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The London-based popular business newspaper, Financial Times is holding its 2018 annual FT Summit on Tony Elumelu (l), chairman, Transnational Corporation of Nigeria (Transcorp) plc, owner of Transcorp Africa in London. After a session “One-to-One Conversation” at the event yesterday, Lionel Barber, Financial Hilton Hotel, Abuja, with Chris Nasseta, president/CEO, Hilton Worldwide, during the visit of Hilton Times editor (r), presented a portrait gift to Aliko Dangote, president/chief executive, Dangote Industries Limited. Worldwide executive to Tony Elumelu at the Heirs Place in Ikoyi, Lagos.

Tale of two sectors: How telecoms overtook oil in GDP contribution DIPO OLADEHINDE & UDOKA MOKWUNYE

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eventeen years after the first set of Global Systems for Mobile Communication (GSM) operators were licensed, the decision seems like a masterstroke as the telecommunication sector’s contribution to gross domestic product (GDP) has overtaken

the oil sector, which has been around for over four decades.

Unlike its relative stagnant oil and gas sector, the Nigerian telecoms market is being regarded generally as one of the largest growing telecoms market in the world.

From a private sector investment of about $50 million in 1999, the industry attracted not less than $70 billion in

private sector investments and Foreign Direct Investment (FDI) by end of 2017, according to Nigerian Communications Commission (NCC).

In spite of the myriad of challenges facing the telecoms industry, stakeholders are of the view that telecommunication has impacted the Nigerian economy to a great extent.

Johnson Chukwu, managing

director at Crowy Assets Management, says unlike the oil and gas sector, the telecom industry is enjoying robust regulatory and legal framework unlike the oil and gas sector whose legal framework is outdated as its laws are at least 20 years backward.

“Also, the value chain of the telecoms sector is trapped in Nigeria, unlike the oil and gas Continues on page 38

Inside BusinessDayOnline.com becomes exclusive FT republisher in Nigeria P. 2 Atiku’s choice of running mate seen to shape outcome of 2019 presidential poll P. 2

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CBN meets with MTN, 4 banks over $8.1bn refund request

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wo days after offering a reconciliatory tone in London, Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN) has sent out letters of invitation to MTN and four banks for a meeting today, sources close to the issue have told BusinessDay. The meeting is coming two days after Emefiele told Reuters in London that the US$8.1 billion refund request could be reviewed downwards.

“I don’t think it will be staying at $8.1 billion,” Emefiele was quoted

by Reuters as saying during a visit to London, adding he expected the issue to be dealt with “amicably and equitably.”

“I want to believe that the figures will reduce. Whether they will be dropped completely, I honestly cannot say at this time.”

MTN is said to have received a letter inviting them to the meeting which holds today, October 9. Sources at the four banks fined over the US$8.1 billion refund request also say that they have received similar letters. The four banks are Standard Chartered, Stanbic IBTC Bank, Citibank and Diamond Bank which were together fined a total of N5.87 billion for helping MTN transfer the funds without proper documentation, the CBN alleged. The CBN will be meeting with all the concerned parties individually and then possibly have a joint meeting also.

The CBN is calling for the meeting after it said that it has received additional documentation over the issue, which is why it is now seeking to review the refund request in line with the new information.

While the stock market value of MTN has taken a huge hit over the CBN sanction, the apex bank itself has come under significant pressure from the international business community to take a second look at the fine. The MTN issue has become the talking point at all investment road shows where Nigeria is present and has become a major distraction in the country’s quest to attract foreign direct investments.

At the ongoing FT Africa summit, it was one of the issues that Aliko Dangote, Africa’s richest man was forced to talk about during an interactive session with FT Editor Lionel Barber. As an indication of how serious the issue has become in the international investment space, Dangote took permission to ‘drink

a glass of water’ before expressing his views on the issue. While Dangote said that MTN has been a bit arrogant in how they have been operating in the country, he urged that the CBN and the MTN Group to sit down and resolve the issues, which he described as “simple.”

Some participants at the event also believe that the absence of Nigerian government officials at the FT African summit was mainly because they were avoiding having to answer questions about the MTN issue. MTN has already dragged the Nigerian government to court over the issue even while it has engaged the CBN in moves to resolve it amicable out of the court.

The CBN has however also filed a court claim against the CBN court case that could turn messy if not resolved. In the court documents seen

by BusinessDay, the CBN states that it would credit MTN with the naira equivalent of the US$8.1 billion as soon as MTN returns the fund which it insists the company took out of the country illegally.

“A refund of the foreign currencies purchased by the telecom company will result in MTN being credited with the Naira equivalent of the foreign currency,” the CBN said through its lawyer.

According to the court document seen by BusinessDay, the CBN said it acted in good faith for the benefit of Nigeria and exercised its statutory functions over the foreign exchange market in the $8.1 billion MTN refund saga.

The CBN further affirmed that it shall before or at the trial, raise an objection to the propriety of the suit against it.

“MTN has not disclosed any reasonable cause of action against it or any legal right to be protected in this application,” the apex bank stated.

“At all material times, the plaintiff had sufficient notice of the investigation on the banks and that it was given sufficient opportunity to make representations and substantiate its position.”

Besides the US$8.1 billion refund, MTN is also faced with another US$2 billion tax request from the Office of the Attorney-General of the Federation and Minister of Justice, Abubakar Malami. MTN is also challenging that demand which has also left many foreign investors wondering how a tax demand will emanate from the attorney-general’s office.

BusinessDayOnline.com becomes exclusive FT republisher in Nigeria

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usinessDay, Nigeria’s finance and business intelligence publication, has partnered with The Financial Times, the world’s leading global business publication, to become the exclusive republisher of Financial Times content in Nigeria. BusinessDay has been republishing Financial Times content in print since 2016. This agreement to license FT’s content for online, marks the next step in it’s longstanding relationship with the London-based publisher.

BusinessDayonline.com will now republish Podcasts, videos, and text journalism available on FT.com, House and Home, Weekend Maga-

zine, and other special reports. On an ad-hoc basis, BusinessDayonline. com will publish select contributors to the Financial Times. BusinessDayonline.com readers will have access to the most extensive business journalism in the world for the price of a BusinessDay subscription.

“We’ve invested heavily in producing unrivaled content interrogating Nigeria’s economy and industry and ultimately, we want our subscribers to have a global perspective. In light of the success the print republication of FT content has enjoyed, we want to provide that depth to our increasingly digital audience.” Frank Aigbogun, Publisher at BusinessDay.

Frank Aigbogun (l), publisher of BusinessDay, with FT Editor, Lionel Barber, after the signing of Memorandum of Understanding between BusinessDay and Financial Times, as BusinessDayOnline.com becomes exclusive Financial Times Republisher in Nigeria.

Atiku’s choice of running mate seen to shape outcome of 2019 presidential poll ... Analysts favour S/East, S/West CHUKS OLUIGBO & INIOBONG IWOK

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he geopolitical zone from which Atiku Abubakar, presidential candidate of the People’s Democratic Party (PDP) picks his running mate and the quality of the candidate he picks will play a key role in determining how the PDP performs in the 2019 presidential election, a cross-section of politicians and

political analysts told BusinessDay, yesterday.

Atiku, who emerged the presidential candidate of the major opposition PDP at the party’s justconcluded national convention in Port Harcourt, Rivers State, will stand against the ruling All Progressives Congress (APC) candidate, incumbent President Muhammadu Buhari, who is seeking a second term in office, and candidates of other political

parties in next year’s election.

Since Atiku’s emergence on Sunday, analysts who have been looking at his chances are of the consensus opinion that both Atiku and the PDP need to be strategic, put all the variables on the table and ensure the emergence of the right quality of candidate for vice president, as such a choice is sure to shape the outcome

Continues on page 38

Aliko Dangote insists on 2020 take-off date for $14bn refinery ... IPO set for 2019

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angote Refinery, the 650,000 barrel per day project embarked on by Africa’s richest man, Aliko Dangote will begin production in the first quarter of 2020. Aliko Dangote disclosed this to BusinessDay in an exclusive interview at the ongoing FT Africa Summit in London. He said that he expects the mechanical work on the refinery to be completed at the end of 2019 and actual production to start in 2020.

The new date for the take-off of the refinery will come as a disappointment to the Federal Government, especially the Minister of State for Petroleum Resources, Ibe Kachikwu, who has, based on the expectation that the refinery would come on stream in 2019, promised to resign if the country does not stop importing refined petroleum products in 2019. The country currently imports more than 90% of its refined petroleum products needs but the US$14 billion Dangote refinery has the capacity to turn Nigeria from an importer to a net exporter of refined petroleum products.

Dangote explained that the projected timeline for the completion of the project has been delayed due to some unplanned challenges encountered in

the process of building the refinery. He said that because the country’s ports were not built to handle mega projects like the Dangote refinery, he has had to build a complete jetty to handle the imports of the huge equipment needed to build the refinery.

He further said that he had currently ordered all the heavy equipment needed to complete the refinery. He also disclosed that the nature of the environment in which the refinery operates means that he has had to construct 138 kilometres of road within the refinery area to move equipment around.

In an earlier session at the FT Africa Summit, Dangote also disclosed that its planned three million tonnes capacity fertilizer plant will start production in January next year. He said that initial plans for the fertilizer plant to start in November this year were delayed because the company that was meant to supply it gas ran into a financial crisis. However, he says things are being resolved and a new start date in January is now fixed. At completion, he said that the fertilizer plant would have excess capacity of two million tonnes of fertilizer which would be exported to other African countries.

Dangote also said that its list-

ing on the Premium Board of the London Stock Exchange would now take place in 2019 after the Nigerian elections. He said that discussions are ongoing with financial advisers to make the listing happen.

He named Merryl Lynch, JP Morgan and Standard Chartered Bank as some of the financial advisers that he is currently speaking to on the planned listing. A fixed date has not been determined for the listing but he said that advanced preparations have been made for it to happen, including putting in place the corporate governance structures to make it happen.

Dangote also said that like MTN, he received a tax demand that was twice the US$2 billion presented to the MTN Group. He also disclosed that the demand was a mistake instigated by some consultants who went to the Attorney-General and Minister of Justice, Abubakar Malami after failing to push their demand through the National Assembly.

He said that the basis on which the tax calculations were made was not right and does not expect that it would lead to any payments being made by him or MTN. However, he advised that MTN should sit down and discuss the US$8.1 billion ‘refund’ demand by the Central Bank of Nigeria (CBN) to resolve the issue raised which he said was ‘simple.’

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Nigeria lags as African peers plan big oil licensing rounds ISAAC ANYAOGU

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adagascer, Algeria, Ghana are among African countries that have concluded plans to conduct oil licensing rounds before this year ends, which will boost their reserves, increase revenue as well as their capacity to take advantage of soaring oil prices. But Africa’s biggest producer, Nigeria, is yet finalise bid round plans started since 2016.

At the Africa Oil Week

Mini refineries show way out of Nigeria’s 90% fuel import dependence STEPHEN ONYEKWELU

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igeria’s four crumbling refineries have continued to under perform, leading to higher annual fuelimport bill and export of jobs, which could be reversed by creating an environment that enables private sector driven mini refineries.

There are currently 40 modular refineries registered, 10 of which are in advanced stages of development and could be producing different types of fuel as early as next year. The two leading projects of about 17,000 barrels a day each “have really started work,” Ibe Kachikwu, minister of state for petroleum, said in an interview with Bloomberg.

Small refineries operate in other parts of the world, including in China and Iraq, producing petrol and diesel for the local market. They typically are not very complex plants, and because of their size, are considered to be less efficient. Modules that make up the plants are designed and built in a warehouse and shipped to Nigeria. The advantage of modular refineries is that they can often be put together 12 months faster than a conventional one.

Nigeria imports 90 percent of its oil products and fuel import bill of $7 billion, even as it exports large volumes of crude. Seven months to the end of his tenure, Kachikwu is still talking about getting the country’s refineries working again. At the ground-breaking ceremony of 5,000 barrels per day modular refinery in Imo State on October 3, Kachikwu was quoted as promising that the government was committed to making the country’s refineries functional again by the end of 2019.

conference scheduled for Cape Town, South Africa from November 5 - 9, Madagascar will announce oil licensing round, offering investors access to 225 offshore exploration blocs. Yet Madagascar is not the easiest places to do business.

The tough terrain makes extraction difficult, requiring huge technological investment, infrastructure is a challenge and it is politically unstable.

Madagascar has five basins, totalling about 320,000 square kilometres and some of its biggest basins in the

Western coast share similar geological structure with Nigeria and Angola. The country’s largest fields, Bemolanga and Tsimiroro, remain largely unexplored.

Nigeria’s neighbour, Ghana, is conducting its first licensing bid rounds for nine oil blocs in its Western Basin, this October. The country has decided on direct negotiation opening up the process for talks with investors all across the world according to officials of the Ghana energy ministry.

In North Africa, Egypt is looking to deepen gas

investments with new bid rounds focussed on the eastern Mediterranean and Nile Delta, while also planning new licensing in the more frontier Western Mediterranean and Red Sea. Algeria has amended its hydrocarbon law to attract new investments from bid rounds.

In West Africa, Gambia, Sierra Leone and Cote d’Ivoire are looking to capitalise on industry interest in the Atlantic and West Africa Transform margins with offshore blocks on offer. Senegal has rewritten its petroleum code in an-

ticipation for new licensing rounds. Congo (Brazaville) is expected to follow up last year’s deepwater round with an offering of shallow water blocks.

“The Department of Petroleum Resources (DPR) is not anywhere close to concluding preparations for the next bid rounds. In fact, from all indications, it does not seem it will happen any time soon, because the guidance notes for the bid rounds are not even prepared yet.

It does not even look like it could happen this year,” a source close to the regulator,

who preferred anonymity, said.

In a world where options have become abundant, investors are looking for the best deals with little hassle, but capital has to be courted hence these countries are turning on the charms.

Algeria and Senegal had to rewrite their Petroleum sector law to offer generous incentives to prospective investors. In the Gulf of Guinea, Cameroon has also offered eight blocks in a bid round earlier in June, under terms, which include an increased cost recovery limit.

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COMMENT

Tuesday 09 October 2018

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Akinwunmi Ambode: Victim or author of his fortune

MAZI SAM OHUABUNWA OFR sam@starteamconsult.com

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any Nigerians will remember the story of the threat which the Oba of Lagos was said to have issued to Ndigbo who lived in Lagos during the 2015 political season. Those who decide what happens in Lagos state were in great panic. They looked into their crystal balls and found that a majority of Ndigbo in Lagos had planned to vote for Jimmy Agbaje of PDP as governor of Lagos. All the political principalities in APC in Lagos went berserk. What to do? Oba of Lagos was recruited. He summoned some of the so called Eze Ndigbo in Lagos and issued the infamous threat. They must vote for Ambode of APC or they better be prepared to be thrown into the Lagos lagoon.

It was a desperate situation that demanded desperate action.

Ambode went on to win the election. I do not know if the threat succeeded in frightening the Igbo Lagosians into voting for Ambode in order to stay alive or if it did not. But that threat actually awakened the Igbo, both in Lagos and elsewhere in Nigeria. When later in 2017, the Arewa youths gave ultimatum to Ndigbo to move away from Northern Nigeria before 1st October, many Igbo finally (hopefully) came to the conclusion that they remain in a precarious situation in Nigeria. And the Nigerian government kept mute

ADAMU OLATUNDE Adamu Olatunde is a Lagos based energy sector analyst

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ssets stock in Nigeria’s oil and gas industry is set for significant upgrade as Pan Ocean Oil Corporation’s ultra-modern Amukpe-Escravos Pipeline comes on-stream in 2019. Pan Ocean Oil Corporation is the first indigenous oil and gas exploration and production company to enter into joint venture operations with the Nigerian National Petroleum Corporation (NNPC).

A national asset, the new pipeline is strategic to the economy as it will ease the burden of transporting crude oil down the circa 67-kilometre corridor from Amukpe to Escravos, for export.

However, there are other reasons why it is novel. First, the

as Ndigbo went through these psychological terror campaigns from our compatriots. As if these were not enough to break a people, this same government visited additional terror on the people with operation python dance 1& 2 and operation crocodile tears. Yet paradoxically, the Igbo remain the most committed to the unity of Nigeria, as they continue to water the tree of Nigerian unity with their blood.

Thank God that the Oba of Lagos did not carry out the threat and Ndigbo have continued to live and do their businesses in peace in Lagos and the Arewa youths eventually rescinded their ultimatum and Ndigbo have continued to build more houses and set up more businesses in every part of the North and indeed in every other part of Nigeria, perhaps until the next political eruptions!

But now, it looks like Ambode for whom the Ndigbo in Lagos would have been thrown into the lagoon seems to have himself now ended in the Lagos lagoon. What happened?

Lagos has been run essentially on a strategic plan laid out by Bola Ahmed Tinubu (BAT) when he came into office in 1999. Like him or hate him, Asiwaju Bola Tinubu is a strategic leader. I had the privilege of joining the rank of the greats like Professor Olikoye Ransome Kuti to serve as a member of the transition committee that helped Asiwaju to plot the strategic plan for governing Lagos State. Bola chose a broad range of great Nigerians who live (or lived) in Lagos to help him chart the strategic plan. I also served as the Chairman of the Planning Committee of the first Lagos State Economic Summit. I did not know Asiwaju from Adam, but he got me and many like me to support his vision. I truly believe that one of Bola’s strongest virtues as a stra-

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It therefore makes sense to always stand with the people, especially those you met on your way up, because you are most likely to meet them on your way back

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tegic leader is his uncanny ability to pick good men or good people to work with or for him. His cabinet in 1999 was star studded, many from the Private Sector. It is to his credit that many of those who worked with him at that time are now the people running the Nation at the centreYemi Osinbajo (VP), Babatunde Raji Fashola (Minister of Works, Power and Housing), Lai Mohammed (Minister of Information & National Orientation), Tunde Fowler (Chairman of the Federal Inland Revenue Service), Ade Ipaye (Deputy Chief of Staff in the Presidency),etc When Asiwaju Bola Tinubu chose Babatunde Raji Fashola (BRF) to succeed him, many were rattled.

For many, BRF did not belong to the first eleven. After all, he only became the Chief of Staff when Bola had despatched Lai Mohammed to go and take up political position in Kwara State. In 2007, when as the President of the Business Club Ikeja (BCI), I organized a Private-sector driven debate for the gubernatorial candidates in Lagos, I must confess that I did not see what Bola had seen in BRF. But from 2007-2011, BRF dazzled all Lagosians. He literally transformed Lagos. He boldly cleaned up Lagos, dealt with chaotic Lagos traffic and brought crime down.

I do not know exactly what Fashola did to Tinubu that he considered not allowing him run for a second term. But Lagosians had fallen in love with Fashola and were prepared to rebel against the lion of Bourdillon. Being a smart leader, Asiwaju retreated and gave in to what was essentially public pressure and allowed him run. BRF did so well that President Muhammadu Buhari rewarded him by making him the defacto Prime Minister of Nigeria. Now enter Akinwunmi Ambode.

Again when Tinubu brought up a retired civil servant to succeed BRF, many Lagosians cried foul especially when we seemed to have a surfeit of great materials in the mould of BRF. But as usual, Asiwaju stood his ground, touting the great success of BRF as evidence that he knew who would deliver best among his team.

At last Lagosians gave him the benefit of doubt and elected Ambode.

If you ask me I will say that Ambode has done well but not as stellar as BRF. So why did the people not rise up to defend him against Asiwaju’s ‘midterm crisis’ as they did for BRF? First, Visionscope.

From nowhere, Ambode decided to change the working refuse clearance system in Lagos initiated by BAT and perfected by BRF. Lagosians were shocked by the return of filth to Lagos after many years of not seeing refuse dumps on Lagos streets. This was very disappointing to many.

Indeed, some thought it had to do with Asiwaju, but later, we got to know that he did not have a hand in it. Then Ambode began to repair and construct many roads at the same time, returning Lagos to the traffic gridlocks it experienced last when Fela was still living at Ojuelegba and driving against the traffic. Though I believe this was for good cause, but many Lagosians were really sad.

Up till Ambode was thrown into the lagoon, I had no idea he had other problems with the people of Lagos

and the king makers.

But I have since read and heard of the so many ‘sins’ of Ambode, from what he did to the Chaplain of the state house chapel to how he sacked several Permanent Secretaries without apparent cause and how inaccessible he was. I have generally seen these as effort to call a dog a bad name to justify why it was hanged. Nevertheless, one matter ran through all the stories including first hand stories told me by some close friends who are top notchers in APC in Lagos- the man forgot those who held the ladder for him to climb up. So the guys quietly took away the ladder and Ambode had no other way to climb down than to jump. And unfortunately he landed in the lagoon, the same one the Oba had prepared for the recalcitrant Igbo Lagosians who would not vote for Ambode. How the tide changes!

To be true, the popular view amongst many Nigerians is that BAT purposely pushed Ambo into the lagoon for his own selfish reasons.

Well may be BAT often suffers from such ‘malady’ at mid term, but because BRF stood with the people, he was saved from the Ambo treatment. It therefore makes sense to always stand with the people, especially those you met on your way up, because you are most likely to meet them on your way back. Now we may be back to where we were in 2015. The old war horse Jimmy Agbaje is back on beat. I wish to believe that both the Oba of Lagos and the new darling of Lagos APCBabajide Sanwo-Olu (BSO) will not adopt any such desperate measures and threats. There may always be the ‘midterm crisis’ and what goes round often comes round. Eko oni baje: ju bayi lo!, then itesiwaju ipinle eko..oje wa logun, what next for eko?

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The Amukpe-Escravos pipeline as a game changer pipeline project was inspired by leading indigenous oil and gas sector player, Pan Ocean Corporation (in conjunction with the Nigerian National Petroleum Corporation), under the visionary leadership of Dr. Festus Fadeyi.

Secondly, the project was financed by a consortium of indigenous banks, led by Polaris Bank (Formerly Skye Bank Plc).

A third reason is that Nigerian engineering companies put the pipeline in place.

Because of these reasons, the Amukpe-Escravos Pipeline is considered by industry experts as a posterchild of the Nigerian Oil and Gas Industry Content Development Act of 2010. As it stands as testimony to what is possible if policymakers and private sector operators collaborate.

But some have wondered why it took eight (8) years to complete the project. To those who know

the oil and gas industry well, it is obvious that a project of this magnitude takes time to complete. Also, the unpleasant vagaries of oil price put tremendous pressure on major all oil and gas industry projects in the last four years.

Therefore, what is important as at today, is that with the addition of the new pipeline, assets in the oil and gas sector now looks more ‘Nigerian’ than at any time in history, as Nigerian companies are taking up roles, and owning assets that were once off limit.

The local content act has three objectives. It aims to give independent Nigerian operators first consideration in the award of oil blocks, oil field licenses, oil lifting licenses and all projects for which contract is to be awarded in the oil and gas industry subject to the fulfilment of specified conditions.

The law also specifies that there shall be exclusive consideration of indigenous service companies

which demonstrate ownership of equipment, Nigerian personnel and capacity to execute work to bid on land and swamp operating areas for contracts and services.

Furthermore, that law states that compliance with its provisions shall be a major criterion for award of licenses, permits and any other interest in bidding for oil exploration, production, transportation and development in the industry. Pan Ocean’s 67-kilometre Amukpe-Escravos pipeline meets all of these provisions.

As an asset that has national strategic importance, it will ease the pressure on the 87-kilometre Trans-Forcados Pipeline, which is over four decades old and prone to disruptions and attacks. TransForcados Pipeline was shut down for 305 days in 2016, and more than 182 days in 2017.

A major advantage of Pan Ocean’s pipeline is that unlike the Trans-Forcados Pipeline, which is

largely on the surface and therefore prone to attacks, the AmukpeEscravos pipeline is safely buried underground. It is a 20-inch, 160 000bpd capacity pipeline put in place using Horizontal Directional Drilling.

Though it was designed to convey Pan Ocean’s crude, the idea is to also accommodate other neighbouring crude oil producers (injectors) on tariff, this is what really makes the difference. Which crude producer or exporter will not cheer at the idea of using an asset that is more reliable and has less impact on the environment?

Indeed, the Nigerian Oil and Gas Industry Content Development Act has made more Nigerian companies step up to the podium.

As more companies key into its opportunities, the economy will be better off.

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

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Introduction c c o rd i n g t o t h e National Bureau of Statistics (NBS), the Nigerian manufacturing sector is dominated by the production of food, beverages and tobacco, with sugar and bread products generating the greatest value of output. To encourage more output in these and other sectors, the government has been making it cheaper for consumers to purchase locally manufactured goods by making the smuggled foreign alternatives prohibitively expensive or totally unavailable through prohibitions. Most recently, the Central Bank of Ni g e r i a ( C B N ) a n n o u n c e d

STRATEGY & POLICY

MA JOHNSON Johnson is an eclectic researcher, writer and columnist whose articles cover maritime, defence, technology and public policy issues and other areas of human interests. He is a member of the BusinessDay Editorial Advisory Board)

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hey have started killing again. This time, gruesome killings are going on in Plateau State- “the home of peace and tourism”. Jos, the capital of Plateau State, a city in the middle belt of Nigeria is in the news again for the wrong reasons. The city is held on its jugular by a gang of killers. You may call these killers by any name ranging from herdsmen to armed bandits.

But the most unfortunate thing is that these infamous assassins have constituted themselves into slayers, wrecking havoc on innocent citizens, killing them in their tens and hundreds depending on how favorable the situation on land is. Innocent citizens irrespective of religion have been victims of a dysfunctional state. A state where

plans to facilitate the issuance of single-digit interest rate loans to firms operating in the agriculture and manufacturing sectors. Port reforms and other ease of doing business initiatives by the government are also helping to make the manufacture of goods easier in the country; relatively, at least. Owing to reforms, Nigeria’s ease of doing business ranking moved to 145th place in 2017 from 169th in 2016, for instance.

The Nigerian manufacturing sector has been performing well in recent years. While year-on-year growth for each of the quarters in 2015-16 was negative, there was only one such instance in 2017; in the third quarter. Incentives by the government are also beginning to encourage greater interest. According to official data, at 9.3% of GDP, the Nigerian manufacturing sector grew by 3.4% year-on-year in the first quarter of 2018, an improvement from 0.1% y/y in Q4 2017 and -2.9% y/y in Q3 2017. The last time there was something close to such growth in the period since Q1 2016 was in Q1 2017, when the sector grew by 1.4% y/y. For the whole of 2016 till then, the sector recorded negative growth.

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The Nigerian manufacturing sector has been performing well in recent years.

While year-on-year growth for each of the quarters in 2015-16 was negative, there was only one such instance in 2017; in the third quarter

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Opportunities The government’s industrialization focus is on small and medium scale enterprises and is one of the five key execution priorities of its 4-year Economic Recovery and Growth Plan (ERGP). Other stated priorities are the stabilization of the macroeconomic environment, energy sufficiency, improvement of transportation infrastructure, and the achieve-

ment of food security. To ensure optimal execution of the ERGP, the Nigerian government resolved in August 2017 to conduct sector or focus labs “designed to tackle complex challenges by bringing together all stakeholders to identify the root causes of the challenges [within a sector] and [generate] ideas and resources to solve them.”

For manufacturing and processing, phase 1 of the ERGP focus labs sought to unlock investment commitments in the food manufacturing, textile, garments and leather industry, mining & downstream activities, petrochemical industry, general manufacturing, and industrial parks. These should also be the focus of potential investors interested in the Nigerian industrial sectors. A participation in future phases of the focus labs is also recommended.

In phase 1, for instance, the focus labs “expedited the access of a mining company to the Solid Minerals Development Fund (SMDF)”, and brought to the attention of the mining minister the troubles of a bitumen mining company seeking to renew its exploration licenses.

Additionally, the focus lab aided a metal manufacturing and aluminium company, which “required additional funding”

and had held several funding syndications with multilaterals and commercial banks, in getting an agency of the World Bank to conduct a review of their projects within the lab. Consequently, the2 companies have been long-listed for screening.

In other words, the focus lab facilitated access to funding for the firms.

Other opportunities emanate from the imported manufactures currently prohibited by the Nigeria Customs Service. Foreign investors would easily get a listening ear from the government if they choose to invest in manufacturing them domestically; a well-tested approach.

• The author, Dr Rafiq Raji, is a consultant at the NTU-SBF Centre for African Studies, a trilateral platform for government, business and academia to promote knowledge and expertise on Africa, established by Nanyang Technological University and the Singapore Business Federation. This article was specifically written for the NTU-SBF Centre for African Studies. This article was published on How We Made It In Africa on 27 September 2018.

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Where is the premium on lives of fellow citizens? men are pleased at the detriment of humanity. If there are no Nigerians there cannot be a country called Nigeria. Every morning, Nigerians who are privileged and can afford to buy a copy or copies of newspapers will be greeted by gory headlines such as: “Plateau Killings: How we lost 300 persons in four months- Berom Community,” (Daily Post, 13September 2018); “Plateau: Again herdsmen kill four, burns 35 houses,” (Punch Newspapers, 5 October 2018); “Plateau Killings: Military arrests 72 suspects, COAS blames elites, elders” ( Punch Newspapers, 4 October 2018).

With these headlines, any observer with keen interest in sociopolitical events in the country gets to know that some citizens are being killed in Plateau State.

Helpless citizens are not given the opportunity to make a positive difference to their community. Those who manage to escape the tyranny of men, become refugees in their own country. Young children with their parents want to be good citizens but they are denied the right to do so. A pity, you may say. What you hear and read daily on print and electronic media is the trading of words and blames from those in the government to elites and elders in the State. Yet, suspects are arrested but no trial by courts of law in most cases. This writer is not aware of any court judgement on

those tried for arbitrarily taking the lives of their fellow citizens in Jos. After all, the scripture condemns the killing of individuals.

Majority of the people residing in Jos are Christians with Muslims in the minority. So who are these enemies that are killing and maiming citizens in the “Home of Peace and Tourism”? “Thou shall not Kill” is a moral imperative included as one of the Ten Commandments in the Torah. It is the same with the Quran.

Both religions prohibit murder. The objective of this piece is not to give an analysis of the theology of war as reflected in the Holy Books but to state that murder is forbidden by all Holy Books. Even the 1999 Constitution of Nigeria prohibits murder because it’s a capital offense punishable by death.

There is so much to say about the unending crisis in Plateau State.

What explanation do we have to the mysterious disappearance of a retired two-star General, Idris Alkali, who served his country meritoriously for over 35 years? One can see crime against humanity. The killings in Plateau State can best be described as genocide. After several days of search, the General’s car was found in a mining pond at Dura, Du District of Jos South Local Government Area. The recovery of the car was met with resistance by the local women who claimed that draining the pond has “huge cultural significance” to the community.

The women staged a protest and declared that “if the water is evacuated, it could lead to the death of our sons and husbands.”Despite the protests, the military personnel went ahead to drain the pond and this led to several discoveries.

Apart from Alkali’s vehicle, the Army found an 18-seater Toyota Hiace Bus belonging to Gombe Line Transport Company and three other cars.

Although, at the time of writing this article, the body of the General has not been found. The Army has however, stated its readiness to continue its search for further discovery and to recover the body of one of their own. Now, the whole situation in the Plateau killings has compelled conspiracy theorists to say that there is a dearth of humanity in Nigeria and Jos in particular.

These theorists are of the view that for humans to have decided to drown their fellow human beings in a mining pond shows nothing but sheer wickedness. Additionally, these theorists are convinced that evil thrives among men living in Jos and its environs and that there is no premium on the lives of fellow citizens in the country.

There are those who believe that the Task Force set up to ensure that there is peace in Plateau State has become complicit in some of the lawlessness ongoing in the State. For this group of people, the Task Force is no more regarded as

a neutral and unbiased body. The level of suspicion against members of the Task Force is high, they say.

When citizens suspect that soldiers deployed to protect them collude with armed bandits, one may ask questions about civil-military relations in Plateau State.

The security situation in Plateau State is very complex. For several years, military strategy has not brought about the desired peace in the state. The political will of those in the government and community leaders is a critical factor that must be taken into consideration in solving the problem of insecurity in Jos. If structures on the ground are not working, the government must change strategy for a better result.

Success in any endeavor is directly proportional to the capability of the nation. The constant of proportionality being the political will of those in the government. When there is no political will, there is no amount of resources- human and material that can bring about the desired peace in Jos and other parts of the country.

The State and federal governments know what to do. Those in the government swore an oath to protect lives and properties of citizens. So, they must be bold to take appropriate actions that can bring lasting peace to the North Central region and other parts of the country.

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Editorial 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 GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

Tuesday 09 October 2018

Nigeria’s collapsing health infrastructure

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igeria likes to boast of its status as Africa’s biggest economy, but its health statistics indicate the country is not only far behind its peers and other smaller countries in Africa, but it shows, in a classic way, the callousness of its politicians and government officials who go abroad to treat even common ailments while abandoning the people they govern to die in decrepit hospitals that now serve more as morgues than places for accessing healthcare.

A 2014 World Health Organisation (WHO) report on healthcare delivery, which surveyed 200 countries, placed Nigeria at an abysmal 197th position, just ahead of Congo Democratic Republic, Central African Republic (CAR) and Myanmar. Its verdict was damning: “Nigeria lacks a serious approach to healthcare.”

In 2016, President Muhammadu Buhari promised to end the practice of spending the government’s hard-earned cash on treating officials overseas, especially when Nigeria had the expertise. But three months later, the president himself flew to the United Kingdom to treat a common ear infection, an action the then president of the NMA described as a “national shame” considering that Nigeria had more than 250 ear, nose and throat (ENT) specialists, as well as a national ear centre. Well, the

president has continued to frequent UK hospitals and last year, spent more time in the UK than in Nigeria, treating an undisclosed ailment.

Even the President’s wife and daughter have complained about the quality of healthcare available to them at the presidential villa. While the president’s daughter raised alarm that the Aso Rock Clinic, which is supposed to cater for the immediate health needs of the first family, ministers and presidential aides, Mrs Buhari said she was advised by her aides not to bother using the facility but go abroad for treatment if she feels unwell.

If the health facility at the seat of power in the country is that decrepit, what would one expect in other parts of the country? In February, Nigeria was ranked 187 out of 191 countries in the world in assessing the level of compliance with the Universal Health Coverage (UHC), as very few of the populace is health insured, whereas even government provision for health is almost negligible.

