BusinessDay 19 Feb 2019

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Investors sell Nigerian assets on election delay Stocks slide 1.61%, bond yields climb, naira weakens

IHEANYI NWACHUKWU, HOPE MOSES-ASHIKE & LOLADE AKINMURELE

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nvestors dumped Nigerian assets on the first trading day following the postponement of Presidential and National Assembly elections on worries that the delay is fuelling uncertainty.

The naira weakened, stocks fell and bond yields rose as investors exited positions.

The Independent National Electoral Commission (INEC) over the weekend postponed the Continues on page 34

Yemi Odubiyi (l), executive director, corporate & investment banking, Sterling Bank plc, with Sidi Ould TAH, director-general, Arab Bank for Economic Development in Africa (BADEA), at the signing ceremony of the $65m credit line to Sterling Bank from BADEA at Cairo, Egypt, yesterday.

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February 23: Nigeria’s date with history CHRISTOPHER AKOR

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arring any lastminute changes o r u n f o re s e e n circumstances, Nigerians will on Satur-

ANALYSIS day go to the polls to elect a President and National Assembly members for the next four years.

The elections, earlier billed to take place on February 16, were postponed to February 23 by the Independent National Continues on page 34

Inside The Dating 101 Guide to Recruitment: An introduction

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Understanding the economy of Nigeria’s 36 states – Oyo & South-South

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Insurers absolve selves in $1bn loss to economy over postponed elections …As engagement with INEC not covering postponement MODESTUS ANAESORONYE

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nsurance companies will not be paying any compensation to the Independent National Electoral Commission (INEC) or businesses who closed shop following the postponement of last Saturday’s Presidential and National Assembly elections, sources in the risks management industry told BusinessDay. This is because INEC’s engagement with insurers is limited to certain aspects of the election process and does not include postponement.

The economy may have lost an estimated $1 billion (N360 billion) or 1 percent of Nigeria’s 2018 GDP due to the postponement of the Presidential and National Assembly elections from February 16 to February 23, 2019, according to Bismarck Rewane, CEO of Financial Derivatives Company.

SB Morgen Intelligence, in a recent report, estimated that INEC may have lost N6.23 billion as a result of the election postponement.

But not a kobo of this cost will be borne by insurance companies as their contract with INEC does not cover the cost of postponement of elections.

“Insurance companies have assisted INEC up to the level of providing job guarantees to contractors and vendors, and insurance protections to ad-hoc and main staff, including all risk protection for materials and equipment in warehouses across Nigeria. That is the limit to which INEC wants us to be involved,” says a CEO who is a member of the Nigerian Insurers Association (NIA).

If insurers were to offer a reprieve against events like election postponement, then they must be involved from the beginning through project design and management, said the CEO on condition of anonymity.

Julius Opara, partner at Premium Debate Consulting, said from the

explanation of INEC chairman, Mahmood Yakubu, the commission’s major challenge is in the area of logistics and delivery of items.

“As an underwriter and risk manager, we would put this to test and consider options in the logistics before accepting the risk. For instance, we may suggest choppers that have the capacity to land close to designated LGAs. The Air Force C130 Hercules may just be good for major cities in the six geopolitical zones,” he said.

For this type of risk, Opara said, Performance Bond Insurance to a private contractor who will be held accountable and appraise the business pedigree will be the most appropriate kind of cover.

“Election materials are as sensitive as printing of a country’s currency, national examinations materials, supply of arms and ammunition, and most of these are conducted by private firms with government officials supervising. INEC needs to appreciate this and outsource as much as possible,” he said.

Oparasaidinsurance can help in futureelections,addingitisforthegovernment to appreciate that insurers have the largest retinue of risk managers.

“We must appreciate that election is majorly about managing risk against various exposures. Availability of money is not a guarantee of hitch-free election. We need experts in project and risk management more,” Opara said.

“It is a trite and illogical argument to say that because elections were postponed in 2011 and 2015, then it follows that this must also be postponed. The circumstances may not be the same and obviously the umpires were not the same but, more importantly, we must be seen to be learning and moving forward,” he said.

•Continues online at www.businessday.ng

PDP, others disagree with Buhari on shoot-at-sight order, ‘threat’ to INEC TONY AILEMEN, INNOCENT ODOH, OWEDE AGBAJILEKE & HARRISON EDEH, Abuja

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resident Muhammadu Buhari has come under criticisms over his order to the security agencies to shoot at sight anyone caught snatching ballot boxes during the coming elections.

The President was equally slammed for his threat to make the Independent National Electoral Commission (INEC) account for the postponement of Presidential and National Assembly elections from February 16 to February 23 over logistics and operational issues.

Buhari had issued the order and threat to INEC during the All Progressives Congress (APC) caucus meeting on Monday, stressing that the commission had questions to answer over the postponement of the general elections. He said that INEC had all the resources it needed to carry out its duties but failed.

Despite the constitution and law making the electoral body independent, Buhari said “the reasons why such incompetence manifested itself has to be explained to the nation”.

On the shoot-at-sight order, Buhari said, “I have given military and police order to be ruthless. I am not afraid. I

have moved around the country and have enough people to vote for me.”

But reacting to Buhari’s declaration on Monday, main opposition People’s Democratic Party (PDP) accused the president and his ruling APC of plots to truncate democracy, even as the PDP rejected Buhari’s alleged directive to reshuffle the Resident Electoral Commissioners (RECs) to achieve favourable results for his party.

The PDP in a statement issued on Monday by Kola Ologbondiyan, its national publicity secretary, described the shoot-at-sight order as a direct call for jungle justice and an attempt to divert public attention from the APC’s closed session where details of their dastardly plot to truncate Nigeria’s democratic process would be perfected.

“We do hope that this call by President Buhari is not a camouflage for the fake soldiers mobilised by the APC to shoot at innocent Nigerians, snatch ballot boxes and execute their rigging plans on the election day.

It is indeed a licence to kill, which should not come from any leader of any civilised nation,” the PDP said.

The main opposition party alleged that upon getting to their voting constituencies last Saturday, APC

Continues on page 4

L-R: Rotimi Amaechi, minister of transportation; Bola Tinubu, national leader, All Progressives Congress (APC); Adams Oshiomhole, national chairman, APC; Vice President Yemi Osinbajo, and President Muhammadu Buhari, during the arrival of the President to the APC caucus meeting in Abuja, yesterday.

How Lagos power tussle cost Nigeria ABAT truck terminal at Orile-Iganmu, others JOSHUA BASSEY

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t was projected to be completed in seven months, but six months after its construction was flagged off in August 2018, nothing serious has been started. Even the contractor is nowhere near the site, dashing every possible hope of delivering the Alhaji Bola Ahmed Tinubu (ABAT) Truck Terminal at Orile-Iganm in Lagos any time soon.

The truck terminal had been proposed to accommodate over 1,000 petroleum tankers (wet cargoes). Beyond the wet cargoes, the state government had also hinted at further expansion to accommodate containerised trucks.

All this was intended to bring the much-desired relief to millions of road users who are suffering directly and indirectly from the harmful impact of the continued occupation of major roads and bridges in Nigeria’s commercial

nerve-centre by petroleum tankers and containerised trucks.

But with less than four months to the end of Governor Akinwunmi Ambode’s administration in the state, it’s obvious that the ABAT truck terminal, like many other projects started by the administration, would not be delivered.

The implication is that the relief that the truck terminal would have brought to millions of Nigerians and Lagosians in particular remains a mirage as several hundreds of trucks still lie on major roads in the state, including Funsho Williams Avenue (former Western Avenue), LagosBadagry Expressway, Eric Moore, Eko and Ijora-Apapa Bridges.

It was reliably learnt that the contract for the project was not formally sealed between the state government and Planet Projects Limited. Governor Ambode, in a quest to find an enduring solution to

the grinding gridlock around Apapa in the heat of the public outcry that trailed the damage being caused to the economy by the activities of the trucks, had directed the contractor to start work, with the plan to formally seal the contract in later days.

Planet Projects is a major contractor to the Lagos State government under Governor Ambode. The company is involved in a number of government’s projects, including the multi-billion naira Oshodi Transport Interchange, the ultra-modern Ikeja Bus Terminal, among others.

A source told BusinessDay that unfolding political events in the state soon after the construction of the truck terminal was flagged off on August 5, 2018 put strain on the execution of the project, leading to the contractor pulling its personnel and machinery from the site in less than two months.

“The contract papers were not

Continues on page 4

Banks make N2.11trn in fees, commission income in 5 years ... as lenders diversify earnings away from interest income BALA AUGIE

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ank profits have been growing at a slower pace in 2018 as a lower-yield environment signalled the end of free money.

That means managers of financial institutions will have to think out of the box and embrace digital transformation so that fees and commission income can help add impetus to earnings and margins.

Analysts are optimistic that noninterest income will be a major driver of revenues because of the proliferation of applications among the populace, and also the use of Point of Sales Transactions and internet banking across all segments.

Between December 2013 and 2017, the 13 largest banks made N2.41 trillion in fees and commission income as they continued to scramble for market share.

A breakdown of the figures shows cumulative fees and commission income increased by 10.18 percent to N556.63 billion in December 2017, from N502.19 percent as at

December 2016.

However, in 2015, there was a 2.09 percent drop in the combined figure as banks had to suspend letters of credit and scale back other services for which they charged fees at the height of the foreign exchange crisis.

“We expect that that there will be more commission income because online banking is becoming increasingly convenient as more customers are adopting technology to carry out transactions,” said Ayodeji Ebo, managing director and CEO, Afrinvest Securities Limited.

“When small and medium enterprises are able to use these applications, it means a lot of earnings for lenders in terms of their commission,” said Ebo. Banks and companies are increasingly tapping into Nigeria’s digital potential as the economy recovers.

Mobile phone subscribers in the nation of almost 200 million people reached 162 million in September 2018, according to the Nigerian Communication Commission (NCC).

Fidelity Bank plc had already hiked spendingondigitalisationbymorethan

40 percent in 2018, according to Gbolahan Joshua, chief operations officer.

The tier-2 lender’s mobile/internet banking revenue was up 31 percent to N1.81 billion in September 2018, from N1.38 billion as at September 2017.

“Over 40 percent of customers are now self-enrolled on mobile/ internet banking products while over 80 percent of customers’ transactions are now done on electronic banking channels,” said the bank.

Access Bank’s focus on digital and mobile banking continues to gain traction with y-o-y increases in mobile revenue and app usage.

Access Bank’s mobile and internet banking revenue increased by 13 percent to N1.42 billion in September 2018 from N1.25 billion the previous year.

The lender’s revenue from POS was up 25 percent to N139.60 billion in September 2018, from N112.0 billion as at September 2017. Debit/credit card was up 36 percent to N19.47 billion.

•Continues online at www.businessday.ng

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Phillips Consulting partners American management firm for business-focused HR Certifications DANIEL OBI

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hillips Consulting (PCL), an innovator in instructor led and online trainings, says it has entered partnership with Human Capital Growth (HCG) to introduce Evidence Based Specialised and Integrated Global HR Certifications in Nigeria.

“Being the US company’s first entry into the African market, HCG courses highlight the best, up-to-date and most relevant training courses essential to all professionals and companies to meet expected goals and outcomes,” Phillips Consulting said in a statement.

Using science, analytics and empathy, HCG will complement Phillips Consulting’s effort to drive growth and excellence in Nigerian organisations. The partnership will provide evidence-based HR and talent management certifications to the Nigerian market.

In concrete terms, this partnership ensures that existing and aspiring HR professionals have the opportunity to nurture skills and pursue certifications in focus areas such as workforce analytics, change management, leadership development, and integrated talent management, among others.

Paul Ayim, senior partner in charge of Phillips Consulting People Transformation practice, said in the statement, “It is time, for HR to raise the bar beyond HR operations and change the conversation to more strategic businessaligned issues that impact business performance.”

What differentiates HCG certifications from current certifications available in the Nigerian market is that they are hands-on, project-based and backed by deep industry and academic expertise. Rather than focus solely on the administrative and legal aspects of HR practice, these certifications will equip HR professionals with the tools, resources and expertise to make instant and tangible business impact.

Shreya Sarkar-Barney, HCG’s founder-CEO, explained, “Human resource and talent management professionals are increasingly called upon to align the workforce with the business needs and deliver measurable improvements. Our science-based courses and certifications can be readily put to use to deliver results.”

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Federal, states, LGs share N649.19bn in January ISRAEL ODUBOLA

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he Federal Allocation Committee (FAAC) disbursed N649.2 billion to Federal, States and Local Governments in January 2019 from revenue generated in December 2018, according to the public-funded data agency, National Bureau of Statistics (NBS).

Total disbursement in January 2019 was N163.56 billion less than N812.76 billion disbursed to the three tiers of government in December 2018 from the revenue gener-

ated in November 2018.

Revenue realised from the statutory account in January was N547.46 billion, accounting for 84.3 percent in total disbursement. N976.53 million and N100.76 billion were generated from exchange gain difference and valueadded tax (VAT), respectively.

The Federal Government received N270.17 billion from the total disbursement. State and local governments got N170.04 billion and N133.83 billion, respectively. Furthermore, oil-producing states (eight) shared N45.36 billion as 13 percent derivation fund.

The N270.17 allocation of the Federal Government comprised N255.20 billion from statutory account, N460.23 million from exchange gain difference and N14.51 billion from VAT. The further breakdown of the distribution of Federal Government revenue allocation unveiled that N216.57 was disbursed to the consolidated revenue account, N4.81 billion was allocated to derivation and ecology, N2.43 billion as stabilisation fund, N5.82 billion to the Federal Capital Territory (FCT) and N8.15 billion for natural re-

source development.

The composition of the N170.04 billion revenue allocations of the 36 states of the federation showed that N129.44 billion, representing 76.1 percent, came from statutory account. N233.43 million and N48.36 billion were realised from exchange gain difference and VAT. Analysis of the net disbursement to states showed that Delta State (N17.36bn) received the biggest net allocation, followed by AkwaIbom (N14.46bn), Rivers (N12.21bn) and Bayelsa (N10.73bn). Osun (N1.73bn)

had the least net allocation in January 2019.

For the 774 local governments, N99.79 billion from statutory account, N179.97 million from exchange gain difference and N33.86 billion from VAT. Out of the N45.63 billion for 13 percent derivation fund, N45.52 billion was realised from the statutory account and N102.9 million from exchange gain difference. Delta State (N13.74bn) got the largest allocation from 13 percent derivation fund, followed by Akwa-Ibom (N11.05bn) and Bayelsa (N8.28bn).

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8 BUSINESS DAY NEWS JODI Data: Nigeria crude oil exports rise to 1.8mbpd in December DIPO OLADEHINDE

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ata from Joint organisation Data Initiative (JODI), an international group committed to improving the availability and reliability of data on petroleum and natural gas, say Africa biggest oil producing country oil export rose to 1.873 million barrel per day (mbpd) in December 2018.

According to JODI database maintained by the Riyadhbased International Energy Forum, comprising self-reported oil figures from 114 countries, Nigeria‘s oil export rose by 7.6 percent from 1.725mbpd in November to 1.873mbpd while crude oil output rose by 3.9 percent from 1.803bpd in November.

JODI also revealed that Nigeria closing stock grew by 0.175 million barrels to 18.023 million barrels in December.

On Monday, Nigeria’s ministry of petroleum resources spokesman told Bloomberg on phone that Nigeria’s total crude condensate output slipped to 1.66mbpd in January 2019 compare with 1.78mbpd recorded in December 2018.

The spokesman for the ministry told Bloomberg that Nigeria crude condensate output slipped to 2mbpd in January 2019 compared with 2.08mbpd recorded in December 2018.

Also, JODI database revealed Saudi Arabia, the world’s largest crude exporter, shipped 7.687mbpd of crude in December 2018, a 548,000bpd drop from November, when shipments were the highest since November 2016, just before Organisation Petroleum Exporting Countries (OPEC) instituted a production cut deal that began January 2017.

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HIV/AIDS: EDOSACA urges Local C’ttees, NGOs to complement state’s efforts at prevention, management

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do State Agency for the Control of Human Immunodeficiency Virus and Acquired Immunodeficiency Syndrome (HIV/ AIDS) (EDOSACA) has urged Local Action Committee on AIDS (LACAs) across the 18 local government councils and non-governmental organisations (NGOs) to support Governor Godwin Obaseki’s efforts at revving up intervention programmes on prevention and management of the disease across the state.

Executive director, EDOSACA, Flora Oyakhilome, said support from the Obaseki led-administration had provided the agency with “improved access to HIV Testing Services in Edo State.”

Oyakhilome said broadbased support from LACAs and NGOs in the state would complement the governor’s effort at re-positioning the agency to reduce the spread of the disease in rural areas across the state.

The executive director’s call was part of the agency’s recommendations in its Progress Report covering December 2017 – December 2018.

“LACAs and NGOs should work together to strengthen existing structures within communities. The plan is to replicate this strategy in the other senatorial districts and sustain the response,” she said.

On the achievements of the agency within the period under review, she noted that the state government approved funds for Mobile HIV Testing Services across seven locations in Benin City, a move, she said, was targeted at increasing HIV Testing Services (HTS) in the state.

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Tuesday 19 February 2019

BADEA, Sterling Bank sign $65m loan deal ENDURANCE OKAFOR

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he Arab Bank for Economic Development in Africa (BADEA) has extended $65 million (about N23.4bn) credit facilities to Sterling Bank plc of Nigeria. The facilities were granted through two loan agreements signed on Monday in Cairo, Egypt.

Director-general of BADEA, Sidi Ould TAH, signed on behalf of BADEA while Yemi Odubiyi, executive director, corporate and investment banking, signed on behalf of Sterling Bank.

Commenting on the facilities extended to Sterling Bank, Odubiyi said the first facility, which amounts to $15 million, was a line of credit for the financing of private sector projects while the second facility, which

amounts to $50 million, was a line of credit for financing Arab exports to African importers, as part of BADEA’s programme for financing foreign trade.

He thanked the Arab Bank for having confidence in the bank.

According to Odubiyi, the first line of credit would help the bank to finance private sector projects in Nigeria by re-lending its resources to customers. He further explained that within the same context, the two parties also signed a loan agreement to finance a line of credit that would be allocated to trade finance operations.

This second line of credit is aimed at bringing Arab goods and products to Nigeria by re-lending its resources to beneficiaries in the country. This will also help to encourage and promote trade exchanges between Arab

and African countries in addition to defining African markets for Arab products, thereby helping the growth of Arab exports destined for sub-Saharan Africa.

On his part, TAH described the loan signing agreement as the beginning of cooperation between BADEA and Sterling Bank.

He said the cooperation would enhance the role of the private sector in Nigeria’s economic and social development by contributing to the mobilisation of production and service sectors.

This will also aid the creation of job opportunities in support of Nigeria’s budget through tax revenues, which will accelerate economic growth and improve the living standards of the populace.

Sterling Bank is a full service national commercial bank in Nigeria. In more

than 50 years of operations, Sterling Bank (formerly NAL Bank) has evolved from the nation’s pre-eminent investment banking institution to a fully-fledged commercial bank and completed a merger with four other banks – Indo-Nigeria Merchant Bank, Magnum Trust Bank, NBM Bank and Trust Bank of Africa – as part of the 2006 consolidation of the Nigerian banking industry.

The Arab Bank for Economic Development in Africa (BADEA) was established pursuant to the resolution of the 6th Arab Summit Conference in Algiers in November 28, 1973 and it began operations in March 1975. The bank has since inception continued to promote AfroArab cooperation through variety of operational modalities and instruments guided by multi-years strategic plans.

L-R: Maryam Abubakar, commissioner for Budget; Magdalene Ohenhen, commissioner for Women Affairs and Social Development; Betsy Obaseki, Edo State first lady, and Maryann Shaibu, wife of Edo State deputy governor, during a march to protest acts of violence against persons, in Benin City, Edo State.

Reforms: Stakeholders commend Edo’s move to sanitise building, construction industry

Election 2019: Aero, Arik introduce promo to assist voters

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IFEOMA OKEKE

roperty developers and builders in Edo State have applauded steps taken by the state government to rid the building and construction sector of criminally minded persons who go about swindling stakeholders by disguising as government officials.

A cross-section of the stakeholders, in an interview with journalists in Benin City, said steps taken by the state government to rid the sector of impersonators would boost confidence of investors, who were spurred to invest in the state on the back of reforms spearheaded by Governor Godwin Obaseki in land administration,

taxation, among others.

A property developer, Maxwell Orobosa, said the swift response of the Ministry of Physical Planning and Urban Development in moving against persons impersonating officials of the state government was commendable.

He said now that developers had been informed on how to identify these fraudsters, “It will go a long way to improve how things are done, as some stakeholders have in the past fallen victims to the imposters who extort money from them.”

Another stakeholder in the sector, Lewis Osasu, noted that information put out by the state government would guide develop-

ers and builders on how to avoid fraudsters and ensure that they properly pay dues to the right government agency.

Recall that the state government cautioned land developers in the state over antics of individuals and groups who impersonate government officials to defraud land developers, noting that state officials do not demand and collect cash on construction sites.

Commissioner for Physical Planning and Urban Development, Erimona Oye Edorodion, said: “Imposters go about in private unbranded vehicles (cars and buses) to defraud unsuspecting developers of their hard-earned money.”

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igeria’s indigenous commercial airlines, Aero Contractors and Arik Air, have introduced promo fares to help Nigerians who wish to travel to different destination to vote during the elections.

The airlines said this was their own contribution to support Nigeria conduct successful elections and also to encourage the citizens to travel to where they could cast their votes.

To this end, they have decided to cut fares by about 50 percent to support Nigerians to travel without spending so much, they said, adding that this

was an incentive to the citizens to carry out their civic responsibility during the elections.

Aero in a statement said effective February 18, it would commence the sale of tickets from N16,000 for travels between February 21 and 25, on all its routes to encourage Nigerians travel to their various destinations in order to cast their votes.

Aero Contractors flies to Lagos, Abuja, Kano, Port Harcourt, Warri, Asaba, Uyo, and Sokoto. The special fare is only available online and conditions apply.

Also, Adebanji Ola, Arik Air’s spokesperson, said the N16,000 Fly to Vote promotion was to encourage Nigerians travel to their re-

spective wards to cast their votes during the elections.

“The N16,000 promotional fare is the one-way ticket cost to any domestic destination on Arik Air’s network and customers must present a valid Permanent Voters’ Card (PVC) at the point of purchase and at check in to be eligible to fly.

“The Fly to Vote promotion is available for sale from February 18 till March 11, for travel between February 21 and 26 as well as March 7 till March 12.

“We have put this promotional fare in place to ameliorate the effect of the postponement on the travelling public and encourage voter participation,” he said.

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Darker clouds over Europe Dan Steinbock

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taly slipped into recession in the fourth quarter of 2018, according to new data. France continues to be haunted by Yellow vests protests. Germany has entered an era of uncertainty. And Brexit overshadows the UK future.

In the absence of Trump’s tariffs, Europe could have benefited from a nascent recovery of world trade, investment and finance. But now even these hopes are diminishing.

End of expansionary cycle, rise of political fragmentation Historically, four economies – Germany, France, Italy, and the UK – have accounted for much of the region’s growth. Yet, the expansionary cycle has eclipsed in each.

Through the crisis years, the steady leadership of Chancellor Angela Merkel’s Germany supported European integration and migration. However, the Trump administration’s tariff policies cost Merkel nightmares at home and abroad. The uneasy coalition between her center-right CDU and the centerleft SPD has been strained, while the left-leaning Greens and radical right AfD have gained. As a result, the ruling coalition suffered an electoral defeat of the ruling coalition in regional polls. In 2018, German economy grew by 1.5%

and continues to slow.

After his 2016 election win, President Emmanuel Macron was seen as Europe’s new savior, though mainly in the U.S. Yet, as a business-friendly economy minister in Hollande’s government, he had alienated most socialists while failing to win over most conservatives. His movement En Marche! served as a façade for French corporate giants in banking, real estate and finance, which he was quick to reward after the election. As Macron’s tax reforms fell disproportionately on the working and middle classes, the Yellow vests movement spread like a wildfire. In the fourth quarter of 2018, French growth slowed to 0.9%, despite Macron’s €10 billion stimulus package to appease the Yellow Vest protests.

In the early 2010s, UK was among the fastest growing EU economies; today, it is among the slowest. In the three months to last November, it grew only by 0.3%. Almost three years since the Brexit vote, there is little consensus on the terms of the UK-EU divorce, despite the looming March deadline.

Thereafter, UK is likely to face higher tariff and non-tariff trade barriers, reduced foreign investment and lower migration inflows. Relative to a noBrexit scenario, the divorce threatens to penalize UK GDP by 5 to 8%.

In the short-term, the Eurozone’s perceived risk is Italy. Now its economy has slipped into recession, for a third time in a decade. The antipathy against the political ruling class is so immense that the country is governed by a coalition of radical right (Matteo Salvini’s League, LN) and radical left (Luigi di Maio’s Five Star Movement, M5S). The friction with the Eurozone has escalated about Italy’s spending

plans and debt ratio, which now exceeds 132% of GDP. If Brussels takes a harder line that would cause havoc in Italian bond markets, which, in turn, could have contagion effects – which is why Brussels waits anxiously, while Rome refuses to budge.

Monetary and institutional uncertainty Until recently, European Central Bank head Mario Draghi described the Eurozone’s risks as “broadly balanced between better and worse outcomes.”

On January 25, he acknowledged that risks have “moved to the downside.”

Draghi has pledged that the ECB will use all its monetary levers in case the slowdown takes a turn for the worse. Unfortunately, those levers may not be adequate and a new ECB Governor will be elected next November. Theoretically, the lost momentum could be re-captured in a year or two, but that would require a favorable external environment. Thanks to President Trump’s tariffs, worse is likely ahead.

European Central Bank hoped to end quantitative easing (QE) in 2018.

Since interest rates remain at zero, they cannot be further cut, even if conditions deteriorate significantly and normalization is likely to be deferred (Figure). What’s more likely is another round of QE – likely through cheap financing programs– to support growth and infuse liquidity. However, the absence of common institutions will prevent the kind of fiscal adjustment that’s possible in the U.S., Japan, and China.

Uncertainty is not alleviated by the fact that critical institutional shifts loom ahead. In addition to Draghi’s expected departure, the European

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If Brussels takes a harder line that would cause havoc in Italian bond markets, which, in turn, could have contagion effects – which is why Brussels waits anxiously, while Rome refuses to budge

Commission should get a new head in October after Jean-Claude Juncker’s 5-year term. Unless Brexit is significantly delayed in which case Juncker might seek to maintain his position to steer the bloc through the Brexit process.

In May, the election of the European Parliament will be affected by slowing regional economy, migration crises, anti-EU and anti-migration movements. Mainstream right (Christian-Democrats, EPP) and left (Socialists and Democrats, S&D) will continue to shrink, but may still garner 40 to 45% of all seats. Neoconservatives (liberal ALDE) could up their share to more than 10%. The greatest advances are expected among the radical right and the radical left, which together might grab every fourth seat.

Despite erosion, global actor Despite the erosion of the federalists in Brussels, the GDP economy remains highly consequential. The EU GDP exceeds $19 trillion; the Eurozone, $13 trillion. The actions of European multinationals, investors and governments have a critical role in shaping global growth prospects.

An independent European foreign policy, as evidenced by Brussels’ stance toward Iran, nuclear weapons and nation-building, is greatly needed as a peaceful balance in a multipolar world.

Nevertheless, a unified, sovereign Europe needs a political rethink before its economic erosion will spread further.

Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/

Lagos model of enabling the physically challenged

Rasak Musbau

T

hough the Nigerian constitution operates on the principle of rule of law, there is obviously in place a social class system that discriminates against certain members of the society. One of such class of people is the physically challenged, sometimes derogatorily referred to as the disabled. More often than not, if a typical Nigerian comes across a physically challenged, the first impression on his mind is that of a useless and hopeless person.

And he shows this by sometimes arrogantly offering alms. The dearth of baseline information about this social category, especially in developing nations, including Nigeria, usually clouds our knowledge about their potentials (ability in disability).

Indeed, cases abound of discriminations against persons with disability in getting access to public education, medical care and employment. Most offices, shopping malls, banks and other public buildings are erected with little or no consideration for mobility impaired members of the society. Automated Teller Machines, ATMs, in banks are built in such a way that those on wheelchairs cannot access them.

This is in spite of a law, which recognizes

and preaches that all people be treated equally, regardless of their physical state.

Stemming from their inability to access basic facilities, all empirical evidence point to difficulty for the physical challenged to have a sustainable livelihood. Interestingly, at a political rally in January 2015, Lagos State Governor, Mr. Akinwunmi Ambode made a solemn promise to stand by them if elected as governor.

Today, true to his promise, management of People with Disabilities (PWDs) in Lagos state has received tremendous boost consequent of initiatives and empowerment programmes put in place by the government to improve the socioeconomic status of PWDs residing in the State.

The government has steadily employed and institutionalized empowerment strategies which have no doubt expanded the prospects of persons with disabilities in the State and expectedly changing the established perception or narrative of people seeing them as beggars to those with skills and attitude to become wealth creators.

The State, having identified challenges faced by this special people, crucially backed its intention with laudable initiatives such as ‘Ability Expo’, ‘N500 million Disability Trust Fund’, ‘free ride on Bus Rapid Transit (BRT) and LAGBUS buses’ among others to give PWDs sense of belongings. The process of integrating PWDs into social investment net actually started with the creation of Lagos State Office for Disability Affairs (LASODA) which co-ordinates the education, social development, welfare and inclusion in of People Living with Disability in governance.

Also, in its bold bid to showcase its inclusive social development credentials, LASODA initiated ‘Ability Expo’ as an annual event through which PWDs who are into various enterprises,

especially those that produce goods and services, are given the opportunity to showcase their businesses to the world. Also, individuals, groups, institutions and other stakeholders whose line of businesses are disability-concern related are allowed to participate in the special exhibition.

Majority of PWDs in business are into small scale businesses and lack means of letting the people know what they do or sell because of lack of funds to embark on advertisement in the media and participating in some popular exhibitions. Hence, the “Ability Expo”, as an exhibition, bridges the gap for people with disability in the State, as people come to see what they have to offer and also patronize them through purchases.

As a matter of fact, all MDAs are duty-bound to reserve specific quota for PWDs in any programme they may wish to embark upon for the benefit of the public.

In order to sustain on-going efforts to improve the lots of PWDs in the state, the state government recently recorded yet another landmark feat with the granting financial incentives and assistive devices distributed to clusters of PWDs in the state. This took place at an event held on February 12th, 2019 at the Blue Roof, LTV 8, Agidingbi, Ikeja, tagged ‘The Official Presentation of Assistive Devices and Empowerment Grants to Persons Living with Disability in Lagos State’.

The devises were distributed and a wide ranging sum of money given out to different clusters that include Joint Association of Persons living with disabilities, National Association of persons with physical disability (Lagos Chapter), Lagos State Association of the deaf, National Association of the blind, Association of parents of children living with intellectual disability, Spinal cord injuries association of Nigeria (NS-

CIAN), Lagos Chapter, The Dwarf Association of Nigeria, Lagos State Chapter and Lagos State Albinism Society.

The import of this particular enabling project should not be lost on all of us. If our truly desirous of ridding beggars from our highways and streets across the nation, this is really the way to go. A New York Times bestselling author, Richard Paul Evans, once said”: “Broken vows are like broken mirrors. On the other hand, a vow kept is a prized mirror. It radiates happiness and satisfaction in people.

Testimonies and mood of the participants especially persons with disabilities at the Blue Roof event say it all.

It could be recalled that in 2017 LASODA Governing Board organized entrepreneurial and empowerment programme through which 500 PWDs were given one hundred thousand naira each as non-repayable financial grants for various small scale businesses. Also, PWDs that are interested in skill acquisition were provided with opportunity to learn various vocations at workshops organized by LASODA. So what happened recently is not a mere event but a sustainable project.

It is in this light discerning minds will expect corporate bodies to hearken to the call of the government for collaboration to boost this renewed effort towards making life more meaningful for People Living with Disability. Though government has a responsibility to ensure a good living standard for its people, individuals, groups and private organizations, no doubt, also have a duty to help the vulnerable ones in the society.

Musbau is of Features Unit, Lagos State Ministry of Information and Strategy, Alausa, Ikeja

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Who are those to be elected to serve Nigerians?

STRATEGY & POLICY

MA JOHNSON

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ithout bias, if one was privileged to rate our political leaders from 1999 to 2019 using factors such as leadership, economy, technology, power supply, education, health, roads, security and corruption- the scores will not be inspiring. Poor governance occasioned by weak leadership is responsible for the lackluster performance of successive governments. Let’s be honest with ourselves, a nation of almost 200 million people cannot continue to walk leisurely along the pathway of development without committed leaders who are willing to take the country to the Promised Land.

Buhari, Atiku and other presidential candidates, as well as National Assembly (NASS) aspirants, have been presented by their political parties to Nigerians for elections. Nigerians will, in less than a week, decide the fate of Buhari, Atiku and others seeking election into political offices at the federal executive and legislative arms of government. I hope the electorate would vote wisely in a way that Nigeria wins. Nigeria wins only if committed political leaders with “proven track record of success” are elected, and there is peace throughout the country after elections. Those not elected should accept defeat

gracefully and move on with life.

And if they have any petition on electoral matters, election tribunal of appropriate jurisdiction should be approached to seek justice. Politics should not be a do-or-die affair.

Who are those to be elected by Nigerians to serve almost 200 million people? Is it Buhari or Atiku? Or are all elected federal lawmakers preferred choices of the people? Will the newly elected political leaders have the grace to deliver about 100 million Nigerians from the shackles of poverty? I do think that those to be elected have been blessed with the grace to lead. It’s all about leadership. I really mean it- quality leadership, not the cosmetic type.

Frankly, the development of any nation does not only depend on economic growth alone, it is also a function of the quality of leadership in all strata of the society. As a concerned citizen who is bothered about the quality of leadership in our country, I posted a contribution in the Harvard Business Review recently preparatory to the general elections to confirm whether leaders are born or made.

Within three weeks, almost three hundred comments emerged across the globe with very thought-provoking and illuminating comments. Some of the commentators are of the view that leaders are born, while others believe that leaders are made. There are those who believe that unless leaders are born they cannot be made. Individually or collectively, we are all eligible to express our views on the leadership question in Nigeria.

Culture plays a significant role in the ways leaders emerge in any society. Until we redefine our culture as a people, the chances are high that those that will be voted into office in 2019 will have same values as those

that will vacate office. Due to inherent weakness in democracy, we must work hard to have a culture that can drive democracy. We must develop a culture of building strong institutions and adherence to the rule of law. If we don’t have this culture and we allow our political leaders to emerge through intrigues and mischief, then the nation is on its way to Armageddon. Why? Although, democracy confers the power on the people to choose a leader or leaders of their choice, it is a “rigged game” as long as it endures. It is a “rigged game” because right from the party levelnomination of candidates for elective posts at local, state, and federal levels- have been fixed in a cloudy manner to guarantee a desired outcome. The winner is predetermined in most cases beforehand, and that is why the risk of violence is increased during electioneering. With strong institutions and rule of law, a country can overcome some of the inherent challenges of democracy. Otherwise, when political leaders emerge through intrigues and mischief the country they lead pays the ultimate price for such an anomaly.

Leadership is not about popularity, it is about taking responsibility.

Political leadership at all levels of government is about delivering service to the people and prudent management of resources. It is about the well-being of the people. When Nigerians talk of change what do they mean? They mean change in leadership motivated by choice and desire for a prosperous and economically developed nation. While continuity in leadership is not that forced on the people, but earned through strategic, bold and well thought out vision for the country.

The choice for change or conti-

‘

We must develop a culture of building strong institutions and adherence to the rule of law

nuity of political leadership belongs to the people. Most Nigerian leaders have often claimed to be pragmatic and committed in a bid to conceal their inadequacies. But their pragmatism and commitment only epitomize disappointment, consent to underdevelopment and the status quo, a recognition that nothing else is possible and an indulgence in failure. Using Plato’s metaphor of the metal in which men are categorized as gold, silver and lead, most of those who have led or aspiring to leadership positions in Nigeria would indisputably be lead of the lowest possible grade available within the country. In our clime, outsourcing of leadership positions and responsibilities to subordinates who are inept is common in public offices.

One hopes that the experience of the electorate occasioned by poverty in the midst of plenty will enable it determine which direction the pendulum of voting will swing in this year’s elections.

It should be noted that the political arena needs either a change or continuity in leadership in this year’s elections.

Those who are professionals in fabricating leaders through intrigues and mischief should desist from doing so. Nigerians must be given the opportunity to have either a change or continuity in leadership which is an expression of their collective will.

Nigeria is greater than any individual or groups of people, and thus, those singing anarchic and treasonable songs should desist urgently.

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

Fellow Nigerians, happy postponement Harrison Mmerenu

T

he decision of the Independent National Electoral Commission (INEC) to postpone the election was received with what many Nigerian politicians would call a ‘rude shock’. Over three years to prepare, with billions of naira to execute the project, yet the project manager, Prof Mahmood Yakubu failed to deliver.

This has once again put Nigeria on the global spotlight for the wrong reasons. In the face of both local and international observers, we have passed the message once again that we cannot succeed at the most basic demands of democracy: prepare, plan and execute a free and fair election every four years, even if the leaders end up not having a clue about what the offices demand.

As if the postponement is not enough affront on the sensibilities of the common man, the INEC chairman displayed further disdain for the men and women he was called to serve when he began to have a debate on the right adjectives to apologize for his failure. What is wrong with Nigerian public servants and their puffed egos each time they are called to serve?

Prof Mahmood Yakubu who waited until the morning of the election before realizing he couldn’t deliver should be upfront with Nigerians with both explanations and apolo-

gies instead of the drab expression of regrets for inconveniences, a peculiar Nigerian phrase when no one, in particular, wants to take responsibility for organizational inefficiencies.

In this case, millions of Nigerians had travelled from home and abroad to their polling units in order to express their franchise. The economy was also shut down for the elections. Nigerian graduates serving as ad-hoc staff were under harsh climate, unsheltered by INEC, exposed to the worst kind of dangers that roam the streets of Nigeria, yet all they get is regret for inconveniences. Public servants should be capable of taking responsibilities for failures such as this.

Should INEC have gone ahead to hold the elections when it was facing grave challenges?

Definitely no. But we could have been saved this embarrassment if the commission had called for a postponement earlier so that those Nigerians on the margins of existence who made the last minute long ride from different parts of the country would have stayed back.

So that voter’s apathy that this postponement will further fuel would not have been. Nigerians travelled across regions to cast their votes because of their belief that something good could come out of this electoral commission, and their disappointment at the postponed elections can only be imagined.

As usual, the suspect for all the inefficiencies Nigeria has ever displayed is Mr. Logistics.

Prof Yakubu has also revealed that logistical challenges forced the commission to take the last minute decision to postpone the election,

but this in itself raises many issues. As at the time of the postponement, many states had already received their electoral materials.

Now, the commission had quickly taken steps to withdraw them back to their safe houses with the Central Bank of Nigeria. The question here is what is the guarantee that these materials have not been tampered with? This is Nigeria (apologies to Falz), and we are aware of the desperation that is attached to elections in the country.

Therefore, is there any measure put in place to forestall those who are into the business of procuring result sheets so that they could fill it up with non-existent vote numbers. Because if this postponement has any gains for election manipulators it is the power it gives them to tamper with sensitive materials that have already been deployed. Can the commission, therefore, guarantee the sanctity of ballots and other materials so that we won’t wake up to news of missing ballots in different polling units on February 23?

