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Geometric to commence power supply to Aba in six months OLUSOLA BELLO

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L-R: Andrei Ugarov, partner, PwC; Austin Avuru, CEO, Seplat Petroleum; Esiri Agbeyi, partner, PwC; Udo Okonjo, CEO/vice chair, Fine and Country West Africa; Anne Rinu, head, property, Nigeria and West Africa, Standard Chartered Bank; Frank Aigbogun, publisher/CEO, BusinessDay Media Limited, and Fabian Ajogwu, principal partner, Kenna Partners, at the 2018 refined investors series, with the theme “Collaborating for New Heights and National Growth” organised by Fine and Country, in Lagos, yesterday. Pic by Olawale Amoo

Business outlook brightens ahead Christmas holidays As CBN confidence index rises to 65.6 points N

HOPE MOSES-ASHIKE

igerian businesses are showing more optimism on the macro economy in December as the confidence index (outlook) rose to 65.6 points from 64.4 index points in the previous month.

The analysis of business ex-

pansion plans by sector for December, showed that the services sector indicates greater disposition for expansion with an index of 32.1 followed by wholesale/ retail trade and industrial sectors with 18.8 and 8.2 index points, respectively.

The Central Bank of Nigeria (CBN) on Tuesday, released its business expectation survey, which showed that respondents’ overall confidence index (CI) on the macro economy in November 2018 was more optimistic at 25.9 point, when compared

to its level of 23.2 index points recorded in October 2018.

The optimism on the macro economy in November was driven by the opinion of respondents from services (14.9 points),

Continues on page 38

eometric Power Aba Limited will commence supply of power to its customers six months from now, the promoter of the company Professor Barth Nnaji told BusinessDay. This follows the signing of a Gas Sales and Purchase Agreement (GSAA) for the Aba Integrated Power Project, 141 megawatts power plant with Shell and its joint partners, Nigerian National Petroleum Corporation (NNPC), Total and Agip.

According to Nnaji, following the signing of the GSAA the next step to take would be the completion of all transactions.

This means re-evaluation of the machineries and equipment which have been installed but which need to be examined to be sure of their current status.

This he said will take a few months to do adding that the company cannot begin to look for customers until it has settled with the GSAA which has just taken place.

Another thing he said must happen before it commences Continues on page 38

Inside Oshiomhole, governors, senators shun Buhari’s campaign P. 2

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Oshiomhole, governors, senators shun Buhari’s campaign ...FG spends N2.7trn on infrastructure – Osinbajo JAMES KWEN, Abuja

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L-R: Yemi Adefulu, past deputy president, Nigerian-British Chamber of Commerce (NBCC); Oba Otudeko, chairman of the occasion; Akin Olawore, president, NBCC; Kayode Falowo, deputy president, NBCC, and Michael Olawale Cole, past president, NBCC, at the Nigerian British Chamber of Commerce 41st Presidential dinner and Awards in Lagos.

JVs, crowd-funding advocated as viable real estate financing options ... as stakeholders highlight need for collaborative efforts CHUKA UROKO, STEPHEN ONYEKWELU, ENDURANCE OKAFOR & BUNMI BAILEY

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oint venture arrangements, crowding funding and off-plan sales are some of the viable alternatives to funding real estate projects in Nigeria where cost of funds has made bank credit both inaccessible, unaffordable and unattractive, experts and industry stakeholders have said.

The experts explained that one of the biggest challenges facing players in Nigeria’s real estate sector is the accessibility and affordability of capital to finance development projects.

Commercial banks are not an ideal or suitable medium for financing real estate projects because whereas commercial bank deposits are short term in nature, real estate is for the long term which is usually vulnerable to the vagaries in the economy such as changes interest rates, exchange rates, and the rate of inflation.

“Nigeria is still a viable market. Capital is a challenge

but deals are happening. It means funds are available.

Players in the industry are making use of other financing options to fund real estate development projects,” said Andrei Ugarov, partner at PricewaterhouseCoopers (PwC) at the Refined Investor Series 2018 organised by Fine and Country West Africa in Lagos Tuesday.

Some of the financing options available include equity partnerships, pre-sales, debt financing, public private partnerships and mezzanine structure.

Companies such as Mixta Nigeria, UPDC and Landmark are local developers who have leveraged on partnerships with foreign firms to finance projects.

The Maryland Mall is an example of a successful partnership. The Wings Towers is another high profile and very visible office space that is also a product of partnership between Oando and RMB Westport.

To deal with challenges associated with funding, stakeholders in the industry are encouraged to focus more on

resourcefulness and to see amount of underutilised and real estate as a collaborative idle asset,” Okonjo said. venture it really is.

But Fabian Ajogwu, man“One of the trends we see aging partner, Keena Partners, in the real estate is pre-financ- warned of possible pitfalls of ing or pre-sales financing. This even the best joint ventures, is a situation where end-users advising that before entering pay their rent upfront to en- into any joint venture agreeable the company get capital ment care must be taken to to fund a project. This model find out, among other things, of financing is very innova- the strength of the project, tive,” Ugarov said. “End-users legality and structure of the in this case carry more risk development or business, the burden,” he noted. developer’s credit history, etc.

Udo Okonjo, Fine & CounOn the developer’s side, try’s CEO/Vice Chair, high- Ajogwu advised further that lighting the theme of the se- care must be taken to avoid ries, ‘Collaborating for New project cost over-run, point Heights and National Growth’, out that the implications stressed the need for collabo- could be grave as it has the ration in environment where capacity to change the story credit is dry and risk is high, of that project completely. hoping that gathering would “Challenges will come from act as a catalyst to create win- the financiers, off-takers, conning collaborations among tractors and a lot more stakestakeholders so that Nigeria holders”, he said, adding, “cost could grow its economy. over-run can make investors “The case for collaborating see the project executor unrein real estate cannot be stron- liable and untrustworthy, and ger than now with a sluggishly this can affect future projects,” recovering economy, where Ajogwu said. there’s not only massive in•Continues online at frastructure and protracted housing deficit, but also huge www.businessdayonline.com

$8.1bn repatriation: Court adjourns case between MTN, CBN to December 12 JUMOKE AKIYODE-LAWANSON & SEYI JOHN SALAU

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Lagos court on Tuesday, 4 December, adjourned the court hearing between the Central Bank of Nigeria (CBN) and MTN Nigeria over the alleged repatriation of $8.1 billion to 12 December, 2018, after lawyers requested to report on dispute settlement talks at a later date.

The CBN had on 29 August ordered MTN and four of its lenders to return $8.1 billion,

alleged to have been illegally repratriated and in breach of Nigeria’s foreign exchange regulations.

Sitting at the Federal High Court in Ikoyi, Justice Saliu Saidu, after hearing submissions from counsel on both sides including Wole Olanipekun (SAN); Damian Dodo (SAN); Fabian Ajogwu (SAN); Adeniyi Adegbonmire (SAN) and Bode Olanipekun (SAN) for MTN Nigeria and Seyi Sowemimo (SAN) and Ademola Akinrele (SAN) for the CBN, agreed that parties

should be allowed to pursue frivolous and calculated to “disan effort at resolving the dis- turb or otherwise interfere with pute out-of-court. the business of the company,” The Attorney General’s of- according to court documents. fice was represented by Senior A separate hearing on the matState Counsel, T.D. Agbe and ter was postponed yesterday, to C.H. Okoronkwo.

7 February, 2019.

Sowemimo told the court MTN has consistently that engagement between maintained that the allegaboth parties were “at an ad- tions are without merit and vanced stage” but no figures that it has fully complied with had been agreed and no li- all Nigerian laws and reguability assigned. lations concerning foreign MTN also faces a separate capital importation. $2 billion tax demand from the •Continues online at Attorney General’s office which the company denies and says is www.businessdayonline.com

dams Oshiomhole, All Progressives Congress, APC, National Chairman, APC Governors, Senators and other high ranking members of the party were Tuesday absent at the National Consultative Forum, a campaign event for the re - election of President Muhammadu Buhari, held at NICON Luxury, Abuja.

According to the notice for the occasion organized by the National Committee of Buhari Support Groups in collaboration with the Council for New Nigeria Initiative, Oshiomhole was to serve as the Special Guest of honour, with all APC Governors and Senators as guests but only Governor Akinkwumi Ambode of Lagos

State turned up with Senators George Akume, Abu Ibrahim and Hope Uzodinma.

President Muhammadu Buhari who was represented at the occasion by Vice President YemiOsinbajodisclosedthatthe APCcontrolledFederalGovernment has spent N2.7 trillion on the provision of infrastructure despite dwindling revenue due to drop in oil prices.

Osinbajo explained that between 2010 and 2014 Nigeria earned the highest amount ever in the country’s history from oil with the sum of $383 billion but the APC government has earned less than US112 billion but has done a lot not only in infrastructure development but human empowerment.

He also decried that when

Continues on page 38

France gets a taste of ‘Occupy Ojota’ protests DIPO OLADEHINDE

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rance’s decision to halt fuel tax hike after a series of street protest show how unpopular but necessary economic reforms can be difficult to implement in any economy whether developed or under developed. Most Nigerians can still remember how a similar protest in 2011 forced the previous Goodluck Jonathan administration to reverse a decision to reverse removal of fuel subsidies. Since that reversal, the country has spent close to N5 trillion on fuel subsidies, about twice what it has spent building roads within the same period.

French Prime Minister Édouard Philippe announced on Tuesday that the French government would temporarily suspend the controversial

carbon tax plan designed to curb fossil-fuel consumption, stating that people’s anger must be heard, and the measures would not be applied until there had been proper debate with those affected.

France has the largest percentage of diesel cars on the road, more than any other country in Europe, and the hikes in prices are a part of the country’s commitment to phase out gas and diesel vehicles by 2040. However, the actions have not gone down well with many French people, sparking series of street protests.

“Yes, there would usually be popular resistance to difficult reforms. But if the political class and wealthy, ruling elite are determined to implement them, they can,” Rafiq Raji, chief

Continues on page 38

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Reps deny Osinbajo’s impeachment plots KEHINDE AKINTOLA, Abuja

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eadership of the House of Representatives has dismissed the report on purported plans to impeach Vice President Yemi Osinbajo.

Abdulrazak Namdas, chairman, House Committee on Media and Publicity, gave this position in a swift reaction to the report credited to Johnson Agbonayinma (APC-Edo), who accused some federal lawmakers and political gladiators of sponsoring Osinbajo’s impeachment.

“There is no impeachment

notice before the House of Representatives. But if there’s anything outside we don’t know,” Namdas told BusinessDay. He observed that the report of the just concluded investigation into the activities of National Emergency management Agency (NEMA), adopted during the Committee of the Whole, in which the House recommended the recovery of N33 billion allegedly misappropriated by the directorgeneral of NEMA, was to be transmitted to the Executive for implementation.

The Adamawa lawmaker however observed that the Executive was at liberty to either

adopt the recommendations or otherwise. According to Namdas, the recommendations of any investigation conducted by the House do not require the adoption of the Senate.

Speaking earlier at a press briefing, Agbonayinma alleged that some political gladiators were using some media houses, and sponsoring collection of signatures that would culminate into Osinbajo’s impeachment, over the recent investigation into the financial impropriety levelled against NEMA. The lawmaker, who declined to mention the names of those behind the scheme,

said: “Not everybody has the boldness to come out with issues like this; I’m an APC and a Nigerian. This has nothing to do with being noticed by the VP, the issue of not securing their return tickets to the House might be the key as aggrieved members might not want to take national interest as their priority this time around.”

He also declined to speak on the number of signatures collected so far by the sponsors of the impeachment and whether the senators were involved in the impeachment plot. Recall that the office of the Vice President had penultimate week denied the alle-

gation on the N5.866 billion allegedly illegally approved in June 2017 from the Consolidated Revenue Fund Account for emergency food intervention of food security in the North East.

Agbonayinma said: “It has become necessary for me to add my voice to the call of many Nigerians on the purported campaigns of calumny by some political gladiators and media houses, which I call fake news against the office and person of the Vice President of the Federal Republic of Nigeria, Prof. Yemi Osinbajo.

“I am aware that signatures are being collated for the im-

peachment of the Vice President. The reason is because of the outcome of the NEMA investigation.

“For the records, the issues used in the probe on NEMA had to do with misappropriation of funds by the Director-General, and the day-to-day running of the agency vis-a-vis financial spendings, procurement processes, among others. “While commending my colleagues on the discharge of our constitutional duties, I am appeal to them to sheath their swords. I enjoin them to continue to do only those things that will promote peace, unity, happiness and prosperity in Nigeria.

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comment Small Business handbook

Emeka Osuji Dr Emeka Osuji School of Management and Social Sciences Pan Atlantic University Lagos. eosuji@pau.edu.ng @Emyosuji

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here is now some convergence of opinion on the issue of the socio-economic transformation of Africa. That consensus is that Africa must industrialize and transform itself from the present rudimentary and technologically static continent to one that can produce and control the value of its output, as against its current impotence on matters relating to the market price of its predominantly primary product output. This transformation is necessary if the continent is to fit into the rapidly changing global economic landscape. It is further compelled by the fact that the arrival of artificial intelligence will visit hardship, pain and probably death, on those who persist on ignorance as a national emblem.

Similar misfortune will confront those who speak any language other than the language of the Fourth Industrial Revolution anchored on science and technology.

At least, this much aggregation of opinion was evident at the recently concluded Africa Industrialization Week, held late November in Addis Ababa, Ethiopia on which we had dwelt previously.

There is no hope of economic transformation in a country that cannot take care of the health of its people. A country that discourages modern education based on science and technology and instead promotes materialism and wealth as the basis of leadership Character Matters with Daps

Dapo Akande Graduate of the University of Surrey, UK, author of the acclaimed book: “The last fight: A personal journey to discovering values.”

Contact: dapsakande25@gmail.com

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begin with a confession. I was one of the few Nigerians or even black skinned folks who were in full support of Trump presidency during the US presidential campaign. And to be honest, I made no attempt to hide it. It was for this simple reason. If Trump was going to make it that little bit more difficult for foreigners to emigrate to the US, then maybe, just maybe, Nigerians will turn their sights on how to make their own country a better place to live. So, I do believe my rationale was a patriotic one.

Wednesday 05 December 2018

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Africa’s socio-economic transformation as basis for poverty reduction is doomed to subservience to those that adequately fund the education of their citizen. That Knowledge is power is an adage that is not about to change.

Unfortunately, every evidence in certain countries of Africa is to the contrary.

Derivatively, there is also some semblance of the convergence of opinion as to the likely focal point, points or domain of the nucleus of this effort. Nigeria, which leads the continent in population and economic size, as well as in natural endowments, human and material, has been fingered and variously proposed as the likely arrowhead of this effort. I am one of those who believe that Nigeria is most suited to lead the way in the continent’s drive to industrialize, if and only if, she understands her responsibility, not just to Africa but the rest of the world. Other countries that have also been proposed as possible bright sports in the transformation and growth agenda of the continent are South Africa, Egypt, Algeria, Angola and Botswana.

Unfortunately, the only thing that qualifies Nigeria to even be in this league is her size. Nigeria has got it wrong on almost every other score. It has no institutions; no reliable criminal justice system and the rule of law appear to be on recess.

In a similar fashion, opinion is weighed in favour of starting Africa’s socio-economic transformation at the SME level, in order to drive the transformation effort from the known to the unknown. In doing this, certain prerequisites are fundamental.

It is critical to reassess Africa’s SME sector, at national levels, so as to be sure they are primed to receive the requisite therapy necessary for transformation.

‘

A country that discourages modern education based on science and technology and instead promotes materialism and wealth as the basis of leadership is doomed to subservience to those that adequately fund the education of their citizen

’

Most of our economies depend on microenterprises and not SMEs. We need to build up a critical mass of SMEs better than the current situation in Nigeria, for instance, where they constitute lass than one per cent of the MSME sector. Success happens when preparation meets opportunity. Their legal framework and operating environment must be congruent with the key tenets of a transformation agenda. Such reassessment is important if Africa is to avoid what happens at the national level, where socio-economic transformation has become a popular slogan for politicians that are either dishonest or have no clue as to the meaning of the concept of economic transformation.

The foregoing presupposes that the SME sector must be made a veritable receptacle for the reforms that improve their access to finance.

They must be made attractive not only to lenders but also the partners

Have we all been ‘Trumped’ My thinking was, if uncle Trump follows through on his campaign promise of putting Americans first, then our kleptomaniac leaders may be compelled to improve the lot of their own nation. Even if the motivation is not a sudden desire to serve the people, like they swore an oath to do, selfish interest may inadvertently compel them to do right by us; purely because the destinations which usually welcome them and their ill-gotten loot with open arms would have reduced by one. And a very big one at that.

Whether this has worked out quite as I hoped, your guess is as good as mine.

Suffice to say I’m as dumbfounded as the next person by some of uncle Trump’s verbal indiscretions since he came to office and the two fingers he seems to relish in sticking up at both the establishment and the traditional way of doing things. Presidential behaviour has assumed an entirely different meaning and as far as he’s concerned he owes no one any

and investors. In addition, they must be saved from the difficulty of providing the bulk of the Social Overhead Capital required for their operation. Less than 50 per cent of African have access to electricity and it is using less than one per cent of it production capacity. It therefore follows that economic transformation will begin with an honest attempt to provide basic infrastructure in our countries. For instance, being one of the countries with the highest rate of power outage and lowest level of power generation, Nigeria must begin with an honest decision to improve the supply of power, and other utilities that are currently nothing to write home about.

Economic transformation in Nigeria will begin with a programme of re-industrialization, having executed a cruel de-industrialization programme in the country over several decades. She must return from her heedless pursuit of raw material exportation to embrace some level of manufacturing. This will call for support from functional institutions. The work of such institutions as the Standards Organization, the Judiciary and law enforcement is critical in the transformation of the economy. Unfortunately, most of these institutions are still smaller than the men and women that run them; depending on the body language of certain key actors to make decisions – a national malaise of Africa’s only giant, Nigeria. To transform an economy, labour must be made more productive by shifting it from agriculture to manufacturing, processing or beneficiation of raw materials. A functional industrial policy, with appropriate and responsive incentive regime must be at work. That was the way Malaysia raised their industrial capacity.

Without doubt, socio-economic

transformation is a long and arduous process. It is not a fly-by-night event but a process of intense discipline and single-minded transparency. Every process that involves eliminating or resolving the powers of vested interest is invariable strenuous. Economic transformation is one such process and encompasses all the efforts needed to increase the productivity of labour. It therefore requires the movement of labour from a low productivity activity to one of high productivity. It involves a fundamental change in the structure, institutions and systems operational in an economy. Nigeria stands a chance to be a nucleus of the transformation of Africa if it understands certain fundamentals of socio-economic management.

Such fundamentals include the understanding that institutions matter, and that extreme poverty coexisting with extreme wealth is an anomalous situation that is unsustainable.

Institutions define how states arrive at decisions, how such decisions are implemented and how results are measured. Effective institutions are a fundamental requirement to curb poverty. They embody robust legal frameworks, effective and representative parliaments that are not mere aggregation of errand boys of governors, as we have today in Nigeria. Effective institutions include adept civil service and bureaucracy that is neck-deep in the promotion of the people’s welfare. Our institutions do not work because bribery and corruption in all its forms – discrimination, nepotism and tribalism - are rife and a shared value in the highest places in our system.

what’s best for his country and its people. Get her the best deals possible. Even if that means fraying some sensibilities, it’s a small price to pay.

Since Trump became president, the US economy has been booming. The stock market has hardly ever had it so good. Unprecedented number of jobs are being created monthly. Once comatose factories are coming back to life as goods hitherto produced outside of the US are now manufactured in God’s own country. Call it protectionism if you like but he’s doing exactly what he promised the electorate during his campaign. He’s putting America first. As nauseating and downright reprehensible some of his campaign promises admittedly were, this man has faithfully gone about implementing them. An apparent penchant for alternative facts aside, he has gone on to display an enviable level of integrity. His campaign promises did not die a natural death as they remained mere promises but surged to life through systematic implementation and because of this,

his base trust him. Why? He didn’t abandon his covenant with them once he got what he wanted. Warts and all, he gives us no reason to search for further evidence he went there to serve. For the first time in world history, we’ve begun to hear of companies valued at over a trillion dollars. These behemoths can almost literally buy Nigeria and still have significant change left over. Oh boy! And it’s all happening during uncle Trump’s time. Love him or loathe him, that’s the fact.

Whether all this will ultimately result in making America great again is something we’re yet to see.

The greatness of a nation cannot be measured solely by its economic distinctions. Many other factors must also come to play. I won’t even attempt to name them all here but one I will mention is, its contribution to our sense of humanity. At this point, the very current Khashoggi case comes to mind.

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apologies. Not the nation’s long-time allies in Europe and neighbouring Canada, nor multilateral organizations as represented by NATO. Quite surprisingly, he doesn’t care much either for diplomatic niceties when dealing with a country whose global ambitions daily threatens the USA’s increasingly precarious position at the top of the economic hill. Just ask China. But I must say this; and if one day I’m tempted to put all decorum to one side, I would gladly shout it from the roof top, in many ways I wish we had a leader like Trump. I really do. For all his controversies, big, and I mean big mistakes, I admire him for one thing. He puts his country first. Especially when it comes to the economy. The world was shocked when he opted to apply the same principle in dealing with the USA’s traditional friends, allies and trading partners such as Britain, France, Germany, Canada and Mexico to name just a few as he does with its biggest rival, China. Except in a few cases he declined to offer anyone preferential treatment. His overriding goal is to do

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Wednesday 05 December 2018

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The nexus between public holidays and national productivity (2)

EMEKA OKOLO Dr. Okolo is a Chartered Stockbroker and Management Consultant based in Lagos.

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cursory glance at the above table reveals that with the exception of Japan and to a lesser degree Austria, none of the other countries belongs to the league of highly industrialized economies of the world. Nigeria’s position is highly intriguing; second in terms of GDP but last by per capita income standards.

A further perspective to the discourse is apposite by undertaking a comparison with those of ten low global public holiday nations.

Looking at the above table, it is evident that with the exception of New Zealand and to a lesser extent, Romania, all the other countries can be classified as industrialized with robust economies. While only one country in table 3 can boast of a trillion dollar economy, five of the ten countries in table 4 operate trillion dollar economies. A pointer to the likelihood that there exists a positive correlation between low public holidays and high productivity levels and vice versa! Further research is therefore highly recommended and this study may provide

OKECHUKWU KESHI UKEGBU Ukegbu is a public affairs commentator and writes via keshiafrica@gmail.com

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urrently, hope rises for the outcast, also referred as “Osu” in Igboland as discriminations against them, God willing, will end on December 28 this year.

This is courtesy of traditional rulers in the South East region. It will be recalled that recently the traditional rulers in the South East endorsed the abolition of the obnoxious practice on December 28. The monarchs in a statement noted that the event marking the abolition of the Osu caste system in Igbo land would take place at the Nri Palace in Anambra State.

According to the regent of the ancient Nri Kingdom, Prince Ikenna Onyesoh, as saying it would be “spiritually suicidal” for anyone to continue with the obnoxious Osu practice after it had been abolished.

The regent also noted that come December 28, 2018, more stringent spiritual implications will be pronounced from Ikpo Eze-Nri against such devaluation of mankind, after an extensive spiritual abrogation exercise.

The proposed abolition of the Osu caste system recently got a boost as the Anambra State Government endorsed the date. In a letter of endorsement by the Commissioner, Anambra State Ministry

the rallying point or at least a point of departure depending on the would-be researcher’s inclination.

Issues for Nigeria from this synoptic study: Though the argument can be proffered that the level of Nigeria’s productivity and abysmal per capita income can be linked to a plethora of reasons, corruption being a vital element, no serious minded person will dismiss the issue of sometimes unnecessary holidays and the work ethic of an average Nigerian when he is at work and not observing any public holiday.

Not a few Nigerians including this writer have questioned, for example, the essence of declaring May 29 (now June 12) as a public holiday to mark democracy day when Nigeria’s independence is celebrated on 1st October. More worrying is the practice of even shifting the observance of May 29 to a working day any time it falls on a weekend. In the year under reference, it fell on a Sunday but the following day (Monday) was declared a public holiday.

Ditto for the Independence celebration of that year! This practice has been on since 1999. Check 2004, 2005, 2010 & 2011 et cetera and calculate the humongous revenue lost in such leisure periods. Not to talk of needless restriction of movements for solid three hours every last Saturday of the month in most states of the federation. Happily, a strategic state in the economic metrics of the country, Lagos, has seen wisdom in discontinuing the colossal waste of man hours and

revenue in a fruitless exercise. The same sentiment applies to restriction of movements during election periods and the whimsical declaration of spurious public holidays by some state governments. These areas need serious interrogation.

Religious holidays are known worldwide but the application of

these holidays in Nigeria more often than not gives serious cause for concern. In the year under reference, specifically during the Eid el Kabir celebration, Nigeria set the unprecedented record of declaring three straight working days as public holidays due to some official indiscretion and lack of due

diligence. Nigerians gladly accepted that with unparalleled equanimity just because it was a religious issue and a sensitive one at that. But do countries develop on the basis of emotions and sentiments? Even in 2017, the sallah accompanying the end of the Ramadan fast (Eid el Fitri celebration) fell on a Sunday but two public holidays (Monday & Tuesday) were declared for it when one day could have sufficed. The list can go on ad infinitum, albeit ad nauseam.

As a developing economy that has lost so many grounds in the trajectory of economic growth and development, Nigeria must make the hard choice of either imbibing the ingredients that propel economic growth and development or continue to stagnate in its present state. A vital ingredient for the former is the nation’s attitude to productivity. Showing utmost sense of responsibility in the declaration of public holidays is definitely one of the ways to enhance productivity. Public holidays should be observed on the days they fall.

However, if a shift for any religious event that falls on a weekend should be considered, it should not be for more than a day. Corporate bodies and government establishments in Nigeria must encourage their staff to take their annual vacations and not substitute public holidays for their vacations as most are wont to do presently.

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Appraising the December proposed abolition of OSU caste system in Igbo land of Diaspora Affairs, Indigenous Artwork, Culture and Tourism, Sally Mbanefo, to the Director, Celibacy International, the commissioner gave assurance that the state government’s unflinching support to abolishing the practice in Igbo land.

The letter reads: “Ministry of Diaspora Affairs, Indigenous Artwork, Culture and Tourism has been inundated with your efforts in raising awareness on the traumatic stigma of Osu/Ohu/Ume Caste system. As a ministry, we also commend your selfless and bold commitment to the abolition of this demeaning caste system in the land.

“Consequently, we wish to express our unflinching support to abolishing the scourge of this unfortunate practise in Igbo land.

We, therefore, have no reservation, whatsoever, in endorsing your project to abolish the Osu practise”.

Also, the support of the religious world is not spared in this laudable project. Endorsing the December 28 deadline for Osu abolition, Bishop Obi Onubuogu of The Rock Cathedral, Enugu, is leading a cross section of high profile South-East religious leaders to Agukwu Nri for the abolition exercise.

It is apt to do an appraisal of efforts of notable individuals and

organisations to end the obnoxious practice. One of such efforts is that of late Dr. Nnamdi Azikiwe. In his historic address to the defunct Eastern Nigeria House of Assembly on March 20, 1956, described the Osu Caste System as “devilish and uncharitable to brand any human being with a label of inferiority due to the accidents of history”. Zik further explained that the objects and reasons for the abolition of the Osu Caste System are humanitarian and altruistic.

In the words of the Great Zik of Africa, “no one should join in the encouragement of a system of society where one stratum can superciliously claim to be descended from the best brain and would, therefore, consign others to a scrap heap of their own invention and ostracise them socially”.

Similar efforts were made by late Dr. Sam Mbakwe who banned the Osu Caste System in the old Imo State. Also, late Commodore Emeka Omeruah in the old Anambra State used bulldozer to demolish the Efuru Idoha shrine in Igbo Etiti Local Government Area of Enugu State.

Osu caste takes the form of slavery and slave trade whereby a person(s) is/are bought as a slave(s) and dedicated to a god. The people are, subsequently, viewed as the representatives of the god. This practice

is, of course, humiliating and negated both legal and biblical perspectives on individual freedom. Where it is practiced, an Osu is not allowed by the traditional law to marry a free-born. He or she is neither permitted by the traditional law to keep other forms of relationships or affiliations with those regarded as free-born. The caste had undergone several adjustments during the era of colonialism, had been affected by the decree enforced by the white man to abolish slave trade.

It is a bit difficult to trace the exact period when the Osu Caste System started. But one thing is glaring: the existence of shrines in most communities in Igbo land which are attended by priests and their followers. The priests served the daily spiritual needs of people who visited the shrines as the intermediaries. According to a school of thought “the deities were like institutions and with the growth of more powerful deities; the need for more hands in the service of such deities arose. With time, those devotees were given names like Ohu ma, osu, ohu arusi, oru alusi, achi-ebo etc depending on the part of Igbo Land.

Those people and their offspring were further seen as sub human beings, the slaves and unclean class by those who regard themselves as superiors, free born and masters”.

The treatment meted out to the Osu flouts the provisions of the Universal Declaration of Human Rights.

Article 1 of the declaration states: “All human beings are born equal in dignity and right. They are endowed with reason and conscience and should act towards one another in a spirit of brotherhood”. Article 4 of the same declaration states: “No one shall be held in slavery and slavery shall be against the land.” It also negates the Abolition of Slavery Act of 1806 and as well as the Magna Carta of 1215.

The practice of Osu cast system is clearly painted in Chinua Achebe’s “No longer at ease” where Obi Okonkwo’s proposals to marry Clara was vehemently opposed by his people because Clara was an Osu. The annoying thing is that the discrimination persists despite the high presence of Christianity in southeast-Nigeria, and despite the biblical injunction in Christ there is neither Jew nor Gentile, and neither freeborn nor slave.

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comment OMALE OMACHI SAMUEL Samuel is of the Centre for Social justice, Abuja. oma_omasam@yahoo.co.uk +2348173736764

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he men of Nigeria Police Force where once civilians and will later in life turn to civilians, either by retirement, resignation or dismissed. Like the popular says, whatever goes around comes around. When Nigeria civilians took to the street to protest for act of injustice done to them, or when they are suppressed, oppressed, or deprived of their fundamental human rights, and they tried to voice out by protesting to draw the attention of the authority concerns to their issues, the men of the Nigerian Police Force often be used against the civilians to tear-gas and dispatch them without minding if any of them will get injured or probably died in the cause of justifying their allegiance. We have several examples of these scenarios, which Google can assist.

These days, some men of the Nigeria Police Force now realized that every citizen has the right to protest and press home their demands, and the men of the Nigeria Police Force can now take to the street to block road and protest, and nobody obstruct or tear-gas them or spray hot water and pepper on them. Ordinarily, can civilians try that? Then I ask; who will tear-gas police for civilians?

I recall the event that happen in July this year, when the policemen in Maiduguri, the Borno State capital and epicentre of the Boko Haram insurgency, took to the streets shooting into the air and chanting war songs in protest of what they called six months unpaid allowances and the video clips went viral on traditional and social media. But the Nigeria Po-

Yinka Olaito Olaito is a communications and media specialist based in Lagos

F

ake news has grown in an astronomic proportion.

This is a major challenge of our ever involving technological advancement. Technological advancement as we know gave rise to information overload and unhealthy competition for a desire to be top news breaker.

Many care less about the source.

Professional laziness is now in the increase within the fourth estate of the realm itself.

In an informal media group chat we participated in last week, an uninformed member raised the issue of President Buhari’s cloning.

Those of us who knew better tried hard to convince this individual there was no truth in that. But he went on to produce links to ‘credible sources’ according to him which had done ‘extensive report’ on it according to him. It was not heard to see the point. Those sources he shared were sources

Wednesday 05 December 2018

comment is free

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Who will tear-gas police for civilians? lice Force Headquarter in Abuja denied that it was not a protest.

Ok, let’s agree it was not.

Also, according to the media reports on the 23/11/2018, it was reported by The Nation Newspaper (http://thenationonlineng. net/anxiety-police-protest-pooraccommodation-imo/), “for two days the hooded police officers barricaded the Owerri/Orlu road in Owerri, the Imo State capital resulting in heavy gridlock and panic in the area. Shooting sporadically into the air, the demonstrators who hid their identities also set bonfires on the highway”. Narrating their ordeal to newsmen, one of the protesting officers said, “We have been pushed out of our quarters on Orlu road by the management of Federal Medical Centre Owerri. To make things worse, our commander supported the act and no alternative place has been provided for us”. Interesting!!! That is what I called the outcome of bad governance.

Don’t misquote me, I am not happy with their situations, neither will I ever encourage such abnormally to continue in the system of governance. But the truth be told, will they support the civilian if such action is taken? Even if they will not join the protest, will they allow the citizens to exercise their rights, which also include protesting to let the public known their plight? Or to present their case to the appropriate authority concerned? Over time, such opportunity was thwarted by the men of the Nigeria Police Force with the support of their sister agencies.

Often time we heard that Police is our friend; are they really our friends? The amazing thing in most cases is the fact that they used their guns, which were bought with the tax payer’s money to intimidate the innocent citizens, while the

‘ Often time we heard that Police is our friend; are they really our friends?

’

bandits will be there somewhere raving the community at will and you dare not challenge them. I am once a victim, so I know what I am talking about. Ask for evidence, and you will get it.

I have watch videos where the patriotic security men helped the good citizen in Ukraine to dump their corrupt politicians into waste-bin; saying if they cannot respect them and their laws, they can respect waste bin, and that sends a strong warning signal to the corrupt politicians in their country to restore dignity into the business of governance. Can that happen in Nigeria, if the citizens that tried that will not receive a live bullet from our security forces?

The truth is that our society will not develop with such attitude on the part of our security forces. In many cases, such attitude has incurred numerous judgment debts to Nigeria government with the bag-longs of damages and compensations to be paid to uncountable Nigerians, which range from accidental discharge, abuse of human rights, force bribery etc, and the government still use the tax payer’s money to settle the debt.

In many cases, they appealed and spend more money than necessary to defend what is an undeniable

and unquestionable situation, instead of using such money to equip the police and get them the first class training they required.

In other clime, security forces are well-taking-care of, and likewise every other citizen; not to impoverish them in order to take advantage of them to cause the commotion we are seeing in our society. They supposed to be catered for, such that, none of them will be at the mercy of any corrupt politicians to be used or have cause to demand bribe as it has been alleged many times in the past. The untold hardship of some of our security forces has pushed many of them to commit the crimes they were employed to prevent at low and high-level places to the detriment of innocent Nigerians. This situation will be difficult to prevent, as long as our security forces did the bids of the corrupt politicians. For instance, in June 2018 at Ekiti State gubernatorial election campaign in Ado Ekiti, Opeyemi Bamidele was accidentally shot by a policeman and the investigation revealed that the police officer was posted to a Bank in Ikeja, Lagos State and a politician, whose the name was withheld brought him to Ekiti State for notorious assignment, and this is one out of many.

Over the years, some men of the Nigeria Police Force have allowed themselves to be used by corrupt politicians against the innocent citizens; as if we are not Nigerians; or we are not equal before the law as it used to be, or they forget that will become civilians one day? I dare to say that what divides us can equally unit us. If bad governance has succeeded in dividing us over the years, they should also know that the same bad governance can still bring us together in a united force to fight the evils in our com-

munities for a common goal to have a better society, where every citizen will be happy and proud to be a Nigerian.

My advice, when next the citizens are protesting for a good cause, Nigeria Police Force and other security agencies should protect them and not tear-gas them. To have a better Nigeria, it is essential the Security Forces appreciate the need to collaborate with civilians or civil society organizations (CSOs) in tackling developmental challenges. The issues of bad governance, corruption, crimes and all manner of insecurity in our country should be a collective fight and not we versus them. Endeavour to treat other Nigeria citizens and foreigners with respect, and bearing in mind that their services are not only to man but also to God. Equally remember too, that one day, they will leave the uniform or the uniform will leave them.

Finally, the 2019 general election is around the corner, I call on the men of the Nigeria Police Force to depart from partisan politics, and face the business of security and security alone. The 2019 general elections can only be free, fair and credible, if the Nigeria Police Force, Nigeria Army, Depart of State Security Service (DSS), and other security agencies play their roles according to the rules of engagement. Again I advise, if any of them is interested in politics, he/ she should resign and join the political race so we can have a saved and better Nigeria of our dreams.

God bless my fellow civilians, God bless Nigeria Police Force and other security forces, and God bless the Federal Republic of Nigeria.

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Fake news credibility and source influence he had developed a soft spot for.

We knew better these sources are known for unverified news.

The fact is fake news and misinformation has no credibility outside the source. Where there is no wood, fire may not burn is a popular Nigerian adage. We must admit that adage needs some modification in this age of gas. This is a topic for another day.

News outlet therefore must necessarily do their due diligence before given credence to any form of information or news story. People’s thirst for information must not be marred with fake news. News outlet need to create a level of ethical responsibilities which can prevent the mainstreaming of fake news by premium credible sources with stronger influence on the society and news consumers.

In a recent report on fake news

by Knight Foundation which has been supported by Becca Lewis, fakes news and misinformation do not gain notoriety and a level

of believability until mainstream media gives it a subtle attention through bringing it up for discussion. The point is we cannot totally blame mainstream media for this act as the aim may be to dissuade the news consumers’ community from accepting the news as true.

But in a way, fake news and misinformation often gain popularity and credibility because of this singular act.

Another way fake news become part of the conversation is the source of the information. There are many online influencers today whose words are taken as final by their followers. These influencers can be misinformed but trusted friends, who have no time for fact checking. But who are willing to ‘forward as received’. This kind of message is common within social media groups, WhatsApp groups seem to be gaining notoriety for this.

Coming back to the news story about President Buhari’s cloning

cited above, our Minister of information and the ruling party had helped in mainstreaming the news to the extent that the President himself had promoted the news at the international climate change meeting he is presently attending in Poland.

There has been another unverified story about Atiku Abubakar, People’s Democratic Party’s Presidential candidate, with regards to his visit to the United States of America. Many online news platforms carried the story Atiku had secured USA’ visa and had traveled to the USA immediately last week.

Only to be told by one of his aides or can we say one of his purported aides that Atiku went to United Kingdom and not United States as been speculated.

The level of misinformation even from the so called premium media outlets is becoming a source of concern to all. In all these United Nations Educational, Scientific and Cultural organization (UNESCO)

is on the frontline of promoting media and information literacy which not only help the society but more than anything empowers news consumers to gain better appreciation of news sources and how to sieve weed from the crop.

UNESCO Media and information literacy policy framework application will benefits our society more in this age as it encourages increase democratic citizens’ participation with strong awareness of ethical responsibilities as a global citizen while encouraging diversity, plurality of dialogue with a high sense of responsibilities. Beyond these, we need to empower every news consumers with strong ability and will from spreading ‘shared as received’ messages or news story as they add no value to the society.

In other words, we all have a part to play in fake news elimination in our society.

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Wednesday 05 December 2018

Publisher/CEO

Frank Aigbogun editor Anthony Osae-Brown DEPUTY EDITORS John Osadolor, Abuja Bill Okonedo NEWS EDITOR Patrick Atuanya EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure GENERAL MANAGER, ADVERT Adeola Ajewole ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso SUBSCRIPTIONS MANAGER Patrick Ijegbai CIRCULATION MANAGER John Okpaire DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

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Editorial

Centrality of FDI in economic development

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here is now unanimity among economists that Foreign Direct Investment (FDI) is a key part of private sector investment which is needed to drive economic growth in developing countries. FDI is particularly needed to complement the level of domestic investment, as well as “securing economicwide efficiency gains through the transfer of appropriate technology, management knowledge, and business culture, access to foreign markets, increasing employment opportunities and improving living standards.”

What is more, studies have consistently shown a strong relationship between foreign investment and economic growth. Examples also abound. For instance, Singapore, a poor, inconsequential former British crown colony with a meagre population of 1.6 million in 1960 and with no natural resources, was able to transform itself to one of the richest countries in the world with the third highest GDP per capita partly through attracting foreign investment into the country. To put it simply, large inflows of FDIs are now a sine qua non for developing countries to achieve a sustainable high trajectory of economic growth. It therefore goes without

saying that developing – and even developed – countries are always in competition to attract FDIs into their countries.

Central to a country’s ability to attract FDI is its ease of doing business. Besides the more technical requirements, which consist of infrastructure and access to raw materials, communication and transport links, and skills and wage costs of labour, there are much more central requirements of security, political predictability, social cohesion and upholding the rule of law, part of which must consist of a strong and independent judiciary that will adjudicate promptly and impartially on trade disputes.

Besides being prerequisites for attracting FDIs, these are actually preconditions for sustainable development in any society.