Available figures show that Nigeria’s budgetary allocation to the health sector in 2018 was a mere N340.45 billion (less than $1 billion), representing only 3.9 percent of the budget. On a per capita basis, N1,800 ($5) is what the 2018 budget provides for the health of each of Nigeria’s 190 million citizens. This is completely dwarfed by South Africa which proposed a health budget of R205.446 billion ($17.1 billion) in 2018, represents $299 per head

when compared to its population of 57million. Yet, Nigeria supposedly holds the title of the continent’s largest economy.

According to the World Health Organisation, Maternal mortality rate in Nigeria is 814, per 100,000 live births only outperforming Chad with 856, Central African Republic; 882, and Sierra Leone; 1360. War torn countries like Somalia and Democratic Republic of Congo even outperformed Nigeria.

Also, while Botswana and Mauritius have the proportion of births attended by skilled health personnel as 100 percent, Nigeria is again down the pyramid with 35 percent, competing with countries like Eritrea, Ethiopia, South Sudan, and Chad.

The statistics get worse, for every 1000 births in Nigeria, 108 infants (and children) die before the age of five, and again, the country sits comfortably close to the bottom of the ladder in Africa.

Data from WHO world health statistics 2017 further shows that over 72 million Nigerians are at risk of malaria, with 380.8 at risk out of every 1000 Nigerians, whereas, malaria has ceased to be a health concern for many other countries.

Yet, Africa’s largest economy shares the three bottom slots on the continent with Burkina Faso and Mali.

The figures for cancer are even more mind-boggling. Nigeria has a cancer death ration of 4 in 5, one of the worst in the world. According to the WHO, over 100, 000 people

are diagnosed with cancer annually in Nigeria, and about 80, 000 die from the disease, amounting to 240 daily. Furthermore, cervical cancer, which is virtually 100 percent preventable, kills one Nigerian woman every hour while breast cancer kills 40 Nigerian women daily.

What is more, due to the terrible working conditions, Nigerian doctors have been deserting the country in droves in search for better working conditions in other countries. According to the Nigerian Medical Association, more than 40, 000 out of the 75,000 registered Nigerian doctors were practicing abroad while over 70 percent of those in the country were thinking of picking jobs outside.

BusinessDay research shows that an average of 12 Nigerian trained doctors register for practice in the UK every week.

While experts are calling for better working conditions and greater investments in medical training, the Minister of Health, Isaac Adewole, is on record saying Nigeria doesn’t have shortage of doctors and that it can’t even train all its doctors, advising some to take to tailoring, business and politics.

With such standoffish and inconsiderate posture, we do not need a soothsayer to tell us that Nigeria’s health statistics will continue to deteriorate while the government busies itself with the manufacture of alternative facts to look good before its teeming supporters.

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Tuesday 09 October 2018

BUSINESS

COMPANIES & MARKETS

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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

PwC revenues rise to record $41.3bn in June 2018 Endurance Okafor

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or the year ending 30 June 2018, PricewaterhouseCoopers (PwC) firms around the world earned total gross revenues of $41.3 billion, a 7 percent increase when compared to the $37.6 billion reported by the company in the same period of 2017.

In the period under review, revenues were up across all PwC’s operations,boostedbycontinued significant investments in quality, new technologies, services and talent. This year’s positive revenue return therefore marks 21 consecutive years of growth, the company’s financial released 2nd October shows.

Bob Moritz, PwC’s Global chairman said the impressive growth is due to the company’s focus on the marketplace and the hard work, professionalism and dedication of its 250,000 people who continue to develop and innovate to meet the changing needs of their stakeholders around the world.

“In addition, everything we do is guided by our focus on quality and our purpose to build trust in society and solve important problems. Technology is redefining PwC and the quality and relevance of the services we provide, just as it is reshaping the world of business. Across our network we are fully focused on implementing the best technology ideas for our stakeholders. By 2019

we will have invested over US$1 billion enabling our business in the Cloud, helping maximise the quality and impact of our services and solutions.

“We are proud of the work we doforourstakeholders,ourroleas one of the world’s major recruiters andtrainersoffinanceprofessionals as well as the contribution we make to the societies in which we operate, ,” Moritz said.

In the Americas, revenues grew by 4 percent with a particularlystrongperformancefrom operations in the United States.

Growth in Western Europe was stronger than the previous year, up by over 6 percent in FY18, and remained very buoyant in CentralandEasternEuropewhere revenues were up 10 percent.

Meanwhile revenue growth from theMiddleEastandAfricawasthe secondhighestwithanimpressive 12 percent return.

Across Australasia and the Pacific, revenue growth was 7 percentwhilePwC’sstrongestgrowth was in Asia where revenues were up 15 percxent.

“Demandforourservicescontinues to grow across all regions andindustries,whichistestament to the quality of our work, and the investment we have made in anticipating the changing needs of our stakeholders with the introduction of new and enhanced services.

“We continue to make strategic acquisitions in key areas of growth,especiallyblockchainand data analytics and to invest in new

L-R: Olusola Adeola, representing Fola Adeola, founder/chairman, FATE Foundation; Toyosi Akerele-Ogunsiji, founder, Rise Networks; Leke Alder, founder/principal, Alder Consulting; Ituah Ighodalo, senior pastor, Trinity House; Bolaji Akinyemi, president, Voice of his Ministries, and the 2018 Trinity leadership conference, with the theme “2019: The Yearnings of a Nation” in Lagos. Pic by Olawale Amoo

technologies including artificial intelligence and robotics, as we work to increase the effectiveness of our core services such as audit,” Carol Sawdye, PwC’s Global chief operating officer said.

In FY18, the company’s global headcountgrew6percenttomore than 250,000 people. Of which the largest headcount increases in Asia (14%) and Central and

AXA Mansard celebrates AXA’s newest global rating

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XA Mansard, a member of AXA, the global leader in insurance and asset management has celebrated AXA Group on its recognition by Interbrand as the number 1 Global Insurance Brand for the 10th consecutive year.

Interbrand, a brand strategy and design consultancy is recognized internationally for its expertise in brand assessment. The Best Global Brands ranking established

by Interbrand evaluates a brand’s value according to three criteria: its financial performance, the brand’s strength, and the brand’s role in the purchase of its products

and services.

In a statement released by the company to mark this achievement, Kola Oni, group head, Strategy & Marketing at AXA Mansard Insurance Plc stated, “We congratulate ourselves and our colleagues all across the world for sustaining the reputable position of being the No 1 global insurance brand for the 10th consecutive year. With the volume of competition we are faced with in the insurance industry, it’s great news to know that we stand unparalleled once again” He further noted “Being recognizedagainisatestamenttoourpas-

sionanddrivetoconsistentlyprovide quality products and services to our esteemed customers, forming part of our strategy to deliver exceptional customer experience.”

AXA Mansard offers life and non-life insurance products and services to individuals and institutions across Nigeria whilst also offering asset/investment management services, health insurance solutions and pension fund administration through its three subsidiaries - AXA Mansard Investments Limited, AXA Mansard Health Limited and AXA Mansard Pensions Limited respectively.

Hope for buyers as ACA, Elalan target Q4’19 to deliver 119 luxury homes

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espite economy’s unsteady and unsure steps towards recovery coupled with real estate sector’s subdued growth, investors, especially those with long term view of the property market, have continued to do projects, believing that the present market situation has not, in any way, changed Nigeria’s strong real estate market fundamentals.

This explains the resolve by Africa Capital and Alliance (ACA) and the Elalan Group to continue with thedevelopmentoftheirBlueWater Lagos (BWL) project, assuring and raising buyers’ hope that, by the last quarter (Q4) of 2019, the first phase of the project will deliver 119 luxury homes to the market.

BWL, which sits on more than threehectaresoflandinLekkiPhase One, represents an exciting blend of contemporary luxury apartments, state-of-the-art retail mall and ex-

clusive residents’ park. The entire developmentconsistsoffivetowers, offering its cosmopolitan residents unrivalledviewsoftheAtlanticcoast as well as easy and convenient access to shopping.

The mixed use development project, which was conceived to offer a unique life style destination, will also offer residents dining, leisure and entertainment experiences all within walking distance of their homes just as innovative retail mall with top brand shopping will provide products for the residents.

The developers see beyond the lull in the property market and, therefore,areoptimisticthatthatthe growth figures recorded in Nigeria’s realestateindustrywillbesustained in 2018 with increased signs of economic recovery.

Furthermore, they note that the Lagos real estate business has also continued to grow with the Lekki

corridor taking over as the fastest growing and most sought-after areas in the state.

“This means investors will see a good capital growth and rental yields for this exceptional project, especially as Nigeria’s economy has been confirmed as the largest economy in Africa by Forbes with a staggering GDP of $594 billion in 2018,” the developers explained in a statement.

Andrea Geday, Elalan Group’s managing director, assured that BWL offered ideal options for different homeowners with something for the discerning, adding, “there is opportunity for the single and upwardly mobile; first time home buyers, couples, second home seekers, smart property investors and retirees looking for quality developmentsandattractivereturn ontheirinvestmentsthroughrental yield and capital growth”.

Eastern Europe (10 percent).

Globally,64,776peoplejoined PwC firms around the world – including 27,016 graduates and 32,924 experienced professionals. In FY18, nearly half of all the people who joined PwC were female, the report showed.

“PwC firms admitted a record total of 739 partners across the world. Thirty percent of our

firms’ new partners in FY18 were female. Female representation in the PwC member firm partnerships has gradually increased from 13 percent in 2006 to 20 percent in 2018,” the company cited.

Moritz concluded by saying “no organisation is, however, perfect. We have been criticised this year, and where we have made mistakes we have taken respon-

sibility for our actions. There are always lessons for us to learn and more that we can do to improve.

We are also very conscious of someofthecriticismthathasbeen levelled at our profession. We take this very seriously; we are working hard to address it and to better demonstratethecontributionthat we make to the capital markets and society as a whole.”

FSDH Research expects hike in CRR in fourth quarter Hope Moses-Ashike

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SDH Research, an arm of FSDH Merchant Bank Limited is expecting to see an increase in Cash Reserve Ratio (CRR) in the fourth quarter (Q4) of 2018 on the back of an elevated liquidity in the financial market as a result of election spending and the implementation of possible new minimum wage in Nigeria.

The firm also expects an increase in the issuance of Open Market Operations (OMO) to mop up liquidity.

Ayodele Akinwunmi, head, research, disclosed this at the Monthly Economic and Financial Markets Outlook titled ‘Interest Rate Hike in US, Hold in Nigeria: What Next’.

He said the yields on the Nigerian Treasury Bills (NTBs) and Federal Government Bond may increase and that this will prevent capital flight and encourage Foreign Portfolio Investment (FPI), while the interest rate on the new Commercial Paper in the market may also increase.

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) maintained all the policy rates at its meeting in September 2018.

However, the MPC expressed concerns in the following areas: the impact of expected high li-

quidity in the financial system on price stability, the rising inflation rate driven by escalating food prices, rising interest rate in the US and its impacts on Nigeria weak credit growth and sluggish growth in the Nigerian economy, and demand pressure at the foreign exchange market leading to a drawdown in the external reserves.

Akinwunmi and his team at FSDH Research believe the Federal Government needs to urgently implement policies that will grow and diversify the revenue base of the country to avoid imminent debt crisis.

FSDH Research forecasts that inflation rate will trend upwards to 11.37 percent in September 2018 on account of high food prices caused majorly by drop in food supply. “This short-term inflation outlook means that monetary policy stance will remain tight.

We however expect inflation to remain below 12 percent in 2018”, Akinwunmi said.

At the foreign exchange market, the firm said the persistent demand for foreign exchange in the face of declining inflows, led to a consistent drawdown in the external reserves in September. The current crude oil price and stable production in Nigeria should support the external reserves in the short-term. The current yields on the Nigerian Treasury Bills (NTBs) should also attract more foreign

investors and reduce capital flight as foreign investors’ rollover their maturing NTB investments.

An analysis of the financial market and outlook by FSDH Research revealed that the yields in the fixed income market closed higher in September than in August 2018. The need to maintain foreign exchange stability because of the rising risks on the Nigerian economy and expectations of rate hike in the US in September 2018 were the major reasons for the higher yields in the fixed income securities market in September 2018. The CBN maintained the Nigerian Treasury Bill (NTB) yields in September around the yield of the last auction conducted in August.

The expects a total inflow of about N1.07 trillion to hit the money market from the various maturing government securities and Federal Account Allocation Committee (FAAC)in October 2018.

“We estimate a total outflow of approximately N858 billion from the various sources, including government securities and statutory withdrawal, leading to a net inflow of about N1.07trn. The recent increase in the Fed rate by and expectations of a further increase in December 2018 coupled with the election considerations and weak economic performance, we are of the view that the yields on fixed income securities will trend upward in the month of October”.

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IOCs to buy four Nigerian crude cargoes for December CYNTHIA IKWUETOGHU

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nternational Oil Companies (IOCs) are set to purchase four crude cargoes containing four million barrels of West African Crude oil in its first tender for December loading this year, trading sources told Bloomberg.

IOCs are International and Multinational exploration and production companies with overseas origin and operating in several countries and regions of the world such as ExxonMobil, Shell, TOTAL, Chevron, and ENI. The multinational companies bought one cargo each of Usan and Forcados from glencore, an Anglo– Swiss multinational commodity trading and mining company, the sources said.

IOCs also bought one shipment each of EA, a major project of Shell Petro-

leum Development Company (SPDC) and Agbami from Shell to be filled with 1 million barrels of West African Crude oil each.

Traders said the companies were seeking to buy predominantly West African crudes loading from 1st to 10th of December.

Nigeria’s International Oil Companies also issued three tenders to buy nine cargoes of West Africa crude for November.

Nigeria’s average daily crude oil production dropped to 1.84 million barrels per day in second quarter (Q2) 2018, from the 2.00 million barrels produced in first quarter (Q1) 2018 and the 1.87 million barrels recorded in the same period last year.

However , the Organisation of Petroleum Exporting Countries (OPEC), in its monthly oil market report for September, said that crude oil production from Nigeria rose

L-R: Olukayode Pitan, managing director, Bank of Industry (BOI); Nasir El-Rufai, governor, Kaduna State, and Vice President Yemi Osinbajo, during the National Micro Small and Medium Enterprises (MSMEs) Clinic, in Kaduna.

to 1.71 million barrels per day in August from 1.53 million bpd the previous month.

“Crude oil output in-

creased mostly in Libya, Iraq, Nigeria and Saudi Arabia, while production declined in Iran, Venezuela

Stanbic IBTC, CYCDI energise youths on Sustainable Development Goals

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tanbic IBTC Bank, in collaboration with the Creative Youth Community Development Initiative (CYCDI), and Covenant University, Ota, have engaged the youth on better understanding of the United Nations (UN) Sustainable Development Goals (SDGs) and their role in their attainment.

The partners, in commemoration of the 2018 Global People’s Summit, organized a session at Covenant University recently, at which financial literacy was a major takeout. The Global People’s Summit is organized by the Humanity Lab Foundation in partnership with the United Nations Office of Partnerships.

It provides a platform for people and organizations around the world, especially the youth, to participate via a digital platform in theconversation to make change happen in society. It fosters collaborations, shares best practices, promotes innovation, builds community, celebrates success, influences global agendas, and finds new ways to translate vision into action.

Originator of the Global People’s Summit, Hazami Barmada, stated: “We amplify messages of people around the world and conversations and connect dots in the virtual space to enable making the world a better place a reality. Far too often the conversations around social impact happen in exclusive spaces, so people that have the privilege and the luxury to have access to passports and ability to travel have the ability to influence conversations. The change-the-

world conversation should not be bound or limited to exclusivity.”

In his welcome address, Aaron Atayero, vice chancellor, Covenant University, represented, Akan Williams, deputy vice chancellor, expressed the institution’s delight to be partnering with reputable organizations to foster youth development, which aligns with the university’s core goal of raising a new cadre of leadership in Nigeria. He said the institution is committed to making the youth to develop selfbelief, which will enable them become change agents and play a pivotal role in changing the narrative about Nigeria.

Stanbic IBTC Bank, the official partner to CYCDI InnoCreativa Youth Hub, made a presentation on “Funding Creativity and Innovation to achieve SDGs.” head, Personal Banking, Stanbic IBTC Bank, Nkolika Okoli, said Goal 3 of the SDGs and thrust of this year’s summit, ‘Ensure healthy lives and promote well-being for all at all ages’ is in line with the Stanbic IBTC Group’s status as an end-to-end financial services solutions provider. In this role, the group caters for the needs of its clients at every stage of life through bespoke products and services. The bank’s product, the Stanbic BluEdge Youth Account, for instance, is targeted at helping students and the youth to have a healthy start in life by cultivating a savings culture very early in life.

She emphasized that having a desired future entails being financially literate, which is essential to

taking informed decisions and actions, adding that the Group is ready and willing to provide support and forge partnerships towards the socio-economic development of Nigeria.

The session, which included a panel discussion by students of Covenant University on the imperative of avoiding drug abuse, also dissected such issues as Decent Work and Economic Growth, Promotion of Health and Wellbeing, Development of Innovation and Creativity and Application of the University’s Core Values to Achieve United Nations Sustainable Development Goals in 2030.

Foluke Michael, the chief executive officer and project director of Creative Youth Community Development Initiative, noted that while access to high-level UN discussions is exclusive to world leaders, the Global People’s Summit leverages technology to give everyone a seat at the table and democratize access to information. In its second year, the online summit creates a space for real-time conversations that inspire and lead to innovative partnerships that catalyze action for the SDGs, an agenda for global development established by the UN in 2015.

“The ambition, scale and scope of the Global Agenda adopted by world leaders in 2015 necessitate that it becomes everyone’s agenda, an agenda for us as individuals, for civil society, private sector, academia, local and national governments, international and faith-based organizations,” said Maher Nasser,

Director of the Outreach Division of the Department of Public Information, United Nations.

“We are always looking for ways to engage more people around the world in the work of the UN and generating awareness about and support for the SDGs. I welcome the opportunity to listen to input and ideas coming from those who want to be part of the conversation but are unable to be at the UN during UNGA,” he said.

As the future belongs to the youth, Okoli said Stanbic IBTC Bank is dedicating resources towards addressing their needs.

Such commitment necessitated the introduction of such initiatives as the Stanbic IBTC Youth Leadership Series, a youth empowerment motivational series, and the Stanbic IBTC Business Leadership Series, anannualevent that facilitates the sharing of knowledge and information among local and international participants who are drawn from key sectors of the economy.

“The popular saying that children are the leaders of tomorrow, as cliché as it may sound, holds true. But for us at Stanbic IBTC, we believe that the youths are the leaders for today and because we understand just how easily one can get distracted or discouraged by the different challenges we face in our lives, our youths therefore need to be aptly and constantly guided, mentored, inspired and motivated, not just to attain their goals but in order for them to actualize their full potential,” Okoli added.

and Algeria,” the 15-member oil cartel said.

Also, Brent crude prices have reached as high as $85

per barrel. The upturn in oil prices came as the United States’ sanctions squeezed Iranian crude exports

FCMB drives customer service week with value-added activities Seyi John Salau

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n line with its ‘customer-first’ approach to service delivery, First City Monument Bank (FCMB) has rolled-out series of exciting and rewarding activities to further enhance customer experience during the celebration of this year’s international Customer Service Week with the theme, “Excellence Happens Here” The theme recognizes that, ‘’space where customers and service professionals come together; from the call center to the executive suite, from the loading dock to the home office, from behind the wheel to the front of a monitor.

Where service happens is where Excellence Happens’’.

The Customer Service Week, which started 34 years ago, is a unique period when service organizations and global agencies extol the patronage and loyalty of their esteemed customers by introducing several unique and special activities to appreciate them. It is celebrated annually during the first full week in October and has grown into a global event, in which FCMB has always been involved over the years.

In a statement, FCMB said the celebration of this year’s Customer Service Week was memorable going by the number of activities it carried out for her numerous customers. These include, visit to some customers by the management of the Bank. For instance, FCMB visited and rewarded Sanusi Umar, its oldest customer in terms of banking relationship (based in Bauchi State). He has consistently banked with FCMB for over 26 years. Speaking during

the visit, Umar said, ‘’over the years, FCMB has been excellent and impressed me in various aspects, especially prompt over the counter cheques’ payments, quick online transfers, efficient alternate channels and flexibility of the Bank’s products. I am proud to say that my wife, four children and five other relatives have accounts with FCMB and they are very satisfied with the Bank’’.

FCMB also visited her young customers (who operate its kiddies account) and whose birthdays fell within the customer service week to present them with gifts.

In addition, the senior management members of the institution served as service advisors, teller and customer service officers in select branches of the lender nationwide, just as customers had the opportunity to call and have telephone interactions with the Managing Director.

Moreover, FCMB hosted some customers of its youth product, the “Flexx”, to an interactive session and rewarded staff who have demonstrated outstanding performance in customer service.

Goodwill messages were also sent to customers to appreciate them.

Commenting on the Customer Service Week and while thanking the Bank’s customers, Oluwakayode Adigun, senior vice president and divisional head Service Management and Technology, noted that FCMB will continue to focus on initiatives that will continually meet the needs and aspirations of her customers, as the bank understands clearly the power of the customers in her business and this is clearly reflected in the entire model for the Digital transformation of the bank which is customer lead.

Tuesday 09 October 2018

BUSINESS

COMPANIES & MARKETS

Business Event

DAY

15

Insurance stakeholders seek more support from govt on excessive taxation Modestus Anaesoro-

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ariousplayersfromthenation’s insurance industry have called on the government to support the industry’s growth and development by collaborating with stakeholders to work out ways of streamlining the taxation applicable to the sector.

This was the major view that ran through submissions of the panelists and participants at the one-day seminar organized by Leadway AssuranceinconjunctionwithPricewaterhouseCoopers (PwC) in Lagos lastweektoexamineTaxationMatters within the Insurance Value Chain.

Adetola Adegbayi, executive director, General Insurance, Leadway Assurance, who was one of the panelists argued that the insurance industry currently suffers from a complex tax structure that has always resulted in multiple taxation without understanding the complexity of insurance placements.

She cited the example of deducting withholding tax from “reinsurance commission” as a fundamental problem because the practice did not recognize the fact that such “commissions” are not earnings but “a reserve against reinsurance credit risk” for premium liabilities passed through the books of the insurer”.

“Brokers, agents, insurers and re-insurers pay different taxes, all of which principally come from the premium paid by one entity – the insured – due to the nature of the insurance value chain”, she further explained.

Adegbayi, therefore, cautioned that unless all stakeholders came

together “to collate the entire structure of the tax burden along the insurance value chain”, multiple taxation would continue to pose a threat to the well-being of the industry.

Taiwo Oyedele, nother panelist, , Partner, West Africa Tax Leader at PricewaterhouseCoopers, urged the government to support the insurance industry through a review of the specific tax regime that concerns the sector, adding that as the industry was saddled with bearing the nation’s risks, it should not also be burdened with taxes.

According to him, Nigeria’s poor social infrastructure continues to create multiple incidence of socioeconomic dislocations that impact heavily on the survival of the insurance sector.

In his words, “the growing rate of crimes in the society increases claims settlement, just as bad roads often lead to accidents, which increase claims. In the same way, poor health care brings about high death rate, thereby pushing claims up”.

While acknowledging the concerns raised by players in the industry, the Federal Inland Revenue Service (FIRS) called for a yearly tax interactive session with the insurance industry to help address all tax related concerns beleaguering the insurance industry.

Babatunde Fowler, executive chairman of FIRS, represented at the event by the Regional Coordinator FIRS, Toluwalase Akpomedaye, noted that such sessions have helped foster understanding with other sectors of the economy.

He assured stakeholders that the FIRS was willing to work with

the insurance industry to ensure growth and development, stressing that all the tax concerns expressed by operators in the industry were presently being looked into.

Fowler also charged operators in the industry to support the government by paying all necessary taxes, adding that the economy needed taxes to thrive.

Shola Tinubu, president, Nigerian Council of Registered Insurance Brokers (NCRIB), also supported the call for an annual tax session in the industry, pledging to take the message to the Nigerian Insurers Association (NIA) and the Institute of Loss Adjusters of Nigeria (ILAN).

In closing, Oye Hassan-Odukale, managing director, Leadway Assurance Company Limited, expressed gratitude to attendees for the poignant tax issues raised during the event, and to the regulator representatives for responding succinctly to each one.

He further stated that the organization of the event by Leadway was in demonstration of the company’s desire to work with all stakeholders towards ensuring a clearer understanding of tax matters which in turn would foster development in the insurance industry and by extension the economy.

He noted that the proposed annual tax interactive session was a brilliant fall-out of the meeting and expressed the confidence that this would really help improve the relationship between FIRS and the insurance industry.

“I agree that there is need for the industry to have a yearly interactive forum with FIRS and the Lagos State Inland Revenue Service (LIRS),” he submitted.

L-R: Jimi Awosika, vice chairman/GMD, Troyka Group; Yemi Ogunbiyi, pro-chancellor/chairman of the Council, Obafemi Awolowo University, Ile-Ife; Eyitope Ogunbodede, vice-chancellor, OAU, Ile-Ife; Wale Adeagbo, chief operating officer, Academy Halogen; Ganiyu Aderounmu, co-centre leader, ACE, OAU, Ile-Ife, and Ndubuisi Ekekwe, chairman, FASMICRO Group, USA, at the Knowledge Sharing Session on Cyber Security held in Lagos, with the theme ‘Digitizing Nigeria, A Meeting of Town and Gown’ organised by Academy Halogen and Obafemi Awolowo University, Ile-Ife Osun State

L-R: Babatunde Kuye, director, energy and infrastructure, BPP; Adebowale Adedokun, head, training ,research and strategic planning , BPP , and Segun Imohiosen, head, media /public relations , BPP , during the closing examination for the 2018 edition of the procurement conversion training for the procurement cadre in the MDA’S in Lagos.

Pic by Pius Okeosisi

LAPO urges TETFund to allocate more funds for scholarship award IDRIS UMAR MOMOH, Benin

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APO Microfinance Bank has called on Tertiary Education Trust Fund (TETfund) to allocate substantial provision of its fund to the provision of scholarship Awards to indigent students.

Godwin Ehigiamusoe, the managing director of the company made the call during the presentation of 2018 Scholarship awards to secondary and tertiary institution students as well as Skills Acquisition award ceremony in BeninCity.

He also called on governments at all levels to institute well managed scholarship scheme with a view to provide support to brilliant children from low-income households to realize their potentials.

He said the called became necessary, due to the exclusion of children from low-income households by increasing cost of access to quality education.

The LAPO Microfinance boss, who noted that 3,004

students have benefitted from the financial institution’s scholarship scheme since 2007, however, called for the urgent need for the prioritization of education and interventions by governments, corporate bodies and individuals.

“Every year at LAPO, we make it a point of duty to recognize the potentials and aspirations of our clients’ children, and we support their education in every way with our LAPO scholarship scheme which has indeed brought joy to the hearts of many families across Nigeria.

“When we established the LAPO MFB scholarship scheme and funded it with the cash of $10,000 we got from winning the prestigious Grameen Foundation’s Excellence in Microfinance Award in 2016, the intent was to stay true to our mission to improve lives and we are indeed glad to see this dream come true.

“This educational empow-

erment is our little way of supporting our clients’ children and the less privileged in the society. We are extremely happy about the performance and growth of these students, and the huge relief it has brought to their pants and guardians.

“LAPO scholarship awards are to assist our clients to consolidate their future. In our 30 years of engagement with Nigerians at the bottom-end of the society, we have to realize that their major concerns as well as aspiration are quality education for their children.

The scholarship is therefore, made signed to assist them to realize their aspiration”, he said.

He said, a total of 100 students benefitted from the 2018 scholarship award across 33 states in the country while a total of 309 young Nigerians have benefited from its technical and vocational skills acquisition programme since 2016.

He however, advised the beneficiaries to value the scholarship by ensuring that they make judicious use of the gesture.

L–R: Femi Adeoti, MD/CEO, Inlaks, Africa Operations; Eze Anaba, Editor, Vanguard Newspapers; Tinuade Awe, executive director, regulations, Nigerian Stock Exchange, (NSE); Yusuf Kazaure, MD/CEO, Galaxy Backbone, and Ogbonnaya Ugama, deputy director, policy & competitions, Nigerian Communication Commission, (NCC), at the Economic Forum series on E-conomy: Nigeria’s Emerging Digital Economy and the Role of Financial Technology organised by Vanguard Media Limited in Lagos recently.

L-R: Sam Iwuajoku, director, Quits Hospitality Limited; Hadi Sirika, minister of state for aviation, and Chris Nassetta, chief executive officer, Hilton, at the opening of Legend Hotel Lagos Airport, a Curio Collection by Hilton recently.

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BUSINESS DAY

Tuesday 09 October 2018

BUSINESS DAY

Tuesday 09 October 2018

Elections: How much is socio-economic conversation driving voting patterns?

Stories by DANIEL OBI Media Business Editor

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the payment of four months’ salary to workers in the state and arrears also owed to pensioners.

According to another analyst, with about 13 months’ salary arrears, the party still won the election, which indicates that the voting was largely influenced by passion and emotion rather than economic consideration. He believed that these considerations by the electorate will also be key in 2019 generations.

The immediate former CEO of Advertising Practitioners Council of Nigeria, APCON, Bello Kankaroffi said ethnicity, religion and money will play more roles in the 2019 election. He wondered how many of high income Nigerians will come out to vote.

In 2015 elections, conversations and emotions played major roles which media assisted to hype in favour of the opposition then. The minister of Information, Lai Mohammed equally acknowl-

edged this role.

In September 2015 during the launch of a book -Nigerian media leaders: Voices beyond the newsroom edited by Richard Ikiebe, a media scholar in Lagos, the APC spokesman Lai Mohammed emphasized the contribution of the media saying that the party was in full support of the book launch in appreciation of the role of the media in bringing about the change of government.

Conversations and media Nigeria’s return to democracy in 1999, after 16 years of military interregnum, naturally witnessed the lifting of press censorship. The new press freedom heralded the proliferation of electronic and print media, some of them established principally to propagate political views. Prominent news outfit that emerged include Daily Trust, The Sun, The Nation, The Compass, Leadership and a host of

others.

Within this period, other old media outfits deepened their political interest and many of them including the new ones were accused of brazen partisanship which manifested in their biased reporting This much was attested to by the report of the Commonwealth Observer Group to Nigeria’s 2015 elections led by Bakili Muluzi, former President of Malawi .

“Many advertisements were highly provocative, and made accusations about opposing candidates which were potentially defamatory. It is of concern that print and broadcast media were all too willing to publish and broadcast these lucrative adverts without censure by the regulatory authorities. Many newspapers published ‘wrap advertisements’ which looked like normal front pages, but were in fact paid-for advertising masquerading as news”, the report said.

The then opposition party APC, leveraged the party’s communication machinery and the party’s influence on the dominant South West media to mount a successful media campaign that helped sway public opinion in its favour. The party understood that what was really important was not what was said but how it was said, where and to whom. This worked.

The APC and its communication machinery understand the ‘mediatised’ society. It ‘employed’ the media (the powerful and influential South West media) to listen to it. Some of the politicians within the party were accessible to journalists and editors and this resulted in frequent reports in favour of the APC. After three years however, opinion is now divided.

Some in the media are still holding strong to the views expressed during the 2015 elections, others are dancing different tunes while some others are on the fence. This, according to experts, will make for an interesting 2019 election campaign.

Okusaga who is the Managing Director of Precise (Reputation Generation) firm said the Media will play two roles in the 2019 elections, as agenda setter and as a disruptor. According to him, the media is already leading conversations on a myriad of issues, amongst which include the decamping of political players and conversations around challengers to the incumbent, President Muhammadu Buhari. In setting agenda, the media is raising the political temperature by exciting the voting public and leading conversations on a post 2019 scenario.

hile most Nigerian electorates are becoming more politically conscious and knowledge-empowered, voting pattern still depends on two strong pillars – socioeconomic conversations and passions.

Whereas the low income group of Nigerians rely more on emotions and passions informed by ethnicity or religion, the middle and high income Nigerians’ votes are influenced by socio-economic and political conversations and promises backed by concrete steps.

Akonte Ekine, a PR practitioner based in Lagos said when development and economic conversations appear insignificant in election is when low income electorates with voting strength outnumber other groups of people. In Nigeria, there are many low income people who file out for elections than middle or high income Nigeirans.

Citing Osun State recent election, Bolaji Okusaga, a strategy and brand enthusiast with wide experience in marketing and Public Relations acknowledged that economic consideration played a major part in the election which nearly saw the opposition winning the election until the last minute political realignment.

Osun was said to be owing workers about 18 months’ salary arrears but 11 days to the governorship election on September 11, 2018, the state government released N19.8 billion for

L-R: Director/Producer, ‘The Price is Right’, Abraham Praise; Executive Producer, Olatubosun David Olaegbe; CEO, HS Media Group, owners of the HotSports Brand,Taye Ige and Chief Operating Officer, HS Media Group, Robert Paltiel during the signing of the MOU between Genesis Studios, official franchise owners of ‘The Price is Right’ in Nigeria and HS Media Group for the production of the Nigerian version of the American game show in Lagos recently.

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Marketing expert advocates restructuring of Nigeria’s Ministry of Information

arketing Communications expert and Managing Director, Prima Garnet Africa, Lolu Akinwunmi has advised the Federal Government to urgently reorganize the Nigerian Ministry of Information in order to ensure maximum value in the areas of nation building and public information management.

Akinwunmi, who spoke at the launch of a book, SKIN to SKIN: The Prima Garnet Story, in Lagos recently, said the nature and structure of the

current Information Ministry is more of a colonial relic and cannot cater to the robust, interactive communications needs of a developing country in the 21st century.

The advertising practitioner, who at one time, headed the Federal Government of Nigeria’s rebranding project said there was no good reason the Information Ministry

would be different from the Ministry of Communications and insisted the two should be merged into a single Ministry to be known as Ministry of Public Communications.

Such an arrangement, he said would enable a strategic approach to positively manage the perception of government and its leaders while at the same time ensur-

ing a stronger engagement between the government and the people by exploring technology and all other interfaces needed to effectively communicate with the people and engage the international community.

“We do not need a Ministry of Information that is separate from the Ministry of Communications because

the two are so intertwined there is no need to separate them in this modern time.

There is urgent need for the redesign and refocus of the Information Ministry to enable it properly serve as the communication engine of the country, instead of just being the mouthpiece of the Federal Government,” Akinwunmi stated.