Again, for the states where the commission faced its greatest logistics challenges, what measures is it taking to ensure that next week, two weeks after and in 2023 elections, there will be no repeat of same excuses. For it is sad that Nigeria is always going about each election like it is our first shot at democracy, or like we have acquired new territories that are difficult to predict. Elections, however imperfect, have been conducted in 1999, 2003, 2007, 2011, and 2015. The commission should know

the seasons and terrains of each state well by now and how best to deliver sensitive electoral materials in time for voting. This attempt to hide mediocrity with the veil of unforeseen circumstances is totally unacceptable, except we are not being properly briefed about what is truly going on.

The postponement is a complete shame that should never repeat itself. As for those defending the latest postponement by citing previous elections that were also postponed, I will like to say it is totally disingenuous to defend this with past inefficiencies. It only means that we do not expect Nigeria to move forward. We are in other words saying to INEC it is okay to postpone the 2023 elections as well and the 2027 elections and the elections that come after them. Where then is the room for progress if as a nation we cannot effectively plan and expect to execute our plans without avoidable hitches?

It is also a shame that no one will be resigning for the costs of the postponement, the same way we will sleep and forget the costs of the postponement (that is of course if we will ever know the full costs of the postponement).

But while these issues keep nagging at our collective psyche, I can only say to Nigerians what an old lady said to me as I tried to jog on the morning of the postponed elections: ‘happy postponement.’

Harrison Mmerenu lives in Lagos. He tweets @coolharris5

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Nigeria: Views of foreign investors ahead of polls Rafiq Raji

C

rucial presidential election in February has elicited mixed reactions about the economic and political outlook of Nigeria. President Muhammadu Buhari is seeking a second four-year term. His main challenger, Atiku Abubakar, is the country’s former vice-president.

Mr Buhari’s strong points are his anti-corruption war and the strides his administration is recording in building much-needed infrastructure. Mr Atiku has presented himself as a genial pro-business candidate.

Because both candidates have a huge followership and strong political structures, the election is widely expected to be hard-fought and results likely tight.

Concerns grow Thus, there are concerns that the polls might not be free and fair. These are not unfounded. The opposition complains about harassment and intimidation by the state. This sentiment is probably not unconnected to the corruption charges some of their members are currently fighting in the courts.

Mr Buhari insists there is nothing to be worried about, vowing the elections would be free and fair. And that he would accept the results, even if he does not win. Still, recent actions by his government have heightened fears about whether that would really be the case.

A familial connection has been established between the president and Amina Zakari, a commissioner at the electoral commission, for instance.

And in January, Walter Onnoghen, Nigeria’s chief justice, was slammed with corruption charges. Coming just one month to the polls, especially as the judiciary could determine who is declared winner of the likely tight presidential poll, quite a number of people are wary.

Idayat Hassan, director of the Centre for Democracy and Development, an Abuja-based think-tank, says she has “doubts [about whether the] two dominant political parties involved and [the] security [agencies] are interested in credible elections [as] the political actors are demonstrating unrestrained desperation to win…at all cost.” She believes “there is a high likelihood that the elections will end up in court…as both parties believe they will emerge winners”.

Not worried In light of these developments, there is the perception that foreign investors are concerned about whether the polls would be free and fair as well.

And what that could mean for the country’s markets and economy this year. But instead of assuming, why not simply ask those who should know?

New African asked Charles Robertson, global chief economist and head of macro strategy at Renaissance Capital, an investment bank focused on emerging markets, about what investors were telling him. “They are relaxed about the election,” says Robertson. His feedback is corroborated

by Malte Liewerscheidt, vice president at Teneo, a global risk consultancy.

“Investor sentiment is somewhat indifferent”, says Liewerscheidt.

These views are surprising. So why is the election not a key concern for foreign investors like would ordinarily be assumed? Teneo’s Liewerscheidt says “overall, few investors expect much to change, regardless of who wins the general election, [hence why] interest in the polls is muted.”

If foreign investors are not worried about the elections, why are they not putting their money where their mouths are then? Some foreign portfolio investors have reportedly been doing some quick trades in the markets as late as January. But flows have not nearly been as much as they used to be.

That is, even before the elections became increasingly imminent.

Returns from local equities have not been encouraging, though; albeit this has also been the case globally. In response, Renaissance Capital’s Robertson says “[they] are deterred from investing in Nigeria due to the low oil price and uncertainty on FX [foreign exchange] policy after the election.”

Growth expected to pick up In its 2019 economic outlook, the African Development Bank (AfDB)

‘

…overall, few investors expect much to change, regardless of who wins the general election, [hence why] interest in the polls is muted

says “the slide in oil prices from late 2018 coupled with an output cut imposed by the Organisation of Petroleum Exporting Countries (OPEC) poses a downside risk to [Nigeria’s] economic outlook.” It also sees the “parliament’s approval of the 8.83 trillion naira 2019 ‘budget of continuity’ [being] delayed due to [the] presidential elections”.

In any case, economic growth projections for the year are quite decent.

From the World Bank, International Monetary Fund to the AfDB, the expectation is that Nigeria would grow by at least 2 percent in 2019, from likely lower than that level in the previous year. So, what could be responsible for the improvement?

Mark Bohlund, Africa economist at Bloomberg Economics, tells New African that “Nigeria’s economy will probably accelerate in 1H19 [January-June, 2019], fueled by increased spending connnected to parliamentary and presidential elections in February.” In other words, he sees the upcoming elections driving growth to some extent. However, Bloomberg’s Bohlund sees “that acceleration [likely tapering] off over the year as the new government aims to improve longerterm fiscal sustainability.”

• An edited version was published by New African magazine in February 2019 “Dr Raji is chief economist at Macroafricaintel.

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

The workplace of the future: Emergence of a new culture

Austin Okere

A

s the workplace is becoming more millennial, a new cultural trend is emerging that challenges the traditional ethos that has held sway since the days of Adam Smith.

The Enterprise as we have hitherto known, is defined by her purpose, values, culture and vision. These are essentially the reason d’être and form the basis of the tradition of the company.

As the company is not able to direct her own affairs, this function is entrusted by the promoters of the business, being the Shareholders to Custodians, being Directors, who in turn appoint Managers to run the daily affairs of the company. Let us call this group the custodians of the business.

Typically, they know no other work, pledging their full working time and allegiance to the enterprise by whom they are employed and paid. They are your typical company man.

As more millennials are becoming working age adults, we are beginning to see a strong shift in this trend, that threatens to fundamentally change the structure of the enterprise as we know it today. To start with, Millennials are not wont to seeking employment in a company, preferring rather to become entrepreneurs in charge of their own affairs, notwithstanding that they may not have the mechanism and full complement of resources that we would have deemed necessary to embark on such a venture yesteryears.

They are typically a one-man enterprise selling slices of time and talent; or a few friends coming together to offer their skills to anyone who wants them for a project, and moving onto other projects, possibly with other companies. They do not want to be an integrated part of any company, nor be bound by any restrictions of time and space.

They typically work from home, parents garage or coffee shop. They tend to be very good at their niche, aided by the ubiquity of technology and their deep command of it. They do not want to clock hours at work but rather to be paid on the outcome of their deliverables. Let us call these the enablers.

Today’s workplace is beginning to divide into custodians; typically, Baby Boomers and enablers; typically, millennials. A recent survey shows that I conducted on LinkedIn shows that even within the custodian’s there is a growing tension about whether they have a right embark on their own side businesses (if it does not conflict with that

of the company); the argument being that it enhances creativity and entrepreneurial acumen. They also claim that it is very widespread, albeit undercover, and that it is about time it came out into the open within an appropriate governance structure. There is also the question of whether they need to commute all the way in traffic to the workplaces and face the same traffic going home; or they could work from home and deliver the output of their jobs much the same way as the millennials tend to do.

There is also a growing tension about the intrusion into their free time, upsetting their work-life balance, by technology enabled mechanisms which keep them always “switched on”, such as Emails, Text Messages, and even Calls on their mobile phones, consistently beeping even during the weekends and holidays. This was not a problem during the days of the landlines and fax machines. They argue that even if they are not required to respond immediately, it changes their entire mood during their free time with their families and thereby accelerate their burnout rate.

Technology has always had a doubleedged sword in organizational relationships.

Technology could be a bridge or a barrier, depending on how it is used in the Firm.

Technology enables connections but does not necessarily enhance relationships. Relationship is key, because relationship is influence, and influence is leadership .A recent study on social media showed that of 130 Facebook Friends, a millennial could

only rely on three. It is troubling that our millennials, who are used to breaking up relationships with a mere text message, are going to be the workforce of tomorrow. The impact is that while they may think they have connections, what they really have are weak relationships; especially if each is working from his own space outside the office. This could inadvertently accentuate the undesired “silo-effect” In organizations. One face to face encounter is often better and more effective than 100 emails, especially when the issue at hand is delicate. It is very difficult to feel connected to a sense of purpose or to our colleagues, or indeed feel a part of the organization if we over-rely on technology for communication.

The bigger challenge is whether we will have enough custodians in the future to uphold the sustainability of the Enterprise, or whether the future of the company as we know it today is in peril. I believe we should be more deliberate about engaging and shaping these trends, than bury our heads in the sand, hoping it will all blow away somehow.

It will be interesting to share your thoughts.

Austin Okere is the Founder of CWG Plc, the largest ICT Company on the Nigerian Stock Exchange & Entrepreneur in Residence at CBS, New York. Austin also serves on the Advisory Board of the Global Business School Network, and on the World Economic Forum Global Agenda Council on Innovation and Intrapreneurship. Austin now runs the Ausso Leadership Academy focused on Business and Entrepreneurial Mentorship

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Tangled web and costs of postponed elections

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itizens received with shock news of the postponement of the Presidential and National Assembly elections six hours to their commencement on February 16, 2019. It was a shocker from the Independent National Electoral Commission and came 48 hours after both the body and the President assured of readiness for the polls. It has imposed huge costs on citizens and the nation. It is unacceptable and inexcusable.

There are many dimensions to the costs the avoidable action has caused the nation. The first is one of trust and credibility. This action further erodes the trust people have in institutions of government and in their country. It is particularly so because of the antecedents of making solemn promises and statements that turned out to be falsehoods.

There is the dimension of the inconvenience and financial costs to citizens who travelled across the land to ensure they participate in the process.

It also extends to persons who mobilised for duty, as electoral observers, journalists, monitors, and civic groups interested in the process. Of this group, some came from outside

the country on defined budgets.

There is the matter of the psyche of young ones withdrawn from schools back home in the firm assurance that their country would commence the election process on February 16.

At such impressionable ages, we are telling them not to believe the words of authority. What a foundation of infamy to lay for such persons.

Many small businesses closed shop for the day. Some of those businesses depend on the income they earn on daily bases with little buffers. It is unfair to ask them to lose revenue of two days in as many weeks. Parents withdrew children from schools and other learning centres. Many big businesses also closed down or provided logistics to account for the loss of business during the weekend of February 16-17. Now, without planning and for no fault of theirs, Nigeria expects them to accommodate the losses.

Professor Mahmood Yakubu, INEC Chairman, said in a statement that the Commission decided to shift to February 23 and March 9 because of challenges with logistics. He stated, “The Independent National Electoral Commission (INEC) met on Friday, 15th of February 2019 and reviewed its preparations for the 2019 General Elections

scheduled for Saturday, 16” February 2019 and Saturday, 2nd March 2019. Following a careful review of the implementation of its logistics and operational plan and the determination to conduct free, fair and credible elections, the Commission came to the conclusion that proceeding with the elections as scheduled is no longer feasible.This was a difficult decision for the Commission to take, but necessary for the successful delivery of the elections and the consolidation of our democracy.”

It is cold comfort that INEC has postponed elections in the past. The fact of such postponements in the past is indeed why it should not happen in 2019. There is institutional memory. There are reviews and scenarios in project planning and management.

The lessons of the past should have been a guide.

There is the matter of etiquette and civility. The INEC statement had no admission of responsibility and empathy for citizens. It failed to apologise for the severe inconvenience its failure caused.

The serial failure of INEC in managing logistics should bother professionals in supply chain management in the country. It should disturb Nigerian managers across fields. We cannot continue to fail in simple mat-

ters such as this at a time when our institutions, from the banking system to WAEC and NECO, conduct nationwide transactions daily with ease.

Consequence management is another area of concern. Who takes responsibility for this failure that has cost so much pain, discomfort and loss of reputation to the country? In proper organisations and societies, there would be consequences.

Someone or number of persons would take responsibility and do the needful by taking a punishment for this gross failure. Note that the failure is not even as sad as the deliberate deceitfulness up to 48 hours before the call.

That deceit engendered false confidence that made citizens commit resources of money, time and materials towards participation.

General Elections 2019 is providing opportunity for reflection on Nigeria in several areas. One of these is the role and conduct of professionals and the middle classes. Professional associations representing various middle-class groups in the country should avoid partisan finger pointing and begin to articulate a framework of values and actions that would get Nigeria out of these kinds of situation. Enough is enough.

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trails clamp down on opposition Media agencies expect business Criticism party posters, APCON claims neutrality bounce-back after elections

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Stories by Daniel Obi Media Business Editor

T

here is high expectation of business bounce back among marketing communication practitioners as the tensed presidential election ends.

Most business activities, especially those around brand promotions were allegedly suspended by companies due to the elections.

“The brand owners believe that the election wave will likely overshadow their products and campaigns”, said a PR manager based in Lagos. Other investors had also put investment decision on hold due to suspected uncertainty from the presidential elections.

From late last year, investors and traders both foreigners and Nigerians started expressing concerns about the political risks associated with 2019 elections. The concerns are informed by Nigeria’s historical violence record after elections.

Bolaji Abimbola, CEO of Indigo, a marketing communication agency said operators are expecting a business boom after elections. He agreed that there was slow down of activities in the business circle but

not much compared to 2015. According to him, business managers used the period of elections to plan for the year as he expects a better second quarter.

Stocks listed on the Nigerian Stock Exchange (NSE) fell the most in dollar terms when compared with global peers in the last four years, according BusinessDay report quoting Bloomberg data.

“Almost four years into Buhari rule, Nigerian stocks are down 49.55 percent after the close of business Friday at the Lagos bourse, while those in the frontier markets shed 5.93 percent over the same period.

“However, emerging-market

stocks have since then gained 2.63 percent, while those trading in the developed markets surged 12.79 percent” “A loss of 17.81 percent in 2018 meant the Nigerian stocks have endured their worst year since 2009 after CNN Money ranked the domestic bourse as the best performing in Africa and the third best in the world a year earlier”, the report said.

Marketing communication practitioners who spoke to BusinessDay said they are expecting business bounce back after the election jitters but this will largely depend on the actions put in place by the President.

Glo showcases strength, gets endorsement from World Heavyweight Champion

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orld heavyweight boxing champion, Anthony Oluwafemi Joshua, has in Globacom’s new television commercial endorsed the communication network, citing its reach and speed.

He described the network as his reliable partner.

“I respect the ownership and management of Globacom and as a Nigerian, I believe charity

must begin from home. “I believe in Glo,” he said in the commercial.

The values Anthony Joshua and Globacom shared: “We have the fastest speed, longest reach and the Nigerian fighting spirit as game changers. Glo, I hail o!” says Joshua Since his emergence on the world boxing scene, Heavyweight Champion, Anthony Oluwafemi Olaseni Joshua, has attracted a lot of scrutiny from Nigerians trying to establish if he had any attachment to his roots, Nigeria. Such lingering doubts have been laid to rest with the new TVC. The bricklayer-turned boxing Champion in the commercial revealed the parallels between him and Glo. Some of these include the never-say-die, can-do spirit of Globacom which undergirds and constitutes the philosophy of the telecommunications giant is shared by the Champ who says in the TVC, “You need strength?”

Yeah, that comes from the hard knocks that life throws at us. And we are Nigerians, we know all about that”.

He went on to compare life’s challenges with boxing, saying, “it’s like when we are up against the rope. You don’t stay

down, you’ve got to fight. You have to dig deep to be a world champion”.

Trumping his Nigerianness, Joshua announces: “there’s always been a big piece of my heart as a Nigerian, and I do believe that it is that piece that sets me apart. It always says to me, ‘never give up, dream big! We come from a nation of warriors and that is why I believe in Glo.We have that same tenacity, that Nigerian fighting spirit that makes us game changers! We are relentless. We don’t just face our challenges, we step into the ring to win again and again and again. If you believe in yourself, there is no limit to what you can achieve. Yeah, I used to be a bricklayer in England but now I am heavyweight champion of the world!”

Globacom’s endorsement contract with Joshua covers Nigeria and Ghana.

Joshua holds four major world championship belts, namely International Boxing Federation (IBF) title, World Boxing Association (WBA) title, World Boxing Organisation (WBO) title, and International Boxing Organisation (IBO) title which he won between 2016 and 2018.

ith plethora of political posters and banners pasted on walls and objects around the country, some identified posters belonging to the opposition party, PDP are seen marked for removal by Advertising Practitioners Council of Nigeria, APCON, Nigerian regulatory agency on advertisement.

While political party candidates are pasting posters and mounting billboards almost at every corner, a particular billboard belonging to PDP candidates in Lagos was identified as being marked for removal

by APCON. This action by APCON has since stirred criticism that the agency is taking sides in the general elections in favour of the ruling party.

But in a swift reaction to the allegation that its clamp down on some campaign billboards and posters of some political parties were targeted at opposition, APCON said it is neutral in

its enforcement of regulations regarding the election materials Reacting to this allegation, citing a recent report aired on the African Independent Television (AIT) network, the Acting Registrar of the Council, Ijedi Iyoha, vehemently denied the insinuation of partisanship in the conduct of the agency’s enforcements.

She stated that all the billboards and posters blanked out did not meet the pre-exposure vetting requirements of the Council, and not because they belonged to the opposition parties. She stressed that the boards on which enforcements were carried out cut across parties.

For the avoidance of doubt, she added that APCON requires political parties and their candidates to forward their advertisements for pre-exposure vetting. Iyoha emphasised that political advertisements were being vetted to promote sanity and peace of the democratic process.

Competition: StarTimes reduces decoder, antenna price; increases local news channels

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tarTimes has reduced the prices of its decoder and antenna for new subscribers willing to purchase them until March 31. This is as competition in the pay TV market intensifies as service providers offers promotions to attract and retain subscribers.

The Pay T V company announced the decoder and antenna price reduction from N10,500 to N7,500 for its DTT(Antenna) and N9,500 to N6,500 for its SD decoder. The HD decoder now sells for N7,500 while a combination of HD Decoder and Antenna sells for N8,900, a more than 30% reduction.

The company’s Public Relation Manager, Kunmi Balogun in a statement said “StarTimes is the top destination for news coverage dur-

ing this season. We now have a lot more news channels. We recently added PlusTV Africa to our news channels while the existing ones such as TVC, Channels and NTA News 24 remain.

We place great priority on the quality of our content as we continue to evolve, adding more of local channels that our subscribers have found engaging and all-round entertaining and irresistible over time” He said.

StarTimes is a foremost digitalTV operator in Africa and according to brand managers, it covers 80% of the continent’s population with a massive distribution network of over 200 brand halls, 3,000 convenience stores and 5,000 distributors.

It owns a featured content platform, with 440 authorized channels.

Capri-Sun introduces new 100ml pouch size

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t a retail price of N50, Capri-Sun, the favourite fruit drink of children in Nigeria, has been introduced in a new 100ml pouch size in order to meet an increasing consumer demand for more exciting and unique options. The new pouch size is an addition to excite consumers with the goodness of Capri-Sun, but more importantly, to give them the power of choice.

Still with the same delightful signature taste and playful pouch, the Capri-Sun 100ml pouch is said to be handy, pocket-friendly and keeps to the brand’s promise of ensuring a taste of fun in every pouch.

“Consumers will enjoy the variety of options, ease and convenience in the 100ml pouch, as well as its healthy, naturally tasty and satisfying experience that promotes an

atmosphere of fun and adventure”, a statement said.

The introduction of the new 100ml pouch size is in keeping with current trends, and it is based on a richer understanding of consumer desires to enjoy handy, affordable, convenient and unique Capri-Sun experience in exciting options “For now, only available in Orange and Apple variants, the launch presents a key advantage to drive value and excitement into the category by offering an appealing product option in line with consumer expectations”.

According to Deepanjan Roy, Managing Director of Chi Limited, in the statement, the Capri-Sun 100ml pouch size is uniquely designed in response to consumer demands.

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TVC News is re-engineering to be different in broadcasting industry - Hanlon Recently, TVC News, a member of TVC Communications, launched a brand-new high definition news studio, as part of a substantial ongoing investment plan aimed at growing the TVC Group of Companies into one of Nigeria’s leading media organizations. The new studio, in addition to a sizeable team of journalists, producers and the latest mobile satellite technology, spread throughout Nigeria, will enable the organization attain its goal of being First With Breaking News. Chief Executive Officer, TVC Communications, Andrew Hanlon, provides more insight on the company’s growth plans Congratulations on your relaunch initiative. We understand it is a total package. Can you tell us what you have set out to achieve with this move? he changes we are introducing at T VC News are about more than just aesthetics and marketing positioning statements, the changes go to the very core of the radical transformation which we have embarked upon since TVC Communications was born in 2017.

Remember what we set out to do back then; we said we would change our products and services to become one of Nigeria’s leading media companies, whose focus would be 100% directed at audiences and advertisers - to offer TV, radio and online services which would have mass appeal in a marketplace which is cluttered with domestic and foreign competitors, all fighting for the same eyes and ears and advertiser budgets.

But to do that, you have to offer something different, something which is attractive to a sophisticated audience and something which literally stands out from the crowd.

If you get that right, then you attract substantial multi-platform audience volumes, and this, of course, is what advertisers want.

In short; if we don’t have a quality radio and TV offering which has a unique point of difference – then we are irrelevant, and that is something we are not prepared to be.

Looking at your new tagline, what factors underscore your messaging, considering that you hitherto aspired to be the “first Pan-African news agency”?

TVC News has been a real innovator in Nigeria and it took real courage and commitment to launch the service several years ago, something we are very proud of to this day. The service has a real purpose in its short existence to the social and political fabric of Nigeria, but now the time has come for the second part of our evolution. Our positioning statement of being First with Breaking News isn’t just a tagline, it is a major promise to our audience that TVC News will be the channel you come to as big stories unfold anywhere in Nigeria. To fulfill that commitment, you must be capable of mobilizing correspondent’s and technical teams anywhere, anytime in this vast country, within a very short space of time to get

T

Andrew Hanlon

the story on air – and that’s what separates TVC News from other news networks. We have invested millions of dollars in live satellite technology and in our people– which we have based right around the country, thus enabling us to broadcast live anywhere at any time which means we are First for Breaking News.

We understand you brought in new equipment and facilities.

‘

We believe that the best way to get ahead is to continually connect and listen to our customers (audience and advertisers) through research, data and engagement, and give them what they want and continually try to improve upon it – that is the journey we are right now, but we are still only at the beginning of the road

What specifically are these and how will they impact on your operations?

We have just outlined the investment in our people and portable satellite technology which we have dispersed throughout Nigeria, and which enables us to broadcast live, anywhere, anytime.

In addition to that we understand and appreciate that Nigerians expect to be visually engaged by the aesthetic look and feel of a channel. So we have also just purpose built a new state-of-the-art high definition TV studio.

In the media and communication space, we often hear the maxim – content is everything.

Are we looking at seeing fresh content and presentation styles, and maybe new anchors/presenters?

The freshness of our content will be driven by our ability to be First With Breaking News – that is our maxim, but being balanced and accurate is also crucially important to us and our viewers. We have excellent, highly experienced news anchors who will be the faces of the new TVC News, but they will be seen in a totally different and dynamic environment which we believe viewers will find very appealing.

Are there new market segments which were hitherto underserved and which you believe would be captured now with your rebranding effort?

In the short number of years that TVC News has been on air we

have only scratched the surface of what is possible in respect of mass audience appeal and greater support from our friends in the advertising market – so we are very serious about creating much greater awareness of TVC News.

Unquestionably, news channels tend to attract slightly more men than women, but we also believe viewers are ready and are open to something that they deem more relevant to their tastes and interests.

In your conceptualization and execution, did you ever give some thought to the saying, Failure is an Option? In asking this question, we have DAARSAT, HiTV and COMSAT in mind.

We are in the business of broadcasting and we do not invest in anything which doesn’t become successful or does not produce a return for us and our shareholders.

Before we make an investment, we study the market dynamics, the audience data, identify opportunities, we listen to what viewers and advertisers are saying through market research and then we look at that against the investment required to come up with a business model which works.

We can’t predict the future, but we can use our collective knowledge, experience and expertise to produce a winning formula for the business. We don’t pursue projects if we don’t believe we can succeed!

Inadequate power supply in Nigeria is a major challenge, how are you dealing with this condition?

As part of our investment programme for TVC Communications we have invested substantial sums to help us overcome the obstacles which so many businesses endure with an unreliable power supply.

Like so many others in Nigeria, we were forced to examine different power sources, stability and continuity of supply, cost per unit, pollution impact and a range of other matters. We believe we made huge strides in this area having achieved radical reductions in diesel consumption and running costs.

With large buildings, a big campus with over 400 staff and substantial amounts of technical equipment to run 24 hours a day in need of constant cooling, our power requirements are substantial and costly but hopefully now we will reap the benefits of our energy investment strategy.

We have so much more to do in this challenging area and we will

always try to find new and more cost-effective ways to reduce our energy costs and our impact on the environment.

What competitive edge do you think TVC News brings to the market place?

The most competitive edge you can have in any business is to never assume you know everything and that you have all the answers!

We believe that the best way to get ahead is to continually connect and listen to our customers (audience and advertisers) through research, data and engagement, and give them what they want and continually try to improve upon it – that is the journey we are right now, but we are still only at the beginning of the road.

The uniqueness of TVC News will be its ability to break news first and fast, but also to offer balanced and strong editorial content presented in a visually appealing style.

How will you assess the impact of the last logo on the brand’s equity logo?

Logos come and go all the time but what remains constant for us, and what is of greatest value to us is the TVC brand, the equity we has built over the years, and our aspirations for it.

The previous TVC News mark was very identifiable and instantly recognizable, so it did a fantastic job for our business, but tastes and trends change over the years and we felt it was time to introduce a more contemporary look to our identity and to complement the major changes we are introducing on-air with our new studios and on-screen graphics.

TVC News recently won the “Best Television Station of the Year” at the 26th Nigerian Media Merit Awards. To what will you attribute this milestone?

Being voted Nigeria’s “Best Television Station” at the prestigious NMMA awards, will be attributed to the hard work and dedication of our amazing, talented and dynamic team of reporters, production staff and management team.

Of all the awards to win, this was the one we really wanted, so we are delighted. The trick now is to hang on to it!

What targets have you set for the organization over the next five years?

We want to radically increase our share of viewing / listening and advertising revenue in the Nigerian market.

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Diamond Bank in another season of reward for customers Pg. 16

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

HOSPITALITY

Transcorp Hotel posts stronger performance in FY 2018 result ISRAEL ODUBOLA

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ranscorp Hotels Plc, the hospitality subsidiary of Transnational Corporation of Niger ia Plc, posted an improved performance for the year ended 31 December 2018.

Profit After-tax for the Full-Year ended December 2018 hit N3.71 billion representing a 38.5 p e rc e n t i n c re a s e ov e r N2.68 billion reported in the corresponding period in 2017. While Profit before tax surged 36.96 percent to N5.04 billion in the period under review as against N3.68 billion reported a year prior, operating profit appreciated by 45.38 percent to N5.03 billion compared w ith N3.46 billion recorded twelve months back.

The Board of Directors at its 64th meeting on October 16, 2018, proposed an interim dividend of N1. 14 billion or 15 kobo per share of 7.6 billion issued and fully paid shares for FY 2018, which is subjected to appropr iate w ithholding tax.

However, if the dividend recommended by the Directors is ap-

proved at the Annual General Meeting coming up on Friday, March 15, 2019, dividend w ill be paid on Tuesday, March 19, 2019 to shareholders whose names appear in the Company’s Register of Members at the close of business on Wednesday, February 27, 2019.

Earnings per share inched 14 kobo or 40 percent higher to 49 kobo in FY 2018 from 35 kobo in corresponding period of 2017, implying that each unit of shares held is allocated 49 kobo.

The hospitality quoted firm generated N17.42 billion as revenue from contracts, a growth of 25.87 percent over N13.84 billion realized in FY 2017.

Analysis of the revenue segment of the entity u nv e i l e d t hat re v e nu e from rooms (N10.74 billion) and food & beverages (N5.24 billion) accounted for 92 percent in total revenue in FY 2018.

Based on the timing of revenue recognition, services transferred overtime contributed 6 9 . 9 8 p e rc e n t t o t o t a l revenue while good transferred at a point in time accounted for the other 30.02 percent.

While the company’s n o n - c u r r e n t a n d c u r-

rent assets expanded by 14.55 percent to N105.44 billion in FY 2018, current assets plunged 31.33 percent to N5.83 billion.

H o w e v e r, t o t a l a s s e t s stood at N111.28 billion, indicating 10.69 percent appreciation over N100.53 billion in FY 2017.

To t a l e q u i t y o f t h e hospitality firm rose by 4.59 percent to N57.46

b i l l i o n d r i v e n by 5 . 3 1 percent increase in retained earnings.

The entity however expended more in FY 2018 given the elevation in total cost of sales and administrating expenses. The total cost o f s a l e s ju m p e d 2 0 . 7 4 percent to N4.54 billion while administrative expenses grew 8.08 percent to N8.43 billion in the

p e r i o d re v i e w e d c o m pared with N7.80 billion a year before.

The company is yet to have a standpoint on the bonus-sharing ratio as per how existing shareholders would be given additional shares.

The share price of Transcorp Hotel has been flat at N6.1 for more than three months since October 10, 2018, and is

N1.45 lower than its 52week high of N7.55.

Transcorp Hotels Plc focuses on the consolidation of all hospitality businesses of the Transcorp Group and provides strategic management to drive the execution of its strategy. The company has 7.6 billion outstanding shares and a market capitalization of N46.36 billion.

ECONOMY

INEC lapses to cost Nigeria heavily as SB Morgen estimates loss at N239bn SEGUN ADAMS

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ollowing the decision of the Independent National Electoral Commission (INEC) to postpone the General Elections, Research and Polling firm, SB Morgen (SBM), has put the economic loss in the excess of N239bn.

SBM revealed this in its SBM Intelligence report which was the outcome of its high-level analysis using publicly available data to gauge in terms of actual funds spent, as well as the opportunity cost forgone, the likely impact the last minute change of plans by the electoral commission.

The Intelligence

Provider classified the cost under three broad categories which according to the release ‘’is by no means exhaustive, merely indicative’’ to focus the parties, both government and INEC on the matter in order to engender greater responsibility to the stakeholders going forward.

The cost to the political parties was put at N42.7bn per day of Elections, based on the cost of Polling Unit Polling Agents, Ward Polling Agents, and Local Government Polling Agents.

With 119,974 Polling Units across 8,809 Wards in 774 local government areas of Nigeria, SBM estimated each party to

deploy at least one Agent per Polling Unit and multiplicity of Polling Agent in events of each party candidate sponsoring their own Polling Agent.

One senior Agent per Ward to monitor the collation of Polling Unit results at Ward Level and One LGA level Agent to monitor the final collation at LG level. All of whom would have to be fed and catered for by their respective parties.

The cost to INEC was based on amount incurred and spent for the conduct of the postponed election and what would be incurred in order to manage the fallout of postponed

elections.

A number of assumptions were made to arrive at an N6.23bn estimated loss to INEC which have not lived up to expectations despite increased funding.

In estimating the impact of the postponement to the Gross Domestic Product, SBM made a subjective evaluation on the effect on business activities which have been disrupted across the various supply chain, disruption of social activities, increased wage cost to organizations and inconvenience to daily life which reduces consumer spending.

SBM Intel also noted

the early closure of firms and educational institutions on Friday a day to the Election Day previously scheduled.

SBM’s conclusion was based on their estimation of Nigeria’s GDP at $420 billion as at the end of 2018, calculating the forgone GDP for the various economic sector in line with National Bureau of Statistics data.

Worst hit sector was Agriculture at $0.145 was lost in sector’s GDP, accounting for 27.31 percent loss in total GDP. The report put the estimated loss to GDP at $531 million SMB Intelligence provides analysis of the

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

Nigerian socio-political and economic situation to a multinational client base including government, corporates, intelligence agencies, and educational institutions.

SMB intelligence runs a Nigeria-wide network of contacts and associates and offers comprehensive analysis to support government, businesses, and NGOs It would be recalled that Professor Yakubu Mahmood, Chairman of the Independent National Electoral Commission in the early hours of Saturday, cited logistics announced the postponement in the elections.

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Business Event

BANKING

Diamond Bank in another season of reward for customers Hope Ashike-Moses

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iamond Bank Plc has launched the season 11 of its DiamondXtrasavings Promo after successful completion of the Season 10 where lucky winners were rewarded with cash prizes of N1 million and salary for life.

The bank had in the past 10 years rewarded over 15,000 customers with over N5.4 billion in the saving promo and promised to continue the reward scheme even after its merger deal with Access Bank Plc. The promotion which is in its 11th season is held to reward customers and appreciate them for their loyalty to the bank.

Speaking to newsmen at the event, head, Retail Banking, Diamond Bank, Robert Giles said the season 11 promises to bring bigger and better rewards for the customers of the bank. He also noted that there were two new prize draws this season, the senior citizens draw which would reward 10 senior citizens with cash prizes

of N500,000 and one lucky senior citizen with an N100,000 every month for a year. There was also an additional draw called the loyalty reward to draw for customers who had been with the bank for 5 years and more.

‘To be a part of the reward system, all you need to do is open a Diamondxtra account and fund it with N5,000, with an increased chance of winning from multiple increments in your savings plan of N5,000’. ‘The reward scheme is open to new and existing customers with the DiamondXtra account’, Robert concluded.

The event was well-attended by some of the bank customers, journalists, past winners, and management staff of the bank.

The latest set of winners from the Lagos draw were presented with their cheques and also shared testimonials of how Diamond Bank has improved their lives through the SavingsXtra promo.

An official from KPMG was also at the event to vouch for the authenticity and transparency of

the promo.

Karimot Tukur, head, Consumer bank of the bank said the initiative was an avenue through which the bank enhances the capacity of its customers to pay their rents, school fees and settle other financial goals. She also stated that ‘DiamondXtra continues to change lives and I’m so excited it’s now bigger and better with new offerings for senior citizens and loyal customers’.

Osita Ede, head, Consumer Liability Products, Diamond bank noted that season 11 was a product of the bank’s engagement with its customers on the past promos.

‘That is how we came up with senior citizens reward which is coming straight from the survey we had with customers, so we have a special draw for 50years and above individuals’ he added.

He concluded by stating that Diamond Bank Plc would not relent in its efforts to create mutually beneficial relationships between the bank and customers through itsproducts,services,andofferings.

L-R: Yewande Sadipe, general manager, credit control, Federal Airports Authority of Nigeria (FAAN); Christabel Eromosele, deputy general manager, FAAN; Chioma Omeruah (Chigul),comedian/singer/actress; Adenike Abodurin, director, finance and accounts, FAAN, and Aderibigbe Adekunle, terminal manager, FAAN, during the celebration of ‘FAANletine’(Valentine’s Day) in Lagos.

ENERGY

Oando champions knowledge transfer with Kenyan University DIPO OLADEHINDE

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ando Plc, an indigenous oil and Gas Company recently held a two-day knowledge transfer session with Masters of Oil and Gas Law (LL.M) students from the Strathmore University Law School, Nairobi, Kenya at its head office in Victoria Island, Lagos.

Today’s reality is that the African oil and gas sector is still playing catch up with the rest of the world; whilst at home, International Oil Companies (IOCs) are still seen by employees as the ideal environment to put theory into practice and gain first-hand practical knowledge.

The Nigerian oil and gas sector suffers from a skills shortage that is compounded by a small pool of homegrown talent, as a result of poor educational infrastructure and facilities.

This challenge is not peculiar to Nigeria and can be felt across the region. In order to bridge this gap educational institutions and corporates are facilitating programmes to support the development of actors in the sector. To this end Strathmore University, Kenya organized a knowledge transfer academia visit for its Masters of Oil and Gas Law (LL.M) students to Africa’s largest oil producing nation, Nigeria and inevitably to the country’s leading indigenous oil company, Oando.

The company was selected by the University as the preferred indigenous sector leader for the academia visit on the basis of its knowledge pool gained from operational experience across the full energy value chain, success stories of pioneering initiatives within the sector, a diverse and local workforce and finally its impact on both the local and African oil and gas industry.

The students whose visit was grounded in the words of former British Prime Minister, Benjamin Disraeli, “The more extensive a man’s knowledge of what has

been done, the greater will be his power of knowing what to do”, said they wanted to acquire first-hand knowledge of the Nigerian oil and gas sector and take practical learning to apply to the nascent Kenyan oil sector on the conclusion of their studies.

In recent times, the most significant growth in oil and gas investment on the continent has occurred in East Africa with discoveries in Kenya, Uganda, Ethiopia, Madagascar, Mozambique, and Tanzania. In 2012, the Kenyan Government announced the discovery of commercially viable oil reserves at the Ngamia-1 well, in its Turkana province. The find was the culmination of exploration efforts that began in the 1950s when British Petroleum and Shell drilled several wells in the coastal Lamu Basin. However, the country’s nascent oil and gas industry faces several challenges including a lack of institutional capacity, infrastructure, finance, legal and regulatory framework amongst others.

Oando gave the students the indigenous perspective, specifically the process of building an indigenous company to international standards in a dynamic environment as well as a 360-degree session on the company’s operations in the full energy value chain.

On day one, the students were opportune to learn the intricacies and the importance of Environment, Health, Safety, Security and Quality (EHSSQ) in the oil sector facilitated

by Kayode Boladale General Manager, Operations Integrity, Oando Energy Resources, the upstream subsidiary of Oando PLC. Oando’s commercial team led

by Akinbambo Ibidapo-Obe, General Manager, Commercial, took the students on a virtual tour of the company’s assets, current and future production capabilities and prospects for the future. Following in quick succession was a session by the Legal department, which the students were very keen on, being Masters of Oil and Gas Law

(LL.M) students. The facilitator, Efuntomi Akpeneye, Senior Legal Advisor, talked about the difference between in-house and public lawyers. She also explained the various legal regulations guiding the industry and how these have evolved over time.

Speaking on her experience at the training session, Faith Waigwa, a student from the university said “Oil and gas experience from an African company done by Africans was the kind of knowledge we sought, and our expectations for this visit have been surpassed.

We have a proper benchmark in Nigeria. We are so grateful for the fact that we’ve had insight from knowledgeable individuals from a cross-section of departments on various aspects of the business and sector. It has truly been a robust learning experience” The highlight of the day was their session with the Group Chief Executive, Oando PLC, Adewale Tinubu who shared his experience as a trained lawyer who from a young age realized his passion, strength, and future lay in entrepreneurship, the building of an indigenous oil and gas company and his aspirations for the sector. Purity Wangigi, another student said she was in awe of Tinubu and all that he had achieved at such a young age. She further said: “Oando is an easy search anywhere in the world.

