We gave ourselves a tool to achieve our target. In terms of logistics, everything is state-of-the-art.

There are robots deployed at the factory and a lot of people to maintain the robots and control what they are doing. Everything is mostly done automatically in the factory. It does optimise our production. It is important especially when you have a big target and a big goal, you need to give yourself the means to make them happen.

The Hennessy legacy was handed down to you and Morris by the earlier generation. Do you often feel the weight of history with regards to passing it on to other generations?

The history is really amazing, from 1765 the founding of the company

by Richard Hennessy. First it was a family business, now it is not a family business anymore. There was a merger recently with the world’s largest luxury goods company – Louis Vuitton. So it just happens that we are two members of the Hennessy family working for Hennessy and doing different things. But it is true that it is a thing of pride and a responsibility because we know

You have about 22 products in the market, what informs the decision for a new product?

We have had different formats of bottle and brands like VS, and VSOP. VS stands for Very Special while VSOP is from Very Superior Old Pale. We are not present with the entire range in a particular market.

And we do not tell consumers what to drink. If we find in any market there is no need to launch the product there, we do not. It is really about what the market demands. It is a key insight for success, to identify what the consumer likes and what the consumer wants and not what it needs. We adapt our response to this intelligence. We are not present with all the products everywhere.

Roch Hennessy

we carry the name. We want to give the best to the company. We want the company to prosper and we want the people that work for the company to prosper as well. We also want the entire region of Cognac to prosper too. It is definitely with great sense of responsibility, pride and involvement that we do our work. The history is something we do not want to stop, we want to always celebrate.

How well have you combined tradition and latest developments in technology to move the business ahead?

Cognac is dealing with something that comes from the earth, something very traditional that people have been making for centuries.

They have been making it with a specific know-how or skills and technique. On the modernity side, it is how we can help the traditional side to evolve and still retain its high value. For instance, you are talking of keeping a library of eau de vie data so that our master blenders can use. They have been using this big data forever. Now everything is

on the computer and on cloud. That is a good interaction with modern technology. it is the same thing with the stock and inventory and a lot of other things. It always has to be the service of tradition and quality.

How are you contending with the emergence of new markets?

Everything depends on Mother Nature. We are fortunate to have the oldest and largest stock of eau de vie.

We have more than 400,000 barrels

The secret to have longevity of brands is to provide a specific answer to a need in the market

of eau de vie, some of them are aging because they are still going to be used in the future. Some of them are being used right now. So we have the necessary tool. But we cannot guarantee – again we are dealing with Mother Nature. We are prepared with the best of our abilities right now, with the current climate, production and stock. Nobody really can tell what the future is going to be. I can check my phone and see a message telling me that there was a big thunder storm and I lost 20 percent of my production. What can I do about it? There is so much we can do. We have to continue to make people appreciate how special Cognac is.

What is the best way to check disasters in production?

You need to think about two things, you need to produce and keep for later as well. Do not get me wrong, we have had some amazing years.

2015 was one of them. We had a record production, it was amazing.

But 2016 had this hailstorm that was horrible – the same with 2017 which

Has there been a market that did not accept any range of your products?

Every country we have been, we were able to first identify a need. We gauge what the interest is in every market. In some markets, some consumers do not like premium spirits, they may like white spirits or beer or something else. We are really humble to not go there. But for countries like Nigeria where there is a real appetite and interest for premium brand spirits especially Hennessy, we are happy to oblige.

We invest and go in.

What goes into building a successful product like Hennessy VSOP from 1818 to 2018?

First it is a need. It was a special order from a king’s region - the King of England. At the time, the end of 19th century there was a need for the product. The King demanded for the VSOP because he wanted it in his collection. The market demanded for the VSOP Cognac. Hence the secret to have longevity of brands is to provide a specific answer to a need in the market. You have to give what the consumer wants. Add quality in the forefront. We have also been very involved with the brand. We have a new tasting platform with ice cubes and mixing it with soft drinks too after cocktails. But if we had left it to be drank in the old school style of drink and cigar, I think it would have died.

Tuesday 01 May 2018

C002D5556

Fidelity Bank profits soar 94% as PBT tops N20bn in 2017 FY ...proposes dividend of 11k per share BALA AUGIE

F

idelity Bank Plc has delivered another set of strong financial results; posting a 94 percent growth in profits for the year ended December 31, 2017 and is proposing to pay 11 kobo dividend to shareholders.

Details of the full year audited results for the top Nigerian lender, released on Monday at the Nigerian Stock Exchange (NSE), shows impressive growth in all key indices.

The performance capped a remarkable 2017 FY for the bank which returned to the international capital markets and successfully issued a $400m Eurobond that was over-subscribed by over 200 percent.

Gross Earnings grew by 18.3 percent to N179.9 bn from N152.0bn in 2016, whilst Profit after Tax (PAT) surged by 93.7 percent to N18.9 bn compared with N9.7bn recorded in the previous year. Net Interest Income (NIM) increased by 15.4 percent to N71.5bn in 2017, Net Operating Income rose by 9.9 percent from N86.0bn to N78.3bn whilst Total Assets grew by 6.2 percent from N1.3trillion to N1.4 trillion in the period under review.

In other indices, Total Expenses declined by 2.3 percent to N65.7bn from N67.2bn whilst Liquidity Ratio stood at 35.9 percent compared with 33.2 percent in the previous year.

Commenting on the results, Fidelity Bank CEO, Nnamdi Okonkwo expressed delight with the performance.

According to him, the Bank sustained its performance through disciplined balance sheet management, strategic cost reduction, increased focus on the corporate, com-

mercial, SME segments and continued execution of its retail and digital banking strategy.

“We are delighted at the results, which showed strong growth in key revenue lines, significant traction in our chosen business segments and a corresponding decline in our operating expenses despite the high inflationary environment,” he stated.

According to him, the implementation of initiatives from its Business Process Review Project and the Bank’s digital focus, continued to impact positively on operational efficiency as “total operating expenses declined by 2.3% to N65.7 billion leading to the cost-income ratio dropping to 67.5% from 77.3% in the 2016FY. The combination of the strong net revenue growth of 9.9% to N7.7 billion and the 2.3% decline in total expenses which translated to cost savings of N1.5 billion resulted in our increased profitability.”

Increased digitization has resulted to over 25 percent of the Bank’s fee-based income as customers’ adoption of its mobile/internet platforms improved to 35 percent in the 2017FY and led to a 21.0 percent reduction in vault cash holding.

Similarly the Bank’s retail banking strategy continued to deliver good results. Savings Deposits grew by 15.2 percent to N178.6bn, accounting for 23 percent of total deposits from 19.5 percent in the 2016FY. This has improved the Bank’s low-cost deposits ratio to 77 percent of total deposits.

Fidelity Bank is a fullfledged commercial bank operating in Nigeria, with over 3.8 million customers who are serviced across its 240 business offices and various other digital banking channels.

Glo hails Nigerian workers on May Day

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otal telecommunications service provider, Globacom has felicitated with Nigerian workers, describing them as “pivotal to the sustenance of the Nigerian economy owing to their resilience, diligence and steadfastness”.

The commendation was contained in a congratulatory message from its head office in Lagos in commemoration of this year’s International Workers’ Day, the theme of which is “Uniting Workers for Social and Economic Advancement”.

The telecommunications giant admonished them to redouble their efforts and sustain their dedication to duty at all time, while advising them not to relent in contributing their quota to the cause of building a strong work culture that will produce world-class

products and services in Nigeria.

While seizing the opportunity to eulogize the Nigerian workforce, Globacom acknowledged their doggedness and avowed commitment to productivity in spite of the daunting challenges confronting them daily.

According to the company, “the flexible and dependable Nigerian work force had been the back bone of the nation’s economy over the years and has contributed immensely to the development of the vibrant telecommunications sector that we have today.”

International Workers’ Day is promoted by the International Labour Movement and celebrated annually throughout the world in recognition of the immense contributions of workers to the economic growth of countries.

29 NEWS

BUSINESS DAY

New minimum wage will be ready by Q3 - Labour KEHINDE AKINTOLA, Abuja

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head of the 2018 May Day celebration, the leadership of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) expressed optimism that the new national minimum wage would be operational by the end of third quarter (Q3) of 2018.

The two labour centres expressed the optimism at the pre-May Day press briefing held in Abuja. There is overwhelming evidence to show that the living conditions of Nigerian workers and citizens have deteriorated in the past few years.

“To worsen the precarious condition that we workers have found ourselves is the absence if meaningful social

cushioning especially by way of decent wages and dignified and working conditions.

“Even, the minimum wage promised by government is yet to materialize. The broader audience economic and political dynamics in our country continue to tempt many workers to lose faith and hope in the Nigerian promise.

“It is under these many dark clouds that we seek to inspire strength, confidence and hope in Nigerian workers and ordinary citizens who currently feel short-changed,” Najeem Yasin, deputy NLC president said.

On his part, Amodu Olayinka, co-chair of 2018 May Day Committee who spoke on behalf of TUC noted that all the parties involved in the negotiation had agreed

on the timetable for the new minimum wage.

He however noted that the organized labour gave ample time of three years to the present administration to overcome the challenged inherited, as a sign of understanding.

While noting that minimum wage is not an award, he vowed that the organised labour would resist any attempt to impose the minimum wage on Nigerian workers.

He however noted that beyond placard carrying, the organized labour movement will engage in constructive engagement with government in the bid to fund amicable solution to various agitations.

The Committee disclosed that the leadership of both

Labour Centers have continued to engage with the Presidency, National Assembly as well as other stakeholders on the issue of national minimum wage, stressing that the N66,500 proposal was agreed upon by relevant stakeholders within the labour sector.

According to the Committee, the current salary structure, which led to the consolidated minimum wage, was fallout of the monetisation policy under the former President Olusegun Obasanjo’s administration.

The Committee also noted that the five-year review of national minimum wage was canvassed by the organized labour, adding that the 2017 May Day celebration, which was interrupted by protest, was due to non-payment of monthly salaries.

L-R: Timi Dakolo; Bishop Isaac Idahosa, his wife, Christie Idahosa; Chinedu Ikedieze, and Segun Arinze, at the celebration of 26th wedding anniversary of the Idahosas at Illumination Assembly, Addo Road, Ajah, Lekki, Lagos.

Manufacturing PMI maintains faster growth at 56.9 index in April - CBN HOPE MOSES-ASHIKE

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anufacturing and non-manufacturing Purchasing Managers Index (PMI) continued to expand on a faster rate in the month of April, according to the Central Bank of Nigeria (CBN).

The breakdown of the PMI shows that the manufacturing index grew for 13 consecutive months to 56.9 index point in April, from 56.7 index point in the preceding month of March.

For the non-manufacturing sector, the PMI rose

to 57.5 index point in the month of April from 57.2 index point in the month of March.

The report reveals that Supplier delivery time, employment level and inventories growing at a faster rate; production level and new orders grew at a slower rate in April 2018.

The PMI report released on Monday by the CBN shows that 12 out of 15 subsectors reported growth in the review month. The subsectors include Petroleum and coal products, Electrical equipment, Appliances and components, Printing and related support activities,

Textile apparel leather and footwear, Fabricated metal products, Chemical and pharmaceutical products, Food, beverage and tobacco products, Paper products, Furniture and related products, Plastics and rubber products, Transportation equipment.

The Cement sub-sector remained unchanged, while the Non-metallic minerals and Primary metal subsectors declined in the review month.

At 58.6 points, the production level index for the manufacturing sector grew for the fourteenth consecutive month in April 2018.

The index indicated a slower growth in the current month, when compared with its level in the preceding month.