17

HS Media Group signs on The Price is Right

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n line with its projection to redefine the nation’s enter tainment land scape as well as add value to the society, HS Facilities Ltd, a subsidiary of the HS Media Group has sealed a deal with Genesis Studios, foremost Nigerian television production outfit and owners of The Price Is Right franchise for the Nigerian territory, a statement has said. The Show which is expected to debut on Nigerian television before the end of the year will be produced from the Oregun-Lagos based TV Complex.

Aside its entertainment offering, the global reality show currently the longest running game show on American television, is popular for the opportunity it gives to families to win prizes.

At a press briefing in Lagos to formally announce the partnership and as well sign the Memorandum of Understanding for the show to take off, the two companies jointly expressed their excitement about the benefits the show will bring to families in Nigeria and brand owners who will ride on it to position their products.

The Price Is Right is a multinational franchise show that was hosted by Bob Barker until 2017 and Drew Carey thereafter. It features a wide variety of games and contests with the same basic challenge: Guess the prices of everyday (or not-quite-everyday) retail items. Four contestants, all of whom are seated in one of the wildest audiences in daytime game-show history, are called to the stage to play a preliminary pricing round. That winner joins the host on stage for one of more than 70 different pricing games.

The Chief Executive Officer of HS Group, Taye Oladimeji Ige, said he was happy that at last his Company’s dream of attracting world class quality shows currently produced abroad back to Nigeria is becoming a reality. He described The Price is Right as the first client as far as television production is concerned in the Centre, easily the “newest and biggest television production complex in the west coast of Africa” adding that the pedigree of Genesis Studios and the global acceptability of The Price is Right was the major consideration for the partnership.

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BUSINESS DAY

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With presumed 20% PR business profitability drop, Report discusses way forward

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he Nigerian PR Industry has been suffering from a slow decline in profitability, as competing practices continue to encroach on the public relations space. These, and other revealing data, are contained in the third edition of Nigeria PR Report, issued recently in Lagos city with the most concentration of PR consultancies in the country.

Published by BHM Research and Intelligence, the 2018 Nigeria PR Report, records a 20% drop in respondents’ assessment of profitability in PR and a 33% increase in the number of respondents who think profitability is dwindling, reaffirming the fact that PR is mostly the first casualty when companies initiate a cost-cutting exercise.

Dwindled PR spend caused by the 2016/17 economic recession in the country manifested in the profitability of PR businesses.

‘The state of affairs has been driven largely by currency volatility, macro-economic shocks and policy issues with big spenders like MTN and Etisalat (now 9Mobile) in the Telecom sector, the Unilevers and the P&G’s in the FMCG sector crawling back with consequent squeeze on the local PR industry”, says Bolaji Okusaga, one of the key respondents whose think piece is also featured in the report.

The report, which gathers and analyses data on trends, percep-

L-R: Chris Rembges, marketing consultant, Mouka Limited; Dimeji Osingunwa, commercial director, Mouka Limited; Timothy Ifurunua, Mouka distributor, and Raymond Murphy, managing director, Mouka Limited, during the launch of Mouka Mondeo Spring Mattresses in Lagos recently.

tions, challenges and prospects within the industry, is a joint product of the BHM Research team and Brentt Consulting, one of Nigeria’s most respected market research companies.

Since its inaugural publication in 2016, PR industry stakeholders – practitioners, clients, investors, regulators, media and students – have come to look forward to the annual release of the report due to

Mouka unveils new generation of mattresses …Launches Mondeo brand

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igerians have another good reason to begin every day with smiles on their faces and a spring in their step with the launch of the exciting new Mouka Mondeo Spring mattress range.

In its continued drive to add comfort to life, Mouka Limited, Nigeria’s mattress manufacturing company, announced the launch of its next generation of mattresses and pillows, the Mondeo Spring Mattress and six varieties of new generation pillows.

“Mondeo Spring consumers will happily discover that every night will be a real good night,” said Ray Murphy, Mouka Limited CEO, when presenting the products to the company distributors during the 2018 distributors’ conference in Lagos.

“Mouka’s commitment to providing the best comfort for its customers through continuous innovation has led to the introduction of the Mouka Mondeo spring mattress,” he continued.

The new Mouka Mondeo Spring mattresses have undergone extensive product development and feature superior spring technology for maximum support and spine alignment as well as air vents to optimise sleep comfort. Combined with quality layers of foam and quilting, the responsive springs provide both durability, comfort and the correct full body support for a good night’s

sleep, he said.

“Our focus is always on providing comfortable, supportive and durable products, with quality materials at affordable prices,” said Murphy. “The Mouka Mondeo mattresses feature proven spring technology manufactured to Mouka quality standards”.

Presenting the pillows, Murphy said the relevance of a good pillow to a good sleep cannot be overemphasized, providing support for your neck and upper back is the most important role the pillow needs to fill while you sleep. Having the correct support helps maintain the proper alignment of your neck and spine.

Mouka Limited is introducing six varieties of new generation pillows to the market.

Dimeji Osingunwa, Mouka Commercial Director, added the company’s quest for improved comfort through research and the development of new innovations has led to the massive investment in technology in the manufacturing of its products. “The investment in the new spring mattress line will allow us to provide a wider range to meet the needs of a growing consumer demand.” He added not only are the mattresses durable, they also enhance the wellbeing of consumers, offering better body support and spine alignment for optimum comfort, with each mattress coming with a 5 year guarantee.

the useful insights that the report offers. As in previous editions, the 2018 Nigeria PR Report looks at current trends, backed up by both quantitative and qualitative analyses.

Also, this year’s report is a product of online surveys, focus group discussions and individual interviews covering key stakeholder groups like agency CEOs, PR consultants, media practitioners and

clients being served by PR experts.

The facts are presented in a readerfriendly format, employing infographics in data presentation for better understanding.

Over 400 practitioners were surveyed, over a period of 4 months. At least 25 professionals participated in focus group discussions. Expert opinion articles were collected from Nigeria, South Africa, Canada, the United Kingdom and the US.

Infinix brand says survey places it high in Nigeria’s smartphones penetration SEYI JOHN SALAU &J EREMIAH MBATA

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ranssion Holdings has said that a recent Euromonitor International survey on mobile phone penetration on mobile phones in Nigeria has placed Infinix Mobility at the top with 8.5 percent market share .

It linked the brand’s top position with the highest brand market share in the Nigerian mobile phone industry as at the end of August 2018 to the brand’s well-established repertoire, a large consumer base, overall product functionality, strong affiliation with e-commerce platforms and ease of access to readily purchase products.

It said Infinix Mobility has over the years introduced devices such as the Hot S3X, “Beyond Intelligent” Note 5, “Intelligent crea-

tor” Note 5 stylus amongst others, which has reflected on the brand’s retail market share rising up to 8.5percent higher than the nearest competitor which stands at 7.6percent.

The company also said Infinix Mobility growth in retail market share within Nigeria can be attributed to the brand’s extensive understanding of the operating environment. Adetayo Odunowo, the marketing communications manager at Infinix told BusinessDay that the smartphone brand’s vision is to become the most popular and fashionable smartphone brand in emerging markets.

“Basically, we want to build beyond technology; almost everyone uses smartphones that have some features, the difference is what the brand has done extra in terms of quality,” said Odunowo.

It quotes the survey as forecasting that smartphones penetration rate in Nigeria is expected to increase based on the early and successful passage of the Telecommunication Critical Infrastructure Bill by National Assembly, and it is expected to boost internet usage in Nigeria which currently stands at 47percent of the population in 2018.

Tuesday 09 October 2018

ADVAN begins preparations for 2018 Marketing Excellence Awards, calls for entries

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he Advertisers Association of Nigeria (ADVAN) has announced the commencement of preparations for the 8th edition of its Awards for Marketing Excellence scheduled for November in Lagos.

The ADVAN Awards recognizes commitment and the fostering of professional excellence in advertising and marketing practice in Nigeria by recognizing good works by practitioners and institutions in the industry.

The Chairman of the Organizing Committee, Austen Osokpor said in a statement that “The ADVAN Awards for Marketing Excellence will be presented to organizations and marketing professionals who have achieved extraordinary success from innovative and effective marketing practices. He further stated that The ADVAN Awards was highly respected because of its meticulous and transparent judging process, “To win an ADVAN award , you must submit your work for thorough screening by the judges, who evaluate all entries based on international standards, this is what puts The ADVAN Awards ahead of all other awards in the Industry” Osokpor said.

Other members of the Awards Planning Committee include: Ediri Ose Ediale, ADVAN Executive Secretary; Gerald Osugo,9Mobile Nigeria; Ehis Emokhare, FrieslandCampina WAMCO Nigeria Plc; Nnenna Osi-Anugwa, Unilever Nigeria Plc; Ufuoma Dogun,9Mobile Nigeria; Kenneth Iruonagbe, Dufil Prima Foods; Lanre Da-Silva, Honeywell Flour Mill and Dorcas Mashingil, Guinness Nigeria Plc

UK-trained Nigerian lawyer promises to help SMEs succeed

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UK-trained Nigerian lawyer has launched a startup to help Nigerian businesses escape the frustrations of incorporation, operations, filing, and taxation.

Efe Ugboro, who has worked as a corporate lawyer in Nigeria and in the UK, before co-founding 618 Bees, says she’s dedicating her career to ‘helping businesses grow’.

‘Working as a corporate lawyer, exposed me to the issues many businesses in Africa face’, she says.

‘It’s difficult to register a business, difficult to understand all the issues around filing, taxation, and so much more. And most young businesses find themselves crumbling under the frustrations. There are many who just wing it until they realise that they’re in a mess.’

According to Efe, 618Bees.com was set up to be the quickest way to get a company started in Nigeria.

The company is launching with a focus on Nigeria for now, but plans to open up to other African cities where aspiring entrepreneurs are facing similar challenges.

Tuesday 09 October 2018

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BUSINESS DAY

19

Energy Report Oil & Gas

Power

Renewables

Environment

Nigeria misses race to pump more oil as supply shortage looms STEPHEN ONYEKWELU

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igeria’s oil taps are unlikely to be among those to fill the looming oil supply shortage as the political problems in Venezuela linger and United States of America’s sanctions on Iran set in, November.

While Russia and Saudi Arabia, two largest oil exporters are pumping an extra 1 million barrels a day of oil and could do even more according data compiled by Bloomberg, traders continue to speculate whether the Organisation for Petroleum Exporting Countries (OPEC) and allied producers can offset a supply loss in Iran and declining production in Venezuela.

“Investors are betting the oil market will tighten as Saudi Arabia and Russia won’t be able to fill the gap with optimum timing” Takayuki Nogami, chief economist at Japan Oil, Gas and Metals National Corp. said by phone from Tokyo to Bloomberg. Still “after the recent price rally, oil is now in the overbought

territory, which could lead to profit-taking.”

Nigeria may not be able to take advantage of this supply shortage window as data obtained from the ministry of Petroleum Resources show that Nigeria’s production since the month of May has averaged 1.7 million barrels per day and could go up to 1.8 million barrels per day by the end of October. This includes figures for condensate. This means that while Nigeria has

struggled to maintain production at output limit imposed

by OPEC, it may be unable to add new barrels.

Perhaps this informed Nigeria’s unwillingness to support a deal that will see output increase prior to the meeting which held in Vienna on June 23.

“I hope we will leave here with at worst, a decision that even if there will be increase, it will be a very very marginal increase,” Kachikwu had told

journalists before the meeting.

Nigeria needs over $20bn in new financing to ramp crude oil production to 2.5million barrels per day (bpd) but with local banks exhibiting low appetite for lending to the sector due to high non-performing loans estimated last year to constitute about 40 percent banks NPLs, local players say they are being forced to task their brains for new solutions.

Power generation average 3,668mw/hour OLUSOLA BELLO

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he average energy sent out was by all the power generating companies in the country at the weekend was 3,668MWh/hour. This was marginally up by 85.41MWh/h from the previous day.

About 747.5MW was not generated due to unavailability of gas while115MW was not generated because of transmission infrastructure, just as another 2,603.2MW was not able to come on stream as result of high frequency resulting from unavailability of distribution infrastructure.

Because of significant improvement in water there was not loss recorded.

The power sector lost an estimated N1,664,000,000 (One Billion Six Hundred and Sixty Four Million Naira ) this weekend, due to insufficient gas supply, distribution infrastructure and transmission infrastructure.

In the last two years peak average power to date recorded was 4,557mw and this was in February 2016 while the highest generation ever re-

corded by this administration was 5,3222mw in December 2017 just for a few minutes .

Meanwhile industry experts have said unless the federal government takes urgent measures to stem the tide of illiquidity currently confronting the nation’s electricity distribution companies, the nation’s hope of stable power supply in the near future may remain a mere dream.

Power sector insiders disclose that it could be difficult if not out rightly impossible for the DISCOs to perform optimally given their weak financial positions and inability to generate funds from their operations owing to several constraints. Specifically, the non-implementation of the cost reflective tariff has been cited as the key factor responsible for the DISCOs weak financial base in the last three years.

Only last week, the Nigerian Electricity Regulatory Commission, NERC, in its Quarter 1 2018 Report, disclosed that the 11 DISCOs’ debts to the Nigerian Bulk Electricity Trader, NBET and Market Operator, MO, was a staggering N112billion.

In that quarter, the DISCOs, out of a total indebtedness of N163.1billion to NBET and MO, was able to pay only N51.2billion, an amount a little above 30 percent of the total owed.

NERC attributed DISCOs liquidity challenge to non-cost reflective tariffs, high technical and commercial losses as a result of consumers’ apathy to payment owing to their disdain for estimated billing and poor quality of supply in most Load centres.

NERC painted the grim picture thus: “of the N171.1billion billed to customers in the first quarter of 2018, only N106.6billion was recovered, representing 62.3 percent collection efficiency.

Therefore, of every N10 worth of electricity sold during the quarter under review, N3.8 is uncollected.”

Power sector insiders however painted a grimmer scenario, insisting that the NERC figures did not capture the total picture of DISCOs pathetic predicament.

“The situation is more serious than NERC has presented it. When you add the high interest charges on facilities

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson.

these DISCOs were availed by their banks, huge CAPEX requirement for capital projects, recurrent expenses, other deductions etc, you will appreciate the frustration of these investors and why they are asking the federal government to come take back their assets,” a retired Director at Power Holding Company of Nigeria, PHCN, said last weekend.

He said further: “No nation treats its investors as these investors have been treated.

To expect them to perform optimally is not only unrealistic but totally impossible.”

Take the indebtedness NERC is talking about in respect of NBET. It defies logic.

You deprive a distributor the opportunity to sell her product at cost reflective prices, contrary to the contract you signed, you now started billing her actual cost of the product from the factory. You now go ahead to record the difference between the actual cost and the price you approve for him to sell as debt for him in the books. Unless something fundamental happens to break the cycle, the indebtedness can only continue to grow in the books.”

In June, Nigerian National Petroleum Corporation (NNPC), FIRST Exploration & Production (First E&P) and Schlumberger signed a tripartite agreement for development of the Anyala and Madu fields under OML 83 and OML 85, offshore Nigeria at the cost over $700m.

Under the agreement, Schlumberger will contribute the required services in kind and capital for the project development until first oil. The joint project team will leverage the technical expertise of Schlumberger and the extensive local knowledge of the partners.

“Our industry cannot go on without having liquidity in country to finance our business, we cannot always go outside to the international banks, during the last three four years, there have been a lack of equity in this market, to even raise $5m in our local market has become very difficult, but we have to find the solutions,” AdeyemiBero, CEO, managing director First Exploration & Petroleum Development Company Ltd said at the Society of Petroleum Engineers Conference (NAICE 2018).

In 2016, OPEC and some

non-members including Russia agreed to cut global output by 1.8 million bpd in a bid to help rebalance the market. The measure was largely successful as within 18 months, oil prices rebounded to around $75 per barrel from as low as $27 in 2016.

Oil prices were further helped northwards by unexpected outages in Venezuela, Libya and Angola which have effectively brought supply cuts to around 2.8 million bpd since this year.

Abatement in militancy had helped Nigeria regain nearly 800,000 bpd it lost due to actions of various militant groups especially the Niger Delta Avengers. The government embarked on intense efforts at negotiations including using backchannels. The move has largely paid off as militancy has quietened.

But Nigeria has done little to encourage new production.

Contrary to indications given by the ministry of petroleum resources and the Department of Petroleum Resources, (DPR) that the oil licensing rounds for marginal oil fields would take place in the first quarter of this year, nothing has been heard.

How Nigerians can save money on energy consumption

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igerians can save money on energy consumption by embracing renewable energy especially solar power, Omolara Onuwa Abiamuwe, chief responsibility officer ( CRO) of Light4Africa, has said.

She said renewable energy financing enable platform has been designed to ease energy- financing problems for households, SME’s and Rural Communities in Nigeria and Africa in general.

According to her most households and SME’s in Africa would despite paucity of electricity be on the lookout for ways to save money on energy consumption and one of the best ways to save money in a sustainable manner is by investing in renewable energy especially solar power.

To this end, the CRO boss stated that OSM – FINC Limited, a financial inclusion solution provider and product Development Company has reiterated its commitment to change the narrative that “Africa is a Dark continent” to Africa, a continent that shines in darkness”.

To achieve this it has partnered with reliable solar power product and solution providers to provide affordable solar power bundles on one hand and on the other hand financial institutions to provide affordable financingto households, SME’s and communities, thereby guaranteeing Sustainability and ease of access over a convenient period of time.

“Lights4africa now present unique opportunity for households, SME’s and rural community to access uninterrupted power supply with a resultant effect of access to qualitative education, personal, as well as corporate productivity and a prosperous wellbeing of Nigerians and Africans in general,” she said.

The light4African Platform:- www.light4africa.com enables registered customers to a access financing for their solar bundles with outputs ranging from 0.8VA – 10KVA through arrangements such as purchase, save to purchase, fixed payment purchase, lease to purchase and power consumption agreement.

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

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Energy Report

Investigation reveals gas flaring levels in Nigeria highest since 2013 LEONORE SCHICK, PAUL MYLES AND OKONTA EMEKA OKELUM

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nfrared satellite data reveals gas flaring has increased in the Niger Delta, despite government promises to curb the practice.

Gas flaring has increased in Nigeria, despite claims by the government and businesses that the practice would be phased out by 2020. Gas flaring, the burning of gas when extracting oil, was made illegal in Nigeria in 1984 and numerous attempts to eradicate the practice have failed.

We analysed satellite data from the from the last

five years to test whether flaring levels had changed during this period and found an uptick in gas flaring earlier this year, casting doubt on government claims that flaring will be ended by 2020.

Rory Hodgson, a geospatial data analyst, compiled the figures from a National Oceanic and Atmospheric Administration’s (NOAA) satellite, which has recorded infrared readings for over five years.

Hodgson said, “the satellite data appears to show a marked increase in radiant heat emitted by gas flares in Nigeria starting late 2017.”

It is the first time since the satellite’s launch that

Satellite data Vs offical NNCP reports on Nigerian gas flaring - Trends over time

Screenshot of an interactive map

Screenshot from a CartoDB map of hot spots in the Niger Delta and offshore

readings have been so high.

“The data points to 2018 having more gas flares burning more intensely than has been seen for the past 5 years,” said Hodgson.

According to the World Bank’s rankings Global Gas Flaring Reduction Partnership from in July 2018, Nigeria is the sixth largest gas flaring country globally, and the second largest in Africa after Algeria.

Gas flaring “causes more than 350 million tons of CO2 emissions every year, with serious harmful impacts from un-combusted methane and black carbon emissions,” according to the World Bank.

According to the United States Environmental Protection Agency’s green-

NIPCO investments in growth strategy boost capacity building

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IPCO Plc has increased its investments on capacity building as a strategy to enhance rapid growth in the country’s challenging business environment.

Sanjay Teotia, managing director of the company stated this at the performance management workshop for NIPCO staff in Lagos.

He added that the surge in capacity investment was to awaken and cultivate new learning culture in staff. This he said is not only to enable the company survive in the challenging business environment but also grow in an organic manner and stronger.”

Stating that the performance management is a crucial tool in employee performance, the managing director maintained that the learning programme which cuts across all cadre of the workforce with the theme” Building effective performance culture to overcome future challenges” is part of the company’s human capacity development programmes.

“We had realized that pri-

oritizing continuous learning and development of human capacity is imperative for the success of our organization, hence our decision to always put together a refresher programme on PMP,” he said.

According to him, “a joint and collaborative effort between the employees and their bosses will generate positive and constructive feedback that will improve an employee accomplishment which will in turn increase efficiency, productivity, improve balance sheet and increase employee satisfaction.”

He c o nt i nu e d ; “ Th e theme of this year’s performance workshop is very apt in view of the challenges in the sector occasioned by changing business realities.

“My management approval of the training is largely predicated on our resolve to continue to develop the capacities of our employees to meet the challenges of the future and motivate the employees by creating a sense of direction with their involvement in the process of managing their performance thereby mak-

ing their assessment, reward and recognition transparent.

Human capacity development, the NIPCO’s helmsman said, is cardinal to his management team as a veritable way of keeping our employees up to date in all aspects of their engagement.

“The company is convinced that the success of any organization depends largely on how properly equipped its employees are in terms overcoming challenges within stipulated behavioural framework which will in the end bring about the development of the company.

“It is against the foregoing that my team had directed the human resource and administration department to step up actions in this regard with a view to enhancing the capabilities of all employees by engendering developments in their field of endeavour through the practice of performance management.”

He declared the workshop open with a plea that all employees should remain good ambassadors of the company in its quest to be the first choice company in the Oil and Gas industry.

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house gas equivalencies calculator , the amount of greenhouse gas emitted by gas flaring in 2016 Nigeria was equivalent to over four coal fired power plants running for a year.

Over two million Nigerians live within a four kilometre radius of a gas flare in the oil rich region in southern Nigeria, according to estimations based on WorldPop data.

Scientists who analysed the impact of gas flaring on soil, rain and air wrote in a study (Uyigue and Enujekwu, 2017): “no meaningful human activity can take place in any of the gas flaring locations at radial distances up to two kilometres away from flare point.” Just under 670,000 people live

within 2 km of a flare.

Gas flaring is also said to be wasteful financially.

Edward Obi of civil society group GASIN agreed. “It defies all economic thinking,” he said.

A failure to implement the 1984 ban on flaring has culminated in over $14 billion of potentially uncollected fine-money between April 2008 and October 2016, according to analysis

by Vanguard news.

The World Bank is optimistic that recent legal changes will make an impact. “Our hope is that the recently approved gas flaring regulation, which was designed by the Nigerian government, will incentivise and encourage flaring reduction projects by

third-party investors, and not only by oil field operators,” said Bjorn Hamso, Program Manager at the World Bank’s Global Gas Flaring Reduction Partnership (GGFR).

But as Nigeria advances towards the 2020 deadline to end flaring, the problems linked to the practice may rise if companies continue to flare.

Environmental activist Lazarus Tamana who has campaigned for 28 years against Shell’s activities in the Delta with the Movement for the Survival of the Ogoni people said, “the government doesn’t have the willpower or sincerity to force these oil companies to use modern equipment.”

GASIN’s Edward Obi, who founded the group nine years ago, is currently working with a group set up by the government to commercialise the gas. He believes the government should invest in infrastructure, and not prioritise selling gas for profit because “gas as it is already a hazard, so even capturing it and containing it is already a win.”

For Obi, the 2020 flare out date is unrealistic.

“Speaking from someone who has worked in these developments over time,” he said, “I have not seen any significant development that suggests that the 2020 deadline can be met.”

Who will fill in for Iranian oil when sanctions kick off

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he billion-dollar question for the month is definitely who will fill in the gap for the Iranian oil that is about to be removed from the market due to another phase of U.S. sanctions. The consensus among hedge funds is that the Saudis won’t be able to, despite the fact that Riyadh keeps telling Washington that it can fill the lion’s share of the gap.

There have been rumours in the region that Saudi Arabia and the UAE—both facing a bit of a cash crunch—are actually seeking to push oil prices higher and may be coordinating efforts to miss production targets to that end.

While the wider oil community in the region has expressed the opinion that the Saudi’s may not be able to increase production to the extent that they have claimed, typically, the Kingdom has 1.5-2 million barrels per day of spare capacity meant to manage the market. However, that spare capacity—which is the subject of debate—cannot be kept up indefinitely.

Reports that emerged last week citing unnamed sources claim that the Saudis and Russians had already agreed (without the rest of OPEC) at the end of September to

“quietly” raise output through December to keep oil prices under control.

This is a very delicate balancing act for the Saudis. They would like the extra cash that high oil prices bring; however, their moves and public statements are not meant to appease Trump so much as to avoid the media barrage of ‘cartel’ headlines. At the same time, they are concerned about letting prices drop low enough to threaten investment in an industry that needs to be pumping more to make up for the Iranian supply loss. One thing is sure, global spare capacity will drop significantly as producers ramp up to fill in the gap.

While hedge funds are busy betting that the Saudis cannot make up for a loss of Iranian oil on the market once the next round of US sanctions hits on November 4th, inside Saudi Arabia, there is a fair amount of panic about the Crown Prince’s (MbS) propensity for over-spending and putting the Kingdom’s coffers in a position from which they would have a hard time recovering.

According to Oilprice.com sources with access to royal advisors, dealing with MbS requires a manipulation of the documents that are allowed to

cross his desk, with any investment idea that is too tempting and risky removed before viewing in order to protect the Crown Prince from himself.

Under MbS, many of the conservatives in Saudi inner circles have been sidelined; and along with them the spending caution. Instead, MbS has surrounded himself with bankers who are more in line with the Crown Prince’s tendency to go for big, flashy deals that aren’t necessarily realistic or in the interest of the Kingdom. MbS has committed billions of dollars to Vision 2030 ideas that won’t see any financial returns any time soon.

These conservative forces who are working behind the scenes to keep things from spiraling out of control operate—for all intents and purposes—as a Saudi “deep state”. This same “deep state” was successful in ensuring that the much-hyped Saudi Aramco IPO was derailed.

Part of the reason for this was that many of those that MbS sidelined were from Aramco; but Aramco’s own economists were busy trying to convince a line-up of advisors to MbS that the IPO would flounder (it wouldn’t be the cash cow that the Crown Prince thought it would be).

Tuesday 09 October 2018

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AVIATION

GUIDE

BUSINESS DAY

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in association with

‘Creating employment opportunities in Africa’s aviation sector is key for us’ Air France recently unveiled its new cabin in premium economy and economy for its A330s at the BHV Marais in Paris.

About 15 aircraft will be equipped with the new cabins and rolled out from January, 2019. In an interview with Ifeoma Okeke, Frank Legré, Senior Vice President, Africa for Air France/KLM, speaks of the importance of the new innovations.

Which countries will these newly equipped aircraft be deployed to? he first countries will be Ouagadougou and Accra.

It will shortly be spread all over our African networks. In 2019, we will roll out more aircraft and the 15 fleet will be complete by the end of the year.

same time very good price, so for us, it the very competitive market.

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What are the major changes you have carried out in this exercise?

For the economy and premium, we have brought elegance and we have changed the colours. We have put a bit of bright colours which are still attuned with the brand of the aircraft. First, it is elegance and at the same time more comfort.

Specifically, in premium economy, we have designed a new seat. There is more leg room and space and a larger screen. This also goes for the economy. In summary, it is French elegance and at the same time, more comfort for our customers.

If you look at the configuration of your A330s, are we going to have same seats in Business, Premium economy and economy?

We are going to change the number of seats aboard. We currently have 40 seats in business class; it is going to move to 36. We are going to keep the same numbers of 21 seats in Premuim economy and we are going to add 20 seats in economy. In the end, we are going to have seven percent more seats on-board, a bit less business and more suited to our needs in Africa currently.

Adding more to economy and reducing your business class seats, is it a reflection that people want to travel at the barest minimum cost?

There is a larger demand in economy at the same time and those were aircraft that were used in oil routes like Port Harcourt in Nigeria. After the decline of oil price, we felt that 36 seats are enough and therefore we use the space to add economy seats.

In the end, every aircraft that we will fly in the new configuration will add seven percent more seats on board.

Should we expect more frequencies in the markets in which you already operate?

We plan to move from three to five weekly flights to Nairobi. We are trying to cement the routes with more capacity where we need to. This is very important for business people and leisure travellers who travel a lot to be able to travel when they need to.

We take the example of Ghana, which we opened one year and half ago, we flew three flights a week and now it is a daily flight.

Frank Legré

How many African countries do you operate to?

Currently we fly to 51 destinations across Africa. There are some countries where we fly more than one or two destinations like Nigeria; we fly Lagos, Port Harcourt and Abuja.

We fly Air France, KLM and Juan on South Africa and Transavia on North Africa.

In all these countries you fly to, what are your key markets in Africa?

Our key markets are South Africa, Nigeria, Ivory Coast, and Senegal. We are developing nicely also in Ghana.

In Ghana we have doubled daily between KLM and Air France.

In East Africa, which countries are your strong markets?

East Africa is very important for us also. We fly there in joint venture with Kenya Airways. We have KLM flying daily from Amsterdam to Nairobi. Air France just started operations a few months ago to Nairobi and we are going to add more capacity on this route and Kenya airways is also flying on the Paris and Nairobi routes. So, in all, we operate night and day flights on Kenya Airways and Air France as well as Kenya Airways and KLM to our hubs in Nairobi, Amsterdam and in Paris. So, we feel we are very successful and it is a good way for us

to serve South, Eastern Africa where we don’t fly directly. So currently, you can have a nice connection to the north of Mozambique, flying via Paris or flying via Amsterdam to Nairobi, then onward to Mozambique.

Apart from market needs, what other factors necessitates the type of aircraft you deploy into a country?

The main thing is the demand. We fly a larger aircraft when there are more demands. We fly A380 to Johannesburg, Ivory Coast, Abidjan.

We are very successful here. We are very flexible in the way we deploy our fleet. So, we don’t have a dedicated fleet to Africa. Every time we see an opportunity to grow the market, we can put a larger aircraft. We are making all efforts to make all our aircraft as comfortable as possible, no matter the type of aircraft we are flying.

What major challenges do you face operating in African routes?

We are facing a lot of competition in Africa and we have a lot of new competitors that were not there 10years ago, like Turkish airline. We see Emirates flying also and we see Ethiopian airline becoming a big challenger in Africa. We are facing a lot of competitors. It is a very competitive market, especially in Nigeria. There is high expectation on service and at the

In the African continent where you fly 51 destinations, what are your contributions to human resource, in terms of trainings and employments?

We feel that we have our routes in Africa. Air France started in 1933 and as soon as we were born, we were already flying to Dakar. We know Africa very well and we are really committed to the development of Africa. We believe we should also create more employment in Africa.

What we are trying to do is to also grow management in Africa. We have dozens of Africa station managers all across Africa. We are trying to have specific trainings for them. We want to deploy the human potential of Africa at the same time; we invest in social benefits for Africa. We have the Air France foundation which is helping children all across Africa because we are committed to Africa.

What activities are you carrying out to ensure you remain competitive in the airline business?

I think for us, it is high quality. There are airlines that are cheaper than we are but what we want to have is best quality, such that people choose us for the service we have both on board and on the ground. We want to have a good relationship between price and quality, and that is the only way we can stand out.

Do you see opportunities in cargo by way of partnerships?

We see a lot of opportunities on cargo also. I know that for example in Accra, we didn’t have any full cargo but we just started a new cargo service and it is going very well. We are exporting full loads of yams from Accra to Paris and to other parts of the world and it is a very good load factor. We full cargo but also use the passenger aircraft.

How will the new Ghana terminal benefit your operations and what is your advice to other countries on terminal upgrades?

I will like to congratulate Ghana. I had the opportunity to visit the new terminal before it was opened. It is beautiful and I know it is already running. It is great success. We see everywhere new terminals coming in. Dakar has a brand new airport which has been commissioned. So, we see a trend in new airport and we can only encourage Nigeria to also invest in new airports, especially in Lagos, which is the first gate to Nigeria. The new terminal means quality to our passengers and also better way of working for our staff. It also helps in terms of security. So, I see a lot of benefits in investing in new facilities in airports across Africa.

What prospects do you see in the African market?

We see a lot of potential in Africa.

We also see an emerging middle class, who are really willing to travel.

We really try to develop tourism to Europe. It is time now for Nigerians, Ghanaians and West Africa in general to travel to Europe and enjoy Europe.

We will like more Nigerians and Ghanaians to see Paris in the coming month and years.

With the good relationship you have with Kenya Airways, do you see prospects for partnerships with other airlines in Africa?

We are open to opportunities.

Currently, we have two partners which are Air Cote d’Ivoire on the Western side and Kenyan Airways on East Africa and we are really open to opportunities to have good corporations which are win-win opportunities for both carriers.

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EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Why up-scaling investment in teachers’ capacity makes sense Stories by KELECHI EWUZIE

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he world and indeed Nigeria may have celebrated the World Teachers Day on October 5; stakeholders however maintain that teacher performance remains low across Nigeria.

They observe that poor teacher performance starts before teachers enter the classroom. It begins when managers of the education sector systematically allow low-performers to obtain teacher training and qualifications.

According to them, one reoccurring decimal in the education sector in Nigeria over the past two decades has to do with the consistent decline in the quality and quantity of professional teachers in the country.

Those who know in the education sector are of the opinion that a factor affecting the quality of talent available in the sector is that teaching has lost its appeal as a path to upward social mobility due to poor remuneration, low teacher quality, and the widespread use of poorly educated contract teachers.

Report indicate that for Ni-

geria to bridge the teachers gap, 39,239 qualified teachers should be engaged annually for Universal Basic Education (UBE) up to year 2020 and 80,364 for Adult and nonFormal Education.

In addition, Nigeria need to increase the size of the teaching workforce in primary education is pivotal by creating almost one million new primary teaching positions in the next few years.

The attractiveness of the teaching profession has implications for attracting younger talents into the profession when the current crop of teachers retires.

Modupe Adefeso-Olateju, an education expert and managing director of the education partnership centre (TEP) observes that to strengthen teacher performance; decision-makers must take a long view by identifying and attracting potentially high-quality teaching talent into the classroom and creating systemic pathways to ensure that they remain and perform well.

“We can identify better teaching talent by raising the entry requirements into the teaching profession, so that higher performers apply says, Adefeso-Olateju adding that test prospective teachers for

Maria Glover (M), executive secretary, Knowledge Exchange Centre and employers and human resources managers at the maiden graduation ceremony of the first set of GAP network programme in Lagos

non-academic qualities essential to students’ learning including enthusiasm, flexibility, and creativity.