Sadly, Nigeria is doing badly all of these scores. Besides its macroeconomic instability, dilapidated or absent infrastructure and lack of social cohesion, it has a much more debilitating problem of insecurity, political unpredictability and a culture of trampling on the rule of law.

Of course, Nigeria naturally has the potentials to attract lots of FDIs because of its size, population, natural and human resources; and investors are willing to overlook its unstable macroeconomic environment, the underdeveloped

infrastructure and social tension and still invest in the economy.

Sadly however, what most investors are unwilling to accept is political unpredictability and a culture of impunity. Sadly, it is these two instances that Nigeria is most notorious.

The history of FDIs in Nigeria is a history of government recklessness, unilateral and illegal termination of agreements, contracts and projects, often without any compensation.

That has not ended even with the return to democratic governance and has continued to this day. Take for instance, the recent travails of successful foreign businesses in Nigeria like the South African telecommunications giant, MTN and pay TV firm, Multi Choice. Another shameful example was the attempt by the National Assembly, last year, to illegally, unilaterally and surreptitiously amend the Nigerian Liquefied Natural Gas (NLNG) Act to force the company to remit 3 percent of its annual budget as funding to the Niger Delta Development Commission (NDDC) against the contract willingly entered into by Nigeria and the other stakeholders of the NLNG covered by Bilateral Investment Treaties (“BITs”) with France, The Netherlands and the United Kingdom to retain agreed fiscal and security regimes of the investment and not to levy any tax inapplicable

to companies nationwide.

Regrettably, it is always the case in Nigeria that once investors come in and their investments begin to flourish, Nigerian regulatory agencies or even governments begin to heckle these businesses, resurrecting hitherto forgotten infractions, seeking to extort money or subject them to hitherto unknown, un-agreed, hurriedly enacted and ultimately unjust laws and regulations in the name of protecting national interests. This is giving us a bad name, making the country unpredictable and thus, unattractive for investments. Yet the song on the lips of every government – and they are known to travel to the ends of the earth soliciting for it – is that of seeking for foreign investments.

The most depressing part is now the attitude of Nigerian public officials, which suggests calling the bluff of foreign investors and telling them to keep their FDIs. Meanwhile, virtually every knowledgeable person in the country knows the country does not have the resources to provide the necessary infrastructure, amenities and jobs needed to revamp the economy and assure sustainable economic growth. The government must begin to reset its priority and rein in its overzealous officials who appear to know nothing about the fundamentals of growing an economy.

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Wednesday 05 December 2018

In association with

a g @ bu s ines s dayo nl ine. co m

Bank loans to farmers hit highest level in 3years …as politicians hunt for votes Bunmi Bailey

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igerian banks credit to the agricultural sector hit its highest levels in three years as loans to farmers increased to N592 billion from N491 billion, a National Bureau of Statistics bank credits report said.

The loan to the sector is the highest since the first quarter of 2015.

On a year on year basis, bank loan to the sector increased by 21 percent from N491 billion in q3 2017 to N592 billion in q3 2018.

Also, on a quarter to quarter basis, it increased by 13 percent from N523 billion in q2 2018 to N592 in q3 2018.

Players in the industry attributed the increase in bank loans to the sector to the Central Bank of Nigeria (CBN) intervention programmes targeted at supporting smallholder farmers with finance.

Aboidun O lorundenro, operations manager, Aquashoots Nigeria said, that most of the loans recorded were from the CBN but only disseminated to the farmers through the commercial banks.

Olorundenro said that the increase might be as a result of the country’s election season, as politicians vie for public office.

In August this year, the CBN

Audu Ogbeh, Minister of Agriculture and Rural Development; Nike Akande, chairman, NEPAD Business Group Nigeria (NBGN); Heather Akanni, technical assistant to the Minister of Agriculture on Food Security; Lola Alonge, board member, NBGN and Ibrahim Kasakogi, a BATN Foundation beneficiary from Wushishi community in Niger State at the BATN Foundation’s exhibition stand during the 2018 ath NEPAD Rice Summit held at Abuja Sheraton Hotel recently.

approved the disbursement of about N75billion as loan to farmers in the 36 states and the Federal Capital Territory (FCT) under the Nigerian Incentive-Based Risk Sharing in Agricultural Lending (NIRSAL) The loan guarantee scheme is a public-private sector initiative

set up to transform the country’s agricultural sector. It was initiated by the apex bank, the Bankers’ C o m m i t t e e a n d t h e Fe d e ra l Ministry of Agriculture and Rural Development, to guarantee 75 percent loans provided by Deposit Money Banks (DPB) to farmers as part of efforts to transform the

TOTAL trains 21 smallholder farmers in agribusiness GODFREY OFURUM

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otal Nigeria has trained about 21 smallholder farmers in Enugu State in agribusiness under its TOTALpreneur programme.

The programme, which was also implemented in other states of the federation, is part of the company’s social responsibility initiative to contribute to food security and for the attainment of the country’s

Sustainable Development Goals.

The beneficiaries were trained in technical, business, operational training, processing and packaging, branding and marketing, the use of ICT in agribusiness and leadership skills.

V i n c e n t Nn a d i , e x e c u t i v e manager, Total Upstream Nigeria Limited, at the graduation ceremony of the smallholder farmers’, explained that the programme was an initiative of the Nigerian National Petroleum Corporation and Total Upstream

L-R: Brent Omdahl, commercial counselor, U.S. Consulate, Lagos; Oluwatoyin Akomolafe, president, Nigerian-American Chamber of Commerce (NACC), and Lazarus Angbanzo, president, American Business Council at the NACC November 2018 Breakfast Meeting in Lagos on 28th November

Nigeria Limited and its partners.

Nnadi, who was represented, by Delight Sunday-Anecho, an executive manager with the firm, stated that the company was consistently committed to giving back to the communities, through human, social and economic development.

He explained that the programme was implemented in all states of the federation, irrespective of whether or not they are oil producing.

“A well-developed food chain is essential for the development and success of the Nigerian agribusiness sector,” he said.

“Lack of agricultural storage facilities and knowledge has made farming in Nigeria less attractive venture.

“Hence, Total and her partners intervened in creating awareness and increasing capacity on the value addition that these farmers could leverage on to make a success of their farming business,” he added.

Nnadi, who encouraged the trainees to apply the knowledge they had got, noted that small holder farmers are key to achieving food sufficiency.

“Plant for subsistence and become a giant, if you apply the knowledge you have got here, because the ground is full of money.

country’s agricultural sector.

Additionally, in that same period in August, the CBN announced that the commercial banks and the apex institutiobn, will commence channelling the Cash Reserve Requirement (CRR) kept in the apex bank vault to agricultural and manufacturing lending at single

interest rate of 9 percent.

Experts noted that the biggest challenge confronting farmers is insufficient access to agro credit, which according to them is limiting farmers’ ability to boost productivity and improve their livelihoods.

“Finance is the biggest challenge confronting farmers. It is a very serious problem that the government need to address by providing farmers will single digit loans,” said Tola Faseru, national p re s i d e nt, Nat i o na l Ca s h e w Association of Nigeria.

Some other players in the sector disagree with the NBS figures.

“I am surprised by this figure.

The third quarter of the year is the end of planting season. This is the beginning of the harvest season.

To me it is surprising until one begins to see the analysis of this loan,” Emmanuel Ijewere, vice president, Nigerian Agribusiness Group (NABG) “Approval of loans by banks should be sometime in January and to peak somewhere around May-June. That should be around the second quarter. But to say that it peaked up in the third quarter, what was the money taken for? If it was a value chain, then what part of the value chain was it used for. I really do not believe in such figures,” Ijewere further added.

Tesscom West Africa promotes Nigeria’s first rice festival TELIAT SULE

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igerians will have the opportunity to experience the glamour of the international rice festival at home for the first time, courtesy of the maiden Nigeria’s Rice Festival scheduled to hold in Lagos.

The event, which is an initiative of Tesscom West Africa, is meant to promote rice which is widely consumed in Nigeria as an object of national unity among the different ethnic nationalities in the country, as it is done across the world.

Tesscom, which is an acronym for Total Exhibition Support Services Company, is the owner of the Nigerian Rice Festival.

At a press briefing held at Alausa Ikeja, the organisers of the event said the forthcoming rice festival aimed at celebrating our collective identity as a nation in foods that have evolved through our nationhood such as jollof rice and have given us a global food identity. “ T h e f e s t i v a l i s a t w o - d ay convergence, designed to celebrate rice from seedlings to the table and to bring together, all operators in the rice value chain, from start-ups to major stakeholders as well as everyone of relevance and associations in-between.

“The average Nigerian will be able to give feedback to the farmers live and direct. People will have the chance to communicate and share their rice experience by asking questions such as: Which local rice specie is best for fried rice? How do you cook your own concoction rice? How do I become a rice farmer? People will have the chance to talk to one another”, Kemi Ilori, a consultant pharmacognosist and the convener of the Nigeria’s Rice Festival, said.

The press conference was attended by other stakeholders in the rice value chain including Segun Atho, deputy national president, Rice Farmers Association of Nigeria (RIFAN); Oladehinde Ariyo; an agronomist, Ayoade, and other coordinators of the project such as Adam Sulaiman, Olubukola Ayoade, among others.

The first national rice festival was held on October 5, 1937 in Crowley, Louisiana, the United States of America. It was renamed International rice festival in 1946 after the end of the Second World War. The rice festival is now being held in different notable cities across the world.

The event is schedule to take place 8th and 9th of December 2018 at the Adeyemi Bero Auditorium, Lagos State Government Secretariat, Alausa Ikeja.

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Green River Project: Oando, others boosting food security in Niger Delta Josephine Okojie

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igeria is making determined efforts to ensure that agriculture and allied services play a key role in its quest for economic and revenue diversification.

This is to fill the gap created by the negative impact of the drop in oil prices on the economy, which include high rate of unemployment.

To s u p p o r t t h e c u r r e n t diversification drive of the Federal Government, Oando, Nigerian Agip Oil Company (NAOC) and the Nigerian National Petroleum Corporation (NNPC) through a joint venture partnership have demonstrated a commitment to developing the Niger Delta agricultural sector in such a way that farmers’ productivity would be impacted upon positively to meet up with the ever-growing demand of food in the country.

Under the JV partnership, the Green River Project (GRP) initiative was initiated to make farming attractive to the youth and target other farmers, as well as provide the platform for acquisition of knowledge, skills and techniques in modern agricultural practice with a focus on land development and management, new technologies in crops, livestock, fisheries, postharvest handling, processing and packaging among others.

Through the GRP initiative, Oando and other joint venture partners seek to promote the rural economic development in the Niger Delta through agriculture, while helping to prevent further soil deterioration in the region.

“The GRP is an initiative that lifts the communit y through increased agricultural productivity, enhanced income for farmers and improved livelihoods within the community; on a larger scale it supports the acceleration of the

L-R: Lorenzo Fiorillo, vice chairman and managing director, NAOC; Tiani Alessandro, GM -district PH, NAOC and Ainojie Alex Irune, COO, Oando Energy Resources during the 22nd edition of the Farmers Day Celebration, a GRP initiative for farmers in the Niger Delta region which was held recently in Igbogene, Bayelsa State.

nation’s economic development through food sufficienc y and economic empowerment,” said Ainojie Alex Irune, chief operating officer, Oando, in his speech during the 22nd edition of the Farmers Day Celebration - GRP initiative held recently in Igbogene, Bayelsa State. “ We b e l i e v e t hat a v a s t opportunity exists in the agricultural sector to accelerate the Nigerian economy.

“We believe it is our corporate social responsibility as a proudly Nigerian company to give back to our host communities and promote sustainable development. Our mantra is that we leave all our host communities better off than we met them,” Irune said.

Through the initiative which was in established 31 years ago, thousands of youths in the region have launched promising careers in

Farmers under the Green Revolution Project in the Niger Delta region exhibiting their farm produce during the Farmers Day Celebration in Igbogene, Bayelsa State recently.

modern and productive agricultural practices such as crop production, piggery and fishery among others.

The youths are also involved in different aspects of agriculture which include small ruminants’ production and fruit and vegetable farming in different communities across the Niger Delta communities in which the JV partners carry out their operations.

The theme of this year’s Farmers Day Celebration ‘Youths…Agents for Agricultural Development in the Niger Delta’ was chosen because of the GRP’s numerous impactful projects geared towards empowering the youths in particular and people of the region in general. “ The GRP has remained a success story by not only being a cardinal source of employment, but also a veritable tool for sustainable development and food sufficiency,” s a i d L o r e n z o F i o r i l l i o, v i c e chairman and managing director, NAOC. Fiorillio said that about 275 youths drawn from various communities across the region have been trained on various agro entrepreneurial schemes so as to make them self-employed.

Similarly, under the GRP initiative an agro investment vehicle is provided to help all players across the various value chains with finance to increase their productivity, thereby improving their livelihood.

To m a k e t h e r e g i o n s e l f sufficient in food production, farmers are provided with key inputs such as fertilisers, improved

seeds and seedlings and pesticides as well as farming machinery.

Also, extension services are provided for farmers to be trained on good agricultural practices and modern farming techniques.

As a result, over 12 million lives in the region have been impacted through agribusiness and 340 community projects commissioned across 400 communities.

“We are extremely proud that the idea that was conceived 31 years ago is still growing and waxing strong. This is exemplified in the expansion of the scheme with the creation of new extension zone in Yenagoa, Biseni, Samabri in Bayelsa State,” Tiani Alessandro, general manager district, NAOC said.

“Our focus with the GRP has always been to make farming very attractive and assessable to our women, youths and children, particularly those in secondary schools through exposure of these groups and communities through the formation of cooperative societies and provision of necessary support and tools for farmers,” Alessandro said President Muhammadu Buhari, in a Skype address to farmers during the Farmers Day Celebration, urged the youths in the region to stay focus in their various agribusiness ventures, saying they are vital in crystallising growth in the Nigerian economy.

He stated that the countr y cannot afford creating jobs overseas at the detriment of the youths any longer, while commending Oando and other partners for their support to farmers in the region.

The president pledged support for farmers whose farmlands where submerged by recent flooding incidents across the country.

“The government is going to provide compensation to farmers whose farms were affected by flood. The modalities are being put in place currently and the i m p l e m e nt at i o n w o u l d s o o n commence,” Buhari said.

Seth Accra Jaja, vice chancellor, Federal University Otuoke, Bayelsa in his keynote speech, said that the GRP JV partnership has provided some solutions to the problems of agricultural transformation in the Niger Delta region.

“The track record of the GRP JV is a clear testimony that the NAOC is standing with the willing Niger Delta youths in this drive towards the creation of the new global age billionaire.

“The Niger Delta youths should bear in mind that when one keys into the GRP JV as a start-up, he has opened for himself the track towards being an agro billionaire in the new global age,” Jaja said.

The various collaborations and cooperations were embarked upon in order that agriculture is developed to the modern international standards in the region with youths being at the forefront, Jaja said.

The Farmers’ Day Celebration provided a platform for farmers who were beneficiaries of the GRP JV initiative to showcase their products, produces and services as well as avenue to network with other agricultural stakeholders.

Oando and other JV partners also rewarded 253 outstanding farmers in various with cash price and farming equipment.

Victor Akwujuru, a farmer in Ekpeye/Engeni community in River State emerged the overall best farmer for 2018 under the GRP initiative.

Receiving the award, Akwujuru commended the JV partners for their support to farmers in the region.

“The support I got from the GRP was marvellous and I have learnt a lot from the initiative,” he said.

Akwujuru urged the youths to embrace the opportunity being provided by the JV partners to become agriprenuers. “ I want the youth to stop disturbing oil facilities by seeking for compensation but to channel such efforts into agriculture to build a sustainable means of living for themselves,” he said.

The JV partners target to empower about 945 youths in agribusiness and extend the GRP activities to more communities in 2019.

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C002D5556Wednesday 05 December 2018

ag@businessdayonline.com

Do issue-based voting, expert counsels farmers Josephine Okojie

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he smallholder farmers have been advised not to give in to politicians’ empty promises, but to vote based on issues in forthcoming elections.

Teaching a select group of farmers’ cooperatives recently in Owerri and Asaba, Nnennaya Enyinna Emeremadu, executive director of CARA Development Foundation admonished farmers to ‘do issue-based voting.’

“Identify your needs and present your expectations to politicians. If possible, make them sign. You can use your voice to change things.

You can come as communities or as cooperatives,” Emeremadu said.

During the event, jointly organised by the Nigerian Economic Summit Group (NESG) and Alliance for a Green Revolution in Africa (AGRA) in Asaba in Delta State and Owerri in Imo State, Emeremadu advised the farmers to get interested in the three bills on seeds, fertiliser and warehouse receipt system and ensure they participate in the process of their passage by tasking their lawmakers.

Sp e a k i n g e a r l i e r, Fo l u s h o Olaniyan, chief executive officer of Contact Consulting, told the farmers that AGRA and NESG are working together to see how laws can be enacted to regulate quality

Comfort Eke (left) of Aladinma Rural Women Farmers’ Association, John Ndunaka from Aboh Mbaise (right), admiring as Roland Eke, chairman of Mezie Umukabi farmers’ cooperatives received farmers’ calendar presented by Folusho Olaniyan, CEO,Contact Consulting at the end of the one-day farmers’ sensitisation training at Owerri recently.

of the inputs (seeds and fertiliser) and to avoid duplication of oversight functions in the warehouse receipt system.

These bills, she said, “are the vehicles that will take you from pain to gain. This is election time, when your state and federal lawmakers come asking for your votes. Ask what have they done on the bills?

Olaniyan explained that low yields, poor harvest, diseases, pest

infestation, adulterated fertiliser, reduced soil fertility, poor soil health, post-harvest losses, low profit due to losses, poor storage facilities are causes of pain to the smallholder farmers.

The pain, she said can be turned to gain through factors that will enhance the income of smallholder farmers. Such factors, she noted, are high yields, disease resistant varieties, unadulterated fertiliser,

Kogi women farmers solicit for land to achieve zero hunger target Victoria Nnakiaike, Lokoja

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omen farmers in Kogi have called on the Federal and state governments to allocate land and grant ownership and control to smallholder women farmers towards achieving the country’s zero-hunger target.

Sefiya Yahaya, coordinator, Small Scale Women Farmers Organisation of Nigeria (SWOFON), Kogi Chapter, made the call during the 2018 Annual Women Farmers Forum in Lokoja recently.

The forum which was organised by the Participation Initiative for Behavioural Change in Development (PIBCID) with support from Action Aid Nigeria (AAN) had hundreds of smallholder women farmers in attendance.

I n h e r r e m a r k s , Ya h a y a stressed that tradition and other hindrances militating against women’s’ ownership and control of land had impacted negatively on the smallholder women farmers’ capacity to produce.

Ac c o rd i n g t o h e r, w o m e n account for over 60 percent of the country’s farmers and granting

them ownership and control of land will help the country attain its zero hunger target of 2030.

Yahaya also called for the agricultural budgetary processes to be open and transparent with allocation of 10 percent of Federal and State annual budgets to the sector, in line with the 2003 Maputo Declaration.

She also urged the government to intervene and relax the conditions for women farmers to access credit facilities from financial institutions to boost their productivity.

The coordinator of SWOFON also spoke of the need to engage women extension agents for women farmers to enable them learn new technologies and methods of farming to improve their yields.

She commended ActionAid Nigeria and PIBCID for their intervention saying, “ActionAid is our mother and hope. They have built our capacity, supported us over the years and this forum is their initiative.”

Ya h a y a e q u a l l y t a s k e d government on community access to roads, requesting that roads be constructed in communities to enable farmers evacuate their produce to the markets among other demands.

Kehinde Oloruntoba, commissioner for Agriculture, while receiving the document, said government had intervened in several ways to better the lot of smallholders’ farmers and would continue to do so.

Represented by Alhassan Iyaji, coordinator of commercial agriculture in the Ministry stressed that before the charter of demands, government had embarked on clearing of land in the three senatorial districts for allocation to small scale farmers.

Oloruntoba therefore, urged the women farmers to take advantage of the various farm implements and input procured by the government through the ministry to scale up their production activities.

Speaking also, Sule Aminu, representative of the Bank of Agriculture (BoA) , said the bank was passing through a transition period of restructuring to transfer ownership of the bank to the farmers.

Aminu noted that arrangements had been concluded with the Bureau for Enterprises to float shares of the bank on 40 per cent for the farmers at the end of which they were expected to take partial ownership of the bank with their 40 per cent equity shares.

increased soil fertility, improved soil health, longer shelf life, increased and sustainable profit, improved and affordable storage facilities, availability of agricultural produce all year round.

The Seed Bill being currently promoted by the National Agricultural Seeds Council (NASC), Emeremadu added, “will provide an opportunity to align Nigerian seeds system with ECOWAS seed

regulatory framework and will also ensure regulation of foreign bred varieties for release on domestic markets.” In addition, the Fertiliser Bill will “safeguard the interest of farmers against nutrient deficiencies, adulteration, misleading claims, short weight, etc. According to her, it will also safeguard the interest of fertiliser enterprises, contribute to the creation of enabling environment for private sector investment in the fertiliser industry and improve the productivity of the entire agricultural sector.

Em e re ma d u l a m e nt e d t h e p re d i c a m e n t o f s m a l l h o l d e r farmers in post-harvest storage and pricing of their harvests. She observed that farmers lack access to credit to meet the needs of increased adoption of improved seed and use of fertiliser, and farmers are often forced to sell at lower prices immediately after harvest. Accordingly, Olaniyan reinforced Emeremadu’s view, stressing the benefits of warehouse receipt system, such as quality control, clearing house, source of supplies to processors and access to international commodity prices.

Olaniyan said that individual farmers are not good traders, but explained how they could benefit from the warehouse receipt system.

Both Olaniyan and Emeremadu therefore urged the farmers to support the Warehouse Bill.

Group calls for more research funding to develop Nigeria’s aquaculture Desmond Okon

F

isheries Heritage Group, a professional body comprising of graduate students and academic staff of the Lagos State University, Ojo, has called for more research funding to develop aquaculture production in Nigeria.

The group made the call at a conference held in Lagos to mark the World Fisheries Day, with the intent to chart a course for the subsector.

“We need to fund research to develop the sector but research alone is not the problem, but implementation of such research when carried out,” said Dawodu Michael, permanent secretary, deputy governor’s office, representing Shakirudeen Olayiwola, permanent secretary, Department of Fisheries, Ministry of Agriculture, Lagos State.

Fish is an important part of the household diet in Nigeria.

More than 80 percent of Nigeria’s total domestic production is generated by artisanal smallholder farmers from coastal, inshore, creeks of the Niger Delta, lagoons, inland rivers and lakes, according to Food and Agriculture Organisation of the United Nations, (FAO).

N i g e r i a’s p e r c a p i t a f i s h consumption is 11kg, which is significantly lower than the global average of 21kg and just less than the

estimate of 13.5kg for Côte d’Ivoire.

But according to experts, with adequate research, the country can develop the industry, thereby made fish available to Nigerians.

Speaking to Business Day, Linda Agua Onyekwelu, CEO Linda Farms Ltd, Ogun State, who is also, the chairperson - organising committee of the group said “committed to position fisheries as a noble way of life and culture primed to drive food security and sustainable development of the nation”.

Onyekwelu added that collaborations between the farmers and other stakeholders across the value chain will help in enhancing the contribution of fish subsector to the socio-economic development of Lagos State and advancing action for the development of the industry.

On funding, Oluwafemi Afolabi, p r i n c i p a l m a n a g e r, B a n k o f Agriculture, Ikeja branch, explained that individuals often defaulted on loan repayment, saying that such act would not deter the bank for carrying out its core mandate.

Humyinbo Idowu, managing director, Fish Party, wants adequate advocacy and policies to help in sustainable fisheries management.

He believes that the water resources have been badly damaged through piracy and illegal fishing in Nigeria territorial waters.

Wednesday 05 December 2018

BUSINESS

COMPANIES & MARKETS

DAY

17

CBN to increase loan extension to farmers under Agriculture credit guarantee fund

Pg. 18

C o 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

MARKETS

Small Caps shrug off market rout with N262bn gain LOLADE AKINMURELE

W

hile large and mediumsized public companies have bled in the stock market this year, small companies have surprisingly thrived and there are no immediate signs of a reversal in fortunes ahead of elections in Nigeria next year.

According to a report by the Nigerian Stock Exchange, the aggregate market value of public companies that are worth less than $USD 150 million (N54 billion) climbed by N262.5 billion to N1.15 trillion ($3.17 billion) as at the end of September 2018 compared to a year earlier, an increase of 22 percent.

Large caps and medium caps have not been as fortunate, as the report showed that companies valued at over $1 billion (N363 billion) saw N2A80 billion peeled off from their market capitalisation compared to last year, as their aggregate value slumped 3.54 percent to $21.78 billion (N7.92 trillion).

Medium-sized companies with a market value of between $150 million to $1 billion were down N171.4 billion or 5.91 percent to $7.96 billion (N2.90 trillion) over the same period, as companies struggle to shake off a raft of foreign exits from the Nigerian stock market which is down some

19 percent this year.

The market sell-off, triggered by rising interest rates in the US and political uncertainty as Nigeria returns to the polls in February 2019 to elect a leader, has been felt more by the large companies- which more foreign portfolio investors are exposed to- while the small companies appear relatively insulated from the rout.

The situation is worsened by the renewed decline in oil prices, with Brent down 34.5 percent from a peak of $87 per barrel to as low as $57 per barrel, as investor sentiments tend to turn sour towards the oil-fuelled Nigerian economy in a period of low prices.

It means there could still be room for small companies to pull farther away from the heavyweights.

The NSE report did not name the small companies leading the charge of bumper gains, but BusinessDay analysis of company stocks with the highest one year return provided some clues.

Each of the top 10 performers in the stock market this year are all valued at less than N54 billion, which validates the dominance of small companies over large ones in the period.

Cement Company of Northern Nigeria (CCNN) is the best performing stock this year with a return of 89.47 percent as at Friday, November 30, outperforming the broad

market’s year to date loss of 19 percent by almost 600 percentage points.

The cement maker has a market capitalisation of N22.6 billion, which means it fits into the small company category.

The second-best performing stock this year is C & I leasing, which has a market value of N3.9 billion, meaning it also fits as a small company. The operating and financial leasing company has jumped 59.7 percent this year. The defunct Skye bank, now Polaris bank, continues as the third best

performing stock two months after the lender’s sale by the Central bank to new investors.

Sterling bank, with a market value of N47.8 billion, is the fourth best performer having gained 52.78 percent.

Marine and aviation logistics company, Caverton Offshore Support Group ranks fifth with a gain of 47.29 percent. The company’s market value is N6.4 billion.

Insurance companies, NEM and Continental Reinsurance are in sixth and seventh place. NEM, which has a market value of N12.4 billion

has jumped 44.58 percent this year, while Continental Reinsurance is up 42.86 percent, helping it to a market value of N20.7 billion.

In eight and ninth place are Unity bank and Custodian and Allied Insurance, which have both risen 37.74 percent and 36.25 percent respectively. While Unity has a market capitalisation of N8.1 billion, Custodian is valued at N28.8 billion.

Rounding up the ranking is Beta Glass which sits in tenth position. The glassware manufacturer is up some

33.11 percent this year and that has helped it to a market value of N34.14, which also remains within the category of small companies listed on the stock exchange.

However, the big companies from cement maker, Dangote Cement, to tier-one lender, Guaranty Trust bank, are all down this year.

The NSE 30, an index that tracks the performance of the country’s 30 largest companies by market value, is down 18.7 percent over the past one year, according to official data.

CURRENCIES

OIL & GAS

Naira struggles to benefit from US-China trade truce

Oriental Energy Resources says committed to developing host communities

LUKMAN OTUNUGA, Guest writer

O

ptimism over the temporary trade truce announced between the two largest economies in the world after the G-20 Summit in Argentina last weekend has played a leading role in immediatelyupliftingglobalrisksentiment.

The combination of Dollar weakness and improving risk appetite is a welcome development for most major emerging market currencies.

However, the Nigerian Naira has yet again struggled to benefit fromsuchwelcomemarketconditions with prices hovering around 365 on the parallel exchange.

It is becoming clear that the Naira’s stability against the Dollar was the product of repeated intervention by the Central Bank of Nigeria.

With falling oil prices weighing ontheNaira’spegagainsttheDollar on the official exchange and complicatingtheCBN’sefforttodefend the Naira on the parallel, further weaknessseemstobeonthecards.

While fading trade tensions and Dollar weakness is seen limiting capital outflows, falling oil prices are poised to negatively impact government revenues and the implementation of the 2019 budget.

While the short-term outlook fortheNigerianeconomymaylook discouraging,confidenceinthenation will most likely receive a boost in the medium to longer term if increased government spending ahead of the elections next year stimulates economic growth.

Away from Nigeria, all of the currencies in the APAC region are trending higher against the Dollar, with the exception of the Indian Rupee that has declined 1.03% at time of writing as a result of local data missing expectations.

TheSouthKoreanWon,which isoftenmeasuredastheAsiancurrency proxy for investor appetite towardsriskishigherbymorethan 0.91% while the Chinese Yuan is stronger by as much as 1.09%.

Thisrallyhasfilteredthroughto other regional emerging markets and asset classes, including the South African Rand and Mexican

Peso that are both more than 1% stronger on trade truce optimism.

Therallythatweareexperiencing goes to show that in spite of the trade tensions between United States and China being seen as bilateral issues between themselves, being two major global economic powersmeansthisdoeshavehuge ramifications for global market optimism.

WTI Oil is higher by over 5% in the early hours of Monday trading, which goes a long way towards explaining how global market optimism and previous concerns about trade tensions can impact commodity markets.

InrecentweeksOilhassuffered severely from global economic health concerns stemming from trade tensions leading to lower demand for Oil, and if there is further progressionwiththisissueitwould be seen as a potential “buy” for the Oil markets.

If there is further progression over trade tensions between the United States and China then this has the potential to create a heavy market rally before trading wraps up for 2018.

O

riental Energy Resources Limited says it is committed to safe operations and sustainable development of its host communities in Akwa Ibom State.

Uwem Ite, head of community and government relations, told journalists in Uyo, the state capital, that the indigenous oil company places a high premium on its corporate social responsibility.

The company has undertaken many social investment initiatives and programmes within its host communities, he said.

The programmes include annual free medical outreach, scholarship awards to students in tertiary institutions as well as the multi-million-naira 100 housing units called “Oriental Village, currently under construction in Enwang, the headquarters of Mbo Local Government Area. Others are the enterprise development scheme, and support for University of Uyo’s Departments of Petroleum and Chemical Engineering, among others.

Oriental Energy Resources has developed and maintained a close working relationship with relevant

government agencies, community based and nongovernmental organisations as well as other sustainable development actors at the three tiers of government, Ite said.

“We conducted a one-week free medical outreach in July this year for 4000 beneficiaries drawn from Effiat, Enwang, Uda, Ebughu and Udesi communities in Mbo Local Government Area and its environs,” he explained. The beneficiaries included traditional rulers, men, women, youths and school children. Free medical supplies were distributed including

Edited by LOLADE AKINMURELE (loladeakinmurele@gmail.com) Graphics: CHINEDUM ONYEMA

pregnancy kit bags for 200 expectant mothers as well as dental and hygiene kits for school children, he added.

Under the company’s annual scholarship scheme for students from the communities in tertiary institutions, more than 850 have received financial support since 2009 from Oriental Energy to complete their education through the scholarship programmes.

He added that 65% of the of the awards went to indigenes of Mbo communities in the 2018/2019 academic session.

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Wednesday 05 December 2018

COMPANIES & MARKETS PUBLIC INSTITUTIONS

CBN to increase loan extension to farmers under Agriculture credit guarantee fund Hope Moses-Ashike

T

he Central Bank of Nigeria (CBN) is making plans to increase the amount of money extended to small holder farmers under the Agr icultural Cre dit Guarantee Scheme Fund (ACGSF).

The ACGSF was established to offer credit guarantee for risks in loans to small holder farmers.

Its original share capital and paid-up capital were N100 million and N85.6 million, respectively.

Speaking at the strategic retreat of the board of ACGEF and takeholders in Lagos, Olubunmi Siyanbola, chairman, ACGSF, noted that the amount given to small holders farmers at N100,000 is too low, adding that part of the discussions was to prompt an upward review in order to boost the agricultural sector.

“There is the need for us to enable them to ac-

cess the finance so that they could do more to ensure food stability in the country,” Siyanbola said.

She said the fund has been in existence for 40 years and continues to gain attention as evidenced by the increasi ng o n - g o i ng d ebat e over its relevance due to the declining traction among the banks.

The capital base of the Scheme was increased to N3 billion in March, 2001.

The Fund guarantees credit facilities extended to farmers by banks up to 75 percent of the amount in default, net of any security realized.

“More importantly, t h e re h av e b e e n a ttempts to review the main contextual issues In the operability of the Fund in the 21st century, but these attempts have been delayed by the non-constitution of the Board until 2018 since its dissolution in 2007 by the FGN. For instance, the maximum loan amount guaranteed under the Fund for the different

L-R: Ugonwa Nwoye, customer service executive; Tobechukwu Nwosu, MTN trade partner, Abuja region; Mazen Mroue, chief operating officer, MTN; Adekunle Adebiyi, sales and distribution executive, MTN; Yakubu Telta, sales and trade development manager, MTN, and Amina Usman, general manager, regional operations, MTN, at the opening ceremony of 2018 MTN Digital Fair in Abuja, recently.

categories of farmers has lost value due to the rising costs of goods and ser vices coupled with the dynamics of the macroeconomic situation of the economy.”

However, she stressed that the Fund has helped in some ways in tackling the scourge of financial access among agropre-

neurs in Nigeria.

The challenges suggest that a lot more work needs to be done to reposition the Fund in the right pedestal for agricultural development.

“This retreat would afford us the opportunity to share ideas and for us to listen to wellchosen consultants

and then share ideas to recommend the way forward.I can tell you, the maximum amount that is due to a farmer now is very low to make any meaningful impact on the farmers and their activities which is about N100,000,” she added.

Asked if there would

be an upward review of the amount, she said: “This is what this retreat is going to achieve, of course we would brainstorm to see the way forward to enable us make recommendations to the government regarding on how we can improve on the work ability of the scheme.”

AGRO-PROCESSING

Jifatu food processing company to boost investment in agriculture sector Adeola Ajakaiye, Kano

J

ifatu Nigeria Food Processing Company Limited has expressed readiness to boost its investment in the food processing segment of the Agriculture Sector.

According to the company, the move to scale up investment in food processing is a direct response to the calls being made by the federal government for more Nigerian entrepreneurs to play leading roles in agricultural development.

Sabitu M. Yahaya, chief executive officer

(CEO) of the company, made this disclosure, Monday, during an event organised to mark the Company Special Day, at the on-going Kano International Trade Fair.

Sabitu, who is also the CEO of the Jifatu General Enterprise, operator of Jifatu Shopping Outlet, stated that investing in the food processing end of the agriculture value chain would go a long way in boosting food security in the country.

He noted with delight that his recent investment in a food processing plant in Jigawa State, which according to him has been of tremendous

benefit to small scale farmers, as they now have a steady off-taker for their produces.

“We in Jifatu today are very glad to be part of the success story of this year edition of the Kano International Trade Fair. We are particularly, happy because of our initiative to see our country become more secured food wise is yielding great result.

“We have here on display at this trade fair, seven productsMasa grits, Maize Flour, Whole Wheat, Rice, Taski Alkama, Wheat Flour, and Spices, produced at our processing plants.

“What this mean to

us is that our company is now growing into a huge food processing company, creating jobs for the teeming unemployed youths in our country, as well as providing avenue for our farmers, especially, the smallholders ones, to produce more.

“Looking at impact that we are able to make in the lives of our people, I am using this forum to call on our people to fully embrace the current policies of the Buhari administration, by getting involved in farming” he disclosed.

In his address earlier, Dalhatu Abubakar,

president of the Kano Chamber of Commerce, Mines, Industry and Agriculture (KACCIMA), commended the founder of the company for his interest in the nation`s agriculture sector.

Dalhatu said that the Chamber is glad with the participation of the company in this year trade fair, as well as previous supports the chamber has being receiving over time from the company.

He charged the company to sustain it leading role in the general economic activities in the northern part of the

country, assuring that the chamber would continue to give the company all necessary support.

Commenting on the company, Saidu Zakari, former Kano State Commissioner for Agriculture, also commended the founder of the company for helping to bridge food gap in the country.

The high-light of the Special Day was the inspection of the Company Stand at the Fair, by the large gathering people that witness the event which includes: Customers, Dealers, and friends of the company.

Wednesday 05 December 2018

BUSINESS

COMPANIES & MARKETS

Business Event

DAY

19

GLOBAL

Naspers jumps 4.5% as company targets fresh acquisitions with $10bn cash pile LOLADE AKINMURELE

Investors bid Naspers stock higher

N

aspers Ltd. stocks c l i m b e d 4 . 5 4 p e rcent Monday to a 1 - m o nt h h i g h o f 2 8 8 , 8 5 1 South African rand ($USD 21,071) after Chief Financial Officer Basil Sgourdos said Africa’s largest company by market value targets “significant investments” for its $10 billion cash pile in the next couple of months.

I n v e s t o r s c h e e re d t h e plans which were first disclosed last Friday in a Bloomberg report, bidding the South African company’s share price to its highest point since November 6.

“In the first half of this year we have done about $750 million in deals, and there are some near-term opportunities coming up,” Sgourdos said, according to a Bloomberg report.

“With markets correcting and valuations coming down, that favors compan i e s w i t h s t ro n g b a l a n c e Source: Bloomberg s h e e t s , a n d t h a t ’s w h a t Naspers has.” company owns about 31 Naspers is working to re- percent of the Chinese techduce its exposure to Johan- nology giant, yet the market nesburg’s stock exchange as values the stake at some $28 it seeks to narrow a valua- billion more than Naspers tion gap with flagship asset as a whole.

Tencent Holdings Ltd. Reducing the deficit has The media and Internet l o n g b e e n a p r i o r i t y f o r

executives as they scour t h e g l o b e f o r i nv e s t m e nt opportunities and work to turn more of its businesses profitable.

Every year, Naspers looks at about 700 deals, and completes 10 to 15, said Sgourdos. “ Those are the ones that makes sense for a Naspers,” he said.

Naspers favors investing in classifieds, online retail and payments businesses.

More recently it has started to put a lot of money into food delivery, where it sees “lots of runway.”

The company’s cash pile has grown this year due to the sale of shares in Tencent and India’s Flipkart.

“Our plan is to quickly and aggressively expand our reach, we are increasing our investment in the sector,” said Sgourdos.

This month, the company allocated another $400 million into building its position in Brazil and broader Latin America.

Sgourdos was speaking after Naspers reported firsthalf earnings that missed analyst estimates. The company’s shares closed 2 percent dow n on the Johannesburg Stock Exchange on Friday to trade at 2,763 rand a share, valuing the company at more than 1.2 trillion rand.

L-R: Uju Oduah, vice president, human resources and corporate affairs, Hubmart Stores; Isaac Gerald, special guest; Niyi Adeleke, assistant head, enforcement unit, National Lottery Regulatory Commission; Michael Opara, prize winner; Cheng Fuller, vice president, marketing, Hubmart Stores, and Murat Bektaslar, MD/CEO, Hubmart Stores, at the 2nd raffle draw of the ongoing Hubmart awoof promo in Lagos. Pic by Olawale Amoo

L-R: Roseline Abaraonye, marketing manager; Chioma Sylvie Mgbaramuko, brand manager; Hakan Misri, managing director; Venessa Toyin Ebifemi, corporate affairs, and communications manager, and Motayo Latunji, sales director, all of Hayat Kimya Nigeria Limited during the brand’s media meets and greets in Lagos, recently

NGOs

CAC approves name for Bridge to Destiny Foundation DIPO OLADEHINDE

N

igeria’s Corporate Affairs Commission (C AC) has approved the name for non Governmental organization called Bridge to Destiny Foundation.

Speaking after the app rov a l , D av i d Ku j o re, founder of Bridge to Destiny Foundation said it became imperative for the NGO to register with CAC in order to expand to other parts of the country after recording huge success in its vision of bridging the vacuum created by the lack of academically skills and also to provide life and career mentorship to students across the country.

“We hope the new development will allow the NGO to expand its operation and serve as a centre for skills acquisition and development for various categories of people most especially teenagers, youth and adult across the country,” Kujore said.

The founder of Bridge to Destiny Foundation noted

that the foundation will provide a platform of sponsorship for destitute students who are intelligent and can’t afford education.

Also, the Corporate Affairs Commission (C AC) said it was working towards deploying a more robust application to ensure registration of businesses within four to six hours even as it was working towards selfgeneration of certificates.