The Manufacturing sector inventories index grew for the thirteenth consecutive month in April 2018. At 59.5 points, the index grew at a faster rate when compared with its level in the previous month.

At 58.8 points, the business activity index grew for the thirteenth consecutive month, indicating expansion in business activity in April 2018. The index grew at a faster rate when compared with its level in the previous month.

30

BUSINESS DAY

C002D5556

Tuesday 01 May 2018

Live @ The Stock Exchange Top Gainers/Losers as at Monday 30 April 2018 GAINERS

LOSERS

Company

Opening

Closing

Change

BETAGLAS

N75.5

N79.25

3.75

JBERGER

N26.9

N28.05

1.15

DANGCEM

N245

N246

CCNN

N19.5 N44.35

GUARANTY

Market Statistics as at Monday 30 April 2018

Company

Opening

Closing

Change

NESTLE

N1615

N1599

-16

DANGSUGAR

N21.4

N20.5

-0.9

1

DANGFLOUR

N14

N13.3

-0.7

VOLUME (Numbers)

N20.45

0.95

FLOURMILL

N35.2

N34.5

-0.7

VALUE (N billion)

N45

0.65

TOTAL

N222.6

N222.2

-0.4

MARKET CAP (N Trn

ASI (Points) DEALS (Numbers)

C&I Leasing grows Q1’18 profit by 37.7% to N373m

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L– R: Oluwole Cole, CON, vice president, Lagos Chamber of Commerce & Industry (LCCI); Nike Akande, CON, immediate past president, LCCI; Oscar N. Onyema, OON, chief executive officer, The Nigerian Stock Exchange (NSE); Babatunde Ruwase, FCA, president, LCCI; Toke Mabogunje, deputy president, LCCI; Muda Yusuf, director general, LCCI and Pai Gamde, chief Human Resources, NSE during the Closing Gong ceremony in honour of the new president of LCCI at The Exchange.

of 8.7percent year-on-year (March 2017: N2.1 billion).

In the review quarter, C&I Leasing total assets stood at N46.6 billion, up 3.7percent year-to-date (December 2017: N45billion); operating lease assets of N27.8 billion, represents 2.2percent increase yearon-year (December 2017: N27.2 billion); while the group shareholders’ funds rose to N9.6 billion, an increase of 6percent year-onyear (December 2017: N9.1

billion).

Commenting on the results, the MD/CEO of C&I Leasing Plc, Andrew OtikeOdibi said: “We delivered a credible performance with a gross earnings growth of 6.3percent to N6.5 billion, while profit before tax grew by 32.7percent to N405.8 million. This was achieved through a combination of cost optimisation measures, more efficient utilisation of assets and heightened focus on our ‘efficient

productivity’ agenda.

“We sustained growth opportunities across the three major lines of the business. The drop in our net operating income year-on-year (y-o-y), was primarily driven by the increase in lease asset expenses resulting from the hire of a third-party vessel to substitute one of our own which was undergoing maintenance. This has been completed and the vessel is back in operation.”

Guinness Nigeria Q3 revenue increases by 17% to N105bn

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uinness Nigeria Plc has released its results for the nine month period ended March 31, 2018.

The results at the Nigerian Stock Exchange (NSE) show 17percent year-on-year (yoy) growth in revenue to N105billion. The results also showed a 14percent growth in volume when compared to the same period last year.

“Against the backdrop of a challenging business environment as well as a slow and uneven economic recovery, we have delivered a positive performance with Net Sales of N105billion for the period mainly driven by the volume growth”, said Peter Ndegwa, managing director, Guinness Nigeria Plc. “Over the period, we continued the robust implementation of our strategy

4,699.00 450,527,442.00 4.958 14.948

Adekoje elected CIS’ president ... As Abe announces scholarship for journalists

T

Stories by Iheanyi Nwachukwu &I Leasing Plc on Monday announced its unaudited results for the period ended March 31, 2018.

The group gross earnings increased to N6.5 billion, up 6.3percent year-on-year (March 2017: N6.1 billion); while lease rental income of N4.4 billion, up 6.1percent year-on-year (March 2017: N4.1 billion).

Profit before tax (PBT) of N405.8million, represents 32.7percent year-on-year growth against March 2017 level of N305.7 million. Profit after tax of N373 million, up 37.7percent year-onyear (March 2017: N270.8 million); while Basic earnings per share of 23.1 kobo, shows increase by 37.9percent year-on-year (March 2017: 16.75 kobo).

C&I leasing personnel outsourcing income increased by 4.2percent to N1.63 billion year-on-year (March 2017: N1.57 billion); lease rental expense grew by 38.8percent to N2.0 billion year-on-year (March 2017: N1.5 billion); while Net operating income of N1.9 billion represents a decline

41,268.01

around our product portfolio, offering Nigerians quality brands across a broad range of occasions, from nonalcoholic to beer and spirits – we remain the first and only Total Beverage Alcohol Company in Nigeria. We also continued to focus on driving our productivity agenda, improving effectiveness and delivering efficiencies across our operations which partially mitigated the impact of high input inflation in the quarter,” Ndegwa stated.

Administrative expenses reduced by 25percent as a result of an increased focus on cost management while distribution expenses reduced by 11percent driven by productivity initiatives such as improved truck utilisation and better truck turnaround. Marketing expenses increased by 16percent as Guinness Nigeria continued to invest behind its brands over the period.

“We believe that our

strategy and particularly the commercial execution are now yielding the desired outcomes. We will continue to focus on our strategy to deliver an improved performance in a challenging operating environment compounded by impending significant increases in taxes,” Ndegwa added.

Guinness Nigeria has over six decades of history in the Nigerian market and is a subsidiary of international drinks giant, Diageo Plc. Products from the company’s portfolio include iconic brands like Guinness Foreign Extra Stout, Malta Guinness and Orijin. In 2016, the company acquired the rights to distribute International Premium Spirits (IPS) brands like Johnnie Walker, Captain Morgan, Baileys and Cîroc amongst others.

he Governing Council of the Chartered Institute of Stockbrokers (CIS) has elected Adedapo Adekoje, the First Vice President as the Institute’s President as Oluwaseyi Abe retires after meritorious service with stellar achievements.

Besides, the outgoing President, Abe has announced the Council’s approval of scholarship for the Capital Market Correspondents to pursue a career in Investment and Securities Market to enhance their reportage of capital market activities.

Adekoje’s election was endorsed by the Council at a closed- door meeting immediately after the Institute’s Annual General Meeting (AGM) at The Nigerian Stock Exchange at the weekend.

The election was in line with the Institute’s seamless succession plan whereby the First Vice President emerges the president. By the latest structure, Tunde Amolegbe has emerged the First Vice President while Wole Adeosun has been duly elected the Second Vice President.

Adekoje, a fellow of CIS and Chief Executive Officer, Professional Stockbrokers is a multi-talented executive with cognate experience, spanning management, finance, sales and marketing. Armed with a Master’s Degree in Management from the prestigious University of Hull, United Kingdom, Adekoje has held several management positions both in Nigeria and abroad.

Prior to his election at the weekend, Adekoje has held several positions at the Institute, including head, Membership Committee among others.

Announcing the Schorlarship for the Capital Market Correspondents, Abe explained that the Nigeria’s Capital market had been on the global map over the years and the role of the financial Press cannot be underestimated.

According to him, the market is dynamic and there is a need to empower the press by ensuring that our Capital Market Correspondents understand the dynamics of the market for professional reportage of the market. He stated that details of the award including specialized training and provision of course materials

Adedapo Adekoje, president, Council of the Chartered Institute of Stockbrokers

would be worked out by the Secretariat and the Institute’s Media Consultant in a due course.

The Council commended Abe whose administration has raised the bar for the Professional Body in all performance indicators. A statement signed by the Institute’s Secretary to Council and Chief Executive, Adedeji Ajadi captures some of the major achievements during Abe’s tenure: “Council’s approval of conferment of Honorary Fellowship for four eminent Nigerians for the first time in the history of the Institute, acquisition of befitting secretariat of the Institute and introduction of Specialized Professional Certification (SPC) “ Others are increased awareness through ‘‘Operation Catch them Young’ by partnering with tertiary institutions, significant improvement in members’ participation in the Institute’s functions, an indication of renewed confidence, returning the Institute to profitability, re-launch of Nigerian Stockbroker Magazine for enhanced professionalism and award of scholarship for Capital Market Correspondents for deeper knowledge of capital market operations among others.” Ajadi said Addressing the members during the AGM, Abe expressed optimism that the Institute would improve in its performance this year.

“We believe that 2018 holds promises for improved operating performance, given the renewed interest in the securities dealing profession arising from the 2017 performance of The Nigerian capital markets, and a reinforcement of our strategies to widen membership and student base.

Tuesday 01 May 2018

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Politics & Policy

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BUSINESS DAY

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Lagos APC Coalition demands zoning of chairmanship position INIOBONG IWOK

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Coalition of Progressives in the All Progressives Congress (APC) in Lagos State has demanded the rotation of the chairmanship of the party in the state among the senatorial zones.

The coalition said it was mandatory that incumbent Chairman, Henry Ajomale, steps aside after fourteen years in the saddle, adding that there was a need for a change in the system not only in the interest of fair play, but in order to inject new blood into leadership of the party.

In a statement to newsmen signed by Taoridi Jinadu Akapo, president of the coalition, the coalition said the state was divided into various political divisions, stressing that appointments and political sharing formula were not shared equally among the zones but only concentrated in a zone.

“Lagos State is a state of extraordinary diversity and as such, one of extraordinary complexities. These complexities are a reflection of the avalanche of ethnocultural and socio-political groups co-habiting the territory and the intricacies of interaction among them.

“Indeed, Nigeria’s adventure into pluralism of religious and ethnic diversities owes its origin to colonial conquest which permeated the entire continent of Af-

L-R: Oyo State Governor, Abiola Ajimobi; Speaker, Osun State House of Assembly, Najeem Salaam; and Speaker, Ondo State House of Assembly, Bamidele Oleyelogun, during a condolence visit by the Southwest Assembly speakers to the governor on the death of the Speaker of Oyo State House of Assembly, Michael Adeyemo, at the Government House, Agodi, Ibadan... on Sunday. Photo: Governor’s Office.

rica, began from the Lagos Colony which is presently known and called either Lagos Division or Lagos Senatorial District.

“But it must be stated here that with the advent of the 1999 political formation, there has been a profound change in the practice of party politics in the state in the sense that the system has been practised in an awkward manner and this

has called into question the manner of a lopsided power sharing/representation formula. What are the future hopes for politically stability, when the most prosperous part is being relegated into obscurity and odium?” the statement said.

The coalition urged the national leader of the party, Bola Tinubu, to intervene and restore fair play in the APC in the state, while back-

PDP strategises on capturing Southwest …To host mega rally in Osun INIOBONG IWOK

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head of the 2019 general election, the People’s Democratic Party (PDP) is strategising on capturing the Southwest, this, the party aims to achieve by staging a mega rally in Osogbo, Osun State, this Saturday.

Speaking to newsmen in Lagos on the planned mega rally, Chairman of PDP in Lagos State, Moshood Salvador, who also doubles as the head of publicity for the event, revealed that the rally was intended for the party to show its strength in the region and mobilise its members across the South-West states, especially as the Osun and Ekiti gubernatorial elections approach.

Salvador said that the party would also use the rally to strategise ahead of the forth coming 2019 general election, while educating its members on the current voter registration exercise.

He said the party was con-

Moshood Salvador

fident it would win the Osun and Ekiti gubernatorial elections, stressing that recent senatorial election in Osun State won by the PDP candidate, had shown that the people were tired of APC in the state.