Oando for us is a proper learning experience. The employees are young, vibrant and literally bursting with knowledge” The students were then educated on the intricacies of the downstream trading business via a session led by Effanga Effanga, Head, Business Development, Oando Trading a subsidiary of Oando PLC. The concluding session for the day was from Oando’s gas affiliate Axxela who spoke about the challenges and opportunities that exist within the Nigerian gas sector.

Continues online at www.businessday.ng

L-R: Abubakar Sulieman, secretary general, Nigeria Youth Council (NYC) Sani Abduldalla, chairman board of trustee, Buhari/Osinbajo Mandate Group, and Obinna Nwaka, DG, committee of youth on mobilization and sensitization (CYMS),during a press briefing on the State of the Nation in Abuja.

Pic by Tunde Adeniyi.

L-R: Titilola Aikhomu, manager, brands, events and PCSR, Ikeja Electric; Theresa Ebode, chief nursing officer, National Orthopaedic Hospital Igbobi Lagos (NOHIL); Olanrewaju Yusuf, business manager, Somolu Business Unit, Ikeja Electric, and Akhiomen Amewie, assistant chief nursing officer (NOHIL), during the donation of items to kids at Children’s Ward of National Orthopaedic Hospital, Igbobi by Ikeja Electric to celebrate Valentine’s Day 2019.

Muhammed Abubakar, governor, Bauchi State (r), congratulating Abdulmumini Kundak (l), newly appointed adviser on special issues, during the swearing in ceremony of two commissioners and special adviser to the governor on special issues in Bauchi.

NAN

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17

EDUCATION Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Grange School to represent Nigeria at world Kids’ Lit quiz competition …Emerges first Kids’ Lit Quiz Nigeria national champions MICHEAL ANI

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range School has won the maiden edition of the Kids’ Lit Quiz Nigeria national championship and will proceed to represent Nigeria at the world final holding taking place in Singapore, July 2019.

The school emerged winner after an educating and painstaking contest that saw five schools broken into 10 teams go head to head in answering diverse questions around literature.

“The idea for the quiz actually came up when I had a daughter who at age six wasn’t interested in reading, so I thought of starting up a quiz that will reward readers. I reached out to Kids’ Lit Quiz International that I would love to start it up in our country as we had the challenge of children being distracted by several social influences,” Maluchi Chukwuemeka, national coordinator of Kids’ Lit Quiz Nigeria, told BusinessDay. “I chose literature because it exposes the mind of children, helping them to explore and relate perfectly well when they read,” she added.

The 10 teams that competed include Trinity High 1, Trinity High 2, Trinity High 3, Grange High 1, Grange High 2, Grange High 3, White Doves 1, White Doves 2, The Lagoon 1 and Chalcedony 1.

L-R: Wayne Mills, founder, Kids’ Lit Quiz and international quizmaster; members of Grange School Team 1, winners, and Maluchi Chukwuemeka, national coordinator, Kids’ Lit Quiz Nigeria, at the the maiden edition of the Kids’ Lit Quiz Nigeria national championship held in Lagos, recently.

The first phase of the quiz saw five teams, including Trinity High 1, Trinity High 2, Grange School 1, Grange School 2 and The Lagoon scale through to the next round.

The second round of the quiz finally put Grange School 1 ahead, beating the remaining five teams to emerge the winner. Trinity High 1 came second while Trinity High 4 took third.

The four members in Grange School 1 will be in

Singapore on July 8-15 to represent Nigeria in the world finals, where they will compete with 10 other countries of the world.

Chukwuemeka noted that there was no special criterion for the selection of the schools as the standard criterion worldwide is that a school that wants to participate must pay $100.

“However, we advise schools participating to select children who are readers. We reached out to about

Axxela targets creative problem-solvers for 2019 graduate trainee programme KELECHI EWUZIE

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xxela Limited, subSaharan Africa’s preferred fast-growing gas and power portfolio company has commenced its 2019 Graduate Trainee Programme for graduates to join its vibrant workforce in delivering innovative solutions to its customers.

Bolaji Osunsanya, chief executive officer, Axxela said the exceptional quality of the company’s personnel remains a valuable competitive edge which they optimise through training and development.

According to him, “To build on this advantage and continue to provide inventive energy solutions for our customers, we are recruiting creative problem-solvers who can think strategically, collaborate effectively, and implement efficiently”.

Application for the Graduate Trainee Programme is open till February 20th, 2019 for interested candidates age 25 or below, who have attained a Bachelor’s degree with a minimum Second Class Upper in Engineering, Accounting, Business Administration or Economics. Candidates must have completed Nigeria’s one-year National Youth Service Corps program,

with no more than three years of working experience, as at the time of their application.

Ngozika Achebe, human resource manager, Axxela while speaking on the Programme, said, “The Graduate Trainee Programme continues to be a proven platform for talent acquisition and succession management in Axxela. Our people are the lifeblood of our business, and so we seek to attract the best talents and invest in their careers to enable them positively impact our business value. We are targeting candidates who are exceptionally passionate about making a difference within the energy landscape.”

200 schools but only about five got in for the competition. However, we believe with time more schools will get interested when they hear the story about how far these students will go,” Chukwuemeka said.

Wayne Mills, founder, Kids’ Lit Quiz, said the quiz, an annual literature quiz for students aged 10-13 years, started in New Zealand in 1991. Today, quizzes are held in Australia, Canada, Hong Kong, Indonesia, New

Zealand, Nigeria, Singapore, South Africa, Thailand, United Kingdom and the USA. Mills reads enough books to write several thousand questions each year and some of his questions are available at Question Bank.

“People were rewarded for playing sports and games, but no one got rewarded for being a reader, so I thought I should start a competition where children can be rewarded for their

reading ability,” said Mills, who is also the international quizmaster.

He said Chukwuemeka asked the team to come to Nigeria “because she feels that the profile of reading needed to be boosted in the international space so the world could see that the Nigerian kids and the country are intelligent in reading because you have to judge a country based on its standard of literacy”. Speaking further, Chukwuemeka said the competition would help in giving Nigeria, participating schools and the children international exposure as Nigeria is the first all-black team to participate in the competition. “I am amazed seeing that we scaled through with the little time we had to prepare. The school is very supportive, giving every child the opportunity to explore in all areas,” said Christine Lene, senior librarian, Grange School.

“We believe with time other regions will come in so we can have a wider range of people benefit from this learning exposure, hence we solicit more private/ corporate sponsors. The registration for 2020 commences immediately as Nigeria (Lagos region) needs a minimum of 20 teams to host the quizmaster next year. Also, any other region in Nigeria that wants to participate for 2020 should also have a minimum of 20 teams,” she said.

BCl seeks to improve performances, productivity among professional managers

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he Business Club Ikeja has announced plans to train business managers and companies interested in improving their performances and productivity.

Leke Odude, president of the club and managing director, Lektol Insurance stated this at the maiden Business Luncheon of the year 2019.

Odude said that in line with the vision of fostering the building of professionals and business practices, the club is indeed delighted to introduce a series of Executive Master Class Programmes aimed at helping members and invited companies and staff gain required knowledge and skills to improve their productivity

and realise their missions as business and professionals.

Adesola Falaiye, deputy managing director, Afkar Printing and chairperson of the programmes committee of Business Club Ikeja, while commenting on the training programme opine that these programmes are part of a series of activities the Club will be promoting this year to help people and businesses in the Nigeria.

These Executive Master Classes are to be delivered in partnership with CIAPS, the Centre for International Advanced and Professional Studies, the international business school based in Lagos.

Anthony Kila, CIAPS centre director confirmed that in

2019 there will be six classes which will run every 60 days.

According to him, “Each of these classes are designed bearing in mind the need and with the input of businesses and managers of various companies and sectors. Our aim is to make these classes a place to meet like minds, rub minds and find solutions to the problems that emerge from our constantly changing and challenging environment”.

Kila further added that participants at these executive classes will leave each course with a clear understanding of how to better manage people, time and other resources that will help productivity and efficiency in their businesses.

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Tuesday 19 February 2019

EDUCATION Anchor varsity don urges students to focus on academic success for future gain Stories by KELECHI EWUZIE

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he vice chancellor of Anchor University, Ayobo Lagos, Joseph Afolayan has advised 134 newly admitted students of the institution to see their admission into the school as an opportunity to focus on their studies and shun any form of vices that may mar their academic progress.

Afolayan speaking after his investiture as the vice chancellor at the 3rd Matriculation ceremony of the institution said that the students should realise that they are now at a special and important stage of their lives.

According to him, “The University years are important and core formative part of your adult life. So make the best of the opportunity”.

He further opines that the students will be tried and tested to bring out the best in them as undergraduate students; “Make the best of all the challenges. Indeed, your responses to these challenges will determine your resilience and ability to thrive outside of the University. Therefore I want you all to know that, you are here for development and,

L-R: Zacheaus Emmanuel, Ag University Librarian; Joseph O Afolayan, vice-chancellor; Abimbola Olulesi, Ag Registrar and Olufemi Paul Oladokun, Ag Bursar, during the 3rd Anchor University’s Matriculation ceremony and the Investiture of the VC at the University’s Auditorium.

it won’t come to you on your beds”, he said.

He urged them to let God be the number one in all that they do throughout their stay in the school, adding that they should make reading and studying their priority all the time.

The vice chancellor speaking about some of the milestones achieved by the University since it began academic activities two years ago, said AUL has proven beyond any doubt that it’s here for real business.

In his words, “I can reliably tell you that Anchor University is destined for greatness. Since

we began operations exactly two years ago, we have taken countless important steps that are geared towards positioning us as a respectable University internationally and, in no distance time. There has not been a downtime a single day on this campus and, you could be rest assured that there will never be any. We have toiled across different terrains, within and outside of Africa, in a bid to build partnerships that are bound to promote our vision.

Today, we are proud to say we have quality partnerships with many leading institutions and universities across the globe,” Also speaking at the cer-

LAMDA examiner visits Greensprings school

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oanna Foster, examiner from London Academy of Music & Dramatic Art at Greensprings School, Lagos.

Joanna Foster, a seasoned London Academy of Music and Dramatic Art (LAMDA) examiner, recently visited Greensprings School to examine 111 students across both campuses who sat for the LAMDA examination.

The London Academy of Music and Dramatic Art (LAMDA) is one of United Kingdom’s oldest and most respected awarding bodies. The academy has been offering practical examinations in communication and performance subjects to students and adults for over 130 years. LAMDA has helped hundreds of thousands of candidates of all ages and abilities to develop lifelong skills.

LAMDA is also a threeyear full-time professional training school for actors and actresses in London. It is the home of the LAMDA exams for students from

age five right up to adulthood. The LAMDA training and examinations cover areas in communication, performance and musical theatre, etc.

When asked about her experience at Greensprings, especially in her interactions with the students, Joanna Foster stated that the students are very polite and have done very well in the examinations, adding that the standard of education at Greensprings is excellent.

Joanna - who has been a LAMDA examiner for five years running revealed that “there is a big team of ex-

Joanna Foster

aminers at LAMDA, nearly 200 and the list is rapidly growing.”

While commenting on the relevance of the LAMDA certificate, she says: “As students go through the LAMDA examinations, they can build-up on their Universities and Colleges Admissions Service (UCAS) points which enables them to get easier admission into UK universities.”

In the same vein, Grant Maclean, a secondar y school music teacher at Greensprings School, Lekki Campus, further explained that “LAMDA improves a child’s communication and acting skills, thereby making the child more confident in his or her approach to life, as well as developing the ability to speak eloquently when engaging with people.”

To him, “LAMDA is excellent at instilling the right foundation of learning to the child’s education”.

Greensprings School is said to be the first centre for LAMDA in Nigeria and this feat is quite commendable.

emony, the chairman, Board of Trustees, P.O Oluwi, in his goodwill message, reiterated the determination of the proprietor to support every effort that will ensure the vision of the Proprietor for the University is achieved.

Also at the ceremony were the Chairman of Council and Pro-Chancellor, AUL, Prof.

S.S. Dada and other members of the Council; the six Coordinating Overseers of Deeper Life Bible Church, Nigeria; the Executive Secretary, Deeper Life High School and; the Spokesman, Deeper Life Bible Church, Segun Babatope among others.

Nigerian students test their mathematics skills at Cowbellpedia examination

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bout 56,000 students jostled to cross the Stage one hurdle as the qualifying examination of the 2019 Cowbellpedia Secondary School Mathematics TV Quiz Show held across designated centres nationwide recently.

This year’s figure represents a 27.2 percent increase over the 44,000 participants recorded in 2018.Out of these numbers; the best 108 will proceed to the next stage of the competition, which is the TV Quiz Show proper.

The two-hour long examination was hitch-free in all the centres as candidates with confirmation slips were tested in the written examination.

Emmanuel Adeoti, an SS2 student of Iponri Grammar School, Lagos, said he hoped to advance to the TV Quiz Show proper, regardless of the hurdles ahead of him.

“The road to the Quiz Show may be quite difficult, but I’m sure I will be among the successful participants”, he enthused.

“I prepared very well for this examination and I look forward to being at the TV Quiz Show,” said Musiliu Adio of Community Junior

Grammar School also in Lagos.

Assessing the conduct of the candidates at his designated centre, Charles Aneke, a NECO official, said although it was quite an arduous task getting the candidates to follow instructions, the exercise was a success.

Benedict Adegoke, an official of Lagos State Ministry of Education, also expressed satisfaction with the general conduct of the candidates.

“They were all seated before exam began. It wasn’t a case of having to run after one student or the other,” Adegoke disclosed.

Anders Einarson, managing director, Promasidor Nigeria, had earlier explained during the flag-off of the competition that the ultimate prize for this year’s edition is N2 million and an all-expense paid educational excursion outside the country. The first and second runners-up will go home with N1.5million and N1 million respectively.

While the teacher of the top prize winner will be awarded N500, 000, those of the first and second runnersup will get N400, 000 and N300, 000 respectively.

Rotary club donates water facility to Ebute Elefun Secondary School

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otivated by the need to provide access to safe drinking water which is critical to human health and development, Rotary Club of Lekki Phase 1, RI District 9110, last week commissioned a water project at Ebute Elefun Secondary School, Sura, in Lagos Island.

The project, which was officially commissioned by the District Governor, Rotarian Kola Sodipo was courtesy of Rotary Club of Lekki Phase 1, with the support of the Rotary International through the Nigeria National Polio Plus Committee (NNPPC).

Tunji Funsho, Nation-

al Coordinator of NNPPC while speaking during the commissioning of the project explained that the collaborative initiative was designed to raise the awareness of the importance of adequate water intake among students as part of a healthy, active lifestyle.

“Access to safe drinking water will create a plentiful source of low cost refreshment throughout the day for the students. It will encourage good health and wellbeing among students, staff and others as well as reduce tiredness, irritability and distraction from thirst”, NNPPC National Coordinated noted.

The President Rotary

club of Lekki Phase 1, Dimeji Ajayi, in his opening remarks, informed that the water project would have a positive effect on students’ concentration throughout the day and demonstrates to parents and the local community alike that the school values students’ health and wellbeing.

Ajayi Aderonke Esther, director, Education District, who represented the Lagos State Ministry of Education while commending the initiative thanked Rotary for providing water free of charge, adding that safe drinking water is critical to human health and development, yet millions of people lack access to safe drinking water from an improved source, many of these in sub-Saharan Africa.

On her part, Omolara Oyebanji, principal of the school said that the project would encourage consumption of water by both the students and staff, while noting further that the school would ensure the water remains hygienic and are available and maintained.

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BUSINESS DAY

19

Policy

Three lessons for local firms from oil majors strong 2018 ISAAC ANYAOGU

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n the clearest indication yet of how resilient the world’s biggest oil producers have become, a 40 percent decline in the value of oil prices in the fourth quarter of 2018 did little to deter them from reporting strong results providing lessons for local oil companies.

Oil majors Shell, ExxonMobil, Total and Chevron booked strong results with some reporting earnings similar to 2014 when oil prices surged above $100 thereby beating expectations of most analysts on the back of strong investment in technology, diversifying markets and product offerings.

Total’s 2018 full year results shows that net profit rose largely as a result of increased production volumes.

The French oil major said net profit for the October-December period was $1.13 billion, up from $1.02 billion a year earlier.

ExxonMobil reported Q4 earnings of US$6 billion, down from US$8.4 billion in the fourth quarter of 2017.

Exxon’s liquids production in the fourth quarter rose by 4 percent from the prior-year quarter, driven by growth in the Permian. Oil-equivalent production was 4.010 million bpd in Q4, exceeding 4 million bpd for the first time in nearly two years.

“Our continued focus on longterm fundamentals and portfolio improvements position us well to grow

shareholder value. ExxonMobil’s 2018 results further demonstrate our advantages in technology, scale and integration, providing a strong foundation to successfully compete across commodity price cycles,” said Darren Woods, chairman and CEO, ExxonMobil.

The decision to take position in shale fields played a significant role in the improved results. Diversification of investment profile will help local oil companies remain profitable in a low oil price environment, Anglo-Dutch oil group, Shell posted full-year earnings of US$21.404 billion an increase of 36 percent from the previous year’s figures due to increased revenue from oil, gas, and liquefied natural gas (LNG).

Shell is the world’s largest oil trader, trading over 10 million barrels of oil a day. The company’s trading operations often help it offset large swings in oil prices and in some cases can generate large profits as it did this year.

But its diversified portfolio enabled it to make profit even when trading was weak in its biggest products. In 2018, trading of refined products such as gasoline and diesel was weaker than 2017, while crude oil trading was stronger and liquefied natural gas (LNG) trading gave a further boost. When its traditional markets didn’t hold too much prom-

ise, new markets in Oman and Brazil helped shore up results.

Nigeria’s emerging solar industry is ripe for investment but local oil firms are paying little attention. Shell may be the world’s biggest oil trader; it is seeing a future in solar and taking positions there. It is funding All On, an impact investment firm to take a position in Nigeria’s off-grid market, local oil companies could look at opportunities in the off grid space.

On its part, Chevron’s fourth-

quarter earnings rose to US$3.7 billion from US$3.1 billion in Q4 2017.

It also reported a record annual net oil-equivalent production of 2.93 million barrels per day for 2018, up by 7 percent on the year. For this year, Chevron is planning to further increase production by between 4 percent and 7 percent.

Diversification into shale fields lifted the company’s earnings and cash flow. Chevron generated $9.2 billion in cash flow from operations in the fourth quarter, up from $8.0

billion a year earlier. Its 2019 capital spending budget is going toward projects that can deliver cash within two years, Chevron and ExxonMobil are tying their shale operations to logistics and refining arms that independents do not have.

“We’re going to be advantaged versus the rest of industry,” Exxon CEO Darren Woods said on an earnings call, noting the company’s close coupling of pipeline, logistics and oil refining operations to shale.

Oil industry attracts three year low foreign investment of $133m …Oil and gas accounted for 0.79% of 2018 capital importation DIPO OLADEHINDE

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oreign investment flow into the Nigeria petroleum industry has dropped to a three low of $133 million in 2018 which is also a sharp decline of 59.82 percent compared to $331 million recorded in the same period in 2017.

Data obtained from the National Bureau of Statistics (NBS) 2018 Nigerian Capital Importation report, revealed that foreign capital inflow into the oil and gas sector accounted for 0.79 per cent of total foreign investments into the Nigerian economy which was lower compared to 2.71 percent of total foreign investment in 2017.

Data from NBS also showed that capital importation into the oil and gas sector is yet to reach its 2016 peak of $720.15 million which was lower compared to $331.36 million in 2017 as 2014 and 2015 figures stood at $208.18 million and $29.76million respectively.

Further analysis has showed that in the first quarter of 2018, $85.62 million was imported into the oil

Source: BusinessDay, NBS.

and gas industry, dropped by 15.3 percent from $101.08 million recorded in the corresponding quarter of 2017 while capital imported in the second quarter of 2018 declined by 86.9 per cent from $190.39 million in the second quarter of 2017 to $24.85 million in 2018.

Capital importation in the third quarter of 2018, stood at $7.73 million which was 51.9 percent lower than $16.07 million recorded in third quarter 2017 while in Q4, it also decreased by 35.75 percent to $15.31million in 2018 from $23.83 million in corresponding period

of 2017.

Also, analysts had consistently blamed the decline in investment on uncertainty in the industry, following the delay in the assent of the Petroleum Industry Governance Bill (PIGB), and the non-passage of the remaining variants of the Petroleum Industry Bill (PIB).

“Foreign investment in Q3 was driven by importation of submersible drilling machines for the Egina Floating Production Storage and Offloading (FPSO) from French major Total while in Q4 the high risk in the economy and a combination of many factors like policy directions made investors to pull out their funds out of the economy,” Gbolahan Ologunro, an investment analyst at CSL Stockbrokers told BusinessDay. Ologunro explained that the long-awaited passage of the Petroleum Industry Bill (PIB) is one of the key reforms investors looking forward to that will see significant inflows. “The power sector is another key sector where investors expect that if government can get its hand completely off that sector

by ensuring tariffs are cost-reflective then you will see more players making investment across the entire value chain.”

Investments experts disclosed that investors are skeptical about investing in the nation’s petroleum industry as a result of the uncertainty trailing general elections.

Ayodele Akinwunmi, head of research at FSDH Merchant Bank said generally, investment policies are more relevant to foreign direct investors than how yields are performing because they relate more to the long term developments in the economy than short term developments.

“When the elections is over, whoever wins whether the opposition or the incumbent they will face the reality but again it is still going to be affected by what is going on with global oil price,” Akinwunmi told BusinessDay by phone.

Nigeria oil and gas sector gathered momentum in 2018 following the successful sail-away of the Egina’s FPSO in 2018; anticipated to increase Nigeria’s oil production by 200,000 barrels of oil per day.

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ENERGY INTELLIGENCE Interview

There is high investment appetite for Nigeria’s gas sector - Mama CHIJIOKE MAMA, founder of Meiracopp Nigeria Limited (MNL) and a doctoral researcher in Business Management tells BusinessDay’s ISAAC ANYAOGU that the outlook for Nigeria’s gas sector brightens with new projects including Assah North gas project, Egbaoma gas processing and Gas flare commercialization program.

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ith the above 3 projects in the news this q1 2019 what is the outlook for the gas sector?

For me, I like to look beyond the sector-specific gains of these laudable gas projects in themselves.

Because it is gas, I am equally excited about the larger economic benefits of a well-developed gas sector for the Nigerian economy, which is what projects like this herald.

Development of any modern economy requires a number of critical inputs including a robust gas sector, functional steel sector and a functional technology ecosystem.

Assa North/Ohaji South (ANOR) gas project is one of the 7 critical gas projects being pursued by NNPC. Its recent Final Investment Decision (FID) by the Shell (JV) is very exciting, since the project has domestic supply focus for the produced gas.

We are talking about 300 mmscf/ day supply capacity within a 4.3 tcf gas reserves.

This gas will be available for gasto-power initiatives, as well as, gas to industrial. When you consider the domestic gas supply challenges of several existing power plants and how gas supply constraint is generally considered a deterrent for further investment in thermal generation systems; then you see what the new supply capacity within ANOR and other projects would mean for the economy when completed. There are countless other potential benefits.

What do these projects say

denominator for all these projects is the push it will provide for the Liquefied Petroleum Gas market in Nigeria (LPG), in addition to other forms of petrochemicals. But LPG is notable for several reasons, one of which is the import campaign that rides on poor domestic production capacity and its consequent effect on scarce Forex in Nigeria. Increased capacity for local LPG production is directly in line with the National Gas Policy aspirations; which wants to grow LPG consumption from 500 million kg per annum to 5 billion kg by 2022.

This national aspiration requires robust domestic LPG production capacity which is directly achievable through these gas projects. Take the Gas flare commercialization program for example; it is projected to unlock 600,000 MT of LPG for the domestic market through different Gas to Chemical projects within the program. This should also be the case with the new Egbaoma Gas processing plant, so there is a clear growth opportunity for the LPG value chain. about the viability of the Nigerian gas sector?

Definitely! I think last year’s commissioning of the USD 500 million Greenville LNG project in Rumuji Rivers state was a major indicator of the attractiveness of the Nigerian gas sector. Again, this is an LNG project with a primary domestic focus.

It is optimized to increase natural gas supply to domestic users, including those remotely located from the Niger Delta, through the use of virtual pipelines. This is not “a planned project” it’s already working.

So you add that to the huge local and international interest that the

Nigerian Gas Flare commercialization Program (NGFCP) has received in the ongoing bid process, what you then see is a clearly high investment appetite for the gas sector in Nigeria.

So yes! The sector is increasingly becoming attractive.

Remember that NNPC is still pushing the rest of the 7 critical gas projects. It can be said categorically that the sector is attractive and full of opportunities.

Beyond gas-to power opportunities what other opportunities do these projects herald?

Beyond Gas-to-Power one common

Where is the sector headed in the long term?

Remember that over and above all these projects is the Trans-Saharan Gas Pipeline project which will traverse the length of this country when completed, providing a critical supply infrastructure and major gas supply nodes along its way. This will incentivize both gasto-power and gas for industrial projects in its path. Tied to that is the improved economics and viability of compressed Natural Gas (CNG) supplies through virtual pipelines, since compression stations can be sited in certain strategic locations to virtually feed remote gas consumers.

In spite of the optimism, are there not challenges that confront players in the gas sector?

There are obviously several challenges, chief of which are regulatory uncertainties relating to the governance of the entire petroleum sector, others include some levels of ambiguity around natural gas prices, I mean multiple prices and the regulatory control thereof.

In the past, the entire laws and policies within the Nigerian petroleum sector is technically skewed in favor of oil, causing an unhealthy attention to oil and neglect of gas resource. That too has just begun to change but the relics can still be seen.

Insecurity of assets and infrastructure especially gas pipelines are among the other challenges.

For the LPG value chain, actors in this space are constrained by poor domestic cylinder manufacturing capacity and poor consumer awareness both of which can and should receive meaningful government support.

Are we likely to see these challenges disappearing soon?

This is expected given the current trajectory. If the National Gas Policy (NGP) is religiously pursued as its already being done, a good part of these hurdles will disappear in the long term. Market and regulatory conditions are bound to improve as more production, processing and transport capacity are added in the gas sector.

The National Gas Policy recognize this stage of the market as transitional and thus a number of hurdles are envisaged, as the market moves towards the establishment of the wholesale market where prices for example will be fully determined by market force.

Nigeria’s election unlikely to clear oil production bottlenecks STEPHEN ONYEKWELU

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our months ago, the Department of Petroleum Resources said Nigeria will start producing 4 million barrels of crude oil per day by 2020, but Feb. 23 general election may not lead Africa’s biggest crude producer to this destination.

This is because the country’s oil sector gasps for long overdue reforms and despite many of its previous leaders making huge promises, progress has been slow, delayed by a lack of political will.

In the last five years, Nigeria’s oil production has dropped by an average of about 200,000 barrels a day (200 kbpd) and in January the country produced just below 1.7 million. This means the country would need to more than double its output to hit the government target.

Apart from cuts in Iran and Libya, which were beyond the control of governments in these countries, Nigeria contributed notably to the Organisation of Petroleum Exporting Countries output cuts in

January, with the third-largest drop within the group.

Oil production in the country fell by 80,000 barrels a day to 1.69 million barrels a day. Ramp-up at Total’s offshore Egina field, expected to produce 200,000 barrels a day at plateau, may add to Nigeria’s output levels this year.

However, this increase may be subdued by the upcoming election which carries seeds for potential disruptions, especially in the Niger Delta region, if militancy resumes.

Regulatory uncertainty also continues to hold back investment into the country’s oil industry longer term.

Despite Nigeria’s dependence on oil sector revenue, the country has failed to set up mechanisms that will guarantee the stability of this all-important revenue source in terms both legal and fiscal frameworks.

Nigeria’s constitution allows the President and Minister of Petroleum to “gift” oil blocs to whoever they like. What this means is that oil blocs, the live wire of Nigeria have

and can be owned by people who lack the capacity to maximise its potential to deliver development to the Nigerians.

The Petroleum Industry Governance Bill (PIGB) that sought to end this wastefulness which results to sporadic increases in oil and gas prices, has been passed by the legislators. However, in September 2018, President Muhammadu Buhari rejected the PIGB.

The country has replaced India as the poverty capital of the world largely owing to the failure of successive governments to pass institutionalised laws that control the licensing of oil blocs in Nigeria.

According to Open Oil License, an advocacy group with Twitter handle @OpenOilLicense, in the licensing round of 2005, 2006 and 2007; 77 oil blocks were awarded and 76 of those oil blocks were dor-

mant meaning only 1 oil block was developed for production.

Oil and gas industry players with deep understanding of the matter say efforts to quash the Petroleum Industry Bill, and later the PIGB, did not just come from compromised legislators but from officials of government-run parastatals, the petroleum ministry inclusive, whose preference was to maintain the status quo.

“The politics, lobbying and so on from those who did not want the bill to see the light of the day was terrible. Unless you can withstand pressure, you won’t be able to do what I did” Tayo Alasoadura, chairman, Senate Committee on Petroleum Resources (Upstream) was reported to have said in September, 2017.

The sector’s opacity has starved it of much needed foreign direct investments, which has also impacted capital expenditure. Without capital expenditure on exploration and production activities, Nigeria’s output will remain stunted.

Tuesday 19 February 2019

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Inverter guide

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uitable for two bedroom apartment and guarantees between 7-10 hours a day of uninterrupted power for basic household uses – lightening, cooling, television, sound systems. Batteries are excluded from all except Sukam who sells along with batteries.

BUSINESS DAY

21

World leaders call for urgent energy transformation, climate action

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orld leaders currently meeting at the World Government Summit in Dubai called for greater ambition and action to fight climate change.

The call was sent from the Climate Change Forum which brings together decision makers, international organisations, senior government officials and businesses from across the world to assess the human and environmental impacts of climate change, identify creative solutions to combat it, and discuss ways of ensuring compliance with the Paris Agreement and the 2030 Agenda for Sustainable Development.

Adnan Z. Amin, director-general of the International Renewable Energy Agency, (IRENA) played an integral role in the Climate Change Forum strongly emphasizing the

dent of the UN General Assembly, Luis de Alba, UNSG Special Envoy for 2019 Climate Summit, and others, recognised the important work of IRENA in identifying renewable energy solutions that cut across many areas of human development.

IRENA’s analysis shows that accelerating the energy transition in line with the Paris Agreement would significantly outweigh the increase in energy system costs.

One of the most important social welfare benefits of the energy transition is the reduction in harm to health from air pollution. The WHO estimates that seven million people die every year from air pollution. Accelerating renewables deployment in line with the Paris Agreement can bring down negative health effects associated with

crucial role of renewable energy as cost-effective and economically attractive climate solution.

During a roundtable convened

by UAE’s Ministry of Climate Change and Environment and hosted by Minister Thani Al Zeyoudi, Amin joined the call for a dramatic scaling-up of action to address the urgent challenges that the world is facing. He stressed that the impacts of climate change compound existing risks and pressures such as population growth, urbanization, environmental degradation, and rising socioeconomic inequalities. Climate change also adversely impacts livelihoods of people by increasing food insecurity, water and land scarcity and unemployment.

These consequences in turn lead to increased vulnerability amongst the affected population.

The panel, whose participants included Gina McCarthy, head of the Harvard T.H. Chan School of Public Health, Ban Ki-Moon, Eighth Secretary-General of the United Nations and President of Global Green Growth Institute, Laurent Fabius, president of the Constitutional Council in France, María Fernanda Espinosa, presi-

air pollution by 62% by 2050.

Gains in human health (a fundamental driver of energy policy in many countries) and lower CO2 emissions from fossil fuels would generate savings (on average) of USD six trillion annually by 2050, an amount that is over three times larger than the additional cost of decarbonisation. If the higher end estimate is used, then cost savings would be as much as five times larger than the additional cost of decarbonization An estimated one billion people globally are served by health care facilities without reliable electricity supply today. Surveys carried out in 14 countries have revealed that only 28% of all healthcare facilities in those countries have fully reliable access to electricity. Offgrid renewable energy solutions are a key opportunity to dramatically improve the quality of health services in energy poor areas.

Following the panel discussion, the Director-General met bilaterally with Ki-Moon, Fabius and others to discuss how to frame calls for an acceleration of the energy transition to achieve maximum impact, and to explore opportunities to further strengthen partnerships.

Solar investment declines to $130.8bn in 2018- Bloomberg New Energy Finance DIPO OLADEHINDE

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lobally, Total investment in solar dropped 24percent to $130.8 billion due to declining capital costs as well as a sharp change in policy in China in mid-year, according to a report by Bloomberg New Energy Finance (BNEF).

“2018 was certainly a difficult year for many solar manufacturers, and for developers in China.

However, we estimate that global PV installations increased from 99GW in 2017 to approximately 109GW in 2018, as other countries took advantage of the technology’s fiercely improved competitiveness,” Jenny Chase, head of solar analysis at BNEF said.

In 2018, the biggest solar projects to be financed includes the 800MWNOORm Midelt PV and solar thermal portfolio in Morocco, at an estimated $2.4 billion, and the 709MW NLC Tangedco PV plant in India, at a cost of about $500 million.

Data from BNEF showed there were sharp contrasts between clean energy sectors in terms of the change in dollar investment last year. Wind investment rose 3 percent to $128.6 billion, with offshore wind having its second-highest year with $25.7 billion invested while money committed to smart meter rollouts and electric vehicle company financings also increased.

Biomass and waste-to-energy investment rose 18 percent to $6.3 billion, while those in bio-fuels rallied 47percent to $3 billion. Geothermal

energy investment increased by 10 percent to $1.8 billion, small hydro investment decreased 50percent to $1.7 billion and investment in marine energy sources increased by 16percent to $180 million.

Research by BNEF showed investment in renewable technologies and infrastructure totaled $332.1 billion in 2018, down 8 percent on 2017.

In terms of regional trends, data from BNEF report showed Asian region maintained their lead having caught up with Europe in 2012 as China continued to lead with total investments of $100.1 billion, even though its 32 percent on its 2017’s record investments which can be attributed to a reduction in the value of solar commitments.

The United States ranked as the second-highest country, investing $64.2 billion, an increase of 12percent while investment decreased in Japan by 16 percent to $27.2 billion; in India by 21 percent to $11.1 billion; Germany by 32 percent to $10.5 billion.

In WoodMac’s latest global solar report, published in January, analysts said China will remain “crucial” to worldwide demand. In the next five years, they forecast the country will install nearly 200 gigawatts.

But rolling into the next decade, China will no longer be the unchallenged driver of solar growth as analysts forecast its market share will drop to 19 percent in 2023 from 55 percent in 2017, and emerging markets in the Middle East, Africa and Latin America will pick up some of that slack.

Looking into 2019, BNEF mentions that the PV market in China remains “in disarray.” It forecasts that investment next year will not match the heights it reached in 2018, let alone 2017.

BNEF also revealed investments in global clean energy decreased by eight percent to $332.1 billion in 2018 compared to $361.7 billion in 2017 despite investment exceeding $300 billion mark for the fifth consecutive time.

Analysts: Isaac Anyaogu (Team Lead), Stephen Onyekwelu, Dipo Oladehinde

Feedback: 07037817378, 08137433034, 08135447789

email: isaac.anyaogu@businessdayonline.com, stephen.onyekwelu@businessdayonline.com, oladehinde.oladipo@businessdayonline.com

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Safety, Security is key to us than price - Fagbemi Olatokunbo Fagbemi is the group managing director/chief executive officer of the Nigerian Aviation Handling Company PLC (nahco aviation). In this interview with Ifeoma Okeke, she speaks on how expansion plans of the company.

In your five-year plans, what do you intend to invest in your business and what is expected as revenue? e are still finetuning the plan, which is why we are doing this with KPMG and we are going to set up a programme management office to drive it. We are looking at growth in the region of five to seven times which is achievable given the plans that we have. In terms of investment in equipment, in the last couple of months, we have invested about 1.9billion naira in equipment. You will begin to see the equipment by the end of the first quarter. By the end of the year, we will have spent about 3.6billion naira in equipment. By September, we will have the next set of equipment coming in; that is what we are doing in terms of equipment. We are going to have a master plan for our facilities.

I can’t give you the figure for this because it is based on what comes out of the master plan but what we are doing immediately is to ensure that we refurbish what we have in terms of our facilities. We will make them look better; these include our buildings, the warehouses amongst others and improve on all the pro-

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cesses within the system. We are also drawing up a people’s plan for our people. These things are strategic for us.

What steps are you taking to ensure you bring back customers you have lost in the past few years?

I am sure in business you lose customers, so I won’t say it is due to internal challenges because I have not done enough study to be able to tell you what the reasons are. What I will tell you is that we will do everything to retain the customers that we have.

We will do everything to attract customers. We want to set new standards and bring professionalism into this service business. We know that as we improve on professionalism, the deserving customers will come to us.

Are you looking leveraging price to attract customers?

In terms of price war, I can’t tell how much the other side is charging because they are based on agreements. The issue is that right now, we are ground handing business.

We are in a business where our customers are stronger than us. Most of them are the airlines and that is the challenge in this ground handling business. Most of these strong customers are

Olatokunbo Fagbemi

in the cost-cutting mode.

So, essentially, there is no secret that this brings a lot of pressure on pricing. But one thing that I have begun to discuss is that we should ensure that pressure on price does not drive any company in terms of safety and security in the provision of services. I will champion everything to ensure that the pressure on price does not compromise safety and security.

There is this animosity between the two major ground handling companies which is having a negative impact because if two of you are working

together, you can determine prices. Even if the airlines are very strong, are you not supposed to be enjoying?

We need to go back to the history of the two companies and I have a fair idea of both.

NAHCO was set up by the foreign airlines because there was a service gap for the foreign airlines. At that time, Nigeria Airways had the Sky Power aviation handling company and they were handling Nigeria Airways and Nigeria Airways was the leader in the industry.

On the other hand, there was a department in FAAN that did some handing and so the

foreign airlines were not getting as much value. They had 40percent share, 60percent was for FAAN. This is how NAHCO started and most of the people that came in from the foreign side were going into NAHCO. SAHCOL was set up strictly for Nigeria Airways and was focused for Nigeria Airways and was hardly doing business outside of Nigeria and maybe for the African Carriers. In the domestic was SAHCOL. The issue of creating subsidiaries in the Nigeria Airways for them to become autonomous started. As a business entity, I believe that SAHCOL took advantage of that impact that happened in the business and that fact that it was now on its own to become fully commercial. So, SAHCOL growth had started gradually from the 1990s and in fact the business environment is growing and more airlines are coming in.

So, the market was getting bigger. NAHCO and SAHCOL were getting bigger. There is no doubt that customers have left from NAHCO to SAHCOL but also we have had customers leave from SAHCOL to NAHCO. This is the basis of a competitive environment.

What you say is animosity between the two companies is actually issues of competition.

There are areas of competitions and there are also areas we need to cooperate. We rent from them and they rent from us. We have areas in which we corporate.

Why do you think Lufthansa withdrew their six percent shareholdings and what do you think is the overall image people may have on NAHCO? On the issue of Lufthansa, there is no problem with Lufthansa. Lufthansa is still one of our best clients. If you cast your mind back, a few years ago, most of the airlines began to divest. It had nothing to do with Nigeria or NAHCO. It had to do with decisions taken from the headquarters for each of the airlines to say which business do we invest in and which business don’t we invest in. So, each one of the airlines left NAHCO based on the decisions that were made at corporate levels to exit ground handling not just in Nigeria but all over. dnata has picked up a lot of these airlines and that is why dnata has been able to get a lot of work. dnata is the arm of ground handling owned by Emirates. Lufthansa also in 2016 also had taken that decision, so leaving NAHCO was a corporate decision taken in 2016 that finally came to this in 2018.

