Businessday 24 may 2018

MTN to price $2bn Ghana IPO next week

Natasha Anjekwu (l), representative of British High Commissioner, makes her congratulatory remarks to Umaru Ibrahim (r), CEO, Nigeria Deposit Insurance Corporation (NDIC), and Aghatise Erediauwa, executive director, operations, NDIC, during the formal presentation of three International Standards Organisation (ISO) Certifications of the British Standards Institution (BSI) to the Corporation.

… Enterprise value to EBITDA priced at 6.8x … Applying same valuation to Nigeria gives $7bn OLALEKAN IPELE, BUNMI BAILEY & MICHEAL ANI

A

frica’s telecommunication giant MTN is said to start selling about a third of its Ghanaian unit worth $754 million repre-

news you can trust I **thursDAY 24 may 2018 I vol. 15, no 61 I N300

Rowdy session as Reps set to revisit controversial election sequence law KEHINDE AKINTOLA, Abuja

T

he leadership of House of Representatives on Wednesday disclosed that the controversial election sequence would soon be reintroduced.

According to Abdulrasak Namdas, chairman, House Committee on Media and Public Affairs, a bill on the re-ordering of election sequence is already in the offing.

The House had penultimate month stepped down the regazetted bill on reordering of election sequence which was rejected by President Muham-

@

senting 35 percent of the $2 billion next week in an initial public offering.

This will be 10 times larger than the West African nations previous biggest-ever share sale, according to a Bloomberg report.

Based on the report, the offer to raise 3.48 billion Ghanaian Cedis of stocks will start May 29th and close at the end of July.

MTN will be offering 4.64 billion shares in the unit at 75 pesewas each, repContinues on page 38

g

Buhari’s claims on economy, past leaders mostly wrong, BusinessDay fact check shows N LOLADE AKINMURELE

igerian President Muhammadu Buhari Tuesday dished out some numbers to buttress how previous administrations, in his words, “lacked

imagination in the management of the economy.”

A fact check on some of the 75-year old Presidents’ assertions showed they were mostly wrong.

First, he claimed that oil prices averaged $100 per barrel between 1999 and 2014, when

in actual fact, Brent crude, the benchmark grade for Nigerian oil, sold for an average of $55.8 per barrel in nominal terms within that period, according to data compiled from the Organisation of Petroleum Exporting Countries (OPEC).

Buhari had said ‘‘I challenge

Continues on page 38

Buhari yet to receive 2018 Appropriation Bill P. 39 – Udoma Coming out Friday

L-R: Giuseppe Surace, COO, Petroleum, Dangote Refinery Project; Aliko Dangote, president, Dangote Group; Vishal Sachdev of the Offshore Infrastructures Limited, and Deepak V. Choudhary, chief general manager, Dangote Oil Refinery Company Limited, after signing of MoU between Offshore Infrastructures Limited and Dangote Oil Refinery in Lagos.

anybody to check from Europe, America and Asia; between 1999-2014, Nigeria was producing 2.1 million barrels of crude oil per day at an average cost of US$100 per barrel and it went up to US$143.”

That puts the President’s claim at nearly double the actual price.

“The President is not a “numbers” person, so let’s not hold that against him,” one financial analyst jokingly said, implying that the 75-year old isn’t famed for his accuracy with numerical data.

“I was working in Canada in 1999 and I remember oil prices fell as low as $10 per barrel,” it would then go on to average about $60 per barrel between 1999 and 2014, the person said.

When adjusted for 2017 inflation, the price for a barrel of Brent averaged $64.7 in the period under review.

Not only was the President off the mark with his oil price figure, he was also some way off with his claim that “When we came in oil was at $37 per barrel.”

Buhari was elected in May 29 2015, on that day a barrel of Brent crude traded for $65.56 according to a historical price Continues on page 4

Stocks rally seen as PFAs comply with multi-fund structure …Asset allocation to equities just 9.25% in March IHEANYI NWACHUKWU s Pension Fund Administrators (PFAs) begin to align their investment portfolio with the Multi-Fund Structure regulation

A

as required by the National Pension Commission (PenCom), it might be another game changer in favour of Nigerian stocks.

PenCom recently released the amended regulation on investment of Pension Fund

Assets for the pension industry and introduced a Multi-Fund Structure, which replaces the “one size fits all” structure that puts all active contributors into one Retirement Savings Account (RSA) Fund without consider-

ation for age or risk profile of such contributors.

The multi-fund structure is a new system of fund management that allows the splitting of the RSA ‘Active’ fund into three different funds; Fund I, Fund II and Fund II. The ‘Retiree’ fund remains and it’s called Fund IV.

Not many active contributors are aware that the multi-fund structure commenced since January 1, 2018. With PFAs now informing their clients about the new regulation, the perceived investor preference for equities amid declining fixed income Continues on page 38

2

BUSINESS DAY

Thursday 24 May 2018

Thursday 24 May 2018

BUSINESS DAY

3

4

BUSINESS DAY

Thursday 24 May 2018

C002D5556

businessday market monitor Commodities

NSE

Brent Oil

Biggest Gainer

$78.87

MRS N31.2

Cocoa

US $2,625.00

Biggest Loser

4.87pc

Everdon Bureau De Change

Bitcoin UACN N14.5

40,150.55

-8.52pc

2,905,366.25

-3.07pc

Powered by

Buy

Sell

$-N 362.00 366.00 £-N 488.00 498.00 €-N 421 .00 431.00

FMDQ Close Foreign Exchange Market

Spot $/N

I&E FX Window 361.42 CBN Official Rate 305.90

3M 0.22 12.77

6M

5 Years

10 Years

20 Years

0.35 12.18

0.00% 13.44%

-0.08% 13.40%

0.04% 13.45%

Relief for banks as Trans Forcados pipeline set to resume production ISAAC ANYAOGU

T

here are indications that the Trans Forcados Pipeline (TFP) will resume production in two weeks according to operators in the oil and gas sector. This will come as a huge relief to banks as many have significant portions of their non-performing loans exposed to the sector.

The 250,000 barrel per day (bpd) capacity Trans Forcados pipeline was shut down on May 7 but operators say it is set to open for business in two weeks.

The pipeline was shut for repairs on after a leak was reported. The leak forced Shell’s Nigerian subsidiary, Shell Petroleum Development Company

of Nigeria Ltd (SPDC), to declare a force majeure on May 17 on exports of Bonny light following a shutdown on the Nembe Creek Trunk Line stream.

Shell confirmed on Wednesday that the force majeure remained in place on shipments of Nigerian Bonny Light crude oil, while exports at the Forcados shipping hub were running as normal, according to a Reuters report.

‘Shell said in an emailed statement that operations at the country’s Forcados oil terminal were running normally, despite a closure last week of the Trans Forcados Pipeline that carries a number of grades to the coast for export.’

‘Exports of Bonny Light are expected to run at around

195,000 barrels per day next month, making it Nigeria’s third largest crude oil stream, behind Forcados and Qua Iboe.’

But in an investment note seen by BuisnessDay on Seplat Petroleum Development Company done by FBNQuest Capital, Seplat is quoted to have indicated that the Trans forcados pipeline will be back on stream in ‘a fortnight.’

“Recently, exports via the TFS have been shut following leakages. Following our conversations with the firm we expect exports via the TFS to resume within a forthnight. We understand that these leakages are due to the age of the TFS rather than by vandalism,” FBNQuest note also stated that ‘the 160,000bpd Amukpe-

fgn bonds

Treasury Bills

1.2bn scf gas targeted as Lagos’ energy sector reform gets underway JOSHUA BASSEY

A

Escravos export route is set to become operational in third quarter 2018. Until then, the TFS will continue to be a major factor in our production outlook, mainly because exports via the Warri Jetty provide only partial and relatively more expensive relief.’

The Trans-Forcados pipeline which transports about 200,000 to 240,000 barrels of crude per day, is the major trunk line in the Forcados Pipeline System.

It is also the second largest network in the Niger Delta after the Bonny Oil Pipeline System.

Some of the companies affected by the shutdown include the Nigerian Petroleum Development Company (NPDC),

daily supply of up to 1.25 billion standard cubic feet (scf) of Natural as well as Liquefied Natural Gas (LPG) is being targeted, as Lagos State is set to commence the implementation of its power/energy sector reform from June.

The reform is guaranteed under the Lagos State Electric Power Reform Law which was passed by the state House of Assembly and assented to by Governor Akinwunmi Ambode on February 8, 2018, through which the government is also discussing a partnership with private sector players to generate 4,000 megawatts of electricity.

Under the reform, the state government plans to open the Lagos gas market to local and in-

Continues on page 38

Continues on page 38

Buhari’s claims on economy, past leaders...

Continued from page 1

compilation on the Financial Times markets portal.

Brent would average $57 that year and it wasn’t until December 2015 that the price slipped to an all-year low of $37.93 per barrel, perhaps this is the period the President was referring to, as a supply glut exacerbated by American shale output and the resumption of Iranian exports, combined with slowing Chinese demand to send prices tumbling.

Buhari is however closer to the actual daily production average with his claim of 2.1 million barrels daily.

Between 1999 and 2014, the average daily production was 2.3 million barrels.

The low point in that period was in 2002, when Africa’s largest oil producer pumped an average of 2.1 million barrels daily. Three years later, in 2005, the country pumped its highest volumes of the period- some 2.6 million barrels daily. However there was a huge slump in production to as low as 700,000 barrels per day at some point at the height of the Niger Delta militancy between 2006 and 2009, before President Umaru Yar’Adua declared an amnesty that helped oil out rebound.

Fast forward to Buhari’s statement that ‘‘I went to the CBN Governor, with my cap in my hand, and asked if we had savings. He told me we had only debts, no savings.”

Firstly, the external reserve is the dollar equivalent of oil revenue that the country earns and has already been disbursed to the government in naira by the central bank, meaning it shouldn’t be considered as the government’s savings, except if adjusted for cash stashed away in the ECA or Federal government savings.

The Excess Crude Account (ECA) is used to save oil revenues above an amount derived from the budgeted benchmark price and

was created in 2004 by then President Olusegun Obasanjo.

There was $2 billion in the account as at May 2015 when Buhari came into power. The savings in the ECA was as high as $20 billion before the Goodluck Jonathan administration.

It is unclear if Federal government savings were factored into the gross $30 billion external reserves with the Central Bank in May 2015.

Regarding debts, according to the Debt Management office (DMO), Nigeria’s debt profile was N12.12 trillion as at June 2015, a month after Buhari assumed office.

The domestic portion amounted to N8.4 trillion, with Federal government bonds accounting for the largest chunk at 63 percent, while the external portion was $10.3 billion, with multilateral loans from the World Bank Group and Africa Development Bank Group dominating the pack at $7.23 billion.

As at December 2017, the domestic debt has nearly doubled to N12.6 trillion, with bonds still accounting for the largest share69.23 percent, while external debt rose 83 percent to $18.9 billion.

It would appear that the debt has all but risen since Buhari rode into power, but then he could point to ailing oil revenues as a reason why his administration racked up record debt to stimulate an economy that choked under the pangs of the oil price and production downturn and slipped into its first recession in 25 years in 2016.

The President’s claim that his administration splurged on capital budgets in 2016 and 2017 is not far from the truth, as far as it is in naira terms but not in dollar terms.

Meanwhile, as President Buhari and former President Olusegun Obasanjo locks horns over who has a better understanding of the economy as well as accusations and counter accusations over expenditures on power projects, former President Obasanjo has dared Buhari to probe him over the projects.

L-R: Akinleye Olagbende, company secretary, Forte Oil plc; Femi Otedola, chairman, and Akin Akinfemiwa, group chief executive officer, during the company’s 39th annual general meeting in Lagos, yesterday.

BusinessDay investigations reveal that Obasanjo has addressed the issues of the power sector and the allegations against him on many occasions and platforms, including in his widely publicised book, My Watch in which he exhaustively stated the facts and reproduced various reports by both the Economic and Financial Crimes Commission (EFCC), which conducted a clinical investigation into the allegations against him, and the Ad-Hoc Committee on the Review of the Recommendations in the Report of the Committee on Power on the Investigation into how the Huge Sums Of Money was Spent on Power Generation, Transmission And Distribution between June 1999 and May 2007 in which the ex-President was largely absolved of blame.

In a statement made available

by Media aide to former President Obasanjo, Kehinde Akinyemi, Obasanjo said President Buhari displayed “ignorance” on the issues around the power projects and referred the President to several reports on the issue.

The statement stated that

“Obasanjo challenges, and in fact encourages, anybody to set up another enquiry if in doubt and unsatisfied with the EFCC report and that of the Hon. Aminu Tambuwalled ad-hoc committee.”

“It has come to the attention of Chief Olusegun Obasanjo that a statement credited to President Muhammadu Buhari, apparently without correct information and based on ignorance, suggested that $16 billion was wasted on power projects by “a former President”.

“We believe that the President was re-echoing the unsubstantiated allegation against Chief Obasanjo by his own predecessor but one.

“While it is doubtful that a President with proper understanding of the issue would utter such, it should be pointed out that records from the National Assembly had exculpated President Obasanjo of any wrong-doing concerning the power sector and has proved the allegations as false.”

He therefore recommends that the President and his co-travellers should read Chapters 41, 42, 43 and

47 of My Watch for Chief Obasanjo’s insights and perspectives on the power sector and indeed what transpired when the allegation of $16 billion on power projects was previously made. If he cannot read the three-volume book.

“He should detail his aides to do so and summarise the chapters in a language that he will easily understand. “ In response to the President’s query on where the power generated is, Obasanjo said “The answer is simple: The power is in the seven National Integrated Power Projects and eighteen gas turbines that Chief Obasanjo’s successor who originally made the allegation of $16 billion did not clear from the ports for over a year and the civil works done on the sites.”

In Obasanjo’s book, he claims to have spent US$3.7 billion on the powerprojectsandnotUS$16billion.

The NIPPs have today received bids in excess of $5 billion in a privatisation process that is currently being stalled by President Muhammadu Buhari.

Thursday 24 May 2018

BUSINESS DAY

5

6 BUSINESS DAY NEWS

C002D5556

Thursday 24 May 2018

Nigeria needs stringent measures to curb excessive borrowing - Social Action ... says most states are insolvent KEHINDE AKINTOLA, Abuja

A

civil society organisation, Social Action, on Wednesday called on National Assembly to put in place stringent measures to curb excessive borrowing by sub-national governments, and expressed grave concern over sustainability of loan facility and burden of unpaid salaries and pensions.

Vivian Bellonwu-Okafor, head, national advocacy, who observed this via a statement titled: ‘State borrowing and the neglected plight of unpaid workers,’ also decried the huge indebtedness to local contractors on jobs and services executed by previous and incumbent governments.

“Recently, the Kogi State government made a public admission and disclosure that it has defaulted in paying its workers’ salaries due to huge loan servicing by the state. The state’s director-general, media and publicity, stated in the report that ‘... the loans were taken by the two previous administrations for projects that did not add value to the state.

“Sometimes, we repay between N400 million and N500 million monthly as loans that add no value to the state. These loans were taken by the last two administrations, and some of them were invested on projects

that were never completed.

“This attempt to justify the failure of the state governments to fulfil its obligation to the workers in the state, although obnoxious and objectionable, however again buttresses the import of unsustainable loans and reckless borrowing by governments, especially at the sub-national levels,” Bellonwu-Okafor said.

Bellonwu-Okafor noted that state-level debts had become a considerable source of worry to well-meaning Nigerians.

“As it is well known today, many States in the country are insolvent and barely surviving on monthly allocations from the Federal Account Allocation Committee (FAAC).

“But even with this system currently in place, many states are still strained to meeting its fundamental obligation including payment of salaries to its workers, even as many more are hugely indebted to local contractors on jobs and services executed, as they are neck-deep in protracted indebtedness over loans procured by both past and incumbent administrations.

“Countless innocent workers are known to have died as a result of the hardship imposed on them by this. Only recently, five college staff died in Abia State over owed salaries. On the heels of this year’s Workers Day, labour unions also

reeled out chilling figures of its members including pensioners that were either owed protracted salaries or have out rightly died as a result of same in states across the Federation.

Worse off are infrastructural conditions including public service delivery in these states.

“Only recently, the Senate rejected a loan request of $350 million by the Kaduna State government, this was rightly so. Kaduna along with Lagos and Edo states rank top three in the highly indebted states of the country, jointly pulling a staggering figure of $1.8 billion in external debt profile alone.

“This is worrisome, for while the process of contracting these loans have been poor and non-transparent, its management have been worse. Administrations simply contrive and obtain huge loans that are neither subjected to any transparent or accountable use, nor oversight checks and at the end of its life tenure, simply pass the buck onto the incoming administration and transfer the burden (of repayment) on the people.

“This is undoubtedly the reason why, of the massive debt profile of governments at both Federal and state levels over the years and decades, little or no significant impact can be traced to them rather while innocent citizens are left with back-breaking debt burden.”

R-L: Akinwunmi Ambode, governor, Lagos State, with Fuhad Ogunsanya, overall best graduating student, faculty of management science, Lagos State University (LASU); George Oguntade, chancellor, LASU, and Olanrewaju Fagboun, vice chancellor, during the 22nd convocation ceremony of LASU at the University Auditorium Complex, Ojo in Lagos, yesterday.

Senate refers screening of CBN nominees to committee OWEDE AGBAJILEKE, Abuja

S

enate has referred the screening of five nonexecutive directors of the Board of Central Bank of Nigeria (CBN) to its Committee on Banking, Insurance and other Financial Institutions.

The nominees are: Ummu Jalingo (North East), Justina Nnabuko (South East), Mike Obadan (South South), Abdu Abubakar (North West) and Adeola Adetunji (South West).

Risk managers commit to safeguard Edo signs anti-human trafficking law, as int’l community pledges support Nigeria’s financial sector HOPE MOSES-ASHIKE & SEYI JOHN SALAU

C

hief risk officers (CROs) under the auspices of Risk Managers Association of Nigeria (RIMAN) have reiterated commitment to safeguard the financial landscape of the country amid cyber attack and other financial venerability exposure faced by corporate organisations in Nigeria.

This position was stated at the CROs timeout and dinner 2018 held in Lagos.

Folakemi Fatogbe, director, risk management, CBN, and chairman, Board of Trustees, RIMAN, in a statement, said nobody was an island on its own and therefore urged the CROs who were key risks managers of their organisations to synergise for greater outcome.

“Risk management is not a popular job. You are akin to John the Baptist; a lone voice crying in the wilderness. You are the conscience of your organisations; so it is very important that you do the right thing and to follow our conscience, be courageous at what you do, and to be competent,” Fatogbe said.

She said as risk managers in the financial sector, the CROs cannot afford to let down their guard at any time no matter the challenge or risk involved, as such would render their organisation venerable to more

financial risks.

Jude Monye, president, RIMAN, in his welcome address, said the association was expanding its frontiers beyond the financial sector to accommodate other key sectors of the economy. “The association is growing bigger, and we are also expanding our scope of activities beyond financials,” he said.

The timeout was put together to help achieve greater synergy among the CROs across sectors. It is to help risks managers relax and network among themselves.

The event accorded the CROs an opportunity to deliberate on key risk factors in the financier sector and ways on expanding Risk Management frontiers in Nigeria.

RIMAN is an industry body of risk professionals with institutional and individual members in the financial and nonfinancial industries in Nigeria, which seek to ensure dynamic approach to risk management across all sectors of Nigeria economy.

RIMAN through its research, advocacy and effective clientele relations deploys proactive approach in identifying risk and proffer adequate response to emerging risk scenarios.

RIMAN engages the financial sector through risk advocacy, capacity development and risk research.

G

overnor of Edo State, Godwin Obaseki, on Wednesday in Abuja, signed the Edo State Trafficking in Persons Prohibition Law 2018 into law.

The ceremony, which held on the sideline of a high profile stakeholders’ event, with the theme “Technical Roundtable on Managing Migration through Development Transformation Programme in Edo State,” had in attendance, ambassador of European Union to Nigeria, Ketil Karlsen, and the chief of mission, International Organisation for Migration, Enira Krdzalic.

Others dignitaries were the ambassador of Denmark to Nigeria, Torben Getterman; representative of the Nigeria Immigration Service; World Bank country director, Rachid Benmessaoud; representatives of The Netherlands and members of the Edo State Executive Council.

According to Obaseki, “The law provides an effective and comprehensive legal and institutional framework for the prohibition, prevention, detection, prosecution and punishment of human trafficking and related offences in Edo State.”

The governor said, “The law will protect victims of human trafficking, promote

and facilitate local, national and international cooperation in the fight against the illicit activity.”

He added that with the law, which also establishes the Edo State Taskforce Against Human Trafficking, the stage was set for an onslaught against perpetrators of human trafficking in the state.

He disclosed that the state has secured the support of the international community in the fight against human trafficking and urged parents, guardians, trade and professional groups, the clergy and other stakeholders to join hands with his administration as the law, which complements existing federal government laws, takes effect.

The Edo State government currently has a robust plan for the rehabilitation of returnees from Libya and elsewhere, most of whom were evacuated by the federal government and the International Organisation for Migration (IOM) and the European Union.

The programme includes a monthly stipend of N20,000 for each returnee, an empowerment package that has a training component, after which they are given starter packs.

Senate president, Bukola Saraki, who presided over the session on Wednesday, mandated the Rafiu Ibrahimled panel to report back in two weeks.

Senate majority leader, Ahmad Lawan, moved the motion for the screening of the nominees. The confirmation of appointment of the nominees, he said, is in accordance with Sections 6(1) (d) and 10(1) and (2) of the CBN Act, 2007.

The motion was seconded

by Senate minority leader,

Goodwill Akpabio.

It would be recalled that in April 2017, Buhari requested the confirmation of the appointment of five non-executive directors of the Board of CBN. The Senate, however, refused to confirm the appointment due to a resolution in 2016, against the then acting President Yemi Osinbajo that the Senate lacked powers to confirm Ibrahim Magu as chairman of Economic and Financial Crimes Commission (EFCC).

760 Delta youths for agric development scheme … as state acquires tractors for mechanised agric MERCY ENOCH, Asaba

A

total of 760 youths in Delta State have been profiled for the Accelerate d Agr icultural Development Scheme (AADS), a special project for the empowerment of youths within the ages of 18 to 35 years in cluster farm not less than 100 hectares.

The project is under the Anchors Borrowers model, a n d t h e ma x i mu m l oa n facility of the programme is N1 billion.

In the scheme, Delta State is participating in tomatoes and fisher y clusters. The 760 youths have been profiled for the tomatoes cluster, which would utilise the Green House Technology. Over 500 youths have also been profiled for the fisheries clusters.

Chikezie Austine, commissioner for agriculture, made the disclosure when he appeared at the ongoing 2018 press inter-ministerial briefing at the Ministry of Information, Asaba.

Austine also disclosed that the state government h a d a p p rov e d t h e p u rchase of 20 new tractors and implements value d

N422,757,600.00.

He said 14 of the tractors would be sold to farmers and farmers’ cooperative societies in the state at 40 percent subsidy with seven years pay back plan.

He explained that the remaining six tractors would be allocated to the tractor hire agency of the Ministry of Agriculture to further boost the agency’s activities.

The gesture is part of efforts of the state to reduce drudgery in agriculture and to encourage mechanised farming in the state, which he said would give rise to commercial farming.

He further disclosed that the state had three functional far m s ettlements namely: Mbiri, Utagba-Uno and Okunigho-Jesse farm settlements.

“They are currently inhabited by 319 selected farmers who are predominantly engaged in tree and a rab l e c ro p p ro d u c t i o n such as oil palm, rubber, cassava, tomatoes, okra and vegetable,” he said.

He noted that the agric m i n i st r y p rov i d e d f a r m inputs for the participants, adding that each participant paid land rent annually to the state government.

Thursday 24 May 2018

C002D5556

Metuh’s fall: Court accuses him of misconduct, to try him in absentia FELIX OMOHOMHION, Abuja

A

Federal High Court, Abuja, Wednesday,accusedtheexspokesman of the People’s Democratic Party (PDP), Olisa Metuh, of deliberately taking a dive on Monday to create confusion in the court.

Justice Okon Abang, in a ruling onwhethertotryMetuhinabsentia, heldthatMetuh’sfallwasstimulated tocauseconfusionduringproceedings, just as the judge ruled that it would continue with the case even without the presence of Metuh in court, saying his actions amounted to misconduct.

Justice Abang said: “When he fell, the people around him, who aided him to the court did not make any attempt to raise him and he was on the floor, groaning and whispering loudly, thereby disturbing the proceedings of the court.

Thisamountstomisconductbythe defendant.”

ThejudgesaidthetrialofMetuh wouldcontinueinhisabsencesince the defendant failed to show any reasonable excuse for his absence.

Recall, Metuh, who is standing trial alongside his company, Destra Investment Limited, on charges bordering on alleged fraudulent receiving the sum of N400 mil-

Zimbabwe becomes AFC’s 19th member state

R

epublic of Zimbabwe has become the 19th member state of the Africa Finance Corporation (AFC, Africa’s leading infrastructure development finance institution.

Referencing infrastructure development as being among the top of his agenda, President Emmerson Mnangagwa said Zimbabwe “open for business.”

As such, AFC has already begun the process of exploring, alongside the Infrastructure Development Bank of Zimbabwe (IDBZ), opportunities for investment. The IDBZ has a national mandate to champion infrastructure development in Zimbabwe in the key sectors of energy, transport, housing, ICT, water and sanitation.

Recently, the bank was designated by Government of Zimbabwe to be the focal and national implementing entity for Green Climate Finance and is currently undergoing accreditation to GCF; a development which makes the IDBZ an ideal partner for the AFC’s entry into the Zimbabwean market.