To her, “Recruitment policies should allow for nontraditional but high-potential teaching talent to be embedded into the civil service by allowing for professionals with interest in teaching to combine reduced teaching hours with simultaneous participation in teacher training”.

Greensprings School partners Flutterwave to create internship opportunity for students

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reensprings School as part of its strategy to redefine education in Africa has partnered with Flutterwave, a leading fintech firm in Nigeria to provide internship opportunities for interested students.

Helen Brocklesby, d i re c t o r o f e d u c a t i o n , Greensprings School says the partnership gives Year 11 students an opportunity to get hands-on experience with latest technology applications for duration of four weeks.

Brocklesby says it is meant to equip soon-to-be graduates with the requisite skills for the global job market.

Greensprings, a technology-driven school is very aware of how the rising impact of technology on our daily life has created an increased demand for technology-related jobs such as software developer, computer security analyst, data scientist, software engineer-

ing, and digital marketing.

While it seems like most schools are still caught up in the past, parents are seeking ways to ensure that their children are well-prepared for the technology jobs of the future.

Only recently, Greensprings became the first Thinking School in Nigeria, which means teachers will now adopt a growth mindset approach towards delivering education to their students.

Iyinoluwa Samuel Aboyeji, managing director, Flutterwave expressing satisfaction with the success of the Internship’s maiden edition, said that working with students from Greensprings during the four weeks has been a wonderful experience.

“We will like to appreciate the students’ proactive effort and interest in learning about our services and technology at large”, Aboyeji said.

Flutterwave is a payment API that makes it easy for

banks and businesses to process payments across Africa.

The service allows consumers to pay for items in their local exchange. Flutterwave takes care of integrating banks and payment-service providers into its platform so businesses don’t have to take on the expense and burden.

U.S. Investors just poured $ 10 million of new funding into Flutterwave. This sizable round comes one year after Mark Zuckerberg and Priscilla Chan led a $24 million funding round into another of their Africa- focused startup, Andela.

Andela, also cofounded

by Aboyeji, trains and connects African developers to global companies for work.

The partnership between Greensprings and Flutterwave is expected to add value to the economy of Nigeria and Africa, because the internship programme exposes young leaders to global groundbreaking technology.

Industry experts maintain that until our teachers are better trained and well-motivated, all efforts to improve the quality of the education system will be severely compromised. In the quest to increase teacher quantity, all manner of persons and all manner of part-time and sandwich programmes are part of the current menu of teacher training.

In striving for the production of quality teachers not

just qualified teachers. Educationists are of the opinion that recruited teachers when employed should not go into classrooms without undergoing induction.

On his part, Osaretin Olurotimi, an education researcher in Lagos said to strengthen teacher performance; Government would play a role in implementing solutions to improve teacher quality by raising entry require-

ments and investing in quality preparation programmes.

Olurotimi further said that community organisations and citizens should take on the role of facilitating collaborations between teachers’ in-school efforts and broader community development imperatives.

According to him, “These will give teachers voice and recognition and ensure that teaching is no longer viewed as a profession for those without better alternatives “A programme to manage teacher performance must include an investment in the capacity of school administrators to handle an evaluation system appropriately; deliver feedback; discover training needs; and design or customise reward or disciplinary incentives for the teachers,” he said.

While industry experts in the education space acknowledged that Nigeria’s education sector is faced with a plethora of problems such as underfunding, deteriorating infrastructure/equipment, dearth of quality teachers, they however are of the view that with the right collaboration between all stakeholders in the sector the threatening effect of teacher’s capacity would be resolved.

GAP Network strengthens employment prospect for graduates

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s part of its strategic contribution to addressing unemployment concern among Nigerian graduates, Knowledge Exchange Centre (KEC) under its Graduate Advancement Programme Network has completed the first set of training for unemployed graduates.

The 6-weeks courses under GAP not only prepared the graduates for employment, but also make them more effective at work and to grow their careers.

Maria Glover, executive secretary, Knowledge Exchange Centre, while speaking at the maiden graduation ceremony of the GAP network in Fate foundation center in Lagos venture of the event said these are short courses designed to develop the employability skills of fresh graduates.

She observed that KEC employability skills training are very practical and are aimed at helping participants apply learning to real-life situations.

They become more competitive in the labour market and have an edge above their peers.

Glover reiterated that the objective of KEC is to bridge the skills gap in the Nigerian Labour Market by providing a Resource Centre with hybridLibrary facilities and various platforms that support capacity building for our target audience.

According to her, “Our training programmes focus on employability, entrepreneurship, leadership, Internships and many other areas intended to prepare them for work, business and the future”.

Glover opines that for Nigeria youths to compete globally in the job market, they must understand the job market and gain skills to position themselves to succeed.

She said the participants mainly graduates seeking to be equipped for the job market during the course of the training gained critical skills employers want; meet with

potential employers of labour; Dialogue with experts and get practical tips of how to win in the 21st century job market.

She further said the organisation draw her competitive strengths from partnerships with reputable organisations and individuals across Nigeria. “These strategic partnerships enrich our programmes and make the outcomes more impactful to our participants”.

She commended human resources personnel and corporate organisations for their contribution which she said have enabled the graduate members who consisted of 15 unemployed graduates to remain in the programme.

“This graduation ceremony presents opportunities for employers to meet the Graduate Members whose lives have been transformed through this programme.

Also, it would be an opportunity to identify and recruit well-trained fresh talents to add to their workforce”, she said.

BUSINESS DAY

Tuesday 09 October 2018

23

EDUCATION The evolving dynamics of discipline

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s common as the statement, “Spare the rod and spoil the child” in Proverbs 13:24 is, it seems as though it is gradually losing its meaning through generations, both literally and figuratively.

The behaviour that people exhibit is somewhat a reflection of their upbringing. So when we take a careful look around us, we would notice that there are behavioural traits specific to certain generations.

Observing individuals from each generation, you would get a good understanding of why these traits are distinct.

People in our society aged about 45 and above were brought up in very strict households. In fact, majority of their mothers were either teachers, other forms of educators or had day jobs with schedules, which allowed them to go back home at reasonable hours to face their children and households. Mothers then were very strict; some would even call them wicked due to their approach, which sometimes involved physical disciplinary measures or other means which, today would be viewed as extreme, dramatic or even incriminating. Notwithstanding this, the products of this generation turned out okay.

Majority of them became selfmade adults.

However, when this generation started to breed their own offspring, they reflected on their parents’ ways and decided that they didn’t want to be as “wicked”, and actually desired closer relationships with their children, which

Students that participated at the Green Spring, Flutterwave partnered internship programme on Technology application in Lagos recently

they did not enjoy from their parents. So the shouting and dramatic acts of discipline reduced a little bit. But some of these parents had to be smart to tailor their techniques to their children, as all children are different and some require a little more discipline than others. However, others did not quite get it right, and this is demonstrated through certain behaviours their children (age group of early 20s to late 30s - millenials) exhibit, which include a sense of entitlement, impatience, lack of respect and lack of independence, amongst others.

With today’s generation, there seems to be a lack of clarity regarding this area of discipline. This calls for the question: Are we becoming more lenient with today’s generation of children?

This matter is far more

complex than it appears on the surface.

With global consumerism trends, wealth becoming more of a materialistic venture than a dignified status, continued leniency in the approach of disciplining children, limited amount of time parents get to spend with their children due to longer working hours and women spending more time at work, there seems to be a bit of an interesting shift in the approach to discipline both locally and globally.

One argument is that because parents do not spend as much time with their children as they used to in the past, some of them rely on materialistic gratification, for example by buying them sweets or toys if they miss out on a school play or certain activities that their children are involved in, or just not being in the picture

Students, parents to explore options in global education at ENAA Fair KELECHI EWUZIE

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tudents, parents will have the opportunity to explore options in Global Education as nearly twenty international schools participate at the 2018 Europe North-America Africa (ENAA) fair in Lagos.

The event scheduled for Saturday, October 13, 2018 at the Wheat baker Hotel, Ikoyi and in Ikeja on Sunday 14that the Radisson Blu Hotel, GRA, Ikeja is organised by ALTS Consulting.

According to the organisers, ALTS will host a variety of representatives from schools all over the globe. Essential information and counselling will be provided to prospective students seeking quality education in United Kingdom, Canada, Switzerland, United States, United Arab Emirates and South Africa.

Akin Sawyerr, chairman, ALTS Consulting said the company since 2010 provides ad-

vice for parents with children of school going age with sound guidance and appropriate sign posting to get the right educational fit for each and every child, recognising the differences in every child and acting upon these.

According to him, ALTS has been responsible for placing children from abroad into Nigerian schools in Nigeria and also offer within country placements, to ensure continuous cross -fertilisation and progression in the learning process.

He opines that many of the children who have sought the services of ALTS have gone on to study courses like Medicine, Dentistry, ICT, Law, Business & Finance, Engineering, Accountancy, Aviation and other professions of the present and future. Many have now gone on to Universities such as Oxford, Cambridge, Stanford, Dartmouth, Queens Belfast, Durham, Toulouse, KCL, McGill, Manitoba, Simon Fraser, University of Toronto, Queens,

Western, Waterloo, Alberta in countries like the UK, USA, Canada and France. A good number of our students are today working for multinationals and small businesses across the globe.

Commenting on activities lined up for the fair, Sawyerr said there will be seminar for students and parents where experts will offer professional advice that will guide intending applicants.

“Some of the seminar topics are developing entrepreneurship and leadership traits in youngsters; what it takes to get into top Ivy League or Russell Group Universities; what one needs to do to get a scholarship for university and what makes Canada a popular study destination”, he said.

Parents are advised to make judicious use of the opportunity on the 13th and 14th October, by getting adequate information that would help them make informed decision, directly from the top schools present at the Fair.

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at all. Furthermore, parents may even feel so guilty for not spending enough time with their children that when these children misbehave, they give them a pass. However, this is really not what children need because the truth is that these solutions are only temporary, and are in no way the means of teaching children the difference between right and wrong.

There is another argument, which stems from the materialistic movement in our society. Some of the things that are perceived as normal or “cool” in the current generation are actually not normal; some are very far from normal.

It brings forward the question; why do parents now have a complex about what schools their children attend, whether their children speak with a foreign accent (whilst attending school in Nigeria with Nigerian

teachers), how many times in a year they travel abroad, how many countries they have travelled to and even what they do for their birthday parties (the good old living room and garden parties of the 80s and 90s no longer suffice).

A good example of my experience in this was during my A-Levels in the United Kingdom. Amongst the Nigerian girls at my school, there was a certain group who looked down on those who travelled on Economy Class on the Aeroplane because they themselves had become accustomed a certain superiority complex of travelling in Business Class. Again, this is not normal, and is also an indication of their upbringing.

Parents need to realise that their moral values transcend directly to their children both consciously and subconsciously. A recent article in a United Kingdom newspaper gave some insight into parents’ indiscipline in the school system. It spoke about a ruling by the Supreme Court to fine parents for taking their children out on holiday during term time. Since when did this even become an issue? The whole point of schools taking their time to prepare a calendar is so that parents can plan their schedules around it.

Hence, there really is no excuse even for early vacation from or late resumption to schools, unless there are extenuating circumstances, which the parents ought to have discussed and arrived at an agreement with the school.

This ruling came up as a result of a parent who took his

daughter out of school for a 7-day trip to Disney World during term time.

He was fined £60 by the local council, but he challenged this, stating that his child had a good overall attendance record and parents should be given the freedom to choose when their children go on holidays. As outrageous as this may sound, it does happen in our environment as well. This parent missed the point. Missing out on school is disruptive for the teachers because they would have to do extra wok to pay additional attention to the children who miss out on school. It is even more disruptive for the children because they have to catch up with their peers.

Additionally, apart from it being a slap on the face on other parents who are disciplined enough to make sacrifices and obey the rules; this lack of discipline translates to our children. Children are far smarter than we give them credit for and they are fast learners.

If, at an early stage, they are not taught what is right from wrong, then they grow up to become undisciplined adults who lack manners, are disrespectful or even entitled.

This stems from the behaviours they watch their parents exhibit whilst growing up. If they watch their parents bend or break the rules to suit their personal agenda, then they are very likely to follow suit.

After all, the apple does not fall far from the tree. Parents, please be careful of what you teach your children, both consciously and subconsciously.

Enugu students qualify for semi-final of Cowbellpedia Mathematics competition

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nugu State has joined the list of s t at e s t hat hav e p ro d u c e d s e m i finalists for the ongoing Cowbellpedia Secondary School Mathematics Television Quiz show, sponsored

by Cowbell Milk, the flagship brand of Promasidor Nigeria Limited.

In reaching that stage, Ngozi Nworu, a student of Bishop Otubelu Juniorate, Enugu, Enugu State, raised the expectation of the southeast region to challenge for the ultimate prize crown with the Southwest and South-South regions, which have multiple representatives in the semi-finals.

Ngozi was joined in the semi-final circuit by Damilare Adepoju of Scholars Universal Secondary School, Ota Ogun State, both of whom participated in the same group of the second round.

The other candidates who have now ended their

journey in the competition are Emeka Onwe of Comprehensive School of Management and Technology Staff Secondary School, Abakaliki, Ebony State; Dongnaan Bala of St. Augustine College, New Karu, Abuja, Nasarawa State; Nnagozie Tochukwu of Jesuit Memorial College, Port Harcourt, Rivers State; and Swanta Stephen of The Incubators Secondary Academy Kaduna, Kaduna State.

Ngozi attributed her success to her calculation skill and speed, adding that “there is a lot of benefit of being able to tackle a problem without resorting to a calculator and that was what helped me in the 60 Seconds of Fame segment.”

In the senior category, Ruth Imarhiagbe of Graceland International School, Port Harcourt, Rivers State, as well as Oreofe Daniel of The Ambassadors College, Ota, Ogun State progressed to the semi-finals.

Despite their spirited efforts in the first and second rounds, four of their colleagues could not surmount the hurdles. These include: Aliyu Tukur Usman of Darul Arqam Islamic Institute, Yola Adamawa State and Sanyaolu Daniel of Taidob College Abeokuta, Ogun State.

Other are: Onyedikachi Kanu from Dority International Secondary School, Aba, Abia State; and Victory Oboh, a student of Lords and Kings Academy, Warri, Delta State.

Speaking to journalists outside the studio in Lagos last weekend, Ruth insisted that Mathematics is fun, and she would be delighted to wear the crown at the final.

Oreofe, on her own part, believes her frightful moment is over and that she is now in the right frame of mind to confront and dismantle the remaining obstacles on her way to ultimate prize.

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In association with

Accenture deploys management technology for sales, distribution in Africa Stories by JUMOKE AKIYODE-LAWANSON

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ccenture, a global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations is helping AB InBev, the world’s largest brewer, better manage its sales and distribution operations in Africa with the the deployment of the Accenture NewsPage Distributor Management System (DMS).

Accenture DMS is a fully integrated distributor management and sales force automation system that covers the complete down-stream supply chain, providing consumer goods companies with accurate, reliable data on secondary sales to help them control promotions; improve productivity; and streamline inventory and sales processes and distributor claims.

The two companies have signed a three-year contract, agreeing that Accenture will help AB InBev implement the latest version of DMS for its operations in Africa.

This includes the initial rollout of the system in Mozambique, Zambia, Ghana and Nigeria, as

L-R: Felix Adeoye; commission secretary, Nigerian Communications Commission (NCC), Titi Omo-Ettu; board chairman, Digital Bridge Institute, (DBI), Olabiyi Durojaiye; chairman Nigerian Communications Commission, (NCC),and Ikechukwu Adinde; administrator, Digital Digital Bridge Institute, (DBI) during the inauguration of DBI Governing Board in Abuja at the weekend.

well as the upgrade of the system in Tanzania and Uganda, where AB InBev has already been using DMS for more than three years.

The DMS implementation will enable AB InBev to track its distributor network and increase visibility into its product stock and sales in Africa. By consolidating all product transactional

information — from activities of the sales force and distributors— DMS gives AB InBev’s sales teams the data they need to build relationships with distributors and customers and to closely track product promotions and performance.

The DMS software — which is integrated with the Salesforce-

based solution that ABI uses to drive its contact strategy with its customers — will be used by more than 1,570 mobile and 620 back-office users and made available to more than 100 of AB InBev’s distributors.

Accenture says it has already completed the upgrade of DMS in Tanzania and Uganda, with

the implementations in the other four countries taking place over the next several months. Once Accenture has implemented the DMS solution for AB InBev in the six countries, it will continue to support the solution, providing continued hosting, maintenance and application support for the duration of the contract.

“Accenture’s DMS solution has enabled us to enhance our sales and distribution operations in Tanzania and Uganda over the past three years, and we’re excited to upgrade to the latest version and expand its use to other countries in Africa,” said Lee Dawson, vice president, AB InBev. “With DMS, we’re better positioned to achieve our goal of becoming the number one brewer across the continent,” he added.

Marlize Claasen, managing director at Accenture, said, “AB InBev understands that expanding sales, enhancing efficiency and improving profitability requires full visibility into its sales and distribution operations.

We’re excited to be able to continue our successful collaboration with them as they seek to expand their market share in Africa, while developing a more connected and modern relationship with consumers.”

Truecaller’s 300 million users to benefit from new chat feature …Instant messaging platform to curb spread of fake news

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ruecaller, a mobile application that reveals unknown caller ID, detects and filters out spam calls, messaging and has social media integration has added to its list of functionalities, a new instant messaging (IM) platform called ‘Truecaller Chat’ to help protect its over 300 million users from spread of fake news.

With the aim to make communication safer and to prevent fake news from circulating,

Truecaller says that the IM platform will allow users to report links, ensuring that unverified and libelous news is not circulated by users.

With social media’s rapid adoption globally, the menace of fake news has been on the rise. President Muhammadu Buhari, in his recent Independence Day speech, advised that information spread via social media should be well scrutinised.

Truecaller has helped erode spam calls faced by users through

Caller ID and also strengthened SMS inboxes by filtering unwanted messages. As a step to curb the spread of erroneous information, Truecaller, with help from its community, has launched this service as a shield against viral messages sent on its instant messaging platform.

Users will be able to mark website links as spam if they suspect them to have incorrect information, which will then help chatters make a more informed decision about what

information is false. With time, Truecaller also plans to apply machine learning and use the aggregated spam reports to predict any upcoming viral trends.

Additionally, ‘Truecaller Chat’ is bundled with interesting features such as, auto-switch between SMS and Chat, which will help users keep conversations in one place. Other features include full media support and more that will provide its users a polished and enjoyable experience.

Commenting on the launch,

Rishit Jhunjhunwala, VP product at Truecaller, said: “As a one-stop communication platform, our IM service will help our users connect and also collaborate to combat the issue of spam. We’re confident that this foundation stone will help build a strong spam-free community.”

By providing a messaging service with capabilities to tackle fake links, Truecaller is taking a big step towards curbing the problems caused by spam and false information going viral.

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E-mail: jumoke.akiyode@businessdayonline.com

Oracle summit showcases emerging technologies’ influence on business innovation Stories by JUMOKE AKIYODE-LAWANSON

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he Nigerian economy is bolstered by a thriving small to medium enterprise (SME) community, with many engaging in business that can only be made possible through cloud technology, the adoption of which is instrumental if businesses and government want to remain relevant and competitive.

According to Adebayo Sanni, managing director of Oracle Nigeria, “the world of business is changing at an unimaginable rate; emerging technologies, including Artificial Intelligence (AI), the Internet of Things (IoT) and Blockchain are changing the way companies do business at every level, across every function.”

At the Impact Technology Summit held in Lagos recently, Oracle brought together domain experts and business leaders to discuss the influence that emerging technologies have on business innovation.

The summit explored how the right technologies, when used in the right combination, can make innovation something businesses do every single day.

“With the availability of Blockchain, machine learning, AI and IoT, businesses have the opportunity to focus on driving revenue streams as these solutions remove the risk of human error and are self-learning.

These technologies provide

L-R: Obiora Atuokwu; director, marketing, Global Accelerex, Tunde Ogungbade; managing director, Global Accelerex, Emmanuel Akala; finance manager, Prince Ebeano Supermarket, Stanley Peters; ED & chief technology officer, Global Accelerex, Rotimi Akintan; IT manager, Krispy Kreme, and Olukayode Ariyo; ED, business Devt. & COO, Global Accelerex, at the 3rd quarter 2018 edition of PoS Innovation Summit held in Lagos recently.

transparent and simple data validation to drive efficiency and predictable results, so that the businesses can focus on driving results and increasing revenue,” Sanni said.

A recent example of blockchain’s impact is Nigeria Customs Service (NCS) that piloted Oracle Blockchain Cloud Service to provide it with a trusted platform for the full automation of Customs Excise Trade business processes and procedures. This technology allows NCS to document and track products that are manufactured locally, right from the source of licensing and permits for manufacturing, to distribution and point of sale. This proof of concept shows that the entire business environment of

NCS can be migrated to blockchain to automate as many customs processes as possible, creating transparency and predictability.

Another example of the impact of cloud-enablement is the Kenya Revenue Authority (KRA). To support its strategic drive to enhance service delivery to taxpayers, KRA deployed Oracle Customer Relationship Management (CRM) that provides it with a single platform to better understand customer needs and respond to their demands more quickly and efficiently.

Oracle has in recent months announced new products that put the power of several emerging technologies into the hands of its customers:

Oracle Adaptive Intelligent Apps provide a suite of pre-built AI and data-driven capabilities for the entire enterprise across customer experience (CX), human capital management, enterprise resource planning (ERP) and manufacturing.

In March Oracle announced the general availability of Oracle Autonomous Data Warehouse Cloud, which provides an easy-to-use, fully autonomous database that scales elastically, delivers fast query performance and requires no database administration.

In July Oracle announced the availability of Oracle Blockchain Cloud Service that provides customers with a development platform to build their own networks, and to quickly

integrate with Oracle SaaS and third-party applications they already use, as well as other blockchain networks and Oracle PaaS services. It also enables users to provision blockchain networks, join other organisations, and deploy and run smart contracts to update and query the ledger.

In August Oracle announced the availability of the latest Oracle Autonomous Database Cloud Service, Oracle Autonomous Transaction Processing. Leveraging innovative machine learning and automation capabilities, Oracle’s new self-driving database cloud service is built to run the most demanding finance, retail, manufacturing, and government applications, supporting a complex mix of high-performance transaction processing, reporting, batch, and analytic workloads.

Oracle Internet of Things Cloud Service is the platform behind Oracle Cloud-based IoT asset monitoring, production monitoring, connected workers, and fleet monitoring applications.

Chatbots built using Oracle Mobile Cloud Enterprise can infer earlier parts of a buyer-seller conversation, so that consumers don’t have to reiterate or contextualise their queries. Integrated APIs, such as a recommendation API, give chatbots access to customer purchase histories and preferences, improving a company’s chances of selling additional goods or services.

Firm launches new online raffle platform

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oborise App Technologies, an indigenous technology development company has recently launched a consumer sales promotion (CSP) application called Ekojara to further boost gaming/lottery activities in Nigeria.

The gaming platform which is strictly online based, requires players to download the application on iTunes iOS for Apple device users or the Android version from Ekojara.com.

Speaking at the media launch on Monday, October 1, 2018, Hilary Nwaukor, co-founder/CEO of Ekojara, said that the game platform was developed as a means to add value to millions of Nigerians who could benefit from exciting household and cash prices just by being lucky on a game.

According to Nwaukor, Ekojara is a unique platform that gives users an opportu-

nity to win big value items and cash with minimum risk of 0.20% of the published value; this is a predetermined amount of money that user pays for each ticket they buy.

“For instance, if we publish a cash game of N10,000, each user that wants to bid to win the prize will be required to play with 0.20% of N10,000 which is equal to N20 per chance”, he said.

“After downloading app, the user is required to signup, then top-up their wallets with minimum of N500 before taking a chance to play the advertised games”, Nwaukor explained.

Olayemi Agbe-Davies, co-founder Ekojara, further explained the game categories as ranges from household electronics, smartphones, mobile credit top-up vouchers, internet data plans, automobiles and cash.

“You may notice that

we have real estate and automobile listed among the categories. Yes, we are a forward thinking organisation and believe that very soon ‘players’ can win houses as rewards likewise automobiles.”

Ekojara gaming activities are fully approved by the Lagos State Lotteries Board (LSLB).

Seun Anibaba, general manager/chief executive officer of LSLB, who was represented at the media launch by Adebanke Ogunode, head, legal (board secretary/legal adviser), said that the Board maintains strict processes before such platforms are approved as means to ensure transparency and customer satisfaction.

“LSLB holds its licensees to high operational standards in the interest of stakeholders. Before Ekojoara was approved, it was subject to different tests.

“LSLB is notable for adopting a stakeholder inclusive approach in carrying out its regulatory functions.

We promote a conducive operating environment for licensees and integrity of games for stakers. Thus, Koborise App Technologies Ltd have now been approved to carry out lottery games online”, the GM/CEO said.

Nwaukor said that the company is equally positioned to outsource the application to Fast Moving Consumer Goods (FMCGs) Companies in Nigeria and online brand influencers – for general bonanza, giveaways and promotions driven by our innovative lottery application.

“Our Trademarks and unique gaming application is fully copyrighted and registered with the trademarks, patents and designs registry, commercial law department, federal ministry of industry, trade and invest-

ment, Abuja”, he said.

Players enter their dream numbers and submit within the odds of 01-99 into 5 unique boxes provided for a given Dream-bid category. Each submitted set of lucky numbers, generate a unique ticket entry.

Numbers played can be generated by the players or by the system depending on the option the player wants.

When the bid time elapses on a game, a draw will be carried out by the randomiser system and one ticket out of the lots of entry will emerge a winner for the advertised item. The draw system is transparent and void of human manipulation. The system is designed to entrench probity and accountability.

Highlight of the event was a live demo where Ajise Samuel, from Lagos, emerged winner of N20,000 for October 1, 2018; he played with N40.

MainOne upgrades secondary school, pledges support to host communities

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urther cementing its commitment to its corporate social responsibility in its host communities, MainOne, connectivity and data centre solutions provider, has completed the renovation of 12 classrooms at the Ogombo Junior High School, in Ajah, Lagos.

Focused on improving the standard and access to education by addressing gaps in infrastructure and providing academic support through its CSR initiative themed “Changing Lives, Impacting the Future’, MainOne, refurbished 12 classroom blocks and donated learning materials and furniture to the school.

Speaking at the launch of the newly refurbished classroom blocks, Temitope Orija, head of support services at MainOne said that education is an important instrument for efficient national development and so, the company is committed to engaging with schools in its operational areas to provide support towards better educational outcomes.

“MainOne prides itself on being a relevant and integral member of its host communities. We will continue to give back to our community by working with them and providing support as required” she said.

Beatrice Olubisi, Principal of Ogombo Junior High School applauded the efforts of MainOne, saying: “We take pride in molding the moral and academic lives of the students entrusted to our care at Ogombo Junior High School. It is our dream that one day, this School would produce future leaders to stir the ship of the state and nation and we thank MainOne for their immense contributions towards the improvement of our school’s standard of education which is very critical for nation-building.”

Since 2011, MainOne has made supporting educational institutions in Nigeria a priority through yearly donations of learning materials including text and exercise books, writing materials as well as renovation of critical infrastructure facilities and creating Information and Communications Technology (ICT) laboratories. The contributions of the company towards the development of these learning institutions forms a part of its corporate social responsibility focus on education and ICT.

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INTERVIEW ‘Time is now to migrate from traditional to mechanised agric practice’ DENNIS HYALIWA GOJE, special assistant to Audu Ogbeh, minister of agriculture and rural development, represented the minister in the recently concluded agric expo – SPACE 2018 – in Rennes, France. In this interview with OSA VICTOR OBAYAGBONA, deputy news editor, after several tours of agric and farm settlements, Goje talks about the Nigerian agric sector, saying the use of modern technology in agriculture is a faster way to get the youths involved in the sector. Excerpt:

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hat is your view a b o u t w h e r e you went today, and how you can replicate it in other parts of the country?

It is definitely good. We went to a sheep farm, somewhere in Semishell, and what we saw there really are advanced practices, modern practices in sheep rearing and farming. Why it was of interest to me is because we rear sheep a lot in Nigeria, and also consume a lot.

Our practices are very traditional; modern practices have gone just way beyond allowing our sheep roam around, or just domesticate them. It is a proper business; we saw a farmer, a fourth generation farmer with about one thousand sheep, highly technical in his approach to sheep rearing.

We saw how careful he was in feeding them; the type of grass the sheep are eating; we saw abundant water; we saw quality control, we saw calculated farm land sizes for grazing, for him to be able to get the quality of meat that is acceptable in European Union and for export to the USA. We also saw a lot of knowledge-base sheep rearing techniques, which is missing among our farmers. For me, what we learn from this experienced farmers need to be taught to our farmers through extension services. We need to teach modern practices to sheep farmers in Nigeria.

I have taken a lot of notes, and we will definitely pass this note to the people that can actually implement and help our farmers adopt some of these things.

We are far from this level; there are some things that we can immediately start to replicate in Nigeria, especially the kind of food and mixture of grasses that we give our sheep. It is very important.

Also, the way we tender and process the meat. Because we saw what they are doing, the right inch in the slaughtering of the animal, it is important. If you notice one of the problems we have with our sheep, even though it is one of the softest meat we have, because of its nature yet it is still much harder than what you find here. It is much tender here. It is groomed for a particular purpose and for a particular period. From here in Europe, any sheep slaughtered is averagely 180 days from birth, so we are talking about 6 months.

It is not the same in Nigeria. So,

these are some of the things we need to practice in Nigeria.

Here you have fewer workers because of the mechanisation of the process.

Back home, someone said if we adopt this system it would cause unemployment. What is your own stand about this argument?

That argument does not hold water, for the simple reason that the world is advancing and technology is something that the world must embrace. So, why is unemployment rate in the UK down to 2.6 percent or thereabout? It is simply because they adopted technology.

Technology creates wealth and brings about improvement in other areas. You see, that argument cannot hold water.

Yes, agriculture accounts for 70 percent of Nigeria’s employment so it is something people can go into. There are other things like IT; after all when you are talking about these technologies, people are the ones building them. A farm like the one I went to had 60 workers 200 years ago, and now has only 4. And clearly unemployment is still low here, that work force is engaged in something else, maybe marketing of these products, either in supermarkets or in other places.

And Nigeria must advance to that stage. We must move from primary production to develop other strata of production in our country. We will get there but it will not be immediately.

Generally, what is your assessment of SPACE 2018?

Is it worthwhile spending your money, coming here to learn anything?

Absolutely, It is worthwhile. I agree, our economy is not booming at the moment, and coming all the way to France is not cheap. But I tell you, knowledge is money. Anybody that understands the power of information and knowledge, then knows that there is no way wealth can be created if you do not think ahead.

First of all, SPACE 2018 is well worth it. You come here to see modern technologies in agricultural practices. Even as we are developing systems now in the livestock industry that will tackle the major problems in the sector, we must have a clear plan of where we need to be. We are not going to jump from A-Z now, but it is important we make choices that will be sustainable to keep us to get to where we want to go.

So, SPACE 2018, in showing and showcasing a lot of improved technologies, is worth

it. But I think that there are also ways we will develop things that will suit our environment at the moment. I have seen them and I have gone round.

For instance, I visited a Massey Ferguson Stand here. The tractor and machinery are way beyond what we are using now in Nigeria. However, they still develop machinery that will be suited for us, we also have the capacity to develop machinery suited for our environment and needs.

Are you trying to recommend it to farmers back home?

I think it is absolutely worthwhile. It is a technology driven world. Whether you like it or not, the younger minds have embraced this. Now they use tablets and all sorts of modern gadgets. So, those minds will appreciate things more, and if Nigeria is thinking about bringing the younger people into agriculture, I think we must show them that agriculture is not what their fathers use to do.

There are modern techniques in agriculture that can be adopted.

It is doable and it is profitable.

What is your message to the youths?

My interest in the youth is clear;

the average age of farmer in Nigeria is between 60-65, that is the person that uses the hoe and cutlass, which we know can no longer feed us. If the younger ones can use the modern technology in agriculture, as it is being displayed here in SPACE, it is a faster way to get involved in the sector.

As you said, there are younger people who are doing very impressive things in agriculture, and poultry in particular. But I think what is lacking is that we are not showcasing these young people for others to see, that there are people achieving lots of things in the field of agriculture using modern technology.

In Nigeria, what young people love to see are success stories people can relate with. Even Obasanjo the farmer is using younger people to run his farm.

He has the idea, yes, but what they see is him but the younger people are the ones who will bring innovation and new ideas to what it is that they want.

They can still remain visionary, but people that will implement modern techniques are the younger ones and develop new technology like they are developing in Europe. We have the abilities and they can, we just need to buy into their psyche and get them interested in this sector.

After all, younger Nigerians are developing things in computer and other sectors, why can’t they develop in the agriculture sector. But you know what, we have to encourage them to build interest in this critical sector, our population is fast growing and the only way to feed the growing population is to get more younger people interested in joining the agricultural sector.

I believe I have. To be honest, he would have loved to be here, but for many other reasons, he couldn’t. One message my principal always sends out is that he wants to see the young generation take over. If there is anything he wants to achieve before he leaves, is that he has motivated enough young people to come into the agricultural space and see agriculture as a business.

And if we can motivate as many as possible, we would have achieved this goal, and this is one message he rings out always.

If you notice, most of the people around him are much younger than him. People would have expected that someone at his age would have more of older people around him, but no. It is intentional because he wants a lot of younger people to learn to be a mentor and to also encourage other younger people to come into the agricultural space.

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Tips & Talking Points Get your colleagues to put down their phones in meetings

TALKING POINTS Top Adviser 85%: American multinational Deloitte provides consulting and financial services to 85% of Fortune 500 companies. + Culture of Curiosity?

52%: In a survey conducted by SurveyMonkey, 83% of executives who responded stated that they foster curiosity, while only 52% of employees agreed. + Social Cost 24%: Social media expenses for U.S. companies comprise 24% of the country’s total digital advertising spend. + Side Hustle 40%: According research from Bankrate, almost 40% of Americans supplement their full-time work with an outside source of income. + Concrete and Jungle 40,000: The Seattle Amazon.com workspace, called the The Spheres, has over 40,000 plants indoors.

