BusinessDay 17 Sep 2019

Private sector asks Buhari to listen, implement recommendations of new economic council DIPO OLADEHINDE, Lagos, & ANTHONY AILEMEN, Abuja

…as Salami heads team

xperts in Nigeria’s private sector have tasked President Muhammadu Buhari to not only listen but also implement recommendations of the newly for me d Economic Advis or y

Council (EAC) in order to avoid the lacklustre performance of the country’s economy recorded in the last four years.

President Buhari on Monday constituted an Economic Advisory Council, headed by

E

a renowned economist, Doyin Salami, to replace the existing Economic Manag ement Team (EMT). The new council, which will report directly to the president, is saddled with the responsibility of advising

and captains of industry who spoke with BusinessDay on Monday, while commending President Buhari for constituting the EAC, advised him not to treat the council, which is made up of respected economists, as a thing of decoration or as an

the president on e conomic policy matters, including fiscal analysis, economic growth and a range of internal and global economic issues working with the relevant cabinet members and heads of monetary and fiscal agencies.

But development experts

Continues on page 37

businessday market monitor

Foreign Reserve - $42.84bn Biggest Gainer Biggest Loser Cross Rates - GBP-$:1.24 YUANY-N 50.94 OKOMUOIL AIRTELAFRI N52.90 9.30%pc N315.00 -10.00pc Commodities 27,574.32

Cocoa

US$2,383.00

Gold

$1,510.40

news you can trust I **TUESDAY 17 SEPTEMBER 2019 I vol. 19, no 395

₦3,619,913.68 +0.39pc

$68.63

N300

Foreign Exchange

Buy

Sell

$-N 357.00 360.00 £-N 442.00 450.00 €-N 390.00 400.00

Crude Oil

I

FMDQ Close

Everdon Bureau De Change

Bitcoin

NSE

g

www.

Market

Spot ($/N)

I&E FX Window CBN Official Rate Currency Futures

($/N)

fgn bonds

Treasury bills

362.32 306.90

3M -0.09 12.15

NGUS NOV 27 2019 363.97

6M 0.31

0.00

10 Y -0.04

20 Y -0.05

13.22

14.32

14.36

14.58

5Y

NGUS FEB 26 2020 364.42

@

g

NGUS SEP 30 2020 365.47

Saudi attack may push oil to $80 in gift, curse for Nigeria Apapa: Why LOLADE AKINMURELE, STEPHEN ONYEKWELU & DIPO OLADEHINDE

D

rone attacks on the world’s most important oil processing plant has caused Brent crude, the benchmark for Nigeria’s crude oil, to surge worldwide, a development that brings short-term benefit and long-time headache to Africa’s biggest oil producing country.

An attack on Saudi Arabia that shut 5 percent of global crude output triggered the biggest surge in oil since 1991 as prices rose as much as 20 percent to $71.34 a barrel, its biggest jump in 28 years.

A swarm of drones set off a chain of explosions on the Saudi Aramco oil production facilities at Abqaiq and Khurais in eastern Saudi Arabia on 14 September,

Continues on page 39

g

presidential task team is succeeding in clearing gridlock despite odds CHUKA UROKO, MIKE OCHONMA & JOSHUA BASSEY

T

he success story of the Presidential Task Team set up by President Muhammadu Buhari with the mandate to clear the Apapa gridlock is telling itself as Apapa, once a loathsome destination, is now largely free

ANALYSIS

L-R: Kunle Kokumo, speaker, Ogun State House of Assembly; Mosunmola Dipeolu, chief judge of Ogun State; Dapo Abiodun, governor of Ogun State, and Adedotun Gbadebo, Alake of Egbaland, at the church service marking the commencement of the new legal year, yesterday.

Continues on page 39

2

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

3

4

Tuesday 17 September 2019

BUSINESS DAY

news Xenophobia: 320 Nigerians to be evacuated from South Africa today …Ramaphosa apologises, admits attacks affecting SA’s economy …Ogun tops returnees’ list IFEOMA OKEKE, Lagos, TONY AILEMEN & INNOCENT ODOH, Abuja

T

he management of Air Peace has confirmed that it would evacuate the second batch of Nigerians from South Africa today, Tuesday. The airline had evacuated the first batch of 187 Nigerians last Wednesday.

The evacuation follows the recent xenophobic attacks on Nigerians and nationals of other African countries in South Africa.

Air Peace said the flight is expected to arrive in Lagos from OR Tambo International Airport by 7pm today.

Allen Onyema, chairman and CEO of Air Peace, who confirmed this, said the flight would leave Nigeria after midnight on Tuesday and arrive South Africa in the morning but would depart South Africa mid-day back to Lagos.

Onyema also said that out of over 600 Nigerians that are willing to return home, 360 have been cleared for evacuation but the airline would airlift 320 in the second batch, which is the capacity of the aircraft,

Boeing 777 that would be deployed for the flight.

There are also indications that despite the diplomatic efforts started by South African President Cyril Ramaphosa to reach out to other African countries, including Nigeria, many Nigerians still want to leave the country because of uncertainty and lack of assurance that the hostility could be stopped by South African government.

Aliu Saheed, who returned to Nigeria with the Air Peace’s first flight last Wednesday, explained that South African police could be overwhelmed by the violence, which has led to the death of many Nigerians and other Africans. He noted that police might not be able to control the South Africans who unleash violence on other Africans.

The Nigerian High Commission in South Africa said that it has been collaborating with Immigration to clear all Nigerians who wish to return to their country to be able to do so.

Meanwhile, President Ramaphosa on Monday tendered an unreserved apology to Nigeria over the xenophobic attacks. The apology was

www.businessday.ng

contained in a message sent through his Special Envoy, Jeff Radebe, who led a team of South African diplomats to deliver the message to President Muhammadu Buhari in Abuja.

Radebe apologised on behalf of President Ramaphosa for what he called “acts of criminality and violence” that recently occurred, saying “such do not represent our value system, nor those of the larger number of South Africans”.

He said South Africa is an integral part of Africa and was fully committed to peace and integration of the continent.

He disclosed that 10 people died during the attacks – two Zimbabweans and eight South Africans – saying “there was no Nigerian casualty”.

While briefing State House correspondents at the Presidential Villa in Abuja, Radebe admitted that the South African economy had been impacted negatively by the attacks.

He was silent on the issue of compensation, but stated that “under the South African laws, registered companies operating in South Africa are expected to take insurance policies in anticipation of issues like this”.

He, however, said such issues would be part of the agenda during President Buhari’s state visit to South Africa from October 3.

President Buhari, while receiving the team, went down memory lane to recall roles played by Nigeria in engendering majority rule in South Africa and ending the apartheid segregationist policy.

“Going back to historical antecedents, we made great sacrifices for South Africa to become a free state. I was a junior officer to Gen. Murtala Muhammad and Gen. Olusegun Obasanjo. They were not operating in a democracy, but they got Nigerians to support them in the bid to see a free South Africa,” Buhari said.

“Our leadership was quite committed to the cause. We made sacrifices, which younger people of today may not know. During my last visit to South Africa with the late President Robert Mugabe, it was very emotional, as Mugabe spoke about Nigeria’s contribution to free South Africa,” he said.

•Continues online at www.businessday.ng

https://www.facebook.com/businessdayng

Energy access: Nigeria’s rural dwellers have reasons to envy Mozambican villagers STEPHEN ONYEKWELU

T

he Federal Government hopes to source capital market funding as well as other third party monies to enable it implement the Family Home Fund project, with which it hopes to provide some 500,000 affordable homes for low-income Nigerians and create 1.5 million jobs in the next four years.

Zainab Ahmed, minister of finance, budget and planning, on Monday announced government’s commitment to adequate public funding for the project, but said enough third party monies were also being expected to enable it deliver on the ambitious project. “ The Family Homes Fund will receive significant amounts of public money, in addition to other capital from development finance institutions and the capital market,” Ahmed said in Abuja as she inaugurated the board of the fund, headed by Suleiman Barau, a former deputy governor of the Central Bank of Nigeria (CBN).

The Family Homes Fund which was launched since 2016 and has rarely made any significant impact was set up against the backdrop of widening housing gap in the country.

@Businessdayng

Ahmed raised concerns that lack of cooperation among various agencies tasked with the provision of housing was partly responsible for the poor delivery of affordable housing over the last 30 years.

The Fund is a partnership between the Federal Ministry of Finance and the Nigerian Sovereign Investment Authority as founding shareholders, and the largest affordable housing-focused fund in sub-Saharan Africa, leveraging its significant capital (in excess of N1trn by 2023) to facilitate access to affordable housing for millions of Nigerians on low to medium income groups.

Authorities believe that through strategic partnerships with various players in the sector and some of the world’s main Development Finance Institutions, the Fund could facilitate and supply 500,000 homes by 2023.

Ahmed said the fund was a push to the realisation of President Buhari’s goal of bridging the housing gap and promptly addressing the numerous demands for government interventions in the housing sector.

•Continues online at www.businessday.ng

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

5

6

Tuesday 17 September 2019

BUSINESS DAY

news FG must fix critical infrastructure, create credit facilities for economic growth - Agbaje ...as FCMB parleys, lectures journalists on finance reporting RAZAQ AYINLA, Southwest Bureau Chief

O

peyemi Agbaje, chief executive officer of RTC Advisor y Services Limited, has said that critical infrastructure such as energy, storage and processing facilities, roads, rail and entire transport system must be fixed and enabling atmosphere be guaranteed for business activities for the Nigerian economy to compete favourably with her peers in the world.

Agbaje noted that the economic sectors such as manufacturing, micro, small and medium scale enterprises, agriculture, mining and logistics sectors were key to the growth of gross domestic product which in return would create wealth, job opportunities and spur up the desired economic growth and development.

Speaking at the FCMB Media Parley and Finance Reporting Lecture organised for journalists based in Southwest, Nigeria recently in Ibadan, the Oyo state capital, Agbaje stressed the need for the Federal Government to create an enabling business environment where critical

infrastructure would be offered for ease of doing business as part of measure to attract more foreign direct investments.

The chief executive officer of RTC Advisory Services Limited, represented by Vincent Nwani, a PhD holder in Developmental Economics, added that a single digit interest rate credit facilities should be provided for entrepreneurs and multiple taxation should also be looked into for the nation’s economy to be buoyant and favourably compete in the world arena.

Meanwhile, First City Monument Bank (FCMB) Group Head of Corporate Affairs, Diran Olojo, has reiterated FCMB’s commitment to a sound relationship with the media, saying it was imperative for the commercial bank to be involved in human capital development of the media men in terms of quality finance reporting and their welfare.

Olojo, who explained the rationale behind the theme of capacity building for media which was tagged, “Nigeria in 2019: Low growth VS Rising Risks”, noted that the region was key to the growth of journalism and development of the commercial bank as a

corporate entity, adding the media parley was the sixth in the series that the bank had organised across Nigeria in the last five years and the second in 2019.

“The parley provides another veritable platform for us to further connect, engage and appreciate the immense contributions of our media practitioners, especially those in this zone, to the success story of FCMB since its establishment almost 40 years ago.

“Given the importance of the media, especially financial journalists, this session presents a platform to empower the fourth estate of the realm, highlight their role as key influencers and empower them with the requisite knowledge that promotes the values of professionalism and ethics in the discharge of their duties.

“It is on record that the hard work of Nigerian journalists has ensured that the country’s image remains protected amid the various challenges of nation building. Indeed, as one of our key stakeholders, FCMB recognises the importance of the media in our business and the need to constantly add value to the industry and practitioners.

Flooding: NIHSA says governors not heeding to predictions ...As severe flooding looms

T

he Nigeria Hydrological Services Agency (NIHSA) has decried the state governors’ poor response towards flood warnings and calls for precautions, saying they failed to heed the warnings issued before the onset of flooding.

NIHSA’s Director-General, Clement Eze, in a press briefing in Abuja on Monday, noted that the state governors do not engage the flood-related agencies in states but rely on the Federal Government for support.

“It is unfortunate that the flooding incidents are manifesting just as predicted by NIHSA. This means that the relevant stakeholders, espe-

cially individuals and state governments have failed to heed the warnings issued before the onset of flooding season in the country,” he said.

Eze, lamented the poor utilisation of funds by the state governments as most cities were suffering from the effect of flooding.

Eze further noted that state governments should leverage on their ecological funds as well as the emergency management agencies to address flooding in states. He noted that some governors have offices in charge of environment and ecology, pointing out that they were supposed to leverage on those departments to address issues of flooding in

their states.

“The Federal Government is doing its own part, but the states that know every local government area should do something,” he said.

Eze further warned that the country would experience severe flooding in the coming weeks.

“The localised urban flooding incidents being witnessed in some cities and communities in the country are expected to continue due to high rainfall intensity of long duration, rainstorms, blockage of drainage system and poor urban planning resulting in the erection of structures within the floodplains and waterways,” he added.

Again, FG Labour disagree over minimum wage, strike imminent Innocent Odoh, Abuja

T

he controversy over the new N30,000 minimum wage has continued as the Federal Government and the Labour Union have again failed to agree on issues concerning the consequential adjustment after a meeting between both sides on Monday.

President Buhari signed the N30,000 minimum wage into law on April 18, 2019, and the payment was supposed to start from that date. But six months down the line, the payment has not started as controversy over the matter still lingers.

Our correspondent gathered that at the Monday’s meeting chaired by the Head of Service of the Federation, Winifred Oyo-ita, both the Nigerian government and the labour teams of the Joint Public Service Negotiating Council only made minor adjustment to their earlier positions.

The Government was said to have decided to step up from 9.5 percent to 11 percent for grade levels seven to 14 and 6.5 percent from 5.5 percent for levels 15 to 17, just as the Chairman of the labour team, Simon Anchaver, reportedly said that workers stepped down to 29 from 30 percent for grade levels

7 to 14 and 24 from 25 percent for levels 15 to 17.

Anchaver said labour negotiating team had also decided to write to the Nigeria Labour congress, NLC and the trade union congress, TUC on their advice to consider an industrial action to press home their demands.

He accused the government of foot dragging on the matter and warned that workers may be forced to embark on industrial action, since they were already engulfed in fear and agitations whether their accumulated arrears will be paid when talks are finally concluded.

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

7

Tuesday 17 September 2019

BUSINESS DAY

7

news

How Saudi Arabia oil explosion will affect Nigeria - stakeholders Olusola Bello

T L-R: Olufemi Badejo, managing partner, Cersei Partners; Idowu Thompson, head of private banking, First Bank of Nigeria Plc; Stephen Jimba, Nigeria brand ambassador, Remy Martin XO; Habila Malgwi, regional director, Africa, Arton Capital, and Anurag Shah, general manager, Porsche Centre Lagos, during the unveiling of new Porsche Cayenne in Lagos.

Economy has outgrown Apapa, Tincan ports, says Sanwo-Olu ...as Reps committee visits Apapa JOSHUA BASSEY

G

overnor of Lagos State, Babajide Sanwo-Olu, has said that developments within the economy have rendered the Apapa and Tincan Island ports insufficient to cope with the current volume of export/ import activities they carry.

New seaports, according to Sanwo-Olu, are therefore needed to share the spillover from Apapa. This, he said, required an urgent development of Badagry and Lekki deep seaports.

Sanwo-Olu’s position came on Monday, as members of the House of Representatives’ committee on ports decongestion, visited Lagos to carry out investigation into why the Apapa and Tincan ports are in crisis.

Yusuf Yakub, chairman of the committee, who led others on a visit to Sanwo-Olu at Lagos House, Ikeja, said the House of Reps was determined to find a solution to the crises within the ports.

Addressing the committee, Sanwo-Olu said: “It is clear to us that the development of the city called Lagos has outgrown those ports. The level of the yearly tonnage from those ports has since doubled. That means that the capacity that was developed at that time given the volume of business that we are doing from these ports, has actually doubled.

It is not out of place that one will see a lot of pressure and congestion around the ports.”

Speaking further, the governor said that proactive measures to ensure that the gridlock within the ports is solved, were required.

“And this is why we believe critically that Lagos State needs two other ports. This will not only solve the gridlock within the ports but being the economy nerve centre of the country, we have put on the table the development of the Lekki deep sea port, which I must say to you has started and Badagry deep seaport. We have both ports on the eastern and Western parts of Lagos.”

He said the state govern-

ment was still in talks with Nigerian Ports Authority (NPA) to grant the approval because we have identified the developers, partners, and financiers for the Badagry sea ports.

“If we can see the construction and development of both ports, the congestion that we see at the Apapa and Tin Can ports will reduce. It will also spread development across the country especially in Lagos State. It will be a lot easier for anyone that has come to lift goods from the ports to their warehouse. We will also reduce all the smuggling that had existed,” said Sanwo-Olu. The governor added that with the Lekki seaport, trucks would easily link the Shagamu axis.

Chairman of the committee, Yakub, said they are in Lagos to dig into why the ports in Apapa were experiencing crises.

“In view of the importance of the seaports to the country’s economy, we are here in Lagos to investigate why the ports are not working maximally.

The seaports are gateways

to the country; they serve as avenue for imports and exports. And where the seaports are sick, that means that the economy is very sick. We are here to look at the two major ports which is Tin Can and Apapa ports,” said Yakub.

he oil explosion in Saudi Arabia may turn out be of tremendous benefit to Nigeria despite the fact that the country imports most of her refined products.

Before the incident, Nigeria had agreed to cut it excess supply to the global market by 57,000 bpd at a meeting in Abu Dhabi last week ahead of their policy discussions in Vienna in December.

This, analysts say, will no longer happen.

Nigeria’s production averages 1,957.500 barrels per day, while what it used to service imported products is about 445,000 barrels per day, which was supposed to be refined by the refineries in the countries.

Industry operators said that with the global market losing about five

Nigerian customs, SON advised to intensify efforts to overhaul system …agencies commended for combating smuggling, substandard goods IFEOMA OKEKE

A

uthorities of the Nigerian Customs Service (NCS) and the Standard Organisation of Nigeria (SON) have been advised to intensify efforts towards ensuring total overhauling of the system through strict compliance to the operational techniques of their organisations.

The Social Integrity Network (SINET) in a statement issued on Monday commended Hameed Ali, the Comptroller General of Customs, and Osita Aboloma, the Director General of SON, for their strides in combating smuggling and influx of substandard goods into the country.

Mallam Ibrahim Isah, SINET National Coordinator, noted that, the organisation

was “glad that the NCS and SON have woken up to the clarion calls by Nigerians to fight smuggling and importation of substandard products to a standstill in order to create more opportunities and rapid economic recovery for the nation.

“The boarder closure has further confirmed the position of Nigeria as the giant of Africa and the effect is being felt positively by local manufacturers while the nation’s revenue generation has also improved tremendously.

“While smuggling and importation of substandard products have adverse effects on industrial productivity, jobs, bank loan obligations, it is also the major catalyst for the persisting insurgency and kidnapping

among other social vices, paving ways for dangerous weapons in the country,” Isah said.

The SINET helmsman further stressed that the Customs should extend the war against smuggling beyond boarder protection and move to in-house smuggling conspiracy and connivance among officers, adding that any officer found wanton should be severely dealt with and jailed for committing g felonious act.

“We commend SON for apprehending a warehouse owned and operated by Prossy and closing down the business for not complying with the required standard. There is a need to do more in order to reduce the dastardly act to the barest minimum in order not to take the nation back by 50 years.

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

million barrels of crude a day, it would be an opportunity for a country like Nigeria that is already being accused of overproduction to use it to help mitigate the effect of the vacuum created by the Saudi incident.

They said even though the incident will impact the price of crude oil and by extension prices of refined products, which the country imports massively, the impact on refined products they say would be marginal when compared to the revenue that would accrue from crude oil that would be exported to the global market.

Ac c o rd i ng t o D i ra n Fawibe, chairman and chief executive officer of International Energy Services (IES), this is an opportunity for those countries that shave pare capacity to pump more into the market and Nigeria is not an exception.

8

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

9

10

Tuesday 17 September 2019

BUSINESS DAY

news

Tribunal verdict: PDP govs back Atiku to challenge Buhari’s victory SOLOMON AYADO, Abuja

T L-R: Johnson Onyibe, technical adviser, Seed Enterprises Association of Nigeria (SEEDAN); Philip Ojo, director-general, National Agricultural Seed Council (NASC); Alberto Agedah, board member of NASC, and Kabiru Ibrahim, national president, All Farmers Association of Nigeria (AFAN), at the sensitization and unveiling of the Seed Codex Technology by Director-General of NASC, in Abuja

Manufacturers rally for eastern ports, as PTOL surpasses 2019 target in May Ignatius Chukwu, Port Harcourt

M

anufacturers in the southeast and south-south o f Ni g e r i a, including the Manufacturers Association of Nigeria (MAN, Rivers/Bayelsa) appear determined to return to eastern ports for their imports and exports in order to reduce costs.

They plan to rally importers in Onitsha and Aba to route their imports through Port Harcourt and other eastern ports of their choice to boost activities at these ports and in the process create jobs in the region.

This is as the main terminal operator of the Port Harcourt Port, PTOL, says the PH Port has returned to viability and vibrancy, revealing that the company surpassed its 2019 target as far back as May this year.

The new determination and action plan of the manufacturers was revealed by the MAN (Rivers/Bayelsa) the chairman, Adawari MichaelPepple, a former senator, who has embarked on inspection visits to the PH Port to assess the true situation as it

launches the operation restore PH Port.

Sources close to the former senator say he is spearheading the fight for the restoration of the eastern ports. There are reports that he may be making presentations in Onne and Abuja to lawmakers to look at ways of helping the eastern ports.

At the PTOL on Friday where he went with Uba Obasi of ALCON (treasurer of MAN) and the executive secretary of MAN, Emma Dorgbaa, to inspect the facilities on hand, he told the host terminal operator/concessionaire that MAN remained the central point in manufacturing in Nigeria and the pillar of the economy in terms of job and wealth creation.

He insisted that it was the activities of MAN that generate the real gross domestic product (GDP) of the nation, thus justifying the priority attention the FG pays to MAN. Nigerian businesses have faced high transportation costs, delayed deliveries and production disruptions caused by port congestion as only Apapa ports in Lagos are currently functioning fully in the country.

Michael-Pepple recalled that the Port Harcourt Port was the centre-point of Port Harcourt City and an active place over the decades, adding that MAN needed support from the stakeholders including Customs, NIMASA (Nigerian Maritime and Safety Administration), the National Assembly, and others, to get the port back to full steam.

He said he had test-run the port and confirmed the state of things there by importing a container load of goods through PH. On how MAN intended to fight for the revival of the eastern ports, especially the PH Port, Pepple said: “Port Harcourt Port must work. All importers in the zone must come back here,” he said, noting that the governor of Lagos State had had cried out and made a strong case for attention to be paid to the eastern ports because Lagos is being choked by endless rows of trucks waiting to enter or leave the Apapa ports”.

He identified planned action points as giving incentives to attract importers to the PH Port through reduction of costs by the terminal operator, creating awareness for PH Port

as a fully functional port, lobbying, and monthly luncheon series to beam attention on the PH Port.

“We can no longer continue to allow a huge asset like the PH Port to waste away while people propose a dry port. Exporting through Lagos from the east is very difficult. The cost plus time of taking the goods to Lagos reduces the profit and shelf life of agric products. You lose your gains and shelf life in Nigeria before your goods get out there to global competition,” he noted.

In his remarks, the managing director of PTOL, Efoita Ephraim, said the terminal operator is working hard to justify the concession given to it (it has 4 out of 8 quays in PH).

“The Port Harcourt port is back and working very well. We have all equipment needed to attend to any type of vessel calls at this port. The shipping world has realised our capability and in fact, by May this year, we had met our 2019 target. We now handle ships in about four days instead of 14 days needed for such operations, ” Ephraim said.

Dana Air takes delivery of first Boeing 737 aircraft …to acquire more before the end of 2019 IFEOMA OKEKE

N

ig e r i a n ca r r i e r, Dana Air, has given its strategic route expansion plan a push with the arrival in Lagos of one of its newly acquired Boeing 737 aircraft.

Jacky Hathiramani, the Managing Director / Chief Executive officer of the airline, in a statement, said the aircraft arrived Lagos at about 1 am on Friday.

Jacky said the arrival of the first Boeing 737 aircraft was part of its promise to its guests earlier in the year that the airline would acquire some Boeing 737 aircraft to increase its capacity and meet the ever increasing

demands of its guests.

He said Dana Air was committed to its strategic route expansion and fleet renewal plan, and its desire to continue to provide unmatched on-time performance, world-class in-flight services and seamless air travel to its teeming guests.

“Earlier in the year, we noticed that there were fewer aircraft in the country and less capacity to meet the demand at the time, so we decided to assure our guests that we will acquire some Boeing 737 aircraft to ensure that they travel at ease without having to worry if they will get flights to certain destinations even at peak periods,”

Hathiramani said.

“The arrival of the first of our recently acquired 737 aircraft is a firm confirmation of our resilience, operational efficiency, deep passion, and our commitment to continue flying safely.”

“It also underscores our mission which is to earn the loyalty and respect of our customers by consistently demonstrating our commitment to service, and providing affordable regional air transport services that focus on innovation, quality and service excellence,” he added.

He said with the fleet size likely to hit 9 soon, the carrier was ready to give more 737 rated Nigerian pilots and

www.businessday.ng

engineers the opportunity to be gainfully employed.

“We would also deploy this B737 to strengthen our existing route network while new routes will be announced soon in line with our careful and methodical route and fleet expansion project.”

Having flown over 4.5 million passengers in the last 11 years of its operation, Dana Air is one of Nigeria’s leading airlines with daily flights from Lagos to Abuja, Port Harcourt, Uyo, and Owerri.

The airline is reputed for its unrivalled on-time performance, world-class customer/ in-flight service and innovative online products and services.

https://www.facebook.com/businessdayng

he People’s Democratic Party (PDP) Governors Forum revealed on Sunday that it would support the party and its presidential candidate, Atiku Abubakar, to challenge the victory of President Muhammadu Buhari in the recently passed judgment at the Presidential Election Petitions Tribunal.

The governors said the verdict of the tribunal that quashed Atiku and PDP’s petition, apart from laying a faulty foundation for the youths also stood justice on its head and therefore should be challenged at the Supreme Court.

In a statement issued from its secretariat in Abuja by its chairman and Governor of Bayelea State, Henry Seriake Dickson, the forum said if the judgment was not contested at the apex court, it might constitute a hog in the wheel of the country’s developing democracy.

“After painstakingly and prudently understudying the line- -after-line tenets of the judgment, several holes were picked and countless anomalies identified by us.

“We would be doing a greater disservice and moral injustice to our party, our democracy, and Nigerians in general if we turn blind e yes, swallow such bile and applaud that rape of justice.

“The judgment, to say the least, has further painted our judiciary with darker colours, only this time around with a never-before-seen blemished

coat of tar,” it said.

The presidential election petition tribunal, sitting in Abuja, on Wednesday, September 11, 2019, in a unanimous decision dismissed the petition filed by the PDP and Atiku, challenging the election of President Muhammadu Buhari in the February 23 presidential election.

The tribunal ruled that the petitioners were unable to prove their allegations against Buhari’s election.

In a judgment read by the head of the five-man panel, Justice Mohammed Garba, the tribunal held that there was not enough evidence adduced by the PDP and Atiku to warrant the tribunal upturning the election of Buhari.

In their statement on Sunday, the PDP governors further noted that the apex court should know that its integrity was at stake, and that in order to avoid it been shredded, it must employ all known technicalities to save the nation’s judiciary from collapse.

According to them, the judgment has made the country a laughing stock amongst the comity of nations and that Nigerians were very hopeful that the wrongs will be corrected.

“Without any iota of trepidation, it is most paramount for us to once more restate and reconfirm our undiluted loyalty, deserving support and maximum commitment to our great party and the Atiku-Obi Presidential Ticket.

“This is our stand, now and in the future. Posterity would judge us harshly if we did otherwise,” they stated.

Drug Abuse: El-rufai Promises Partnership With NGOs To Eradicate Scourge Abdulwaheed Olayinka Adubi, Kaduna

T

he governor of Kaduna state, Mallam Nasir Ahmed Elrufai, has promised that his administration would not relent in its efforts to eradicate the excessive use of drugs, especially amongst the youth in the state.

He said the scourge was rising and had become a problem to the society.

The governor who asserted this during a one-day sensitisation programme tagged ‘Narcotics: a journey to perdition,’ organised by Frendz United, in Kaduna at the weekend, said his administration was ready to partner with nongovernmental organisations in addressing the issue.

The governor added that Kaduna State Government would continue to advocate, preaching and educating the youth on the dangers of drug abuse.

In her speech, the Senior Programme Officer, National Orientation Agency, Rashida Othman Bakono, said there was the need @Businessdayng

to collaborate with other stakeholders especially in the area of sensitising the public to stay away from substance abuse.

In her remarks, the president of the association, Rosemary Esekhagbe, disclosed that the one-day sensitisation programme was a strategic engagement to synergise with other stakeholders and build a society free of drugs abuse.

Esekhagbe explained that drug abuse, especially amongst the young population, was on the increase, hence the need for stakeholders to rise to the challenge.

According to her, the event was designed to devise the means to attract the attention of different stakeholders to this menace.

“So, we are calling on all and sundry to rise to this social problem, as we all know that no society can grow when its youths have taken drug abuse as a way of life.”

She said her association will not relent in its objectives of empowering the youth, women and the less privileged in the society.

Tuesday 17 September 2019

BUSINESS DAY

COMMENT

11

comment is free

Send 800word comments to comment@businessday.ng

Citizens’ role in Nigeria’s global affairs STRATEGY & POLICY

MA JOHNSON

I

n contemporary international politics, a nation’s ability to deal or interact with other nations in pursuing its national interests is determined by the perceived or real power that is ascribed to that nation. Power is an essential aspect of a nation’s relationship with the world and it nurtures capabilities that sustain the promotion of a state’s objectives in the international environment.

Thus, a country is considered “powerful” when it has a relatively large population and territory, extensive natural resources, economic strength, military force and social stability. Converting resources into realised power in the sense of obtaining desired outcomes require well designed strategies and skilful leadership at various strata of the society.

A nation with stable polity and good governance, economic prosperity, technological advancement, moral authority as well as visionary leadership will find it easier to radiate power abroad.

The power of a nation is what is used to influence others to protect its citizens and national interests. It is the

ability of a nation to exercise influence and the capacity to direct the decisions and actions of others in the international environment to its advantage. It is a reflection of how a state harnesses the elements of her national power for active engagement in the international arena.

The elements of national power include but not limited to industrial capacity, natural resources, technology, geography, population and military capabilities. The strength of all the elements of power is to some degree dependent on the wealth of a nation.

Nigeria’s emergence as a regional power was partly because of the large revenue accruing to the nation from the sale of crude oil. This has made Nigeria to exercise soft power – the use of economic influence in the past within its sphere of influence in Africa.

The use of soft power was to enable restoration of the dignity of the black race and eradication of colonialism and apartheid from South Africa.

When Nigeria’s power was at its peak, Nigerians were respected in Africa and other parts of the world.

Citizens have a role to play in Nigeria’s global affairs. Nigeria’s role in the maintenance of global peace and security enhanced its influence in global politics. It’s on record that the nation has contributed significantly to international peacekeeping across the globe. Nigeria became deeply recognised as a regional power and centre of influence, particularly in Africa. This in addition to a viable economy until early 1980s; Nigeria was the toast of many African countries seeking its support on global issues or financial assistance.

Then, Nigerians were respected abroad, while the tendency to emigrate abroad was not popular. In a nutshell, Nigeria has used her citizens and resources to advantage in order to contribute to world affairs. While some scholars have advocated that Nigeria

should continue to play leadership role in Africa, others advocate reciprocity.

Simply, those who advocate reciprocity believe that Nigeria should not carry the burden of other nations in Africa, since she has her own domestic challenges. To further strengthen their arguments, advocates of reciprocity pointed out that though Nigeria’s foreign policy is designed to be benevolent to other nations, it fails to address the citizens welfare and security.

Gone are the days when Nigeria was regarded as a political leader in Africa.

Nigeria has declined to a pariah status such that countries like South Africa which was assisted in the past have now turned its back against Nigerians.

South Africans now accuse Nigerians of taking over their jobs and marrying the best of their women. To justify xenophobic attacks, a South Africa’s minister says that 80 percent of those residing in a state are foreigners.

Whatever the reasons, Nigerians are now being attacked alongside other nationals especially black people.

Is it because Nigeria no longer has the political and economic clout in Africa that has enabled South Africans to start xenophobic attacks on Nigerians?

Are Nigerians or other black Africans the target of the attack in South Africa?

Though we cannot fold our hands while our citizens are being killed in South Africa.

But is it right to blame South Africans when we cannot fix our economy and make life meaningful for millions of unemployed youths?

Despite several efforts to rebrand Nigeria for almost a decade, some Nigerians have been identified with drug trafficking, kidnapping, banditry, corruption, amongst others. It is unfortunate that violence has now taken the centre stage in our national life in the past ten years. All perpetrators and masterminds of crimes and criminalities are walking freely in the country but we complain about South Africans

‘

Gone are the days when Nigeria was regarded as a political leader in Africa. Nigeria has declined to a pariah status such that countries like South Africa which was assisted in the past have now turned its back against Nigerians

who see Nigerians as opportunists.

People will always migrate. Nigeria however, needs to improve its economy and provide enabling environment for job creation to reduce the number of Nigerians migrating to other nations and committing crimes as it is the case with 80 Nigerians arrested by the FBI in the USA for cyber fraud.

When certain events occur in Africa and other parts of the world, depending upon their intensity and magnitude, which are likely to affect the well-being of Nigerians, the government cannot be a spectator. It is the responsibility of any government to respond in an appropriate manner necessary to avert disaster or take adequate measure to ensure harmony, peace and tranquility amongst Africans and the international community.

Citizens have a role to play in Nigeria’s global affairs by obeying the country’s laws and work in harmony with the government to pursue the national interests. Nigeria in return has the obligation of providing security and welfare to her people. So anywhere we find ourselves as Nigerians, we must be law abiding citizens.

As Nigerians we need to be honest with ourselves. We have destroyed the power of nation that has taken our founding fathers several decades to build. For instance, the collapse of moral values, decay in physical infrastructure, lack of strategic leadership and direction at all levels, and unemployment etcetera have undermined our power of nation. Power of a nation counts and it will always be relevant as long as nations relate in the international environment. The only way out is for Nigerians to respect themselves, be law abiding, exercise the patience to listen to the truth and bear the burden of our corporate existence.

Johnson is an author and a retired naval engineer who has passion for African development and good governance

How China dodged a trade war recession

T B

he escalation of the trade war between the US and China in the past 18 months has cast a pall over business sentiment and growth in the advanced economies. y contrast, activity growth in China has remained fairly robust at around 7 per cent, and inflation is close to the People’s Bank of China’s 3 per cent target ceiling. This buoyancy is surprising, since China was expected by many analysts (and probably by Donald Trump’s administration) to be the main casualty from the trade wars.

How has China managed to survive the trade shock so far? The first issue is to quantify the size of the exogenous shock to the Chinese economy from the trade wars.

Goldman Sachs economist Andrew Tilton, who has published excellent empirical research on the trade war, estimates that the initial rounds of tariffs that took effect before August 1 2019 have reduced Chinese gross domestic product by 0.4 per cent, via the direct trade effects alone. This is broadly consistent with the worsening of net trade’s contribution to expenditure in GDP from 2017-19, which suggests that the estimate is in the right ballpark.

There have also been potentially much

larger negative effects on business investment from the huge rise in uncertainty about trade policy. These are very hard to estimate with any confidence.

However, staff economists at the US Federal Reserve Board have recently published a study that estimates trade policy uncertainty will have reduced real GDP in emerging economies, including China, by about 0.9 per cent by the end of 2019. This is very similar to global results published last week by IMF economists, and also close to the recorded decline in investment expenditure by foreigners in China, and by Chinese exporters since the trade war started.

If accurate, this suggests that the impact of trade uncertainty on Chinese GDP has been about three times larger than the direct trade impact, making a total contractionary shock to GDP equal to 1.3 per cent. [2] This shock has been offset by timely Chinese policy stimulus and an exchange rate depreciation.

Several elements of domestic economic policy have been eased since the trade war started, though this has been done judiciously, with continued efforts to reduce the growth of debt in the economy, www.businessday.ng

especially in the shadow banking sector.

There has been an emphasis on fiscal stimulus, which (according to the IMF) will increase the overall budget deficit by 1.5 per cent of GDP in 2019 alone. In addition, monetary policy has been eased, but only “prudently”. A key policy indicator, the 12-month medium-term lending facility interest rate, has remained unchanged, while the reserve requirement ratio has been cut by 4 percentage points. Credit policy has been loosened, and total credit is expected by JPMorgan to rise by 12 per cent in 2019. Housing policy has been an exception, with no relaxation of regulations that may be constraining construction so far.

The Goldman Sachs index of the overall stance of macro policy in China contains all these elements, and on this measure (see box) the easing seems large enough to have offset, almost exactly, the tariff and uncertainty shocks during the trade wars.

In addition, the 6 per cent decline in the exchange rate since the second quarter of 2018 could account for a further boost to GDP of about 0.7 per cent over a threeyear period, calculated from the latest IMF study of currency effects on global economic activity.

In summary, the entire contractionary

https://www.facebook.com/businessdayng

GAVYN DAVIES

shock from the trade wars up to August 2019 has been comfortably offset by policy interventions in China.

As a result, China seems less concerned about the additional tariff measures promised by President Trump on August 1 and 23. Some of these new measures have been postponed, but in full they would constitute an additional shock almost as large as the total of all the announcements up to July 2019. China’s State Council has responded by announcing new fiscal and monetary measures that would once again be expected to offset part or all of this new shock.

In recent days, both sides — especially the White House — seem to be tiptoeing away from the brink. With the US economy now slowing more than China, Mr Trump has a large incentive to reach a truce before the start of his re-election campaign.

@Businessdayng

12

Tuesday 17 September 2019

BUSINESS DAY

COMMENT

comment is free

Send 800word comments to comment@businessday.ng

Climate change & conflict in West Africa (3) RAFIQ RAJI

R

elated conflicts, including criminal violence such as banditry, kidnapping, and political assassinations, are most severe in Nigeria. Pastoralists in Nigeria have invaded farms, colonised villages along their grazing routes and meddled in the local politics of farmer communities with relative impunity. In response, some Nigerian state governments implemented grazing bans. A proposed organised settlement programme by the government for pastoralists in the greener south has been met with political resistance.

Nigerian authorities view the root of the crisis as the shrinking of Lake Chad. Food shortages and violence have already forced at least 2.4 million people to flee the Lake Chad area. In March 2017, the United Nations (UN) Security Council identified climate change (drought, crop failure, etc.) and ecological changes as factors responsible for Lake Chad’s instability. The UN

plans to facilitate raising $50 billion to regenerate Lake Chad by transferring water from more abundant Central African lakes. One UN goal is to create more jobs in the area.

Lessons from the Arab spring Unprecedented mass protests across the Middle East between 2010 and 2012 dubbed the “Arab Spring” is an outlier. Neither is the case related to local farmerpastoralist conflict, nor are local climate change effects believed to have been a contributing factor.

Instead, drought-induced wheat production shortfalls in China led to a global wheat shortage, driving bread prices up to unbearable levels in Egypt, a major global wheat importer, and elsewhere across the Middle East and North Africa. Still, the authors argue that although global warming may not have directly triggered the Arab Spring, it may have generated conflict that fed its flames.

World wheat prices more than doubled in 2010 due to extreme climatic events in the breadbasket nations of Russia, Ukraine and Canada. Due to their low incomes and reliance on imported wheat, many countries in the North African and Middle Eastern regions fell prey to the resulting price increases. Governments that failed to meet their citizens’ needs for

food security appeared less legitimate, leading to protests and ultimately to violence. Thus, institutional weakness (exacerbated by the use of new communication channels) may have enabled the wave of rebellions and revolutions across the region.

Managing farmer-herder conflicts: The case of Ghana Farmers and nomadic Fulani pastoralists in Ghana clash violently every year; especially during the dry season from December to March. These conflicts have multiple causes, including scarcity of pasture and water resources due to climate change, cattle rustling and weak laws governing ranching. Ethnic differences are an added cultural factor: “farmers construct Fulani identity as non-Ghanaian.”

There is a historical basis for this distinction: the Fulani originally migrated to Ghana from Burkina Faso, Niger and Mali early in the 20th century. They did so in search of pasture, water, land and better economic opportunities.

A recent rise in farmer-herder conflicts in Ghana followed increased cow purchases, as a signal of increased wealth from agricultural development. The combination resulted in less grazing land, yet more cows that need pasture.

‘

Governments that failed to meet their citizens’ needs for food security appeared less legitimate, leading to protests and ultimately to violence. Thus, institutional weakness may have enabled the wave of rebellions and revolutions across the region

T

struction consultancy with local offices.

“I think it’s generally acknowledged that Plymouth has reached saturation point.”

Across the UK, from Coventry in the Midlands, once the heartland of the car industry, to Cardiff, the Welsh capital, it is a similar story — one where an explosion in student numbers has fuelled frenzied construction activity. This educationthemed real estate sector, which provides accommodation for about 600,000 people — the equivalent of a third of the full time student population — is now worth an estimated £50bn, and reflects the critical role universities now play in local economies, especially those where many traditional industries have declined.

Like the student tenants themselves, many of the investors are drawn from around the world, attracted by the prospect of reliable returns at a time of low interest rates. Between 2016 and 2018, £3bn flowed in from the US, while £2.2bn was invested from Asia, according to property agents Savills.

But in Plymouth, as elsewhere, with a wave of new students heading to university there are questions over whether there are enough of them to fill — and afford — the newly-built rooms.