“We are set to host a mega rally this Saturday and I can tell you, it would be attended by our members across the states in the southwest. Apart from testing and showing our strength as a popular party in the zone, we will use the rally to strategise ahead of the general election,” he said.

Moreover, the rally would provide an opportunity to educate and enlighten the electorates who have not picked up their permanent voters’ cards (PVCs) to do so and guard their votes during the forth-coming elections.

ing the call for the National Chairman of the party headed by John Odigie-Oyegun not to seek re-election in the forth-coming national convention of the party.

The coalition however, cautioned the national leader of the party on his message that some individuals in the party should not contest in the state congress of the party, stressing that if not checked it could affect the

unity of members, and the chances of the party in the 2019 general election.

“Why should Asiwaju unilaterally make a proclamation to stop some people from aspiring to positions in the party and asking others to do so? Are there some set of rules for some aspirants and another for others? Or is this a signal of what to come in the next few months?”, the coalition further stated.

Tuesday 01 May 2018

Oyo Speaker to be buried Thursday AKINREMI FEYISIPO, Ibadan

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yo State Government has announced that the Speaker of the State House of Assembly, Adesina Micheal Adeyemo, will be buried at his residence in Lanlate Area of the state on Thursday, May 3, 2018.

The State Commissioner for Information, Culture and Tourism, Toye Arulogun said that the Service of Songs for Adeyemo, who died on Friday, April 27, 2018 after a brief illness, will hold on Wednesday, May 2 at Oke Ado Baptist Church, Oke Ado Ibadan by 4pm.

He said that there would be a Special Session and Lyingin-State at the House of Assembly Complex on Thursday by 8am and the Motorcade leaves for Lanlate thereafter for the Funeral Service at New Garage Park, Lanlate Oyo State by 12noon.

Adeyemo, the Speaker of the 8thAssembly , represented the Ibarapa East State Constituency in the State House of Assembly, was sworn in as Speaker of the State House of Assembly on June 12, 2015.

Prior to his position as Speaker, he was Deputy Chief Whip of the House, member of Fund Allocation, Works and Transport, Agriculture, Trade and Investment, Appropriation and Public Finance committees of the 7th House of Assembly.

The late Speaker was the Vice Chairman of the Nigerian Conference of Speakers and also the Chairman of the Constitution Review Committee, among Speakers of the States’ Houses of Assembly.

Minimum wage: Ekiti advocates allocation formula review AKINREMI FEYISIPO, Ibadan

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kiti State Government has called for a review of the current Revenue Allocation Formula in favour of the lower levels of government to enable them cope with the eventuality of increase in minimum wage.

Speaking in Ibadan at the presentation of a memorandum on the proposed new minimum wage to the Tripartite committee on national minimum wage, Ayodele Fayose, the state governor, stated that the clamour for increase in minimum wage cannot be ignored, especially as the

increase in prices of goods and services has worsened the standard of living of the average Nigerian worker.

Fayose, who was represented by the State Head of Service, Olugbenga Faseluka, noted that the current revenue allocation formula has becomeinequitable to support the needs of lower tiers of government.

“As at the time the present minimum wage came into effect, for instance, the price of Premium Motor Spirit was N65 per litre which was later increased to N145 per litre in 2016.

The increase has aggravated or triggered increase in prices of other goods and services thereby compounding the already chal-

lenged standard of living of the average Nigerian worker,” he said.

While noting that the current minimum wage of N18,000 has become unrealistic and inadequate to support basic standards of living, the governor affirmed the need to increase t h e p re s e nt m i n i m u m wage but same should be premised on the ability of employers to pay.

According to the memorandum, Ekiti State government proposed a new formula that would see the Federal Government getting 30percent ; state governments 40percent ; local government councils 25percent and 5percent reserved for others.

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34 BUSINESS DAY NEWS Why power projects in Nigeria, others fail to...

Continued from page 4

among West African countries that benefit from economies of scale and encourage integrated power trade in the region.

The World Bank estimates that this model could lead to cost savings of US$5-8 billion per year by enabling countries to import cheaper sources of electricity and increase access to affordable, reliable and modern energy, and reduce CO2 emission intensity.

Through the West Africa Power Pool (WAPP), a cooperation of 14 countries–Benin, Burkina Faso, Cote d’Ivoire, the Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo– with 27 national electricity utilities, has plans to develop an integrated regional power market.

“Currently WAPP is completing the physical interconnections to send power across borders. About 7 percent of the region’s electricity is already traded among the 10 already connected countries. It is antici-

pated that by early 2020s the most critical cross-border links will be in place, making it possible for electricity to flow throughout West Africa from countries with cheaper, cleaner and more abundant energy resources to those lacking them,” says the World Bank.

Africa is only beginning to articulate a trade policy.

On March 21, the African Continental Free Trade Area (CFTA) agreement was signed by 44 countries, committing them to remove tariffs on 90 percent of imports. This is expected to improve intra-regional trade which stands at 20 percent in Africa versus 62 percent between advanced economies.

“Compared with other regions of the world, trade between African countries is low because several countries export the same goods, unprocessed commodities, which preclude the need to trade with each other. But things are changing and intra-regional trade is expanding,” says Yvonne

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Mhango Sub-Saharan Africa Economist Renaissance Capital, in a note sent to BusinessDay. According to the World Bank, integration of electricity grids will improve overall reliability and make electricity more affordable simply by allowing all countries to benefit from least-costly resources available in the region. It will also make power generation more sustainable by displacing base load oil-fired power generation with cleaner sources of electricity such as natural gas, solar, and hydropower.

However to achieve this, countries would contend with the complexity of the WAPP power market which creates new political and technical challenges that will need to be addressed.

“A well-functioning regional power market requires not only the right infrastructure, but also strong collaboration among policy makers, regulators, and utilities, at the national and regional level. It also calls for simultaneous policy, regulatory, and institutional steps. Trading institutions and stronger com-

L-R: Olusegun Ojo, director-general, National Agricultural Seed Council; Audu Ogbeh, minister, Federal Ministry of Agriculture and Rural Development; Kola Masha managing director/CEO, Babban Gona, and Onyeka Akumah, co-founder/CEO, Farm Crowdy, at the BusinessDay Agribusiness Food and Security Summit 2018 in Lagos.

Nigeria desperately needs a modern rail, but why is...

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ization of the country’s narrow gauge rail network.

The agreement is only for the initial phase of the concession of Nigeria’s Western and Eastern rail network.

It has been in the making for nearly twelve months and it finally happened only because the visit of President Muhammadu Buhari to Washington provided an opportunity to bring the protracted negotiations to a close so a major dividend can be presented for the presidential summit.

The idea of revamping Nigeria’s decrepit rail system was first mooted ten years ago but the agreement signed in Washington DC at the weekend may eventually signal the commencement of the upgrading and optimization of the 3,500 kilometres of dilapidated narrow gauge rail track that has been managed by some of Nigeria’s inept and poorly trained Railway Corporation technocrats and distracted and compromised masters.

If it goes well, the interim agreement will, according to FGN’s

plans, promote faster movement of passengers and goods across the country and lead to a better quality of life for its citizens.

The government of Goodluck Jonathan first initiated the idea of revamping the rail system in 2009 when it requested GE for help with the supply and maintenance of 100 locomotives to the moribund Nigeria Railway Corporation.

However, because the corporation did not have the funds or the capacity to take on that large order, that order was reduced to 25 locomotives, supplied in 2010.

Virtually all those locomotives are dead today because Nigeria failed to sign a maintenance agreement for the 25 locomotives.

The federal government also due to lack of capacity and demand had towalkaway fromajoint venture with GE to build locomotives in Nigeria.

Government officials told BusinessDay that when the former Chairman/CEO of GE Jeff Immelt visited Buhari in February 2016, the president asked what GE could do to help bring life back to Nigeria’s rail system.

The federal government subsequently decided to concession the

rail system via a bid process which GE and its partners later won.

A letter of award was given to GE by the government in May 2017.

As part of the procurement process managed by the Ministry of Transportation and the Infrastructure Concession and Regulatory Commission, ICRC, the government recognizing that the negotiation process will take a lot of time and seeking results during its first term, opened the way for the prospective concessionaire to undertake an interim phase.

This interim operation is meant to immediately increase train frequencies on both the Western and Eastern lines.

For more than 100 years, the building and upgrading of Nigeria’s rail network has been bedevilled by corruption, abuse of office, intrigues and ineptitude on the part of government officials.

The first attempt at building a rail line in Nigeria began in 1915 with the Western line.

Laying of tracks for the Eastern line began a few years later and which first ran from Port Harcourt to Jos but the late Prime Minister Tafawa Balewa promoted the extension of the line up to Maiduguri when

Tuesday 01 May 2018

Banks net fee income hits N418.52bn as...

Continued from page 1

year of 2016, BusinessDay investigation show.

This comes as customers continue to groan under what they refer to as excess charges by lenders.

Fees and commissions revenue also constitutes bank charges such as account maintenance fees, stamp duty, commission on turnover (COT) and SMS alerts, among others.

A tier one bank with total asset size of N4.10 trillion as of 2017 made N6.45 billion from account maintenance charges and handling commission in full financial year ended December 2017, indicating a 147.12 percent increase from N2.61 billion in 2016.

Another systemically important bank recorded a 64.32 percent increase in account maintenance fee to N27.7 billion in full year 2017 financial result compared to N16.9 billion recorded in the previous year.

Nigeria’s second largest bank by total asset earned N24.98 billion from electronic banking fees in 2017, which was an increase of 14.43 percent compared to N21.83 billion in 2016, data from the annual report of the company revealed.

However, its account maintenance fee declined to N6.69 billion in 2017 from N15.62 billion in 2016.

BusinessDay visited some traders who transact millions of naira worth of business and they complained bitterly about excess charges and threatened to close their accounts if such deductions continue.

“If it is a crime to operate current account, they should let us know,” Eruba Rapheal, a tier two bank customer who deals in Christian bibles and books told BusinessDay. Rapheal showed BusinessDay the alerts he receives from his bank twice weekly, which reads: “under charge Cenbank Comm September 2017”. The alert was sent to him on April 23, 2018 and the charge was N100.

The Central Bank of Nigeria (CBN) stated in the Guide to Bank

Charges circular to all banks and other financial institutions that current account maintenance fees are negotiable subject to a maximum of N1 per million.

The circular allows banks to charge N50 monthly as debit/ credit card maintenance fee.

The circular explained that Current Account Maintenance Fee (CAMF) is applicable to current accounts only in respect of customerinduced debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank. However, the CAMF is not applicable to Savings Accounts.

“It is unfortunate that what attracted me to my Bank has long been eroded. I operate a savings and current accounts with the bank, although I have other bank accounts but the arbitrary deductions from my current account are very alarming. I have paid several visit to the Apapa branch of the bank to complain but no reversal has been made, and the most sad part is that the bank’s staff cannot do anything about it,” said a customer who lives at Ago Palace area of Lagos but works in Apapa.

Continuing he said “my next move if they refuse to reverse the wrong deduction is to report them to the Central Bank and the Consumer Protection Council (CPC), because from every indication they are not likely to reverse it as the wrong deduction started over a year ago”.

“However, if they refuse to correct this anomaly, I will have to close down the two accounts I have with them,” the customer said.

Uche Uwaleke, professor of Finance and head of department, Banking and Finance, Nasarawa State University, said the CBN should further enhance surveillance on banks, noting that the CBN has sanctioned banks but some unfair charges keep recurring.

He said the development puts a lot of responsibility on banks customers to make their complaint to customer service, where banks fail to resolve the issue, the customers has recourse to the CBN.

he became Minister of Transport in 1957, ensuring that the line went from Bauchi through his village of Tafawa Balewa and on to Maiduguri.