Help a direct report who doesn’t have clear career goals

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f you’ve ever wondered whether you have a colleague’s full attention while they’re staring at their phone, stop wondering. You don’t. But instead of getting frustrated that coworkers constantly check their devices during meetings, take action. You might start by sharing research that shows even the mere presence of a cellphone — much less its glowing screen and constant buzzing — is bad for productivity. Then talk with your team about the upsides and downsides of using devices during meetings. Propose ground rules like “Be totally present” and “Keep the phone in your pocket.” The team could also

agree to use a simple phrase like “Tech-check” as a friendly way of reminding someone to put their phone away. Once a few rules are in place, stick to them — and point out when a colleague doesn’t. You might get some annoyed looks at first, but over time the team will set a new norm.

(Adapted from “How to Get Someone to Put Away Their Phone and Actually Listen,” by Joseph Grenny and Kelly Andrews.)

Recognize an employee’s good work by asking how they pulled it off

Working parents don’t have to give up on networking

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mploye e s want to feel appreciated, but a simple “Great job!” isn’t always motivating — especially if you say it all the time. When you want to praise someone for their work on a project, try being curious about how they pulled it off. You might say something like, “That was really impressive. Will you tell me how you did it?”

By showing interest in the story behind the accomplishment, you honor the results as well as the person who reached them. You also get a view into how the person solves problems, what parts of the work they love and what makes

Tuesday 09 October 2018

them feel proud — insights that can be helpful when making assignments. And if the employee suffered any personal costs during the work, acknowledge the toll it took. Whether they gave up time with family or bore the political risks of a highly visible project, talking about the costs will encourage the person to be honest with you in the future.

(Adapted from “What Not to Do When You’re Trying to Motivate Your Team,”

by Ron Carucci.)

orking parents can struggle to find time for networking, especially since it often happens during after-work drinks or faraway conferences.

But there are ways to fit networking into your busy life. The first thing to remember is that it isn’t always about meeting new people; it’s also about maintaining connections. Find people you’ve lost touch with, and look at their social media profiles for updates on their lives. Did someone get married recently, move, or get a promotion? These are all perfect reasons to reach out. Another way to strengthen your existing network is to introduce contacts who

would benefit from knowing each other (just make sure they both know an introduction is coming). And if you’re looking to expand your circle, think beyond the coffee or lunch date. Use video conferencing to meet new people “face to face” without leaving the house or office. The great thing about these strategies is you can do them from almost anywhere, and whenever works best for you.

(Adapted from “Making Time for Networking as a Working Parent,” by David Burkus.)

s a manager, helping your direct reports achieve their career goals is part of your job. But what do you do if they aren’t sure what those goals are?

First, tell the person that it’s OK — and sometimes even preferable — not to have a concrete career path in mind. Being overly attached to a specific plan can cause people to miss opportunities that aren’t on the prescribed route.

Next, ask questions to understand what drives the employee, such as, “What problems excite you?” and “What types of work do you want to do less of and more of?” From there, encourage them to think about the skills they’ll need in the future, focusing on those that will be transferrable to other jobs or roles. Then suggest they try small experiments to learn more about what they like to do and where they need to develop.

(Adapted from “How to Mentor Someone Who Doesn’t Know What Their Career Goals Should Be,” by Tania Luna and Jordan Cohen.)

Pump yourself up before a presentation

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iving a talk in front of an audience can be stressful, and our bodies react to that stress in different ways. If you’re someone who gets jittery and anxious, or whose energy levels flatline, try an exertion ritual before your next presentation. The ritual is just what it sounds like: You exert yourself in order to get your heart moving, feel in touch with your body and boost your energy. You might do a brief workout before heading to the venue, dance in your hotel room or even jump up and down backstage. An

c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate

exertion ritual can amp you up while also reducing your levels of stress hormones. It can be especially helpful if you’re presenting at a high-energy event like a sales conference, or if you feel ambivalent about the subject of your talk and need to project enthusiasm.

Choose an activity that suits you; the key is to tap into what helps you perform at your best.

(Adapted from “How to Pump Yourself Up Before a Presentation (or Calm Yourself Down),”

by Nancy Duarte.)

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In association with

Bungalows return with opportunities for investors as short-let market booms

JOSEPH MAURICE OGU

CHUKA UROKO

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he few positive experiences that came with the 15-month economic recession in Nigeria are, evidently, creeping into the country’s property market.

Gradually but steadily, therefore, bungalows are returning to the market and are, increasingly, getting attention and consideration from private estate developers who are producing and putting them on the market for home buyers and investors.

Before now, bungalows almost disappeared from the market as a result of the high cost of land and also because of growing sophistication and appetite for bigger and befitting accommodation which storey buildings and duplexes offer.

Purchasing power was also a strong factor that stimulated demand.

In order to maximise space (land) which is scarce and costly, estate developers have chosen to go vertical, believing that, by so doing, they will not only optimize the use of space, but also recoup their investment fast and make as much profit as possible.

But prevailing economic challenges which have created affordability problems for home buyers has led to the return of bungalows in the market. Though the market is still narrow compared to that for other house-types, it is sizeable enough to cater to the class of people who need that type of housing.

In the last five years, especially in the last three years of Buharinomics, a good number of families have had to re-order their priorities and the size of accommodation they need matters most. Many of them have had to downgrade their accommodation needs, leading to a rise in the demand for not just bungalows, but also small-size apartments like studio, two-bedroom and three-bedroom.

Notable among developers involved in the development of allbungalow estates are SSA Realties and Multi-purpose Infrastructure Development and Construction Company (MIDC). There are, however, other developers whose estates are a mix of bungalows and other house-types.

SSA Realties are the developers of First Home, a 200-unit estate located at Km 49 on the

How unregulated estate agency practice challenges landlords, tenants

Lagos-Ibadan Expressway near Redemption Camp area. The estate comprises two-bedroom and three-bedroom semi-detached bungalows.

Oladeji Adesina, the company’s Managing Director, explained to BusinessDay that the development of the estate was their response to the housing problems faced by young workers looking for their first homes to buy. “We are worried that some Nigerians cannot have homes of their own, and even when they take their time to upgrade landlords’ houses, all they get as reward is an increased rent.

So, First Home Estate is intended to address the housing problems of Nigerians”, he said.

MIDC is the developer of Teju Royal Gardens—a 1,000-unit estate located along Lagos-Badagry Expressway, comprising one, two and three-bedroom detached and semi-detached bungalows. “The estate offers different house-types including 100 units of one-bedroom bungalows; 200 units of twobedroom bungalows and 450 units of detached and semi-detached three-bedroom bungalow giving a total of 750 housing units for the first phase of the project”, explained Emmanuel Obire, MIDC’s CEO. Each unit of one-bedroom bungalows in this estate came into the market for N2.5 million; two-bedroom for N4.5 million; three-bedroom semi-detached for N6.5 million while three-bedroom detached was offered for N7.5 million. But today, the prices have gone up by up to 30 percent.

Alongside the return of this

house-type is the growth of shortlet apartment market in Nigeria’s major cities of Abuja, Lagos and Port Harcourt where young company executives, people on business trips, staff of corporate organizations on short-stay, and expatriate staff of companies find accommodation.

A recent report indicates that demand for short-let apartments has maintained an upward trend in spite of the challenging economic environment. “This increased demand has spurred savvy business operators to accelerate their expansion plans seeking out strategically located residential buildings or vacant apartments in prime areas to be converted into short-let apartments to meet the flexible needs of people who require such accommodation”, Tayo Odunsi, CEO, Northcourt Real Estate, confirmed.

Besides security issues, there is also strong desire by young professionals to live in exclusive locations to have a bite of the luxury these apartments offer. Erejuwa Gbadebo, CEO, International Real Estate Partners (IREP), says demand also comes from corporates who would rather pay for short-let apartments for their expatriate staff than pay annual apartment rents, noting that this has also led to the growth of this market.

These short-let apartments are found in places like Ikeja GRA, Victoria Island, Ikoyi, Osborne Foreshore, Lekki, Festac Town, etc all in Lagos. In Abuja, they could be found in such expensive locations as Maitama, Asokoro, Wuse, etc while in Port Harcour they are found in Old GRA and Trans-

Amadi.

“These are locations where house prices are quite high and the young professionals who cannot afford such prices yet want to have a feel of such locations go for short-let apartments”, explained Azubuike Unigwe, Managing Partner, Unigwe and Co, a firm of estate surveyors and valuers.

Another major reason is the affordability of rents charged. BusinessDay checks reveal that apartments are cheaper compared to hotel room rates. A two-bedroom serviced apartment, for instance, at 1,004 Estate in Victoria Island, Lagos costs N35,000 per night on short-let, while a standard hotel room costs an average of N60,000 per night within the same neighbourhood. A two-bedroom apartment at the estate sells for N45 million to N50 million.

In Festac Town where UPDC offers serviced short-let apartments at its The Residences, a two-bedroom apartment sells for N65 million, but the short-let goes for N30,000 to N40,000 per night.

Golden Tulip Hotel, in the same ‘compound’ with The Residences charges between N50,000 and N60,000 per night.

In Ikoyi, a two-bedroom apartment lets for average of N50,000 per night, while at Parkview estate, ikoyi it costs an average of N40,000 for same size apartment with clients expected to pay a minimum of one week duration. This is a location where the minimum rent for a three-bedroom apartment is between N20 million and N25 million per annum.

ne of the troubles tenants and potential landlords go through while looking for accommodation or property (land or house) to buy is the fear of getting into wrong hands, which is why clients deal with agents with ‘all eyes’ open. And so there is urgent need to educate the public on what to watch out for whenever they want to acquire properties.

When real estate practitioners and professionals gather recently for the second Annual General Meeting (AGM) of Estate, Agent and Commission Agents Association of Nigeria (ERCAAN), Ago-Okota, Isolo zone, the challenges faced by landlords, tenants and estate agents formed the focus of discussion.

“Real estate agency practice still remains largely unorganized, unregulated, and suffering from persistent poor public perception,” said Ewenla Mustapha, who spoke on the theme ‘Real Estate Practice: Ethics and Public Perception’ at the gathering.

Mustapha, an estate surveyor, noted that people see estate agency practice as an all-comers affair, a place to fall-back to because of the economic situation in Nigeria, adding, “because of lack of standardization and regulation, both landlords and vendors are turning themselves into agents.”

This lack of regulation is also responsible for the multiple agents appointed to handle one property, which usually turns into a cut-throat competition amongst them.

Due to unregulated agents and standardized practice procedure, the level of abortive work done by the quack agents is phenomenally high. This situation could be brought under control if the appropriate legislations are put in place to curb the practice of all untrained Tom, Dick and Harry who stumbled into the profession.

In Lagos State, for example, Mustapha attributed quackery in the profession to lack of a centrally organised body with the appropriate legislative backing as such body would “set minimum standards for entry, practice as well as ensure adherence to a code of ethics.” Although Lagos has made progress by enacting Lagos State Estate Agency Regulatory Authority Law in 2007, the legality and constitutionality of the law is, however, currently being challenged in court.

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Prevailing commercial property prices Northcourt receives influenced negatively available credit in Q3 regulatory approval to

offer valuation services

ENDURANCE OKAFOR

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vailable credit to the commercial segment of the real estate sector in the third quarter (Q3) of 2018 declined as a result of prevailing commercial property prices, information compiled from the Central Bank of Nigeria’s (CBN) Credit Conditions Survey Report for the period shows.

The apex bank disclosed in the report that “lenders reported that the prevailing commercial property prices negatively influenced credit availability for the commercial real estate sector in the current quarter.”

Dolapo Ashiru, a Lagos-based financial analyst noted the real estate commercial sector is usually more expensive that the residential. “The prices are always higher than any other sub-sectors of the real estate industry,” Ashiru posited The CBN’s survey report says credit conditions in the corporate sector varied by size of the business and asked lenders to report developments in the corporate sector by large and medium-size Public NonFinancial Corporations (PNFCs), other financial corporations (OFCs) and small businesses.

“The overall availability of credit to the corporate sector increased in Q3 2018 and was expected to increase in Q4 2018. This was driven by changing sectorspecific risks, favourable economic conditions, improved liquidity conditions, market share objectives and changing appetite for risk,” CBN explained.

Meanwhile, a previ-

Panelists discussing ‘The Future of Real Estate’ at Northcourt’s anniversary in Lagos recently.

ous survey by BusinessDay shows that the property and construction market in Nigeria may depend heavily on commercial bank’s lending to fund its operations, as the decline in lending to these sectors hindered their performance in 2017.

According to the survey, total bank lending to Construction and real estate sector declined by 11 percent from N4.81 trillion in 2015 to N4.2 trillion in 2017.

“The economy was in recession from second Quarter 2016 and so, lending to most sectors declined. Also, banks saw other sectors viable enough to give credit because they were more certain to get their return from those sectors in order to prevent bad debt which is not good for their books,” an analyst who asked not to be quoted told Business Day on phone.

Bank lending to construction and real estate sectors in Nigeria have remained dismal when compared to the likes of South Africa, the continent’s

most industrialised economy.

With a population of about 55 million, mortgages in South Africa account for almost 30 percent of total credit, the largest component of banks’ assets, which amounted to about 5.14 trillion rands ($382 billion) at the end of January 2018, according to central bank data.

Meanwhile, the real estate sector reported Gross Domestic Product (GDP) growth of -3.88 percent in Q2 compared to the -9.40 percent rate recorded in the previous quarter, in what is the 10th consecutive quarter in negative trajectory since the first quarter of 2016, figures available for the sector on NBS website showed on Monday, August 27, 2018.

The Q2 figures reported for the sector in the quarter under review was 5.52 percent points better than the contraction reported in the first quarter. As such, industry experts believe the sector may have turned the corner which is as a result of large capital spending in the

construction sector.

Spreads between bank rates and MPR on approved new loan applications for all business sizes narrowed in Q3 2018, but were expected to widen in Q4 2018,” the report said.

The Nigerian apex bank, however, said in the report tha the “lenders expect the prevailing commercial property prices to positively influence secured lending to PNFCs in the current quarter.”

Meanwhile, the Monetary Policy Committee (MPC) had decided to leave its key interest rate at 14 percent to fight inflation which, it said, was beginning to threaten the country for the 12th time since 2016. Seven members of the MPC voted to retain the interest rates at 14 per cent.

Before the MPC meeting, figures from the National Bureau of Statistics (NBS) had shown that the rate at which the prices of goods and services was increasing in Nigeria was up 11.23 percent (year-on-year) in August 2018.

orthcourt Real Estate, a firm of estate surveyors and valuers, has expanded the scope of its service offerings, having received regulatory approval to offer real estate valuation services that will focus on commercial real estate, plant and machinery and art valuations, the management of the company has revealed.

Tayo Odunsi, the CEO of the company who gave this hint at the fifth anniversary of the firm recently, recalled that the organisation started out with real estate advisory, facilities management and real estate development and has, in its short history, made phenomenal progress in the profession.

Real estate professionals were advised not to depend on regulatory authorities to keep market share within their reach. Yemi Odubiyi, COO of Sterling Bank and a real estate trained banker, explained that this had become necessary as professionals from different disciplines and background are capable of churning out new products into the market and effectively compete with existing organizations.

Odubiyi, who delivered the keynote speech at the anniversary dinner which was an evening of glamour and excitement with leading business executives, government officials and professionals from the academia, real estate, investment and finance sectors, noted that what he was advising on was already being witnessed in the technology sector.

“There is no guarantee that 100 percent of innovation in the industry will come from market leaders as technology has evened out the playing field for new ideas”, he cautioned.

the panel discussion on the topic od the speech, ‘The Future of Real Estate’, moderated by Yinka Adewale, an Organisational Behaviour lecturer at the Henley Business School, University of Reading, featured Kola Ashiru-Balogun, CEO, Mixta Nigeria; Modupe Anjous, MD, Rydal Mews; Fikayo Ogundipe, CEO, PropertyPro.ng; Dolapo Omidire, CEO, Estate Intel, and Ayo Ibaru, COO, Northcourt, offered insights on how technology will shape every aspect of real estate business going forward.

Rogba Orimalade, chairman of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos Chapter, commended Northcourt on behalf of the President of the institution, adding that the achievements of the firm in the past five years were a source of inspiration to the body.

Adetokunbo Ajayi, CEO of Propertygate Development and Investment Company, also applauded Northcourt’s real estate consulting model, adding that the firm was on its way to the league of global consulting firms like JLL and CBRE. He also commended managers of Northcourt for driving the company’s vision while mentoring and developing young professionals.

The chairman of Northcourt’s Research and Advisory Board and Head of Department of Estate Mangement, University of Lagos, Modupe Moronke Omirin, noted that the managers of Northcourt were all products of the University of Lagos. She commended the firm’s executive leadership team for pushing the boundaries of innovative thinking in real estate, winning local, regional and international awards.

Fresh opportunities for buyers as Mixta Africa expands portfolio, launches affordable schemes CHUKA UROKO

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onsistent with prevailing economic realities, the focus of housing delivery is shifting as private real estate investors, particularly those on the Lagos-Epe axis, are expanding their portfolios to respond to current market forces of demand and supply.

Apparently, there is a gradual shift

away from luxury housing range as has been demonstrated by a leading real estate development company and wholly owned subsidiary of ARM Limited, Mixta Africa, which has introduced into the property market the second phase of its affordable homes project.

Modeled after Residence de la Paix (RDP), the scheme is an afford-

able, well-planned, mixed-use estate in Lakowe town, along the Lekki-Epe Expressway. Apart from the completed units, RDP is also available in two and three bedroom shell configurations and serviced plots. It comes with its own standard amenities including roads, power and water supply systems.

Already, the first phase of the scheme of 96 units has been delivered while the second phase comprising 112 units of terraces and flats is set to commence. Under the project, about 416 flats, 110 serviced plots and 26 terraces will spring up at the expansive site.

“We have several projects for different group of people; we’re focused on affordable housing. We have to look for ways to get people into houses.

Making people own homes makes the economy grow,” says Kola AshiruBalogun, managing director, Mixta Real Estate (Nigeria).

Mixta Africa is also the developer of the Lakowe Golf and Country Estate consisting of a 308-hectare exclusive,

secure and serene gated community with an 18-hole world class golf course, guest cottages, corporate lodges, Spa facilities and hotel and a club-house with sports facilities.

The company has continued to expand its portfolio of properties in the estate, the latest addition being The Cove. “It’s a community with a lifestyle like no other. Nestled in a quiet, manicured corner of the exclusive Lakowe Lakes Golf and Country Estate, The Cove is our best development yet.

“We have designed it especially for a select and discerning few. The architecture is simple yet elegant, distinctively making the best use of the landscape”, Ashiru- Balogun said.

Continuing, he disclosed, “there are a range of different home types you can choose from at The Cove, including one, two, and three bedroom apartments, and three bedroom terraces and maid’s room. The homes come with fantastic views of the lake, the golf course greens and fairways, or

excellent garden views according to your preference”.

The managing director disclosed further that significant changes had been made in the estate on the completion of outstanding units, adding that they were handing over about 200 units in the estate now. “Everything is ready; we have a growing number of homeowners already living here”, he said.

From last year till now, a lot have gone into the estate as all the infrastructure work have advanced and these include all the roads, water and electricity which have been completed.

The estate is fully ready which is why the company has launched The Cove.

The Cove is a contemporary design of homes on a piece of land that is overlooking the lake. It is a modern design of two and three bedroom apartments that buyers prefer. “We ‘re doing about 160 units. Our sales have been very strong already because people have seen what Lakowe has become, a real destination luxury living.,” the managing director observe.

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With

BUSINESS DAY

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Odunayo Oyasiji

Demand Guarantee

T Meaning

his is a very useful instrument in commercial transactions. It is also called bank guarantee. It comes in different forms and types depending on the use.

That is why we have for example- performance bond/ guarantee, tender guarantee or bid guarantee, advance payment guarantee or stage payment guarantee, retention bond/guarantee and maintenance guarantee. It is similar to letters of credit in some waysespecially due to the fact that it is independent of the underlying contract between the parties. The guarantor (bank) must honour the guarantee once the beneficiary makes a demand. It is usually demanded by a party to serve as a form of protection in a situation where the other party refuse to perform his obligations as agreed. The rights and duties of parties to the demand guarantee are usually governed by Uniform Rules for Demand Guarantees (URDG), 2010.

Reason for a demand guarantee Just like letters of credit, demand guarantee plays a major role in protecting the interest of parties and ensuring that business is transacted both locally and across borders without the fear of being duped. Performance of obligations under a contract is key- especially to a party that has parted with money. For example, Mr A resides in Nigeria and wants to import a car from Japan. Mr A gets in touch with Mr B who sells cars in Japan. They both agree on the terms of contract of the sale of the car. Mr A who is the buyer/importer can request for a demand guarantee from Mr B who is the seller.

The function of a demand guarantee in the foregoing scenario is to protect the buyer (who might have paid fully or partially) in a situation where the seller in Japan fails to perform his obligations under the contract. The buyer can then present the demand guarantee and get paid by the bank.

How it works An exporter or seller approaches his bank for issuance of a performance guarantee in favour of the buyer. The bank carries out the instruction of the seller based on some terms and after collection of its charges.

Difference between a demand guarantee and letters of

credit Letters of credit offers protection for the seller in that payment for the goods bought is secured upon presentation of the documents stated in the letter of credit. The documents are usually evidences of performance of the underlying contract. It must be noted that the letter of credit itself is independent of the underlying contract and payment is made once conforming documents are presented. However, a demand guarantee seeks to protect the buyer against the risk of non-performance, late performance or defective performance of the underlying contract. The liability of the bank is primary under the demand guarantee and the beneficiary must be paid once a demand is made. The demand guarantee enjoys independence from the underlying contract as the bank cannot look into the performance of the underlying contract to determine if it will pay or not. A demand guarantee focuses more on the protection of the interest of the buyer while a letter of credit is more interested in securing payment for the seller.

The major risk attached to the demand guarantee is that in most situations there is no need for presentation of documents that will show or serve as evidence of performance of the underlying contract.

The seller stands the risk of the buyer presenting the guarantee for payment even in a situation

where the seller has performed.

Demand guarantee distinguished from the traditional guarantee Traditional guarantee refers to a situation where party A secures the payment to party B in a situation where party C is unable to pay. Therefore, the obligation of a guarantor to pay is secondary in a traditional guarantee i.e. it only arises where party C is unable to pay. However, the obligation of the bank is primary in a demand guarantee. Once there is a demand the bank is under an obligation to pay.

A look into different types of demand guarantees The below are some of the major types of demand guarantees that are being used across the world when transacting business1. Performance guarantee/ bond- This is usually used by contractors, exporter and suppliers. It is a guarantee that the underlying contract will be performed from beginning to the end as agreed by the parties. It is like cash in hand i.e. cash retained as security for a situation where there is a breach in the performance of the underlying contract. The primary aim of this type of guarantee is to ensure timely and accurate performance as it is a form of financial penalty if the contractor, seller or supplier fails to perform his side of the contract. The value of the performance guarantee issued in favour of a beneficiary

is usually 5 to 10 percent of the contract value- depending on the agreement of the parties.

2. Tender guarantee/ bid bond- It is often used in a situation where a contractor is bidding for a contract. That is why it is also called a bid bon/ guarantee. It is usually part of the condition a contractor must fulfil when tenders are invited.

Its purpose is to prevent unserious bidders from bidding for contracts. If the contractor that issues it is awarded the contract and he chooses not to execute the contract he will forfeit the amount in the tender guarantee to the beneficiary. This goes a long way to ensure that only serious minded contractors bid for contracts.

3. Retention guarantee – Contracts sometimes depending on their nature are usually executed in phases. Example of this is construction contract.

Payment is usually made in phases too after certificate issued by engineers certifying the job is received. However, a percentage of the money to be paid is usually retained for some time in case of defect in the performance of the contract. If there is a defect, the beneficiary keeps the money. What the guarantee does is that the employer releases the entire sum in exchange for the guarantee as he can readily get paid by the bank in case if a defect is later found. The guarantee is usually in place for one year. This in a way helps the contractor to get a good part of the contract sum

and it also ensures that quality work is done by the contractor.

4. Advance payment guarantee- Sometimes, part of the contract sum is paid to a contractor in advance before performance of the contract. In this situation, the employer of the contractor is at a risk of losing his money if the contractor does not perform. The usual means of protecting the employer is usually through the issuance of an advance payment guarantee. This guarantee secures the repayment of the amount paid in advance to the contractor should he fail to perform as expected. The value of the guarantee is usually between 10 to 20 percent of the contract sum.

The advantage is that the employer will have the confidence to release money in advance for the execution of the project/ contract while this reduces the headache of the contractor in the area of funding.

5. Maintenance guaranteeThis is useful after the completion of a construction contract.

Usually, the retention moneys are to be retained for some time after the completion of the contract in order to cover for defects and malfunctions that may be discovered. However, the issuance of this guarantee ensures that the contractor is paid in full. He can claim under the guarantee if defects are detected. The advantage of this is that the contractor gets fully paid and thereby giving him enough fund to attend to other contracts he might be executing.

Conclusion Demand guarantees are extremely useful in trade and contractual matters. It provides a high level of security to the beneficiary in case of nonperformance, late performance or defective performance of the underlying contract. It is similar to letters of credit because the bank must obey it once there is a demand. Therefore, the beneficiary is sure of payment.

The risk associated with it is that documents serving as evidence of non-performance are usually not part of the requirements to be presented. Therefore, a beneficiary can still demand despite the fact that the seller (party who requested the bank to issue it) has performed. It must be noted that what makes it attractive is the fact that the bank is involved and the seller/ contractor is relying on the integrity and credibility of the financial institution to secure the confidence of a buyer.

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Markets + Finance ‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Ecobank Plc: Record drop in NPLs validates risk management strategy BALA AUGIE

E

cobank Transnational Inc (Ecobank) Plc recently released its half year results for the period ended June 30th 2018, which showed improvement in gross earnings, profit and asset quality.

The pan African lender has continued to grow earnings at a double digit after surmounting the headwinds caused by a precipitous drop in crude oil price of mid 2014.

It was able to utilize the resources of shareholders in generating higher profit as evident in increased return on equity (ROE).

Noninterest income drives profit Profit before tax (PBT) for the second quarter or June 2018 increased by 41 percent to $212.83 million from $151.26 million the corresponding year of 2017.

Profit after tax (PAT) increased by 36 percent to $168.54 million in the period under review from $123.31 million as at June 2017.

The growth in profit is largely driven by an uptick in gains in non interest income and cost curtailment as the lenders mobile money banking continues to drive earnings.

Ecobank’s operating profit remained flat at $910 million in the period under review despite low net interest margin (NIM).

Ade Ayeyemi, MD/CEO, Ecobank

NIM moved to 6.0 percent in June 2018 compared to 6.1 percent as at June 2017, driven by net impact of lower rates.

Ecobank’s cost-to-income ratio fell slightly to 62 percent in June 2018 from 61 percent in June 2017, primarily due to lower operating income growth O p e rat i n g e x p e n s e s were up 2 percent to $552.75 million in June 2018 from $563.72 million as at June 2017; expenses were flat in constant currency, as the pan African lender continues to benefit from the restructuring completed in the last 2 years and stringent expense discipline.

Net interest income was up 3 percent (2 percent in constant currency), driven by higher deposit margins, partially offset by lower

yields on earning assets and lower loan balances.

A breakdown of total operating expenses shows other admin expenses, restructuring costs, and operational losses were down by $22 million, $5.2 million, and $2 million respectively.

Also, costs related to telephone was down $1.2 million. These were offset by increases software and hardware depreciation, taxes, IT license, advertising and promotion and legal.

Ecobank’s gross earnings reduced by 1 percent to $1.25 billion in the period under review, from $1.25 billion as at June 2017.

The reduction in gross earnings was due to a slight increase in interest income by 0.1 percent to $791.89 million in the period under review from $791.31 million.

Ecobank Trans Plc: Financial Ratios For Period Ended June 2018

Net interest income (NIR) was up 3 percent to $479.18 million in June 2018 from $466.92 million as at June 2017.

Net interest revenue was down 3 percent (4 percent in constant currency), with fee growth in cash management and Cards more than offset by lower fees on FX sales, loans, and trade finance.

Ecobank was efficient in the utilizing the resources of shareholders in generating higher profit as return on tangible equity (ROTE) increased to 20.90 percent in the period under review from 15.90 percent the previous year.

Return on Equity (ROE) increased to 17.80 percent in the period under review from 13.20 percent the previous year.

“These results show the considerable achievements we are already making in the execution phase of our strategy. For the first half of the year the firm generated profit before tax of $213 million, an increase of 41% from the same period a year ago, and a return on tangible total shareholders’ equity of 20.9 percent, said Ade Ayeyemi, Group Chief Executive Officer (CEO) of Ecobank.

“We were encouraged with the levels of client activity we saw in most of our businesses and precisely in our deposit-generating franchise. As a result, customer deposits grew 12% in constant currency, improving the firm’s liquidity and ability to lend to customers. The enormous efforts we have made to improve asset quality is also paying off. We have started to see improvements in our credit portfolio, resulting in lower impairment losses for the period,’’ said Ayeyemi.

Improved asset quality validates risk management strategy Ecobank’s risk management strategy has paid off as evident in improved asset quality.

Nonperforming Loans (NPLs) fell to 9.60 percent to

Ecobank Trans Plc: Financial Ratios For Period Ended June 2018

BD MARKETS + FINANCE Analysts: BALA AUGIE

Ecobank’s total loans June 2018 from 11 percent and advances to customthe previous period.

In absolute figures, ers were down 7 percent to NPLs fell to $910 million $8.77 billion in June 2018 for in the period under from $9.47 billion the previEcobank Trans Plc: NPL/COR for period ended June 2018 review compared to $1.1 ous year; driven by lowerthan-expected growth. billion as at June 2017.

Ecobank Trans Plc: NPL/COR for period ended June 2018

Source: Company Financials; M and F.

Source: Company Financials; M and F.

Ecobank Trans Plc: CIR/ROTE

Ecobank Trans Plc: CIR/ROTE

Source: Company Financials; M and F.

Ecobank Trans Plc: Financial Ratios

Source: Company Financials; M and F.

Source: Company Financials; M and F

NPL s have fallen on a linked-quarter since year ended December 2017.The decreasing trend in NPLs is driven by lower loan balances and write-downs “The NPL coverage ratio has improved since FY17 driven by a number of factors – increased in day 1 impact of IFRS 9 implementation more than offset by write downs and recoveries,and lower loan balances,” said the Ayeyemi.

Cost-of-risk fell to 2.6 percent in June 2018 agaisnt 3.2% June 2017, predominantly driven by lower impairments due to improvements in the quality of the credit portfolio.

Total deposits from customers increased by 12 percent to $15.44 billion in the period under review from $13.44 billion the previous year.

About Ecobank Transnational Inc Ecobank Transnational Inc. is a bank holding company. The Company, through its subsidiaries and branches, provides a full range of wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and micro businesses and individuals.

Tuesday 09 October 2018

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Live @ The Exchanges Top Gainers/Losers as at Wednesday 26 September 2018

GAINERS Company

LOSERS Opening

Closing

Change

N180

N181.1

1.1

N20.45

N21.4

0.95

GUARANTY

N37

N37.5

UBN

N5.1

UAC-PROP

N1.7

TOTAL ZENITHBANK

Market Statistics as at Wednesday 26 September 2018

Company

Opening

Closing

Change

N210

N205

-5

BERGER

N7

N6.3

-0.7

0.5

STANBIC

N44

N43.3

-0.7

VOLUME (Numbers)

N5.3

0.2

NASCON

N19.6

N19

-0.6

VALUE (N billion)

N1.87

0.17

CUSTODIAN

N5.44

N5.04

-0.4

MARKET CAP (N Trn

DANGCEM

ASI (Points)

32,963.27

DEALS (Numbers)

2,866.00 172,196,327.00 2.052 12.034

Stock Exchange suspend trading in shares of 6 listed companies Stories by IHEANYI NWACHUKWU

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he Nigerian Stock Exchange (NSE) has suspended trading in the shares of six listed companies –namely DN Tyre & Rubber Plc, FTN Cocoa Processors Plc, International Energy Insurance Plc, Thomas Wyatt Nigeria Plc, Union Dicon Salt Plc, and Unic Diversified Holdings Plc. The Exchange disclosed this in a notice

dated Monday October 8, 2018 and signed by Godstime Iwenekhai, Head, Listings Regulation Department, NSE. The suspension becomes effective immediately.

The regulatory action resulted from the Issuers failure to file their relevant accounts by the expiration of the ‘Cure Period’.

Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules) (“Default Filing Rules”), provides that; “If an Issuer fails to file

the relevant accounts by the expiration of the Cure Period, The Exchange will: Send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; Suspend trading in the Issuer’s securities; and Notify the Securities and Exchange Commission (SEC) and the Market within twentyfour (24) hours of the suspension”.

“In accordance with the rules set forth above, the suspension of the above listed companies will only be

Fidson Healthcare Wins 2018 Frost & Sullivan Best Practice Awards

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idson Healthcare plc has emerged winner of the 2018 Frost & Sullivan - Best Practice award for Competitive Strategy Innovation and Leadership. The award ceremony which was held recently in Cape Town, South Africa, recognizes Fidson’s definitive competitive strategy, innovation and strong leadership in the area of Pharmaceutical Production and Distribution in Nigeria.

The 2018 Frost & Sullivan Award which is a global awards that has been in existence for the past fifteen years brought together top business leaders and innovators to celebrate their success.

According to Frost & Sullivan, at the forefront of Fidson’s Innovation and competitive strategy is the N7.5 billion state-of-the-art manufacturing plant in Sango Ota, Ogun State, the largest manufacturing facility in West Africa, designed to double the company’s production capacity, enabling it to grow sales volume and meet the rising demand for drugs in Nigeria and broader West African region.

Beyond boosting the local economy and creating more than 300 jobs for skilled and unskilled Nigerians, the new Fidson plant is consolidating the compa-

ny’s extensive manufacturing capabilities, increasing revenue growth, facilitating expansion into a new product category, and ultimately reinforcing the company’s firm position in the Nigerian pharmaceuticals market.

Frost & Sullivan noted in its statement that the significant competitive advantage of the new Fidson’s factory is already evident after only one full calendar year in operation; when the company experienced revenue growth from N7.6 billion ($21 million) in 2016 to N14 billion ($39 million) in 2017.