The department store on the site of Derry’s served the people of Plymouth for almost 60 years and is now being turned into student accommodation © Samuel Glazebrook “There are university towns that are now overbuilt,” says Thomas Mueller, a managing director at BlackRock, the world’s largest asset manager, which has invested in UK student accommodation, but is now selling a £300m portfolio of student accom-

www.businessday.ng

modation, including properties in London and Leeds.

The flood of new student accommodation also raises a question over whether education policy is distorting local economies, and the allocation of housing, at a time of significant shortages of social and family homes.

“You’ve got some markets that do have a very high supply,” says Robert Duncan, a Numis analyst. “When the term ends, you’ve got ghost towns, tumble weed blowing down the streets”.

Suzanne Sparrow has lived in or near Plymouth for 94 years. In 1978, she launched the city’s first language school.

But when the plot of land across the road from the school was recently earmarked for student apartments, she was less than pleased. “It made us wake up to what was going on,” says Mrs Sparrow. “It’s quite crazy. There wasn’t the student intake to warrant this.”

The marketing materials for the project point to its location near the University of Plymouth, describing it as “one of the largest in the UK”, and talks about an “undersupply of purpose built student accommodation”.

UK student numbers have mostly risen since the 1990s, following a push from the 1997 Labour government to widen participation. There were 555,000 first-year students enrolled on a first degree in the academic year ending in the summer of 2018, compared with just under 360,000 in 2000, according to the Higher Education Statistics Authority. This has had a pronounced effect on medium-sized towns and cities such as Plymouth, which boasts three universities and 24,000 students.

https://www.facebook.com/businessdayng

Article was first published by the NTU-SBF Centre for African Studies at Nanyang Business School, Singapore. References are in the original article.

“Dr Raji is chief economist at Macroafricaintel.

He was previously an Africa Economist at Standard Chartered Bank, London, UK. (Twitter: @ DrRafiqRaji)”

Higher education: is Britain’s student housing bubble set to burst? he original Derry’s was destroyed in the Plymouth blitz of 1941, but a department store reopened on the same site after the war and served the people of the English port city for almost 60 years. Its doors finally closed in 2010, another victim of the demise of the UK high street. Having stood unused for the best part of a decade, the building will now serve a new generation of customers: students.

Student accommodation has become an important part of the country’s property sector in recent years. And nowhere is that more true than in midsized cities and towns like Plymouth, with its population of 260,000 people.

As well as the project at Derry’s, which will provide 500 rooms, a hotel and retail space, proposals have been made to convert the site of the Moneycentre building, a former office block, the closed-down Belgrave Snooker Club and the Good Companions Pub, once a karaoke hotspot on Mayflower Street.

The developments are part of a transformation in Plymouth, where the tallest building is now a multicoloured student skyscraper called Beckley Point that opened in 2017. Close to the city’s largest university, which hosts more than 20,000 students, entire streets of family homes have been turned into shared houses, which compete with the newly-built tower blocks for tenants.

But there is now growing evidence that the city has hit peak student accommodation. “Going back five years, the only tower cranes you ever saw around the city [were building] student accommodation,” says Steve Demuth at Bailey Partnership, a con-

When we add increased migration of Fulani herders to Ghana from drought-hit Niger, Mali and Burkina Faso, we see the seeds of conflict.

Whether in times of peace or conflict, farmers and herders in Ghana have a history of cooperating with one another as “cultural neighbours”. This pattern of cooperation takes the form of neighbourly interactions, intermarriages, friendships, trade, and resource sharing.

However, recent increases in conflict among members of the two groups spurred the Ghanaian government to institute a ranching programme. This intervention led to a reduction in the number of violent conflicts among members of the two groups in the pilot area of the programme. This success suggests such interventions by the state might serve as a template for other West African countries grappling with similar issues.

THOMAS HALE AND JUDITH EVANS “We’ve seen an explosion in higher education,” says Mark Lowry, a city councillor.

Where students have gone, developers have followed. Unlike the private rental market, many student tenants receive maintenance loans from the government, which they can use to pay their rent. Others are supported by parents — especially international students, of whom there were nearly half a million in the UK in the 2017/18 academic year.

Mr Duncan traces the recent building boom to changes in tuition-fee policy in 2010, when the government trebled fees, as well as the “internationalisation” of higher education. “People said, ‘Hang on, if I’m incurring all this debt, I need to really knuckle down . . . what are the contributing factors in getting a good degree?’ One of them is quality of accommodation.”

After the financial crisis, he adds, property yields collapsed — except in student accommodation. The sector has continued to deliver high returns. Unite, a real estate investment trust — which owns 50,000 rooms across 22 cities — has seen its share price rise nearly 140 per cent in the past five years.

Development of land for student accommodation is also indirectly incentivised by the UK’s planning system.

Developers building homes for sale or rent are nearly always required to build a quota of “affordable” housing, which is less profitable, as a condition of planning permission. This does not apply to student accommodation.

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

@Businessdayng

Tuesday 17 September 2019

BUSINESS DAY

EDITORIAL PUBLISHER/CEO

Frank Aigbogun EDITOR Patrick Atuanya DEPUTY EDITOR John Osadolor, Abuja NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai COPY SALES MANAGER Florence Kadiri DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

13

Values and image of Nigeria

T

he increasing resort to advance fee and internet fraud by some Nigerian youth both inside and outside the country not only shows the debilitating culture of “get rich quick” syndrome but also a breakdown of societal values. The Nigerian society as a whole must take concrete measures to arrest the degeneration of values and government, organisations and individuals must equally take concrete steps to refurbish Nigeria’s image and reassure the world that we are not a nation of fraudsters and drug dealers as the activities of these Nigerians is portraying.

Last month was particularly bad for Nigeria’s image. It began with the arrest and arraignment of Obinwanne Okeke of the Invictus group – the supposed poster boy of Nigeria’s successful and entrepreneurial youth – on charges of internet fraud by the US Federal Bureau of Investigation (FBI). It was followed closely by an unprecedented 252-count federal grand jury indictment against 77 Nigerians and arrests of the

masterminds, Valentine Iro, and Chukwudi Christogunus Igbokwe, for involvement in a series of coordinated internet frauds running into billions of dollars obtained from victims in the US, Britain, Japan and other parts of the world.

As if that was not enough, Saudi Arabia released a list of over 20 Nigerians facing the death penalty in the country for various drug trafficking offences. Not forgetting that hundreds if not thousands of Nigerians languishing in Asian jails – with most facing the death penalty for drug trafficking offences.

It is good that the federal government has condemned the activities of these fellows and has taken steps through the Economic and Financial Crimes Commission (EFCC), to arrest and prosecute the offenders in Nigeria and also collaborate with the US authorities in arresting and extraditing those wanted in the US for fraud.

However, much more needs to be done; and a starting point is to interrogate the degeneracy of the moral compass of the nation and the grim consequences staring the nation in the face and exposing it as a moral burden on

the rest of the world.

We must begin by acknowledging that the entire society, and not just the desperate youth, is out of joint. The time-cherished values of hard work, honesty and contentment have been replaced by the craze for power, instantaneous wealth and flamboyant living. This culture evolved principally because the society began to celebrate wealth and power without questioning their sources.

Consequently, Nigeria is perhaps, one of the few countries in the world where public office or leadership is not about service but a gateway to instant wealth and influence. So bad is the practice now that looting or stealing of government money is not considered a crime or something bad by the society. This has given rise to a massive culture of corruption, lawlessly, impunity, and depravity that has never been seen before in governance, aided, no doubt, by the free money coming from oil.

Of course, this has consequences for the economy and the well-being of the society.

The economy remained largely underdeveloped, oil-dependent,

import-dependent and without the capacity to create the jobs to engage its population especially the youth that are clearly in the majority.

The youth therefore, remain on the margins of society., incapable of playing any meaningful role in the political, economic, social and cultural processes of the society and becoming what Donald Cruise O’Brien describes as the “lost generation”; a disempowered, stunted, and now bitter youth with fewer access to the means of becoming adults and their “youth” at “risk of becoming indefinitely prolonged”, hence their resort to violence and lately, criminality to make a living and gain the respect of the society.

A necessary condition for refurbishing and boosting Nigeria’s image will involve changing Nigeria’s political culture to one that is truly representative and accountable to the people and revamping the economy to create jobs for our people.

Hard-working companies and individuals must also take special care to comply with all extant laws, do business and collaborate with only genuine and trusted groups and individuals.

HEAD, HUMAN RESOURCES Adeola Obisesan

EDITORIAL ADVISORY BOARD Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo Wiebe Boer Paul Arinze Boye Olusanya Ayo Gbeleyi

ENQUIRIES NEWS ROOM 08169609331 08116759816 08033160837

} Lagos Abuja

ADVERTISING 01-2799109 08033225506 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 DIGITAL SERVICES 08026011296 www.businessday.ng The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria.

01-2799100 LEGAL ADVISERS The Law Union

MISSION STATEMENT To be a diversified provider of superior business, financial and management intelligence across platforms accessible to our customers anywhere in the world.

OUR CORE VALUES

BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, Entrepreneurial and Purpose-Driven.

• The Fourth Estate: We take pride in being guarantors of liberal economic thought • Credible: We believe in the principle of being objective, fair and fact-based • Independent: Our quest for liberal economic thought means that we are independent of private and public interests.

• Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share our vision, while treating them with respect and fairness. www.businessday.ng

14

Tuesday 17 September 2019

BUSINESS DAY

COMMENT

comment is free

Send 800word comments to comment@businessday.ng

The devil’s workshop is hiring

E

“

yin olowo o fun wan ounje je. Ojo n bo, a o wa fun yin.” A thug, said this to a friend of mine while he asked her for some money at the Lagos Marina, sometime in July.

Two weeks ago, one of my big nightmares stared me in the face. I was seated at a meeting somewhere at Sun City in Abuja, and essentially down the road from where I was, rioters set ablaze an MTN mast, and made their way towards the huge Shoprite complex at Lugbe along the Bill Clinton drive. They were hindered by the police, but for a while, I could not leave where I was for my next appointment, and a friend of mine who came into Abuja on that day could not leave the airport as taxis refused to move until it was clear to go into town.

You see, I travel a lot in my line of work, and given three things - the town planning of most Nigerian cities, the huge unemployment rate which is being reflected in our slums, and our worsening security situation –my biggest nightmare is being on an assignment outside of Lagos, witnessing attacks like that

on MTN/Shoprite breakout and escalating, only to be trapped and unable to get back to my family.

This brings to mind the nature of the riots in response to the madness in South Africa. In the first hour of the reprisal attacks at the Novare Mall in Lagos, the mob went for Shoprite only. But very quickly, the whole thing escalated, and they started attacking other, fully Nigerian owned, businesses in the mall. The next day, a video emerged of a sports utility vehicle being attacked in traffic in Lagos, and on the same day, another video emerged, on Twitter, of a girl in traffic being asked by a thug why she was going to work when they were protesting. When I saw that video, I remembered the encounter my friend had, which I began this piece with, “You rich people won’t give us food to eat. One day we will come for you.”

In South Africa the unemployment rate stands at 29 percent, while the underemployment rate, according to Economic Research Southern Africa, stands at between 4 and 5 percent, making a total of 34 percent of the population who have too much idle time.

In Nigeria, the equivalent figures are 23 percent for unemployed people, and 18 percent for underemployed people, meaning that we have a higher proportion of our population idle than South Africa.

Now consider this – our population is 200 million, a figure open to question, while South Africa’s is 57 million. Looking at it simplistically, that is without the burden of having

to calculate the size of the labour force et al, we have potentially 80 million idle hands in Nigeria. There are 23 million more idle people in Nigeria, than in South Africa. How is that not a national emergency?

There are issues in both South Africa and Nigeria. Both countries are experiencing economic downturns, rampant corruption, and leaders who are unwilling, or incapable, of proffering impactful solutions to the economic crises besieging their citizens. In South Africa, unscrupulous politicians now to push the narrative that the foreigners are coming in and taking opportunities away from hardworking South Africans in addition to introducing crime and drugs (this should sound eerily familiar to Americans).

Despite President Cyril Ramaphosa’s condemnation of the violence, others have been far more lukewarm, citing “Nigerian drug dealers” as the cause of the attacks. However, it turns out that the violence did not specifically target Nigerians, but black foreigners generally, as evidenced by the reprisal violence across southern and eastern Africa.

In Nigeria, the economic policies of the Buhari administration pushed the country into a recession from which it has only recovered on paper, and even that nominal recovery is rapidly slowing, with another recession looming large.

Jobs lost between 2016 and 2018 have not been replaced, and those with the means and opportunity are emigrating as fast as they can.

‘

It is often said that idle hands are the Devil’s workshop, and given the events of the past week, the Devil is the only one hiring, and business is very good indeed

Cheta Nwanze is the lead partner at SBM Intelligence and heads the company’s research desk.

Job creation strategies

T

he job creation strategy for a state will be executed on the following fronts: Equipping job seekers with information and skills required to secure employment Job seekers in the state will be encouraged to register on the state government website; stating their qualifications, skills, area of interest, etc. This will amongst other things, enable the state to measure the magnitude of the unemployment problem.

The state will engage staff who will go through newspapers and online job adverts to extract vacancy information that will be fed into the database which will send automated SMS alerts to those on the database, based on their interest and qualification.

Training materials on CV writing and interviewing skills will be place on the site for their use, along with a listing of the top online job search engine. There will also be information on networking sites like LinkedIn. Users will also be encouraged to share information they have on recruitment exercise that are not advertised – a significant portion in Nigeria.

These will be communicated by SMS alerts to registered users just like the advertised openings.

Job seekers will also be encouraged to take free online open courseware offered by EdX and Coursera to enable them upgrade their skills and generally continue acquiring new knowledge while waiting for the job offers.

Empower people to start new businesses Efforts here will be directed at providing entrepreneurial and vocational training in a wide range of fields with the collaboration

OYEWOLE TOYIN

of local and foreign organisations identifying with the effort.

Efforts will also be made at providing information on business opportunities available in the state and directing people to sites like – www.smallstarter.com Seminars will also be organised to enlighten “would-be” entrepreneurs on the support available for them from government agencies i.e. BOI, etc. with the state standing ready to facilitate the process. Business incubation centres and mentoring relationships will be encouraged.

Attracting new businesses to the state The state will seek to position itself as the most favoured destination for local and foreign businesses wishing to set up operations in the country by addressing all the ease of doing business issues that concern investors.

The successful attraction of just a handful of large labour-intensive businesses can make a big difference in the economy of the state, by the multiplier effect that their operation can unleash.

The state government will also seek to directly prompt industrial development by aiming private sector collaboration to set up SMEs tied into the its natural resources endowment. The target been that at least one new industrial establishment (between N25 million to N150 million) is set up each month, such that there will be about 48 small scale enterprises scattered around the state by the end of the administration.

Empowering existing businesses to grow All trades in the state will be encouraged to

www.businessday.ng

Inflation has stubbornly remained double digit, wages are stagnant, and even those with jobs are no longer able to maintain the same standard of living.

The FG is unable to implement the new minimum wage which it agreed with the trade unions and passed into law, as it’s desperately in search for new source of revenue.

An increase in VAT from 5 percent to 7.2 percent has been proposed subject to the approval of a pliant National Assembly, and an increase in the price of petrol is sure to follow.

There is a general air of hopelessness and rage in the country, with no fixed target. As such, when the xenophobic attacks in South Africa were tossed into this febrile atmosphere, they served to focus the rage on something, and the riots which followed were actually far milder than they could have been given that they were largely uncoordinated.

The images of the violence circulated on social media tell us that the members of the murderous South African mobs and the larcenous Nigerian mobs couldn’t be bothered to hide their identities. The only persons arrested in Nigeria were those who hung around after the rest of the mob had dispersed.

It is often said that idle hands are the Devil’s workshop, and given the events of the past week, the Devil is the only one hiring, and business is very good indeed.

form trade groups, and these will hold biannual interactive sessions with government during which they will come up with specific measures they desire the government to put in place. The businesses will be encouraged to form clusters to acquire specialised equipment with the support of government.

Hospitals in the state can for instance can do this to eradicate the need for our people travelling aboard for overseas medical treatment.

The state on its part will use the bi-annual interactive sessions to communicate its expectations from each group and seek their support buy-in for state projects that concern the trade group.

In addition, the state government will expect the trade groups to help provide gainful employment for indigenes of the state, take their corporate social responsibility seriously and ensure individual members pay their taxes.

Attracting youths into diverse businesses Nigeria currently is not producing enough food to feed the teeming population, as evident by the large amount of scarce foreign exchange we expend on food imports and the high price that available food items attract into our markets.

This challenge should be viewed as a wonderful opportunity to recruit young people into the agriculture sector to help address the problem and retain in the country money that would have otherwise been spent on imports.

This could involve inviting local or international organisations that have made a name in the production of particular crops or

https://www.facebook.com/businessdayng

food item (poultry, aquaculture, etc.) to establish operations in the state with the agreement that a certain percentage of production will be produced by out-growers that will be trained and supported by the company.

Tourism The travel & tourism industry is one of the largest in today’s global economy, generating about $8 trillion and providing over 235 million jobs worldwide.

State governments need to actively collaborate with hotel owners, traditional institutions and other stakeholders to make the state an attractive destination for tourists.

Possible partners should be explored with experienced operators from countries like Morocco, Egypt and Kenya.

Mining Artisanal mining by its heavy reliance manual operation has the potential for massive job and wealth creation where properly regulated. We shall also pursue the establishment of precious stone cutting and polishing firms to add value to the mineral products and to stem the exploitation of our local miners by unscrupulous merchants.

@Businessdayng

Tuesday 17 September 2019

COMPANIES & MARKETS

BUSINESS DAY

15

COMPANY NEWS ANALYSIS INSIGHT

MARKETS

Strong demand for low risk assets see Nigeria’s AUM quadruple in 4yrs ISRAEL ODUBOLA

N

igeria’s assets under management (also mutual funds) expanded almost four times its size in four years buoyed by strong investor appetite for less risky funds with safe returns.

The country’s AUM of N231 billion as at August 19, 2016, has surged 250 percent to N807 billion as at August 16, 2019, a space of 48 months. Data sourced from the Securities & Exchange Commission (SEC) show.

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.

The primary advantages are that they provide economies of scale, a higher level of diversification, provides liquidity, but investors are required to pay various fees and expenses to manage the fund.

The strong growth in Nigeria’s AUM is driven by robust growth in low risk investment funds – money market, fixed income and

bond funds, which reflects the conservative investment strategy of investors packing cash to mutual funds as they believe Nigeria is somehow a risky market.

“Fund managers are aggressively marketing their debt and money market funds since equities are not doing well. This explains why less risky assets are appreciating faster,” said a Lagos-based analyst who preferred to be anonymous.

The fundamentals of Africa’s biggest economy, which is heavily dependent on crude oil for revenue and foreign exchange, is still weak. The economy is susceptible to shocks in

the global oil market, and even trapped in low growth cycle, making investors demand higher returns to hold naira assets.

This perhaps put Nigeria’s central bank in a tricky situation when it meets next week to either cut policy rate to spur growth or hike rate to attract foreign capital.

Money market funds led the pack of other asset classes as its portfolio value appreciated to N609.6 billion mid-August 2019, six times more than N115.9 billion it valued four years earlier. These short-term funds now accounts for 75 percent of Nigeria’s total AUM, as against with 50 percent four years back.

This significant appreciation is largely as a result of banks piling large chunk of customer deposits in government’s treasury bills to leverage high yield of around 14 percent to 18 percent at that time, which made lenders neglect their primary duty of financial intermediation.

However, Nigeria’s central bank has been aggressive to return banks to core lending function in recent times, by placing a cap on the amount lenders can invest in government securities and mandating them to loan out at least 60 percent of their deposits to real sector.

Taking the second seat is fixed income funds,

which has grown its portfolio value by 387 percent in the last four years. Bond funds tripled to N25.4 billion from N7.9 billion. Real estate funds remained almost unchanged at N45 billion. Ethical funds lost 6 percent of portfolio size.

Mixed funds is down by 8 percent, while equity funds came last with 23 percent reduction in asset value.

Since the start of the year, Nigeria’s AUM has appreciated by a quarter, even as low risk investment scheme expanded in double-digits. Bond funds expanded portfolio by most (76%) since January 2019, followed by fixed income funds (55%), money market (25%), real

estate (5%), with equityfunds bottoming with 12.6 percent decline in value.

The Nigerian equity market continues to print lackluster performance on account of weak investor confidence over limited growth potentials of the broader economy combined with softer crude oil prices and fears of global recession.

Analysts say not until the fiscal authorities come up with bold policy reforms that are deemed investor friendly, equities might not see significant upside in short to medium term. But some stocks have attractive valuation and holds potentials to deliver returns to investors.

CONSUMER GOODS

Big Nigerian consumer goods players more operationally profitable than SSA, EM peers ISRAEL ODUBOLA

D

espite myriads of headwinds confronting the Nigerian consumer goods sector yet big industry players are more operationally profitable than peers in Sub-Saharan Africa (SSA) and emerging markets (EMs).

Operational profitability, gauged by earnings before interest, taxes, depreciation and amortization (EBITDA) margin, gives investors a bird’s eye view of the current state of a company’s operations and profitability while avoiding getting into the weeds of individual expense lines.

A good EBITDA margin is generally the one that is a higher percentage, which shows the company is able to pay off its operating costs and still has hefty revenue leftover.

According to data compiled by Lagos-based investment firm, Chapel Hill Denham, Nestle Nigeria retained most fraction of profit from revenue in the Nigerian consumer goods space after paying off direct and operating costs.

Nestle’s EBITDA margin printed at 27 percent in the first half of 2019, and this compares with Dangote Sugar (25.2%), Dangote Flour (24.9%), Honeywell (20.3%), Unilever (14.5%), PZ Cussons (13.5%), UACN

(13.4%), Flour Mills (11.1%) and Cadbury (9%).

On average, Nigerian consumer goods firms retained 17.7 percent revenue as operating earnings, implying that every thousand naira generated as revenue, players’ EBITDA is roughly N170.

In Sub-Saharan and Middle East & North Africa region, Saudi-based Almarai with market value of $16 billion is most operationally profitable, retaining 32.8 percent of revenue as profit after settling direct and operating expenses.

This compares South Africa-based Avi (21.6%); Astral foods (16.1%), Tiger brands (11.1%), Pioneer Foods (10.1%); Ghana’s Fan

Milk (19%); Saudi’s Dairy & Foodstuff; Morocco-based Centrale Danone (-0.9%), bringing average EBITDA margin for consumer goods majors in the region to 16.2 percent below Nigeria’s 17.7 percent.

Consumer goods majors in emerging markets on average are able to keep 16.2 percent of top-line as operating earnings after meeting direct and indirect expenses.

Breakdown showed Chinese-based Want Want Holdings has the highest operating earnings relative to sales revenue of 24.7 percent.

Other top performers include Nestle India (23.3%), Indian-based Hindustan

Unilever (21.6%), Nestle Malaysia (19.7%), Nestle Pakistan (18.1%), Nestle Sri Lanka (15.8%) and Indonesia Indo Foods (15.7%).

Nigerian consumer goods players are currently struggling with growth since the broader economy slipped into recession which crippled household purchasing power.

Also the country’s tough business environment, decrepit infrastructures, Apapa gridlock and sluggish economic recovery are taking toll on players’ performance.

Analysts say government recent policies – freezing of dollar supplies for food imports, proposed hike in VAT rate from 5 percent to 7.2

percent and border closure could further compound players’ woes.

Since the economy exited recession two years ago, household purchasing power has not gained momentum reflective in the country’s declining income per head, which has propelled players to trade cash for credit to stay afloat.

Consumer goods firms are hit hard by the rout on the Nigerian equity market as their shares are trading at their lowest prices in more than three years. A gauge of consumer goods stocks has shed 30 percent since January 2019, underperforming the main equity index that is down 12 percent.

Editor: LOLADE AKINMURELE (lolade.akinmurele@businessdayonline.com) Graphics: Samuel Iduh

16

Tuesday 17 September 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

AVIATION

Aero resumes flight operations to Benin City IFEOMA OKEKE

N

igeria’s foremost airline, Aero Contractors has resumed flight operations to Benin City, the Edo State capital on September 16, 2019.

Aero, the first in Nigeria and West African aviation industry to operate a maintenance facility, which conducts C- Checks on both local and international airplanes, said that operating flights into the ancient city Benin is another boost for the airline, known for safe, efficient and satisfactory services.

A statement issued by Ado Sanusi, the managing director of the airline, stated that the airline would operate into Benin City four times a week; Monday, Wednesday, Friday

and Sunday.

Sanusi stated that the airline’s Boeing 737-500 aircraft would be used for the operations by nation’s oldest carrier known for efficiency, its goodwill and safety record.

Sanusi said Aero decided to resume flights to Benin in order to satisfy the yearnings of the people to have a reliable carrier.

He explained that for weekdays, the flight will depart Lagos to Benin City at 16:55 pm and out of Benin City to Lagos at 18:15pm, while on Sundays, it will depart Lagos to Benin City at 12:40 pm and out of Benin City to Lagos at 14:00pm.

The Aero CEO also noted that the airline intends to increase its flight frequencies to daily in the not too distant future.

“We are pleased to announce that Aero will expand

its route network to Benin City on Monday, September 16,2019, the home of the Oba of Benin, Omo N’Oba N’ Edo, Ewuare II to further increase the airline’s route. We are also resuming this operations to give people from the state opportunity to make Aero their preferred choice of the airlines operating into the city.

“Resuming operations on the Benin route will reinforce the strength and quality of our brand. We will continue to offer the most reliable, safe and secure operations, which the airline is renowned for,” Sanusi said.

The airline, which is repositioning its scheduled and fixed wing operations, is poised to offer the best flight service to travellers to the ancient kingdom.

L-R: Oreoluwa Oluwafemi, student, Covenant University and National winner; Teju Abisoye, acting executive secretary, Lagos State Employment Trust Fund (LSETF); Adeniji Segun Olufemi, permanent secretary, ministry of science and technology; Boladele Dapo-Thomas, permanent secretary, ministry of wealth creation and employment; Cecilia Akintomide, member, board of trustees, Covenant University; Leslie Douglas, students Covenant University and National winners, Enactus Nigeria, and Asanye Angel, at the pitch presentation in preparation for the Enactus World Cup in Lagos.

CSR

Stanbic IBTC shows commitment to education development OLUFIKAYO OWOEYE

S

tanbic IBTC Holdings PLC, a member of Standard Bank Group, has donatedanultra-modern laboratory to Abaranje Primary School, located in the Alimosho Local GovernmentAreaofLagos State in a bid to support education and learning in the state.

The facility donated by Stanbic IBTC consists of a block of 12 modern toilets – 10 for the use of students and two for their teachers’ use. It also includes a septic tank, borehole and overhead water tank.

Speaking during the handover ceremony at the school premises, Angela Omo-Dare, head, Legal Services of Stanbic IBTC, said that the donation was in line with the company’s Corporate Social Initiatives.

“The bank’s team was unanimous in its belief that this project was the most deserving of all

the interventionist measures we considered,” she said.

The CSI project was funded by the staff of the Legal Services Department of Stanbic IBTC, with contributions from their friends and family members.

Stanbic IBTC matched the funds raised by the Legal Services Department, which enabled the completion of the project.

Angela urged other corporate organisations to emulate Stanbic IBTC’s initiative and contribute towards the comfort and health of young Nigerians.

“We received much joy from the evolution of this project and a sense of pride from its completion. It emphasizes Stanbic IBTC’s core value of Teamwork.”

A director in the State Universal Basic Education Board of Lagos State, Oluwabunmi Morenikeji Oteju, thanked Stanbic IBTC for donating the toilet facilities and for initiating similar CSI initiatives across

primary schools in Lagos State.

She assured that the facilities would be put to effective use and properly maintained while Elizabeth Ogunmola Adebola, the Head Teacher; Abaranje Primary School II disclosed that the school had been sharing a block of two toilets with another school when its pit toilet got destroyed three years ago.

Stanbic IBTC is a Nigerian company which had its roots in Investment Banking & Trust Company PLC, formed on February 2, 1989, with Atedo Peterside as the first Chief Executive.

The company has since evolved into a full-service financial institution with 9 subsidiaries all headed by Nigerians.

Stanbic IBTC Holdings PLC has estimated staff strength of approximately 5,000, 99.9 percent of whom are Nigerians.

Additionally, eight of Stanbic IBTC Holdings PLC’s tenmember board is Nigerian.

L-R: George Ihenacho, personnel director, Michelin Nigeria Plc; Sunday Hart, commercial director; Chioma Alonge, marketing director, and Michael Okoko, finance director, at the launch of Michelin Pilot Sport SUV Tyre, in Lagos

AUTOMOBILE

R.T Briscoe records 18% growth in revenue in 2018 ISRAEL ODUBOLA

R

.T Briscoe, a Lagosbased motor dealer, saw revenue increase by almost a fifth in full year 2018, according to the numbers in its earnings report filed with the Nigerian Stock Exchange.

The company realized revenue worth N5.2 billion for the period ended December 31, 2018, 18 percent more than N4.4 billion generated in the preceding financial year.

Breakdown of revenue showed that sales of goods which accounted for 90 percent of top-line, appreciated 21 percent to N4.6 billion in the review year, even as rental income from investment properties almost quadrupled to N23.5 million. R.T. Briscoe saw declines in proceeds from

services segments (3%) and facility management (12%).

The company’s operating earnings rebounded to positive territory (N100m) after incurring operating losses worth N430 million in the preceding year, driven by 29 percent growth in other income and 6 percent decline in administrative expenses.

A closer look at the numbers showed that the reason the firm incurred losses in full year 2017 and 2018 was as a result of its huge finance costs in excess of N2 billion.

However finance costs was down by 16 percent in the review year to N2.3 billion, while finance income reduced nearly by half, trimming net finance costs by 16 percent.

Given the reduction in borrowing costs, the firm was able

to cut net losses by 31 percent to N2.2 billion from N3.2 billion in the previous year.

R.T Briscoe sells and services motor vehicles and industrial equipment such as generators, compressors and forklifts.

The company further provides property development, project management and real estate services through its affiliated company Briscoe Properties Limited.

In attempt to give back to the society, the group donated N550, 000 in 2018 to charitable institutions, almost three times more than N200, 000 given last year. Over 60 percent of the company’s shares are held by the investing public, with Mikeade Investment Limited and Classic Motors Limited having a combined 39 percent direct stake.

www.businessday.ng

L-R: Oluseyi Olanrewaju , chief financial officer, Vodacom Nigeria/chairman, Chartered Institute of Management Accountants UK (CIMA), Nigeria Branch; Amal Ratnayake, CIMA Global president, and Patricia Duru, chief financial officer, Interconnect Clearing House, Nigeria, at the CGMA Africa Conference in Capetown, South Africa recently.

Atiku Bagudu, governor of Kebbi State (m), with Vice President Yemi Osinbajo (r), and other dignitaries, at the inauguration of the National Micro, Small and Medium Enterprises (NMSME), in Kebbi State.

https://www.facebook.com/businessdayng

@Businessdayng

Tuesday 17 September 2019

BUSINESS DAY

AVIATION GUIDE

in association with

How Dana Air’s newly acquired 737-300 will boost its operations - Mbanuzuo Obi Mbanuzuo is the chief operating officer of Dana Air. In this interview with IFEOMA OKEKE, he speaks about how Dana Air’s newly acquired 737 aircraft will boost the airline’s operations.

Can you take us through the journey of acquiring your new 737-300 aircraft? Did you lease or fully pay for it? n 2018, last year, Dana Air celebrated 10 years of operations and we have been talking about fleet renewal. We were always asked what we are doing about renewing our fleet. There has always been one impediment or the other starting from the economic downturn some years ago. So those things affected us. However, we are always slow and steady in Dana Air. The aircraft is fully owned and operated by Dana Air, the aircraft is not leased. So the pilots are our pilot and the cabin crew are our cabin crew. The journey has not been easy. It has been one of perseverance and great support from our senior management team such as the chairman, the MD and the financial backers both at home and abroad have been very supportive. This is just the first of many. I can with confidence say that before the year runs out, you will see more 737s in Dana and fully operated by Dana Air. We are still operating the McDonald aircraft but over time, we will have more aircraft on our fleet. Our second McDonald, which went on heavy maintenance, will return to the country in few days.

What destinations will go be going with this new aircraft?

We will not give that information yet. You will hear about our new destinations as time go on.

Slow and steady, we will evaluate the routes and see which to go into.

What is the capacity of the new aircraft?

The new aircraft has capacity of 143 seats. We have not completed the configuration but it may have eight business class seats or 12.

What is the cost implication of this on Dana Air? The journey to acquiring this aircraft has been long. There is a financial cost but I cannot

17

I

Obi Mbanuzuo

quantify it to you but it was a burden on Dana Air, which is why when we were asked about route, we had to also say the airplane will be deployed where it will make the required returns.

We have to make sure the airplane becomes profitable for the airline.

You once said that most Nigerian airlines use wrong equipment for the right route. With this acquisition, will you say Dana air is using right equipment for the right route?

Every route is different. I can tell you for example that for the distance we fly in Nigeria, the Turbo prop is the best equipment available.

If for example, in the morning, all airlines are going to Abuja and total numbers of 700 or 800

people are going there in the morning, they need a bigger aircraft. So, right now, the 737 size aircraft is perfect for that kind of passenger number. It may not be the most cost effective for that distance but in order that you don’t do two flights at the same time, it is the best in terms of the aircraft capacity. The biggest Turbo prop will carry 70 passengers. Rather than we putting two air planes in the air at the same time, this is the best airplane.

The reality now is that Nigerian airlines cannot lease aircraft; they must have to buy aircraft?

Yes this is the reality, even though the leasing can be structured in a way that it is not a wet lease.

Looking at the country risk, do you think it is advantageous to lease aircraft?

Yes, it depends on how the lease is structured. There are different kinds of lease. The lessors will lease based on individual circumstances. Some people run us down outside the country, even when we have done nothing bad.

So, each individual case will be assessed on its own merit.

You did say you are expecting more 737s and having operated the MDs for a while now.

Are you getting your pilots and crew type rated on the new aircraft you are acquiring?

The 737 aircraft is the most popular aircraft in Nigeria. So, we have enough Nigerians type rated on the aircraft and we are training more.

We have about 45 to 50 MD80s licenced engineers in Dana Air and we just carried out full training for all of them. So, they are all rated.

With the new acquisition, how many aircraft does Dana Air now have?

This currently brings our aircraft fleet to six and by the end of the year; we should have eight or nine. Two are currently on maintenance and very soon, one will return from maintenance.

Adejobi appointed Mainland Cargo General Manager/Chief Executive Officer, NAHCO

L

eading clearing, freight forwarding and total logistics Services Company, Mainland Cargo Options Limited (MCO), a subsidiary of Nigerian Aviation Handling Company (NAHCO PLC), has announced Aderemi Adejobi, the new General Manager/CEO of the company.

Adejobi holds a Master of Finance degree from the Glasgow Caledonian University, United Kingdom, a Master of Business Administration (MBA) with specialization in Marketing from the University of Lagos, a Master of Geographic Information Systems (MSc) degree from the University of Ibadan and a Bachelor of Science (BSc) degree in Economics from the same University.

Until his present appointment, Adejobi was the Chief Executive Officer, Speedcraft Logistics Limited.

The new GM started his career as Customer Services Manager with the Standard Trust Bank in 1997 from where he moved to City Express Bank in 2001 as the Branch Manager. He was Branch Manager, Access Bank from 2006 to 2007 and Area Manager, Sterling Bank, from 2007 to 2009.

Between 2009 and 2010, Adejobi was Chief operating Officer, GS Microfinance Bank from where he moved to Tesco Equipment as Director, Operations and Business Development.

From March 2010 to January 2014, Adejobi was the Executive Director, Finance and Business Strategy, New Energy Services Group of Companies.

He had brief stints as Consultant Project Manager, Pinnacle Oil & gas Limited and as Consultant Group Chief of Business & Operations (CBO), Chisco Group of Companies between May 2014 and December 2015.

In March, 2016, he was appointed Consultant Chief Operating Officer (COO) of the National Clearing & Forwarding Agency (NACFA) and in February 2018, he got appointed as the Chief Executive Officer, Speed craft Logistics Limited.

Ibom Air delivers its 50,000th passenger

O

n Tuesday 10th September 2019, exactly three months and a day since it began commercial flight operations, Ibom Air carried our 50,000th passenger.

It was a pleasant surprise it was when at the ‘count up’ during the boarding of flight Z4100 from Uyo to Lagos, passenger number

50,000 turned out to be first time Ibom Air traveller, Ruth Nsaka.

Nsaka was ‘ambushed’ by an excited team of Ibom Air Executives led by George Uriesi, Chief Operating Officer of the airline. She was handed a ’50,000th Passenger Certificate’, which entitles her to a free return ticket on any of Ibom Air’s routes. She was also upgraded

www.businessday.ng

to our Premium Economy cabin for her flight and treated with lots of Ibom Air goodies.

Completely blown away by the surprise, Nsaka said “I can’t believe this. This is my first flight on Ibom Air. I have heard so much about the airline and its services and looked forward to this first experience. And now this!”

George Uriesi, Ibom Air Chief Operating

https://www.facebook.com/businessdayng

Officer, said “this is one of the ways in which Ibom Air will be giving back to our customers and the communities in which we operate. We are excited to carry our 50,000th passenger within three months of operations and heartily congratulate Nsaka for being ‘the one’! We are thankful for the support of our passengers and thoroughly excited about the future.”

@Businessdayng

18

Tuesday 17 September 2019

BUSINESS DAY

Media business

Expectations as MultiChoice deepens Africa’s narrative quest Daniel Obi

A

frica has for many years endured negative image both locally and internationally. Some analysts attribute this to prejudices of Western countries that, through their powerful global media system exaggerate negative issues in the African continent and play less on their own bad sides.

However, most African economies have done little to change the unacceptable perceptions. They are either beclouded in ignorance of the risks of poor image or correcting it is not their priority as they don’t understand the relationship to economic growth. Good or poor reputation has correlation to level of develop-

ment.

Branding and image building are about consistent story telling through various platforms such as books, films, documentaries and souvenirs. Europe and Western countries have used this approach successfully but Africa is yet to fully embrace this approach.

MultiChoice intervention MultiChoice which has being in the business of communication understands the significance of using messages as change agents. These messages are really portrayed through film and television industry which are particularly relevant as tool for shaping the African narrative.

The company which has operated for 26 years in Nigeria therefore started a journey last year to re-write Africa’s story. It believed

that repackaging Africa cannot be done successfully without training and equipping Africans to tell authentic and well-produced stories.

Therefore, the organisation last year October started a yearly MultiChoice Talent Factory (MTF) – a multi-tiered Corporate Shared Value, CSV project in partnership with School of Media and Communication of LBS to ignite Africa’s creative industry. In the first edition, it selected and trained 20 young men and women from Ghana and Nigeria out of 3108 applicants.

After one year of honing their skills, the first set of MTF students graduated, last week Thursday thereby increasing the pool of world-class talent within the industry ready to push Africa’s course. It is said that the exercise is also carried out in

two other African countries.

The CEO of MultiChoice Nigeria, John Ugbe told the students that the graduation marked an important day in their lives as it is a new beginning of the journey into their future as the next generation of African storytellers.

“You are now part of a small but growing class of young, creative professionals equipped to tell Africa’s stories through authentic lenses while recognising and embracing her growth possibilities and opportunities” Femi Odugbemi, MTF West Africa Academy Director, described the training as a landmark programme, noting that the students aptly demonstrated their skills as filmmakers.

“Over the course of the programme, the students expertly honed their raw tal-

L- R: Charles Nnochiri - Head marketing PZ Cussons; Tosin Adefeko - Managing Director, AT3 Resources Limited; Joshua Ajayi Convener WIMCA; Omobolanle Victor-Laniyan, Head Sustainability Access Bank during the WIMCA 2019 conference themed Better the balance in the workplace; Equity or Equality.

ent into professional skill.

This is the essence of the MTF Academy - giving upcoming talent the chance to hone their abilities thereby increasing the pool of available talent and world class professionals in the industry. This graduation is therefore a landmark moment both for the students and the programme,” Odugbemi said.

Also speaking, Ikechukwu Obiaya, Dean of Media and Communication said the training is important in building strong foundation for the evolving industry. He agreed that if you are going to change the quality of film, you must change the quality of film makers.

In her speech, Lagos State Commissioner for Art and Tourism, Shulamite Adebolu said her desire is to create a one stop shop in the ministry to streamline regulation of films.

Most of the students commended MultiChoice for the opportunity to horn their skills. Minwon Metong from Nigeria said the training was another step of growth and it offered him the opportunity to deeply understand film as medium of change. Tochukwu Nwabueze said he was enlightened and learning more about film industry. Salma Saliu said the training was eye opening. Dumevi Irene Yaamoakoa from Ghana said now she has improved on how to tell stories.

Students who excelled during the programme were rewarded with scholarships and grants respectively.

The 2018 set of graduates produced two films while undergoing the programme.

The first, Life of Bim, will air on Africa Magic Showcase (DStv channel 151) on 21 September, while the other, Dreamchaser, will air on 28 September on the same station.

Alive & Thrive selects Maximedia Global Limited as its media agency

A

live & Thrive, a global nutrition intervention initiative focused on prevention of illness, ensuring healthy growth of children and well-being of mothers has selected Maximedia

Global Limited as its media buying agency.

According to a statement, Maximedia Global Limited came tops in multi-agency pitch process that started in December 2018 and involved other renowned media buywww.businessday.ng

ing agencies. By this selection, Maximedia Global will be responsible for proffering media strategy in promoting and amplifying the various project type initiatives and campaigns of the organisation aimed at promoting ear-

ly Initiation of Breastfeeding, Exclusive Breastfeeding, and Dietary Diversity amongst infant and young children across major electronic platforms across Nigeria.