Incidentally, the rail station in Tafawa Balewa is today about 100 metres from his house and that line was finally completed in 1961.

Nigeria’s Western and Eastern rail lines are connected by way of a spur line between Kaduna along the Western line and Kafanchan on the Eastern line.

During the administration of President Goodluck Jonathan a whopping $1.7bn was said to have been spent on the revamp of the rail tracks. Sadly, this revamp was split into nine different contracts given to mainly indigenous companies.

Today the rail tracks are worse than they were before the contracts because the work where it was done by the contractors was largely sub-standard. Worse still none of the nine contracts has been completed satisfactorily. As one source told BusinessDay, “the $1.7bn simply vanished into thin air.”

Whereas the signing of the agreement at the weekend is a welcome development, that it took one whole year to negotiate a mere interim arrangement,signpoststhetoughnego-

tiations ahead before the full substantive concession is ready for execution.

Government officials said in Abuja last night that the interim phase will ensure improvement of the movement of passengers and goods across the country raise the quality of life for Nigerians by restoring commercial activities to communities around rail stations, facilitate the decongestion of the Apapa ports via rapid movement of containers into and out of the ports by rail.

It is expected that passenger rail frequencies will double.

In addition, freight haulage capacity by the end of the first 12 months of the interim phase is expected to increase roughly ten-fold, from its current less than 50,000 metric tonnes per annum to about 500,000 metric tonnes per annum once the neglected rail tracks receive some basic improvements.

The consortium estimates that the sum of $45m will be required for some basic maintenance of selected sections of the narrow gauge track, the lease of 10 locomotives to be immediately made available, as well as for the repair of 10 unserviceable NRC locomotives and production of 200 freight wagons along with basic maintenance spares and tools.

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BUSINESS DAY

Wike’s monthly N200m loan fund is for non-indigenes too

… hurries civil servants to begin drawing their own loan fund IGNATIUS CHUKWU, Port Harcourt

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ivers State government has resolved to open the window of financial access for small businesses to nonindigenes in the state, too. This was sequel to a cabinet meeting held on Friday, not on the usual Wednesdays.

Thus, the state government said the monthly N200 million interest free loans reserved for traders and young entrepreneurs would be accessed by indigenes and non-indigenes alike.

The meeting, which was presided over by the state governor, Nyesom Wike, noted that the loan facility was aimed at boosting the state economy.

In an interview with journalists after the State Executive Council meeting on Friday, Emma Okah, information and communication commissioner, said: “On the monthly N200 million interest free loans for trad-

ers and young entrepreneurs, council said that it must be made available to indigenes and nonindigenes.

“The terms of the loans will be flexible to generate business activities and profits for the beneficiaries. The loans will also enhance the economic wellbeing of the traders and young entrepreneurs.”

He said the council directed the State Executive Council Committee on Civil Servants loans to expedite action on their work, so that disbursement could begin in earnest.

On the third anniversary of the Wike administration, the State Executive Council discussed dates for the commissioning of completed projects.

The commissioner added that other aspects of the thirdyear anniversary celebrations, such honours for deserving persons, anniversary lecture and variety night for youths, were discussed at the meeting.

Obaseki congratulates Edo workers on Workers’ Day

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overnor of Edo State, Godwin Obaseki, says Edo workers are a reflection of the state’s unmatched creativity and high sense of industry, as they rank among the best in Nigeria.

Governor Obaseki said this in his May Day speech in commemoration of Workers’ Day observed every May 1.

According to Obaseki, “On this auspicious occasion of the celebration of Workers’ Day, I salute the immense contributions of workers to the overall development of the state.

“In our dear state, Edo, our workers are a reflection of our unmatched creativity and high sense of industry. Edo workers rank among the best in the countryandhavebeenverysupportive of my administration’s policies and programmes.”

Workers’ Day is a day for taking stock of our collective input, outcomes and impact, and I am proud to say that our modest achievements could not have been possible without your full support, the governor said.

In appreciation of the sacrifices of our workers coupled with the commitment to a world-class work force, the governor said we have em-

barked on the aggressive revamp of the civil service.

“As you can attest to, we are reconstructing and remodelling the state secretariat buildings so that we can give you a befitting work environment that is well equipped and dignifying,” he said.

The governor used the opportunity to outline the achievements of the state since assumption of office and solicit for more support from the workers.

“We have commenced the migration of all tasks from the age-old analogue platform to Internet-enabled Information and Communication Technology (ICT) platform to reduce the time spent on treating and processing files and responding to enquiries.

“Our world-class training is the first major step in this regard.

Those who have gone through the training on reporting and presentation skills can attest to the exciting experience.

“The over 2000 teachers who were trained on the use of technology-based teaching method, a component of Edo Basic Education Sector Transformation (Edo-BEST) can now teach our students in public schools with computer tablet.

Minister seeks MDAs’ cooperation for tourism development OYIN AMUNU, Abuja

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inisterofinformationand culture,LaiMohammed, has called for cooperation among Ministries, DepartmentsandAgencies(MDAs)inthe generation of relevant data that will assist in making policies and planningdecisionsforthedevelopment of tourism in Nigeria.

The minister made the call in Abuja on Monday when he received the Technical Consultant of the United Nations World Tourism Organisation (UNWTO) on Tourism Statistics, David McEwen, on a courtesy visit to his office.

The Federal Ministry of Information and Culture, which developspoliciesforthetourismindustry, doesnotgeneratethedatarequired

for policy formation and planning for the industry, hence the need for cooperationandcoordinationofthe relevant MDAs, he said.

According to Mohammed, “Tourism, as an industry, and the other sectors are interdependent, so it’s not by coincidence today that whileMcEwenishere,heisgoingto interact with at least 10 other parastatals or departments and ministries,includingtheNationalBureau of Statistics; the Nigerian Tourism Development Corporation; the Nigeria Police Force; the Central Bank of Nigeria; the Nigerian Immigration Service; the National Park Service; the Federal Airport AuthorityofNigeria;theFederation of Tourism Associations of Nigeria and the National Population Commission and other bodies.”

L-R: Adenike Bankole, head of product management, Payporte; Wangi Mba-Uzo Ukwu, regional director, Mnet West Africa; John Ugbe, managing director, MultiChoice Nigeria; Miracle Igbokwe, winner of BBNaija Season 3, and Ose Ben Wille, divisional head, corporate and specialised banking, Heritage Bank, during the presentation of prizes to the winner of BBNaija Season 3 Double Wahala, held at MultiChoice Nigeria head office in Lagos, yesterday.

Pic by Pius Okeosisi

World Asthma Day: Nigeria has only one respiratory doctor for every 2m people ANTHONIA OBOKOH

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orld Health Organisation (WHO) estimates that more than 100 million people could suffer from asthma in Nigeria by 2025, yet Africa’s biggest economy has only one qualified respiratory physician for every 2 million people, an expert says.

Chiwuike Uba, a policy analyst and chairman, Board of Trustees, Amaka Chiwuike-Uba Foundation (ACUF), devoted to asthma education, says poor environmental management, misdiagnosis and lack of political will by government have led to increase in mortality and morbidity rate of asthma in Nigeria.

“Painfully, in Nigeria, the es-

timated proportion of registered respiratory physicians to national population is one per 2.3 million individuals. This actually lends credence to the fact that part of the causes of increased mortality and morbidity is poor diagnosis traceable to poor governance and environmental management,” Uba says.

The dearth of qualified physicians to attend to asthma cases, according to the Nigerian Medical Association, is as a result of brain drain in the sector that sees upwards of 300 doctors leave Nigeria to practice in foreign countries yearly.

“In the last couple of years, the country’s health sector has been suffering brain drain, and a lot of good doctors and nurses have emigrated. This lingering problem in the country has to be considered,” Lanre Yusuf, a

Lagos-based medical practitioner, says.

An NOIPolls survey last year revealed that the reasons for the looming brain drain in the health sector included challenges such as high taxes and deductions from salary (98%), low work satisfaction (92%), poor salaries and emoluments (91%) and the huge knowledge gap that exists in the medical practice abroad (47%), among others.

Findings show that the national annual average salary of £40,600 in United Kingdom, according to grassdoor.co.uk, which is about 16 million monthly while doctors in Nigeria averagely earn about N3 million a year.

Meanwhile, the World Health Organisation says over 15 million Nigerians currently suffer from asthma with about 5-10 percent of children in any given commu-

nity suffering from the disease.

13 states with an estimated combined population of 57.7 million have no specialist respiratory services.

Asthma is a chronic inflammatory lung disease, which affects all ages but mostly starts in childhood. It creates inflammation in the inside walls of airways which makes them very sensitive for the allergic reaction.

Asthma may be caused due to genetic, environmental factors or combination of both. Almost all asthma sufferers have allergies.

Some of the allergens are house dust mites in carpets, bedding and furniture, pet dander, pollens, moulds, air pollution, tobacco smoke, chemical irritants in the workplace and others. Some of the symptoms of asthma are coughing, wheezing, trouble in breathing and chest tightness.

Indigenous firm secures seed financing to Tackling unemployment: Knowledge Exchange reform fresh food supply chain in Africa Centre skills next generation workforce DANIEL OBI

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n indigenous firm, Easyshop Easycook, a Nigeria-based online fresh food processor and grocer targeting working professionalsandSMEs,saysithassecured amultimillionnairaseedfinancingled byEchoVCPan-AfricaFund.

The company notes in a statementthatitwillputthefundstowards optimisingitsonlineplatformandexistingfarm-to-last-milesupplychain.

Thecompanyoffersaconvenient grocery shopping experience by providing a multi-platform technology solution to suit both customers and partners by delivering fresh food sourcedfromfarms,non-perishables, office supplies and household items to homes, offices, schools, hospitals, hotels,restaurants,etc,alloverLagos.

Fooditemscanbeeasilyprepped and customised to suit customer needs – some popular options include: grating, cutting, peeling, and grinding,amongothers.

“Ourvisionistooptimisethefresh foodsupplychainbyempoweringthe various participants and delivering repeatable value. Despite significant demand on the customer end, we realisedthatfrictionwascausingmassiveamountsofwasteandfraudinour

foodsupply.

“And it is incredibly important to usthatweofferastreamlinedpipeline to local farming communities while providing them the opportunity to generate greater income by optimising and increasing the supply of quality food ingredients to business and retail customers,” Saudat Salami, founder/CEO,saysinthestatement.

Also speaking, EchoVC’s Olaide Olusoji-Oke, says: “We are incredibly excitedtobackSaudatandherteam.

We have been tracking her progress overthelastfewyearsandhavebeen consistently impressed by her ability to build trust across the entire supply chain.

“Her understanding of the business is unrivalled (she is been doing thisforoveradecade)andherunique insights into behaviours in the offline market exhibited by farmers, traders and consumers are invaluable. We believesherepresentsthetypeofelite entrepreneurwelovetosupport.”

Also, EchoVC’s Fisayo Durojaye, notes, “We are thrilled by the broad impact of Easyshop Easycook on families,businesses,farmersandfood safety standards across Nigeria, and verypleasedtowelcomeSaudatand the Easyshop Easycook team to the EchoVCportfolio.”

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n a bid to tackle growing unemployment among Nigerian youths and help reposition unemployed graduates to successfully enter the labour market, Knowledge Exchange Centre (KEC) has provided participants, at a two-day workshop with the necessary tools to succeed in their careers.

The workshop also aimed to helpstrengthenentrepreneurship development through establishment and promotion of business to create sustainable wealth and employment.