Acting registrar-general of the Commission, Azuka Azinge, dropped the hint at the just concluded 58th Annual General Conference of the Nigerian Bar Association (NBA), in Abujab were she reiterated that the Commission was well re-positioned to provide excellent services by simplifying the processes of business registration and other services and would continue to partner with key agencies of government to make Nigeria the preferred investment destination.

According to Azinge, with the introduction of the Companies Registration Portal (CRP), company registration activity has witnessed

progressive increase and improvement. Adding that the feedback from the Commission’s customers has facilitated the continuous improvement in ser vice delivery even as the CRP was now user friendly as it affords customers online and real-time access to the services of the Commission from the comfort of their offices or homes using Remita e-payment platform.

She further highlighted the reform initiatives introduced in the Commission, including automation of all state offices and closure of manual registration since April, 2018.

Others are upgrade of CRP to improve users experience as well as improvement of availability search approval from 12 hours to four hours, and review of pu b l i cat i o n gu i d e l i n e s / c h e ck l i s t s o n t h e C o m mission’s website among others.

She stressed that the Commission had engaged on road show and open market sensitization on registration of businesses.

L-R: Olubunmi Lawson, supervisor, community relations, NAPIMS, representing the GGM, NAPIMS, Roland Ewubare; Charles Ngeribara, general manager, corporate social responsibility and sustainability development, Total Upstream Nigeria Limited, and Uche Ojomo, manager, CSR Health Partnership, Total Upstream Nigeria Limited, during the inauguration of 2018 HIV/AIDS awareness campaign for secondary schools in Lagos.

L-R: Justin Zhang, chief executive officer, StarTimes Nigeria; Abdul Dangirma, national secretary, Network of People Living with HIV/AIDS in Nigeria (NEPWHAN); Yusuf Buhari, representative of the First Lady, Aisha Buhari, and Sani Ali, director general, National Action Committee on AIDS (NACA) at the commemoration event to flag off activities around the 2018 World AIDS Day in Abuja.

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COMPANIES & MARKETS TECHNOLOGY

Vatebra trains 100 youths on blockchain at tech meet-up

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an-African technology solutions provider, Vatebra Limited, provided a platform for over 100 tech enthusiasts to learn the basics of high-level blockchain programming at the second edition of its Codify Tech Meet-up held in Lagos recently.

The tech meet-up is aimed at helping young coders collaborate, network and code; while highlighting the increasing importance of coding as the building block of today and tomorrow’s technological advancements.

Blockchain technology is an avenue for untrusted parties to agree on a common digital history in this era when digital assets and transactions are easily faked or duplicated. It achieves this through an intermediary mutually trusted by all parties.

At this year’s Vatebra tech meet-up tagged ‘the Anatomy of Code’, participants included university and high school graduates, young coders as well at tech enthusiasts. Reputed speakers with solid technological backgrounds shared their insights on a variety of topics, among them Evans Okosodo, Sai Kumar of Belfrics, Mike Aigbe and Nnene Adaora.

“For us, Codify 2.0 was conceived to bridge the technology skill gap we have observed in Nigeria,” said Mike Aigbe, Deputy Managing Director, Vatebra Limited.

“We foresee that with initiatives like this, we will not

only help broaden the horizons of our budding technology experts, but also rank them among the best in the industry in the months and years to come.”

Participants were also treated to related cutting-edge topics such as test-driven developments of android applications, relevance of research design in the development of quality software and live development of a sample membership portal using c#, among others.

The Vatebra Innovation Hub, like the Vatebra Academy which offers tech-incubation and co-sharing opportunities, has been strategically positioned to revolutionize the IT industry by training and providing competent professionals with relevant knowledge in the tech ecosystem.

Leading pan-African technology solutions provider, Vatebra Limited, provided a solid platform for over 100 tech enthusiasts to learn the basics of high-level blockchain programming at the second edition of its Codify Tech Meetup held in Lagos recently.

The tech meet-up is aimed at helping young coders collaborate, network and code; while highlighting the increasing importance of coding as the building block of today and tomorrow’s technological advancements. Blockchain technology is an avenue for untrusted parties to agree on a common digital history in this era when digital assets and

L-R: Adeyinka Adesola, Quality Control Manager, BUA Obu Cement; Umar Musa, chairman, Kano State Block Moulders Association; Yahuza Salisu, Regional Manager, BUA Obu Cement; Dauda Lawal, Head of Training, ITF; Nasiru Ladan, General Manager Sales, BUA Obu Cement, and Musa Bauchi, Unit Head Civil/Building Department, SON, at the Concrete and Blockmaking Stakeholders workshop held on Tuesday in Kano State and organised by BUA Cement.

transactions are easily faked or duplicated. It achieves this through an intermediary mutually trusted by all parties.

At this year’s Vatebra tech meet-up tagged ‘the Anatomy of Code’,participants included university and high school graduates, young coders as well at tech enthusiasts. Reputed speakers with solid technological backgrounds shared their insights on

a variety of topics, among them Evans Okosodo, Sai Kumar of Belfrics, Mike Aigbe and Nnene Adaora.

“For us, Codify 2.0 was conceived to bridge the technology skill gap we have observed in Nigeria,” said Mike Aigbe, Deputy Managing Director, Vatebra Limited. “We foresee that with initiatives like this, we will not only help broaden

the horizons of our budding technology experts, but also rank them among the best in the industry in the months and years to come.”

Participants were also treated to related cutting-edge topics such as test-driven developments of android applications, relevance of research design in the development of quality software and live development

of a sample membership portal using c#, among others.

The Vatebra Innovation Hub, like the Vatebra Academy which offers tech-incubation and co-sharing opportunities, has been strategically positioned to revolutionize the IT industry by training and providing competent professionals with relevant knowledge in the tech ecosystem.

INDUSTRIALS

PUBLIC INSTITUTIONS

Kano block and concrete makers hail BUA Cement quality

SON to expose adulterated lubricants dealers

BALA AUGIE

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he Chairman, Kano State Block Moulders Association, Umar Musa has commended BUA Cement for its sustained production of quality cement to meet required demands of the blockmaking industry.

The blockmakers gave the thumbs up to BUA Cement at the its regional Stakeholders Workshop tagged “Optimizing cement usage to achieve better quality and yields of Blocks” in Kano State.

The One-day workshop organized by BUA Obu Cement in collaboration with the Industrial Training Fund (ITF) and the Standard Organization of Nigeria (SON) harps on training block makers on the best practices to deploy in the production of standard blocks and concrete which when used, can prevent building collapse and aid in better building

practices.

Speaking at the workshop, the Chairman, Kano Block Makers Association, Umar Musa said, “BUA Cement is quality cement that can be used to mould any types of block. It has so many requirements needed from any cement - in terms of strength, colour and quality. And it also gives us more blocks per bag.

“We are happy that BUA Cement came to train us on new techniques in block making and we know that this event will further strengthen the existing relationship between the company and block moulders”. Umar added.

Present at the workshop were: Head of Training, Industrial Training Fund (ITF), Dauda Lawal; Unit Head, Civil/Building Department, Standard Organization of Nigeria (SON) Engineer Musa Bauchi; and Quality Control Manager, BUA Obu Cement, Adeyinka Adesola.

ODINAKA ANUDU

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he Standards Organisation of Niger ia (S ON ), a body charged with the responsibility for standards in the country, says it will expose those who deal in adulterated lubricants.

Osita Aboloma, directorgeneral, SON, disclosed that the action would also send a strong warning to unscrupulous individuals to desist from the nefarious trade in fake and substandard lubricants.

Aboloma stated this at the opening of SON’s office in Nassarawa State. ‘‘The name and shame’’ exercise would also help Nigerians to identify genuine lubricants in the market while also deriving value for hard- earned money spent on such products,” he said.

In his words, “SON classifies lubricants as life threatening and life endangering. The effect is far reaching and the nation cannot industrialise without quality lubricants.”

He noted that courtesy of SON Act 2015, the agency has been empowered to prosecute purveyors of fake and substandard goods who indulge in the act of faking and adulterating established and successful brands to cheat Nigerian users.

“SON will not sit back and watch some unscrupulous people threaten the survival of the industry. We will not sit down and watch these people pull down the investments of genuine manufacturers or importers. As long as you are law abiding, we will be there to protect you,” he said.

He enjoined stakeholders in the lubricant sec-

tor to support the organisation in its quest to rid Nigeria of substandard products in general, urging them to always consult SON for the minimum quality requirements for all products as outlined in the Nigeria Industrial Standards (NIS).

He said the new SON office was to bring standards close to the people, while also achieving efficient and effect service delivery of standards. He noted that the office would also go a long way to checkmating the influx of substandard goods in the state.

In another development, SON in its quest to bridge the gap in information dissemination and create accessibility standards to all carried out a sensitisation programme on the dangers of substandard products, especially on lubricants, car brakes and car batteries at the

Aswani, Mechanic Village and its environs in Lagos.

Oby Egbuziem, state coordinator, Lagos Office II, representing the director- general, said with the yuletide period comes the get-quick-rich syndrome where people would peddle all sorts of products in the market for great financial reward.

She said there was a need to sensitise and enlighten everyone on the need to be vigilant and not fall prey to patronising substandard materials.

According to the state coordinator, SON’s purpose was to expand the knowledge of everyone on the hazards of purchasing and selling substandard products.

She further stated that “the aim of the sensitisation programme is to simplify the SON mandate and make our presence felt at the grass root level.”

BUSINESS DAY

Wednesday 05 December 2018

Shipping

Logistics

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Maritime e-Commerce

Why Nigeria loses $9.1bn in freight revenue annually to foreign liners Stories by Uzoamaka Anagor-Ewuzie

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assan Bello, executive secretary, Nigeria Shippers Council (NSC), on Sunday said that the country loses an estimated $9.1billion annually in freight revenue that would have accrued to Federal Government due to foreign domination of shipping business.

Between 2004 and 2017, Nigeria recorded total vessel traffic of 25,256 vessels with the total gross freight of $39 billion but the country earned a paltry sum of $1 billion as levies for NIMASA. Lack of quality vessels is the major reason why Nigerian shipping companies find it difficult to compete with their foreign counterparts.

Furthermore, ship owners spend huge sums on payment of import duty and this takes close to 14 percent of the total cost of importing fully built vessels and their corresponding spare parts, as Nigeria currently lacks capacity to build ships in-country.

It is expected that creation of cheap funds would provide Nigerians the opportunity to own different categories of oceangoing vessels such as crude tankers, containerised vessels, bulk cargo carriers, general cargo and dry cargo carriers, among others.

Bello, who spoke on the feasibility of the proposed national carrier, told the News Agency of Nigeria (NAN) in Lagos that the failure of Nigeria to build capacity among its indigenous ship owners has left the lucrative business in the hands of foreign shipping lines, which have been milking the economy.

“We need to a have national carrier because of the profound economic impact it will have on our economy. We have lost so much in terms of earnings of freight to foreign shipping companies.

Listing the areas of loss, Bello said that on dry cargo, Nigerians do not operate any ship at all, while on the wet cargo, Nigerians do not lift the crude and this imbalance is very dangerous to the economy.

On what has been done, he said that Rotimi Amaechi,

the minister of transportation, set up a committee with the Nigeria Shippers Council as chairman, to lead the private sector in the setting up the national carrier, and they started working with PIL, a Singaporean shipping company.

“We signed an MoU with PIL about three years back but the operating atmosphere of shipping in Nigeria is murky and not profitable because

Massive investment in infrastructure to grow logistics business – NAGAFF …As Aniebonam calls for professionalism in freight forwarding practices

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orried by the impact of poor state of infrastructure on the logistics business in Nigeria, the National Association of Government Approved Freight Forwarders (NAGAFF) has identified massive investment in infrastructural development as a way of creating more opportunities that would grow the industry.

Speaking recently in Lagos during the Freight Forwarders Day which also marked the 20th Anniversary of NAGAFF, Increase Uche, President said that the logistics and the freight forwarding business can also grow if government policy on regenerating the economy is targeted at developing critical infrastructure around the ports as well as creating an export driven economy.

Infrastructural deficien-

cy has been one of the major problems confronting the logistics business in Nigeria as over 85 percent of the nation’s cargo and passengers are moved by road due to the bad state of the railways and inland waters.

Uche, who stated that the sector contributes significantly to the nation’s GDP, added that the logistics industry deserves an enhanced infrastructure and proper town planning to avoid a repeat of the current situation in Apapa.

On professionalism, Boniface Aniebonam, founder of NAGAFF, called on the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) to grow the freight forwarding practice in Nigeria by ensuring professional practices among members.

Aniebonam, who announced his exit from association politics, said that

the CRFFN Board needs to address some issue impeding the effective operations of its members and the nation’s economy.

He expressed optimism that the coming of Tsan Abubakar and Henry Njoku into the CRFFN Board will help to restructure the freight forwarding practices and also enthrone professionalism.

According to him, both leaders will no doubt add a lot of value to the freight forwarding profession. He also called on the members of the board to address the issues limiting agents from going into the ports to do their business.

The CRFFN Board, he said, needs to put in place an enforcement unit manned by the Police to address issues of non-compliance or illegalities in the system, adding that this was the case for the Standard Organisation (SON).

there are many obstacles which include lack of incentives, lack of government infrastructure and government support.

He further identified unwillingness or inability of Nigeria’s private sector to support this very important enterprise as another issue impeding the growth of shipping business in Nigeria.

According to him, setting up of national fleet is such

an important venture that it has to be painstakingly done, such that it takes years to pull off, that is why the committee for the national fleet implementation had to retrace its steps.

“Because the government is very serious about the economy, we were able to approach and get the audience of the Vice-President and we addressed the Economic Management Team on the

vision. This project, if we get it right, it means much more earnings for freight,” Bello said.

“It means greater revenue for the government, employment for our people. It means setting up of associated industries, ship building, ship repairs, involvement of our financial institutions like banks and insurance, even the pride of having ships flying the Nigerian flag”.

On the way forward, Bello said that Nigeria needs to implement a lot of reforms that include the flag administration and the ship registry of Nigeria, in line with international standards “so that we could attract people to come and register ships in Nigeria.

“We need investment in vessel repairs and ship building, so that Nigerians will not tow ships to Singapore or Ghana for repairs. That will be a drain on the business.

We need a reform our nautical colleges, Maritime Academy of Nigeria (MAN) Oron especially so that they would produce the best of cadets with sea time experience and can crew Nigerian ships.

NPA appoints Adams Jatto as new spokesman

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s part of its effort to reengineer the process of information dissemination towards an efficient service delivery at ports, the management of the Nigerian Ports Authority (NPA) has appointed Jatto Adeiza Adams as its new chief spokesman.

Jatto, who hails from Okene Local Government of Kogi State, holds a Master of Project Management (MPM), a Post Graduate Diploma in Shipping Management and a Bachelor of Engineering (Electrical) Qualifications.

He is a member of various

professional bodies, including the Nigerian society of Engineers (MNSE); fellow of the Institute of Shipping Technology (FIST); fellow of the Institute of Credit Administration (FICA) and a Certified Public- Private Partnership specialist.

A statement by Isah Suwaid, assistant general manager, Corporate & Strategic Communications of the NPA said that Jatto before his recent redeployment, had put in more than three decades of hard work, dedication and commitment with the organization, having served as the

general manager Land & Asset Administration and Engineering Maintenance Department.

According to Suwaid, Jatto attended International and local training programmes such as Project Management Course, (Dubai); Port Master Plan (Belgium); Capacity Building in Leadership for Development and Public Good (Kansas State University USA; IP3 Washington DC Labour Relations and collective bargaining, Lagos; Corporate Image and Personality Development in Lagos, and Managing and Leading strategic change among others.

VVL partners SCAN to hold maritime awards in Lagos

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he VITAL Values Limited (VVL) in partnership with the Shipping Correspondents Association of Nigeria (SCAN) has perfected plans to hold its maiden Annual Nigeria Maritime Awards (ANMA) in Lagos this Friday.

The award themed ‘Positioning the Maritime Sector for Challenges of Global Competitiveness,’ is slated for December 7, 2018, and will celebrate individuals and firms that have

set a mark in the Nigerian maritime industry in 2017.

A statement by Tola Adenubi, convener, stated that the award will also honour those that have contributed in shaping the industry through their value addition, which has impacted positively on the growth and development of Nigerian economy.

According to Adenubi, “Dignitaries expected at the award ceremony include Hadiza Bala Usman, managing

director of the Nigerian Ports Authority (NPA); Dakuku Peterside, director general of the Nigerian Maritime Administration and Safety Agency (NIMASA); Hassan Bello, executive secretary of the Nigerian Shippers Council (NSC); Tony Iju Nwabunike, national president of the Association of Nigerian Licensed Customs Agents (ANLCA), and members of the Seaport Terminal Operators Association of Nigeria (STOAN).

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Sanction, tariff, others form major expectations in new concession agreement Stories by Uzoamaka Anagor-Ewuzie

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s the management of the Nigerian Ports Authority (NPA) concludes plans to sign into law, the additional agreement with terminal operators, it is expected that the new agreement will address some of the controversial issues around the port concession regime entered into by the Federal Government with private terminal operators in 2006.

BusinessDay understands that the new agreement will require terminal operators to publish their charges and tariffs in order to curb arbitrary charges imposed on importers and other users of port services.

Nigerian ports are run on a concession agreement that has lasted for 12 years, which is yet to be reviewed since inception. As a result, industry players, including terminal operators, the NPA and port users, have blamed the non review of the agreement for notable failures in the port system, especially in areas of infrastructural provisions and dollar payment to government.

It is hoped that the new

agreement will affirm the status of the Nigerian Shippers Council (NSC) as port economic regulator and will see to the scrapping of charges that make Nigerian ports uncompetitive in West Africa and enhance the Ease of Doing Business at ports.

Also, the agreement is expected to make it mandatory for all terminal operators to develop and promote cargo throughput and cargorelated business of the lease property in order to achieve

maximum utilisation of their facilities.

Hadiza Bala-Usman, managing director of the NPA, said recently in Abuja, that the new agreement, which is underway, will be more definite on the issues of sanctions for both operators and government as regulator in case of default to the provisions of the agreement.

The new agreement, she said, will redefine the Guaranteed Minimum Tonnage (GMT) and address other

Usman wants officers to improve security at ports

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adiza Bala Usman, managing director of the Nigerian Ports Authority (NPA), has called on all Ports Facility Security Officers (PFSOs) to double their efforts by remaining vigilant in their various facilities in order to curb insecurity in the Nigerian maritime domain.

A statement signed by Adams Jatto, general manager, Corporate and Strategic

Hadiza Bala Usman

Communication of NPA, said that Usman made this call at the 2018 edition of the annual conference of Ports Facility Security Officers Forum of Nigeria, held in Calabar at the weekend.

She urged the officers to pay special attention to intelligence gathering and sharing of information with other security agencies at the ports, adding that this will enhance effective performance of their

duties.

Represented by Iheanacho Ebubeogu, general manager, security, Usman commended the officers for their commitment to duty, particularly on the implementation of the International Ships and Ports Security (ISPS) Code, since its inception in 2004, by keeping ports facilities and the entire maritime industry safe over the years.

She reiterated the preparedness of the authority to collaborate with all relevant security agencies and other stakeholders for improved security at the ports. She disclosed that the NPA will continue to support the security officers in their efforts to ensure continuous safety of Nigeria’s maritime domain.

The conference themed ‘Integrated Maritime Security Architecture; A Panacea for Economic Growth of Nigeria,’ was hosted by the Niger Delta Maritime Security Area.

The highlight of the conference was the presentation of awards to individuals and organisations for their contributions to the development of the forum.

issues around government policies that led to massive smuggling of vehicles and rice into the country.

According to her, the plan is also to attract private investors to Nigerian ports, assuring of government’s determination to continue to provide necessary infrastructure at the ports.

“We are currently reviewing the concession agreement and we are working with the World Bank as a technical partner. What

we have discovered is that there is no clarity on sanctions for any of the partners that violate the rules. No clarity as to what form of penalty. These are part of the things we are looking at and we have gone far in the process,” she said.

According to the revised agreement, terminal operators will ensure that there is no decline in the standards of their operations while pledging that the operations rates shall be in accordance with

applicable laws and competitive within the port and with other competing ports of Nigeria and its neighbours having facilities similar to the lease property.

The revised agreement states that terminal operators shall also be allowed to charge for other services rendered, including terminal handling, inland container depot transfers, storage and for penalties for violation of applicable rules and regulations set down by the companies.

According to the draft agreement, the review of the concession agreement by the government will further sanitise the sector and enhance smooth operations and clearance of cargo at the ports.

The revised concession agreement prescribes: “In the event that the government or any of its agencies receives a complaint of discrimination on the part of the terminal operator, and the regulator, concludes after its investigation of such complaint that there are reasonable grounds for such complaint, then the lessee shall immediately cease and desist from such practices and pay any applicable penalties provided for under applicable law,.

Nigeria, African countries to partner on achieving sustainable blue economy

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etermined to advance Africa’s prosperity through safe and sustainable use of the continent’s vast sea and ocean resources, Nigeria has expressed its readiness to cooperate with other countries and development bodies to achieve a sustainable blue economy.

Rotimi Amaechi, Minister of Transportation, made this known while speaking at the just concluded Sustainable Blue Economy Conference held in Nairobi last Wednesday.

Amaechi, who conveyed Nigeria’s statement of commitment to the blue economy initiative, said its growth was the most viable option for Africa’s development in the wake of declining mineral and commodity prices.

He said the high level participation in the conference demonstrated the importance African countries attached to the Blue Economy and their resolve to use the resources of the seas and oceans to accelerate economic growth and

reduce poverty.

Amaechi, who was represented by Dakuku Peterside, director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA) said that Nigeria is conscious of her responsibilities and international obligations which gave rise to the endorsement and domestication of key International Maritime Organisation (IMO) instruments.

“We are mindful and highly committed to our responsibilities of protecting our marine environment and ensuring that our continent does not become a dumping ground for pollutants that can prevent exploration of ocean resources.”

Amaechi highlighted steps taken by the Federal Government to mainstream the blue economy concept into its Economic Recovery and Growth Plan (ERGP) to include formulation of a draft National Transport Policy, which is awaiting approval of the Federal Executive Council FEC. The policy, according

to him, will provide the platform to implement at the country level the framework for the protection and sustainable exploitation of Africa’s maritime domain.

“The government has also constituted a high-powered committee, coordinated by the Federal Ministry of Transportation, to formulate and map out a roadmap to align the Blue Economy regime with the country’s ERGP,” Amaechi said.

He listed other steps taken by the government in this direction to include the drafting of a dedicated antipiracy bill, which is before the National Assembly and will provide the requisite framework for the fight, prosecution and punishment of piracy and other related crimes on waters.

“The government has granted approval for the acquisition of intelligence gathering maritime domain awareness assets and military response assets to fight pirates and make Nigeria’s maritime domain safe for economic activities.

Wednesday 05 December 2018

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In association with E-mail: insurancetoday@businessdayonline.com

There is no financial sense living without pension plan – Sigma boss

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Africa Re moves to close market gap, as industry loses 70% premium offshore …drives tech innovation Stories by Modestus Anaesoronye

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einsurance giant, Africa Reinsurance Corporation says it is concerned about huge premium loss from Africa over lack of capacity on the continent.

According to the reinsurance giant, only 30 percent of the reinsurance premium from the continent is retained locally, while 70 percent is underwritten offshore, calling on players in the continent to redouble their effort by creating consumer value through innovations.

Africa Re said its leading technological innovation in the African insurance industry as part of efforts to deepen penetration and increase consumer value.

Corneille Karekezi, group managing director, Africa Re says digital transformation has redefined the business landscape,

urging its partners (insurers) to make use of digital technology to align with today’s business requirement According to him, customers will be at the center of this technological transformation, as the insured will decide needs, product types, as well as premium to pay.

Insurers therefore must be prepared to offer different alternatives for the consumers to choose from, urging players in the industry to work together with Africa Re to survive, create value and grow the market.

He says the company is committed towards ensuring that there is increased retention of premium in Africa.

Karekezi notes that Africa Re was developing its sixth strategic plan for the period (2019-2023), urging insurance companies to move out of their comfort zones and support market growth through innovations.

“If you as our customers do not survive, we will not survive;

if you do not do well, we will not do well”.

He says the market should begin to look at these technologies as they are here to disrupt the space – genomics, IOT, robotics, cyber risks, cognitive systems, drones, as well as block chain.

“All of these are coming to redefine the market. We cannot escape it, so we must begin to prepare for it, Karekezi states.

“Africa Re has evolved a forward looking business development strategy aimed at utilising its deep insight and unique position on the continent to sustain its eminent status as a regional player”.

According to him, service delivery initiatives and product offerings are being launched on the back of skills improvement programme implemented for its staff.

“Appropriate systems are also being implemented to strengthen governance, risk management, underwriting discipline across the corporation”

ber that one day they will retire. So, now we are going into the informal sector to bring people into the formal sector and that should lead to a quantum leap in the number of retirement savings account.”

Nevertheless, he said the six - kilometer walk, which will be increased to 10 kilometers at the next edition - will give the company opportunity to connect with its customers and solve whatever problems they may be having concerning their accounts.

Specifically, the MD said the programme will offer an “opportunity for Sigma to connect with its customers in Abuja and environs in an informal setting.

“While we want to listen to some of the issues, it’s really not about the business today. We want to connect with you, meet you, and know you so that when we see on the road, we can greet you.”

According to him, the whole idea is to keep people fit enough; healthy enough to enjoy their retirement because it’s only a healthy person that can enjoy life after retirement.

“It’s just a way of giving back to our customers; it’s one of our corporate social responsibility but I think the benefit is that it helps us bond with our customers; we are able to mingle with them at an informal environment and hopefully, we will create a better bond and a stronger brand for the company.

Meristem maintains leadership position despite market lull

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eristem Stockbrokers Limited has earned for itself another market leadership, as the stock broking firm of the year in the recently held Business Day Banking and Financial services Award for 2018.

Organisers of the award says despite the tough economic situation undermining activities in the capital market, Meristem Stock Brokers Limited has continued to create value for its clients and teaming customers.

In December 2017, Meristem Stockbrokers Limited set a new chapter in the history of the Nigerian Stock Exchange, by being responsible for the largest single trade on the Exchange since inception.

In 2017, The MeriGame product

was launched in a bid to provide the platform to budding investors with an opportunity to learn how to trade stocks under real market conditions.

In addition, The MeriTrade product is acknowledged to be the first online stock trading platform in Nigeria which allows investors to buy and sell stocks on the Nigerian Stock Exchange on the go from the comfort of their homes and offices.

Meristem Stockbrokers Limited is a subsidiary of Meristem Securities Limited and is licensed by the Securities and Exchange Commission (SEC) in Nigeria and is also a member of the Nigerian Stock Exchange (NSE). As a stock broking firm, Meristem Stockbrokers provides a wide range of products and services to investors across Africa, Europe and the United States of America.

2015

L-R: Henry Onwuchekwa; Sola Ajayi, GM, Retail Life; Edwin Igbiti, managing director/CEO; Adeyeye Enitan Ogunwusi, the Oni of Ife; Titilope Adeshina; and Adewale Kadri, executive director, Technical of AIICO, when the Oba hosted AIICO Insurance management team in his palace.

he importance of pension plan as a necessary step towards achieving a sustainable life in retirement has been emphasised, with expert stating that “there is no financial sense living without a pension plan”.

Dave Uduanu, managing director/CEO of Sigma Pensions Limited who made the remark called for increased awareness campaign on the benefits of having a retirement savings account (RSA).

Speaking in Abuja at the company’s maiden edition of ‘Walk to Live’ meant to prepare customers for a healthy retirement; Uduanu said Sigma Pensions was also focused on wooing customers from the informal sector of the economy.

He used the event to encourage its customer to live a healthy lifestyle by keeping fit enough to enjoy their retirement, stating that it is only a healthy person that can enjoy life in retirement.

Addressing journalists on the sideline of the event, he said one of the biggest challenges in the pension industry has been the drop in enrollment in RSA. According to him, ”The pension industry has done well and it’s now N8.4 trillion but I think the key challenge is that enrollment level has dropped.

“So, we need to encourage more Nigerians to get retirement savings accounts. “People should remem-

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E-mail: insurancetoday@businessdayonline.com

Insurers see cyber loss coming from Marriott Hotel chain data breach Stories by Modestus Anaesoronye

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he insurance and reinsurance market is awaiting official notification for a sizeable cyber loss from the Marriott hotel chain, after a data breach exposed up to 500 million customer details.

According to reinsurance news, this cyber loss according to report involves around 500 million details of customers Marriott said that the breach involved its Starwood brand guest reservation database, with its investigation showing that there was unauthorized access to the database, which contained guest information relating to reservations at Starwood properties on or before September 10, 2018.

The breach includes some banking or credit card details being lost, Marriott said The firm explained, “It contains information on up to approximately 500 million guests who made a reservation at a Starwood property. For approximately 327 million of these guests, the information includes

L-R: Ibrahim Pinder, head compliance, NFIU; B Hassan, deputy director, CBN; Barineka Thompson, director Inspectorate, NAICOM; Isah Bukari, CBN and vice president, ACAMS Nigeria Chapter at the Association of Certified Anti-Money Laundering Specialist 17th AML/Financial Crime Conference in Las Vegas, USA

some combination of name, mailing address, phone number, email address, passport number, Starwood Preferred Guest (“SPG”) ac-

count information, date of birth, gender, arrival and departure information, reservation date, and communication preferences.

African Alliance launches interactive website to boost consumer access

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n a bid to further demonstrate its positioning as an innovative life insurance company, African Alliance has unveiled a new interactive website that boasts of personalised features and ease of transaction.

Hosted on its former web link, the website especially boasts a feature that allows visitors to the page to instantly calculate their premiums and adjust the value to suit their goals. Among other notable features is a portal for customers to view their life insurance policies on a single page, an instant connection to pay for premiums in

seconds and a simple Question & Answer feature that advises customers of the right premium to suit the current stage of their lives.

Speaking on the website, Funmi Omo, chief executive officer, African Alliance Plc said “This is one of the ways African Alliance is committed to protecting the lives of every Nigerian as our purpose outlines. We believe everyone deserves the best quality of life and this begins with the choice they make in everything they do, especially in the choice of the life insurance policy they decide to take. As more people embrace technology,

we are also upgrading all processes to deliver customer experience.

Following rigorous strategy sessions, the company has begun to roll out new initiatives ahead of its 2019 plan to strengthen the company’s position as one focused on advancement and delivering exceptional value to all stakeholders. Most recently, it announced the relocation of its headquarters from its former Marina location to a high-rise building in the heart of Ikoyi on Awolowo Road. The move was predicated on the need to guarantee easy access to customers.

For some, the information also includes payment card numbers and payment card expiration dates, but the payment card

numbers were encrypted using Advanced Encryption Standard encryption (AES-128).”

Marriott said that an unauthorised party had copied and encrypted information from the Starwood reservation database, and took steps towards removing it.

A number of our sources on the underwriting and broking sides of the market have confirmed that the loss notification is expected and likely to be meaningful to those exposed to it.

We’re told that this loss could wipe out the specific affirmative cyber insurance that is in place on the account in question, which we understand extends to $250 million or a little more, with the potential to hit broader business coverages if interruption becomes a factor.

We have been hearing rumours that a new cyber loss was about to hit the market for almost a week now and that it would be hotel chain related.

Some market sources have said that whatever cyber loss event does emerge is destined to hit cyber reinsurance carriers as well, all of which goes some way towards suggesting that there is veracity to the information.

Understanding motor insurance

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ccidents happen, so it is reassuring to know that you are covered financially if you have taken out an insurance cover for your vehicle. Having car insurance is a legal requirement and mandatory for all motorist or intending motorist as enshrined in the Third Party Act of 1945. “All motorists must be insured against their liability to other people or road users, as stipulated in the Motor Vehicle (Third Party Insurance) Act, 1945”.

The Act mandates at least a Third Party cover which basically covers your liability as a motorist to third parties and/or property.

Experts at Cornerstone Insurance Plc say that car Insurance cover comes in various options

the cover option selected.

What if I am not insured?, Driving without car insurance is illegal.

If you do not have it, you could be fined and the maximum fine is unlimited, the law enforcement agents also have the power to seize vehicle being driven without cover.

Types of car insurance There are three levels of cover you can choose from - third party; third party, fire and theft; and comprehensive.

Third party - This is the bare minimum required by law but is not always the cheapest. It covers injuries to other people and damage to others property.

Third Party, Fire and Theft This is the same as third party but also covers the cost of repairs or a

depending on your requirement and affordability. The cover ranges from the basic Third Party which is mandatory to Comprehensive. Car Insurance provides financial protection in the event of your vehicle being damaged, stolen, vandalised or destroyed by fire. It also protects your liability for injuries to other drivers, passengers or pedestrians, and their property depending on

replacement vehicle if your car is stolen or damaged by fire.

Comprehensive - This is the highest level of cover you can get. It protects against damage to your own car as well as accidents involving other people. It can also include a courtesy car, tracking, flood, Riot Strike and Civil Commotion; however, this may be at an additional cost.

Leadway Assurance gets industry recognition

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eadway Assurance’s position as Nigeria’s most valuable Insurance service provider received further boost at this year’s edition of the Business Day Banking and Financial Institutions Awards as the company was crowned the nation’s Insurance Company of the Year 2018. The event took place in Lagos on Friday, November 23rd.

The BusinessDay Banking and Financial Institutions (BAFI) Awards is an annual event that celebrates the achievements of those who drive growth, development and financial inclusion in Nigeria. It draws a large gathering of industry leaders from the various

service sectors.

Receiving the award on behalf of Leadway Assurance Company Limited, Oluwafemi Adebayo, the divisional director, Life Sales, said the honor was an acknowledgement of Leadway’s iconic position as a path-finder as well as an innovation driver in the insurance segment of the nation’s financial sector.

Tunde Hassan-Odukale, executive director, Financial Services & Systems, Leadway Assurance described the award as a testament to Leadway’s position as Nigeria’s most dynamic insurance brand.

He said the company would continue to invest in best in class

skills, tools and processes with the objective of delivering sustainable benefits to all stakeholders through the provision of innovative and comprehensive insurance solutions. This, he added, would aim to deepen Leadway’s position as a market trend-setter in retail insurance in the country “We are committed to building the biggest retail insurance company in Nigeria by developing alternative channels and delivering innovative products to the customer, thus making insurance products accessible across all market segments and distribution channels”, Hassan-Odukale declared.

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Pension Today

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In Association with

Uzouwkwu, a comedian can’t wait to join micro pension scheme

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L-R: Paddy Ezeala, regional manager, South East, Premium Pension Limited; D.L. Sanda, an air vice marshall and secretary, National Defence College; Innocent Chukwuma, founder/C.E.O, Innoson Vehicle Manufacturing and Patrick Eze, a brigadier general during a visit by a team from the National Defence College to Innoson Vehicle Manufacturing.

CPS to the informal sector, is looking at a flexible system that captures the peculiarities of the target population.

Contributions are to be split into two with a smaller percentage going for savings and accessible to the contributor while the greater percentage shall be strictly set aside for pensions.

This scheme will have like the CPS, an individual portable retirement savings account that will be managed by Pension Fund Administrators (PFAs) while the funds will be kept in custody of the Pension Fund Custodians (PFCs).

The need for provision of pensions and most especially to the self employed informal sector workers, experts say is as a result of the clearly breakdown of the family support system

which hitherto helped parents at old age.

Besides that, there is the need to avert old age poverty, even as it has become a global trend and has been implemented in certain jurisdictions like India, Kenya and Ghana Polycarp Anyanwu, head, Micro Pensions Department, National Pension Commission speaking on the theme “Understanding Micro Pension Scheme: Features, Prospects and Expectations” described micro pension initiative as a scheme that exists for the provision of pension coverage to self-employed persons.

He said the Commission’s target is the self-employed in various trades and professions in Nigeria including artisans, account-

RC634453

Diamond Pension Fund Custodian Limited 1A, Tiamiyu Savage Street, Victoria Island, Lagos State.

Tel: 01-4613753, 2713680, 2713954 Fax: 01-2713955 Email: info@diamondpfc.com Website: www.diamondpfc.com

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Some of the peculiarities of the individuals that operate within the informal sector that is hoped would benefit from the micro pension scheme include irregular flow of income, highly mobile and flexible jobs...

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enneth Uzoukwu, a 39 years old comedian like many other self employed people earn so much from their crafts, but have no structured savings plan to take care of their selves at old age.

They earn so much from their trade, and as the money comes so it is also spent.

Their income is not regular, but when it comes it is always big.

For Uzoukwu who realises that personal savings at will without any structured scheme has not helped him build reasonable resources for old age pensions, says he cannot wait for take-off of the micro pension scheme.

His plight is that he always goes to withdraw from his savings and most times for things that he later regrets, he believes that a structured savings scheme will enable him save better and build capacity for retirement benefits.

For him, the micro pension scheme under the Pension Reform Act 2014 expected to commence January 2019 is the best bet to save for old age protection.

The beauty of the scheme, which targets to provide old age protection plan is that contributors will have the opportunity for savings withdrawal benefit as well as . The flexibility is the selling point, which is that contributors use the same scheme for immediate and short term needs, while also remaining protected for pensions.

The scheme being developed by the National Pension Commission (PenCom) as an offshoot of the Pension Reform Act 2014 that targets to extend the

ants, lawyers, mechanics, tailors, market men/women, hair dressers, architects, engineers among others.

Anyanwu stated that the micro pension scheme is an offshoot of the Pension industry 5-year strategic plan to expand the coverage of the CPS to 20 million contributors by 2019 He said this will cover three strata of the population in the society which include the lowest, middle and high income earners with the informal sector.

Section 2(3) of the Pension Reform Act, 2014 extended coverage of the Contributory Pension Scheme to self-employed persons with the objective to avail the contributor access to regular stream of retirement income at old age and improve living standards of

the elderly.

Besides, it will enable contributors benefit from the various incentives to be offered by the PFAs; deepen financial literacy and inclusion, secures financial autonomy & independence of retirees; passage of wealth to survivors in the event of death; increases national savings & long term funds; promotes growth & development of the capital, mortgage and insurance markets and overall positive effect on the national economy as pension asset increases.

The informal sector being discussed here is largely uncovered by any structured pension arrangement and represents over 70 percent of Nigeria’s total working population.

Some of the peculiarities of the individuals that operate within the informal sector that is hoped would benefit from the micro pension scheme include irregular flow of income, highly mobile and flexible jobs, lack of permanent work address, lack of official means of identification and other documents, typically excluded from pension systems prior to PRA 2014 and they are also largely uneducated.

The Nigerian Bureau of Statistics (NBS) also show that Nigeria’s GDP as at the end of 2015 was about N94.1 trillion, out of which N38.7 trillion is from the informal sector while N55.3 trillion is from the formal sector The report according to the NBS was a confirmation that the nation’s informal sector remains a critical part of the economy, meaning, that it holds a lot of growth potential that needs to be developed to achieve a holistic growth in the economy.

This section is created to increase awarness and deepen knowledge about the contributory pension scheme.

If you have enquiries or contributions, send to this e-mail: diamondpfcbusday@yahoo.com

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E-mail: insurancetoday@businessdayonline.com

New payment services banks: Can micro insurance key-in?

Modestus Anaesoronye

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L-r: Olasupo Sogelola, executive director, Technical/Operations, Law Union & Rock; Jide Orimolade, former managing director; and Mayowa Adeduro, new managing director during a send forth party in honour of Orimolade by Law Union and Rock Insurance

requirement has been set at N5billion. PSBs are prohibited from granting loans or conducting insurance underwriting.

Micro Insurance • Micro insurance itself is also intended for the grassroot. As the financially excluded have very little means to endure hardship of sudden and unexpected shock and emergencies, a

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simple and affordable low premium basic cover insurance product could normally solve this problem.

• Unfortunately, many insurance operators are challenged by the distribution cost and in particular, the premium collection. The new PSBs might bring up an opportunity for the insurance market to work with regulated PSBs to facilitate

The financial services sector in Nigeria is transforming rapidly, and the mobile banking revolution is a key driver of this change in areas such as payments and transfers, virtual savings, credit, cross border transfers and indemnification

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n a paper titled “New Payment Ser vices Banks : Can Micro Insurance key-in?” a regulatory expert, Babajide Oniwinde, said it is important for insurers to explore ways in which the new Payment Services Bank framework can support Micro Insurance.

The introduction of Payment Services Bank to the Nigerian financial sector, he said is a welcome development.

According to CBN, PSBs are expected to leverage on mobile and digital services to enhance financial inclusion and stimulate economic activities at the grassroot.

Opportunities in payment services • Nigeria’s economy is still largely cash predicated, however, the opportunity for payment services subsists where people want to transfer money across the country or pay their bills onlineand thereby making Nigeriaa mobile first nation with digital first approach.