Managing Director, Maximedia Global, Femi Adefowo-

https://www.facebook.com/businessdayng

kan in the statement expressed delight on the win and stressed that the agency would leverage its creative strategies, robust media network and expertise to deliver exceptional value to Alive and Thrive’s campaign initiatives. @Businessdayng

Universal McCann Nigeria restructures, appoints Austin Efienamokwu as new CEO

T

he turn-around efforts at Universal McCann Lagos (UM) has finally climaxed with the appointment of Austin Efienamokwu as Chief executive Officer in a move industry sources termed a major generational leadership shift.

Austin Efienamokwu, formerly Media Director and Business Head at Vizeum Nigeria, a subsidiary arm of Media Fuse Dentsu Aegis Network is a holder of MBA from Ladoke Akintola University, Ogbomosho and a graduate of Quantity Surveying from Yaba college of Technology.

The new agency head started his media advertising career with MediaReach OMD as a management trainee and rose to become maiden country manager of the Cameroun office and later proceeded to work with Capital Media, a media agency of DDB Lagos as its Strategy Director. He however resigned his position at the media agency to take up appointment at the client’s side with Bharti Airtel Nigeria.

Spectranet 4G LTE enhances customer service footprint, opens new experience centres

F

oremost internet service provider, Spectranet 4G LTE has opened two new experience centres in Lagos as part of its strategy to set up an arm’s reach service infrastructure for its valued customersThe new Spectranet Experience Centres are situated strategically within the neighbourhood of Opebi on the mainland and Awolowo road, Ikoyi on the island.

The new Spectranet Experience Centres ensure a pleasant and engaged experience for the customers including a selfie corner. Ergonomically designed for efficient interactions between the Spectranet staff and subscribers, the design elements of the Experience Centres provide an uplifting experience to the customers.

Touching on opening more centres against the backdrop of the prominence of digital medium based customer engagement, Chief Executive Officer Spectranet 4G LTE Ajay Awasthi said “we sell high speed internet modems and routers and it is critical to have a face-to-face interaction with the customers in case the devices develop any issue.

Tuesday 17 September 2019

BUSINESS DAY

19

Branding Lack of consumer trust, malpractices in fuel sales hampering development of downstream sector – Enyo CEO Abayomi Awobokun, is the CEO of Enyo Retail and Supply. Awobokun who headed Oando’s downstream business before joining Enyo has always been enthusiastic about Nigeria’s downstream sector and believes that there is a lot that can be done. Since joining Enyo, the company has introduced innovations to delight consumers such as the launching of LPG called “Superior Liquefied Gas (SLG)” with the motive that customers can buy gas without having to pay for the cylinder as well. In this interview, Awobokun speaks more about the industry and urged Nigeria to join rest of the world to automate downstream operations. Excerpts How old is Enyo Retail and Supply and what has been your success story so far? nyo Retail and Supply has been in existence for over two years and I can tell you that it has been very rewarding. We have built a system that benefits from our customers’ trust and formulated great opportunities that cater to the needs of our customers. From the propriety technology deployed for our operations to the matchless services that we create, we show that we are not your average fuel station.

We have in this period created various unique services to both our employees and customers that I am very confident that we are headed for a massive 2020.

Currently, we have over 700 dedicated staff and with presence in 14 states across Nigeria. We recently launched our brand of LPG called “Superior Liquefied Gas (SLG)” with the motive that customers can buy gas without having to pay for the cylinder as well. I take the training of staff very crucial and so Enyo Retail and Supply dedicates one hour weekly to train all its staff on Health Safety and Environment (HSE). With over 10 years of experience in the downstream industry, I believe that with the help of my board and team, I will be able to position Enyo Retail and Supply on the regional map.

What unique products and services differentiate Enyo from other players in Nigeria’s downstream sector?

Our Diesel2Door, Vehicon, and MechTech services are distinctive and are borne out of conscious awareness of our customers’ needs. Individuals can buy diesel from the comfort of their homes with Diesel2Door. While you refill at our gas stations, Vehicon offers you free vehicle diagnostics and other maintenance services are carried out as well. This service was created to appreciate customer loyalty and imbibe the values of vehicle diagnostics into our people. We realized that Nigeria’s downstream sector cannot grow without investment in education and training. For this reason, we have sent selected mechanics overseas for extensive training through our mechanic training

E

Abayomi Awobokun

academy ( Mechtech).

How would you describe the downstream oil & gas industry in the country? Is it a viable business to venture into it concerning the harsh environment?

Like all sectors of the Nigerian economy, the downstream is not

‘

Our strategies and efforts for expansion and sustenance will always revolve around the customer and never about competition and competitors

‘

www.businessday.ng

free of challenges. The work done by agencies such as the DPR and the NNPC is greatly impacting the industry’s growth but , there’s still a lot of work to be done. However, all stakeholders must take responsibility for promoting the speedy growth of the industry. At a time when the rest of the world is automating downstream operations, Nigeria should do the same.

Challenges such as consumer trust, malpractices in fuel distribution and sales can only be fixed by the operators in the downstream sector and these are issues that hamper the development of this industry. Let me answer your second question by saying that there’s no simple or seamless business. Any individual who intends to go into any business must first conduct feasibility tests and be sure he can withstand the risks and challenges involved in doing such business.

Being a technology-focused brand, what investments are being made to ensure Enyo spearheads the digitalization of Nigeria’s downstream sector?

Partnerships with other key players in the petroleum industry who share same vision and core values with us will get us to that

https://www.facebook.com/businessdayng

point. Digitization doesn’t happen overnight. We are determined to be Nigeria’s first digitally smart and self-operating fuel station, such that 24/7 consumers can refill their vehicles all by themselves.

It has been over a year since the ‘Fuelled by Trust’ initiative was launched, how has this affected revenue and turnover?

Our turnover and revenue after we launched the initiative were remarkable. I think the Fuelled by Trust initiative should be adopted by other downstream operators.

It revealed to us that Nigerians are wary of the accuracy and measurements of pump litres in fuel dispensation across Nigeria.

At the moment, we are turning in over 1500 transactions a day – and I doubt how many competitors get that much patronage. We had invested a lot of resources into our machinery before the initiative propelled and to know that those efforts were not unexploited is indeed satisfactory.

How do your various business brands respond to the growing consciousness of accessible energy products among the people?

Well since we have positioned ourselves to be customer-centric, it is relatively easy for our business brands to respond to the needs of the people we serve. In a society where prompt and regular vehicle diagnostics are not regular, we have offered Vehicon, a service that provides access to free vehicle diagnostics. Again, Individuals can buy diesel from the comfort of their homes or offices with “Diesel2Door”.

What steps has Enyo taken to give back to society?

At Enyo Retail and Supply, CSR opportunities and activities are taken seriously. This is because those are avenues for rewarding our loyal customers, showing that we are a socially responsible business and also a form of strategic investment for us. Enyo Retail and Supply has established a Science, Technology, Engineering and Maths (STEM) centre for children in partnership with Cc-Hub (CoCreation Hub) which is conducive for learning about robotics, 3D printing, everyday technology, solar energy, and its uses. At Enyo, @Businessdayng

we are very particular about mental and skill development and so want to equip tomorrow’s leaders and entrepreneurs. We also have been sending selected Nigerian mechanics overseas for training.

By next year, we hope to enlarge our CSR avenues just as much as our business expands.

What is your take on illegal practices in the downstream sector and how has it affected the growth of this sector?

Illegal practices in the downstream sector affect us all but those of us who are players in the industry can do a few things to curb it. These menaces make it difficult for our businesses to thrive and hinder investment.

However, it is somewhat a relief that the Department of Petroleum Resources (DPR) has launched a device, Digital Seraphin Can, to help ensure accuracy in dispensing of petroleum products across the country. I believe this is the right step as we cannot continue with analogue operations and inspections. Operators too owe it a duty to themselves, the industry and their loyal consumers to stop some of these illegal practices that damage the sector.

So many notable brands in the downstream oil & gas sector in Nigeria are either going into extinction or struggling to survive.

What effort/ strategies are you putting in place to ensure your brand remains relevant?

As all businessmen know, it’s the customer that keeps you in business. Our strategies and efforts for expansion and sustenance will always revolve around the customer and never about competition and competitors.

Training the team to ensure everyone remains abreast of the endeavours in the industry, expanding the businesses and CSR opportunities, creating more room for digitization and opportunities that set us apart are the key plans, for now, that will guarantee we stay relevant in the industry.

Where do you see Enyo Retail and Supply in the next five years?

In the next five years, I perceive Enyo Retail and Supply as the top of mind for a digitally smart gas station in Nigeria. This is the ultimate dream.

22

BDSUNDAY

Sunday 01 September 2019

Sunday 01 September 2019

BDSUNDAY 23

22

Tuesday 17 September 2019

BUSINESS DAY

EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

‘Damaging policy of tertiary institutions threaten graduates competitiveness’ KELECHI EWUZIE

I

ndustry professionals have decried the recent policy by tertiary institutions in Nigeria to accept less than 50 percent pass mark as entry requirement into universities, polytechnics and colleges of education saying that this decision will foster mediocrity and hamper competitiveness.

Folake Solanke, a senior advocate of Nigeria says authorities must be partially blamed for poor academic performance of graduates adding that mediocrity should not be encouraged; rather students should be encouraged to aspire to reach academic Utopia.

In her address as chairman of the occasion at the 20th Mike Okonkwo annual lecture titled: ‘Justice as an instrument of enduring peace in Nation building’ at Muson Centre, Lagos says a situation where institutions accept 40 per cent as pass mark was condemnable and unacceptable.

L-R: Adetola Juyitan, National President, Junior Chamber International (JCI) Nigeria; Bamidele Abiodun, Wife of Ogun state governor; Lauretta Onye, honoree and Olympic gold medalist and Oluwatosin Ligali, chairperson, Ten Outstanding Young Persons (TOYP) programme, during the unveiling of honorees for the Ten Outstanding Young Persons (TOYP) initiative by JCI Nigeria held in Lagos recently.

Solanke opines that to improve the quality of graduates and make them globally fit for the job market, entry-level requirements into tertiary institutions must be pegged at 50 per cent.

Akachi Ezeigbo, chief examiner of the essay competition

expressed concern about the poor reading culture of Nigerian youths and growing menace of plagiarism in the country.

According to her, “The most urgent in this list of problems is the alarming incidence of plagiarism at

BusinessDay, Babcock University to partner on robust intellectual engagements KELECHI EWUZIE

B

usinessDay in furtherance of its effort to build a stronger industry partnership between organisation and the Tertiary institutions in the country paid a Business visit on the management of Babcock University, Ilishan Remo, Ogun State under the leadership of Ademola Tayo, vice-chancellor.

The visit was to formally introduce the media house to the vice-chancellor and explore robust intellectual opportunities with the institution.

Oghenevwoke Ighure, executive director, strategy, innovation and partnership, BusinessDay who led the delegation, said the Newspaper is the leading business daily in the whole of West Africa and a ready resource for organisations and decision makers in the country.

Ighure stated that having already established working partnerships with some leading firms within and outside Nigeria, BusinessDay is now desirous of cementing a mu-

tually benefiting partnership with the University.

Ighure noted out that BusinessDay newspaper is the leading point of reference when it comes to in-depth reportage about the economy and education, adding that the collaboration between both organisations present an opportunity for undergraduates students from Babcock to tap into the huge resource that the newspaper offers to aid their learning.

He further stated that areas of partnership would include distribution of copies, internship opportunities for undergraduates from the university and media coverage of the university events.

He also proposed that the university should subscribe for copies of the Newspaper for students and regular adverts placement on the newspaper.

Ademola Tayo, vice-chancellor, in his welcome speech says that being a pioneer private University in Nigeria since 1999, Babcock has continued this legacy of upholding a cutting-edge excellence in education.

Tayo said the University is determined to contribute to seek ways to stem mediwww.businessday.ng

cal tourism adding that the institution had recorded over 95 per cent success in open heart surgeries and orthopedic treatment.

According to him, “We have done over 300 successful open heart surgeries since 2015 when the Tri-state Heart Centre started. We have a 95 per cent success rate. In orthopedic, we are doing total knee replacement surgery and spine surgery,” Tayo stated that presently the university have all its academic programmes fully accredited.

The vice-chancellor further assured that as a citadel of higher learning, it is open to collaboration in the areas of resources, human and infrastructure, to make the idea a success.

He urged the BusinessDay delegation to present a workable proposal so both organisations can work out an arrangement to make the partnership mutually rewarding.

The vice-Chancellor was joined by the Iheanyichukwu Okoro, professor of Anatomy and surgery and deputy vice chancellor, academics, Babcock University.

the secondary school level.

On account of their youthful age, many students are yet to understand that they must exercise a great deal of restraint in their use of copyrighted materials, some students lift materials and present them as their origi-

nal work, others combine bits and pieces from a variety of sources to disguise the origin of the materials”.

Ezeigbo while commenting on the performance of pupils at the essay competition observed that a careful scrutiny of each entry submitted for

the competition continues to reveal the problems of the nation’s educational system that we must take steps to tackle in order to ensure global trust in the quality of students we produce.

Femi Falana, senior Advocate of Nigeria (SAN) in his lecture at the event noted that since law alone cannot curb the crisis of unequal criminal justice in the country, it is important that Nigerian lawyers appreciate that Nigerian cannot guarantee law and order under the peripheral capitalist system being operated by the government.

Falana opines that instead of relying on market forces as dictated by the neoliberal elements in the government, the State should empower the Nigerian people to control the economy.

According to him, “The country will not know peace without economic empowerment of the people” Highlight of the event was the presentation of prizes to winners of the 16th Mike Okonkwo National Essay competition for Senior Secondary School students.

Osinbajo to chart path for Africa’s development at Osun state university convocation KELECHI EWUZIE

T

he vice president of the Federal Republic of Nigeria, Yemi Osinbajo will suggest critical roles Nigeria need to play towards achieving all round development in Africa at the convocation lecture of Osun State University.

Osinbajo who will be delivering the convocation lecture titled “Six decades of Chequered Nationhood: Nigeria still holds the key to Africa’s development at the event scheduled for Saturday 21st September at the Olagunsoye Oyinlola auditorium on the main campus, Osogbo.

Labode Popoola, ViceChancellor of the University while speaking at the pre- convocation press conference to announce the 8th convocation ceremony of the University in Osogbo.

Popoola says the university is committed to fulfilling the mission of creating a unique institution, pursuit of academic innovation, skill-based training and a tradition of excellence in teaching, research

https://www.facebook.com/businessdayng

and community service.

According to him, “The institute is set to become a center of excellence in postgraduate teaching, research, and societal development in all areas of sustainable development” Giving a breakdown of the convocation, Popoola says the university will graduate one thousand eight hundred and fourteen students with forty-nine of them earning first-class honors degrees in various academic disciplines.

According to him, “The one thousand eight hundred and fourteen students comprises nine (9) students with pass, one hundred and ninety four (194) students with a third class, eight hundred and ninety two (892) students with second class lower, six hundred and seventy (670) students with second class upper, and forty nine (49) students with fist-class degrees.

This brings the total number of first degree graduates of the university to Nine thousand nine hundred and fifty-five (9,955) since its first graduation ceremony in 2011.

“We have over the last one year deployed series of success-driven techniques @Businessdayng

that have continued to yield positive results as evident in our numerous achievements.

Part of our success story in the establishment of the Global Affairs and Sustainable development Institute (GASDI), which was approved by the Senate of Osun State University in October, 2018 with a mandate to address issues of sustainable development in unique, creative and efficient ways that can fast-track the attainment of the SDGs and unleash development in different communities.

Aside the convocation lecture, other activities for the 8th convocation include honourary doctorate degree to be conferred on Rauf Adesoji Aregbesola, Federal Minister of Interior; Jim Ovia, Chief Executive Officer of Zenith Bank; Oyenike Monica Okundaye; chief executive officer of Nike center for Arts and Culture and Wale Babalakin, Chairman of Bi-Courtney Group of companies, Popoola further said that the recent birth and approval of two faculties and new departments in the College of Agriculture is also worthy of mention.

Tuesday 17 September 2019

BUSINESS DAY

23

EDUCATION How to prepare for a new school session OYIN EGBEYEMI

T

he Summer holiday is over! Believe it or not, what seemed like a never-ending 10 – 12 week break from school is gone. Children will soon return to early morning wake up calls, strict schedules, structured learning activities and limited play time.

It is commonly said that it takes about 21days to break or create a habit…So now that the children have been out of school for over 70 days, saying that getting them fully prepared for a new session is a challenge may be a bit of an understatement. Parents may find themselves getting a little anxious around this time, especially those who have children that are moving to new schools. Children may find prospect of a new session exciting or nerve-wracking,

depending on their disposition, age and stage of learning.

However, a few key things need to be done to ensure that children start the session properly and are not left behind or out of sync with school activities early on.

Here are a few tips that might help prepare children for the new session: Ease into routine.

Given the amount of time that children have spent out of school over the summer holiday, it is only natural that their bodies may have gone out of sync of the daily routine during term time. Over the summer, maybe they would have had a few lazy days, been waking up a little late or going to bed whenever they want. This is okay for their restful period.

However, to make it easier for children to start to wake up early when school starts, parents need to enforce earlier and stricter bedtimes during the days approaching the start of the term. This way, children’s body clocks start to readjust back the routine of waking up earlier and it becomes less of a chore when they eventually

resume school.

Modify activities.

Over the summer holiday, children would have spent quite a lot of time resting and recovering from their hard work during the previous session. While rest is important, it is also imperative that children begin to get more mental stimulation ahead of the start of the term. Mentally engaging activities such as reading, writing and solving puzzles will provide that kick that would wake them up and prepare them for the work ahead of them when the term begins.

Overcome first-day Jitters.

The first day of school could be daunting, especially for children who move to a new school. There may be some fear of the unknown, unclear expectations, new friends to make, new academic challenges, new teachers, and so on. To overcome this, it is advisable for children to take some time to reflect on the previous session with a view of what is to come in the new session. They should think as far back as their first day up

until the last day of the last term; taking note of all their achievements in-between.

This would serve as a good confidence boost that reminds them of the challenges they overcame in the past; and therefore prepares their mindset for those ahead.

Dig up the School Calendar.

After a long break from school, parents and children may forget the new term’s activities. In order to adequately prepare, parents should retrieve the school calendars (if they do not have them already), review them and prepare for activities holding over the course of the term, some of which may require advance planning or purchase of special items.

Go to the Doctor.

To ensure that the children are physically prepared for the new term, it is important that parents take them for a general check up with their doctors.

Oyin Egbeyemi is an executive administrator at The Foreshore School, Ikoyi, Lagos.

Pupil displays dexterity to emerge winner of MTN Nigeria kiddies hackathon KELECHI EWUZIE

Y

u s u f Mo l u m o, a 14-year-old, pupil of Heritage global academy, Ikorodu Lagos has emerged as the winner of the 2019 MTN mPulse Kiddies Hackathon.

Molumo whose QuizMe was adjudged the best in a keenly contested final round of competition which featured other created Apps by pupils across Lagos.

The maiden edition of the hackathon was organised by MTN Nigeria with the aim of

creating the Next Generation of Innovators and Inventors.

Speaking after he was announced as winner, Yusuf Molumo says QuizMe is an educational aggregator app that doubles as a mini-encyclopedia and grants young people access to general interest information about Nigeria, such as its states, capitals and slogans; data on key Nigerian and foreign entrepreneurs through short and fun quiz questions.

Mazen Mroue, chief operating officer, MTN Nigeria while speaking on the hackathon, says the Kiddies Hackathon is

www.businessday.ng

part of MTN Nigeria’s robust contribution towards growing the capacity, competence and creativity of our children.

According to Mroue, “In an increasingly dynamic and innovative world, we recognise the importance of empowering our youngsters with the tools, resources and opportunities they need to create the solutions that will guarantee a brighter future for our great country.” Mroue further stated that participants were provided with work tools, granted access to the hackathon’s portal and received expert counsel from mentors drawn from Nigeria’s

FSTC- PTA clear air on N50, 000 hostel fee KELECHI EWUZIE

P

arents Teacher Association of Federal Science and Technology College, Yaba, Lagos has cleared the air pertaining the alleged N50, 000 levy imposed stating that no student would be sent home on account of not paying the N50,000 donation for the building of a new hostel.

Olisa Anene, Parents Teachers Association, PTA chairman of the college refuted the claims by some parents that the said amount was imposed stressing that money was a willing donation made by the parents to address the growing challenge of accommodation for pupils.

Anene while briefing Journalists at a press conference held at PTA secretariat, Lagos said the N50, 000 was the minimum levy approved the association to build a hostel that would contain over 1000 pupils.

According to Anene, “Never did we say any child would be sent out if his or her parents don’t pay the N50, 000 donations for the school building. “Mind you the money that they said was imposed on them was a

collective decision by the PTA and it is the minimum.

Anene reaffirmed that it was a general decision of the parents that the amount should be spread across the three terms since parents hands are not equal.

“So, it is only few people that were not in attendance that are agitating. This is a project that we felt would address the challenge of space in the school. And we took the decision to the Federal Ministry of Education, Abuja and they applauded us for the initiative”, Anene said.

Emma Onyenuche, chairman, building committee while commenting on the issue opines that the few parents agitating against the notable hostel accommodation intervention of the PTA were either misinformed or been manipulated because it was consensus agreement.

Onyenuche observed that some parents find it difficult to come for PTA meeting and equally blamed parent inability to read the newsletter given to the students, for the controversy on the payment.

Mike Oni, a parent and civil engineer further reiterated that the move to build a new hostel was entirely the decision PTA.

COTS enrolls 25,000 children in schools, vocational training

startup scene on applying tech knowledge to tackling real life problems.

The top 15 projects were selected and invited to the grand finale, with the top five winners pitching their ideas.

The three best ideas were rewarded with various prizes, including shopping vouchers worth N100, 000, laptops, headphones, school learning materials and three months mentorship programme with TechQuest STEM Academy.

The competition is consistent with MTN Nigeria’s commitment to championing innovations that will equip children and adequately prepare them for the future.

In 2018, the company unveiled mPulse, a new proposition for teens and tweens designed to equip kids between ages 9 and 14. The mPulse package comes with a voice plan and a fun, educative website which hosts a wide variety of courses and study aids to help children from Primary 1 to SS3 excel.

The portal also provides a bouquet of single and multiplayer games as well as life skill videos. From computer programming, fashion designing, medicine and blogging to engineering, writing, data science and motivational speaking etc; there is something for every interest.

https://www.facebook.com/businessdayng

C

hildren on the Street Welfare and Empowerment Foundation (COTS Foundation), a non-governmental organisation has through its various programme and projects impacted the lives of 25,000 children in various rural communities by ensuring that urchins are enrolled in schools or engaged in vocational training over the last one year.

COTS Foundation assists students, who are at the verge of withdrawing from school due to loss of parents or benefactor, to remain in school by supporting and providing educational materials for them.

Yetunde Ajifowowe, founder of the organisation and also a member of Young African Leaders Initiative (YALI) Network says she is determined to eradicate street-urchins and child-beggars from the street, and ensures that every child lead a productive life.

Ajifowowe says she believes that the United Nations Sustainable Development Goals (SDGs) and its Agenda for year 2030 is attainable when individuals, government and organisations harness resources necessary to make them achievable.

According to her, “In ensuring that SDG1 (no poverty) and SDG4 (quality edu@Businessdayng

cation) becomes a reality, the foundation organizes a community development programme which sensitizes adults in the community on children’s right and the importance of paying adequate attention to children’s needs and development in our society, which could as a result curb insecurity bedeviling our nations” “When children are nurtured and trained to become responsible and financially independent adults through academic and vocational trainings, it empowers them to combat poverty, and also builds their sense of responsibility. Children needs entail but not limited to provision of basic amenities, good nutrition, quality education, health care, hygienic and enabling environment for learning”, she said.

Ajifowowe further stated that as part of its numerous projects, the organisation has also engaged in painting of classroom and management office, as well as feeding of school and indigent children with balanced diets, which is aimed at demonstrating to their parents and guardians the importance of good nutrition for the physical and cognitive development of the children, and also to promote the SDG3 (good health and well-being).

Sunday 15 September 2019

BDSUNDAY

3

Tuesday 17 September 2019

BUSINESS DAY

25

STEP 10

Going the distance (Part 1) Shall we grow old together? Were we made for each other?

W

MisAN REWANE Misan Rewane is co-founder and CEO of WAVE, an organization focused on rewiring the education-to-employment system to create a level playing field for every African youth to access the skills and opportunity to become what they imagine.

e all know the love story as old as time: boy meets girl, they date, fall in love, get married and live happily ever after the end. Except, no one really tells you that a big part of “happily ever after” is figuring out how to grow old together. Growing old together involves coming to terms with how inevitable change is - whether you like it or not, it’s going to happen.

Let’s face it, there will be things that worked in your relationship at the beginning that simply doesn’t anymore, and you and your partner WILL change.

Relationships that have gone the distance haven’t succeeded because everything stayed the same from the start, but because they were able to adapt and realign to change.

The same goes for the employees in your organization, their goals and aspirations will change.

From mastering new skills to achieving financial security, the things that drive and motivate your employees will change/evolve with time. Regardless of what that is, “going the distance” in your employeremployee alliance will require you to be responsive to these shifting priorities.

(Side Note: If there’s one book we recommend that capwww.businessday.ng

tures “how to win” at talent, it’s THE ALLIANCE by LinkedIn co-founder, Reid Hoffman) Were We Made for Each Other?

Imagine it’s your first decade of marriage and your partner is aspiring towards financial security for the family. Naturally, they prioritize long hours at the office over quality family and friends’ time. Fast forward to the third decade of your marriage and your partner’s priorities have now shifted towards family time and optimizing their health as they soon realize that the children will be “leaving the nest”. Because priorities and goals change over time, re-visiting your aspirations for your marriage at regular intervals helps make sure that both parties are still “rowing in the same direction”.

The same goes for the employer-employee alliance. Employee A who initially joined your company because they were motivated by the opportunity to learn general management skills is 3 years later now driven by the opportunity to have a stronger work-life balance. This might, unfortunately, come at a time where the company is in exponential growth mode and needs all hands on (two) deck(s)!

Employee B, who joined right after his/her only child started university is no longer driven primarily by financial gain but

https://www.facebook.com/businessdayng

now wants to transition into entrepreneurship, and this might come at a time when you are looking to build him/her up as your successor in the business.

As the above examples show, if you fail to have regular checkins with your employees about their goals and aspirations, you risk losing touch with what motivates and keeps them engaged.

To your surprise, you might wake up to find out that you are both rowing in opposing directions.

Course-Correcting The skills, networks, and experiences your employee is striving to achieve in order to fulfil their medium-to-longterm goals should merge into the work they currently do to get your organization to where it is trying to go. When these two things are no longer aligned, it’s

‘

Except, no one really tells you that a big part of “happily ever after” is figuring out how to grow old together @Businessdayng

time to revisit and course-correct by either re-assigning them to another mandate within the organization, or transitioning them out of the organization.

Haba, but it’s not that easy to just shift direction because the other side has “changed their parade”? That’s true, but imagine you are getting 50% of someone’s full potential because they are not motivated and engaged.

Not only do you suffer because you are not getting the full return on your investment, but also they suffer because they are not living up to their potential productivity level. The situation is sub-optimal and therefore is not sustainable in the long-run.

So you can choose to ignore it and have resentment build on both sides (as with many an unhappy marriage) or you can address it proactively by having a conversation and developing a plan to adjust the employee’s scope of work.

Course-correcting will surely involve expenses on both sides as you might have to invest in succession planning for the current employee who wants to transition to a new mandate / job role. You might also have to invest in upskilling them to be able to perform in their new role. If the employee is a top performer and you want to keep them, then you’ll make that investment to avoid losing them or having them stay and be disengaged.

26

Tuesday 17 September 2019

BUSINESS DAY

Business schools have a vital role in teaching trust Nitin Nohria

B

usiness schools teach their students that rigorous selfanalysis is critical to success.

Today’s business school students who don’t identify and correct what they are doing wrong are tomorrow’s chief executives making the same mistakes with a large company.

Those of us who run business schools have to live by what we teach.

At Harvard Business School, where I am dean, we have been engaged in our own selfreflection — namely whether the curriculum we teach is adequately preparing students to meet society’s changing expectations of business.

The fact is, the world is demanding a new type of business leader — one who is good for the bottom line, but also for the world.

One who is pragmatic, open-minded and adaptable, yet who is deeply committed to values and ethics. Above all, we increasingly demand business leaders who earn our trust. Business schools — including HBS — must teach students how to be trustworthy.

We must make it a centrepiece of our curriculum. We should prioritise trustworthiness, because ultimately, that is how we will make a real contribution to society.

Right now, business schools, and even corporations, risk resting on their laurels.

The most recent Edelman Trust Barometer provides an annual indicator of the trust people place in business and its leaders.

The global data show that trust in businesses far exceeds that of trust in government or media, and that trust in business has been rising in most of the world, though it remains higher in developing countries such as China and India than in the US. To be clear, rising trust in business is a good thing.

Around the world, governments are constrained by lack of political consensus and

Nitin Nohria, Harvard Business school dean

strained fiscal resources.

In many regions, businesses are being called upon to serve vital public needs — marshalling disaster relief, devising lower-cost solutions for systemic healthcare challenges, creating improvements in education, or developing innovative ways to combat climate change.

Increasing trust in business can only help these efforts.

When business is trusted, it enjoys a licence to operate that

reduces friction and transaction costs.

When distrust is high, it invites restraints and regulations that can over-reach.

Yet I am concerned that trust in chief executives and corporations is cresting and, if businesses do not change course, it will come crashing down.

Consider the recent business headlines from around the world: Tech companies face condemnation for failing to protect users’ data and leav-

‘‘

we teach students to look at every decision through the triple lens of their economic, legal and ethical responsibilities www.businessday.ng

https://www.facebook.com/businessdayng

ing their platforms vulnerable to manipulation.

Some go so far as to call tech companies a threat to democracy Large banks and consulting firms face criticism for poorly conceived relationships with authoritarian and corrupt governments.

Several globally admired CEOs are facing serious allegations of misconduct — from sexual harassment to underreporting pay Trust is inherently fragile.

Historically, headlines such as these take a toll on trust in business.

As the training ground for future business leaders, it is up to business schools to make trustworthiness a priority.

So what can we do in our classrooms to increase the odds our students will make decisions that enhance, rather @Businessdayng

than diminish, public trust?

Lately the faculty at HBS have been debating this question — resulting in the decision to reimagine our required, full-year leadership and corporate accountability course for MBA students, which was initially conceived after the collapse of Enron.

Today, we teach students to look at every decision through the triple lens of their economic, legal and ethical responsibilities.

Beginning in 2020, the curriculum will go further by asking students to consider what proactive, positive things they should be doing to solve some of society’s most vexing problems.

Students will be challenged to engage with questions such as: how can business leaders take on climate change, or the future of work in an age of artificial intelligence?

How should technology companies use the tremendous amounts of data and power they have amassed?

Can leaders act alone on these social causes, or should they mobilise some form of collective action?

The public now expects business leaders to routinely ask, and answer, such questions.

According to trust barometer data, 76 per cent of the public says CEOs should take the lead on issues such as the environment, protecting personal data, promoting equal pay, and preventing discrimination and sexual harassment — an 11-point increase over a year ago.

These rising expectations of business leaders are one reason for the excitement generated by Starbucks’ founder Howard Schultz entering the US presidential race.

I do not believe the public is asking too much by requesting that business leaders take the lead on these critical issues.

Just as importantly, I believe that only by taking the lead on such issues will business leaders be able to maintain, or even expand, the level of trust they enjoy.

People tend to evaluate business schools by the rise or fall in rankings or applications each year.

I encourage us all to think broader and look further into the future.

The more meaningful metric, the more compelling question, is whether we are moulding leaders who deserve the world’s trust. *Nohria is dean of Harvard Business School

Tuesday 17 September 2019

BUSINESS DAY

27

property&lifestyle

High vacancy rate in VI, Ikoyi drives down rent by 8% in H1 …tenants could save as much as $2,100 per year ENDURANCE OKAFOR

I

n the first half of 2019, demand activity in the A-grade office market slowed relative to that of H2 2018, where a number of large transactions were concluded especially towards the end of the year, data by Broll Property Intel, the research and intelligence arm of Broll Nigeria, has revealed.

In the review period, 33,000 square metres (m²) of office space was delivered to the A-grade market, adding 61-percent vacancy rate, up from an average of 57percent as at the end of 2018.

As a result, the median average rent for A-grade offices in Victoria Island (VI) and Ikoyi dropped marginally by a joint 8.21 percent in H1 2019.

BusinessDay analysis of the H1 data by Broll reveals that the average asking rent for office building in Ikoyi stood at $700/m² per annum, this is $50 or 6.67 percent decline from the $750 which the properties were rented for in the last quarter of 2018.

The same was reported for A-grade property in VI as the average asking rent dropped by 1.54 percent or $10 from $650/ m² per annum in Q4 2018 to $640 in H1 2019.

A survey by BusinessDay revealed that an office occupied by one to five persons will require a space ranging from seven to 35 square meters. When that is inputted into the rent for A-grade office in VI and Ikoyi, the amount paid by tenants will be, at least, $4,900 and $4,200 per annum for the respective locations.

“Asking rents have remained fairly unchanged

in certain nodes. However, A-grade properties in VI and Ikoyi have recorded marginal declines,” Broll Nigeria said.

Going by BusinessDay calculations, the marginal decline in rent of A-grade properties could mean that prospective office tenants may be saving $350 and $70 for 7 square metres office which can be occupied by one person in VI and Ikoyi respectively. This represents

a joint reduction of $420.

A potential tenant could also be saving as much as $ 1,750 and $ 350 for A-grade office properties in VI and Ikoyi if he/she is renting a 35m2 office space that can accommodate five persons.

This represents a joint rent reduction by $2,100 per annum.

Data by the real estate firm revealed that the median average rent in Lekki and Ikeja in the first half of 2019 was unchanged from the Q4 2018 figures at $240 and $325 respectively.

Also, the rent of B-grade property was constant in Ikoyi, VI, Lekki, Ikeja, and Abuja as the median average asking rent stood at $600/ m2 per annum, $450/m2 per annum, $194/m2 per annum and $180/m2 per annum, respectively.

“Yes, rental prices have dropped slightly in both housing and office space in the premium areas of VI and Ikoyi and in some other locations.

One percent reduction in the rent of the properties in those high end areas could translate to a huge amount of money because the prices of the properties can be very high,” James Oanrewaju, a real estate agent, confirmed to BusinessDay by phone.

Court rules in favour of ARCON in new architects registration case

According to Broll Nigeria, about 27,000m² of developments nearing completion are expected to be delivered by year-end. Other projects under construction estimated to be about 82,000m² will be delivered in 2-3 years.

Meanwhile, approximately 64,000m² projects have been put on hold.

As a result of this data, Broll Nigeria revealed that landlords are looking at a prelet of about 50 percent before proceeding any further with construction.

“However, given the current vacancy rate of premium quality buildings in the market, the likelihood of achieving this pre-let goal may be unobtainable,” the real estate firm said.

Meanwhile, most landlords in the property industry still perceive the market to be a tenant’s market and continue to offer competitive leasing terms to prospective tenants on a case-by-case basis, especially with the anticipated increased supply.

“This is more so the case with developers with debt servicing obligations associated with their properties,” Broll Nigeria said.

The risk of not knowing when a property will be bought off the market is one of the reasons for the high cost of acquiring property in Nigeria.

Lessons for Nigeria from Netherlands on quality, affordable housing delivery ISRAEL ODUBOLA

L

ike Nigeria which is a populous country in Africa, Netherlands is also a populous country in Europe. Nigeria is a very expensive housing market in Africa. Like Nigeria, Netherlands is also an expensive housing market. But unlike Nigeria, the European country has got it right in terms of quality and integrated affordable housing which Nigeria is still struggling with.

This eighth most populous European country, therefore, holds lessons for Nigeria on affordable housing which is part of the reasons for the country’s high homeownership level estimated at 69 percent as against Nigeria’s little above 10 percent.

Unarguably, Nigeria needs to borrow a leaf from Netherlands on how to bridge its huge housing gap estimated at 17 million units, and adopt strategies that can be employed to deliver cheap ac-

commodation to low-income population who forms the bulk of its citizens.

Successive administrations in Nigeria have been battling to provide lasting solutions to the housing challenge ever since the country gained independence almost six decades ago. Sadly, the issue has worsened given the country’s rapidly-growing population which continues to dent government’s efforts to deliver affordable homes.

Netherlands has one of

L-R: Oladapo Ogunlewe, chairman, inter-govt’al. & non-govt’al sub-committee, NIESV Lagos); Felicia Arikpo, executive director at Dyslexia Foundation; Ben Arikpo, chairman, Dyslexia Foundation; Adedotun Bamigbola, chairman, NIESV Lagos; Olutosin Bamigbola, his wife; Niyi Olagoke, secretary, NIESV Lagos; Jide Olayinka, member, Inter-Govt’al. & Non-Govt’al Subcommittee, NIESV Lagos during a courtesy visit to Dyslexia Foundation recently www.businessday.ng

the highest home-ownership rates in the world, of about 69 percent. Its housing system has acquired global reputation, because of its special nature and the way in which it has evolved.

“Sustainable law and policies are the brain behind Netherlands’ housing sector transformation,” said Faruq Abass, managing partner at Abdu-Salaam Abbas & Co, who spoke at an African real estate conference.

“Laws and policies implemented in most African countries are not sustainable which is why home-ownership is low in those countries,” he said.

Netherlands is ahead of Nigeria well as other African nations in terms of quality and integrated affordable housing.

The Dutch have been at this for a very long time.

Initial efforts made to provide affordable housing were actually started by private businessmen and industrialists in the 1800s who wanted better housing for their staff. In the early 1900s, the Dutch government got involved and supported the development of housing associations.

After the Second World War, these housing associa-

https://www.facebook.com/businessdayng

tions were instrumental to rebuilding the country’s housing stock, with emphasis on making affordable housing accessible to lowincome population across the country. Afterwards, a new deal was signed with the housing association to pull out all government subsidies in exchange for significant freedom in their continued development of housing with, at least, a portion of this being affordable.

According to Olumide Osundolire, government’s policy insincerity is behind housing insufficiency in Nigeria.

“Most of the people implementing the policies are incompetent. The maturity at which those policies get to the market is worrisome,” he said at the event, adding that the rigorous procedures to process mortgages in Nigeria is taking toll on housing delivery in the country.

Of particular significance has been the Dutch’s emphasis on integration. Housing associations have long created sustainable mixed-income development with 20 percent for low-income earners, 60 percent for middle-income earners and 20 percent for high-income groups. @Businessdayng

CHUKA UROKO

A

Federal Capital Territory Abuja High Court has struck out a suit restraining Architects’ Registration Council of Nigeria (ARCON) from conducting any scrutiny for those seeking to become registered architects.

Justice Muawiyah Baba Idris, who gave the ruling in Abuja at the weekend, explained that the plaintiffs approached the wrong court to seek legal redress and, therefore, vacated an injunction he made earlier restraining ARCON from carrying out any process that would have led to registration of new architects.

After analysing the arguments for and against the order and the court’s jurisdiction, the judge struck out the suit, saying only a Federal High Court has the jurisdiction to entertain such suit because ARCON was an agency of the Federal Government.

However, efforts by ARCON’s lawyer to make the court award cost against the plaintiffs in favour of the Council met a brick wall, as Justice Idris said there was no evidence of cost incurred before him and, therefore, declined to make any order on cost in favour of ARCON. Pique d by ARCON ’s planned programme towards registration of new architects, some persons including Ibrahim Kabir, Ayodeji Kolawole, Andy Imafidon, Dike Emmanuel, Opiribo West, Abimbola Ajayi and Emmanuel Ekeruche had approached the court to stop the Council.

The plaintiffs, who sat for controversial Nigerian Institute of Architects (NIA) qualifying exams but are yet to pass through ARCON’s competency measures, and therefore not registered architects include Ademakinwa Olajumoke, Babajide Awonubi, Siyanbola Kukola and Emmanuel Adewunmi, who also sued for himself and other aggrieved person that sat and passed the NIA qualifying exams.

They sued ARCON, NIA, Dipo Ajayi, ARCON president and Njoku Adibe, president, NIA, as first to fourth defendants respectively.

Resuming sitting yesterday, the court was filled to capacity, and despite repeated efforts by ARCON’s lawyer to have the judgment delivered earlier, the judge in his wisdom delayed the judgment till much later.

After resuming from his short break, some minutes after mid day, Justice Idris, who first reviewed the case and submissions of counsel, said having taken cognisance that ARCON was a Federal Government agency, a Federal High Court, has jurisdiction on any administrative issue, such as the plaintiffs were complaining about.

28

Tuesday 17 September 2019

BUSINESS DAY

property&lifestyle

Home-ownership window opens at Green Park Homes as developer offers buyers 6% mortgage CHUKA UROKO

A

new homeownership opp o r t u n i t y ha s just opened for mid-income home buyers as Alpha Mead Development Company (AMDC) has disrupted the market, offering home buyers 6 percent mortgage at its new development in Lekki corridor.

The development, known as Green Park Homes, is the company’s response to the continued call for affordable and quality housing for the middle-income Nigerians.

AMDC is Nigeria’s first real estate development company certified to international standards (ISO 9001:2015).

Green Park Homes is a moderate housing scheme the company is developing in collaboration with IBILE Holdings – the investment arm of Lagos State Government.