The Lagos State Ministry of Wealth Creation and Employment endorsed the workshop.

Maria Glover, executive secretary, KEC, while speaking with BusinessDay at the event, observed that graduate unemployment was on the increase in Nigeria.

The career workshop will among other things address unemployment issue by building the capacities of participants as well as providing them with the opportunity to meet human resource managers and employers of labour, Glover said.

She said the participants

would also have access to continuous career support even after the workshop through the KEC Graduate Advancement Programme Network, which every participant would be automatically enrolled into.

She further said that for Nigeria youths to compete globally in the job market, they must understand the job market and gain skills to position themselves to succeed.

She said the participants mainly graduates seeking to be equipped for the job market will gain critical skills employers want; meet with potential employers of labour;Dialoguewithexpertsand get practical tips of how to win in the 21st Century job market.

The workshop also provided network opportunity for the participants to meet with employers of labour. Join a continuous training and career support network and partake in an On-the-spot job interviews and employment.

Some of the facilitators at the worked observed that to bridge the gap among youth and employees, there is need for employer’s to tolerate interns for whom they are and be ready to train and reshape them for the organisations manpower needs.

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Why Japan Inc is gambling on M&A growth

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EU plans to cut funding to nations where rule of law is at risk

Contentious move likely to provoke flare-up with Poland and Hungary ALEX BARKER

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russels will this week propose tough powers to cut off funding to countries such as Poland and Hungary where judicial independence is under threat, but will leave them on the hook for billions of euros in EU budget commitments.

In a move risking a flare-up with Warsaw and Budapest, the European Commission will on Wednesday announce regulation allowing it to choke off EU money to countries where problems with the rule of law endanger sound financial management.

Crucially any funding curbs imposed under the law would not relieve the member state of its EU budget obligations. This means it remains liable for subsidy commitments made to farmers and the financing of ongoing investment projects, according to officials familiar with the reforms. “The bridge building [projects] will continue,” said one EU diplomat. “This will not punish the [ultimate] beneficiaries of EU funds.”

The rule of law measure is one of the most contentious elements of the commission’s proposals for the union’s long-term budget, which will cover more than €1tn of spending between 2021-27.

During deliberations, senior Commission officials decided against a broader law tying “values” to money, or a direct link, to the so-called “Article 7” process to

police rule of law.

The commission last year formally warned there was a “clear risk of a serious breach of the rule of law in Poland” from the reforms that systematically enabled politicians to “interfere in the composition, powers, administration and functioning of the judicial branch”.

The chosen method is instead based on Article 322 of the EU treaties, through which financial management rules are set. Günther Oettinger, the EU’s budget commissioner, has said EU funds can only be used “where we are sure the courts are independent”.

Poland has reacted angrily to Brussels plans to give itself new powers. Under Article 7, sanctions for rule of law breaches can be vetoed by other member states, a power Hungary’s Viktor Orbán has promised to use to protect Poland.

The Commission’s new law would lower that voting bar, increasing the threat of financial penalties. In current drafts, a Commission proposal to curb funding could only be stopped if a weighted majority of EU member states vote against it, a procedure dubbed a “reverse qualified majority”.

Konrad Szymański, Poland’s Europe minister, has warned against the commission creating new discretionary powers that can be used to “punish Poland” for “various imaginary offences”. Instruments supposed to protect the rule of law risk “trampling on this principle”, he said last week.

T-Mobile and Sprint agree all-stock merger Combination of third and fourth-biggest US wireless carriers faces regulatory hurdles ERIC PLATT AND JAMES FONTANELLA-KHAN

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-Mobile and Sprint have clinched a deal valuing the combined company at $146bn, including debt, that will unite the US’s third and fourth-largest carriers after years of courtship.

The new company, to be led by T-Mobile chief executive John Legere and take the T-Mobile name, will have more than 127m wireless subscribers in the country, putting it much closer in stature to AT&T and Verizon Communications.

The all-stock deal valued Sprint at $59bn, including debt. T-Mobile is worth $87bn, including debt. Some Sprint executives will join the senior leadership of the combined group, which will have dual headquarters in Kansas City and Bellevue, Wash-

ington.

Mr Legere said the combination would create a “fierce competitor” with the scale to “deliver more” for consumers and businesses at lower prices.

“As industry lines blur and we enter the 5G era, consumers and businesses need a company with the disruptive culture and capabilities to force positive change on their behalf,” he said.

A deal is expected to face significant regulatory hurdles as antitrust authorities have in the past expressed opposition to reducing the number of major telecom carriers from four to three.

The road to a deal has been a long one for Deutsche Telekom and SoftBank, the respective controlling shareholders of T-Mobile and Sprint.

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Konrad Szymański, Poland’s Europe minister, has warned against ‘punishing’ Poland for imaginary offences © EPA

Marathon Petroleum to buy Andeavor in $36bn deal Takeover will shake up US refining and midstream energy industries DAVID SHEPPARD AND ADAM SAMSON

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arathon Petroleum has agreed to buy Andeavor in a $36bn deal that would shake up the US refining and midstream energy industries.

Under the terms of the pact announced on Monday, Marathon will pay a combination of cash and shares to buy Texas-based Andeavor.

Andeavor’s equity would be valued at $23.3bn, while the enterprise value, which includes net debt, would be $35.6bn.

The deal will create a US-based refining giant with more than 3m barrels a day of throughput capacity, the equivalent of 15 per cent of the US total or 3 per cent of world oil demand.

Marathon was already the second largest refiner in the US and buying Andeavor will mean it leapfrogs rival Valero, which controls 2.2m b/d of capacity.

“This transaction combines two strong, complementary companies to create a leading US refining, marketing and midstream company, building a platform that is wellpositioned for long-term growth and shareholder value creation,” said Gary Heminger, Marathon’s chief executive.

The board of each company has approved the deal, which is expected to close in the second half of this year.

Greg Goff, Andeavor’s chairman and chief executive, will join Marathon as executive vice-chairman once the deal closes, the companies said.

Marathon operates seven refineries situated in the Midwest and on the US Gulf Coast, while Andeavor, which was known as Tesoro until 2017, has eight plants primarily on the west coast of the US. The geographic spread of their plants is expected to reduce antitrust concerns, though the deal will still need regulatory approval.

Shareholders of Marathon will

own approximately 66 per cent of the combined company while Andeavor shareholders will hold 34 per cent, with the deal representing a 24.4 per cent premium to the latter’s closing share price on Friday.

Marathon said the deal would drive $1bn of synergies for the combined companies, though analysts cautioned that the three-year timeline for these cost savings might disappoint some investors.

Refining stocks have been on a tear with Marathon already hitting an all-time high last week, up 120 per cent in the past two years. Andeavor has gained 44 per cent over the same period and also hit a record high on Thursday.

“The synergy timeline is relatively long at three years, the deal is being done at peak refining bullishness . . . and [Marathon] is using a currency that we have seen as chronically undervalued to acquire one that we see as more fairly valued,” said Brad Heffern at RBC Capital Markets.

Oil at $75: the five factors driving the price Some believe that Opec cuts have tightened the market enough to dent the shale threat DAVID SHEPPARD

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il prices have risen as high as $75 a barrel for the first time in four years. But what has driven the rally and will it continue?

Here are the five key areas to watch: 1. Supply and demand The simplest reason for the rise in oil prices is that markets have tightened markedly over the past 18 months. Inventories of crude that had built up during the glut of 2014-16 have largely been worked off because of strong demand driven by a booming global economy and supply cuts by Opec and Russia.

The International Energy Agency said last week that Opec could soon declare “mission accomplished” if it were targeting reducing global oil inventories back in line with the fiveyear average.

Some believe that underestimates how tight the market is as demand has soared by more than 5m b/d, or more than 5 per cent, in the past three years, with global crude consumption expected to top 100m b/d

for the first time later this year. That means higher inventories should be required to provide the same number of days’ cover for oil refineries.

“The overhang has largely been cleared,” said Olivier Jakob at Petromatrix. “The market is not extremely tight yet but with the glut taken away the conditions are there for the price to improve.”

2. Opec and Russia So if oil inventories are back to near normal levels will Opec and Russia look to end their supply cuts, which have removed at least 1.8m b/d from the market since the start of 2017?

Most traders and analysts think not. While Moscow has expressed greater concern about the impact of $70+ oil on stimulating rival supplies such as US shale, it seems content for now to stick with Opec, whose de facto leader Saudi Arabia has indicated it believes there is more work to be done.

Khalid al-Falih, Saudi energy minister, has spoken of the need to stimulate greater investment in new

supplies. The kingdom is also preparing a listing of state oil company, Saudi Aramco, which would be likely to benefit from higher oil prices. It is also introducing widespread social and economic reforms in the highly conservative country.

“There’s been no sign from Opec that they want to cap this rally,” said Bill Farren-Price at Petroleum Policy Intelligence.

“Saudi Arabia has short-term interests in higher oil prices for multiple reasons, including Aramco.

But it’s also going through a delicate period of reform and there are constituencies who will find these very difficult. Having additional revenue at this time definitely helps.”

Opec continues to cut daily oil output 3. Geopolitical risks The oil market always watches closely for risks of supply disruptions that could upend the delicate balance of supply and demand. But when supplies are already relatively tight they can take on an outsized importance.

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SocGen deputy chief quit to limit US penalties over Libor Didier Valet resigned to avoid extra damage for bank over rate-rigging allegations MARTIN ARNOLD, DAVID KEOHANE AND KADHIM SHUBBER

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ociété Générale would have faced much tougher penalties from the US Department of Justice if Didier Valet, the French bank’s deputy chief executive, had not resigned over the accusations of Libor rate-rigging.

Mr Valet decided that his job was

not worth the extra damage that would be inflicted on the French bank if he stayed, according to three people familiar with the matter.

The tussle between the DoJ and SocGen has revived memories of the $8.9bn fine that US authorities imposed on its French rival BNP Paribas in 2014 for sanctions violations that prompted high-level executive departures and

stirred Franco-US political tension.

SocGen was told that unless the executives the DoJ singled out for blame over the Libor affair resigned, to settle the US investigation the bank would need to agree a higher fine, submit a guilty plea and accept oversight from an independent monitor.

When Mr Valet quit in March, it left SocGen without a clear successor as

chief executive to Frédéric Oudéa. The bank, which reports first-quarter results on Friday, is expected to announce Mr Valet’s replacement by its annual meeting on May 23.

His departure followed the resignations of Danielle Sindzingre and Muriel Bescond, two senior traders at SocGen, a few months after they were charged with alleged Libor rate-rigging by the DoJ, which is seeking to

Merkel, May and Macron in last-ditch effort to save Iran deal

T-Mobile and Sprint agree all-stock merger...

Continued from page A1 While the two had entered talks on a merger as early as 2014, a deal had always proved elusive.

Sprint abandoned its pursuit of T-Mobile in the summer of 2014 after Masayoshi Son, SoftBank’s chief executive, failed to win over regulators, who said any deal that would take the number of major wireless carriers in the country from four to three would face staunch resistance.

A price war in the industry ultimately broke out as T-Mobile fought to gain market share, and in 2015 the it overtook Sprint as the third-largest carrier in the US. Since then, Sprint has amassed more than $30bn of debts as it has invested in its wireless network and its market valuation has slid.

The companies attempted a second deal last year, but talks broke down when the two sides could not agree a value for Sprint or the governance of the company in a tie-up.

The companies said they would have total revenues of between $75bn and $76bn in 2018, with a goal to grow sales to as much as $86bn over the next three to four years. T-Mobile hopes to achieve cost savings of $6bn as part of the merger.