• Nigeria has the largest penetration of mobile phone usage in Africa with vast number of Nigeria’s huge population also accessing the internet through smartphones.

• The current trends in Nigeria is that payment services are working with bank to enables access to finance and enables financial inclusion, as payment services providers can offer services cheaper and faster that banks.

• According to CBN, PSBs will enable high volume low value transactions in remittance services, micro savings and withdrawal services in a secure technology driven environment.

• Regulatory changes and the need to hold a licence, creates a challenge for payment services in Nigeria although being merely a business correspondent may remove the need for a licence and help banks boost their presence in rural areas.

• Payment services can now be stand-alone holding a regulatory licence in their own right and this is likely to add legitimacy to their operations. Minimum capital

automated premium collection and automated claims payments.

Mobile and digital revolution • The financial services sector in Nigeria is transforming rapidly, and the mobile banking revolution is a key driver of this change in areas such as payments and transfers, virtual savings, credit, cross border transfers and indemnification.

• Nigeria is leading not just in terms of numbers but additionally in innovation due to expeditiousspreading and more affordable smartphones which offers simplistic access to financial services for large numbers of people through well-designed applications.

• The problem of digital in Nigeria is the huge cost of software, computer services and the technical skills to operate them; limited resources and regulatory cost which will also add to the challenges. However, having a shared service arrangement has helped to overcome most of these difficulties.

Financial Inclusion • Nigeria has a great number of people who need

financial inclusion as they go to the informal yet costly and risky social savings network, moneylenders or friendly support networks in lieu of the more stable formal banking services.

• The absence of physical presence of banks in remote areas is the main reason for financial exclusion as well as insufficient awareness of the benefits of products and services, affordability issues and overall lack of trust in the system due to past experience.

• Banks in Nigeria in the past had done little to retain their customers rather they just maintained their branch network, however today, in view of the authentic threat of losing pertinence, banks are arousing to this need to innovate with electronic banking and digital capabilities out of dire essentiality to remain strategically relevant.

Regulation • Payment services and Mobile money represent a very narrow aspect of banking and hence should have less stringent regulatory requirements than full banking, in order for customers to get the most value for their money.

• Regulation that is too prescriptive can sometimes hinders innovation and new ventures in the space may faces difficulties if they are not familiar with the rudiments of the regulatory environment.

• Banks tend to pass the cost of regulation to customers, rather than responding to the customers’ needs; and excessive regulation of payment services could compromise customer services, leading to negative public perception.

• T ra d i t i o na l b a n k s whose business maybe disrupted by new comers are more likely to embrace greater regulation. Regulators therefore need to create a level playing field with technological neutrality and demonstrate proportionality and flexibility in order to keep pace with digital changes.

• Therefore, regulators need to have a full understanding of the operations of the digital world to enable them to effectively regulate in the fast-moving digital environment. Payment services could support micro insurance in serving the needs of rural areas using technology.

BUSINESS DAY

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CITYFile

More knocks for BEDC firm over blackout in Edo

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ondemnation has continued to trail Benin Electricity Distribution Company (BEDC) over its inefficiency, leading to weeks of power blackout in many parts of Edo State.

Recall that Governor Godwin Obaseki of Edo State last week walked the managing director of BEDC, who had visited the Government House, out of his office, in a show of anger over the poor level of power supply in the state.

A resident of Benin, Osagiede Izekor, described as “unacceptable, the total blackout that Edo residents are experiencing and the attendant negative impact on businesses and social activities in the state.”

Izekor said: “My parents live in Kaduna State and I go there regularly to see them. I speak with them daily and they enjoy regular electricity supply, up. I am glad that the Edo State governor has spoken the minds of all Edo people with regard to how they feel about the electricity distribution company.”

He urged BEDC to review its business model and heed the voice of the people before the company is thrown out of the state as its growing unpopularity can earn it a major public relations disaster.

“The company must review its practices if it wants to remain in business in the state and elsewhere. Public dissatisfaction has reached unprecedented level and the worst could befall BEDC sooner than later.

“People could resort to attacking BEDC staff, vandalising their rickety and wobbly equipment if the company does not change its ways and serve the people that are harassed daily for electricity bills even when they are in darkness.

“BEDC cannot continue to grand stand when clearly, it is grossly inefficient and incompetent. It is the most unpopular and unwanted electricity distributor today. Ask the market women, small and medium scale business owners about BEDC, they all have very harsh things to say about it for keeping them perpetually in darkness.”

NBA protests killing of lawyer in Ekiti

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embers of the Nigerian Bar Association (NBA) have protested the killing of a lawyer by kidnappers in Ekiti State.

The lawyers, who wore black attires to the premises of the State High Court, wielded placards with various inscriptions denouncing the killing and demanding the arrest of the kidnappers.

Some of the placards read: “ Stop killing lawyers in Ekiti State,’’ ” No to killing, No to Kidnapping,’’ ” We demand arrest, prosecution, punishment of kidnapper,’’ and ” State Government, Police, Army, do your job.’’

Chairman of Ikole-Ekiti branch of the NBA, Ibrahim Olarewaju, said the victim, Adeola Adebayo, was kidnapped alongside with his family members on November 17 at Erio-Ekiti.

He said the kidnappers released the victim’s family members and held him captive after demanding N100 million ransom.

Olarewaju said the family could only raise N2 million which was paid as ransom to the kidnappers.

He expressed regrets that the victim, who was the Secretary of the Ikole-Ekiti branch of NBA, was shot in spite of the payment.

Describing the victim as a vibrant colleague with a promising future, he urged traditional rulers in the area to work with security agencies to fish out the hoodlums.

“The traditional rulers should send their vigilantes, hunters and Neighbourhood Watch members to these bushes to stop the brutal killing of Ekiti residents. Enough is enough on this evil killings and kidnappers,” he said.

Secretary of the Ado-Ekiti branch of the NBA, Temidayo Akeredolu, recalled that the son of a member was also brutally killed on the day he was called to the Bar in Abuja.

He called on government at all levels to make the security of life and property a priority.

Rio Ferdinand (centre), former English professional footballer, pose with the Nigerian Amputee Football Team, also known as Special Eagles, during his visit to the National Stadium, Surulere, Lagos.

Pollution: Centre seeks policy to curb environmental hazards

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at i o na l Mat h e mat i ca l Centre (NMC) has stressed the need for the establishment of a policy to reduce the number of deaths and illnesses from hazardous air, water and soil pollution.

Stephen Onah, the Chief Executive Officer of NMC, made the appeal at the opening of a three-day international conference on Mathematical Modeling of Environmental Pollution on Monday at Sheda, Kwali Area Council, FCT. The conference has its theme as “Militating against environmental pollution through mathematical modeling for sustainable development’’.

According to Onah, the environment needs to be protected from toxic wastes which include thousands of chemicals, gasoline and other hydrocarbon products that can cause health problems ranging from birth defects to cancer.

He said that the most sources of pollution were from combustion of hydrocarbon, adding that hydrocarbon is a major entry

point of pollution to the environment.

“There should be on ground, a sustainable environmental protection policy as required by one of the United Nations sustainable goals.

“The focus of most researches these days is on prediction of the pollutant transportation and transformation in order to provide vital information for the management of air and water qualities.

“Mathematical modeling and simulation of earth’s atmosphere and marine systems are aimed at obtaining balanced information on dynamics of the complex physical, chemical and biological processes,” he said.

Onah noted that mathematical models were used for computing optimum distance between residential areas and urban transportation network.

“This is to provide a better planning for urban transportation through satellite images, aerial photos and geospatial analysis.

“Towers finding the effect and impact of urban air quality with respect to urban transportation networks,” he explained.

Onah, however, hoped that the conference would help to address some of the environmental challenges currently confronting the country.

Chairman of the NMC council, Buba Bajoga, appreciated the management of the centre and encouraged it to continue to see ways of making mathematics interesting to the students.

Bajoga expressed optimism that the centre would be a focal point of excellence in mathematical sciences in the country.

Similarly, Thron Christopher of the Department of Mathematics, Texas and M University, Central Texas U.S., advised the centre to endeavour to collaborate with the national community and other relevant agencies for better service delivery.

“Think in all directions especially in the area of competition. Engage students with a lot of competition programmes,” Christopher suggested.

According to him, practical activities and good relationship with the society will help to promote the centre and skills development.

Two killed, 14 injured in Kano auto crash ADEOLA AJAKAIYE

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wo persons were reported dead while 14 others sustained injuries when two vehicles collided at Garo along the Kano-Gwarzo road, an official of Federal Road Safety Corps, has said Kabiru Ibrahim, spokesman of the Federal Road Safety Corps (FRSC) who

confirmed the casualty figure, said that the accident occurred at about 08:15am on Monday.

“On receiving the information, we quickly dispatched our personnel and vehicle to the scene of the incident to rescue the victims,” Ibrahim said.

Ibrahim said two vehicles, a bus with registration number XA 999 TSF and a Honda Accord car from opposite direc-

tion collided.

He attributed the accident which involved 16 persons to speed limit violation which he said led to loss of control by the drivers.

He said the FRSC personnel took the victims to a nearby hospital in Kano where the doctor on duty confirmed two dead while the remaining 14 victims were currently receiving treatment.

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In Association with

Leveraging technology to enhance credit to critical sectors Stories by Hope Moses-Ashike

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ne of the aspects of the banking sector activities that the Central Bank of Nigeria (CBN) expects improvement on, going forward is lending to the real sector of the economy.

The CBN, at its July 2018 Monetary Policy Committee (MPC) meeting, pledged to refund Cash Reserve Requirement (CRR) to banks under certain conditions.

Consequently, banks that bring proposal for funding of new projects or expansion of existing ones in agriculture and manufacturing sectors will, accordingly, qualify for CRR refund of up to 100 percent.

Godwin Emefiele, governor of the CBN said this policy will be intensified and enriched in the coming years. “The Bank will explore the possibility of leveraging technology to enhance credit to critical sectors of the economy, especially, agriculture and manufacturing”, he said.

The CBN last week gave a glimpse of what the economy and the financial services sector would like come next year and subsequently.

In view of this, the Apex bank said the economy is expected to grow by 1.7 percent in the third quarter of 2018 and by 1.9 percent in

Godwin Emefiele. CBN, governor

the fourth quarter of the same year. Growth is currently put at 1.5 percent since quarter two of 2018.

Emefiele, who disclosed this in Lagos at the bankers dinner organised by the Chartered Institute Bankers of Nigeria (CIBN) expects the Gross Domestic Product (GDP) to pick-up in the remaining two quarters of 2018, buoyed by the anticipated budgetary and electioneering spending in the near-term.

Also, the CBN projects inflation rate to rise slightly to about 11.4 percent the rest of 2018 and towards mid-2019 and then moderate thereafter.

Emefiele said the mon-

etary policy stance will remain judicious, research driven, adequate and supportive of the real economy subject to underlying fundamentals. According to him, the current tight stance is expected to continue in the near-term, especially in view of rising inflation expectations and exchange market pressures. “Though we will act to appropriately adjust the policy rate in line with unfolding conditions and outlooks, the CBN will continue to ensure that the policy interest rate is delicately set to balance the objectives of price stability with output stabilisation”, he said.

Though the CBN has so

far managed to maintain exchange rate stability, the current capital flow reversals from emerging markets he said is expected to continue to exert considerable pressure on market rates.

This pressure he maintained could be amplified by the forthcoming elections, especially as the political market place heats up. Notwithstanding these pressures, Emefiele said the CBN is determined to maintain its stable exchange policy stance over the next few months given the relatively high level of reserves. Gross stability is projected in the FX market given increased oil related inflows and contained import bill.

“I will like to make it categorically clear that “sustaining a stable exchange rate is of overriding importance to us even as we continue to put measures in place to shore up reserves”.

On 41items, Emefiele said the CBN’s Economic intelligence and Banking Supervision Departments will work very hard with the EFCC to expose and sanction any, bank, company or FX operator that colludes with unscrupulous individuals / companies to undermine the policy on 41 items. Such sanctions will include, but not limited to prohibiting the banks from maintaining any bank accounts for such institutions or persons in Nigeria.

Access Bank wins ‘Most Responsible Business in Africa’

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ccess Bank Plc has been adjudged ‘Most Responsible Business in Africa’ at the 2018 edition of the annual Sustainability, Enterprise and Responsibility Awards (SERAS).

The Bank won the most coveted award category at the Awards ceremony which held on Saturday, December 1, 2018 in Lagos.

The Awards event recognises efforts at eradicating

poverty through sustainability by turning challenges into opportunities, protecting the planet and ensuring prosperity.

Receiving the award, Victor Etuokwu, executive director, Personal Banking, explained that with closer examination of different communities across the country, there should be a stronger need for sustainability practices as more effort needs to be effectively applied to address the nation’s socio-eco-

nomic issues. He noted that the acknowledgement will further fuel the Bank’s passion to do more in areas of sustainability.

Omobolanle VictorLaniyan, the bank’s head of sustainability, who also won the ‘best sustainability professional’ award for her dedication towards driving the bank’s vision of sustainability expressed appreciation for the recognition, describing it as a reminder of many more

grounds that still needed to be broken.

“We are very grateful for such an honour accorded to the Bank and particularly for the work that we are doing. However, we choose to see this award as a challenge to do more and we will continue to make sure that we push the boundaries of the practice of sustainability to the best of our ability and for the benefit of our planet and the people,’’ she stated.

How LAPO impacts 24m persons with health, social, financial services

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t its annual general meeting recently, Lift Above Poverty Organization (LAPO) disclosed how it enhanced the socio-economic and health conditions of 24,717,347 community members across the country with its services in 2017.

Osarenren Emokpae, chairman, board of directors, said 2,237,476 persons were empowered with health and social development training, Information, Education and Communication (IEC) publications while 22,479,871 benefitted from the LAPO Community Campaign for Cancer Control (LAPO-C4) project in Lagos, Imo, Abuja, Rivers and Edo State through screening and media awareness.

The board chairman expressed LAPO’s commitment to improving the lives of com-

munity members and building the capacity of women to challenge and resist harmful sociocultural structures and processes that limit their progress and enjoyment of good life.

He emphasized that social and health empowerment programmes have always been an integral part of LAPO’s poverty reduction strategy, stressing that there can be no meaningful development without women involvement and inclusion in the development process.

He said the organization delivers innovative health, social empowerment and financial services to target beneficiaries and expressed gratitude to LAPO Microfinance Bank Limited and other organizations that have been part of the history and success story of the development organization over the years.

Need for CeBIH to deploy digital competencies in solving socio-economic problems

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he Committee on E-Business Industry Heads (CeBIH) has been charged to deploy digital competencies used in developing Nigeria’s payment system to solve other socio-economic problems in the country.

Abubakar Suleiman, managing director/CEO, Sterling Bank plc, ave this charge while delivering the keynote address at the 2018 annual CeBIH retreat held in Abeokuta Ogun State.

Abubakar, who spoke on the theme, “Exploring Opportunities in the New Digital Economy”, noted that while there is crisis in critical sectors of Nigeria, namely education, agriculture and transport, banks and others, digital payment professionals have the capabilities and solutions to accelerate the solution to the crises in these sectors.

Speaking on the impact of digitisation as a tool for addressing socio-economic issues, Abubakar said, “Digitisation is on one hand data, and on the other hand how you transmit data. Every single work we do in digitisation has to do with data and how

it is transmitted and what it does.

“The pace of the commerce will determine the pace of payment. So if we don’t solve for payments we would not have been able to solve for commerce or increase the pace of commerce which is essentially what drives your GDP, the velocity of money, of transactions cannot be higher than velocity of transaction in the real world.

“There is one thing I am hoping to see, it is taking all of these competencies that we have built in the payment space and recognising that it is the same as processing data in a manner that is reliable, trusted, instant, and using that to change lives in other sectors of the economy.”

Also speaking, Musa Jimoh, deputy director/head of payment system oversight, Central Bank of Nigeria (CBN), called on banks to leverage on the huge data at their disposal to develop innovative solutions to customers’ sociocultural need.

“The greatest challenge that we have today within the payment industry is how we see our data.

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How to get your car ready for road trip (1) Page 30

Tyres Value Drive New A-Class redefines modern Infinity 2018 goes upscale luxury in compact class I Stories by MIKE OCHONMA

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h e n e w M e rcedes A-Class is the benchmark of the compact car class that remains youthful and dynamic as ever. It is grown-up and comfortable like never before.

Through Weststar Associates Limited, the authorized general distributors of MercedesBenz in Nigeria; the new A-Class is now available in the local market.

Since its world premiere in March 2018, the new AClass has solidified its position as the top choice for compact and comfort- oriented vehicles with more revolutionizing technology and an increased appeal to comfort and connectivity.

It completely redefines modern luxury in the compact class, and revolutionizes interior design. All models are also powered by new, efficient petrol engines and although Mercedes-Benz has retained the sporty appearance, the utility value has increased.

Technologically, the AClass stands out among its competitors with MBUX – Mercedes-Benz User Experience that offers a number of functions that were previously the preserve of the luxury class. Here are some key facts and features.

The completely new multimedia system MBUX (Mercedes-Benz User Experience) in the A-Class creates an emotional connection between the vehicle, driver and passengers.

It is enhanced with an inbuilt learning capability thanks to artificial intelligence. It can also be personalized to the taste and needs of the driver. The MBUX multimedia system comes with a comprehensive touch operation by touchscreen, touchpad (optional) on the center console and touch control buttons in the steering wheel, there is also an optional intelligent voice

control with natural language comprehension and activation using the keyword “Hey Mercedes”. Other key features of the MBUX include a navigation display with MBUX augmented reality technology and new “Mercedes me” services.

The A-Class is highly distinguished in its segment with the intelligent drive system, for the first time, the A-Class is able to drive semiautonomously in certain driving situations.

It has also been able to achieve the highest safety standard in this segment and thanks to extended driving assistance systems with S‑Class functions as optional equipment.

Other features like the Active Distance Assist DISTRONIC and Active Steering Assist now support the driver even more conveniently in keeping a safe distance and steering, the vehicle speed is now also automatically adjusted on bends, at road junctions and on roundabouts. The pre-safe plus can recognize an imminent rearend collision.

If the danger of a collision persists, the system can also firmly apply the brakes of the vehicle when stationary, thus minimizing the risk of injuries by reducing the forward jolt caused by an impact

from the rear. There are also other additional features like the active emergency stop assist and the intuitively understandable active lane change assist.

Speaking on the arrival of the new A-Class, MD/CEO Weststar Associates Limited, Mirko Plath declared; “The new A-Class takes personalization and social interaction to a whole new dynamic, the Mercedes-Benz User Experience (MBUX) gives drivers a whole new experience with the voice control feature and an inbuilt learning capability personalized to the taste and needs of the driver.

The safety systems in the new A-Class are also best in its class with even more technological advancements and there is increased spaciousness in the front and the rear in comparism to its predecessor”.

With the fourth generation of the A-Class, the brand is redefining modern luxury in the compact class with a combination of uncompromisingly dynamic design and an intuitive operating concept. By focusing on people and making their lives easier, the A-Class becomes an emotively appealing and intelligent companion.

Drivers are in for a treat as the A-Class is enhanced to give more driving pleasure

and ride comfort compared to its predecessor. There is further improved suspension with MacPherson front suspension with aluminium transverse control arms and multi-link rear suspension.

This is also further enhanced with 4MATIC and more powerful engine variants: four-link rear suspension. The active damping adjustment comes as an optional equipment with electronic control: in conjunction with the standard DYNAMIC SELECT (four driving modes), there is a choice of comfortable or sporty damping characteristics.

n the spirit of the Festive Christmas season, Nigeria’s leading tyre, battery, lubricants, solar/ renewable energy solutions and premium automobile accessories company, Infinity Group is offering its customers, a chance to experience Infinity’s quality automobile aftermarket products and get amazing gifts nationwide with the annual Infinity “Value Drive 2018”.

In a bid to thank its customers, the 16th edition of the Value Drive 2018 will last from December 1 to 31. Infinity Tyres Limited is the authorized importer and marketer of premium tyre brands such as Pirelli, Goodyear, Infinity, Ceat, Eternity, Riken, and battery brands such as Exide, Infinity and Eternity, including Motul; a global lubricant.

The company also has the franchise for genuine filters from Filtron, Eastman brand of renewable energy solutions as well as Eternity standby and traction battery range.

“Infinity Value Drive 2018” guarantee customers a chance to win amazing gifts instantly on purchase of products from Infinity sales and service outlets and Infinity Express stores.

Gifts include Premium quality compressed T-shirts, Motul Lubricants and Brake Fluid, Infinity coolant & Battery Terminals. Based on the value of the purchase, customers can win up to an Inverter and Battery as well.

According to company sources, the management of Infinity Tyres group said it ac-

knowledges the patronage of its customers across Nigeria.

The group is of the firm belief that due to the unstinted support & loyalty of its customers & stakeholders, this has been most exciting, awaited and successful promotion, and has become a tradition for the company.

The company said, the group is indebted to its customers and therefore wishes to delight its customers and encourages them to avail the benefits of “Infinity Value Drive 2018” Babatunde Ajayi, branch head, Infinity Tyres Limited, Victoria Island Branch, on behalf of the Infinity management, described the “Value Drive 2018” as a unique platform through which the company shows appreciation to its loyal customers.

He stated that the customers’ trust in quality products and superior service quality has been the singular reason for the success and consistent growth of Infinity Tyres.

The Nigerian market, though competitive is highly inclined in favour of companies that deliver products and services of highest quality.

On her part, Moyo Ekiran, Ikeja branch head of Infinity Tyres, took the opportunity to thank customers all over Nigeria for their patronage.

She said that the management of Infinity Tyres is aware that many Nigerians travel during the festive season. She wished them safe journey and a very enjoyable festive season with lots of good wishes for 2019.

Vikas Pandotra, Parminder Singh, Sanjay Singh, Moyo Ekiran, Vineet Mathur, Babatunde Ajayi, Jittu Singh, Ajoke Ajose all of Infinity group during the official kick-off of Infinity Value Drive 2018 in Lagos.

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How to get your car ready for road trip (1) Stories by MIKE OCHONMA mikeochonma@gmail.com

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s the Christmas holiday season draws so close, it is time to start making sure that all of your loose ends are tied up and if you’re planning to drive to your destination, it is essential that you make sure that, the car is up to the challenge, and the sooner the better if you want to avoid waiting for parts and other possible delays.

While sending your vehicle in for a multi-point-check is always the best course of action, there are, depending on your level of automotive knowledge and experience, various checks that you can perform yourself, even as a number of road trip checklist needs to be taken care of.

Tread depth: Although the legal limit is 1mm, make sure that your tyres have a tread depth of at least 3mm as anything below that leaves you particularly vulnerable to aquaplaning.

Pressure: Make sure your tyres are correctly inflated and monitor the pressure as you go along as low pressure due to a slow puncture could cause a blowout.

Wear: Also make sure that the wear on your tyres in not

NAJA releases finalists of 2018 Auto Awards

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uneven as that could point to worn suspension or steering components or faulty wheel alignment.

Spare: Your spare wheel should be in tip-top condition and correctly inflated. Also double check that your jack, wheel spanners and unique wheel nut sockets (if you have them) are in place.There also a number of emergency equipments.

Essential kit : While doing that, check that your warning triangle is in place and that you have a torch and a basic medical kit. A basic toolkit could also prove invaluable for performing emergency car repairs.

Phone numbers: Have some emergency numbers on hand. A good number to have on hand is 112, which will reroute you to the nearest emergency service.

Also save the national ambulance number, 10177, into your phone. Also be sure to download the Namola App onto your phone, which is something of an Uber for emergencies.

The basics: Get someone to help you check that the headlights as well as the taillights, brake lights, indicators and hazard lights are all working as they should be. If you’re on your own, a light-coloured wall in a dark spot at night will allow

you to do your own tests.

Adjustment: Also ensure that your headlights are correctly adjusted. Do a rough test by making sure that the dipped light beam is no higher than the bonnet of the car.

Avoidance: Given that most accidents happen at night, though, try your best to plan your trip in such a way that most or all of the longdistance driving happens during the day.

Wipers: Ensure that your wipers are in good working order and that the wiper blades themselves are in decent condition and not cracking apart.

Ford dealership adds zest to Fitfam Fest Stories by MIKE OCHONMA mikeochonma@gmail.com

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t was a show of strength, toughness and endurance at Ford Stongman Challenge event at the just-concluded 2018 FitFam Fest held at the Hardrock Café, Victoria Island, in Lagos recently.

The Ford Strongman Challenge which was co-sponsored

by Ford Motor Company and Coscharis Motor featured a number of activities including power lift, dead lift and tyre flip.

Participants had to push themselves to the limit whilst trying to outperform each other in the bid to stand true to the age long Ford Ranger brand slogan, “Built Ford Tough.”

At the end of the event, Jimmy Abah emerged as overall winner, clinching the star prize of one hundred thousand naira, courtesy of Coscharis and Ford.

Abiona Babarinde, general manager, Marketing and Corporate Communications at Coscharis Motors while presenting the prize to the winner

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said that the dealership and the automaker are proud to be part of the event.

The challenge resonates with the toughness of the Ford brand, especially the Ranger. A bit of this was seen in the way the Ford Ranger bulldozed its way through those heaps of beach sand to get to the chal-

lenge arena where the event took place.Five other contestants won consolation prices of one month free gym membership also courtesy of Coscharis and Ford.

Receiving the one hundred thousand naira cheque, Jimmy who was visibly very excited for emerging tops at the com-

petition said, “I am thankful to Coscharis and Ford for this prize money. I really did not see it coming, I just came here to compete and have fun but now I am going home with the sum of one hundred thousand naira. I also want to give a massive thumbs-up to the organizers of the FitFam Fest for consistently putting this wonderful event together every year.”

Eniola Sobo, from Fritz International Development Company, the organizers of the event, said that he was impressed by the massive turn out of participants for this year’s edition of the event and also thanked Coscharis and Ford for their sponsorship support.

He said, “We are excited at the massive turnout of participants for this year’s event. We are most elated to have Ford and Coscharis on board as the sponsors of the Ford Strongman Challenge category.”

Coscharis Motors is a foremost automobile dealership and the sole dealer of Ford brand of vehicles in Nigeria.

inalists in the 2018 Nigeria Auto Journalists Association Auto Awards scheduled for December 13, 2018, at Eko Hotels, Victoria Island has been released.

One of the high points of this year’s edition is the nomination of a GA3; Chinese passenger vehicle for the first time among the top three contenders for the prestigious Car of the Year crown (CoTY) in Nigeria for the first time.

Other contenders in the category are Toyota Corolla, who won the award in 2014 but was nominated in the last two previous editions, and Hyundai Elantra, which is the new kid on the block.

According Moses Ebosele, to the chairman of the NAJA 2018 Awards planning committee, the finalists in all the categories were selected by jury members of the Nigeria Auto Journalists Association, while the eventual winners would be determined by all motoring journalists and professionals with utmost objectivity, credibility and integrity He said the awards will among other things provide consumers with sound, comparative information on vehicles that are new to the market and a platform for the automotive industry to demonstrate and celebrate in the key areas of manufacturing, efficiency, innovation and technology, corporate social responsibility and safety.

In his own comment, Mike Ochonma, Chairman, Nigeria Auto Journalists Association (NAJA), said, “The reason for setting up the NAJA Awards is still the same as the platform has been created to ensure that those who are driving a very impactful agenda in the auto industry are recognized,” he said.

This year, a few categories has been added to the already existed ones, these includes; Auto Personality of the Year and the Special Recognition Award.

Competing for the Luxury Car of the Year are Mercedes Benz Sclass and BMW 7-series; Executive Car of the Year- Toyota Camry, BMW 5-series, Honda Accord; Luxury SUV of the Year- Mercedes Benz GLE and Range rover Autobiography; Pick-up of the Year- Ford Ranger, Mitsubishi and Toyota Hilux; Mini Bus of the Year- Toyota Hiace, Nissan Urvan and Foton; Light Truck of the Year- Isuzu Nseries, Mitsubishi Canter and JAC Light truck.

Others are: Heavy Duty Truck of the Year- Mercedes Actros, Sino Truck and JAC Truck; Most Improved Showroom- Massilia, Mercedes Benz Centre and Nissan Showroom; Tyre Brand of the Year- Pirelli, Dunlop, Michelin and Ceat; Most Resilient brand of the Year- Mercedes Benz, Toyota, Honda, Nissan and several others.

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32 BUSINESS DAY Financial Inclusion

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& INNOVATION Lessons for banks, mobile agents, Telcos, others in implementing DFS Supported by:

Endurance Okafor

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Banking agents, Mobile Money Operators (MMOs), Retail chains (Supermarkets), Telecommunications companies (Telcos), to operate as a financial service agents.

To understand how to reach self-sustainability of a digital banking service, some key recommendations were stated in the report and they include; adjusting DFS usage forecasts to the reality on the ground; not overcomplicating financial models; and generating solutions that address specific market challenges rather than blindly adopting processes used by other DFS providers.

Planning The report explained that a DFS planning stage should include a considered and careful financial modeling exercise that builds on realistic and informed assumptions, and accounts for different partnership and channel uptake scenarios.

Such models as mentioned in the report require a tradeoff between simplicity and accuracy, as overcomplicated financial projections can affect the visibility of the financial planning exercise, and may even confuse priority indicators the new channel should meet.

It is therefore important to properly identify and highlight the key information necessary to assess the viability of the channel. Sensitivity testing may eventually help to determine the factors

that most impact the business case.

Financial model According to the report, financial modeling exercise can also contribute to a selfsustainability assessment by helping to understand the direct and indirect income streams, as well as expenses, of the digital channel. Such assessments is said to also allow institutions to monitor profitability of the channel and its progress towards break-even.

Assumptions Assumptions should draw from experiences in similar contexts, that is, similar market environments and peers.

It went further to say that Mobile Money Operators (MNO) industry benchmarks may be misleading for financial institutions in aspects of agent network growth, customer transaction amounts, and transaction mix.

Expectations One of the conclusions

drawn from the report was that for the financial institutions that participated in the study, initial expectations on agent banking were only partly met. Channel activity and transaction volumes were mostly below expectations, while direct costs, that is, agent management staff salaries and commission expenses, were in line or above the forecast. The research therefore concluded that agent banking adoption was lower and costs higher than projected.

While channel registration targets were often met, targets for customer activity and transactions were out of reach. Targets on agent recruitment and activity as cited by the report deserve better attention and should be part of every financial model.

Mobilize savings Theoretically, the potential to mobilize savings through a digital channel is high.

However, due to system limitations and country charac-

‘

Based on this study, this report presents the key elements financial institutions need to consider when putting together a financial model for a digital channel, including detailing the main items related to capital investments and operating expense of the channel

‘

report by International Financial Corporation (IFC) of the World Bank and the Mastercard Foundation points way for institutions to understand best practice financial modelling in implementing Direct Financial Services (DFS) in Sub- Saharan Africa.

The report with the titleAligning Expectations: The Business Case for Digital Financial Services is a fouryear longitudinal study from 2014 to 2018 which focused on nine financial institutions in Sub-Saharan Africa as they implemented DFS; mainly agent banking and mobile banking solutions.

Digital financial services include methods to electronically store and transfer funds; to make and receive payments; to borrow, save, insure and invest; and to manage a person’s or enterprise’s finances.

The study was conducted with the aim to provide an understanding of the business case for DFS and the role financial modelling plays when setting expectations for the new channel, including whether or not the first set of the DFS projections were met by the participating institutions.

The findings serve as basis for a set of informed best practice benchmarks that institutions can use for their own financial planning when implementing digital banking solutions.

“Based on this study, this report presents the key elements financial institutions need to consider when putting together a financial model for a digital channel, including detailing the main items related to capital investments and operating expense of the channel,” the report noted.

Meanwhile, in the quest to promote a sound financial system in a country that has more than half of its adult population excluded from the financial cycle, the Central Bank of Nigeria (CBN), recently introduced Payment Service Banks (PSB).

The initiative, as disclosed by the apex bank will allow

teristics, that potential could not properly be quantified for most of the financial institutions, as compiled from study.

The report revealed that two institutions in the study, however, have data that allows tracking the savings trends of customers, with one bank showing that savings collected through the digital channel multiplied by seven in a twelve-month period.

Additionally, it was noted that for three banks the size of the total savings portfolio more than doubled after the launch and roll-out of their digital channels.

Sustainability Reaching DFS channel sustainability requires out of the box thinking: innovative approaches combined with clever product and service offering can enlarge direct channel revenues and boost the recognition of the DFS channel, the report recommends.

Meanwhile the approaches adopted by the study institutions to enhance channel sustainability involved overcoming common MNO belief that clients should not be charged for cash-in transactions, and the design of products that are only delivered and served through agents.

The report suggested that the need to think innovatively and ‘out of the box’ should also apply to the financial modeling exercise;

by allocating cost savings from agent deposit mobilization, or revenues from the loan business, to the agent network.

Nigeria currently operates a bank-led financial inclusion model and this is argued by financial inclusion analysts as the reason why the country, despite its large population and mobile phone penetration lags its Africa peers in including more of its citizens into the financial cycle.

“Financial inclusion is on the rise globally, accelerated by mobile phones and the internet, but gains have been uneven across countries,” the World Bank said in a statement.

Nigeria recorded a decline in the period covered by the World Bank report between 2014 to 2017.

According to the Global Findex database, Africa’s largest economy reported an average decline of 4.5 perecntage points in its financial inclusion rate, as 25 years and above of its citizens with bank accounts dropped by 5 basis points from 49 percent in 2014 to 44 percent in 2017, while account holders over 15 years, fell 4 percentage points from 44 percent in 2014 to 40 percent in 2017.

The central bank of Nigeria has the target to include 80 percent of its population into the financial cycle by the year 2020. Although it said the impediments to achieving this target is ascribed to economic constraints, insecurity issues in the northern part of Nigeria, obsolete strategies, among others.

As such, the apex bank adopted new strategies based on two major principles. Firstly, that regulations should be focused on the activity and not the actor; defining the eligibility to provide the financial service without closing off the sector from future innovation.

Secondly, that actors are to focus more on the activities they possess ‘comparative advantage’ in, to achieve the greatest impact. Given the complexity and volume of changes that need to happen, individual actors are to focus more on the activities that best suit their capacity whilst maintain an inclusive lens as much as possible.

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& INNOVATION Financial inclusion: Lessons from India Supported by:

Usoro Usoro

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ndia has the second largest population and the second largest number of unbanked individuals in the world. Over the past decade, the Indian government has sought to address the problem of exclusion through a number of initiatives – and on the surface, these have had the desired effect: the number of people with bank accounts grew from 35 percent in 2014 to 80 percent in 2017.

The renewed focus on financial inclusion in India began in 2005 when the Reserve Bank of India (RBI) emphasized its importance in its annual policy statement of 2005- 06.

In the statement, RBI urged banks to expand their services and strategies to accommodate efforts at enhancing financial inclusion; it had identified that access to finance for poor and disadvantaged people is a prerequisite for poverty alleviation and social prosperity.

In 2012, the Finance Ministry directed all banks to provide banking facilities in places with a population of over 2000 people, by using branchless banking.

The banks were further directed to allocate at least 25% of the total number of banks to be opened during the year in unbanked rural areas. This model proved problematic as banks due to the high cost of training agents and developing infrastructure.

Not unlike Nigeria, one of the barriers to inclusion in India was the onerous requirement for identification, and many citizens

inability to meet these requirements exempted them from being included.

Thus, the banks worked to simplify the process of opening bank accounts by reducing the requirements needed for identification.

The introduction of the Aadhar Card by the government – a social security identity, which contains a unique identification number, was used as proof of both identity and address, and can be used to access all social services.

Though the use of the Aadhar for banking was met with concerns around data security and privacy, under the scheme, the number of bank accounts grew by 240 million within the first few months.

The demonetisation of the two highest denominations of the India Rupees also led to an increased number of bank accounts and even more so, an increased usage of digital banking platforms such as ATMs, USSD codes and mobile wallets.

In 2014, during Prime Minister Narenda Modi’s tenure, the government introduced the Pradhan Mantri Jan-Dhan Yojana (PMJDY) Scheme, which was designed to expand access to financial services by providing no-frills bank accounts to individuals.

Some of the features of the account were interest on deposit, accidental insurance cover, life insurance, and overdraft facilities,

which acted as incentives to enhance the appeal and participation.

National Identity Numbers and a Direct Benefit Transfer system – which provides subsidies and benefits to citizens living below the poverty line – were also linked to bank accounts. In the first week of launch, 15 million bank accounts were opened.

Each of these schemes and initiatives has evidently helped to pull more excluded individuals into the system, but other factors have shown that the country may not necessarily have improved financial inclusion. According to the World Bank’s 2017 Global Findex Database report, between 2014 and 2017, about 48 per-

cent of these bank accounts in India have remained inactive, with no transaction made.

Payment Banking in India has presented a potential solution to this problem – with telecommunications, FMCG and retail organisations offering financial services to customers in the areas where they are located. In 2015, RBI issued licenses to Bharti Airtel, Vodafone India and nine other companies to establish payments banks.

Despite high adoption rates, this model has faced challenges in India of overcompetition, and the inability of payment banks to lend money has limited the extents to which it is able to driving inclusion and

enhance wealth building.

The Indian experience presents evidence of a viable solution for the problem of inclusion, and as Nigeria proceeds to adopt the PSB model, the limitations and challenges experienced must serve as lessons for our environment.

If effectively implemented, enabling these non-banking institutions to leverage all the resources at their disposal to provide financial services to the unbanked will no doubt bring us much closer to achieving – and potentially exceeding – our goal of 80 percent financial inclusion by 2020.

However, effective implementation also requires ensuring that PSBs are empowered to provide a full bouquet of financial services to customers, in order to truly include them.

Another lesson that India’s efforts and initiatives have illustrated is how social programs can potentially be leveraged.

Nigeria’s Conditional Cash Transfer initiative, which provides stipends to the poorest households, would encourage more people to open bank accounts if the government digitized the process.

The most critical driver for ensuring the success of our efforts will involve identifying existing opportunities that can be leveraged, taking advantages of available resources, and moreover, constantly monitoring the impact and effects of these efforts, in order to continuously re-strategise where necessary.

Usoro Usoro is the General Manager of Mobile Financial Services at MTN Nigeria.

PoS summit to deepen financial inclusion through SANEF Endurance Okafor

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n the quest to increase Nigeria’s financial inclusion rate, the fourth quarter edition of Point of Sales (PoS) Summit is designed to further boost the establishment of Shared Agent Network Expansion Facility (SANEF), which is powered by the Central Bank of Nigeria (CBN) and commercial banks.

The innovation summit, which is billed to hold in Lagos on 12th December,

2018 has the theme: ‘Pricing and Shared Agent Network Viability,’ with the focus to examine the dynamics of the SANEF program and its capability to accelerate the achievement of financial inclusion goals by 2020.

This was disclosed to BusinessDay recently by the organiser, Global Accelerex Limited, one of the leading Payment Terminal Service and Payment Solution Service providers in the country.

The Executive Director, Business Development and

COO of Global Accelerex, Kayode Ariyo, said, “to achieve the lofty ideals and objectives of SANEF, there

must be concerted effort towards promoting agent banking through the shared agent network approach.”

To achieve this he said it “requires the attention of relevant industry stakeholders who will convene, deliberate and educate participants at the summit.”

Meanwhile the SANEF project seeks to deepen financial inclusion through an integrated ecosystem with strong regulatory oversight, consumer protection and interoperable payment system with limited concentration risk.

The initiative involves on-boarding 40 million low income and unserved Ni-

gerians into the financial system, increasing financial access points from the current 50,000 to 500,000 by 2020 and deepening access to mobile and digital financial products and services such as savings accounts, micro loans, insurance and pensions.

Keynote speakers expected at the event include; Sam Okojere, Director, Payments System Management, Central Bank of Nigeria, Edwin Otieno, Head, Agent Banking, Kenya Commercial Bank, and others.

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LegalPerspectives

With

Wednesday 05 December 2018

Odunayo Oyasiji

The Nigerian legal framework for e-commerce (part 1) ADETOLA ADELEKE,

Lead Partner, Crowncourt Attorneys

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n an attempt to meet global standards for doing business, there has been an attempt by the legislature to enact laws for regulating e-commerce in Nigeria. The Evidence Act 2011 gives legal recognition to electronic documents and electronic signatures by making them admissible in evidence. Also, in a bid to make e-commerce safer, laws like the Economic and Financial Crimes Commission (EFCC) Act 2004, Money Laundering (Prohibition) Act 2011 (as amended), Advance Fee Fraud and Other Related Offences Act 2006, Nigeria Deposit Insurance Corporation (NDIC) Act 2006, Banks and other Financial Institutions (BOFIA) Act were promulgated.