Zimbabwe’s membership in the AFC will significantly enhance the Bank’s resource mobilisation efforts towards funding the country’s huge infrastructure needs.

Against this background, Zimbabwe’s minister of finance and Economic Development has signed the Instrument of Adherence to the Member of Africa Finance Corporation on May 9, 2018.

In 2018 alone, AFC has already marked some major milestones in the diversification of its membership and shareholding; with the African Reinsurance Corporation and the Republic of Malawi joining the Corporation in February and March, respectively. Zimbabwe’s membership of AFC is a welcome development for both the country and the Corporation.

lion from the office of the National Security Adviser in 2014, missed his steps and collapsed in the court roomashemovedtowardsthedock on Monday.

But, Justice Abang said Metuh did not collapse rather decided to deliberately take a dive on his own afterviolatingalawfuldirectiveofthe courttoremainwherehewasseated besidethedock,wherehehadsatfor aboutfivetimesduringproceedings.

Abang held: “When the 1st defendant ignored the humane directive of the court to seat where he was seated outside the dockand fellonhisown,thecourtroseforfew minutes and after it reconvened, it found out that a medical doctor fromthecourt,Dr.AndoraIkpeazor attended to the 1st defendant and advised that he should be taken to the hospital.”

Justice Abang said the court did not invite the doctor to attend to Metuh and had no right to give any medicalopinionthatMetuhshould be taken to the hospital.

“Adoctorcannotattendtoadefendantduringproceeding,without thepermissionofthecourt.Iagreed with the prosecution counsel, that what is playing out as regard to Metuh’s absence in court without any explanation, amounts to disregardtotheauthorityofthecourtand the judiciary,” Abang said.

No strike in ministry of finance

T

he combined staff union of the Federal Ministry of Finance held its normal general congress on Wednesday, at the ministry’s main auditorium.

Many journalists have called the press unit of the ministry with many spurious allegations against the HMF and the PSF. They said they got their information from ‘reliable’ sources in the staff union that the union was going on strike.

In the light of the above, we want to state as follows: “What took place today (Wednesday, May 23, 2018) in the Ministry was a normal staff congress, where staff gathered to discuss sundry issues, not a riot as alleged by some journalists.

“Many key Directors in the Ministry including Director, Human Resources (DHR) and Director, General Services (DGS), attended the staff congress and clarified issues raised by the staff.

“The staff of the Ministry were not on strike, the gate of the Ministry and offices in the Ministry were not locked as alleged by some of the journalists.

The monthly FAAC Meeting that held today confirms that the Ministry was not shut down.

“The issues raised and discussed in the meeting are regular internal issues of the Ministry and should be allowed to remain that way.

“The congress never accused the HMF and PSF of the issues alleged by the journalists, and journalists are advised to always verify their reports with the right sources before making baseless allegations,” according to a press statement signed by Patricia Deworitshe, from the ministry.

7 NEWS

BUSINESS DAY

Economy, agriculture to benefit from roads infrastructure rehabilitation - Fashola … says work starts on Lagos-Badagry Expressway on budget approval CHUKA UROKO

F

ederal Government’s roads infrastructure rehabilitation train arrived Lagos, Nigeria’s commercial nerve centre, on Monday for the rehabilitation of the Ikorodu-Sagamu Road.

It is expected that the rehabilitation of the roads will open up that part of town and, according to Babatunde Fashola, minister of power, works and housing, agriculture and the economy of Lagos will be major beneficiaries of that singular act of government.

The road is strategic to industrialisation and agricultural development, which government considers growth sectors in its economic diversification drive. The road is also strategic and expected to promote the growth of agricultural activities, boost business for industries in the axis and create employment

opportunities for the locals.

Odogunyan Industrial Estate, the NNPC Mosimi Depot and other firms are some of the beneficiaries of the 30.1-kilometre road project, which links Ikorodu roundabout in Lagos to Sagamu in Ogun State. It will help them to take their products to other parts of the country effortlessly and at reduced cost and shorter travel time.

The minister noted that the project had a national outlook and urged politicians to shun sentiments and focus on the developmental goals when constructing projects, assuring that the Lagos-Ota Road would also be rehabilitated up to Abeokuta while work would continue on Lagos-Ibadan Expressway.

This is a good development for the people and economy of this part of the country, but close watchers of government activities are advising that government should walk their talk and go

beyond politics.

The minister assured that if his ministry got approval in the 2018 budget, they would be able to start work on the last part of the Lagos-Badagry Expressway.

This is another very strategic road in Nigeria.

The road links the country to the country in the West Coast and the expectation is that the completion of that road would boost and promote regional trade in the West African subregion. Besides trade, the trade will help grow the economy of Lagos through commerce and real estate development.

Already, the Agbara-Badagry axis of the state has become a destination for real estate investment firms and individuals many of whom have taken position by acquiring large parcels of land for development. Work and movement to this axis have slowed because of the uncertainty that trails the road reconstruction, which is

taking almost forever to complete by the state government.

He assured further that work would start immediately on Ikorodu-Shagamu Road, but the contractors’ first priority was to stabilise the road before the rains started. He urged residents to be patient and cooperate with the contractors, as the construction was likely to cause them some inconveniences.

Wael Salem, general manager, Arab Contractors Nigeria Limited, also assured they would do their best to make the road motor-able. The community also assured the contractor of their co-operation.

Gbenga Ashafa, Abike DabiriErewa, President Buhari’s senior special assistant on foreign affairs and Diaspora, Jimmy Benson, Federal House of Representatives member, representing Ikorodu Federal Constituency and others, commended the government for the road project.

L-R: Christos Takoulas, METKA sales manager, Off-Grid/Hybrid Solutions; Emmanuel Elegbe, operations manager, West Africa; Dimitrios Triantafyllopoulos, projects director; Anita Otubu, head of special projects, rural electrification agency, and Evangelos Kamaris, business administration and international operations director, at the Nigeria launch of Exeron, the most advanced hybrid off-grid system, in Lagos yesterday.

Women professionals chart development, Anambra to revive over 200 skills upward mobility path for next generation leaders acquisition, entrepreneurial centres KELECHI EWUZIE

A

s part of its collaborative drive to mentor women who desire growth, development and upward mobility in their careers, Lighthouse Network has put together the fifth edition of its personal development conference for career women.

Lighthouse Network is a female social development foundation with a mission to support the personal development of working class women within the ages 19 and above.

Nkiru Olumide-Ojo, cofounder, Lighthouse Network, says this year’s conference with the theme ‘Sprints and Marathons: Building a Sustainable Career’ will have speakers who have a solid track record as professionals and have nurtured and developed talents over the years in their various careers.

According to OlumideOjo, “The idea is to cater for women who are either in the corporate world or who are entrepreneurs or contemplating to set up their personal businesses. The conference has got every base covered with the speakers who would share lifelong secrets to success”.

She says speakers for the conference scheduled to hold on May 26 in Lagos, include Yewande Sadiku, executive secretary, Nigerian Investment Promotion Commission; Muni Shonibare, founder, 10 Furniture; Viola Graham-Douglas, corporate relations director, Guinness Nigeria; Lanre Da Silva, owner, LDA Fashion, among others.

“The speakers have been chosen from C-suites Executives at the peak of their careers in different industries and Women entrepreneurs who have created niches for themselves,” she said.

EMMANUEL NDUKUBA, Awka

A

nambra State is set to revive 200 government and private-owned skills acquisition and entrepreneurial centres across the state.

Bonaventure Enemali, commissioner for youth empowerment and creative economy, made the disclosure during an interactive session with stakeholders in Awka on Wednesday.

Enemali explained that the centres would be made functional with adequate training facilities, qualified facilitators, and sustainable skills and entrepreneurial programmes, saying the interactive session was meant to foster mutual relationship with the organisations.

The commissioner also said underway was ‘Anambra State Network of NGOs (ANSNGO), that would focus on youth and women development, education, health and

community development.

He tasked the NGOs to take responsibility of monitoring and evaluating government projects in the state, especially those within the purview of the Ministry of Youth Empowerment and Creative Economy, like the skill acquisition and entrepreneurial centres.

The guest lecturer who is also the Anambra State coordinator, Network on Water and Sanitation in Nigeria (NEWSAN), Stanley Udedi, insisted that only affective monitoring and evaluation of projects could lead to sustainable impact on social development in the society.

Udedi, a professor of Applied Biochemistry, spoke on the topic ‘Effective Monitoring and Evaluation: A Panacea to sustainable Impact social Development.’

He pointed out that there is no management without monitoring unless one anticipates a monumental waste.

8 BUSINESS DAY NEWS NIPC business matchmaking: Investors urge FG to address concerns of multiple taxation HARRISON EDEH, Abuja

I

nvestors at the ongoing Direct Investors Summit organised by the Nigeria Investment Promotion Commission (NIPC) want the Federal Government to pay more attention to issues bothering on multiple taxation to sustain investments inflow into Nigeria.

Nigeria’s capital importation for the first quarter in 2018, translated to $6.3 billion. The investment inflow in the first quarter of 2018 is more than all of the flows that came into 2016, as industry watchers are already expressing optimism that Nigeria has better years ahead to attract more investments.

At the Business MatchMaking event organised by the NIPC to round off Direct Investor’s Summit in Abuja on Wednesday, some investors who spoke with BusinessDay while praising efforts of the Federal Government in creating enabling business environment, urged the government to address concerns of multiple taxations.

What the NIPC needs to do is to come up with single tax window or incentives for businesses, such that if you are coming to invest in Nigeria you plan your financial standards ahead of them.

“Today, no business can build its tax expenditure into its financial statements because of multiplicity of taxation in Nigeria. We want a single tax system so that investors would not be scared to invest in the country,” Charles Akhigbe, managing director of Ames Pipe Mill and Coating Plant, told BusinessDay at the summit.

“We need to continue doing this kind of summit .It has enabled the NIPC to demonstrate on those investments in match making to create jobs and create new value chains to be encouraged.”

While urging the states to domesticate some of the key efforts of the Federal Government, he said, “States must domesticate all these efforts so that businesses in hiding because of multiple taxation from local government, communities and FIRS come out.”

Speaking further on the investments opening from the Economic Recovery and Growth Plan focused labs, he said,” The ERGP workshop, we actually achieved fourstar status for our three Edo projects, and those projects will be domiciled in Edo State.

They consist of two-truck transit park, one in Benin expressway at Avielle, and the other one at a community called Uteko on the Benin bye Pass.

C002D5556

Thursday 24 May 2018

NNPC, NAOC move to add 500mw Boom for private hospitals as to national power grid JOHESU strike persists HARRISON EDEH, Abuja

I

n a determined effort to ramp up power supply in the country, the Nigerian National Petroleum Corporation (NNPC) and its joint venture partner, Nigeria Agip Oil Company Limited (NAOC), have pledged their commitment to implement the Okpai Phase 2 Project to shore up the current power generation with 500 megawatts.

Group managing director of the NNPC, Maikanti Baru, made the disclosure when he received the new vice chairman/managing director of NAOC, Fiorillo Lorenzo, in his office at the NNPC Towers on Tuesday.

He said the Okpai Phase 2 Project was being fine-tuned to expeditiously bring it on stream, adding that it would increase power generation by between 10 to 12 percent.

“That is additional 500mw of power that is coming in, provided the transmission is up and going, then we should be able to boost the current power supply to the country by another 10 to 12 percent of the current generation,” Baru said.

The GMD informed that the project, when completed,

would impact significantly on economic activities of the country, stressing that once power was available, there would be a lot of improvement in the standard of living of Nigerians.

Earlier, Lorenzo said his company had a long-standing partnership with Nigeria and NNPC. “We want to grow and we want to build and develop new opportunities for the country and support the country in its energy journey. We want to try to change and improve the energy mix of the country and the Okpai Project is a testament of this commitment of our company,” Lorenzo said.

On his part, the outgoing vice chairman of NAOC, Massimo Insulla, said the meeting with the GMD was fruitful with the discussion focusing on the opportunities in the JV and the Production Sharing Contract (PSC) and taking advantage of the oil price condition to bring additional value to the investment in the Nigeria.

“We have been working for 15 years to implement the Okpai Phase 2 Project which is very important to the NNPC/ NAOC JV, and we have been able to find a way to achieve our target with this administration,” Insulla said.

… report 70% spike in revenue ANTHONIA OBOKOH

O

perators of private hospitals in the country have seen a rush in business owing to the persistent industrial action by the Joint Health Sector Unions (JOHESU).

JOHESU has refused to call off the 36-day old strike until the government meets the salary adjustment and harmonisation, which are part of the major demands of the striking health workers.

BusinessDay gathers that this has created a boom for private hospital operators, as patients continue to flock in droves for treatment. Some private hospital operators say that patients are now receiving treatment from their facilities despite the exorbitant cost.

“For the past one month JOHESU has embarked on indefinite strike, we have been very busy. The private facilities see more patients figure coming in everyday because the government hospitals are unstaffed due to the ongoing strike. So, we see more patients coming for consultations on daily basis,” Lanre Yusuf, a doctor in a Lagos-based private hospital, said.

Officials of the accounting department of some private

hospitals contacted confirm that revenue has increased by as much as 70 percent in three hospitals contacted around Lagos, within the last month, and doctors are now seeing twice the number of first time patients.

The ongoing strike has paralysed activities in government hospitals including general hospitals and medical institutions.

Patients who have emergency needs have no recourse than to visit private medical facilities, regardless of the cost.

A pregnant woman who abandoned appointment in the government hospital for a private medical facility told BusinessDay, it was a question of necessity. “I am already due for delivery any moment from now, but the JOHESU strike has changed the story because I was sent back from the general hospital I was using that I cannot be attended to because they are on strike.

“I have pleaded with this private hospital to use the previous medical history of mine, but my pleading fell on deaf ears as they will not take any previous medical history not originating from them. I now have to start the ante natal afresh at this private hospital, so that I can deliver at the hospital, not minding the cost,” she said.

Thursday 24 May 2018

BUSINESS DAY

9

10

BUSINESS DAY

C002D5556

COMMENT

Thursday 24 May 2018

comment is free

Send 800word comments to comment@businessdayonline.com

NBS Q1 2018 GDP Report: The stock market does not lie

UCHE UWALEKE Uche Uwaleke, a Chartered Stockbroker, is a Professor of Finance & Capital Markets and Chair of Banking & Finance department at Nasarawa State University Keffi

A

cross the world, stock markets are generally regarded as sensitive barometers which measure the health of an economy. This view finds support in the performance of the Nigerian stock market which often correlates with the state of the economy. In 2016 for example when the economy was going through a recession, key market indicators remained in the negative territory reflecting the realities of a weak economy. While equities market capitalization lost 6.2 per cent dipping from N9.86 trillion on January 1 2016 to N9.25 trillion on December 30 2016, the Nigerian Stock Exchange All Share Index shed 1,495.7 points over the same period to close year at 26874.62 points from 28370.32 points on Jan 1 2016.

The year 2017 was a spectacular year for the Nigerian economy following a return to a positive growth trajectory and the stock market was a huge beneficiary of this development. The market had an impressive showing in 2017 having closed the year with a return of 42 per cent making it the third best performing stock market globally behind Argentina (77 per cent) and Turkey (48 per cent). Much as domestic investors demonstrated enthusiasm, it was the foreign investors who led

TEMITOPE OSUNRINDE Osunrinde is an avid technology stakeholder and has contributed to the narrative of West Africa’s most prominent broadband infrastructure player. He works in Lagos and can be contacted via temi. osunrinde@gmail.com

Technology companies and the rise of the one-tap economy echnology companies have transformed the world over the last two decades, and for good reason. They have overtaken Oil and Gas and Manufacturing hegemons to become the biggest contributors to the global economy via the largest public companies in the world, with billion-dollar unicorn valuations previously never envisaged. Technology companies have been termed disruptors, and have leveraged increased internet adoption to chart new territories, creating new industries and reinventing older ones. No industry is left untouched, as technology has transformed fields as diverse as shopping, education and even mobile wallets. Its swift, pervasive rise globally has created possibilities hitherto unimagined.

Technological progress means employees can produce more goods and services; inequality is eroded in education with remote learning tools, while new intelligence in personalized healthcare is increas-

T

the charge on the Nigerian bourse.

The introduction of the Investors & Exporters window by the Central Bank of Nigeria in April 2017, on the back of oil price recovery and stronger output, ensured liquidity in the foreign exchange market which buoyed portfolio investments.

The economy appears stronger today than it was in 2017. The rebound in crude oil prices and production volumes has led to unprecedented foreign reserves accretion, shy of USD50 billion.

The recovery in crude oil revenue has also enhanced exchange rate stability and helped moderate inflationary pressure. Agriculture in particular has gained tractionthanks to a number of initiatives put in place by the Central Bank of Nigeria.

In spite of these positive developments in the economy, investors’ moods have swung tremendously this year. With each passing day, stock prices seem to be on a trip of their own, out of sync with improvements in the economy.

Equities prices have largely been on a downward spiral since February 2018 with market breadth in the negative on the average. The re-enactment of the four-week rally witnessed in January which had Year-to-Date return climbing to as high as 16 per cent appear a pipe dream. The NSE stock market report for 18th May 2018 indicates that the All-Share Index and Market Capitalization depreciated by 1.34 per cent to close the week at 40,472.45 and N14.660 trillion respectively with Year-to-Date return dropping to 5.83 per cent while Quarter-to-Date return is in the negative territory at - 2.49 per cent. This bearish run is despite impressive corporate earnings of

So, beyond price correction, the market is simply sending a message: that all is still not well with the economy. The latest GDP report of the National Bureau of Statistics with respect to the first quarter of 2018 buttresses the fact that the stock market does not lie listed companies which some argue were already anticipated and fully priced into the bullish transactions that preceded the results. So, what is the explanation for this seeming disconnect with the fundamentals of the economy?

To make some sense of this sliding stock market performance, data from the Institute of International Finance comes readily handy, According to its recent disclosure, the rise in bond yields in the United States has triggered a downturn in portfolio flows to frontier and emerging markets resulting in circa US$5.6 billion exiting emerging market equities and bond markets in the last two weeks of April alone. This appears corroborated by the latest NSE report on Domestic and Foreign portfolio participation in equity trading for April 2018 which disclosed that ‘’total transactions at the nation’s bourse decreased by 22.11% from N272.48 billion recorded in March 2018 to N212.23 billion in April’’. The report added that ‘’total domestic transactions reduced by 36.05% from N140.27 billion in March to N89.70 billion in April 2018.

Foreign transactions also reduced by 7.32% from N132.21 billion to N122.53 billion within the same period’’. It also noted that ‘’there was a 7.79% decrease in foreign inflows from N69.71 billion in March 2018 to N64.28 billion in April 2018’’.

So, beyond price correction, the market is simply sending a message: that all is still not well with the economy. The latest GDP report of the National Bureau of Statistics with respect to the first quarter of 2018 buttresses the fact that the stock market does not lie. According to the report, published on Monday May 21, ‘’Nigeria’s Gross Domestic Product grew by 1.95% (year-on-year) in real terms in the first quarter of 2018.

Compared to the preceding quarter, there was a decline of -0.16% points from 2.11%. Quarter on quarter, real GDP growth was -13.40%’’. The report further states that ‘’the non-oil sector grew by a mere 0.76% in real terms during the reference quarter, 0.70% point lower than the fourth quarter of 2017. Also in real terms, the Non-Oil sector contributed 90.39% to the nation’s GDP, lower than 91.47% recorded in the first quarter of 2017 and 92.65% recorded in the fourth quarter of 2017’’.

Little wonder, Fitch in its recently released Sovereign Rating report on Nigeria maintained its Long-Term Foreign Currency Issuer Default Rating at B+ which implies that although financial commitments are currently being met, the capacity for continued payment is vulnerable to deterioration in the business and economic environment. As noted by the Rating agency, ‘’non-oil revenue remains weak, despite the economic recovery. The government’s attempts at fiscal consolidation have been hampered by low levels of tax coverage and compliance, rigidities in Nigeria’s budgeting framework,

and consistent delays in approving budgets’’. This sort of commentary does not encourage investment decision.

It is equally pertinent to note that even though elections are still some months away, the increasing tempo of political activities and the potential to aggravate the current security challenges is scaring away foreign investors. Therefore, to a certain extent, the bear market in recent times has also to do with sentiments soured by political uncertainty. As the market awaits the listing of MTN Nigeria to provide the much-desired trigger, all eyes are on the government to address the challenges in the fiscal space chief of which are high rate of unemployment and insecurity. The passage of the budget is one thing; its execution is a different kettle of fish. The market understands that which explains in part why it seemed not bothered by the news of the budget passage as the NSEASI dropped by 0.83 percent on Wednesday May 16, the very day the National Assembly passed the 2018 appropriation bill. Also, it goes without saying that the security threat posed by rampaging Herdsmen in many parts of the country remains a red flag for investors. Therefore addressing this challenge alongside the faithful implementation of the slew of initiatives contained in the 2018 budget will engender “suitable market conditions” for borrowers and investors alike. With respect to the performance of the stock market in the first quarter of this year, the takeaway from the NBS Q1 2018 GDP report is that the market is a true reflection of the economy. Indeed, the stock market does not lie.

Send reactions to: comment@businessdayonline.com

Unilag as a missing piece in Nigeria’s tech ecosystem ing efficiency and enabling health practitioners’ make better decisions.

And technology pervasion has led to what has been called the one-tap economy, where you are only one touch away from booking a flight, making payments, stocking up on groceries, hiring staff, buying food or even getting someone to sleep with. The rise of these on-demand companies offers a paradigm shift from stability to flexibility and herald a digital-only world.

Enabling support systems Technology companies are the biggest players in recreating this new world and their entrepreneurial founders are revered as the crazy ones, the misfits who deliberately challenge the status quo for greater good. Quite a lot is said about these founders, their backgrounds and the challenges they battled in building long-term focused and sustainable companies. But little focus is paid to the enabling entrepreneurial ecosystems around them; informal in the case of parents, families and friends that helped them articulate their ideas or lent a helping hand or in most cases, a purse to entrepreneurs, and formal, when they are supported in slightly more structured start-up ecosystems. The availability of these support ecosystems have contributed to the ability of these companies to scale.

A historical analysis of successful entrepreneurial ecosystems has identified several features that help foster entrepreneurship, technological innovation and resilience.

While each ecosystem is unique, the entrepreneurship ecosystem generally consists of six factors: a conducive culture, enabling policies and leadership, availability of appropriate finance, quality human capital, venture-friendly markets for products, and a range of institutional and infrastructural supports. For the interwoven ecosystem encompassing Silicon Valley and Stanford University, its top factors are its risk-taking culture, student body of Stanford, the culture of giving back, abundant capital, collaboration with industry, and government support. Silicon Cape, South Africa’s most vibrant entrepreneurial ecosystems credits its talent/ industry, government, community, access to funding, university research, broadband infrastructure.

This approach has also been adopted by other entrepreneurial ecosystem programmes including the Regional Entrepreneurship Acceleration Program by the Massachusetts Institute of Technology (MIT) which lists government, risk capital, academia, entrepreneurs and the industry.

An argument for inclusive innovation with Academia as core For a somewhat successful ecosystem, short-terministic partners must in-

clude risk capitalists (VCs and investors), the entrepreneurs themselves, a handshake with the industry and to an extent, government. But for long game innovations, the role of the academia (alternatively, Universities) cannot be overemphasized.

As a rule, Universities are built to serve a mission greater than any individual or short-term gain. Their stock-in-trade is the sheer adventure of ideas. What makes universities uniquely essential, to the innovation ecosystem are the things that make them different from businesses and governments. Universities are built for collaboration, for learning and discovery, and for unlocking the imagination. Responding to billionaire libertarian Peter Thiel and his beef against Universities, a science journalist, Tom Clynes, wrote in the New York Times “We don’t have enough of the desperately needed inventions — nuclear fusion energy or cancer cures — that emerge when credentialed scientists tinker away for years on expensive machines that have nothing to do with Snapchat. Of course, this sort of tinkering most often happens in…academic institutions.”

Universities are powerful incubators for startups and technology transfer. When encouraged, their spillovers are what makes its way into innovation ecosystems. Deliberate academic participation provides us the opportunity to practice “inclusive

innovation” in our technology innovation thus enhancing democratic outcomes. By this, we go beyond the narrow definition of a technology start-up and use innovation for the public good, opened up to address the broader range of issues we face as a society such as poverty, relevant education and inequality.

Universities in technology ecosystems: a case study of Silicon Valley and Stanford University Foremost entrepreneurial tech ecosystem, Silicon Valley has benefited immensely from the pivotal role Stanford University has played in building its tech industry. As the world’s eyes fixate on the booming tech scene in Silicon Valley, Stanford’s affiliation shines brightly in the periphery. Stanford shares a relationship with Silicon Valley unlike any other university on the planet, chartering a self-perpetuating cycle of innovation. But what’s at the root of this interdependency, and how did Stanford University, overcome its status as a second-rate Engineering school to become the world’s top 3 choice, outpacing some of the biggest Ivy League universities?

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

Send reactions to: comment@businessdayonline.com

Thursday 24 May 2018

C002D5556

COMMENT Conversation beyond Optics

ADE ADEFEKO Adefeko is Vice President Corporate and Government Relations, Olam Nigeria

L

ast week, the public and private sector dialogued frankly, at the Nigeria Economic Recovery and Growth Plan Consultative forum in Abuja. The event, which was opened by the Acting President, Yemi Osinbajo, demonstrated the commitment the government attaches to our economic recovery and growth. Dialogue and consultation with captains of industry who are thedrivers and the engine room of the economy was on the front burner and rightly so.

The preliminary document (plan) was presented by the Ministry of Budget and Planning ably led by Senator Udoma Udo Udoma.