Chairman, Frost & Sullivan – David Frigstad wrote that “To achieve excellence in competitive strategy is never an easy task, but it is one made even more difficult considering today’s competitive intensity, customer volatility, and economic uncertainty—not to mention the difficulty of innovating in an environment of escalating challenges to intellectual property. Within this context, your (Fidson’s) receipt of this award signifies an even greater accomplishment”.

Receiving the award at Cape Town, Soutth Africa, Head, Business Development and Strategy, Oshoke Ayebae appreciated Frost & Sullivan for recogniz-

ing Fidson’s contribution through its Innovation and Leadership in the Pharma industry, particularly in the area of quality pharmaceutical products, production and distribution in Nigeria.

“Since inception in 1995, Fidson has relentlessly pursued its goal of becoming a leading player in the Nigerian pharmaceutical landscape and has built an innovative organizational framework that has helped gain dominance in the industry. We have built a structure of Innovation and Excellence around our system, process and people”, he said.

He also noted that the Frost and Sullivan Competitive Strategy Innovation and Leadership Awards is a credible indication that the company is taking steps in the right direction. “As a company, we have left no stone unturned in ensuring that our operations are congruent with the best practice globally, and have recorded several remarkable feats, from one milestone to another. We, therefore, believe that this award will go a long way to boost our corporate reputation and also validate our commitment to deliver excellent quality healthcare solutions to Nigerians”.

lifted upon the submission of the relevant accounts and provided

The Exchange is satisfied that the accounts comply with all ap-

NBCC partners MTN to host stakeholder’s breakfast event

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he Nigeria British Chamber of Commerce (NBCC) in partnership with one of Nigeria’s leading telecommunications service provider MTN Nigeria is set to host stakeholders within Nigeria and British business communities to a breakfast event themed “Jobs, Technology, Infrastructure and the Workforce of the Future”.

The monthly event by the Chamber which holds on October 11, 2018 seeks to bring stakeholders operating within the nation’s diverse economy to a forum discussing the future of work and how technology and infrastructural growth can enable that businesses continue to maximise investments in one of their greatest assets – an engaged workforce long into the future.

Deji Oguntonade, head FINTECH & Innovation at Guaranty Trust Bank Plc will be sharing on the future of work, how disruptive technologies are shaping the future of work, the major economic and technological forces driving the Nigerian economy and the opportunities and challenges ahead.

Stakeholders and participants at the breakfast session are billed for a truly educative session as a panel led by cerebral minds within the Nigerian business space represented by PriceWaterhouseCoopers, Guaranty Trust Bank and MTN would be taking participants through an insightful session on the themed topic as it affects the Nigerian workforce of the future. The panel session would give participants at the breakfast meeting an opportunity to share insights, ask questions and get answers from corporate leaders and industry experts within the Nigerian business community as they prepare for the workforce of the future.

Speaking on the upcoming program, Director General, Nigeria British Chamber of Commerce, Bunmi Afolabi stated that “the Breakfast session would provide an opportunity for key business leaders to engage, foster business relationships and proffer advisory solutions to prevalent issues largely affecting the business community.”

plicable rules of The Exchange,” the NSE noted.

NSE, Bloomberg set to hold 4th CEO roundtable

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he Nigerian Stock Exchange (NSE) in collaboration with Bloomberg will today October 9, 2018 hold the fourth edition of the NSEBloomberg CEO Roundtable.

The event themed, “Reshaping the Nigerian Economy for Sustainable Growth: Leveraging the Fourth Industrial Revolution as a Catalyst for Advancement”, will focus on the topical issue of the fourth industrial revolution and its implication for the Nigerian economy.

This edition of the NSEBloomberg CEO Roundtable will bring together business leaders across multiple sector as well government officials to examine the present state of the Nigerian economy in light of the unfolding fourth industrial revolution and chart a way forward.

Oscar N. Onyema, Chief Executive Officer, NSE, said that “Nigeria’s dependence on commodities production as the mainstay of its economy has historically proven to be the source of its high risk exposure to global shifts in commodity demand. With the unfolding fourth industrial revolution which has seen the embedment of technology across all aspects of society, I believe we can accelerate the unlocking of untapped value across all sectors of the economy through the disruption of existing industries and creation of entirely new ones.

Tuesday 09 October 2018

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L-R: Bolade Soremekun, MD/ CEO, Rubitec Solar; Funke Osibodu, MD/ CEO, BEDC Electricity plc, and James Sherwood, manager, Rocky Mountain Institute, at the MoU signing ceremony on mini grid electricity project for communities within BEDC franchise areas held at the BEDC head office in Benin City, Edo State, yesterday

Stakeholders call for use of technology in Ease of Doing Business DIPO OLADEHINDE

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eading players in the Nigerian economy have called on both the private and public sectors to collaborate and leverage technology to further improve the ease of doing business in Nigeria.

This was at the ‘Technology as a Catalyst in Ease of Doing Business Conference 2018’ in Lagos, last week, were discussion was held on the need to leverage on the technology revolution to promote ease of doing business in Nigeria, which would have a positive development on Nigeria’s economic development.

Nigeria’s Vice President Yemi Osinbajo, who delivered the keynote address, said there was need for collaboration between the private and public sectors on the need to leverage technology, which was the rationale behind the intro-

duction of Presidential Enabling Business Environment Council (PEBEC) aimed at removing the challenges and obstruction in the ease of doing business in Nigeria.

“Nigeria must understand the importance of technology in improving our ease of doing business ranking which cannot be achieve alone by the public sector but also by strong collaboration with private sector,” Osinbajo said.

The Vice President noted that the regular banks were becoming jittery about the increasing number of FINTECH operations because of the huge role they play, as the Central Bank of Nigeria was also struggling to control them.

Surely technology is the way forward, he said, however, the nation must prepare for the future by developing national cyber security and data privacy to solve the challenges that comes with a technology

driven economy.

The event, which brings together stakeholders from both the public and private sectors, identified opportunities for further technology driven economy in reducing the menace of corruption and excessive bureaucracy, as both remain major disincentives for Foreign Direct Investment into Nigeria.

Minister for trade and investment, Okechukwu Enelamah, said creating the right environment was the one thing among many others President Buhari government had gotten right, which was successful due to collaboration from the private sector.

“Stakeholders should see themselves as actors in the ease of doing business process, which technology must be leverage upon in order to achieve its set target,” Enelamah said The first panel session moderated by Frank Aigbogun, CEO of BusinessDay

Media Limited, discussed the key initiatives taken by government agencies in taking governance online.

Boboye Oyeyemi, corps marshal/chief executive, Federal Road Safety Corps (FRSC), said the safety commission was leveraging technology in the issuing of drivers licence, done manually before.

“Our driver’s license now enjoys international recognition, when you travel outside nobody can disregard your driver’s license,” chief executive of FRSC told the audience.

Thanks to technology, Nigeria can sit in the comfort of their home to renew their driver’s licenses without going to one office or the other with huge amount of files, Oyeyemi said.

The FRSC boss noted that the commission now accept payment of fines online, which has allowed FRSC to enhance its database, which is gradually growing bigger.

35 NEWS

BUSINESS DAY

NMRC tackles manpower deficit in construction industry, trains IDPs CHUKA UROKO

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oncerned about the manpower gap in the building and construction industry, the Nigeria Mortgage Refinance Company (NMRC) is out to bridge that gap with the training of internally displaced persons (IDPs).

Working in collaborating with the Industrial Training Fund (ITF), the company has flagged off its second building and construction skills acquisition programme for 40 IDPs at the Karamajiji IDP Camp in Lugbe, Abuja.

NMRC is a Central Bank of Nigeria (CBN)-licensed mortgage liquidity facility with the core mandate of developing the primary and secondary mortgage markets by raising long-term funds from the capital market, and thereby promoting affordable home ownership in Nigeria.

Besides finance, lack of skilled labour such as bricklayers, tilers, carpenters, plumbers, etc is a major challenge in the building industry, hence the need for training and acquisition of these skills. But apart from closing the skills gap, the three months intensive vocational training programme is organized in line with the strategic objective of NMRC’s corporate social responsibility (CSR) of contributing in a practical and sustainable way.

“This training is aimed at reducing the artisan skill deficit in the construction and building industry and at the same time empowering socially disadvantaged youths with relevant industry skills and competences that will enable them to

earn a decent living,” explained Chii Akporji, an executive director at NMRC. Specifically, the training programme aims to empower the participants; it is in continuation of efforts to help those displaced by the Boko Haram insurgency in the North East with professional skills in four different construction and building trades including masonry (bricklaying and plastering), plumbing, electrical works and tiling.

A key feature of the 2018 training programme is the inclusion of 10 women who will be trained particularly in tiling. This is part of NMRC’s commitment to gender inclusion and support.

During the training, expert trainers and professionals from ITF will teach participants the theoretical and practical aspects of their chosen trade areas using a fast-track but comprehensive curriculum that will impact sufficient skills to get them started in the industry.

As part of the practical training project, participants are to construct some demonstration housing units that will help to provide decent accommodation for IDPs at the site.

The houses will be wholly fitted with all components including electrical, plumbing, tiles and toilet facilities.

“NMRC’s decision to make construction and building skills acquisition a key part of its annual corporate social responsibility is based on our understanding of the potential of the housing industry to create jobs and impact lives positively; we believe that the best way to empower a person is to give him the skill to meet a need in exchange for value,” Akporji stated.

FG to announce new minimum wage as committee wraps up negotiations Restoration of ATO certificate to boost Aviation College’s capacity JOSHUA BASSEY & KEHINDE AKINTOLA

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new national minimum wage is expected to be announced soon following the wrapping up of negotiations by the 30man tripartite committee set up by the government to arrive at a figure acceptable to all stakeholders.

Organised labour comprising the Nigeria Labour Congress (NLC), Trade Union Congress of Nigeria (TUC) and United Labour Congress (ULC) had agreed on an harmonised figure of N65,000, which they jointly presented to the government as new minimum wage to replace current N18,000.

However, members of the Organised Private Sector (OPS) had pushed for N25,000. Although it could not be confirmed the figure

agreed eventually by the tripartite committee, but Ayuba Wabba, president, NLC, said on Monday in Abuja that the committee had reached an agreement and forwarded same to the Federal Government.

According to Wabba, the tripartite committee after labour’s strike last week, sat for two days and after much deliberation, arrived at a figure acceptable to all stakeholders including the governors.

“I want to assure workers that all has been concluded and will be passed for signing within the week.

“I also want to appreciate the OPS, Manufacturers Association of Nigeria and Nigeria Employers Consultative Association (NECA) for their resolve to pay the new minimum wage when it is signed into law,” he said.

The NLC president, however, refused to disclose the figure arrived at by the committee. Wabba said the presidency would make it public after deliberation by the National Economic Council meeting.

The NLC, TUC and ULC on September 30, suspended its warning strike on a new minimum wage embarked upon on September 26. Labour had embarked on the strike after a 14-day ultimatum to the Federal Government for failing to reconvene meeting to come out with its own figure on the new minimum wage.

The three unions had demanded N65,500 as new minimum wage for workers, while the private employers and some state governors were proposing N25,000.

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ith last week’s re-certification of the Approved Training Organisation (ATO) certificate of International Aviation College (IAC) Ilorin, the college is set to resume training of the flying school and dispatchers as it declares that its capacity to train has been enhanced.

Benedict Adeyelika, rector of the IAC, made this known in an interview with Nigerianflightdeck.com Monday, stating that the recertification was done as the college closed all the Nigerian Civil Aviation Authority (NCAA) open items.

An ATO certificate is an authorization from the NCAA given approval for the college to operate. It is an equivalent of an Air Operators Certificate (AOC)

and an Aircraft Maintenance Organization (AMO) but for the intention of training.

Muideen Akorede, senior special assistant (SSA) on Media to Abdulfatah Ahmed of governor of Kwara State, had at the weekend announced the restoration of the ATO, which he said was communicated to the college through a letter, dated October 3, 2018.

Akorede added that the letter was titled “Lifting of Suspension of Approved Training Organisation (ATO) Certificate number: ATO/AA/004”.

He noted that the NCAA hinged its decision to restore the certificate on “the closure of a good number of the findings” by the management of the International Aviation College, Ilorin.

The letter also noted “the remarkable commit-

ment demonstrated in closing the remaining findings as verified during the recent Recertification Audit of your college.”

Adeyelika, who explained the benefits of the ATO and the colleges capacity to commence training, said, “the ATO is an authorisation from the NCAA to operate as a college, it’s an equivalent to an AOC, AMO. An ATO is on the category of an AOC and it has operations specifications like the former. It tells us what we can do: train pilots, do Personal Pilots Licensing (PPL), some also do instrument rating and the likes and with our approval we can expand from there.”

“The certification means a lot, it would ensure the safety of training because safety in this business is paramount.

We will be resuming training for the flying school and the dispatchers.

36 BUSINESS DAY NEWS

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C&I Leasing lists its N7bn fixed rate bond on FMDQ SEYI JOHN SALAU

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orporate institutions have continued to successfully tap into the Nigerian Debt Capital Markets (DCM) to access stable long-term finance to fund their key activities that ultimately translate to the development of the economy at large, some of which include, but are not limited to funding pressing development needs and supporting capital investments.

The most recent of these corporate institutions is C&I Leasing, which, following the approval granted by the FMDQ Board Listings, Markets and Technology Committee, listed the C&I Leasing N7 billion Series 1 Fixed Rate Bond under its N20 billion Bond Issuance Programme (the C&I Leasing Bond) on the OTC Exchange.

To commemorate the listing of the bond, a ceremony was held at the FMDQ offices on Friday, October 5, 2018, where the OTC Exchange played host to the issuer, represented by Andrew OtikeOdibi, managing director/ CEO, C&I Leasing (C&I Leasing), alongside other senior executives of C&I Leasing; the co-sponsors to the issue on FMDQ, Planet Capi-

tal Limited, represented by their Executive directors/coCEOs, Tony Anonyai and Efe Akhigbe, alongside Planet Capital Limited’s senior executives; and other parties to the issue.

Bukola Oluyadi, divisional head, marketing communications, FMDQ, during her welcome address, congratulated the issuer and sponsor of the issue on the success achieved in the DCM and expressed the OTC Exchange’s gratitude for the issuer’s decision to list the bond on FMDQ, According to Oluyadi, being listed on FMDQ will avail the bond a host of benefits including, unprecedented transparency, efficient price formation and improved global visibility, among others. She further reiterated the OTC Exchange’s commitment to continually align its strategies and innovation to serve and provide the muchneeded support to the players in the DCM. Andrew Otike–Odibi, managing director/CEO, C&I Leasing, during the issuer’s special address, stated, “We are grateful to everyone who contributed tremendously to the process of the issue from the beginning to this point.

The expansion plans for

which we raised the bond are already successfully on course with our complete acquisition of C&I Petrotech taking full ownership of six boats in the process, as well as the recent acquisition of some new vessels to take advantage of the increasing opportunities in the marine business.

Also, we have invested in brand new vehicles to upgrade the travel experience for our car rental and fleet management clients. In addition to these, we are able to replace some expensive debts with the bond proceeds. Overall, the funds have already been put to use and we guarantee subscribers value and returns in due course.”

Delivering the Registration Member (Listings) remarks, Tony Anonyai highlighted, “The oversubscription of the offer is indicative of investors’ confidence in the C & I Leasing Bond. Indeed, Planet Capital is very delighted to lead the group of issuing houses in this capital raising exercise.

This listing creates liquidity for the instrument and improves the price discovery process for subsequent issues by the company.”

Tuesday 09 October 2018

Anxiety over impeachment plot heightens as National Assembly resumes KEHINDE AKINTOLA, Abuja

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here is palpable fear within the People’s Democratic Party (PDP) caucus over the impeachment of Speaker Yakubu Dogara allegedly being muted by the leadership of All Progressives Congress (APC) when the House fully resume on Wednesday.

According to the scheduled electronic Notice Paper sent to all the lawmakers, the House is expected to adjourn the Tuesday plenary session after the Speaker’s welcome speech, to mourn the death of Funke Adedoyin (PDPKwara) who died on Friday, September 28, 2018.

To this end, legislative activities are expected to resume on Wednesday, BusinessDay authoritatively gathered.

BusinessDay gathered that many of the lawmakers who lost from the just concluded party primary elections for return tickets to the Lower Chamber, especially in the South-South

and South-East geopolitical zones, may decamp to APC to protest the highhandedness of their respective State Governors.

While confirming this, Timothy Golu (PDP-Plateau) who spoke on behalf of Parliamentary Democrats Group (PDG) cautioned members of APC to desist from the purported plan to impeach Speaker Yakubu Dogara when the House reconvenes on Tuesday, despite his defection to PDP. Golu, who confirmed that the House would reconvene as scheduled and attend to urgent and pressing national issues requiring legislative attention.

He vowed that the group would resist any attempt to disrupt the legislative activities against the House leadership from any quarters.

Golu also advised the APC to prepare for the gale of defection that will hit it as many of the ruling party’s lawmakers would be defecting to the PDP upon the resumption later this and put the opposition in a comfortable majority in the House of Representatives.

He said, “Our attention has been drawn to statements credited to the APC, that Dogara, should vacate his seat as he is occupying a usurped position.

“We want to again state categorically clear that any attempt to instigate crisis or undermine the authority, right or position of the Speaker would meet a brick wall.

He maintained that: “The position of the Speaker does not belong to any political party as he was elected by members from all the political parties as provided for in the 1999 Constitution.”

Golu further tasked security agencies to steer clear of politics and not themselves to be used as tools by the “failing APC” as Nigerians and the international community are watching and monitoring developments in the polity with kin interest.

“We call on our colleagues to be vigilant and prepare for any eventuality that those planning to destabilise the parliament may come up with”, he stated.

Tuesday 09 October 2018

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FrieslandCampina WAMCO, paediatricians champion children’s nutrition campaign

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s part of its community service that marks Nigeria’s 58th Independence celebration, FrieslandCampina WAMCO Nigeria is partnering Ask the Paediatricians (ATP) Foundation to deliver nutrition assessment and support for over 5,000 children and their parents across Lagos, Kwara, Abuja and Abeokuta – on September 29 and October 1, 2018.

Supported by Peak 456 growing-up milk, the social responsibility initiative had a team of doctors led by Gbemisola Boyede of the ATP Foundation, did nutrition assessments using growth charts, milk sampling and gave health talks. FrieslandCampina WAMCO’s specialised nutrition staff volunteers also participated.

Boyede, a consultant paediatrician at the Lagos University Teaching Hospital, Idiaraba Lagos, started Ask the Pediatricians (ATP) Foundation as a group on Facebook on July 20, 2015. ATP now has four major areas of focus namely, Health Education

Online Forum, Community Medical Outreaches, Health Seminars and Workshops, and Support for Orphans and Vulnerable Children.

FrieslandCampina WAMCO is renowned for its mission to nourish Nigerians with quality dairy nutrition. According to Zatur Hassim, head, Specialized Nutrition, “This is what drives our business and motivates our people.

These outreaches were deployed not just to conduct health checks on children but also to teach parents how to identify nutrition deficiencies and mitigate their prevalence.

“In honour of Nigeria’s 58th Independence celebration, we are once again demonstrating our corporate citizenship of the world through this programme that supports reduction in hunger, promotes well-being and partnerships for development, all of which demonstrate the United Nations sustainable development goals 1, 2 & 17.” said Hassim, in a statement signed

by Ore Famurewa, corporate affairs director.

37 NEWS

BUSINESS DAY

Applicants squeezed over arbitrary charges Edo, group take fight against human trafficking to Uromi, others by NIS officials at Ikoyi passport office

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do State government in partnership with Concerned Citizens of Edo State, a non-government organisation, takes the campaign against human trafficking to Uromi and environs in Edo Central Senatorial District, in a renewed effort to mobilise public support for government’s efforts to curb the incidence of human trafficking and irregular migration.

Officials of the state government and the group stormed markets and densely populated areas in Uromi, notably Angle 80, Amedokhian, Ojuromi Ultra-Modern Market, Ivue Market, among others, to drive the message and engage the people on the dangers of illegal migration.

President of the NGO, Ogbewi Aghedo, said that the group was out to spread word on the dangers of human trafficking as available data on the trend showed that the menace is endemic in Edo State, thus requiring concerted effort from all stakeholders to discourage people from thinking that irregular migration is the only way to survive.

According to Aghedo, “We are here to join our voice with government’s campaign against irregular migration and human trafficking. Any right-thinking Edo person would not be proud of the stigma that the menace of irregular migration has brought on our noble land. What we are here to do today is to tell the people that they should stop encouraging their people to travel illegally. Rather, they should exploit legal means to migrate.

“Our mandate is simple.

We believe that government is doing a lot to discourage this trend. The people should also do their part.

That is why we are pushing for the people to get the message, to see that their people who they think may have crossed over to Europe, may just be suffering in Libya or are even dead.

“So this is why we are here. We have been to major markets and the densely populated parts of Uromi.

This follows similar campaigns we have done in Benin City, which has changed the attitude of several people towards illegal migration.”

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assport applicants have continued to lament over alleged extortion by the Nigerian Immigration Service (NIS) officials at the Ikoyi Passport Office.

BusinessDay’s checks show that applicants pay over 80 percent of the official amount to NIS officials for new passport, replacement of lost passports and change of name.

A visit by BusinessDay to Ikoyi Passport Office last week shows that official fee for change of name in passports is N17,500, but applicants pay N35,000.

Official fee for replacement of lost passport as posted at the office notice board is N24,000, but the officials charge applicants N42,000.

In addition, Ikoyi office now charges N3,000 as compliance fee, which is not approved by the Ministry of Interior.

A source at Ikoyi Passport Office, who craved anonymity, told BusinessDay that these arbitrary charges might not be unconnected with the unavoidable absence of Mannir Yari, dep-

uty comptroller in charge who was recently involved in an accident, thereby giving way to NIS officials to perpetrate the extortion act.

The source said, “Actual fee for new passports, passport replacements, especially for applicants with lost passports and change of name are posted at the notice board at the entrance gate to the passport office, but the officials still charge applicants arbitrarily. After files have been cleared for printing at the comptroller’s office in Abuja, the officials still demand extra N3,000.”

He noted that the situation had become worse since the transfer of new officials, who see the influx of applicants at Ikoyi office as an opportunity to enrich themslves illegally.

An applicant who identified himself as Joy Emelie told BusinessDay that, “Why must people pay N3000 for files to be produced? Three women came to the office and were told that their files were ready for production but there is no compliance.

When asked the meaning of compliance, they were asked to pay N3,000.

38 BUSINESS DAY NEWS Tale of two sectors: How telecoms overtook...

Continued from page 1

sector where the value chain is still not domesticated, as the coun-

try still do much refining abroad,” Chukwu says in Lagos.

“We can’t throw away a sector that has lot of value positives to Nigeria, so we need to get things right in the sector like Norway or Saudi Arabia.

However, it is not the future,” he notes.

Bismarck Rewane, managing director, Financial Derivatives Company, says the telecoms sector has overtaken the oil sector in terms of output measurement, although not in Federal Government revenue measurement.

Ademola Henry, team leader at the Facility for Oil Sector Transformation (FOSTER), says the NCC is an independent regulator with lack of interferences by the government, which is behind the growth in the telecoms industry.

“Although, telecoms contributions are not as high as oil revenue, however, the GDP contribution is real in terms of quality of access, internet penetration, and service delivery,” Henry says.

BusinessDay’s analysis of Nigeria’s GDP shows telecoms sector (under ICT) contribution to GDP rising to 10.43 percent in the second quarter of 2018 (GDP at 2010 Basic prices), up from 9.19 percent in Q1 2018, according to National Bureau of Statistics (NBS) data.

Meanwhile, crude oil production and natural gas as a percentage of Nigeria’s economy dropped to 8.55 percent in Q2 2018, from 9.61 percent in Q1, 2018.

Stakeholders in the telecoms industry are of the strong view that the sector has impacted immensely on the Nigerian economy through job creation, several communications

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channels, infrastructural development and contribution to GDP. Although NCC’s primary role is not to generate revenue for government, but to nurture and regulate the industry, as figures obtained from the commission show impressive remittance of funds to the coffers of the Federal Government.

Between 2015 and 2017, NCC said it remitted N133.4 billion to the consolidated revenue fund of the Federal Government. BusinessDay learnt that some of the remitted funds were realised from the sales of various spectrum and licences renewals.

Prior to 2001, when the Nigeria’s telecommunication sector was deregulated, Nigeria had about 700,000 lines, which could not meet the growing demand for telecoms services

by Nigerians. Access to information technology was also limited as a result of failed operations by the Nigerian Telecommunications Limited (NITEL). The liberalisation of the sector ushered in the first GSM operator and

the award of the first Digital Mobile License (DML) in 2001.

Since then, the sector has witnessed an unprecedented surge in investments as the entry of new operators has also deepened competition in the sector with the teeming subscriber base being better off for it. Initiatives like number portability have also enriched consumer experience by limiting hassles to accessing better services on a preferred network.

Unlike the telecoms sector, delay in taking Final Investment Decisions (FID) on various crude oil projects and Liquefied Natural Gas projects has stunted the growth of the oil sector.

“Who will bring investment in a country that doesn’t have a good regulatory framework?” Henry, Team leader at FOSTER asks.

China and the rest of Asia are driving growth in the demand for gas due to growing economies and effort to improve air quality. Nigeria was ranked the fourth largest LNG exporter in 2016, according to the World LNG Report. However, delay in taking FIDs on various LNG projects in the country has started eroding the

Tuesday 09 October 2018

country’s share in the global market.

While Nigeria goes slowly on these, the United States, Australia and Russia are ramping up to take advantage of the growing demand.

The International Energy Agency (IEA) disclosed in its latest gas market report, ‘Gas 2018’ that the USA would account for about 75 percent of global LNG export growth by 2023 and would control 20 percent of total market share.

By 2016, the US had 4 percent of the market share and occupied the 16th position while Nigeria occupied 4th position in global supply market size.

It is noteworthy though that the Nigerian LNG Limited signed its engineering design contract for Train 7 constructionlastweek;thisisinpreparation for the signing of final investment decision later in the year. This will increase its production capacity from 22 million tons per annum to 30MTPA. “There is potential for Nigeria’s oil in the upstream, mid and downstream sector. However, when you don’t have a competent regulator the sector will shrink,” Henry says.

Atiku’s choice of running mate seen to...

Continued from page 2

L-R: Chritopher Kolade, special guest; Okoh Ebitu Ukiwe, 2018 Leadership Award Winner, his wife, and Ituah Ighodalo, senior pastor, Trinity House, at the annual Trinity House honour Nigeria awards in Lagos.

Manufacturers see rising inventory on low consumer demand BALA AUGIE

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ow consumer purchasing power is hindering manufacturers from selling greater amount of inventory as economic activities continue to ebb.

While Nigeria has escaped its worst recession in a quarter of a century, manufacturers are increasingly faced with unsold stocks in warehouses.

Analysts say the rate of patronage by consumers has slowed due to high inflationary environment and unemployment rate, and it is expected that inventory days will be higher, hence resulting in huge holding costs.

The cumulative average stock (inventory) turnover ratio of the largest listed consumer goods firms fell to 2.83 times or 234.05 days between June 2017 and June 2018 from 3.70 times or 144.52 days recorded in the periods between June 2016 and 2017, according to BusinessDay data.

The inventory turnover ratio is an efficiency ratio that shows how many times a company has sold and replaced inventory during a period.

It is calculated as sales divided by average inventory.

Low turnover implies weak sales and excess inventory. A higher ratio implies either strong sales or large discount.

“The combination of weak consumer disposable income, which exerts a negative impact on new

orders, gridlock at the Apapa Port area, which increases stock turnover period amid weak fiscal injections, and elevated borrowing costs remain key bottlenecks hindering the performance of the manufacturing sector,” according to analysts at CSL Stock Brokers Limited in a note to clients.

“The impacts of these factors are evident in the Q2 GDP data where the manufacturing sector grew by just 0.68 percent compared with 3.39 percent in Q1 2018,” the CSL Stock Brokers’ analysts said.

Frank Jacobs, former president of the Manufacturers Association of Nigeria (MAN), said, “The access to foreign exchange is equally improving, but there is a gap. We have a huge inventory of unsold stocks lying in the warehouses of manufacturers.”

Meanwhile, a recent report by the Central Bank of Nigeria’s (CBN) Purchasing Managers’ Index (PMI), notes that the manufacturing and non-manufacturing sectors showed weaker readings for September, contracting to 56.2 and 56.5, respectively, from 57.1 and 58.0 in August.

Nigeria’s economy remains fragile, as GDP grew by 1.50 percent in the second quarter of 2018, a downturn from 1.95 percent in the first quarter.

The country’s inflation rate for the month of September stood at 11.23 percent, the first time it rose this year.

“Inventorydayswillbehigherwhen it takes longer to sell your products,”

Ayodeji Ebo, managing director/CEO of Afrinvest Securities Limited, said.

A breakdown of the figures shows Dangote Sugar Nigeria plc’s stock turnover ratio fell to 2.24 times or 162.46 days in the period between 2018 and 2017, this compares with 4 times or 91.57 days recorded between 2017 and 2016.

Nascon Allied Industries plc’s stock turnover ratio reduced to 3.45 times or 105.78 days between 2018 and 2017 from 4.20 times or 86.95 days between 2017 and 2016.

Nigerian Breweries plc’s stock turnover ratio declined to 4.43 times or 82.24 days in the period between June 2018 and 2017 from 4.89 times recorded in June 2017 and 2018.

Flour Mills Nigeria Plc’s inventory turnoverreducedto1.25timesof290.92 days in the period between June 2018 and 2017 from 1.30 times or 280.57 days between June 2017 and 2017.

Between the period 2016 and 2015, the cumulative ratio of all consumer goods firms under our coverage was 1 time or 395 days, as a severe dollar scarcity brought on by a precipitous drop in crude oil prices in mid-2014 saw the country slip into its first recession in 25 years.

“The recent survey by the CBN showed that household willingness to borrow has slowed. It is logical that when people don’t borrow they will consume less,” according to Tajudeen Ibrahim, head of research at Chapel Hill Denham Limited.

of the presidential poll next year.

While some favour the South East region, others say it is the South West.

But everyone agrees that the candidate, wherever he/she is from, must be of impeccable quality and pedigree.

Olisa Agbakoba, a Senior Advocate of Nigeria and co-founder of the Nigeria Intervention Movement (NIM), speaking on the matter, advised Atiku to pick as his running mate, a professional or someone from the civil society who would aid his electoral success, while also suggesting that the South East should be a good place to look.

“He should choose from the ones that would give his ticket a winning formula. The result that came out of the primaries did not indicate that the vice president should be a politician.

I would advise that the person could be an active woman, someone from the civil society, and it should be on merit,” Agbakoba told BusinessDay in a telephone conversation.

“What has been on now is that such a person may be from the South East region. The South East has complained about exclusion in governance for some time now in the country. But I think it should be a technical person, which would add value to Atiku’s campaign. This kind of person would also appeal to the smaller parties, and the person I would suggest is Oby Ezekwesili,” he said.

Other names that have been thrown up so far include Peter Obi, a former governor of Anambra State; Ngozi Okonjo-Iweala, a former minister of finance; Akinwunmi Adesina, a former minister of agriculture and current president of the African Development Bank (AfDB), among others.

Olusoji Adejumo, national president, Yoruba Patriotic Front (YPF), also said that politically, it would be good for the PDP to choose Atiku’s running mate from the South-East, stressing that since the return to democratic rule in the country in 1999, the highest office the region has produced is the senate president.

“Atiku wants restructuring and the Yoruba have been on the issue, so we are on the same page. Logically, he should pick his running mate from Yoruba land. But politically, it may not be so; you may say politically, let him pick from elsewhere,” Adejumo said.

“We have had a Yoruba man as president for eight years; we had another man as president from the South-South region, and Buhari has been in power for some time now.

But the South East has not, so the region may have a reason to say it should come to them. But being a Yoruba man, I would be happy if it comes to Yorubaland,” he said.

But an analyst who does not want his name in print said considering the numbers, the South West should be Atiku’s surest bet for a running mate.

“The North West, Buhari’s stronghold, has the highest number of registered voters, over 18 million. It is followed by the South West, at over 14 million. PDP needs majority votes from the South West to neutralise Buhari’s likely votes in the North West,” the analyst said.

“That apart, the South West already has an incumbent vice president in the person of Yemi Osinbajo. They are not likely to sacrifice that for anything less.

So, it has to be the vice president, and the candidate has to match or even exceed Osinbajo in terms of quality and has to be acceptable beyond just the South West,” he said.

Political parties have until October 18, 2018 for the submission of Forms CF001 and CF002 for their nominees for presidential and National Assembly elections at the Independent National Electoral Commission (INEC) headquarters, according to the ‘Timetable and Schedule of Activities for 2019 General Elections’ released by the commission on January 9, 2018. This means that Atiku has to pick a running mate before that deadline.

But Eddy Olafeso, PDP vice chairman for South West, told BusinessDay yesterday that the choice of who becomes Atiku’s running mate was not a one-man decision but that of the party stakeholders. He said the region that would produce the running mate had not been decided, but added that the party would weight its chances in the southern region to arrive at a decision, while the stakeholders would meet to take a final decision.

“This decision would be taken among the stakeholders in the party, it is not a one man decision, but I can tell you that very soon we would sit down and take our decision on who would be Atiku’s running mate,” Olafeso said.

“We would be looking at the capability of the candidate to step into the president’s position and equally perform when the president is absent.

Such individual must have a good track record, experience and patriotism. The PDP is serious about restructuring the country and revamping the economy, and such candidate must support such vision,” he said.

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Debt recovery: ‘Explore alternative dispute resolution mechanisms’

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n a move that would enable Asset Management Corporation of Nigeria (AMCON) meet its recovery mandate before its sunset period, the duo of the Chief Justice of Nigeria, Walter Onnoghen, and the President Court of Appeal, Justice Zainab Bulkachuwa, have called on AMCON to leverage the Alternative Dispute Resolution (ADR) infrastructure, which is now available for use in courts in the country.

The two justices spoke Monday in Abuja at the interactive session between justices of Supreme Court; Court of Appeal, AMCON and National Judicial Institute (NJI). The discussion, which centred on how AMCON can effectively recover its outstanding N5.4 trillion debt, was themed ‘Strengthening AMCON Recovery Drive.’