The foregoing legislations had their obvious inadequacies as they were not promulgated specifically to address the mischief of cybercrime. When these inad-

equacies became glaring and the need for a specific one addressing cybercrime became compelling, the National Assembly recently enacted the Cybercrimes (Prohibition, Prevention etc.) Act (CA) 2015. The statutory objectives of the Act include the provision of an effective and unified legal, regulatory and institutional framework for the prohibition, prevention, detection, prosecution and punishment of cybercrimes in Nigeria, as well as the promotion of cyber security and protection of computer systems

and networks, electronic communications, data and computer programs, intellectual property and privacy rights.

Despite the various enactments passed to make electronic transactions safer, the specific legislations required to regulate e-commerce is still lacking, and a few legal challenges remain.

These will be considered in turn.

Data Protection Section 37 of the Constitution guarantees the right to privacy of citizens. This right extends to

The landlord and tenant relationship in Lagos State (part 3) ADETOLA ADELEKE,

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• Third, the landlord shall file an action in court, and may only proceed to recover possession in terms of the judgment of the court in the action. Upon the expiration of the time stated in the Statutory 7 days Notice, if the tenant neglects or refuses to quit and deliver up possession, the landlord may file a claim for the recovery of possession. The Lagos State Tenancy Law recognizes Alternative Dispute Resolution (ADR) mechanisms, apart from litigation, where there is an agreement between the parties to such effect.

Notice to Quit The object of notice to quit is to determine or terminate the tenancy so that possession may revert to the landlord.

Circumstances where Service of Notice to Quit is Unnecessary a) Tenancy for a fixed term: Where by the Tenancy Agreement, the agreement is for a fixed term and the term agreed has expired, no Notice to Quit shall

be required and the landlord who intends to re-acquire possession shall serve a 7 days Notice of intention to apply to court to recover possession. b) Notice to Licensee: Where a person is a licensee and upon the expiration (or withdrawal) of his license, he refuses or neglects to give up possession, he shall be entitled to service of a 7 days notice of owner’s intention to apply to court to recover possession. c) Notice required for abandoned premises: The law deems a premises abandoned where three (3) elements are present, that is the tenancy has expired; the tenant has not occupied the premises since the expiration of the tenancy and the tenant has not given up lawful possession. In such circumstances, the landlord is only required to issue the 7 days Notice of intention to apply to court to recover possession and proceed to actually apply for orders ‘for possession and to force open the premises.’

commerce-driven businesses in Nigeria shows that there is usually an attempt to whittle down the privacy rights of consumers on their platforms. In some privacy policies, the sellers/service providers often reserve rights to share personal information of consumers; use demographic and profile data of consumers; place permanent and temporary cookies in consumers’ computer hard drives; link consumers to other websites and absolve themselves from liability regardless of the privacy policies of those third-party websites etc. These are certainly unfair contractual terms and there is urgent need for legislative intervention.

In the UK, there is the Data Protection Act 1984 which harmonised earlier legislations, policies and directives meant to protect communication through the internet. Also, the Electronic Communications Privacy Act 1988 in the United States protects the personal information of its citizens.

LOCUS CLASSICUS Hyde V Wrench [1840] EWHC CH J90

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Lead Partner, Crowncourt Attorneys

Procedure for Recovery of Possession landlord who seeks to recover possession of land or premises from a tenant is mandatorily required to observe the provisions of the Recovery of Premises Law and not resort to self-help to forcibly evict the tenant. Where a landlord applies self-help instead of observing the due procedure, which includes court proceedings, he would be liable to pay damages in an action for trespass. Indeed, even a tenant who has defaulted in the payment of rent still has to be ejected by following the proper procedure, which necessitates service of the statutory notices – that is the notice to quit and of intention to apply for possession.

The procedure for recovery of possession has been established by the court, and involves the following three main stages, where there is a breach or nonobservance of any of the conditions or covenants in respect of the premises: • First, unless the tenancy has already expired, the Landlord shall determine the tenancy by service on the tenant an appropriate Notice to Quit.

• Second, the tenancy having been determined, the landlord shall serve the occupier with the statutory 7 days Notice of Intention to apply to the court to recover possession.

most private and sensitive data and information of citizens. In consummating e-commerce contracts, consumers are often required to provide their information, which may expose them to cyber-attacks. The threat posed by the information provided in these transactions was pronounced upon in R v Brown [1996] 1 All ER 545, 556 where it was held: “Vast amounts of information about everyone are stored on computers, capable of instant transmission anywhere in the world and accessible at the touch of a keyboard. The right to keep oneself to oneself, to tell other people that certain things are none of their business is under technological threat.”

Protection of data is presently not regulated in Nigeria. Besides the obvious exposure to risk, the lack of relevant laws and regulations is bound to discourage the utilization of available channels in aid of e-commerce. A look at the privacy policy of some e-

rinciple: This is an old English case that addresses the issue of counter offer in contract matters. A counter offer automatically translates to the refusal of the initial offer that was made.

Facts: An offer was sent from Wrench to Hyde for the sale of his farm in Luddenham at 1000 pounds. Hyde declined the offer.

On June 6 1840 Wrench wrote a letter to Hyde’s agent stating that he is offering the farm to Hyde for the last time for the sum of 1000 pounds and that he will not reduce the amount. Hyde wrote a letter to Wrench on June 8 offering the sum of 950 pounds for the farm. Wrench replied to the letter on June 27 communicating his refusal of the

amount to Hyde. Hyde decided on June 29 to buy the farm for the amount offered by Wrench i.e.

1000 pounds without getting any form of agreement or feedback from Wrench. Wrench did not sell the farm to him and on this basis he instituted an action against Wrench for breach of contract.

The court held that there was no valid contract for the sale of the property between the parties as the seller made an offer but the buyer refused the offer by making his own offer. If to say he accepted to pay the 1000 pounds without making another offer, then there would have been a contract in existence.

He cannot revive the initial offer by then accepting it after making his own offer.

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SHAPING PEOPLE INTO A TEAM

How a U.S. health care system uses 15-minute huddles to keep 23 hospitals aligned MARC HARRISON

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core challenge of management is ensuring that the organization’s priorities, strategies and metrics are consistently embraced and that any impediments are identified and addressed quickly. At Salt Lake City-based Intermountain Healthcare , this requires a constant regimented focus across our 23 hospitals, 170 clinics and 850,000-member health insurance plan. To achieve that, we have implemented a model of daily huddles on an extensive scale.

The model has parallels to the “teams of teams” approach in the agile method of operating. But the scale at Intermountain Healthcare, where more than 2,500 huddles occur every morning, makes it especially illuminating and instructive.

The 15-minute huddle is the key. It enables knowledge from activities throughout the organization in the previous 24 hours to escalate up to executive leadership — Tier VI in our model — and be addressed.

Each huddle has a leader; the participants are designated, as is the recorder of the data; the huddle is scheduled; and the categories of reported information are captured on a prepared chart. Four fundamentals of extraordinary care are covered: safety, quality, access and stewardship of resources. Across those fundamentals, eight key topics are reported every day. They include potential serious safety events that could have harmed a patient, caregiver injuries and reported downtimes (of equipment, elevators, systems or processes, for example).

The information that escalates up falls into two categories: Issues that cannot be resolved at a given tier, and metrics that are reported daily, such as “units at capacity.”

Information flowing back down includes follow-up reports on previous action items.

Every action that emerges, including those at Tier VI, is tracked,

and the outcome is communicated back through all tiers, so participants know what has transpired and understand the value of their input. After each Tier VI huddle, for instance, the recorder sends an email to the person who owns each action and follows up to ensure that resulting outcomes are communicated. An item is not removed from the action register until follow-up is completed and conveyed.

Beginning at 8:45 a.m., care teams and managers in our hospitals and clinics gather in more than 1,500 Tier I huddles. At 9, their reporting is considered in about 170 Tier II huddles, consisting primarily of directors of hospitals and clinics. By 9:15, the reports of those directors are considered in Tier III huddles by hospital administrators and geographical clinic groups.

Their findings and needs are, in turn, considered 15 minutes later in Tier IV huddles of affinity hospital groups such as trauma hospitals, rural hospitals, home care and the Medical Group. Their reports escalate further to Tier V, consisting of major organizational areas such as

all hospitals and community-based care. By 10 a.m., vital information has risen to the executive leadership, which includes the CEO and his direct reports plus other assigned functional executives.

The entire process is monitored

by Intermountain Healthcare’s Continuous Improvement Team, and the categories of information collected are reviewed quarterly. The Continuous Improvement Team consists of about 50 caregivers who are spread geographically across the system. Team members have varied experience, from industrial engineers to nurses and physicians, and a physician has responsibility for the team.

At every tier, needs that can be addressed at that level are resolved, while remaining ones, along with accumulating data, escalate up.

The process provides three key qualities — clarity, alignment and accountability — for patients and caregivers alike.

The reporting lets executive leadership know precisely what is happening and unlocks frontline wisdom. It ensures alignment of

goals, resources and people. It pushes out responsibility and accountability to the frontline and enables executive leadership to intervene to remove barriers and release resources. It connects to the organization’s overall strategy and performance goals.

Throughout the first year of operation of this model, which began in full in April 2017, the range and breadth of issues addressed was extensive. At the Tier VI level alone, 365 unique issues were tackled, resulting in 22 systemwide safety alerts to our caregivers, organizational awareness of 15 pharmaceutical and supply shortages, rapid communication for potential formulary alternatives when supplies become limited and better facilitation of patient transfers within the system.

We also recognized and closed gaps in training on new equipment, replacement parts, new products and instructional manuals, allowing the system to implement swift training for our caregivers.

An example of an important success of the escalation huddles is the ability to identify potential

c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate

exposures to infectious diseases and quickly move to prevent the spread of diseases like pertussis, hepatitis and chickenpox. Earlier this year, for instance, a communitywide outbreak of hepatitis B occurred. Our clinics reported the early development of the disease in huddles. That enabled Intermountain to prepare guidance for all clinics and ensure that staffing levels were appropriate and that increased dosages of needed drugs were on hand.

Here are some lessons we have learned about how to make the huddles approach work: FOCUS ON TRENDS AND CONTINUALLY ADD AND ADDRESS ISSUES BEING TRACKED: Every quarter we analyze what has escalated up and align it with key performance metrics. We often see significant quarterly differences — both because new needs arise and because previous efforts have improved metrics.

ACCOUNTABILITY IS VITAL TO THE EFFICIENCY OF THE PROCESS: Every action taken is tracked, a time frame assigned and the resulting resolution reported back through the tiers. That accountability demonstrates the value of the process to all participants. It reveals rapid results. It shows that executive leadership is engaged daily in responding to frontline needs.

THE ENTIRE PROCESS MUST BE TIED TO THE ORGANIZATION’S OVERALL STRATEGY AND PERFORMANCE GOALS: That’s why Intermountain Healthcare’s four fundamentals of extraordinary care and eight key topics are covered in every day’s huddles. The eight topics are then tracked constantly and tie back to specific organizational goals.

Continuous improvement is a constant quest. Escalation huddles offer enormous potential and striking results in that pursuit — both in health care and beyond.

Marc Harrison is president and CEO of Intermountain Healthcare.

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Tax Issues

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IGR: South-East States top laggards in H1’18 …as NBS data show 27.7% growth to N579.49bn Iheanyi Nwachukwu

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he National Bureau of Statistics (NBS) recently published Internally Generated Revenue (IGR) at State level for Half Year (H1) 2018 shows States and FCT IGR figure increased to N579.49billion compared to N453.83billion recorded in half year 2017. This indicates a growth of 27.7percent year on year (yoy).

Expectedly, given its position as the commercial hub of the country, Lagos State retained its number one spot, with an IGR of N196.4billion, up 16.9percent year-on-year and 3.2 times that of Rivers State’s N60.9billion - the 2nd largest State by IGR. Twenty-eight (28) States recorded growth in IGR while eight (8) States led by four South East States - Abia, Anambra, Ebonyi, and Enugu recorded decline at the end of 2018 Half Year. The four other states are Benue, Kebbi, Kwara, Taraba.

Details show that Abia State recorded half-year IGR of N6.977billion representing a decline of 12.29percent from N7.95billion in H1’ 2017. Anambra State reported H1 revenue decline of 21.62percent to N7.06billion from N9.017billion

Willie Obiano, governor, Anambra State

Okezie Ikpeazu, governor, Abia State

Ifeanyi Ugwuanyi, governor, Enugu State

in H1’17.

Ebonyi State reported 21.79percent decline in H1’18 IGR to N2.4billion from N3.1billion in H1’17; while at N12.29billion in H1’18, Enugu State

IGR declined by 0.88percent from N12.40billion in H1’17.

Benue State IGR in H1’18 was down by 18.86percent to N6.06billion from N7.47billion in H1’17. Kebbi State IGR

was down by 10.85percent in H1’18 to N2.03billion from N2.28billion in H1’17; Kwara State IGR declined by 5.93percent in the same period under review to N10.04billion from N10.67billion in

H1’17; Taraba State reported 12.48percent decline in H1’18 IGR to N2.61billion from N2.98billion reported in H1’17.

NBS noted that the net FAAC allocation in half year 2018 stood at N1.23 trillion while the total revenue available to the States was N1.74 trillion. However, the value of foreign debt stands at $4.22billion while domestic debt hits N3.38 trillion at the end of 2018 half year respectively.

“The continued underwhelming performance of other States remains worrisome. Thus, the need to expand the revenue base across States is apparent as this will reduce dependence on FAAC inflows, which is largely exposed to the vagaries of the oil market - and limit future fiscal crisis. In addition, this would boost the credit ratings of States and enhance their ability to finance developmental projects”, said research analysts at Lagos-based United said in their November 28 insight titled “State of States IGR in H1-18: Creating more ‘Lagos’ across Nigeria.”

For the analysts, to create more “Lagos States” across the country, there is a need for a concerted effort to develop the formal sector in the rest of the country.

“Put differently, tax authorities in other States may need to find creative ways to boost revenue from the informal sector going forward”, according to United Capital analysts.

Tax steps into the light: rapid changes in tax controversy

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s demands increase for tax transparency, the business of tax is undergoing a fundamental shift. In this article by Rob Hanson, EY Global Tax Controversy Leader, he explores six steps to manage the risk.

Enhanced transparency measures and new reporting requirements, many brought about by base erosion and profit shifting (BEPS), have had profound implications for businesses’ tax compliance and reporting functions, audits and controversies, and reputational risk. This in turn has increased the need for companies to develop a cohesive approach to tax risk and controversy management.

The task of managing tax risk and controversies is more difficult than ever.

At the same time, tax administrations are harnessing the power of digitalization to make better use of limited resources and extract more value from the information they receive.

Tax authorities are increasingly relying on digital methods to collect taxpayer data, and they are using data analytics to mine this data to help them boost tax collections, target compliance initiatives and improve overall efficiency.

Tax authorities are making strategic use of data analytics to make compliance and audit determinations and are increasingly sharing this data with tax authorities in other jurisdictions. This exposes businesses to more risk if their people, processes and systems are dated or out of sync with government requirements and expectations.

And just as companies are adjusting to the rapid changes to tax policy and enforcement brought by BEPS and the digital revolution, a wave of political uncertainty has added a new wrinkle to the tax risk environment. These “unknowns” have prompted many businesses to analyze the potential impact these events could have on their tax strategy and business operations.

US Supreme Court Justice Louis Brandeis famously called sunlight the

greatest disinfectant. But sunlight can also harm those who aren’t prepared to face the intensity of the sun’s rays. Our 2017 Tax Risk and Controversy Survey series indicates businesses around the world are currently regarding the compliance environment as a prism through which they interpret demands for greater transparency.

The sunlight is being dispersed into a spectrum of red, orange, yellow, green, blue, indigo and violet. Each color deserves its own contemplation.

And those who step into the light should consider the risks and take the necessary precautions before stepping into this new (and hostile) environment.

Six steps to take to manage tax controversy In analysing our survey results, we identified six areas where organizations can focus to adapt to this changing environment.

Adopt a strategic approach to tax risk management The survey shows long-anticipated drivers of tax risk have become a reality, so it’s important that businesses be prepared to confront whatever form it takes, from responding to aggressive audits or challenges to transfer pricing arrangements, to managing tax-related reputational concerns, or examining existing business and cross-border structures.

An integrated, holistic, global and end-to-end approach can help businesses stop controversy before it occurs through the use of top-down governance, systems and processes that enhance monitoring and compliance. This approach also helps businesses track for visibility, oversight and risk assessment so they can better manage controversies that do occur.

And choosing the most appropriate dispute resolution mechanism — whether it’s exam management, appeals management, arbitration or litigation — allows for faster resolution so businesses can resume focus on their

core mission.

Be proactive in managing tax and reputational risk To cope with BEPS-driven enhanced reporting and disclosure requirements and greater audit scrutiny, ensure your tax department has adequate knowledge, staffing, budget and other necessary resources to meet the new demands on the tax function. Assess reputation risks that may arise and ensure the board and C-suite stakeholders fully understand that their company’s tax profile is both a financial and reputational issue.

Develop, with the board’s advice and consent, a clear policy explaining the company’s approach to tax planning. In developing this policy, keep in mind that the board, CEO and company representatives must be comfortable with making the policy available publicly and, if necessary, be prepared to defend it.

At the same time, decide how transparent your business wants to be in terms of disclosing the amount of taxes you pay in the countries where you do business; once a decision is made, develop a plan for communicating it to external stakeholders and tax authorities in a consistent way.

Adopt a global approach to managing tax controversy In a world of increased information sharing among tax authorities, aggressive tax enforcement and associated reputational risks, maintaining a global perspective on all the jurisdictions in which your business operates is critical.

Implementing a globally coordinated approach enhances your ability to manage and prioritize risk and could help mitigate the impact of controversy.

Creating a global tax audit management framework, a global compliance platform and a tax controversy management reporting framework and making use of pre-filing tools and economic modeling can bring clarity, confidence and more certainty. A global

approach can deliver benefits across the enterprise: a reduced audit risk, greater control over audits involving sensitive issues, a proactive management of tax controversy and increased knowledgesharing.

Close the digital tax administration readiness gap With many governments requiring near real-time reporting and performing increasingly sophisticated data analytics, tax authorities are gaining global visibility. Businesses need to enhance their digital capabilities so they can meet the demands of this new world of digital tax administration.

Putting in place a new digital operating model is an essential step. This means that businesses need to ensure they understand tax authority data requirements, can format source data for local country requirements and have the appropriate tools to prepare digital tax submissions.

Businesses should also perform analytics on data before filing and put in place a process for archiving digital files for audit purposes.

Businesses should consider developing a real-time compilation of data for audit defense and other potential controversy, as well as a regional or global tax portal to monitor and track audits and collections.

Use alternative dispute resolution (ADR) mechanisms strategically Evaluate the various pre-filing tools (advance pricing agreements, pre-filing agreements, cooperative compliance agreements) to determine if any might be an appropriate method for your company to reduce future risks and controversies, taking into account the costs and benefits such tools entail. Work to build better relationships with tax authorities (a good working relationship with the tax authority is a critical success factor for any ADR processes).

Also evaluate the pros and cons of dispute resolution mechanisms that are available if disputes cannot be avoided —

including appeals, litigation, mediation, arbitration and the mutual agreement procedure (MAP). As cross-border tax disputes with tax authorities increase, consider accessing MAP sooner to resolve potential tax disputes. Develop a consistent philosophy of controversy: under what circumstances will disputes be resolved, litigated or otherwise handled?

Get the most out of your people, processes and technology Establish clear frameworks for tax internal control, controversy management, digital tax administration and communications. If some tax matters aren’t directly managed by the tax function, be sure there is good coordination between the tax function and the business unit(s) handling those tax matters.

Ensure your tax function has clear audit management processes and the appropriate technology and software tools to monitor your company’s global tax compliance and reporting obligations and can respond quickly to tax authority demands for data (in particular, new digital data requirements).

Ensure that your documentation processes are BEPS-compliant and meet the specific country tax schema. Provide periodic briefings and management dashboards regarding the company’s tax risks and controversies to the CEO and board, as well as other business units (as appropriate).

The future of tax reporting and transparency With the greater demands for transparency emerging as a key driver of risk, the business of tax is undergoing a fundamental global shift. Earlier, we wrote that tax compliance is the prism through which more transparency — or sunlight, to use Justice Brandeis’ metaphor — is viewed. Depending on the angle with which businesses view the prism, the transparency’s light bends and refracts; the optical density shifts. This series strives to help all stakeholders view the rainbow in all its splendor.

Wednesday 05 December 2018

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Business outlook brightens ahead Christmas...

Continued from page 1

industrial (7.8 points), wholesale/

retail trade (2.6 points) and construction (0.5 points) sectors, whereas the drivers of the optimism for next month were services (37.0 points), industrial (19.2 points), wholesale/ retail trade (6.6 points) and construction (2.8 points) sectors.

The positive outlook by type of business in November 2018 was driven by businesses that are neither import- nor export-oriented (18.9 points), import-oriented (4.5 points), both import- and export-oriented (1.8 points) and those that are exportrelated (0.7 points).

However, the surveyed firms identified insufficient power supply (64.7 points), high interest rate (57.9 points), unfavourable economic climate (55.1 points), financial problems (51.2 points), unclear economic laws (51.0 points), unfavourable political climate

(48.6 points), access to credit (41.3 points) and insufficient demand (41.2 points)asthemajorfactorsconstraining business activity in the current month.

“In light of the current developments in both the global and domestic economies, and based on extensive simulations, the CBN is of the view that the short-term outlook of the Nigerian economy remains good,” Godwin Emefiele, governor of the CBN said.

In terms of inflation rate, respondent firms expect inflation rate to rise in both the current and next months, with confidence indices of 7.0 and 3.4 points for the current and next months, respectively.

Similarly, respondent firms expect borrowing rates to rise in both the current month and next month as the confidence indices stood at 5.8 and 2.2 points, respectively.

The CBN projects inflation rate to

rise slightly to about 11.4 percent the rest of 2018 and towards mid-2019 and then moderate thereafter.

Meanwhile, Nigeria’s manufacturing sector sustained growth as the Purchasing Managers’ Index (PMI) in November.

“The headline PMI reading rose from 56.5 to 58.9 in November. This is the second highest reading recorded this year. We attribute this increase to a pick-up in demand on the back of the forthcoming end-year festivities.

All five sub-indices rose considerably.

A particularly sharp increase was recorded in the output sub-index,” FBN Quest analysts led by Gregory Kronsten said in a December 3 note.

A PMI is a simple exercise. A selection of companies are asked their view each month on core variables in their business. The respondent, who is characteristically the purchasing manager in a larger firm, has three possible replies: better, unchanged or worse than the previous month. Accord-

L-R: Shaibu Musa, chairman, executive committee, Nigerian Business Coalition Against AIDS (NiBUCAA); Hadiza Bala Usman, managing director, Nigerian Ports Authority, and Nicolas Terraz, NiBUCAA cochair, during the AIDS Sensitisation Walk organised by NiBUCAA to commemorate 2018 World AIDS Day in Lagos.

Geometric to commence power supply...

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operation will be the sourcing of the funds to pay Enugu Electricity

Distribution Company because of the Ring fencing issue.

The landmark agreement is the first executed agreement for the power sector in Nigeria by the IOCs and the NNPC joint venture.

Prior to this, two other gas supply agreement signed so far by the NNPC joint venture companies were for liquefied natural gas (LNG) and fertilizer projects.

“We understand that this is the third commercial GSAA being signed by the JV partners. One was for LNG, and the other was for fertilizer. This is the first one for power in Nigeria.

We had signed a Gas Supply Agreement for the Aba IPP in 2009, but because of the delays caused the “erroneous” sale of the Aba Ring-fence, the agreement lapsed and had to be renegotiated anew; especially with the establishment of the Gas Aggregation Company of Nigeria (GACN) which now issues Gas Purchase Order to gas off-takers in Nigeria. Although it has taken six years to negotiate this present agreement, we are delighted that all the parties have successfully concluded”, said Nnaji, Chairman, Geometric Power and former Minister of Power.

“This GSAA is possible because of the structure of the project where the JV partnerscanseethattheprojectisbankable and will be able pay for the gas they willsupplyatcommercialpricereliably.

We are confident that the structure will serve as a model for other gas to power projects in Nigeria since the various stakeholders can see how they will be able to recoup

their investment in their projects.

Furthermore, this structure will incentivise the gas suppliers to invest in gas production for the domestic market,” Nnaji added.

The former minister of power said that “the project is a model of how the entire power value chain can be incentivised.

The 141MW power plant (to be scaled to 188MW) is embedded in a ring-fenced electricity district of Aba comprising of 9 out of 17 Local Government Areas of Abia State and within over 4000 sq kilometres.

The project has its own gas pipeline of 27 kilometers.

Its electric distribution ring fence includes 7 substations of 2x15MVA each; hundreds of kilometres of overhead lines at 33Kv and 11KV networks along with other low voltage lines. This first class electric distribution infrastructure is intended to deliver guaranteed reliable supply of electricity to industries, commercial ventures and residential homes in the Aba metropolis”.

It will be recalled that on May 11, 2004, the Federal Government, the now defunct National Electric Power Authority (NEPA) and Geometric Power Limited (GPL) entered into and executed a Memorandum of Understanding (MOU) under which GPL was granted the exclusive right to construct a 3 x 35 MW open cycle gas turbine power plant and designated sub-stations in Aba, Abia State, which would generate electric power for distribution by Aba Power Limited (APL) to residential and commercial customers and to industrial clusters in a ring-fenced island in Aba. The government, NEPA and Aba Power Limited (APL) executed a

lease agreement on April 28, 2005 for the distribution of power to the ringfenced residential and commercial consumers in Aba. By the terms of the agreement, NEPA assigned its right to distribute electric power in the ring-fenced area of Owerri-nta, Osisisoma, Ogbor Hill, Factory road and Port Harcourt road in Aba and also leased its distribution facilities within the contract area.

A supplementary agreement was made on August 31, 2006 between the Federal Government represented by the minister of power and steel, Transmission Company of Nigeria (TCN) and Enugu Distribution Company (EDC) and Geometric Power Limited.

EDC and TCN were substituted for NEPA as parties to the lease agreement of 2005 and assumed their respective obligations.

Unfortunately, during the privatization exercise by the Bureau for Public Enterprises (BPE), in what was described as “administrative error”, the Bureau did not take into consideration the pre-existing agreements on Aba ring-fence and thus, did not excise it from Enugu DISCO. The $500 million Geometric/ Aba Power Plant has capacity to produce and distribute about 141 megawatts (MW) of electricity in its first phase, with new distribution lines, four new sub-stations and three rehabilitated sub-stations. Each plant is to produce 47 MW of power, supported by a 60 MVA per transformer. The power plant is to be powered by gas from Shell company flow station at Owaza in Ukwa West Local Government Area of Abia State.

The company has also laid a pipeline spanning 27 kilometres from the flow station to the power plant at Osisioma.

ing to the standard methodology, 50 marks a neutral reading and anything higher suggests that the manufacturing economy is expanding.

In Q4 there is generally a short-lived boost in demand due to preparations for end-year activities. We also note that the resumption of the dry season has had a positive effect on the headline reading as weather conditions cease to weigh heavy on logistics.

Manufacturers continue to struggle with access to affordable credit as banks maintain a cautious approach

Wednesday 05 December 2018

towards lending to the private sector, to avoid growing non-performing loans. According to the National Bureau of Statistics (NBS), nonperforming loans as at Q3 2018 stood at N2.2trn, which accounts for about 14 percent of total loans. Data from the same source show that in Q3 2018 loans extended by banks to the private sector rose by 2 percent to N15.6trn. The second largest recipient of loans was the manufacturing sector, which accounted for 13.8 percent of the total.

Oshiomhole, governors, senators shun...

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APC came into office only $30 billion was left into Nigeria’s external reserve after all the earnings of the PDP government but the country now has $44 billion in the foreign reserve despite the drop in earnings and called on Nigerians to re-elect the President Buhari led APC government for better economic development.

“When we came into office over 22 States were owing between 3 to 6 months salaries. The President insisted we must support the States to pay. Oil was down to 30 dollars a barrel we are earning 60 percent less than the previous government yet in the past three years we have spent N2.7 trillion on infrastructure the highest in the history of the country .

“So today we are doing major roads in 36 states, Lagos Kano Railway , Warri - Aladja , Mambilla , Port Harcourt - Maiduguri...We are feeding 9.2 million Children every day ,we are giving 2 million petty traders a better deal in life with tradermoni, we have now employed 50,000 graduates under the NPower programme, we are giving at least 400,000 of the poorest Nigerians 5000 a month. How because Buhari is the gate keeper he has stopped grand corruption. So despite the fact that we are earning 60% less we are doing 5 times more.

“Come February 2019 the APC will by the grace of God win the general elections . We will return President Mohammadu Buhari as

President of the Federal Republic of Nigeria for a second term. The election will be a historic one .It is a battle between those who want our country’s resources to be used for our country and her people, and those who want to privatize the commonwealth,” Osibanjo stated.

In a Key note address, APC National Leader, Bola Tinubu urged Buhari support groups to remind Nigerians of the ills perpetrated by PDP during the 16 years it was in power, plunging the country into unfortunate economic and social woes until APC took over in 2015 and the party and her candidates should be rejected in the 2019 general elections.

“We have sacrificed too much, under the destruction of their trade mark, peoples destruction party, PDP, we cannot go back forward ever, back ward never. People must ask you why do you belong to this support group. Tell them you are a very committed members of a rescue mission that started in 2015 and remember how things were.

“Our people remind them, what happened. A nation without history doesn’t exists. They are now complaining! For God sake, they were there for 16 years do they add one litre not one barrel of capacity to the refinery in Nigeria. If that’s the only thing they did. They didn’t even pay counterpart funding for our rail, electricity and we cannot industrialize a nation without those power source,” Tinubu said.

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economist at Macroafricaintel said.

Raji said past French governments were not able to implement as much reforms as were needed; it is to Macron’s credit that he has managed to get this far.

“Still, it has come at a cost; as now, his popularity has waned,” Raji told BusinessDay. Ayo Akinwumi, head of research at FSDH said the primary duty of government anywhere in the world is to ensure they use the instrument of the law or the power of the law to improve the wellbeing of the people however the way they communicate that is very important for the people to buy into it.

“They probably didn’t engage the affected people well enough to get their buy-in which is why they protested,” Akinwummi told BusinessDay. The decision marked the first time that Macron has backed down from implementing an unpopular policy in his 18-month presidency as a result of the furious public response, and is set to unleash even more protests as the emboldened French people now realize that taking to the streets will results in success.

Not surprisingly, Saudi Arabian Energy, Minister Khalid Al-Falih attacked France’s attempt to raise taxes on fuel and warned other governments of the risks to making fuel more expensive. It is in the interest of Saudi, like Nigeria, for crude oil to remain the main energy source cars.

“What’s happening in France and in many European countries are governments unreasonably taxing energy to basically subsidize other policies they have,” said Al-Falih in an interview at the United Nations climate talks in Poland.

It is not surprising for Saudi Arabia, the world’s largest oil exporter, to directly condemn the oil policies of consuming nations and the comments run against efforts to reduce global demand for fossil fuels to mitigate the impact of global warming.

But there’s more to it than diesel prices, of course: Many of those sympathetic to the yellow vest movement say that the poorest citizens are being forced by the government to carry the greatest burden of the fuel tax.

The argument is that those least able to afford to do so are carrying most of the weight of the government’s antipollution agenda, as was the case with the recent ban on older cars that was viewed as discriminating against the city’s poorest residents.

French authorities have indicated that fringe groups had infiltrated the protests and were responsible for some of the worst clashes with police, which saw liberal use of tear gas and water cannons all through the center of Paris.

It is difficult to predict where this wave of protests will take the country, but there are plenty of issues that are fuelling this movement beyond the tax on diesel.

•Continues online at www.businessdayonline.com

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Staff shut down National Assembly over poor condition of service OWEDE AGBAJILEKE, Abuja

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ational Assembly staff under the aegis of Parliamentary Staff Association of Nigeria (PASAN) on Tuesday shut down the National Assembly over poor condition of service. They are protesting over unpaid salaries, allowances and promotion arrears.

The staff, who barricaded the National Assembly lobby, prevented lawmakers from entering the two legislative chambers.

They carried placards of various inscriptions some of which read: ‘Pass our Condition of Service, Senate President, Speaker,’ ‘Conless is not tied to 2018 budget’, ‘Bank loans are killing’, ‘Stop Omolori now before he stops Nigeria democracy,’ ‘19 years bondage on salary arrears,’ among

others. The staff also carried a mock mace, chanting solidarity songs.

They called on the Clerk to the National Assembly, Mohammed Sani-Omolori, whose terminal leave ought to have commenced since November, to immediately quit the service.

The workers at the weekend had issued a communiqué after its meeting at the weekend and gave the National Assembly management a two-week ultimatum to pay all backlog of salaries and allowances or face industrial action.

According to the Association, it would picket the National Assembly as well as the National Assembly Service Commission from Tuesday, December 4 to 6, to press home their demands.

They threatened to commence an indefinite strike from December 14, if the

National Assembly management failed to meet their demands.

Tuesday’s protest led to the inability of lawmakers from both chambers of the National Assembly to sit.

Saraki, who later addressed the aggrieved workers, said the political leadership of the National Assembly would meet with management to resolve the issue.

Saraki, who addressed the workers with the speaker of the House of Representatives, Yakubu Dogara, said: “On the CONLESS, which was brought before us, let me assure you that we are on the same page to ensure the implementation.

“At the leadership of the Senate, we don’t have the possibility to know if the money will be paid now.

What I am committing to you is to send for the Clerk to the National Assembly and management that we

must find money immediately to ensure implementation of CONLESS. Why I cannot say when now is because that responsibility of where those funds are, are not known to me.

“Number two, we have agreed that if you allow us, the report on the condition of service should be considered immediately on the issue of condition of service. We are waiting for management to sit with us. If we can meet with Management today, we will be able to communicate with you and say exactly. But for that to happen, allow us to meet with management.

And let us then tell then tell us in the interim where they can get money and pay you immediately”.

The Senate president’s explanation did not go down well with the aggrieved staff who booed him, chanting: “No alert, no sitting.”

L: R : Managing/CEO, Fidelity Bank plc, Nnamdi Okonkwo; chairman, Forte Oil plc, Femi Otedola; chairman, UBA Group/Heirs Holdings, Tony Elumelu; president, Dangote Group, Aliko Dangote, at Fidelity Bank’s end of year party with the theme, ‘Doing Good’, in Lagos at the weekend.

Applications for TEF Entrepreneurship programme 2019 open January 1 on TEFConnect

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he Tony Elumelu Foundation (TEF) will open the fifth Entrepreneurship Programme application cycle on January 1, 2019. Applications will be hosted on the largest digital networking platform for African entrepreneurs, TEFConnect - www.tefconnect.com On January 1, 2019, at 12am, WAT, the Tony Elumelu Foundation will begin accepting applications for the fifth cycle of its Entrepreneurship Programme. 1,000 selected applicants will join the current 4,470 beneficiaries of the Programme.

Since 2015, the TEF Entrepreneurship Programme – the only Africanfunded entrepreneurial catalyst of its kind – has empowered 4,470 African entrepreneurs, with seed capital of $5,000 each;

twelve weeks of accelerated online business training; access to experienced mentors; and membership of Africa’s largest entrepreneurial ecosystem.

Beneficiaries of the programme have been profiled in global media, including the Forbes [Africa] 30 Under 30 list.

They have attracted the attention of investors, as well as have been recipients of awards, including the Google Impact Challenge and the Chivas’ “The Venture” Award for Social Entrepreneurs.

The Entrepreneurship Programme has facilitated exchanges between African entrepreneurs and local and global public sector leaders, investors and development partners, raising their business profiles, scaling their opportunities,

showcasing their innovation and identifying ways to further strengthen the business environment in Africa.

In June 2018, the Foundation convened a forum with President Emmanuel Macron of France and young African entrepreneurs. In October 2018, the Foundation was proud to have President Nana Akufo-Addo of Ghana and President Uhuru Kenyatta of Kenya address the gathering of young African entrepreneurs at the TEF Entrepreneurship Forum.

The Foundation’s investment, impact and commitment to advancing entrepreneurship is predicated on the belief that Africa’s entrepreneurs hold the key to unlocking the potential of the continent and facilitating the transformation of Africa.

CHANGE OF NAME

I, formerly known and addressed as Ojo, Felix now wish to be known and addressed as Ojo, Ayoola Felix. All former documents remain valid. General public please take note.

CHANGE OF NAME

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PMB & AA: How to create 1 million Jobs Continued from back page parties and candidates will fiercely use the postal service to win votes and expectedly provide millions of letters to NIPOST. There are other ways to generate supply of letters for NIPOST but the idea is to have about 10 million letters delivered to different addresses every day in Nigeria. This should be the minimal target for the current or potential CEO (Post Master General) of NIPOST. It should be remembered if it is managed efficiently and robustly marketed to the Nigerian public, festivals like Christmas, New Year, Valentine, Democracy Day and other celebrated days and events will lead to further generation of letters for NIPOST. To ensure sustainable efficient management and profitability, NIPOST should be partly privatised after about 5 years of this restructured operation.

NIPOST will be required and given a 6 months target to create at least 50 million postal addresses with post codes.

An idea will be for about 1 million postal addresses with post codes to be created from each state of the federation and FCT. This will give about 37 million addresses while the balance of 13 million shared among the big cities like Lagos, Kano, Abuja, Port Harcourt, Onitsha and Ibadan.

While I appreciate the difficulties of effectively engaging about 250,000 employees in this sector, I am confident that it is very possible through the efficient management of further services that can be created from the demand and supply of letters.

For the collection, sorting and delivering of the letters, the idea will be to use a labour intensive management approach with limited machines. This will ensure the engagement of many of the 250,000 employees.

In addition to the collection, sorting and delivering of letters, other services that can be provided include storage and safe-keeping services, haulage and distribution (including import and export) of light and heavy goods. Another very interesting area will be

CHANGE OF NAME

I, formerly known and addressed as Miss Nnenna Ada Ukoha now wish to be known and addressed as Mrs. Nnenna Ada Nwaosueke. All former documents remain valid. General public please take note.

CONFIRMATION OF NAME

the provision of financial services and products especially to the poor and rural dwellers.

As the postal service will reach every part of Nigeria (especially rural areas), provision of financial services through it will be an excellent way to promote financial inclusion and sustainable economic development.

Further, with a target to daily deliver about 10million letters, firms that can produce envelopes, stamps, rubber bands, jute bags, plastic boxes, delivery bags, uniforms and other ancillary products will emerge. This can be left for the private firms to produce but with a ban on the importation of the above products to support the local industries.

The implication is that it will result in the emergence of firms that can produce about 300million first class stamps and envelopes every month for instance. I am confident that having firms with the capability and capacity to produce over 300million stamps and envelopes every month for instance in addition to the jute bags, rubber bands, plastic boxes, delivery bags and other complementary products will generate over 50,000 jobs. It should be remembered that all the employees will have to wear uniformed shoes and clothes, take transport, get accommodation and consume food and other services. All these will generate further employment.

The advancements in Information Technology will immensely help the opportunity and generate more letters and packages for the postal service. Provided it is efficiently managed, different kind of businesses will emerge such as foreign and local online shopping and deliveries, movement of goods (without movement of people) within and outside Nigeria.

All the big courier companies in Nigeria are relishing the sudden jump in their revenues and business due to the emergence of Technology driven businesses like Jumia and Konga. United Parcel Service (UPS) with an annual revenue of $54.1 billion delivers about 15 million documents and packages every day and employs about 397, 100 people.

CHANGE OF NAME

I, formerly known and addressed as Balogun Lamina Muhammed now wish to be known and addressed as Balogun Lamina Momodu. All former documents remain valid. General public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Uju Felicity Ikedionu now wish to be known and addressed as Mrs. Uju Felicity Ikedionu Obichukwu. All former documents remain valid.

General public please take note.

This is to notify the general public that Alagunju Saheed B, Omokanye Saheed, Omokanye Saheed Babatund and Omokanye Saheed Babatunde but now wish to be known and addressed as Omokanye Saheed Babatunde.

All former documents remain valid.

General public should take note.

I, formerly known and addressed as Abikoye Johnson Alani now wish to be known and addressed as Abikoye Johnson Adekanmi. All former documents remain valid. General public please take note.

CONFIRMATION OF NAME This is to notify the general public that Abdulahi Memunat Iyabo and Abdulmunir Memunat Iyabo refers to one and same person, but now wish to be known and addressed as Abdulmunir Memunat Iyabo. All former documents remain valid.

General public should take note.