After the session, they took into account critical inputs from the organized private sector and after

BUSINESS DAY

11

comment is free

Send 800word comments to comment@businessdayonline.com

Nigeria’s economy: Public and private sector convergence of ideas fine-tuning, the Growth Plan is expected to be launched by President Muhammudu Buhari later this month.

According to the policy document and from which I copiously take excerpts, there are three strategic objectives which seek to; restore growth, invest in our people and most importantly build a competitive economy.These strategic objectives are further supported by enablers that work towards; improving governance, security and a delivery plan hinged on Financing and Implementation.

At the dialogue session the following key strategic issues were highlighted; restoring economic growth issues by improving Monetary and financial stability (which brings one to concerns of exchange rate predictability),fiscal stability with respect to tariffs and levies, Economic diversification focusing on Agriculture,manufacturing, solid minerals and services.

Investing in people by harping on health, education and social inclusion through;job creation, public works and social safety net schemes.Institute a proper Governance structure that will deal with corruption, security, public service delivery by the bureaucrats and coordination by the states; those I often call the “Subnationals”.

Lastly and probably most importantly is the delivery aspect

…the private sector’s major prayer was to be in charge of the delivery of the goals as they felt that previous governments had never shown sincerity of purpose particularly in implementation and as such cannot be saddled with that onerous responsibility which takes into account prioritization, target setting, implementation, planning, accountability, monitoring and communication. Currently, all these are issues we have been grappling with particularly in the last three decades.

Prior to taking part in the forum, I happened on a report prepared by the renowned PricewaterhouseCoopers which had predicted that by the year 2030, (ten years after this plan is supposed to have run its course) Nigeria will be the 21st most powerful economy. This prediction is based on global gross domestic product by purchasing power parity (PPP). PPP is used by macroeconomists to determine the economic productivity and standards of living among countries across a time frame

and some of these components are expected to help achieve that feat.

The question on most minds is “haven’t we heard this before”, with Vision 2010, Vision 2020 et al.

One is therefore worried that with these projections on the horizon how well prepared are we and what do we intend to do differently to signpost this impending growth trajectory.

Well, what seems different according to the crafters of the plan and to which I agree is that there would be more focused implementation based on strong political determination and will, better process management systems with the introduction of an effective delivery unit that will be complemented by a strong monitoring and evaluation mechanism. And in addition,the fact that the document derives a lot of inputs from plans that hitherto existed is a positive and big bonus.

The three key levers enunciated in the document and echoed repeatedly by the organized private sector present are the right tools, delivery plan capability and of course the right mindset.

The right tools paraphrasing the document require a detailed implementation plan encompassing key activities, timelines, and responsibilities and costing as well as a clear and succinct dashboard to track progress. What doesn’t get measured, we are told,

does not get done.

The right delivery capability will see a delivery unit focused on high priority initiatives with adequate monitoring and evaluation mechanisms to track impact across the chain. A clarion call for the private sector to lead this was championed by all and sundry at the parley.

Finally the right mindset brings to relief an execution driven mindset and a focus on transparency and communication which helps to uphold accountability and credibility often lacking in previous plans.

In all of this the private sector’s major prayer was to be in charge of the delivery of the goals as they felt that previous governments had never shown sincerity of purpose particularly in implementation and as such cannot be saddled with that onerous responsibility..

While we await the launch of the plan, the consultation and collaboration that is evident between the public and private sector puts paid to the notion that economic policies and programmes do not get the nod of the organized private sector. This inclusion and buy- in with regards to policy formulation, helps with alignment; and that is critical to economic development.

Send reactions to: comment@businessdayonline.com

Tackling poor communication skills in Nigeria

LUCILLE OSSAI Lucille Ossai is a communications trainer and the founder/editor of the award-winning Lagos-based Rethinking Business Communications Blog

A

s Nigerians, we are not in denial about many truths - endemic corruption in the public sector, epileptic power supply, and chronic youth unemployment. Yet, we are oblivious of our inability to communicate effectively. This fact is evident not only in the ridiculous speeches given by some of our leaders, but also in the error-ridden content often printed by our newspapers or visible in other media.

The reality we thus face is this: Nigerians suffer from a crisis of poor communication skills.

Specifically, we struggle with two of the three types of communication: the oral and the written. Nonetheless, we could become communicators who are more competent in our fields if we acknowledge the problems below and strive for change.

Problem #1: Much a-speak about nothing Nigerians love to talk.

We love to hear the sounds of our own voices, so we waffle on.

We rarely get to the point on time.

We also use big, redundant words and phrases to impress. Let us also

not forget the Nigerian way of reeling off titles as our identities when introduced in public: ‘Barrister A B’, ‘Engineer C D’, or ‘Architect X Y’.

In the business setting, we love to use jargon and other examples of business-speak such as ‘leverage’, ‘paradigm shift’ and ‘striking while the iron is hot ‘. While some might protest that we are no worse off than professionals in other countries, we should cease to make excuses for our faux pas. The fact that other people are doing so should not make us complacent.

Solution: First, we should realise that we tend to sprout lengthy, often meaningless utterances in public. A more effective method to gain support and influence people is to prioritise the three beacons of effective communication—simplicity, brevity, and clarity—beginning with the way we speak.

Next, we should learn the rudiments of public speaking. We could take some courses, and go online to watch some TED talks to study others who have perfected the art.

Let us also observe the styles of charismatic figures whose eloquent speeches and masterful deliveries on radio, television, and in professional settings inspire us.

To speak convincingly in public, we should learn how to use presence, pitch, tone and pauses to create an impact and connect with our audiences.

Finally, we must practise consistently, in season and out of season.

By striving to master public speaking, we would become relevant in our businesses, in our careers and

in public.

Problem #2: Weak, inept writing It is everywhere.

We break so many grammatical rules that often, entire sentences do not make sense. There is also a predisposition to ‘nigerianise’ the English language. Moreover, because only a few of us took refresher courses in grammar after secondary school, the wrong terms, over time, became widespread.

Cases in point: 1) What is good for the goose is good for the gander. (Nigerian English).

What is sauce for the goose is sauce for the gander. (Standard idiom).

2) “You’re not going to work today?”

“Yes”/ “Yes I’m not going”. (Nigerian English).

“No”/ “No I’m not going”. (Standard English).

3) “Please borrow me some money”.

(Nigerian English).

“Please lend me some money”.

(Standard English).

Other problems in writing: 1) Excessive capitalisation.

This is the single most prevalent grammatical error in Nigeria today.

We see it in emails and newspapers; in contracts and formal documents; in content online; and on television.

It is really a scourge.

Some examples of unnecessary capitalisation are underlined below: Over 90 per cent of the nation’s foreign exchange is derived from the Oil & Gas sector.

Our company, ABCD Limited, is into Trading, Manufacturing, Bank-

ing.

We are Resellers of imported merchandise.

2) Erroneous subject-verb agreement.

3) Wrong word choice when choosing synonyms (words having similar meanings e.g. big/colossal, laughable/absurd).

4) Pervasive confusion with homonyms (words sounding the same but having different meanings e.g. son/sun, lunch/launch).

5) Widespread misuse of punctuation marks, with the comma (,), colon (:), semi-colon (;) and the apostrophe (‘) being the most abused.

Regrettably, the root of our weak writing is twofold: A) Poor reading culture We simply stopped reading good materials: well-written books by respected authors, plays, short stories, articles, etc. after school. Instead, we have developed an unhealthy penchant for poorly written content that is rife on social media.

Let us return to great content, beginning with the classics, such as Jane Austen’s Pride and Prejudice; Charles Dickens’ A Tale of Two Cities; Chinua Achebe’s renowned Things Fall Apart; or any of the numerous plays, poems and novels penned by the first African Nobel laureate in literature, Wole Soyinka.

We need to read to feed our brains, to expand our vocabulary and to sharpen our writing.

B) Laziness/unwillingness to brush up on grammar and to practise writing

Realistically, we would not remember all the grammatical rules we memorised in secondary school.

Furthermore, language evolves over time and as professionals, we must keep abreast of the changes.

However, we have become unwilling to do the work. Yet, it is only by consistent practice that we steadily improve. It is that simple.

Solution We need to register for refresher lessons in English grammar. That notwithstanding, we should sign up for business writing training sessions and use the practical suggestions given to improve our writing abilities.

Let us also develop a daily habit of reading good content to increase our knowledge of the English language.

Above all, we must write at every opportunity we get.

Even though a crisis of poor communication skills exists in this country, if we become open to change and are willing to do the work, we would reverse the trend.

The good news is that Nigeria is blessed with significant intellectual capital, and the steely resolve of its citizens. These are the reasons we excel in various fields abroad.

We therefore owe it to ourselves to become the best versions we can be. Let us thus not tarry any longer. * This article has been adapted from a blog post originally published on the Rethinking Business Communications Blog.

Send reactions to: comment@businessdayonline.com

12

BUSINESS DAY

C002D5556

Editorial PUBLISHER/CEO

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

Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu HEAD, HUMAN RESOURCES Adeola Obisesan

EDITORIAL ADVISORY BOARD

Thursday 24 May 2018

Revised CAMA: A fillip for an enabling business environment

T

he Senate on May 15 passed the reviewed Companies and Allied Matters Act, commonly known as CAMA. It is the first time in 28 years that the law on company registration and code of governance has received legislative attention.

Commendably, the Legislature has rolled out the drums to celebrate the legislation.

Kudos.

The shared joy at the Senate passage of the Bill should mean natural concurrence by the House of Representatives and assent to the Bill by the President. A business-like approach to the process of getting this Bill past the goal posts into becoming the law of the federation is the right approach. It ties in with the prevailing mood of the nation and expectations.

Senate President Olusola Saraki crowed at the passage of the bill. “This is a pro-business law. This bill that we have just passed will show the audacity that we have to move Nigerian businesses into a new era of success and development”, Saraki stated. The Senate and its leader noted that the new bill would help to make the business environment of Nigeria as competitive as the best around the world.

The Senate further stated, “It will allow business owners to now register their businesses in a faster and more efficient way, using technology;

removes all the unnecessary regulatory provisions, such as the requirement for ‘annual general meetings’ and ‘company secretaries. It reduces the minimum share capital for all companies and start-ups in Nigeria, which will encourage more investments and create new jobs.”

CAMA, as proposed by the Senate, provides some exciting developments. The existing law had roots in the Companies Law of 1948 of England, modified for Nigeria. Fundamental changes include the fact of allowing one person to incorporate a company as against two or more in the old law, thus allowing the opportunity to operate as a separate legal entity without the risk of loss of personal assets.

It has reduced the minimum share capital to encourage more investments, and also removed the requirement for statutory declaration of compliance.

The new CAMA, the Senate says, removes needless burdens on small companies who are no longer required to engage a Company Secretary or hold Annual General Meetings, most of which in the past was just a mimicry of the practice by big corporates. Significantly, the new CAMA creates a new class of corporate entity, the Limited Liability Partnership. It should encourage collaborations in structured formats. There is also greater flexibility for management of corporate debt and insolvency. Finally, the new CAMA modernises the process

of incorporation by encouraging and validating e-registration that enables entrepreneurs to register a company from any location.

The new law makes the Company Secretary optional rather than mandatory for private companies as was the case with the existing law, Section 293(1) of the Companies and Allied Matters Act Chapter C20 LFN 2004 (“CAMA”). The Senate seemed to have taken the side of those who argue that the role of Company Secretary is not directly concerned with company management but is merely administrative and therefore needless for small firms. Moreover, the qualifications for a Company Secretary for private companies was nebulous in the old law. So, too, was the qualification for directors: the old CAMA did not spell out requirements for directors but went a distance in stating what disqualifies persons from being directors.

What happens to the many entities, encompassing lawyers, company secretaries and accountants, that earned their living from offering company registration services? Does the new CAMA eliminate their services? What are the implications of this paradigm shift for all stakeholders?

We commend the Senate on the passage of this vital bill. It has fulfilled a crucial part of its remit in checking and updating legislation concerning various areas of national life. Enabling business legislation is critical for driving local and foreign invest-

ments as well as channelling the energies and funds of citizens into productive ventures. It incorporates recommendations by various bodies such as the Nigerian Bar Association in areas such as financial assistance by a company to its shareholders.

What stakeholder suggestions did it include and which did it leave out? Other stakeholders should join the House of Representatives to take a close look at the Bill and ensure it reflects necessary amendments, given the long time it takes to effect changes.

The next steps are equally necessary. The House of Representatives should act on the Bill as well and quickly, too, bringing forth its version and ensuring speedy resolution of any differences. Presidential assent should equally happen fast.

Implementation would require well thought out plans.

The Corporate Affairs Commission may require re-jigging and empowerment to bring the provisions of the new CAMA into effect expeditiously. Then there would be a need for internal and external stakeholder enlightenment campaigns on understanding the new CAMA. Every aspect of the new rules and their implications would need expatiation and adumbration.

We welcome the new CAMA for its promise of serving as one more fillip towards a positive and enabling environment for business and corporate governance in Nigeria.

Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Albert Alos Funke Osibodu Afolabi Oladele Dayo Lawuyi Vincent Maduka Maneesh Garg Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Sim Shagaya Mezuo Nwuneli Emeka Emuwa Charles Anudu Tunji Adegbesan Eyo Ekpo

ENQUIRIES NEWS ROOM 08022238495 08034009034 Lagos 08033160837 Abuja

}

ADVERTISING 01-2799110 08116759801 08082496194 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 www.businessdayonline.com The Brook, 6 Point Road, GRA, Apapa, Lagos, Nigeria.

01-2799100 LEGAL ADVISERS The Law Union

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

OUR CORE VALUES

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

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

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

Thursday 24 May 2018

BUSINESS

COMPANIES & MARKETS

DAY

13

‘Acquisitions are not necessarily the only strategy to grow businesses’

Pg. 14

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

Consolidated Hallmark Insurance PAT up 108%, pays dividend Modestus Anaesoronye

C

onsolidated Hallmark Insurance (CHI) Plc, the group, during the financial year ended December 31, 2017 recorded a 74 percent increase in Profit Before Tax (PBT) of N641.05 million as against N368.13 million in 2016, while Profit After Tax (PAT) rose by 108 percent from N194.99 million in 2016 to N406.21 in the review year.

From the profitability, the shareholders got a dividend of 140 million, translating to 2kobo per share.

Obinna Ekezie, chairman of the Company who disclosed these at its 23rd Annual General Meeting held in Lagos said “in keeping our promise of ensuring better returns , our company was able to grow its bottom line.

Ekezie, said the company

believes that shareholders deserve all the reward they can get through regular dividend payments and more for their continued faith and firm belief in the company, stating that the company will continue to live up this expectation as it has always done severally in the past.

A further look at the result also show that investment income grew from N472.3 million in 2016 to N796.5 million in 2017, while the total assets of the company also rose significantly from N7.44 billion in 2016 to N9.49 billion in the

review year.

“We are optimistic that on the successful completion of the final phase of our capital raise, full deployment of funds realised and the eventual emergence of our company as one of the top players in the financial service sector will benefit its esteemed shareholders in the long run.”

In keeping to its commitment to payment of claims, Consolidated Hallmark during the review year incurred claims expense of N3.354 billion, a 93 percent increase from N1.73

billion in 2016.

In the period under review, gross written premium was N5.66 billion as against N5.82 billion in 2016, showing a 3 percent marginal drop, while the net premium earned was N3.68 billion, up 5 percent in the review year.

Eddie Efekoha, managing director/CEO, Consolidated Hallmark Insurance Plc said the company performance in the year under review is a show of tenacity. “Business retention was good, giving us room to focus on our new business

initiatives.”

Efekoha said “while our revenue diversification plans are still at its preliminary stages, we are recording good progress in deepening our footprint s in the retail market segments which we believe holds significant untapped potential for revenue growth.”

He stated that the Company’s capacity to underwrite large and more technical transactions have also continued to improve, evidenced in the growth of reserves from insurance contracts liabilities, from N2.41 billion in 2016 to N3.53 billion in 2017.

Looking into the future Efekoha said “In 2018, we shall continue the implementation of our corporate strategic plan which will enable us to reposition ourselves as leaders in the insurance industry.

Emphasis shall also be placed on stringent cost monitoring measures to improve our ef-

ficiency levels.”

“We shall invest in new product development to adequately exploit the opportunities in the retail market segment. We are at advanced stages in the setting up of a microinsurance subsidiary called CHI Microinsurance Ltd to cater to the retail Life insurance markets. This we believe will improve our margins in the near future.”

“We shall also be strengthening the newly established health maintenance subsidiary, Hallmark HMO which is also at the verge of being licensed by the regulator, the National Health Insurance Scheme (NHIS), to deliver exceptional services that cater to the healthcare needs of our existing and potential clients. These and many more organic corporate actions are being taken to drive profitable medium-term growth despite uncertain market conditions.”

14

BUSINESS DAY

C002D5556

Thursday 24 May 2018

COMPANIES & MARKETS

‘Acquisitions are not necessarily the only strategy to grow businesses’ KAYODE AKINKUGBE is the Managing Director/Chief Executive, FBNQuest Merchant Bank. In this interview with Frank Uzuegbunam, he talks about the positive result of the Bank for the 2017 financial year, major achievements of the bank and projections for the next financial year amongst others. Excerpts: The bank recorded a 25.7 percent increase in PBT in 2017. Given the economic challenges in the country at the time, how was the bank able to achieve this? e are all familiar with the challenges the economy faced. Given the diversified nature of our business, some divisions were more impacted than others. The corporate banking and fixed income trading businesses in particular were all able to capitalize on the opportunities that emerged. One important thing to note is that having a sufficiently flexible balance sheet will enable you capitalize on the situations that present themselves, even in a very difficult environment. With that sort of foundation, we were able to grow revenues and PBT between 2016 and 2017.

In 2016, we had a 9-month contribution from our investment banking business while in 2017, we had a full year. In addition, the acquisition of our Asset Management and Securities businesses, were immediately financially accretive even after just 5 months.

This enabled us ultimately grow Group PBT. What was also very rewarding was that by the acquisition of these businesses, we further diversified our revenue base and I would say, enhanced the quality of income. This is because when you have more income from an Asset Management business, it is more stable annuity income than the slightly higher-risk investment banking income.

So ultimately, we have been quite pleased with these acquisitions.

You talked about acquisitions, are you referring to the acquisition of FBNQuest Asset Management and FBNQuest Securities?

Yes. FBNQuest Asset Management and FBNQuest Securities became subsidiaries of FBNQuest Merchant Bank in October, 2017.

What does the acquisition of these two entities mean to the bank?

Primarily it was done to

W

broaden our product platforms across board. Our aspiration is to become the preferred investment bank and asset manager in Nigeria offering the full spectrum of merchant banking and asset management services.

We have already built the investment banking arm of the business. The acquisition of FBNQuest Asset Management in particular has enhanced the quality of our revenue and broadened the product base, like I mentioned earlier, while the Securities business has also broadened our product offering to include equity brokerage services for our various clients. It is just another step in fulfilling the ultimate vision, and we believe both businesses are pivotal to the achievement of this vision.

Are you looking to acquire more entities in the near future?

We remain open to consider new opportunities to grow our business and enhance shareholder value.

This is something we may consider, but we are also mindful that acquisitions can be challenging. It is not necessarily the only strategy to grow a business.

How does the 2017 yearend result, position FBNQuest Merchant Bank in the investment banking sector?

We already have a strong position, and the 2017 numbers further confirms it. We are and continue to remain a leading Investment Banking franchise and money manager. This is underscored by both our financial performance, as well as independent recognition from global and local professional institutions, over the past 5 months, we have received seven awards which are in recognition of the impact and size of transactions delivered by our Investment Banking business.

The benefit of having a business that offers a broad range of services to clients is that regardless of challenges, certain businesses will perform well even in difficult times. This entrenches our position quite frankly, and gives us another sort of wind to grow, leverage and

Kayode Akinkugbe

ultimately build a bigger business. The Asset Management business for example is very exciting and aligns entirely with our proposition to not only help people grow their businesses, but as they acquire wealth, we can help them find solutions to preserve that wealth.

Looking at the positive results in 2017, what will be your projection for the next fiscal year?

Well we have a stronger macro-economic backdrop, but we also have elections which create some uncertainty. Our expectation, however, is to continue to grow whilst being mindful of the risks.

You mentioned broadening your portfolio. What

We are unique because we have a culture that is reflective of our heritage and pedigree

kind of products and services does FBNQuest Merchant bank offer and how are they unique beyond what the competition offer?

I like to look at it in terms of the broad range of services we provide which includes strategic advisory services, capital markets, trading/brokering securities across asset classes, developing investment solutions and securing assets. This is done through our various divisions or subsidiaries, including Corporate Banking, Investment Banking (which includes Financial Advisory, Debt & Equity Capital Markets, and Debt Solutions), Sales (which includes Institutional Sales, Wealth Management and Affluent), Markets (including Securities Trading, Currency Trading, Derivatives Structuring, and Research) and Asset Management.

We are unique because we have a culture that is reflective of our heritage and pedigree, which is trailblazing. As you know, First Bank is the pioneer financial institution in the country, and we draw on that heritage to create an environment where staff are encouraged to be entrepreneurial and grow their respective businesses.

Talking about your heri-

tage from First Bank, we know FBNQuest was formerly known as FBN Merchant Bank, what informed the transition?

In 2017, FBNHoldings adopted the ‘FBNQuest’ prefix as a unifying brand name for all entities within the Merchant Bank and Asset Management subsidiary group. We felt it was important to have an identifier for all the businesses that fall within the Investment Banking and Asset Management cluster of FBNHoldings, and that was something we fully aligned with.

The acquired companies (formerly FBN Securities Limited and FBN Capital Asset Management) were also re-named FBNQuest Securities Limited and FBNQuest Asset Management Limited respectively, in line with the strategy. The companies remain separate legal entities with their respective corporate governance structures so the transition has been smooth. Although the FBNQuest brand name was launched in 2015, the re-naming was only recently implemented to drive a stronger alignment with the go-to-market strategy.

We have since commenced several initiatives to drive understanding and clarity about our businesses, as well as what we have to offer.

Internally, the change has fostered a unified culture which emphasizes service excellence, with a clear focus on building a mutually beneficial engagement with customers and our shareholders. We are collectively focused on building a strong and consistent brand experience and becoming a premium employer which will attract, develop and retain the best talent in the industry on one global brand platform.

Beyond the positive result achieved last year, what would you say are some of the innovative initiatives and key achievements of the bank?

We had a major technology transformation program which is to upgrade our technology and enhance efficiencies, and we are now at the tail end of that project.

In addition, as we become more immersed in the digital space, cyber security becomes paramount. In 2017, we completed our ISO27001 certification on Information Security Management Systems. We also completed our Business Continuity Management Systems certification (ISO23001) last year.

These are successes we are very proud of because we did it in a relatively short period of time. We also continue to make investments in upgrading the skills of all employees, to ensure that we continue to foster a positive culture of high performance and strong leadership within the organisation.

Looking at the current state of Nigeria’s economy in terms of attracting foreign investments, what opportunities do you see?

Opportunities might be limited at this time because of the forthcoming elections.

However, interest rates are still attractive relative to other emerging and developing markets. The reality is Nigeria cannot be ignored, since Africa is seen by many as the last frontier, and we have the demographics, and a strong democracy. There are significant opportunities almost everywhere you look - whether it is in the infrastructure space or agriculture. Nigeria cannot be avoided so we are very optimistic that post-elections we will see a resurgence in foreign investments.

Leading a transition is usually quite demanding, how has the journey been for you so far?

It is really about people.

If you have good people you can achieve anything. Over time, we have seen the importance of different parts of the business and how they contribute to our overall success. Whether it is having the right governance structure, processes, or technology, I think it is really about giving people the chance to take ownership.

Our brand values speak to working in sync, empowering people and being impactful. I’ve found that if you give people that opportunity, they feel excited to come to work.

Thursday 24 May 2018

C002D5556

BUSINESS DAY

15

COMPANIES & MARKETS Kuber Developers elevates luxury benchmark in Lagos with new project …as Belmonte earns sector recognition ODINAKA ANUDU

I

n appreciation of its one of a kind project in Nigeria, the Lagos Chamber of Commerce and Industry (LCCI) recognised The Belmonte as the best real estate project of 2018. The Belmonte combines luxury, comfort, style and technology and adds a positive touch to the construction and luxury standards in Nigeria.

Ashish Chaudhary, Kuber Developers Limited director confirmed at a recent event that the firm’s vision was for The Belmonte to be a landmark building in terms of quality and luxury.

Situated on the prestigious side of Ikoyi Island, this 20-floor-tower stands high on Bourdillon Road. The Belmonte offers its client spacious apartments, lavish duplexes or presidential penthouses, and all its residents can indulge themselves in the amenities offered at The Belmonte. The

apartments are equipped with the latest technologies and high-end facilities including fire and safety system, multitier security and twenty-four hour CCTV security. The Club Floor, located on the 13th floor, has an infinity edge pool, kids’ pool, spa and wellness center, bar/lounge, kids’ play zone and a panoramic gym.

Sophistication and exclusivity are key words that define this unique luxurious tower.

The Belmonte has also taken into consideration the residents’ need for spaciousness and serenity. Knowing that the Nigerian market loves big homes, the apartments are spacious and have minimum four bedrooms. Since serenity is also a main feature that every house buyer seeks, Chaudhary stated, “We have made sure each home has large balconies and each bedroom has access to a balcony, so people can contemplate the beauty of Lagos and its ocean.”

There currently is a 17 million housing gap in the coun-

try, with population experts expecting the number to rise, given the country’s 2.6 to 3.2 percent growth rate per annum. The country’s 198 million people are constantly in search of better housing, blending space and efficiency together.

The Belmonte is also attracting investors who appreciate the country’s demographic strength. Experts say this project has improved the skyline in Lagos city, and one real estate player points out that The Belmonte is a testament that there are still real estate developers willing to redefine the sector in the country.