SoftBank owns roughly 85 per cent of Sprint and has been under pressure to revitalise the carrier. The deal with Deutsche Telekom, which owns more than 60 per cent of T-Mobile, was seen by some Wall Street analysts as necessary ahead of the looming shift to 5G wireless technology.

Carriers in the US are expected to spend billions of dollars upgrading their networks for the new wireless standard, which is expected to launch next year and bring a new range of devices on to the internet. T-Mobile said it would invest $40bn in its business and on its 5G network expansion in the first three years after a deal is completed.

The deal between Sprint and TMobile faces an ambiguous regulatory backdrop and will probably run into some of the same opposition that the companies faced when they had considered a deal under the Obama administration. While investors and dealmakers had expected lower regulatory hurdles from the Trump White House, a number of transactions have been blocked this year and last year that have cast that view into doubt.

The Department of Justice is suing to block AT&T’s $85.4bn purchase of entertainment company Time Warner, arguing that it would hamper competition and hurt consumers.

Analysts with Jefferies said regulatory approval for the transaction between Sprint and T-Mobile seemed even riskier today. “When deal talks first emerged last year, investors were hopeful that a seemingly more business-friendly administration would be positive for M&A,” said Scott Goldman, an analyst with the investment bank. “In reality, we have seen a regulatory environment riddled with Department of Justice opposition and deal concessions.”

extradite them to the US. The bank is being investigated by both the DoJ and Commodity Futures Trading Commission for alleged Libor rigging. It expects a settlement of the probes to be announced soon, along with a settlement of the DoJ’s investigation into alleged fraud and corruption by the bank at the expense of the Libyan Investment Authority.

Move comes as Trump administration threatens to pull out within a fortnight FT REPORTERS

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Demonstrators demanding reforms to Australia’s financial services sector rally in Melbourne earlier this month © EPA

AMP chairman resigns amid widening scandal Australia’s bank inquiry claims second major scalp over misconduct JAMIE SMYTH

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atherine Brenner, chairman of AMP, has resigned in the wake of damaging revelations at a public inquiry that the Australian financial services company systematically overcharged customers and misled regulators.

It follows the departure of Craig Meller, AMP chief executive, 10 days earlier and intensifying pressure from investors for governance changes at AMP amid a public outcry over misconduct in the financial services sector.

“I am deeply disappointed by the issues at hand and am particularly concerned for the impact they have had on our customers, employees, advisers and shareholders,” said Ms Brenner in a statement on Monday.

“The board has now accepted my resignation as chairman as a step towards restoring the trust and confidence in AMP.” AMP shares jumped 1 per cent to A$4.06 when trading began.

Mike Wilkins, AMP’s acting chief executive, will take over as executive chairman until Ms Brenner and Mr Meller are replaced, AMP said.

The leadership changes at AMP — one of Australia’s most venerable companies — follow two weeks of public hearings at Australia’s royal commission inquiry into misconduct in the financial advice sector. The hearings have revealed scandals ranging from Commonwealth Bank of Australia charging fees to dead clients, to staff at one advisory firm impersonating a client on the phone to obtain details from their pension fund.

The behaviour of AMP was shown to be among the most egregious in the sector with the inquiry detailing how it systematically charged customers fees when it provided no services, misled the corporate regulator on at least 20 occasions and interfered with a supposedly independent report prepared by law firm Clayton Utz. On Friday the inquiry’s lead counsel recommended AMP face criminal charges.

More than A$2bn ($1.5bn) has been wiped off the value of AMP shares since the inquiry began hearing evidence almost two weeks ago and detailing poor behaviour by AMP’s army of 3,600 planners. But it was governance failures at board and executive level — prompting investors to stage a revolt last week and threaten to vote against two AMP directors up for re-election at its company meeting on May 10 — that forced Ms Brenner to stand down.

Following an emergency meeting at the weekend, AMP’s board is attempting to draw a line under the scandal by announcing the departure of Ms Brenner, and giving details of its response to legal advice that it commissioned in relation to the preparation of the report by Clayton Utz into AMP’s fee-for-no-service issue.

The inquiry heard how the report went through 25 drafts and was the subject of 700 emails between AMP and Clayton Utz before it was presented by AMP to the corporate regulator as an independent report. The name of Mr Meller was deleted from the report during this process.

AMP said on Monday that after

assessing the matters the board was satisfied that Ms Brenner, Mr Meller and the other directors did not act inappropriately in relation to the preparation of the Clayton Utz report. The company said the board and Ms Brenner were unaware of and disappointed about the number of drafts and the extent of the group general counsel’s interaction with Clayton Utz during its preparation.

AMP said Brian Salter, chief general counsel and company secretary, was leaving the company and the board had exercised its discretion to ensure his deferred remuneration was forfeited. Mr Salter later released a statement saying: “I have not engaged in any wrongdoing.”

The board fees of all directors would be cut by 25 per cent in 2018 in recognition of the collective governance accountability for the issues arising at the inquiry, said AMP. The drip feed of revelations at a public inquiry, which is scheduled to last a year and investigate the banking, financial advice, pension and insurance sectors, is raising fears among industry insiders about the long-term damage caused to the sector and the wider economy.

“The risks here are a loss of confidence in the system and then a legal response which simply converts the current system we have into a shadow system, and given the structure of the economy that would be a worse outcome,” David Murray, a former chief executive of CBA and author of a government commissioned report into the finance sector in 2014, told the Financial Times.

he leaders of Germany and the UK have joined their French counterpart in a last-ditch effort to keep the nuclear deal with Iran alive in the face of the Trump administration’s threat to pull out of it within two weeks.

After phone calls between the trio on Saturday and Sunday, Germany’s Angela Merkel and the UK’s Theresa May agreed to sign up to the plans of France’s Emmanuel Macron to pursue additional agreements to bolster the 2015 accord.

The French president then spoke to Hassan Rouhani, his Iranian counterpart, for more than an hour.

The deal, the main diplomatic accomplishment of the Obama administration and reached after years of multinational talks, reined in Iran’s nuclear programme in return for sanctions relief. But the agreement has been consistently criticised by US president Donald Trump, who last week described it as “terrible”.

In a further drive to project a common European front despite Britain’s impending departure from the EU, the leaders also voiced their alarm over the impact on European industry of US steel and aluminium tariffs that take effect on Wednesday.

“They agreed that the US should take no trade measures against the EU or else the EU should be ready to defend its interests within the framework of the multilateral trade order,” Ms Merkel’s office said.

A Downing Street spokesman said the leaders had “discussed the importance of the Iran nuclear deal as the best way of neutralising the threat of a nuclear-armed Iran, agreeing that our priority as an international community remained preventing Iran from developing a nuclear weapon”.

But the spokesman said the deal also needed to address other important elements — a reference to ideas floated by Mr Macron during a high-profile visit to Washington last week.

Trump says ‘Iran will not be doing nuclear weapons’ These proposals would encompass issues such as sunset clauses restraining Iran’s nuclear programme that would otherwise expire from 2025 and “other issues, in particular Iran’s ballistic missile programme and its regional role”, according to the statement by Ms Merkel’s office.

Mike Pompeo, US secretary of state, said on Sunday: “Unlike the prior administration, we will not neglect the vast scope of Iran’s terrorism. It is indeed the greatest sponsor of terrorism in the world, and we are determined to make sure it never possesses a nuclear weapon. The Iran deal in its current form does not provide that assurance.”

Tuesday 01 May 2018

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Harvard Business Review TALKING POINTS Recommendations From Doctors Key to Flu Prevention 80%: About 80% of patients in the U.S. say that they are likely to get a flu shot if their health care provider were to recommend it, according to data from the American Journal of Medicine. + A Skillful, and Productive, Chef 3 times: According to research from Bain & Company, the best fish butcher at the New York restaurant Le Bernardin can prepare three times more fish than the industry average. + Hyatt’s ‘Signature Scent’ 300: Almost 300 Hyatt Place Hotels in the U.S. dispatch the company’s “signature scent” in its facilities - an aroma of blueberries, flowers and vanilla. + Lack of Diversity in PR 88%: Almost 88% of the people working in the public relations industry in the U.S. are white, according to data from the Bureau of Labor Statistics. + Get Ready for More Email 15%: According to Phil Simon, the author of “Message Not Received: Why Business Communication Is Broken and How to Fix It,” the number of email messages we are getting at work is likely to grow at a compounded rate of 15% per year.

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Tips & Talking Points Be transparent when telling an employee they didn’t get the promotion

It’s hard to tell an employee they didn’t get the promotion they were vying for. Your goal should be to deliver the news clearly and with empathy.

— Start by validating your employee’s contributions and thanking them for applying.

Avoid comforting statements like “Next time you’ll get the job,” which make promises you may not be able to keep. Be prepared to explain why they didn’t get it — for example, did they lack a certain experience, discipline, or skill set?

While the employee may not be happy with the outcome, it’s important that they know the process was fair.

— Finally, finish the conversation by saying something like: “I’d love to continue discussing your career goals, so let’s set up a time to talk about getting you the experience you need to advance.”

And then be sure to follow through.

(Adapted from “How to Tell an Employee They — Share how the decision was made, too. Didn’t Get a Promotion,” by Rebecca Knight.)

Does your body language convey confidence?

If you want people at work to trust and respect you, regardless of your title or authority, pay attention to your body language. How you stand, sit and speak all affect whether people are open to being influenced by you. For example, standing up straight with your shoulders back helps you come across as confident and commanding, while slouching and looking down at your feet have the opposite effect.

When meeting with someone you don’t know well, keep your arms uncrossed, your hands by your sides and your torso open and pointed at the other person.

This sends the message that

BUSINESS DAY

To fight your burnout, take control of it

you are open and trustworthy.

And try pitching your voice a little lower than you normally would, to connote power. This can counteract the effect of nervousness, which tends to push the tone of your voice higher.

(Adapted from “How to Increase Your Influence at Work,” by Rebecca Knight.)

When you’re burned out and exhausted, it’s easy to think of yourself as a victim of circumstances — and forget that you have a say in your situation. Instead of blaming everyone else for your being overworked and overstressed, take ownership of it. Think to yourself: “Others may have contributed to my situation, but I have the ability to make choices that can improve my present and future.” Realizing that you have autonomy creates hope, which enables you to take action, and taking even small steps reinforces your sense of control. Make the choice to attend to your physical needs, for example. This could be as simple as

getting up to stretch your legs when you’re feeling stiff, eating lunch with coworkers instead of at your desk, or going to bed when you’re tired. Making the choice to do these things demonstrates to yourself that you have some control, even on a small level.

(Adapted from “To Recover from Burnout, Regain Your Sense of Control,” by Elizabeth Grace Saunders.)

When you’re in a crisis, make it easy for co-workers to help you When you’re going through a personal crisis, you’ll likely need the support of your colleagues.

But they may not know how to be useful, so ask for their help thoughtfully and specifically.

Describe what you need and why the help is meaningful to you, and, as with any request at work, give a deadline. For example, you might say, “I’d love your assistance over the next two weeks while I’m out caring for my mother. Would you be able to complete the report we’ve been working on by next Thursday? It would free up my mind to focus on what I need to do at home.” Research shows that how you frame a request strongly influences whether someone will agree to it. So being clear about exactly what you need will make it easier for your colleagues to help out when you need them.

(Adapted from “What to Do When a Personal Crisis Is Hurting Your Professional Life,” by Amy Gallo.)

During vacation, don’t check email unless you really, really have to When you go on vacation, ideally you should disconnect from work completely.