The scheme has the support of stakeholders including key players in the mortgage industry such as Trust-Bond, AG Homes and the Federal Mortgage Bank of Nigeria (FMBN).

It is a 100-unit estate comprising three semidetached and two-bedroom terrace houses located on the Lekki-Epe corridor within 5 minutes drive from Novare Mall at Sangotedo.

The scheme offers home buyers access to the National Housing Fund Mortgage at 6% and a flexible equity contribution payable over 12 months.

“The Green Park Home Scheme addresses three issues for the middle-income class. These issues include the lack of access to housing finance, low quality structures and high mortgage rates,” explained Dalila Akindolire, AMDC’s managing director.

Infrastructure Maintenance With Tunde Obileye Obileye is a UK-trained lawyer and CEO, Great Heights Property and Facilities Management Limited Email: Tundeobileye@greatheightslimited.com

Steps to prevent electrical fire

I

Akindolire who spoke at the scheme’s ground-breaking last week, noted that access to housing finance was one of the biggest challenges of home ownership for the middle-income class in Nigeri.

“With commercial mortgages at 20--25 percent, home ownership is gradually becoming a tall dream for hard-working middleincome Nigerians,” he said.

“So, as a Real Estate company focused on the middle-income class, we went back to the drawing board to think through the entire housing delivery value chain and see what opportunity we could create for our customers. The result of that process is the Green Park Homes, ” he added.

He assured that with the support of their partneribg mortgage banks, subscribers of the projects who are NHF contributors would be able to access up to N15million mortgage loan at 6 percent rate.

He disclosed that they had ensured that the equity contribution for the project

was affordable and flexible, adding that the project was structured to help their customers to enjoy the good things of life while on the journey to owning their homes.

“It is as simple as making a deposit of N1.5 million and spreading the outstanding equity over 12 months and enjoying the benefit of mortgage at 6 percent, “ he said.

Dada Thomas, Chairman of AMDC, noted that with Nigeria’s housing deficit widening in response to its growing population, Green Park Homes was one of the ways AMDC was catering to the growing middle-income class.

Niyi Akinlusi, managing director, Trustbond Mortgage Bank Plc, and president, Mortgage Banking Association of Nigeria (MBAN), commended AMDC for the initiative, noting that with a significant population of the country still within the middle-income class, it was important to plan for the housing needs of the future with

developmental projects like this.

He hoped that the project would enable them to provide home for Nigerians and, on the other hand, generate direct and indirect jobs that would impact the economy of the country positively.

Akinlusi revealed that his confidence in the project stemmed from his years of business relationship with AMDC and impressive track record of the contractor, MAHFAS Investments, and other partners Ngozi Anyogu, MD, AG Mortgage Bank, shared the view that for Nigerians to bridge the widening housing deficit, it was important that they started thinking beyond the usual development practices and engagements.

“I am excited that a collaborative project like Green Park Homes, with support from all stakeholders, is being embarked upon to provide a viable option for middle income Nigerians to begin their home ownership journey.’’

n any built environment where there is electricity, the risk of an electrical fire will always exist. They are notorious for spreading with lightning speed through wiring – even behind walls, dangerously out of sight. Loss of life, injury and damage to property is common occurrence because of electrical fire.

By the time anyone sees or smells the smoke, an electrical fire may already be out of control. It’s essential for facility managers to know the signs of increased electrical fire risk so that they can make repairs to mitigate the situation immediately and what is needed if the fire has already started.

Signs of electrical fire risk An electrical fire can start and spread due to issues such as overloaded circuits, aging, weathering, faulty installation and materials, and more. There are so many possible causes of electrical fire; it makes sense for facility managers, through their maintenance teams, to have a regular electrical fire safety inspection in their facilities to check for potential hazards. If a facility manager or an electrical technician sees or smells any of the following, action must be taken immediately to repair or replace the problem and reduce the risk: • Discoloration or smoke marks around sockets, outlets or switches.

• Sockets, outlets and/or switch plates that feel warm

to the touch.

• Fuses that blow frequently or breakers that frequently trip.

• Flickering lights.

• Poorly wired plugs (look for loose colored wires or debris in the plug area).

• Sockets that are overloaded (too many appliances plugged into the same outlet can cause overheating, which can lead to fires).

• Cables or leads that are worn or frayed.

• Cables that have been run under carpet (they can become worn before someone notices).

• Outlets, cables, plugs and switches too close to fabrics, oils and other flammable materials.

A qualified electrician should regularly inspect these and other aspects of electrical safety throughout homes and buildings to reduce the risk of electrical fire, and protect lives and property.

The following should be considered if an Electrical Fire occurs 1. Never put water on an electrical fire. Mixing water with live electricity can cause electrocution.

2.Shut the electricity down in the building if you can. This should slow the progression of the fire, possibly saving other areas that have not yet been affected. Make sure that you know where the circuit box is and that it is easily accessible and not obstructed by any other objects.

How property-owners disqualify ‘single’women seeking accommodation on flimsy excuses Temitayo Ayetoto

T

he ultimate among a plethora of considerations that typical property-owners target when leasing is whether the interested renter has the financial capacity to pay and subsequently sustain rent.

But the demonstration of this ability doesn’t often suffice in the case of women whose marital status reads single. Landlords appear to have set singlehood as a disqualifying profile in the jostle to secure accommodation, BusinessDay findings show.

Last February, Promise Nkiruka, a 25-year-old banker in Lagos, lost the opportunity to obtain a modest three-bedroom apartment of her choice

within Lekki peninsula, Lagos simply because she is single. The property-owner would rather have a married man use his facility than have Nkiruka, her cousin and friend join funds together to secure the apartment.

As a vivacious lady whose career was just picking up in one of the leading financial institutions in the country, all she wanted was to set up a personal space that expressed her youthful taste and enabled her focus on work.

“I practically loved the house but I lost it because I’m a lady. He (landlord) wouldn’t give me the place except I’m married. He said he doesn’t even want to give his apartment to girls except I can keep www.businessday.ng

a working class lady and don’t give him issues,” the young lady said, narrating her ordeal.

Even with cash in hand, Obianuju Okafor, a fresh employee in Enugu as of 2016 could not secure an apartment independently until her father intervened. She had been squatting with a friend when she received a short notice to leave.

“I thought it was going to be something easy. I had to go through an agency who would try to hide me from the landlords so that they won’t know I am a single lady,” Okafor said.

Where she met the landlord directly, she was asked to bring someone, preferably a male figure that would be able to attest to the fact that she can

afford the rent and that she is well-behaved.

During his National Youth Service Corp in Ogun state, Amaechi practically had to front his female colleague who was seeking an accommodation. Since his presence seemed to establish a kind of confidence that was missing when she engaged alone, she handed the rent to Amaechi who paid in her stead.

The instances show that in a neck and neck competition between a single man and a single woman, landlords, depending on how deeply inclined they are with traditional African expectations of women or their level of exposure to the nuances of equality in gender rights, choose men

https://www.facebook.com/businessdayng

as the preferred tenant 90 percent of the time.

Normally, potential house hunters are simply required to state clearly where they work, the nature of work and the purpose of use.

But with a gender-based tweak of ground rules, a young woman aspiring to get an apartment has to first prove beyond reasonable doubt to the property-owner why she wants to live independently rather than with her husband in a union.

If she passes the independence test, landlords often soak themselves in the worry of whether a woman tenant would be sexually responsible, whether she won’t introduce other sexually reckless @Businessdayng

housemates or technically convert the apartment into a brothel.

The challenge facing women is not exact for every context but since the current majority share of the housing demand is supplied by private homeowners, the arbitrariness and lack of fairness in the standards of qualifying and disqualifying is a growing concern that many women fear could dovetail into unequal access to housing sponsored by gender bias.

Victor Bailey, a landlord in Oregun area of Ikeja, Lagos admits that when it comes to tenancy, the traditional orientation still holds sway among him and several of his colleagues.

Tuesday 17 September 2019

BUSINESS DAY

BDTECH

29

In association with

E-mail: jumoke.akiyode@businessdayonline.com

‘It is important to widen the pool of opportunity through diversity in tech’ ASHIM EGUNJOBI is the acting country manager for Tek Experts, a technology development company and global provider of business and IT support services. In this exclusive interview with JUMOKE AKIYODE-LAWANSON, she talks about the vast tech talent in Nigeria, the company’s achievements since launch of Nigeria operations over a year ago and its contribution to Nigeria’s growing IT landscape. Excerpts.

W

hat is Tek experts and what kind service is your company involved in?

Tek Expert is a global business processing organization.

We focus on technical support services and we have operations in seven countries around the globe. We are present in the far East, China and Vietnam, we have an operation in Bulgaria and in Malta and of course in the same time zone we also have an office here in Nigeria and we have two operations in America, one in Costa Rica and one in the United States of America.

We work with IT companies who have a need for high technical support services where we come in and provide those services for those clients. If you imagine that you’re a corporate organization and you have a software that you are using, you encounter an issue with this software so you raise a ticket and that ticket contacts us, then we solve your problem.

Tex experts launched in Nigeria about a year ago, what informed your decision to choose Nigeria as a specific location to operate in Africa?

Nigeria was a pretty straightforward choice for us to launch the organization. For one, Nigeria is located in an optimal time zone, you have the GMT+1-time zone which really gives you access to the world, especially with a nice span of operating hours. The other thing is the English Language skills. As we know, English is the language of business in Nigeria and that is spoken in so many different countries around the world, so if you’re looking for countries to support global customers, a lot of time, English would be a non-

Ashim Egunjobi

negotiable requirement and of course, Nigeria is an English related kind of country therefore, its completely clear to have that capability here. But the most important reason we came to Nigeria is the people.

Two reasons here: 1) Is that Nigerians are extremely hard working, passionate and have a natural affinity to customer service. Nigerians are very cultured and always wanting to bring out the best in any kind of problem that they are trying to solve. The other issue here is that there is also a huge amount of Tech Talent in Nigeria.

Can you talk about the company’s achievements in the last one year of Nigeria operations?

Tek Expert Nigeria was launched in April 2018 so we’ve been just about a year and half in operations. The first milestone was to launch.

It is no easy feat to launch a global business with international standard in any country especially in Nigeria, so the first feat was, we launched 200 technical engineers and from then we have grown operations to almost a thousand technical support engineers here in Nigeria so we’ve had several milestones along that journey and of course the

www.businessday.ng

biggest milestone would be to be able to continue to attract incredible talents along our journey to join us here in the office. Another milestone would be that we have been able to service our clients successfully with very good performance records and quite big customer satisfaction and in line with that, we’ve been able to launch more business lines that we support for our clients here in Nigeria, so that has been one of our biggest milestones.

It’s great that the company has grown from having 200 technical engineers to about 1000 engineers, but apart from developing these technical skills and creating job opportunities, in what other ways would you say Tek Experts has been able to contribute to Nigeria’s developing IT landscape?

The most important aspect here is with regards to skills development, so we recognize that the clouded options generally in Africa is in its baby steps so it is just growing. As a company serving a global customer, we are servicing customers who have adopted the cloud fully, who have been running on cloud for some years, who use a variety of different software or products

and are on the cloud; which means that our engineers are able to interact with a very much matured customer than what you may be able to interact with in the local market and so skills development is a huge one. Technical skill development by training – we do a lot of trainings on site, our engineers go through two to three months of technical training which we kind of invest into them. But at the same time it’s also about exposure so its skills development by exposure. In addition to that, we lay emphasis not only on technical trainings but also on soft skills. We also want to give back to the community, so we have launched an app, along our journey we’ve had a lot of CSR initiatives.

Earlier this year, Tek Experts released a white paper, championing the cause of diversity and inclusion in the technology industry. The white paper analyzed challenges faced by women operating in this industry especially in Africa. Would you say that this is a key passion for Tek Experts, is this something you’re looking to do more of in the future?

Advancing the ratios to which women work in technology is certainly a passion for us at Tek Expert, ensuring that women not only have opportunity but also are attracted to working in technology is passion point for us. Not only because we believe that diversity matters and there are several reasons why it matters, one of which is because we all serve a very diverse customer base so the more diverse our workforce is the more we can tap into the needs of our diverse customer base. We also truly believe that the more balanced your workforce is with regards to

https://www.facebook.com/businessdayng

gender diversity in particular the more you can increase or enhance your performance because you know studies have shown that in fact there are a lot of women that have extra drive to prove themselves especially in areas that may have been male dominated for a long time so women have that extra drive to want to prove themselves and so, a lot of times you get more performance out of a lady working in that field. I also think showcasing that in fact women can work in any field and in technology as well will attract more women to the industry. So it’s really about widening the pool of opportunities and ensuring that women can play in the economy just as much as men can.Tek Expert Nigeria has a women and technology network for women who work on the site here and we have a ratio of 30% of women.

Is Tek Experts planning to collaborate with women in the technology space?

The survey that we launched earlier this year was for us key to understanding across the globe where are the nuances and where are the different kind of views of women either exposed in technology, what are the challenges that they have faced along their career and how would they want to see improvement across the globe. In Nigeria, we have engaged with two organizations (W-TECH and Cross of Africa) in particular to identify how we could work together, how we can foster the message together.

How does the company source for tech talent and recruit globally and in Nigeria?

We have an in-house talent acquisition team both represented at the global level and

@Businessdayng

in sites locally as well. DNA is something that is extremely important for us at Tek Experts so across the globe we foster a kind of certain culture that we strongly believe is one of our unique selling points to the customers. We require a kind of certain performance from people but what we value even more is the right culture, mindset, discipline, hardworking spirit, honesty, integrity and punctuality. Tek Expert has about 5,000 people worldwide, so you can say Nigeria is one of the biggest sites already and we will continue to grow on that trajectory. At the same time, our Tek global talent pool will continue to grow and we envision that Tek Expert will be about 15,000 people by 2025.

What are the challenges you face as a company operating in Nigeria’s tough environment and how are you able to work through these challenges?

Well, we’ve not faced too many challenges but I think that it is mainly based on our spirit.

So we have a can do spirit, we believe that everything is possible and we put our minds to it that we are able to achieve pretty much everything. At the same time, we are a “by the book” company, everything here is black and white we don’t really like the gray zones so we stay away from things we don’t understand and we make sure that we do everything that is right that needs to be done, we don’t tend to try and run away from any challenge but we try our best to make it work. Of course we’ve made our research about Nigeria before coming so we had a good understanding of what we could expect with regards to operating costs, regulations and any other thing in this environment.

30

Tuesday 17 September 2019

BUSINESS DAY

BDTECH

E-mail: jumoke.akiyode@businessdayonline.com

A new revolution: The battle between e-commerce and chat commerce

Jumia hosts NBA player, Andre Iguodala

JUMOKE AKIYODE-LAWANSON

…intends to create opportunities for investment in Africa’s tech industry

A

lthough e-commerce in Nigeria is predominantly urban, the industry recorded about $1.9billion in 2016 and has been projected to reach an estimated $3.9 billion by 2020 if the right regulations to guard online sales are put in place to match up to global standards, experts say.

Electronic commerce is a thriving global industry and has become more popular in Nigeria due to increased internet penetration and high numbers of smartphone ownership. In advanced climes where access to the internet and of course, literacy levels stand at appreciable levels, ecommerce has become a lifestyle for many. Interestingly, global retail sales, of which e-commerce makes up a major part, is projected to rise further to an estimated 27 trillion dollars by 2020.

However, with increased use of mobile chat applications comes a new revolution of ‘chat commerce’ – the use of chat applications such as WhatsApp and WeChat for commerce. With 1 billion users on Wechat and 1.6 billion monthly users on WhatsApp, chat commerce is on track to undoubted success due to the amount of users on these platforms.

Speaking at a networking event organized by Clickatell, a company that powers chat commerce through SMS, WhatsApp and other social channels, Hannes van Rensburg, chief commercial officer, Clickatell said that the revolution of chat commerce is here and there is no

OGOCHUKWU EJIKEME

A

Wale Obadare, chief operations officer, Digital Encode (5th from left), Oluseyi Akindeinde, chief technical officer, Digital Encode (7th from right) with their staff at the Company’s retreat held in Dubai, United Arab Emirate, recently.

better place for it to thrive than Nigeria, as the country is populated with youths who have the drive for technology and are prepared to try out new things.

“The reason why e-commerce companies in Nigeria are still struggling is because although there are a lot of consumers in the market, not a lit of people browse the internet on PCs or laptops. It’s a mobile first nation and most people interact through the use of chat apps and SMS, so the market for chat commerce in Nigeria is significantly bigger that the market for e-commerce,” van Rensburg told BusinessDay. Chat commerce is any practice of conversing with a customer via messaging apps to result in a sale, and although it is still a fresh term in the market, the telecommunications world

is starting to come to terms with this new revolution and the opportunities it brings.

Clickatell which is one of the first companies to partner with Whatsapp and the first company to launch chat ban king on WhatsApp, currently powers GTBank’s *737#, Firstbank’s chat banking, MTN on its bulk SMS platform, as well as other partners.

Clickatell’s platforms and solutions help brands reach over 85 percent of the world’s population, across more than 1,000 mobile network providers and multiple mobile channels.

Concerns of security on chat platforms were addressed when Rensburg emphasized that WhatsApp is encrypted end to end and that authentication process is thorough on these applications that are already used by billions

of people around the world.

“To install a new WhatApp application, users have to go through authentication process.

So there is inherent security built into the chat application.

So, people don’t have to think about password changes and the likes because it’s built into the system,” he said.

As chat commerce continues to grow for small local businesses who look to social platforms to market and sell products, large organizations and brands are now also looking to leverage this channel, even at scale. The worlds largest banks are now engaging in SMS marketing, social media platforms and chatbots. And, as with any evolving technology, there are still plenty of teething issues that would be ironed out in the near future.

Digital Encode raises concerns over total reliance on cyber security solutions JUMOKE AKIYODE-LAWANSON

D

igital Encode, foremost cyber security and Compliance Advisory Company, has cautioned organisations on over dependence of cyber security products for protection against cyber -attacks.

Wale Obadare and Oluseyi Akindeinde, both founders of Digital encode also expressed worries over the implementation of none impactful cyber security solutions to organisations by vendors which has resulted in increased loss of money and data by organisations.

They spoke at the recent Digital Encode retreat for the company’s staff in Dubai, United Arab Emirate to equip them for a blissful career.

Obadare, further said that major challenge organisations face in the fight against cyber criminals and cyber warfare is lack of trained manpower.

“I have been in the cyber security ecosystem for many years now and have identified lack of trained manpower in most organisations. Cyber security is not a certificate that speaks for you, but a continuous training to be

ahead of the smart criminals. Most organisations find it difficult to continually update their IT security staff to be able to face cyber threats,” he said.

Akindeinde, emphasised on the need for a national cyber security framework against industry specific frameworks.

“There are a number of frameworks www.businessday.ng

aimed at assisting most organisations in preventing cyber attacks. A prime example is the ISO 27001 ISMS. A more specific one for the financial / payments sector is the PCI DSS. This is a regulatory framework. I think it’s a case of the level of maturity of cybersecurity in the banking sector. Other sectors have not got to that advanced stage of maturity which is why the banks seem

https://www.facebook.com/businessdayng

to be at the forefront of preventing and addressing issues related to Cybersecurity,” he said.

Digital Encode has shown leadership by setting her workforce up for success; instill in them a sense of bigger purpose, and giving them the confidence to persevere when the work gets challenging.

According to Wale Obadare, “since inception of Digital Encode in 2003, It has always been our dream, our passion, to build a game-changing organisation; a place where employees have a sense of belonging, a big family, a great place where everyone is proud of. This year in pursuant of the dream, we decided to take all of our staff on this trip to Dubai for the 2019 annual retreat.

Digital Encode is passionate to attract, motivate and develop a dynamic workforce that conquers the world from Lagos, Nigeria”.

In his presentation, Oluseyi Akindeinde, said: “By taking the team away from a stressful environment, Digital Encode has made sure that they decompress all over again because as the saying goes, “less stress means more productive workers”. @Businessdayng

ndre Iguodala, the Nigerian-born NBA player with the Golden State Warriors, who is also a member of Jumia’s board of directors has vowed to bring in more partnerships and investments to Nigeria’s technology ecosystem.

Iguodala who was hosted by the company in Lagos recently said that he has indeed found the tech ecosystem interesting as an investor in Jumia, one of the largest ecommerce companies in Africa.

He further stated that as a member of the Jumia board, the intention is to see how to better grow the company as well as create opportunities for further investments from the United States.

With Jumia’s New York Stock Exchange (NYSE) initial public offering (IPO) listing earlier in the year, Iguodala is confident that his place as a member of the board would further enlighten potential investors and bring awareness about the African company to light.

“Part of my duties being on the board is to bring awareness to United States investors on the African company. One of the things I would like to bring to Africa is partnerships and opportunities to take advantage of.” He said.

“One of the conversations that got really interesting for me is finding talent, especially African talent because we are an African company and we want to keep it that way. Not just finding talent, but developing talent, not just in Nigeria but for the whole continent, Iguodala added.

Speaking about opportunities, he stated that the NBA intends to start an NBA Africa League. Although nothing official has been said about it, Iguodala said he intends that a possible partnership between Jumia and NBA Africa comes up next year.

The Golden State player stated that his interest in technology did not just start with Jumia but it has always been something he had had a passion for. He holds a Players Technology Summit in the United States to help athletes become business savvy and value life outside of sports.

According to Iguodala, he understands that a major challenge for technology start-ups is usually funding and that is why he has chosen to partner with some of these companies to see how to bring to light some of the ideas they already have.

Stating that his interests are not just limited to e-commerce alone, Iguodala said he intends to meet with a number of tech start ups during his stay in Nigeria.

Tuesday 17 September 2019

BUSINESS DAY

Investments

ENERGY INTELLIGENCE

Market Insight Companies Commodity Tracker Policy

OIL

GAS

31

PETROCHEMICALS

POWER

MARKET

Nigeria’s refineries lost N26bn last year, enough to build a modular refinery ISAAC ANYAOGU

W

ith a loss of about 15 percent from its operations, fallen capacity despite high overhead costs, if a private business was managed the way Nigeria’s refineries are, law enforcement agencies would have a valid reason to lock up the managers and throw away the key.

But alas, the refineries are a national asset, a business, Africa’s biggest oil producer entrusted its state-owned firm, the Nigerian National Petroleum Corporation (NNPC) to run, and according to its own records, they are not profitably managed.

The NNPC lost over N26 billion between June 2018 and June 2019, according to its own data, a pattern of loss replicated over the past five years, which estimates show is enough to build a modular refinery each year.

BusinessDay analysis shows that if NNPC had spent what it loses running these refineries on building modular refineries, it could have constructed at least five new refineries in the past seven years that would have cut by half Nigeria’s petroleum products importation estimated at over N1.2trillion annually.

Consolidated record for Nigeria’s four refineries in Warri, Port Harcourt and Kaduna reported in NNPC’s monthly operations and financial report for June shows that they are performing at about five percent capacity.

The NNPC is spending more transporting crude oil from well heads in the Niger Delta to the refineries and transporting refined products around the country than what

it makes from selling the products.

In real terms, NNPC said the refineries refined products worth over N182.1 billion but spent N186 billion on what it calls ‘associated crude’ and freight charges from the well head to the refineries and billed the federation N151.7 billion as operating expenses.

The NNPC further reported a deficit of N26.08 billion which BusinessDay checks show is lower than what Integrated Energy is spending on building 20,000 barrels per day (bpd) modular refinery in Lagos state.

“The figures appear quite strange,” says Ayodele Oni, energy lawyer and partner at Bloomfield law firm in a phone interview with BusinessDay. “I don’t understand

the freight charges since the crude is moved from the well head to refineries unless they are saying it is being imported.”

Ndu Nghamadu, NNPC’s spokesman did not reply a request for clarification.

Every year, the NNPC requests bids from local and international oil companies to its share of 455,000 bpd allocated it from joint venture arrangements with exploration companies. These companies bring back refined products which meets over 90 percent of Nigeria’s consumption. They do not ship part of their crude allocation to Nigeria’s refineries hence it does not attract a shipping cost.

NNPC rather pays a freight cost

when it transports the refined products through the Petroleum Products Marketing Company (PPMC), to depots and retail outlets around the country.

However, spending more money moving the products around the country than it costs to produce them is not sustainable business practice.

The smooth operations of the refineries have also been hampered by incessant attacks on the pipeline infrastructure used to transport crude to the facilities.

“In June 2019, a total of 106 pipeline points were vandalized which represents an abysmal increase of 77 percent from the 60 points vandalized in May 2019,” the NNPC said its monthly report.

NNPC said the refineries performance contributed significantly to its overall trading deficit of N3.92billion.

Since January, the corporation said it has been adopting a Merchant Plant Refineries Business Model which takes cognizance of the Products Worth and Crude Costs.

The combined value of output by the three refineries (at Import Parity Price) for the month of June 2019 amounted to N2.01billion while the associated Crude plus freight costs and operational expenses were N6.34billion and N13.10billion respectively.

Prior to 2017, it had been operating a Tolling Plant model where the refinery does not take title to the crude, but rather charges a tolling/ processing fee to the owner of the crude which was PPMC on behalf of the Corporation.

Chuks Nwani, an energy lawyer says Nigeria has to rethink its engagement with crude oil. “We have so much depended on selling crude that we forget that we can make more money if these products are refined and sold to Africa market.

“There are so many idle refineries all over the world and if they are guaranteed tolling arrangement with appropriate guarantees in place, they will relocate and assemble these refineries in Nigeria within a space of 8 months.

“NNPC will supply crude to them; they will refine locally and send back to NNPC to sell to the market. NNPC will pay them for the cost of processing only. It guarantees market for our product and create employment for Nigerians.”

Mele Kyari, the NNPC boss has said the corporation will crude-forproducts swap arrangement till 2023, even as it keeps an eye on Dangote refinery coming online in 2021.

DEALS

FPSO Tamara Tokoni to start work on Nigeria’s OML 119 STEPHEN ONYEKWELU

R

enamed floating, production storage and offloading vessel Tamara Tokoni is ready for deployment at the Okpoho field in oil mining lease 119 by the end of October, sources familiar with the deal have said.

Tamara Tokoni FPSO was formerly a Bumi FPSO. This is Century Energy Services second FPSO deal in a few weeks.

Last week the oil services company in a $40 million deal acquired Bumi Armada’s Armada Perdana FPSO that was initially operated on the Oyo field in Nigeria from Kuala Lumpur-based Bumi Armada.

In addition to processing the output from Okpoho, the FPSO is designed to act as a centre for production from third-party fields.

The FPSO can handle 120 million

cubic feet per day of gas, up to 50,000 barrels per day of oil (with debottlenecking) and can store 1.1 million barrels of crude, Iain Esau, an analyst at Upstreamonline said.

The Bumi deal follows Century Energy’s acquisition last month of the Front Puffin FPSO from Rubicon Offshore, which is operating on Yinka Folawiyo’s Aje field. That FPSO, acquired for $15 million, has been re-christened Tamara Naraye.

These deals make Century Energy the first indigenous Nigerian contractor to acquire and operate two FPSOs, simultaneously. However, it is understood that the contractor does not aim to compete with traditional FPSO players such as SBM Offshore, Bluewater or Bumi.

The advantages associated with floating production storage and offloading (FPSOs) over traditional semi-submersible oil rigs have positioned them as the preferred www.businessday.ng

offshore infrastructure of the future for drilling oil fields.

The latest global deals and investments are spurred by strong demand for FPSOs that oil and gas operators are currently seeking to develop oil and gas fields, especially in Brazil, Asia, and Africa.

There are 186 FPSOs currently in operation around the world, 43 of which are operating in African waters, this just under 25 percent of the total. Ten percent of all FPSOs are operating specifically in West Africa, with one FPSO in Ghanaian waters, one off the coast of Mauritania, two in Cote D’Ivoire, and 14 off coastal Nigeria.

The FPSO purchase price comprises an initial deposit of $5.5 million to be paid to Bumi’s subsidiary Armada Oyo. Of this amount, $4.5 million has already been paid with the remaining $1 million payable by the end of this year. A further

https://www.facebook.com/businessdayng

$11.6 million will be used to settle amounts owing.

Bumi said $5 million will be paid on or before the earlier of six months after the vessel is delivered to Century Energy or when oil is first produced from the field to which the vessel is redeployed.

OML 119 is operated by stateowned Nigerian Petroleum Development Company (NPDC) which had been assessing plans to replace its ageing Mystras FPSO. Mystras, a 1976-built former tanker has been producing oil from the Okono and Okpoho fields since 2004 and was said to be in poor physical condition.

Since 2014, when it is understood Mystras had reached the end of its original design life, NPDC had held informal talks with various floater players and Nigerian engineering companies about securing a replacement vessel. Okpoho and @Businessdayng

Okono were discovered by NPDC in 1978 and 1983 respectively.

Despite being significant discoveries, the fields only started being exploited in 2001 when the Jamestown FPSO acted as an early production system, before being replaced by Mystras a few years later. Okono produces via subsea wells while Okpoho is tapped by a wellhead platform.

Eni originally operated OML 119 but in 2007 handed over operatorship to NPDC, a subsidiary of the Nigerian National Petroleum Corporation, and its block partner.

One year later, the FPSO Mystras, which was jointly owned

by SBM Offshore and Saipem, was sold to the OML 119 partnership.

Mystras converted in Dubai by DryDocks, is designed to handle 80,000 barrels per day (bpd) of oil and has a storage capacity of 1.1 million barrels.

32

Tuesday 17 September 2019

BUSINESS DAY

ENERGY INTELLIGENCE

Neconde is doubling down on gas ISAAC ANYAOGU

I

ndigenous oil producer, Neconde is pushing to double its gas footprint in Nigeria’s energy sector with an ambition to double its current 80 million scf per day production.

“Our plan is to increase our associated gas production to 80 million scf per day, and that requires putting in place more gas infrastructure,” said Chichi Emenike, head of Gas Ventures, Neconde Energy Limited Neconde, a subsidiary of the Nestoil Group, a Nigerian exploration and production company with offices in Lagos, Warri, Port Harcourt and Abuja.

Emenike said the company has developed a central processing facility which still requires additional infrastructure, including pipelines.

Neconde is revamping the Central Processing Facility (CPF) for gas in Odidi to deliver up to 80 MMscf/d to Escravos-Lagos Pipeline System (ELPS).

“We have off-takers who have also indicated interest. They are currently discussing with us. In the long term, we’re looking at the non-associated gas,” Emenike said.

Emenike said Neconde is also looking at putting in place Liquefied Petroleum Gas infrastructure.

“We have a lot of the LPG in Ni-

geria but unfortunately the percapital usage is small compared to other countries such as Ghana and Senegal.”

She called for pragmatic policies including willing-seller and buyer arrangements and for the government to provide enabling environment through tax waivers to incentivise more gas adoption locally.

Since acquiring 45% stake in OML 42 previously held by a con-

sortium of International Oil Companies (Shell, Total Exploration and Production Nigeria Limited, and Nigerian Agip Oil Company Limited), Neconde has emerged a prolific indigenous oil producer, successfully navigating the critical security issues that caused the IOCs to abandon the lease.

OML 42 is located onshore West Delta with an area of 814 km2. OML 42 has 7 fields which

have produced hydrocarbons and 5 undeveloped discoveries. The 2P reserves stand at 600 MMbbls.

Crude oil had been produced since 1969 from the seven fields in OML 42 using flow stations at Egwa, Batan, Ajuju, Odidi and Jones Creek until 2005 due to security issues. Production fell from as high as 250,000 bpd to around 50,000 bpd.

In early 2012, Neconde and

NPDC agreed a work program to rehabilitate the remaining shut-in fields to reopen about 80 wells for production. In October 2013, rehabilitation works started in Odidi field and it was re-opened in October 2014. Odidi is currently producing at 22,000 bopd. Rehabilitation works at Jones Creek started in July 2014 and was completed in August 2015. Production from Jones Creek currently stands as 36,000 bopd. Egwa rehabilitation has commenced and is expected to complete in 2019 with production of 20,000 bopd.

“The fact that a wholly indigenous joint venture (JV) has progressively revived this asset speaks to the capacity of indigenous companies in the oil and gas sector if given the right opportunities,” said Ernest Azudialu-Obiejesi group managing director, Nestoil Group and chairman of Neconde at the last Nigerian Gas Conference.

In June this year, a consortium of seven local and international lenders signed an agreement to refinance Neconde Energy Limited’s existing Senior Secured MediumTerm Loan Facility Agreement worth $640 million, following a 20-year renewal of its Oil Mining Licence (OML).

Neconde seeks to deliver 500 MMScf/d to the domestic gas market within the next five years.

Nigeria racks in N3.9 trillion from WAPP to synchronise power crude oil export in Q2 2019-NBS systems in 14 ECOWAS countries …4.4% lower than Q2 2018 DIPO OLADEHINDE

L

atest data from the National Bureau of Statistics (NBS) has showed Nigeria’s crude oil exports which still cover a huge chunk of Nigeria’s total export of 85.6 per cent recorded an increase in the second quarter of 2019 of 16.5 percent compared to the corresponding period last year.

This implies that Nigerian economy is still reliant on crude oil for foreign exchange earnings and by extension government revenue.

According to the latest data from the state’s statistical agency, Nigeria recorded a total crude oil export of N3.9 trillion in Q2 2019 which was 16.5 percent higher than Q2 2018 and 4.40 percent higher than in Q2 2018.

Further, breakdown revealed in April 2019 Nigeria’s total crude oil export was valued at N1.3 trillion, while in May and June the country recorded N1.2 trillion and N1.2 trillion respectively.

Gbolahan Ologunro, a research analyst at Lagos-based CSL Stockbrokers said the growth recorded in Q2 2019 was driven more by environmental stability, relative peace

in Niger delta and mild increase in oil production.

“No major export pipeline was shut down due to leakages or maintenances which also aided production during the period,” Ologunro told BusinessDay. Ologunro noted that in the absence of any major shock in price or production Nigeria will likely sustain this trend of growth in the remaining quarters of this year.

Also, the value of other oil products exports which represent 9.44percent of Nigeria’s total export decreased by 21.69per cent compared to Q1 2019, and 15.9 percent compared to Q2 2018 while energy goods exported decreased in value by 12.31 percent compared to Q1, 2019 but increased by 15.15 percent when compared with Q2 2018.

How the oil and gas sector performs matters because slightly over 50 percent of revenue projections for the 2019 fiscal year is predicated on strong growth in the sector. The proposed federal government budget is anchored around revenue projections of N6.97 trillion for the 2019 fiscal year.

Nigeria oil sector has finally exited www.businessday.ng

a painful recession after four consecutive negative growths. According to NBS, Nigeria’s oil sector grew by 5.15 percent quarter on quarter against -1.46 percent in Q1 2019.This is the first and biggest growth recorded since Q1 2018 were the sector recorded a GDP growth of 14.02 percent.

Adeola Martins, research analyst at Caritas Capital said the relative calmness in Nigeria’s export terminals, peace in Niger delta and increase in indigenous oil production is responsible for the improved performance.

“How can we sustain and build on this momentum is the major challenge,” Martins asked.

Nigeria’s oil and gas industry, remains it’s most lucrative and viable investment opportunities as stakeholders believe that the oil and gas sector offers consistent opportunities in solving Nigeria’s dwindling revenue.

Today, Nigeria is only capable of pumping some 2.5 million barrels of crude oil per day despite sitting on more than 40 billion barrels of proven reserves with its mid-stream and downstream infrastructure are arguably in worse shape than upstream production.

https://www.facebook.com/businessdayng

T

he West African Power Pool (WAPP), has said that it is working assiduously to synchronize the interconnected Power Systems of 14 countries of the West African Member States, which is currently operating three separate networks, into a single reliable network.

Usman Gur Mohammed, managing director/CEO of the Transmission Company Nigeria (TCN), who is also the chairman, Board of Directors of WAPP, made this known when he declared open a 3-day meeting on Synchronization of WAPP Networks with the theme; “Tuning of Power System Stabilizers (PSS), Field Testing of Governors, Setting Change of Governors and Synchronization of WAPP Network Contract”, recently in Abuja.

Mohammed noted that the synchronization project was part of WAPP’s mandate by the Authority of the Heads of States and Governments of the Economic Community of West African States (ECOWAS), to establish a mechanism and institute frame work for integrating the national power systems of member states

@Businessdayng

into one regional electricity market.

According to him, the project, in terms of scope, was the most complex to be executed by WAPP, even as he expressed confidence that representatives from various companies would work to support its successful execution.

Mo h a m m e d a p p e a l e d t o member states to allow the consultant of the project, General Electric (GE) International, access to their power plants to test the governors, tune their power system stabilizers, and change their setting where necessary, with the ultimate goal of achieving a successful synchronization.

He stated that the task before the GE in the test process is that they would require the assistance of Original Equipment Manufacturers (OEM), to enable them effectively implement the synchronization project.

He therefore called on all participants at the meeting to proffer advice, suggestions, and actively support as well as participate in the decision process with the view to contributing meaningfully to the execution of the project.

Tuesday 17 September 2019

BUSINESS DAY

33

OFFGRID BUSINESS

Global investment in renewable energy dropped by 17% in H1 2019 – Report DIPO OLADEHINDE

A

yearly report released by United Nation Environmental program in conjunction with Bloomberg New Energy Finance has said global investment in renewable energy excluding large hydro dropped by 17percent in the first half of 2019 compared to the same period in 2018.

The report called Global Trends in Renewable Energy Investment 2019 said contributing most to the fall was an estimated 60percent shrinkage in Chinese capital investment compared to a year earlier while the U.S. was down 12percent in the first half of this year, and Europe down 11 percent “We know that renewables make sense for the climate and for the economy. Yet we are not investing nearly enough to decarbonize power production, transport and heat in time to limit global warming to 2C or ideally 1.5C,” Svenja Schulze, Germany’s minister for the Environment, Nature Conservation and Nuclear Safety said in the report.

Also, the slower growth in renewable energy investment can be attributed mainly to falling

costs in solar and wind globally, and to the change in market conditions with reduced subsidies in many countries.

“If we want to achieve a safe and sustainable future, we need to do a lot more now in terms of creating an enabling-regulatory environment and infrastructure that encourage investment in renewable,” Schulze said.

Jon Moore, chief executive of BloombergNEF, the research company that provides the data and analysis for the Global Trends report said sharp falls in

the cost of electricity from wind and solar over recent years have transformed the choice facing policy-makers.

“These technologies were always low-carbon and relatively quick to build. Now, in many countries around the world, either wind or solar is the cheapest option for electricity generation,” Moore said.

The report released ahead of the UN Global Climate Action Summit, noted that the year between 2010-2019 saw $2.6 trillion invested in renewable energy

capacity (excluding large hydro), more than treble the amount invested in the previous decade as solar attracted the most within the same period at $1.3 trillion, with wind securing $1 trillion while biomass and waste-toenergy secured $115 billion.

“China will be the top country by far in terms of the sums invested in renewables capacity during the current decade. It committed $758 billion between 2010 and the first half of 2019, with the U.S. second on $356 billion and Japan third on $202 billion,” the

report said.

The report also added that Europe as a whole invested $698 billion in 2010 to first-half 2019, with Germany contributing the most, at $179 billion, and the U.K. $122 billion, while India is an increasingly important investor in renewables, and had committed $90 billion by the end of the first half of this year.

The report released annually since 2007 acknowledged that the decade within 2010-2019 has seen a spectacular improvement in the cost-competitiveness of renewables, with the levelized cost of electricity for solar photovoltaics 2 down 81percent, for onshore wind down 46percent and for offshore wind down 44 percent.

“Behind these cost reductions in solar and wind have been a combination of economies of scale in manufacturing, fierce competition along the supply chain intensified by the introduction of auctions in many countries record-low costs of finance, and improvements in the efficiency of generating equipment,” The report which was also supported by the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety said.

CESEL unveils DPOWER solar system, targets 3,000 jobs

I

n its quest to deliver affordable and clean energy to millions of rural households living without electricity, Community Energy and Social Enterprise Limited (CESEL) has unveiled DPOWER, its Diaspora focused solar power initiative.

Nigeria’s Renewable energy policy aims to increase power generation from renewable energy sources from 13 per cent in 2015 to 23 per cent in 2025 and 36 per cent in 2030. The deployment of the solar home systems is expected to create 3, 000 jobs.

Speaking at the launch at the Federal University of Technology, Akure (FUTA), Patrick Tolani, CEO, CESEL said the initiative was borne out of the need to boost the power sector with part of the Diasporan remittance.

“We remit about $25 billion into Nigeria annually. So, we decided to find a means of harnessing this money. Out of this amount, we want to put $1 billion into the power sector.

“We are reaching out to diasporans and telling them that we can provide a simple solar system for the homes of their parents. We are expecting that millions of Nigerians will join this program. If you can find a reasonable means to give us the money, we do the job,” he stated.

According to him, FUTA has released one of its offices as the anchor office for DPOWER. Explaining how it works, he said,” What we have designed is very basic. Specifically, we have the 1 kw, that can power a house conveniently. We also have the 3 kw and 5 kw solar home system. When you pay to a threshold, we can now go to the desired place to install. We are working with others to make this work whereby Diasporans can pay by installment.

“Small businesses will be able to stay open for longer hours after sunset, students can continue their

studies in the evening, and off-grid families can charge phones or listen to radios in their own homes.

Speaking further, he said a major factor behind the project is the job creation potential it offers. “We want to put youths into employment.

Renewable energy particularly the solar energy subsector offers tremendous opportunities for massive employment.

“This is because the oil and gas sector that gives government about 90 per cent of its revenue employs less than 1 per cent of the population.

Our target is to create 3,000 jobs and increase the GDP. There’s virtually no part of the country without solar potential,” he said.

He therefore requested the support of the Nigerian Diasporan Commission. “We need the Diasporan Commission to make this a success.