I, formerly known and addressed as Ayoola Bamidele Sunday now wish to be known and addressed as Oyewumi Surajudeen. All former documents remain valid. General public please take note.

CHANGE OF NAME

CORRECTION OF NAME This is to notify the general public that my name was wrongly written as Ojedokun Ayoola Olasunbo during BVN registeration instead of my correct name Ojedokun Abiola Olasunbo. All former documents remain valid.

General public should take note.

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‘Corruption can be battled by building the fight on the altar of the Rule of Law’ Activities are lined up for the induction and annual general meeting of the Compliance Institute, Nigeria. In this interview, President/Chairman of Board, FCIN, PATTISON BOLEIGHA shares with KEMI AJUMOBI on achievements of the organisation, projections and advice to the federal government among other matters arising. Excerpt.

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hat miles t o n e has CIN achieved so far?

The compliance institute has come a long way, even though we’ve just spent two years in operation. I think our major milestone and achievement is the fact that within a short period of time we’ve been able to certify one thousand, two hundred (1, 200) members as compliant professionals, grounded in the practice of compliance, haven taken the rigorous compliance institute exams. We have a very viable website with a lot of resources, and we are highly digital with the way we operate, so we don’t need to wait till we have a large paraphernalia of office. We encourage members to interact with the institute on the digital platforms instead of with physical offices. That for us is another achievement.

We will be opening our new office during the course of our programmes, that again is another success. We have been able to pull in international compliance bodies like the Association of Certified Anti Money Laundering Specialists (ACAMS) in Florida. We are going into an agreement with them that will significantly help to bring a lot of Nigerians who hitherto have been having difficulty in taking this exam to now take this exam at reduced prices and at their own convenience, which also is another major milestone we have achieved within a short time.

How do you aim to genuinely help stem the spread of corruption?

Frankly speaking, because we are a non-profit organisation, and because we are core professionals from our various backgrounds (those who are leading this effort), so there is typically no strings attached in the way and manner we are going to contribute to the fight against corruption. Now, how we are going to contribute our quota?

First, you find out that there is a major gap in knowledge of how to implement a compliant programme that will drive the need for taking ownership for compliance, and creating a compliance culture. That technical expertise in getting that done is what this institute is going to provide.

So we have created these

Aisha Dahir-Umar

Pattison Boleigha

programmes; designated compliance professionals, the associate compliance institute, and then we are going to be having a diploma in customer due diligence which we know is one of the central topics in compliance, because the first thing you need to do if you want to comply appropriately, is you should be able to carry out proper due diligence with anybody you are dealing with. We are coming up with webinars to make them easily accessible; we can create apps for them so that anybody can learn anything on compliance and how to comply. Then we will also form little compliance clubs in schools, (secondary to tertiary) so that people can learn about compliance at early stages of their lives, we’ll be doing a lot of advocacy, and seminars every year where experts from all over the world will be invited to speak on diverse topics.

Looking at the way the FG is tackling corruption, what do you advise needs to be done more and better?

If you want to transform an existing situation, the first thing is to identify the area of dissatisfaction. So what is it that we are not doing well? Then, with strong motivation, you can move it to the next level. I think the area we have not gotten it right is that we must do everything we want to do in fighting corruption under the rule of law, because that is

the surest and most sustainable way of fighting corruption, and convince the ordinary man on the street that even he, himself, is sure of having a fair treatment, and that it is not only when you are a big man you can get justice.

So we need to build it on the altar of Rule of Law. How do you intend to contribute, as an organisation, to help eradicate corruption?

Currently today, what I see happening in the fight against corruption is that it is more of a deterrent approach, in other words, let’s do something to deter people from going into corruption. So we will punish a couple of persons and others will see and not go into corruption.

I like to fault that methodology.

The solution to corruption is to ensure that you remove the opportunity for people to get into it. There are three things that will be present for wrong doings to happen: The opportunity, the rationalization, the motive. Of these three things, you can only control one, which is the opportunity. Corruption happens in Nigeria because we have not addressed the opportunities that have been created for people to go into corruption. We need to put controls, and that is one thing that compliance preaches.

The three things that compliance preaches, is regulatory watch and intelligence, embedding controls in the system, and then

empowering the first line of defence to take ownership of compliance. These are the three things that compliance wants to achieve. So, of the three things that can lead you into corruption or fraud, the opportunities can only be controlled when you put in controls in place, and embed the controls in the system. That is not happening today. People still have access to government money. Why do you think corruption is not that rife in the private sector?

It’s because of the controls. The government need to pay a lot more emphasis on developing controls within the administrative system of government to prevent people from having access to free money. For example, you have security votes, that you don’t even need to retire.

What does that mean? It means there will be no accountability.

So if you are not supposed to retire a security vote, you take it and spend it the way you like.

There is no control. The security votes itself has created an opportunity. So as long as we are not ready to bring policy that will reduce and control the opportunities, corruption will not go away. That is going to be the approach for the compliance institute: Identify control gaps, get control measures and put the control in the system so that people don’t even have the opportunity to get to the money in first place. That way, you can reduce significantly the amount of corruption that will take place.

Does Standards Organisation of Nigeria (SON) limit your ability to exercise authority on matters of compliance since you work in partnership with them?

We are not law enforcement; SON is law enforcement because they have laws backing them to be able to penalize people. We are privately run and we are actually seeking for a Charter. But even then, we will have what is called soft-law standards that are not mandatory. They are just guides as to how we should run our affairs.

For example, the controls I just talked about. So we will come up with standard operating procedures for the various aspects of the industry, like telecoms, oil and gas, banking, and so on, to say, these are the minimum standards you can put in place

to ensure that you can maintain a good compliance culture, but you cannot enforce it, you can only advise, and provide them with tools to enable them get their work done in a more compliant way.

Challenges in carrying out your operations?

The number one challenge is the issue of governance, the tone at the top. Irrespective of what measures you put in place to ensure and engender a good compliance culture, if the tone at the top does not support it, you cannot implement any compliance programme. That is a major challenge. So every compliance programme must be supported by good governance that will give it all the resources that the compliance people need to drive compliance within the organisation.

The second issue is, we want to see a situation where the compliance function will be very independent. Today we have compliance officers who have been appointed to run a compliance programme within an organisation, but are subject to being hired and fired by the MD or by the board easily. So there is really no independence as such. You can only bark, but you can’t bite. These are the major challenges. The compliance officers too are human beings, and a typical compliance officer will also think of how to feed his family. So if he knows that his job is not secured, he cannot take certain measures.

As such, enforcement now becomes a problem. They need to have a lot of independence and they must be very ‘high up there’. So a situation where you have an organisation and the compliance officer is a lowlevel staff and doesn’t sit on the board, there is a limit to which you can drive compliance.

These are the major challenges today, that the compliance has and even the compliance institute.

As an institute, our major challenge right now is to be able to become Chartered and we intend to request this from the National Assembly. We want to get the Charter because we don’t want the institute to be looked at as a one-man thing. It’s supposed to be a national agenda.

We need to get a Charter so we can have the support of the government and government institution.

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EU finance ministers strike eurozone reform deal

Equities struggle as trade truce momentum fades

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World Business Newspaper

French government suspends fuel tax rise after riots Prime minister U-turn following violent ‘gilets jaunes’ protests will cost nearly €2bn HARRIET AGNEW AND DAVID KEOHANE

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he French government said on Tuesday it would suspend planned fuel tax increases for six months in response to violent protests against the measures by the so-called gilets jaunes movement.

Edouard Philippe, prime minister, announced the moratorium on the tax increase, scheduled for January 1, after meeting MPs from the governing party.

“These decisions must ease tensions and bring back serenity to the country,” Mr Philippe said in a televised address. “No tax deserves to endanger the unity of the nation.”

The move marks the first time in Emmanuel Macron’s 18-month presidency that he has backed down on measures in the face of street protests, and comes as he faces record low approval ratings.

The government had planned to raise taxes on petrol and diesel by 2.9 cents and 6.5 cents a litre, respectively, from January, partly to curb rising carbon emissions. But the proposed policy has provoked weeks of increasingly violent protests across the country by gilets jaunes — named after the fluorescent security vests car drivers have to keep in their vehicles.

Mr Philippe warned that by reversing the tax increase, the government will be forced to cut its budget.

Mr Macron has made fiscal discipline

one of the hallmarks of his economic policy after his predecessors repeatedly missed EU deficit targets.

“Then, if the taxes go down, public spending will have to go down because we do not want to leave debt to our children,” Mr Philippe said. “This debt is already considerable.”

The total cost of the six month suspension will be close to €2bn, according to government sources, and economists suggested the amount that Mr Macron will need to spend to appease the protesters is likely to climb.

“The French government knows it will have to spend much more to exit this crisis,” said Patrick Artus, chief economist at Natixis.

However, French finance minister Bruno Le Maire said that the French government can still meet its budget deficit targets. Earlier this year, France said one-off items including a change to how payroll taxes are applied would push the deficit from 2.6 per cent of gross domestic product this year to 2.8 per cent in 2019. Without that move, it would be closer 1.9 per cent. The EU mandates a ceiling of 3 per cent of GDP. Speaking in Brussels on Tuesday after the announcement, Mr Le Maire said that France would adhere to “our European commitments, the reduction of spending, the reduction of the debt and the reduction of the taxes and this roadmap”.

The gilets jaunes demonstrations,

How Kenyan women are changing their lives with a new way to buy homes Female customers who could not afford to buy houses can now build them with a loan scheme

M

ary Muthengi is preparing to host her extended family for Christmas. She has four siblings and her husband has three. Together they also have three children.

“There will be so many people, we’ll even sleep on mattresses on the floor,” she said at her new nine-room home in Machakos County, 40 miles south-east of the Kenyan capital Nairobi. “There will be new shoes, new clothes, goat and chicken to eat. The children are so very excited.”

Mrs Muthengi, who is 32, will be hosting Christmas this year for the first time thanks to a housing loan from KWFT, a Kenyan microfinance bank. With the support of international housing charity Habitat for Humanity, the bank is revolutionising

the way women on low incomes can access funds to build and improve their homes in rural areas of the country.

Founded in 1981, KWFT initially focused on women, to give access to banking services they were excluded from. Over time it found women to be extremely reliable customers.

Kenya has a population of around 50m but, according to the central bank, fewer than 30,000 mortgage accounts. Informal land ownership, particularly in rural communities, means lenders cannot use property as security, and prospective borrowers, like Mrs Muthengi, usually have few other assets to use as collateral.

In response KWFT has taken a different approach to lending. The bank Continues on page 44

The rage of the ‘gilets jaunes’ protesters in France was triggered by a rise in fuel taxes hard to bear for neglected rural areas that are more vulnerable to the higher cost of driving © AFP

which began as an online protest, have morphed into a wide-ranging revolt against stagnating wages, a drop in people’s purchasing power, and against Mr Macron himself. The fuel tax increase would have disproportionately affected those on low incomes and rural populations reliant on cars, and some felt it was the last straw by a president whose policies are perceived to favour the rich.

Earlier on Tuesday morning Stanislas Guerini, who on Saturday was elected the new leader of Mr Macron’s La République en Marche, said he was in favour of a moratorium on raising fuel taxes.

“Yes, I think it would be healthy, I think we must ease tensions in the country,” he said on RTL radio.

About 136,000 demonstrators were recorded across France on Saturday, and violence escalated in the French capital, where at least 263 people were injured and 412 arrested. In the wealthy west and centre of Paris, stores were smashed and looted, barricades erected, and the Arc de Triomphe covered in graffiti.

While the majority of the demonstrators were peaceful, the protests were infiltrated by both the far-left and the far-right, alongside wreckers, or casseurs.

The violence has so far not undermined the movement’s strong public backing. An opinion poll by Harris Interactive, taken after Saturday’s protests, suggested the gilets jaunes have an approval rating of about 72 per cent, the same as before the clashes.

A freeze of planned fuel tax increases was one of a number of measures called for in an editorial by 10 self-proclaimed gilets jaunes representatives published on Sunday in the weekly newspaper Le Journal du Dimanche. They also demanded the holding of countrywide consultations over taxes.

Stock market bulls hope for December reprieve A trade truce between Beijing and China and caution from the Fed have been seized on LAURENCE FLETCHER AND STEVE JOHNSON

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aution from Fed chairman Jay Powell and a trade truce at the G20 summit may have handed struggling equity investors a last-minute reprieve.

After a near-decade-long bull market, investors have found themselves in choppier waters this year. Those buying risky assets and hoping they will rise in price — a winning tactic for the best part of a decade — have often found that trick no longer works, amid concerns ranging from the outlook for global growth to trade wars and a recent sell-off in oil.

Along the way, equity investors have also had to cope with bouts of volatility this year, notably February’s plunge and the autumn’s market falls.

So favourable comments from Mr Powell last week and an apparent ceasefire in the US and China’s trade war announced at the G20 at the weekend have been seized upon by the bulls as signs that equity gains are not over just yet.

“In the shorter term there’s a tactical reason to be optimistic,” said Jason Borbora, who helps manage Investec’s $1.3bn Diversified Income strategy.

He points to the fact that, by November, only about 15 per cent of S&P 500 stocks were still above their 50-day moving average. “That suggested broadbrush pessimism, at least in the short term,” he said.

The S&P has risen in three of its four trading sessions since Mr Powell’s comments, when he said US interest rates were closing in on “neutral” levels.

Investors took this as a signal that the Fed’s programme of rate rises would slow. And the market received a further boost when US president Donald Trump suspended his decision to impose higher tariffs on Chinese imports.

The S&P 500, which had been underwater, is now up about 4 per cent for the year. Smaller advances in the Stoxx 600 and FTSE 100 have left them still down 7.6 per cent and 8.5 per cent respectively.

The immediate question is whether this rally can be sustained for the rest of the year. Michele Gesualdi, chief investment officer at Kairos Investment Management, pointed out that recent developments mean the market’s three main concerns — the pace of interest rate rises, falling oil prices and trade tensions — have stabilised.

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FT How Kenyan women are changing their lives...

Table: the top global social impact bonds

Continued from page 43

saw that women were often using its small business loans to build or repair their houses. So while women could not afford to buy homes, they could afford to build them, slowly, if they had access to credit.

Habitat for Humanity, the FT’s Seasonal Appeal partner, provided the research and training to help to develop a new type of loan called “Nyumba Smart” — meaning beautiful home — using a $6.4m donation from the Mastercard Foundation.

KWFT delivered the staff, the network and the clients.

“Housing is something we were always going to be ultimately involved with, but Habitat was a very important catalyst to make sure we have the right product,” Mwangi Githaiga, managing director, said in an interview at the KWFT headquarters in Nairobi.

The loans, launched in December 2014, provide women with up to Ks1m ($10,000), repayable over a maximum of three years, for the construction of all or part of a house.

Mrs Muthengi, who earns about $40 a day trading second-hand clothes, borrowed Ks100,000 — about $1,000 — earlier this year to complete the construction of her home. It is the first time she and her family have lived in a house they own.

“I have dreamt about having a home, but not a home like this,” she said of the unfinished building, which has a dazzling blue tin roof.

To avoid issues of limited collateral, women like Mrs Muthengi, who have an income but no assets, are organised into groups that function as unique borrowing associations.

When a woman wants to borrow funds for her home, affordability is assessed by the KWFT loan officer, but the decision is taken by the group.

If the borrower fails to keep up with repayments, all other lending to the group ceases until the shortfall is met, often by the other members.

“We use social collateral rather than hard collateral,” Mr Githaiga said.

“Because we are village-based we know our customers [ . . .] and other women are willing to say, ‘give her the money and if she doesn’t pay we will take responsibility’.”

‘Surpassing expectations’ On a bright November morning in the village of Kyangala, 10 miles south-east of Machakos town, a group is deciding whether to lend Ks200,000 to Wayua Redemter Kisilu, so she can put a roof on her half-built home. Mrs Kisilu is sent to the shade of a nearby tree as the group confers. Heated discussion ensues: Mrs Kisilu has not been active in the group, often missing meetings. They decide to approve the loan only if she agrees to attend more regularly.

KWFT has 245 branch offices in 45 of Kenya’s 47 counties, and has developed deep networks in the communities it serves, building client relationships based on mutual trust and understanding.

The unique community-based banking model has been extremely successful. When KWFT and Habitat embarked on the project five years ago, the target was 17,000 loans. Today the initiative — which is also active in Uganda via Centenary Bank — has issued more than 60,000, mobilising in excess of $60m and helping at least 300,000 households. On average KWFT makes 1,600 Nyumba Smart loans a month.

“We have surpassed our target and

Wednesday 05 December 2018

A way to generate funding for social policy while also attracting investors ANDREW JACK

I Muhammadu Buhari said: “I will soon celebrate my 76th birthday and I am still [going] strong” © AFP Finance ministers hailed the breakthrough as an agreement to equip the eurozone’s banking union with more financial muscle © STEPHANIE LECOCQ/EPA-EFE/REX/Shutterstock

EU finance ministers strike eurozone reform deal

Agreement to bolster banking union and sovereign bailout fund to protect bloc from future crises JIM BRUNSDEN AND MEHREEN KHAN

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U finance ministers have agreed on steps to bolster the eurozone against future financial crises, striking a deal after negotiations that went through the night and pitted French-led reform ambitions against the reluctance of northern European capitals to share more financial risk.

Bringing an end to more than 12 months of sensitive negotiations over the future of the single currency, finance ministers in Brussels nailed down a reform package at 7.30am in talks marred by brinkmanship, foot-dragging and long rounds of redrafting designed to satisfy the competing demands of Paris, Rome, Berlin and The Hague.

Finance ministers hailed the breakthrough on Tuesday as an agreement to equip the eurozone’s banking union with more financial muscle and to give its sovereign bailout fund — the European Stability Mechanism — extra flexibility in how it can help countries to weather market turmoil. Ministers also agreed to keep discussions alive

about a future eurozone budget — a key demand for France’s Emmanuel Macron.

Mário Centeno, president of the Eurogroup, said the result marked “a breakthrough on some key issues”, hailing the outcome of a “very tense and exhausting negotiation”.

The deal was hammered out over 19 hours of talks, with ministers up against a deadline set by EU leaders for a policy blueprint to be ready for a summit meeting taking place in the Belgian capital next week. Although most of the groundwork had been laid weeks before the meeting, diplomats said negotiations on the night were snarled up by competing demands from ministers and haggling over the precise wording of various reform plans.

The biggest stumbling block proved to be a French push for a eurozone budget to play a “stabilising” role for economies suffering downturns — a demand staunchly resisted by the Netherlands. In the final compromise, ministers said that work could advance on a budget for “convergence and competitiveness”, subject to EU leaders agreeing

a negotiation mandate at a summit next week.

French diplomats hailed the progress, saying it gave momentum to a Franco-German plan to place the spending tool inside the EU’s longterm budget. But ministers were explicit that there was no consensus on any kind of tool for fiscal stabilisation.

“We did not reach a common view on the need and design of such a function,” ministers said in the Eurogroup’s common statement.

“Technical discussions continue.”

Talks also dragged out because Italy fought back against rules it feared could reduce investor appetite for its sovereign debt.

Eurozone reform has been propelled up the EU’s political agenda in recent months, as governments across the currency bloc face different kinds of popular pressure over the restrictions and obligations that come with membership of the single currency. Brussels has urged progress ahead of European Parliament elections next year, while the European Central Bank has warned of the need to fix shortcomings in the euro’s crisis-fighting toolkit.

South Africa suffers fifth day of power cuts Ramaphosa under pressure to make tough decisions over fate of utility Eskom JOSEPH COTTERILL

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outh Africa suffered a fifth day of scheduled power blackouts on Monday as the state electricity monopoly, Eskom, took action to prevent a collapse of the national grid, worsening a crisis for President Cyril Ramaphosa.

In a statement on Monday the utility, which generates nearly all the power for Africa’s most industrialised economy, said it was imposing the phased shutdowns because “a number of generating units” were “still out of service due to breakdowns”.

The strain on Eskom’s power stations, said to be exacerbated by coal shortages, has alarmed industry as it is biting in summer when demand is low. The unreliability of the power supplied to businesses has also called into question Mr Ramaphosa’s pledge to revive investment in the economy made when he came to power this year.

So-called load-shedding is seen as a last resort to prevent total collapse of the grid, but the latest bout is likely to depress economic activity just as South Africa is struggling to emerge from recession.

“Political meddling at Eskom has basically rendered it a hopeless strategic asset that holds the whole country to ransom,” said Ronald

Chauke of the Organisation for Undoing Tax Abuse, an anti-graft NGO. Mr Ramaphosa, a business tycoon turned leader of the ruling African National Congress, launched an overhaul of Eskom soon after replacing Jacob Zuma, under whose presidency the utility was a byword for corruption and waste.

The reforms, which included the replacement of the utility’s board, have struggled to control Eskom’s debts of more than R400bn ($30bn) which imperil public finances as they are mostly state-guaranteed.

Last week the group said it was in a “debt reliant liquidity situation” of stemming a cash drain by issuing debts, which ballooned during Mr Zuma’s presidency.

Eskom was once regarded as one of the world’s best-run utilities but began to be plagued by blackouts about a decade ago as it fell behind on investing in capacity. It then rapidly declined under Mr Zuma as he appointed as board members allies who allegedly siphoned off resources.

It was also central to an alleged conspiracy by the Gupta business family to use a friendship with Mr Zuma to control state-owned companies. The Guptas acquired a coal mine supplying Eskom before losing it in their fall from grace after Mr Zuma’s exit from power.

While new management at Eskom has brought criminal cases against former executives, the legacy has been a cash crisis. Eskom is expecting to post losses of more than R11bn in its current financial year, compounding an underlying structural predicament.

Eskom is bringing in less revenue than it did a decade ago as industrial customers have fled offgrid, in what bankers call a classic utility “death spiral”. The rise of renewables-based independent power producers to supply Eskom, a move backed by Mr Ramaphosa, is also making its own coal plants increasingly precarious.

Mr Ramaphosa is under pressure to make tough decisions over the utility’s fate even with elections months away.

“The shortage of coal at several power stations, and the resultant effect of power blackouts, proves that Eskom’s monopoly on power production and supply needs to be broken up,” the main opposition Democratic Alliance said on Sunday.

The Guptas and Mr Zuma deny claims of wrongdoing, as do the former Eskom executives.

South Africa’s official statistics agency will announce on Tuesday whether the economy began growing again in the third quarter, after this year’s plunge into recession.

f there has been a gradual growth in social impact bonds over the past few years, Sir Ronald Cohen plans to sharply accelerate the trend in the months ahead.

The venture capitalist is seeking to raise $1bn by next summer to support education projects across Africa and the Middle East with payouts linked to outcomes, and a similar amount for India by the end of 2019, he said in an interview.

He hopes to raise funding from a mixture of governments, philanthropists and companies, which will provide money to underwrite some 150 projects backed by bonds to improve educational outcomes at different ages across a dozen of countries.

“If you want to bring systemic change to education, there has to be a more powerful way than lobbying for more money,” he says.

Social impact bonds, first pioneered by the UK in 2010 to help prevent reoffending among former prisoners, are structures through which private investors fund innovative approaches to social issues.

They are reimbursed — usually by governments — only if they meet agreed targets.

The Brookings Institution in Washington DC has tracked their growth and provided the data in the table: over one hundred have been established since the start of the decade. The largest number are still focused in the UK, and most target social welfare and employment.

Yet they are increasingly being applied internationally — from the US to Uganda — for a wider range of projects and with backers including philanthropists and governments. While data are not always available, Brookings estimate social impact bonds have raised more than $364m since 2010.

For Sir Ronald, social impact bonds provide a way to generate greater funding for social policy while also proving attracting to investors. Notably, he argues they are a form of risk diversification because, “they deliver an uncorrelated return not linked to stock markets”.

Not everyone is so convinced.

Michael Roy, a senior lecturer in social business at Glasgow Caledonian University, argues the bonds can be complex and costly to establish and monitor, imposing a heavy or impossible burden on many non-profit organisations.

As he and colleagues argued in the Stanford Social Innovation Review, the bonds shift social policy from a focus on citizens to the generation of return on investment.

He concluded: “SIBs are both an archetypal “solution looking for a problem,” and an illustration of the cultural supremacy of market principles into all aspects of everyday life, including politics and policy.”

For those like Sir Ronald, at least in the absence of greater public funding, they provide a way to stimulate innovation, generating new money to launch closelymonitored projects in fields that have received insufficient investment up till now.

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@ FINANCIAL TIMES LIMITED

Equities struggle as trade truce momentum fades Renminbi makes biggest two-day advance against the dollar since 2005 MICHAEL HUNTER AND HUDSON

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he rally sparked by the weekend trade truce reached by China and the US fizzled out, with Wall Street and European bourses slipping after modest declines across much of Asia.

The S&P 500 was down 0.7 per cent in mid-morning New York trade and the Nasdaq Composite was 0.5 per cent lower after wider losses in Europe.

The dollar eased further, with a particularly eye-catching move against the renminbi, which took the two-day advance of China’s onshore currency to 1.3 per cent, its biggest since it was revalued in 2005.

The onshore exchange rate — which is permitted to move 2 per cent to either side of a daily midpoint set by the People’s Bank of China — firmed 0.7 per cent to Rmb6.8353 per dollar, a twomonth high.

Oil prices gained further on hopes of an Opec agreement later this week to cut production.

Sovereign bond markets also hinted at a lack of conviction over the ceasefire between Beijing and Washington.

The 10-year US Treasury yield fell 4 basis points to 2.95 per cent as traders bought into the debt, also reflecting expectations that the pace of the Federal Reserve’s rate-tightening cycle could slow in 2019. The demand for the benchmark debt sent its yield to its lowest since September after dropping below 3 per cent on Monday.

Meanwhile, the yield on twoyear US Treasuries — down 1bp at 2.82 per cent — was higher than that on five-year debt, which was down 3bp at 2.81 per cent.

Known as an inverted yield curve, shorter-term debt yielding more than its longer-dated equivalent is

seen as an indicator of a potential recession.

Frankfurt’s Xetra Dax 30 fell 1 per cent, with London’s FTSE 100 down 0.5 per cent and the Europe-wide Stoxx 600 off 0.7 per cent. Sectors which led the previous session’s run higher were at the forefront of the decline.

Equities Tokyo’s Topix index retreated 2.36 per cent, with broad losses making it the worst performer in Asia.

Sydney’s S&P/ASX 200 was down 1 per cent.

China’s stocks put in a more robust showing, after a wider run lower over 2018. Hong Kong’s Hang Seng rose 0.3 per cent, trimming its year-to-date decline to almost 9 per cent. On the mainland the CSI 300 ticked up a further 0.2 per cent, a day after rallying 2.8 per cent. It is down 19 per cent year-to-date.

Forex The dollar index fell 0.3 per cent, taking it 0.6 per cent lower for the week. The Japanese yen strengthened 0.6 per cent to ¥112.94 per dollar.

The pound initially rose after an indication from the European Court of Justice’s advocate general that the UK could unilaterally reverse the Brexit process if it chose to do so.

The pound rose as much as 0.9 per cent against the dollar before relinquishing its gain to trade flat at $1.2726. It was 0.1 per cent weaker against the euro, with a unit of the shared currency costing £0.8922.

Commodities Brent crude rose 1.7 per cent to $62.73 a barrel while US marker West Texas Intermediate climbed 0.9 per cent to $53.45 ahead of the Opec meeting The price of gold was up 0.6 per cent at $1,238.83 per ounce.

Delta outlook disappoints despite fuel price tailwind MATTHEW ROCCO

D

elta Air Lines issued fresh quarterly guidance that underwhelmed Wall Street, sending shares lower on Tuesday, even as the company benefits from a sharp decline in oil prices.

The company said it expects to register a 3.5 per cent increase in unit revenue, excluding refinery sales, for the fourth quarter ending in December. That comes at the low end of Delta’s prior forecast of 3 to 5 per cent growth.

But the second-largest US airline also said it remains on track to expand pre-tax margins in the current quarter, thanks to the “recent moderation in fuel prices” and other cost controls.

In the initial fourth-quarter guidance it gave in October, Delta said it was bracing for a 30 per cent increase in fuel prices year-over-year, and during the summer, it announced a planned increase in fares and fewer flights

to counter rising fuel costs.

Last month’s rout in oil prices, which saw West Texas Intermediate crude dip below $50 a barrel for the first time in more than a year, could be a boon to airlines’ profits. Jet fuel bills accounted for 21 per cent of the global airline industry’s operating expenses in 2017, according to the International Air Transport Association.

Delta projected earnings per share at the high end of its previously announced forecast of $1.10 to $1.30 for the December quarter. Analysts polled by Refinitiv are looking for earnings of $1.23 a share.

The Atlanta-based company forecast top-line growth of 7.5 per cent, near its initial guidance of around 8 per cent.

In November, traffic rose 4.2 per cent to 16.83m revenue passenger miles. Available seat miles were up 3.8 per cent.

Shares in Delta fell 3.3 per cent in morning trading.

France and Germany abandon plans for EU digital tax Compromise targets tech groups’ ad revenues in win for likes of Amazon and Apple MEHREEN KHAN AND JIM BRUNSDEN

F

rance and Germany have abandoned plans for the EU to impose a wide-ranging digital tax on tech companies, in favour of a narrow levy on advertising sales that would be likely to exclude Amazon and Apple from its scope.

In an attempt to rescue foundering talks to set up an EU-wide tech tax, Paris and Berlin on Tuesday presented a draft plan to impose a 3 per cent tax on internet companies’ advertising sales.

The compromise abandons a wider digital services tax plan that would have raised an estimated €5bn a year by targeting about 180 of the largest technology groups and taxing revenues from data sales and the activities of online platforms. Negotiations over the tax had run into staunch opposition from EU governments including Denmark, Sweden, and Ireland, who have resisted targeting the revenues, rather than profits, of tech companies on their soil.

Officials said on Tuesday that under the new Franco-German proposal — which was conceived on the sidelines of a G20 meeting in Buenos Aires last week — Facebook and Google would be targeted through their sales of advertising but other big tech companies, such as Amazon, Airbnb and Spotify, were likely to be excluded.

The watered down move is an indication of French President Emmanuel Macron’s determination to reform rules surrounding the taxation of digital companies before European elections next May. Diplomats said the focus on advertising was intended to alleviate Germany’s concerns that its car companies could be hit by the tax. It is also seen as an attempt to address the concerns of Nordic economies that have pushed back against Europe’s attempts to go it alone with tax rules for digital companies in favour of broader international rules.

Bruno Le Maire, France’s finance minister, told reporters in Brussels that the scaling back of ambition was needed to keep the issue alive in other capitals, especially given that unanimity among nations was needed to adopt EU tax measures. “I want to get to a result, not an impasse”, he said.

Hartwig Loger, Austria’s finance minister, said Vienna would support the French and German plan. “It is an important first step where we can achieve an agreement in spring next year,” he said.

However, discussion among European finance ministers on Tuesday suggested that the compromise had not overcome some countries’ objections, throwing into question whether an agreement can be reached by March next year — two months ahead of

European Parliament elections.

Paschal Donohoe, Ireland’s finance minister, warned that he continued “to have strong principled concerns about this policy direction”.

Other ministers raised concerns that the plan lacked ambition and that the cost of collecting the tax would outweigh the potential benefits.

Spanish minister Nadia Calviño said her centre-left government, which is planning its own digital services tax, would “need to assess carefully” whether the Franco-German proposal “sufficiently fulfils the objectives of ensuring a fair and efficient tax system for the digital economy”.

Paris and Berlin’s draft plan makes no estimate of how much the narrower tax proposal could raise in revenue, although a French diplomat estimated it would raise half the expected revenues of the original digital tax plan — about €2.5bn a year.

The compromise is intended to come into force in 2021 only if a global solution, being worked on at the OECD, is not agreed by then. To make sure the tax stays as a temporary measure, it would be given an expiry date of 2025.

James Watson, director of economics at lobby group BusinessEurope, said on Tuesday that the EU must not “move against the international consensus”.

Swift takes on fintechs with new payment system Banks seek to hedge tech bets with legacy platform’s latest pilot LAURA NOONAN

L

egacy payments platform Swift is piloting a new system to speed up banks’ cross-border transfers and reduce errors, firing a shot across the bow of a blockchainbased project that claims to do the same thing and payments fintechs that offer cheaper, faster services.

Founded in 1973, Swift was banks’ original answer to the question of how to move money around the world more quickly and easily. The platform is now owned by 2,500 banks and is used to shift more than $200bn around the world daily.

Inefficiencies, however, have left the platform ripe for competition from payments start-ups such as Revolut and TransferWise, as well as the Interbank Information Network (IIN). More than 130 banks, led by JPMorgan Chase, have signed on to

the blockchain-based IIN project, which shares information between banks on a mutual distributed ledger.

That allows them to quickly resolve errors and compliance issues that can delay payments by weeks.

In a testament to how banks are hedging their bets on the future of payments, several of those banks are now part of a pilot for Swift’s own fix for lengthy payment delays — — a new “prevalidation” system in which banks use an application programming interface (API) to access each other’s data to check things such as the validity of bank account numbers when a payment is initiated.

Under the blockchain-based system information is shared on a mutually distributed ledger hosted on the cloud that can be accessed and edited by all participants in real time. The API system, by contrast, allows banks to access each other’s data on a bilateral basis, ensuring

the recipient’s account information is correct before it is sent in an effort to reduce delays.

“We know that there are still some payments which are badly formatted and missing some information,” said Luc Meurant, chief marketing officer of Swift. “Instead of correcting that later in the chain and delaying payment, we are trying to anticipate as many of those issues as possible (with prevalidation) so payments can be processed faster.”

Swift estimated that around 10 per cent of all payments on its platform were held up because of errors. Manish Kohli, global head of payments and receivables at Citi, said the new system would “considerably reduce” the costs banks incur to resolve problematic payments and would improve customer experiences. That would “absolutely” allow banks to cut pricing and compete more effectively with fintechs, he added.

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ANALYSIS Several small banks beat a falling market — with help from ETFs Inclusion in small-cap index funds contributes to higher valuations and outperformance ROBERT ARMSTRONG

A

Opec: why Trump has Saudi Arabia over a barrel Riyadh will struggle to boost prices now that US is the world’s largest oil producer DAVID SHEPPARD AND ED CROOKS

R

eneé Earls has lived her whole life in west Texas, and watched oil booms come and go, but she has never seen anything like the buzz of activity in the industry today. “We are a hopping spot,” she says. “If you’re not working here, that’s because you’re not looking for a job, or you are unemployable . . . If you have a skill and want to work, you can name your price.”

Ms Earls is chief executive of the chamber of commerce in Odessa, in the heart of the Permian basin, the shale formation stretching from west Texas into New Mexico that is the red-hot centre of the latest US oil boom. Production in the region rose by 1m barrels a day in the year to August, contributing to a recordbreaking 2.1m b/d increase in US output that has made the country the world’s largest crude producer.

The shale boom has not only transformed once rundown towns deep in the west Texas desert; it is increasingly reshaping the landscape of international politics. The emergence of the US as a bornagain energy superpower — one of the key factors in the recent fall in oil prices — has led politicians in Washington to weigh how it might reshape some of its oldest alliances, raising uncomfortable questions for the oil producers of the Middle East .

For Saudi Arabia, the US’s chief ally in the Arab world, the past two months have delivered a stark lesson in how its relationship with Washington has been redefined by the Texas oil revolution.

On Thursday and Friday ministers from Opec, the oil cartel that controls roughly a third of global production, and its allies including Russia and Kazakhstan, will meet in Vienna to decide how to respond to the 30 per cent plunge in oil prices to around $60 a barrel over the past two months. With US output surging, and Russia and Saudi Arabia also producing at close to record levels, traders are convinced the market will be awash with oil next year.

Previously such a fall would have prompted Opec and its allies to agree to cut production. But for Saudi Arabia, which remains the world’s top oil exporter and the cartel’s de facto leader, that decision has been complicated by the murder of Jamal Khashoggi.

The gruesome killing of the Saudi Arabian journalist and Washington Post columnist, a critic of the royal family, has revealed fissures in

its prized relationship with the US. US president Donald Trump has maintained his backing for Riyadh and Crown Prince Mohammed bin Salman, the country’s day-to-day ruler widely known as MBS, despite reports that the CIA has concluded that he ordered the operation against Khashoggi at the kingdom’s consulate in Istanbul. But his stance comes with conditions attached, one of which lies at the heart of the kingdom’s wellbeing: the oil price.

In statements, tweets and private communications Mr Trump has made clear his support for lower oil prices and his opposition to Riyadh moving to cut production, heaping pressure on a royal court shaken by the international backlash against the Khashoggi killing.

The pressure from the White House has come despite Saudi Arabia raising production this summer to help make sure the market remained well supplied as the US reimposed sanctions on Iran. Riyadh’s position as Tehran’s chief rival in the region reflects a core part of the Trump administration’s foreign policy.

“The priority for Saudi Arabia is shoring up MBS’s position, and the key part of that is securing Trump’s backing,” says Derek Brower, a director of RS Energy Group. “Trump has clearly linked his support for MBS with several things . . . but it’s oil that seems to be at the top of his agenda.”

For the Trump administration, the calculation is straightforward.

Lower oil prices mean cheaper petrol, providing a boost for consumers. The president has hailed the recent fall in prices as a “tax cut”, giving him some good news after a stock market wobble triggered by his confrontation with China over trade.

For Saudi Arabia, that creates a dilemma. Khalid al-Falih, its energy minister, has pushed ahead with plans to drum up support for cutting oil production by more than 1m b/d, but observers think he will be constrained by the need to appease Mr Trump.

Bob McNally, a consultant who has advised US administrations on oil policy, says Riyadh’s position is precarious. “If they orchestrate a high-profile Opec-plus cut that boosts Brent crude back up towards $70 they risk Trump’s wrath,” he says. “[But] if Riyadh bends entirely to Trump’s will and keeps production at record levels, an inventory glut will return and the bottom will fall out of crude prices.”

Ellen Wald, author of a history of Saudi Arabia’s oil industry, says

the “ultimate success” for Riyadh from this week’s meeting would be “to quietly let people know that a cut is happening to raise the price, without drawing attention to the activity of Opec specifically.”

Yet history suggests that kind of mixed message risks pleasing no one — angering Mr Trump while not doing much to raise prices.

The stakes for Saudi Arabia are higher than just a single decision on output. Its alliance with the US has long been underpinned by oil supplies, with the resultant petrodollars recycled back into the American economy through the purchase of military hardware.

After a fall in prices in 2014, Riyadh renewed its attempts to diversify and modernise both its economy and wider society, aiming to reduce its dependence on oil revenues. But for the programme to have a chance of success, Saudi Arabia needs a higher oil price in the short term to help fund the changes.

The shale boom is eroding the foundations of one of the pillars of the alliance. US net oil imports, which peaked at about 13m b/d in 2005, have dropped to about 2.4m b/d this year. By the end of next year, they could be running at just 330,000 b/d, according to the US Energy Information Administration.

Saudi Arabia’s crude supplies remain crucial to the world economy, and to US consumer fuel prices. But Amy Myers Jaffe, a senior fellow at the Council on Foreign Relations, says the US economy is much less vulnerable to a spike in prices than it was even a decade ago.

The evidence of the crude price fall fur years ago and subsequent recovery is that the impact of changes on the American economy is now roughly neutral. “The US is not in the position it was in 200708, when we were facing a rising oil price that put strain on the current account deficit and the dollar,” she says. “That’s a big change.”

As politicians start to grasp the implications of that shift, it is strengthening the argument that the US no longer needs to shackle itself to Riyadh.

“The atmosphere in Washington has certainly changed following the killing of Jamal Khashoggi,” says Helima Croft, a former CIA analyst who now runs RBC Capital Markets’ natural resources analysis. “Politicians see the surge in US oil production and are wondering aloud whether the alliance is as necessary as it once was.”

handful of small banks stocks have defied the market downturn that has engulfed many of their peers — with help from index funds.

The KBW regional bank index is down 12 per cent in the past six months, against a small gain for the larger market, as investors worry about rising deposit costs and a peaking economy.

But several small bank stocks have easily outperformed the market, and held on to very high valuations. Part of the reason these stocks have broken the trend, analysts say, is their inclusion in passive funds that have seen strong inflows of investor funds.

In particular, banks stocks captured in small-capitalisation passive funds have enjoyed the benefit of inflows to those funds, while those only in financial sec-

tor funds suffered with outflows.

Data from EPFR Global shows that US small-cap funds have seen $10bn in inflows since May. US financial sector funds have seen $11bn in outflows.

Perhaps the biggest beneficiary is First Financial Bankshares, a Texas bank, whose shares have risen by more than 20 per cent in the past half year, and which trade at over five times the company’s tangible book value. No other publicly traded US bank trades at over four times book. Only five trade over three, and the national average is 1.8, according to data from S&P Capital IQ. First Financial is “probably the most expensive bank stock in the country”, said Brady Gaily, small banks analyst at Keefe, Bruyette & Woods. It is a very high quality bank, he said, but “it is in a decent number of [exchange traded funds], and that is part of the reason it has done so well”.