Justice Onnoghen in his

opening address at the event said the judiciary must be aware of the daunting task before AMCON, which required judicial support on the one hand and for AMCON to think outside the box and come up with innovative ways of accomplishing its mission within the ambit of the law.

According to Onnoghen, that is the only way AMCON will recover as much debts as possible within its defined lifespan. He added, “It is for this reasons, that I will encourage the use of ADR, as part of the mechanism put in place to resolve asset management related disputes in our courts.”

The CJN, who insists that it is in the interest of Nigeria that AMCON succeeds in its assignment, also added, “Certainly, judicial time and capacity are scarce public resources; as such repeated delays constitute waste of these

precious resources.

“A better understanding of the current trends in this area of the law will go a long way in curbing delays and waste of judicial time and resources, thereby helping AMCON in fulfilling its mandate. The judiciary will continue to do its best to ensure judges remain conversant with the AMCON regime towards engendering efficiency, uniformity and improvement in the quality of judicial services in our courts.”

Stretching the argument of the CJN, Justice Bulkachuwa, who stated her happiness for the interaction, which she said held the key to fast tract debt recovery activities of AMCON and the eventual industrialisation of the Nigerian economy, said, “As I congratulate the honourable and distinguished participants…, I urge you to consider leveraging the Alternative Dispute Resolution infrastructure

that is now available in ours courts towards your efforts on speedy recovery.

In fact, the Hon. Chief Justice of Nigeria has consistently encouraged the utility of ADR viewing the delays in adjudication caused by the density of cases in the dockets of the trial and appellate courts.”

Considering the novelty and significance of AMCON as a recovery agency of the government of the Federal republic of Nigeria, Justice Bulkachuwa who described AMCON’s assignment as difficult and challenging however commended the management and staff of AMCON led by Ahmed Lawan Kuru for taking the bull by the horns on behalf of all Nigerians. She therefore called for a continual review and interaction with all relevant stakeholders especially the judiciary until AMCON recovers its humongous outstanding debt.

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‘EFCC has powers to inquire how state funds are spent’ FELIX OMOHOMHION, Abuja

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Federal High Court in Abuja, on Monday, held that the Economic and Financial Crimes Commission (EFCC) had the powers to investigate the accounts belonging to states government.

Flowing from this, the court consequently dismissed the suit filed by the Benue State government challenging the powers of the commission to investigate its accounts.

The Benue State government had challenged the powers of the EFCC to investigate the state’s accounts, appropriations, disbursements and administration of the funds of the state But Justice Nnamdi Dimgba held that the suit lacked merit. He stated that the plaintiff built its case on the misconception that the EFCC lacked the statutory powers to investigate the financial activities of a state government.

The suit marked FHC/ MKD/CS/42/18 and filed on behalf of the state by the Benue State Attorney General, had the Speaker of the Benue State House of Assembly; the Clerk, Benue State House of Assembly; Benue State House of Assembly and the AuditorGeneral, Benue State as other respondents.

Delivering judgment yesterday, Justice Dimgba held that “the powers donated to the EFCC under Section 38 of its Act are very broad and not limited to any geographical location. It is so broad that it arises even in the context of management of State finances”.

While stating that the suit rest on a fallacy that EFCC

is investigating the Benue State Government, the Judge held that the misconception however collapsed under the provision of Section 38 of the EFCC Act. “Issues are mixed up here and the court cannot allow itself into the misconception.

What is clear to me going by the exhibits attached by the 1st defendant is that petitions were written against some named officials in the administration of the Benue State Government containing allegations of fraud against them.

“Invitation letters were directed to some officials of Benue State Government and another letter requesting the release of some State officials.

“None of the officials is a Governor or Deputy Governor who enjoys immunity under section 308 of the 1999 constitution.

“The suggestion that EFCC is investigating Benue State Government did not hold water. I am of the view that EFCC acted within its powers under the law when it sent letters of invitation to some officials of the Benue State Government for the purpose of investigation, which is the subject matter before this Court”, the court held.

Dimgba said he disagree that the action of the agency tantamount to usurpation of responsibilities of the State House of Assembly and the Auditor General of the State.

While noting that the audit function of the Auditor General did not forclose the duties and functions of the EFCC, the court described EFCC’s function as complementary to the powers of the State Assembly under Sections 128 and 129 of the 1999 constitution.

APC boils as protesters take over National Secretariat JAMES KWEN, Abuja

Nnamdi Okonkwo, managing director/chief executive officer, Fidelity Bank plc. (2nd l), flanked by past winners; Gaffar Abdullateef (N3m winner,1st l); David Itodo, N1 million winner, (2nd r), and Atta Maria Edugwu, at the launch of a new savings promotions campaign; Get Alert in Millions Season 3 (GAIM3) in Lagos.

UNDP Index: Obaseki targets best-performer status for Edo

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do State governor, Godwin Obaseki, says the ongoing reforms in education and health sectors would put Edo in the league of the best performing states in subsequent human Development Indices of the United Nations Development Programme.

Obaseki gave the assurance in Benin City, the Edo State capital, following the release of the UNDP HDI Report 2018, on Friday, using year 2016 performance in: Access to decent living; access to knowledge and health.

Edo State was ranked 12th by the UNDP 2016 Report with a value of 0.5299, followed by Imo, Osun, Kwara, Nasarawa, Ondo,

Anambra, Plateau, Benue, Taraba, Kogi, Oyo, Ebonyi, Adamawa, Kaduna, Gombe, Niger, Kebbi, Jigawa and Kano states.

The top performers, according to the report, are Lagos, the Federal Capital Territory Administration, Bayelsa, Akwa Ibom and Ekiti states.

Obaseki said: “The National Human Development Index released by the United Nations Development Programme which placed Edo State in the 12th position, is an eye opener but our target is to be the best-performing state using the criteria set by the UNDP. “It is instructive to mention that the performances used were those of 2016 and

we have since scaled up our activities in education and health sectors to earn us the top spot. We are ready to unveil 7000 digital primary school teachers soon, to transform the way teaching is conducted in our basic education sector.

“We have commenced the construction of primary health centres across the state to take healthcare to the door steps of our people, no matter how remote their locations are.”

The governor added: “It is our hope that all these efforts would be captured in subsequent UNDP Human Development Indices to reflect Edo State’s current standing among the comity of states in the country.”

According to media analysis of the report, with a value of 0.6515, Lagos outperformed all the other states.

It also retained the title as it had placed first in the 2013 HDI with a value of 0.6716.

“The FCT ranked second with a value of 0.6289. It jumped six places as it had placed seventh in the 2013 HDI, with a value of 0.5112.

“With a value of 0.5909, Bayelsa placed third, stepping a place down from the second place it occupied in 2013, with a value of 0.621.

“Akwa Ibom ranked fourth with a value of 0.5641.

The state retained its placement as it had also occupied the fourth position in the previous index, with a value of 0.5698.

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uling All Progressives Congress (APC) Monday came under fire as protesters took over the party’s National Secretariat, Abuja.

The protesters said to be APC members are demanding both the cancellation of results of primary elections into certain positions and the resignation of Adams Oshiomhole, APC national chairman. Thousands of party members from Nasarawa, Enugu, Kano and Niger States at different intervals on besieged APC Headquarters, blocking entrance and roads leading to Secretariat.

For Kano, the protesters led by Muhammad Kofa alleged that the election that produced Kabiru Gaya, Senator representing Kano South was marred by a lot of irregularities, including election malpractices, rigging, compilation and announcement of fake election by Kano APC.

In a petition, to the national chairman of the party, Adams Oshiomhole obtained by journalists in Abuja demanded that Sulaiman Kawu should be declared winner having complied with the guidelines of the party during the exercise.

The petition partly read, “The primaries election in Kano State were not conducted by the electoral panel sent by the National headquarters and the result was not announced by appropriate official legally.

“Therefore, we unambiguously demand that alternatively the election rigged, giving false results. This election process was entirely contravention of our party’s election guideline and constitution as there was no true and sincere internal democracy.”

The protesters from Niger state alleged that while Sani Mohammed won the Niger East Senatorial Primary, the incumbent, David Umar was declared the flag bearer by the APC leadership.

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FG cautioned against using security agencies to clip opposition …warns democracy under threat with Nigeria Police force JOSHUA BASSEY

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rganised labour has criticised the Federal Government’s frequent deployment of security agencies against the opposition, saying the recent dispersal of a peaceful protest by the police and tear-gassing of law abiding citizens put the nation’s democracy under serious threat.

The police last week dispersed members of the opposition People’s Democracy Party (PDP) who staged a peaceful protest to the headquarters of the Independent National Electoral Commission (INEC, Abuja, against the recently conducted governorship election in Osun State, won by Gboyega Oyetola of the All Progressives Congress (APC).

Joe Ajaero, president of the United Labour Congress (ULC) in a statement issued Monday in Lagos, said: “The events of last week where the police allowed itself to be involved in scuttling legitimate and peaceful protest by law abiding citizens is indeed shameful and stands contrary to the dictates of democracy.

We expect the police to be sensitive to the yearnings of Nigerians for freedom of expression even when the government is unable to make provisions for the basic needs of the people.”

Labour said it was deeply worried that the police seemed to be doing great harm to this administration by its activities that tend to paint this government a dictator. It added, “the government if it is not in this sordid

affair should distance itself from the actions of the police by condemning it publicly and urging it to allow the free reign of democratic expressions.”

Labour in the statement cautioned the police to quickly pull back from the brink to avoid treading the path to self- immolation, adding that “our democracy needs a police force that is impartial and focused on serving the people and nation.

“We need a police whose loyalty is to Nigeria and Nigerian masses. We do not need a partisan police force. We need a people based and driven force whose only bias is to the protection of the rights and privileges of Nigerian citizens and the Nigerian project. The leadership of the police must give Nigerians this basic guarantee and assurance.”

MTN shares up 2.6% on CBN’s possible fine reduction ENDURANCE OKAFOR

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he possible fine reduction of MTN seems to have influenced investors’ sentiment as the share price of the South African company went up by almost 3 percent on Monday.

Data sourced from the Bloomberg terminals showed that the MTN stocks traded at ZAR 8,380 as at the close of the market Friday 5 October 2018 while as at the close of the market yesterday, it appreciated with about 2.6 percent with unit price of ZAR 8,600.

“MTN shares up +2 percent today as CBN hints on possible reduction of $8.1bn repatriation demand, and the stock is currently trading at about 3 percent, amazing how news shape investors’ sentiment,” a market analyst who asked not to be quoted said.

Meanwhile, the Central Bank Governor, Godwin Emefiele, had disclosed on Sunday of a possible cut on the size of the claim which he said is as a result of the new documents provided

by MTN Group Ltd. and the banks involved.

“MTN Group and its bankers have provided more documents that may reduce Nigeria’s $8.1 billion claim on the South African wireless carrier, which could be resolved soon,” Emefiele said in a statement.

Speaking to reporters in London on Sunday, the governor also added that he expects the new information to help cut the size of the claim and that the matter would be resolved “amicably.”

“I do not think it will be at $8.1 billion having provided documents,” Emefiele said, adding his staff is stud-

ying the documents and he hoped to make a decision on the matter in a “couple of weeks.”

MTN had sought an injunction in early September to fight the claim in its biggest market, which wiped as much as 36 percent off its market value within two weeks, as compiled from Bloomberg terminals.

Meanwhile, a court document seen by BusinessDay revealed the Central Bank of Nigeria’s counter affidavit position on the injunction and its plans to credit the telecom giant in local currency upon its payment in foreign currency.

“A refund of the foreign currencies purchased by the telecom company will result in MTN being credited with the Naira equivalent of the foreign currency,” the CBN said through its Lawyer,” the apex bank said in the document.

L-R: Sade Morgan, legal, public affairs and communications director; George Polymenakos, managing director, Nigerian Bottling Company (NBC); Moji Adeyeye, director general, National Agency for Foods & Drug Administration and Control (NAFDAC); Bhupendra Suri, managing director, Coca-Cola Nigeria, and Amaka Onyemelukwe, public affairs and communications manager, CocaCola Nigeria, during a routine visit by NAFDAC team to NBC Ikeja Plant in Lagos.

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APC ratification, reward for Buhari’s good performance - Group AKINREMI FEYISIPO, Ibadan

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pro-Buhari campaign group, Re-elect Buhari Movement (RBM), has described the ratification of President Muhammadu Buhari’s candidature by the All Progressives Congress (APC) for the 2019 presidential election as a reward for good performance in the last three years in office.

The group, in a congratulatory message by its Convener, Emmanuel Umohinyang, expressed confidence that President Buhari will roundly defeat the former VicePresident, Atiku Abubakar in the coming poll.

According to the group, the President has lived up to his billing in the delivery of the three cardinal programmes he promised Nigerians in 2015.

The statement reads: “First, we must thank God that the ratification has been done and we appreciate the APC for giving Nigerians yet another opportunity to re-elect

Buhari

Buhari in 2019.

“On the cardinal programmes he promised, he has performed excellently and it is only proper that a man that has done well should be rewarded.”

According to the group, “The President came on board with

an unblemished record of public service, and he has justified the confidence that some of us reposed in him in 2015, that he would better his past record. We are happy he did not disappoint. We want to assure Nigerians again that since he did not disappoint in his first four

‘Nigeria needs a competent leader’ ANIEFIOK UDONQUAK, Uyo

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igeria needs a competent leader that would be seen to be above board in the governance of the country, Etim Ukpong, chairman of the Nigerian Union of Teachers in Akwa Ibom State, has said.

Ukpong, who made the assertion while fielding questions from newsmen on the 2018 World Teacher Day celebration, stressed that only a president with such leadership qualities would be able to solve the country’s numerous problems.

He pointed out that a country as large as Nigeria requires a president who is seen to have the skills in running a complex society and be able to grow its economy.

He recalled that the setback the Ni-

gerian educational sector suffered in the past years in terms of classroom performance and development of infrastructure especially in public schools was as a result of the leadership that was in place then.

According to him, “Nigeria is a big country; so anybody who should lead a country like Nigeria should be above board. He should have integrity and the ability to lead. Such a person must not attach importance to a section of the country, and to his immediate family. The president should be a person who is Nigerian in and out; somebody who understands the problems of every sector of the economy.

“A Nigerian president should be somebody who loves the development of the society. And the teacher is at the centre of the development of the society. There was a time school

was at the forefront of attention of Nigeria government and the only instrument for the measurement of the progress of our society.

“But there was a time too that all that collapsed, and education was no longer the priority of government, the teacher was pushed to the background; salaries were owed for months and nobody was talking about building infrastructure and equipping laboratories in schools.”

Ukpong noted however, that “it was not the fault of the teacher; it was as a result of the quality of leadership that we had, and the response of Nigerian society to that quality of leadership. But let me say in recent days that there have been deliberate efforts by some state governments across Nigeria to bring back the social prestige of the teacher; Akwa Ibom is an example and we are grateful.”

years, he will not now; rather he we continue to move Nigeria forward.

“Among the twelve aspirants that jostled for the Presidential ticket of the PDP, we do not think any can match the current President in a free and fair election, and the good thing about the twelve is that they have been in public service and their antecedents are well known.

“The propaganda that their party has been rebranded is not true. PDP, we have always said, can never change. They are used to corruption. It is in their DNA. “What therefore is before us in 2019 is not a contest between President Buhari, and former Vice President Atiku. It is a contest between darkness and light.

“It will be funny if the PDP thinks that having come out of Egypt; we are willing to go back. Never!

We have seen the sixteen years, of PDP, which Atiku was a part of, and we have seen over three years of President Buhari’s administration. Atiku’s emergence has even made the job easier for President Buhari in 2019.

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I am going to unseat Kolawole at the State Assembly – Babaeko

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abaeko, a candidate on the platform of Unity Party of Nigeria (UPN) for Kabba Bunu House of Assembly has vowed to unseat the incumbent Speaker, Matthew Kolawole in the 2019 state Assembly election.

Speaking after the affirmation of his candidacy in Kabba, headquarters of Kabba/Bunu council area, “The present quagmire, underdevelopment and poverty level in Kabba/Bunu constituency has reached a breaking point; this is the driving force behind my passion to serve the people of Kabba/ Bunu constituency better. With the Unity Party of Nigeria (UPN), a party that considers the people first with egalitarianism, as its ideology, I am more favoured to defeat the Speaker of the Kogi State House of Assembly at the poll”.

Babaeko also hinted that the Speaker has done nothing meaningful to deserve a re-election. He said: “The voice of the good people of Kabba/Bunu constituency is the voice of God.”

Drama as agents of APC guber aspirants prevent announcement of results in Kwara gents of governorship aspirants of the All Progressives Congress (APC) in Ilorin, Sunday night disallowed the Governorship Primary Election Panel from announcing the results on the ground that it has been manipulated to favour a particular aspirant.

The panel has invited journalists to the collation centre at Savanah Hotel to announce the outcome of the primaries.

Iyiola Oladokun, chairman of the Election Panel and former Deputy Governor in Oyo State, was about to commence the announcement of the result at about 11.15pm when one of the aspirants’ agents, Abdul Baki, representing

Shuaib Oba Abdulraheem raised an objection.

Baki wanted to know from the chairman of the panel when and where the collation of the results from the 197 wards were done.

He said himself and other aspirants’ agents have been around the collation centre since Saturday evening without any knowledge of where the collations were done.

Baki added that when they were called into the hall, the impression of all the agents was that the collation was about to start, adding that it was strange to learn that the panel wanted to announce results.

He stood up as Oladokun was about to announce the House of Assembly election and told him that the agents of the aspirants came for the collation of the result.

The campaign office said that to set the record straight, however, Nigerians needed to be reminded that PDP’s primaries were genuine, free and fair.

“Atiku Abubakar got 1,532 votes in a contest televised live to millions of Nigerians. The All Progressives Congress’ primary, on the other hand, was a study in dictatorship and corruption. The sole candidate, Muhammadu Buhari, scored almost 15 million votes. How could that occur without rigging or manufacturing of faceless voters?

“No wonder Transparency International rated Nigeria as more corrupt today under Buhari, than just three years ago when the PDP was in power. The scandals are too numer-

ous, including the $25 billion NNPC contracts awarded without due process, the several padded budgets, the $41 million Ikoyi Apartment scandal, the recall, reinstatement and double promotion of pension thief and Buhari financier, Abdulrasheed Maina, the N200 million grasscutter scandal, and many others too numerous to mention.

“The choice before Nigerians in 2019 is a simple one. Nigerians have a choice of electing a lively candidate with a record of providing 50,000 jobs to Nigerians in his private capacity versus the lifelessness (apologies to President Donald Trump) of a candidate under whom Nigeria lost 11 million jobs and became the world headquarters for extreme poverty.

SIKIRAT SHEHU, Ilorin

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‘We are not surprised by the confusion in Buhari campaign team’

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he Atiku Abubakar Presidential Campaign Office has reacted to statement credited to the Buhari Campaign Organisation, which it claimed “cast aspersions” on the emergence of Abubakar as the presidential candidate of the People’s Democratic Party (PDP).

It also said it did not take lightly the allegation that his emergence was the result of money politics.

“We are not surprised that there is confusion in the President’s camp.

We expected that they would be thrown into a catatonic state knowing that HE Atiku Abubabakr’s emergence automatically means the coming end of their ignominious reign. That much was admitted

by the President’s former running mate, Pastor Tunde Bakare when he praised the emergence of HE Atiku as an ‘Eagle’ and ‘a cosmopolitan wazobia’ politician. Obviously, Pastor Tunde Bakare has foreseen that the era of 97 percent versus 5percent has come to an end with the emergence of the pan-Nigerian Atiku Abubakar,” the Campaign Office said, yesterday.

It further stated: “We ask, how can the Buhari Campaign Organisation disparage the PDP primary that produced His Excellency, Atiku Abubakar, when even the President’s own wife, Aisha Buhari, has condemned the APC’s primary? Not only did Mrs. Buhari condemn APC’s primaries, she described them as ‘unfair’ and lacking in integrity. Who can know

President Buhari better than his wife?

“Eleven aspirants contested against His Excellency, Atiku Abubakar, during the Presidential primary of the PDP. Every single one of them accepted his victory. President Buhari was the only candidate cleared by the APC to contest its primary.

Yet, a coalition of five aspirants is challenging his victory. That alone tells Nigerians his emergence is fraudulent.

“Nigerians know that Atiku Abubakar is the most investigated politician in Nigeria and any smear by the Buhari administration remains just that. With the vindictiveness of President Buhari, he would have arrested HE Abubakar if he had been found wanting.”

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FINANCIAL TIMES Global rise of scooter use sparks safety fears

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IMF: The fight to woo a sceptical US over funding

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World Business Newspaper

Economics Nobel recognises work on climate change and innovation William Nordhaus and Paul Romer showed how to achieve sustained and sustainable growth DELPHINE STRAUSS

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S economists William Nordhaus and Paul Romer have jointly won this year’s Nobel Prize in Economic Sciences for their work on climate change and technological innovation.

The Nobel committee said the pair had “brought us considerably closer to answering the question of how we can achieve sustained and sustainable economic growth”, by developing models that explain how the market economy interacts with nature and knowledge.

Mr Nordhaus, a professor at Yale, won recognition for his work integrating climate change into long-run macroeconomic analysis.

He began working on the concept of “green accounting” in the 1970s and was the first to create a quantitative model describing the global interplay between the economy and climate.

Paul Romer, a professor at New York University’s Stern School of Business — and former chief economist at the World Bank — has been recognised for work that laid the foundations of endogenous growth theory.

One of his first big contributions was to show that ideas could be as important in driving economic growth as the traditional inputs of labour, skills and physical capital — and that this could help explain the big variation in growth and living standards between otherwise similar countries.

“These are two highly relevant picks,” Tyler Cowen, an economics professor at George Mason University, wrote on his blog.

“Think of Romer as having outlined the logic behind how ideas leverage productivity into ongoing spurts of growth, as . . . in

Silicon Valley. Think of Nordhaus as explaining how economic growth interacts with the value of the environment.”The Nobel committee’s choice of a pioneer of environmental economics coincides with a warning from the UN’s Intergovernmental Panel on Climate Change, which said on Monday that the world was set to warm by 3C by the end of the century — a level that would disrupt life around the planet — and that “unprecedented” change would be needed to limit the increase.

Professor Romer, acknowledging the prize, said the message drawn from the awards should be that “it is entirely do-able even now to start bringing down the path of emissions”, and “entirely possible for us to have better standards of living as far into the future as we can see”. The danger of alarmist warnings was that they would make people “feel apathetic and hopeless”, he added.

The committee underlined that the work of both economists had had a big impact on policymaking. It showed that market imperfections could lead to spillover effects that justified government intervention.

Professor Nordhaus was an early advocate of carbon taxes, but the committee noted that the models he developed also allowed policymakers to calculate paths for the best ones, showing how they would depend on assumptions about climate sensitivity to carbon emissions or the extent of damage caused by climate change.

Prof Romer’s analysis showed that policy interventions such as subsidies for research and innovation, or regulation of patents, can be vital to encourage actors in a market economy to produce the ideas needed to drive long-run growth.

China slams Trump’s ‘misguided actions’ during Pompeo visit Sharp exchange with foreign minister Wang Yi overshadows talks on North Korea LUCY HORNBY AND SONG JUNG-A

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hina has demanded that the US halt its “misguided actions” in a testy exchange between foreign minister Wang

Yi and US secretary of state Mike Pompeo that has highlighted how rising trade tensions could undermine co-operation on issues such as North Korea.

Continues on page A6

Tthe Nobel Prize in Economics has been awarded to William Nordhaus and Paul Romer for work on climate change and technological innovation © Reuters

Nigeria’s fuel subsidies bill set to soar on rising oil price Fragile economy in peril as lack of refining capacity negates benefit of pricier crude NEIL MUNSHI

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ising crude oil prices are set to send Nigeria’s bill for fuel subsidies rocketing, threatening to exacerbate the already precarious economic situation of Africa’s largest oil producer as it heads into election season.

Although Nigeria produces 1.7m barrels of crude per day, it has very little refining capacity and imports roughly 90 per cent of its fuel, negating much of the benefits oilproducing nations accrue from high crude prices.

When crude prices plunged to about $30 a barrel in 2016, it sent Nigeria’s oil-dependent economy reeling into a recession from which it has barely recovered. While a rally has since pushed the oil price past $85, Africa’s most populous country is not set to reap the benefits. This is because its subsidy bill is likely to surge beyond the $3.85bn annual tally the oil minister estimated earlier this year when prices were 20 per cent lower, said Tunde Ajileye, a partner at SBM Intel, a political and

economic risk consultancy.

“We sit on a double-edged sword: when oil prices go down, government revenues go down and it becomes difficult to get foreign exchange,” he said. “When oil prices go up, while there is usually an increase in government revenues . . . the big issue is that for refined products like fuel and diesel, the prices go up and [then] . . . the subsidy bill goes up.”

In April, when crude averaged about $70 a barrel, Emmanuel Kachikwu, the oil minister, reportedly said the annual fuel subsidy bill had risen to 1.4tn naira ($3.85bn) — that is roughly half the N2.67tn the government collected in net oil revenues in 2017 or a quarter of total net government revenues that year.

That month, the Nigerian National Petroleum Corporation paid roughly $215m in what it calls “under-recovery” costs: the difference between what it paid to import fuel and how much it sells the fuel for. In May, when Brent crude prices averaged about $77, NNPC paid $245m to fill the gap.

With oil prices now 10 per cent higher and climbing, that bill is set to soar, creating a predicament for the government ahead of February’s elections, said Mr Ajileye. The outlay is unsustainable, he said.

“The government has to make a decision of whether to increase fuel prices domestically,” he said. “That’s a very politically charged issue.”

The last time a government in Nigeria tried to scrap the subsidy altogether, in 2013, it prompted widespread protests.

Nigeria has the potential to produce more than 2.5m barrels a day. But it rarely reaches that level because of poor infrastructure, theft and pipeline sabotage driven by unrest in the oil-rich Niger Delta region. State-run refineries operate at less than 10 per cent of their 445,000 barrel-a-day capacity. The government then sells the fuel to retailers, which sell on to the public at the subsidised rate of N145 a litre.

Crude accounts for 56 per cent of government revenues, while the country’s annual fuel import bill tops $7bn.

South African president under pressure to sack finance minister Nhlanhla Nene admits he failed to disclose private meetings with Gupta family JOSEPH COTTERILL

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outh African president Cyril Ramaphosa is under growing pressure to remove his finance minister, Nhlanhla Nene, for failing to disclose meetings with the business family at the centre of the country’s biggest post-apartheid scandal.

Mr Nene apologised last week for holding private discussions with the Guptas, friends of former president Jacob Zuma, at the peak of their alleged influence on state contracts.

Mr Nene begged for South Africans’ forgiveness over what he described as “poor judgment”. He said he should have revealed sooner that he met the Gupta family between 2010 and 2014, when he was deputy finance minister and then head of the Treasury.

Opposition parties have demanded a speedy decision from Mr Ramaphosa over the finance minister’s fate.

Mr Ramaphosa took over Mr Zuma’s

corruption-hit presidency this year with a promise to show zero tolerance for impropriety in government and the ruling African National Congress.

David Maynier, the main opposition Democratic Alliance’s finance spokesperson, said: “We simply cannot afford the uncertainty that would surround what would effectively be a ‘lame duck’ finance minister who may, or may not, have the full support of the president.”

Mr Nene is also facing accusations that South Africa’s Public Investment Corporation, which manages the state employees’ pension fund, gave improper support to his son over a business deal when he was its chairman. He has denied wrongdoing and has welcomed an investigation of the claims.

The scandal over Mr Nene threatens more instability for public finances just two weeks before a crucial statement on the medium-term budget. A legacy of misrule under Mr Zuma and

stagnation in the economy has left South Africa’s Treasury struggling to plug a shortfall in revenue.

Mr Nene’s fall from grace is even more embarrassing for Mr Ramaphosa’s reform efforts because he has been widely praised for resisting Mr Zuma’s demands to approve state contracts that allegedly would have benefited the Guptas.

Last week Mr Nene told a judicial inquiry examining the alleged “capture” of state institutions that his refusal triggered his firing by Mr Zuma in 2015.

The Treasury is battling to avoid losing the country’s last investmentgrade credit rating, at Moody’s, which will decide later this month whether to retain it.

Other rating agencies downgraded South Africa to junk status last year, citing the turmoil in the ANC under Mr Zuma and sluggish economic growth.

If Mr Nene resigns, his successor will be South Africa’s seventh change of finance minister in four years.

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FT China slams Trump’s ‘misguided actions’

TV tax stirs Zambian fears over Chinese ‘debt-trap’ diplomacy

Continued from page A5 Mr Pompeo arrived in Beijing on Monday after a visit to Pyongyang, where he held “productive and wonderful” talks with North Korean leader Kim Jong Un, according to official North Korean news agency KCNA. But just days after a stinging speech by Mike Pence, in which the vice-president accused China of meddling in the US’s midterm elections, Mr Wang chastised Washington for “constantly ramping up” the trade disputes, “hurting China’s interest” in Taiwan and finding fault with China’s domestic and external affairs “without reason.”

“We demand the US stop such misguided actions,” he said, and pointedly reminded Mr Pompeo that China was key to any agreement with North Korea. “Two major powers and permanent members of the UN Security Council need to and should increase communication and co-operation, taking on responsibilities in international society,” he said.

Mr Pompeo responded that there was a “fundamental disagreement” with China on the issues Mr Wang had raised.

“I regret that the strategic dialogue between our two counties was something that you all chose not to undertake,” he told Mr Wang ahead of their meeting at Diaoyutai, China’s state guesthouse.

A whirlwind of top-level diplomacy is expected involving North Korea in the coming months.

Mr Pompeo said Mr Kim had agreed to arrange a second summit with US President Donald Trump “as soon as possible”. He added that North Korea was willing to allow international inspectors to assess the country’s steps towards denuclearisation, although he cautioned that discussions were preliminary.

Russia has invited Mr Kim to make a state visit to the country but no specific details have been agreed, the Kremlin said.

“The invitation is with the North Korean leader. When the details of such a trip are agreed through diplomatic channels, we will make the appropriate announcement,” said Dmitry Peskov, president Vladimir Putin’s spokesman.

Chinese President Xi Jinping is also expected to travel to Pyongyang, according to South Korean president Moon Jae-in, who added that a summit between North Korea and Japan was also a possible.

But the rapidly opening divide between the US and China threatens to overshadow any progress, according to analysts.

“The strategic competition between US and China has become more and more intense and it has also become the geopolitical issue that concerns China the most,” said Zhao Tong, of the CarnegieTsinghua Center for Global Policy in Beijing. “Under these circumstances, the core goal of Chinese diplomacy inevitably shifts to securing an advantage position in the competition with the US.”

Tuesday 09 October 2018

Loan to state broadcaster ZNBC sparks controversy over Beijing’s growing financial clout JOSEPH COTTERILL AND DAVID PILLING

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Over to you: President Akufo-Addo aired his ideas for an aidless future when hosting (left) France’s President Emmanuel Macron © AFP

Ghana’s grand vision of a life beyond foreign aid President Nana Akufo-Addo has made big promises, though the obstacles loom large DAVID PILLING

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he idea of a Ghana that aspires to life “beyond aid” began to resonate internationally last December, when Nana Akufo-Addo, the country’s grandiloquent president, stole the limelight at a joint press conference with the visiting French president, Emmanuel Macron.

A local journalist had asked what Paris proposed to do for Africa. After the French president’s reply, Mr Akufo-Addo cleared his throat and began a 10-minute discourse in his plummy tones.

Elected at the end of 2016 on his third attempt, the 74-year-old leader of the centre-right New Patriotic party (NPP) began: “It is not right for a country like Ghana, 60 years after independence, to still have its health and education budgets being financed on the basis of the generosity and charity of the European taxpayer. By now we should be able to finance our basic needs ourselves.”

A nation, he said, should chart its own development path and not allow priorities to be set by donors.

Although Ghana receives less aid than many poorer countries, it is still

supported by bilateral donations from the likes of the EU, France and Denmark. Other organisations are also involved, like the Millennium Challenge Corporation, the US aid agency, which is pumping $498m into Ghana’s electricity sector. The Bill & Melinda Gates Foundation supports agriculture and health programmes.

Noting that South Korea, Malaysia and Singapore had set out from a similar point, the president asked: “What happened? Why did they make that transition . . . Why are we where we are?

We need to have a mindset that says, ‘Others have done it. We can do it.’”

By regional standards, Ghana has done modestly well. It has been robustly democratic since 1993 when the state’s military went back — apparently decisively — to barracks.

Ghana counts as a lower middleincome country, according to the World Bank. And though it has now discovered oil, it has a far more diversified economy — with gold, cocoa and tourism to the fore — than Nigeria, the regional behemoth.

These achievements are not to be sniffed at. Nor should they be exaggerated. By most standards, Ghana is still locked in low value-added, extractive

patterns of capitalism. Between them, Ghana and neighbouring Ivory Coast control about 60 per cent of the global raw cocoa market, yet both continue to be price takers, competing for what the finance ministry estimates is just $6bn of a $140bn chocolate market dominated by multinationals.

In purchasing power parity terms, Ghana has a per capita income of $4,600, according to the International Monetary Fund. That compares with $39,000 in South Korea.

Ken Ofori-Atta, finance minister, says this is not good enough. A former investment banker, he aspires to Ghana having a “strong middle class” in some 10-15 years — and a society that “ensures the good life, the Aristotelian life for every individual”.

The administration has much to prove if that vision is to gain credibility.

Charles Adu Boahen, deputy finance minister and one of several members of the government drawn from the private sector, argues that rhetoric has its place. “The ‘Ghana beyond aid’ mantra is a way of instilling that sense of responsibility and aspirational drive in the Ghanaian people,” he says.

African nations’ borrowing costs hit post write-off high External debt payments at highest level since 2001 as capital market activity grows KATE ALLEN

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frican countries are paying the highest average borrowing costs since a mass debt relief campaign wiped out a large chunk of what they owed, as a result of a surge of fresh capitalraising in recent years.

Payments on external debt — borrowings owed to lenders outside the country — hit an average of 12 per cent of African governments’ revenues in 2017, according to research by financial pressure group the Jubilee Debt Campaign, the highest level since 2001.

Increases in borrowings, falling commodity prices from mid-2014 and the strengthening dollar have all fuelled the increase, according to the researchers.

By contrast, developed nations’ external debt cost averages 9.6 per cent of their government revenues, the campaign estimated.