To solve this energy problem, we need people of like minds that can work together.”

ANALYSTS: Isaac Anyaogu (Team Lead), Stephen Onyekwelu, Dipo Oladehinde

Barrister Olayinka Adeniyi (l), director, CESEL, and CEO, CESEL, Patrick Tolani at the official launch of dPower (Diaspora Power) in Nigeria.

Feedback: 07037817378, 08137433034, 08135447789

email: isaac.anyaogu@businessdayonline.com, stephen.onyekwelu@businessdayonline.com, oladehinde.oladipo@businessdayonline.com

34

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

Tuesday 17 September 2019

BUSINESS DAY

35

news

NCPC reduces pilgrimage fare to N715,000, signs contracts with air carriers, ground handlers Innocent Odoh, Abuja

T L-R: Adekunle Awojobi, MD, FBNQuest Trustees; Oba Otudeko, group chairman, FBN Holdings plc; Omobola Johnson, senior partner, TL Com Capital LLP/ former minister of communication technology; UK Eke, GMD, FBN Holdings plc, and Seye Kosoko, Pic by Pius Okeosisi chairman, FBNQuest Trustees, at the FBNQuest Trustees 40th anniversary ceremony in Lagos.

Activate Eastern Ports to ease gridlock in Lagos, NES President urges government ...Says oil sharing mentality hampers Nigeria’s economic development Innocent Odoh, Abuja

N

ational President of the Nigerian Economic Society (NES), Tamunopriye Agiobenebo, has called on the government to activate the Eastern Ports in order to ease the congestion and gridlock being experienced at the Apapa Port in Lagos.

The NES President made this call on Sunday during a media briefing preparatory to the 60th Anniversary Conference of the society, which will be declared open

by President Muhammadu Buhari on Monday in Abuja with the theme “ Economic Policies and Quality of Life in Africa”.

He lamented that all the ports in the eastern part of the country were idle, stressing that if the Port system is decentralised, this would go a long way in reducing the gridlock in Lagos ports and create more jobs in the country.

“All the Eastern Ports are idle. If you decentralise and activate them, Port Harcourt Port alone will give not less than 6,000 direct jobs.

Eastern importers will use the Port Harcourt Port and Eastern rail line. We are not doing that and so Apapa Port is gridlocked,” he said.

He noted that military rule was a disaster to Nigeria, arguing that the military men changed the nation’s economic trajectory with their method of governance.

He added that the oil wealth-

sharing mentality introduced the wrong incentives He said the discovery of oil would have changed the development narrative of Nigeria, but lamented that Nigeria developed wrong incentives associated with the sharing mentality.

“We have the wrong incentives. |This sharing mentality does one thing: for the states that are not having any cost but going to Abuja to share, their marginal cost is zero.

“The condition for equilibrium in Economics is marginal cost equals marginal benefits. If marginal cost is equal to zero, then marginal benefits must be zero. So, all we are doing is obeying that law by debasing our assets.

That is what has happened

to us.

“You might think it is an oil-based redistribution, but it is giving the wrong signals both in the market and institutions. There used to be cattle tax, they are gone.

Now, they are trying to revive it, but it’s difficult. So, our incentive system is wrong,” the professor said.

He also called on Nigerians to patronise made-inNigeria goods, saying, “Our shoes are as good as Italian shoes, except for the glue. So, if they can make up for the glue, our shoes will be good because they cost less than 50 percent of Italian shoes.

But when somebody wears our shoes, we classify him as poor. If we all leave what we produce, who is going to buy them?” he asked.

Monarchs urge FG to give Rivers security project a chance to save investments ...as ex-police officer tables 12 reform points to professionalise the police Ignatius Chukwu, Port Harcourt

C

alls have resumed to allow the muchdesired grassroots security system to resume in Rivers State where kidnapping, cult violence and oil vandalism have taken the upper hand, stifling businesses.

This is as the book writer, Mike Uche Chukwuma, a retired assistant commissioner of police who became popular as the best police public relations officer (PPRO) Rivers State ever had and author of the famous ‘The Noble policeman), has suggested 12 reform points to turn the Nigeria Police into a professional body.

Traditional rulers in the state have thus joined in the appeal to the federal government to allow the Rivers Neighbourhood Watch Corps (RSNWS) which has a board and a professional head to begin operations.

The position of the monarch came to the fore at the weekend in Port Harcourt at the unveiling of two books on policing when the acting Eze of Ekpeye

kingdom, his royal majesty, Felix Otuwarikpo made the passionate appeal.

Speaking before launching two books written by the excop, the monarch from Ekpeye appealed to the FG and other security agencies to allow the noble idea of the Rivers State Neighbourhood Watch (RSNW) to be actualised in the face of security challenges faced by the state.

He said: “The Rivers Neighbourhood Scheme is wellthought out and is capable of giving security attention to every inch of the soil of Rivers State.”

He said giving it political interpretation is not good, especially now that elections were over. “Enugu State just rolled out theirs and nobody stopped them. Please give Rivers State’s scheme a chance.”

The scheme is expected to recruit thousands of screened persons from all the local council areas and train them. The security agencies are part of the board and are expected to screen and train those to be www.businessday.ng

employed. The Rivers Neighbourhood operatives will form the much needed first layer of policing in communities and streets. They will be an information network and form the first layer of resistance and response in crime and violent situations.

They will provide the muchneeded grassroots plank upon which the police and other security agencies would rely.

About one of the books, Professionalism: Reform and the Nigeria Police, the Eze said the book suggests reforming the police as the way forward ineffective policing in Nigeria. “I think that reforming the police without first reforming or restructuring Nigeria will not work. Most of the reform points suggested would fall into step the moment the nation itself is reformed.”

In his own intervention, the king and Amanyanabo of Bonny, Edward Asimini William Dappa-Pepple, who was represented by the secretary of the Bonny Chiefs Council said governance is what decides the rest, even the police. “Get governance right, all others will

fall in place.”

He said the author, Chukwuma, who was his senior in college, has all the core values to move for reforms. “He has been so since college.’

The chairman of the Neighbourhood Watch Corps, Woriboye Dick Iruenabere, a retired Army Brigadier, described the books as fantastic. He also described the author as a bank of intellectualism.

In an exciting review that attracted several applause sessions, Karibi George, the notable fellow of the Nigerian Institute of Public Relations (NIPR), hailed the 12 reform steps suggested by the author.

He however differed in the suggestion that policemen should start off with specialisation. He said: “Instead of asking a policeman to start specialization from day one, let a policeman or woman serve in all departments for the first six years first so that when he/she becomes a Commissioner or Inspector-General of Police, he/she would be in a position to understand issues from all units.”

https://www.facebook.com/businessdayng

he Nigerian Christian Pilgrim Commission (NCPC) has announced the downward review of the cost of 2019 general pilgrimage to Israel from N731, 000 to N715, 000 for the December exercise, starts on November 17.

The Acting Executive Secretary of the commission, Esther Kwaghe, disclosed this during the signing of contracts with air carriers and ground handlers for the 2019 general pilgrimage exercise in Abuja at the weekend.

Kwaghe said “I want to announce to the general public that this year 2019 cost of pilgrimage to Israel has been reviewed downward to N715, 000 and this is the effort of the Chairman of the commission.

“After yesterday’s final negotiation of terms of contract for the 2019 pilgrimage exercise, I am happy that all of us have agreed on the terms and conditions that will govern this year pilgrimage. We are therefore here this afternoon to sign in line with due process of Bureau of Public Procurement (BPP) requirements. “ The Acting Executive Secretary while urging the service providers not to renege on the agreements of the contracts also tasked them on safety of the pilgrims and value for money, a statement from the NCPC said.

“While thanking the air carrier and ground handlers I urge you to be faithful in keeping to the latest and terms of the contracts. I assure you that we will keep to our own terms and do our best to all diligence to meet up with the obligations,” she stated.

On his own part the Chairman of the Commission, Yomi Kasali, said that the decision to reduce the price was informed as a result of entreaties and plea by the conference of states and other stakeholders. He noted that the commission also considered harsh economic situations in the country and

demands by many Nigerians to participate in the spiritual exercise.

Kasali said “We are just responding as a board to the plea of our stakeholders. The 36 state chairmen met with us and pleaded again that we should review this price downward. We want it to be affordable and the time we are in”.

He said Nigerians pilgrims should expect deep spiritual excellence as the commission is working round the clock to serve them better and ensuring that they get value for their money.

The chairman assured that all the technical lapses that were experienced during the Easter pilgrimage would be addressed. He added that it has nothing to do with the lack of planning on the part of the commission.

Kasali asked the air carriers and ground handlers to treat the Nigerians with respect and dignity during the pilgrimage exercise in the holy land.

According to him, “That is why I keep saying to us service providers try to treat an average Nigerian with care. I care about welfare and wellbeing, I care about service. When I pay for it, I want to get value for money. That is my kind of person and you should try and ignore the ugly ones.

He said he would not hesitate to show any service provider who is trying to compromise the standard the way out.

“You have every right to write to us, you have every right to share your thought with us, you have every right to have your say. I guarantee you we will not cheat you.

As long as we are here that is what government stands for:to defend the defenceless, be a voice for the voiceless and support the weak, “ Kasali noted.

Responding on behalf of service providers, Executive Director, AtlasJet Nigeria Ltd, Ercument Filiz, assured the commission to provide an outstanding service in this year exercise.

Bolaji Akinyemi asks Nigeria to Sue South Africa over Xenophobic Attacks

B

olaji Akinyemi, Nigeria’s former minister of external affairs, says the country has enough grounds on which to sue the South African government and some of its officials over xenophobic attacks on Nigerian immigrants to that country.

In an emailed statement on Sunday, Akinyemi called on Nigeria “to sue South Africa before the International Court of Justice for failure in its duty of care and protection of Nigerian citizens resident there” Additionally, he asked Nigeria to “file complaints against specific South African officials at the International Criminal Court for aiding @Businessdayng

and abetting the xenophobic attacks.”

The former minister said his counsel to Nigeria was based on some facts, including statements credited to some South African government officials.

Akinyemi, a former Director-General of the Nigerian Institute of International Affairs, listed some of these facts to include a statement by the South African Minister of International Relations, that Nigerians were drug dealers, and another credited to the Deputy Police Minister, Bongani Mkongi, that they fought for their land and that that land would not be surrendered to immigrants.

36

Tuesday 17 September 2019

BUSINESS DAY

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.’

Flour Mills delivers higher returns to shareholders BALA AUGIE

T

he consumer goods sector has not been spared the carnage of a flagging economy as incessant hike in price of fuel, devaluation of the currency, and inflationary pressures continue to squeeze consumer wallet.

An unemployment rate of 23 percent has put consumers in check, while the country overtook India to become the poverty capital of world; this means the vast majority of Nigerians don’t have enough money in their pockets to go shopping.

According to the African Development Bank, about 152 million Nigerians live on less than $2 a day, representing 80 percent of the country’s estimated population of 180 million.

To compound the woes of consumer goods firms, federal government, through its agencies, keeps imposing huge levies that stoke cost of production.

Stakeholders are blaming the high cost of doing business in the country on The Nigerian Customers Service (NCS); Customs processes are responsible for not less than 82 percent of charges incurred by consignees.

The menacing gridlock at the Apapa Ports is affecting the movement of raw materials to factories, timely delivery of finished goods to consumer and increasedturn-around time for companies.

At the moment, the closure of part of western border with Benin by federal govern-

ment is causing menacing pains to operators in the industry, as they are unable to ship their products to neighboring countries. Some items on the trucks are perishable goods, which could result in loss of revenue, and undermine bottom-line since companies may have to write off obsolete inventories to the profit and loss account.

Analysts were not surprised that the manufacturing and trade sector slumped, as evidenced in the latest GDP report by the National Bureau of Statistics (NBS).

According to the NBS , the trade sector which comprises of whole and retail trade contracted by 0.25 percent in the second quarter (Q2) of 2019, after recording three positive growth rates since the third quarter of (Q3 2018).

More worrying, manufacturing sector contracted by 0.13 percent from the 0.81 percent expansion in first quarter (Q1)-2019.

While other firms are groaning under the tough and unpredictable macroeconomic environment, Flour Mills of Nigeria Plc is thriving, as operational efficiency and excellent delivering strategy helped the company deliver a higher return to shareholders.

The largest miller in Africa’s largest economy grew revenue by 1.28 percent to N134.15 billion in the first three quarters to June 30 (Q1) 2019 from N133.02 billion the previous year.

A breakdown of sales figure shows Foods segment generated N81.55 billion in revenue, Agro, N25.63 billion; Sugar, N24.08 billion; and support services, N3.47 billion.

The flour miller issued a rights issue last year with a view to reducing its debt, a strategy that has yielded fruit as there has been a reduction in finance cost.

A combination of deleveraging strategy and benign raw material price at the international market help add impetus to profit, giving the company the leeway to pay bumper dividend to shareholders.

Cost of production has been growing at a slow pace, as cost of sales increased by 2.16 percent to N118.27 billion in Q1 June 2019 from N115.76 billion as at June 30 2018. The growth rate of (2.16) percent is lower than the 11 percent August inflation figure.

A breakdown of cost structure shows raw material cost- which makes up 85.75 percent of cost of productionincreased by 1.28 percent to N101.38 billion in the period under review from N100.15 billion the previous year.

Flour Mills’ operating income can cover its finance cost as times interest coverage ratio of 2.17 times exceeds international benchmark of 1.50 times.

Finance cost reduced by 26.61 percent to N4.23 billion in the period under review from N6.20 billion the previous year.

Net income increased by 14.63 percent to N4.23 billion in the period under review from N3.64 billion the previous year.

The company envisages even more organic growth across the food segment, with anticipation moderation in the cost of sales, as global wheat prices reduced and its improved investments

in aligning marketing, sales and distribution activities boost earnings and improve market gains.

Flour Mills, with over 17 subsidiaries, aims to gain an edge through its integrated processes. The need to backwardly integrate to reduce dependence on imported materials remains one of the strategic initiatives of the group.

The reduced dependence on imports is expected to shield the company from exchange rate fluctuations, tariffs and import barriers.

To this end, the bulk of investments made recently have been in agriculture and infrastructure to aid sourcing of inputs and improve processes.

According to the company, raw materials will be produced locally wherever possible to ensure that good quality products are developed through the full supply chain from growing to final consumer consumption – from farm to fork. The company’s operations are broken into four main segments: Flour Milling; Agro-Allied; Logistics & Support; Sugar Value Chain.

Nigerian retail and consumer landscape The Nigerian retail environment has been tough and scotching the expectations of manufacturers as they grapple with stiff competition, currency devaluation, hike in fuel price, decrepit infrastructure, and inflationary pressures.

To overcome these challenges Nielsen Nigeria, a subsidiary of the British information, data and measurement firm that studies consumers in more than 100 countries, identified in a recent report

ways retailers and manufacturers can beat the odds as Nigeria’s landscape is set for multiple shifts.

“Everyone is fighting for growth and competition for consumers’ wallets has never been tougher. In a challenging environment, finding opportunities with the right insights become key to help beat the odds,” said Ged Nooy, managing director and CEO of Nielsen Nigeria.

Nielsen reckons marketers need to cater to the demands of those who want value and at the same time those who are aspirational and want quality, premium products.

According to them, Nigeria is a complex market characterised by consumers who are upbeat and confident, with 81 percent feeling good or excellent about the state of their financials, while at the same time 60 percent say they can only afford the basics.

Nielsen argues that it is paramount for operators to understand consumer attitudes and perceptions and how they make choices, as 88 percent of consumers across Africa and the Middle East are ready to defect from a current brand choice and 45 percent consumers say they love to try new things.

“Opportunities are about understanding and delivering what consumers need and want. Times are changing. There are more products on the shelf today than ever before, from new and existing brands, and a plethora of information points, advocates and advertising telling consumers about them,” said Nooy The low cost and low price competitions are can-

BD MARKETS + FINANCE Analysts: BALA AUGIE www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

nibalising the sales of established players as a harsh and unpredictable macroeconomic environment has forced consumers to downgrade to cheap and affordable brands.

In just 10 years, Nigeria’s brick-and-mortar fast-moving consumer goods (FMCG) universe has nearly doubled in size.

There are more than 1 million outlets selling FMCG products, increasing in size by 500,000 outlets in less than 10 years, the Nielsen Shopper Trends report notes “It is also interesting to note that 50 percent of FMCG sales come from 60 LGAs (local government areas) in Nigeria. Given this retail landscape, the need is for precise and efficient distribution and trade strategies,” said the report.

New and existing unlisted companies have access to equity capital, as they continue to pursue an aggressive expansion plan with a view to increasing their share of the market.

Analysts at Nielsen say the future of retail is not limited to physical stores or virtual channels and that streamlined services, digital experiences and frictionless commerce are converging with the brick-and-mortar and e-commerce worlds set to shape new shopping experiences.

According to Nielsen Shopper Trends syndicated study, Nigerians shop 30 times per month and they want value and assortment when they shop.

“They are also price conscious, with more than 70 percent aware of prices and 95 percent noticing price changes,” Nielsen

Tuesday 17 September 2019

BUSINESS DAY

37

news

Energy access: Nigeria’s rural dwellers have reasons to envy Mozambican villagers STEPHEN ONYEKWELU

M

ozambique has an ambitious target to reach every Mozambican with electricity wherever they may be living within the borders of the Portuguese-speaking southern African country, a feat many Nigerian rural dwellers can only imagine.

This is unlike Nigeria, where over 80 million citizens living in 8,000 villages across the country lack access to electricity, according to the World Bank.

PricewaterhouseCoopers (PwC), a multinational professional services network with headquarters in London, estimates that in Nigeria, only one in five people has access to power from the electricity grid. This leaves four in five people living in urban and rural communities having to fend for themselves with makeshift and localised power solutions.

But Mozambique has taken the puzzle of energy access for its population head-on. It is achieving this through Fenix International, a subsidiary of ENGIE with operations in five countries including Uganda, Zambia, Côte d’Ivoire, Benin, and Nigeria.

The company has opened its sixth market in Mozambique where it expects to reach 200,000 households with clean energy and inclusive financial services within three years.

Fenix has partnered with Vodacom and Vodafone MPesa SA to tackle the challenges of distribution, connectivity and mobile payments that have left rural Mozambicans underserved by affordable energy products in the past.

The next-generation energy company is launching off-grid solar in Mozambique in partnership with Vodacom, a telecommunication company. Launching sales in Mozambique is the latest step in Fenix’s expansion. Headquartered in Kampala, the company has already connected 500,000 customers to solar power in Uganda, Zambia, Côte d’Ivoire, Benin, and Nigeria. Fenix has rapidly grown operations as a subsidiary of ENGIE, enabling the company to scale off-grid energy and financial services across new markets, with Mozambique the fourth new market opened within the past year.

“Mozambique has set an ambitious target with their ProEnergia initiative to reach 100

percent of the population with electricity by 2030. The country represents an optimal market for off-grid solar products, with only 27 percent of households currently connected to electricity and a highly distributed population,” Luke Hodgkinson, managing director of Fenix Mozambique, said.

Fenix’s operations will focus on reaching those most in need of energy access, particularly districts in the north of the country and people who are using expensive, polluting, and dangerous methods such as kerosene and candles to light their homes.

By replacing fossil fuelpowered lanterns, solar home systems allow off-grid customers to illuminate their homes with clean LED lights, as well as charge phones and run radios, TVs, hair clippers and speakers.

Fenix’s latest product, Fenix Power, is a GSM-enabled power system that enables the company to determine product usage and potential technical issues remotely, improving the customer experience. This is the first PAYGO solar company in Mozambique to use these Internet of Things (IoT) technologies to reduce costs and bring high-quality,

affordable technology to rural, last-mile customers.

Gulamo Nabi, from Vodafone M-Pesa SA, said they have been “working to unlock the potential of M-Pesa for the millions of Mozambicans in rural areas, far from the national grid or traditional financial services”.

Fenix is headquartered in Maputo but will operate in every province of Mozambique within the next three years.

Whilst sales have already begun in the South Region, the next point of entry for investment will be in the province of Nampula before the end of the year. This decision is motivated by Fenix’s commitment to delivering its solution to households most in need and in the hardest-to-reach corners of rural Mozambique.

“It is critical that Nigerians take steps to understand and embrace the new starting points for energy provided by stand-alone renewable technology and mini-grids.

We believe these solutions provide a viable, bottom-up solution to the patchy availability of electricity in Nigeria,” Pedro Omontuemhen, partner and lead, power and utilities, PwC, said.

L-R: Tom Yakubu, representing the president, Court of Appeal; Siaka Isaiah Idoko-Akoh, chairman/CEO Investments and Securities Tribunal; Jude Ike Udunni, member, and Emeka Madubuike, member, during the commencement of 2019/2020 legal year of Investment and Securities Tribunal in Lagos, yesterday.

Private sector asks Buhari to listen, implement recommendations of new economic council Continued from page 1

image-laundering tool.

For s start, they urged President Buhari to act on some of the tough recommendations which some members of the council have spoken about in the past, such as reduction of government recurrent expenditure, increase in budget transparency, support for growth of export sector, accelerating public-private partnership for critical infrastructure that will invite private capital, eradication of fuel subsidies, among others.

Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI), said the decision to set up an Economic Advisory Council was a step in the right direction. He, however, hopes the government would also be bold enough not only listen but also follow their recommendations as well.

“The newly-constituted economic advisory council is fully loaded with respected economists who will give dispassionate advice unlike politicians. Let’s hope the president will also listen to them,” Yusuf said.

Andrew Nevin, chief economist at PwC, said the establishment of the Economic Advisory Council was a very positive step as the Federal Government has promised to lift 100 million Nigerians out of poverty in 10 years. He, however, said this would only be possible with a private sector that is 10-15 times larger than today.

“The members of EAC are all outstanding thinkers and economists and the chairman Doyin Salami will undoubtedly provide excellent leadership. We are sure if the FG accepts the economic guidance of the EAC, Nigeria will prosper,” Nevin told BusinessDay by mail.

Ayo Akinwunmi of FSDH Merchant Bank said the Economic Advisory Council would set direction for the economy but added that the council is only working in advisory capacity and not economic management team. This, he said, implies

the president can either take or ignore their recommendations.

“The more we have intelligent economists engaging or advising the government, the better for the economy.

Due to the high calibre of the economic team, if some of the members feel they are just trumpeting, they may want to quit,” Akinwunmi told BusinessDay. Other stakeholders said the immediate task before the EAC is to solve dwindling government finances which have taken a toll on public infrastructure and economic growth as government has failed to meet revenue projections for the past three years and there are no signs the trend will reverse this year.

In the first six months of 2019, the government raised N2.0 trillion, 30 percent off the mark of projected revenues of N2.9 trillion for that period, and N6.9 trillion for the full-year, according to data by the Ministry of Finance.

The EAC, according to a statement by Femi Adeshina, presidential spokesman, will have monthly technical sessions as well as scheduled quarterly meetings with the president. The chairman may, however, request for unscheduled meetings if the need arises.

Other members of the council include Mohammed Sagagi, who will serve as vice-chairman; Ode Ojowu, member, and Shehu Yahaya, member.

Others are Iyabo Masha, Chukwuma Soludo, Bismark Rewane and Mohammed Salisu, who will serve as secretary (senior special assistant to the president, development policy).

Salami, chairman of the council, was born in 1963. He left the Central Bank of Nigeria in November 2017, after a stint as member of the CBN’s Monetary Policy Committee.

He is a Senior Fellow/ Associate Professor and fulltime member of the faculty at the Lagos Business School (LBS), Pan-Atlantic University.

NES Confab: Nigerians ‘ll soon enjoy improved standard of living – Osinbajo …Asiodu laments backwardness, poverty in the country, calls for patriotic leadership …NES President urges decentralization of ports Innocent Odoh, Abuja

V

ice President Yemi Osinbajo has assured Nigerians that the administration of President Muhammadu Buhari, has put policies in place that will improve the living standard of Nigerians just like it is obtained in other developed countries of the world.

The Vice President said this in his remarks while declaring open the 60th Annual Conference of the National Economic Society (NES), which started in Abuja on Monday, stressing the current government is in the process of developing a successor long term and medium-term development

plan for the country.

Represented by the Minister of State for Budget and National Planning Clement Agba, the Vice President noted that the theme of the conference “Economic Policies and Quality of Life in Africa” was apt and “consistent with our national development priorities coming especially on the heels of our determination to address the economic and social challenges facing the nation.”

He pointed out that the Economic Recovery Growth Plan (ERGP) was developed in response to the economic needs of the country at the beginning of the administration specifically to address the chal-

lenges in order to create a more inclusive society.

“Government has continued to implement the Social Investment Programme (SIP).

The sum of N500 billion has been appropriated annually for the SIP since 2016. This implies the continued determination of the government to pursue an inclusive society. Policies such as the N.Power Scheme have seen 500,000 graduates and 26,000 non- graduates engaged,” he said.

He said further that Government was making efforts at revitalizing the textile industry in the country, adding that the Ministry and Industry, Trade and Investment is working

www.businessday.ng

closely with relevant stakeholder to achieve this purpose.

He said that through the Growth Enhancement Scheme irrigation projects, tractors, harvesters, improved seedlings among others are being distributed to farmers, adding that the Anchor Borrowers Programme supported by the Central Bank of Nigeria has assisted in boosting the agriculture value chain in the country.

He commended the NES for organizing the conference saying that it provides the opportunity to exchange ideas aimed at improving the overall economic management at both federal and state levels.

The Chairman of the College

https://www.facebook.com/businessdayng

of Fellows of NES, Phillip Asiodu, in his remarks, explained the importance of the NES to the economic development of the country. He stressed that the Conference Position informed the basis of the 197074 National Economic Plan which put Nigeria on a positive economic growth trajectory.

He however, lamented the economic backwardness and the concomitant poverty in the country in recent years, saying “it is very sad to look back that about sixty years Nigeria has failed to make progress despite the resource endowment.”

He called for a more articulate and patriotic leadership that would harness the @Businessdayng

resources of the country and transform its potential wealth and industrialize the country.

President of NES Tamunopriye Agiobenebo, in his welcome remarks noted that the event would afford the stakeholders the opportunity to interrogate the economic challenges of the country and find ways of resolving them.

Earlier, during the pre-event briefing on Sunday, the NES President said oil sharing mentality had hampered Nigeria’s economic development even as he called on the government to activate the Eastern Ports in order to ease the congestion and gridlock being experienced at the Apapa Port in Lagos.

38

Tuesday 17 September 2019

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Monday 16 September 2019

Top Gainers/Losers as at Monday 16 September 2019 LOSERS

GAINERS

ASI (Points)

Opening

Closing

Change

Company

Opening

Closing

Change

OKOMUOIL

N48.4

N52.9

4.5

AIRTELAFRI

N350

N315

-35

DEALS (Numbers)

GUARANTY

N27.55

N28.5

0.95

CAP

N24.75

N23.25

-1.5

CADBURY

N10.75

N11.65

0.9

CCNN

N16.9

N16.15

-0.75

VOLUME (Numbers)

NB

N51.05

N51.5

0.45

DANGCEM

N155.4

N155

-0.4

VALUE (N billion)

N12.7

N13

0.3

UNILEVER

N29.3

N29

-0.3

MARKET CAP (N Trn)

Company

NASCON

27,574.32 4,795.00 271,236,709.00 2.905 13.423

Global market indicators FTSE 100 Index 7,321.41GBP -46.05-0.63%

Nikkei 225 21,988.29JPY +228.68+1.05%

S&P 500 Index 2,993.16USD -14.23-0.47%

Deutsche Boerse AG German Stock Index DAX 12,380.31EUR -88.22-0.71%

Generic 1st ‘DM’ Future 27,060.00USD -154.00-0.57%

Shanghai Stock Exchange Composite Index 3,030.75CNY -0.48-0.02%

Infinity Trust Mortgage Bank maintains profitability despite harsh operating environment Stories by Iheanyi Nwachukwu

I

nfinity Trust Mortgage Bank plc (ITMB Plc) said it has continued to maintain profitability despite the harsh business environment in the country. The company stated this at the ‘Facts behind the Figures’ which held Monday September 16 at the floor of The Nigerian Stock Exchange, Lagos Speaking at the event, the Managing Director, Olabanjo Obaleye explained that the bank performed excellently between the time of its listing on the stock exchange in 2013 and now.

He said, “The bank has increased its number of s h a r e h o l d e r s, a t t a i n e d National Primary Mortgage Bank status, and opened her Lagos regional office. We have received strong industry and regulatory ratings, and many industry and international

awards. The Bank also added two independent directors and became shareholders with Nigeria Mortgage Refinance Company and Mortgage Warehouse Funding Limited.

The bank has held its Annual General Meetings consistently.”

In the periods under review, ITMB Plc has recorded reasonable growth in its key business fundamentals. Total Assets, Loans and Investments grew by 51percent, 285percent and 10,000 percent respectively.

Deposits and shareholders’ funds grew by 122percent and 9percent respectively. Gross Earnings crossed the N1billion Mark in 2018 while profit before tax has continued to increase every year.

Obaleye, noted that the company is constantly exploring areas that can advance the core values of the bank, part of which is the adoption of digital initiatives like development of mobile application which will increase convenience and payment options available to customers.

L – R: Wale Agbeyangi, managing director, Cordros Capital, Broker to the Company; Abubakar Mohammed, independent director, Infinity Trust Mortgage Bank; Oscar N. Onyema, OON, chief executive Officer, The Nigerian Stock Exchange (NSE); Akin Arikawe OON, director, Infinity Trust Mortgage Bank Plc; Olabanjo Obaleye, managing director /CEO, Infinity Trust Mortgage Bank Plc; Tolu Osho, Company Sectary, Infinity Trust Mortgage Bank Plc and Abiodun Akanbi, head strategy and Risk Management, Infinity Trust Mortgage Bank Plc during the Closing Gong Ceremony in commemoration of the Facts Behind the Figures presentation at the Exchange.

“We believe that we need to be technology-driven and that is why we are exploring available options by joining the NIBSS platform to improve customer service, drive revenue and promote

corporate goodwill. We have also implemented end-to-end monitoring in a bid to Increase the number and quality of risk assets which will translate to higher earnings for the bank.”

He added that the goals

SEC to organise enlightenment for Nigerian Army Ordinance Corps

A

s part of its investor education programme, the Securities and Exchange Commission (SEC) is to organise public enlightenment programs for the Nigerian Army Ordnance Corps.

This was disclosed by the Head, Lagos Zonal office of the SEC, Stephen Falomo during a meeting between the Commission and Corps Commander, Nigerian Army Ordinance Corps, Major General O. A. Akintade and his team in his office in Lagos,

weekend.

According to Falomo, the SEC would organise one outreach programme at the Nigerian Army Ordnance Corps headquarters in Ojuelegba, with an expected participation of about one hundred (100) officers.

L-R: Olusegun Michael Fafore, executive assistant on public relations and New Media to Lagos State Governor, Buddy Valastro, popularly known as the Cake Boss, Shuli Adebolu, Lagos State Commissioner for Tourism, Arts and Culture, Ezinne Okonkwo, CEO, Dewdrops Cakes Limited and Organiser of the Fair, at the uncut learning 2 Seminar and Cake Fair held recently in Lagos. www.businessday.ng

“One outreach program will also be held at the Nigerian Army Ordnance Corps training institute in Ojo with an expected participation of about three hundred (300) officers.

“It is hoped that these programs will become a continuous feature in the officers’ training program organized every quarter” he said.

He reiterated the commitment of the Commission to educate all stakeholders in order to encourage participation by local investors in the Capital Market currently dominated by foreign investors.

Falomo stated that the request made by the Corps Commander was in line with the market development plan of the Lagos Zonal office and would be executed swiftly.

He said some initiatives introduced by the Commission were to ensure an investorfriendly and attractive system such as e-DMMS, regularisation of multiple accounts, Direct cash settlement, transmission of shares, among others.

https://www.facebook.com/businessdayng

of the Bank are to keep NonPerforming Loans less than 5percent, Cost to Income less than 50percent, Return on Equity to greater than 20percent and Weighted Average Cost of Fund less than

4percent. The Bank will also seek to continuously enhance earnings, profits and returns to shareholders as well as pursue expansion and growth Part of the key drivers of the company’s growth is its strong brand presence, increased customer confidence and marketing efforts, strong risk management and expenditure control. The bank has also experienced unequivocal growth through the public and private housing initiatives supported with efficient risk management framework.

The bank has articulated and instituted liquidity and IT contingency plans, capital management plans as well as dividend policies to guide against business disruptions and deterioration of capital.

The company is optimistic that the future can only get better, and enjoined members of the investing public to invest in the bank as they set to redefine the face of Mortgage banking in Nigeria.

We investigate suspicious transactions – SEC

T

he Securities and Exchange Commission (SEC) has assured investors that the Commission is committed to ensuring that suspicious transactions are not allowed in the capital market.

To this end, the Acting Director General of the SEC, Mary Uduk, urged market operators to make use of the Commission’s whistle blowing policy and report any such infractions for immediate actions.

Uduk, who was reacting to questions during the two-day international capital market conference, organized by the commission, in collaboration with the Department of Finance, University of Lagos, lamented that the private placement bubble happened with the connivance of many market operators who encouraged issuers to take advantage of loopholes in the relevant investment laws at the time.

Uduk recalled several efforts and appeals to such issuers, to list their shares without success, stressing that

@Businessdayng

“market operators encouraged private placements knowing that the law did not allow the SEC to regulate private companies.”

“Insider trading is what we have to prove. A lot of us are in the market and we have whistle blowing mechanism. It is the operators who will be in a better position to know and report such infractions. For those that have been reported to us, we have been carrying out investigations and once we have evidence we will invite them and also refer them to the relevant authorities “With the whistle blowing provision, we have always asked operators in the market to come to our aid if they find any unwholesome activity going on.

It is our market and so we all have to do our bit. The market should not be left to us alone; you need to provide information for us to take the necessary actions.

“Anyone that is caught engaging in any activity that is against the laid down rules, be rest assured that such an operator will be made to face the full wrath of the law”.

Tuesday 17 September 2019

BUSINESS DAY

39

news Apapa: Why presidential task team ...

Continued from page 1

of congestion and gridlock.

It sounds like fairytale, but a visit or drive through Apapa roads and bridges says it all – it can be done if the will to work and the right person is there. And that is what the Kayode Opeifa-led task team has demonstrated in Nigeria’s premier port city that was already degenerating into a wasteland.

Once again, Apapa is breathing and residents, business owners and motorists are heaving sighs of relief, simply because the present task team, unlike many others before it, has chosen to think and work differently.

Members of the team are drawn from the Presidential Enabling Business Environment Council (PEBEC), Nigerian Ports Authority and the Nigerian Shippers Council.

Other members include a special unit of the Nigeria Police Force led by a Commissioner of Police, the Federal Road Safety Corps (FRSC), representatives of the Truck Transport Union, the Lagos State Government through the Lagos State Traffic Management Authority (LASTMA), etc.

Travel time into Apapa through the Costain and Lagos Island routes inward Ijora has reduced substantially following the clearing of the roads and bridges by the presidential task team.

BusinessDay reporter who plies those routes to Apapa every day can authoritatively report that travel time through the Eko Bridge and Lagos Island axes has dropped significantly such that journey time from Ikoyi to Apapa, for instance, which used to take many hours before now, takes at most 30 minutes.

Commuters who spoke to BusinessDay on Monday said they were optimistic that the prevailing ease in traffic being experienced along the corridor would be sustained despite all challenges.

“When the military was brought to control Apapa traffic, I warned them against that. I told them that what was needed was a traffic management to complement what was being done on port reforms,” Opeifa, who is the executive vice chairman of the task team, told BusinessDay. “But they went ahead and brought the military and when they came, they shut down everything rather than use a traffic man-

agement plan. They were just enforcing and controlling misbehaviour while traffic situation was getting worse,” he said.

Opeifa disclosed that the team has been able to achieve what everybody can testify to because it has a clear traffic management direction which it followed and is still following, saying there is a manual call-up system which is transparent to the stakeholders, so they believe in it.

“We use the trade unions which we interface with and they usually take us to the shipping companies for discussions. We have incorporated more people into the task team and that has helped us a great deal.

We have support from the Lagos State government.

The NPA has also been of much help,” Opeifa said.

The journey, though, has not been easy in a highly militarised environment where, according to the task team vice chairman, a lot of people come from different military formations to make fast money.

“There had been too many taskforces and they are yet to leave the scene.

When they come, they come with aggression and are very vicious,” he said.

Another major challenge, he pointed out, is that the team sees corruption fighting back, because the people the task team has prevented from the regular ‘chop-chop’ are busy spreading wrong information about the team and trying to frustrate its efforts.

But many people, especially Apapa residents, business owners and some transport unions are commending the great work the team has done and continues to do.

Container owners, under the aegis Amalgamated Container Trucks Owners, have commended the team and also faulted allegations of sharp practices levelled against the team in some quarters, saying that the team should be commended for work well done, restoring sanity and orderliness in Apapa.

Olalaye Thompson, chairman of the association, who stated this while talking to newsmen, recalled that prior to the intervention of the presidential task team, they were paying as much as N150,000 or more to access the port, adding that corrupt practices under the previous joint taskforce led by the Nigerian Navy were responsible for the persistent gridlock in the axis. www.businessday.ng

L-R: Mike Ochonma, transport editor, BusinessDay Media; Toyin Gbadegeshin, superintendent of police/member, Presidential Task Team on Restoration of Law & Order in Apapa (PTTO-RLO); Kayode Opeifa, executive vice chairman, PRRO-RLO; Frank Aigbogun, publisher/CEO, BusinessDay Media; Hakeem Odumosu, commissioner of police and head of enforcement, PTTO-RLO in Apapa; Patrick Atuanya, editor, BusinessDay Media, and Olubunmi Otitooloju, chief superintendent of police and provost, PTTO-RLO, during the PTTO-RLO team visit to BusinessDay head office (The Brook) in Apapa, Lagos, yesterday.

Pic by Olawale Amoo

Saudi attack may push oil to $80 in gift, curse...

Continued from page 1

2019.

The Abqaiq facility is not a refinery or a petrochemicals plant, but is a crudeseparating facility where impurities like hydrogen sulphide are removed from the crude prior to export.

The Iran-backed Houthi militia in neighbouring Yemen has taken responsibility for the attack. The Houthis have tried to attack Saudi oil installations before, and have launched missile attacks on Saudi airports.

Analysts say the success of this drone strike is a serious escalation, and one that the Saudis are going to be enraged by.

Initial reports suggest that damage is extensive and that at least 5.7 million barrels of crude oil per day (approximately 5 percent of global supply) will be off the market. There have been further contradictory reports as to how long this supply disruption will last. Some reports suggest that normal operations will resume this week, others suggest that normal operations will take at least a couple of weeks, perhaps even months.

“First, given what has happened in Saudi Arabia, OPEC is unlikely to enforce the production cuts until the Saudis are back in the market,” analysts at Lagosbased SB Morgen said in a note to clients, Monday.

“However, internal instability and insecurity mean that Nigeria’s ability to take advantage of any major conflict in the Middle East is very limited. In the short term, however, oil prices are likely to jump above $70 per barrel,” SBM analysts said.

“Nigeria’s strategy of essentially accommodating theft of what amounts to almost 10 percent of daily official production numbers by the actors in the Niger Delta has guaranteed the unbroken flow of supply from the Nigerian oil fields in the

delta. So the country stands to gain a bit if this holds.

However, given that the US has said it would release oil from its strategic reserves in order to balance supply, there will be no windfall for Nigeria,” they said.

Higher oil prices have often meant Nigeria, Africa’s biggest oil producer, can earn more in foreign exchange and fund its budget deficit. This is because oil accounts for 90 percent of Nigeria’s foreign exchange and 85.6 percent of Nigeria’s total export.

Nigeria relies heavily on earning from oil exports, and even more cherry for members of the Organization Petroleum Exporting Countries (OPEC), who have had to bear the brunt of oil production cut in the past in a bid to shore up prices.

A higher oil price would be good news for Nigeria which is currently struggling to meet its revenue targets, but economists have also said that the fuel subsidy regime could neutralise potential benefits.

“Oil prices will go up and then level out in the short run, so Nigeria should make more money from crude sales. But it is not necessarily going to be a net positive for the country.

We will clearly pay more for subsidies and let’s pray there are no production disruptions in the Niger-Delta region,” Ayodele Oni, energy partner at Bloomfield Law Practice, said.

Nigeria reportedly spent $5 billion to subsidise imported petroleum products in 2018 as all its refineries are either down or performing poorly.

“We need to be wary of this trend, and think long term because the Nigeria production is susceptible to the same impact, and recovery would not be as quick as the Saudis. So we should reflect and not celebrate,” Bolaji Ogundare, CEO of NewCross Exploration and Production Limited, said.

Other sources said bene-

https://www.facebook.com/businessdayng

fits of higher oil prices hardly count as the government has to spend much of the extra revenue to keep the official pump prices.

“Those who already have volumes can benefit from the short-term rise in oil prices.

But Nigeria isn’t well positioned to take full advantage due to lack of investments and clarity regarding legal and fiscal frameworks governing the sector,” Israel Aye, senior partner, energy & commercial contracts, Primera Africa Legal (PAL) and director at Aspen Energy Nigeria, said.

Aye said irrespective of the movement in crude oil prices, “the downstream is really where the money is made and so far Nigeria has been doing poorly”.

“The Middle Eastern nations have aggressively courted investors over the years as the best investment destination; Nigeria now has a chance to make a case,” Aye told BusinessDay. In the 2019 budget, the projected revenue expected from the oil sector is about 52 percent of the total revenue profile of the budget with the Federal Government projecting about N3.73 trillion as oil revenues while N710 billion is expected from government equity in Joint Ventures.