Chaudhary believes that the “quality of construction is on par with any international standard” since The Belmonte has engaged the best architects, structural engineers and consultants from Nigeria and across the world. Named by many industry players as ‘real estate giant’, Kuber Developers Ltd has redefined its residents’ ‘mode de vie’ with its state-ofthe-art edifice, The Belmonte.

Business Event L-R: Girish Sharma, chief operating Officer, Dufil Prima Foods Plc; Bolanle Ambode, wife of the Lagos State governor; Tope Ashiwaju, group public relations and events manager, Dufil Prima Foods Plc; Manpreet Singh, head of marketing, Dufil Prima Foods Plc, and Faith Joshua, coordinator, Indomie Fan Club, with Indomie Fan Club Children, at the 2018 Indomie Childrens Day Celebration in Lagos.

Pic by Olawale Amoo

CIBN calls for urgent review of risk management by banks HOPE MOSES-ASHIKE

T

he Chartered Institute of Bankers of Nigeria (CIBN) has called on Nigerian banks to as a matter of urgency review their risk management profile and migrate fully to Enterprise Risk Management (ERM) platform.

ERM enable organisations to deal with uncertainty and associated risk and opportunity thus enhancing the brand value and profitability.

Segun Ajibola, outgoing president/chairman of council, CIBN, made the call in Lagos at the 2018 presidential valedictory address, on ‘Enterprise Risk Management and Bank Perfor-

mance: The Nexus.

“The extant risk management template should be subjected to periodic review to align the same with global best practices given the findings that ERM holds major implications for banks’ performance”, Ajibola said.

More integration of ERM, he said should be encouraged in the other financial institutions (OFIDs) that are purveyors of credit to facilitate improved performance in the industry.

He challenged the board and management of banks to show total commitment towards the implementation of ERM in respective banks.

Ajibola recommended that regulatory bodies should ensure that banks and other financial in-

stitutions adopt ERM framework and also pursue strict adherence to proper implementation and exposure, followed by necessary monitoring and supervision.

In her opening remarks, Sarah Alade, former deputy governor, economic policy, Central Bank of nigeria (CBN), said the size and complexity of banks and the volume of financial transactions they handle requires they employ sophisticated risk management technics and monitor rapidly risk exposures.

Defining ERM she said it is a process that enables management effectively deal with uncertainty and associated risk and opportunity, enhancing the capacity to build stakeholder value.

NDPHC upgrades power supply to Lagos as it commissions 2 injection substations Olusola Bello

T

he yearning to ensure qualitative and stable power supply to Nigerians has received a boost as following the installation of two 15 Mega Volt Ampere (MVA) capacity transformers by the Federal government. This will serve Lagos and environs.

They projects constructed by the Niger Delta Power Holding Company ( NDPHC) under the National Integrated Power Project (NIPP) of the Federal Government were commissioned and handed over to Ikeja Disco on Tuesday.

The projects would go a long way in boosting the economy of

the state through the expansion and sustainability of small scale businesses.

They would also help to address key bottlenecks in the distribution network and access to affordable and reliable electricity service by Nigerians.

The two injection substations, which are located at Amikanle and Abule Taylor under Ikeja Electricity Distribution Company will boost power supply to the discos by about by 12.1 megawatts.

Chiedu Ugbo, managing director of NDPHC, while inaugurating the projects said the two 15 MVA power injection substations would boost electricity supply to customers within Ikeja Disco and its environs.

Ugbo said that the company was not just concerned in increasing the quantum of power distributed, but also the quality of electricity being supplied.

The NDPHC boss said that as part of the company’s effort to boost power supply in the country, the company has today light up residents of Amikanle and Abule Taylor under Alimosho with 1/15 MVA transformers each to supply from Ayobo transmission station through a dedicated 22.5 Km for effective supply .

He said that one of the injection substations is a 15 MVA, 33/11KV capacity which currently has a peak load of 7.7 megawatts, adding that it was a dream comes true for the people of Lagos.

L-R: James Ogbonna, deputy vice chancellor, academics, UNN; Ugonwa Nwoye, customer services executive, MTN Nigeria; Benjamin Chukwuma Ozumba, vice chancellor, UNN, and Muhammad Zia Siddiqui, chief operating officer, MTN Nigeria, during MTN Nigeria’s visit to the University of Nigeria, Nsukka

L-R: Emilio Maldonado, head of research & development, Sweet Nutrition Ltd; Swatanter Saraswat, head of sales & marketing, Sweet Nutrition Ltd; Kumar Venkataraman, managing director, Sweet Nutrition Ltd, and Hila Jimosaya, brand manager, Sweet Nutrition Ltd, at the Mr Chef Products Relaunch in Lagos.

L-R: Adedayo Ayobola, content and innovation, Airtel Nigeria; Abisola Aiyeola, singer/2017 Big Brother Naija first runner-up; Ejeba Efe Michael, rapper/2017 Big Brother Naija winner; Erhumu Bayagbon, head, corporate communications, Airtel Nigeria and Abinye David Jumbo (Mr 2Kay), singer and songwriter, at the Airtel Music TGIF - Internal launch at the company’s Headquarter in Lagos recently.

16

BUSINESS DAY

Thursday 24 May 2018

CityFile Agency seizes 295kg of cannabis sativa in Ondo

N

Lagos State Environmental management agency (LASEMA) Response Unit (LRU) fights fire after diesel tanker ignites in front of Lycée Français Louis Pasteur de Lagos (French School), Victoria Island, Lagos.

NAPTIP, NPC to jointly tackle human trafficking ... say traffickers now indulge in age falsification

N

ational Agenc y for the Prohibition of Trafficking in Persons (NAPTIP) and National Population Commission (NPC) are to jointly tackle the incidence of human trafficking in the country.

The two agencies agreed to this during an advocacy by Ghaji Bello, the directorgeneral of the NPC to the director-general of NAPTIP, Julie Okah-Donli, in Abuja.

Bello said that NPC was determined and willing to collaborate in any way possible with NAPTIP to address the menace of human trafficking which has resulted in loss of many lives within and outside Nigeria.

He announced the appointment of a liaison officer that would work with the investigation and intelligence department of NAPTIP to forestall cases of falsification of birth certificates by child

traffickers in their desperate move to traffic their victims out of the country.

The NPC director-general, who described human traffickers as wicked fellows and enemies of the society, pledged the commission’s readiness to partner with NAPTIP especially in the areas of proper identification through birth registration data.

Bello commended the NAPTIP boss for her tireless efforts aimed at ensuring security and stability in the country.

He called on all ministries, departments and agencies in the country to support NAPTIP in its bid to ensure the protection of Nigerians.

On her part, Okah-Donli, said that due to sustained pressure on traffickers, some have now devised new means of carrying out their nefarious activities by embarking on age falsification in order to ensure

smooth sail for their victims.

She explained that some of the traffickers now besiege makeshift business centres where they produce false birth declaration as part of the requirement for the procurement of visa for victims especially children bought from some of the orphanages.

The NAPTIP boss called for mutual cooperation between the two agencies in order to collectively fight human trafficking in the country.

She also appealed to the commission to avail her agency some levels of waiver in the condition attached to the verification of birth certificates.

Okah-Donli recently commenced advocacy visits to some of the critical stakeholders and partners of the agency as part of the strategic steps towards mass mobilisation against human trafficking in Nigeria.

ational Drug Law Enforcement Agency (NDLEA), Ondo State Command, has seized 295.779 kg of cannabis sativa in two weeks, Haruna Dagara, the agency’s commander, said on Tuesday.

Dagara made this disclosure in Akure during a visit to Governor Rotimi Akeredolu on Tuesday.

Dagara assumed duty in the state on May 3, 2018. The commander also said that the command destroyed about 36.5 hectares of cannabis farm, arrested 26 suspects, comprising 24 males and 2 females, and secured five convictions.

“In the same vein, from January to date, the command arrested 102 suspects comprising 93 males and 9 females, and seized 13,523.68 kg of cannabis sativa,” he said.

Dagara said that from January till date, 172 litres of ‘Skuchies’ was seized, 48.5 hectares of cannabis farm were destroyed, three houses and five vehicles were seized, and 11 convictions were secured.

He further said the command had secured the final forfeiture and permission to publicly destroy 111 tons of cannabis as part of the efforts to curb illicit drug trafficking and abuse in the state.

Dagara called for the support of the State Government to sanitise the state of cannabis cultivation and drug abuse through public enlightenment, campaigns, counselling and rehabilitation of drug addicts.

Akeredolu, who lamented the trafficking of illicit drugs, said it was unfortunate that the land meant to be part of the state forest reserves was now being used for growing Indian hemp.

“Cannabis and its cultivation pose a great concern to us in Ondo State. We have a very large area of land, which should be for the state’s use in the area of forest reserves.

“Our men don’t have what it takes or weapons to confront them, hence the need for collaboration with the NDLEA to subdue them,” he said.

Codeine: Student bags 16 months in Kano

Flooding: Ogun dredges river as lawmakers want dumpsites in LGs A RAZAQ AYINLA, Abeokuta

T

o prevent flooding and attendant loss of lives as the rains intensify, the Ogun State government has begun the dredging of rivers and streams across its three senatorial districts.

Listed among the rivers to be dredged are Owa River in Ijebu-Ode and others in Owode-Ketu and Ilaro-Owode.

Bolaji Oyeleye, the state commissioner for environment, while inspecting the dredging of Owa River which spans more than three kilometers, said the river had not been dredged for close to two decades, thereby causing flooding yearly in nearby communities and farms.

Oyeleye said the exercise was in response to several calls from residents, who had been sacked by flooding over time, expressing optimism that they would return to their homes and farming activities once the dredging was completed.

Meanwhile, the Ogun State House of Assembly has passed a resolution, calling on the state government to provide waste stations and dump sites in each of the local government areas in the state, for proper waste management and control.

The passage of the resolution followed a motion moved by the sponsor and a member representing Obafemi Owode state constituency, Tunde Sanusi, seconded by the minority leader, Olawale

Alausa and supported by the whole house, through a voice vote during a plenary presided over by Suraju Ishola Adekunbi, the speaker of the house.

Opening a debate on the motion, Sanusi said the state had witnessed influx of industries encouraged by infrastructural development. He said that there was need for the creation of transfer loading station and additional dump sites across the 20 local government areas and 37 local council development areas of the state.

The commissioner maintained that the sites, when created, would address indiscriminate dumping of refuse, as being experienced in some parts of the State and would also assist industries to dump their wastes at designated points.

Federal High Court sitting in Kano has sentenced a 23-year student, Iliyasu Magaji, to 16 months imprisonment for possessing 5.4kg of codeine syrup.

The judge, J. K. Daggard convicted Magaji following his guilty plea to a count charge of unlawful possession of codeine.

Daggard did not give the student an option of fine. He ordered that the drug should be destroyed by the National Drug Law and Enforcement Agency (NDLEA) in the presence of the chief registrar of the court.

According to the prosecutor, Iliya Waji, the NDLEA arrested the student on February 13 on Zaria Road, Kano State. Waji said that the offence contravened Section 11c of the NDLEA Act, 2014. NAN

Thursday 24 May 2018

BUSINESS DAY

C002D5556

Investor

17

In association with

Helping you to build wealth & make wise decisions NSE All Share Index

Year Open

38,243.19

Market capitalisation

N13.609 trillion

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,564.13

1,713.69

1,087.32

Week open (11 – 05–18)

41,022.31

N14.860 trillion

2,961.39

1,814.94

958.52

Week close (18 – 05–18)

40,472.45

N14.660 trillion

2,920.40

1,793.39

958.52

Percentage change (WoW) Percentage change (YTD)

-1.34 5.83

-1.38 13.89

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

330.69

2,560.39

1,975.59

1,379.74

974.72

359.55

2,691.76

2,087.78

1,602.05

975.01

350.07

2,655.08

2,059.19

1,555.38

NSE Banking Index

NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index

1,746.68

475.44

139.37

1,865.24 1,836.52

527.92

145.56

513.13

144.39

NSE 30 Index

-1.19

0.00

-1.54

4.65

-11.85

5.14

-2.80 7.93

-0.80 3.60

976.10

0.03 -0.11

-2.64

-1.36

-1.37

5.86

3.70

4.23

-2.91 12.73

Audited, interim accounts: Stock Exchange rakes in N560m from penalty by defaulters

…Academy Press, Africa Alliance, Ekocorp, Thomas Wyatt, Universal Insurance account for 50% HEANYI NWACHUKWU

M

any listed companies paid a total of N560 million a s p e na l t y t o the Nigerian Stock Exchange (NSE) for defaulting in filing their audited and interim financial accounts from 2015 financial year to first-quarter (Q1) of 2018.

The companies penalised in accordance with the Ru l eb o o k o f T h e E xc ha ng e (Issuers’ Rules) as shown in the X–Compliance Report as at May 18, 2018 are mostly from the financial s er vices sector (insurance companies a n d b a n k s ) . Ma n y o f t h e m filed their audited and interim financial statements after the regulatory due date.

The X-Compliance report is a transparency initiative of the Exchange which is designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.

Only five companies – A c a d e m y P re s s P l c , A f r i c a Alliance Plc, Ekocorp Plc, Thomas Wyatt Plc and Universal Insurance Plc paid the largest chunk of the penalty, accounting for about 50percent or cumulative N253million in paid penalty.

A c a d e m y P re s s P l c p a i d N35million default filing penalty. The company provides printing and binding services required for the production

Oscar Onyema, CEO, NSE

of educational books and periodicals, annual reports, brochures, posters, and so on.

Africa Alliance Plc paid N46.1million as penalty. The company specializes in Life Assurance business offering personalised insurance products tailored for each stage of human lives.

The Nigerian Bourse rakein N75.6million as penality from Ekocorp Plc. Ekocorp Plc provides hospital and medical s e r v i c e p l a n s a n d i t s ma i n activity is to provide direct health and medical insurance.

Thomas Wyatt Plc paid N46.8million penalty. Thomas

Wyatt Nigeria Plc is the pioneer manufacturer of school and office stationery and large scale printers which hitherto was done in the United Kingdom and imported into the country.

Also, Universal Insurance Plc paid penalty of N51.4million.

With over N8billion in assets, the company is one of the nation’s personal lines insurers.

Universal Insurance sells eight major lines of insurance, including auto, property and commercial.

INVESTOR also found companies that paid in excess of N5million as penalty. They are: Austin Laz & Company

Plc (N5.40million) for its 2016 au d i te d re su l t s ; C o n o i l Pl c (N13.5million) for its audited 2016 and first-quarter 2017 results.

Interestingly, most of the companies on the default filers list have not been able to pay shareholders dividend over time. Daar Communication Plc paid N18.3million for audited 2015, 2016, Q1’2017 results.

Equity Assurance Plc paid N11.200million for is audited result for 2016; while Great Nig e r i a In su ra n c e Pl c p a i d N30.1million penalty for its audited 2015, 2016 and Q1’2017 results.

Also, Fortis Microfinance Bank Plc paid N20.8million penalty for its 2016 audited and third-quarter (Q3) 2017 results; w h i l e t h e Ni g e r i a n b o u r s e penalised Guinea Insurance Plc for its audited 2015, Q1, Q2, Q3 2016, and audited 2016 results and the company paid N22.3million.

Niger Insurance Plc paid N16.1million for its audited 2 0 1 6 a n d Q 1 2 0 1 7 r e s u l t s, according to NSE compliance report.

Other companies that paid above N5million as results default filing penalty are: Premier Paints Plc (N11.2million) for audited 2016 result ; Royal Exchange Plc (N7.3million) for audited 2016 result ; Sovereign Trust Insurance Plc (N10.2million) f o r au d i t e d 2 0 1 6 a n d f i r s tquarter 2017 results ; STACO Plc (N7.5million) for its audited 2016 and Q1’2017 results; while Standard Alliance Insurance Plc paid penalty of N8.2million for its audited 2016 audited results.

Companies that are listed on the Exchange are required to adhere to high disclosure standards which are prescribed in Appendix III of the Listing Rules. Financial information which is periodic disclosure i s e x p e c t e d t o b e re l e a s e d in a timely manner by listed companies to enable the NSE efficiently perform its function of maintaining an orderly market.

18

BUSINESS DAY

C002D5556

Thursday 24 May 2018

Investor

Helping you to build wealth & make wise decisions

United Capital investment views

Investor’s Square

ASI extends week-on-week bearish trend …down 1.3%

Local bourse extends decline… gain, local equities slumped in the week to e n d 1 8 t h Ma y 2018, extending its week-on-week (w/w) bearish streak for the third consecutive week after shedding 1.3percent w/w to 40,472.5points.

The market started the week on a negative footing and continued until the end of the week despite gains re c o rd e d o n 1 o f t h e 5 trading days. Consequently, market capitalisation shed N64.8billion to N14.7tillion while year-to-date ( YtD) returns diminished to 5.8percent.

Performance across sector indices tracked the dull theme in the market as 4 of the 5 sector indices we cover closed in the red. The Agriculture (-6.4percent) index led the laggards’ consequent on w/w declines in OKOMUOIL (-12.9percent), and LIVESTOCK (-8.9percent).

The Financial Services and Oil & Gas indices followed, shrinking 2.8percent and 2percent respectively due to sells offs in FBNH (-9.8percent), FIDELITY (-14.7percent), JAPAULOIL (-25percent) and FO (-3.1percent). The Industrial Goods (-0.2percent) index also trended southwards as w/w depreciation in CCNN (-17.2percent) dragged the index.

Investor sentiment remained underwhelming as market breadth closed at 0.4x (formerly 0.8x); 21 stocks advanced while 52 declined.

Activity levels weakened as average volumes traded declined 8.1percent w/w to 291.3mn units while average value traded diminished 8.9percent w/w to N4.7billion.

This week, as share prices trade at relatively low levels, we expect investors to hunt for bargains amid anticipation of economic data.

Money Market: Net OMO and T-Bills maturities boost system liquidity Consistent with the week before, system liquidity opened the week to 18th of May, 2018 in the negative territory. Further compressed by $210 million FX sales for wholesale, SME, and Invisible transactions, Open Buy Back (OBB) and Overnight (OVN) rates spiked to a year high 150percent and 164.2percent respectively, at the start of the week. However, liquidity pressure lessened in the following days as banks access the CBN’s Special Lending Facility (SLF) window to ease FX liquidity pressure while inflows from OMO (N262.6billion) and T-bills (N67.7billion) maturities

A

outweighed the total OMO a n d T- B i l l s o u t f l o w o f N74.8billion. Thus, OBB and OVN rate closed the week at 7.8percent and 9percent down 57.2percent and 64.4percent w/w respectively.

The Apex bank conducted its bi-monthly Nig er ian Treasury Bill (NTB) auction, wherein it successfully refinanced N33.8bn. Demand was fairly robust with a bidto-cover ratio of 2.2x. Notably, the 364-day tenor was mostly demanded (with a bid-cover of 3.6x; 1.2x at the 182-day tenor and 1.1x at the 91-day tenors) The auction was carried out at the following stop rates: 91day (10percent vs. 10.3percent at the last auction), 182-day (10.5percent vs. 11percent at the last auction) and 364-day (10.7percent vs. 11.2percent at the last auction). In terms of liquidity profile, N267billion maturing bills are expected to hit the system this week.

Yields: Average yield edge

market, the naira depreciated by 41bps and 2bps in the parallel and official market, to close the week at N363.0/$1 and N305.9/$1 respectively.

On another note, the Investors and & Exporters FX window/NAFEX saw a 6bps appreciation to end the week at N360.85/$1. Looking ahead, the outlook of the naira is expected to remain tied to the spate of CBN’s intervention in the spot and forward market.

Global equities mixed as US treasury yield climbs to record high Global equities performance was mixed in the week that ended 18th May 2018. US Treasury yields rose to a 10-year high, increasing pressure on emerging market assets during the week. Beyond the marginal core retail sales grow th (0.3percent) in April, jitters around trade war between the US and China re-emerged as President Trump’s comments

RSA fund price of PFAs as at May 18, 2018 S/N 11 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

PFAs CrusaderSterling Pensions Premium Pensions ARM Pension Mgrs.

Stanbic-IBTC Pensions Legacy PFA PAL Pensions NLPC PFA First Guarantee Pension Trustfund Pensions Leadway Pensure PFA SigmaVaughn Pensions AIICO Pension Managers APT Pensions Fidelity Pensions AXA Mansard FUG Pensions OAK Pensions Investment One Pension Mgrs.

IEI Anchor Pension Managers Radix Pension NPF Pensions

higher as investor sell-off across the long end of the yield curve Sentiment was bearish across the longer tenor bills last week as players traded sentiments around liquidity.

Overall, average T-bill yield increased by 15basis points bps w/w to close the week at 13.2percent (91-day (down 64bps to 12.8percent), 182-day (down 44bps to 12.7percent) and the 364-day (up 153bps to 14.1percent). In a similar theme, average bonds yield inched higher by 11bps to end the week at 13.5percent, driven by sell-offs in the 3-year, 5-year, 7-year and 10-year maturities, where yields rose by 15bps, 16bps, 2bp and 7bps respectively.

Looking into the new week, we expect market activities to be largely determined by decisions made at the MPC meeting as speculations of policy easing mounts.

Currency Market: Naira appreciates at the I & E FX window In the Foreign exchange

CURRENT PRICE 3.9709 3.9137 3.8895 3.7506 3.5886 3.4334 3.4176 3.2698 3.2404 3.1241 3.1131 3.0135 2.8070 2.7114 2.6853 2.6243 2.5348 2.4594 2.3159 2.0250 1.4604

cast doubts on the success of negotiations with China.

However, this ended well following a trade truce signed by both economies during the weekend. Consequently, the NASDAQ (-0.6percent), DJIA (-0.5percent) and S&P 500 (-0.5percent) declined w/w.

European markets, h o w e v e r, r e m a i n e d b ro a d l y p o s i t i ve, a s t h e U.K. government considers staying in the customs union post-BREXIT even as earnings numbers drove stock prices northwards.

F r a n c e ’s C A C ( + 1 . 3 % ) , U K ’s F T S E ( + 0 . 7 % ) a n d Pan-European STOXX ( + 0 . 6 p e rc e nt ) a d v a n c e d w/w.

Emerging market indices, as represented via the BRICS classification, tracked the bearish path save for China’s SCHOMP (+0.9percent) which advanced w/w. Brazil’s IBOV (-4.3percent), India’s SENSEX (-1.9percent), Russia’s RTSI (-1.7percent) and South Africa’s JALSH (-1.1percent) all depreciated w/w.

•Have you been shabbily treated by your registrar, stockbroke r or other capital market operators?

Let us know and investor will help you investigate and report back.

E-mail: iheanyi.nwachukwu@businessdayonline.com

Ikeja Hotel: When regulatory actions saved minority shareholders IHEANYI NWACHUKWU

T

h e l at e s t o f g o o d news on Ikeja Hotel Plc came in early this week (Monday May 21, 2018), when the Nigerian St o c k E x c ha n g e ( N S E ) lifted the suspension of trading in its shares.

The lifting of the suspension of trading in the shares of the company followed approval by the Quotations Committee of the National Council of The Exchange on Friday May 11, 2018, according to a circular signed by G odstime Iwenekhai, Head, Listings Regulation Department, NSE. The Securities and E xc ha ng e C o m m i ss i o n had barely one year ago dissolved the Board of Ikeja Hotels Plc due to internal crisis which involved some majority shareholders of the hotel.

The SEC decision was a necessar y proactive measure to dissuade then warring parties from taking certain actions that would have affected minor ity shareholders and other investors.

T h e re g u l at o r a c t e d in line with the powers confe r re d on it by the Investment and Securities Act (ISA), 2007 to protect investors and the integrity of the securities market.

The NSE had about 18 months ago (November 10, 2016) suspended trading in the shares of the company.

In one trading day, stock traders exchanged 404,049 units of the companies’ shares at N1.86.

Before the new board was appointed by SEC , the company was plagued with unhealthy corporate governance practices in disregard with the Code of Corporate Governance for public companies.

The new board members of Ikeja Hotel Plc led by Anthony Idigbe, a Senior Advocate of Nigeria on Friday May 18, 2018 provided a status update to the market stakeholders at a “Facts Behind the Restructuring” on the Exchange.

The Idigbe-led board’s

objectives are to protect the investors of the company; protect the integrity of the capital market; and restore the lost fortunes of the company in the shortest time possible.

The new board has the mandate to oversee the conduct of a forensic investigation into the affairs of the company (investigation into the allegations of unauthorised sale of shares and diversion of proceeds from sale of shares amongst others).

The new board assured investors in Ikeja Hotel Plc of immediate readiness to complete the forensic audit on the company and its investee companies, Capital Hotels Plc and To u r i s t C o m p a n y o f

Meeting of the company on October 25, 2017; reorganised the staff with resultant return to vibranc y and company efficiency; and reduced o p e rat i ng e x p e n s e s by 9percent.

The new board of directors of the company has also reviewed existing/ commenced drafting of new corporate governance policies; commenced active engagement with the regulators in a bid to resolve all regulatory sanctions levied against the company; actively engaged with the operators, key shareholders and staff in a bid to restoring business confidence; and appointed Meristem Capital as Financial Advisers to

Nigeria.

Ikeja Hotel Plc principal business is the provision of hospitality ser vices. The Company has controlling interest in Capital Hotels Plc, the owners of Sheraton Abuja Hotel. It also has significant influence in the Tourist Company of Nigeria, owners of Federal Palace Hotel & Casino by virtue of its shareholding.

The current Board of Director, which was inaugurated on the May 15, 2017, together with the management, swung into action in the following areas: concluded the audit of financial statements for the years ended 2012, 2013, 2014, 2015 and 2016; s u c c e s s f u l l y c o nv e n e d the 40th Annual General

propel the ongoing restructuring activities.