First Financial and many other highly-valued banks stock are included in the S&P 600 small-cap index and therefore in

the large index funds that track it — most notably the $43bn iShares S&P Small Cap ETF (IJR).

“As an active manager, you take advantage of fund flows that create overvalued or undervalued situations,” said Anton Schutz of Mendon Capital, who invests in small-cap financials.

“Over time it does reverse, but in the short term the flows have a big effect.”

Among banks with market capitalisations between $450m and $5bn — roughly the range that would qualify them for the S&P 600 — inclusion in the index has correlated with outperformance.

The 44 banks that are included in the index have seen their stocks fall by 7 per cent on average since May, and have average price-to-book ratios of 2.2; those that are excluded have seen their stocks fall by the banking sector

average of 12 per cent, and have an average book value of 1.9, according to an analysis by the Financial Times.

KBW additionally found that bank stocks that are more heavily weighted in the S&P 600 outperformed significantly. First Financial is currently the most heavily weighted stock in the S&P 600.

The top seven banks by priceto-book valuation in the $450m to $5bn market cap range — First Financial, Community Bank System, Westamerica, Glacier Bancorp, ServisFirst, CVB Financial and Independent Bank — are all in the top quartile of the S&P 600 by weight.

Seven of the top 10 most highly valued banks in the US by price to tangible book value are members of the S&P 600.

The other three are too small for inclusion.

Passive fund flows are “definitely affecting how individual banks trade”, said KBW analyst Melissa Roberts. The relatively low liquidity of the smaller banks accentuates the effect of ETF buying, she said.

Wednesday 05 December 2018

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Live @ The Exchanges Top Gainers/Losers as at Tuesday 04 December 2018 GAINERS

Market Statistics as at Tuesday 04 December 2018

LOSERS

Company

Opening

Closing

Change

Opening

Closing

Change

GUARANTY

N34.65

N35.95

1.3

WAPCO

N13.4

N12.8

-0.6

N7.5

N8

0.5

UNILEVER

N39.9

N39.5

-0.4

N46.05

N46.55

0.5

NB

N80.4

N80

-0.4

N23.6

N24

0.4

MAYBAKER

N2.5

N2.3

-0.2

N7.4

N7.6

0.2

LINKASSURE

N0.62

N0.56

-0.06

UBA STANBIC ZENITHBANK FBNH

Company

ASI (Points)

31,007.25

DEALS (Numbers)

2,802.00

VOLUME (Numbers)

198,535,693.00

VALUE (N billion)

2.115

MARKET CAP (N Trn

11.320

Investors book N76bn gain as banking stocks rally on Lagos Bourse Stories by Iheanyi Nwachukwu

I

nvestors may have started raising wagers on low priced value stocks particularly in the banking sector as they occupied the list of top gainers at the sound of closing gong for Tuesday’s trading on the Nigerian Stock Exchange (NSE). The record buy decision in favour of banking counters helped add about N76.1billion to the value of listed stocks on Tuesday December 4.

The Nigerian equities market closed on a positive note as NSE All Share Index (ASI) appreciated by 0.68percent to close at 31,007.25 points as against preceding day low of 30,798.76 points while the

value of listed equities –the market capitalization increased to N11.320trillion from preceding day low of N11.244 trillion. The

year-to-date (YtD) returns currently stands at minus 18.92percent.

GTBank Plc recorded the highest rally yester-

Lafarge Africa to raise N89.21bn by way of Rights Issue …at N12 per share, 6 new shares for every 7 held

L

afarge Africa Plc has notified the Nigerian Stock Exchange (NSE) of the decision of the Board of Directors at the meeting held on December 3 2018 in respect of the proposed Rights Issue.

Following the resolution of the company’s shareholders passed at the Extra-Ordinary General Meeting (EGM) held on September 25, 2018, the Board of Directors have approved the terms of the Rights Issue.

Lafarge Africa Plc will raise N89.21billion by way of a Rights Issue at N12.00 per share, by issuing 6 new shares for every 7 shares held by shareholders at the Qualification Date, which will be announced.

The Rights Price represents a circa 10.45percent

discount on Lafarge Africa’s traded closing price of N13.4kobo as at Monday December 3, 2018.

The regulatory approval process for the Rights Issue is ongoing, according to the notice signed by Adewunmi Alode, Company Secretary, Lafarge Africa Plc. Lafarge Africa Plc is a subsidiary of LafargeHolcim, a world leader

in building materials. The company has operations in Nigeria - Ewekoro and Sagamu plants in Ogun State, Ashakacem in Gombe State, Mfamosing in Cross Rivers State, Atlas cement in Rivers State and Ready-Mix Nigeria and varied operations in South Africa and Ghana with total group capacity of around 14 million Metric Tonnes.

day after its share price advanced from N34.65 to N35.95, up N1.3 or 3.75percent; followed

by UBA Plc which ral-

lied from N7.5 to N8, after gaining 50kobo or 6.67percent.

Stanbic IBTC Holdings Plc also advanced from N46.05 to N46.55, adding 50kobo or 1.09percent; followed by Zenith Bank Plc which rallied from N23.6 to N24, up 40kobo or 1.69percent. FBN Holdings Plc increased from N7.4 to N7.6, adding 20kobo or 2.70 percent.

Lafarge Africa Plc share price recorded the biggest dip from N13.4 to N12.8, down by 60kobo or 4.48percent. Unilever Nigeria Plc was another laggard after its share price declined from N39.9 to N39.5, losing 40kobo or 1percent.

Nigerian Breweries Plc lost 40kobo from N80.4 to N80, down 0.50percent. May & Baker Plc

lost 20kobo after its share price dropped from N2.5 to N2.3, losing 8percent of its day-open price; while Linkage Assurance Plc declined from 62kobo to 56kobo, losing 6kobo or 9.68percent.

In 2,802 deals, stock traders exchanged 198,535,693 units valued at N2.115billion. Stock traders exchanged 63,915,597 units of FBN Holdings valued at N479.304million.

Also exchanged include 23,150,958 units of Access Bank Plc shares valued at N172.944million and 16,472,731 units of ETI Plc valued at N263.561million.

Stockbrokers exchanged 11,846,363 units of FCMB Plc shares worth N18.452million and 11,597,424 units of GTBank Plc shares valued at N407.277million.

NSE set to host Exchange Traded Products conference

T

he Nigerian Stock Exchange (NSE) is set to host the 2018 edition of its Exchange Traded Products (ETPs) conference tagged - Exchange Traded Products: Evolving investment themes, Accessing New Markets and Enhancing Portfolio Alpha. The event is scheduled for today December 5, 2018 in Lagos.

The conference will address Investors, Fund Managers, Regulators, and Capital Market Intermediaries as well as current and prospective ETP issuers. It will feature presentations and panel discussions aimed at providing insights on opportunities for the creation of diversified investment vehicles (such as Structured Products, Exchange Traded Notes and Exchange Traded Funds) and the value proposition of this asset class to investors.

Some of the confirmed speakers and panelists for the conference include

Deborah Fuhr, ETFGI; Damilola Ajayi, Executive Director, Vetiva Capital Management; Dayo Obisan, Managing Director, Greenwich Asset Management and President FMAN; Shuaib Audu, Stanbic IBTC Bank; Ndako Minjidadi, Lotus Capital; Sulaiman Adedokun, Meristem Wealth Management; Nerina Visser ETFSA; Dave Uduanu, Managing Director/CEO, Sigma Pension Managers; Dapo Akisanya, Managing Director/ CEO, AXA Mansard Pension; Tosin Ojo, Head, Investment Management, Cardinal Stone; Niyi Falade, Managing Director/CEO, Crusader Sterling Pension; Michael Mgwaba, ABSA; Oluwafemi Onifade, Acting Head, Trading Business Division NSE; Justin Bester, Global Markets, Rand Merchant Bank and Efiok E. Efiok, Head, Investment Management Regulation, Securities and Exchange Commission (SEC) renowned professionals and executives drawn from the

domestic and international ETPs, fund management, pension and regulatory landscapes.

Speaking on the conference, Olufemi Onifade, Acting Head, Trading Business Division at the NSE, highlighted that “ETPs provide a direct and cost effective means of gaining portfolio access to diversified asset returns or markets such as indexes, commodities, sectors or regions; and also lend themselves elegantly to the execution of diverse investment strategies.

“ETPs are versatile investment vehicles, having been structured to execute a public divestment transaction in India as well as a national savings scheme in South Africa. The Exchange recognises that awareness and capacity building are integral elements in supporting the development of this asset class; indeed, this conference is a direct expression of our commitment to capacity building in the market.

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Live @ the Stock exchange Prices for Securities Traded as of Tuesday 04 December 2018 Company

Market cap(nm)

PRICES FOR MAIN BOARD SECURITIES (Equities)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

50

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Why Jigawa matters in Nigeria

J

igawa state is one of the states in the northern part of Nigeria that has a bright prospect for investors. Its strategic location makes it the gateway to the North West, North East, and the Republic of Niger. The presence of a free trade zone in Jigawa State, coupled with the fact that the State Government is continuously improving its business environment and expanding infrastructure, makes the State an ideal location for local and global brands. The State receives support from the World Bank, DFID, USAID, UNICEF, UNDP, EU and other multilateral agencies. This pervasive international collaboration confirms the confidence that global institutions have in the Jigawa State Government.

The state’s determination to opening up the economy for private sector participation is gradually yielding results as evidenced by the number of large scale agri-investments that have flowed into the State in the last couple of years. Businesses are attracted to Jigawa by a lot of factors some of which we will look at critically in this report.

Favourable investment Climate There is a strong political will in support of development initiatives, partnerships and sustaining investor friend y policies. Under the leadership of Governor Muhammad Badaru, the tate has proactively pursued policies and programmes to strengthen public sector institutions and make them function more efficiently. Jigawa has a conducive and progressive regulatory environment for business and is among Nigeria’s leading States in ease of doing business ranking according to the World Bank Doing Business Report [2018].

Jigawa has enjoyed peace, security, low crime rate and absence of communal strife such as youth restiveness, thuggery and vandal-

than 12,000 hectares have been demarcated. This offers an opportunity for investors to enter into long term lease agreement for the utilization of these reserves as animal ranches or large scale poultry farms. Most of the reserves are linked with all-weather roads and are close to the national power grid. The state is also endowed with vast, relatively untapped solid minerals deposit awaiting exploration.

H.E Muhammadu Badaru Abubakar, MON, mni, Governor, Jigawa State

ism; there can be no better attraction to foreign or domestic capital.

Vast Resource Base Jigawa enjoys a fair share of all the major natural climatic conditions for agricultural development – land, vegetation, water and

sunshine-but production remains at the subsistence level and the vast opportunities that abound remain untapped. Approximately 1.9 million hectares –constituting more than 80 percent of the State’s total land areas are estimated to be cultivatable during the rainy season.

There are 20 major irrigation schemes and 14 bore hole - based irrigation schemes in the State.

Some of these schemes are located in the Fadama areas. There are over 450 grazing reserves scattered across the State.50 out of these reserves covering more

The Fadama lands [flood plains] are estimated to cover nearly 400,000 ha [more than 16 percent of land mass] stretching for more than 150 Km from Zakirai, a border town in Kano through Ringim, Auyo, Hadejia and Kirikassama to Nguru in Yobe State. It is estimated that less than 50 percent of the total Fadama lands is being utilized.

Approximatel y 1.9 million hectares –constituting more than 80 percent of the state’s total land area are estimated to be cultivatable during the rainy season. The Fadama lands [flood plains] are estimated to cover nearly 400,000 ha [more than 16 percent of land mass] stretching for more than 150 Km from Zakirai, a border town in Kano through Ringim, Auyo, Hadejia and Kirikassama to Nguru in Yobe State. It is estimated that less than 50 percent of the total Fadama lands is being utilized.

Nearly 15 percent [or 285,000 ha] of the State’s arable land is irrigable although less than 50,000 ha are cultivated.

Unique and Strategic location Jigawa State’s geographic location is both unique and strategic: It is a vital transit point and trade route between the crop producing North West and the livestock-rich North East Nigeria. Its proximity to Kano city, Nigeria’s second largest city and industrial centre, provides enormous market opportunities for agro-processors and industries varying scales.

Its border with Niger Republic provides huge opportunities for regional and cross border trade with neighbouring countries in North, Central and West Africa.

The development of a tax free Export Processing Zone at Maigatari near the border with Niger Republic provides opportunities for the investor to tap a potentially huge market of over 300 million people in west and central Africa.

The EPZ is envisaged to cover a total of 6.5 square kilometres with robust and modern infrastructure to support light and medium m a n u f a c t u ri n g e n t e r p ri s e s targeting the export market Partnership between the State Government and a private investor that led to the creation of an agricultural export terminal in Andaza in 2018 is opening up the State for the international export market.

The terminal is set up with the full complement of customs and federal plant inspectorate. Agric export businesses in the Northern region can now benefit from this facility for cleaning their grains, baggage operations , container

sealing and final clearance for export, thereby eliminating the need to join the long clearing queues at the Tincan Island.

Improved Infrastructure There is a strong commitment to infrastructure development in Jigawa State. There are over 2,000 kilometres of high quality, all season roads linking towns and villages across the State, improving the ability of businesses to access regional markets in Northern Nigeria. Between 2015 and now, the state government embarked on the construction and rehabilitation of about 1300Km of regional, township and feeder roads across the State.

Little wonder the 2017 competitiveness report ranked Jigawa as having the best quality of roads in the country. The State has invested in the construction of a modern airport, suitable for both cargo and passenger transportation. Ef-

forts are being made to stimulate export development through the proposed cargo terminal and pack house at the airport facility.

An existing rail line links the State with the Northern Nigeria’s commercial towns of Kano and Kaduna and even more strategically with Nigeria’s largest sea port located in Lagos. It is also strategically placed along the proposed Port Harcourt Maiduguri rail development project.

Institutional Support The Jigawa State Government maintains an open door policy for investors. In 2016, Governor Muhammad Badaru signed a bill establishing the Investment Promotion Agency, popularly called Invest Jigawa into Law. Invest Jigawa has the Government’s mandate to support prospec tive and existing investors in establishing and running businesses in Jigawa. Aside from its role in advocating for a conducive business environment, the agency also offers various services to the investors , as would be examined in subsequent publications

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Wednesday 05 December 2018

2019: APC panicking over Atiku’s growing acceptance - Saraki Director General, Peoples Democratic Party (PDP) Campaign Organisation and President of the Senate, Bukola Saraki, says the ruling All Progressives Congress (APC) are in panic over the personality of PDP Presidential candidate, Atiku Abubakar, and his acceptance by the people.

Saraki speaks to journalists in Abuja on issues surrounding the party’s campaigns and the 2019 general election. OWEDE AGBAJILEKE was there.

How will the Council tackle the perception that the PDP Presidential Candidate, Atiku Abubakar, looted the treasury while he was Vice President? think those are all propaganda. And these are names that they have given Atiku Abubakar. And it has not stuck in any manner. It is clear to us that those are just propaganda. And that is why I said it is name calling and it cannot work because Nigerians are more intelligent to understand that that is not the issues. If there are any issues of corruption, we all know that there are no cases that he has before him. He has a clean bill anywhere and those are just innuendos and propagandas.

campaigns. Going into another campaign, do you think your members will be comfortable collecting campaign funds from the party knowing what happened to their predecessors?

I think the campaigns regarding where the issues of whether monies are being funded by the Federal Government, that is a different matter. We are not in government here and it does not apply to us.

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We have seen a lot of campaigns, especially on social media that are not issue-based. How will the Council respond to campaigns that are not issue-based?

We know that the other side is not going to talk about issue-based campaigns. They are just going to be using words and so on. The most important thing is for Nigerians to know at the end of the day, what is the need for me? Because when you go out and vote, it is all about making this country better. It is not about calling people names. They will do that but we are going to stay on the issues. When they go low, we will go high. We are not going to go low with them because that is where we believe that it shows the responsibility of this party. This is a party that we believe that we have come out reformed, more focused and we believe what is important is: how is the average Nigerian life going to be better? Who is going to make that better, who is going to make the economy better? Who is going to make the country more secured? Who is going to make the country more united? When Nigerians answer those questions, they will choose the person they should vote for.

Today, a lot of people want a more united Nigeria. Who will unite Nigeria better, Atiku Abubakar or the President Muhammadu Buhari? Who will provide better security in ensuring that the country runs more efficiently and who will fix the economy? If you look at those three issues, we will show over the next few weeks that Atiku Abubakar can do it better and you also ask yourself that in the last four years truly, has the country worked? And if those answers are also no, then we must stand and do what is right by voting

Saraki

for a better country.

Just recently, Information Minister, Lai Mohammed, urged the American Embassy not to grant Visa to your presidential candidate. How would you respond to that?

I think it was a panic action by government. How does granting somebody visa equate to endorsement?

These are more like a panic action because government is panicking.

They believe that if that happens it will send a wrong signal. They should not interfere, they should allow the normal process to go.

But again as I said, that is a panic reaction of a government that is scared and worried that it is about to lose election and is trying to see how they can muscle around. And that is a desperate act to go along those issues.

The same questions asked by the then opposition APC in the buildup to the 2015 elections, are the same questions being asked by the PDP today. It appears these questions were not answered.

How will your campaign answer these questions from an issuebased approach?

That is the whole purpose of the campaign. What we will be saying to Nigerians is that it is our belief that with our candidate, we have a

candidate that understands what is required in moving the economy forward. Because I asked some questions: is the economy better now or is it worse than it was in 2015? Are people suffering more now than they were in 2015? And to do that, the reality is that you need a candidate that can drive investments and bring the factories working, bring the economy working. That is the reality. Government alone cannot do it. And government has tried to do it for the last few years and it has not worked and unless you have a President that people believe that the investment climate is conducive, you are not going to see that investment.

We believe that Atiku Abubakar has the background, has the understanding and knows what it takes to address those issues. That is why even in his economic policy you can see somebody that has a grasp of the issues. And that is why we are also hoping that there will be an event where he will discuss his economic views so that when you see him talk and explain those issues, you will understand that he has a firm understanding of where we are coming from. That is the issue.

Secondly, we need somebody that will unite the country. We believe again that Atiku Abubakar has shown that by his background

and antecedent, has shown that yes, he comes from the Northeast but guess what, he is a Nigerian. Every part of the country feels that he will represent them. There is no doubt today that that is not the case and he will be able to do that.

Thirdly and more importantly, you also talked about a sense of belonging where people also have inclusion, where people believe that there will be rule of law, where people believe that there will not be selective fight against corruption.

Again the antecedent shows that he is somebody that will carry people along in doing that. Largely, the most important issue today in this country is: are we better off? And the answer comes back and will always come back to the economy and for it to come to the economy you must be a President that understands, that will create employment for our youths.

And to do that it is not just by government spending money, it is by somebody that understands the environment where people will be ready to come and invest and I believe that Atiku Abubakar and his background and the time he has spent as vice president, he will be able to do that.

Some of your state campaign coordinators in the 2015 election were arrested by the EFCC over

What is your reaction to Federal Government’s disbursement of Trader Moni close to election?

In 2015, I did not see the Vice President going anywhere to give anybody Trader Moni. In 2016, I didn’t see the Vice President going anywhere to give anybody Trader Moni. In 2017, I didn’t see the Vice President going anywhere to give anybody Trader Moni. But all of a sudden in 2018 the Vice President is going about giving out Trader Moni.

And the worst part about it is that he goes with the Woman Leader of his party (APC), governor of his party. At least if you are going and it is Nigerian money, you should have Woman Leader of all the parties because the money belongs to Nigeria. But all I see is APC Women Leaders. It is wrong, it is morally wrong. It equates in a way to sophisticated vote buying, because if it is not vote buying, you should have been doing it since 2015. In 2016, you didn’t go. In 2017, you didn’t go.

Then all of a sudden in 2018, that is the biggest programme.

And when you go, you carry APC governors beside you, Woman Leader of APC beside you, collecting PVCs. Nigerians are not going to be fooled by that. It is not based on sincerity. If he had been doing it since 2015, 2016, 2017, then you can say that. But to us, it is sophisticated vote buying. And next time he goes out, he should carry people that represent the community, not just one party or political association.

It is either they stop it completely or they expand the space to ensure that it represents all Nigerians.

Because the money when it was appropriated, we did not put beside it APC appropriated money. We said it is money appropriated for all Nigerians. When they go for such events, it should have all Nigerians present. And I am sure they if they are going, they can invite neighbouring states or even the political leaders of other parties in that state to participate in the event, not just the ruling party.

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EU has spent over £100m on Nigeria’s elections- Expert James Kwen, Abuja

Ketil Karlsen

we also have support to the issue of providing water, we have support to the issue of IDPs”, he noted.

Manji declared that EU is always neutral in the outcome of elections in any country it is providing assistance and it has no preferred candidate among all the Presidential candidates in the 2019 general elections, insisting that the EU has no influence on who wins the elections.

He also expressed serious concern on the cost of elections in Nigeria making reference to the outrageous amounts most of the political parties charged aspirants for the Expression of Interest and Nomination Forms, restricting many eligible Nigerians, particularly the youths from contesting for the 2019 general elections.

Recall also that EU had early this year donated the sum of €26.5 million for the Nigeria’s 2019 general election through the EU Support to

Democratic Governance in Nigeria (EU-SDGN) funded under the 11th European Development Programme, EDF. Head of EU Delegation to Nigeria, Ambassador Ketil Karlsen while announcing the donation said the overall objective of the initiative is to contribute to the reinforcement of democracy in Nigeria through building strong, effective and legitimate institution.

“Ahead of the 2019 general elections, Nigeria is at a pivotal moment that allows the country to take important steps to consolidate democracy and strengthen the electoral process.

“The European Union continues to partner with Nigeria in the ongoing reform process with a view to strengthening capacity to conduct well-managed elections and with ample participation of all Nigerians”, he said.

2019: Non- indigenes in Delta drum support for Gov Okowa Francis Sadhere, Warri

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overnor Ifeanyi Okowa Campaign Organization got a boost during the weekend, as the non-indigenes in Delta state gathered in Warri to drum support for his re-election bid come 2019.

The non- indigenes vowed to vote massively for Governor Okowa in the 2019 general election, saying he deserves a second term in office.

The non-indigenes who made this vow in Warri, during the inauguration of a political group, “Team Favour Zuokumor For Okowa/Otuaro 2019” said Governor Okowa’s administration has done creditable well and has touched the lives of every person in the state.

The non- indigenes who drummed their support for Governor Okowa under the political group are from Edo, Ndigbo, Ibo and Yoruba.

The Commissioner representing Ijaw on the board of Delta State Oil Producing Areas Development Commission, DESOPADEC, Favour Izoukumor, who spoke at the occasion commended the leaders of the various ethnic groups for supporting

Okowa’s re-election bid.

He said it was a blessing to see Nigerians from the North, West and East gathered in unison for a common purpose and goal.

“It is good to see that you have shunned political and other sentiments to queue behind a man who represent a genuine cause. This is how politics should be; we must learn to support leaders who are excelling in the task bestowed by their offices on them.

“I urge you to take the gospel of ‘OKOWA/OTUARO 2019’ home; proclaim it in the market places, churches, preach it to your friends, children and everybody. Take it with you everywhere you go, Zuokumor said.

He said Governor Okowa deserves a second term so that he can water the trees that he has planted to bear fruits of prosperity for all Deltans.

Zuokumor noted that the state doesn’t need a governor who would railroad it into the bleak past of hanging on the brink of a collapsing economy, unrest and ethnic disunity.

“It is right and just for a man who has gallantly dragged us from the cliff edge to prosperity and is rebuilding

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Oyo PDP guber candidate promises to create jobs with low interest credit Akinremi Feyisipo, Ibadan

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he European Union, EU has spent over £100 million to support the conduct of elections in Nigeria since the country returned to democratic rule from 1999 to date. These funds are spent on providing technical assistance for the elections, including, registration, voter education and monitoring.

Wilson Manji, Electoral Administration and Communication Expert, European Centre for Electoral Support disclosed this while presenting a paper titled: ‘Overview of the EU Support to Democratic Governance in Nigeria’ at the two-day capacity building programme for selected journalists organised by the Independent National Electoral Commission, INEC in Abuja.

Manji explained that EU support to the electoral process in Nigeria is not for any interest but as a member of the international community practising democratic governance, the country deserves such support given to all countries where democracy is practised, adding that apart from elections EU also gives assistance to many areas of need to Nigeria.

“Election support is the not the only area that the European Union supports Nigeria. We have support in the justice sector, we have support in the issue of human trafficking, irregular migration, we support in the issue of gender based violence,

BUSINESS DAY

he governorship candidate of Peoples Democratic Party (PDP) in Oyo State, Seyi Makinde has said that his administration will drive job creation by providing low interest credit facilities and support for small businesses so as to make Oyo state an attractive place to do business, work and live.

While saying that he is willing and ready to bring solutions to the challenges facing the people of the state and the state itself he stated that “Our government will invest in infrastructure, education and affordable healthcare”.

According to him, am running to be the people’s governor who represents our entire state and my plans for our economy reflect this.

We will invest in our educational system from primary to secondary and tertiary levels across Oyo state and relieve the burden of high school fees placed upon our students, parents and guardians.

“Plans are in place to make our state’s educational institutions a place where all youths and students in Nigeria will aspire to study”.

Emphasizing that “employment is one of the best way to fight rising crime rates, keep families together and build a stable society, Makinde said, “one of my main priorities as your governor will be to provide an enabling environment for business so that more jobs can be created, ensure that workers salaries are paid when due and their rights are adequately protected”.

Makinde who stated these in a letter to the people of Oyo State personally signed by him noted that “any unconstitutional policies of the out- going administration, which are not in the best interest of the people of Oyo State, will be duly reviewed”.

Any unconstitutional policies of the out -going administration, which are not in the interest of the people of Oyo State, will be duly reviewed.

An effective feedback system will be put in places, so that I am informed about the governance challenges faced by students, youths, adults and the vulnerable people among us. Together, we will build a new Oyo State where everyone is an important stakeholder. I promise to focus on solving problems.

He observed that the challenges across the state are real and the needs are substantial, saying, “it is time we return Oyo state to a place where we treat each other with humility, respect and dignity”.

“Oyo State is strategic in Nigeria and powered by hardworking families from every part of the state.

We are creative, passionate and determined. However, challenges across our state are real, the needs are substantial. By the grace of God, I am willing and ready, with your help to bring solutions to them,” he said.

“Every person in Oyo state has value and for us to transform our state for better, we must do it together. It is time we return Oyo state to a place where we treat each other with humility, respect and dignity”.

Makinde who is an engineer said that governorship draws its strength and mandate from people’s vote noting“now is the time to join me in making a real difference”

our infrastracture to be commended and given more opportunity to continue what he is doing,” he said.

2019: ADP Edo South Senatorial flag bearer flags off campaign with Thanksgiving Mass

Leaders of the various ethnic groups who spoke at the inauguration of the group all commended Governor Okowa for his prosperity agenda for all people living in the state.

Chairman, Team Favour Zuokumor for Okowa/Otuaro 2019, Elder Owolabi Abiodun, said Okowa has done very well that was why they “see it as a privilege to join well-meaning Deltans from all walks of life, to work for his re-election, in order for him to continue the good work that he is doing.”

On his part, leader of the Ndigbo, Delta State Chapter, High Chief Anthony Ndajiuba, said, “I want to quickly say that God has ordained the re-election of Gov. Ifeanyi Okowa and no one can protest it because of the good works the Okowa-led administration has done.

Alhaji Bako Balarabe, leader of the Hausa community, assured Zuokumor of their commitment to deliver their votes to Okowa, saying they are going to give Okowa bloc votes and also vote other PDP candidates for a better future for Delta.

Innocent Odoh

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ith the 2019 General Elections scheduled to hold in a few months, the Senatorial candidate of the Action Democratic Party (ADP) for Edo South Senatorial District, Ese Owie (PhD) gathered family members, the Catholic lay faithful, friends and political associates for a Thanksgiving Mass preparatory to the formal flag-off of his Senatorial Campaign scheduled for this week.

Owie in a statement on Monday said that the Mass was celebrated by the Catholic Archbishop of the Archdiocese of Benin City and the Metropolitan See for the Ecclesiastical Province of Benin City, Nigeria, Most Rev. (Dr.) Augustine Obiorah Akubueze on Sunday 2nd of December 2018, at St. Albert’s Catholic Church, Ugbowo Campus, The University of Benin, Benin City.

In his homily, the Archbishop extolled Owie’s commitment to the service of God and humanity and encouraged him and his family to

continuously propagate the faith of the Universal Church.

Admonishing the lay faithful to be consistent in their worship of the Almighty, the Archbishop encouraged them to ceaselessly wait on the Lord as the Church commences the new Liturgical Year and the Holy Season of Advent.

At the end of the thanksgiving Mass, Owie expressed his most profound appreciation to the Archbishop for honouring his family and for dispensing his ecclesiastical blessings to all present at the Mass, the statement said.

As a show of appreciation to the Almighty for his continuous beneficence, Owie stated that he was donating Renal Dialysis Machine to the Archdiocese of Benin as a means of attenuating the challenges of patients with end stage Renal failure in the State. He also promised to provide consumables for that would ensure consistent therapeutic treatment of patients for the first one year so that patients can have access to treatment at an affordable cost.

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Changing Nigeria’s textile narrative ODINAKA ANUDU

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n the 1970s and 1980s, Nigeria had a number of textile firms across the country. The period saw the emergence of big textile firms such as Nigerian Textile Limited (UNTL), Aswani Textile, Afprint, Asaba Textile Mills, Five Star, Gaskiya, SpecoMills, Zamfara Textiles, Millet Nigeria Limited and Edo Textile Mills, among many others.

During this time, measures were taken to kick-start textile revolution in the country. Protectionists say one of the major policies that helped the industry was the ban placed on importation of textiles during and after the Civil War, which ultimately drove many investors into the industry. In 1978, the then military government further gave a boost to this industry by continuing with the ban, a policy that was to run till 1984.

This led to backward integration in the sector as many textile mills became fully integrated, even as some became spinning mills.

1980s, the Nigerian textile market had become the third largest in Africa, with over 160 vibrant textile mills and over 500,000 direct and indirect jobs. In fact, by 1985, there were about 180 textile mills in the country, employing about one million Nigerians.

Dwindling fortunes However, the fortunes of the sector began to dwindle in early 1990s. Precisely in 1994, many textile manufacturers began to feel the pinch of unstable political situation, massive smuggling and high production costs due to poor infrastructure, taxes and levies, among others.

The situation worsened in 1997, when ban on importation of textiles was lifted. There were so many outcries by industry players and wellmeaning Nigerians as they warned of the consequences of that policy.

Inferior imported products flooded the market. Consequently, many big players in the industry could not survive. Many divested to other interests while others leased their premises to other companies.

For instance, Aswani Textile leased its premises to Chellarams, manufacturer of dairy products. Afprint, on the other hand, went into oil manufacturing and car business.

Enpee Industries became a packaging industry.

Within six years, over 50 companies had closed down, while about 80,000 employees had lost their jobs. As of today, companies such as Aba Textiles, Asaba Textile Mills,

Arewa Textiles, Five Star, Gaskiya, Haffar Industrial Company Limited, SpecoMills, Zamfara Textiles, Millet Nigeria Limited, among others, have all been forgotten when textiles are discussed.

About 60 percent capacity utilisation in 1996 deteriorated to about 28 percent as of 2002. This has also deteriorated further today.

Policy intervention The democratic government of Olusegun Obasanjo recognised the need to revive the sector and consequently imposed a temporary suspension on importation of printed textiles. This was followed by eventual ban of all imported textile products as from January 1, 2004.

Secondly, the majority of the imported raw materials used in the industry were to attract low duty rate.

Furthermore, the government took cognisance of the fact that banks were reluctant to lend to players in the industry and muted the idea of setting up a revival fund for the industry.

However, this did not take off until December 18, 2009, when the government of Umaru Musa Yar’Adua formally established N100 billion Cotton, Textile, and Garment (CTG) Revival Fund. This is currently managed by the Bank of Industry (BoI), which grants loans to textile companies at a single-digit interest rate.

Present situation The CTG Fund has had positive

impacts on the textile industry.

Olusegun Aganga, former minister of industry, trade and investment, said in February 2013 that it had saved about 8,070 jobs.

However, at the moment, there are many daunting challenges staring the sector on the face. Some of these present challenges were articulated by Paul Jaiyeola Olarewaju, former director-general, Nigeria Textile Manufacturers Association (NTMAN).

“The major problem is the influx of foreign textiles into the country.

This is killing the industry. As at today, almost 80 percent of textiles in the country are imported. Though it is still under ban, it’s still smuggled,” he told BusinessDay in 2013.

A research conducted by The Economist in 2015 noted that illegally imported Chinese-made fabrics imitating Nigeria’s signature prints flood Nigeria with some Customs officials turning a blind eye to them.

The report said that dilapidated textile factories in the country’s northern city of Kaduna are what remain of the industry, which in its heyday employed 350,000 people.

According to the World Bank, textiles smuggled into Nigeria through Benin Republic each year are worth $2.2bn, as against local Nigerian production estimated at US$40m annually.

Grace Adereti, president of NTMAN, said in Lagos at a Made-inNigeria stakeholders’ meeting in 2017 that the industry needed an

enabling environment to survive.

“What we need is the enabling environment. We cannot compete with the level of smuggling and counterfeiting going on now. We used to have about 127 textile firms in Nigeria but that has come down to two or three now,” she said.

“We had the revival loans but this didn’t work because our biggest problem has never been money,” Adereti said.

Another problem faced by the sector is infrastructure problems.

Erratic power situation increases production costs and reduces competitiveness of local textiles as they are often costlier than imported or smuggled ones. But this is a general problem and not peculiar to the textile industry.

Third, the government and its do not always patronise the industry.

Revival efforts In April 2016, Aisha Abubakar, Minister of State for Industry, Trade and Investment, took a tour of few surviving textile mills in Lagos State. Abubakar visited Spintex Mills Nigeria Limited, Lucky Fibres Plc, and Nichemtex Plc, all in Ikorodu, Lagos State.

Abubakar’s mission was to ascertain the state of the industry, hear directly from key players on the challenges facing the industry and then proffer enduring solutions.

The key players narrated all their woes to the minister. They complained about smuggling, high

energy costs, import policy flip-flops and poor patronage by the public and the private sectors.

The firms earlier visited by the minister are basically rug producers and cotton processors/ exporters, which today are classified as textile firms.

Thirty-two months after the visit, these problems facing the industry are still there.

Nigeria’s lack of will to tackle smuggling head-on has been its biggest woe.

India, which began its industrial journey almost the same time as Nigeria, is today world’s largest exporter of textile products after China, with 13 percent global market share, dwarfing Germany and Italy who now come third and fourth respectively. The country’s textiles industry is estimated at $108 billion, contributing five per cent to Gross Domestic Product (GDP) and 14 per cent to overall Index of Industrial Production (IIP).

The industry attracted Foreign Direct Investment (FDI) valued at $2.41 billion between April 2000 and December 2016, creating 100 million direct and indirect jobs with over 350 textile mills working.

Like Nigeria, India has an arid land that grows cotton used by textile firms. However, unlike Nigeria whose tanneries in Kano and Kaduna are comatose owing to poor cotton seedlings and demise of textile mills, India has explored the opportunity to produce enough cotton to service textile mills and export 1,307.11 million kgs in 2015/16.

In the face of Nigeria’s quest for economic diversification and recovery, industry watchers want the government to take proactive steps to revive the industry.

Stakeholders say money only occupies 30 percent of the problem in the sector. According to those who spoke with BusinessDay, even if the government increases funding but is unable to stem imports or smuggling, the impact of the funding may still not be felt.

It therefore goes without saying that it is time the Federal Government pointed its searchlight on the bad eggs in the Nigeria Customs Service (NCS) who might be aiding and abetting the shoddy business of smuggling. This is more imperative now that the African Continental Free Trade Area (AfCFTA) is on the pipeline.

Stakeholders also say the government should mandate contractors of official uniforms to patronise local manufacturers.

Again, experts say the Federal Government needs to extend the services of AMCON to the industry.

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Strike continues: Reconciliatory meeting between NASS leadership, striking workers deadlock as strike enters day 2 KEHINDE AKINTOLA, Abuja

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egislative activities in the National Assembly may be grounded for the second day as efforts by the leadership of the Senate and House of Representatives to unlock the Senate and House of Representatives chambers proved abortive as of Tuesday night.

At the meeting held at the instance of the Senate president, Bukola Saraki, and speaker, Yakubu Dogara, the striking National Assembly workers vowed to continue with the industrial action until their demands were met.

One of the top officials of NAtional Assembly who attended the meeting disclosed that the leadership of Parliamentary Staff Association of Nigeria (PASAN) has directed all its members to converge by 8am at the lobby to further the picket-

ing, following breakdown of negotiation.

According to him, the workers were unsatisfied with the promise made by representatives of the leadership of both Chambers that funds will be sourced to pay the 28% salary increase.

Speaking earlier, senator Ahmad Lawan, the leader of the Senate who, spoke at a press briefing, exonerated members of National Assembly from the crisis.

“The protest by PASAN is not against members of the National Assembly the protest is against management of National Assembly, so it is very important that we get this right. We are only intervening as leaders in the National Assembly to ensure that the management of National Assembly and PASAN find a common ground that will have a good climate and environment that will enable us perform our legislative activities. So it is not

a protest against us, we are only coming into the picture as an intervention.”

The Senate leader assured that the leadership of the National Assembly would also address the issue bothering on the 28% salary increase, saying: “let me say that this is one of the issues we want to address as quickly and as fast as possible.

“The 28% increment supposes to be paid from the implementation of the 2019 budget. That is the position of the management that is not something that we could immediately have known without the information from the management.

“Like the House Leader had said, we have separate accounts that we manage. For the senate we have the senate account, for the House, the House has its own account and of course the management manages accounts for all the staff – PASAN that we are talking

about.

“So the management is saying that, and I’m not speaking as the spokesman for the management but what they have said in a letter written to PASAN we are quoting, that the implementation of the 2018 budget has not included the 28%, that what we received is still the 2017 appropriation and provisions.

“So I want to assume that by the time we start sitting tomorrow (Wednesday) with management and leadership of PASAN, we will find a common ground where we would fund the 28% and for practical reasons definitely nobody could have the funds immediately to pay the entire 28% for up to 10 months. But perhaps some percentage, a reasonable percentage could be part of what we could start with and subsequently the implementation will come full cycle,” Lawan assured.

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BUSINESS DAY

Edo assures inclusive development for 90,000 people in Evbobanosa, Abudu

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overnor Godwin Obaseki of Edo State has assured that his administration will collaborate with communities in Evbobanosa and Abudu to drive inclusive development for people in Orhionmwon Local Government Area of the state.

He gave the assurance during the formal presentation of the Evbobanosa and Abudu Development Plan to the Enogie, His Royal Highness, Gregory Akenzua, at Government House, in Benin City, Edo State.

He said the plan was revolutionary because it was initiated by leaders of the communities in Evbobanosa and Abudu, adding that government’s role is to provide an enabling environment to ensure their aspirations come to reality.

The governor noted, “When we got the draft plan, we directed the Ministry of Physical Planning and Urban Development to review what was submitted.

This is commendable and I urge other communities to emulate this.”

He said the planned development became impor-

tant as his administration intends to stem rural-urban drift through policies which will encourage evolution and development of many other satellite cities outside Benin City, in Edo South and other senatorial districts.

“Edo is very blessed with almost 19 million hectares of land. But as we speak today almost 50 per cent of the population are in Benin City, putting pressure on the amenities and structures, which is not ideal for the growth of cities,” he added.

The governor said Abudu had one of the foremost Teachers’ College in the country which served the entire Mid-West region and beyond, attracting people to the city, noting that his administration is making effort to re-establish a Teacher Training College with three schools, with one in Abudu, Igueben and Auchi.

He added that the Universal Basic Education Commission (UBEC) has promised to build a digital training laboratory, with construction scheduled to commence next year.

CBN opens December NGO seeks quicker forex sale with $210m passage of ‘digital rights HOPE MOSES-ASHIKE

I L-R: Motola Oyebanjo, head, corporate communications, Lafarge Africa plc; Temitope Oguntokun, head, sustainability and corporate brand, Lafarge Africa plc; Toni Kan, CEO, Radi8 Limited; Bruno Bayet, chief financial officer; Lafarge Africa plc, and Folashade Ambrose-Medebem, director, communications, public affairs and sustainable development, Lafarge Africa plc, during the presentation of Lafarge Africa’s Best company in Education at the 2018 SERAs Awards in Lagos.