The 2019 budget was benchmarked at $60. However, despite fluctuation below and above the projection, the government has been trying to make up for falling revenues by increasing taxes and borrowing both from foreign and local sources.

There are also concerns as to whether the situation in Riyadh will allow Africa’s biggest oil producer pump more oil into the market. Mohammed Barkindo, OPEC secretary-general, however, said the situation is “under control”.

“I have had series of meetings with the leadership of Nigeria and Iraq and they have assured me they will be faithful to their obligation,” Barkindo told Bloomberg TV. @Businessdayng

“There is no unilateral action that will be taken by both Nigeria and Iraq; I have been in contact with the countries.”

Iraq has been pumping 4.8 million bpd in recent months instead of its target of 4.512 million bpd. Nigeria produced 1.84m bpd in August versus its target of 1.685 million bpd.

How quickly Saudi Arabia resolves its production challenge is still unknown as Riyadh promised that it would provide much-needed information about the scope and severity of its damaged facilities within 48 hours, yet has so far failed to do so, leaving commodity traders scrambling and dependent on rumors and innuendos, to evaluate just how long the output shortage would last and how much oil would be taken offline for at least a few days.

Some industry sources said it might take weeks and not days while others said there won’t be a detailed update any time soon because the Saudis themselves have no idea what is going on, and are seeking “clarity on damage”.

Also, Goldman Sachs warned clients an extended Saudi oil outage could push Brent crude prices north of $75 per barrel as the historic attack on the country’s processing plant disrupts one of the globe’s largest energy supply chains.

“The magnitude of such a price rally is difficult to estimate in the absence of official comments on the timeline and scale of production losses,” Currie and Courvalin wrote. “An extreme net outage of a 4 mbd for more than three months would likely bring prices above $75 to trigger both large shale supply and demand responses.”

OPEC members and non-members including Russia agreed in December to reduce supply by 1.2 million bpd from Jan. 1 this year.

OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members, exempting Iran, Libya and Venezuela.

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

A1

Tuesday 17 September 2019

FT

BUSINESS DAY

41

FINANCIAL TIMES

World Business Newspaper

SAM FLEMING AND JIM BRUNSDEN IN BRUSSELS AND GEORGE PARKER IN BOURNEMOUTH

E

U chiefs said they heard nothing new from Boris Johnson after a high profile visit to Luxembourg that ended with an abandoned press conference and an extraordinary public reprimand from the country’s prime minister Xavier Bettel.

Mr Johnson headed to Luxembourg for talks with European Commission president JeanClaude Juncker and Mr Bettel on Monday hoping he would advance his renegotiation of Britain’s Brexit deal.

Instead, Brussels said the UK prime minister had brought no fresh proposals to the table, while a visibly angry Mr Bettel chastised the Conservative government for trying to blame the EU “for the mess we are in at the moment”.

Mr Bettel spoke to reporters after plans for a joint press conference with the UK prime minister were abandoned. Mr Johnson was swiftly led to a waiting car, amid boos and jeers from a crowd of anti-Brexit protesters, including many British ex-pats, who had gathered outside Mr Bettel’s office.

The Luxembourg prime minister returned to address the media alone. Gesturing at one point to an empty podium next to him, Mr Bettel said it was for the UK prime minister to come forward with proposals. With the Brexit

Boris Johnson reboot of Brexit talks founders as EU demands detail

Luxembourg premier lambasts Tories for trying to blame Brussels for ‘mess we are in’

European Commission president Jean-Claude Juncker, right, meets UK prime minister Boris Johnson in Luxembourg on Monday © Olivier Matthys/AP

deadline just six weeks away, people needed clarity about Britain’s future relations with the rest of the EU, the Luxembourg prime minister said.

“We need more than just words, we need a legally opera-

tional text to work on as soon as possible,” he said, adding that EU and UK citizens “need clarity” and should not be held “hostage for party political gains”.

Mr Bettel’s comments underline the EU’s mounting frus-

tration at the gap between Mr Johnson’s claims of progress in the negotiations and the reality that positions over how to prevent a hard Irish border remain far apart. They also reflect the EU’s determination to push back

against claims by Mr Johnson, UK foreign secretary Dominic Raab and others that the EU is seeking to impose unfair conditions on Britain.

“We did not decide to organise Brexit, it is a unilateral decision of the UK government,” Mr Bettel said, noting that the bloc had agreed a 585-page withdrawal treaty with Mr Johnson’s predecessor Theresa May. In its own statement after Mr Juncker’s lunch with Mr Johnson, the commission said it was the UK’s responsibility to come forward with legally operational solutions that were compatible with the withdrawal agreement governing Britain’s proposed exit from the EU. The meeting between the two men was described as good humoured, but Brussels was surprised by the lack of detail put forward by the UK prime minister. The commission said it was ready to study any UK proposals for replacing “backstop” plans agreed to by Mrs May for preventing an Irish border but that “such proposals have not yet been made”.

Purdue Pharma files for bankruptcy as Apple has day in court over Irish tax bill some states stall on opioid deal The iPhone maker’s appeal to its €13bn fine is heard same week as its latest product launch Opiod maker owned by Sackler family has yet to reach deal with all attorneys-general

HANNAH KUCHLER IN SOUTH YARMOUTH

P

urdue Pharma, the opioid maker owned by members of the Sackler family, has filed for bankruptcy, as it hopes to force holdout states to accept its offer to settle litigation that accuses it of helping cause the US opioid epidemic.

The maker of OxyContin announced that it had filed for Chapter 11 bankruptcy late on Sunday night, after weeks of negotiations to try to reach a settlement over potentially extensive legal liabilities from more than 2,600 lawsuits.

States were split over whether to support its offer — which Purdue estimates is worth more than $10bn — or risk getting less to fund a clean-up of the crisis if the company went bankrupt.

The agreement, which does not include an admission of wrongdoing, is now subject to approval by the bankruptcy court.

Steve Miller, the turnround specialist who became chairman of Purdue Pharma’s board last year, said the bankruptcy

and settlement offer was “the best and only way to resolve the unmanageable litigation rapidly depleting the company’s assets and which threatens to ultimately destroy the entire value of Purdue”.

“Whatever else people might wish for is not on the table to be decided. Now, there is a stark choice,” he said. “We are hopeful of gaining the support of the rest of the states. The alternatives are to allow all the resources available to be devoted to communities in need or spend it all on litigation.”

Some 24 state attorneys-general including from Texas and Tennessee, as well as officials from five US territories, agreed to accept Purdue’s offer last week. The lead lawyers representing 1,000 cities and counties also supported the offer.

The holdouts include New York, Massachusetts and North Carolina, which have all said they intend to pursue the Sackler family for more of their personal wealth to contribute towards large healthcare and law enforcement bills related to the opioid epidemic. www.businessday.ng

PATRICK MCGEE IN SAN FRANCISCO AND JAVIER ESPINOZA IN LONDON

I

f all goes to plan for Apple, this week will be all about the iPhone 11. But Friday’s product launch will come just after fresh headlines about news it would rather people forget — allegations that it dodged taxes and took €13bn of illegal state aid from Ireland in exchange for creating jobs.

The accusations emerged in 2016 when the European Commission said Apple and Ireland had created an “artificial” profit arrangement enabling the iPhone maker, in defiance of EU law, to pay a tax rate of less than 1 per cent.

Both Ireland and Apple appealed, and on Tuesday and Wednesday the court battle begins when judges in Luxembourg hear arguments from both sides.

Murmurings in Brussels’ favour could generate negative headlines for Apple and embarrass chief executive Tim Cook, who has tried to present the company as being on the side of consumers against other tech giants

https://www.facebook.com/businessdayng

with its emphasis on privacy and security. He has previously called the EU decision “total political crap” and accused the commission of rewriting Apple’s history and ignoring Ireland’s tax laws.

“This claim has no basis in fact or in law,” Mr Cook said in 2016.

“We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don’t owe them any more than we’ve already paid.”

A ruling is expected by the end of next year. But whatever the outcome, the losing party is set to appeal. After that, an appeal is likely to go through the European Court of Justice where the case is expected to take three to four years to reach a conclusion.

At the hearing on Tuesday, all parties are expected to flesh out arguments heard before.

Apple has accused Brussels of “legal mumbo jumbo.” In 2016 its finance head, Luca Maestri, said the commission was ignoring the reality that Apple’s research and development happens at its Cupertino headquarters, whereas Ireland only performs distribution, procurement and logistics.

@Businessdayng

“They are simply pretending that all the value of the Apple products are generated in [the Irish city of] Cork,” he had said.

Brussels has accused Apple of avoiding taxes for more than 20 years on almost all profits in Europe and other global markets, by allocating profits to a “head office” in Ireland which had no employees and existed “only on paper”.

Ireland has long complained that the EU has interfered with its sovereignty, misunderstood state-aid rules, and accused Brussels of undermining Ireland’s low corporate tax-regime. It is expected to argue Tuesday that it has not granted Apple any selective advantage when it comes to taxes and that it couldn’t tax the company profits that are not taking place there.

When Brussels first imposed a record-breaking €13bn tax penalty on Apple, it triggered a vitriolic response in Dublin, Silicon Valley and even Washington, which accused Brussels of trampling on international tax norms.

Apple paid the fine last year — €14.3bn with interest — but it has been held in escrow.

42

Tuesday 17 September 2019

BUSINESS DAY

FT

NATIONAL NEWS

Trudeau’s grand promises go missing in Canada election Canadians head to next month’s poll dissatisfied with all their electoral options JASON KIRBY IN TORONTO

T

he day after Canada’s federal election campaign officially got under way, the party leaders faced off for their first televised debate, with one conspicuous exception — prime minister Justin Trudeau was a no-show.

While the leaders of three national parties sparred over topics such as the economy, indigenous issues and the environment, a podium put out for Mr Trudeau stood empty. Prior to the debate, Green party leader Elizabeth May pretended to shake hands with an invisible Mr Trudeau.

“I think we can all agree that Justin Trudeau is afraid of his record and that’s why he’s not here tonight,” said Conservative leader Andrew Scheer, who is trailing Mr Trudeau narrowly in the polls.

Mr Trudeau’s decision to stay away from Thursday night’s debate was widely seen as reflective of a government struggling to reconcile the grand promises he made in 2015 about change and transparency in government with the reality of the past four years.

“The ‘sunny ways’ approach he campaigned on backfired because it set high hopes that were not entirely met,” said Stéphanie Chouinard, an assistant professor of political studies at Queen’s University.

Mr Trudeau’s office had already said he would not attend the debate. He has agreed to participate in only one English-language debate next month, which was set up by a debate commission his government created, while he is set to take part in two Frenchlanguage debates.

But on the broader issue of Mr Trudeau’s tarnished image, pollster Shachi Kurl of the Angus Reid Institute noted: “Trudeau has broken his own brand.”

His Liberal party have several achievements they can point to in their bid for re-election. Under Mr Trudeau cannabis use was legalised, fulfilling a key pledge that drew the support of many young voters in 2015. His government implemented a national carbon tax to fight climate change. Meanwhile, a relatively strong economy and increased government benefits helped reduce child poverty to the lowest level on record.

Yet key promises from 2015 were broken or fell short. Mr Trudeau abandoned his pledge to reform Canada’s electoral system to do away with the first-past-thepost system. He angered environmentalists by supporting the Trans Mountain pipeline.

And while some steps were taken to improve the lives of indigenous people, they fell short of establishing the “nation-to-nation” relationship with First Nations that Mr Trudeau promised.

“The last four years has seen some significant moves but mostly ornamental change,” said Niigaan James Sinclair, of the department of native studies at Manitoba university.

Mr Trudeau also continues to be dogged by the SNC-Lavalin controversy. Earlier this year revelations that he and other officials tried to pressure former attorneygeneral Jody Wilson-Raybould to help the Quebec-based engineering company avoid criminal corruption charges resulted in his poll numbers tanking. Mr Trudeau later ejected her from the Liberal caucus.

The Liberals have climbed back to take a shaky lead in the polls over the Conservatives.

But then, just hours before Mr Trudeau triggered the election, Canada’s Globe and Mail newspaper reported that officers from the Royal Canadian Mounted Police had interviewed Ms WilsonRaybould about political interference in the SNC-Lavalin case on Tuesday.

“SNC has been a big stain on the Trudeau record,” said Ms Chouinard, though she believes the Liberals have already lost all the votes they are going to over the controversy.

The danger for Mr Trudeau is that young voters who supported him in 2015 could feel discouraged and stay home on election day on October 21, while Mr Scheer’s voter base is older and more committed.

“The left of centre in Canada is a mile wide and an inch deep,” said Ms Kurl. “The question is always will they turn out to vote and will they vote as a group or be split.”

With both the left-leaning New Democratic party, led by Jagmeet Singh, and Ms May’s Green’s positioning themselves as the change vote for 2019, the Liberals have turned to scare tactics to keep Mr Trudeau’s supporters from straying.

The Liberals have targeted Mr Scheer on social issues in recent weeks, resurfacing a 2005 video in which he explained his opposition to same-sex marriage. Mr Trudeau has also hammered Mr Scheer over the issue of abortion, suggesting the Conservatives will let backbench MPs introduce antiabortion legislation, something Mr Scheer has promised he would not allow.

If left-of-centre voters believe Mr Scheer could win, the Liberal thinking goes, they will stick with Mr Trudeau to stop that from happening.

It has all left Canadian voters a grumpy lot, disliking either of their options between the Liberals and Conservatives. An Angus Reid poll released this month found 63 per cent of Canadians hold an unfavourable view of Mr Trudeau, while 52 per cent share the same view of Mr Scheer. www.businessday.ng

Judit Varga, Hungary’s justice minister, arrives in Brussels for the first EU disciplinary hearing on alleged democratic backsliding by Budapest. She said the country would be ‘putting law back into the rule of law debate’ © Olivier Hoslet/EPA-EFE/Shutterstock

Hungary launches anti-EU broadside as Brussels hearings start

Budapest slams rule-of-law proceedings as politically motivated in 158-page riposte MICHAEL PEEL IN BRUSSELS AND VALERIE HOPKINS IN BUDAPEST

H

ungary has attacked EU claims of democratic backsliding

by Budapest as “politically motivated, biased, and factually incorrect” ahead of Brussels’ first disciplinary hearing into the allegations.

Judit Varga, Hungary’s justice minister, who is in Brussels for Monday’s hearing, tweeted that her country would be “putting law back into the rule of law debate”. She referred to a 158-page riposte published on Monday by Budapest, in which it restated why it thought the proceedings were unwarranted and challenged the legal basis and mo-

tives for invoking the procedure.

“The Hungarian government is of the view that the resolution of the European Parliament is politically motivated, biased, and factually incorrect in many aspects, therefore its conclusions are unjustified,” the document said. “In addition, it addresses a number of issues that manifestly fall outside the legitimate scope of the procedure.”

The Budapest broadside also calls for a “timely closure” of the Article 7 disciplinary process, launched by the European Parliament a year ago after prime minister Viktor Orban’s government introduced new laws on the judiciary, media and foreign universities.

Budapest’s moves sparked concern in other member states

over the rule of law and whether Hungary was breaching the EU’s fundamental values.

The Article 7 procedure could potentially lead to Hungary losing its EU voting rights. However, some EU diplomats have argued that the mechanism has proved a toothless way to deal with autocratic creep in the bloc.

Sanctions require unanimous agreement, but Hungary and Poland, which is also facing Article 7 proceedings, have each vowed to block such measures against the other.

Officials are searching for new mechanisms to enforce democratic standards. Proposals for the EU’s next multiyear budget would tie funding to performance on the rule of law — a link opposed by both Hungary and Poland.

Alternative meat products are not the answer for poorer countries It is time we recognised the vital role livestock plays across the world’s developing economies ISABELLE BALTENWECK

E

xcitement about alternative meat and dairy products is exploding. Lab-grown or plant-based, animal-free substitutes are being held up as a panacea to overcome the negative environmental and health impacts associated with the world’s livestock systems.

But that assumption rests on the skewed perspectives of North Americans and western Europeans — and misses a big part of the story.

In many developing countries and less affluent economies, animalsource food is less a consumer product than a vital source of income, food and livelihood.

For the one in 10 people living on less than $2 a day, “alt-meats” are unlikely to be a viable dietary solution for the simple reason that most people would be unable to access or afford them. Samburu

https://www.facebook.com/businessdayng

livestock herders in northern Kenya, for example, live in rural areas with little access to grocery stores that might sell plant-based meat or soy milk. Instead, they rely on their cows, goats and sheep for both food and income.

Meat and dairy alternatives do little to address the nutritional challenges faced by the poor in Africa and Asia. The most common dietrelated health problem there is not overconsumption of animal-source foods but “hidden hunger”, a form of malnutrition characterised by deficiencies in the essential nutrients found in milk, meat and eggs.

For the impoverished Ethiopian or Bangladeshi mother who is unable to breastfeed her newborn because she is herself malnourished, even the smallest gains in milk, meat or egg consumption can be vital. According to the UN’s Food and Agriculture Organization, just 20 grammes of animal protein per @Businessdayng

person per day — the equivalent of one and a half eggs — can stave off malnutrition.

Getting enough protein and micronutrients is especially important for vulnerable groups such as infants and children, mothers, the sick and the elderly. For babies between six and nine months in Cotopaxi, rural Ecuador, for example, eating an egg a day meant stunting was reduced by almost 50 per cent. One mother told us her baby had started standing by himself and became more engaged after she added eggs to his diet.

Equally important are livestock’s contributions to the rural economy — a feature under-appreciated by those in more industrialised countries. In low to middle-income countries, livestock is a lifeline as well as financial asset, providing jobs, incomes, financial collateral, insurance, fertilisation for crops and muscle to transport farm goods.

Tuesday 17 September 2019

BUSINESS DAY

43

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Three JPMorgan metals traders charged with market manipulation US prosecutors allege ‘massive, multiyear scheme’ to defraud customers HENRY SANDERSON IN LONDON

J

PMorgan’s head of precious metals trading has been charged by US prosecutors with running an eight-year conspiracy to manipulate markets and defraud customers.

Michael Nowak was charged along with two colleagues, Gregg Smith and Christopher Jordan, with a “massive, multiyear scheme”, assistant attorney-general Brian Benczkowski said.

The indictment alleged that the three traders engaged in “widespread spoofing, market manipulation and fraud” while working at JPMorgan, one of the biggest bullion banks. They placed orders they intended to cancel before execution in an effort to “create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market”, it said.

The case will increase scrutiny over global precious metals markets and the dominance of large banks such as JPMorgan. Along with HSBC, JPMorgan dominates global flows of gold and silver trading.

Mr Nowak, who joined JPMorgan in 1996, is on leave from the bank, according to a person familiar with the matter. JPMorgan declined to comment.

Between 2008 and 2016, the traders sought to take advantage of algorithmic traders by placing genuine orders to buy or sell futures,

some of them so-called “iceberg orders”, that concealed the true order size, the indictment alleged.

At the same time they placed one or more orders that they intended to cancel before executing, so-called “deceptive orders”, on the opposite side, which were fully visible to the market, the indictment alleged.

“By placing Deceptive Orders, the Defendants and their coconspirators intended to inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets,” the DoJ said. “And to deceive other participants in those markets into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand.”

The DoJ alleged the three men named in the indictment placed deceptive orders for gold, silver, platinum and palladium futures contracts on exchanges run by the CME Group.

As well as being traded as investments, the precious metals also have widespread industrial uses, such as silver’s use in solar panels, and platinum’s use in catalytic converters for cars.

A former JPMorgan trader, Jonathan Edmonds, pleaded guilty to charges of spoofing last November. Another former JPMorgan precious metals trader, Christian Trunz, pleaded guilty in August.

GM workers strike after talks on pay and benefits break down United Auto Workers demands carmaker ‘recognise the contributions’ employees have made ANNA NICOLAOU IN NEW YORK

T

housands of General Motors workers have begun the first auto industry walkout in more than a decade, after talks broke down over pay and healthcare benefits at the company’s US factories.

The United Auto Workers said that the strike started early Monday as union leaders demanded GM “recognise the contributions” workers have made to “create a healthy, profitable industry”.

The decision came after a breakdown in talks in Detroit for a new four-year labour contract and as workers and carmakers alike brace for a weaker economy. The UAW is asking GM’s nearly 46,000 US factory work-

ers to stop working until further notice. It is the UAW’s first strike against GM since 2007.

In the wake of the financial crisis, unions had given the big carmakers concessions in their contracts, such as cuts to their healthcare and pension bills, helping GM reduce costs as it clawed its way out of bankruptcy. GM and other large auto companies subsequently enjoyed years of robust growth.

But the outlook for car sales has turned darker in the past year amid rising costs, falling car sales and shifting consumer tastes. In the US, shoppers are increasingly looking to sports utility vehicles and pick-up trucks, while at the same time carmakers must invest in technologies such as electric and self-driving vehicles. www.businessday.ng

Lisa Winton of Winton Machine: ‘“I’m just holding tight, because of that uncertainty’ © Ben Rollins Photography

Fed wrestles with trade war and Saudi oil attack uncertainty A potential oil shock will add to problems policymakers already face assessing economic risks BRENDAN GREELEY IN WASHINGTON AND CHRIS GILES IN LONDON

S

ales have been great this year for Winton Machine, a 35-person company in Suwanee, Georgia, that makes machines to bend metal tubes. Lisa Winton, chief executive, attributes its success to landmark tax reforms signed into law by US President Donald Trump in 2017, which freed up cash for other manufacturers to put her gear on their plant floors.

Demand has risen by so much that she now needs to move into a bigger plant. But she is putting off the decision. “I’m just holding tight,” she said, “because of that uncertainty.”

The uncertainty she is referring to is swirling around trade, as Mr Trump has escalated, de-escalated and re-escalated his trade war with China, and threatened traditional allies with tariffs, too. The weekend attack on Saudi Arabia’s oil infrastructure has intensified matters

due to its potential to disrupt crude supplies.

The Federal Reserve, under its chairman Jay Powell, is this week expected to cut interest rates by a quarter point for the second consecutive policy meeting.

The White House is keeping up its drumbeat of demands for greater monetary easing, and both inside and outside the Fed there are concerns the central bank has been underestimating the economic consequences of the trade and geopolitical uncertainty.

The Saudi attacks, which the US blamed on Iran, sent oil prices soaring in Monday morning trade, adding to difficulties for the Fed’s decision.

The central bank could be expected to ignore the direct effects, raising fuel prices, but would have to weight up the positive effect on demand for US oil against the negative effects on global demand, especially if this is the start of a wider bout of conflict in the Middle East.

With the length of disruption to oil supply unknown at present,

the Fed is likely to be cautious, but an oil shock would be the “last thing the world needed now”, said Erik Nielsen, chief economist at UniCredit because it creates the wrong sort of inflation.

“It imposes a tax on households and non-oil businesses across the world at a time when the global economy is already slowing,” he said.

A potential oil shock will exacerbate the problems the Fed already faces in understanding the depth of the trade shock.

With the rules of the road for importing or exporting businesses changing from presidential tweet to tweet, fixed non-residential investment, a measure of business spending on new equipment, has been slowing since the summer of 2018. Sales of industrial machinery — what Ms Winton makes — grew slightly in the second quarter, but overall investment turned negative, dragged down in part by a steep drop in new commercial buildings.

Trump storm rages over Scottish airport Controversy over US air force crew’s stopovers at the president’s Turnberry resort MURE DICKIE IN EDINBURGH AND LAUREN FEDOR IN WASHINGTON

I

t is not hard to see why Scotland’s troubled Prestwick airport is keen to expand its role as a stopover for the US military. At noon on a weekday the airport’s departures hall is deserted, the next of the day’s six scheduled flights still hours away.

“It’s a ghost town,” says one of a handful of staff serving the terminal’s shops and cafés.

But Prestwick’s role refuelling US Air Force aircraft has put the Scottish state-owned airport at the

https://www.facebook.com/businessdayng

centre of a growing controversy over the extent to which President Donald Trump personally profits from spending by the government he heads.

A congressional oversight committee on Tuesday demanded the US defence department provide information on increasing expenditure at Prestwick and on spending on air crew accommodation at the Trump Turnberry luxury golf resort 19 miles further down Scotland’s south-west coast.

Prestwick has been a military stopover site for decades, but the number of US aircraft using the @Businessdayng

airport has increased dramatically in recent years, as has the number of overnight stays in the vicinity by air crew.

In 2015 there were just 95 stops and 40 overnights stays, according to a US Air Force statement to US media. By 2018 this had increased to 257 stops and 208 stays. This year, in the first eight months alone, there have been 259 stops and 220 stays, USAF said.

USAF crew have stayed at Turnberry on at least four occasions involving more than 60 service personnel since September 2018, according to Politico, the US news service.

44

Tuesday 17 September 2019

BUSINESS DAY

FT

ANALYSIS

Business Book of the Year Award 2019 — the shortlist Data privacy and bias against women are among the themes explored in this year’s annual prize ANDREW HILL

H

eavyweight books on data privacy, bias against women and the rise of the politically powerful conglomerate Koch Industries are among six titles on the shortlist for this year’s Financial Times and McKinsey Business Book of the Year Award.

The shortlist for the £30,000 prize was announced in London on Monday by Kate Smaje, senior partner at McKinsey. The award will be presented in New York on December 3.

The shor tlist compr is es : Shoshana Zuboff ’s The Age of Surveillance Capitalism about the implications of how Google, Facebook and Microsoft treat our personal data; Invisible Women by activist Caroline Criado Perez on how designers and developers have persistently excluded or played down women in the data they use; Christopher Leonard’s Kochland, on the history and influence of Koch Industries; reporter Gregory Zuckerman‘s The Man Who Solved the Market, a narrative biography of Jim Simons, the secretive founder of quant fund Renaissance Technologies; The Third Pillar, by Raghuram Rajan, a broad prescription for reform of capitalism; David Epstein’s Range, which makes the case for generalists in a world of increasing specialisation.

“This year’s authors probe critical challenges that every business is struggling with,” said Ms Smaje.

Lionel Barber, FT editor and chair of the judges, said the panel had praised the “range and depth” of the finalists.

This is the 15th edition of the Business Book of the Year Award, first presented in 2005. The prize goes to the book that provides “the most compelling and enjoyable” insight into modern business issues. Runners-up will each receive £10,000. Bad Blood, John Carreyrou’s tale of the rise and fall of Theranos, the blood-testing company, was the winner of the 2018 prize.

Other judges of this year’s prize are: Mitchell Baker, executive chairwoman of Mozilla; Mohamed El-Erian, chief economic adviser at Allianz; Herminia Ibarra of London Business School; Randall Kroszner of the University of Chicago; Dambisa Moyo, board director and author; Rik Kirkland, director of publishing at McKinsey; and Shriti Vadera, who chairs Santander UK. The award is presented at the same time as the £15,000 Bracken Bower Prize, offered to writers under 35 for the best business book proposal. The Bracken Bower Prize closes for entries on September 30.

To learn more about the rules, judges and previous winners of the Business Book of the Year Award, please visit ft.com/bookaward.

The weakness of the Democratic field The battle for the 2020 challenger to President Trump is now between Warren and Biden EDWARD LUCE

I

t was Donald Trump who gave the best prediction about the latest Democratic debate. “You have three people that are leading [Joe Biden, Elizabeth Warren and Bernie Sanders],” he said. “I sort of think that those three people are going to take it to the end.”

He was probably being too kind to Mr Sanders. In practice, the battle is now between Ms Warren and Mr Biden. On Thursday night, the two barely crossed swords. None of the others were able to wound either of the front runners.

Beto O’Rourke made a passionate case for seizing people’s semi-automatic weapons. Kamala Harris made a well-rehearsed pitch for criminal justice reform. Julián Castro virtually ruled himself out of the race by implying Mr Biden had amnesia. It never pays to be the cruel one. Each of the others — Peter Buttigieg, Cory Booker, Amy Klobuchar and Andrew Yang — did too little to break through their stubborn one to two per cent poll ceilings.

Which leaves Mr Biden and Ms Warren. That is a problem for the Democratic party. It is fashionable among Democrats to say that any of the candidates on stage would make a better president than Mr Trump. That may well be true. It

is a different question as to whom would be best placed to beat him in a general election. With the exception of Mr Sanders, Mr Biden and Ms Warren are the only two candidates with clear theories of why they should be president.

The problem is that they barely overlap. Mr Biden’s case is simple: he could beat Mr Trump. He has some strong polling numbers to back this up. Mr Biden also argues that Mr Trump is an aberration and that he — and only he — could restore America to its previous course. He is on shakier ground here. Ms Warren argues almost the opposite — that American capitalism is in a structural crisis that demands radical surgery. One is moderate and traditional. The other wants to change the face of American politics.

It is hard to imagine either victorious candidate easily assuaging the other half of the Democratic party. It is also quite easy to picture Mr Trump doing better against either of them than today’s poll numbers would imply. In contrast to the most recent Democratic stars, Bill Clinton and Barack Obama, who were both in their mid forties when elected, each of Mr Biden and Ms Warren would have trouble uniting the Democratic Party. Mr Biden shows every one of his 76 years. Ms Warren is a more youthful 70. But their weaknesses are stark. www.businessday.ng

Israeli election: Lieberman challenges Netanyahu’s hold on the right The former defence minister’s secular pitch could make him the political kingmaker MEHUL SRIVASTAVA IN BEIT EL

A

vigdor Lieberman’s first taste of democracy came when the Moldovan moved to Israel in 1978, found a job as a nightclub bouncer and threw himself into Israeli politics.

It was the time of the Mahapach, or upheaval, when a new brand of politics reshaped the Jewish state. Just a year earlier Menachem Begin, a survivor of the Soviet gulag who once ran a feared Jewish militia that bombed the headquarters of the British Mandate in Jerusalem, had become the first defiantly rightwing prime minister of a country birthed and led until then by liberal, secular Zionists.

Mr Lieberman watched and learnt, spending the next decades clawing his way from nightclub security to forge a unique political role as the champion of Russian immigrants, bane of the Arabs, toppler of governments and, in a country increasingly in the grip of religious fervour, an unabashed secularist who takes pride in breaking the sabbath.

As Israel prepares to go to the polls on Tuesday for the second general election in a year, Mr Lieberman is attempting his own Mahapach — upending Begin’s legacy by fracturing the Israeli right. The former defence minister is wooing secular security hawks with a vow to blunt the influence that the ultraorthodox minority has wielded over a succession of prime ministers — especially the man who has led Israel since 2009, Benjamin Netanyahu.

Opinion polls show his Yisrael Beiteinu party doubling its presence in the Knesset to at least 10 seats, up from five in April’s election. Such a result could bestow on Mr Lieberman the status of kingmaker in Israeli politics.

It would also give him the

https://www.facebook.com/businessdayng

power to determine the fate of Mr Netanyahu, who he is challenging for important sections of the rightwing electorate. The Likud leader wants to see the passing of legislation that would give him and other members of the Knesset immunity from prosecution while they are in office. For Mr Netanyahu, failure to win the election could see him fighting a possible indictment on corruption charges from the opposition benches.

“Lieberman is a special phenomenon in Israeli politics — I don’t know if he’s rightwing, or leftwing, but he’s figured out that Israelis are tired of the fight between the right and the left,” says Avraham Diskin, a professor emeritus of politics at Hebrew university, who has watched Mr Lieberman’s ascent. “He’s riding two very strong horses, security and secularism, and those horses can take him very far.”

Despite the passions of an election campaign, Mr Lieberman has been keeping a low profile, refusing requests for interview.

Asked earlier this year by the FT to outline his political vision, he described the west as soft and Europe as lost without the guidance of Jewish thinkers, while he compared European efforts to seek a deal with Iran to the appeasement of Hitler in the 1930s.

“They [the west] will never understand us because they have lost their political will and determination,” he said in January. “They have a high standard of life and they are lazy and not ready to fight for their rights, for their future.”

Mr Lieberman has been building up to this challenge to Mr Netanyahu for some time. He set the stage for the election by pulling out of the last government, lambasting the prime minister for not bombing Hamas in Gaza with greater vehemence and then, after April’s inconclusive elections, refusing to join his coalition unless he reined in the ultraorthodox @Businessdayng

parties.

He represents a potent threat to Mr Netanyahu’s grip over the Israeli right, a group that includes settlers who live in fear of a Palestinian state uprooting them from what they consider their biblical homeland in the occupied West Bank, libertarians who celebrate Israel’s departure from the socialist ideas of its Kibbutznik foundations and, more recently, blatant anti-Arab racists.

In Israel’s fractious coalition politics, it now seems unlikely any government — left, right or centre — could be conceived without Mr Lieberman’s blessing. Some even believe he could be within touching distance of leading the country.

“He was already defence minister, and the next thing he wants is to be prime minister,” says Oded Revivi, the mayor of Efrat, a settlement in the occupied West Bank, where Mr Lieberman, who lives nearby, is wooing voters. “What he found out as minister of defence was that he really didn’t have much power, so he’s come up with this new invention of himself as a secular leader — who knows how long that will last for.”

Mr Lieberman has taken direct aim at the weak spot in Mr Netanyahu’s complex support base — former Likud supporters who embrace a confident Zionism, but reject the intrusion of Jewish fundamentalism into Israeli public life.

These voters chafe at the power of the orthodox Rabbinate, which refuses to recognise the strains of Conservative and Reform Judaism popular outside Israel, and they loathe the ultraorthodox minority, which has used its political acumen to keep their young men from serving in the army.

What Mr Lieberman offers is an alternative vision of what it means to be a rightwing Israeli — belligerent when it comes to defence but paternalistic in public policy.

Tuesday 17 September 2019

BUSINESS DAY

44

POLITICS & POLICY Why I was not surprised by tribunal’s judgment against PDP - Chekwas Okorie INIOBONG IWOK

C

hekwas Okorie, national chairman of United Progressive Party (UPP), has said that Atiku Abubakar, candidate of the People’s Democratic Party (PDP) in last February’s presidential election, lost to incumbent Muhammadu Buhari at the Presidential election Tribunal because Atiku and the PDP had no case.

Atiku, immediately after the election had filed a petition at the tribunal challenging the victory of Buhari.

Among the grounds of his petition was that Buhari did not possess the necessary academic qualification to contest the election.

But the tribunal last week ruled that the evidence tendered by the PDP showed that Buhari was “eminently qualified” to run for president.

It also ruled that the petitioners failed to prove there were electoral malpractices in the election.

The tribunal also said that the PDP failed to establish that electoral officials were harassed and that any such harassment influenced the outcome of the election, while also dismissing claims by PDP that the result of the election was transmitted electronically and stored in a server.

In a telephone interview with BusinessDay,

Babajide Sanwo-Olu, Lagos State governor (middle), flanked by his Deputy, Obafemi Hamzat (5th right); Yusuf Buba Yakub, chairman, House of Representatives Ad-hoc Committee on Port Decongestion (4thleft) and others during a courtesy visit to the governor by the Ad-hoc Committee at Lagos House, Alausa, Ikeja, on Monday.

Monday, on the state of the nation, Okorie insisted that the PDP and Atiku lost the presidential election, stressing that the result of the presidential election was a general refection of the performance of the party in the general election across the country.

According to him, “I am not surprised by the judgment because as a matter of fact, if there is any surprise it is the extent the tribunal went to indulge the PDP. Because in order to clear all doubts, they took a decision, which they made clear at the onset that the judgment was going to be based on law and fact and technicality.

“As for that reason they went to such elaborate extent to explain the issue of certificate. The issue of

Buhari certificate is preelection matter everybody knows that the tribunal should have thrown that away based on that,” he said.

“Three elections took place on that day, the House of Representatives, Senate and the presidential election. The APC won PDP over 100 seats in the House of Representatives and won PDP more than 25 seats in the Senate. Based on this, any victory for the PDP in the tribunal would have been what we called scoring against the run of play,” Okorie said.

Okorie further stated that the PDP should have concentrated on arguing about the proper conduct of the presidential election, rather than trivialising issues.

“Because the tribunal

was actually set up to examine if the election was organised in accordance with the law, but not about qualification; but they went into that and deal with it thoroughly. I am surprised that the tribunal gave Atiku judgment, giving what transpired,” he added.

He blamed the PDP for the misfortune which befell the party in the 2019 general election, stressing that while the party was in power he had made several moves for electronic voting to be legalised but was ignored.

“I made several moves for the electronic voting to be adopted when the PDP were in power but I was ignored, why did they not sign it into law? What is happening is what they should get,” Okorie added.

Makinde sets 20-year development agenda to ‘save Oyo’ REMI FEYISIPO, Ibadan

G

overnor Seyi Makinde of Oyo State has set a 20- year Development Agenda to save the state from underwhelming performance.

While saying that the administration was setting a high bar for its development objectives, Makinde said: “We have been underachieving for many years. Administrations have come and gone. Yes, they did their best, but we have to set a high bar for ourselves.

“Within the shortest possible time, we have to put in place a strategic development plan for Oyo State. Administrations have come and gone but operated on ad-hoc basis;

we will put in place a 15 to 20-year development plan for Oyo State. We will be bullish about our development plans.”

Speaking at the closing remarks at the end of a two- day Executive Retreat for his Executive Council members and senior aides at the International Institute for Tropical Agriculture (IITA), Ibadan, he clarified: “Of course, according to the mandate right now, it is for four years. So, what I mean is, we have to put up a plan or vision in which successive administrations won’t really need to go back and do the hard work again. Of course, we will do the hard work, and I have a feeling that we used to have some authentic heroes amongst

us here.

According to him, because when we are done, maybe the leadership of the next administration is here with us. So, we should not take anything for granted.”

Tasking his political aides and the top civil servants to work in harmony, he added that collective responsibility must be the watchword.

He however, said that the civil servants will be empowered to do their job but that the government will demand accountability.

“For our Permanent Secretaries and political office holders, it still remains soldier go, soldier come, but the barrack remains. How many gover-

nors have you seen their backs? You will see the back of this government too. But your commitment to the success of this administration must not waiver.

“But we are making a pact with you that the current administration will empower you. We will give you those responsibilities.

We will give you the authority to carry them out but we demand from you accountability. I know that the pertinent question that is probably agitating your mind right now is, ‘will the system be fair to you?’ I make bold to say that under my watch, absolutely.

“So, my appeal to everybody is, come with me, let us create a new prosperous Oyo State together and God will help us,” Makinde said.

Cross River Assembly moves to amend controversial Land Use Act MIKE ABANG, Calabar

T

he Cross River State House of Assembly has concluded plans to amend the controversial Land Use Act of 1978 that empowers the state governors to acquire land in the overriding interest of the state.

According to the House, the Act is an arbitrary law that gives state governors too much power to acquire community lands.

Charles Ekpe, House Committee chairman on Agriculture and Goddy Akwaji, House Committee chairman on lands, disclosed this in Calabar during a media briefing organised by Environmental Rights Action Friends of the Earth on the proposed bill for the Establishment of Land Use and Allocation Committee.

Majority of the House members including Regina Ayogu, representing Yala constituency agreed that the Act has outlived its usefulness, and should be amended in the interest of the communities and that of the people they represent.

Also, in support of the amendment, Mathew Olory, member representing Akamkpa, who doubles as chairman, House Committee on Local Government, said his community has been subjected to pains over the activities of some multinational companies as many lands belonging to the communities are being used without their consent.

They listed the affected communities to include Ibiaye community, Betem, Idoma, communities in Biase Local Government Areas and Mbarakom, Okon Ita communities in Akamkpa Local Government Areas of Cross River State.

The affected communities also described Wilmar plantations in the state as land-grabbing since they alleged that members of the community were not privy to any agreement entered into.

The community leaders have also continued to say that they were not carried along by the government and the companies.

Asuquo Isabella, founder of Community Forest Watch Akamkpa Local Government Areas, said that a new memorandum of understanding (MOU) drafting Committee should be set up in order to reflect community demands.

She stated that such Committee should comprise of membership drawn from chiefs, women, youth leaders and other stakeholders, even as she called on the lawmakers to be pro-people in their roles and responsibilities of making laws.

Godwin Ojo, executive director, Environmental Rights Action said the issue of overriding state interest in land allocation exercised by governors means that the government of the day owns land in trust for the people.

Abiodun urges opposition to support his administration, pledges to take Ogun to greater ABDULWAHEED OLAYINKA ADUBI, Kaduna

D

apo Abiodun, governor of Ogun State, has described the judgment by the Ogun State Governorship Election Petition Tribunal last weekend as the triumph of rule of law; victory for democracy and further validation of the mandate bestowed on him at the polls.

Abiodun also called on the opposition to join hands with him to take Ogun State to greater heights.

He said he remained magnanimous in victory and extended, urging the Allied Peoples Movement (APM), in particular to forget about 2019 gubernatorial election and join hand with his administration to the ‘Building Our Future Together’ agenda.

He advised that rather than dissipating energy and resources on litigation, they should either negotiate their return to the All Progressives Congress (APC) where they were or start preparing for 2023 elections.

“Opposition strengthens democracy and I appreciate

the fact that he went to the tribunal in exercise of his constitutional rights. The tribunal has validated the mandate freely given to us by the masses at the polls.

“The candidate and all members of APM and indeed members of other parties are free to join APC. Those who are still aggrieved should learn that democracy is about majority rule. The people have spoken and the tribunal has validated their choice of me.

Anybody who feels otherwise should start preparing for 2023,” he said.

In a statement signed by Kunle Somorin, his chief press secretary, Abiodun thanked the people of Ogun State for their support and solidarity, promising that he would not take their mandate for granted as he would continue to work towards enhancing the people’s welfare, peace and prosperity of the state.

He thanked the judiciary for the painstaking efforts and fair and lucid judgment which he said had further strengthened the nation’s democracy and enriched the jurisprudence.