Idigbe said they will “work with the financial advisers to unlock inherent value of Ikeja Hotel Plc; ensure adherence to best standards of regulator y compliance and Corporate Governance; restore investor confidence in the company; and return the company to its position as the leader in the Tourism and Hospitality industry in Nigeria.

Ikeja Hotel Plc has a long-standing operating ag re e m e nt w i t h g l o b a l hospitality brand, Mar r iott International.

The Top choice hotel for 7 international airline crews has 663 rooms, 8 outlets, 14 meeting rooms and 2 conference halls.

C002D5556

Thursday 24 May 2018

BUSINESS DAY

Investor

19

Helping you to build wealth & make wise decisions

Stocks offer entry opportunity for value hunters …as Japaul, Skye, Diamond, CCNN, Fidelity, others cause N200bn market loss IHEANYI NWACHUKWU

N

igerian stock m a r k e t recorded N200billion value loss last week as fifty-four (54) stocks led by Japaul Oil Plc depreciated in price, higher than forty-nine (49) stocks that the lost their values in the preceding week.

Despite the decline in market breadth, analysts’ outlook for the stock market in the near-term remains largely positive.

Investors are expected to hunt for bargains as many stocks trading at relatively low levels offer attractive entry points for good deals.

Before now, the firstquarter (Q1) 2018 earnings season was largely positive as many companies reported improved margins which helped spur demand for stocks as fixed income yields environment remained low.

In the trading week to May 18, only 20 stocks advanced in price; lower than 35 in the preceding trading week.

The value of listed equities which opened last week at N14.860trillion, decreased to N14.660 trillion as at trading week to May 18, 2018.

T h e Ni g e r i a n S t o c k Exchange (NSE) All-Share Index (ASI) which tracks the performance of the b ours e depre ciate d by 1.34percent to close last week at 40,472.45points against 41,022.31 points on May 11, 2018.

As the market awaits further catalyst for growth, activity will equally be tied to first quarter (Q1) economic data, such as, the Q1 2018 GDP which grew by 1.95percent, driven by negative trade growth.

Top losers Japaul Oil & Maritime Services Plc stock recorded the biggest weekly loss of 10kobo or 25percent, from week-open level of 40kobo to 30kobo.

Skye Bank Plc followed after its share price declined from 94kobo to 76kobo, re p re s e nt i n g a l o s s o f 18kobo or 19.15percent ; while Diamond Bank Plc lost 35kobo or 18.42percent as its share price decreased from N1.90 to N1.55 in the review trading week.

The weekly report of the Bourse shows other stocks that failed to impress investors. They include Cement Company of Northern Nigeria Plc (CCNN). CCNN lost N5 or 17.24percent last week, from

N29 to N24. Also, Fidelity Bank Plc joined the list after its share price decreased by 37kobo or 14.68percent, from N2.52 to N2.15.

Veritas Kapital Assurance Plc share price decreased from week-open level of 42kobo to 36kobo at the close of the week, representing 6kobo or 14.29percent loss.

Equity Assurance Plc share price depreciated further from 29kobo to 2 5 ko b o, re p re s e nt i ng 4kobo loss of 13.79percent; followed by Okomu Oil Palm Plc which lost N11.60 or 12.89percent, from N90 to N78.40.

C&I Leasing Plc lost 22kobo or 12.87percent, from N1.71 to N1.49; while Niger Insurance Company Plc recorded dip, from 24kobo to 21kobo, down by 3kobo or 12.50percent.

Index movement All other indices finished lower last week with the exception of the NSE Consumer Goods Index which appreciated by 0.03percent.

The NSE Corporate

Governance Rating System (CGRS) Index decreased from 1,654.12 points to 1,620.71 points, representing a decline of 33.41points or 2.02percent.

NSE Premium Index decreased from 2,961.39 points to 2,920.40 points, down by 40.99 points or 1.38percent. The NSE-Main Board Index also decreased, from 1,814.94 points to 1,793.39 points, representing 21.55 points or 1.19percent decline.

NSE ASeM Index was unchanged at 958.52points.

NSE 30 Index lost 28.72 p o i nt s o r 1 . 5 4 p e rc e nt, from 1,865.24 points to 1,836.52points. NSE Banking Index lost 14.79 points or 2.80percent, from 527.92 points to 513.13 points. NSE Insurance Index decreased from 145.56 points to 144.39 points, down by 1.17points or 0.80percent.

NSE Consumer Goods I n d e x d e c re a s e d f ro m 974.72points to 975.01points, down by 0.29 points or 0.03percent. The NSE Oil/

Gas Index lost 9.48 points or 2.64percent, from 359.55 points to 350.07 points.

NSE Lotus II Index declined by 36.68points or 1.36percent, from 2,691.76 points to 2,655.08 points.

NSE Industrial Goods Index decreased by 28.59 points or 1.37percent, from 2,087.78 points to 2,059.19 points; while NSE Pension Index lost 46.67 points or 2.91percent, from 1,602.05 points to 1,555.38 points.

improvements in leading economic indicators to improve investor sentiments, and downward drift in T-Bills rates to further bolster domestic transaction on the bourse”, Rewane noted.

Equity research analysts at Lagos-based Vetiva Capital said that “The decline in market activity has come amid cooling market sentiment and increased risk aversion after the initial January rally (market closed 16percent higher in

Analysts view Bismarck J. Rewane, managing director/CEO, Financial Derivatives Company Limited said at LBS Executive Breakfast M e e t ing that investors remained lukewarm as the market appeared overpriced.

“NSE performance will be driven by economic developments – minimum wage review, increased oil revenue, higher output (positive GDP growth),

January) and ahead of the 2019 elections”.

They noted that following an initial surge in market activity at the start of the year (January daily average: N8.9 billion), trading turnover has moderated in recent months, falling from a daily average of N6.9 billion in first-quarter (Q1) of 2018 to N5billion so far in May. Vetiva equity analysts also stated that domestic investors have not provided the expected

support in the market as implementation of Pension Commission (PenCom) multi-fund guidelines has stalled. “Given all this, we do not expect trading activity to pick up significantly in the near-term as investors continue to monitor political developments”, the analysts noted.

“In the meantime, we strongly advise investors to take a keen interest on firms’ fundamentals before taking an investment position. We equally advise on taking a medium-long term view of the market”, GTI researchers said in their May 1 note to investors.

Top gainers Among the 20 top performers, Sovereign Trust Insurance Plc stock price increased most, from 20kobo to 26kobo, up by 6kobo or 30percent; Mutual Benefits Assurance Plc stock price also increased from 28kobo to 33kobo, up by 5kobo or 17.86percent.

NPF Microfinance Bank Plc stock price increased last week from N1.76 to N1.94, representing 18kobo or 10.23percent gain, while Fidson Healthcare Plc stock price moved up from N5.38 to N5.76, an increase of 38kobo or 7.06percent.

Beta Glass Plc stock price advanced from N83.20 to N87.35, up by N4.15 or 4.99percent ; Continental

Reinsurance Plc also went up by 7kobo or 4.90percent, from N1.43 to N1.50; UACN P ro p e r t y D e ve l o p m e nt Company Plc gained, from N2.15 to N2.25, up by 10kobo or 4.65percent; and Prestige Assurance Company Plc stock price which increased from 46kobo to 48kobo, up by 2kobo or 4.35percent.

Also, CUTIX Plc stock price advanced last week from N3.05 to N3.15, an i n c re a s e o f 1 0 k o b o o r 3.28percent; CAP Plc stock price rose from N38.90 to N40, an increase of N1.10 or 2.83percent.

Equity turnover In the week under review, the stock market recorded total turnover of 1.457 billion shares worth N23.6billion in 19,674 deals in contrast to a total of 1.58billion shares va lu e d at N 2 5. 9 billi on that exchanged hands the preceding week in 21,115 deals.

The Financial Services Industr y (measured by volume) led last week activity chart with 1.223 billion shares valued at N16.8billion traded in 11,092 deals; thus contributing 83.98percent and 71.093percent to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with 76.430 million shares worth N5.188 billion in 3,425 deals; followed by Oil and Gas Industry with a turnover of 57.193 million shares worth N527.880 million in 2,237 deals.

Trading in the Top Three Equities namely –Zenith Bank International Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc (measured by volume) a c c ou nt e d f o r 4 9 1 . 6 4 9 million shares worth N14.159 b i l l i o n i n 3 , 2 6 5 d e a l s, contributing 33.75percent and 59.83percent to the total equity turnover volume and value respectively.

Exchange Traded Products/Bonds Also traded during the review week were 153,246 units of Exchange Traded Products (ETPs) valued at N4.009 million executed in 22 deals, compared with a total of 444,190 units valued at N2.514 million that was traded the preceding week in 11 deals. For Bonds, NSE report shows a total of 7,508 units of Federal Government Bond valued at N7.506 million were traded last week in 12 deals, compared with a total of 7,647 units valued at N8.047 million transacted the preceding week in 30 deals.

20

BUSINESS DAY

C002D5556

Thursday 24 May 2018

Thursday 24 May 2018

C002D5556

BDINVESTIGATION

BUSINESS DAY

21

Echoes of despair, frustration as Boko Haram holds economy hostage (2) The wealth of Borno, as many sources said, was previously held by people into agriculture in one way or the other. But today, most have lost their wealth and become charity cases, more or less. In the past, these people were the ones empowering others. Amongst other stakeholders interviewed during his Northeast trip, Caleb Ojewale met separately with Abdulkadir Jidda, chairman, All Farmers Association of Nigeria (AFAN), Borno State chapter, and Mohammadu Rijiya, former president, Borno Chamber of Commerce and Industry. Excerpts: Abdulkadir Jidda, chairman, All Farmers Association of Nigeria (AFAN), Borno State chapter shared some insights.

you see them, they are in a very pathetic situation. They are not used to any environment other than the farm.

For five years now, they are just sitting under the shades, and receiving handouts. It is very painful.

What is paining me really is that the concern shown to farmers in this our area is not adequate. Because, by this time, I was expecting the government should be conceiving and designing some arrangements to get farmers work under whatever conditions.

The Federal Government sends foodstuff and so many things which don’t reach the farmers, but nobody cares. So you see a farmer going round, begging for food.

Even from the NGOs, they may not get anything in as much as three months; and they don’t know whom to complain to. They have lost their source of livelihood, and very few people care about that, which is very dangerous. They are very vulnerable, and the youths among them can be used for anything. If you see your father dying of hunger, whatever thing comes your way, you (may) just grab it, and maybe it is how the insurgency is

How has AFAN been coping in the last 5-7 years; as an agricultural body in the face of insurgency? t was really not easy. Since 2011 till date, there has been no serious farming activity anywhere (in Borno). Even in areas we say are fairly secure, they are not all that secure in the real sense of it. This is because the villages are not that secure, it is not easy to go there and all our farmers in the bush are already down. At a time, residents from 17 out of 27 local governments in the state were relocated to Maiduguri (as insurgents had overrun their homes).

Farmers couldn’t go beyond than 2km from Maiduguri to do any farming, because if they see you they just shoot you. That’s why we couldn’t do any serious agriculture since that time, only in Borno south where there are some activities but even then many people are scared.

From here up to the North, East, to Baga, to the borders with Niger, Chad, and Cameroun, all these are no-go areas for anybody, let alone farmers who have to spend the whole day on the farm.

I

Whatever the cost, even if it is amnesty, let the farmers go back to their farms getting more recruits. That is my own perspective, and I hope something fast can be done to stop it. Whatever cost (has to be paid) is not too much; at whatever cost, let them stop it.

What is being lost to inactivity on the farms, and looking back to say ten years ago, how you would describe agricultural productivity before the insurgency?

Before 2009, one could say Borno was a hub of

People are increasingly suffering from hunger, and you will see people farming all over the country but no food here because we can’t afford to buy it farming in the country. We held the first position in about ten commodities; especially livestock, fish, beans, groundnut, and people would come for these commodities from everywhere; up from Sudan (outside the country), down to Lagos, in the southern part of Nigeria. People who were prospering here were especially farmers, as they were in control of almost all the wealth. Also, whether a person had a white collar job or some other paid employment, they usually would still farm, and almost 90 percent of the people were into farming. The village dwellers were however 100 percent farmers, no other business. But now you can’t see anybody, only dead bodies on the farms.

Even recently, they killed about 15 of our farmers. They came and reported to me and I asked; what can I do about it? It happened in this Jere area where they went to clear their farms and gather some firewood. All of them were slaughtered on their farms, and there is nothing anybody can do about it. And that is why even now, no one goes outside Maiduguri, off the tarred road for more than five to six kilometres.

How long do you think it will take before farming activities can return to normalcy, and for the state to get back to where it used to be?

This is not an easy question to answer. You know,

There is this suggestion that amnesty should be offered to the insurgents, what is your take on this?

As a leader of the farmers, and the way I see them suffering now, I will support anything which will take them back to their farms. Whatever the cost, even if it is amnesty, let the farmers go back to their farms. This is my wish, sincerely.

People are increasingly suffering from hunger, and you will see people farming all over the country but no food here because we can’t afford to buy it.

Abdulkadir Jidda

the insurgency is unpredictable, you can’t predict when they will stop. Nobody knows when they will stop, but if they stop even today, by next week you will not find even one farmer here in Maiduguri anymore. All of them are very eager to go back, like Bama people. Recently they opened Bama road, and up to 4,000 people have moved back. They are cautious but very eager to go back, and more are going by the day. But you can’t say when all the farmers will go back.

The areas that are still relatively safe in southern Borno, how would you assess the level of productivity in those places?

As I was saying, even though they farm there, it is being done very cautiously. They cannot come boldly today as they used to but they still farm, and get between 50 to 70 percent of their former yields.

So, even all of us we sometimes go there (southern Borno) to do some small farming.

They are fairly ok up to Dadin Kowa, and to Gombe state. These are places our people go for something small to farm.

You said the state was known for ten major commodities, can you tell us some of them?

First is the livestock, as someone from Lagos you will know that (the popular) Borno fish is the best in the whole country. There is also beans; both red and white varieties, millet, sorghum, gum Arabic, groundnut, and wheat production (in which we were the first because of the Chad basin).

67,000 hectares of land was farmed for wheat in the Chad basin. The Chad Basin Development Authority (CBDA), has vast land stretching the whole shores of lake Chad. Watermelon was also cultivated on land covering several kilometres along the shores of Lake Chad.

What is happening with all the land previously used for wheat cultivation?

Nothing is going on. Everything just stopped.

Nobody goes there. But the fortunate thing is; the generators which supply the whole of Borno, Yobe and some other places for irrigation are still

You can’t imagine the pain I am in, you just can’t imagine it. But at least, I am fairly literate.

The illiterate ones are the worst hit by this calamity, they don’t have anywhere to go or any other business other than farming.

there. They are part of the design, about nine generators, and two were being used back when activities were still on. The whole generators are still intact, surprisingly.

The generators which are located in New Marte, headquarters of the CBDA are intact and haven’t been touched by anyone, not even the Boko Haram boys.

The 67,000 hectares spread across Ngara, Marte (which is the largest), to Baga, small pockets in Gamboru Ngala, and some other locations. But, nobody can go there now.

How much impact did the Chad basin have on farming activities?

That Chad basin area is flat land, and the water table is very high. If you go nearer to the lake shores, there is even no need for fertilisers because it is alluvial soil, covering a wide area over about ten local government areas. There, farmers produce year round and the place is very fertile.

We were told when growing up that for 100 years to come, that water under Lake Chad basin will suffice for irrigation of the area. This is because we have the highest volume of underground water in the whole of Africa.

The place is very flat, and you can jump down in a parachute and land anywhere with your eyes closed; you can’t find any bushes, so you can farm anywhere.

How did it feel losing your land and running away?

It was a terrible thing for me, especially because I have a large family and being a leader of the farmers, now sitting at home doing nothing for five, six years. You can’t imagine the pain I am in, you just can’t imagine it. But at least, I am fairly literate. The illiterate ones are the worst hit by this calamity, they don’t have anywhere to go or any other business other than farming. So even now, if

Would this mean the National Bureau of Statistics report that there is a lot of food in the market but people are unable to buy, is accurate?

They are right. There is plenty food in the market coming from outside our area, but it is not easy for the people to buy it because they don’t have money. It is difficult for people to buy food. Imagine coming from a village where you were so rich there, with plenty cattle, food, everything, and within one hour you’re forced to run out with one gown, or one jumper, you come here but no one cares about you, because many are like you. You see someone who was the richest person in their area, begging in the market here in Maiduguri, this is how bad it is. So, whatever they do to end this insurgency, whatever they agree with them (Boko Haram insur-

Mohammadu Rijiya

gents) we support it.

Mohammadu Rijiya, former president, Borno Chamber of Commerce and Industry, made a substantial part of his wealth from agriculture.

He had a network of out grower farmers he supported with inputs in order for them to produce commodities such as cotton and sesame. He would then buy these products from the farmers and export to industries, processors, or other large scale buyers as may be required. The business of trading in agro-based commodities has however, for at least five years according to Rijiya, been at a near zero capacity. This is at least when supplies which previously came from Borno (and other Northeast states) are considered. Since Borno like other neighbouring north-eastern states shares borders with Niger, Chad, and Cameroun, it provided a lot of opportunities for cross border trading of commodities produced in by the farmers in Nigeria, but this is no longer feasible.

He told Caleb Ojewale when they met in Maiduguri that he started the cotton business 34 years ago in 1984, supplying to textile companies in different parts of Nigeria before the industry became comatose.

A chart pasted on a wall, shows population of Internally Displaced Persons at the Farm Centre Camp, one of many in Maiduguri

What is your assessment of the present economic condition of Borno state and how have you been affected?

First, let me start with impact on farming because I am very familiar with the farm business. This is cotton on my table and before now, I bought from Maiduguri, Bama, Gwoza, Damboa, and Biu. We also did not have any ginnery here, only AMCON in Adamawa where I had to take it for processing. But now it is even difficult to find market in Nigeria as there is currently no textile company.

Last year there was no rain, which meant farmers couldn’t produce. Also, in the past, when I want to buy cotton from my people (i.e. out grower farmers), nobody provides me with credit. Government offers no help, same for bank. I would often use my money to support a network of out grower in different parts of Born.

Then after harvest, I buy from them, take to the ginnery and supply textile factories.

As of now, Bama and Gwoza where I used to get cotton supplies have not been farming, and we are only hoping to return to production this year. In the last five years, there has been no farming.

I also trade in Sesame seeds, but I have been unable to buy here in Maiduguri, since production has been down. But, perhaps this year government will provide some support for farmers to return to farming and resume production.

As of now, Bama and Gwoza where I used to get cotton supplies have not been farming, and we are only hoping to return to production this year. In the last five years, there has been no farming

There is no money in the whole of Borno state; inside the town, even here in Maiduguri, all local governments are dry, in fact, zero. No money, no farm, no food, nothing. We learnt that the President brought credit from NEXIM bank, but small people or unable to access this money as conditions attached to it are too high.

Out of about six million people in Maiduguri alone, the number of those who can provide the required collateral does not exceed 100 people.

However, if the necessary support is provided, people will be able to return to the farms. But currently, there is no money, food, nothing.

Talking about agricultural production before insurgency say ten years ago, how was it?

10 years ago it was good. Borno had farms, and businesses all working well. You know we share borders with three countries, Niger, Chad, and Cameroun. Business was smooth, and farms were doing well. Personally, I was even buoyant enough to extend credit to my network of out grower farmers in different parts of the state.

After the farmers produced, then I would buy from them. But now, my capacity is reduced, likewise the people.

There is financial incapacitation for most farmers to resume production and the state government does not have the resources to meet the needs of people, only the Federal Government can help out.

It is also preferable that whatever assistance government provides is done directly to each farmer, and not through anybody or third party.

How do you think agriculture can be revived in the state?

Next month, the rainy season will start but considering the present condition of people, nothing may change. But if government, particularly at the federal level can provide support (let’s forget state government), then people will be able to farm What of the security situation It is getting better with time

22

Luxury

BUSINESS DAY

Malls

Companies

Deals

C002D5556

Thursday 24 May 2018

Spending Trends

Catch-22 in Nigeria’s retail electricity market as DisCos owe N22bn STEPHEN ONYEKWELU

N

igeria’s households will have to live with unlit houses at night, loud generator noise, air pollution and regular power outages as electricity distribution companies (DisCos) miss payments by 74.39 percent, presents a Catch 22 situation.

Eight of the 11 electricity Distribution Companies (DisCos) have remitted N11.38 billion only from the invoices of N44.44bn they received from Generation Companies (GenCos) for the electricity they purchased in February 2018; data from the Nigerian Bulk Electricity Trading PLC (NBET) has shown.

The update of monthly remittances for the 3,225 megawatts hour per hour (MWh/h) energy consumed by the DisCos posted on the website of NBET showed that the payment represented a paltry 25.62 per cent payment of the invoices.

BusinessDay’s examination of the financial statements of seven DisCos indicate that they are veering dangerously close to full blown bankruptcy with reported losses of over N196.23 billion to end the 2016 financial year.

To help improve the solvency ratio of DisCos, the Federal Government had considered raising its stake in the DisCos to 60 percent from 40 percent, BusinessDay learnt. But people with deep knowledge of the proceedings say hurdles against this move are enormous.

Analysts say for the Federal Government to succeed with the plan, it has to buy out the DisCo debt as equity, ensure that electricity tariff

are market-based, and help DisCos get return on investments on their assets.

The action would also need to be in line with the Put/Call agreement government signed with DisCos. Experts have urged government to dilute the shares of the core investors in the DisCos using the funding clause in their performance agreement as a way of resolving the current shortfalls in the electricity market currently valued at about N1 trillion.

“The FG should rely on the funding clause in the Shareholders Agreement which allows the BPE as a 40 percent shareholder in

the Disco to inject capital into the DisCos in the event that there is a requirement for further funding which the core investor is unable to provide. The clause allows the BPE to dilute Core Investors equity in the DisCo by such funding,” Wesley Omonfoman, CEO of New Hampshire Capital Investments Limited, an energy consulting firm told BusinessDay last year.

The NBET’s February record showed that three other DisCos remitted zero amount in the month from the N8.68bn invoice prepared by the GenCos for them.

The three DisCos without any remittance, according to the data,

are Kaduna DisCo with N3.30bn invoice; Port Harcourt DisCo, N3.75bn; and Yola DisCo, N1.63bn.

Leading the DisCos on the remittance list was Ikeja DisCo by 47 per cent after it remitted N2.63bn from its N5.59bn invoice; followed

by Eko DisCo at 40 per cent after the firm remitted N2.09bn from N5.22bn invoice.

Ibadan DisCo came third, remitting N1.93bn (32.83 per cent) from its N5.89bn invoice. Although Abuja DisCo had the highest invoice of N6.19bn, it was fourth on the list having remitted 32.19 per cent equivalent to N1.99bn.

The sixth firm on the remittance

level was Enugu DisCo on 26.63 per cent. The firm remitted N1bn out of an invoice of N3.75bn. At the sixth place was Benin DisCo which remitted N1bn of its N3.79bn invoice, representing 26.51 per cent, the record showed.

Jos DisCo remitted the least of N225 million from N2.26bn invoice it got, representing 9.92 per cent payment level; Kano DisCo was at 16.49 per cent as it remitted N500m from its N3.03bn invoice.

Late payment of N9.36bn was recorded for January 2018 invoices summing the February payment to N20.75bn, the electricity market intermediary agency noted

Convenience, style drive Nigeria’s wig market BUNMI BAILEY

T

he wig industry is fast becoming lucrative in Nigeria and a trend among ladies gradually replacing the traditional styles of hairdo.

A wig is a head covering made from human hair, animal hair, or synthetic fibre. The word wig is short for periwig and first appeared in the English language around 1675.

Key determinants of demand for wig brands include: wigs’ materials quality, hair type (natural or synthetic, African American, synthetic human hair blend), hair length (long, medium, short).

Others are colour, hairstyle, manufacturing process (hand-tied or mass production), wigs’ cap (monofilament, lace front, and cap-less), brand, construction, hair texture (straight, curly, wavy), cap size (average, average-small, average-large, petite, large, petiteaverage, petite, ultra petite), heat friendly or not.

The most expensive are human

hair wigs that are hand-crafted and have monofilament cap. They look very natural, are made of quality materials. The cheapest wigs are synthetic hair wigs for entertainment (Halloween wigs), they look unnaturally and can be worn not for a long time.

“We sell more wigs than normal weaves here. A normal synthetic one costs like N5, 000 while the natural one can go as high as N10, 000

without closure but with closure it is like N13, 000,” a sales girl said For years, men and women of all ages have been enjoying the freedom and versatility of this simple-yet-life-changing product. The wig is quickly becoming as commonplace as hair-colour, acrylic nails, and body-shape wear for that instant boost in beauty, confidence, and overall fabulousness.

And now wearing wigs has

become a trend especially among ladies. Some of its benefits include limitless styles, convenience, wigs can hide thinning and restore confidence, it protects the health of your hair and also your budget since you won’t need as many salon appointments. Wearing a wig in general is a fun way to spruce up your style and also add an element of Hollywood glamour, projecting a dramatic, “larger than life” effect.

According to ladies wigs have been trending for two years and are still trending very fast.

“The sales of wigs have being booming for like two years now.

Mostly ladies come here to buy the weaves so that they can make a wig out of it. Ladies love it especially in this hot season. It is versatile, save cost and time of going to the salon, and it is convenient,” Choice Goodwin, a salesgirl at Wholesalenaija, said It is a known tread that women can do anything to look good especially when it comes to hair and can spend more no matter the cost.

On the streets of Lagos markets,

you see stalls mostly full of wigs and the ladies or men in the streets display the wigs to attract the attention of ladies.