The campaign looked at both interest payments and the repayments of debt principal, using data from the World Bank, the IMF and the China-Africa Research Initiative at Johns Hopkins University.

Tim Jones, a policy officer at the Jubilee Debt Campaign, said: “Debt problems are worsening on the African continent.”

He called for greater transparency in African nations’ financing deals, saying that “we need new rules to make all lenders publicly disclose loans to governments at the time they are given”.

“The IMF needs to stop responding to debt crises by giving loans which bail out other lenders, from China to western companies, incentivising them to continue lending recklessly,” he added. “Instead, lenders need to be made to restructure and reduce debts.”

The Heavily Indebted Poor Countries Initiative, launched in 1996 by the World Bank and the IMF, aimed to ensure that no developing country was left with a debt burden it could not manage.

Since then, 36 countries — the vast majority of them in Africa — have been relieved of $99bn in debt.

Credit rating agency Standard & Poor’s said earlier this year that the debt forgiveness initiative had

“failed to permanently reduce debt service burdens”.

African countries have stepped up their borrowings via both bonds and loans in recent years.

The IMF warned earlier this year that the world’s poorest countries were increasing their borrowing at a worrying pace and faced the mounting risk of debt crises.

Since 2013, the median ratio of public debt to gross domestic product in low-income countries has risen 13 percentage points to hit 47 per cent in 2017, IMF researchers found.

The heaviest cost for African countries comes from private lenders, the Jubilee Debt Campaign found. Nearly a third of African governments’ debt is owed to private creditors, but they account for 55 per cent of interest payments.

By contrast China — which has received a great deal of attention for its financial dealings in the continent — is owed about 20 per cent of African nations’ external government debt, and receives just 17 per cent of interest payments, the researchers estimate.

ichael Muntemba says there is something odd about the levy he has to pay to watch state television in Zambia. “I’ve heard the rumours,” the clothes seller said in hushed tones.

He pays less than a dollar a month in tax meant to support the Zambia National Broadcasting Corporation.

But the payment lies at the heart of accusations that Zambia has given up its sovereignty in return for $9.4bn of debt, up to one-third of it owed to China.

Mr Muntemba’s suspicion, widely shared in Zambia, is that part of his K10 ($0.86) TV levy, which has more than doubled in a year, is being used to service a $273m loan taken by ZNBC, the state broadcaster, from China’s Exim Bank.

The loan’s terms are opaque, but as alarm grows in Africa over Chinese “debt trap” diplomacy, the lack of transparency has put the Zambian government on the defensive amid rumours that public assets have been placed in hock to Beijing.

“Borrowing is OK if you know where the money goes,” said Mr Muntemba. “But the government is not borrowing safely.”

China has been ratcheting up its involvement in Africa for the past two decades and, more recently, has become a crucial lender to several African countries, including Angola, Ethiopia, Kenya — and copper-rich Zambia.

While many African leaders have welcomed Beijing’s help, particularly in building infrastructure, there has been growing disquiet among civil society groups, which say Chinese loans come with strings attached, and finance corruption by local political leaders.

Trade ties that involve China sending equipment and manufactured goods in return for African raw materials have also been compared with patterns prevalent during colonialism.

In Zambia, the Exim Bank loan is backing a joint venture called TopStar between ZNBC and StarTimes, a private Beijing-based media group that owns 60 per cent of the new business and wants to use it to roll out a digital TV service. Activists say TopStar is ringfencing public revenue for its own purposes.

Fumba Chama, a popular rapper who goes by the name Pilato and has criticised public borrowing in his lyrics, said: “ZNBC does not have a voice any more. They know it’s embarrassing. They know that they did a stupid deal.”

Zengeni Simuchembu, an officer of the Alliance for Community Action, a local anti-corruption NGO, said: “It is effectively a takeover.”

He added: “When I invest in a company, and I have 60 per cent, and then I actually control the revenue . . . I control how the company will run.”

Zambia’s auditor-general echoed these concerns last year. He noted in a report that the loan backing TopStar had failed to specify what revenue was earmarked for ZNBC as opposed to paying off the debt.

The report added that ZNBC failed to develop its own plan to repay the loan, the first interest instalment of which was missed when it came due last July.

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FINANCIAL TIMES

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@ FINANCIAL TIMES LIMITED

Global rise of scooter use sparks safety fears Start-ups race to improve machine features amid increase in legal cases TIM BRADSHAW

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he scooter’s vertical steering post snapped from its motorised base, sending its rider flying headfirst on to the asphalt.

At first, Mr Flax was angry that the scooter, which he estimates had been travelling at around 10mph, had cut into his lane on a blind corner of the Marina del Rey bike path. Then he saw the rider was lying motionless with a gash on his forehead.

“It was terrifying,” said Mr Flax.

“It was a really scary thing to see that young man lying on the pavement, not really responsive, with an obvious head injury.”

A doctor who happened to be cycling past provided first aid to the Bird rider — who was not wearing a helmet — and soon an ambulance arrived to take him to hospital. Mr Flax, who as a journalist and editor has written extensively about cycling, escaped without a scratch.

He does not know what became of the scooter rider, but the incident left him shocked and disturbed about the safety of the popular light electric vehicles.

“The way in which I saw that scooter implode makes me concerned about how they behave in a crash,” said Mr Flax, who first detailed the incident on his Twitter feed. “I love the scooters and I’m always on social media defending them, so I was disappointed to see how it failed. If I had been going 5 to 10mph faster, that guy could have gotten killed.”

Sharp increase in accidents could put the brakes on expansion LA-based Bird and its Silicon Valley rival Lime have deposited

thousands of escooters, which can be rented for just a few dollars using a smartphone app, across more than 100 cities in multiple countries since they launched just a year ago. Now several other companies — including ride-hailing services Uber and Lyft — are joining the scooter race too.

But stories like Mr Flax’s are becoming more common as scooter usage rises. Last month, two riders of Lime scooters died in accidents in Dallas and Washington DC. At least one of those fatalities was caused by the scooter colliding with a car, and investigators looking at the deaths have not reported any scooter malfunction in either incident.

An uptick in injuries or deaths could force scooter companies to put the brakes on their expansion to improve safety. That threatens to undermine the rapid growth upon which their billion-dollar valuations depend.

Both scooter companies and safety campaigners agree that cars — especially with drivers who might be under the influence of alcohol or drugs, or distracted by their smartphone — present the biggest risk to riders.

But personal injury lawyers are reporting a sharp increase in cases from scooter riders who blame the manufacturers for their accidents.

“We are getting called every day by people injured on these scooters,” said Catherine Lerer, an attorney at McGee, Lerer & Associates, a firm based in Santa Monica, where Bird first started last September.

“The majority of the callers are riders who are injured when the scooter malfunctions. These things are not properly maintained and not properly inspected.”

Brazilian assets leap after Bolsonaro wins first round vote PAN KWAN YUK

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he Brazilian real is rallying hard on Monday, jumping by the most in four months after far-right presidential candidate and market favourite Jair Bolsonaro took a commanding lead in Sunday’s first round votes.

The currency shot up as much as 3.3 per cent — the most since June — to hit a two-month high of R$3.7122.

The Bovespa stock index leapt more than 6 per cent within minutes of opening trade to a seven-and-a-half month high of 87,333 on Monday.

The moves buck the wider sell-off in emerging market currencies and stocks on Monday. Mr Bolsonaro won Sunday’s first round of elections with 46 per cent of votes compared with 29 per cent for his main rival, Fernando Haddad of the leftist Workers’ party (PT).

Mr Bolsonaro’s disparaging remarks about gays and blacks and emphasis on security and conservative values have prompted some to call him a “Tropical Trump”. Nonetheless investors have thrown their support behind the populist, seeing him as their best chance for avoiding a return to the PT party, whose economic policies over the past decade have been blamed for pushing the country into its worst recession on record.

Mr Bolsonaro’s choice of Paulo Guedes, a Chicago-trained financier,

as his economic adviser has further helped shore up support from the markets.

“Bolsonaro’s economic platform is very market friendly — his manifesto includes pension reform, full independence for the central bank, privatisations and a reduction in the size of the state,” said William Jackson, chief emerging markets economist at Capital Economics. “The PT platform, in contrast, pledged to suspend privatisation, roll back labour reform and change the central bank’s mandate to include targeting employment.”

Including today’s gains, the real has rallied more than 11 per cent since mid-September. Analysts said that while Brazilian assets could continue to bounce, especially Mr Bolsonaro if wins the second round on October 28, the key issue for investors is whether the new president has the political will and support to push through desperately needed fiscal reforms.

“Although markets could rally in the short term as the leftwing victory tail risk dissipates, the sustainability of the rally is highly dependent upon the likelihood of meaningful fiscal reform next year, and uncertainties remain on that front,” said Joao Pedro Ribeiro, an analyst at Nomura.

The view was echoed by Mr Jackson from Capital Economics, who said his focus in the coming weeks will be on Mr Bolsonaro’s ability to build a working coalition in Congress.

Cyclist Peter Flax was rounding a corner on his daily Los Angeles commute when a man on a Bird electric scooter rode straight into his handlebars.

The fintech ‘genius’ accused in $165m fraud

SEC says WB21’s ‘solution’ was designed to disguise clients’ identities KADHIM SHUBBER

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hortly after the UK voted to leave the EU in 2016, a curious little start-up made headlines. WB21, which claimed to be a fintech company, announced it was upping sticks from London to Berlin. Its chief executive, Michael Gastauer, declared that the legal uncertainty of Brexit had driven his business to Germany.

Last Wednesday, the US Securities and Exchange Commission unveiled a civil lawsuit against Mr Gastauer, accusing him of aiding and abetting the fraudulent sale of $165m worth of shares in microcap stocks. WB21 was not an innovative new bank, claimed the SEC, it was a vehicle for a massive fraud.

The story of Mr Gastauer is not just about alleged wrongdoing in the financial markets; it shows how an accused fraudster might sell himself and his fantastical story using the modern tools of the internet age.

The lawsuit filed against Mr Gastauer last week is only the latest trouble for the 43-year-old German citizen. In 2010, he was given an 18-month suspended sentence by a

court in Switzerland for commercial fraud and counterfeiting. Around the same time, a British gambling company sued him in London for allegedly taking millions of pounds from it. He had set up a payments processor, the company claimed, but kept the payments. In 2011, the High Court ruled against Mr Gastauer.

Neither incident prevented Mr Gastauer from bouncing back into polite society. In September 2016, The Wall Street Journal published his claim that he was moving WB21’s European headquarters from London to Berlin.

Soon after, Mr Gastauer made a splash in Germany. Hans Recker, the former Bundesbank board member, spoke at WB21’s launch event in Berlin. Weber Shandwick, the press relations firm, helped sell Mr Gastauer to German media.

These mainstream marketing efforts were underpinned by an online identity that relied on communitycreated posts in publications like Huffington Post, Business Insider and Forbes. One author of an effusive piece on Mr Gastauer, when asked by the Financial Times why it was identical to a post on a different site, said: “Client send you the same article

which is sending me.” He said he had a flat-rate fee for all clients: $100.

But it is on social media where Mr Gastauer’s marketing prowess truly shone. He has a verified account on Instagram and 1.2m followers. His bio: “Entrepreneur, Investor, Genius.”

On YouTube, WB21 has posted slickly created videos of an hitherto unheard of event in Frankfurt called “Banker Award 2018”, which he apparently won. On Twitter, where he is also verified and has over 210,000 followers, he posted a picture of his acceptance speech: “A banking tycoon explains the world [sic] how he build his empire”.

According to the SEC, there is no banking empire. Mr Gastauer has touted WB21 as a high-flying startup with millions of customers and a novel, but only vaguely described, technology that allowed it to make international money transfers more quickly and cheaply than the old, establishment banks.

“In reality, WB21 Group was not a registered bank, and Gastauer’s ‘solution’ was actually a circumvention of banking regulations designed to disguise his clients’ [ . . .] identities,” the SEC said in a civil lawsuit filed in Boston.

Credit Direct Limited celebrates customer service week ...impacts communities through health and education support schemes

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igeria’s leading micro-finance institution, Credit Direct Limited joined the global community to mark the “customer service week” from the 1st to 5th October, 2018 as the company impacted several communities across the country through several initiatives designed to celebrate the customer.

Drawing from the theme of this year’s celebration “excellence happens here” the company provided free health checks and drugs to over 2,000 beneficiaries in 5 States. These free health services were provided simultaneously to teachers in public primary and secondary schools in Abuja, Lagos, Kaduna, Port Harcourt and Kwara States where health professionals provided free consultation, free tests, free drugs, eye glasses and crutches.

While celebrating their customers, Credit Direct Limited also executed different projects aimed at improving the educational sector ranging from the painting of public schools, construction of bus terminals for schools to rehabilitating dilapidated restrooms, equipping laboratories and libraries as well as providing writing

materials to students and generators for small businesses. Over 124, 560 students in 10 states benefited from these projects.

The company further trained 100 civil servants on “entrepreneurial skills and financial management”.

The idea behind these initiatives is to actively show commitment to the welfare of customers by giving back in such a way as to develop their abilities to create wealth while also making their work environment more conducive for them.

To round off the customer service week, the managing director, Credit Direct Limited, Akinwande Ademosu, also made phone calls to several customers of the company to personally appreciate their patronage over the years.

Speaking with staff of the company to mark the occasion, Ademosu also stressed the importance of sustained excellent customer service as the purpose of the annual celebration.

He said “We are glad to enjoy another year with our numerous customers across the country and have decided to give back in celebration of their loyal patronage. Internally, we are

proud of our staff and the quality service they render to our customers - this is why we are here”.

The Credit Direct brand also celebrated its staff as it gave out prizes and organized several events including a costume day where staff dressed in attires representing their favourite alternative professions.

Themed ‘excellence happens here’, the customer service week recognizes the space where customers and service professionals come together: From the call centre to the executive suite, from the loading dock to the home office, from behind the wheel to the front of a monitor.

Credit Direct Limited currently operates in 25 states in Nigeria including the Federal Capital Territory Abuja, with a staff strength of over 1000 employees and an active customer base in excess of 300,000. In its 11 years of operation, the company has been the dominant market leader in the unsecured micro-lending (payroll lending) space in Nigeria and indeed Sub-Saharan Africa. Having disbursed over $500Million to over 1million customers, surely excellence happens here.

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ANALYSIS Italy’s Salvini attacks Brussels as bonds sell off

Deputy PM hits out at investors and EU rules as borrowing costs hit 4-year high MILES JOHNSON AND FEDERICA COCCO

M IMF: The fight to woo a sceptical US over funding

Populism, a trade war and a cynical White House are making life hard for the fund as it seeks new capital

JAMES POLITI AND SAM FLEMING

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t a smart hotel in midtown Manhattan in late September, Christine Lagarde, the head of the IMF, and Steven Mnuchin, US president Donald Trump’s Treasury secretary, traded compliments and accolades during a charity event.

Mr Mnuchin offered a ringing endorsement of Ms Lagarde’s leadership of the fund, which has now lasted for more than seven years, as he delivered the main speech in support of a foundation led by Arthur Schneier, an octogenarian New York rabbi. Ms Lagarde reciprocated, saying she had developed an “extraordinary relationship” with Mr Mnuchin in the past 17 months — with top Wall Street executives, from Stephen Schwarzman of Blackstone to Brian Moynihan of Bank of America, looking on.

There was a concrete reason to believe the bonhomie was genuine. In recent months, the US has supported the biggest IMF loan in history, a $50bn aid package for Argentina to try to stabilise the debtstricken Latin American nation. After the initial effort failed to reassure markets, the total was bumped up to $57bn — on the day of Rabbi Schneier’s dinner — with Washington’s approval.

The question being asked within the fund now, however, is whether the Trump administration’s enthusiasm for IMF lending to Argentina will translate into a deeper commitment that ultimately sees more American taxpayer dollars committed to the institution.

Chart about where the IMF gets its money The IMF is set to embark on a major fundraising drive of its own, to shore up its finances — a big challenge for a symbol of global economic orthodoxy in an era of rising populism, and amid conflict between the world’s biggest powers.

Some of the early groundwork will be laid in Bali, Indonesia, where the fund is holding its annual meetings alongside the World Bank this week.

Despite Mr Mnuchin’s warm words, there is no guarantee that the Trump administration — which has emphatically stated its scepticism of multilateralism on everything from trying war criminals to settling trade disputes — will continue with a similar or improved level of funding.

Other countries — including EU members — are waiting for the US to make a first move in order to stake out their own positions. Meanwhile, a developing economic cold war between Washington and Beijing has further complicated the picture, as the two principal players in the global economy assess whether a boost to the IMF is to their benefit — or their detriment. The result is that the success of Ms Lagarde’s campaign is highly uncertain, with potentially profound consequences not only for the fund but for the

global economy.

“The issue of resources is at risk of becoming existential [for the IMF],” says Douglas Rediker, the former US representative on the IMF board and founder of International Capital Strategies, a consultancy based in Washington. “The IMF will not necessarily be capacity constrained in lending in the short term, but could struggle to play the role it has traditionally played, which is to make sure it is a lender of last resort.”

The IMF is a profitmaking institution that does not dispense outright aid but attaches fiscal, monetary and other conditions to its lending — sometimes, as in the case of Greece, controversially — to recuperate its money.

It is not facing an imminent cash crunch. It has about $1tn in resources to tackle any new financial distress around the world. But less than half of that — about $450bn — comes from its permanent “quota”-based resources, which are drawn from countries based on the size of their economy and reflected in weighted representation on the IMF board.

The most influential countries, including the US, China and Germany, have single seats, but others have to share with economically and geographically similar nations.

The rest comes from special borrowing arrangements with individual countries, and pools of countries, which are due to expire between 2019 and 2022. The fund’s coffers would be substantially depleted unless they are renewed. The worry for the fund is that political opposition could thwart or delay those rollovers, so the safest bet would be to replenish the fund’s permanent reserves while times are still good in the global economy.

“As our world becomes increasingly multipolar, but the scope for national policies to respond to crises becomes more constrained, the IMF will be the indispensable institution,” says David Lipton, the IMF’s first deputy managing director.

While the IMF’s arsenal is, and probably will always be, too small to single-handedly tackle massive financial contagion, supporters of the fund say there are many possible scenarios in which it would be essential. If a recession and financial crisis were to hit in the coming years,central bankers may well struggle to find monetary remedies on the scale that they did in the aftermath of the financial crisis, when they pumped liquidity into the system and sharply cut interest rates.

High levels of indebtedness in many advanced economies may mean there is less space for fiscal stimulus. New regulatory regimes around bank rescues are untested and could suffer from weak political support, creating chaos in the markets.

In a statement to the Financial Times, a US Treasury spokesman left the door open to new possible contributions from America to the

IMF. While the “current level” of funding was “more than adequate”, the US believes a “careful evaluation to ensure that the IMF has sufficient funds to fulfil its mission” would be needed as resources start dwindling.

The NAB or new arrangements to borrow, a single pool of money compiled from the contributions of different countries, is the second line of IMF funding after quotas and is set to expire in 2022. The bilateral borrowing agreements end in 2019 but could be extended by another year with the consent of lenders.

The arrangements to borrow a single pool of money, the second line of IMF funding, expire in 2022.

Optimists point to a surprise decision by the Trump administration in April to support a $13bn boost to World Bank resources, in a victory for its president Jim Yong Kim, as a good omen. The World Bank agreed to rein in costs, including staff salaries to garner US support — a model that would likely have to be mirrored in any deal with the IMF. The US has also recently backed IMF interventions in Ukraine and Egypt as well as work on currency surveillance and technical support in the battle against money laundering and terror financing — a sign that it sees value in the IMF beyond the Argentine rescue.

“Shareholders don’t act necessarily too far ahead, because they have their own political constraints. But emerging markets being what they are right now, I think [the new round of funding] is gaining traction,” one senior IMF official says.

Yet protracted US foot-dragging remains a plausible and even likely scenario, especially with no immediate large-scale crisis to deal with.

Signs of trouble in emerging markets and even in advanced economies such as Italy — where the new government is bent on defying EU rules on fiscal discipline, triggering a sell-off in the country’s debt — have not been enough to create a sense of urgency around the issue.

While Mr Mnuchin has praised Ms Lagarde and encouraged the Argentine bailout, there is still scepticism of the IMF among his top lieutenants at the Treasury department, including David Malpass, the undersecretary for international affairs. Adam Lerrick, who was recently appointed to be the US’s temporary representative on the IMF board, has previously called for it to avoid getting embroiled in complex, multiyear programmes.

Even if they were on board, economic and national security hawks at the White House who disdain multilateralism as a loss of sovereignty could be an additional obstacle, not to mention Republican lawmakers on Capitol Hill. The previous IMF quota increase, pushed by the Obama administration — which raised America’s permanent commitment to the fund to about $115bn — finally scraped through Congress in 2016, after a half-decade delay.

atteo Salvini described top EU officials as “enemies of Europe” and accused financial speculators of seeking “the failure” of countries in a broadside that has helped trigger a sell-off that sent Italy’s borrowing costs to new four-year highs.

The European Commission has warned Italy’s government, made up of Mr Salvini’s League party and the anti-establishment Five Star party, that its budget plans for next year will break eurozone spending rules, raising the prospect of a confrontation between Rome and Brussels later this month.

The budget plans, which must be submitted to Brussels to be vetted by mid-October, will see Italy’s budget deficit rise to 2.4 per cent of economic output, a number that, while within EU rules, is viewed by many as too high to allow the country to reduce its sizeable debts.

The spending plans have triggered a month-long rise in Italian bonds yields, sending borrowing costs even higher than immediately after the March election that brought Mr Salvini and his populist coalition to power.

“Those who want to speculate on the Italian economy should know that they are wasting time,” said Mr Salvini, who is deputy prime minister as well as leader of the antiimmigration League.

Speaking alongside Marine Le Pen, leader of France’s far-right National Rally party, at a joint press conference in Rome on Monday, Mr Salvini attacked the European Commission and its leaders, including President Jean-Claude Juncker and economic chief Pierre Moscovici, blaming them for years of austerity.

He pledged to use next year’s European elections to upend the continent’s status quo with a popu-

list “front of freedom”.

“We are against the enemies of Europe — Juncker and Moscovici — shut away in the Brussels bunker,” Mr Salvini said. “The politics of austerity of the last few years have increased Italian debt and impoverished Italy.”

“If I wanted to think badly I would say that behind the [bond] spread of recent days is a move by speculators like [George] Soros who are aiming for the failure of a country, to buy its remaining healthy businesses at a bargain price,” he said. “On behalf of the government, I say we are not going back.”

Earlier in the day, Mr Salvini reignited investor fears about his attitude towards Italy’s membership of the euro, tweeting: “Only death is irreversible. But at the moment there is no intention of touching the single currency.”

Investor concerns over Mr Salvini’s rhetoric and Rome’s dialogue with Brussels pushed Italy’s government borrowing costs to four-year highs on Monday.

The Italian 10-year government bond yield climbed to a session high of 3.626 per cent, up from 3.409 on Friday, after Brussels reprimanded the Italian government over the coalition’s main policies and fiscal targets, published by Rome on Friday.

Spreads between Italian 10-year government bonds and German Bunds, seen as a proxy for the risk premium demanded to hold the Italian paper, reached as much as 309 basis points, from 283.7 at Friday’s close and lows of 224.6 just under a month ago.

The country’s benchmark FTSE MIB index fell 2.24 per cent in morning trade in Milan, hitting the lowest level since April 2017, according to Refinitiv data. Stocks in Italian banks, which are leading holders of the country’s sovereign debt, were also retreating on Monday.

Airbus set to name Guillaume Faury as chief executive Commercial aircraft president to take over from long-serving Tom Enders at tough time SYLVIA PFEIFER

A

irbus, the European aircraft maker, has turned to an insider to pilot it through a period of management instability and production problems.

Guillaume Faury, who is president of Airbus’s commercial aircraft division and is a product of the Ecole Polytechnique, the top school for French technocrats, is poised to take over from longserving Tom Enders who is retiring next April. An announcement is expected to come later on Monday.

Mr Faury, 50, was only appointed to his current role this February and was until recently seen as a relative newcomer among the world’s top aerospace executives.

He cut his teeth running Airbus Helicopters and was chosen as the best candidate to lead Europe’s largest aircraft maker, according to industry sources.

Airbus had hired headhunters Spencer Stuart to find a successor to Mr Enders, who has led the group for the past six years.

His departure had sparked speculation over whether Airbus might break with tradition and appoint someone who was neither French nor German to the helm.

Although the power of the French and German governments

has waned significantly since a restructuring of their holdings in 2012, Airbus and its management remain politically sensitive.

However, apart from Mr Faury, the only other credible candidate, according to industry sources, was another Frenchman, Patrice Caine, the chief executive of Thales.

But Mr Faury was seen as the best person to lead Airbus given his industry experience and knowledge of modern manufacturing techniques after a stint at carmaker Peugeot.

Mr Faury has also impressed investors in recent months with a relentless focus on delivering aircraft. The company has a backlog of more than 7,300 orders — equivalent to nine years of production at current rates — but has struggled with delays to deliveries due to supplier bottlenecks, in particular with engines for its popular A320neo single-aisle plane.

At the end of September, the company had delivered 503 aircraft, about 300 short to meet its full-year target of about 800 jetliners. Despite the production hiccups, shares in Airbus have performed strongly in the past year. Although the share price was steady on Monday, it has risen from just under €80 a share to €103.86 currently.

BUSINESS DAY

C002D5556

NEWS YOU CAN TRUST I TUESDAY 09 OCTOBER 2018

INSIGHT/INNOVATION The long and short of PMB’s presidency (2)

OGHO OKITI Dr. Okiti is the president, Time Economics Ltd @ Dr_Okiti 081.7153.0058

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igeria’s economic performance under the All Progressive Congress (APC) government, presided by President Muhammadu Buhari over the last three years is nothing short of disastrous. Yes, oil prices, critical for government expenditure, and the stability of the exchange rate, fell and precipitated a decline in government revenue and aggregate expenditure. However, the conclusion and narrative that this is solely responsible for the poor economic performance is simplistic.

One reason is that it assumes that the only way, which is the Buhari way, to grow the economy, is through oil prices and the government expenditures it feeds. Also, it assumes that Nigeria will enjoy high and stupendous level of prosperity if we get the

PROPHYLAXIS

AYULI JEMIDE Ayuli Jemide is Founder and Lead Partner of Detail Commercial Solicitors. An entrepreneur, public speaker, author and adjunct faculty, Lagos Business School.

Email: AJ@ayulijemide.org Twitter: @JemideAyuli

T

he word defection is currently a buzz word in Nigeria’s political landscape and transiting from one political party to the other in Nigeria is now as rampart as passengers catching connecting flights. This phenomenon is as old as politics itself and in the US they are called ‘’party switchers’’. In New Zealand they are called ‘’waka jumpers’’ and the Brits called them ‘’floor crossers’’.

One notable floor crosser was Sir Winston Churchill, who crossed the floor from the Conservatives to the Liberals in 1904, before later crossing back in 1924.

Politicians have always argued that the main reason for defecting is the preservation of one’s conscience. The other argument politicians proffer is that cross carpeting is an exercise of their constitutionally guaranteed right to freedom of association. These are fair points, but can defections also infringe on the citizens right to choose if citizens voted for a politi-

right value for every Naira spent by the government. This means that, without corruption and leakages in government expenditure, Nigeria will be a prosperous country.

Underlying this assumption and narrative also is that Nigeria’s fiscal policy should be limited to the annual appropriations.

Why this short background is necessary is that the APC government said in the 2015 manifesto they will “make our economy one of the fastest growing emerging economies in the world with a real GDP growth averaging 10% annually”. But as I argued last week, there is strong indication that the President was not aware, nor read the manifesto, or understand the manifesto, or try to understand it, and does not believe in it. It was written by the Lagos wing of the Presidency, which unfortunately, though the intellectual wing, it is the powerless wing.

While the manifesto does not spell out, nor provide details of how the government and or the country can achieve a 10 per cent growth annually, it acknowledges that economic growth is critical to driving poverty down, raising the number of those in the middle class, and improving the standard of living of Nigerians. But that the government has only managed to achieve consistently less than 3 per cent growth rate, and presided over a devastating and crippling five quarters of economic recession in 2016 – 2017, is a testament that government policies could not rise beyond the primordial sentiments of the President. So, without a shadow of doubt in my mind, the economic recession was not some sort of inevitable economic occurrence following the decline in oil prices, but caused largely by the delay in appointing ministers in 2015,

...though competing in every election since 2003, the President has not prepared himself, thought and understood what is required and wanted to achieve for Nigeria, and never sought to understand how it can be achieved. The last four years has shown that he is simply unprepared for the number one office in the land

which meant there was no economic policy coordination at the required level, and the crippling four months of fuel crisis in early 2016. Both were caused by the primordial sentiments of the President.

So, the seeds of the tepid and weak economic recovery we see today were sown in the first year of Buhari’s presidency. Indeed, in the period leading to the first year anniversary in 2016, the National Bureau of Statistics (NBS) had released a trinity of devastating data on the Nigerian economy.

In the first quarter of 2016, the economy recorded a negative growth of 0.36, the first negative growth rate since the second quarter of 2004, while unemployment and underemployment were 12.1% and 19.1%, respectively, the fastest increase in unemployment in the decade before then, and inflation had started to rise, reaching 13.7% in April of the year. While oil price decline contributed, the economic performance worsened because of the incessant fuel

crisis, foreign exchange constraints, delay in the passage of the 2016 national budget, power shortages, and severe collapse in business confidence.

So, no analyst or economist worth his or her degree would think that the economic mess of the last three years can simply be explained through the lens of the dynamics in oil prices. Rather, the performance of the economy is a reflection of the non-or poor preparation for fall in oil price, policy division between the President and his vice, and a preponderant mindset that the expansion of the State is the panacea for our growing economic challenges. In the final analysis, all these symptoms are reflections of the long promises of the government and the short delivery of those promises. And there is only one person to blame – though competing in every election since 2003, the President has not prepared himself, thought and understood what is required and wanted to achieve for Nigeria, and never sought to understand how it can be achieved. The last four years has shown that he is simply unprepared for the number one office in the land.

In conclusion, it is very ambitious to want to grow the Nigerian economy by 10 percent, but it cannot be by wishful thinking and the expansion of the State. It can only be done with broad and specific plans, based on serious and sustained economic reforms that will attract private investment in all sectors of the Nigerian economy. It will be about the economic incentives to attract capital, retain it, and drive private sector behaviour towards investments, growth and jobs, both at the federal and state levels.

I thank you.

Of defectors and defections cian because they belonged to party X who the voter identified with at the time they voted? Should such an office holder excuse himself from the burden of associating with his sponsoring party, yet continue to enjoy the benefits of an office he obtained on the back of what he now deems to be an unholy association? Are citizens not entitled to some level of stability where people holding political offices wear the same toga they wore on the day they were voted in? Should politicians be allowed to simply defect from one party in the same manner telecoms subscribers port from MTN to Glo or vice versa? Should defection not have consequences under certain circumstances?

About 40 countries have anti-defection laws which basically prescribed a penalty for defecting from a political party after being elected to office. The most popular penalty being that you lose your seat in parliament. Nigeria is one of such countries with an anti-defection provision in its constitution. This provision basically states that any federal and state legislator who moves to another party after being elected should lose his/her seat in the house unless s/he defected ‘’as a result of a division’’ in his party or ‘’a merger’’ involving his party or a faction of his party.

It is interesting to note that as litigious as politicians are there has been no judicial

So why do the democracies without anti-defection laws have fewer incidences of political cross carpeting? The answer in my view is that in those democracies the political parties have ideologies that members identify with religiously

decision to date on what constitutes ‘’a division’’ in a party neither has any legislator lost his/her seat for defecting. It is also interesting to note that the anti-defection provisions in the Nigerian constitution do not apply to the executive – Presidents, Vice Presidents, Governors and Deputy Governors can change political parties anytime and as often as they like.

That said, it is noteworthy that all the countries in the Americas and in Europe (except for Portugal, Armenia, Romania, Hungary, Bulgaria and Ukraine) do not have anti defection laws. More noteworthy is the fact that these countries that do not penalize political cross carpeting have very few incidences of cross carpeting.

In the US for example, only 24 senators have switched parties in the 19th, 20th and 21st Centuries. In England, only 123 members of the House of Lords have defected between 1700 to date. Compare this with Nigeria where in 2018 approximately 55 National Assembly members defected from one party to another. This statistic grows if we include the governors, deputy governors and state assembly defectors in 2018 and the defections prior to the 2015 elections.

So why do the democracies without anti-defection laws have fewer incidences of political cross carpeting? The answer in my view is that in those democracies the political parties have ideologies that members identify with religiously. The ideological divides are like living in different planets, therefore cross carpeting is a star trek. In America you are either a Democrat or a Republican. In England you are either a Conservative or in the Labour Party. To buttress this point that ideological identity reduces party defections, it is important to look to India that is known as a major center for political defections despite their anti-defection law passed in 1985. The Indian Congress leader Jairam Ramesh put this succinctly when he re-

cently said: ‘’In India, all political parties have multiple ideologies to cater to multiple constituencies and therefore the idea of a homogenous ideology flies in the face of political experience’’. Some legislators in India even challenged the anti-defection law in court (Kihoto Hollohan vs Zachillhu).The legislators argued that the antidefection law impinges on their freedom of speech, right to dissent and the freedom of conscience. The Supreme Court in India ruled that the law is targeted at addressing unprincipled defections, which cannot be protected under freedom of conscience or the right to dissent or intellectual freedom.

The court said: ‘’Morality is conformity to ideals of right human conduct. Such a conduct is in the public interest and public interest requires that delegates, elected by people because they follow a particular political philosophy must vacate such office on renouncing that philosophy’’. The judges also said: ‘’Defections in India usually take place because political interests are sold for money or for promise of ministership or public office, and the defector may defect again for some more money or promise of some more ministership or public office.

In short it is odious form of political corruption”.

John Percival Jones, an American Senator for 30 years until 1912, in defecting from the Republican party is quoted as saying: ‘’I can no longer as an honest man, true to my convictions, remain with a party whose principles on the main issues are so repugnant to my own views.” How many defections in Nigeria can pass the John Percival Jones test of being ‘’true to my convictions’’?

I think Nigeria urgently needs an antidefection law that streamlines the process for defection and the penalties for defection. We also all look forward to a day when Nigerian politics will be about ideologies.

The question is: Can politicians without ideals have ideologies?

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