Valentine: FAAN celebrates with Passengers in grand Style

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i t h “ L ov e i n t h e A i r,” t h e Federal Airport Authority of Nigeria (FAAN) on February 14th, 2019 celebrated with airport passengers at the General Aviation Terminal and Murtala Muhammed International Terminal of the Lagos Airport, as well as the Nnamdi Azikiwe In-

ternational Airport Abuja respectively.

According to FAAN, the celebration is to love and show appreciation to their customers. Well packaged rose flowers were given to some lucky passengers by popular Nigerian celebrity actress, singer and comedienne Chioma Omeruah (Chigul) at both Murtala

Mohammed International Airport and General Aviation Terminal Lagos, while Chuks D General did the same at the Nnamdi Azikiwe International Airport, Abuja.

The celebration of love was put together by FAAN management and staff for their loyal customers and the aim was to show that

FAAN cares for every passenger and every customer is special. The objective was also to improve relationship with customers and to celebrate the love season with passengers that are passing through their terminals.

A good number of the passengers that received the given rose flowers were

surprised because this was a first of such experience at an airport ever.

“This is the first Val gift I have collected today, as a matter of fact nobody has greeted me for Val today, and I feel loved by FAAN, I hope to see more of this,” a passenger who identified herself as Adesola said.

Another passenger com-

mended FAAN for extending love to Nigerians “I really give Kudos to FAAN for celebrating me, to show love to people is what we need in this country and if FAAN can celebrate passengers during this season, then I give them thumbs up for been thoughtful. I feel loved and I feel welcome back home,” Olumide Olayinka said.

Tuesday 19 February 2019

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Emerging ‘Post-Digital’ world provides new opportunities for business growth ...As Accenture identifies new technology trends that companies must adopt Stories by Jumoke Akiyode Lawanson

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he enterprise is entering a new ‘post-digital’ era, where success will be based on an organisation’s ability to master a set of new technologies that can deliver personalised realities and experiences for customers, employees and business partners, according to Accenture Technology Vision 2019, the annual report from Accenture that predicts key technology trends that will redefine businesses over the next three years.

According to this year’s report, “The Post-Digital Era is Upon Us — Are You Ready for What’s Next?,” the enterprise is at a turning point.

Digital technologies enable companies to understand their customers with a new depth of granularity; give them more channels with which to reach those consumers; and enable them to expand ecosystems with new potential partners. But digital is no longer a differentiating advantage — it’s now the price of admission.

In fact, nearly four in five (79 percent) of the more than 6,600 business and IT executives worldwide that Accenture surveyed for the report believe that digital technologies — specifically social, mobile, analytics and cloud — have moved beyond adoption silos to become part of the core technology founda-

tion for their organisation.

“A post-digital world doesn’t mean that digital is over,” said Niyi Tayo Accenture’s technology managing director. “On the contrary — we’re posing a new question: As all organisations develop their digital competency, what will set you apart? In this era, simply doing digital isn’t enough. Our Technology Vision highlights the ways in which organisations must use powerful new technologies to innovate in their business models and personalise experiences for their customers. At the same time, leaders must recognise that human values, such as trust and

responsibility, are not just buzzwords but critical enablers of their success,” Tayo said.

Accenture Technology Vision 2019, identifies five emerging technology trends that companies must address if they are to succeed in today’s rapidly evolving landscape: DARQ Power: Understanding the DNA of DARQ. The technologies of distributed ledgers, artificial intelligence, extended reality and quantum computing (DARQ) are catalysts for change, offering extraordinary new capabilities and enabling businesses to reimagine entire industries.

Get to Know Me: Technology-

driven interactions are creating an expanding technology identity for every consumer. This living foundation of knowledge will be key to understanding the next generation of consumers and for delivering rich, individualised, experiencebased relationships. More than four in five executives (83 percent) said that digital demographics give their organisations a new way to identify market opportunities for unmet customer needs.

Human+ Worker: As workforces become “human+” — with each individual worker empowered by their skillsets and knowledge plus a new, growing set of capabilities

made possible through technology — companies must support a new way of working in the postdigital age.

Secure Us to Secure Me: While ecosystem-driven business depends on interconnectedness, those connections increase companies’ exposures to risks. Leading businesses recognise that security must play a key role in their efforts as they collaborate with entire ecosystems to deliver best-in-class products, services and experiences.

MyMarkets: Meet consumers at the speed of now. Technology is creating a world of intensely customised and on-demand experiences, and companies must reinvent their organisations to find and capture those opportunities. That means viewing each opportunity as if it’s an individual market—a momentary market. Six in seven executives (85 percent) said that the integration of customisation and real-time delivery is the next big wave of competitive advantage.

According to the report, innovation for organisations in the postdigital era involves figuring out how to shape the world around people and pick the right time to offer their products and services. They’re taking their first steps in a world that tailors itself to fit every moment — where products, services and even people’s surroundings are customised and where businesses cater to the individual in every aspect of their lives and jobs, shaping their realities.

MTN initiates major digital transformation with Oracle Cloud Applications

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outh Africa based mobile telecommunications major; MTN has chosen Oracle Cloud Applications to drive one of the largest digital transformations in the global telecom industry across all its core business operations. The implementation will help MTN drive efficiency, scale operations and integration across its local

and regional operations.

“MTN and Oracle partnered in 2018 to complete the design of the Oracle Cloud Applications. 2019 focuses on finalising the build and deploying across our markets,” said Belinda O’ Neil, Executive Boost, MTN. The Oracle suite of cloud applications will also help MTN improve working capital through efficiencies

in inventory management and reduce obsolescence. The implementation will drive further productivity through automation, self-service, IoT and mobile application capabilities; besides also enhancing management visibility across all business operations for real time performance measurement.

“With clear signs of economic re-

covery across key African markets, MTN’s decision to undertake large scale digital transformation will be instrumental in achieving strategic business objectives,” said Arun Khehar, Senior Vice President – Business Applications, ECEMEA, Oracle. “We are confident that the deployment of the Oracle Cloud enabled digital core will help MTN deliver value for all stake-

holders and create differentiation needed to achieve market leadership.”

Under this initiative, MTN will implement Oracle Enterprise Resource Planning (ERP); Supply Chain Management (SCM); Enterprise Performance Management (EPM); Customer Experience (CX); Platform as a Service (PaaS) and Oracle Service Cloud solutions.

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Economy, corruption trends on Facebook ahead of Nigeria’s general elections Jumoke AkiyodeLawanson

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igerians have taken to all social media platforms to vent their disappointment in the postponement of Nigeria’s general elections, as well as other issues likely to be affected by the outcome of the elections.

Facebook has revealed the most talked about subjects and topics of conversation on its platform with regards to the up-coming Nigerian elections.

Using aggregated and anonymized data from the period of December 1 2018 to January 22 2019, the findings reveal that peaks in conversation happened between January 17 and 19 2019.

The findings also lists the economy as the most talked about conversation by topic trending across most states in Nigeria (61 percent), closely followed by corruption (56 percent) and agriculture (35

L-R: Yusuf Kazaure; managing director/CEO, Galaxy Backbone Limited, Adebayo Shittu; minister of communications, Umar Garba Danbatta; executive vice chairman (EVC), Nigerian Communications Commission (NCC), Abimbola Alale; managing director/CEO, Nigerian Communications Satellite Limited (NIGCOMSAT), Agu Collins Agu; director, corporate planning & strategy, National Information Technology Development Agency (NITDA), and Olusola Teniola; president, Association of Telecommunications Companies of Nigeria (ATCON), during the Post-Nigeria National Broadband Plan 2013-2018 stakeholder forum held in Abuja recently.

percent).

Distribution of conversation by region highlights the states where conversations around elections rate from

Meristem launches Zedd, an AI personal investment advisor Jumoke AkiyodeLawanson

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eristem investment firm launched an artificial intelligent solution, Zedd, to seamlessly onboard prospective investors and offer more personalized services to clients.

The AI technology-driven bot, modelled after a 29-year old savvy investment advisor, interacts with users in a human-like pattern Zedd can offer real time mutual funds rates and live stock prices. The bot offers guidance towards investment choices based on lifestyle and risk tolerance while guiding on-boarders through the account sign-up process. Zedd is social, he understands the dynamics of corporate wears through the week, casual wears on Fridays and traditional outfits for likely weekend parties.

‘Technology is meant to make us more interactive and that’s exactly what Zedd is about. With Zedd, you never have to worry how or what to invest your funds. Zedd practically guides you towards investment options that fits your fund size, risk tolerance, and duration you are willing

to invest for. We understand the hurdles towards having an investment plan; from a busy schedule to a vague understanding about the dynamics. All these have been simplified by Zedd,” says Solape Akinpelu, head brands and marketing, Meristem Securities Limited According to the company, one good thing about Zedd is that people are able to use it without being mandated to provide their account details or create a new account. As a matter of fact, there are no threats of illegal access to investment funds as Zedd never requests for your personal details.

Sulaiman Adedokun, the deputy managing director of Meristem stated that the main objectives for Zedd is to bridge the financial literacy gap, personalize Meristem’s services as well as establish the trail blazing path of Meristem ‘This is another recorded first for us in the sector, an AI wealth advisor resonates more with the millennials, a generation we are proud to serve. It is even more interesting we are launching this on the heels of our Global Investment Performance Standard (GIPs) Compliance,’ Adedokun said.

high to low.

The study also shows that conversations are heavily driven by the young, mostly 18-24 year-olds (35 percent)

and 25-34 year-olds (35 percent).

Men are more than likely to be involved in conversations around the elections

with 68 percent , compared to 32 percent of women.

As for the countries across Africa where the Nigeria election is being discussed most,

aside from Nigeria, conversations are most prevalent across fellow West African countries, Ghana and Sierra Leone, followed by Zambia and Cameroon.

Facebook also measured conversation including posts, comments, shares, likes and reactions-related election, with all data aggregated and de-personalised. Conversations were identified based on keywords and combinations of keywords that were associated with discussions around the election.

All data is aggregated and anonymizes and percentages add up to more than 100 percent as people can mention more than one topic in a single post, or comment.

The Independent National Electoral Commission (INEC) announced the postponement of Nigeria’s Presidential and National Assembly election to February 23 2019. As a result, the Gubernatorial elections will now hold on March 9, 2019 rather than March 3, 2019.

Airtel aids Ilaje community, Lagos in CSR project Chetachukwu Umeremadu

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n the quest for social assistance and customer benefits, Airtel Nigeria surprised the people of Ilaje community located at Ajah-Expressway, Lagos by commissioning two water boreholes.

The commissioning of the boreholes took place on February 4, 2019 at Ilaje environs.

During the commissioning of the boreholes, Emeka Okpara, director, corporate communications and CSR, Airtel, said that the boreholes presented to the people of Ilaje is part of the company’s “Airtel Touching Lives” project.

Okpara explained that ‘Airtel Touching Lives’ is a system set up by the company as a way of giving back to its host communities in form of appreciation.

“We as a telecommunication company devised this means as a way of giving back to the people who patronize our product. We consider it right to say ‘Thank you’ to our

host communities through a project like this and lots more,” he said.

Okpara highlighted other remarkable related projects that the company has done for its customers, saying that the company has equally demonstrated its social responsibility across the country in so many other ways such as sponsorship of cancer victims abroad for proper medical treatment, helping of Boko Haram victims and provision of jobs to young people found among these victims via what they describe as “Employees Volunteer Skill.”

He further stated that the beneficiaries of these good works reside in places like Northern states, Ogun state, Enugu State, among other states across the country.

According to him, the Employees Volunteer Skills is a platform put up by the staff of Airtel through which they put smiles on people’s faces. “Where Airtel stops, the staff continues,” he said.

Rafiu Olatunji Olufemi,

chairman, Eti-Osa East local government who equally graced the occasion said that he is happy with the good works Airtel is doing for the people of Nigeria, particularly for the people of Ilaje community.

Olufemi encouraged Airtel not to relent in their good works stating that the government needs their maximum support.

“We the government need your supports in executing projects like this as only the government cannot handle the whole projects alone. I therefore encourage you to keep assisting us with your good works to the people,” he said.

The Ilaje community through their Baale, Sunday Ogunkeyi expressed their gratitude to Airtel as they sang and danced for the telecommunications company for the good thing they brought to the community.

According to the Baale, the Ilaje residents never knew that the company would act so fast in granting their request for borehole water. “We requested

for this on the 3rd of March, 2018, and today, we are excited that Airtel has helped solve our problem,” he said.

The Baale also added that the people of Ilaje community would never forget the kind gesture showered on them by Airtel. He said that the people would maintain the good relationship Airtel have begun with them. With joyous expressions, the community people went further promising to remain loyal customers to the company.

Olushina Adegoke, regional operations director, Airtel, thanked both the leaders and the residents of Ilaje for giving Airtel the opportunity to demonstrate its social responsibility as a company.

Adegoke made the people understand that they will forever be beneficiaries of “Airtel Touching Lives” projects. He enjoined the people to enjoy the water that Airtel has presented to them.

Airtel aside the borehole water project, went further to give the people free Airtel SIM cards as well as registering them for the SIMs.

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By Perchstone & Graeys Energy Team

The Nigerian energy sector highlights and projections

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n 2018, the Nigerian energy sector presented itself as one with considerable potential to return high yields on investment.

The various reforms in the energy sector within the last 2 decades of steady civilian rule has helped solved some of the challenges facing the energy sector. For example, in 2018, Nigeria’s daily crude oil production increased by 9% to about 2.09 million barrels in comparison with the 2017 daily production of 1.86 million barrels.

As at August 2018, Nigeria’s revenue from crude oil stood at $470 million. Coalescing abundant oil and gas deposits with a primarily young, vibrant and entrepreneurial population willing and ready to harness its full potential, Nigeria has become a one stop energy investment hub.

Detailed below are some of the notable highlights and changes introduced in 2018 aimed at enhancing and creating an effective and working energy sector in Nigeria: Petroleum Industry Governance Bill (PIGB) One of the major highlights for the oil and gas sector in 2018 was the passage of the Petroleum Industry Governance Bill (a fraction of the Petroleum Industry Bill) by the National Assembly. Although waiting presidential assent, the PIGB is expected to create efficient and effective governing institutions with clear and separate roles for the petroleum industry and establish a framework for the creation of commercially oriented and profit driven petroleum entities to ensure value addition and internationalization of the petroleum industry. The essence of this bill is to promote transparency and accountability in the administration of petroleum resources of Nigeria in order to foster a conducive business environment for petroleum industry operations.

The Bill creates various bodies which include National Petroleum Company (replacing the Nigerian National Petroleum Corporation “NNPC”) and the Nigerian Petroleum Regulatory Commission. In addition, the Petroleum Equalization Fund Act will be repealed as the PIGB will serve as the subsisting regulation.

One major concern common to the stakeholders in oil and gas sector towards the PIGB has been the issue of the President withholding assent to the harmonised bill. This uncertainty has raised concerns amongst potential investors with regards to the president’s disposition towards the industry. The instability in laws and the inaction of the President poses a potential problem amongst investors who are looking to invest long term.

Gas Flaring The Flare Gas (Prevention of waste and pollution) Regulations, 2018 was another major regulation

changing the face of the gas industry by providing opportunities for the commercialization of gas.

This legal framework supports the government’s policies to reduce greenhouse gases caused by the flaring and venting of gas. The regulation stipulates that government takes all flare gas free of cost and without payment of royalty and they will all be subject to competitive bids. The regulation also tries to ensure the regular report of flare gas data through the installation of gas meters at the gas producers’ sites. Furthermore, it prohibits flaring of gas except there is a certificate issued by the Petroleum Minister in certain circumstances. The regulation has an operational principle which is the ‘polluter pays’ principle, similar to carbon tax.

Increase in Nigeria’s crude oil export Nigeria’s crude oil export increased by about 17 per cent in 2018 from 2017, to attain over N7 trillion in the first six months of 2018 while the import of fuel stood at about N1.8 trillion. Despite the increase in export, Dr. Ibe Kachikwu, Minister of State for Petroleum, disclosed that the country requires $500 million, which is about N100 billion to fix all the refineries. It is worthy to note that even if the current set of refineries were 100 percent functional, they would only be able to account for 20 million litres of Premium Motor Spirit (PMS) per day, which is roughly estimated to be about 50 per cent of the country’s total consumption, thereby creating a need to further import refined products as our refining capacity will not be sufficient in meeting the growing demand.

Meter Asset Provider Regulation (MAPR) 2018 In pursuit of closing the metering gap in the Nigerian Electricity Supply Industry (NESI) coupled with the objective of encouraging the development of independent and competitive meter service providers in NESI, attracting private investment to the provision of metering services in NESI, closing the metering gap through accelerated meter roll out, and enhancing revenue assurance in NESI, the Meter Asset Provider Regulation

(MAP) 2018 was issued by the Nigerian Electricity Regulation Commission (NERC) which took effect from April 3, 2018.

Prior to this regulation, the Credited Advance Payment for Metering Implementation (CAPMI) Scheme was initiated, which permitted end users to acquire and install meters with their individual fund. Unfortunately, this scheme did not achieve its purpose as DisCos were still unable to provide the meters to end users. In order to bridge this metering gap, the MAPR introduced a new set of industry players referred to as the Meter Assets Providers (the MAPs) licensed to provide metering services, such as meter financing, procurement, supply, installation, maintenance and replacement.

The MAPs were to unburden the Distribution companies (DisCos) of the metering obligations as the MAPs under the regulations could provide the customer-based services such as the procurement, installation, servicing, replacements of metering equipment’s that were the sole responsibility of the DisCos. Although, a timely regulation, the MAPR is faced with some challenges, to wit:; i) it restricts a MAP to a specific DisCo and this will require the MAP to acquire several permits if it intends to provide metering services to other DisCos. A solution to this will be to create a system where the MAP can rather than acquire several permits for different DisCos, obtain a one time “No objection” or consider “upstamping” the existing permit for usage with other DisCos. ii) possible inconsistent revenue collection (financial challenges). A good solution to this will be to create a structure where the MAPs will not be responsible for the distribution and installation of the meters but will only finance the procurement of the meters by the DisCos. The DisCos will be responsible for the provision and installation of these meters and the end users (consumers) would make payments for the meters. The money recovered from the end users will then be used to settle debts owed to the MAPs.; iii) inter disco transactions

and payment settlement among others; the regulation is quiet o issues to relocation of customers who have purchased meters from one DisCo franchised area to another. There needs to be further guidance on how parties can settle issues like transfer of unused energy credit form one DisCo to another, trading and valuation of meters where customers relocate; where the customer who had been financing a meter asset at relocation’s payment thus far would be reflected in the new meter he receives from the MAP procured by the DisCo in the franchised area he has moved to?

Eligible Customers Declaration The Honourable Minister for Power, Works and Housing, invoked the declaration of Eligible Customer Act. This Act identifies the 4 classes of eligible customers, which are, end users consuming no less than 2MWhr/h connected to a metered 11kV or 33kV delivery point, end users whose consumption is in excess of 2MWhr/h and connected directly to a metered 33kV delivery point, end users whose minimum consumption is above 2MWhr/h and is directly connected to the metering facility and end users connected to a metered 132kV and 330kV delivery point on the transmission network. Prior to this declaration, customers were only permitted to purchase electric power from licensed DisCos. In the consultation paper on eligible customers published by NERC, the identified objectives of the declaration were to allow successor GenCos with excess capacity over and above their contractual capacity with Nigeria Bulk Electricity Trading to access underserved customers thus improving the financial liquidity of the industry. The direct purchase of electric power from generation licensees by consumers is underpinned by opening third party access to transmission and distribution infrastructure and this is expected to be a precursor towards introducing full retail competition into the Nigerian electricity market. According to the Consultation paper issued by NERC, the concerns which may arise are loss of customers and revenue, tariff rebalancing, systems operations amongst others.

The Lagos State Electric Power Reform Law 2018 In 2017, the Lagos State Government initiated the Light Up Lagos project which was an embedded power programme to generate and distribute approximately 3,000MW off-grid power for public utility in the State within a period of 6years. To provide for a legal framework to further the objectives of this project, the Governor of Lagos State on 8 February

2018 assented to the Lagos State Electric Power Sector Reform Law. The objective of this law in summary is to ensure adequate generation, transmission and distribution of electricity as well as a sustainable power supply in the State. This legislation saw the establishment of Lagos State Embedded Power Council (Council), the Lagos State Electricity Board, the Power Task Force, and the Rural electrification, penalises power theft and other such offences, and makes available State Government intervention in key areas of power.

Projections The Energy sector in 2019 appears to be positioned for a steady rise.

With these current innovations in various regulations and policies in the past year, the expected impact in 2019 are quite extensive.

The MAP regulation in the power sector would create massive employment opportunities for Nigerians in 2019 as the distribution of meters across the country is labour intensive and will require recruitment of persons to carry out these functions.

Also, the Regulation will further ensure the transfer of technology to Nigeria as well as promote foreign direct investment in Nigeria among others.

In relation to the Eligible Customers Regulation, the Regulation may result in a loss of majority of DisCos’ highest-paying customers, leaving them with lower-demand customers, who have minimal willingness to pay for electricity. The eligible customers declaration will reduce bottlenecks with DisCos and GenCos in revenue collection.

In the gas sector, the new gas flaring policy will provide a structure and platform that will enhance the viability of such projects; reduce gas flaring which benefits the eco-system and present a market-driven solution to the benefit of the Nigerian economy.

One of the major government expenditures for 2019 in the oil and gas industry is the provision of N305 billion ($1 billion) for under-recovery by NNPC on PMS (Premium Motor Spirit or Petrol) in 2019 Budget. This will help reduce the problem of fuel scarcity as the NNPC will be the sole importer of crude oil subsidized by the government.

Finally, taking into consideration, the fact that the national elections hold this year, the implementation of some of these regulations may be slightly delayed and investment may also reduce, as investors would be looking for stability in government and its administration. The possibility of a change in government which may also signal assent to the PIGB and possibly resurrection the 3 other Petroleum Industry Bills by the National Assembly.

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Markets + Finance ‘Providing proprietary research, commentary, analysis and financial news coverage unmatched in today’s market. Published weekly, Markets & Finance provides all the key intelligence you need.’

Transcorp’s profit margins hit 3 year high as foreign exchange loss wanes BALA AUGIE

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alentine Ozigbo touches a finger to his temple as he peruses files well arranged on his table.

The tall, dark, and handsome newly appointed president and chief executive of Transnational Corporation of Nigeria (Transcorp) Plc, takes a deep breath, looks up, and stares into space like someone who can see the future through the eye of an eagle.

It is a moment of candour for Ozigbo as the company he was given mandate to manage defiled the laws of nature by recording strong growth in revenue, profit, and margins to end 2018 financal year amid a tough and unpredictable macroeconomic environment.

Undoubtedly, he has a magic finger and anything he touches turn to gold.

It will be recalled that during his stint as chief executive of Transcorp Hotel- a subsidiary of Transcorp Group- he transformed the company into a cash cow and world class hotel and hospitality business.

Shareholders and investors can go to bed with two eyes closed because Ozigbo will work hard to ensure that they drink wine, poured from a flagon, into a goblet; that means the 6” feet plus man will deliver a higher return to owners of the business by maximizing profit and minizing costs.

Introduction Transnational Corporation of Nigeria (Transcorp) Plc has released its 2018 audited financial statement that showed the conglomerate giant

Valentine Ozigbo, President/Group CEO, Transcorp Plc

recorded revenue and profit growth.

Also, the company has reduced the amount of debt in its book as evidenced in improved leverage ratios while the introduction of new foreign exchange regime by the central bank in 2017 helped reduce foreign exchange losses, and, hence, adding impetus to profit margin.

Financial Performance for 2018 For the year ended December 2018, Transcorp’s revenue increased by 22.92 percent to N104.16 billion from N80.28 billion as at December 2017.Revenue has been growing at steadily since 2014 when it was N41.33 billion.

Revenue from power, which makes up 82.15 percent of Group sales, increased by 30.10 percent to N86.73 billion in December 2018 from N66.41 billion as at December 2017.

Power and hospitality segment

have always been a major driver of top lines in the last five years.

The conglomerate giant’s net income surged by 94.52 percent to N20.62 billion in December 2018 as against N10.607 billion as at December 2017.

This is best bottom line performance since 2016 when foreign exchange loss of N14 billion brought on by the devaluation of the currency resulted in a loss after tax of N1.12 billion.

2016 was an horrendous year for Transcorp as incessant attacks on oil facilities by the Niger Delta militant resulted in shortages of gas supply where daily generating of subsidiaryTranscorp Power Limited-went down from 600MV to 280MV. But Transcorp started turning each Naira invested in sales into higher profit when relative calm was restored in Niger Delta region and stability in the foreign exchange market added impetus to margins.

The company’s net profit margin increased to 19.57 percent in December 2018, this compares with 11.08 percent recorded in 2017, -0.01 percent, in 2016; 2.32 percent in 2015, and 3.68 percent in 2014.

Gross margins moved to 46.32 percent in the period under review from 45.36 percent as at December 2017. The chart shows 2017 figures are lower than the recession period.

That means the conglomerate giant operating performances have been impressive.

Earnings Before Interest and Taxation (EBIT) margins, another measure of operating performance, increased to 33.26 percent in December 2018 as against 32.26 percent the previous year, albeit lower than the 34.11 percent recorded in 2016.

“We’re proud to have ended the year on a high-note while sustaining a strong performance, which is a reflection of our sound business strategy,” said Valentine Ozigbo, Transcorp’s President and Chief Executive Officer, who took over at Transcorp in January 2019.

“This result was achieved due to the increased revenue from the power and hospitality segments of the group.

In addition, we were able to cut down on our loss from Forex arising from financing activities by”... said Ozigbo.

Indeed Ozigbo is on point as a benign foreign exchange environment helped reduce finance costs to N14.22 billion in December 2018,this compares with N12.74 billion in 2017, and N26.64 billion in 2016.

Times interest coverage ratio improved to 2.71 times operating income in 2018, compared to 0.77 times in 2016.This means the company’s operating income can cover interest expense. A ratio below 1.50 is unhealthy and suggests a company is at tipping point of bankruptcy.

The amount of debt in the capital structure of the Nigerian

conglomerate has been ebbing since the recession period as debt to equity ratio fell to 106.14 percent in December 2018 from 114 percent in 2016. ”Transcorp Power Ltd has continued to explore opportunities created by the eligible customer framework initiated by the Federal Government.

We are at an advanced stage of negotiations with a number of eligible

BD MARKETS + FINANCE Analysts: BALA AUGIE

customers, which will translate into transactions in the months ahead,” said Ozigbo.

“Our hospitality subsidiary, Transcorp Hotels Plc, also maintained its history of profitability in 2018, displaying the impact of our recent US$100m upgrade at the Transcorp Hilton Abuja and the immense value placed on the hotel’s best-in-class hospitality services,” Ozigbo.

Tuesday 19 February 2019

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TALKING POINTS The Wizard of Shaving 9%: Harry’s, an American subscription service for shaving and personal care products, accounts for 9% of all online razor sales. + Twitter’s Big Bet 76%: Twitter invested 76% of its revenue on research and development in 2013. + Digital Shortage 26%: McKinsey & Company and the McKinsey Global Institute found in a survey that a mere 26% of worldwide sales were completed online. + Bad Business 95%: According to research from Kronos and Future Workplace, 95% of human resources leaders say that burnout is a main source of employee turnover. + Welcome to the Boardroom 248: Women accounted for 248, or 31%, of new board directors at some of the largest publicly traded U.S. companies in 2018.+ Economic Washout Last November the U.S. government reported its prediction that gross domestic product would shrink by more than 10% by the end of the century if nothing was done to reduce global warming.

When your boss is shutting you out, find out why

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oes it seem like your boss is shutting you out? Excluding you from crucial meetings, not answering your questions or ignoring your requests for support? This kind of situation is frustrating, especially if you don’t know why your manager is acting that way. The first thing to do is to verify whether your perception of what’s happening is accurate. Are your colleagues having similar experiences with the boss? If not, you may be missing some crucial context or information. If your perception is correct, think about what might have gone

To improve your work-life balance, change your mindset

I

wrong and how you can rebuild the relationship. Have you overstepped in some area, or handled a project in way your boss didn’t like? You’ll likely have to initiate a conversation; try to show that you value your boss and want to set things right: “I realize that you haven’t wanted me to coordinate with marketing the way I used to. Have I done something that you felt didn’t represent the team well?” Take any feedback to heart, and use it to work on gaining back your manager’s trust.

(Adapted from “What to Do If You Think Your Boss Is Shutting You Out,” by Liz Kislik.)

What to do when a promotion is threatening a work friendship

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this, take a hard look at your company’s culture. Does your team measure success by how long people spend at the office, or by whether they get their tasks done on time? If it’s the former, something needs to change — and you may need to lead that change. If it’s the latter, think about what’s stopping you from changing how you spend your time.

(Adapted from “You Can Be a Great Leader and Also Have a Life,” by Brigid Schulte.)

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aving friends at work is good for your engagement and productivity. But what do you do when you’re up for a promotion that a work friend also wants? First, step back and get some perspective. Remind yourself that this is just one of many promotions that will come up in your career. Second, remember that the friendship is probably more important than who has what job. Talk to your friend about the situation, and defuse any tension that exists. Be clear that you

Expertise It’s in our DNA FirstBankofNigeria

don’t want to let the promotion affect the relationship.

Finally, keep your feelings of self-worth in check. Promotions can be arbitrary and subjective; the decision isn’t always about who is better for the job, and it may even come down to factors outside your control. Think about how you’d like to react if the promotion doesn’t go your way — that way you’ll be ready for whatever happens next.

(Adapted from “When You and Your Friend Both Want the Same Promotion,” by Emma Seppälä and Christina Bradley.)

H

ow do you coach an employee who seems beyond help? Maybe he or she is arrogant, is tactlessly blunt or lacks empathy. Sometimes you actually can’t help him — but it may be that his behavior is misunderstood or misdiagnosed. To make sure you have an accurate view of the person, check your assumptions and judgments. Look beyond the obvious symptoms and think about what might underlie his destructive behavior. Observe patterns and notice when there are breaks in those patterns; these deviations can provide important clues.

In an ever changing economy, with 125 years of serving YOU, we remain strong, trustworthy, dependable, safe and consistent.

You can be confident that we will continue to deliver innovative banking products and services which seamlessly and conveniently suit your lifestyle needs.

Visit www.firstbanknigeria.com to learn more about us.

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To be more productive, become more efficient Do you find yourself struggling to finish your to-do list — even after prioritizing, planning and delegating? If so, consider whether you could work more efficiently. Small changes to your work style could end up saving you hours each week. For instance, before eagerly jumping into a new project, talk to stakeholders about their expectations so that you know what to prioritize. Maybe they want a detailed project plan, but maybe a rough outline would get the job done too. It’s also helpful to ask yourself if you could reuse any past work to complete the project at hand. Say you’re preparing a presentation to senior leaders — can you pull language from the proposal it’s based on, or draw on other materials to flesh it out? Lastly, use timeboxing to organize your efforts: Decide in advance how long you will spend on each task, and stick to it. Even if you don’t finish everything in the allotted time, timeboxing will help you focus for short bursts of productivity.

(Adapted from “5 Strategies for Getting More Work Done in Less Time,”

by Elizabeth Grace Saunders.)

Coaching an employee whose behavior seems incurable

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

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Tips & Talking Points

Harvard Business Review

t’s tempting to think the only way to get to the top is to work all the time.

But you can be an effective leader and maintain a healthy work-life balance. It all starts with your mindset.

Stop thinking of yourself as someone who’s willing to do whatever the job asks, and start thinking of yourself as someone who does great work and also has a life outside of it. Plan how you’ll set aside and prioritize time for family, friends, and hobbies; consider where you have flexibility and where you need more of it. To do

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Consider, for example: Are there certain people this person works with especially well or poorly?

Specific circumstances in which he shines or falters? Why is that the case? And then come up with a broad range of ways to help the employee. Until you identify what’s really causing the problem, it’s hard to be sure about how to fix it. Avoid one-size-fits-all approaches, and think through what the employee truly needs in order to improve.

(Adapted from “When a Leader Is Causing Conflict, Start by Asking Why,” by Ron Carucci.)

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Tuesday 19 February 2019

Solid Minerals business

Gold refining company to boost the economy, create jobs Stories by JOSEPH MAURICE OGU

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he first gold refining company in Nigeria is poised to contribute to the nation’s economic growth when it starts operation, H2 2019, as it is in a position to create jobs for Nigerian miners.

On December 13, 2018, BussinessDay showed that investors, both local and foreign, were showing more interest in solid minerals in Nigeria and as such, acquiring new mining sites.

This interest arose from the attention that government is paying to the mining industry.

One company that is taking the lead in the foray into the mining industry in Nigeria is Kian Smith Trade & Co. Limited. The company is set to break the odd in gold refinery in Nigeria, through its subsidiary, Kian Smith Gold Refinery.

Kian Smith Gold Refiner y emerged the first company to be awarded a license to refine gold in Nigeria by the Federal Government.

With its plant located in Ogun State, the company is set to open the first gold refinery in Nigeria, in June, 2019.

When operational, it will serve as

a gateway to the small and medium scale miners across the country where it plans to locally source raw materials for its refinery. Miners in Ile-Ife, Ibadan, Ilesha, Zamfara, Kwara, Kaduna, Kebbi and other places are expected to benefit from the rush.

“Getting gold locally will not only give value returns to the local miners, but will equally improve the economy of the country because raw materials are sourced locally

and refined locally,” said Michael Jones of Davies & Jones Inc., a South Africa-based gold mining company.

Nere Teriba, Vice Chairman, Kian Smith Trade & Co. Limited, indicated that the company was expected to triple its output by 2024, improving from its initial production of three tonnes of gold and one tonne of silver per month this year, to ten tonnes of gold and three tonnes of silver per month by 2024.

In addition, the company will

leverage on the West African gold route to serve as hub to the West African gold market to the rest of the world.

According to the company’s website, “There is presently no internationally recognized gold ‘market centre’ in Africa. West Africa has a thriving underground gold economy that if regulated, could unlock the West African region as the gold market Centre of Africa.

“Despite the mostly informal structure of the gold market, Nigeria has one of the largest economies, the largest population in Africa and is a top contender for largest emerging market for luxury goods in Africa.”

Currently, mining and quarrying contributed 8.74% to the nation’s GDP in 2018, according to data from National Bureau of Statistics (NBS), of which mining contributes only 0.3%, according to Ishiaq Akinkunmi, a financial analyst in Lagos.

This low contribution to the economy from solid minerals sector is attributed to the informal nature of mining, as activities in the sector are largely undocumented.

The company equally plans to play big in the refined gold market by supplying its products to the Central Bank of Nigeria, jewelry and electronic companies.

Untapped solid minerals in Nigeria, opportunities for investors

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n all ramifications, Nigeria is immensely endowed with numerous mineral resources. Every state in the country has some form of mineral deposit, waiting to be tapped for economic prosperity.

According to Nigerian Investment Promotion Comm i s s i o n (NIPC), Nigeria has 45 different solid minerals buried in various locations across the country. But these minerals are largely untapped. Both local and foreign investors can leverage on this multi-billion-dollar market.

In its Economic Recovery and Growth Plan 2017 to 2020, the Federal Government of Nigeria declared that solid mineral sector is one of the fast-growing sectors of the economy. The recognition of this is a window opening for investors to tap into the promising sector in Nigeria.

The solid minerals deposits in Nigeria are worth several trilliondollar market, yet Nigeria losses billions of dollars every year for importing things that can be produced locally using these items.

“The commercial value of Nigeria’s solid minerals has been

estimated to run into hundreds of trillions of dollars. The domestic mining industry is underdeveloped, … leading to the importation of commodities that can be produced locally,” NIPC says in its document.

Starting with gold, we begin a presentation of some of the major solid minerals found in Nigeria.

Gold One of the 45 mineral deposits in Nigerian soil is gold. As the world moves from paper money to electric money, gold remains a major source of keeping and preserving valuables and foreign reserves.

When paper money disappears, gold remains.

According to a leading economist, Ken Rogoff, in his book, “The Curse of Cash”, gold’s role is likely to increase as cash fades away.

Nigeria has a good number of gold deposits across the country. Abuja, Kaduna, Katsina, Kebbi, Kwara, Niger, Zamfara, Osun are among the states where gold deposits are waiting to be commercially tapped.

Most of gold mining activities are being carried out by the artisanal miners who are not licensed and regulated.

Regulating and tapping into this sector

will mean increased revenue for the government, returns for the investors and profits for companies.

“At the moment, government isn’t getting any revenue from the gold mining sector in Nigeria because mining is being done illegally. Regulating the sector and licensing local miners will add to the government’s revenue,” said Acheabong Boateng, CEO of Boateng Gold Inc., Kumasi, Ghana, in a telephone conversation.

However, these illegal miners may not have the financial

st re ng t h to a c c o m m o date t h e demands from the government.

Talking about “the conditions for licensing, all these smallscale miners can’t meet it, and these are the people at the local communities,” said Muda Yusuf, Lagos Chamber of Commerce and Industry.

The data from NIPC says that “Nigeria loses about $40 billion a n nu a l l y i n u n e x p l o i t e d g o l d alone.” This is a good market for somebody, somewhere!

Mining capable of transforming African economies, enriching citizens – Ghana’s president

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he mining industry is capable of transforming African economies as well as enriching its citizens, if its activities are carried out on level playing grounds for all the stakeholders, Ghana’s president has said.

President Nana Addo Dankwa Akufo-Addo spoke at the just concluded 2019 edition of Investing in African Mining Indaba, London.

“Mining can help rapidly to grow Africa’s manufacturing sector, and be the champion of economic growth on the continent,” Akufo-Addo said while addressing the biggest gathering of leading mining investors.

Akufo-Addo recognizes that African continent has the mineral resources that are being sought after by the world, therefore the continent should not be among the poorest people in the world, if the proceeds from the resources are evenly distributed among the state and the mining companies.

The president of the country with the third world gold mining company, AngloGold Ashanti, said African people do not benefit from the wealth of their mineral resources because the mining companies tend to take everything for themselves. He noted, for instance, that in some cases, African leaders negotiate sharing formula poorly with the mining companies which at times are too vague for the people to understand, whereas companies should be transparent, accessible and easily understandable by citizens.

“Communities should be able to examine mining contracts, find out how much revenue has been generated, and how, and on what it is being spent,” Akufo-Addo said.

The president warned that Africa would achieve prosperity if raw materials extracted in Africa were used for production in Africa, without being exported.

“We cannot, and should not, continue to be merely exporters of raw materials to other countries. The value chain of mineral extraction has great potentials for job creation, and can form an essential basis for the transformation of economies around the continent,” he said.

According to Nigeria’s Ministry of Mines and Steel Development, the country currently houses over two million illegal miners. Currently, mining activities only contribute 0.3% to the Gross Domestic Product (GDP), simply because most of the minerals are exported out of the country through illegal routes.

According to the Minister, Abubakar Bawa Bwari, the ministry is prepared to position mining to increase its contribution to GDP from its current 0.3% to 3%, by the end of 2019.

Recently, the government issued refinery license to the nation’s first gold refinery company based in southwest Ogun State. Sourcing its resources and refining locally will contribute to the nation’s GDP, the company, Kian Smith Gold Refinery, has said.