46

Tuesday 17 September 2019

BUSINESS DAY

news

FG commissions 98.8KW solar hybrid mini-grid in Kebbi State KELECHI EWUZIE

T L-R: Adekunle Awojobi, MD, FBNQuest Trustees; Oba Otudeko, group chairman, FBN Holdings plc; Omobola Johnson, senior partner, TL Com Capital LLP/former minister of communication and technology; UK Eke, GMD, FBN Holdings plc, and Seye Kosoko, chairman, FBNQuest Trustees, at the FBNQuest Trustees 40th anniversary ceremony in Lagos. Pic by Pius Okeosisi.

Nigeria’s private wealth dropped 17% in 3yrs; here is why …still among Africa’s top wealthiest countries BUNMI BAILEY

T

he safety concerns i n Nig e r i a t hat are discouraging w ealthy pe ople from staying in Africa’s most populous country, clampdown on foreign companies such as MTN, which has scared off investors, are amongst the reasons why the country’s total wealth declined by 17 percent from the year 2016 to 2018.

BusinessDay findings of the wealth data from Africa Wealth report 2019, by AfrAsia Bank, a private and corporate bank in Mauritius, show that Nigeria’s total wealth steadily declined by 17 percent to $225 billion in 2018 from $270billion in 2016.

A breakdown of the report shows that the country’s total

wealth reduced by 6.2 percent to $270 billion in 2016 from $253 billion in 2017 and by 11.1 percent to $225 billion in 2018 from $253 billion in 2017.

Private wealth can be referred to as the wealth held by all the individuals living in each country. It includes all their assets (property, cash, equities, business interests) less any liabilities excluding government funds.

The report provides a comprehensive review of the wealth sector in Africa including individuals with a wealth of $1 million or more (HNWI), luxury treads and wealth management treads in 17 countries and 201 cities across the continent According to the report, the possible reasons for the decline are the safety con-

cerns in the country, which have deterred investment and discouraged wealthy people from staying in the country, especially women safety which is an issue in the North of the country, and the outgoing migration of those HNWI who have moved abroad mostly in countries in Europe.

“Furthermore the clampdown on foreign companies such as MTN which has scared off investors, loss of local currency value versus the dollar and drop in oil prices add to it. The year-end Brent crude oil price peaked at the end of 2012-it now stands at $51 as of December 2018,” the report stated.

This year, Nigeria was ranked the fifth most dangerous country based on violence and terrorist attacks by

Boko Haram, according to the World Economic Forum.

MTN, Africa’s largest telecoms company, over the past five years has faced potential fines of up to $15 billion in Nigeria for a range of alleged misdeeds. The latest was last year when the company was accused of owing $2 billion in taxes by Nigeria’s attorney general.

Last year, Nigeria overtook India as the country with the largest number of people living in extreme poverty, thereby becoming the world capital of poverty, according to the Brookings Institute.

This year, the number has risen to 91.6 million from 87 million in June 2018. Every minute, six Nigerians enter the group of extremely poor people, according to the World Poverty Clock.

Maintain credibility, remain unshaken to promote public confidence in judgments, Malami urges judges Felix Omoh-Asun, Abuja

T

he Minister of Justice and Attorney General of the Federation (AGF ), Abubakar Malami, has called on judges to maintain credibility and remain unshaken in order to foster and promote public confidence in judgments from the courts.

He said it was only through the promotion of these values that the greatest heights in the legal profession could be achieved.

Malami, who spoke at the special session to mark the commencement of Federal High Court 2019/2020 legal year, Monday, called on judges to always remember in the course of their duties that “pivotal role played by the Federal High Court by virtue of section 251 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) makes this Court unique and

distinct from other Courts of coordinate jurisdiction.

“In the light of its jurisdiction as noted in the Constitution above, I humbly urge this Court as part of the judicial arm of government, to remember that it is the anchor upon which our legitimate claim to a civilized society rests and revolves,” he said.

Meanwhile, the Acting chief judge of Federal High Court, Justice John Tsoho, has implored relevant stakeholders in the country to appoint more judges to the federal high court, to alleviate the work load of judges.

Speaking on the occasion, Monday, Tsoho said federal high court judges were overburdened with workload in the out gone legal year, adding that more judges needed to be appointed to ease their work schedule.

Reviewing the just ended legal year, Tsoho said 116,623 cases were pending at the www.businessday.ng

high court, 16,144 filed in a quarter, while 12,692 were disposed off.

“It is pertinent at this juncture to highlight the stature of litigation before this court in the last legal year. From reports received, about 116,623 cases are pending in the federal high court. 16,144 cases were filed in this quarter alone in which 12,694 have been disposed off. It is obvious that judges were overburdened with work in the last legal year. We therefore need to engage more judicial officers to help out.

“However, it does appear that there was no provision for appointment of judges in the current budget. I will make efforts to discuss with relevant stakeholders to see to the possibility of facilitating the recruitment of more judicial officers in the course of the year,” he said.

Tsoho said that training of judges and staff of the

judiciary to enhance professionalism was of paramount interest to the judicial authorities.

He said the judiciar y would work with the legislature and the executive to entrench constitutionalism in the federal judiciary.

He disclosed that the federal high court now has amended federal high court (civil procedure) rules 2019 which came into force on the 10th day of May, 2019. “The new rules contain certain innovations to meet with the dynamism in law and to bring the court at par with other courts in the developed world. Some of these include affidavit of non-multiplicity of actions (Order 3 Rule 9(2)(d); a reinforced interpretation of the Territorial Jurisdiction of the Federal High Court, such that no leave is required for service of process anywhere within the federation (Order 5 Rule 31).”

https://www.facebook.com/businessdayng

he Federal Governm e nt o f Nig e r i a, through its Implementing Agency -Rural Electrification Agency (REA) will today (Tuesday) commission a 98.8KW solar hybrid mini grid power plant at Kare-Dadin Kowa, in Kebbi State.

Kare-Dadin Kowa is a small riverine community in Argungun local government area of Kebbi State, with a total population of about 3,180 people, whose major vocations are agriculture and fishing.

The project is part of government’s commitment to provide equitable electricity access to unserved and underserved communities across Nigeria thereby increasing electricity access to particularly hard to reach areas.

Following the installation of the 98.8KW solar hybrid mini grid power plant, 483 residential buildings, 82 commercial buildings and over 3,000 inhabitants of Kare-Dadin Kowa will be connected to receive constant electricity henceforth.

A total of 565 high grid solar panels have been installed to power homes, businesses, places of worship, schools, and health centres.

Sanusi Ohiare, executive director, Rural Electrification

Fund (REF) says that KareDadin Kowa community is the second of twelve communities earmarked to benefit from REF grants.

Ohiare while speaking on the project’s implementation said the community was selected since they attained legal, regulatory and procurement compliance and no objection from the Federal Government.

“In line with REF’s Public -Private Partnership (PPP) model, the project as executed by Nayo Tropical Technology Limited is constructed in line with international standards and best practice,” Ohiare, said.

The Nigerian Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) tasked with electrification of unserved and underserved communities.

The Rural Electrification Fund (REF) provides equitable access to electricity across Nigeria to maximise the economic, social and environmental benefits of rural electrification grants, to promote off-grid electrification, and to stimulate innovative approaches to rural electrification.

REF projects are administered using the PPP model.

The first call of the REF will energize 12 communities and deploy 19,000 Solar Home Systems (SHS).

Fast Credit targets 36m unbanked Nigerians through microloans …partners PFS for accounts reconciliation solution Endurance Okafor

F

ast Credit Limited, a financing house focused on providing fast and needoriented, payroll-based consumer loans has said it is rolling out products that will not only provide credits to low-income earners, but will also include them in the financial net.

Established in August 2014, Fast Credit is into the business of financing personal, business and emergency loans with more of its portfolio in the public sector.

According to Idechi Amucheazi, Group Head, Fintech & Innovation at Fast Credit, the company is designing products that will encapsulate the needs of the specific sector of the society, all in line with the financial inclusion agenda of the Central Bank of Nigeria (CBN).

“Yes we have something we are currently working on for the unbanked informal sector and within the next few weeks we’ll be launching it,” Amucheazi told BusinessDay during a recent press briefing at Fast Credit headquarters in Lagos.

In his remarks, he added that it was important that Fast Credit knew what the financially excluded Nige@Businessdayng

rians were into and how they do it in order to design suitable products to meet their needs. “All of it will fit into our own process and we want something that will be technology-driven in order to avoid the traditional way of reaching out to them.”

The national financing house licenced by the CBN will be targeting about 36.6 million Nigerian adults, representing 36.8percent of the Nigerian adult population, who do not have access to formal financial services.

“Fast Credit is into the micro-lending market because there are huge untapped opportunities in the market. We provide value-based lending to this bottom of the pyramid that may not have access to credit from the traditional banking system in line with the financial inclusion policy of the CBN,” Emeka Iloelunanchi, Chief Operating Officer, Fast Credit, said.

The lender is different from some conventional credit-financing institutions because while some commercial banks require a customer to have a bank account with them before they can access loans, Fast Credit does not care if a customer has an account with them or not before giving such a person a loan.

Tuesday 17 September 2019

BUSINESS DAY

47

news

Stransact Nigeria joins international accounting group TIAG SEGUN ADAMS

S

t r a n s a c t Pa r t n e r s and Stransact Audit (Stransact), one of Nigeria’s leading auditing and tax services firms, were recently admitted as members of TIAG® (The International Accounting Group), an international alliance of independent accounting firms. Stransact will be the exclusive member of TIAG for Nigeria.

Stransact’s membership in TIAG, and the broader TAG Alliances®, will enhance its international capabilities and services by providing the firm with strategic connections to high-quality accounting firms, law firms and other professional services firms in more than 100 countries.

The accreditation came on the heels of TIAG members having been invited to join TIAG only after undergoing a comprehensive vetting and selection process. Firms were carefully chosen based on professional competence, commitment to client service, reputation within the business community, and recommendations from existing members, and are ultimately reviewed and approved by the TIAG Advisory Board.

Partners of Stransact, Abayomi Salawu and Eben Joels, said they were delighted about the firm’s membership

of the alliance and would continue to work with clients to ensure that they are the biggest beneficiaries of the association with TIAG and TAG Alliances.

“TIAG will provide us with additional international support to help us better serve the cross-border needs of our clients,” Salawu and Joels said.

Richard Attisha, president & CEO of TIAG & TAG Alliances, described Stransact as an excellent firm, saying they are pleased to have them as members of TIAG & TAG Alliances.

“The breadth and quality of their services as well as their reputation and prominence in their market makes them an attractive resource for our members and their clients,” he said.

Stransact operates as two integrated firms, Stransact Audit and Stransact Partners, providing audit, review, other assurance, and related services such as financial reporting and bookkeeping services.

Stransact Partners is the advisor of choice for discerning growing businesses.

The company offers the full range of tax and advisory services and it is renowned for its dedication to seeing small businesses assess premium transactions and advisory services at a fraction of the true value.

M&A imminent as insurers execute action plans to meet recapitalisation deadline Modestus Anaesoronye

A

new wave of merger and acquisitions is set to start in the nation’s insurance industry as the National Insurance Commission (NAICOM) completes review of companies’ recapitalisation plans tomorrow.

NAICOM had fixed September 17, 2019 as the last day to complete review of recapitalisation plans submitted by insurance companies and give direction for effective actions on how to comply with the minimum paid-up requirement.

A top official NAICOM who preferred anonymity said some companies have been directed to consider merger or acquisition in order to comply.

“Some companies seem not to understand the recapitalisation requirement, so we have told them that they were on the wrong track and have options of business combination with other bedfellows if they want to remain in business or to shop for the money,” the source said.

“We are not foreclosing a merger deal, as long as we can find those who share the same vision with us,” an industry CEO told BusinessDay, weekend.

The CEO said merger was not a bad option for the firm, but it has to be right in such a way that it creates shareholder value.

Sunday Thomas, acting commissioner for insurance/ CEO, NAICOM, said during a seminar for insurance directors in Lagos that the commission

has received reasonable number of companies’ recapitalisation action plans but noted, however, that some firms did not understand the guideline.

“We shall review the plans and guide them, and where we need to meet such companies’ directors, we will,” Thomas said. Guy Czartoryski, head of research at Coronation Research, an arm of Coronation Merchant Bank, said he expects to see mergers and acquisition in the course of the insurance industry recapitalisation.

“The potential impact of the May 2019 circular on the composite insurers could be drastic.

We might see eight companies either seeking to merge or raise a considerable level of fresh capital,” he said.

According to the recapitalisation timetable, NAICOM has till September 17 to review the submissions, engage the companies and their directors one-on-one if need be, and direct next steps.

NAICOM had, in a circular dated July 23, 2019, titled ‘Re: Minimum Paid Up Share Capital Policy for Insurance and Reinsurance Companies’ and sent to all insurance and reinsurance firms, said the recapitalisation plan should include, among others, capital status of the companies as at the last audited financial statements, board resolution on how to comply with the directives, and detailed action plan on how the funds for the recapitalisation are to be sourced with timelines and deliverables.

R-L: Asue Ighodalo, chairman, Nigerian Economic Summit Group (NESG); Zainab Shamsuna Ahmed, minister of finance, budget and national planning; Clem Agba, minister of state for budget and national planning, and Nnanna Ude, co-chair, NES#25 Joint Planning Committee (JPC), at the 25th Nigerian Economic Summit (NES #25) Pre-event Press Conference in Abuja.

Stakeholders task government, private sector on plastic pollution environmental risks …Advocate immediate partnership for solutions Daniel Obi

C

oncerned stakeholders in Nigeria have drawn the attention of the government and the operators in the private sector to the increasing challenge of plastic pollution in the country, warning that this requires urgent solution to obviate its sweeping consequences in the environment.

They called for immediate collaboration between government, private sector and communities to tackle the challenge toward having a safe environment and preserving the future.

Increasing usage of plastics, composed of toxic chemicals and non-degradable substance, has given rise to one of the major toxic pollutants , leading to air, land and water pollution , which has created challenges for plants and animals.

This has naturally posed a challenge to Nigeria’s economic growth and the possibility of the reaalisation of the 17 Sustainable Development Goals, which the United Nations set to be achieved by 2030.

These were part of the con-

cerns of speakers at a one-day CEO Roundtable on Sustainability themed ‘Action to Mitigate Plastic Pollution’, organised by Lagos Business School over the weekend, in partnership with some organisations. The gathering aimed at exploring various frameworks for partnerships and collaborations between the government, private sector and the larger society in addressing plastic pollution in Nigeria.

Describing the present plastic pollution in Nigeria as a matter of urgent attention, the Managing Director of Guinness Nigeria, Baker Magunda, said this required companies, governments, civil society groups and the general public to begin to take specific steps towards tackling the issue.

He said the the world is dealing with this global epidemic, noting that at least 8 million tonnes of plastics are dumped into the ocean every year. This, according to him, was the equivalent of a garbage truck dumping its load into the ocean every minute.

Magunda said mitigation of plastic pollution was pertinent as researches had confirmed the adverse effects of plastic

pollution on the health and well-being of humans, aquatic life and society at large.

The Guinness director believes that a proactive approach to establish new and leverage existing multi- stakeholder partnerships which support the collection, processing, recycling of plastics will lead to the transformative solutions needed not only to tackle the issue of plastic pollution but also help protect the environment on which lives and the businesses depend.

In her presentation, Folasade Morgan Chairperson of Food and Beverage Recycling Alliance (FBRA), said that government had a role to play by ensuring that the right policies were put in place to drive consumer participation in waste management and to drive enforcement of proper waste sorting practices in Nigeria.

She said in Nigeria about 148,000 tons of plastic wastes alone are generated annually while less than 30% is collected because collection is highly informal.

“When collection firms collect single-used plastics, it makes it cheaper to recycle. When we are able to build that awareness, investors will be attracted to set

up recycling facilities because they can see that there is a working system for waste collection,” Morgan who is also the corporate affairs director at Nigeria Breweries Plc said.

Special Assistant to President Buhari on SDGs, Adejoke Adefulire, represented at the forum by her assistant, Bala Yussuf Yunusa, said the issue of sustainable development spoke to the environment which is one of the SDG goals.

He said there was a need to involve the Organised Private Sector for expert advice and financial resources to achieve the SDGs, which are interrelated.

Speaking earlier, Chris Ogbechie, Director LBS Sustainability Centre, advised that “we should not wait until we get to the crisis level before we begin to tackle the challenge” of plastic pollution.

During the panel discussion, Anil Ramchand Mohinani, Country Manager, Mohanani Group, said 9,000 tons of general waste - plastics, nylon and bottles are generated annually and regretted the gap in collection of wastes. He advocated for the monetisation of waste to attract investors.

Three bills pass second reading, four motions to be taken as Reps resume Tuesday ...Xenophobic attacks to form matters of urgent public importance James Kwen, Abuja

A

t least three bills may pass second reading and four motions would be taken as the House of Representatives resumes sitting Tuesday after about two months of annual recess, BusinessDay reliably gathered.

The bills include, Bill to amend the Investment and Security Act, sponsored by Nkem Abonta (PDP, Abia), Bill on the Establishment of Cancer Registry, sponsored by Nicholas Ossai (PDP, Delta) , and Nigerian Institute of Plant Protection Bill sponsored by Henry Archibong (PDP, Akwa- Ibom).

The House would also take motions on Erosion, Ban on Importation of Vehicles, Inland

www.businessday.ng

Borders and Issues of Gold Mining.

Before the annual recess, 287 bills had passed first reading, with two passing second reading in the 9th House of Representatives, while 63 motions had been deliberated on and resolutions made.

A reliable source in the Rules and Business Committee of the House, saddled with the responsibility of scheduling bills and motions on the Order Paper for deliberation told BusinessDay on the condition of anonymity that apart from the three bills and four motions there would be matters of urgent public importance.

“For this week there are second reading bills and some motions. As they are coming back, some matters of urgent public

https://www.facebook.com/businessdayng

importance will be coming up.

Likely to be on the matters of urgent public importance is the xenophobic attacks on Nigerians in South Africa which prompted the House to make moves to cut short its annual recess and reconvene at least for a day to address the issue but was not done.

However, the House leadership led by the Speaker, Femi Gbajabiamila at a world press conference summoned the Minister of Foreign Affairs, the Nigerian Ambassador to the Republic of South Africa, the Chairman of the Nigerian Diaspora Commission and other stakeholders, to jointly consider the causes of the xenophobic attacks on Nigerians in South Africa.

The House had also urged President Muhammadu Buhari @Businessdayng

to direct the Ministry of Health to assist the bereaved families in expediting the return of loved ones who have lost their lives in the unfortunate attacks.

The Green Chamber vowed not only to determine the causes of the attacks but also to assess and account for the loss of lives and properties that have occurred, to allow the Federal government to more accurately demand reparations to compensate Nigerian citizens who suffered in this recent orgy of violence.

Also, the Minister of Foreign Affairs, Geoffrey Onyeama who was to appear to before the House Leadership last Wednesday but could not because of the weekly Federal Executive Council meeting, is rescheduled to appear this week.

Tuesday 17 September 2019

BUSINESS DAY

www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

A1

A2

FT

Tuesday 17 September 2019

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper

SAM FLEMING AND JIM BRUNSDEN IN BRUSSELS AND GEORGE PARKER IN BOURNEMOUTH

E

U chiefs said they heard nothing new from Boris Johnson after a high profile visit to Luxembourg that ended with an abandoned press conference and an extraordinary public reprimand from the country’s prime minister Xavier Bettel.

Mr Johnson headed to Luxembourg for talks with European Commission president JeanClaude Juncker and Mr Bettel on Monday hoping he would advance his renegotiation of Britain’s Brexit deal.

Instead, Brussels said the UK prime minister had brought no fresh proposals to the table, while a visibly angry Mr Bettel chastised the Conservative government for trying to blame the EU “for the mess we are in at the moment”.

Mr Bettel spoke to reporters after plans for a joint press conference with the UK prime minister were abandoned. Mr Johnson was swiftly led to a waiting car, amid boos and jeers from a crowd of anti-Brexit protesters, including many British ex-pats, who had gathered outside Mr Bettel’s office.

The Luxembourg prime minister returned to address the media alone. Gesturing at one point to an empty podium next to him, Mr Bettel said it was for the UK prime minister to come forward with proposals. With the Brexit

Boris Johnson reboot of Brexit talks founders as EU demands detail

Luxembourg premier lambasts Tories for trying to blame Brussels for ‘mess we are in’

European Commission president Jean-Claude Juncker, right, meets UK prime minister Boris Johnson in Luxembourg on Monday © Olivier Matthys/AP

deadline just six weeks away, people needed clarity about Britain’s future relations with the rest of the EU, the Luxembourg prime minister said.

“We need more than just words, we need a legally opera-

tional text to work on as soon as possible,” he said, adding that EU and UK citizens “need clarity” and should not be held “hostage for party political gains”.

Mr Bettel’s comments underline the EU’s mounting frus-

tration at the gap between Mr Johnson’s claims of progress in the negotiations and the reality that positions over how to prevent a hard Irish border remain far apart. They also reflect the EU’s determination to push back

against claims by Mr Johnson, UK foreign secretary Dominic Raab and others that the EU is seeking to impose unfair conditions on Britain.

“We did not decide to organise Brexit, it is a unilateral decision of the UK government,” Mr Bettel said, noting that the bloc had agreed a 585-page withdrawal treaty with Mr Johnson’s predecessor Theresa May. In its own statement after Mr Juncker’s lunch with Mr Johnson, the commission said it was the UK’s responsibility to come forward with legally operational solutions that were compatible with the withdrawal agreement governing Britain’s proposed exit from the EU. The meeting between the two men was described as good humoured, but Brussels was surprised by the lack of detail put forward by the UK prime minister. The commission said it was ready to study any UK proposals for replacing “backstop” plans agreed to by Mrs May for preventing an Irish border but that “such proposals have not yet been made”.

Purdue Pharma files for bankruptcy as Apple has day in court over Irish tax bill some states stall on opioid deal The iPhone maker’s appeal to its €13bn fine is heard same week as its latest product launch Opiod maker owned by Sackler family has yet to reach deal with all attorneys-general

HANNAH KUCHLER IN SOUTH YARMOUTH

P

urdue Pharma, the opioid maker owned by members of the Sackler family, has filed for bankruptcy, as it hopes to force holdout states to accept its offer to settle litigation that accuses it of helping cause the US opioid epidemic.

The maker of OxyContin announced that it had filed for Chapter 11 bankruptcy late on Sunday night, after weeks of negotiations to try to reach a settlement over potentially extensive legal liabilities from more than 2,600 lawsuits.

States were split over whether to support its offer — which Purdue estimates is worth more than $10bn — or risk getting less to fund a clean-up of the crisis if the company went bankrupt.

The agreement, which does not include an admission of wrongdoing, is now subject to approval by the bankruptcy court.

Steve Miller, the turnround specialist who became chairman of Purdue Pharma’s board last year, said the bankruptcy

and settlement offer was “the best and only way to resolve the unmanageable litigation rapidly depleting the company’s assets and which threatens to ultimately destroy the entire value of Purdue”.

“Whatever else people might wish for is not on the table to be decided. Now, there is a stark choice,” he said. “We are hopeful of gaining the support of the rest of the states. The alternatives are to allow all the resources available to be devoted to communities in need or spend it all on litigation.”

Some 24 state attorneys-general including from Texas and Tennessee, as well as officials from five US territories, agreed to accept Purdue’s offer last week. The lead lawyers representing 1,000 cities and counties also supported the offer.

The holdouts include New York, Massachusetts and North Carolina, which have all said they intend to pursue the Sackler family for more of their personal wealth to contribute towards large healthcare and law enforcement bills related to the opioid epidemic. www.businessday.ng

PATRICK MCGEE IN SAN FRANCISCO AND JAVIER ESPINOZA IN LONDON

I

f all goes to plan for Apple, this week will be all about the iPhone 11. But Friday’s product launch will come just after fresh headlines about news it would rather people forget — allegations that it dodged taxes and took €13bn of illegal state aid from Ireland in exchange for creating jobs.

The accusations emerged in 2016 when the European Commission said Apple and Ireland had created an “artificial” profit arrangement enabling the iPhone maker, in defiance of EU law, to pay a tax rate of less than 1 per cent.

Both Ireland and Apple appealed, and on Tuesday and Wednesday the court battle begins when judges in Luxembourg hear arguments from both sides.

Murmurings in Brussels’ favour could generate negative headlines for Apple and embarrass chief executive Tim Cook, who has tried to present the company as being on the side of consumers against other tech giants

https://www.facebook.com/businessdayng

with its emphasis on privacy and security. He has previously called the EU decision “total political crap” and accused the commission of rewriting Apple’s history and ignoring Ireland’s tax laws.

“This claim has no basis in fact or in law,” Mr Cook said in 2016.

“We now find ourselves in the unusual position of being ordered to retroactively pay additional taxes to a government that says we don’t owe them any more than we’ve already paid.”

A ruling is expected by the end of next year. But whatever the outcome, the losing party is set to appeal. After that, an appeal is likely to go through the European Court of Justice where the case is expected to take three to four years to reach a conclusion.

At the hearing on Tuesday, all parties are expected to flesh out arguments heard before.

Apple has accused Brussels of “legal mumbo jumbo.” In 2016 its finance head, Luca Maestri, said the commission was ignoring the reality that Apple’s research and development happens at its Cupertino headquarters, whereas Ireland only performs distribution, procurement and logistics.

@Businessdayng

“They are simply pretending that all the value of the Apple products are generated in [the Irish city of] Cork,” he had said.

Brussels has accused Apple of avoiding taxes for more than 20 years on almost all profits in Europe and other global markets, by allocating profits to a “head office” in Ireland which had no employees and existed “only on paper”.

Ireland has long complained that the EU has interfered with its sovereignty, misunderstood state-aid rules, and accused Brussels of undermining Ireland’s low corporate tax-regime. It is expected to argue Tuesday that it has not granted Apple any selective advantage when it comes to taxes and that it couldn’t tax the company profits that are not taking place there.

When Brussels first imposed a record-breaking €13bn tax penalty on Apple, it triggered a vitriolic response in Dublin, Silicon Valley and even Washington, which accused Brussels of trampling on international tax norms.

Apple paid the fine last year — €14.3bn with interest — but it has been held in escrow.

Tuesday 17 September 2019

FT

BUSINESS DAY

A3

NATIONAL NEWS

Trudeau’s grand promises go missing in Canada election Canadians head to next month’s poll dissatisfied with all their electoral options JASON KIRBY IN TORONTO

T

he day after Canada’s federal election campaign officially got under way, the party leaders faced off for their first televised debate, with one conspicuous exception — prime minister Justin Trudeau was a no-show.

While the leaders of three national parties sparred over topics such as the economy, indigenous issues and the environment, a podium put out for Mr Trudeau stood empty. Prior to the debate, Green party leader Elizabeth May pretended to shake hands with an invisible Mr Trudeau.

“I think we can all agree that Justin Trudeau is afraid of his record and that’s why he’s not here tonight,” said Conservative leader Andrew Scheer, who is trailing Mr Trudeau narrowly in the polls.

Mr Trudeau’s decision to stay away from Thursday night’s debate was widely seen as reflective of a government struggling to reconcile the grand promises he made in 2015 about change and transparency in government with the reality of the past four years.

“The ‘sunny ways’ approach he campaigned on backfired because it set high hopes that were not entirely met,” said Stéphanie Chouinard, an assistant professor of political studies at Queen’s University.

Mr Trudeau’s office had already said he would not attend the debate. He has agreed to participate in only one English-language debate next month, which was set up by a debate commission his government created, while he is set to take part in two Frenchlanguage debates.

But on the broader issue of Mr Trudeau’s tarnished image, pollster Shachi Kurl of the Angus Reid Institute noted: “Trudeau has broken his own brand.”

His Liberal party have several achievements they can point to in their bid for re-election. Under Mr Trudeau cannabis use was legalised, fulfilling a key pledge that drew the support of many young voters in 2015. His government implemented a national carbon tax to fight climate change. Meanwhile, a relatively strong economy and increased government benefits helped reduce child poverty to the lowest level on record.

Yet key promises from 2015 were broken or fell short. Mr Trudeau abandoned his pledge to reform Canada’s electoral system to do away with the first-past-thepost system. He angered environmentalists by supporting the Trans Mountain pipeline.

And while some steps were taken to improve the lives of indigenous people, they fell short of establishing the “nation-to-nation” relationship with First Nations that Mr Trudeau promised.

“The last four years has seen some significant moves but mostly ornamental change,” said Niigaan James Sinclair, of the department of native studies at Manitoba university.

Mr Trudeau also continues to be dogged by the SNC-Lavalin controversy. Earlier this year revelations that he and other officials tried to pressure former attorneygeneral Jody Wilson-Raybould to help the Quebec-based engineering company avoid criminal corruption charges resulted in his poll numbers tanking. Mr Trudeau later ejected her from the Liberal caucus.

The Liberals have climbed back to take a shaky lead in the polls over the Conservatives.

But then, just hours before Mr Trudeau triggered the election, Canada’s Globe and Mail newspaper reported that officers from the Royal Canadian Mounted Police had interviewed Ms WilsonRaybould about political interference in the SNC-Lavalin case on Tuesday.

“SNC has been a big stain on the Trudeau record,” said Ms Chouinard, though she believes the Liberals have already lost all the votes they are going to over the controversy.

The danger for Mr Trudeau is that young voters who supported him in 2015 could feel discouraged and stay home on election day on October 21, while Mr Scheer’s voter base is older and more committed.

“The left of centre in Canada is a mile wide and an inch deep,” said Ms Kurl. “The question is always will they turn out to vote and will they vote as a group or be split.”

With both the left-leaning New Democratic party, led by Jagmeet Singh, and Ms May’s Green’s positioning themselves as the change vote for 2019, the Liberals have turned to scare tactics to keep Mr Trudeau’s supporters from straying.

The Liberals have targeted Mr Scheer on social issues in recent weeks, resurfacing a 2005 video in which he explained his opposition to same-sex marriage. Mr Trudeau has also hammered Mr Scheer over the issue of abortion, suggesting the Conservatives will let backbench MPs introduce antiabortion legislation, something Mr Scheer has promised he would not allow.

If left-of-centre voters believe Mr Scheer could win, the Liberal thinking goes, they will stick with Mr Trudeau to stop that from happening.

It has all left Canadian voters a grumpy lot, disliking either of their options between the Liberals and Conservatives. An Angus Reid poll released this month found 63 per cent of Canadians hold an unfavourable view of Mr Trudeau, while 52 per cent share the same view of Mr Scheer. www.businessday.ng

Judit Varga, Hungary’s justice minister, arrives in Brussels for the first EU disciplinary hearing on alleged democratic backsliding by Budapest. She said the country would be ‘putting law back into the rule of law debate’ © Olivier Hoslet/EPA-EFE/Shutterstock

Hungary launches anti-EU broadside as Brussels hearings start

Budapest slams rule-of-law proceedings as politically motivated in 158-page riposte MICHAEL PEEL IN BRUSSELS AND VALERIE HOPKINS IN BUDAPEST

H

ungary has attacked EU claims of democratic backsliding

by Budapest as “politically motivated, biased, and factually incorrect” ahead of Brussels’ first disciplinary hearing into the allegations.

Judit Varga, Hungary’s justice minister, who is in Brussels for Monday’s hearing, tweeted that her country would be “putting law back into the rule of law debate”. She referred to a 158-page riposte published on Monday by Budapest, in which it restated why it thought the proceedings were unwarranted and challenged the legal basis and mo-

tives for invoking the procedure.

“The Hungarian government is of the view that the resolution of the European Parliament is politically motivated, biased, and factually incorrect in many aspects, therefore its conclusions are unjustified,” the document said. “In addition, it addresses a number of issues that manifestly fall outside the legitimate scope of the procedure.”

The Budapest broadside also calls for a “timely closure” of the Article 7 disciplinary process, launched by the European Parliament a year ago after prime minister Viktor Orban’s government introduced new laws on the judiciary, media and foreign universities.

Budapest’s moves sparked concern in other member states

over the rule of law and whether Hungary was breaching the EU’s fundamental values.

The Article 7 procedure could potentially lead to Hungary losing its EU voting rights. However, some EU diplomats have argued that the mechanism has proved a toothless way to deal with autocratic creep in the bloc.

Sanctions require unanimous agreement, but Hungary and Poland, which is also facing Article 7 proceedings, have each vowed to block such measures against the other.

Officials are searching for new mechanisms to enforce democratic standards. Proposals for the EU’s next multiyear budget would tie funding to performance on the rule of law — a link opposed by both Hungary and Poland.

Alternative meat products are not the answer for poorer countries It is time we recognised the vital role livestock plays across the world’s developing economies ISABELLE BALTENWECK

E

xcitement about alternative meat and dairy products is exploding. Lab-grown or plant-based, animal-free substitutes are being held up as a panacea to overcome the negative environmental and health impacts associated with the world’s livestock systems.

But that assumption rests on the skewed perspectives of North Americans and western Europeans — and misses a big part of the story.

In many developing countries and less affluent economies, animalsource food is less a consumer product than a vital source of income, food and livelihood.

For the one in 10 people living on less than $2 a day, “alt-meats” are unlikely to be a viable dietary solution for the simple reason that most people would be unable to access or afford them. Samburu

https://www.facebook.com/businessdayng

livestock herders in northern Kenya, for example, live in rural areas with little access to grocery stores that might sell plant-based meat or soy milk. Instead, they rely on their cows, goats and sheep for both food and income.

Meat and dairy alternatives do little to address the nutritional challenges faced by the poor in Africa and Asia. The most common dietrelated health problem there is not overconsumption of animal-source foods but “hidden hunger”, a form of malnutrition characterised by deficiencies in the essential nutrients found in milk, meat and eggs.

For the impoverished Ethiopian or Bangladeshi mother who is unable to breastfeed her newborn because she is herself malnourished, even the smallest gains in milk, meat or egg consumption can be vital. According to the UN’s Food and Agriculture Organization, just 20 grammes of animal protein per @Businessdayng

person per day — the equivalent of one and a half eggs — can stave off malnutrition.

Getting enough protein and micronutrients is especially important for vulnerable groups such as infants and children, mothers, the sick and the elderly. For babies between six and nine months in Cotopaxi, rural Ecuador, for example, eating an egg a day meant stunting was reduced by almost 50 per cent. One mother told us her baby had started standing by himself and became more engaged after she added eggs to his diet.

Equally important are livestock’s contributions to the rural economy — a feature under-appreciated by those in more industrialised countries. In low to middle-income countries, livestock is a lifeline as well as financial asset, providing jobs, incomes, financial collateral, insurance, fertilisation for crops and muscle to transport farm goods.

A4

Tuesday 17 September 2019

BUSINESS DAY

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Three JPMorgan metals traders charged with market manipulation US prosecutors allege ‘massive, multiyear scheme’ to defraud customers HENRY SANDERSON IN LONDON

J

PMorgan’s head of precious metals trading has been charged by US prosecutors with running an eight-year conspiracy to manipulate markets and defraud customers.

Michael Nowak was charged along with two colleagues, Gregg Smith and Christopher Jordan, with a “massive, multiyear scheme”, assistant attorney-general Brian Benczkowski said.

The indictment alleged that the three traders engaged in “widespread spoofing, market manipulation and fraud” while working at JPMorgan, one of the biggest bullion banks. They placed orders they intended to cancel before execution in an effort to “create liquidity and drive prices toward orders they wanted to execute on the opposite side of the market”, it said.

The case will increase scrutiny over global precious metals markets and the dominance of large banks such as JPMorgan. Along with HSBC, JPMorgan dominates global flows of gold and silver trading.

Mr Nowak, who joined JPMorgan in 1996, is on leave from the bank, according to a person familiar with the matter. JPMorgan declined to comment.

Between 2008 and 2016, the traders sought to take advantage of algorithmic traders by placing genuine orders to buy or sell futures,

some of them so-called “iceberg orders”, that concealed the true order size, the indictment alleged.

At the same time they placed one or more orders that they intended to cancel before executing, so-called “deceptive orders”, on the opposite side, which were fully visible to the market, the indictment alleged.

“By placing Deceptive Orders, the Defendants and their coconspirators intended to inject false and misleading information about the genuine supply and demand for precious metals futures contracts into the markets,” the DoJ said. “And to deceive other participants in those markets into believing something untrue, namely that the visible order book accurately reflected market-based forces of supply and demand.”

The DoJ alleged the three men named in the indictment placed deceptive orders for gold, silver, platinum and palladium futures contracts on exchanges run by the CME Group.

As well as being traded as investments, the precious metals also have widespread industrial uses, such as silver’s use in solar panels, and platinum’s use in catalytic converters for cars.

A former JPMorgan trader, Jonathan Edmonds, pleaded guilty to charges of spoofing last November. Another former JPMorgan precious metals trader, Christian Trunz, pleaded guilty in August.

GM workers strike after talks on pay and benefits break down United Auto Workers demands carmaker ‘recognise the contributions’ employees have made ANNA NICOLAOU IN NEW YORK

T

housands of General Motors workers have begun the first auto industry walkout in more than a decade, after talks broke down over pay and healthcare benefits at the company’s US factories.

The United Auto Workers said that the strike started early Monday as union leaders demanded GM “recognise the contributions” workers have made to “create a healthy, profitable industry”.

The decision came after a breakdown in talks in Detroit for a new four-year labour contract and as workers and carmakers alike brace for a weaker economy. The UAW is asking GM’s nearly 46,000 US factory work-

ers to stop working until further notice. It is the UAW’s first strike against GM since 2007.

In the wake of the financial crisis, unions had given the big carmakers concessions in their contracts, such as cuts to their healthcare and pension bills, helping GM reduce costs as it clawed its way out of bankruptcy. GM and other large auto companies subsequently enjoyed years of robust growth.

But the outlook for car sales has turned darker in the past year amid rising costs, falling car sales and shifting consumer tastes. In the US, shoppers are increasingly looking to sports utility vehicles and pick-up trucks, while at the same time carmakers must invest in technologies such as electric and self-driving vehicles. www.businessday.ng

Lisa Winton of Winton Machine: ‘“I’m just holding tight, because of that uncertainty’ © Ben Rollins Photography

Fed wrestles with trade war and Saudi oil attack uncertainty A potential oil shock will add to problems policymakers already face assessing economic risks BRENDAN GREELEY IN WASHINGTON AND CHRIS GILES IN LONDON

S

ales have been great this year for Winton Machine, a 35-person company in Suwanee, Georgia, that makes machines to bend metal tubes. Lisa Winton, chief executive, attributes its success to landmark tax reforms signed into law by US President Donald Trump in 2017, which freed up cash for other manufacturers to put her gear on their plant floors.

Demand has risen by so much that she now needs to move into a bigger plant. But she is putting off the decision. “I’m just holding tight,” she said, “because of that uncertainty.”

The uncertainty she is referring to is swirling around trade, as Mr Trump has escalated, de-escalated and re-escalated his trade war with China, and threatened traditional allies with tariffs, too. The weekend attack on Saudi Arabia’s oil infrastructure has intensified matters

due to its potential to disrupt crude supplies.

The Federal Reserve, under its chairman Jay Powell, is this week expected to cut interest rates by a quarter point for the second consecutive policy meeting.

The White House is keeping up its drumbeat of demands for greater monetary easing, and both inside and outside the Fed there are concerns the central bank has been underestimating the economic consequences of the trade and geopolitical uncertainty.

The Saudi attacks, which the US blamed on Iran, sent oil prices soaring in Monday morning trade, adding to difficulties for the Fed’s decision.

The central bank could be expected to ignore the direct effects, raising fuel prices, but would have to weight up the positive effect on demand for US oil against the negative effects on global demand, especially if this is the start of a wider bout of conflict in the Middle East.

With the length of disruption to oil supply unknown at present,

the Fed is likely to be cautious, but an oil shock would be the “last thing the world needed now”, said Erik Nielsen, chief economist at UniCredit because it creates the wrong sort of inflation.

“It imposes a tax on households and non-oil businesses across the world at a time when the global economy is already slowing,” he said.

A potential oil shock will exacerbate the problems the Fed already faces in understanding the depth of the trade shock.

With the rules of the road for importing or exporting businesses changing from presidential tweet to tweet, fixed non-residential investment, a measure of business spending on new equipment, has been slowing since the summer of 2018. Sales of industrial machinery — what Ms Winton makes — grew slightly in the second quarter, but overall investment turned negative, dragged down in part by a steep drop in new commercial buildings.

Trump storm rages over Scottish airport Controversy over US air force crew’s stopovers at the president’s Turnberry resort MURE DICKIE IN EDINBURGH AND LAUREN FEDOR IN WASHINGTON

I

t is not hard to see why Scotland’s troubled Prestwick airport is keen to expand its role as a stopover for the US military. At noon on a weekday the airport’s departures hall is deserted, the next of the day’s six scheduled flights still hours away.

“It’s a ghost town,” says one of a handful of staff serving the terminal’s shops and cafés.

But Prestwick’s role refuelling US Air Force aircraft has put the Scottish state-owned airport at the

https://www.facebook.com/businessdayng

centre of a growing controversy over the extent to which President Donald Trump personally profits from spending by the government he heads.

A congressional oversight committee on Tuesday demanded the US defence department provide information on increasing expenditure at Prestwick and on spending on air crew accommodation at the Trump Turnberry luxury golf resort 19 miles further down Scotland’s south-west coast.

Prestwick has been a military stopover site for decades, but the number of US aircraft using the @Businessdayng

airport has increased dramatically in recent years, as has the number of overnight stays in the vicinity by air crew.

In 2015 there were just 95 stops and 40 overnights stays, according to a US Air Force statement to US media. By 2018 this had increased to 257 stops and 208 stays. This year, in the first eight months alone, there have been 259 stops and 220 stays, USAF said.