The market for imported human hair is booming in Africa because millions of people, predominantly women, are demanding for it. And as a result of this a lot of people are going into the human hair business.

And at the same time it is creating a new skill for hairstylists by learning how to make wigs especially the braid ones.

“I had to learn the skill fast because nowadays ladies don’t make their hair and that affects my profits. So at the moment I make more braid wigs than hairstyling,” An anonymous hairstylist said According to estimates, Africa’s dry hair market, that is, the market for weaves, wigs and hair extensions — is currently worth over $6 billion a year and growing quite rapidly.

On the African market, human hair products are often branded along ethnic or racial lines. ‘Brazilian’, ‘Peruvian’, ‘Malyasian’ etc. are just a few of the very common names you’ll hear.

Thursday 24 May 2018

C002D5556

BUSINESS DAY

23

Global retail update

F

Innovative stores rench giant Carrefour debuted a new store concept in Shanghai featuring smart upgrades such as WeChat app payments and facial recognition from partner Tencent.

Meanwhile, Alibaba seems to be well ahead of developments in the US as it offers facial-recognition-payment in its futuristic Hema Xiansheng supermarket.

E-commerce investment South Korea’s Lotte Group plans to spend USD 2.8 billion on its online business.

CEO Kang Hee-tae says that the group will develop a comprehensive e-commerce shopping platform, integrating all eight of its online stores by 2020 and also form a special business department.

Toy trouble Down Under Toys ‘R’ Us Australia has gone into voluntary administration months after the US and British retail giant’s collapse. The company operates 44 retail outlets across the continent and employs about 700 permanent staff.

The stores open while the administrators explore options.

Tech experiments Albertsons could be the next food retailer to roll out checkout-free technology similar to Amazon’s ‘Go’ and will pilot a test with ‘a limited set of products’. The Idahobased grocer has also created the role of a chief data and analytics officer in a bid to bolster its omnichannel

capabilities.

Tailor-made offers Targeted at the “high net worth urban consumer”, bigbox retailer Walmart is testing Jetblack, a personal shopping service in New York, and will also test a cashier-free store concept. Department store operator Kohl’s has teamed up with global media firm PopSugar for a new apparel collection aimed at millennials.

Top dog Speciality pet retailer Petsmart has ended its ninemonth search for a chief executive and announced the appointment of J.K. Symancyk.

He succeeds Michael Massey, who abruptly resigned from the company in August 2017.

Symancyk worked in vari-

ous management positions, including with Sam’s Club and Meijers.

Joining forces in Europe UK smart food platform Whisk has acquired its German competitor Avocando and will expand its shoppable recipe services across Europe. Meanwhile, the Polish competition watchdog has given the green light for the purchase of Mila supermarkets by Poland’s Eurocash Group.

Threat potential Lidl reportedly plans to move online in the UK and has created a holding company called Lidl Digital Logistics, probably eyeing the grocery delivery market. In France, Carrefour has not found buyers for 227 of 273

former DIA stores it wants to sell, putting them at risk of closure.

Return scheme British retailer Iceland has announced that it is the first UK supermarket to implement a ‘reverse vending machine’ in-store, in support of the government’s intention to introduce a depositreturn scheme. Shoppers can insert empty containers into the machine, and receive money or vouchers in return.

Pricey post in America President Donald Trump is pressing Postmaster General Megan Brennan to double the prices the postal service charges Amazon and other similar companies for shipping parcels.

She has so far rejected the

suggestions explaining that these arrangements must be reviewed by a regulatory commission.

Public offering BJ’s Wholesale Club is registering its stock for an IPO, in a bid to take the company public again. The USD 12.8 billion warehouse operator intends to use the takings from the offering to repay a USD 735 million debt. The company owns 215 warehouse clubs.

Abrupt exit Campbell Soup CEO Denise Morrison has suddenly stepped down after seven years at the top. At the same time the company has said it will be reviewing many of its brands following a grim outlook for the year as it posted a loss of USD 393 million last week.

Bleak forecast in Europe Marks and Spencer are poised to announce a second successive drop in revenue.

This coupled with the retailer’s shares falling almost a quarter in the last year is grim news for the 134-yearold company. Staff will find out today whether their store is closing.

Crunch time Premium potato chip brand Tyrells has been acquired from US manufacturer Hershey by UK confectionary company KP Snacks for an undisclosed figure.

Hershey bought the brand less than year ago from Amplify Snacks Brands for GBP 300 million, which first acquired it in 2016.

Speak up All parties likely to be affected by the AsdaSainsbury’s deal will have a chance to express their views to the UK Competition and Markets Authority who have called for submissions on the merger. Meanwhile, Walmart-owned Asda celebrates its fourth consecutive quarter of rising sales.

Ambitious expansions Alibaba has entered the competition to dominate mobile payment services in Thailand. The Chinese group is supporting TrueMoney, a rival of market leader Rabbit Line Pay. In China, Alibaba’s Hema Fresh Market is looking to expand its catering options in a collaboration with regional restaurant operators.

Done deal Chinese retail major JD.com has partnered with New South Wales-based Metcash to expand its fresh food offerings to a wider market. The grocery wholesaler’s brand Fresh Pantry will introduce its Australian and New Zealand products to Chinese shoppers on the e-commerce platform.

Mocha in Myanmar Starbucks is heading to Yangoon following the Myanmar Investment Commission’s endorsement. The American coffee franchise is set to invest USD 6 million and open 20 outlets across the country within the next year.

Compiled by Chinwe Agbeze

Living under poverty line

How Nigerians are struggling to survive

If you want to contact the writer of this story call: +234(0) 803 889 1567, +234(0) 8155184838 chinwe.agbeze@businessdayonline.com

BusinessDay readers lift petty trader with N80,000

R

ebecca Reuben, a petty trader in Lagos, has received N80, 000 donations from two BusinessDay readers to invest in her business.

The mother of seven was featured in this section of Thursday, May 17, 2018, where she said she needed assistance to foot her bills. ‘‘I am finding it difficult to pay my children’s school fees. Sometimes I get assistance from customers, but that is not enough because my children spend more time at home than in school,’’ she said. ‘‘My monthly rent was N5, 000 and I still owed some months’ rent when my landlord who was a bit understanding died. Now

his children have increased the rent to N6, 000 and asked me to either pay a year rent or move out. I have been pleading with them but they have threatened to throw me out if I don’t pay.’’

The petty trader who deals in roast yam and plantain told BusinessDay that life has been tough for her since her husband lost his job due to sickness. ‘‘I was making little profit but since the prices of food items have been going up, it has been difficult for me to cope. Some days I just sit at home because I don’t have money to go to the market,’’ she said. ‘‘This is the only business sustaining my entire family.

To eat is a big problem for us and my husband who is

L-R: Rebecca Reuben, the petty trader and Zebulon Agomuo, editor, BDSUNDAY; during a cheque presentation at BusinessDay corporate headquarters in Lagos recently.

supposed to assist me has been sick,’’ Reuben said in an earlier interview.

The petty trader received N50,000 and N30,000 from two anonymous readers to invest in her business.

Presenting the cheque to the beneficiary on Friday, Zebulon Agomuo, editor, BDSUNDAY, advised Reuben to put the money to good use. ‘‘Ensure you invest this money into your business and resist the temptation to use the money for anything other than your business,’’ Agomuo advised.

The overjoyed petty trader who was just discharged from the hospital thanked her donors for their support.

In her words, ‘‘I pray for those that blessed a poor

Analysts: Chinwe Agbeze, Stephen Onyekwelu, David Ibemere, Graphics: Fifen Famous

and struggling woman like me with this huge money.

May God bless them, their entire generation and grant them their heart desires. ‘‘I was admitted in the hospital for two weeks because my blood pressure was very high. When I was discharged, I did not have any money on me because I spent all I had on hospital bills. This money will go a long way in helping my business.’’

On what she will do with the money, she says, ‘‘I will pay part of my rent and put the remaining money into my business. Once the business is growing, I will not have problem feeding my family, paying my rent or even paying for my children’s school fees. ’’

24

BUSINESS DAY

Harvard Business Review

Thursday 24 May 2018

Global Business Perspectives CONNEC TING

THE

WORLD

ONE

BUSINESS

AT

A

TIME

Keeping pressure on Iran JAMSHEED CHOKSY

B

LOOMINGTON, Indiana — Presdent Donald Trump put pressure on Tehran, Iran, when he ended waivers that were lifted by the Obama administration as part of the Joint Comprehensive Plan of Action nuclear deal, or JCPOA. Characterizing Iran’s government as a “regime of great terror,” Trump announced the U.S. is withdrawing from the deal, reinstating “powerful sanctions,” and will punish other countries that assist Iran. Yet Trump also stated he is ready to make another deal with Iran.

The Trump administration’s position is a tough negotiating tactic, one intended to push Iran into supplementing rather than abrogating JCPOA restraints.

Re-imposing sanctions, as Trump has decided to do, may not deter a regime that survived years of economic restrictions. Military strikes would provide only shortterm fixes, in addition to eliciting Iranian counteractions.

Essentially, if not handled deftly, Washington’s restoration of sanctions could end up freeing Iran to resume nuclear weaponization and continue other hostile activities, adding instability to the Middle East and the world. This is also the argument of the European allies and of Russia and China who helped negotiate the JCPOA. Foreign Minister Mohammad Javad Zarif repeatedly intones that Iran is not willing to renegotiate the JCPOA. Behrooz Kamalvandi, spokesman for Iran’s Atomic Energy Organiza-

President Donald Trump announces that he is withdrawing the United States from the Iran nuclear deal from the Diplomatic Room of the White House in Washington, May 8, 2018. Government and private-sector cybersecurity experts in the United States and Israel worry that Trump’s decision will lead to a surge in aggressive cyberattacks from Iran. (CREDIT: Doug Mills/The New York Times)

tion, even claimed on March 5 that Tehran could resume enriching uranium to 20% in less than two days. But Iran’s development plans require continued access to foreign technologies and a substantial increase in trade with the world. Rising oil prices make Iranian reserves even more necessary to ensure energy security and price stability.

While competitors like Saudi Arabia are not be pleased to see Iranian oil and gas keep entering the global supply chain, Iran could spend more on imports while rebuilding foreign currency reserves if it regains U.S. sanctions waivers.

Indeed, despite the public bravado, Iran’s government has already been falling in line with U.S. demands. The International Atomic Energy Agency reported on Feb. 22 that Iran continues adhering to its JCPOA commitments.

Iran had rectified all its technical breaches of the nuclear deal. Iran also remains within the Nuclear Non-Prolifer-

ation Treaty (NPT), although it is suspected of having illicitly shared technology with North Korea for the past two decades. U.S. Secretary of State Michael Pompeo recently assessed during confirmation hearings that Iran is unlikely to race toward nuclear weapons deployment even if the JCPOA ends. Iranian Revolutionary Guard Corps Commander Major Gen. Mohammad Ali Jafari stated on Nov. 1 that Supreme Leader Ayatollah Ali Khamenei’s policies limit the range of Iran’s missiles to 2,000 kilometers.

Aware of Trump’s stance, Britain, France and Germany have become diplomatically active toward curtailing Iran’s ballistic missiles and Middle East interventions.

EU high representative for foreign affairs and security policy Federica Mogherini stressed that talks were underway with Iranian officials to find solutions. French President Emmanuel Macron and Iranian President

Hassan Rouhani agreed in a phone conversation to work together to preserve the deal.

Israeli Prime Minister Benjamin Netanyahu had little new to add when alleging that Iran continues cheating.

Britain’s Foreign Secretary Boris Johnson emphasized in a tweet that Netanyahu’s presentation “shows why we need to keep deal and build on it to take account of U.S. & allies’ concerns.” China’s foreign ministry quickly reiterated support for pursuing diplomatic solutions.

In tandem, the U.S. Department of State has tried to generate international consensus to enhance the original deal. The department’s policy planning Director Brian Hook presents the goal as closing existing loopholes and adding new restrictions.

He stresses, “Over the last few months we have been working pretty diligently with the British, the French and the Germans on achieving a supplemental agreement that the president has requested.” U.S. and EU administrations and negotiators are on the correct path.

Now free from periodic deadlines for reviewing the sanctions’ exemptions, the Trump administration can expend the time needed to work with allies and even competitors to craft comprehensive, binding, long-term agreements that fix major flaws of the JCPOA such as limited verification and lack of access to suspected sites.

Supplements are standard fare in arms control and fit well within international governance. Therefore Iran could enter into those additional agreements without

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

seeming to yield to pressure to amend the JCPOA itself.

Truth, lies and trust are of limited value in disarmament. Verification is the key to success and must be bolstered to ensure full compliance. Iran needs to open all its past and current nuclear and weapons development sites, including military locations, to international inspections. Even if Iran will not agree to a permanent cessation of nuclear capability, the horizon for reaching breakout capability can be pushed back another 25 to 75 years.

Iran’s political expansionism across the Middle East, its striving for regional hegemony and its support of other despotic regimes are more difficult to address, especially as Russia is on its side. Yet here, too, compartmentalizing the particular problem for negotiating purposes is likely to produce success. After all, the end game in this matter is to stop Iran from threatening Israel and Saudi Arabia.

Trump’s ultimate goal “to ensure that Iran never, and I mean never, acquires a nuclear weapon” is laudable. His administration should focus on achieving the results he seeks through concerted multilateral diplomacy rather than haphazard unilateral threats.

(Jamsheed Choksy is distinguished professor of Iranian studies at Indiana University. Carol Choksy is a senior lecturer of strategic intelligence at Indiana University.)

Innovation

Apps

Fin-Tech

Start-up

Gadgets

Ecommerce

IOTs

Broadband Infrastructure

Bank IT Security

BUSINESS DAY

Thursday 24 May 2018

25

How poor policy framework undermines investment in Nigeria’s $20b drone market FRANK ELEANYA

A

round April 2 0 1 7 , To y i n Dosunmu, 46, decided to get a drone to capture special moments of his teenage daughter who is into professional athletics.

He sent money to his sister living in the United States to help him get a good drone.

A week later, the sister informed him that the drone he ordered was on the way to Nigeria via the Post Office and will take maximum two weeks to get to him.

More than one year after, Dosunmu is still shuttling between Nigerian customs and the office of the National Security Adviser (ONSA) to get his drone.

He is not alone in this ordeal as there are hundreds of Nigerians who are facing similar challenges as a result of lack of clarity surrounding policy framework for drones in the country. According to sources who spoke to BusinessDay, over 90 percent of drones flying across Nigeria have no licence to fly.

Interestingly, the first ever drone certificate, an RPAS/Drones Operator Certificate, in Nigeria was issued to Oando Plc in June 2017. Since then there has not been any report of certificates issued to anyone.

A drone, in a technological context, refers to an unmanned aircraft. They are also known as unmanned aerial vehicles (UAVs) or unmanned aircraft systems (UASes). In Nigeria, it is categorised under Remotely Piloted Aircraft Systems (RPAS). The Nigerian drone market is estimated at $20 billion in 2018 and could reach $54 billion by 2025 according to Droneii.com.

In many countries around the world, not everyone requires a licence to fly a drone legally. For instance, one does not need a licence when flying a consumer drone for recreational

purposes, as long as the weight of the drone is less than 20kg and regulations are followed. Most countries prohibit flying a drone 150 metres of a congested area and 50 metres of a person, vessel, vehicle or structure not under the control of the pilot.

These countries have learnt from experience to separate policies for civilian drones which are smaller from military drones that could carry larger and heavier objects like guns.

Nigeria did not used to have a drone regulation until July 2017 when the Nigerian Civil Aviation Author-

ity (NCAA) issued a statement prohibiting the launch of drones in the Nigerian airspace without a permit from NCAA and the office of National Security Adviser (ONSA). The certification guidelines are contained in the Nigerian Civil Aviation Regulations (Nig.CARs 2015 Part 8.8.1.33) and Implementing Standards (Nig. CARs 2015 Part IS.8.8.1.33).

To qualify for the issuance of certificates, applicants are expected to undergo five phases including pre-application, formal application, document evaluation, demonstration, and inspection and certification

phases.

An application for grant of a permit for aerial aviation services (PAAS) must be made in writing to the director general of the NCAA. The application must also be signed by a person duly authorised by the applicant and submitted on or before a date no less than six months before the expected date of use of the PAAS. Apart from the long time applicants have to wait to get approval – if they ever get it, the NCAA guideline is not clear about where drones imported into the country fall under.

Dosunmu told BusinessDay that his drone was categorised as ‘Prohibited’ by Nigerian Customs officials, hence they seized it and will not return it. He had to insist to see the list only to discover that there was no drone listed on it. When he pointed out the omission, the officials asked him to return the next day. The next day, they informed him the drone package has been delivered to ONSA for processing. Three months later an official at ONSA informed him that the drone has been taken to the “Warehouse” which has a reputation of never releasing anything that goes into it.

The cost of an end-user certificate application is not clear as well; hence it is

a ‘black hole’. Sources told BusinessDay that it could go as high as N800,000 depending on how many officials an applicant have to “pass through” to be smell success.

Many Nigerians have resorted to smuggling drones into the country using their hand luggage. Several sources revealed that once they get to the immigration and customs desk they bribe the officials to let them go.

“I have a friend who runs a drone company in Nigeria and does not have a licence from NCAA,” one source told BusinessDay. “Any time he imports his drones, he already has a Custom official whom he pays to ensure his bag is not seized.”

According to the World Bank, drones have the potential to encourage efficiency and cost reduction in areas like land administration, risk assessment, forestry management, urban planning, coastal zone management, infrastructure monitoring, post-disaster damage assessment.

Future of uses of drone includes delivery of medical supplies, search and rescue, firefighting, radiological, atmospheric, and environmental sensing, agriculture and internet connectivity in rural areas as well as humanitarian operations.

Jean-Francois Baril, Ginko Ventures managing director/ founder, who is also a HMD Board member, said the company is “proud to contribute to the next phase of Nokia phones and the successful raising of this investment

round.

“Personally, as someone who has long been associated with the Nokia brand, this journey is very exciting. From its roots in Finland, HMD Global has chosen an agile strategy that leverages global relationships and collaborations to achieve its phenomenal growth,” said Baril.

Since MWC 2017, the Finnish start-up has introduced 16 new devices and global partnerships with industry heavy weights such as Google and ZEISS, in addition to its long term strategic relationship with Nokia and FIH. At MWC 2018, HMD Global announced that it will be the lead global partner for Google’s flagship program for Android; Android One, committing a complete portfolio of Nokia smartphones to the Android One family.

HMD Global raises $100mn for expansion CALEB OJEWALE

H

MD Global, the Finland-based company which acquired rights to the Nokia brand name, has announced the raising of an additional $100 million from multiple investors to scale business operations and fund the company’s growth in its second year.

The company in a statement made available to TechTalk, says this round of investment has been led by Geneva based, Ginko Ventures via Alpha Ginko Ltd. with participation from DMJ Asia Investment Opportunity Limited and Wonderful Stars Pte. Ltd., a subsidiary of FIH Mobile Ltd. With the latest round of funding, HMD Global’s current market valuation exceeds USD 1 billion, giving it a uni-

corn status. HMD Global will be making strategic investments in scaling its fast-growing business operations. In 2018, the company plans to aggressively expand its portfolio of Nokia smartphones and double down on expanding channel reach in strategic markets while continuing to deliver innovation where it matters most to consumers.

Florian Seiche, CEO, HMD Global, said, “We are thrilled to have these investors join us in our journey to script the next chapter of Nokia phones. It is our ambition to deliver great smartphones that delight our fans while staying true to our Finnish roots and the hallmarks that the Nokia brand has always been known for.

We aim to be among the top smartphone players globally and our success to date gives us the confidence to further

continue on a growth path in 2018 and beyond.”

Set up on December 1, 2016, the company says in its first year, it shipped more than 70 million Nokia branded phones, scaled sales operations in over 80 countries

with phone activations coming from 170 countries. In financial year 2017, HMD Global also says it posted a total revenue of EUR 1.8 billion (USD 2.13 billion) along with an operational loss of EUR 65 million (USD 77 million).

Team: Frank Eleanya, frank.eleanya@businessdayonline.com; Caleb Ojewale, caleb.ojewale@businessdayonline.com

26

BUSINESS DAY

Thursday 24 May 2018

C002D5556

How inflight entertainment is changing travel narrative globally Stories by IFEOMA OKEKE

A

ir travel is fast changing from just going from place to place by any flying object, such as airplanes, helicopters, balloons, or anything that can fly but is evolving to become a means of relaxing and having as much fun as one could ever imagine.

Inflight services have also evolved from just serving conventional dishes to continental dishes, providing latest movies and internet access for passengers to run their offices on-board.

New release blockbusters are served up easier than in-flight meals, and airlines may be tripping over each other to try the latest headline-making gadgets, but it’s taken nearly a century for in-flight entertainment to become the hot topic and realm for rapid innovation it is now.

The first in-flight film, a short titled “Howdy Chicago,” was screened in 1921 on an Aeromarine Airways flight to the Windy City.

Such special features were rare indeed, and the following decades saw passengers’ mostly utilising time spent in the air to improve their card playing or catch up on correspondence, as airlines often provided stationery sets and decks of cards.

Regularly scheduled in-flight movies began in 1961, shown via projector and often with poor resolution and audio, the latter transmitted from tiny speakers in the armrests up hollow headphone tubes that made it look as though passengers were wearing stethoscopes. It was hardly elegant, and it wouldn’t be until 1988 that miniscule screens -- at 2.7 inches wide -- were installed.

So how will passengers be entertained on flights in the coming decade?

Emerging trends like virtual reality and digital companion apps suggest that what lies ahead is less

one-movie-for-all and more allmovies-for-one. Passengers can watch full seasons of shows like The Walking Dead on Virgin America’s Red. US-based airlines take two steps back with the loss of Virgin America in its sale to Alaska Airlines. The San Francisco-based carrier, which commenced operations in 2007, sought to shake up the industry with innovation.

Taking inspiration from fellow Virgin Group Company, Virgin Atlantic, which in 1991 became the first airline to offer in-seat video for all classes, Virgin America put a heavy focus on developing a fresh system capable of wowing even the most tech-savvy travellers.

The result was “Red,” an Android-based, open-source platform with seat-to-seat chat and multiplayer gaming, the ability to purchase and send a drink or snack to yourself or another seat (and keep an open tab), and the first ever seatback in-flight digital shopping experience.

If seats were available in First Class, passengers in the back could even tap and pay for an upgrade

through the Red system.

Although the end of Virgin America also means the discontinuation of Red, it does leave a legacy.

The airline’s enthusiasm for inflight entertainment and consistent promotion of it as central to the passenger experience paved the way for travellers to demand more transparency of amenities. What, after all, was the difference from one airline, one aircraft type, or one flight route to another?

Enter Routehappy, a content platform that compares flights on comfort factors like seating and amenities. If airlines won’t be forthcoming about what exactly passengers can expect on the specific flights, Routehappy is, well, happy, to fill in the blanks.

Painstakingly researched data on airplane layout and amenities is Routehappy’s bread and butter, and is integrated into the search results of Online Travel Agencies (OTAs) like Expedia, in a move to help customers make more informed travel booking decisions.

Jason Rabinowitz, director of Airline Research at Routehappy,

told CNN that the airline industry is in the midst of a streaming boom, where “airlines all over the world are now choosing to install what is essentially entertainment in a box.”

A portable server, loaded with thousands of hours of updated content, is simply brought on-board, and passengers can access the content using their own devices, without the need for internet connectivity.

“Streaming entertainment systems are now small battery powered boxes the size of a brick that can provide a signal to the entire aircraft,” Rabinowitz said.

“An airline can install streaming entertainment across its entire fleet literally overnight, a process that used to take months or more.”

It’s also a cost-effective entertainment solution, and leisure-oriented carriers like Thomas Cook Airlines, Air Europa, and Brazil’s Azul have embraced it.

Streaming boxes may not even be long for this world, thanks to the introduction of cloud-based content. In 2016, Emirates Airline introduced the industry’s first “digital amenity kit.”

Offered complimentary to pas-

sengers, it’s a typical wash bag packed with a few necessities, but with the atypical bonus of a partnership with Blippar, a “visual discovery” mobile app, which allows passengers on long-haul routes to use their phones and the Blippar app to unlock activities, music playlists, and a game titled “Emirates Destination Dash.”

Singapore Airlines’ app allows passenger to view film and TV listings for upccoming flights. More comfort, more choice, and more control are the rallying cries for modern air travellers, and Singapore Airlines, in partnership with Panasonic Avionics, is moving toward a future that addresses all three.

The newest entertainment solution from the Skytrax five-star airline is a combination of Panasonic’s next-generation eX3 system and a companion app, a two-screen system that offers the passenger a level of entertainment customization previously unavailable.

With the Singapore Airlines app, passengers on the airline’s Airbus A350 and Boeing 777-300ER aircraft may view listings of films and TV shows available on their upcoming flights, watch trailers, and read reviews and synopses while building a personal playlist.

Once on-board, the app is paired with the Panasonic system, the passenger’s playlist is accessible, and their personal device functions as a second screen and wireless remote for ultimate entertainment flexibility.

Follow along with the moving map, read reviews of movies, or play games on your tablet while binge-watching a TV series -- one you added to your playlist perhaps a month ago -- on the seat-back screen.

“With the proliferation of personal mobile devices and the arrival of our new Airbus A350 fleet, this latest innovation will help enhance the in-flight entertainment experience for our customers,” Tan Pee Teck, Singapore Airlines Senior Vice President Product and Services, said.

Turkish Airlines records 22% Middle East passenger rise in Q1 …sheds light on the most recent aviation trends UAE

T

urkish Airlines has announced during the Arabian Travel Market 2018 in Dubai, UAE, that the number of passengers who travelled from the Middle East increased by 22% in Q1 2018 in comparison to Q1 2017.