Tuesday 19 February 2019

BUSINESS DAY

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Live @ The Exchanges Nigerian Breweries stocks on offer as full year scorecard disappoints Stories by Iheanyi Nwachukwu

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i g e r i a n Breweries Plc on Monday February 18 released its financials for the full year ended December 31, 2018.

The company reported a disappointing after tax profit (PAT) of N29.42billion as against N46.63billion in 2017, representing a decline 36.9percent. The brewer posted net revenue of N324.38billion in 2018 against N344.52billion in 2017, down by 5.8percent.

Following this dismal outing last year as evidenced in Nigerian Breweries top-to-bottom line results, the stocks were on offer at the local Bourse, leading to a decline of N8 or 9.64percent on Monday, from N83 to N75. At this price, the stock nears

its 52-weeks low of N74 as against a 52 week high of N136.

This development pushed the year-to-date (ytd) returns from Nigeria Breweries stocks further into the negative territory of 12.28percent. The company recorded Gross Income of N126.90billion from a high of N143.49billion, representing a decline of 11.6percent.

Nigerian Breweries reported Profit Before Tax (PBT) of N29.42billion in 2018 as against N46.63billion in 2017, which implies a decline of 36.9percent; while its Profit After Tax (PAT) stood lower at N19.43billion against N33.04billion in 2017, which implies a decline of 41.2percent.

On shares outstanding of 7,996,902,051 units, the market capitalization of Nigerian Breweries Plc stood at N599.767billion

as at close of trading on Monday.

Meanwhile, the Board of Directors of Nigerian Breweries will be recommending to the Company’s Shareholders at the Annual General Meeting coming up on May 17, 2019 a total dividend of N19.4 billion, that is, N2.43kobo per share representing a hundred percent dividend pay-out ratio.

The Company had earlier, in 2018, paid an interim dividend of N4.8 billion which translated to N0.60kobo per share; thus, the final dividend will be N14.6 billion, that is, N1.83kobo per share.

If the proposed final dividend is approved, this will become payable on the 20th of May, 2019 to all Shareholders whose names appear on the Company’s Register of Members, at the close of business on the 6th of March, 2019.

Transcorp impresses market with full year profit of N20.6bn

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ransnational Corporation of Nigeria Plc (Transcorp) has released its audited results for the year ended December 31, 2018, with a record 94 percent growth in Profit After Tax (PAT) of N20.6 billion in 2018 compared to N10.6 billion PAT in the prior year.

The Group recorded an unparalleled improvement within the year as turnover grew by 30percent to N104.2billion.

Profit Before Tax (PBT) increased to N22.4billion from N12.3billion in 2017, depicting an 82percent year on year growth.

Transnational Corporation of Nigeria Plc (Transcorp) is a publicly quoted conglomerate with a diversified shareholder base of about 300,000. Our portfolio comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Our notable businesses include Transcorp Hilton Abuja, Transcorp Hotels Cala-

bar, Transcorp Power and Transcorp Energy.

“We’re proud to have ended the year on a highnote while sustaining a strong performance, which is a reflection of our sound business strategy,” said Valentine Ozigbo, Transcorp’s President and Chief Executive Officer, who took over at Transcorp in January 2019.

“We will continuously strive to deliver significant value to our stakeholders while achieving our long-term goals,” he said.

He further stressed that “This result was achieved due to the increased revenue from the power and hospitality segments of the group.

In addition, we were able to cut down on our loss from Forex arising from financing activities by 30percent yearon-year as we experienced a relatively stable exchange rate during the fiscal yearended 2018, this no doubt impacted our Profit before tax as it soared 82percent year-on-year.”

Ozigbo added

“Transcorp Power Ltd has continued to explore opportunities created by the eligible customer framework initiated by the Federal Government. We are at an advanced stage of negotiations with a number of eligible customers, which will translate into transactions in the months ahead. Our hospitality subsidiary, Transcorp Hotels Plc, also maintained its history of profitability in 2018, displaying the impact of our recent US$100m upgrade at the Transcorp Hilton Abuja and the immense value placed on the hotel’s best-in-class hospitality services.”

Reflecting on the results, the Chairman of Transcorp, Tony O. Elumelu, stated, “We remain committed to our purpose of improving lives and transforming Nigeria by powering our industries and businesses while providing our local and international guests with unrivalled hospitality services. This is our way of creating sustainable value for all our stakeholders.”

Coronation Merchant Bank, JP Morgan, Barclays, Citi Bank, Morgan Stanley ranked among world’s best investment banks

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lobal Finance magazine has named its 20th annual World’s Best Investment Banks in an exclusive survey to be published in the April 2019 issue. Winning organizations will be honoured at an awards ceremony on the morning of October 19, 2019 at the National Press Club in Washington, DC during the IMF/World

Bank Annual Meetings.

J.P. Morgan was honored as the Best Investment Bank in the world for 2019 while Coronation Merchant Bank was recognized as the Best Investment Bank in Nigeria along with Barclays, VTB Capital and DBS Bank as the Best Investments Banks in Western Europe, Central & East Europe and Asia – Pacific regions re-

spectively.

Investment banking plays a key role in moving the global economy forward. Our awards highlight the investment banks that stand out in delivering quality insight and innovative deals that meet their clients rapidly changing needs,” said Joseph D. Giarraputo, publisher and editorial director of Global Finance.

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INSIGHT

The Dating 101 Guide to Recruitment: An introduction

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Misan Rewane Rewane holds an MBA from Harvard and 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.

Ships Passing in the Night client of ours recently had his heart crushed. For months, he had pursued a candidate for a pivotal managerial position within a new business unit, but she had turned him down. He doubled his initial offer—and still she turned him down. He was floored by her rejection. She explained that she’d just been promoted and was determined to remain with her current company and help build it. As much as I didn’t want to add to his grief, I had to point out to our heartbroken client that the depth of her commitment, loyalty, and sense of ownership shows that she really was “the one”. She really was the perfect candidate.

derstand why their turnover is so high, despite all of the benefits they believe they provide to their employees.

Our client was in the same ship. He had laid his cards on the table and in the process had gotten his heart broken. As with many a frustrated recruiter, things hadn’t panned out the way he had anticipated, so he found himself asking the same questions all employers in the same situation ask (or should be asking) themselves:

An All Too Familiar Tale Many, if not most, employers may find that this story of disappointment is a familiar one. Some discover their perfect candidate only for their efforts to be thwarted by the very qualities that attracted them to said candidate in the first place: commitment, loyalty, ownership. Others laboriously swim through an ocean of potential without finding that one good fit. Still others (and they are many) make what they believe to be a great hire, only to later wonder where they went wrong.

And many employers can’t un-

Not unlike the questions most people ask themselves after a dating/relationship disaster.

Could things have worked out differently?

Where did we go wrong?

What did we miss?

Is it them?

Is it us?

Twin Souls The recruitment process shares a number of similarities with dating and relationships.

Both require a considerable investment of time and effort.

Both can be incredibly rewarding but can also be confusing and a colossal source of frustration. This is especially true today, despite technology profoundly changing the way we interact and hire; tech tools and online channels may facili-

tate much of the process (even when connections are made through personal networks or word-of-mouth), but the challenges of Nigeria’s unique environment often make these tools unreliable or even completely untrustworthy. Getting the one who ticks all the boxes can therefore be a problematic task—whether you’re looking for love or the right hire. It isn’t, however, an impossible task.

As you know, dating has its rules and if you want to find The One, you need to play by the rules.

Not surprisingly, the experiences of WAVE clients as well as our own experiences reinforce this core truth; as with dating, a firm understanding of a number of fundamental principles and an informed implementation of these principles will lead to long-term (as well as short-term) success.

that every employer needs to begin making great additions to their team.

The Dating 101 Guide to Recruitment series is an examination of these principles.

• Performance Management How do we help each other be a better partner?

About the Series The Dating 101 Guide to Recruitment is designed to help you streamline (or completely overhaul) your recruitment policies and processes. It will tackle, from the perspective of dating, the seemingly labyrinthian process of securing that perfect candidate. We’ll do a deep dive into the key decisions, tools, and actions

• Growth & Retention Will we grow together? How do we grow old together?

My hope is that this series will resonate with you and guide you and your organisation towards becoming a more effective recruiter and employer. That way, you can find The One and be sure that what you’ve found is a match made in heaven.

We’ll cover 6 main topics, each in its own instalment: • Audit & Self-Reflection Who are you? What do you stand for? What do you have to offer?

• Attracting Talent How do you put yourself out there?

• Screening Talent What are you looking for? Do they check all the boxes? How do you know if they’re really The One? • Onboarding & Socialisation How do we ensure alignment?

How then shall we live?

34 BUSINESS DAY NEWS Investors sell Nigerian assets on election...

Continued from page 1 elections for one week, hours

before polls were due to open. It cited logistical reasons and denied political pressure had played any part.

“The economic consequences of this decision will be felt significantly, as what was supposed to be a smooth process is now mired in lengthened uncertainty and controversy, thereby shaking investor confidence and somewhat eroding the renewed interest from both foreign and domestic investors,” Lagos-based analysts at Vetiva Capital said in a February 18 note.

One-year non-deliverable naira forward opened at a quote of N401 per dollar, compared with N397 in the

previous session. Stocks dropped 1.61 percent after they had climbed past a three-month high on Friday, and the delay hit Nigeria’s dollar-denominated bond yields and could affect demand at a sovereign debt sale this week.

The Federal Government plans to re-open its existing 5-year, 7-year, and 10-year notes as it looks to raise N50 billion each across these tenors in its February bond auction.

Yields on the country’s benchmark bond trended upwards Monday to close at 14.78 percent, from 14.68 percent last Friday. The naira weakened to N362.07/$, from N361/$ Friday.

“With the nation speculated to lose roughly $1 billion in GDP for

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postponing the elections, the nearterm economic outlook has gone sour,” said Lukman Otunuga, an analyst at FXTM Research.

“This week, we expect to see a furtherance of this bearish trend as investor sell-offs may persist in line with the overall weariness stemming from the current political climate. Therefore, we advise investors to trade cautiously and take advantage of maturities with attractive yields,” Otunuga said in a February 18 note to clients.

Before the sudden delay in the February 16 elections, investors who had fled the market in the months leading up to February over political uncertainty ahead of the general elections had a change of mind and sought to take early positions in expectation for a post-election rally.

An indicator of increased foreign

appetite for naira assets in the leadup to the elections showed up in the value of transactions done in the Investors and Exporters foreign exchange market, a market where foreigners buy and sell dollars.

The value of transactions in the window topped a billion dollars, precisely $1.74 billion, in the weekended February 8, 2019, an increase of 107.14 percent when compared to the $0.84 billion reported in the previous week ending February 1, 2019.

The increased foreign inflows meant the naira strengthened against the dollar, equities gained and bond yields fell, all in a signal that investors expected credible and peaceful elections February 16.

But that optimism has turned sour with the eleventh-hour postponement of the elections.

“The sudden postponement few hours to the elections was a sad com-

Tuesday 19 February 2019

mentary. It has deepened Nigeria’s political risk with dire consequences on investment decisions,” said Sola Oni, a Lagos-based stockbroker.

Nigeria has a history of election delays after postponing the 2011 and 2015 votes. President Muhammadu Buhari was meeting with senior members of his party on Monday over the postponement and has urged voters to stay calm.

The main opposition rival, former Vice President Atiku Abubakar, said on Saturday that Buhari’s administration hoped to disenfranchise the country’s electorate by delaying the vote.

Analysts say the postponement could negatively affect Nigeria’s economic recovery.

“The effect on the wider economy also cannot be understated due to disruptions to key sectors including maritime, aviation, and oil and gas,” Vetiva Capital analysts added.

PDP, others disagree with Buhari on shoot...

Continued from page 2

L-R: Abiodun Afolabi, executive director, corporate affairs services, Total E&P Nigeria Limited; Etop Ikpe, CEO, Cars45; Bayo Rotimi, jury chair/CEO, Quest Advisory Services Limited; Yewande Zaccheaus, CEO/founder, Eventful Limited, and Imrane Barry, MD, Total Nigeria plc, at the Startupper of the Year by Total Challenge prize presentation ceremony in Lagos.

February 23: Nigeria’s date with...

Continued from page 1

Electoral Commission (INEC) few hours to the commencement of voting, citing what it said were logistical and operational

difficulties.

Mahmood Yakubu, INEC boss, at a stakeholders’ forum later on Saturday said the delay was necessary to give the commission time to address vital issues, which could affect its ability to conduct free and fair elections. Many INEC personnel in some states told newsmen there was practically no way elections could have held simultaneously in all parts of the country as sensitive election materials didn’t get to some states at all or got to some only on Saturday morning.

Expectedly, the two main political parties have been trading blames, accusing INEC of working in concert with the other to disrupt the polls.

While the ruling APC accused the opposition PDP of colluding with INEC to postpone the elections because it was not ready, the main opposition PDP blamed the ruling party for wanting to force INEC to withhold and stagger the elections, like it did in Osun State, which could give room for voter suppression and result manipulation in the rerun elections.

Regardless, the postponement of the elections just few hours before polling booths opened was a national embarrassment and reflects the weaknesses and failures of key state institutions to perform their routine functions. What is more, it has worsened Nigeria’s already negative image and heightened the perception that the country or its government could not be trusted or relied upon to honour its words, contracts or commitments.

“The sudden postponement few hourstoelectionperiod...hasdeepened Nigeria’s political risk with dire consequences on investment decision,” said Sola Oni, a Lagos-based stockbroker.

Oni said the shock caused by the announcement may jolt foreign portfolio investors (FPIs) and affect the country’s credit ratings.

But this is not the first time that national elections have been postponed in Nigeria. In 2011, INEC was forced to postpone the National Assembly elections even after voting had started because of logistics reasons. In 2015, on the instance of the government and security agencies, INEC was again forced to postpone the elections by six weeks ostensibly to allow the military conduct an operation to liberate the 17 local governments in Borno, Yobe, and Adamawa States that were under the control of the dreaded terrorist group, Boko Haram, and to allow for the conduct of the elections across all parts of the country.

President Muhammadu Buhari could hardly conceal his irritation with INEC for postponing an election that was only six hours away. According to the 76-year-old former general, INEC has no explanations for what the nation went through.

“INEC had all the time and resources. It didn’t have to wait six hours to the elections to announce postponement,” Buhari said on Monday while addressing his party officials.

Although the constitution and law provide for INEC’s independence, he said, the commission must definitely “account for its incompetence” after the elections.

“Definitely, INEC must explain to Nigerians what happened. The constitution and the law protect

INEC but they must not take us for granted,” Buhari fumed.

But with the president’s penchant to take the laws into his hands, disobey court orders and even unilaterally suspend the Chief Justice of the Federation without recourse to the law or constitution, no one would take the president’s threats lightly.

The president, also in his anger, forgot about democratic and human rights niceties and authorised security personnel attached to polling units to shoot ballot-box snatchers at sight.

“I am going to warn anybody who thinks he has enough influence in his locality to lead a body of thugs to snatch boxes or to disturb the voting system. He would do it at the expense of his own life,” Buhari warned.

But this clearly contravened INEC’s guidelines that prohibit all security agencies, including the army and police, from shooting at polling booths. The implication of the president’s threat of jungle justice is that the security agencies could shoot and kill just anyone and blame them for wanting to snatch ballot boxes.

This is an invitation to anarchy.

Immediately after the speech, many people took to social media to denounce the president’s resort to jungle justice with the hashtag #APCjunglejustice trending on twitter.

“We are in a democratic dispensation. The president’s order of shoot at sight is appalling. There is nothing democratic about a president that incites violence. We have laws and institutions to manage such offenders,” A Nigerian, who identified herself simply as Francisca, tweeted.

Meanwhile, INEC, in a bid to alley apprehensions about its preparedness, has released an activity time-frame leading up to the elections on Saturday.

•Continues online at www.businessday.ng

realised that there was a nationwide rejection of Buhari’s re-election bid, which threw them into a panic mode.

“President Buhari must, however, bear in mind that his resort to threats and scaremongering will not deter Nigerians from coming out en-masse to vote him out of office on February 23. We are aware that President Buhari, who had earlier boasted that nobody can ‘unseat’ him, is bent on using every dictatorial and tyrannical act to truncate the process of a free, fair and credible election,” it said.

The PDP said intelligence available to it shows that the Buhari Presidency had directed the leadership of INEC to immediately reshuffle the RECs in order to deploy compromised officials to manipulate the electoral process in Buhari’s favour, as they did with the police shortly before February 16.

It said the party was also aware of the pressure being mounted by the Buhari Presidency on INEC to cancel elections in some states and make others inconclusive so as to achieve Buhari’s objectives of staggered elections, not minding the crisis such will trigger across the federation.

Also reacting to the President’s threat to INEC, Eze Onyekpere, lead director, Centre for Social Justice, said there was a procedure for calling either the chairman or members of INEC to account or to discipline them. He added that if the President was not happy with what had been done, he should wait until after the elections to invoke the process.

“It is not proper for such a threat to be coming at this stage of election preparation so as not to put the commission under undue pressure. It is wrong and should be withdrawn,” Onyekpere said.

“Creating fear and panic in the minds of key officials of the electoral umpire would not augur well for the exerciseofindependenceandimpartiality

in the forthcoming elections,” he said.

On the shoot-at-sight order that Buhari gave to security operatives to unleash on ballot-box snatchers during the election, Onyekpere said the President by his statement had directed law enforcement agencies to take laws into their hands by arbitrarily executing anyone suspected of ballot snatching or violence.

“This directive clearly violates the constitutional guarantee of the right to life. The deprivation of life can only be carried out in obedience to the order of a court of competent jurisdiction or in circumstances recognised as the legitimate use of force in selfdefence or defence of property. The scenario painted by the President is not one of such exceptions to the general rule,” Onyekpere said.

“Evidently, the President is out of touch with the Constitution of the Federal Republic of Nigeria 1999 which he swore to uphold and this shows that the military mindset is till dominant in his acts and omissions. The President should immediately withdraw this statement and apologise to Nigerians andgivetheproperdirectiveofarresting and prosecuting persons who are suspected of committing a crime,” he said.

Onyekpere reminded members of the security forces that obedience to an unlawful order was not a defence to the crime of murder or any other violation of human rights or the criminal laws of Nigeria and that any security man who obeys such misguided order obeys it at his peril.

A member of the ruling APC also told BusinessDay on condition of anonymity that the President spoke in anger over the disappointment of the postponement of last Saturday’s election. He noted, however, that the shoot-at-sight order for ballot snatching appears “dictatorial”, adding that even the threat to sanction INEC was not in order especially at this critical time of elections.

How Lagos power tussle cost Nigeria ABAT...

Continued from page 2

formalised and there’s no way the contractor could have continued work under the uncertain political atmosphere that enveloped the state at that time without a sealed contract papers. Who would pay for the job? It was only expected that the contractor would pull out,” said the source.

The source added that the contractor and the state government are currently in discussions for a formal award of the contract and this might take the next three weeks to finalise.

What this means is that the governorship/state Houses of Assembly elections slated for March 9 would have been held and winners emerge.

The outcome of the election, there-

fore, would decide the fate of the all-important truck terminal project.

When contacted, Taiwo Olufemi Salaam, permanent secretary, Lagos State Ministry of Transportation, linked the delay in the take-off of the project to the political situation in the country.

Salaam, however, also partly blamed it on the delayed 2019 budget of the state, saying “the 2019 budget has been presented”.

Like many other projects initiated by the current administration, the ABAT truck terminal has suffered from what many believe to be power tussles among political gladiators in the state.

•Continues online at www.businessday.ng

Tuesday 19 February 2019

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35 NEWS

BUSINESS DAY

Help expose drug peddlers, NDLEA tells Air Peace as carrier sets for international operations IFEOMA OKEKE

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ational Drug Law Enforcement Agency (NDLEA) has urged Air Peace crew to consider their role in exposing drug couriers as a commitment to save lives.

Speaking during an eightday training for Air Peace cabin crew members, opened at the weekend in Lagos, the agency warned that those in-

Kaduna Electric begins network maintenance, residents to experience power shortage ABDULWAHEED ADUBI, Kaduna

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anagement of Kaduna Electric has reiterated its commitment towards ensuring that its customers get more qualitative power supply, especially during the coming rainy reason.

In its efforts, the company has begun a series of network maintenance that will result in interruptions in power supply within its territory. Its said the maintenance was necessary ahead of the coming rainy season to ensure improvement in power supply.

The company made this known in a statement signed

by Abdulazeez Abdullahi, its head of corporate communication, in Kaduna on Monday.

According to the statement: “We wish to inform our customers that in order to ensure sustained and qualitative power supply during the coming rainy season, we have scheduled a series of network maintenance across our franchise states.

“The maintenance work which will take place over a three-month period will see our technical team engage in tree trimming exercise, replacement of broken wooden cross arms and poles and also replacement of weak jumpers and cracked insulators.

“During the period of the maintenance, power supply shall be interrupted in affected areas. We however assure that regular supply will be restored as soon as work is completed.”

It apologised to its customers for the interruptions and assured that steady power supply would resume once the work was completed.

volved in drug peddling risked killing themselves or being executed if caught in some countries of the world with harsh anti-drug laws.

The training is part of the sensitisation programme for the carrier’s crew in preparation for the airline’s international flight operations billed to launch soon.

Air Peace plans to fly to Dubai, Sharjah, London, Houston, Johannesburg, Guangzhou-China, Mumbai, among

other international destinations. The carrier recently operated demonstration flights to Port Harcourt, Kano, Freetown, Dakar, Johannesburg, and Sharjah as part of the requirements for induction of the Boeing 777 aircraft it plans to deploy for its long-haul services.

Florence Opia, Air Peace cabin services manager, Chris Iwarah, corporate communications manager, and Monsuru Akinbola, chief security officer, had recently paid a visit

to the Murtala Muhammed International Airport Command of the NDLEA to share ideas on proactive options to prevent drug couriers from attempting to peddle drugs using the airline’s international flights.

Speaking at the training, NDLEA’s three-man team comprising Abbas Abdullahi, principal staff officer (administration and logistics), Murtala Muhammed International Airport Command,

Akan Francis Inam, intelligence analyst, and Okwunjor Edache, staff officer (evidence collection/exhibit keeping), said drug couriers were daily devising new means of beating the system.

The team, however, said the anti-drug agency was always a step ahead of the drug peddlers, who were frequently being exposed by NDLEA operatives.

They urged Air Peace crew to be calm and cautious in observing passengers, say-

ing drug couriers always left a trail. The NDLEA operatives warned the airline’s crew not to trust anyone and desist from making assumptions, saying drug peddlers could put up deceptive appearance to escape being exposed.

The NDLEA team urged Air Peace crew to assist the agency in checking drug peddling to protect Nigeria’s image and save its citizens from being executed in some countries with tough anti-drug laws.

36 BUSINESS DAY NEWS

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TCN completes installation of 300MVA power transformer in Alaoji to increase supply capacity HARRISON EDEH, Abuja

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n line with Federal Government’s programme on incremental power, the Transmission Company of Nigeria (TCN) has completed the installation and commissioning into service, one brand new 300MVA 330/132/33kV power transformer in its Alaoji Transmission Substation.

The TCN has also transported a brand new 150MVA, 330/132/33kV power transformer from the port to Kumbotso Transmission Substation in Kano, to replace one of the four 150MVA transformers taken out for repairs.

In a statement signed by the general manager, public affairs, Ndidi Mbah, TCN, said the brand new 300MVA power transformer, energized on February 12th, 2019 in its Alaoji Transmission Substation, has increased the station’s installed capacity from 450MVA to 750MVA which makes it the biggest substation in the southern part of the country and has also made the station consistent with redundancy requirement of N-1.

TCN noted that with the development, TCN has increased it capacity to supply Enugu Distribution Company for onward supply to particularly Abia North (Ohafia, Arochukwu, Item, Abriba) Imo State (Okigwe, Arondi-izuogu), parts of Ebonyi and Rivers State.

TCN further stated that the following projects under construction will also benefit from the newly energized 300MVA transformer; 4No 132kV substations at Okigwe (Imo state), Mbalano, Ohafia and Arochukwu (Abia State) which are awaiting

completion.

The newly energized 300MVA transformer will also enhance evacuation of power generated into the 132kV grid network from the Alaoji NIPP and Afam Power Stations. The installation of the transformer was carried out by Messrs Power Control with active support of TCN engineers in Aba SubRegion.

Meanwhile, the new 150MVA, 330/132/33kV power transformer arrived Kumbtso Transmission Substation Kano on the 15th of February, 2019, from Apapa Port in Lagos. Installation would commence immediately the transformer is placed on plinth.

According to the statement, the new transformer is an addition to the recently repaired 150MVA power transformer which got burnt five years ago in Kumbotso Substation - It is noteworthy that it is the first time a badly damaged150MVA was repaired in the history of Nigeria Power Sector.

The statement noted further that to the installation of the new 1X150MVA transformer is complete, the capacity of Kumbotso will become 4X150MVA and will further improve bulk power supply for onward delivery to Dakata, Wudil and Dan Agundi in Kano, Dutse and Hadeja in Jigawa State, Azare in Bauchi State, Katsina, Kankia, and Daura in Katsina and finally to Maradi and Gazawa in Niger Republic, respectively.

TCN reiterated its resolve to consistently contribute its quota in the power supply value chain by persistently upgrading and investing in the nation’s grid network in line with its carefully researched and documented Transmission Rehabilitation and Expansion Programme.

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he Growth and Employment Project, a $160 million World Bank-funded project, being implemented by the Federal Ministry of Industry, Trade and Investment has recorded huge impact in Federal Government’s diversification programme, contrary to claims on the poor impact of the project.

The Federal Ministry of Industry, Trade and Investment said in a statement that the programme had supported sectors that had high growth potential and create massive employment.

Contrary to concerns raised about the programme, the Federal Ministry of In-

dustry, Trade and Investment said in a statement that the project supported micro, small and medium-sized enterprises (MSMEs) operating in five high potential sectors of the economy, namely: ICT, entertainment, tourism, hospitality, light manufacturing, and construction.

It also offers more direct support to firms channelled through a platform- called the Business Innovation and Growth (BIG) Platform – to provide various trainings, technical assistance and grant schemes.

The statement clarified that the World Bank’s assessment rated the programme unsatisfactory and under performing in 2016, prompting the restructuring of the programme.

@Businessdayng

Tuesday 19 February 2019

Election: INEC rescinds earlier decision, lifts ban on campaign JAMES KWEN, Abuja

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ndependent National Electoral Commission (INEC) has rescinded its earlier decision that political parties should not resume campaign for the one week within which elections were shifted and lifted ban placed on electioneering campaigns.

According to INEC, media organisations are at liberty to accept, publish, broadcast and circulate campaign materials up till midnight of Thursday, February 21, but asked political parties and their candidates to abide by the extant laws governing campaigns.

INEC said it had also worked out in detail, concrete steps to be taken to ensure that election materials arrive at the polling units in good time for

prompt commencement of the polls on Saturday, 23rd February 2019.

Festus Okoye, INEC national commissioner and chairman, Information and Voter Education Committee disclosed this Monday night after several hours of meeting by the Commission in Abuja.

Okoye in a statement said, “the Independent National Electoral Commission (lNEC) met on Monday 18th February 2019 and reviewed its preparations for the 2019 General Elections re-scheduled for Saturday.

23rd February 2019 for the Presidential and National Assembly Elections and Saturday. 9th March 20l9 for Govemorship. State Assembly and Federal Capital Territory (PCT) Area Council Elections.

“It would be recalled that at the briefing held on Sat-

urday, 16th February 2019 at the Abuja International Conference Centre (AlCC). the Commission gave reasons for re-scheduling the polls and released a new Schedule of Activities leading up to the elections.

“The Commission has also worked out in detail, concrete steps to be taken to ensure that election materials arrive at the polling units in good time for prompt commencement of the polls on Saturday, 23rd February 2019. The Commission at a press conference on Tuesday, 19th February at the Abuja International Conference Centre by 3pm will provide an update.

“In the meantime, after consultations with political parties. The Commission has approved that campaigns by parties and candidates can resume forthwith to end by midnight of

Thursday, 21st February 2019.

“Media organisations are at liberty to accept, Publish, Broadcast and circulate campaign materials up till midnight of Thursday 21st February 2019. Political Parties and their candidates are enjoined to abide by the extant laws governing campaigns.

“The Commission wishes to thank all Nigerians for thetr understanding regarding the rescheduling of the elections. “(e appeal to stakeholders to be dispassionate and circumspect In their comments. The Commission is focusing on the elections to be held on 23” February and 9’h March to ensure that they are free, fair and credible. We urge all Nigerians to participate fully in the elections, notwithstanding the disappointment.”

L-R: Noel Tagoe, executive vice president, academics, Association of International Certified Professional Accountants; Babatunde Osho, MD, Metrofile Nigeria, and Rabiu Olowo, chief internal auditor, Friesland Campina WAMCO Nigeria plc, during the inauguration of the 2019 CIMA-AICPA syllabus in Lagos.

FG lauds GEM’s project impact on economic diversification HARRISON EDEH, Abuja

@businessDayNG

Following the restructuring, the programme impacted on the SMEs across the country, as the gains harvested afterwards include: 950M SMEs have benefited so far from GEM grant across the different grant windows with additional 200 MSMEs in pipeline for grant before closure date.

Furthermore, 27 local consulting firms Business Development Service Providers (BDSPs) have been trained to deliver technical services to MSMEs across the country; 774 MSMEs benefited from the consultancy services provided by the BDSPs, and over 21,000 MSMEs have received technical Assistance including training offered by EDC/Lagos Business School.

External reserves decline to $42.83bn in February 15 HOPE MOSES-ASHIKE

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igeria’s external reserves have declined to a twomonth low in February in spite of the increase in the price of crude oil to $66.49 per barrel as of Monday.

The external reserves dropped to $42.83 billion as of February 15, 2019, from $43.174 billion recorded on January 13, 2019.

Foreign exchange reserves consist of official public sector foreign assets that are readily available to, and controlled by the monetary authorities, for direct financing of payment imbalances, and directly regulating the magnitude of such imbalances,

through intervention in the exchange markets to affect the currency exchange rate and/or for other purposes.

In May 2018, the reserves rose to $47.865 billion but declined to $41.523 billion in November of the same year with the price of crude oil above $80 per barrel.

Ayodele Akinwunmi, head of research, FSDH Merchant Bank Limited, said the downward movement in the external reserves might be a pointer to demand pressure at the foreign exchange market, which might lead to depreciation in the value of the naira. “This in the shortterm is in line with our expectation,” Akinwunmi said.

According to Akinwunmi, the current position of

external reserves continues to provide short-term stability for the value of the Naira. However, the medium-term stability in the foreign exchange market will depend on the country’s foreign exchange receipts from both crude oil and non-oil products. The 30-Day moving average external reserves increased by 0.13 percent, from $43.12 billion at end-December to $43.17 billion at end-January 2019.

Biodun Adedipe, founder and chief consultant of B. Adedipe Associates, projects external reserves to decline to $39.75 billion with expected decline in crude oil prices to $54 per barrel in 2019.

Tuesiday 19 February 2019

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NEWS Violence Against Persons Law: Edo governor’s wife, attorney-general charge Police on enforcement

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ife of the Edo State g o v e r nor, Betsy Obaseki, has charged the Police in the state to ensure strict enforcement of the Violence Against Persons (VAP) Law. The governor’s wife gave the charge during a march to protest acts of violence against persons in the state, which coincided with the signing of the VAP Law by the state governor, Godwin Obaseki.

The protest was also held against the inhuman treatment meted to a young girl, Ada Favour, over allegations that she stole a mobile phone.

Also, the state Attorney General and Commissioner for Justice, Yinka Omorogbe, urged the police to ensure that they properly prosecute cases of crimes against persons, even when they go against the grain of societal acceptance, noting that justice must be served in all cases.

According to Obaseki, the state governor is genderfriendly and would work to

advance the interest of women, adding, “We have a gender-friendly governor, and for these things to be happening in his time, it shows that they are about to end. We have to know that we have a governor who loves to promote women issues.”

She urged the police to ensure a thorough investigation of the assault on Ada Favour and ensure that justice is served on the matter.

On the abuse of the young girl, she said, “So, we want to condemn from the debt of our hearts and with every iota of our being, violence, indecent and inhuman acts, especially against women and children. We as women in Edo State, join our voices with the International Federation of Women Lawyers (FIDA), a Non-Government Organisations (NGO), and other stakeholders to condemn the act.

Speaking on the need to be thorough in investigations, Prof. Omorogbe told the police commissioner, “We know that you are a partner with us.

We welcome that and value the relationship. But what we

want is to ensure, particularly in the justice sector, that justice is truly served. We want you to ensure the right investigation.

“We don’t want our cases botched. Very often, when we are dealing with gender violence or violence that is treated as being the norm in society, the Police often mess it up because they don’t even see that it is a problem in society.”

Governor Obaseki, last Tuesday signed the Violence Against Persons (VAP) Bill into law, to address all forms of violence and protect vulnerable members of the society.

Signing the bill in Government House, Benin City, he noted that he was aware that the bill touches on fundamental practices among the people, assuring that he was not only signing the bill as a formality, but will ensure it is implemented to the letter.

“We will not stop here by just signing the bill into law, but will commence the much difficult work of implementing it to the letter.”

NLC urges Nigerians to brace up for rescheduled presidential polls JOSHUA BASSEY

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he Nigerian Labour Congress (NLC) on Monday lent its voice to ongoing political discourse in the aftermath of the postponed presidential/ National Assembly’s elections, as it urged Nigerians to brace up for Saturday, February 23, date for the rescheduled elections.

The labour, which also expressed shock at the last minute postponement of the polls by the Independent National Electoral Commission (INEC), said it shared the pains of Nigerians, but that no sacrifice was too big to move the nation forward.

According to Ayuba Wabba, president of the

NLC, “We share in the pains of those who in an uncommon show of patriotism, had to travel long distances to perform their civic duty.

We similarly understand the outrage of those who had incurred huge and unquantifiable logistic costs.

“No explanation will be good enough given INEC’s repeated assurances and the zeal of Nigerians to cast their vote.

“However, given the fact that had the election taken place, a huge number of Nigerians would have been disenfranchised on account of gross and wide-spread logistic deficit, the postponement, as painful as it is, is a lesser evil of the two.”

The labour leader therefore enjoined Nigerians to

put behind them the ugly incident and brace up for the rescheduled election next weekend.

He said: “In spite of huge costs to them, we call on all Nigerians to self-mobilise on the same scale that they did the previous weekend. They should not be disillusioned or react to this postponement in a manner that will create voter-apathy. This will certainly be counter-productive and will in the long run work against the interests of the electorate.”

He also called on institutions to be flexible with their staff to enable them travel in good time to perform their civic duty, even if it means government declaring a day or two public holiday to achieve this.

Banks, Verve wet consumer appetite for fuel consumption HOPE MOSES-ASHIKE

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igerian banks are collaborating with Verve to deepen cashless economy, wetting consumer appetite for fuel consumption using their debit card.

Consumers are expected to use their Verve card to buy a minimum of N3,000 worth of fuel in any of the specified Oando filling stations across seven cities in Nigeria and get five litres free.

The banks include United Bank for Africa (UBA), Access Bank plc and Polaris Bank. The offer is only for

Fridays between 6am and 8pm and lasts till March 22, 2019.

The Oando branches in Lagos include Maryland, Fadeyi-Shiro, Berger, Marina, Awolowo-Fire Service, Fadeyi-Igbobi, Lawanson, Alapere, Ojodu, Apapa-Marine Beach Rd, Agege-ByPass and Ajah. Other cities in the country include, Port Harcourt, Abuja, Ibadan, Kaduna, Owerri and Enugu.

Ayodeji Ebo, managing director, Afrinvest Securities Limited, sees this as a marketing strategy that will encourage people to use their debit cards to buy fuel thereby promote cashless

economy.

The Central Bank of Nigeria in December 2011 introduced the cashless policy, which aims to curb some of the negative consequences associated with the high usage of physical cash in the economy, including high cost of cash, high risk of using cash, high subsidy, informal economy, inefficiency and corruption.

Dupe Olusola, group head, marketing, UBA, says the initiative is part of ways of delighting customers, helping them get through the economy with ease and helping them boost their purchasing.

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BUSINESS DAY

37

38 BUSINESS DAY NEWS Sukuk issuance drives global funding for development projects www.businessday.ng

MODESTUS ANAESORONYE

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growing number of non-regional organisations are turning to Islamic Finance and in particular to sukuk instruments to raise funds for their infrastructure and development projects, affirms a UAEbased investment banking expert.

The comments from Zahid Aslam, managing director of Investment Banking at Dalma Capital Management Limited, come as the firm reports an almost one-third jump in inquiries regarding Sharia-compliant bond issuances from corporations outside of the Golf Cooperation Council (GCC).

The news follows S&P Global Ratings predicting in January the global issuance of Sharia-compliant foreign and local currency bonds is expected to reach as much as

$115 billion (Dh422.1bn) this year.

“It is our experience that sukuk-based solutions are establishing themselves as an increasingly attractive alternative for the funding of infrastructure and development projects,” Aslam observes.

“For example, we are currently working with clients on a variety of ‘off the beaten path’ projects, including a refinery initiative in the CIS region and a scheme to help develop eco-tourism and sustainable farming in several African nations. We are also seeing interest from Malaysia, Indonesia and Pakistan.”

He continues: “I would suggest that there are five main drivers for this significant upward trend for sukukissuance to continue this year and beyond.

“Firstly, lower oil prices – despite recent gains – have created a funding shortfall for many. Secondly, there is no-

NRC deploys 18 narrow gauge side wagons to ICNL … a move to decongest Apapa port container traffic MIKE OCHONMA

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n a renewed effort to decongest Apapa Port of stacked containers, the Nigerian Railway Corporation (NRC) Monday took delivery of 18 units of open side wagons that will run on the existing narrow gauge line.

The wagons imported from China, to be used for container traffic and general cargo movement, will be deployed immediately to Inland Container Nigeria Limited (ICNL), Kaduna, to help decongest the container-infested Apapa Port.

In telephone interview with BusinessDay Monday, Jerry Oche, an engineer and railway district manager of the NRC, Lagos district, said each of the deployed 18 wagons had the capacity to freight two units of 20 feet containers or one unit of the 40 feet containers.

According to Oche, who did not disclose the value of the wagons, ‘’The 18 wagons that the NRC has received now can freight 18 numbers of 40 feet containers or 36 numbers of 20 feet containers and can in the meantime do one round trip per week from Lagos to Kaduna.’’

Recall that just last year, the planned refurbishment of the narrow gauge line suffered a setback when General Electric (GE) announced its withdrawal as the lead concessioner of the Nigerian railways in consortium with other international industry partners. It handed it over the lead role to Transnet SOC Limited in line with its strategy to exit the transporta-

tion business.

Agreements GE reached with the Nigerian government “are now being negotiated by Transnet and its consortium partners” including SinoHydro of China and APM Terminals, the Boston, the company said.

Over the years, the problems at Apapa and other ports such as Calabar and Port Harcourt have been a headache for successive administrations, which have failed to fix decaying infrastructure, reduce stifling red tape and tackle corruption.

Terminal operators, including APM Terminals, a unit of Denmark’s AP Moller-Maersk A/S, rely on generators because power cuts are so frequent. But it’s worsened in recent years, especially at Apapa.

Crumbling roads have all but ground trucks to a halt.