2019: Over 16,000 N-Power beneficiaries declare support for Buhari in Ondo YOMI AYELESO, Akure

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head of the 2019 presidential election, no fewer than 16,000 members of the Federal Government’s Npower Volunteer Corps have declared their support for the re-election of President Muhammadu Buhari The beneficiaries, decked in white shirts and black skirts and trousers, marched from the popular Oba Adesida Road to Gani Fawahenmi Arcade Ground along Igbatoro Road in Akure, the Ondo State capital, campaigning for Buhari.

The youths, who are between ages 18-35 years, said they would remain grateful

to the Buhari’s administration for initiating the N-Power programme, which according to them has helped in reducing unemployment through the creation of job opportunities.

Addressing the youths, the state governor, Oluwarotimi Akeredolu, said he was delighted that the beneficiaries of N-Power in Ondo State were the first in Nigeria to openly declare and campaign for Buhari’s second term.

The governor urged the youths to take their campaign for Buhari’s re-election to the nooks and crannies of the state.

According to Akeredolu, that is the only way to say “Thank You” to the administration of President

Buhari, who initiated the programme for the teeming youths in Nigeria.

The governor said, “President Buhari and his Vice, Professor Yemi Osinbajo have fulfilled their promise.

People who can keep promises are not many.

“We must be grateful to Mr. President for this great gesture and the only way to say “Thank You” to Buhari is to ensure we talk to our parents, friends and siblings to cast their votes for Buhari by February 16, 2019 so that the President will take us to the “Next Level.”

“When you invest in the youths, you have invested in the nation. We won’t be tired. We did it in 2014, so we

are prepared for another race ahead of us.

“The current beneficiaries of N-Power should not think about themselves alone. Others must come next year, others will come 2020. How will they come if there is no continuity?

“We are thanking the President and the Vice-president because one good turn, deserves another.”

The event was attended by the deputy governor, Agboola Ajayi, senior special assistant to the President on Job Creation and Youth Employment, Afolabi Imoukhuede, special adviser to the governor on Public and Intergovernmental Relations, Bunmi Ademosu, and other members of the state executive council.

n its first intervention in the foreign exchange market for the month of December, the Central Bank of Nigeria (CBN) on Tuesday injected the sum of $210 million in the inter-bank foreign exchange market.

Authorised dealers in the wholesale segment of the market, in Monday’s sales, received $100 million while the Small and Medium Enterprises (SMEs) and the invisibles segments were allocated the sum of $55 million each.

Isaac Okorafor, CBN director in charge of corporate communications department, confirmed the figures and restated the bank’s resolve to meet genuine customers’ request in the various segments of the market, especially in the preceding period of the yuletide and in the New Year.

Godwin Emefiele, governor of CBN, while delivering the annual lecture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, on Friday, had warned speculators not to bet against the naira.

Despite the uptick in the exchange rate last week, Emefiele said the bank had enough reserve to defend the naira.

bills’ to strengthen corruption fight HARRISON EDEH, Abuja

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aradigm Shift, a nongovernmental organisation, is seeking the quicker passage of ‘digital rights and freedom bill’ to strengthen legal instruments that will enhance the fight against corruption.

The organisation also made case for the passage of the Federal Audit Bill, Mutual Agreement Bill, Anti-money laundering bill and other legal instruments that would strengthen the framework for Nigeria’s fight against corruption.

Adegoke Adeboye, the programme manager of the Paradigm Shift, speaking on the bill on Tuesday in Abuja, said: “The bill is basically saying that the right that people enjoys offline would also be enjoyed online but then bills now takes time to also delve into issues that are peculiar to the online environment issues such as surveillance and holding those who blow false alarm responsible.”

According to the programme officer, “The Digital Rights and Freedom Bill recently passed by the National Assembly provides that governments shall recognise the power of digital platforms and use it to democratic advantage in particular to reinforce democratic processes, drive efficiency, foster innovation, empower public sector workers and expose corruption.”

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Stakeholders, corporates deepen fight against HIV/AIDS scourge Over $800m lost to breaches on Trans Forcadoes Pipeline KELECHI EWUZIE & SEYI JOHN SALAU

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lour Mills of Nigeria plc says it will continue to drive extensive workplace advocacy on steps to eradicate the spread of the Acquired Immunodeficiency Syndrome and Human Deficiency Virus (HIV/AIDS).

As members of Nigerian Business Coalition Against AIDS (NiBUCAA) have underscored the need for collective effort involving government, citizens and the media to check HIV/AIDS in the country. NiBUCAA is the voice of the private sector against the disease.

Figures from the United Nations programme on HIV and AIDS indicate that Nigeria has the second largest HIV epidemic, with over 3.1 million people including children who are living with the virus.

Paul Gbededo, group managing director, Flour Mills of Nigeria observes that the high number of Nigerians living with this virus is particularly sad to note, especially when we consider that there are several more that are unaware of their status.

Gbededo, while speaking during the enlightenment and sensitisation walk organised by the company in part-

nership with the Society for Family Health to commemorate World AIDS day in Apapa, Lagos, reiterates the need for workers to know their HIV status at any point in time.

Speaking on the Theme ‘Know your Status,’ the managing director observes that it is quite appropriate when we consider the current state of the epidemic in Nigeria.

Funke Adewoyin, regional manager, Society for Family Health, South West, observes that unlike in the past where HIV status was a hidden thing, today the advent of mass media enlightenment campaign has created awareness.

High point of the programme was health walk and the setting up of several HIV testing and counselling points around its FMN facilities to avail its workers an opportunity to get tested.

Further more, members of NiBUCAA stated this during its maiden AIDS Walk to commemorate 2018 World AIDS Day. The walk, which commenced at Costain Bus Stop and terminated at the National Stadium, Surulere, saw NiBUCAA member companies and partners saying that such collective effort would go a long way in addressing the spread of the disease.

Shaibu Musa, execu-

tive committee chairman of NiBUCAA, said issues of HIV/ AIDS demand attention and support from everyone, from government to business establishments, citizens and the media. “The 2018 World AIDS Day is particularly significant.

This year’s commemoration is the 30th edition of the international day set aside to raise awareness and ignite conversations on the scourge and effects of HIV/AIDS in communities and workplaces,” Musa said.

He opined that, collaborative efforts and increased investments in awareness, provision of HCT services and antiretroviral therapy (ART) to infected persons would help to reduce the country’s HIV/AIDS burden.

“The theme of this year’s commemoration, Know Your Status, is a call to action.

Although efforts are being made to make antiretroviral therapy (ART) available to affected pregnant women, we are optimistic that improved investments in awareness and getting citizens to know their HIV status would help to reduce the country’s HIV&AIDS burden. HCT services should be made accessible to every citizen just as antiretroviral therapy (ART) should be within the reach of infected persons. “

...as NNPC clarifies termination of contract OLUSOLA BELLO & HARRISON EDEH

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he loss of over 11 million barrels of crude oil, which translates to over $800 million of crude through breaches on the Trans Forcadoes Pipeline (TFP) have resulted in the termination of the surveillance contract by NNPC and its Joint Venture partners.

According to the NNPC, faced with massive losses in projected revenue, stakeholders in the TFP which today account for daily production throughput of over 250,000 barrels of crude oil were unanimous in the decision to seek better ways of ensuring reliability and availability of the line.

The management of the Nigerian National Petroleum Corporation (NNPC) said this when it threw more light on the reported award of oil infrastructure surveillance contract to an indigenous firm, Ocean Marine Solutions, for the protection of the strategic 87-kilometre Trans Forcados Pipeline (TFP).

It stated that no responsible business entity or government would allow this level of hemorrhage to subsist without acting swiftly to

protect the enterprise from further bleeding.

The NNPC in a clarification by its group general manager, group public affairs division, Ndu Ughamadu, explained that the decision to assign the TFP surveillance package to Ocean Marine Solutions was reached after consideration of huge losses on TFP and rigorous appraisal of the company’s impressive record of performance on the Bonny-Port Harcourt and Warri-Escravos crude evacuation lines.

The Corporation clarified that the new contract, which requires the contractor to pay for any damage to any inch of pipeline under its watch, offered immeasurable benefits to the NNPC, its Joint Venture partners, the host communities and the entire Federation.

According to the NNPC, faced with massive losses in projected revenue, stakeholders in the TFP, which today account for daily production throughput of over 250,000 barrels of crude oil were unanimous in the decision to seek better ways of ensuring reliability and availability of the line.

“In 2018, we lost over 60 days of production due to

incessant breaches on the TFP despite having a security contract in place. In terms of production numbers, this translates to over 11 million barrels of crude oil which on face value equates to over $800 million in lost revenue to all the stakeholders in the matrix, which includes: NNPC, its Joint Venture partners and the Nigerian Federation,’’ the Corporation said in a statement issued on Tuesday.

The NNPC stated further that no responsible business entity or government would allow this level of haemorrhage to subsist without acting swiftly to protect the enterprise from further bleeding.

The Corporation said based on the above scenario, Ocean Marine Solution was assigned to handle the TFP under the proof of concept arrangement, which was yielding great results in the Bonny-Port Harcourt and Escravos-Warri crude evacuation lines.

Under this package, the surveillance company is obligated to protect the lines and bear the cost of repairs if and when there is any breach to the pipeline.

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NEWS States, LGAs to collaborate on ease of doing business HARRISON EDEH, Abuja

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igeria’s minister of industry, trade and investment, Okechukwu Enelamah, says states and local government administrators must be at the forefront to drive Federal Government’s ease of doing business initiative, which is key in driving government’s diversification drive.

Enelamah made the call while speaking at the 10th meeting of the National Council on Industry, Trade and Investment, with the theme, “Ease of Doing Business: The Role of States and Local Governments,” which took place in Umuahia, Abia State.

The minister remarked in a statement that President Muhammadu Buhari had shown strong political will by establishing and supporting the Presidential Ena-

bling Business Environment Council (PEBEC), which had the mandate of removing constraints and bottlenecks in doing business in Nigeria.

He confirmed further that the President’s signing of the Executive Order 001 promoted transparency in driving the ease of doing business agenda.

Speaking further on recorded progress on ease of doing business, he said: “Business registration in Nigeria can now be concluded within 48 hours with the automated platform by the Corporate Affairs Commission (CAC),” On trading across borders, the minister listed some of the completed reforms to include reduction in import documentation requirements from 14 to 8 and export documents from 10 to 7, introduction of advance cargo manifests and scheduling of joint physical examination anchored by

the Nigerian Customs Service.

Other reforms include the passage and signing into law of two bills to ease access to credit for MSMEs. “These two Bills are the Secured Transactions in Movable Assets Act 2017 and the Credit Reporting Act 2017,” he said.

He said the Bank of Industry (BoI) had “reviewed its credit processes to customers with a view to reducing the turn-around time associated with loan applications and approvals. BOI has also reformed loan application process to provide clear and easily accessible information to the public on processes, timelines, fees and conditions.

“Technologies were deployed to improve service delivery in the Ministries in the areas of SME platform, digitizing and simplifying the provision of government services”.

Hope brightens for improved security in Edo as state unveils security architecture, trust fund

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do State governor, Godwin Obaseki, is set to launch the state’s new security architecture, which defines roles for and relationships among the various security agencies in his administration’s resolve to tackle insecurity head-on and rid the state of violent and other crimes.

The event will also feature the launch of a Security Trust Fund, for which N2 billion has been set aside in the state’s 2019 proposed budget, the unveiling of newly trained personnel and equipment procured by the government to raise the bar in the fight against all forms of crimes in the state.

According to the special adviser to the governor on media and communication strategy, Crusoe Osagie, “The unveiling which is scheduled for December 13, will set the

stage for a new era in the state in which residents will work closely with security agencies, which are being retooled to better perform their functions, which includes ensuring the safety of life and property, to bolster investor confidence across the state.”

Osagie said, “Already procured for unveiling by the state government are three Armoured Personnel Carriers (APCs); 90 patrol vehicles; 50 patrol cars and 40 pick-up patrol vans; 30 motorcycles and three ambulances.

“They are all fitted with digital communication equipment for real time information sharing among the various security agencies.”

He said manpower would be drawn from the Nigeria Police Force; the Military; Department of State Services; Nigeria Security and Civil Defence Corps and the state’s Public Works Volun-

teers (PUWOV) scheme.

The governor’s aide explained that 1000 members of PUWOV would support men and women of the various security agencies in executing the goals set in the security blueprint.

“The first batch of 200 PUWOV personnel are being trained at the Police Training School (PTS), Ogida, and another 800 volunteers are to be trained before the launch date.

“They will be kitted in the approved uniform and will form bulk of the first batch that will be unveiled at the launch date of December 13,” Osagie said.

To kick-start the Security Trust Fund, he said the governor has set aside N2billion in the 2019 proposed budget, which will be supported by private companies in the state and other organisations.

Security threats: FG orders changes in operational commands STELLA ENENCHE, Abuja

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he Federal Government has ordered an immediate change in the operational commands of Operations Lafiya Dole in the North East, Delta Safe in the Niger Delta, Sharan Daji in Zamfara and Katsina states, as well as Awatse in the South West.

Minister of defence, Mansur Dan-Ali, gave the directive in a statement by his spokesman, Tukur Gusau, a colonel, on Monday.

The statement further quoted the Dan-Ali to have directed the Chief of Army Staff (COAS), Lieutenant General Tukur Buratai, to remain in the North East until the security situation improved.

According to Gusau, the directives, fallout of a meeting the minister had with the Chief of Defence Staff (CDS), General Gabriel Olonisakin, and other Service Chiefs.

“The Honourable Minister of Defence, Mansur Muhammad Dan-Ali met with the CD8 and Service Chiefs today Monday 3, December 2018, at the Ship House, Headquarters of Ministry of Defence, and consequently directed the Chief of Army Staff to remain in the North East until security situation improves.

“Similarly, the General Officer Commanding the 8 Division, Nigerian Army was also directed to relocate his Tactical Headquarters from Sokoto to Gusau, Zamfara State, to oversee the conduct

of Operation SI IARAN DAJI. “The Chief of Defence Staff and Chief of Army Staff were also mandated to effect changes in the operational commands of Operations Delta Safe in the Niger Delta, Lafiya Dole in the North East, Sharan Daji.” in Zamfara and Kalsina states and Awatse in the South West,” Gusau said.

He noted the decision was to enable the military brass tackle the Boko Haram activities in the North East, and other security challenges across the country.

In the meantime, the statement added that President Muhammadu Buhari had directed the procurement of some critical equipment to deal with the immediate threats.

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Amosun disburses N72m for community projects in Ogun

EU, World Bank, NAPTIP hail Edo on campaign against human trafficking ...EU commits $1bn to stem irregular migration in Africa

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RAZAQ AYINLA, Abeokuta

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rompted by the mission to extend tangible development to every nook and cranny of Ogun State, Governor Ibikunle Amosun has disbursed N72 million cheques to some communities as part of grants meant to cover expenses incurred on social services provided during the year as a way of self help by the communities.

The disbursement to the communities under the state government grants-inaid programme serves as part payments for expenses spent on provision of social services, such as grading of community roads, sinking of boreholes, construction of mini bridges, electrification, security, among others.

Speaking at the presentation of cheques to outstanding communities, numbering about 349 communities spread across the state at the World Community Development Day celebration organised in Abeokuta on Tuesday by the Ministry of Community Development and Cooperatives, Governor Amosun declared that the fund was disbursed to the outstanding communities to support their self help projects earlier undertaken in their various communities.

The governor, who noted that the role of CDAs to the development of the state cannot be over emphasised going by the complementary role they play in developing the state, said, “The capacity building initiative of the CDAs towards having good community leadership in our communities has also helped in maintaining the peaceful atmosphere that is prevalent in our dear State.”

L-R: Ifeoma Anagbogu, acting permanent secretary, federal ministry of women affairs and social development; Aisha Abubakar, minister, federal ministry of women affairs and social development, and Aishatu Sadauki, director, MTN Foundation, during the celebration of International Day of Persons with Disabilities in Abuja.

Shun acts that can trigger civil war, Ambode tells Nigerians JOSHUA BASSEY

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overnor of Lagos State, Akinwunmi Ambode, has called on Nigerians to refrain from acts that could cause unrest, as the country cannot afford to travel that path again having survived a civil war.

Governor Ambode spoke at the Lagos House in Alausa, Ikeja, while launching the 2019 Armed Forces remembrance emblem appeal week, saying the period was a reminder that the unity of the nation must remain paramount above personal interest.

According to Ambode, the Nigerian Armed Forces veterans and fallen heroes did not fight for the sovereignty of the nation based on their tribe, ethnicity and religion. “Therefore Nigerians must not allow the

Gr8Jobsng conference aims to tackle employability issues in Nigeria MBATA JEREMIAH

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fforts to seamlessly tackle employment and employability issue in Nigeria have been placed on top gear as Gr8Jobsng, a recruitment and HR platform in Nigeria, engages youth on employability and job hunting.

This was the outcome of a recent conference held in Lagos on Monday with the theme ‘Project Employ.’

The Gr8Jobsng platform, launched in 2016, has been keen on solving employment issue facing Nigeria, connecting job seekers to employers.

Omo Odike, managing director of Gr8Jobng and U Connect, says the event

Wednesday 05 December 2018

is one of the initiatives Gr8Jobsng has for improving employment and employability in Nigeria, saying the platform is keen on educating youth on the right skills to possess to be employable.

“Gr8Jobsng has taken a proactive step as a private company to actually rescind the employment as well as the employability issue in the front burner of the society and by doing this event, which is a career endorsement, we are not only teaching all the job seekers the skill that is required to actually get a job but going a step further to actually interview them for actual jobs as 20 percent of the attendees will get a job from this process,” Odike says.

things that brought us together to cause a conflagration of incitement that want to disintegrate our nation,” he said.

The governor, who was represented by his deputy, Idiat Adebule, alluded to the electioneering period and its associated civil unrest, noting that the peace and unity of the country must not be compromised in the course of the exercise.

“As we head into the electioneering year, I appeal to every candidate vying for a position, party members and youths to look beyond self gratification that could lead to civil unrest and lawlessness in the society,” he said.

Launching the Armed Forces emblem, Ambode said it was yet another reminder for Nigerians to reflect on the sacrifices made by gallant heroes, some of whom paid the ultimate

price to keep Nigeria indivisible nation. He said the occasion was a clarion call for everyone to show serving military men, veterans and families of fallen heroes that their services and sacrifices to the nation were not in vain but greatly appreciated.

“Let us show love and compassion to them for the freedom we all enjoy is depravation to others. In doing this, we inspire and motivate them to give their all in the protection and security of our dear country.

“I hereby implore all to treat our ex-service men with respect and donate generously in the support of the Nigerian legion. Let us mobilise and extend more support for the benefits of the veterans. Let us join hands with the government in improving the welfare of the families of our fallen heroes,” Ambode said.

he European Union (EU), the World Bank and the National Agency for the Prohibition of Trafficking in Persons (NAPTIP) have commended Edo State government’s unrelenting and well-articulated effort to curb human trafficking and illegal migration in the state.

The stakeholders disclosed this at the second Roundtable Dialogue on Managing Migration Through Development Programme (MMDP), a twoday event that kicked-off on Tuesday in Benin City, the Edo State capital.

In his address, Edo State governor, Godwin Obaseki, said all efforts by local and international partners in the fight against irregular migration needed to be synergised to achieve the desired results.

Obaseki said a coordination matrix designed by state and her partners would create a platform for better collaboration and cooperation among stakeholders, avoid duplication of efforts and improve efficiency in migration management.

He said the state government had in the last one year, entered into a collaboration with key partners which has significantly changed the narrative with regard to the fight against the scourge.

“Since the launch of Round Table Dialogue in Abuja in May this year, several partnerships have been birthed which have contributed to the success stories,” he said. The governor noted that the state government will continue to demonstrate political will to tackle the problem of human trafficking and illegal migration by constantly finding a common ground and seek-

ing more collaborations with other stakeholders.

Minister of Foreign Affairs, Geoffrey Onyeama, who was represented by Martin Eze, said resettlement of returnees was at the heart of the Federal Government’s intervention programme.

He appealed to foreign partners, especially countries in the European Union to smoothen their visa issuance process so that eligible Nigerians, who have genuine reasons to travel abroad are not frustrated.

In his keynote address, EU Ambassador to Nigeria and the Economic Community of West African States (ECOWAS), Ketil Karlsen, expressed appreciation for efforts by President Muhammadu Buhari and Governor Obaseki, which have seen Nigeria drop to the sixth position among countries whose citizens engage in irregular migration.

Karlsen also commended Edo State government for launching the MMDP Coordination Matrix, noting that the EU would not fund any state operating in isolation without involving local stakeholders.

“We are doing better now by being transparent and including our activities in the matrix and by guaranteeing that every step we take will be in that spirit,” he said. Karlsen said the European Investment Bank has expressed willingness to increase investment in funding economic programmes in Africa to $1 billion to empower youths and discourage irregular migration.

He said a holistic approach and a legal framework has been identified to capture the return of illegal migration via investment in migration institution, youths and jobs.

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Stakeholders share insight in enabling steady electricity in Nigeria

… as Nigerians are willing to pay for steady power supply …GENCO to start selling electricity to Burkina Faso ENDURANCE OKAFOR

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xperts from Nigeria mainstream energy sector, financial space, advisory and power distributing arm, have come to a consensus that the issues of distribution capability, financing and cost reflective tariffs must be addressed, while taking advantage of the opportunities for off-grid solutions to enable steady power supply.

According to AIION, an independent company funded

by Royal Dutch Shell, about 120 million Nigerians do not have access to electricity or have less than 4 hours a day.

This translates to 14.2 million households and 4 million SMEs who do not have access to electricity (currently off-

grid) in the country.

Wiebe Boer, CEO of AllON, said, “Off-grid is key to meeting the power needs in Nigeria, and the off grid renewable sector will produce the next phase of billionaires in Nigeria.”

This was disclosed to BusinessDay at PwC’s annual power roundtable held last week in Lagos. The ninth edition of the annual event had this year’s theme: Power Play: Working together to achieve success.

Chinua Azubike, CEO of Infra Credit, the guarantor of the first corporate infrastructure bond, reiterated, “Funding is critical if we are to achieve stable electricity.”

BusinessDay survey revealed that the challenges of the GENCOs that hinder the

power generating company from meeting the demand of Nigerians include: limited gas availability, low electricity tariffs that cannot cover basic operating cost, coupled with the inability of Transmission Company of Nigeria (TCN) to pay GENCOs on time.

Welela Dawit, CFO, GE, said during the panel session at the PwC roundtable, “Having investor friendly policy can attract investors into the Nigeria power sector.”

The state-owned TCN with transmission capacity of about 12,300km does not cover many areas of the country due to outdated transmission systems, which experiences about 40 percent losses coupled with frequent outages, as compiled from BusinessDay survey.

The distribution arm, the DISCOs, on the other hand have issues of poor metering, low collection rate, which poses financial challenges, and also 50 percent of distribution is lost through theft.

Speaking on cost reflective tariffs, Boer said Nigerians were willing to pay for power supply due to the country’s performance in willingness survey, but the issue was the guarantee of steady and stable electricity.

“Nigerians are willing to pay 3-4 times what Indians pay for power and twice what East Africa pays,” Boer said.

Lamu Audu, managing director/CEO of Mainstream Energy Solutions Limited, said, “Nigerians are willing to pay for electricity as far as they get good service.”

Fellows say ‘Accounting’ not yet taught in 56 Nigerian universities IGNATIUS CHUKWU & INNOCENT ETENG

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ellows of Accounting Education have bemoaned the nonavailability of the subject in 56 Nigerian universities, saying the 45 professors of Accounting in 101 Nigerian universities have been over-worked.

The fellow and outgoing president of the Nigerian Accounting Association, Suleiman Aruwa of the Nasarawa State University in Keffi, who pointed this out in a valedictory speech in Port Harcourt, Rivers State, on Monday, said there had been only 25 inaugural lectures in Accounting by the 45 professors.

He said: “NAA is encouraging more scholarship and sponsorship of professional chairs.”

Turning to the Accounting educationists that con-

Building organisational resilience as catalyst for sustained HR practice SEYI JOHN SALAU

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s professional organisations prepare for the future of work by adjusting to disruptive technological challenge of big data, analytics, and artificial intelligent (AI), it is imperative that Human Resource (HR) managers promote an open dialogue with the workforce about the future to ensure diverse perspectives are represented and people feel part of the journey.

This future thinking about the nature and future of work will allow HR managers develop programmes that enable workers displaced by technology to be re-skilled or redeployed internally. However, HR managers must be

honest about what is important, and provide a sense of transparency and honest dialogue to employees, in the face of job disruption and change.

“Preparing for the future requires action today. Companies and individuals that embrace the new realities, recognise the urgency and work to deal with change will have a powerful advantage,” Olusola Adewole, director, people and organisation advisory at PricewaterhouseCoopers (PwC), said.

Adewale, who was the guest speaker at the 31st induction ceremony of the Chartered Institute of Personnel Management on Nigeria (CIPM) themed ‘Preparing for the new World of Work,’ said as the world of work was

changing, HR’s role in guiding organisations towards the future was also changing; hence there was a need to create a competitive advantage through a more engaging people experience.

According to Adewale, the engaging experience must be capable of tackling burnout and foster vitality, as “HR professionals should nurture agility and adaptability. Support intrapreneurship among employees, builds social resilience for employees, and provides autonomy among workers.”

HR practitioners must build understanding of technological change and its implications. Therefore, practitioners should integrate HR into technology evaluation and planning from the outset

verged at the Ignatius Ajuru University of Education (IAUE) in Port Harcourt for the annual general meeting and election of new executives, Aruwa revealed efforts being made to review the syllabus and packages in the teaching of Accounting to meet modern and global needs of an accountant who he said is now an economic planner, adviser, and financial strategist in the workplace.

He said: “Accounting of yesterday cannot help us today. We want to review this and find ways towards sustainable development goals (SDGs) in Nigeria. We as accountants need to think through because Accounting alone will not help Nigeria but we must know Economics, Geology, and other strategic subjects. That way, Accounting will contribute to national development.”

Gage Awards to spotlight the best in digital industry

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L-R: Kofo Tunji-Olagunju, general manager, external relations, Oando Energy Resources; Geroge Osahon, chairman, Energia Limited board of directors; Adaeze Moedu, representing zonal controller, Department of Petroleum Resources; Freeman Fregene, commissioner for oil and gas, Delta State; Emeka Ene, member, Energia Limited board of directors, and Leste Aihevba, managing director, Energia Limited, during the commissioning of the newly built Ada Palace Complex, Obodougwa, Delta State, among other projects by the Energia/Oando Joint Venture in Delta State.

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he maiden edition of the Gage Awards, slated for the second quarter of 2019, will spotlight the very best in the digital industry as it impacts the Nigerian economy, the award organisers say.

The award seeks to recognise influencers, websites, digital campaign that has helped create market share for brands, social change campaign, entertainment, apps, content, among others.

Created specifically for the digital industry to help spark up the pace of innovation and growth in the Nigerian ecosystem, the Gage Awards concept was presented to core practitioners in the industry at the Digital Marketing Conference held in Lagos recently, where the organisers said it aims to be the biggest and most respected recognition in the

Nigerian digital space.

“The Gage Awards process is very thorough, from the nomination to eventual selection of awardees. It involves a process audit by one of the top four management companies in the world, an academy that includes representatives of over 5,000 digital practitioners and accomplished individuals in related fields, including the audience that consumes these services or content,” Goke Buraimo, a representative from Gage, said.

“Twenty-one awards will be given out on the night in five key areas – Entertainment, Inspiration, Innovation, Information and Business,” Buraimo said.

The Digital Marketing conference had in attendance over 400 practitioners, including some high profile facilitators.

DPR warns LPG operators to adhere to SOP or lose licences FRANCIS SADHERE, Warri

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epartment of Petroleum Resources (DPR) has warned operators of Liquefied Petroleum Gas (LPG) to adhere strictly to the Standard Operating Procedures (SOP) of the regulatory agency or lose their licences.

Asuquo Antai, operations controller, DPR, Warri zonal office, gave this warning at the weekend at the “2018 DPR/ LPG Marketers Stakeholders Forum” in Warri, Delta State.

The theme of the forum was: “Stakeholders Relationship Building and Management: Promoting a Safe and Sustainable Utilisation of LPG.” Antai stressed that all licences of LPG operators without certified SOP shall

henceforth be rejected by the regulatory agency.

Antai, however, assured the LPG operators of the regulatory agency’s commitment to engaging all stakeholders with a view to promoting the efficiency and security of supply of the product in the country. Antai, who was represented by Ogbe Nicholas of the DPR, also appealed to the Federal Government to improve awareness on the use of LPG to boost its consumption in line with its aspirations.

He said a lot of people do not use the cooking fuel (LPG) because of the fear of the high risk associated with its usage. It is easier and safer to harbour gas than electricity, which virtually about 80 percent of Nigerians are comfortable with, he said.

The DPR controller said the theme was chosen in line with the Federal Government aspiration to grow LPG investment and gas domestication in the country.

“As a domestic cooking fuel, LPG presents valuable opportunity to combating climate change, reduced deforestation and improved community health, economy and livelihood.

“LPG has a relatively low emission when compared to other cooking means like kerosene, firewood and others,” he said.

He noted that despite the huge natural gas reserved in the country, and the various interventions by the Federal Government in the LPG sector, the use of cooking gas had not been fully realised.

BUSINESS DAY

Opinion

Franklin Nnaemeka Ngwu (PhD)

Dr. Ngwu is a Senior Lecturer in Strategy, Finance and Risk Management, Lagos Business School and a Member, Expert Network, World Economic Forum. E-mail: fngwu@lbs.edu.ng

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n their campaign plans, both President Buhari and Alhaji Atiku Abubakar promised to create millions of jobs to address our frightening insecurity and unemployment situation.

However, their lack of details on how the jobs will be created is worrisome and creating the impression that it is just one of the campaign promises that might not be fulfilled. This should not be so given that our economy is littered with many but untapped and easy opportunities that can create million of jobs over four years with over 1 million jobs achievable in 6 months. Most interestingly, the jobs can be created with limited expenditure and even with our present state of infrastructural development.

All that is required is the proper and innovative understanding of a wealth redistribution framework through which job creation strategies can be crafted and implemented. In a simple economics terms, there are many ‘demands’ and ‘supplies’ that can be connected to create a market (and jobs) in virtually every sector of the Nigerian economy. While in some instances, some of these demands and supplies already exist but have not been properly understood and upgraded to create jobs, in other situations, they are absent but can easily be

The Public Sphere

Chido Nwakanma Nwakanma is a Visiting Member of the BusinessDay Editorial Board and serves on the Adjunct Faculty at the School of Media and Communication, Pan Atlantic University, Lagos. Email chidonwakanma@gmail.com.

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do State Governor Godwin Obaseki broke with niceties and elite consensus recently when he walked out from his office the managing director of Benin Distribution Company, Mrs Funke Osibodu. The chief executive of one of the 11 Discos licensed to ensure electricity reaches citizens entered the office as part of an entourage visiting the Governor. Obaseki was bitter over poor power supply in Edo State and was frontal in expressing his disap-

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news you can trust I wednesday 05 december 2018

PMB & AA: How to create 1 million Jobs created. Most helpfully, some of the services through which the jobs can be created are already provided for within our Laws. The main task will be for the government to encourage and ensure that both the private and public sectors comply with the laws.

In this contribution, I will focus on the Communication Sector of the economy to explain how over 250,000 jobs can be created within 6 months. In subsequent articles, I will explain how over 8 million jobs can be created from the agricultural and manufacturing sectors; 50,000 jobs from the Sports Sector; 150,000 from the Transport Sector and 100, 000 from the Security Sector. Another 500,000 jobs can be created within 1-2years from Housing, Transport, Education and other service sectors.

The over 250, 000 jobs in the communications sector can be created through the further restructuring and revival of Nigeria Postal Service (NIPOST) and other related agencies. This can be achieved through the innovation of strategies that will ensure that NIPOST and other agencies deliver at least 10million items (letters and packages) every day in Nigeria. I am aware that this idea might be dismissed with the argument that the world is going paperless due to the advancement in information technology.

I will return to this point shortly but it might be important to note that the UK Postal Service, Royal Mail delivers on average, over 60 million items (letters and parcels) every day except Sundays. Employing about 161, 000 employees and delivering over 20 billion items annually, it contributed about £10.8billion (about N5trillion) to the British economy in 2016. With a revenue of about £9 billion in 2016/17, it

generated a profit of about £712 million (N331 billion). This shows that a letter delivering company generates revenue almost half of the 2018 Nigerian budget and it is richer than the entire south east and north central states of Nigeria using their internal generated revenue. The German Postal Service, Deutsche Post delivers about 70 million letters every day, six days in a week. With revenue of about 57billion Euros in 2017, it is one of the largest employers of labour in the world with about 520,000 employees. While UK has a population of about 64 million people, Germany is about 81 million and they are obviously countries with better and higher advancements in information technology.

Achieving this easy job creation opportunity in Nigeria is very possible due to the untapped opportunities and benefits that both the public and private sectors will get through the usage of postal service. What is required is the creation of about 1million post codes (addresses) in every state of Nigeria and then the detailed and convincing presentation of the inherent opportunities through which the demand and supply of postal services can be generated. With good understanding of the related issues, a more comprehensive national data can be created which will help security agencies in intelligence gathering and management. It will also enhance financial sector development and inclusion.

Interestingly, the jobs can be created with limited government expenditure. The government investment will be for the initial start-up especially the purchase of mail machines. To get the 250,000 people, NIPOST will be required to recruit about 6,750 people from every state and FCT.

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Achieving this easy job creation opportunity in Nigeria is very possible due to the untapped opportunities and benefits that both the public and private sectors will get through the usage of postal service. What is required is the creation of about 1million post codes (addresses) in every state of Nigeria

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The jobs I am talking about are jobs that will guarantee at least N40, 000 every month for each employee. To ensure productivity, the monthly salary should be calculated and paid based on the actual number of hours worked by the employee with N200.00 suggested as a starting hourly wage.

To achieve a quick success, the Government will need to lead a robust engagement of the relevant agencies to encourage and ensure the enforcement of the relevant laws to generate about 10 million letters that must be delivered every day at the price of N100 for a normal first class letter (324 x229mm envelope).

The target will be that all first class letters must be delivered within 48hrs of postage starting with all state capitals and FCT. This will translate to daily revenue of 1billion naira and about 26 billion

every month excluding Sundays.

It is a business with potential annual revenue of over N312billion. Using an average monthly wage of N40, 000 for each of the 250,000 potential employees will give a total monthly wage of about N10billion. This will give a balance of about N16 billion every month which can be used for operational and administrative costs, savings and revenue to the Federal Government possibly to pay back the initial set-up costs.

Saving 10billion every month will give N120billion every year which can be used for other job creating ventures.

But the question is if it is possible and achievable. Yes it is and can be started by requiring both public and private corporations to comply with existing laws and the new ones to be created. For instance, the banks are required by law to send bank statements every month to their customers for every account held by the bank. As we have about 40 million bank accounts in Nigeria, this will give about 40 million letters every month to NIPOST. I am aware that the banks presently prefer to send electronic statements to customers and have almost phased out sending out paper statements except on special request. This should not be so and should be reversed with the customer allowed to choose between paper and electronic statements. The banks prefer the electronic form because of its cost saving benefits and their limited willingness to effectively contribute to our development and job creation efforts.

It should be made a law that every paid employee (private and public) in Nigeria should be sent a wage/payment slip or letter every month. I am not sure of the total number of Nigerians employed in

both private and public sector but I am confident that this policy will create a further 50 million letters every month. As we have over 100 million mobile phone subscribers in Nigeria, the Nigerian Communication Commission (NCC) should be given a target to get the Telecommunications companies to make about 50 million subscribers ‘a pay monthly contract packages’. This will require the telecommunications firms to send a breakdown of the bills to every of the 50million customers every month and as a result create additional 50 million letters every month for NIPOST. Even though I don’t have the total number of shareholders in Nigeria, I am confident that this policy should be able to generate about 1million letters every month for NIPOST. Other ways through which letters can be generated for NIPOST include: All Universities, Secondary and Primary schools in Nigeria should be made to send the results of the students and other correspondences to the students’ parents by post. This should expectedly be able to generate about 2million letters every month.

The politicians especially the local, state and federal legislatures should be encouraged to communicate their activities and performances to their constituencies through post. I am very confident that given the nature of political competition in Nigeria, this will be very easy to stimulate and expectedly should have the potential of generating at least 10million letters every month for NIPOST. This is in addition to the opportunity for campaigning for elections through letters that this scheme will induce.

I am sure that all the political

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The conundrum on the power sector pointment.

Disappointment over the power situation is boiling over across the land. Labour is unhappy, the investors are in debts and blaming government for failing to approve “marketreflective tariffs”, citizens are not amused particularly as the heat returns in Southern Nigeria this season while government itself is in a quandary.

What do you do with the p ow e r si tu at i o n ? W h o w i l l break the logjam? When will Nigeria join the league of nat i o n s t hat t a ke p ow e r a s a given in this age when power is as important as air given that modern life revolves around it?

Concern over the power situation heightened at the beginning of December when all the government agencies delivered a verdict of nonperformance on the Discos.

Their summation is that the privatisation of power assets has not worked. It throws the matter open to conjecture.

Federal Government agencies that spoke on the matter include the Nigerian Electricity Regulatory Commission, Niger Delta Power Holding Company and the Bureau of Public Enterprises. They submitted that the power distribution firms failed to meet Key Performance Indi-

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When will Nigeria join the league of nations that take power as a given in this age when power is as important as air given that modern life revolves around it?

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cators and other agreements built into their contracts since taking charge of the assets in November 2013.

The government agencies blame the Distribution Companies for the failed privatisation of power assets. The Generation Companies have done well in their records. The challenge is with the Discos.

Their verdict is nothing new to citizens in homes and offices across the countr y.

Power remains a major source o f u n p l a n n e d e x p e n d i t u re and agony. Absence of power disrupts plans. Nigeria still operates an analogue economy in the age of digital where

everything runs on power and interconnectedness based on functional electricity systems.

The Discos failed in not m e e t i n g p e r f o r m a n c e t a rg ets in Averag e Te chnical, Commercial and Collection loss reduction. They failed to increase the number of connections. They did not stop estimated billing and failed to serve citizens with meters.

Si n c e 2 0 1 6 , L ab ou r ha s consistently asked the Federal Government to review the privatisation agreement with the Discos and the G eneration Companies. Labour is a party with dual interest in the matter, being the fate of workers laid off from the former Power Holding Company and their positions as citizens. Whether as the United Labour Congress, alternate to the Nigerian Labour Congress, or as the National Union of Electricity Employees, labour has been calling out the privatisation effort. Joe Ajaero, president of the United Labour Congress, said the privatisation had led to “suffocating darkness” rather than light. Labour claims the privatisation led to loss of jobs for 48, 000 workers. As at mid2016, about 2000 workers were yet to receive their severance

packages and 16 months arears in agreed packages.

Labour delivered a damning verdict on the privatisation. “ The exercise has not worked and has become a platform for official corruption.

We do not understand why this government will continue the fraudulent dishing out of tax payers’ funds to private entities to which it has sold its assets.How can you sell your house to somebody and continue paying him money for buying the house from you?”

Government intervened to assist the distribution comp a n i e s. Po w e r, Wo r k s a n d Housing Minister Babatunde Fashola receives the most flak over the power situation. He earned the opprobrium with a one-upmanship remark that improving power supply is a walk in the park for any serious government and should be done with in six months.

Three and half years on, the situation has worsened even as the Minister displays nimble footwork to claim progress.

He talks about “incremental power and similar fanciful terms that do not translate to any improvements.

More importantly, Fashola in the last two years resisted calls on the Federal Govern-

ment to revoke the privatisation. It was sensible. Apart from breaching a valid contract, such a revocation would send negative signals to local and foreign investors already scared at the unsavoury reputation of this government in terms of economic management.

The end of the initial fiveyear contracts however provides a grand opportunity for the review of the privatisation o f p ow e r a s s e t s. T h e Fe d eral Government must find the courage to do so, and to cut off all those who scored below 50% on technical and financial parameters. The privatisation was wrongly managed. The then Government walked the wrong lane as did the investors who mostly lacked the technical capabilities but imagined huge revenues such as accrued to investors in the telecommunications arena. Utilities may be bread and butter businesses, but investors must build a bakery and bring the ingredients to bake the bread and take returns.

No w i s t h e t i m e. C o m mence the process of resolving the power conundrum. Review the privatisation. Bring in new and capable players. Let there be sustainable light.

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