During the first quarter, increase in demand and total number of passengers was 22% higher than the same period last year. Total number of passengers from the Middle East region was 5.6 million last year.

Furthermore, during the first quarter the total Load Factor improved by 6.5 points recording the highest load factor in Turkish

Airlines history for the first quarter, while international Load Factor increased by 7 points. Airline seat capacity grew by 11.4%.

Muhammed Fatih Durmaz, Turkish Airlines Vice President Sales, Middle East & Cyprus, commenting on the results, said: “2017 was a successful year for Turkish Airlines in terms of our global fleet and network expansion and we have high expectations of 2018 as we see the Q1 results and continue to build momentum for our excellent in-flight and customer service.

“Our network expansion has also been a pivotal step in supporting the increasing customer

demand in all our markets, including the UAE and the Middle East. Through new and innovative features, as well as having a growing fleet, our aim is to provide customers with the best possible options, both in terms of new destinations and innovative products and services.”

Turkish Airlines has also unveiled the results of a recent study conducted by Nielsen research on “2017 Aviation Trends in the UAE” during Arabian Travel Market, which sheds the light on where the industry is going in 2018. Internet and mobile phone connectivity, fewer queues at check-in and even

on-board gyms are just some of the items on the wish list of the UAE’s airline travellers.

“It is very interesting to see how the travel and airlines industries are shifting with the transformation into the digital era, and how travellers are now relying more than any time before on automated services and convenience provided by technology.

“At Turkish Airlines, we continue to work closely with our different partners to provide our customers with the best travel experience and hospitality that make their journeys memorable,” said Durmaz.

As Turkish Airlines strives to un-

derstand and consider the demands of its passengers, the airline’s last results are a proof of its success. In addition to providing convenient travel experiences to passengers, the top five image attributes, that succeeded to reach almost to the top level, given to Turkish Airlines increased significantly compared to previous period. According to the UAE travellers, its “safe airline” perception ranked equal first with its good reputation, while good service on board, value for money, and flying to many destinations are the primary dynamics that made the airline an optimum preference for them.

BUSINESS DAY

Thursday 24 May 2018

27

GARDEN CITY BUSINESS DIGEST IGR: Wike shows red eye, tells revenue boss; Deliver N10bn per month or be fired IGNATIUS CHUKWU

A

s Lagos dusts Rivers State on matters of revenue, hitting N34Bn per month and eyeing N50Bn ahead, Governor Nyesom Wike of Rivers State has jarred his teeth on internally generated revenue (IGR) matters, saying he has given some time to the boss of the state revenue board to hit N10m soon or be fired.

Wike spoke at an interactive session with over 150 journalists in Port Harcourt where he admitted that f Lagos State is high because the oil companies that ought to reside in Port Harcourt are rather staying put in Lagos. The impact seems huge because the first month the NLNG relocated to Port Harcourt, the state’s IGR was said to have moved up by N500m in one month.

Wike said even a major oil company that had relocated to Port Harcourt many years ago had recently wanted to relocate until he cried out and Niger Delta people shouted.

So, they stayed back. Speaking further, he said Lagos also collects some taxes that Rivers State dared not collect due to socio-cultural differences.

“Lagos collects property tax.

In Lagos, taxes abound, but here traders refuse to pay but they cause refuse everywhere and every minute. I have told the executive chairman of the Rivers State Board of Internal Revenue Service to deliver N10Bn every month, else, I fire him. When he achieves that, we will take it higher. He has asked for time and we have given him some time. It’s his business to meet the target. How he does

R-L: Governor Wike, Ben Nwabueze, Hassan Kukah in Port Harcourt

L-R: Governor Wike, his wife Suzzette, deputy governor Ipalibo Harry Banigo, former Governor Peter Odili at aniversary lecture to mark 3rd year.

it is his headache.”

Wike admitted that Rivers was a tough tax entity where people want everything free but said he was coming out totally to enforce tax compliance without looking at anybody’s face. He said the attitude had affected the determination of the state government to press on with the $308m AFDB loan for the Port Harcourt integrated Water Scheme. “The loan needs to be repaid but the people of the state want everything free. If we take the loan to deliver good water, will the people pay? They would want it free.” The loan had got to drawdown stage under the past administration but political crisis affected the sign off by the minister of finance. Now, it is still hanging ad the new governor says recovery fears are the new constraint.

SIAT: The governor said: “The Belgian company that acquired the Rivers State Oil Palm Plantation at Ubima (RISONPALM) has been given the state’s Rubber Plantation and another agro-based venture to manage too. A Korean company is to start a large scale rice farm in Emuohua. They

court battle.

The governor expressed lamentations over incessant burning of crude-laden vessels that ooze soot for weeks around the state. He said the security agencies that carry out the operations were not under his control but that he met with them and they said they were looking into it but that they would continue with the burning spree. He said he had no power to shut down the FG Refinery that also produces soot because it would be termed economic sabotage.

“The FG is killing us state by stage. I even have soot in my room. There is no PDP air or APC air. Nobody escapes soot’’.

Sanitation: The governor said: “We spend N500m monthly to clear waste but we do not feel the impact. The nature of Port Harcourt is; as you remove, they dump fresh ones immediately. Now, a group from Spain is coming to try and do waste to wealth project in the state. Refuse is one of my biggest headaches but we must tackle it. I must get traders off the roads first. We are begging them to leave. Refuse problem

are at land acquisition level and sorting out security issues. In the next six months, they would go into rice planting proper. Rivers State will soon join the rice power club producing some of the biggest volumes.”

Environment issues; People from other cities come and sell pure water and litter everywhere. They go back at the end of the day. They pay no taxes but ruin the beauty of the state.

We have procured 20,000 waste bins to be distributed around the state capital. We will ask people to pay some token to keep the system working so that people will come and pick up the refuse generated. Port Harcourt is a high waste generating city but people do not want to pay anything to help manage waste. Women who sell vegetables and roast corn push all the dirt into gutters. It’s too bad.”

Suit for Soot: FG soon to be sued.

On soot, the governor hinted about an impending suit against the federal government.

He named a famed environment activist who he said knows much about the environment as the one that would lead the

is a national malaise, even in Victoria Island. We are starting to carry out environmental sanitation exercises from the Old GRA to New GRA and from there to other places. We want people not to build certain things in residential areas.”

Youth empowerment: “We do projects in many places and these generate jobs.

One location alone has 400 youths working there. There are many others locations with Julius Berger and Chinese Construction Company.

“We are setting aside N200m every month making N2.4bn every year to youth businesses to enable them scale up their businesses. They have to produce sureties but no collateral.

“Still on youths, the Real Madrid Academy foundation stone would be laid on May 28, 2018. It will train youngsters into future football stars and train coaches. It would be one of the best in the world. The age will start from seven years. They will also attend school. Its real ‘catch them young’”.

Women empowerment: “We have two components; one is N500m put down to help

women do businesses. It is no loan. They have to scale up their businesses and be employers.

They have been warned not to use it to do traditional maturity ceremony called bibite or burial ceremonies or lend it to their husbands to do other things.

It’s for business.

“Then, we have rolled out a policy of inclusiveness. Now, in the PDP, we have approved inclusion of 150 female councilors and 23 local council deputy chairmen. The idea is to grow and groom them through the leadership structure so that in future, many women would be strong in leadership capacities.

It is a capacity building system.

It’s not all about giving them capital to do business.”

De-marketing the state: Why we host many events: The governor explained why Rivers State was always hosting mega events, saying it was to prove detractors wrong.

He accused the media of also being part of driving away investors by their negative stories.

He said; “Over the years, investors have been scared of Rivers State because of the negative stories peddled and written about it. Always: ‘Rivers of Blood’. We are just wooing them back with positive narrative. We deliberate host these events just to prove a point; that Rivers State or Port Harcourt is as safe as most other places in Nigeria.”

Some castigate the awards we get saying they were bought.

“Its all part of de-marketing Rivers State. The detractors say I bought the awards; Sun, Leadership, Silver Bird, foreign awards, Sports, BusinessDay, etc, yet they say I bought them.

How can somebody buy all these awards? If it is easy, let them go and buy.”

Let help come fast; N250,000 abductors take over PH

Port Harcourt by Boat With IGNATIUS CHUKWU

R

ansom fee has come crashing down in Rivers State especially Port Harcourt.

Almost everybody is now a kidnapper. It is getting to the level that Aba and environs got to some years back dur-

ing the Osisika Nkwu era when Ogbonna Onovo was the first Igbo IG of Police.

That time, everybody in Aba area (up to the Evil Forest of Obingwa) was overrun by kidnappers; ransom fees crashed down to pennies.

Also in the early years of Chibuike Amaechi when militancy and kidnapping were the order of the day, an akra (bean cake) seller in Choba town was released with as low as N5,000.

Now, as high profile kidnapping is getting very difficult, everybody is now qualified. Why not? At launching, the fundraisers start calling those with millions and reduce to those with mere

N500. Kidnappers too have learnt that when antelopes vanish in the forest, learn to accept rabbit as game.

Now, everyday, group members on various whatsapp platforms post details of latest abductions and warn their members against hanging around at one part of the garden city or not. It is either Eliozu, Ada George Street or Wimpey area; It is Elelenwo or Woji town. Woji in particular has been in the news for various kinds of abductions. The latest is that by as early as 8.30pm, young men come out in cars and catch anybody they could.

The other day, a group told its members how some

two girls were ordered at gun point to enter into a car.

They refused. Yes, they got slapped, ruffled and threatened with gunshots but they preferred to die right there. The mass abductors left them and pounced on a man with his infant son who came out to buy stuff. They ordered the man to move into their own car, and they took him away. A lady who was picked up at that same time and place the previous day said she was released with N250,000.

The kidnappers seem to have run out of ideas and out of high profile targets.

Now, because the boys must chop, they barge unto the

streets of Port Harcourt and gather people and go demand for ransom.

This is why this column has continued to support the initiative of the Wike administration to float a vigilante system called the Rivers State Neighbourhood Watch which has come under fierce fire by the opposition. The point raised by the antagonists of the initiative who say Gov Wike could use them to hijack the next elections or may use them to run out his opponents (APC) may have a point, but the danger at hand is far more urgent and deadly than the danger they perceive to come in the far future. The FG and their in-

stitutions can think up how to block the Wike security outfit if they truly become a threat but nobody, not even the FG and their organs, has anything further to offer in the present danger of mass abduction of citizens in the Garden City. Most of the rural communities have since fallen to the ravaging powers of the kidnappers who have even shut down some villages along Bayelsa route.

Let the Neighbourhood Watch please start work and retake the state from mass abductors, else, kidnapping may become as rampant as pick-pocketing. It’s getting out of hand; its getting worse by the day.

28

BUSINESS DAY

Thursday 24 May 2018

INTERVIEW

‘Our key strategy is leveraging on local raw materials’ SONA Group of Industries is a diversified conglomerate. Over the past 30 years, Sona Group has made substantial investments and deployed great managerial prowess in diverse sectors to lift the standards of products and living by developing and providing world-class products at locally-sensitive prices while effectively providing platforms for technology transfer to Nigerians and engaging various sections of Nigeria’s local communities through our backward integration programmes to empower local farmers, skilled workers and suppliers.

In an interview with Micheal Ani, Arjan Mirchandani, the Chairman of SONA Group speaks on how the company is leveraging on local production to grow its business and provide quality products to its customers.

Tell us about SONA Group and your key focus ONA Group is a great group in my opinion, we produce so many items but we concentrate on local materials where we can produce from raw materials locally so we had to stop importing. This is because importation is always faced with the problem of foreign exchange and not only do we produce locally, we also export.

So I think there is a great potential here in Nigeria that is why we have brought in quality products into the market.

We believe largely that we can survive within our own products rather than importation. Luckily, the Nigerian government and its policies is helping in encouraging everyone which is evident in the way industries are growing even though we see some difficulties but these difficulties are issues that can really be overcome.

and raw materials were largely imported as there were no local industries which made people believe that imported products are better than local ones but now, we can see that imported products are not better than those produced locally so you can see that the perception of the Nigerian market is changing.

In terms of what we have achieved, we have grown by 100 percent and our aim is staying and buying locally. Every year, we are expanding in capacity which in turn is causing an increase in our turnover and we expect this to be sustainable, given positive outlook for the Nigerian economy.

S

As a key player in the Fast Moving Consumer Goods Space (FMCG), what is SONA group doing differently to stay afloat in the light of the recent economic reality.

We always look for new items and innovation because you always need to catch up with your own initiative. We look out for items that are only based on local raw materials and i think that is the only solution for self-survival. Nigeria has always been an import country and people have gotten used to it which is really been controlled by government agencies like National Agency for Food And Drug Administration And Control (NAFDAC), Standards Organisation of Nigeria (SON) etc.

If you look at our packaging, they are 100 percent local, even the label are done locally so i do not see anything else we need because we have everything we want here in Nigeria it is only just a matter of innovation. Hence, anything we don’t see locally, it does not make sense to us.

Looking at the Nigerian consumable market, how do you access the market?

The Nigerian market is a great market in terms of both capital and size especially given its population at 190million. Also, Nigeria has neighbours which

What should the market be expecting from you this year?

We are introducing new products in the market in addition to this, we are bringing in the latest technology for the production of these products and all will be done locally.

Arjan Mirchandani

rely on it because it is a bigger country. So what manufacturing can be here is on a large scale industry, which will be cheaper.

Smaller countries of the world cannot have this kind of industries and remember that if you have a larger industry, your cost will come down as you will be able to get products cheaper. For example, the prices of our products are half the price of imported ones and they are all approved by regulated bodies.

Is your company situated in Lagos?

No, our company is in Ota because we have a large structure where we produce our own electricity and also because of its nearness to raw materials for production How have you been able to tap into the Lagos market since Lagos is generally known to be the hub of Nigeria?

That is actually not true, Lagos is not the only market as there are still other markets in other region like in the north, in the east and in the south. We can also decide to look at Economic Community of West African States (ECOWAS) market which also has quite a larger number of people.

In 2010, SONA group sold six of its brewing lines to Nigerian breweries and it was said that the reason for that sale was as a result of stiff competition, what are you doing presently in this regard?

The reason for the sale was not because of stiff competition. I must tell you truly that we started the brewery in 1994 from that time, it was running until 2010. We had friends in Heineken and they have lots of good locations and people do not want to pay for transport cost because they feel it was very expensive. For instance, when you

In terms of what we have achieved, we have grown by 100 percent and our aim is staying and buying locally

produce in areas like Benue state, Akwa Ibom these people usually feel it is their own beer hence you need to pay for people if you want them to feel the product is theirs.

So when we realized we had a problem of location and transport cost, we divested and focused on other aspect which is where we are now and we have no regret about that.

In terms of your profit margin, how do you intend to breakeven since there are so many other companies into consumables like yourself?

When you have economics of scale, your cost will come down and you will be able to compete.

However, you must make sure your products are of reliable quality and if you don’t have a good quality for your product, it will be difficult for you to sell. Also, packaging plays an active role in driving the sales of your product else, consumers will feel imported products are better.

Twenty-four years down the line, what can you say are your major achievements so far?

Since we started business in the Nigerian market in 1994, the perception of the Nigerian market has changed totally. Then, products

Engaging in all these projects requires lots of capital, how do you intend raising such capital?

We are not remitting any dividend to shareholders, we are also not going to be selling any of our asset.

We are just going to plough back profit into the system.

Where do you see SONA in the next five years?

SONA in my opinion will be a great company. Overtime our growth has been good compared with similar companies and this is simply because we are in the consumer goods space and you can see growth potential in the consumer goods market. The population is also growing which will impact hugely on our volume.

We on our path will continue to provide the cheapest and the best quality product locally.

Remember also that the world is looking at only few economy and they are Nigeria, India, and Brazil not even China or the developed countries of the world.

Consumption is also increasing in Nigeria alongside a change in the traditional taste for foreign made goods which is gradually shifting to local produce. With all these factors put in place, we believe SONA group will continue breaking new ground.

C002D5556

Thursday 24 May 2018

BUSINESS DAY

29

LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

INSIDE INTERVIEW

12th annual business law conference is about African collaboration and integration - OKEY EGBUCHU

30 Lagos state small claims Court: A Milestone in dispute resolution

31 Young Lawyers Forum: University Don extols Paul Usoro, SAN as a good leader

32 2019 Elections: CJN Warns judges against computer generated evidence

32

Trading suspensions in Nigeria: To save or to kill? bourse to give effect to a trading suspension as it will stop dealers from trading the securities.

Trading suspensions differ from trading halts. Trading halts are, in some cases, temporary measures used by the bourse to halt sharp fluctuations in the price of listed securities.

Trading suspensions on the other hand can be effected for a number of reasons, depending on the authority requesting the trading suspension. Regulator-imposed trading suspensions are often the most lethal as they are widely regarded as measures used by the regulator to communicate the regulator’s current vote of no

IFUREUWEM UDOFA AND BIDEMI OLUMIDE

O

n April 26, 2018, the Nigerian Securities and Exchange Commission (SEC) approved the Nigerian Stock Exchange (NSE) drafted Rules on Suspension of Trading in Listed Securities (Trading Suspension Rules).

About 180 days earlier, SEC had instructed the NSE to suspend trading in the listed securities of a Nigerian oil and gas company (NigerianCo) with the trading suspension commuted to technical suspension after two days. Both the trading and technical suspensions lasted for about 170 days, when, further to another SEC directive, the suspension was lifted on April 11, 2018.

According to SEC the suspension was required to enable it conduct a forensic investigation into the affairs of the NigerianCo in the wake of its preliminary findings on petitions by 2 shareholders of the NigerianCo where they had alleged breaches of Nigerian securities laws, among others. Being dual-listed, trading in NigerianCo’s securities was also suspended in its foreign secondary listed market.

It is relevant that the process for making the Trading Suspension Rules arguably began on November 29, 2016 when the draft form of the Trading Suspension Rules was approved by the Rules and Adjudication Committee of the NSE’s National Council (the Council) for exposure to stakeholders. The draft Trading Suspension Rules was submitted to SEC for approval on June 16, 2017, and approved by SEC 314 days later, on

April 26, 2018. In this brief, we review the concept of trading suspensions, with focus on regulator and bourse imposed trading suspensions, with the example of a developed securities market; we then undertake a brief review of the Trading Suspension Rules; and conclude with our reasoned thoughts.

Trading Suspensions - What they are and not A trading suspension is the suspension of trading activities of identified listed securities. Such trading suspension could be demanded by any of: the regulator of the relevant bourse where the securities are listed; the bourse itself; or the issuer of the securities. Naturally, it takes the

confidence in the affected securities.

Thus, in the in the United States of America (US), its Securities Exchange Commission (US SEC) may impose trading suspensions in the following instances, that is, where: 1. the issuer fails to provide current, accurate and adequate information about itself; for example, where it fails to file its periodic reports; 2. there are doubts about the accuracy of information available on the company’s operational status, financial condition or business transactions; 3. there are evidence of securities fraud, for example, insider trading, market manipulation etc.

According to the US SEC, it will impose trading suspension when it is of the opinion that it is in the interest of the investing public to do so.

In its words “Because a suspension often causes a dramatic decline in the price of the security, the SEC [US] suspends trading only when it believes that the public may be making investment decisions based on a lack of information, or false or misleading information. A suspension may prevent potential investors from being victimized by a fraud”.

The length of trading suspensions differ in jurisdictions. In the US, a trading suspension will last for no more than ten (10) trading days. The decision to suspend trading of any listed securities is based on the outcome of a preliminary investigation on the relevant issuer. US SEC will, prior to the suspension, issue a press release or order detailing the reason for the suspension and thereafter proceed to impose the suspension which will not exceed 10days. It will not, during or after the suspension period, comment publicly on the status of the investigation, which investigation may continue even after the suspension. Its process for trading suspensions accordingly features an ordered process of: (i) preliminary investigation, (ii) trading suspension imposition/order with the certainty of the maximum duration of the trading suspension; and (iii) a decision to continue or not to continue with the investigation after the suspension until it decides to take enforcement action. in Q1 2018, the US SEC imposed not less than 23 trading suspension orders Continues on page 31

Consumer Protection Council gets accolades for draft Patients’ Bill of Rights (PBoR) …Health Minister hails PBoR as ground-breaking legacy document

T

he Minister of Health, Professor Isaac Adewole, has acclaimed the draft Patients’ Bill of Rights (PBoR), initiated and developed under the leadership of the Consumer Protection Council (CPC).

The broad and comprehensive statement of rights of patients, their responsibilities, and obligations of healthcare providers is the largest step quite yet to protect patients and ensure the highest level of ethical conduct by healthcare professionals as well as enhance the quality and standard of care in the healthcare sector.

The Minister’s enthusiasm and support for the initiative which he characterized as impressive, thoughtful and a matter of legacy was apparent and unmistakeable.

The Minister made these assertions when CPC’s Director General, Babatunde Irukera led a team of CPC management and the working team on the PBoR to a working meeting with the Minister and leadership of the Ministry of Health on the document.

Adewole applauded the Council for the initiative and the scope of the

Honourable Minister of Health, Professor Isaac Adewole (middle), in company of the President, Nigerian Medical Association (NMA), Dr. Francis Faduyile (left) exchanges pleasantry with the Director General, Consumer Protection Council (CPC), Babatunde Irukera during the DG’s courtesy visit to the Honourable Minister to ratify the draft Patients’ Bill of Rights in Abuja.

issues covered by the PBoR. He expressed optimism on how transformational it will be to service delivery in the healthcare sector and how it publicizes the standard of care healthcare professionals should be held accountable to.

The Minister and members of his team in particular commended the Council for also identifying the responsibility of patients and their families in the entire care value chain and healthcare ecosystem.

He noted that he had gone

through the document, the Legal Department of the Ministry had vetted it, and now critical senior and relevant directorates of the ministry have contributed to the document.

While thanking the CPC, he expressed his conviction that this effort will modify behaviour on both sides of the coin (patient and provider), and demonstrate to citizens that the Federal Government cares about, and prioritizes their wellbeing and welfare, and is assiduously focused on ensuring citizens are treated with regard and dignity at all times, especially at a vulnerable time like ill-health.

The Minister specifically welcomed the inclusion of detailed rules about the subject of confidentiality, emphasizing that it will promote confidence in the healthcare sector.

The new Nigerian Medical Association President, Dr. Francis Faduyile, and members of his new Executive, who were also on hand, expressed their appreciation for the initiative, and their familiarity with it, as it was part of handing

over briefings from the previous and outgone executive team. He committed to ensuring any additional comments from the NMA is promptly forwarded to the CPC. Irukera, while responding, noted that the PBoR is an example of how the Council can collaborate with professional associations to foster consumer protection, improve internal ethics, and weed out quacks.

He remarked that CPC was proud and grateful about the broad consensus and commitment that culminated in the document with all major professional associations in the healthcare sector, including nurses, pharmacists, radiologists, laboratory technologists, among others, working with the CPC in a working group to ensure the final document captures all the salient issues.

Irukera further noted that CPC is grateful that the Honourable Minister and the ministry will champion and provide leadership for the proliferation of these rights and a better approach to patient care in Nigeria.

30

BUSINESS DAY

C002D5556

Thursday 24 May 2018

INTERVIEW

12th annual business law conference is about African collaboration and integration - OKEY EGBUCHU

T

he business law community seems to be agog with preparations for the annual gathering of business lawyers from across Africa to discuss trade within the continent.

What is the significance of these engagements to the NBA-SBL as an institution?

It’s a convergence of business lawyers and key economic stakeholders from Africa.

The NBA-SBL has always been at the forefront of promoting economic transformation through the law, and this conference is further to that.

This year, the conference has gained enhanced significance as a platform for stakeholders to brainstorm and for the Federal Government to continue its stakeholder consultation on the very current, somewhat controversial, but important topic of Intra- Africa Trade.

Speaking about law & intraAfrica trade, how do you think the law has impacted Africa over the years?

Could it be directly or indirectly responsible for several African Countries being “developing” or “Third world” countries?

Unfortunately, the law has long been overwhelmingly used as an instrument for the subjugation of African people by their leaders. There is a direct link between law and development.

There is no country that I know where law when utilized for the common good does not lead to a higher quality of life.

Law by itself is not enough. It’s the leadership and institutions that implement the law that matter most. We must build institutions in Africa founded on law to work for the common good.

Following the non-assent/delayed assent of Nigeria and a few other countries to the African Continental Free Trade Area (AfCFTA) agreement, what sort of engagement would you expect between assenting and non-assenting countries who would be present at this conference?

The debate is already on between opposing countries and groups about the envisaged risks and benefits of the AfCFTA. The conference will naturally bring them together to further the debate. I expect a healthy debate, if not a strong lobby from the countries and groups that support the AfCFTA to assuage and bring the opposition to accept the AfCFTA. We have structured the conference in such a way that broad

Come June 27th to 29th 2018, business lawyers and stakeholders from economies across the continent will converge at the Transcorp Hilton Abuja for the 12th Annual Business Law Conference to discuss trade barriers and law as a vehicle for Intra-Africa Trade.

In this interview with BusinessDay Law Editor, THEODORA KIO-LAWSON, Okey Egbuchu, Chairman of the conference planning committee of the Nigerian Bar Association Section on Business Law (NBA-SBL) speaks of the African Continental Free Trade Area (AfCFTA) agreement; Nigeria’s position; liberalisation of legal services and capacity building among other things. EXCERPTS… with bilingual skills will be much sought after due to the many languages spoken in Africa.

macro and micro issues of IntraAfrica trade will be discussed which will culminate in a formal debate at the last session- Should Nigeria join the AfCFTA? Statistics show that Intra-Africa trade has been relatively modest at barely 10% of the total trade on the continent as recent as few years ago. However, the United Nation’s Economic Commission for Africa (UNECA) who we understand would be part of the 12th Annual Business Law Conference, did estimate that after full implementation of the agreement in the Year 2022, Intra-Africa trade value could increase by up to 52%. With the current delayed assent to AfCFTA, what perspective do you anticipate UNECA will bring to the conference?