Once they do manage to enter, drivers and businesses have to contend with a plethora of customs, immigration and security agents before they can pick up containers.

In comparison, it can take 20 days to clear products, compared with 48 hours in neighbouring Benin and Ghana, according to the Lagos Chamber of Commerce and Industry (LCCI).

The cost of moving a container from Apapa to other parts of Lagos has soared to as much as N700,000 ($1,930) from about 150,000 naira two years ago as trucking firms put up their prices to make up for the delays, according to the Nigerian Shippers’ Council (NSC).

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table and mounting pressure on global liquidity.

“Thirdly, the US Federal Reserve’s ongoing plans to slowly raise interest rates, making borrowing more expensive. Fourthly, global regulation is enhancing and becoming more Islamic finance-friendly.

“Finally, general awareness outside the GCC of the uses and benefits are becoming ever-more understood and valued. Dalma Capital, being a licensed and regulated asset manager and investment boutique with a network of institutions and accredited partners, provides all the necessary solutions for sukuk issuers and investors.”

Zachary Cefaratti, CEO at Dalma Capital concluded, “There is growing evidence that potential borrowers who had never considered Islamic Finance are better understanding the clear benefits of such solutions.

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Tuesday 19 February 2019

Domestic risk in emerging markets raises concerns to traders DIPO OLADEHINDE

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merging markets have long been a space where active, bottomup stock picking traders thrive and find gold mines for their investors, but this year, a lot of active traders are raising concerns about domestic risks facing each country.

Traders of Nigerian assets are expected to be bracing up themselves after an 11th hour postponement of its presidential elections. For South Africa’s, rand was back on its perch as the world’s most volatile currency on Saturday, as investors price in the risk of a credit-rating, downgrade while awaiting details of the government’s rescue plan for 96-year-old state-owned electricity company Eskom Holdings SOC Limited.

Also, Bank Indonesia says it will maintain its tight money policy this year amid the normalisation of monetary policies by central banks in other countries.

In Mexico, investors are

fretting over some of President Andres Manuel Lopez Obrador’s fiscal measures, including pulling the plug on a partially built $13 billion new airport in Mexico City.

Lopez Obrador, better known by his initials AMLO, also said last week he would announce measures supportive of Pemex, a giant state-run oil company.

AMLO did not provide specifics in his comments from last Tuesday, leaving investors worried about how sweeping his proposals could actually be. AMLO’s comments came after ratings agency Fitch cut Pemex’s rating to BBB-, the lowest investment-grade rating, from BBB+.

Nnamdi Olisaeloka, a fixedincome analyst at Zedcrest Capital Limited, explained that there were some idiosyncratic risks that would face emerging market countries, which also include political risk.

“From the stand point of foreign portfolio investors they will actually be evaluating those risks before deciding to invest. The whole emerg-

ing market euphoria has slow down because of the identify risk factors within this particular countries,” Olisaeloka told BusinessDay. Adetola Adelu, financial analyst at Fides Capital Partners, said investors were very much concerned about domestic risk (which affects survival of the business) as such, they required additional premium.

“Domestic traders too are concerned about their business performance, which is grossly affected by domestic risks which includes regulation, political instability, insecurity and inflation,” Adelu told BusinessDay. According to Bloomberg, the MSCI Inc.’s index of currencies capped a second week of declines Friday, the longest losing stretch since September and a whisper away from closing below its 100-week average for the first time since August. When it fell past that level in 2014, the gauge went a losing run that extended into 2016. The index rebounded on Monday.

Tuesday 19 February 2019

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BUSINESS DAY

Commercial activities resume in Aba, two days after rescheduled elections GODFREY OFURUM, Aba

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ommercial activities resumed Monday, in Aba, the commercial hub of Abia State, two days after the rescheduling of the 2019 general elections, by the Independent National Electoral Commission (INEC).

The last minute shifts of the elections from February 16 for presidential and National Assembly elections and March 2 to March 9, 2019 for Governorship and State Assembly elections came as a surprise, thereby paralysing commercial activities on Saturday February 16.

Aba was like a ghost town Saturday, as residents remained indoors after the news of the rescheduled elections filtered into town.

BusinessDay checks at Ariaria International Market, Ahia Ohuru and Shopping Centre, revealed that few traders, who managed to come out had low sales, as few people were in the market to patronise them.

Movement within the city was also difficult, as most transporters removed their

vehicles and tricycles off the roads, forcing commuters to trek long distances to their destinations.

Several banks Automated Teller Machines in the commercial city were not dispensing money as at when BusinessDay visited.

Some newspaper vendors who managed to come out told our reporter that they had to trek long distances, because there were no commercial buses and tricycles on the road.

Residents claimed that it was difficult for them to reschedule their daily work plan, as at the time they got the news of the cancellation of the election. Charles Chinekezi, chairman, Civil Liberties Organisation (CLO), Aba unit, expressed disappointment at the manner and timing of the cancellation, adding that it showed leadership irresponsibility and leadership criminality, on the part of INEC and Federal Government.

“The sudden announcement by INEC and Federal Government shows their unseriousness towards meeting the vision of our nationhood.

“It is unbelievable that up

till midnight when everyone, government agencies, security agencies, local and international media houses were still talking about elections, suddenly INEC announced the cancellation.

“They have just demonstrated leadership irresponsibility and leadership criminality and Nigerians are not going to just swallow. For me I urge everyone to remain calm and alert, because this is our country and no one

will make it better for us.

“On that February 23, we shall still vote according to our conscience and it must count.

“Many Nigerians have travelled from various parts of the world into this country, different persons who registered in their various localities have travelled, activities were at a higher speed yesterday as everyone got ready as our national media kept saying we will have

elections.

“What is the meaning of this level of recklessness?

Why are they taking the Nigerian public for granted?

They don’t even bother about the consequences of their actions. It is high level of irresponsibility and same inefficiency that has being bedevilling this government from day one, since four years now.

“They don’t have a clue on what to do with Nigeria

and where Nigeria should be.

This is ploy to deceive the international and still look for a way to perpetrate the evil that they have packaged already.”

Chukwujekwu Udeh, a trader, who expressed his disappointment, noted that the repercussions of the cancellation of the election will not be felt last weekend, but the coming weekend, as many persons who had already fixed their events and programmes are now in trouble.

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NATIONAL DISCOURSE

OSA VICTOR OBAYAGBONA

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head the World Economic Forum on Africa, that took place in Abuja, between May 7 and 9, 2014, Winnie Byanyima, Oxfam International executive director, said, “Inequality in Africa is rising to dangerous levels and unless checked, will undermine the usefulness of economic growth on the continent.

“Inequality will endanger progress in Africa. Africa’s precious resources must benefit ordinary Africans.”

This is further highlighted by recent happenings in some African nations.

A recent report placed Nigeria as the capital to the poorest people in the world, overtaking India to stay at that position, according to World Data Lab, a predictive analytics social enterprise, released June 2018.

Byanyima said Africa’s economic profile was “schizophrenic,” with sharp growth occurring while stubbornly high numbers of people remain locked into poverty. The result is ballooning inequality.

“Africa’s economic growth is capturing the headlines and there is much to build upon,” she said. The average growth rate of the region, excluding South Africa, is very high at 6 percent. This growth is enriching

INIOBONG IWOK

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he postponement of last Saturday’s Nigeria’s presidential and National Assembly to February 23 and the gubernatorial and the state House of Assembly election to March 9 by the Independent National Electoral Commission (INEC) has continued to generate ripples and condemnation among Nigerians.

INEC Chairman, Professor Mahmood Yakubu, speaking at a press briefing at the commission headquarters, on Saturday morning, said the commission was facing several challenges which had made the postponement necessary.

Mohmood said the delay was necessary to give the commission time to address vital issues, which could affect its ability to conduct free and fair elections.

“Following a careful review of the implementation of its logistics and operational plan, and the determination to conduct free, fair, and credible elections, the commission came to the conclusion that proceeding

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Tuesday 19 February 2019

continent every day, while according to the World Health Organisation, “More than 300 million acute malaria infections occur in Africa yearly, leading to death of at least 1 million people every year.”

Those affected are the poor who cannot afford a mosquito net, talk less of insecticide. But still, African leaders are busy acquiring wealth without addressing issues paramount to their citizens.

We thank God today for the Universal Basic Education that has a compulsory free education for every Nigerian child of the first nine years of school life. The irony of this is that, the programme has not taken off in most states of Nigeria. This has made the programme of no effect because it has not really addressed the educational needs of the target.

This is often dooming children to a life of perpetual poverty, especially in the rural and sub-urban areas.

Instead of bracing up to the challenges, poor parents are now sending their wards to urban centres to stay with people, with promises of sending them to school. Most of them are ending up being house helps without even seeing the four walls of school.

The sad aspect is that, people now attach more importance to material possession than to relationship, thus placing too much emphasis on ‘having’ and too little on ‘being.’

They measure a person’s worth and importance according to his/her job, salary or possession, rather than his/ her knowledge, wisdom, abilities and positive characteristics.

Knowing fully well that hundreds of millions of people worldwide are still trying to survive each day in spite

of this continuing poverty, it is clear that good legislation alone cannot solve this.

But sincerity, fair play, equity and justice on the part of the privileged political and economic class will go a long way in changing the cause of the poor.

Also, the need to address our political spending on white-elephant projects and the duplication of ministries should be re-addressed, and instead face the issue of unemployment squarely.

Not until we see our privileges as means of helping the underprivileged, the divide will continue to widen and the issue of bridging becomes inconsequential. The poor should however be consoled that wealth does not always make happy.

Fortunately, this rising inequality can be reversed, Byanyima said, saying, “These trends are reversible.

African countries must crack down on corporate tax dodgers and invest far more in free healthcare and education and in industries that can create more and decent jobs.

“One of the simplest things that governments can do to help diffuse the inequality time-bomb is to invest more in public services. Public services redistribute by putting virtual income into everyone’s pockets.”

The case of Latin America gives us hope that the global trend of rising inequality can be reversed. Brazil has had significant success in reducing inequality, through spending on public health and education, widescale cash transfers, and a surge in the minimum wage. These also Nigeria can do, and I am sure will get same result.

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The widening gap of inequality continues some, more than others.

Africa has the fastest rising number of dollar millionaires of any other region in the world. It now has 29 billionaires – up from just two in 2003. The wealth of the three richest Africans, at $39 billion, is more than Kenya’s entire GDP in 2012.

The flip side to this wealth creation is that six out of the 10 most unequal countries in the world are in sub-Saharan Africa. The region is the only one where the numbers of poor people has actually increased, to more than double what it was at the beginning of the 80s, she said further.

I don’t know whether you see what I see, because when I was growing up, I learned in elementary economics that the ideal society is that that has more of its citizens in the middle-class. With more in this class, the economy will be stable and the standard of living will always be improved on a gradual process.

But today, in most African countries and Nigeria in particular, this middle-class is being eroded, not minding recent statistics that the middle-class is growing in Nigeria.

Look around; you will notice people are leaving the cities to the outskirts of town. Not because they have built their own houses, but because they can no longer afford rents in the cities, hence, they have to move to the outskirts where rents are cheaper.

In differentiating between rich and poor countries, the term ‘developing country’ has evolved over many years. At first, poor countries were tagged “Third World.’ Because the term was regarded as derogatory, it was later changed to ‘Underdeveloped’ countries. This, too, was

regarded as demeaning and having a negative connotation. Finally, it evolved to ‘Developing nations.’

I think this new term has come to stay, because it is a reality in our world today. The unfortunate thing is that, even within one country, these two words exist (developed and developing).

In Nigeria, for example, it is believed that about 40 percent of the nation’s total income goes to the upper 10 percent of households, while the lower 20 percent households must make do with about 5 percent of the total income. No wonder a recent survey revealed that about 70 percent of Nigerians are living below the poverty level.

Think of the clear disadvantages being suffered by the poor. Access to adequate healthcare is seriously inadequate. In developed nations, it is estimated that there is one doctor for every 242 to 539 people, whereas, in our case, it is one doctor to about 4,000 to 5,000 people.

In this case, it is only the rich that can afford adequate medical attention. The poor go to the general hospitals, where thousands queue to meet with few doctors. At the end, he/she is not able to buy the prescribed drugs and as such, the sickness persists.

Understandably, the life expectancy of the rich is 70 years and above, while that of the poor is well below 50. Just imagine, if this class is allowed to be eroded, who will tend our industries in the future? At the end, we will be back to the status quo.

Early 2004, the French newspaper Le Figaro, stated that malaria killed about 3,000 children on the African

Poll shift: Urgent need for unbundling of INEC with the elections as scheduled is no longer feasible.”

The news of the postponement of the presidential and National Assembly election, however, came as a shock to millions of eligible voters that were eager to exercise their civic duty.

However, the postponement to the date of general elections has, again, brought to the fore the clamour for the unbundling of INEC. The commission, according to the Nigeria constitution, is saddled with the task of: conducting elections, carrying out voter’s registration, preparing logistics for the elections, registration of political parties, among other functions.

There is also an on-going debate from some sections of Nigerians that the commission should equally be in charge of trial of election offenders.

However, analysts believe that two different agencies should be created from INEC present set-up—

INEC REFORMS one agency should be in charge of handling logistics for elections, while the other should be in charge of punishing election offenders.

The commission should only be saddled with the task of registration of political parties, voters and conducting of elections across the country.

It is apparent that Nigeria’s large geography size is a burden to the commission’s ability to deliver on its task as it is often overstretched during general elections.

An example was the recent gubernatorial elections in Ekiti and Osun states where the commission was adjudged to have performed creditably well in the distribution of election material and other logistics. This was, however, because the elections were held in single states at a time.

It’s apparent that INEC, as pres-

ently constituted is overburdened, ill-equipped and lacks the required manpower to effectively deliver on its mandate without hiccups.

This is not the first time general elections are postponed in Nigeria.

However, the postponement perhaps calls for an appraisal of the commission’s duties and leadership.

In 2011, INEC cited logistics reasons for the shift in the general elections date. The commission had said that vital election material had not been supplied days to the general elections.

Also in 2015, INEC under the leadership of Atahirru Jega, election was postponed Nigeria’s general elections for six weeks for security fears.

Perhaps it has become imperative for a review of the setup of the commission and its mandate if the nation is to avoid a repeat of this national embarrassment in the future.

Political analyst and lawyer, Ayo

Kusamotu questions the competence of the leadership of the commission, stressing that there is the urgent need for a reform of the commission to deliver on its mandate.

“Obviously, INEC needs reforms.

The present set-up gives rooms for inefficiency. Changes have to be made. The level of incompetence is high.”

“The amount of money they are spending for the general elections is unjustifiable. This is money that could be used to build schools and hospitals. So, what are they doing with it? And we heard they are printing election materials outside Nigeria.”

David Bayeisha, Senior advocate of Nigeria (SAN), admits that the commission could perform better, but calls for caution, not to give room for easy manipulation of the electoral system.

“INEC has not performed in view of the recent event, but I don’t really think unbundling is the solution. We need to be careful not to take actions that would complicate the system and encourage more fraud in elections.”

Tuesday 19 February 2019

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Election postponement: SDP national secretary calls for patience elections.

He noted that the interest of the country should be paramount to all Nigerians and warned the political class to be conscious of their utterances on sensitive national issues.

“Most of us have not anticipated that the elections were to be postponed. We have all travelled back home in preparations for the elections. But unfortunately, due to some circumstances, perhaps, beyond the control of INEC, that election wasn’t possible.

“We are not happy about the INEC decision absolutely and I don’t think there is any political party or any stakeholder that was happy with the decision. All of us thought that the decision wasn’t taken in good faith at the initial

Haruna Ningi, Bauchi

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he National Secretary of Social Democratic Party (SDP), Shehu Mu s a G a b a m h a s called on Nigerians to be patient over the postponement of the Presidential and National Assembly elections by the Independent National Electoral Commission (INEC).

He made the call while speaking to journalists at his residence in Tilden Fulani, Toro Local Government Area of Bauchi State.

Gabam said that he has been criticising INEC on its unpreparedness to conduct the elections, but Nigerians should remain patient with the electoral body till the new dates schedule for the

Shehu Gabam

Remain calm, patient with INEC - NYCN urges youths IDRIS UMAR MOMOH, Benin

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nnocent Ajayi, vice president, National Youth Council of Nigeria (NYCN) South-South zone, has appealed to Nigerian youths to remain calm and be patient with the Independent National Electoral Commission (INEC) as it postponed the nation’s general elections.

Ajayi made the call on Monday while reacting to the postponement of the last Saturday’s presidential and National Assembly elections by the Independent National Electoral Commission (INEC).

“Though it is painful to have been greeted with the news of the postponement of the much-talked about presidential and the National Assembly elections slated to hold last Saturday (16 February), there is no price too costly to pay

if such price will bring about free, fair and credible elections.

“Nigerian youths have no other country than Nigeria and so must do everything possible to protect it. The NYCN, zonal Vice President noted that as an umpire, INEC is vested with the responsibility of conducting elections in the country,” he said.

While urging the youth to join hands with the commission to make the 2019 general election a reality, he opined that the action of the agency was geared towards development of democratic practice in the country.

Godwin Igbinoba, said the INEC acted in good fate being the umpire saddled with the responsibility of conducting free, fair and credible elections in the country.

“The postponement of the elections gave me a shocker at the first

instance, but when I heard the reasons by the INEC that they did not want to conduct elections that are not credible.

“In some areas, materials have not reached them due to weather problem and in some areas like Akwa Ibom, materials were burnt up.

“I believed it was for proper and credible elections. I do not believe it is aimed at distorting the elections. I think this is not the first time we are seeing this kind of thing, it happened in the last presidential election. It was postponed and credible elections were still carried out.

“So I believe we are still waiting for a free, fair and credible elections on 23 of February”, he stated.

He however, advised Nigerians to be patient and get themselves prepared for the new date INEC has fixed to conduct the elections.

CUPP urges INEC to continue distribution of PVCs Iniobong Iwok

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head of Saturday’s’ rescheduled Presidential and National Assemble election, the Lagos State branch of the Coalition United Political parties (CUPP) has urged the Independent National Electoral Commission (INEC) to continue the distribution of the Permanent Voters Card (PVC) across the state.

Chairman of CUPP in the state, Tunde Daramola, stated this in an interview with BusinessDay, Monday, noting that the continuation of the distribution of the card

would afford millions of Nigerians who could not get their cards in the stipulated time the opportunity to get their PVCs. Daramola, who is also the state chairman of the African Democratic Congress (ADC), berated the commission for yielding to the request of the ruling All Progressives Congress and approving the continuation of campaigns even when it had initially kicked against it.

“I would have expected that INEC should continue with the distribution of the PVCs, because as at now, several Nigerians have not been able to pick up their

cards due to the bottleneck in the process”, Daramola said.

The CUPP chairman further urged Nigerians go out massively and vote for the presidential candidate of the People’s Democratic Party (PDP), Atiku Abubakar, and protect their votes, stressing that INEC could not be trusted.

“Why INEC suddenly allowed campaigns to continue is because APC said they would campaign.”

“Nigerians should move out and vote for Atiku, and after voting, stand and protect your votes, this INEC cannot be trusted,” Daramola added.

stage.

“We were a bit apprehensive until when there is a comprehensive press conference detailing the circumstances for the postponement of the elections,” he said.

The SDP National Secretary who is also the running mate to Donald Duke faulted INEC for delaying the production of sensitive materials and its failure to take proactive measures as it had enough time to have deposited the materials with the CBN at all locations.

He urged the electoral body to ensure that the rescheduled date remains sacrosanct, warning that another failure may bring uncertainty in the country’s democracy.

PDP chieftain urges police to investigate attack on INEC buses in A/Ibom ANIEFIOK UDONQUAK, Uyo

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chieftain of the People’s Democratic Party (PDP) in Akwa Ibom State, Monday Uko has urged the police to investigate the attack on buses conveying election materials in Obot Akara of the state.

Uko, who is the commissioner for Youths and Sports, has also appealed for calm and insisting that no manner the manipulation, it would not prevent the wishes of the people from being realised.

He said the police should conduct a thorough investigation into the recent attack at his local government area and bring perpetrators to book.

Addressing journalists, in Uyo, the state capital, Uko who described as false, some reports that he has been arrested by the police, however, said his party had uncovered plots by members of the opposition to plant incriminating items in his house with intent to frame him on trump-up charges of hiring armed thugs.

Accusing the opposition party of putting his name on a target list, he said: “Credible intelligence from every reliable sources reveal that a plot has been hatched to plant incriminating items in my premises and car in order to arrest and detain me.

“Also, there is another plot to hire some thugs who will be arrested with arms and on interrogation name me as their sponsor”.

The Commissioner explained that the reported violence in Obot Akara Friday, occurred when some thugs allegedly sponsored by the opposition attacked INEC office in Obot Akara , venting their frustration on some buses belonging to the Independent National Electoral

Commission (INEC) and setting them ablaze.

Recall that recently the People’s Democratic Party in Akwa Ibom State had raised the alarm over alleged plots by opposition chieftains to frame up its key members and supporters of Governor Udom Emmanuel.

Describing Obot-Akara as a PDP stronghold, Uko, said members of the opposition were very much aware of this fact, hence their resort to violence.

“I want to call on the InspectorGeneral of Police and indeed, the entire security agencies in the country not to allow themselves to be used by desperate APC politicians who will stop at nothing but to tarnish my hard-earned reputation.

“I request them to conduct a thorough investigation to fish out the perpetrators of this heinous crime, with a view to bringing them to book and exonerating those who are innocent”.

“Is it not astonishing that it could even be contemplated that the PDP, that is in complete control of Obot Akara could turn around to attack an electoral process when it is sure of victory.

The police are aware of those involved and if they are serious about their functions, those criminal elements would be arrested without delay.

“Three weeks ago, the Obot Akara Electoral Officer was attacked by the same known APC chieftains and the perpetrators were reported promptly to security agents. Unfortunately, the security agents failed to apprehend them, allowing them to boast on the streets of Obot Akara that they have federal might, and cannot be arrested”.

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Tuesday 19 February 2019

PDP expects clean sweep in Rivers but APC still fights to return to the ballot Ignatius Chukwu

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he People’s Democratic Party (PDP) in Rivers State by Friday, February 15, 2019 (before the postponement), was putting finishing touches to recording a clean sweep on Saturday, February 16 for their candidates in the presidential, Senate and House of Representatives elections but the rival All Progressives Congress (APC) was still fighting to be returned to the ballot.

The APC was removed from the ballot weeks ago by the Independent National Electoral Commission (INEC) following Federal High Court judgment upholding the Port Harcourt High Court nullification of the emergence of the Flag Amachree executives as demanded by the Magnus Abe camp of the party.

Now, the APC won two orders for stay of execution but INEC remained adamant, leaving the APC reeling. The hope that the Supreme Court would on Tuesday return the party to the ballot did not happen as the apex court ruled on other aspects especially upholding the right of the lawyer that had represented the APC at the high court who was challenged by the main faction for being a suspended member.

Now, the APC held a press conference in Port Harcourt on Thurs-

Wike

day, stating why the party must be returned to the ballot and also urged their supporters to ‘come out and vote’. The statement signed by the publicity secretary, Chris Fineface, said the highest organ of the party had meticulously deliberated on the matter.

He said; “After a meeting of the State Working Committee of our party in the State today in which we meticulously deliberated on the recent court rulings of various courts especially the decision of the Court of Appeal sitting in Port

Harcourt yesterday to further reaffirm two earlier orders that stayed the execution of the judgments of the lower court, our conclusion is that the APC and its candidates will now, most certainly, be on the ballot this Saturday. No order or judgment given since, including orders given by the Supreme Court on both jurisdiction and representation have said otherwise.

“We opted not to rely on a media circus to convey our right to be included. Unlike the many news reports that were suggesting we

Don’t be discouraged, exercise your franchise - PDP woos electorate Emmanuel Ndukuba, Awka

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he People’s Democratic Party (PDP) has called on Nigerians to come out en masse this Saturday to exercise their franchise despite the discouragement caused by INEC’s decision to postpone the elections few hours before commencement.

The Chairman of Atiku/Obi Campaign Council in Anambra State, Oseloka H. Obaze, made this call in Awka on Monday.

Obaze regretted the wider economic implications and opportunity cost of the postponement.

He maintained that four years was enough time for INEC to prepare for the elections. According to him, the postponement was a systemic failure on the part of INEC. Obaze, who was the candidate of the PDP during the 2017 governorship election in Anambra State, said INEC must accept responsibility and apologise for causing so much frustration and international embarrassment to Nigerians.

He enjoined Nigerians, especially those who had traveled long dis-

tances to perform their civic duty to make further sacrifices and ensure that their voices are heard through the ballot on the rescheduled dates.

He said the pains of four more years of hardship and uncertainty far outweigh the pains of sacrificing a week to get Nigeria working again.

On the issue of what impression Nigeria created before the international community as a result of the sudden postponement of election, the retired United Nations diplomat said the postponement was a total public relations disaster for Nigeria.

According to him, “the situation is embarrassing, especially when it is considered against the background of the assurances given by the Head of State in his national broadcast some days earlier and the assurances INEC continued to give even just few hours before the postponement was officially announced.”

“We give some leeway to INEC and appreciate the enormity of challenges they faced, but what they have done, wittingly or unwittingly, is to shift the goalpost in the middle of the game. It is not acceptable.

“INEC should revisit their direc-

tives that political campaigns should not be reopened. Our party takes a strong exception to that and if need be, we are willing to approach the court to seek interpretation of the Electoral Act,” Responding to a question on the safety of sensitive materials that have already been deployed, Obaze said “our party in Anambra State will meet with the state Resident Electoral Commissioner to inspect those materials, just the way we inspected them when they arrived, to ensure that their sanctity has not been violated. And that should apply across board.”

Meanwhile, the PDP leadership in the state met with the state REC, Nkwachukwu Orji to deliberate on persisting challenges following postponement of the elections The party was represented by Obaze; state Chairman, Ndubuisi Nwobu and the Campaign Council DG, Harry Oranezi.

The meeting was aimed at deliberating on persisting challenges following the abrupt postponement of the general election previously scheduled for 16 February and 2 March 2019.

were dead and buried, we have since seen the orders and the Supreme Court judgment on the stay of execution which proves beyond reasonable doubt that INEC has an obligation to re-list APC or risk being sanctioned for excluding us and disobeying a subsisting court order.

“We hail once again both decisions of the stay of execution, taken by the Court of Appeal recently and their reaffirmation of both yesterday. These decisions mean that nothing is stopping INEC from placing APC on the ballot.

We welcome the moves by INEC to put us back on the ballot, as the alternative would have confirmed once and for all, the genuine fear that they are working for the PDP. “We wish to state advisedly that obedience to the rule law is the best antidote to anarchy. In the circumstances, we urge INEC to speedily implement the rule of law and return our great party to its rightful place. We are only demanding a right to compete.

“I want to once again hail the decision of the Supreme Court to refuse moves by Senator Magnus Abe and his lawyers to appeal the stays of execution. Nobody is in any doubt now that The Supreme Court is throwing out of the appeal against our stays of execution, speaks volumes. In summary, it means that the stays still subsist.

That is the clear position of the law.

The stay orders, the details of the Supreme Court judgment and our

formal letter to INEC are hereby attached for your perusal.

“We have passed the stage of worrying if we will be on the ballot. We must now prepare to punish those who have been trying to keep us out of the elections with our votes. With these same votes, we must give Mr. President our full support. He stood by our leader because our leader had always stood by him and if you want to keep getting what you are getting, you have to keep doing what you are doing.” Everybody must come out and vote APC to deny PDP any sight of government and help our President secure his second term in office.”

The party had sent supporters to protest at INEC earlier in the day but they were dispersed by the police. Later in the day, hints came that INEC was making arrangements to include the APC. By Friday, Tonye Princewill, a Kalabari prince, told newsmen that the party has just served contempt charge on the chairman of INEC, the professor, Mahmood Yakubu, to explain why he has not re-listed the APC. The party stalwarts in the state are hopeful that with the postponement of the elections, anything could happen before Saturday.

So far, it has been a matter of speculations. All agencies seem to be on the wait for the final decision. If APC is returned, it may be followed by many other consequences.

2019 elections: Youths urged to shun violence Emmanuel Ndukuba, Awka

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he Spiritual Director, Holy Ghost Adoration Ministry, Uke, Anambra State, Rev. Fr. Emmanuel Obimma, popularly known as Fr. Ebubemonso, has urged Nigerian youths to shun all forms of electoral violence during this Saturday’s rescheduled 2019 Presidential and National Assembly elections.

Obimma stated this while addressing a mammoth crowd at his Adoration Ministry on Monday.

He insisted that there was no alternative to peace, adding that everybody should pursue peace during the elections.

He lauded the peace initiative commitments entered into by candidates at all levels for the general elections.

Obimma advised that no life of any Nigerian is worth losing in the name of electoral failure or victory.

The cleric urged Nigerians,

especially those in positions of authority in the religious and political circles as well as markets to ensure they mobilise for peace rather than crisis as it pays no one any good.

He called on the Independent National Electoral Commission (INEC) led by its chairman, Prof.

Mahmood Yakubu to conduct an election that would be judged by both nationally and internationally as free, fair and credible.

He called also on the eligible Nigerian electorate to come out during Saturday’s rescheduled elections and cast their votes.

“Don’t be discouraged with the postponement of presidential election by INEC, mobilise yourselves and vote for the candidates of your choice.

“You should not allow anything to dampen your spirit or discourage you from coming out en masse to vote the candidate of your choice,” Obimma said.

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43

Housing

How real estate firm enables low income earners realize homeownership dreams …Creates homes, empowers people, raises entrepreneurs CHUKA UROKO

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eyond the dearth of cheap housing finance that could enable them buy or build their own homes, many Nigerians are ‘homeless’ because they lack knowledge of innovative ways of owning homes without having to break the banks. Many are also in this class due to lack of patience.

For people in the low income group, the best strategy to owning a home is to start from buying a plot of land. Oftentimes, however, many of these people do not know that their first land may not even be their dream land. The dream land could be in Ikeja, Magodo, Ilupeju, Gbagada or Festac Town in Lagos.

But Pertinence Limited, a relatively young and very dynamic real estate firm, says these places where cost of land is on the high side shouldn’t be the place to buy the first land even though that is where they dream to have their land. “You can start from the remote locations like Ifo, Atom, Mowe, etc”, the company advises.

Nigeria is burdened with over 20 million housing units deficit. An analysis of this deficit shows that over 80 percent of the deficit resides within the low income segment of

L-R: Victory Cleanclay, group general manager; Sunday Olorunsheyi, ED, admin/operations; Wisdom Ezekiel, ED, marketing, and Oladimeji Oke, financial controller, all of Pertinence Limited, at an interactive session with the media in Lagos recently.

the country’s housing market where the low and mid-income earners are largely underserved.

“We came into real estate business with a full understanding of the demand-supply gap in the market.

We told ourselves that we could be a part of the solution to this problem.

This was why we started to look out for the low income class of people”, Sunday Olorunsheyi, Executive Director, Admin/Operations at Pertinence, told journalists at an

interactive session in Lagos recently.

The level of poverty in Nigeria is such that some of the low income earners cannot even afford the cost of a plot of land. That reality caused Pertinence to begin to demystify owning a plot of land by helping buyers to see or understand that it is not a bad thing to dream of upscale locations, but they must face the reality of their economic condition by starting from the low level and graduate from there.

“We have designed schemes in low places like Ifo and Aton and made it easy for them to buy. Our prices are not so high and the payment plan is very flexible. We have also helped the buyers to conquer the fear that normally comes with acquiring land which is the issue of ‘Omo-nile’. We made them understand that buying from us means buying peace of mind, flexibility of payment and affordability”, Olorunsheyi said.

Within the last seven years the company has operated in the real estate space, it has been able to provide or catalyse homeownership for well over 10,000 Nigerians who have subscribed to their ABC and VIP Gardens, and other schemes in various parts of Nigeria. In 2018, they moved up the ladder in their product offering and mid-income earners were in focus.

This year, according to Olorunsheyi, they are already positioning themselves for the great exploits they plan to make in the market place. “2018 was like a foundational stage for that level. 2019 is the time we really want to achieve the goal we have set for ourselves as an organization”, he enthused.

Besides real estate business, Pertinence is also into people empowerment and enterprise development which speak to its mission ‘to be a part of the solution to several challenges we have in the world and Nigeria in particular’.

“We came into business with the primary purpose of solving problems. Every businessman wants to make profit. But in our own case, we are here not just to make profit, but also to help people that partner with us in the course of our business to Continues on page 44

Interior Decor

Sofas still living room king but going compact TEMITAYO AYETOTO

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s the conference centre of every home, the living room speaks a lot about personalities and their sense of taste. But much of the talking and impression-making is done by the shape and form that the sofas are carved. Sofas retain kingship in the living room, hence speaks louder than any other home furnishing.

A stylishly built set of sofa with moderately soft texture, covered in modern upholstery fabric prints, without doubts, can pleasantly welcome a guest into a soothing ambience and it could be otherwise if the form is unnecessarily huge and space-choking.

The trend in the living room choice, according to observers, has become reflective of a leaning towards simplicity and conciseness in space management. Consumers are increasingly seeking stylishness in compact sofas, especially as modern living room designs are taking smaller sizes, unlike old times.

Being a personal and sensual chore, selecting a modern sofa is, therefore, inspired by attractive materials, lovely and uncommon prints. Moreover, people choose furniture items following their emotional response.

However, choice appears not to be limited to the colour or material texture but also considers designs,

which come in various trims, customized combination of modular elements and decorating accessories.

A fusion of styles is one of the latest trends in decorating which softens contemporary interior de-

sign by adding a few details in classic style to create ultimate comfort and unique look of a modern and distinct room, according to Lushhome.

Today, modern sofas blend classic and contemporary elements,

bringing old traditions and innovations into furniture design and offering attractive, functional, and comfortable home furnishings.

Space saving storage solutions, customized and elegant organ-

izers, integrated lighting, practical ottomans, no backrest modules, and additional pillows in various shapes create bright, comfortable, and functional sofas for modern interior design.

44

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Housing Finance

Taking a significant step to bridging Nigeria’s housing deficit Stories by CHUKA UROKO

T

he real estate sector in Nigeria has continued to contribute significantly to the nation’s GDP, accounting for, at least, 7.07 percent of GDP as at Q4, 2018. This contribution which could be more, if the sector’s full potential is exploited, is made possible by the activities of estate developers.

At the forefront of these activities is Mixta Real Estate Plc (‘Mixta Nigeria’), the leading developer in affordable housing and urban infrastructure in Nigeria.

Following the footsteps of its parent company – Mixta Africa, South Africa’s success in the delivery of over 6,100 affordable housing units across countries in sub-Saharan Africa and North Africa— Mixta Nigeria is determined to consistently maintain its position at the forefront, providing Nigerians with affordable housing.

Realising the constraint which funding could pose on its way to achieving its ambition, Mixta Nigeria approached the Nigerian capital market in 2017 by establishing a Bond programme under which certain bonds of a nominal aggregate amount not exceeding N30billion (the ‘Programme Bonds’) may be issued by way of an offer for subscription or private placement.

In the same year, Mixta issued a portion of the Programme Bonds (‘Series I Issue’), raising N4.5billion via an offer for subscription by way of a book building process at a fixed rate of 17 percent due 2021. The bonds in the Series I Issue were secured by a guarantee from GuarantCo Limited, a development finance institution operating from the UK which facilitates infrastructure development in low income countries through the provision of credit guarantees.

Kola Ashiru-Balogun, Mixta Nigeria’s managing director, explained that GuarantCo guaranteed the principal and one coupon payment relating to the bonds, adding that the bonds issued under the Series I Issue are listed on the Nigerian Stock Exchange and the FMDQ OTC Securities Exchange.

“The Series I Issue has been successful in the secondary market.

The high demand for it demonstrates the capital market’s growing confidence in the real estate sector”, Ashiru-Balogun noted.

Following its successes in 2017 and its entrance into a new market, Edo State government, early in 2018, saw the need to increase the momentum in delivery of quality affordable housing units and necessitated another approach to the Nigerian capital market.

The managing director disclosed that, in 2018, Mixta Nigeria issued a further portion of the Programme Bonds (‘Series II Issue’) also via an offer for subscription by way of a book building process in two tranches. In the first tranche, Tranche A, the company raised N2.9 billion at a fixed rate of 16.50 percent due in 2023. The principal and one coupon payment was guaranteed by GuarantCo. In Tranche B, he said, “Mixta Nigeria raised N2.3billion at 17.75 percent due 2023 and secured by

a third-party legal mortgage. The Series II Issue, being more successful than the Series I Issue, is a clear vote of confidence by investors in Mixta Nigeria’s strategy to focus on affordable housing, and an indication of significant future growth in the real estate sector”.

GuarantCo’s assistance in Series I and Series II Tranche A bonds was key to securing reasonable coupon rates for the bonds.

Expectation is that this significant step will enable Mixta Nigeria to do more developments

Professional Practice

What stakeholders need to know about real estate marketing strategies

W

hen real estate professionals and sundry stakeholders gathered in Lagos recently for a workshop organized by Fine & Country West Africa International and Lagos Business School (LBS), also known as Pan-Atlantic University, focus was on strategies for marketing real estate in Nigeria.

Over the years, Fine & Country, a real estate advisory and marketing company, has beenspurring conversations that facilitate the building of a global standard real estate industry.

Its partnership with LBS is to elevate the conversations. That partnership designed and facilitated the just concluded three- day workshop in real estate marketing.

The workshop was the second in a four-module course on Real Estate Leadership Development. The first module held in November 2018 recorded an impressive success. This second workshop took participants through a rigorous training in branding, marketing and communication in real estate by industry thought leaders.

A cross section of participants at the workshop

The training had three main building blocks of real estate marketing that includ brand strategies and communication, legal perspectives and sales.

Udo Okonjo, CEO/Vice Chair of Fine and Country, was joined by Akin Olawore of Akin Olawore & Co, Deolu Dara, VP, Avante Properties & Asset Management, Paul Onwuanibe, Group CEO of Landmark Group, Tayo Otubanjo, Senior Lecturer, Lagos Business School, Charles O’tudor, Principal Consultant, Adstrat Brand to offer insights on the strategies for marketing

real estate.

They took the participants through a full and rigorous training in engendering topics on brand and marketing strategies as well as communications for real estate.

Not one to commit to less than quality and well rounded education, the programme had as facilitators experts in legal perspectives, Okechukwu Ezeokoli, Senior Associate Lexavier Partners, and Amechi Isiekwena, they exposed participants to the legal guidelines involved in successfully practising topnotch real estate marketing.

An important point made was how to act in the interest of a client without going out of the confines of what is legally permissible. This is not always possible but it is recommended. Ogechi Adeola, an associate professor of Marketing, and academic director of Sales & Marketing Academy at LBS, exposed participants to the intricacies of the sales cycle.

There was also an opportunity for participants to enjoy two panel sessions where Dapo Eludire, COO at PropertyPro, Michael Nwayemike, Lead Consultant, Markova Creatives, Henrietta Onwuegbuzie, Senior Lecturer on Entrepreneurship at LBS & Academic Director, Owner-Manager Programme, Izehi Thompson, Service Excellent Expert/CEO, Eleanor Thompson Solutions and Frederic Nader of Elalan Construction also shared experiences.

that will deliver more affordable housing, leading to a significant reduction in Nigeria’s widening housing gap.