But if going off the grid truly is not an option for you, set boundaries for yourself so that you aren’t tethered to your device. Make a plan to check your messages once a day at a particular time, or only on certain days. Put your phone out of reach — your hotel room’s safe is a good place — or, if you want to use it to take pictures, keep it in airplane mode. You can also reduce the number of emails you get by making clear in your out-of-office message that you

c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate

are not reachable. Even if you plan to occasionally check in, telling people that you’re available only encourages them to expect a reply. Your out-of-office message gives you the freedom to choose how and when you’ll respond (if at all) while you’re away.

(Adapted from “3 Ways to Control Your Phone Addiction on Vacation,” by Regan Walsh.)

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STRATEGYBRIEFING

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IDEAS THAT POWER HIGH PERFORMANCE

Rethinking Strategy ‘A desk is a dangerous place from which to view the world’

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t is fundamentally wrong to think of strategy in terms of the competition.

Strategy is about the customer and how to deliver value to him. Two key words stand out here: the customer and value. That is where I will like to begin this discourse.

The average business executive today claims that his organization is customer oriented. But many times the very word, customer has in recent times become one of the most ambiguous in management literature. But, clarity of understanding of who the customer really is defines the beginning of a successful strategy. All else is commentary.

A working definition might be that your customers are the people or entities that buy your products and services and supply your revenue. That includes any number of actors in a company’s value chain: consumers, whole­salers, retailers, purchasing departments, and so forth. Some companies go as far as to label internal units as customers: Manufacturing is a customer of R&D, for instance, and both are customers of HR But this definition doesn’t apply to every company. For example, the German global

pharma giant defines its customers as research scientists in universities and laboratories around the world. Merck requires its researchers to act like university scientists by conducting basic research, publishing papers, and presenting results at conferences, all with the intent of discovering groundbreaking compounds that can then be commercialized by Merck’s marketing and sales group. As a result of this, Merck’s centralized R&D unit receives the bulk of organizational resources.

Consider social media giant, Facebook. Facebook offers a set of development tools and application programming interfaces to developers to help them create web and mobile apps for Facebook platform.

When users purchase virtual and digital goods from the developer apps, Facebook receives a fee from the developers for the use of its payment infrastructure.

Facebook also offers advertising placements over its website and mobile apps to marketers to help them reach people on Facebook. In 2017, Facebook made $39, 942, 000, 000 from advertising placements and $711, 000, 000 from

developer fee. Yet Facebook does not consider the developers or the advertisers as its primary customer. Facebook business model is not designed to please the developer or advertiser. It is rather designed to satisfy the Facebook user who brings in no revenue!

MySpace approach was different, the pressure to drive revenue led the company executives to accept $900 million for a three year advertising deal from Google. When they did their goal shifted from satisfying their over forty million unique monthly visitors to satisfying their advertisers of which Google was chief. They basically doubled the ads on their site which soon became an eyesore, and created a miserable experience for users.

The result? The users headed to Facebook and the advertisers went with them!

The lesson is that a clear definition of the customer is the beginning of a successful strategy. And it is important to understand that your primary customer may not necessarily bring in the most revenue.

He rather may be the one that unlocks the most value in your business. For some businesses, the primary customer will be

the end user or consumer of the product or service. For others, an intermediary (such as a reseller or a broker) will be the critical customer to which organizational resources should be devoted.

The emphasis on beating the competition as the essence of strategy is a lousy approach that blinds executives. By failing to grasp this critical issue, too many executives today impose great anxiety on themselves and their subordinates, whose efforts end in failure and frustration.

The second issue I will want to discuss is value. According to John le Care, ‘a desk is a dangerous place from which to view the world’. The purpose of every business is to deliver some sort of value but in business value is created and/or destroyed at the market place, not at the office or in strategy meetings.

According to a 2004 survey

by Strativity, a global research and consulting firm, 50% of salespeople don’t know what attributes justify the prices of the products and services they sell. If sales people don’t know what values they are really selling how can they deliver superior results at it?

So managers will need to explicitly define and adequately communicate the value they intend to deliver to their clearly defined customers. But again, what is value? How do you determine what value customers are willing to pay for? Within the same market and industry, different primary customers may value different things: Some demand the lowest possible price, others want a dedicated service relationship, and still others are looking for the best technology or brand or other specific attribute. It is the responsibility of the strategist to understand this, create it and communicate it.

Brian Reuben(@brianoreuben) is an advisor on strategy and leadership. He regularly conducts keynote presentations and senior executive workshops with companies around the world on strategy and leadership. He heads BusinessDay Training Was this article helpful? Share your thoughts with us on Facebook @bdtraininglive or email us on trainings@businessdayonline.com

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FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Global stocks climbing as dollar strengthens Rising yields and crude prices have hit confidence, but will not cause a bear market yet STEPHEN SMITH AND RICHARD BLACKDEN

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hat you need to know • Global stocks firmer with US stocks rising at Wall Street opening bell • US inflation core PCE figures climb to 1.9 per cent, close to Fed target • Dollar strengthens against leading FX pairs • US Treasury 10-year yield dips in wake of US data but retraces • Europe equities making small gains after stronger session in Asia • International benchmark Brent crude slips by around 1 per cent “With Federal Reserve officials confident in the near-term economic outlook, they will be more focused on the stronger than anticipated pick-up in core PCE inflation this year, reaching 1.9 per cent in March,” said Michael Pearce at Capital Economics.

“We think that will convince the Fed to raise rates a total of four times this year with the next hike coming in June.”

Hot topic Global equities are modestly higher as investors await an important week for US data with also a Federal Reserve meeting on Wednesday and capped on Friday by the release of the US jobs report for April.

Wall Street stocks on the S&P 500 opened 0.3 per cent firmer in US trading, on track to erase losses for the year so far on the final day of April trading.

Monday’s key data release, core US inflation figures, showed a rise to 1.9 per cent in March, up from 1.6 per cent in February — which was in line with expectations but still the strongest in more than a year and now just short of the Federal Reserve’s 2 per cent target.

US Treasury yields dipped slightly in the wake of the data. Consumer spending figures for March rebounded to 0.4 per cent, the best reading in three months, but US personal income figures came in just below expectations.

Equities

The Euro Stoxx 600 is 0.2 per cent higher and Germany’s Xetra Dax flat by Europe mid-session. The FTSE 100 is up 0.1 per cent and France’s CAC 40 climbed 0.2 per cent.

Asia stocks finished in positive territory on Monday with Hong Kong’s Hang Seng index jumping 1.7 per cent. Traders in Tokyo and China were off on market holidays.

Forex and fixed income The dollar is making steady advances on Monday after a solid performance last week amid a sell-off in US Treasuries that culminated in the 10-year yield finally breaking briefly above 3 per cent for the first time in four years.

The dollar index, which tracks the greenback against a basket of peers, is up 0.4 per cent but just slightly off Friday’s three-month peak.

The euro is 0.5 per cent lower at $1.2074 against the dollar, the pound 0.3 per cent weaker at $1.3745 and the yen off 0.3 per cent to ¥109.37.

Yields on 10-year US Treasuries are flat at 2.96 per cent while the more ratesensitive two-year yield is up 1 basis point to 2.49 per cent. Both gauges has earlier given up around a basis point in the wake of the US inflation data before retracing the move.

German 10-year Bund yields are flat at 0.57 per cent. Today’s fall in German CPI inflation and the country’s monthly retail sales unexpectedly slipping in March supported the European Central Bank’s cautious stance in not making any major changes in its forward guidance, said Jennifer McKeown of Capital Economics.

“We expect the bank to wait until its July meeting to signal an end to asset purchases and interest rate hikes are unlikely to come until late next year,” she added.

Commodities Oil prices were weaker with Brent crude pushing further below last week’s 40-month high of $75.47 a barrel. The international benchmark is off 0.8 per cent on Monday to $74.02 while US marker West Texas Intermediate is down 0.7 per cent to $67.67.

Gold is down 0.8 per cent to $1,311.70 an ounce and trading at month lows.

S&P 500 eyes move back into black for 2018 after strong April STEPHEN SMITH

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strong April for US stocks leaves the S&P 500 poised to erase its losses for the year if the futures market’s signal of opening strength is borne out today.

The S&P 500 is up 1.1 per cent for April heading into the final day of trading, its first positive month since January and leaving it just 0.14 per cent short of positive territory for the period.

Futures markets are currently indicating gains of about 0.3 per cent today.

“April is not such a cruel month after all,” said Nicholas Colas, cofounder of DataTrek Research. “[The month’s] performance data shows US stocks can work as interest rates increase. US equity markets will adjust to higher rates, albeit in choppy/ sloppy fashion.”

He noted that US small-caps were outperforming, based on the healthcare, financials and energy sectors beating their large-cap equivalents.

Higher oil prices have pushed the S&P energy sector up more than 9 per cent in April while the Russell 2000

index of small companies has risen 1.8 per cent for the month to date.

The pattern of April equities strength has also been seen in Europe, as the dollar’s best month since November has helped ease concerns over a strong euro hurting export focused companies. Europe’s Euro Stoxx 50 index has climbed 4.8 per cent.

A weaker sterling and yen has also bolstered a solid performance from the UK ‘s FTSE 100, up 6.8 per cent while Tokyo’s Nikkei 225 has closed out the month with a 4.7 per cent gain.

The positive month for stocks had a particular impact in buoying the US high-yield bond market, said Mr Colas, which rallied “as everything else in bond land declined”.

“Netflix and WeWork, two marginally profitable companies, managed to raise $1.9bn and $702m, respectively, just in the last week at 5.9 per cent and 7.9 per cent coupons, he added. “If those look more like expected equity returns than bonds yields, you’ve got the right idea. High-yield and stocks are now 100 per cent tied at the hip, for better or worse.”

McDonald’s grills up strong same-store sales growth Performance in overseas markets such as UK and Germany helps beat expectations ADAM SAMSON

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cDonald’s on Monday said a closely watched sales measure rose substantially more than forecast in the first three months of this year, sending shares in the world’s biggest burger company zipping higher.

The Illinois-based group said same-store sales climbed 5.5 per cent in the first quarter of 2018, easily exceeding the 3.6 per cent forecast by analysts in a FactSet poll.

In the US, McDonald’s biggest market, increases in menu prices and changes in the types of food ordered by consumers sent comparable sales rising 2.9 per cent.

Like for like sales were also up in McDonald’s international markets. In its main established

markets, including the UK and Germany, the figure was up 7.8 per cent, while it rose 4.7 per cent for its so-called “high growth” markets, led by strength in China and Italy that was offset by “challenges” in South Korea.

Shares climbed 4.8 per cent in early New York trading. They had been up 13.1 per cent over the past year as of Friday’s close despite an 8 per cent 2018 drop.

Overall revenues at the chain famous for its Big Mac burgers declined 9 per cent year on year to $5.14bn because of the impact of a refranchising programme, but that was still well above the $5bn that had been pencilled in by Wall Street. Excluding the impact of a weak dollar, which polished foreign sales, the figure would have been down 15 per cent.

Net income ticked up to $1.38bn from $1.21bn in the same quarter in 2017.

“We continued to build upon the broad-based momentum of our business, marking 11 consecutive quarters of positive comparable sales and our fifth consecutive quarter of positive guest counts,” said Steve Easterbrook, chief executive.

Since taking the reins in 2015 Mr Easterbrook has worked to simplify McDonald’s menu offering and bolster the company’s image at a time when fast food has increasingly been shunned in favour offerings perceived to be healthier and more natural.

To that latter point, for instance, McDonald’s has vowed to souce only cage-free eggs in the US by 2025 at the latest.

Valuations for private and public companies are narrowing Concerns grow that investors could be overpaying for privately held assets JAVIER ESPINOZA

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aluations for private and public companies are narrowing, data by the Boston Consulting Group show, prompting concerns that investors could be overpaying for privately held assets.