USAF crew have stayed at Turnberry on at least four occasions involving more than 60 service personnel since September 2018, according to Politico, the US news service.

Tuesday 17 September 2019

BUSINESS DAY

A5

POLITICS & POLICY Why I was not surprised by tribunal’s judgment against PDP - Chekwas Okorie INIOBONG IWOK

C

hekwas Okorie, national chairman of United Progressive Party (UPP), has said that Atiku Abubakar, candidate of the People’s Democratic Party (PDP) in last February’s presidential election, lost to incumbent Muhammadu Buhari at the Presidential election Tribunal because Atiku and the PDP had no case.

Atiku, immediately after the election had filed a petition at the tribunal challenging the victory of Buhari.

Among the grounds of his petition was that Buhari did not possess the necessary academic qualification to contest the election.

But the tribunal last week ruled that the evidence tendered by the PDP showed that Buhari was “eminently qualified” to run for president.

It also ruled that the petitioners failed to prove there were electoral malpractices in the election.

The tribunal also said that the PDP failed to establish that electoral officials were harassed and that any such harassment influenced the outcome of the election, while also dismissing claims by PDP that the result of the election was transmitted electronically and stored in a server.

In a telephone interview with BusinessDay,

Babajide Sanwo-Olu, Lagos State governor (middle), flanked by his Deputy, Obafemi Hamzat (5th right); Yusuf Buba Yakub, chairman, House of Representatives Ad-hoc Committee on Port Decongestion (4thleft) and others during a courtesy visit to the governor by the Ad-hoc Committee at Lagos House, Alausa, Ikeja, on Monday.

Monday, on the state of the nation, Okorie insisted that the PDP and Atiku lost the presidential election, stressing that the result of the presidential election was a general refection of the performance of the party in the general election across the country.

According to him, “I am not surprised by the judgment because as a matter of fact, if there is any surprise it is the extent the tribunal went to indulge the PDP. Because in order to clear all doubts, they took a decision, which they made clear at the onset that the judgment was going to be based on law and fact and technicality.

“As for that reason they went to such elaborate extent to explain the issue of certificate. The issue of

Buhari certificate is preelection matter everybody knows that the tribunal should have thrown that away based on that,” he said.

“Three elections took place on that day, the House of Representatives, Senate and the presidential election. The APC won PDP over 100 seats in the House of Representatives and won PDP more than 25 seats in the Senate. Based on this, any victory for the PDP in the tribunal would have been what we called scoring against the run of play,” Okorie said.

Okorie further stated that the PDP should have concentrated on arguing about the proper conduct of the presidential election, rather than trivialising issues.

“Because the tribunal

was actually set up to examine if the election was organised in accordance with the law, but not about qualification; but they went into that and deal with it thoroughly. I am surprised that the tribunal gave Atiku judgment, giving what transpired,” he added.

He blamed the PDP for the misfortune which befell the party in the 2019 general election, stressing that while the party was in power he had made several moves for electronic voting to be legalised but was ignored.

“I made several moves for the electronic voting to be adopted when the PDP were in power but I was ignored, why did they not sign it into law? What is happening is what they should get,” Okorie added.

Makinde sets 20-year development agenda to ‘save Oyo’ REMI FEYISIPO, Ibadan

G

overnor Seyi Makinde of Oyo State has set a 20- year Development Agenda to save the state from underwhelming performance.

While saying that the administration was setting a high bar for its development objectives, Makinde said: “We have been underachieving for many years. Administrations have come and gone. Yes, they did their best, but we have to set a high bar for ourselves.

“Within the shortest possible time, we have to put in place a strategic development plan for Oyo State. Administrations have come and gone but operated on ad-hoc basis;

we will put in place a 15 to 20-year development plan for Oyo State. We will be bullish about our development plans.”

Speaking at the closing remarks at the end of a two- day Executive Retreat for his Executive Council members and senior aides at the International Institute for Tropical Agriculture (IITA), Ibadan, he clarified: “Of course, according to the mandate right now, it is for four years. So, what I mean is, we have to put up a plan or vision in which successive administrations won’t really need to go back and do the hard work again. Of course, we will do the hard work, and I have a feeling that we used to have some authentic heroes amongst

us here.

According to him, because when we are done, maybe the leadership of the next administration is here with us. So, we should not take anything for granted.”

Tasking his political aides and the top civil servants to work in harmony, he added that collective responsibility must be the watchword.

He however, said that the civil servants will be empowered to do their job but that the government will demand accountability.

“For our Permanent Secretaries and political office holders, it still remains soldier go, soldier come, but the barrack remains. How many gover-

nors have you seen their backs? You will see the back of this government too. But your commitment to the success of this administration must not waiver.

“But we are making a pact with you that the current administration will empower you. We will give you those responsibilities.

We will give you the authority to carry them out but we demand from you accountability. I know that the pertinent question that is probably agitating your mind right now is, ‘will the system be fair to you?’ I make bold to say that under my watch, absolutely.

“So, my appeal to everybody is, come with me, let us create a new prosperous Oyo State together and God will help us,” Makinde said.

Cross River Assembly moves to amend controversial Land Use Act MIKE ABANG, Calabar

T

he Cross River State House of Assembly has concluded plans to amend the controversial Land Use Act of 1978 that empowers the state governors to acquire land in the overriding interest of the state.

According to the House, the Act is an arbitrary law that gives state governors too much power to acquire community lands.

Charles Ekpe, House Committee chairman on Agriculture and Goddy Akwaji, House Committee chairman on lands, disclosed this in Calabar during a media briefing organised by Environmental Rights Action Friends of the Earth on the proposed bill for the Establishment of Land Use and Allocation Committee.

Majority of the House members including Regina Ayogu, representing Yala constituency agreed that the Act has outlived its usefulness, and should be amended in the interest of the communities and that of the people they represent.

Also, in support of the amendment, Mathew Olory, member representing Akamkpa, who doubles as chairman, House Committee on Local Government, said his community has been subjected to pains over the activities of some multinational companies as many lands belonging to the communities are being used without their consent.

They listed the affected communities to include Ibiaye community, Betem, Idoma, communities in Biase Local Government Areas and Mbarakom, Okon Ita communities in Akamkpa Local Government Areas of Cross River State.

The affected communities also described Wilmar plantations in the state as land-grabbing since they alleged that members of the community were not privy to any agreement entered into.

The community leaders have also continued to say that they were not carried along by the government and the companies.

Asuquo Isabella, founder of Community Forest Watch Akamkpa Local Government Areas, said that a new memorandum of understanding (MOU) drafting Committee should be set up in order to reflect community demands.

She stated that such Committee should comprise of membership drawn from chiefs, women, youth leaders and other stakeholders, even as she called on the lawmakers to be pro-people in their roles and responsibilities of making laws.

Godwin Ojo, executive director, Environmental Rights Action said the issue of overriding state interest in land allocation exercised by governors means that the government of the day owns land in trust for the people.

Abiodun urges opposition to support his administration, pledges to take Ogun to greater ABDULWAHEED OLAYINKA ADUBI, Kaduna

D

apo Abiodun, governor of Ogun State, has described the judgment by the Ogun State Governorship Election Petition Tribunal last weekend as the triumph of rule of law; victory for democracy and further validation of the mandate bestowed on him at the polls.

Abiodun also called on the opposition to join hands with him to take Ogun State to greater heights.

He said he remained magnanimous in victory and extended, urging the Allied Peoples Movement (APM), in particular to forget about 2019 gubernatorial election and join hand with his administration to the ‘Building Our Future Together’ agenda.

He advised that rather than dissipating energy and resources on litigation, they should either negotiate their return to the All Progressives Congress (APC) where they were or start preparing for 2023 elections.

“Opposition strengthens democracy and I appreciate

the fact that he went to the tribunal in exercise of his constitutional rights. The tribunal has validated the mandate freely given to us by the masses at the polls.

“The candidate and all members of APM and indeed members of other parties are free to join APC. Those who are still aggrieved should learn that democracy is about majority rule. The people have spoken and the tribunal has validated their choice of me.

Anybody who feels otherwise should start preparing for 2023,” he said.

In a statement signed by Kunle Somorin, his chief press secretary, Abiodun thanked the people of Ogun State for their support and solidarity, promising that he would not take their mandate for granted as he would continue to work towards enhancing the people’s welfare, peace and prosperity of the state.

He thanked the judiciary for the painstaking efforts and fair and lucid judgment which he said had further strengthened the nation’s democracy and enriched the jurisprudence.

A6

Tuesday 17 September 2019

BUSINESS DAY

Live @ The STOCK Exchanges Prices for Securities Traded as of Monday 16 September 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 261,257.41 7.35 1.38 304 15,890,677 UNITED BANK FOR AFRICA PLC 217,166.33 6.35 0.79 248 13,315,375 ZENITH BANK PLC 599,673.03 19.10 0.26 429 15,754,773 981 44,960,825 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 193,834.58 5.40 0.93 591 56,575,489 591 56,575,489 1,572 101,536,314 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,829,277.31 139.00 - 59 236,381 59 236,381 59 236,381 BUILDING MATERIALS DANGOTE CEMENT PLC 2,641,278.65 155.00 -0.26 203 664,723 LAFARGE AFRICA PLC. 236,784.59 14.70 0.34 72 8,825,422 275 9,490,145 275 9,490,145 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 270,684.50 460.00 - 26 15,647 26 15,647 26 15,647 1,932 111,278,487 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 13,074.52 4.90 - 0 0 0 0 0 0 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 0 0 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 50,461.84 52.90 9.30 41 1,493,218 PRESCO PLC 44,800.00 44.80 - 14 81,433 55 1,574,651 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,260.00 0.42 7.69 16 1,373,200 16 1,373,200 71 2,947,851 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 688.30 0.26 - 6 105,295 JOHN HOLT PLC. 237.38 0.61 - 4 137,671 S C O A NIG. PLC. 1,903.99 2.93 - 1 2,049 TRANSNATIONAL CORPORATION OF NIGERIA PLC 43,086.87 1.06 0.95 76 14,215,100 U A C N PLC. 19,160.62 6.65 0.76 201 7,039,542 288 21,499,657 288 21,499,657

BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 24,486.00 18.55 - 8 6,565 ROADS NIG PLC. 165.00 6.60 - 0 0 8 6,565 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,079.48 1.57 4.67 121 3,402,494 121 3,402,494 129 3,409,059 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 9,786.87 1.25 -3.85 8 246,538 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 81,044.16 37.00 - 31 94,950 INTERNATIONAL BREWERIES PLC. 103,150.34 12.00 - 22 242,004 NIGERIAN BREW. PLC. 411,840.46 51.50 0.88 58 5,902,744 119 6,486,236 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 110,000.00 22.00 -0.23 59 405,155 DANGOTE SUGAR REFINERY PLC 115,200.00 9.60 -0.52 175 1,380,282 FLOUR MILLS NIG. PLC. 55,355.12 13.50 - 62 1,104,425 HONEYWELL FLOUR MILL PLC 7,850.90 0.99 4.21 38 1,927,523 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 34,442.70 13.00 2.36 60 1,796,929 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 394 6,614,314 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 21,881.05 11.65 8.37 18 160,174 NESTLE NIGERIA PLC. 951,187.50 1,200.00 - 76 48,626 94 208,800 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 5,366.12 4.29 - 12 219,975 12 219,975 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 23,425.81 5.90 - 27 208,647 UNILEVER NIGERIA PLC. 166,605.16 29.00 -1.02 23 305,649 50 514,296 669 14,043,621 BANKING ECOBANK TRANSNATIONAL INCORPORATED 146,796.41 8.00 -0.62 100 2,218,599 FIDELITY BANK PLC 51,285.39 1.77 4.12 155 14,769,717 GUARANTY TRUST BANK PLC. 838,788.61 28.50 3.45 168 25,932,437 JAIZ BANK PLC 10,607.13 0.36 -5.26 12 1,093,428 STERLING BANK PLC. 67,657.48 2.35 - 81 3,853,444 UNION BANK NIG.PLC. 203,845.27 7.00 - 31 755,628 UNITY BANK PLC 7,364.28 0.63 -10.00 13 1,526,396 WEMA BANK PLC. 23,916.17 0.62 5.08 48 5,653,764 608 55,803,413 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 4,781.84 0.69 1.47 10 691,168 AXAMANSARD INSURANCE PLC 17,955.00 1.71 - 9 30,900 CONSOLIDATED HALLMARK INSURANCE PLC 2,439.00 0.30 - 1 12,500 CONTINENTAL REINSURANCE PLC 15,559.12 1.50 - 9 163,000 4,860.74 0.33 10.00 9 380,500 CORNERSTONE INSURANCE PLC GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,197.03 0.30 - 6 106,485 LAW UNION AND ROCK INS. PLC. 1,675.57 0.39 - 1 5,000 LINKAGE ASSURANCE PLC 4,080.00 0.51 2.00 2 236,180 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 - 9 3,168,165 NEM INSURANCE PLC 10,296.98 1.95 9.55 20 563,004 NIGER INSURANCE PLC 1,547.90 0.20 - 0 0 PRESTIGE ASSURANCE PLC 2,637.45 0.49 - 0 0 REGENCY ASSURANCE PLC 1,333.75 0.20 - 3 8,700 SOVEREIGN TRUST INSURANCE PLC 1,668.16 0.20 - 6 797,450 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 2 52,000 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 2 17,293 WAPIC INSURANCE PLC 4,817.79 0.36 -2.70 79 7,730,257 168 13,962,602

www.businessday.ng

MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,789.70 1.22 - 5 53,470 5 53,470 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,158.00 0.99 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 2,265.95 0.20 - 0 0 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,000.00 4.00 - 23 227,965 37,055.74 6.30 - 9 222,908 CUSTODIAN INVESTMENT PLC DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 34,060.66 1.72 1.18 153 12,423,088 FCMB GROUP PLC. ROYAL EXCHANGE PLC. 1,080.53 0.21 5.00 7 785,793 STANBIC IBTC HOLDINGS PLC 368,141.84 35.15 0.43 72 8,011,150 UNITED CAPITAL PLC 13,020.00 2.17 4.83 67 1,456,884 331 23,127,788 1,112 92,947,273 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 1 1,000 852.75 0.24 - 1 20,000 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 2 21,000 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 9,388.62 4.50 - 0 0 GLAXO SMITHKLINE CONSUMER NIG. PLC. 8,670.10 7.25 - 16 102,848 MAY & BAKER NIGERIA PLC. 3,605.74 2.09 - 8 154,890 854.62 0.45 - 4 119,661 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 0 0 28 377,399 30 398,399 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 816.96 0.23 4.55 7 1,005,300 7 1,005,300 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 534.60 4.95 - 0 0 TRIPPLE GEE AND COMPANY PLC. 282.12 0.57 - 8 104,564 8 104,564 PROCESSING SYSTEMS CHAMS PLC 1,127.05 0.24 -7.69 18 4,556,916 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 1 50 19 4,556,966 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,183,817.72 315.00 -10.00 21 165,452 21 165,452 55 5,832,282 BUILDING MATERIALS BERGER PAINTS PLC 2,173.68 7.50 - 5 6,615 CAP PLC 16,275.00 23.25 -6.06 16 95,740 CEMENT CO. OF NORTH.NIG. PLC 212,267.54 16.15 -4.44 80 1,498,018 MEYER PLC. 313.43 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,959.74 2.47 - 0 0 1,156.20 9.40 - 1 320 PREMIER PAINTS PLC. 102 1,600,693 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,465.85 1.40 - 11 129,480 11 129,480 PACKAGING/CONTAINERS BETA GLASS PLC. 29,873.33 59.75 - 2 2,005 GREIF NIGERIA PLC 388.02 9.10 - 1 500 3 2,505 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 1 5,523 1 5,523 117 1,738,201 CHEMICALS B.O.C. GASES PLC. 2,547.42 6.12 - 6 4,394 6 4,394 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 0 0 0 0 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 83.60 0.38 - 0 0 0 0 6 4,394 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,252.54 0.20 - 49 10,711,695 49 10,711,695 INTEGRATED OIL AND GAS SERVICES OANDO PLC 47,488.00 3.82 0.53 32 495,359 32 495,359 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 56,974.05 158.00 - 13 15,320 CONOIL PLC 11,658.40 16.80 - 46 205,085 ETERNA PLC. 3,716.81 2.85 - 4 13,900 FORTE OIL PLC. 21,295.57 16.35 -1.21 100 710,589 MRS OIL NIGERIA PLC. 5,729.98 18.80 - 2 170 TOTAL NIGERIA PLC. 33,952.18 100.00 - 31 36,225 196 981,289 277 12,188,343 ADVERTISING AFROMEDIA PLC 1,820.01 0.41 - 1 3,945 1 3,945 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 341.14 0.29 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,387.46 4.05 - 5 144,510 TRANS-NATIONWIDE EXPRESS PLC. 328.19 0.70 - 0 0 5 144,510 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,723.78 3.05 - 0 0 IKEJA HOTEL PLC 2,432.19 1.17 - 5 167,200 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 41,042.18 5.40 - 1 100 6 167,300 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 211.68 0.35 - 0 0 LEARN AFRICA PLC 1,072.32 1.39 - 5 31,530 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 452.98 1.05 - 11 251,184 16 282,714 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 596.77 0.36 - 1 34,249 1 34,249

https://www.facebook.com/businessdayng

@Businessdayng

Tuesday 17 September 2019

BUSINESS DAY

A7

news

FG commissions 98.8KW solar hybrid mini-grid in Kebbi State KELECHI EWUZIE

T L-R: Adekunle Awojobi, MD, FBNQuest Trustees; Oba Otudeko, group chairman, FBN Holdings plc; Omobola Johnson, senior partner, TL Com Capital LLP/former minister of communication and technology; UK Eke, GMD, FBN Holdings plc, and Seye Kosoko, chairman, FBNQuest Trustees, at the FBNQuest Trustees 40th anniversary ceremony in Lagos. Pic by Pius Okeosisi.

Nigeria’s private wealth dropped 17% in 3yrs; here is why …still among Africa’s top wealthiest countries BUNMI BAILEY

T

he safety concerns i n Nig e r i a t hat are discouraging w ealthy pe ople from staying in Africa’s most populous country, clampdown on foreign companies such as MTN, which has scared off investors, are amongst the reasons why the country’s total wealth declined by 17 percent from the year 2016 to 2018.

BusinessDay findings of the wealth data from Africa Wealth report 2019, by AfrAsia Bank, a private and corporate bank in Mauritius, show that Nigeria’s total wealth steadily declined by 17 percent to $225 billion in 2018 from $270billion in 2016.

A breakdown of the report shows that the country’s total

wealth reduced by 6.2 percent to $270 billion in 2016 from $253 billion in 2017 and by 11.1 percent to $225 billion in 2018 from $253 billion in 2017.

Private wealth can be referred to as the wealth held by all the individuals living in each country. It includes all their assets (property, cash, equities, business interests) less any liabilities excluding government funds.

The report provides a comprehensive review of the wealth sector in Africa including individuals with a wealth of $1 million or more (HNWI), luxury treads and wealth management treads in 17 countries and 201 cities across the continent According to the report, the possible reasons for the decline are the safety con-

cerns in the country, which have deterred investment and discouraged wealthy people from staying in the country, especially women safety which is an issue in the North of the country, and the outgoing migration of those HNWI who have moved abroad mostly in countries in Europe.

“Furthermore the clampdown on foreign companies such as MTN which has scared off investors, loss of local currency value versus the dollar and drop in oil prices add to it. The year-end Brent crude oil price peaked at the end of 2012-it now stands at $51 as of December 2018,” the report stated.

This year, Nigeria was ranked the fifth most dangerous country based on violence and terrorist attacks by

Boko Haram, according to the World Economic Forum.

MTN, Africa’s largest telecoms company, over the past five years has faced potential fines of up to $15 billion in Nigeria for a range of alleged misdeeds. The latest was last year when the company was accused of owing $2 billion in taxes by Nigeria’s attorney general.

Last year, Nigeria overtook India as the country with the largest number of people living in extreme poverty, thereby becoming the world capital of poverty, according to the Brookings Institute.

This year, the number has risen to 91.6 million from 87 million in June 2018. Every minute, six Nigerians enter the group of extremely poor people, according to the World Poverty Clock.

Maintain credibility, remain unshaken to promote public confidence in judgments, Malami urges judges Felix Omoh-Asun, Abuja

T

he Minister of Justice and Attorney General of the Federation (AGF ), Abubakar Malami, has called on judges to maintain credibility and remain unshaken in order to foster and promote public confidence in judgments from the courts.

He said it was only through the promotion of these values that the greatest heights in the legal profession could be achieved.

Malami, who spoke at the special session to mark the commencement of Federal High Court 2019/2020 legal year, Monday, called on judges to always remember in the course of their duties that “pivotal role played by the Federal High Court by virtue of section 251 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) makes this Court unique and

distinct from other Courts of coordinate jurisdiction.

“In the light of its jurisdiction as noted in the Constitution above, I humbly urge this Court as part of the judicial arm of government, to remember that it is the anchor upon which our legitimate claim to a civilized society rests and revolves,” he said.

Meanwhile, the Acting chief judge of Federal High Court, Justice John Tsoho, has implored relevant stakeholders in the country to appoint more judges to the federal high court, to alleviate the work load of judges.

Speaking on the occasion, Monday, Tsoho said federal high court judges were overburdened with workload in the out gone legal year, adding that more judges needed to be appointed to ease their work schedule.

Reviewing the just ended legal year, Tsoho said 116,623 cases were pending at the www.businessday.ng

high court, 16,144 filed in a quarter, while 12,692 were disposed off.

“It is pertinent at this juncture to highlight the stature of litigation before this court in the last legal year. From reports received, about 116,623 cases are pending in the federal high court. 16,144 cases were filed in this quarter alone in which 12,694 have been disposed off. It is obvious that judges were overburdened with work in the last legal year. We therefore need to engage more judicial officers to help out.

“However, it does appear that there was no provision for appointment of judges in the current budget. I will make efforts to discuss with relevant stakeholders to see to the possibility of facilitating the recruitment of more judicial officers in the course of the year,” he said.

Tsoho said that training of judges and staff of the

judiciary to enhance professionalism was of paramount interest to the judicial authorities.

He said the judiciar y would work with the legislature and the executive to entrench constitutionalism in the federal judiciary.

He disclosed that the federal high court now has amended federal high court (civil procedure) rules 2019 which came into force on the 10th day of May, 2019. “The new rules contain certain innovations to meet with the dynamism in law and to bring the court at par with other courts in the developed world. Some of these include affidavit of non-multiplicity of actions (Order 3 Rule 9(2)(d); a reinforced interpretation of the Territorial Jurisdiction of the Federal High Court, such that no leave is required for service of process anywhere within the federation (Order 5 Rule 31).”

https://www.facebook.com/businessdayng

he Federal Governm e nt o f Nig e r i a, through its Implementing Agency -Rural Electrification Agency (REA) will today (Tuesday) commission a 98.8KW solar hybrid mini grid power plant at Kare-Dadin Kowa, in Kebbi State.

Kare-Dadin Kowa is a small riverine community in Argungun local government area of Kebbi State, with a total population of about 3,180 people, whose major vocations are agriculture and fishing.

The project is part of government’s commitment to provide equitable electricity access to unserved and underserved communities across Nigeria thereby increasing electricity access to particularly hard to reach areas.

Following the installation of the 98.8KW solar hybrid mini grid power plant, 483 residential buildings, 82 commercial buildings and over 3,000 inhabitants of Kare-Dadin Kowa will be connected to receive constant electricity henceforth.

A total of 565 high grid solar panels have been installed to power homes, businesses, places of worship, schools, and health centres.

Sanusi Ohiare, executive director, Rural Electrification

Fund (REF) says that KareDadin Kowa community is the second of twelve communities earmarked to benefit from REF grants.

Ohiare while speaking on the project’s implementation said the community was selected since they attained legal, regulatory and procurement compliance and no objection from the Federal Government.

“In line with REF’s Public -Private Partnership (PPP) model, the project as executed by Nayo Tropical Technology Limited is constructed in line with international standards and best practice,” Ohiare, said.

The Nigerian Rural Electrification Agency (REA) is the Implementing Agency of the Federal Government of Nigeria (FGN) tasked with electrification of unserved and underserved communities.

The Rural Electrification Fund (REF) provides equitable access to electricity across Nigeria to maximise the economic, social and environmental benefits of rural electrification grants, to promote off-grid electrification, and to stimulate innovative approaches to rural electrification.

REF projects are administered using the PPP model.

The first call of the REF will energize 12 communities and deploy 19,000 Solar Home Systems (SHS).

Fast Credit targets 36m unbanked Nigerians through microloans …partners PFS for accounts reconciliation solution Endurance Okafor

F

ast Credit Limited, a financing house focused on providing fast and needoriented, payroll-based consumer loans has said it is rolling out products that will not only provide credits to low-income earners, but will also include them in the financial net.

Established in August 2014, Fast Credit is into the business of financing personal, business and emergency loans with more of its portfolio in the public sector.

According to Idechi Amucheazi, Group Head, Fintech & Innovation at Fast Credit, the company is designing products that will encapsulate the needs of the specific sector of the society, all in line with the financial inclusion agenda of the Central Bank of Nigeria (CBN).

“Yes we have something we are currently working on for the unbanked informal sector and within the next few weeks we’ll be launching it,” Amucheazi told BusinessDay during a recent press briefing at Fast Credit headquarters in Lagos.

In his remarks, he added that it was important that Fast Credit knew what the financially excluded Nige@Businessdayng

rians were into and how they do it in order to design suitable products to meet their needs. “All of it will fit into our own process and we want something that will be technology-driven in order to avoid the traditional way of reaching out to them.”

The national financing house licenced by the CBN will be targeting about 36.6 million Nigerian adults, representing 36.8percent of the Nigerian adult population, who do not have access to formal financial services.

“Fast Credit is into the micro-lending market because there are huge untapped opportunities in the market. We provide value-based lending to this bottom of the pyramid that may not have access to credit from the traditional banking system in line with the financial inclusion policy of the CBN,” Emeka Iloelunanchi, Chief Operating Officer, Fast Credit, said.

The lender is different from some conventional credit-financing institutions because while some commercial banks require a customer to have a bank account with them before they can access loans, Fast Credit does not care if a customer has an account with them or not before giving such a person a loan.

A8

Tuesday 17 September 2019

BUSINESS DAY

news

Stransact Nigeria joins international accounting group TIAG SEGUN ADAMS

S

t r a n s a c t Pa r t n e r s and Stransact Audit (Stransact), one of Nigeria’s leading auditing and tax services firms, were recently admitted as members of TIAG® (The International Accounting Group), an international alliance of independent accounting firms. Stransact will be the exclusive member of TIAG for Nigeria.

Stransact’s membership in TIAG, and the broader TAG Alliances®, will enhance its international capabilities and services by providing the firm with strategic connections to high-quality accounting firms, law firms and other professional services firms in more than 100 countries.

The accreditation came on the heels of TIAG members having been invited to join TIAG only after undergoing a comprehensive vetting and selection process. Firms were carefully chosen based on professional competence, commitment to client service, reputation within the business community, and recommendations from existing members, and are ultimately reviewed and approved by the TIAG Advisory Board.

Partners of Stransact, Abayomi Salawu and Eben Joels, said they were delighted about the firm’s membership

of the alliance and would continue to work with clients to ensure that they are the biggest beneficiaries of the association with TIAG and TAG Alliances.

“TIAG will provide us with additional international support to help us better serve the cross-border needs of our clients,” Salawu and Joels said.

Richard Attisha, president & CEO of TIAG & TAG Alliances, described Stransact as an excellent firm, saying they are pleased to have them as members of TIAG & TAG Alliances.

“The breadth and quality of their services as well as their reputation and prominence in their market makes them an attractive resource for our members and their clients,” he said.

Stransact operates as two integrated firms, Stransact Audit and Stransact Partners, providing audit, review, other assurance, and related services such as financial reporting and bookkeeping services.

Stransact Partners is the advisor of choice for discerning growing businesses.

The company offers the full range of tax and advisory services and it is renowned for its dedication to seeing small businesses assess premium transactions and advisory services at a fraction of the true value.

M&A imminent as insurers execute action plans to meet recapitalisation deadline Modestus Anaesoronye

A

new wave of merger and acquisitions is set to start in the nation’s insurance industry as the National Insurance Commission (NAICOM) completes review of companies’ recapitalisation plans tomorrow.

NAICOM had fixed September 17, 2019 as the last day to complete review of recapitalisation plans submitted by insurance companies and give direction for effective actions on how to comply with the minimum paid-up requirement.

A top official NAICOM who preferred anonymity said some companies have been directed to consider merger or acquisition in order to comply.

“Some companies seem not to understand the recapitalisation requirement, so we have told them that they were on the wrong track and have options of business combination with other bedfellows if they want to remain in business or to shop for the money,” the source said.

“We are not foreclosing a merger deal, as long as we can find those who share the same vision with us,” an industry CEO told BusinessDay, weekend.

The CEO said merger was not a bad option for the firm, but it has to be right in such a way that it creates shareholder value.

Sunday Thomas, acting commissioner for insurance/ CEO, NAICOM, said during a seminar for insurance directors in Lagos that the commission

has received reasonable number of companies’ recapitalisation action plans but noted, however, that some firms did not understand the guideline.

“We shall review the plans and guide them, and where we need to meet such companies’ directors, we will,” Thomas said. Guy Czartoryski, head of research at Coronation Research, an arm of Coronation Merchant Bank, said he expects to see mergers and acquisition in the course of the insurance industry recapitalisation.

“The potential impact of the May 2019 circular on the composite insurers could be drastic.

We might see eight companies either seeking to merge or raise a considerable level of fresh capital,” he said.

According to the recapitalisation timetable, NAICOM has till September 17 to review the submissions, engage the companies and their directors one-on-one if need be, and direct next steps.

NAICOM had, in a circular dated July 23, 2019, titled ‘Re: Minimum Paid Up Share Capital Policy for Insurance and Reinsurance Companies’ and sent to all insurance and reinsurance firms, said the recapitalisation plan should include, among others, capital status of the companies as at the last audited financial statements, board resolution on how to comply with the directives, and detailed action plan on how the funds for the recapitalisation are to be sourced with timelines and deliverables.

R-L: Asue Ighodalo, chairman, Nigerian Economic Summit Group (NESG); Zainab Shamsuna Ahmed, minister of finance, budget and national planning; Clem Agba, minister of state for budget and national planning, and Nnanna Ude, co-chair, NES#25 Joint Planning Committee (JPC), at the 25th Nigerian Economic Summit (NES #25) Pre-event Press Conference in Abuja.

Stakeholders task government, private sector on plastic pollution environmental risks …Advocate immediate partnership for solutions Daniel Obi

C

oncerned stakeholders in Nigeria have drawn the attention of the government and the operators in the private sector to the increasing challenge of plastic pollution in the country, warning that this requires urgent solution to obviate its sweeping consequences in the environment.

They called for immediate collaboration between government, private sector and communities to tackle the challenge toward having a safe environment and preserving the future.

Increasing usage of plastics, composed of toxic chemicals and non-degradable substance, has given rise to one of the major toxic pollutants , leading to air, land and water pollution , which has created challenges for plants and animals.

This has naturally posed a challenge to Nigeria’s economic growth and the possibility of the reaalisation of the 17 Sustainable Development Goals, which the United Nations set to be achieved by 2030.

These were part of the con-

cerns of speakers at a one-day CEO Roundtable on Sustainability themed ‘Action to Mitigate Plastic Pollution’, organised by Lagos Business School over the weekend, in partnership with some organisations. The gathering aimed at exploring various frameworks for partnerships and collaborations between the government, private sector and the larger society in addressing plastic pollution in Nigeria.

Describing the present plastic pollution in Nigeria as a matter of urgent attention, the Managing Director of Guinness Nigeria, Baker Magunda, said this required companies, governments, civil society groups and the general public to begin to take specific steps towards tackling the issue.

He said the the world is dealing with this global epidemic, noting that at least 8 million tonnes of plastics are dumped into the ocean every year. This, according to him, was the equivalent of a garbage truck dumping its load into the ocean every minute.

Magunda said mitigation of plastic pollution was pertinent as researches had confirmed the adverse effects of plastic

pollution on the health and well-being of humans, aquatic life and society at large.

The Guinness director believes that a proactive approach to establish new and leverage existing multi- stakeholder partnerships which support the collection, processing, recycling of plastics will lead to the transformative solutions needed not only to tackle the issue of plastic pollution but also help protect the environment on which lives and the businesses depend.

In her presentation, Folasade Morgan Chairperson of Food and Beverage Recycling Alliance (FBRA), said that government had a role to play by ensuring that the right policies were put in place to drive consumer participation in waste management and to drive enforcement of proper waste sorting practices in Nigeria.

She said in Nigeria about 148,000 tons of plastic wastes alone are generated annually while less than 30% is collected because collection is highly informal.

“When collection firms collect single-used plastics, it makes it cheaper to recycle. When we are able to build that awareness, investors will be attracted to set

up recycling facilities because they can see that there is a working system for waste collection,” Morgan who is also the corporate affairs director at Nigeria Breweries Plc said.

Special Assistant to President Buhari on SDGs, Adejoke Adefulire, represented at the forum by her assistant, Bala Yussuf Yunusa, said the issue of sustainable development spoke to the environment which is one of the SDG goals.

He said there was a need to involve the Organised Private Sector for expert advice and financial resources to achieve the SDGs, which are interrelated.

Speaking earlier, Chris Ogbechie, Director LBS Sustainability Centre, advised that “we should not wait until we get to the crisis level before we begin to tackle the challenge” of plastic pollution.

During the panel discussion, Anil Ramchand Mohinani, Country Manager, Mohanani Group, said 9,000 tons of general waste - plastics, nylon and bottles are generated annually and regretted the gap in collection of wastes. He advocated for the monetisation of waste to attract investors.

Three bills pass second reading, four motions to be taken as Reps resume Tuesday ...Xenophobic attacks to form matters of urgent public importance James Kwen, Abuja

A

t least three bills may pass second reading and four motions would be taken as the House of Representatives resumes sitting Tuesday after about two months of annual recess, BusinessDay reliably gathered.

The bills include, Bill to amend the Investment and Security Act, sponsored by Nkem Abonta (PDP, Abia), Bill on the Establishment of Cancer Registry, sponsored by Nicholas Ossai (PDP, Delta) , and Nigerian Institute of Plant Protection Bill sponsored by Henry Archibong (PDP, Akwa- Ibom).

The House would also take motions on Erosion, Ban on Importation of Vehicles, Inland

www.businessday.ng

Borders and Issues of Gold Mining.

Before the annual recess, 287 bills had passed first reading, with two passing second reading in the 9th House of Representatives, while 63 motions had been deliberated on and resolutions made.

A reliable source in the Rules and Business Committee of the House, saddled with the responsibility of scheduling bills and motions on the Order Paper for deliberation told BusinessDay on the condition of anonymity that apart from the three bills and four motions there would be matters of urgent public importance.

“For this week there are second reading bills and some motions. As they are coming back, some matters of urgent public

https://www.facebook.com/businessdayng

importance will be coming up.

Likely to be on the matters of urgent public importance is the xenophobic attacks on Nigerians in South Africa which prompted the House to make moves to cut short its annual recess and reconvene at least for a day to address the issue but was not done.

However, the House leadership led by the Speaker, Femi Gbajabiamila at a world press conference summoned the Minister of Foreign Affairs, the Nigerian Ambassador to the Republic of South Africa, the Chairman of the Nigerian Diaspora Commission and other stakeholders, to jointly consider the causes of the xenophobic attacks on Nigerians in South Africa.

The House had also urged President Muhammadu Buhari @Businessdayng

to direct the Ministry of Health to assist the bereaved families in expediting the return of loved ones who have lost their lives in the unfortunate attacks.

The Green Chamber vowed not only to determine the causes of the attacks but also to assess and account for the loss of lives and properties that have occurred, to allow the Federal government to more accurately demand reparations to compensate Nigerian citizens who suffered in this recent orgy of violence.

Also, the Minister of Foreign Affairs, Geoffrey Onyeama who was to appear to before the House Leadership last Wednesday but could not because of the weekly Federal Executive Council meeting, is rescheduled to appear this week.

leaderSHIP

BUSINESS DAY Tuesday 17 September 2019 www.businessday.ng

CEO IN FOCUS

Uche Dimiri: Providing direction in Nigeria’s underdeveloped drilling market DIPO OLADEHINDE

U

che Dimiri, CEO of Depthwize is embarking on a journey to change the narrative in Nigeria’s drilling industry. He is providing leadership and excellence in the largely underdeveloped Nigerian inland and shallow water drilling market.

For many, Depthwize was not a name that rang a bell 10 years ago but the company has risen from obscurity to arguably a major player in the drilling sector of Nigeria’s energy industry by delivering oil & gas wells for companies in the swamp and shallow water environment, which was feasible due to Depthwize’s recognition of the peculiarities and challenges of drilling operations in the Niger Delta.

Uche Dimiri started his career as a field engineer at Schlumberger in 1988 and went on to work across three continents to become a worldwide drilling training manager. Prior to founding Depthwize, he was the founding CEO of Oando Energy Services (OES) were he had the opportunity of leading a team of talented engineers for over four years who were primarily involved in drilling contracting and drilling fluids business.

Since founding Depthwize in 2011, Uche Dimiri has increased the company’s assets to three rigs, two swamp barges, and one column-stabilized and fully-submersible offshore rig, while also providing marine ser vices, rig move services, as well as other activities according to client’s request.

Fiscal terms are the most important terms of a natural resource contract as they delimit and define the amounts of profit and economic rent that will accrue to each party throughout the life of the contract. For Nigeria, these terms are critically important as the country has remained dependent on the industry for the bulk of its foreign exchange earnings for over thirty years.

Despite the challenges, Depthwize’s standing in the re g i o na l ma rke t, c o mb i n e d with high permeability rate for Nigeria’s oil reservoirs, allowed it to not just survive but also build through the 2015-2017 market downturns.

Despite a declining market, Depthwize was able to repay its outstanding loans by trimming its workforce despite retaining quality services, making investments in field development de-

Uche Dimiri

spite general market downturn and drilling some of the best wells in the country, as deep as 19,700ft.

“We realized about six wells for our top client and were able to ramp up production from 8,000bpd to about 25,000bpd, with huge potential for further increases. For the oil and gas industry, 2015, 2016, and 2017 were difficult years. It is beginning to ramp up now, albeit with a lag in increasing prices and confidence amongst oil companies to commit to drilling,” Dimiri said in an interview with businessyear.com Under the leadership of Uche Dimiri, Depthwize, through its vehicle – Depthwize Funding Company Plc, is seeking to raise N20 billion via series 1 of its N30 billion program. The company intends to use the proceeds to finance its maturing commercial syndicated loan and finance ongoing business operations.

Analysts from ARM Securities Limited believe that Depthwize is an improving credit story

”

Nigeria has skilled professionals who can take a company from the first stage to the last, and this should give confidence to global investors

driven by both organic growth in earnings and ongoing deleveraging exercises.

“The proposed refinancing as well as analyst’s expectation of higher earnings points to a lower leverage ratio in coming years,” Analysts from ARM Securities Limited said.

Analysts from ARM Securities Limited also expect Depthwize’s finance charge to decline by 65percent over 2018, reflecting the 5-year moratorium offered by its lessor, Megadrill Service.

The five-year moratorium given by Megadrill Service will drive finance cost lower over the coming years. With no major capital expenditure in sight, increased EBITDA should translate to improved positive free cash flow.

“Farther out, whilst finance charge will track higher on the back of its bond issuance, the expected jump in earnings given the revival of 2 key rigs will see coverage ratio expand,” ARM Securities Limited said.

However, analysts see some

mitigating factors. First, the bond issuance is fully guaranteed by Megadrills Service Ltd – the lessor of the oil rigs to Depthwize Ltd. In addition, the planned refinancing of foreign currency loan to local currency debt creates an opportunity to avert foreign exchange risk.

Dimiri also expects indigenous players to play a bigger role in the oil and gas industry in 2019 although he also thinks funding is still a key issue, and it is why many indigenous players have not attained their true potential.

According to Dimiri, there are issues such as political risk, environmental issues, and insurgencies in the Niger Delta, not to mention the northeast, all of which makes raising capital difficult as many people are scared of doing business in Nigeria.

“One has to often get funding externally, from international investors, which requires local actors to inspire a certain level of confidence,” Dimiri said.

He noted that Nigeria is one of the world’s easiest places to drill for oil because once oil is discovered; permeability is high, meaning the oil will rapidly move through the rock however there is serious need for facilities to transport this crude from offshore locations.

“There is also a security consideration throughout the industry. Nonetheless, Nigeria has skilled professionals who can take a company from the first stage to the last, and this should give confidence to global investors,” Dimiri said.

On his outlook going forward, Dimiri said he wants to keep the three rigs working, acquire five more rigs in the next five years and also have more partnership and collaboration with other companies with the aim of expanding optimization.

“We have to take risks because, quite simply, if nothing is ventured, nothing will be gained.

Our plan was to have five rigs within five years, and we were well on our way to fulfill that before to the downturn. Therefore, at present, we are looking at alliances with key partners and a degree of expansion where we can leverage others’ assets,” Dimiri said.

The CEO of Depthwize admitted that competition in the sector is brutal, however his firm remains committed due to the quality of the firm’s personnel, intelligence, and solid assets.

Other risks to monitor is the sensitivity of Depthwize business to oil prices and militant activities in the Niger-Delta area considering it operates majorly in shallow water drilling. Lower oil price will cause a reduction of activities in the oil industry, thus limiting the company’s earnings.

Also, a blow-out of militant activities like what was witnessed in 2016 could see business operation decline.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Advert Hotline: 08033225506. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Patrick Atuanya. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.