Ashiru-Balogun has assured that notwithstanding the what has been achieved, Mixta is not resting on its oars in its bid to bridge Nigeria’s housing deficit.

“This is a goal which requires the collaborative efforts of developers and the governments, at all levels, through innovative technical solutions and effective long term financing mechanisms”, he said.

How real estate firm enables low income...

Continued from page 43 achieve their own dream”, Wisdom Ezekiel, Executive Director Marketing at the company, disclosed.

He said that they were driven by the realization that there are three major things that people want to achieve in life and one of them is financial freedom, explaining that people want to get to a stage in life when they don’t need to work for money, but rather that money would start working for them.

With a platform it calls Enterprise Screening and Resource Acquisition Centre (ESSTRAC), the company has been able to raise over 500 entrepreneurs who have gone ahead to start their own businesses. As a free enterprise system, Pertinence has also empowered over 3,000 people.

But Ezekiel explained that these 3,000 people work with them under a system whereby they make money through doing business with the company even though they are not their employees. “That way, we have been able to tackle the problem of unemployment in Nigeria”, he noted.

“These people don’t earn salary but income from us. What we did was to design a system in which once you come into the system, you invite other people to join you, creating what could be called a network system”, he added.

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Market Survey

Lagos Property Barometer finds 74% of realtors expect increased property supply Endurance Okafor

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recent survey among 606 real estate agents reveals that 74 percent of the realtors see the number of properties for sale increasing in the next three months.

The survey conducted by Scandic Lion, a Nigeria-based real estate firm, showed that an increasing supply of real estate will continue to reign in “property price increases during the spring.”

On the reason there may be property glut in the most populous city in Nigeria, the Scandic Lion mentioned that the “decreased activity in the property market prior to elections may have led to a larger supply on the market.” ”We expect buyers to gradually return to the market after the elections, and the sentiment may, indeed, improve both drastically and rapidly” comments Rachael Aghunor at Scandic Lion.

Meanwhile, the Lagos Property Barometer creates statistics from individual answers of a survey conducted among realtors to gauge property price expectations. Its wide survey gives a better picture of what realtors are saying about the Lagos prop-

erty market.

The Scandic Lion is a fully owned subsidiary of Lion Properties, a real estate firm registered in Finland. Lion Properties invests in Nigerian real estate with the ambition of combining best practices from two cultures in order to create lasting value for home owners in the greater Lagos area.

A further break down of the survey reveals that despite the

expected increase in properties which will not have a matching demand, 65 percent of the realtor-respondents believe prices will rise in the next 12 months.

The survey reveals further that 68 percent of the real estate agents expect Lekki to outperform Victoria Island and Ikoyi in regards to the Lagos Islands area, while Magodo Shangisha and Ikeja are expected to see the largest increases on the Lagos

Mainland.

Also, the sales times of properties are forecast to increase by 52 percent of the agent involved in the survey and only 19percent believe sales times will decrease.

“The main factor behind the longer sales times seems to be increased supply, as more sellers are coming to market than buyers,” the survey said.

Meanwhile, the Scandic Lion Lagos Property Barometer is

a bi-monthly poll conducted among Lagos based real estate agents to gauge market sentiment. Scandic Lion has reviewed over 1400 real estate agents and contacted 606 realtors deemed as active in the market.

The real estate firm cited that the Barometer should be seen as an indication of real estate agent expectations, and the difference between expected and realized may be large.

Market Analysis

Political uncertainty drives real estate sector further into recession in 2018 Endurance Okafor

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nlike other sectors of the economy, Nigeria real estate plunged further into recession in Q4 2018 fuelled by the political uncertainty from the just concluded presidential election.

After showing sign of rebound for two consecutive quarters through to Q3 2018, Nigeria’s property market turned southward, falling deeper into contraction mode.

The figures released by the National Bureau of Statistics (NBS) shows that in real terms, the sector contracted by 3.85 percent in Q4 (year-on-year), which is 2.07 percent points better than the -5.92 percent recorded for the fourth quarter of 2017.

But, on quarter-on-quarter comparison, the contraction reported for the review quarter is lower by -1.17 percent points relative to the -2.68 percent for Q3 2018.

This is despite the fact that

Nigeria’s Gross Domestic Product (GDP) grew by 2.38percent in real terms (year-on-year) in Q4 2018 showing an increase of 0.27percent points when compared to the fourth quarter of 2017.

Responding to the sector performance, Rotimi Akindipe, MD/CEO of Groveworld Realties Limited, a Lagos-based real estate development company said it is not as a result of the fact that people don’t want to buy or carry out transac-

tions in the country’s property market but they are holding back because of the election uncertainty.

“People hold back money during a period like this,” Akindipe said. He explained, however, that “after the election, people’s confidence to spend will increase, and this will rub off on the performance of the real estate sector.”

Meanwhile, there was uncertainty about the outcome of the 2019 presidential elec-

tion which took place over the weekend.

The unforeseen conclusion of the election which many said was a battle between the incumbent president, Muhammadu Buhari and the strongest challenger, former vice president, Atiku Abubakar of the opposition People’s Democratic Party (PDP) affected most sectors of the economy and the country’s property market was not to be left out.

This was affirmed by Yemi Stephens, a partner at Estate Links, a Lagos-based real estate firm, as he said election uncertainty was the major factor that influenced the quarter performance of the sector.

“People assumed or presumed that there might be violence during the election and as such some people did not put money into property investment for the time being,” Stephens said.

He added that the reason political activities impact on real estate sector is because

“property is a sector that is sensitive to any political activities as it is dependent largely on how the political environment is faring.”

A further analysis of Nigeria’s property industry, which requires more than 17 million housing units to tackle the challenges, showed that it contributed 6.60 percent to real GDP in Q4 2018, higher than the 6.50 percent it recorded in the preceding quarter but lower than the corresponding quarter of 2017. The activity accounted for 6.41 percent of total real GDP in 2018.

Although, the 2018 full year contraction rate of 4.72 percent is worse than the 4.27 percent recorded for 2017 by 0.47 percent points. The Q4 2018 contraction rate represents the 12th consecutive quarter in which the sector has been on negative trajectory mode.

However, the contraction in the review quarter is not as bad as the -9.4 percent reported for the sector in Q1 2018

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Live @ the Stock exchange

Tuesday 19 February 2019

Prices for Securities Traded as of Monday 18 February 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. 182,246.22 6.30 -4.55 283 25,321,379 UNITED BANK FOR AFRICA PLC 261,625.57 7.65 -4.37 282 20,448,639 753,515.85 24.00 -3.03 412 15,682,657 ZENITH BANK PLC 977 61,452,675 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 292,546.64 8.15 -3.55 244 9,343,426 244 9,343,426 1,221 70,796,101 BUILDING MATERIALS DANGOTE CEMENT PLC 3,293,930.08 193.30 -0.36 24 61,655 112,754.57 13.00 -0.38 56 615,211 LAFARGE AFRICA PLC. 80 676,866 80 676,866 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 364,247.18 619.00 - 20 37,322 20 37,322 20 37,322 1,321 71,510,289 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,900.00 95.00 - 0 0 11,300.89 45.20 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) UPDC REAL ESTATE INVESTMENT TRUST 15,876.20 5.95 - 1 23,000 1 23,000 1 23,000 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 1 23,000 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 81,082.35 85.00 - 23 215,748 OKOMU OIL PALM PLC. PRESCO PLC 72,600.00 72.60 10.00 24 399,871 47 615,619 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 2 2,520 2 2,520 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,950.00 0.65 -9.72 19 906,486 19 906,486 68 1,524,625

DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 820.66 0.31 6.90 7 976,039 186.79 0.48 - 1 690 JOHN HOLT PLC. S C O A NIG. PLC. 1,903.99 2.93 - 1 177 62,597.91 1.54 -9.94 88 13,691,891 TRANSNATIONAL CORPORATION OF NIGERIA PLC 24,491.02 8.50 -1.73 43 447,337 U A C N PLC. 140 15,116,134 140 15,116,134 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 34,980.00 26.50 - 12 48,713 ROADS NIG PLC. 165.00 6.60 - 0 0 12 48,713 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 4,365.30 1.68 - 5 44,337 5 44,337 17 93,050 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 12,683.78 1.62 - 14 245,714 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 0 0 GUINNESS NIG PLC 142,374.88 65.00 - 34 77,602 INTERNATIONAL BREWERIES PLC. 249,280.00 29.00 - 6 7,427 NIGERIAN BREW. PLC. 599,767.65 75.00 -9.64 103 485,971 157 816,714 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 48,000.00 9.60 4.92 164 4,628,927 DANGOTE SUGAR REFINERY PLC 174,600.00 14.55 -4.90 61 1,168,482 FLOUR MILLS NIG. PLC. 86,107.97 21.00 - 33 201,392 HONEYWELL FLOUR MILL PLC 10,071.35 1.27 -9.29 43 2,979,212 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 1 100 NASCON ALLIED INDUSTRIES PLC 48,352.25 18.25 -3.95 22 447,774 UNION DICON SALT PLC. 3,676.41 13.45 - 0 0 324 9,425,887 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 21,599.32 11.50 - 28 153,445 NESTLE NIGERIA PLC. 1,268,250.00 1,600.00 2.24 52 488,806 80 642,251 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 5,003.38 4.00 5.82 24 290,834 24 290,834 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 50,226.53 12.65 - 19 97,485 UNILEVER NIGERIA PLC. 249,333.24 43.40 -0.23 77 12,995,543 96 13,093,028 681 24,268,714 BANKING DIAMOND BANK PLC 54,658.52 2.36 -1.26 49 4,679,434 ECOBANK TRANSNATIONAL INCORPORATED 256,893.72 14.00 -2.78 25 324,725 FIDELITY BANK PLC 73,306.24 2.53 -2.69 177 12,277,946 GUARANTY TRUST BANK PLC. 1,074,238.04 36.50 -3.82 161 13,862,550 JAIZ BANK PLC 16,499.98 0.56 -8.20 36 9,997,326 SKYE BANK PLC 10,687.83 0.77 - 0 0 STERLING BANK PLC. 69,097.00 2.40 2.13 221 6,123,179 UNION BANK NIG.PLC. 203,845.27 7.00 1.45 93 3,046,301 UNITY BANK PLC 13,325.85 1.14 - 11 89,862 WEMA BANK PLC. 35,874.25 0.93 -9.71 78 7,078,790 851 57,480,113 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 0 0 AIICO INSURANCE PLC. 5,059.05 0.73 -2.67 26 814,739 AXAMANSARD INSURANCE PLC 21,315.00 2.03 - 7 5,800 CONSOLIDATED HALLMARK INSURANCE PLC 2,276.40 0.28 - 1 1,000 CONTINENTAL REINSURANCE PLC 19,811.94 1.91 - 0 0 CORNERSTONE INSURANCE PLC 2,945.90 0.20 - 7 553,723 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 1 2,000 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 2,343.50 0.32 - 6 236,370 LAW UNION AND ROCK INS. PLC. 2,191.13 0.51 - 1 4,285 LINKAGE ASSURANCE PLC 5,600.00 0.70 - 6 39,000 MUTUAL BENEFITS ASSURANCE PLC. 2,160.00 0.27 - 8 161,000 NEM INSURANCE PLC 12,673.21 2.40 -2.04 14 697,146 NIGER INSURANCE PLC 1,702.69 0.22 -4.35 10 1,665,000 PRESTIGE ASSURANCE PLC 2,691.28 0.50 - 3 5,263 REGENCY ASSURANCE PLC 1,600.50 0.24 - 3 32,230 SOVEREIGN TRUST INSURANCE PLC 1,751.57 0.21 -4.55 2 1,021,613 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 - 8 606,000 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 0 0 VERITAS KAPITAL ASSURANCE PLC 2,912.00 0.21 - 2 302,000 WAPIC INSURANCE PLC 5,486.92 0.41 -4.65 28 641,543 133 6,788,712 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 NPF MICROFINANCE BANK PLC 3,750.09 1.64 - 17 327,027 17 327,027

MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,116.00 0.98 - 0 0 7,370.87 0.50 - 0 0 ASO SAVINGS AND LOANS PLC INFINITY TRUST MORTGAGE BANK PLC 5,922.05 1.42 - 0 0 2,265.95 0.20 - 1 39,500 RESORT SAVINGS & LOANS PLC UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 1 39,500 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,740.00 4.37 - 41 369,533 35,585.28 6.05 - 6 30,900 CUSTODIAN INVESTMENT PLC DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 46,734.40 2.36 -0.84 171 10,243,968 1,697.97 0.33 - 1 70,000 ROYAL EXCHANGE PLC. STANBIC IBTC HOLDINGS PLC 496,666.82 48.50 - 22 464,550 20,100.00 3.35 -5.63 70 1,135,665 UNITED CAPITAL PLC 311 12,314,616 1,313 76,949,968 HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 2 1,000 1,030.41 0.29 -3.33 7 840,000 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 9 841,000 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,050.00 4.70 - 4 21,000 14,350.52 12.00 - 23 97,591 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 4,140.56 2.40 - 4 89,910 1,329.41 0.70 - 6 97,400 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 2 40 39 305,941 48 1,146,941 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 0 0 0 0 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 0 648.00 6.00 - 0 0 NCR (NIGERIA) PLC. TRIPPLE GEE AND COMPANY PLC. 381.11 0.77 - 0 0 0 0 PROCESSING SYSTEMS CHAMS PLC 939.21 0.20 - 17 21,700,525 12,306.00 2.93 - 1 2,000 E-TRANZACT INTERNATIONAL PLC 18 21,702,525 18 21,702,525 BUILDING MATERIALS BERGER PAINTS PLC 2,391.04 8.25 - 2 2,400 23,800.00 34.00 6.92 12 5,178,053 CAP PLC CEMENT CO. OF NORTH.NIG. PLC 262,870.02 20.00 -4.76 20 326,535 633.11 0.30 3.45 3 282,660 FIRST ALUMINIUM NIGERIA PLC MEYER PLC. 286.87 0.54 - 1 18,333 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,999.41 2.52 - 0 0 1,279.20 10.40 - 0 0 PREMIER PAINTS PLC. 38 5,807,981 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 3,364.13 1.91 -4.50 9 5,876,484 9 5,876,484 PACKAGING/CONTAINERS BETA GLASS PLC. 39,497.79 79.00 9.27 18 262,090 GREIF NIGERIA PLC 388.02 9.10 - 0 0 18 262,090 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 65 11,946,555

CHEMICALS B.O.C. GASES PLC. 1,577.57 3.79 - 2 6,507 2 6,507 METALS ALUMINIUM EXTRUSION IND. PLC. 1,803.64 8.20 - 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. 50.60 0.23 - 0 0 0 0 2 6,507

ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,315.17 0.21 5.00 14 1,837,332 14 1,837,332 INTEGRATED OIL AND GAS SERVICES OANDO PLC 69,615.91 5.60 -6.67 101 1,703,804 101 1,703,804 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 61,301.19 170.00 -7.61 62 502,271 CONOIL PLC 15,960.90 23.00 - 25 24,258 ETERNA PLC. 5,933.86 4.55 -4.21 15 134,220 FORTE OIL PLC. 36,469.47 28.00 - 31 36,532 MRS OIL NIGERIA PLC. 6,354.80 20.85 - 20 43,665 TOTAL NIGERIA PLC. 64,509.15 190.00 -7.32 37 43,082 190 784,028 305 4,325,164 ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 16,576.10 1.70 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 411.72 0.35 - 0 0 0 0 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,242.23 5.50 - 3 6,000 TRANS-NATIONWIDE EXPRESS PLC. 295.37 0.63 - 8 248,930 11 254,930 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,801.22 3.10 - 1 50 IKEJA HOTEL PLC 3,762.62 1.81 - 3 7,070 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 46,362.46 6.10 - 4 707 8 7,827 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 0 0 0 0 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 - 5 77,800 LEARN AFRICA PLC 1,157.18 1.50 - 7 32,217 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 1,013.81 2.35 - 9 117,086 21 227,103 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 729.39 0.44 4.76 15 1,220,617 15 1,220,617

Tuesday 19 February 2019

FT

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BUSINESS DAY

FINANCIAL TIMES

47

World Business Newspaper

Australian political parties hit by cyber attack

‘Sophisticated state actor’ to blame for intrusion just months before election, PM says Jamie Smyth

A

ustralia’s main political parties have been hacked by a “sophisticated state actor” just months before the country’s election, the government said on Monday.

The disclosure comes just 10 days after the Australian parliament revealed its computer networks were the subject of a “malicious intrusion”, prompting the government to order an investigation and bolster cyber security.

Scott Morrison, Australia’s prime minister, told parliament the country’s cyber security agencies have moved decisively to confront the hackers and believed a state actor was responsible for the attacks.

He said there was no evidence of electoral interference and the government had put in place measures to ensure the integrity of the electoral system.

“Members will be aware that the Australian Cyber Security Centre recently identified a malicious intrusion into the Australian Parliament House computer network,” he said.

“During the course of this work, we also became aware that the networks of some political parties

— Liberal, Labor and the Nationals — have also been affected.”

Mr Morrison did not accuse any individual country, although cyber security experts have said China or Russia are the most likely state actors to engage in that sort of attack ahead of an election.

“There was until now some hope that Australia’s elections would not be on the radar of state actors such as China or Russia,” said Fergus Hanson, head of cyber security at the Australian Strategic Policy Institute, a Canberra-based think-tank. “This is a big wake-up call that Australia is no longer on the periphery of these issues.”

Australia’s government has said it will probably call an election in May and the cyber attacks have raised fears the campaign may be subject to the same type of electoral meddling seen in the 2016 US presidential election. US intelligence agencies concluded Russian agents hacked the Democratic National Committee and leaked sensitive information about Hillary Clinton, the Democratic candidate, during that campaign.

“That Australian political parties were attacked in the run-up to a national election should surprise no one,” said Steve Ledzian, chief

PM Scott Morrison did not accuse any individual country, although cyber security experts have said China or Russia are the most likely state actors to be involved © Photo: Lukas Coch/AAP/dpa

technology officer for Asia-Pacific at FireEye, a cyber security company.

“Other nation-states are interested to learn what’s happening behind the scenes, who is talking with whom, how policies are formed, and so on.”

Mr Ledzian added that this type of information was increasingly

collected through cyber espionage because it was effective, economical, low risk and offered plausible deniability.

Australian state agencies and universities, including the Bureau of Meteorology and Australian National University, have been victims of cyber attacks in the past, leading to reports that China was

responsible. Beijing has denied these claims.

Last week, a spokeswoman for China’s ministry of foreign affairs rejected suggestions published in Australia that Beijing was responsible for the recent cyber attack on the parliament in Canberra, saying these were part of a “smear campaign”.

China leads Asia equities rally ahead of trade talks Fed nears decisions on its asset portfolio Index of mainland shares rises 3.2 per cent as hopes for US-China trade deal grow

Hudson Locke

C

hinese stocks had their best day since early November, jumping more than 3 per cent, as investors held on to the belief that Beijing and Washington will resolve a trade dispute that has hung over the country’s economy.

Sentiment towards Chinese equities has brightened this year in a sharp reversal from 2018, when anxiety over the trade tussle with the US, and evidence of a slowdown in spending by domestic consumers, left the country’s stocks as the world’s worst performing major market.

US President Donald Trump, who has lambasted China for unfair trade practices, tweeted over the weekend that US negotiators had “very productive” meetings in Beijing. Should the talks, which resume this week in Washington, fail to deliver an agreement by the end of the month then US tariffs on $200bn of Chinese exports will move sharply higher.

China’s CSI 300 index of major Shanghai and Shenzhenlisted finished up 3.2 per cent, with the technology, telecoms, healthcare and financial services sectors led the gains.

Hong Kong’s Hang Seng rose 1.6 per cent.

Marc Ostwald, a strategist at

Admisi, said that investors “continue to focus on the optimism about a positive conclusion to US/China trade talks”.

The spectre of a damaging trade war between the world’s two largest economies contributed to a chill in appetite for stocks last year, with the car industry among those caught in the crosshairs. Weaker Chinese demand has hurt Germany’s exporters, while it is also firmly on the radar of Federal Reserve policymakers who have grown more concerned about the outlook for the global economy.

This year, it is not only optimism over the trade talks that has helped Chinese stocks stage a recovery. Beijing has orchestrated a series of stimulus measures which saw lending from the country’s banks reach a record high in January. Foreign investors last month channelled a record $9bn into Chinese equities, the largest single monthly inflow on record.

European stocks were little changed in early trading, but, like most major equity markets, have bounced after December’s turbulence. The benchmark Stoxx Europe 600 has climbed almost 10 per cent this year. US markets are closed today for the Presidents Day holiday.

Elsewhere in Asia, Tokyo’s Topix jumped 1.6 per cent, with energy stocks leading the way.

Some officials think balance sheet reduction programme will end this year Sam Fleming and Joe Rennison

F

ederal Reserve officials are getting closer to identifying when they will end their market-sensitive balance sheet reduction programme, with some signalling it could be completed this year as they opt to keep a hefty quantity of reserves in the financial system.

Recent comments from policymakers including Fed governor Lael Brainard and Philadelphia Fed president Pat Harker point in the direction of well over $1tn of commercial bank reserves being maintained, analysts said.

Even if the Fed decides when to halt the programme, however, it still leaves open major questions over the future composition of the Fed asset holdings — an issue that could have important market ramifications of its own.

“The picture coming together is one of a central bank that wants to give the market as much of a concrete timetable in March as it can,” said Lou Crandall, chief economist at Wrightson Icap. “We don’t know the precise level of specificity they will achieve.”

The Fed swelled its balance sheet to $4.5tn as it battled the financial crisis and economic downturn, purchasing treasuries and mortgagebacked securities in a bid to buoy markets and the economy. Former Fed chair Janet Yellen put the process into reverse in 2017, gradually allowing the asset holdings to shrink as the central bank withdraws its monetary support for the economy.

Late last year investors developed an acute aversion to the Fed’s programme of reducing its asset holdings, arguing it was damaging

equity markets. While Fed officials were sceptical about the complaints, Fed chairman Jay Powell sought to quell some of Wall Street’s angst last month by insisting the central bank was willing to change tack if financial or economic conditions required it.

The flipside of the Fed’s asset holdings are liabilities including currency in circulation and commercial bank reserves held on deposit with the Fed. The Fed has decided it wants to keep these deposits in more ample supply than before the crisis, but gauging the exact levels of reserves it needs to limit volatility in money markets is difficult.

Reserves are now around $1.6tn, down 40 per cent from their peak levels but far above pre-crisis norms.

The Fed launched a survey of senior financial officers this month as it narrows down its options for the future quantity of reserves — on top of a survey it conducted last autumn. Mr Harker said in an interview with MNI this month that reserves would need to be $1tn-$1.3tn to prevent excessive volatility in money markets, plus a buffer to cover fluctuations in demand and supply.

Ms Brainard last week told CNBC that she wanted to see a “comfortable buffer” of spare reserves, with the balance sheet normalisation process coming to an end “later this year.”

Loretta Mester, the president of the Cleveland Fed, said the Fed would be finalising its plans for ending the runoff of its balance sheet at “coming meetings”, adding that the central bank had already made “considerable progress” in normalising the size of the balance sheet.

Analysts are looking for the Fed to indicate a range for the quantity of reserves in the system, as well as indications of an end-date for the reduction programme. Mr Powell said

last month he wanted to approach the final level “quite carefully” — which some take to imply the Fed will slow, or taper, the speed at which its balance sheet shrinks as it glides towards an end point. The run-off is currently running at a pace of around $40bn a month.

But it is not just the eventual size of the balance sheet that investors are monitoring: the composition of its asset portfolio also matters. Currently, the Fed owns Treasuries ranging from two to 30 years, the standard maturity denominations, seeking to broadly reflect the make-up of the market. It does not buy shorter-dated Treasury “bills” in its asset portfolio.

After the balance sheet reduction process is over the Fed is expected to continue letting its holdings of mortgage-backed securities run off — and one looming question is whether it actively sells some of those MBS to clean them off its balance sheet more quickly. To maintain its balance sheet it will eventually have to become a net buyer of Treasury securities again. Some Fed policymakers want to weight new purchases towards shorter-dated securities, while others want to match the overall spectrum in the treasury market.

Orienting the Fed’s portfolio towards the shorter-dated securities could put downward pressure on shorter-dated yields and push longerdated yields higher, in effect tightening financial conditions for companies borrowing money for longer periods of time. The benefit of this would be that should the economy fall into recession, the Fed will be in a position to reverse its tactic, buying more longer-dated Treasuries to help prop up markets as it did in the aftermath of the last financial crisis through what became known as “operation twist”.

48

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NATIONAL NEWS

FT UK MPs slam Facebook for data abuse, call for social media regulator

Mistrust of vaccinations contributes to global measles outbreaks

Tech group should be investigated for ‘intentionally’ violating privacy laws, say British lawmakers

Increased scepticism about immunisation chimes with growth of populist narrative

Harriet Agnew

Patricia Nilsson and Hannah Murphy

D

B

ritish MPs have called for a regulator to police content on social media sites, financed by a new levy on tech companies, and an inquiry into the effect of disinformation on past electoral contests.

Concluding an 18-month long investigation into “fake news”, disinformation and political campaigns, the House of Commons digital, culture, media and sport committee also accused Facebook of “intentionally and knowingly” violating data privacy laws and said it should be the subject of a probe by the competition and data watchdogs.

Damian Collins, the Conservative MP who chairs the committee, warned that democracy was at risk because of targeted disinformation campaigns from unidentifiable sources, delivered through social media platforms.

“We need a radical shift in the balance of power between the platforms and the people,” he said. “The age of inadequate self-regulation must come to an end.”

In their report, the MPs said there was an urgent need to establish an independent regulator for social media sites, as well as a compulsory code of ethics similar to the guidance issued by Ofcom, the media regulator. Under such a structure, social media companies would be required to take down proven sources of disinformation as well as “harmful content” or face potential fines from the regulator.

The proposed regulator, which the committee suggested be paid for by tech companies operating in the UK, would have “powers to obtain any information from social media companies that are relevant to its inquiries”.

The MPs also called on the government to launch an independent investigation into the impact of disinformation and voter manipulation in past votes, including the 2017 general election, the 2016 Brexit referendum and the Scottish referendum in 2014.

“While the UK government has accepted evidence of Russian activity in the Skripal poisoning case it has been reluctant to accept evidence of interference in the 2016 UK Referendum,” the report said, referring to last year’s poisoning of former Russian agent Sergei Skripal in the cathedral city of Salisbury.

The committee said the government should reform electoral communications laws and rules on overseas involvement in elections, stating current regulation was “not fit for purpose”.

It also called for the Competition and Markets Authority to launch an investigation into allegedly anti-competitive practices at Facebook. This recommendation was based on evidence the committee uncovered in December that appeared to show Facebook offered preferential data access to certain companies and developers.

Facebook said at the time that the documents published by the committee, including internal emails related to the company’s data sharing practices, were presented in a way that was “very misleading without additional context”.

Chief executive Mike Corbat also ruled out Citigroup’s cinvolvement in any wave of US banking consolidation © Reuters

Citigroup chief expects machines to replace thousands of call centre jobs US bank can use tech to serve customers better and more cheaply, says Mike Corbat Laura Noonan and Patrick Jenkins

C

itigroup chief executive Mike Corbat has suggested that “tens of thousands” of people working in the US bank’s call centres are likely to be replaced by machines that can “radically change or improve” customers’ experience while cutting costs.

Mr Corbat, who runs America’s fourth-largest bank by assets, made the comments in an interview with the Financial Times in which he also ruled out Citi’s involvement in any wave of US banking consolidation triggered by the $66bn SunTrust-BB&T merger and justified its continued presence in China.

Under pressure to bring its cost base in line with peers, Citi executives have been upfront about the impact of technology on their 209,000-strong global workforce, including last summer’s warning that as many as half of the 20,000 operations staff in its investment bank could be supplanted by machines.

Mr Corbat’s latest comments are the most explicit the company has been on how the $8bn a year Citi spends on technology could transform its vast consumer bank, which serves 100m customers across 19 markets.

“When you think of data, AI [artificial intelligence], raw digitisation of changing processes, we still have tens of thousands

of people in call centres, and we know when we can digitise those processes we not only radically change or improve the customer experience, it costs less to provide,” he said.

He would not specify how many people Citi employed in call centre jobs or how many would be affected, but said that the “30 most common customer journeys”, such as ordering replacement bank cards and asking about statements, were “pretty easy to deal with”.

Other companies are already using AI in call centres — UK retailer Marks and Spencer has systems that can analyse voice commands in real time and direct queries to the right department, while Google is also developing software that uses open-ended questions to find the best answers for customers and cut waiting times.

Citi has no plans to get rid of humans in its call centres altogether though. “There’ll always be the kind of thing where you’ve actually got to have someone to help solve,” said Mr Corbat. “We don’t want people frustrated in that.”

Mr Corbat cited the potential of Citi’s technology as one of the reasons that his bank would not take part in the wave of US retail banking mergers that some analysts expect to be kicked off after BB&T and SunTrust unveiled the sector’s biggest post-crisis merger

a fortnight ago.

SunTrust and BB&T’s merger was “predominantly driven by the need for scale around the ability to invest in and implement technology”, said Mr Corbat. “We have that scale . . . We’re comfortable with the markets we operate in, we’re comfortable with our client base . . . That very quickly leads you back to a conversation about organic growth.”

In the era of Trumpian trade wars, criticism including activist investor ValueAct, have questioned Citi’s geographic spread and its exposure to Mexico, where it owns the country’s secondlargest bank. Citi is also the most prominent of the US banks in China.

“China needs soy, China needs beef, China needs pork, Chinese needs import of raw materials into their supply chain,” said Mr Corbat. “Those routes may change.

So as we [in the US] get tariffs and embargoes and things, those soy routes may move from the US to Brazil and Argentina — two places where we operate. We’ve seen a redrawing of these trade routes, but the demand hasn’t gone away.”

He added that Citi remained the best owner for Citibanamex in Mexico because “if you look at the pace of digital adoption and the expectation of consumer clients, the technology we’re already using in Asia and the US is totally portable to Mexico today”.

Seven MPs resign from Labour party in challenge to Corbyn Split by pro-EU moderates comes ahead of crucial parliamentary votes on Brexit Henry Mance

S

even pro-EU Labour MPs have resigned from the party in a major challenge to its leftwing leader Jeremy Corbyn.

The long-rumoured split in Britain’s main opposition party comes days before key parliamentary votes on Brexit, in which the MPs wanted Mr Corbyn to back a second referendum on EU membership.

The seven MPs — Chuka Umunna, Luciana Berger, Mike Gapes, Chris Leslie, Ann Coffey, Angela Smith and Gavin Shuker — said they would call themselves The Independent Group and would sit as a separate group in parliament. Their slogan is #ChangePolitics.

They represent the biggest defection of Labour MPs since Mr Corbyn was elected leader in 2015.

Previously, economically moderate MPs have left the party or resigned their seats one at a time.

On Sunday John McDonnell, the Labour shadow chancellor, warned that a party split would be “like the 1980s”, arguing that the formation of the moderate Social Democratic party had allowed Margaret Thatcher to stay in power.

Ms Berger, Mr Umunna and Mr Leslie have faced threats from Labour party members wanting to deselect them as their MPs. Ms Berger said she had become “ashamed” to remain in Labour, and that she could not remain in a party that had become “institu-

tionally anti-Semitic”. Mr Leslie said the seven MPs could no longer “in all conscience” knock on doors campaigning for Labour.

In a statement of values posted online, The Independent Group MPs said Mr Corbyn’s Labour “would weaken our national security”, had failed “to provide a strong and coherent alternative to the Conservatives’ approach”, and “threatens to destabilise the British economy in pursuit of ideological objectives”.

Mr Corbyn said he was “disappointed that these MPs have felt unable to continue to work together for the Labour policies that inspired millions at the last election and saw us increase our vote by the largest share since 1945.”

espite the rising number of measles cases and an official push to boost immunisations, Alexandre Cerqueira and his partner Nhep Srey Mom are determined not to vaccinate their two young children against the disease.

Mr Cerqueira lives in the country of Louis Pasteur, the French biologist who discovered the principles of vaccination in the 19th century. But he nevertheless doubts the efficacy of the vaccine, worries about the presence of tiny amounts of aluminium, and is concerned about what he sees as potential side-effects such as autism.

Scientific research overwhelmingly supports the need for vaccinations. But Mr Cerqueira believes that the profit potential of vaccines for big pharma drives the industry, thinks that statistics can be manipulated by interested parties such as politicians, and is sceptical of the role of so-called medical experts in the debate.

“I don’t like to hear these described as conspiracy theories, because it denigrates ordinary people’s ability to do their own research and analysis,” said Mr Cerqueira, 36. “It’s not because you’re in an important position that you’re necessarily right.”

The latest figures from the World Health Organisation show a sixfold increase in measles outbreaks last year in France. With nearly 3,000 people in France contracting measles last year and three dying, the authorities there have taken a tough new approach to compulsory vaccinations, threatening to bar children who have not been vaccinated from attending school.

This has further angered antivaxxers such as Mr Cerqueira, who will have to prove that their children have been inoculated before they can attend school.

“We’ll be obliged to vaccinate our children, against our will, in order for them to go to school,” he said. “It’s very difficult to find yourself in this situation.”

The trend in France is part of global phenomenon. The WHO has warned that efforts to halt the spread of measles worldwide are slipping, with reports suggesting that the number of cases globally was up about 50 per cent last year.

In the Philippines for instance, authorities have warned that there have been 5,600 cases of the disease and 87 deaths so far this year, more than double the 2,500 cases seen in a normal year. They too blame parents’ reluctance to vaccinate their children because of Dengvaxia, a now-discontinued dengue vaccine from Sanofi that caused some children who were given it to become ill.

“This is an absolutely avoidable outbreak,” said Gundo Weiler, a WHO representative in Manila.

The increased scepticism chimes with the growth of a populist narrative about vaccination, centred on distrust of experts, scientists and elites.

President Donald Trump has previously linked MMR (measles, mumps and rubella) vaccinations to autism, even though the research that initially suggested this link has been widely discredited.

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FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

EU says UK will struggle to match its free trade deals Agriculture commissioner warns that a no-deal Brexit would cause jump in UK food prices Jamie Smyth

T

he UK will struggle to conclude the same high quality free trade deals as the European Union due to its small size and continuing uncertainty over Brexit, the EU’s agriculture commissioner has said.

Phil Hogan, who was visiting Australia for talks on an EU-Australia free trade agreement, also warned that a no-deal Brexit would result in a big jump in food prices in the UK, a move that would cause the public to punish those responsible at the ballot box.

“Size matters in trade,” Phil Hogan told the FT in an interview.

“Five hundred million customers will always resonate more with a third country when they want to do a trade deal with the EU, rather than 65m. This is what Mr [Liam] Fox is finding out as he travels around the world. Japan recently told him: ‘Come back to us when we see the implementation of the EU deal’.”

Mr Hogan said the EU had 54 existing trade deals around the world and London would find they won’t be able to get the “same terms and conditions” when they have to revisit these agreements post Brexit.

Mr Hogan said Canberra wanted to conclude a free trade deal with the EU this year and was giving priority to these negotiations, rather than talks with London over a future trade relationship. He signalled a political agreement on a deal could be in place before May, when the European Parliament and Australia will hold elections.

“The uncertainty in the UK is not helping these [UK-Australia] negotiations . . . They [Australians] don’t know what regime will be in place with the UK and when it will be available to intensify these negotiations or if there will be a transition period or not in the future relationship between the EU and the UK,” he said.

“In the meantime, they [the Australians] are intensifying the negotiations with the EU with the intention of doing an FTA deal this year.”

Australia’s government has said it is pursuing EU and UK trade deals, although it cannot formally begin talks with London until it has formalised its plans to leave the EU. In the event of a no-deal Brexit, Canberra has indicated it wants to negotiate a fast track trade deal to minimise disruption for business.

The EU is Australia’s secondbiggest trade partner with bilateral trade in goods worth almost €48bn in 2017. Bilateral trade in services is worth an extra €27bn. The UK is Canberra’s fifth-largest trading partner — with two-way trade valued at A$27bn ($19bn) — and the secondbiggest foreign investor in Australia, after the US. Alan Oxley, managing director of ITS Global, a trade consultancy based in Melbourne, said confusion over the UK’s Brexit position would probably prompt Australian negotiators to sit on the sidelines until London’s path forward became clearer.

He said Canberra wanted to liberalise investment flows between the two countries, particularly since the UK was the second-biggest investor in Australia. But he said agriculture could be a sticking point.

“Australian beef farmers will want greater access to the UK market, which will be a sensitive issue for farmers . . . This will prove to be a tricky issue to settle.”

Mr Hogan warned that the UK would probably experience a “major increase in food prices” in the event of a no-deal Brexit, with no transition period during which existing EU rules and tariffs would remain in place.

“The UK is 60 per cent self-sufficient in food — if they don’t get a frictionless trading arrangement on food between the EU and UK in place then you will have a major increase in food prices for the UK. I don’t think this will be politically popular.

“The people that will cause any difficulty about bringing this situation about will not be rewarded by their constituents when it comes to the election.”

Baring Vostok appoints new management team after founder arrest Russian private equity group says it will conduct ‘business as usual’ Max Seddon

R

ussian private equity firm Baring Vostok has appointed new management and intends to conduct “business as usual” after its founding partner Michael Calvey and three other executives were arrested on fraud charges last week.

Senior partner Elena Ivashentseva and co-founder Alexei Kalinin will run the firm while Mr Calvey is detained, the company said in a statement Monday.

Mr Calvey and his colleagues face potential sentences of at least three years in prison on charges of allegedly defrauding Vostochny Bank, a top-30 lender owned by Baring Vostok, of Rbs2.5bn in a related-party transaction. His arrest shocked the Russian investment community, where he is the most prominent foreign executive ever to face criminal charges.

In court last week, Mr Calvey denied the charges against him and said they were the result of a conflict with Vostochny minority shareholders Artem Avetisyan and Sherzod Yusupov over a London arbitration dispute and the bank’s recapitalisation. A court ordered him to spend two months in pre-trial detention.

Ms Ivashentseva and Mr Kalinin said: “We have always acted in full compliance with the law and believe that truth is on our side. Your support has given us additional strength and inspired us to fight for what we know to be right. The claims that have been brought against our colleagues are baseless and simply untrue, and we are convinced that this will be established in court.”

Baring Vostok added that it had temporarily suspended the authority of Mr Calvey and the other partners, Philippe Delpal, Vagan Abgaryan, and Ivan Zyuin.

EU agriculture commissioner Phil Hogan says the UK will not get the ‘same terms and conditions’ as the EU when it revisits trade deals post-Brexit

Do we need a global technology regulator for financial services?

Guest writer This is a guest post by Axel P. Lehmann, UBS president of personal and corporate banking and president of UBS Switzerland, and Steffen Kern, chief economist and head of risk analysis at the European Securities and Markets Authority (Esma).

Both are also members of the WEF global future council on financial and monetary systems.

C

onsistent international standards are vital to underpin the efficient flow of capital to the best opportunities.

Cross-border financial intermediation provides the necessary connection between borrowers and savers, which supports GDP growth.

We saw this exemplified following the financial crisis, when the international community, through the G20 and the Financial Stability Board (FSB) developed an ambitious global response. A global crisis demanded a global reaction.

International co-operation among regulators was central to making financial markets more resilient.