The narrowing of the gap has been driven partly by private equity investors paying record multiples for assets as they come under pressure to deploy capital, according to industry analysts.

This could eventually lead to investors finding better value and more liquidity in publicly traded companies if economic conditions were to change dramatically, these observers warned.

“Buyout funds have historically valued private companies based on their historical averages,” said the private equity

head of a multibillion fund in London. “But private equity investors have raised a lot of capital and to get deals done they are having to pay full price.

Many are starting to ignore their traditional metrics.”

The person added: “It’s like 2006 and 2007 all over again.”

Yield-starved investors have been under growing pressure to deploy their capital in a lowinterest rates environment. As a result, demand for private equity has risen in recent years, which in return has led buyers to pay record multiples for assets.

In 2017, investors paid on average 12.5 times multiples for private companies compared with 9.5 times multiples a year earlier. This compares with 16.8 times multiples paid for public companies last year versus 19.5 times multiples a year earlier,

the data showed.

Industry observers also said that a narrowing of the gap would lead some to reassess their exposure to private equity.

“If you want to re-calibrate your portfolio, you can take instant action in the public markets.

While you can’t with private equity exposures. You can try and sell your stake in the secondary market but at huge discounts.”

However, Antoon Schneider, senior partner and managing director at the BCG, said that investors were still paying less on average for private companies than for listed companies.

“Private equity investors are not paying more than if they bought shares in the stock exchange and they hopefully get superior governance and better returns,” he said. “The private equity boom is still less than the stock market overall.”

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BUSINESS DAY

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Tuesday 1 May 2018

BUSINESS DAY Online

Highlight of the news reports on our digital platforms for month of April

Five most read stories of the month document for overseas travel.

tension ahead of 2019

Oil revenues racing to 2014 highs as Nigeria allows crisis go to waste

It was a half empty Federal Executive Council (FEC) meeting that Vice President Yemi Osinbajo presided over yesterday as most key ministers are out of the country on official assignment.

Petrodollars are flocking back to Africa’s largest oil producer, but the disappointment is, having come through the worst, Nigeria may now go back to business as usual. The Federal Government raked N3.69 trillion in gross oil revenues between January and November 2017, according to data compiled by BusinessDay and sourced from the Central Bank.

Kachikwu confirms FG’s annual payment of 1.3 trillion ‘under recovery’ on petroleum imports Emmanuel Ibeh Kachikwu, the Minister of State for Petroleum Resources said on Thursday that the federal government’s current annual payment of ‘under recovery’ on Petroleum import stands at N1.3 trillion annually.

Senate invasion, Fulani killings: Anxiety grips Int’l community over 2019 elections Following last Wednesday’s invasion of the Nigerian Senate by a group of

Video of the month

suspected thugs, who carted away the mace during plenary session, anxiety has gripped foreign missions in Nigeria over the 2019 elections as signs emerge that the general elections may trigger violence that could truncate democracy anddestabilise the country.

Half-empty FEC, stolen mace herald governance slow down, Poll of the month

BD INVESTIGATIVE SERIES: Passport scarcity worsens as immigration owes foreign printers The scarcity of Nigerian passports at immigration offices nationwide has worsened with resultant hardship for citizens intending to procure the

Tweet of the month

Cartoon of the month

POLL RESULTS: The best poll carried out during the month showed that 57% were optimistic while 43% were depressed that he would be running for a second time. What is your opinion about the current president running again come 2019?

For details visit our website at businessdayonline.com to catch up on full news stories. Write to us at digital@ businessdayonline.com with your opinion.

BUSINESS DAY

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NEWS YOU CAN TRUST I TUESDAY 01 MAY 2018

Insight Frontier and emerging markets macro outlook

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his is our primary macro outlook piece for the rest of 2018. We are no longer more bullish than consensus on US/ EU growth. We still think emerging markets (EM) and frontier markets (FM) a re l e s s t h a n h a l f - w a y through a structural bull market. The big shift in our thinking is on the oil exporters. MENA is looking much healthier, from Egypt (we’re still bullish) t o t h e UA E i n E M . We think Russia and SA can beat IMF GDP forecasts in 2018/2019. Nigeria is a big beneficiary in Africa.

But really, we want t o t a l k a b o u t e l e c t r i city. Last year, we argued countries needed 70- 80% adult literacy to grow fast.

Most African and Frontier credits we follow have hit that target. This year, we argue that countries must also have at least 300-500 kWh of electricity per capita to grow sustainably at a fast rate. To put that into perspective, one LCD T V re q u i re s a b o u t 2 4 0 kWh pa.

Most EM countries m e e t b o t h t a r g e t s, i n cluding for the first time this decade Egypt and In d i a. T h e s i t u at i o n i s far more mixe d in FM. Argentina and Vietnam do, of course, along with the countries in Emerging Europe. Morocco and Tunisia have joined them recently and so has Sri Lanka. We are bullish on them all.

Where it gets more complicated is Sub-Saharan Africa (SSA). Until 2000, virtually none met the literac y target, but that has changed dramatically for the better. Yet there are still acute shortfalls on electricity supply in East Africa, and most of West Africa. We think Zambia looks really good, as does Zimbabwe (it had both literacy and electricity in the 1980s and had industrialised, then blew it all with bad policies) and we think Ghana could join them. But we need to see electricity supply at least double or treble per capita in East Africa and the rest of West Africa before industrialisation is realistic. Our base case is that countries that c a n ’ t i n d u s t r i a l i s e (o r s h i f t f ro m s u b s i s t e n c e agr iculture into higher

valued- added services) can’t grow much above 4-5% (1-2% in per capita terms).

There appears to be one exception to this though.

If you invest 25% of GDP or more, then Bangladesh, Ethiopia and others demonstrate sustainable high growth can still happen.

This is good news for Tanzania and perhaps Uganda but sends a clear message to Kenya, Nigeria, Egypt and Pakistan about their urgent need for electricity and investment.

O n a o n e - yea r h o r i z o n i n E M , a s i d e f ro m Egypt and the Gulf, we like Greece (credit rating u p g ra d e s, a c c e l e rat i ng growth), and macro trends are reasonably positive in South Africa (SA) and Russia. Central Europe has slowing GDP and little or no credit growth, but long overdue credit rating upgrades. We think Turkey is messy, but we are still tempted by oneyear T-bills.

In FM, we are bullish on Nigeria (good growth, currency stability, falling interest rates) and like growth picking up in Kenya. Bank lending is booming in South Asia and we like Sri Lanka most. Pakistan still has to get July elections (and probably one more devaluation) out of the way, before the next reform cycle can get

underway. Francophone West Africa is also seeing strong bank lending and high GDP growth, while deleveraging is still the stor y in most of Anglophone Africa. The credit rating downgrade cycle i n A f r i ca ha s b a s i ca l l y finished; we think sovereign upgrades in 2019 is the story to start thinking about. Vietnam still looks good to us. Kazakhstan

Latin America (LatAm) as a whole looks like one of the most interesting themes for EM in the coming 12 months.

Overall, we think most of EM is in a good place, and EEMEA is fairly insensitive to US and China w re s t l i n g a b o u t t ra d e.

Africa is on the rise again, but to really take off, needs more investment and electricity in many

Africa looks good, as befits the thirdfastest accelerating region noted in the first graph above. While Armenia and Tajikistan are expected to halve their growth rates after a stellar (and unexpected) 2017 growth performance, the 3-4% growth rate for 2018 is expected to stabilise at the same level in 2019. Only Ethiopia is expected to keep slowing for two consecutive years. should be good (higher oil, cheap currency), but is held back by deleveraging and its proximity to geopolitically sensitive Russia. Argentina has got more complicated (slowing grow th, high inflation), but may benefit as

of the countries we cover.

Let’s make it happen.

GDP outlook Unlike October 2017 when we felt IMF and Bloomberg consensus were understating the US and Eurozone growth trajectory and the Fed funds

hiking profile (then twoto-three hikes), we have no big picture disagreement with current IMF a n d c o n s e n su s g row t h expectations. We do, however, draw your attention to the change in growth rates. This year, the IMF sees MENA accelerating t h e m o s t , f o l l o w e d by L a t A m a n d t h e Ca r i b bean, and then SSA. Asian growth is expected to be flat at around 6.5%. The big negative in 2018 and 2019 is in Emerging and Developing Europe; this is mainly a Turkey story.

Th e L at A m re g i o na l story is seen in the rapid grow th acceleration forecast for Chile, Brazil, Peru and Colombia within EM. In our EEME A remit, only the UAE, Egypt and Greece show significant acceleration in IMF numbers. Decelerating growth is most pronounced in Turkey, along with Czechia and Poland, Taiwan and Malaysia – ie industrial nations.

Heading into 2019, it is again LatAm (Mexico – presumably hostage to 1 July 2018 election risks, Colombia) and the UAE in the top-three spots, with Central Europe and Pakistan weakening. Note, we think both Russia and SA may grow by around 2% in 2018 which would give them similar acceleration to Greece in 2018 and SA might be closer to 2.5% next year giving a similar acceleration to Colombia in 2019.

In MSCI Frontier mark e t s, w e s e e t h e s a m e theme of Emerging European deceleration, while the fastest acceleration is expected in oil producers and S erbia. Kenya, Sr i Lanka and Tunisia also warrant positive attention. One surprise in the forecasts is the IMF assumption of Nigeria growi ng f a st e r t ha n A rg e ntina, but that is expected to reverse in 2019. Our SSA economist Yvonne Mhango is considerably more bullish than the IMF on Nigeria – expecting 2.9% growth (a 2.1-ppt improvement). Morocco’s slowdown this year is also expected to reverse next year (usually varying agricultural harvests explains GDP variation here).

In the Beyond Frontier countries, again oil exporters come out best,

from Republic of Congo ( w h e re G D P g ro w t h i s expected to accelerate by a stunning 9.2 ppts between 2017 and 2019) to Azerbaijan. Africa looks good, as befits the thirdfastest accelerating region noted in the first graph above. While Armenia and Tajikistan are expected to halve their growth rates after a stellar (and unexpected) 2017 growth performance, the 3-4% growth rate for 2018 is expected to stabilise at the same level in 2019.

Only Ethiopia is expected to keep slowing for two consecutive years.

One additional graph on Africa which may be i n t e re s t i n g i s t h e d o l lar GDP estimates of the IMF. We think if market exchange rates were used for Nigeria (as they are for SA), then SA was the biggest economy in Africa in 2017 and is expected to be again in 2018. But to be consistent, we should probably downgrade Angola to come in behind Morocco, and Ethiopia (where the exchange rate is overvalued and determined by the authorities) to come in behind Kenya (overvalued but not artificially so), and Zimbabwe to come in behind B o t s w a na a n d S e n e ga l and maybe a few others too. We think official IMF estimates putting Africa’s GDP at $2.2trn in 2017 and $2.4trn in 2018 are at least $100bn too high due to Nigeria alone.

Lastly, we like to keep our world view in perspective and win pub quizzes, by knowing the top-20 economies by rank. We have added US state GDP data, and our estimate for Africa’s GDP. We would draw attention to three points. First, our summer piece in 2014 s u g g e s t i n g t hat Ru s s i a would not catch up with Ca l i f o r n i a b e f o re 2 0 2 9 remains on track (indeed, 2029 looks overly optimistic right now)1. Second, for as long as we can re m e m b e r, Tu r k e y h a s been targeting 10th place globally, but it keeps bei n g 1 7 t h. T h i rd , S a u d i Arabia still has a smaller economy than the first home of the oil industry, Pennsylvania.

Source: Renaissance Capital

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