This said, the world of 2008 was very different to the one in which we are currently operating. Increasingly, inward-focused domestic policy perspectives are shaping policy agendas. Evidence of this shift in political strategy is seen in the US “doctrine of patriotism”, the UK’s decision to leave the European Union, and escalating trade disputes as a few examples.

The belief that going it alone yields better outcomes than international co-operation continues to gain traction.

And these tendencies are deeply concerning. Our global economy is characterised by unprecedented levels of interconnectedness and these connections have benefited many citizens, investors and corporations.

The new challenge posed by technology While certainly not a global crisis, technology is currently positioned to cause tremendous change in financial services at a global level.

Distributed ledger technologies, artificial intelligence, machine learning and other innovations have the potential to change business models and value chains

across the financial industry.

A recent example of new opportunities made possible through technology is the development of digital identities (E-IDs). E-IDs are particularly significant as verifiable identities are key to the next phase of the digital financial experience. The main benefit of an E-ID will be its transportability, enabling clients to access their optimal choice of services wherever and whenever they choose in a borderless online world.

Important policy advances have been made in some economies, but E-IDs will only work if there are common regulatory standards and recognition of various E-ID schemes at international level.

Aligning international regulation is not a challenge isolated to E-ID technology. Rapid technological change has the potential to usher in a new phase of financial globalisation, with benefits for investors and households in both developed and developing countries. However, making effective use of technology’s potential will require a new wave of global policy co-ordination.

Why technology in financial services requires co-ordinated regulation As new technology multiplies and becomes ubiquitous in the financial sector, new risks will need to be contained and regulatory frameworks will need to be internationally co-ordinated and upgraded.

From a risk perspective, cyber security and cyber resilience are top priorities. According to the World Economic Forum Center for Cybersecurity, economic loss due to cyber crime is predicted to reach $3tn by 2020, and 74 per cent of the world’s businesses can expect to be hacked in the coming year. Digital connectivity makes cyber crime a global threat that requires a standardised approach, yet, as recognised by the FSB, regulatory and supervisory approaches to cyber security are becoming increasingly fragmented, undermining the effectiveness of financial institutions’ efforts to address cyber threats.

Additionally, new products, business models and players fall out of the current remit of existing regulatory and supervisory mandates of banking and capital

markets authorities. This requires reflecting on the need for adaptation of existing mandates as well as on the necessity of aiming for a single regulatory approach to technology in financial services at international level.

Unlocking the benefits of new technology Despite the regulatory challenges, the opportunities made possible with new technology are too great to ignore. Such changes range from product design to client interaction to back office operations to compliance and reporting. And they can translate into significant benefits for consumers of financial services as well as society in general.

Mobile and internet-based services are being made available independent of physical location.

Only via co-operation will global resilience be ensured and the necessary level playing field emerge, enabling higher liquidity in financial products, safer transactions, fair pricing, lower compliance costs and less complexity — all to the ultimate benefit of corporate and retail consumers of financial services.

In terms of inclusion, new technologies also have great potential for supporting access to finance in less developed regions of the world, with mobile payment platforms in Kenya or India being prime examples. Yet, the challenges from multinational payment systems in terms of investor protection, information security and system integrity will be similar around the world and they will require a cohesive response.

Global policy co-operation on emerging technology is necessary to enable better finance Opportunities will emerge from these technological changes. And they have immense potential.

Globally aligned standards, data templates, protocols, conductof-business and anti-fraud rules are necessary preconditions for optimal development of new technological advances to support growth and, ultimately, societal wellbeing. The conclusions of the recent G20 Summit in Buenos Aires send a reassuring message, highlighting the commitment to continued regulatory and supervisory co-operation.

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ANALYSIS Saudi crown prince pledges $20bn investment for Pakistan Mohammed bin Salman kicks off tour that is expected to include India and China Farhan Bokhari and Stefania Palma

German export machine braced for global shocks With free trade and open borders under threat, a debate on how to protect businesses is set to divide coalition politicians Guy Chazan

W

hen Werner Lieberherr looks at the global economy, he sees nothing but red flags. “Brexit is a mess, China is slowing, the US is losing altitude,” he says. “We’ve definitely passed the peak of global growth.”

That is potentially worrying for the company he runs, Mann + Hummel, a producer of filter systems based in south-western Germany which employs 20,000 people. Like most of his peers, he is highly reliant on exports. Yet the markets he sells into are looking increasingly fragile.

“From a geopolitical risk perspective, the [US-China] trade wars, populism in the EU, Brexit — these are all major concerns for me at the moment,” Mr Lieberherr says. To get ahead of the coming downturn he has just announced a €60m costcutting programme at the familyowned business that could involve steep job cuts.

Mann + Hummel is not alone.

Thousands of companies in Germany are bracing themselves for a slowdown in their biggest markets which could have big implications for the country’s economic prospects. The government in Berlin now expects growth in gross domestic product of just 1 per cent this year, down from an earlier estimate of 1.8 per cent. That would be the weakest number since 2013.

The slowdown has exposed a thorny problem for Germany.

An export champion, it has been one of the biggest beneficiaries of globalisation, free trade and open borders: exports are equivalent to 50 per cent of its GDP. “Germany is more deeply entwined with the global economy than perhaps any other country,” says Olaf Scholz, the finance minister. “Our prosperity, jobs, social infrastructure depend on our continued ability to sell our products to the rest of the world.”

Yet its export success also makes it uniquely vulnerable to external shocks. As a result, Donald Trump’s showdown with Xi Jinping, America-first protectionism and weakening growth in big markets like China — whose GDP expanded by just 6.6 per cent last year, the lowest rate since 1990 — are taking a much bigger toll on Germany than on other countries such as France.

“The big question is: do we still have the right international political framework for an economy like ours that is so open to the world?” says Michael Hüther, head of the German Economic Institute in Cologne. “That’s a question that we never had to discuss in the past, but we’re discussing it now.”

The signs that Germany’s export juggernaut may be sputtering are beginning to pile up. Germany only narrowly avoided a technical recession last year after its GDP shrank by 0.2 per cent in the third quarter but remained static in the fourth quarter. Over the year, growth came in at a disappointing 1.4 per cent, compared with 2.2 per cent in 2017.

Meanwhile in December, new factory orders and exports declined, while industrial output unexpectedly fell for the fourth consecutive month, amid weaker demand from abroad. In the same month, retail sales fell by the fastest rate in 11 years.

It is now clear that after nine years in the economic stratosphere, Germany is returning to earth with a bump. “Industrial output and employment have been rising in a more-or-less straight line since 2011, which is, in itself, astonishing,” says Mr Hüther. But global insecurities have thrown a “spanner in the works”.

The mood in German boardrooms has soured markedly. The business climate index compiled by the Ifo Institute in Munich fell from 101 points in December to 99.1 in January, its lowest level in three years. “The boom has fizzled out,” says Thorsten Polleit, chief economist at Degussa-Goldhandel.

“We’re seeing a return to harsh reality.”

Yet there are two sides to the story: while industry is seeing a downturn, much of the rest of the economy is doing well. Many fundamentals continue to be strong: employment is at a post-reunification high; household spending is healthy; and wages and pensions have been rising at rates above inflation. Borrowing costs remain low and some recent social giveaways should act as a small fiscal stimulus.

“Domestic demand is still very strong,” says Klaus Deutsch, head of economic policy research at the BDI, the main German business lobby. “Investments in construction, in equipment are still robust, as is private consumption. So in domestic terms the economy is still in expansion mode.”

The optimists claim that the dip at the end of last year was caused by temporary factors which have now eased. One is the new emissions standards introduced last September which created huge bottlenecks in the car industry, forcing companies to cut back production.

Another is the abnormally low water levels in the Rhine, which disrupted shipments of chemicals.

That’s why ministers are so sanguine, at least in public. “In contrast to most of our European neighbours, Germany has now had nine straight years of economic growth — the longest such uninterrupted run

since 1966,” says economy minister Peter Altmaier in an interview.

External factors such as the US-China trade conflict and Brexit have clouded the picture, he says.

“For the second time since 2013 we are seeing growth temporarily weaken,” he adds. “But we are still in an upswing — and I think it can continue for the foreseeable future.”

That dichotomy between the domestic situation and the external environment explains why many companies have yet to really feel the impact of the slowdown. A recent survey by EY found 65 per cent of Mittelstand firms — the small and medium-sized enterprises that are the backbone of the economy — were “thoroughly satisfied” with the state of their business — 4 percentage points more than a year ago, and the highest level since the survey started in 2004.

Nearly a third wanted to invest in new machines or building, and 39 per cent to hire new workers.

“The geopolitical tensions clearly are much less of a worry for the Mittelstand than for the big industrial companies,” says EY partner Michael Marbler.

One outfit that symbolises the positive mood is HAWE Hydraulik, an engineering group in Munich that makes hydraulic components and systems. HAWE had a record year last year, with revenues of €363m. Its chief executive, Karl Haeusgen, says the situation in the machine-building sector is “good to very good”.

“But there’s an ambivalence there,” he continues. “Currently things are going well, but there are big political risks around that could have economic consequences.”

If the US-China trade conflict escalates, “it will definitely trigger a slowdown in the global economy,” he says. “And uncertainty always affects the capital goods sector.” Even if the world doesn‘t slide into a trade war, he says HAWE will see revenue growth of just 3-5 per cent this year, compared with 17 per cent in 2018.

Holger Bingmann, head of the BGA, Germany’s trade federation, says: “It’s not that the real economic and industrial indicators are negative — it’s more just a sense of fear and uncertainty. It’s normal for growth rates to slow down. But our members worry we might soon be facing some really serious problems, such as a hard Brexit or an all-out trade war. That’s the reason for the disquiet.”

Britain’s departure from the EU is a particular worry. Researchers from the Leibniz Institute for Economic Research said last week that a no-deal Brexit would threaten more than 100,000 German jobs.

They calculate that 15,000 jobs in the German car industry alone depend on export to the UK.

S

audi Crown Prince Mohammed bin Salman has pledged up to $20bn in investment in Pakistan as he begins a tour of South Asia and China against the backdrop of tensions between Pakistan and India.

Prince Mohammed, who arrived in Pakistan late on Sunday, earmarked an estimated $8bn to a large oil refinery and petrochemical project in Gwadar, south-west Pakistan, and targeted renewable energy and mining as other sectors of

Pakistan-based terror group Jaish-e-Mohammad claimed responsibility for the sophisticated attack. In response, New Delhi has demanded that Islamabad “take immediate and verifiable action against the JEM”, with prime minister Narendra Modi vowing to give a “fitting reply” to those responsible for the carnage.

Mr Khan’s government, working to shore up its depleted foreign exchange reserves — which are estimated to have sunk to just $8bn, enough to last it only two months — and stave off a balance of payments crisis, welcomed the prince

Mohammed bin Salman, centre, was greeted in Pakistan with a lavish red-carpet ceremony © AFP

investment.

The prime minister’s office in Pakistan did not disclose where the rest of the investments would be made, saying only that it would be in the oil refining and petrochemicals, renewable energy and mineral resources sectors.

“We have been a brotherly country, a friendly country to Pakistan. We’ve walked together in tough and good times, and we (will) continue,” said Prince Mohammed at a state dinner hosted by Pakistan prime minister Imran Khan.

Mr Khan who hosted a rare red-carpet reception for the crown prince said: “Saudi Arabia has always been a friend in need, which is why we value it so much.”

The prince’s trip to foster closer ties in Asia, where he is also expected to visit India and China, follows difficulties between Saudi Arabia and the west over the killing of Washington Post columnist Jamal Khashoggi allegedly by Saudi agents.

But the prince’s visit risks being eclipsed by political strife between Pakistan and India after a car bomb killed 44 Indian paramilitary police in Kashmir on Thursday, the deadliest military attack in three decades of separatist unrest in the region.

and his 700-person retinue with a lavish ceremony.

Prince Mohammed also embarked on a public relations initiative, ordering the release of more than two-thirds of the 3,000 Pakistanis being held in Saudi jails.

Observers had voiced concerns that Saudi Arabia’s investment would come with strings attached that could push Pakistan to adopt a more confrontational policy against Iran, the kingdom’s main rival.

However, Islamabad is also close to agreeing an IMF bailout, which would be accompanied by painful structural reforms and demands for a severe cutback in public spending.

Prince Mohammed was originally expected to also visit Indonesia and Malaysia on what would have been a wider Asian tour, but those trips have been postponed, according to officials. Indonesia’s foreign ministry on Sunday released a statement saying the two countries would “continue to communicate for a new schedule”.

The prince had also been expected to meet Taliban negotiators in the Afghanistan peace process but that looked unlikely on Monday after a scheduled meeting between the Afghan Taliban and US officials was called off.

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Understanding the economy of Nigeria’s 36 states

T

he purpose of this series is to present evidence-based picture of Nigeria vis-a-vis the current presentations by politicians and various interest groups which are not backed by facts and figures. Such presumptuous speculations have driven the various national discourses or debates on the future of Nigeria, including such thorny issues as restructuring, whether fiscal, political, geographical or administrative.

Facts are sacred, they say, and as such must be given priority in our search for national viability and survival.

‘Understanding the Economy of Nigeria’s 36 States’ series presents such an objective, dispassionate picture of the state of the economy and so viability and sustainability of the various component parts, sub-nationals or federating units of the country going forward. This series will serve to either buttress or discountenance some of the claims made on both sides of the restructuring argument.

The series, written by Cambridge-trained economist, Dr. Ayo Teriba, looks at each state at a glance in the context of its geopoliti-

cal zone and as it compares to other states. The data present irrefutable facts about each region and its component states and raise the question: are they viable as constituted today and going forward?

Each series examines a state’s realities from the perspectives of economy, resource endowment, state of wellbeing of its populace, and its budget (revenue and expenditure profile).

Today’s edition covers Oyo State in the South-West region and an overview of South South region.

Oyo

• Economy

Oyo State Summary

Oyo’s GSP was 1.5 percent of Nigeria’s GDP in 2017, the 2nd in the SouthWest, 6th in the South, and 15th in the country. Services were 76 percent of GSP, Agriculture was 15 percent and Non-Oil Industry was 9 percent.

in 2017, Oyo State had the 2nd in the South-West, 6th in the South and 15th in Nigeria. 8 million Population of the State is 3.99 percent of national population, 2nd in the South-West and the South, 5th in the country. Oyo State’s Land Area of 26,500/ km2 is 2.9 percent of Nigeria’s land mass, the largest in the South-West and the South, 16th in the country. The State’s Revenue of N76 billion is 2.5 percent of all States’ total revenue, 2nd in the South-West, 6th in the South, and 7th in the country.

• Endowment

Oyo’s Land Area is 2.9 percent of Nigeria’s land mass, the largest in the SouthWest and the South, 16th in the country. While the State has no coastline, it is bordered by the Republic of Benin and bounded by three States; two from its region (Osun and Ogun) and one from the North-Central (Kwara).

• Wellbeing

Oyo’s population is 3.99 percent of national population, 2nd in the SouthWest and the South, 5th in the country. Oyo is the 22nd most dense, 21st most literate, and with the 11th life expectancy in the country, with a Per Capita GSP that is 4th in the South-West, 11th in the South and 23rd in the country.

• Budget

Oyo State retained 2.5 percent of States’ revenue, 7th in the country; expended 2.2 percent of States’ outlays, 19th; incurred a deficit, and held 3.4 percent of total debt, 7th in the country.

1.

Economy

Structure1 Oyo State’s estimated Gross State Product (GSP) was N1.7 trillion or 1.5 percent of Nigeria’s GDP in 2017, 2nd in the South-West, 6th in the South, and 15th in the country. Services was 76 percent, Agriculture,15 percent and Non-Oil Industry, 9 percent.

2.

– N200 billion Agricultural output in Oyo State was 1.07 percent of Nigeria’s Agricultural output, the largest across South-West and the South, 13th in the country.

• N190.5 billion in Crops was 74 percent of the State’s agricultural output.

• N49. Billion in Livestock was 19 percent.

• N10.3 billion in forestry was 4 percent.

• N6.5 billion in Fishing was 3 percent.

– Oyo State’s N160 billion Non-Oil Industrial output was 1.0 percent of Nigeria’s Non-Industrial output, the 3rd in the South-West, 6th in the South and 12th in the country. Manufacturing (mainly Food, Beverage and Tobacco, but also Textile, Apparel and Footwear) was 66 percent of Lagos’s Non-Oil Industry, Construction was 32 percent.

Service output of N1.28 trillion in Oyo State accounted for 2.0 percent of Nigeria’s Service output, 2nd in the South-West, 4th in the South and 6th in the country.

3.

Inter-State Comparisons With a Gross State Product (GSP) of N1.7 trillion or 1.5 percent of Nigeria’s GDP

Endowments

Oyo State was originally created to include present day Osun State in 1976 before they were sub-divided in 1991. It has no coastline but has a border with the Republic of Benin to the West, and shares boundaries with three States, Osun to the East, Kwara to the North, and Ogun to the South.

Oyo State’s land area of 26,500/km2 is 2.9 percent of Nigeria’s land mass, the largest in the South-West and the South, 16th in the country. Major towns and cities in Oyo State are; Oyo, Ogbomoso, Iseyin, Kishi, Okeho, Saki, Eruwa, Iroko, Lanlate, OjoOwode, Sepeteri, Ilora, Awe, Ilero, Igbeti, Igboho, Igbo-Ora, Ibadan, Ido.

Wellbeing

Oyo State’s population of 8.0 million in 2018 is 3.99 percent of national population, 2nd in the South-West and the South, 5th in the country. With a land area of 26,500/ km2, the State has a density of 301 people/km2 compared to the country average of 219 people/km2, the most sparsely populated in the region, 14th in the South and 22nd in the country. Literacy in Oyo State is the least in the South-West, 16th in the South and 21st in the country. Oyo’s life expectancy of 52 years is 5th in the SouthWest, 8th in the South and 11th among the 36 States and the FCT; Female life expec-

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Understanding the economy of Nigeria’s 36 states tancy of 55 years is 2nd in the South-West and the 3rd in the South and the country while Male life expectancy of 52 years is the 3rd in the South-West, the South and the country. Per Capita GSP of N213 thousand in the State is 4th in the South-West, 11th in the South and 23rd in the country.

the country. The spending components in 2017 were: • Recurrent Spending of N59.8 billion was 2.2 percent of the recurrent outlays of all the States and the FCT, 4th in the South-West, 9th in the South and 18th in the country.

• Capital Spending of N20.5 billion was 1.9 percent of States and FCT’s total capital outlays, the 2nd in the South-West, 8th in the South and 15th in the Country.

4.1.2.3 Deficits Oyo State’s overall fiscal deficit of N4.4 billion was the smallest among the four States with deficits in the South-West, 11th among the 12 States that recorded deficits in the South, and 22nd among the 25 States and FCT that had deficits (11 States had surpluses).

4.1.2.4 Debt Oyo State’s total outstanding debts of N157.6 billion was 3.4 percent of the States and FCT’s total debts, 3rd in the South-West, 7th in the South and the country.

• Domestic Debt of N129.2 billion in December 2017 was 3.9 percent of States and FCT’s domestic debts, the 3rd in the South-West, 7th in the South and the country.

• Foreign Debt of N28.4 billion in December 2017 was 2.3 percent of the total foreign debts of the States and FCT, 4th in the South-West, 8th in the South and 11th in the country.

4.1.6 2013-2017 Trends Oyo’s Total Revenue: Total Revenue declined from N86billion in 2013 to N76 billion in 2017. The decline came from gross statutory allocations (GSA). Internally generated revenue and value added tax both grew to offset part of the revenue losses.

4 . Budget

4.1. Fiscal Realities of Oyo State 4.1.1 2018 Aspirations Oyo State’s 2018 budget of N271.6 billion is 2.9 percent of all States’ 2018 budget aspiration, 3rd in the South-West, 8th in the South and among the 36 States and FCT. 4.1.2 2017 Realities Revenue

Total Spending: Total Spending fell slightly from N85.7 billion in 2014 to N80.3 billion in 2017. Recurrent spending was maintained at N60 billion in 2014 and 2017, despite upswing in 2015 and downswing in 2016, while capital spending fell from N25.9 billion in 2014 to N20.5 billion in 2017 to reflect the fall in revenue.

Revenue Use: Except for 2015 when it incurred current deficits and booked about 40 percent of total revenues that year as overall deficits, Oyo tended to keep enough current surpluses to fund the bulk of its capital outlays and minimize recourse to overall deficits.

Financing: • Revenue financing: overall deficits were 9.3 percent of total revenue in 2014, 40.2 percent in 2015 and 5.7 percent in 2017.

• Spending finance: overall deficits as a fraction of total spending was 8.5 percent in 2014, 27.3 in 2015 and 5.4 in 2017.

• Capital budget: overall deficits as a fraction of the capital budget was 28.1 percent in 2014, 148.8 percent in 2015 and 21.6 percent in 2017.

4.1.2.1 Revenue Oyo State’s 2017 actual total revenue of N76 billion was 2.5 percent of all States’ actual total revenue, 2nd in the South-West, 6th in the South and 7th in the country.

The revenue components in 2017 were: • Statutory Allocations of N31.8 billion was 2.17 percent of the total for all States and FCT, the 3rd in the South-West, 9th in the South and 17th in the country.

• Internally Generated Revenue of N21.6 billion was 2.8 percent of total, 2nd in the South-West, 6th in the South and 7th in the country.

• Value Added Tax of N16.2 billion was 3.4 percent of States’ total, 2nd in the SouthWest, 3rd in the South, and 4th in the country.

4.1.2.2 Spending Oyo State’s actual total expenditure of N80.3 billion in 2017 was 2.2 percent of actual total spending by all States, 4th in the South-West, 10th in the South and 19th in

Oyo’s Debt • Domestic debt stock rose more than six-fold from N19.1 billion in 2013 to N129.2 billion in 2017, from 2 percent of revenue in 2013 to 170 percent in 2017.

• Foreign debt stock more than doubled from N12.6 billion in 2013 to N28.5 billion in 2017; from 14.7 percent of revenue in 2013 to 37.5 percent in 2017.

• Total debt stock rose from 36.9 percent of revenue in 2013 to 207.5 percent in 2017.

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understanding the economy of nigeria’s 36 states

South-South Summary • Economy SS’s GRP is 19 percent of Nigeria’s GDP, the 2nd largest economy in Nigeria after South West.

This was made up of 43.9 percent Oil, 41.85 percent Services, 10.75 percent Non-Oil Industry, and 3.5 percent Agriculture. SS contributes 91 percent of Nigeria’s oil sector and 15 percent each of Nigeria’s Services and Industry (excl. oil) sectors. If the various ports of SS could be developed, the region is a potential rival to the SW in Commerce and Industry. Rivers accounts for 49 percent or about one-half of SS’s GRP, Akwa Ibom and Delta account for one-sixth each, Bayelsa accounts for one-tenth, Edo, one-twentieth, and Cross River, one-twenty-fifth.

• Endowments SS’ 9.3 percent land mass is the largest in the South and 4th largest in the country. The coastal SS bordered in the south by Cameroon and the Atlantic Ocean. Except Edo, all SS States have Atlantic coastlines. The region is bounded by seven states: to the north by Anambra, Imo, Abia and Ebonyi, all in the Southeast, to the west by Ondo State in the Southwest, to the northwest

by Kogi State and to the northeast by Benue State, both in the North-Central.

• Wellbeing SS’s 13.9 percent share of Nigeria’s population is the 2nd largest in the south and 3rd in the country. S-S’ density 354 of people per square kilometre makes it the 3rd most densely populated region in both the South and the Country. S-S’ literacy is the highest in the country. The region’s life expectancy of 50 years is the third in the South and in the country: but while Female life expectancy of 52 years is the 3rd in the South and the country, Male life expectancy of 47 years is the 3rd in the South and 5th in the country, with a per Capita GRP that is the 2nd in the country, after South West.

* N2.3 trillion 2017 Non-Oil Industrial output in the region was 15.3 percent of Nigeria’s, 2nd in the South, 3rd in the country.

• 64 percent of the region’s Non-Oil output was contributed by Manufacturing

(mainly Food, Beverage and Tobacco, but also Oil Refining, Cement and Textile,

Apparel and Footwear),

• 25 percent by Construction,

• 10 percent by Utilities, and

• 1 percent by Solid Minerals. * N9.0 trillion Services output in South-South accounted for 14.1 percent of Nigeria’s Service sector, 2nd in Southern Nigeria and 3rd in the country.

Inter-regional Comparisons With a Gross Regional Product (GRP) of N21.6 trillion or 19.0 percent of Nigeria’s GDP in 2017, South-South has the 2nd largest economy in Nigeria, after South West. South-South’s Population of 30 million is 13.9 percent of national population, 2nd in the South and 3rd in the country. Land Area of 84,700/km2 in the region is 9.3 percent of Nigeria’s land mass, largest in the South and 4th in the country. South-South’s total Government Revenue of N854 billion in 2017 was 28.5 percent of total revenue in Nigeria, largest in the country.

• Budget SS retains 28.5 percent of regions’ revenue, largest in the country; Spends 24.6 percent of regions’ outlays; incurs 7.7 percent of regions’ deficits; and holds 24.3 percent of regions debts.

1. Economy Structure South-South’s estimated Gross Regional Product (GRP) was N21.6 trillion or 19.0 percent of Nigeria’s GDP in 2017, South-South has the 2nd largest economy in Nigeria, after South West.

This was made up of 43.9 percent Oil, 41.85 percent Services, 10.75 percent Non-Oil Industry, and 3.5 percent Agriculture.

2. Endowments The coastal South-South Geo-Political Zone is made up of six states, Akwa-Ibom, Bayelsa, Cross-River, Delta, Edo and Rivers. SS is bordered in the south by Cameroon and the Atlantic Ocean. Except Edo, all SS States have Atlantic coastlines. The region is bounded by seven states: to the north by Anambra, Imo, Abia and Ebonyi, all in the Southeast, to the west by Ondo State in the Southwest, to the northwest by Kogi State and to the northeast by Benue State, both in the North-Central.

The 84,700 km2 land area of South-South is 9.3 percent of Nigeria’s Land mass, 4th among the 6 regions in the country, and the largest in the South.

* SS’ N800 billion Agricultural output in was 3.2 percent of Nigeria’s, 2nd in the South and 5th in the country.

• 38 percent of the region’s agricultural output in 2017, N287 billion, was fishery,

• 35 percent, N262.7 billion, was crops,

• 16 percent, N123.5 billion, was forestry, and

• 11 percent, N81.7 billion, was livestock. * South-South’s N9.5 trillion in Oil production in 2017 was 91 percent of Nigeria’s.

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understanding the economy of nigeria’s 36 states 3. Wellbeing

• Internally Generated Revenue of N199.5 billion was 26.1 percent of regions’ total, 2nd in the country, after SW. • Value Added Tax of N69.9 billion was 19.7 percent of regions’ total 3rd in the country, after SW and NW. 4.1.2.2 Spending South-South’s 2017 actual total expenditure of N907.4 billion was 24.6 percent of actual total spending by all regions, largest in the South and in Nigeria. The spending components in 2017 were: • Recurrent Spending of N502 billion was 18.9 percent of regions’ total, 3rd in the country, after SW and NW. • Capital Spending of N405.5 billion in South-South was 39.0 percent of regions’ total; the highest in the country.

4.1.2.3 Deficits S-S’ overall deficits of N53.5 billion was 7.7 of regions’ total, 2nd in the South, 5th in the country.

4.1.2.4 Debt Total outstanding debt of N1.1 trillion was 24.3 percent of country’s total, 2nd in the country, after SW. • Domestic Debt of N930.4 billion was 27.8 percent of regions’ total, the largest in the country.

• Foreign Debt of N190.6 billion was 15.1 percent of regions’ total, 2nd in Nigeria after SW.

4.1.3 2013-2017 Trends South-South’s Revenue: South-South’s Total Revenue declined from N1.29 trillion in 2014 to N854 billion in 2017, with the slump in revenue came from gross statutory allocations (GSA) while internally generated revenue and value added tax proved resilient in the face of global oil price slump and concomitant recession in the national economy.

South-South’s population of 30 million is 13.9 percent of national population, 2nd in the South, and 3rd in the country. S-S’ density 354 of people per square kilometre, compared to the country average of 219 people per square kilometre, makes it the 3rd most densely populated region in both the South and the Country. S-S’ literacy is the highest in the country. The region’s life expectancy of 50 years is the third in the South and in the country: but while Female life expectancy of 52 years is the 3rd in the South and the country, Male life expectancy of 47 years is the 3rd in the South and 5th in the country. S-S’ per Capita GRP of N720 thousand is the 2nd in the country, after South West.

4. Budget

South-South’s Spending: South-South’s Total Spending fell from N1.2 trillion in 2014 to N907 billion in 2017. Recurrent spending fell only slightly by 5 percent from N525 billion in 2014 to N502 billion in 2017, while capital spending fell steeply by 41 percent from N681.5 billion to N405.5 billion in 2017.

South-South’s Revenue Use: South-South had kept more than half of its total revenue in current surplus to fund over 90 percent of its capital outlays in 2014. Current surpluses shrank to a sixth of revenue in 2015 and capital spending shrank to a level that could be funded largely by the current surplus, with a small deficit funding only 25 percent of capital outlays that year. Current surpluses funded only about 40 per cent of capital outlays in 2016, with deficits covering the rest, before current surpluses recovered sufficiently by 2017 to fund nearly 90 percent of the growing capital spending in 2017.

4.1.

Fiscal Realities of South-South 2018 Aspirations 4.1.1 South-South’s N2.9 trillion 2018 budget is 31.7 percent of regions’ spending aspirations, and highest in the country.

South-South’s Financing • Revenue financing: overall deficit as percentage of total revenue was 4 in 2014, 41 in 2016, and 8 in 2017.

• Spending finance: overall deficit as percentage of total spending was 4.6 in 2014, 29 in 2016, and 5.8 in 2017.

• Capital finance: overall deficit as percentage of capital budget was 8.2 in 2014, 58 2016, and 13 in 2017.

South-South’s Debt • Domestic debt stock increased from N590.4 billion in 2013 to N930.3 billion in 2017; rising from 45.8 percent of revenue in 2013 to 108.9 percent in 2017.

• Foreign debt stock rose from N50.2 billion in 2013 to N190.6 billion in 2017; rising from 3.9 percent of revenue in 2013 to 22.3 percent in 2017.

• Total debt stock rose from 49.7 percent of revenue in 2013 to 131.2 percent in 2017.

4.1.12 2017 Realities 4.1.2.1 Revenue South-South’s 2017 actual total revenue of N854 billion was 28.5 percent of actual total revenue in Nigeria and the highest in the country. The revenue components in 2017 were: • Statutory Allocations of N492.2 billion was 33.7 percent of regions’ total, the highest in Nigeria.

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INSIGHT/INNOVATION

The bigger picture of the postponement of Nigeria’s elections

OGHO OKITI

I

start with the statement that changed the trajectory of the 2019 elections.

“Following a careful review of the implementation of its logistics and operational plan and the determination to conduct free, fair and credible elections, the commission came to the conclusion that proceeding with the elections as scheduled is no longer feasible”. With those words, Mahmood Yakubu, the embattled chairman of the Independent National Electoral Commission (INEC) tried to convince a skeptical nation not only that he means well, but also that he can be trusted to deliver a free, fair and credible elections.

With those words also, Nigerians realised nothing has really changed, because by that singular action, it means that Nigeria’s elections have been postponed three consecutive times. In 2011, the elections were postponed after voting had started.

In 2015, the elections, scheduled to

hold on the 14th of February, was shifted by six weeks after the military compelled the agency to postpone the elections on the basis that it could not guarantee the peace of the elections.

As in 2015, the stakes are very high this time. As in 2015, this election is poised to be a close run between the incumbent, this time President Muhammadu Buhari and the People’s Democratic Presidential candidate Atiku Abubakar. As expected, the two parties have criticised the action taken by INEC. For obvious political reasons, especially unlike in 2015 where the government of the day was transparent about influencing the postponement, this government wants to be seen as non-interfering in the activities of the commission. In the context, the condemnation from the ruling party has been very harsh, and sometimes border on comedy, especially that from the party’s spokesman Festus Keyamo.

But like everything in Nigeria, we continue to bring this on ourselves.

Many have argued in the past and I will like to reiterate here that there is nothing independent about INEC. The “independent” in the name is faux pas. An agency cannot be independent if the President appoints the head. The INEC head and its commissioners are all appointees of the President. So, whether true or not, the perception is that the INEC chairman seeks to protect the interest of the person that appointed him. The same applies to the commissioners.

Can we be fair to INEC? PROPHYLAXIS

AYULI JEMIDE

L

ast week I wrote this column where I called out INEC for disenfranchising millions of Nigerians because of its inefficiency in distribution of PVC’s. I still believe that INEC disenfranchised millions of people. I also maintain that INEC not releasing the list of total collected PVC’s in each local government as at the time of postponement and as at the time of writing this piece is not only withholding public information but diluting its transparency as an independent body.That said, INEC has now saddled Nigerians with a postponement of elections by 1 week for ‘’logistic reasons’’.

My first instinct should be to continue my tirade on how inefficient INEC has been. This is reinforced by the facts that INEC has given the impression that its ‘’logistic’’ management was defective, and it was callous in announcing a postponement 6 hours before election was to commence. Despite the justifiable penchant to blame INEC, I think we should stop for a minute to see the other side of the coin. If we take a step back, we would surely see some extenuating circumstances to readily offer in INEC’s defense.

On a general note any discerning Nigerian will agree that the 2019 elec-

tion is very different from any other election held in this country since the advent of INEC. I will point out a few differences that come readily to me.

Firstly in 2019 INEC is expected to manage and supervise elections involving 91 political parties and 73 Presidential candidates. What an astounding number? To put this in context, note that the 2015 elections had 26 political parties and 11 candidates for Presidency. In 2019, the printing of the oversized ballot paper for Presidential elections with 73 parties on the ballot would definitely take longer than usual. Do not forget that INEC is also responsible for hand holding all these 91 political parties through registrations, voter education; supervising their primaries and the outcomes; monitoring campaign funding and more.

Secondly, despite the INEC Chairman’s attempt to thread carefully and to avoid a blame game, it is no secret that the fractious relationship between the Senate and the Presidency delayed INEC’s budget for elections and the budget was passed only on 10th October 2018 – 4 months to the election scheduled for 16th February 2019. Note also that given government bureaucracy INEC’s account would not be credited immediately after the budget has been approved. So we were already cutting it close.

Thirdly, 2019 election has seen reported cases of arson on INEC materials a few days to elections. In Abia, Plateau, Anambra, Akwa Ibom states,PVC’s and/or card readers were set ablaze a few days to elections. Note one incident in Akwa Ibom where buses carrying materials were burnt by ‘’unknown’’ persons a day after postponement was announced. Who sponsored these arsonists? What is

Since Yakubu, a brilliant and impeccable academic, was appointed in 2015, he has presided over inconclusive elections, the shameful double registration of the governor of Kogi State, Yahaya Bello, and the ramshackle elections of Osun and Ekiti states. Whereas there may be no any wrong doing by the INEC chairman in any of these situations, it is also on record that all the situations favoured the President and the ruling All Progressive Congress (APC). So, to be truly independent and save the country all the speculations and perceptions of bias, it has become wise that the President should be stripped of the power to appoint the head of INEC. The law is one of those poor and weak legacies of military rule. A president should not appoint someone that will organise, prepare, and determine the trajectory of elections in which he will be a participant and a player. The same INEC submits its budget and audit of its finances to the President, through the ministry of finance. There can be no independence without independent financing.

For the avoidance of doubt, Nigeria’s democracy, despite its many challenges, is maturing. In the report on the 1999 elections submitted by the Carter Centre and the National Democratic Institute for International Affairs, both in the US, concluded, “the process fell short of its democratic objectives.

Electoral irregularities, including

‘

Note one incident in Akwa Ibom where buses carrying materials were burnt by ‘’unknown’’ persons a day after postponement was announced. Who sponsored these arsonists?

‘

Over INEC, and other national institutions, our successive Presidents see themselves as infallible and consider themselves as those with the best and greatest interest of Nigeria

the intention? Your guess is as good as mine, but the key point we must accept is that these incidences are capable of disrupting INEC’s programme.

Fourthly, with 2019 elections we have seen a scenario where the Nigerian Air force planes carrying certain sensitive materials failed to deliver INEC materials in certain airports in the country. INEC says this was due to bad weather and some pundits say the planes failed to land because of ‘’orders from above’’. Whichever version you believe the point is that the planes did not deliver the materials that INEC required to conduct elections in those states. Whilst we are at it, we all saw on TV that some materials that were locked up in the Central Bank Offices in Edo state were not released for some inextricable reason. There is also much talk on social media about how the Central Bank offices in other locations were closed on that Friday for some inextricable reason which frustrated the delivery or release of INEC materials.

Why? How? Who? I don’t know but the point is that these events, if true, would be enough to frustrate INEC and lead to a postponement.

Fifthly, with 91 political parties conducting primaries and many of them having failed internal democracies, many party primaries ended up in court to determine who the rightful candidates are. This is a major diversion for INEC which had to spade through hundreds of court actions and judgements to decide who the right candidates are. Remember that INEC would delay printing ballot papers in states where the candidates are still embroiled in legal battles until a definitive position is taken. INEC has over 600 cases in court of which majority of them border on candidacy. What a distraction?

fraud and vote rigging, that our observers and others in the field witnessed are cause for serious concern. Especially disconcerting were the inflated voter returns and altered results in many States”. While no one will suggest that things are now perfect, INEC, over the years, has improved on voters registration, provided permanent voters card, and the public is now aware, not only of the numbers of voters, but where those voters are. And in 2015, we recorded an important milestone when we had peaceful transition of power to the opposition.

As I conclude, I will lean also on the summary of the same report when it argued “an election is not by itself sufficient to institutionalise democracy”. The President knows this.

What is important therefore is for us to continue to build systems that endure irrespective of who becomes President. Over INEC, and other national institutions, our successive Presidents see themselves as infallible and consider themselves as those with the best and greatest interest of Nigeria. It is not the case. It is best for today and the future that the President is stripped of all these overbearing powers because the President is also a “participant”.

I thank you.

Dr. Okiti is the president, Time Economics Ltd @ Dr_Okiti 081.7153.0058

Sixthly, and finally the 2019 election is one where the stakes are arguably the highest. The 2019 election dwarfs the 2015 election at the box office for drama and intrigues.There has been no dull moment. In my view the award-winning dramas emanate from Kogi State. First one stars a lady called Hadiza Natasha Akpoti, who is vying for the Senatorial seat for Kogi Central senatorial district as an SDP candidate.

Natasha has raised alarms regarding threats to her life by Kogi State Governor, Yahaya Bello. She recently raised an alarm that her father’s house was burnt, and at some point, she was attacked by political thugs. The second thriller involves Senator Dino Melayeof Kogi State who is always under siege from the police. Under these circumstances we would be living in a fool’s paradise to assume that the INEC Chairman is not being pressured from different quarters to bend the rules. Such pressure has consequences which may include a postponement if INEC thinks a postponement is necessary in the interest of our democracy.

A postponed election is better than a flawed process.

Having said all, we still need to play our part as citizens. I therefore urge all registered voters not to let the imperfections of the system and the postponement frustrate you.We must go out there and make a choice from whatever menu the political parties have set before us. No choice, No voice!

Ayuli Jemide is Founder and Lead Partner of Detail Commercial Solicitors. An entrepreneur, public speaker and writer.

Email: AJ@ayulijemide.org Twitter: @JemideAyuli

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