UNECA carried out a study on the benefits of the AfCFTA to African countries. We have offered UNECA a platform to present this study and discuss it with key stakeholders including those opposing the AfCFTA. UNECA will show scientifically, the expected benefits of the AfCFTA and the mitigation of the risks to assuage opposing stakeholders. In the end UNECA will likely be able to show that the benefits far outweigh the risks.

What in your opinion would be the ideal law practice in the time of AfCFTA? What sort of skill should the average lawyer have in an era of continental free trade; and how do you think the business of law would be conducted at

this time?

We can only draw from the experience of others. If we look at the European Union, you will find lawyers who have specialized in EU law. We expect generalists and specialists of African Law to emerge with time.

The specialists will most likely be in competition law, immigration, labour, trade and dispute resolution. It will not take much for experts in intellectual property to ramp up their knowledge.

Freedom to practice in other African jurisdictions will be a right based upon mutual qualification thresholds and driven by freedom of movement and mobility of labour. This will especially favour young lawyers who by their nature are more mobile and adventurous.

More multinational law firms will develop to add to the existing few.

Every commercial lawyer will be served by having a basic knowledge of African law. The lawyer

How far would the NBA-SBL take these engagements with governments, policy makers, regulators, and other stakeholders? And in the long run, how do you see the outcome of this conference impacting trade across Africa?

The NBA-SBL will take a stand on the AfCFTA after due consultations, and as it has always done will work will the Federal Government in particular to see that we implement what is beneficial and mitigate the risks.

The footprints of the SBL can be seen in the changes that led to the continuous improvement in the ease of doing business, and the revision of outdated laws like the CAMA. The SBL continues to collaborate with PEBEC for more of such reforms.

The conference will certainly enhance the knowledge of participants, stoke their curiosity and should lead to better and more inclusive engagement of stakeholders. It seems that IntraAfrica trade has come to stay and we hope the conference will lead to quicker buy-ins.

Other than Intra-Africa trade, are there other interrelated areas or agenda the Section may seek to push at this conference?

The conference is about African collaboration and integration.

The conference will deal with this in many of its constituent parts; viz, ecommerce, transport connectivity, competition, finance, dispute resolution, movement of goods, services and labour, law practice and others.

There will be a debate session with four topics. Two ladies will debate one of them, which is, “Should there be ladies at the Bar”. I am dying to listen to them.

Another set of lawyers will con-

sider whether we should continue to self- regulate.

Who are some of the confirmed speakers and panelists for the 2018 conference?

Nigeria’s Chief Trade Negotiator is a must and will be present. He is Ambassador Chiedu Osakwe.

UNECA are coming with a seasoned and experienced team which will include Ambassador Ishmael Faizel, former South Africa Representative to the WTO Ambassador Ayoola Olukanni, Director General, Nigeria Association of Chambers of Commerce, Industries, Mines and Agriculture Dr. Stephen Karingi, Director, Regional Integration and Trade Division, United Nations Economic Commission for Africa.

Samallie Kiyingi, Director & General Counsel, African ExportImport Bank; Tewolde Gabre Mariam, CEO Ethiopian Airlines, David Ofosu-Dorte, Senior Partner, AB &David, the host firm of the annual Crystal Ball Africa. He will be telling us how law practice will look like under the AfCFTA and he will most likely be making a few predictions. Dr Emilia Onyema of the School of Oriental and African Studies will present the lead paper on establishing the Framework for Resolving Intra- African Commercial Disputes. We are expecting one or two presidents past or present from Africa.

What in your view could be some of the highpoints of 12th annual conference?

The conference will have to take place before we determine the high points. For me, I look forward to the session -Law Practice in the time of the African Continental Free Trade Area: Reimagining African Lawyers.

This is because we will peek into the future of law practice in Africa under the AfCFTA and the preparations that we need to make to benefit therefrom.

PROFILE Okey Egbuchu is a commercial lawyer with extensive experience in corporate law and restructuring, corporate and project finance, construction and infrastructure, and energy law. His experience in these fields covers banking, and other financial institutions, automobile manufacturing, conglomerates, hospitality, insurance, property. Earlier on in his career he practiced mainly as a civil and commercial litigator, and still handles a portfolio of such cases.

Okey Egbuchu is a pioneer in gas pollution litigation in Nigeria.

He is a Member of Council of the Nigerian Bar Association Section on Business Law, past Chairman of the Travel, Tourism and Hospitality Committee of the Section on Business Law of the Nigerian Bar Association; and a regular resource person at the annual conference of the Section on Business Law.

Thursday 24 May 2018

C002D5556

BUSINESS DAY

GREYMATTER Lagos state small claims Court: A Milestone in dispute resolution

O

n Monday, April 23, 2018, the Lagos State Judiciary took a significant step towards further enhancement of the process for settlement of commercial disputes, involving small claims not exceeding Five Million Naira (N5,000,000 Naira) in the State. This was done by the establishment of the Small Claims Court with the objective of providing easy access to an informal, inexpensive and speedy resolution of simple debt recovery disputes in the Magistrates’ Courts. A Small Claims Court is a specialized court or local tribunal created by statute with specific duties and powers. Generally, the court is designed to provide judicial determination of disputes involving small amount of money quickly and cheaply, with or without legal rep-

without much technicality cannot be overemphasized.

This piece evaluates the impact of the establishment and operation of the Small Claims Court on the resolution of commercial disputes in Lagos State. A background is also provided on the global evolution of the Small Claims Court with comparative insights into the practice and procedures applicable in different jurisdictions.

GLOBAL EVOLUTION OF THE SMALL CLAIMS COURT The evolution of the Small Claims Court can be traced to the small county or magistrate’ courts in medieval England, which were popularly referred to as the “Court of Pie-powders”. These small courts were established to judicially resolve disputes among small merchants,

Trading suspensions in Nigeria...

Continued from page 29

on listed securities for infractions majorly based on the failure of the listed securities to meet up with their filing obligations.

The Trading Suspension Rules The Trading Suspension Rules stipulate the procedure for trading suspensions on the NSE. Prior to the Trading Suspension Rules, SEC or NSE-imposed trading suspensions were not a function of defined or ordered set of rules and were limited to the circumstances provided by Rule 15.45 of the Dealing Members Rules (powers of the CEO of the NSE to, in a particular or general circumstance, suspend trading) and Rule 2.6 of the Issuers Rules (suspension of trading in the event of issuance of shares for consideration other than cash), both of the NSE Rulebook, 2015. Accordingly, and per the wordings of the Trading Suspension Rules, they were designed to inform issuers and their advisors on the procedures for trading suspensions, with the aim of removing any ambiguity or speculation from the trading suspension process.

By way of synopsis, the Trading Suspension Rules now provides that:

resentation. Following the creation of the court, the Magistrates’ Court Law (Practice Directions on Small Claims) 2018 (“Practice Directions”) were issued by the Hon. Justice Opeyemi Oke, Chief Judge of Lagos State, as the regulatory framework for the take-off and smooth operation of the new regime.

As Nigeria’s financial nerve center and economic capital, the myriad of disputes arising from business transactions, investments and all sorts of contractual relationships on a daily basis in Lagos State is generally expected. Parties to these disputes also expectedly seek settlement daily either by instituting legal action in the court of law or by submitting to an arbitration panel, in accordance with the terms of their agreements. Notably, in many instances, not only are the amounts of claim not in contest (liquidated demands), they are also very small to have warranted, in the first instance, the kind of rigour, technicality, and the expense of huge costs in terms of finance and time; usually associated with proceedings in the regular courts. In essence, the importance of the role of the Small Claims Court in decongesting the regular Magistrates’ Courts in Lagos State of cases which can easily be resolved

artisans, itinerant traders and the likes, who moved from place to place, usually on foot. The term pie-powder therefore applied to the tribunal because the court was frequented by merchants with dusty feet, who wandered from mart to mart.

PRACTICE DIRECTIONS OF THE SMALL CLAIMS COURT IN LAGOS STATE In Lagos State, the Small Claims Court/Track was created out of the existing Magistrates’ Courts, as a division of the Court. The applicable law is the Magistrates’ Court Law of Lagos State 2009, which gives the Lagos State Judicial Service Commission the mandate to establish Magistrates’ Court Houses, as it considers appropriate, necessary and expedient to accommodate the needs of the State; as well as empowers the Chief Judge of the State to, in addition to the Magistrates’ Court (Civil Procedure) Rules, make rules regulating the practice and procedure of the Magistrate Court so established. This sets the legal framework under which some Magistrates’ Courts were in April 2018, designated as Small Claims Courts and the Practice Directions issued.

To be continued next week

RIGHTSWATCH CPC welcomes designation of small claims court in Lagos state

I

n another development, the Consumer Protection Council (Council) has welcomed the designation of Small Claims Courts within the Lagos State jurisdiction and issuing of Practice Directions by the Chief Justice of Lagos State.

In a press statement from the Director General’s office, the Council noted that the “Directions limits the threshold of cases to N5,000,000.00 (Five Million Naira only) and a maximum period of 60 (Sixty) days to resolve disputes.

Applauded the initiative the council affirmed that it “provides a

better mechanism, and expanded access for disputes arising out of consumer grievances” The statement read, “The Council commends Lagos State and the leadership of its judiciary for this bold and practical initiative to improve attention to, and speed in securing remedies for consumers. This effort reinforces a key statutory mandate of the Council to ensure speedy redress to consumer complaints.

“The Council encourages consumers to exercise their rights to the fullest possible extent, and invites other states to emulate this initiative.”

31

1. Regulator Trading Suspensions: Only SEC can direct the NSE to place any listed securities on “technical suspension”. Per the Trading Suspension Rules, a “technical suspension” differs from a trading suspension in light of the varied definitions for the concepts, “Suspension of Trading” and “Technical Suspension”. While the former halts trading activities outright, the latter interrupts price movement, such that even though trading continues, there will not be a change in the price of the suspended listed securities. The Trading Suspension Rules implies that neither the NSE nor an issuer can require listed securities to be placed on technical suspension, save on SEC’s directive. It may be recalled that SEC had sought to investigate the NSE in 2014 after the NSE placed the listed securities of a Nigerian Bank on technical suspension. The technical suspension was following an application by the Nigerian Bank for its securities to be placed on technical suspension for the duration of its capital restructuring (rights issue) process.

SEC had raised the concern that the NSE’s action might be viewed as an

GLOBALREPORT

unfair market practice. The concern was rather puzzling in view of the fact that the SEC Rules validated a technical suspension in a capitalization scenario – see for example, Rule 340(2)(f) on technical suspension during private placements by public companies. What is left unsaid in the Trading Suspension Rules, and as may be reasoned from the nature of NSE Trading Suspensions, is whether the NSE can proceed to place on trading suspension, listed securities that SEC has directed to be placed on technical suspension?

2. NSE Trading Suspensions: The powersoftheNSEtosuspendtradingin thefollowinginstancesarepreservedby the Trading Suspension Rules: (a) where it will be in the interest of the investing public and in accordance with SEC Rules; (b) where consideration other than cash is proposed or received by the issuer for any of its shares; (c) where the issuer goes to press or its financial results are leaked without informing the NSE; (d) where such action is necessary or appropriate for the maintenance of a fair and orderly market or for the protection of investors or public interest.

It may be recalled that Rule 198 of SEC Rules allows an exchange effect a trade suspension in accordance with the exchange’s rules. The exchange only has an obligation to notify SEC within 24 hours of such decision, of the effective date and reasons for the trading suspension. The effect of this rule is that even where SEC decides not to grant technical suspension, NSE has full powers to grant a “suspension of trading”.

3. Issuer Requested Trading Suspension: The NSE can, upon an application in that regard by the issuer, grant a trading suspension in any of the instances of: (a) share capital restructuring including the creation of holding companies or spin offs; (b) voluntary delisting; (c) mergers and acquisitions that will result in the delisting of an issuer; (d) such other transactions as the NSE will approve from time to time. The Trading Suspension Rules provide for the procedure to effect these types (a to c) of trading suspensions, with (a) and (c) requiring SEC’s prior approval.

Our Thoughts It is insufficient that SEC and NSE have the powers to put securities on technical or trading suspensions,

without providing guidelines on the instances in which it, especially for SEC, will exercise the power and for what duration. It is not within the remit of the Trading Suspension Rules to provide for the instances where SEC will impose a technical suspension. It is for SEC to spell this out. The Trading Suspension Rules spelt out the scope and basis of the NSE’s decision to impose a trading suspension, although it fell short of stating time limitations of the trading suspension - a very important feature. For SEC to rely on its amorphous statutory power (which essentially is a public trust) of being the regulator or acting in the interest of the public, is inadequate to appease the sophisticated securities market that Nigeria is evolving to.

How and when it will exercise such power will be good international best practice. SEC’s powers are not absolute as the rights of an issuer or investor to successfully proceed against SEC, where it can establish that actions have not been taken in good faith is rife in the extant law.

Simply, a situation where the scope and limits of regulator-imposed trading suspensions are left openended is not desirable for investor’s confidence and will not aid conversations on the regulator’s neutrality. Regulator-imposed trading suspensions should be stop-gap measures used in subtly communicating established infractions to the investing public.

They should not be used as death blows and left untamed. Eventually, the market will decide, the regulator should only provide the materials to aid such decision.

Scope and time limitations for trading suspensions in Nigeria is a topic worth engaging. Also worth mentioning is the ordinate length of time it took the Trading Suspension Rules to be approved.

314 days is rather too expensive for the 8-paragraph Trading Suspension Rules. Time is a limited resource that the Nigerian securities market must value. That said, the NSE’s Trading Suspension Rules is another good step in the miles ahead.

Ifureuwem Udofa and Bidemi Olumide are of AO2 Law. For Feedback, contact: (ifureuwem.udofa@ao2law.com) or (bidemi.olumide@ao2law.com) with the subject: “Trading Suspensions in Nigeria: To Save or to Kill?”

Law firm launches diploma in psychological supervision of family lawyers

A

law firm in London has launched what it believes is the first training scheme in psychologically based supervision to help family lawyers manage work-related stress.

Gillian Bishop, director of Family Law in Partnership (FLiP), said solicitors were the only frontline professionals in the family justice system not to receive supervision.

“I think it should be compulsory for all family lawyers, both for their wellbeing and the wellbeing of their clients,” Ms Bishop said. “I wish it had been available for me when I started as a family lawyer.

“Supervision is not mentoring, it is not about getting advice on how to run your cases. It’s about understanding the dynamics of the relationship between lawyers and their clients – for example, if you are speaking to a client on the phone and your blood runs cold.

“It is about understanding what is happening in that situation and what you could do to improve that relationship with a client.

“It’s about managing your mental health in a job where people are telling you a lot about their pain and unhappiness.”

Ms Bishop said other professionals in the family justice system – child psychologists, counsellors, social

The President of the Nigerian Bar association (NBA), Abubakar Balarabe Mahmoud, SAN was at the American Bar Association Section on International Law Africa Forum in Cape Town, where he spoke on the Challenging the Perception of Risk in Africa.

workers and family therapists – all benefited from supervision.

She said despite the evidence of “chronic stress, workaholism and burnout among family lawyers” and high levels of work-related stress among lawyers highlighted last week by Mental Health Awareness Week, the profession was still playing “catch-up”.

Ms Bishop said FLiP had introduced supervision three years ago, and she was the “guinea pig” and the first to receive it. FLiP, based in Covent Garden, now provides supervision for 11 family lawyers.

32

BUSINESS DAY

C002D5556

Thursday 24 May 2018

INDUSTRY FILE

2019 Elections: CJN Warns judges against computer generated evidence

T

he Chief Justice of Nigeria, CJN, Justice Walter Onnoghen, on Monday, warned Judges to be extra careful while evaluating electronically generated evidence that will arise from 2019 election petitions.

The CJN, who gave that the opening ceremony of a one-day symposium for Justices, Judges and Jurists, stressed that “extreme circumspection and acute vigilance must be the key words for courts in this area of evidence”.

He maintained that digitally generated evidence must be subjected to the test of admissibility and compliance under section 84 of the Evidence Act, 2011.

“My Lords, you will all agree with me that whenever digitally generated evidence is sought to be tendered in your courts, the opposing counsel would quickly object to the admissibility of such evidence on the ground of non-compliance with the provision of Section 84 of the Evidence Act, 2011.

“It suffices to say therefore that for electronically generated evidence to be admissible, evidence as to the functionality of the computer must first be adduced. This section of the law has hitherto been given diverse interpretation by various courts.

This has contributed to the delay in dispensing with cases, which borders on this section.

Notwithstanding the laudable provision of the law therefore, extreme circumspection and acute vigilance must be the key words for courts in this area of evidence.

It is very important to emphasize, that Judges at all levels must appreciate how this section of the Evidence Act is applied.

“I therefore urge you all not to be in a haste to deliver rulings or judgments when issues pertaining to the non-compliance of Section 84 are raised”.

Justice Onnoghen described the symposium which was organised by the National Judicial Institute, NJI, as the first of its kind, saying “our nascent democracy has to be nurtured, consolidated and developed”.

He said: “The entrenchment of the Rule of Law which is the corner stone of any democratic system will only translate to a mere mantra unless the Judiciary not only dispenses justice, but is also seen by the citizenry to be doing so fairly, timely and justly.

“A weak Judiciary is a recipe for anarchy, impunity, poverty, underdevelopment and instability.

“Also, the several provisions of our Constitution has in succession come before your Lordships, for interpretation and enforcement in conformity with the arduous task imposed on the courts by the Constitution.

“The Courts are at all times prepared to perform this role expeditiously and with minimum costs to the litigants. This process, amongst others can rapidly enhance the true comprehension of our Constitutional provisions as a step towards the identification of the grey areas requiring future amendments, modifications, alterations, and/or even complete deletions.

“The advent of technological development and the consequent evolution of paperless transactions have permeated every sphere of life, and the legal system is no exception.

“In the event of disputes involving transactions conducted through electronic means, parties are bound to rely on electronic evidence of such transactions.

“The amendment of the Evidence Act, 2011 was intended to provide for the use of such electronic evidence in court proceedings.

“Prior to this amendment, the admissibility of electronic evidence in court proceedings had been shrouded in controversy due to the absence of specific provisions in the previous Act. “In light of the foregoing, this Symposium shall serve to shed light on the gray areas of the Evidence Act, 2011 with particular regard to Section 84 of the Act. “I must state categorically however, that this Symposium could not have come at a better time as we gradually approach an election year, bearing in mind that you will be taken to task to evaluate electronically generated evidence arising from Election Petitions”.

In her welcome address, the Administrator of the NJI, Justice R.P.I. Bozimo, noted that section 84 of the Evidence Act provided modalities by which electronically generated evidence must be certified and tendered in court.

“My lords, as ministers in the temple of justice, you should always demonstrate adequate knowledge and sound judgment in dealing with evidence brought before you in any form.

“It is necessary to note that while the use of computers for daily tasks provides ease, safety and other positive outcomes, it may also be subjected to misuse”, she added.

Young Lawyers Forum: University Don extols Paul Usoro, SAN as a good leader

A

University Don, Profess or Momo du KasimMomodu, Law Dean at Crescent University, Abeokuta recently lauded the eminent lawyer, Paul Usoro, SAN for his giant strides in legal practice.

The Professor made this known, at a breakfast meeting organised by the Young Lawyers Forum (YLF) of Kano, Ungogo and Dutse branches.

Speaking at the meeting, he hailed Paul Usoro for his exceptional and excellent skills over the years, particularly his establishment of one of the finest law firms, Paul Usoro & Co, that is known to hire young lawyers and groom them, through thorough pupillage and mentorship.

In reviewing the exploit of the learned silk, the University Don called on fellow academia and other lawyers in the country to choose Usoro as their candidate for the next President of the Nigerian Bar Association. “I have had faith in him from the first day I heard about his ambition to lead the NBA. I had never met him but I went online to read about his works and they are simply exceptional. Paul is a bar man that has the potentials to give us an Association that will put you and your dreams first”.

“A vote for Paul Usoro is a vote for yourself – if you vote for Paul Usoro, you are voting for your interest as a lawyer and you are also voting for the overall interest of the legal profession”, he enthused.

Notable personalities at the breakfast meeting include Alh. Tajudeen Oladoja (Life Bencher), Ibrahim Shehu, (YLF Chairman, Dutse branch), Abdullahi Musa Karaye, (YLF Chairman, Ungogo branch), Mukhtar Bello Shehu (YLF Chairman, Kano Branch), Ahmed Khali (YLF Chairman, Yobe Branch) among others.

In the same vein, as part of his agenda to have an inclusive bar, Usoro recently paid a courtesy visit to the law teachers of the Rivers State University of Science and Technology, Port Harcourt

Paul Usoro

during the 2018 conference of the Section on Legal Practice of the Nigerian Bar Association (SLP NBA) held in Port Harcourt.

Addressing the law teachers, Paul Usoro said, “My coming here is to reinforce belief that leadership we will work together with the academics to provide solutions to the myriads of problems facing legal practice in Nigeria. The academics are well placed to research into those problems and proffer solutions”.

In the euphoria created by the visit of the quintessential lawyer, the Dean, Faculty of Law, Rivers State University of Science and Technology, Port Harcourt, Professor Nlerum Okogbule expressed the support of the academia to Usoro. “We commend your foresight in the industry and we are impressed to have you speak to us at this conference. We would support you because we need innovations in the NBA. The bar needs somebody like you to lead the Association and you can rest assured of our support”.

Paul Usoro is a visionary leader with the right temperament to unify all. He is a truly detribalised Nigerian with strong connections to all the geographical zones. Born in the East – South East, educated in the West, practiced in the North, now headquartered in Lagos with branch offices in Abuja and Uyo. He is a consummate professional and leader you can trust.

GLOBALREPORT US-owned medical reports giant buys law firm as part of accident management deal

A

report by ‘LegalFutures’, has revealed that Medical giant, ExamWorks – which owns leading UK provider Premex – has bought a personal injury firm as part of its acquisition of leading accident management group Kindertons.

Jigsaw Law was originally a claims management company but was granted an alternative business structure licence in late 2012.

Though the price is undisclosed, Kindertons’ most recent accounts, for the year to 28 February 2017, put its turnover at £133m.

Donald Fowler, chief executive of ExamWorks UK, told Legal Futures that the acquisition would create a company unlike any other in the range and scale of the services it provided.

He said Jigsaw Law would be the first law firm owned by Examworks UK and it was not part of the strategy to acquire more.

Jigsaw Law has two offices, in Ellesmere Port and Crewe, and employs five solicitors among 52 staff in total. One of them, Paul Hurst, is head of legal practice and of finance and administration.

Its most recent accounts put turnover at £5.1m, with a gross profit of £3.2m and net profit after tax of £654,000.

Mr Fowler said the presence of a law firm and a legal expenses insurance company in the Kindertons group meant that approval for the purchase was required from both the Solicitors Regulation Authority and Financial Conduct Authority.

Kindertons is one of the largest, independent specialist credit hire

providers in the UK, managing the full claims-handling process on behalf of insurers, insurance brokers, motor dealers, garages and bodyshops, as well as providing replacement vehicles and managing the recovery, repair and storage of damaged vehicles.

Mr Fowler said the client base of Examworks UK was “remark-

ably similar” to Kindertons, which was owned by private equity house Sovereign Capital.

Along with Premex and Premex+, Examworks UK owns 3d Rehabilitation, UK Independent Medical and Examworks Investigation Services among others.

Fowler went on: “Independently, both ExamWorks and Kinder-

tons have worked hard to provide industry leading services to the insurance and legal sectors.

“There is clear synergy and shared vision between our two businesses and the transaction will allow us to diversify our service offering to both existing and new clients.

“The two companies have evolved and grown over the past 20 years with amazing parallels, and combining the two groups creates a truly unique and marketleading business with huge opportunities for both our group and our customers.”

Internationally ExamWorks is the leading provider of independent medical examinations and related services in the USA, Canada, the UK and Australia, with global revenues of $1.2bn and 4,800 employees.

Thursday 24 May 2018

C002D5556

Live @ The Stock Exchange Share reconstruction: NSE places Prestige Assurance stocks on full suspension Stories by Iheanyi Nwachukwu

T

he Nigerian Stock Exchange (NSE) has notified dealing members that the ordinary shares of Prestige Assurance Plc (the Company) was suspended from trading on The Floor of The Exchange effective Wednesday, 23 May 2018 to Wednesday, 6 June 2018.

Trading in the shares of the Company will resume on Thursday, 7 June 2018.” This is to enable Prestige Assurance Plc complete its share capital reconstruction.

Shareholders of the insurance company had at its 47th annual general meeting (AGM) on Friday, August 18, 2017 in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

It will be recall that trading in the shares of the Company was suspended from Friday, 23 March 2018 to Tuesday, 27 March 2018 for the purpose of the Share Capital

Reconstruction but Prestige Assurance Plc through an announcement to the general public on Friday, 18 May 2018 stated that the exercise could not be concluded during that period. The company also notified the general public and its shareholders that the exercise commences on Wednesday May 23, 2018 to Wednesday June 6, 2018 to enable its Registrar complete the Share Capital Reconstruction exercise.

Abayomi Odulana, Prestige Assurance Company Secretary had said the Registrars to the company was unable to conclude the updating of the company’s register of shareholders during the period earlier scheduled for the exercise.

The company had been placed on full suspension in March to mark out register and conclude the share reconstruction Prestige Assurance is expected to cancel about 1.6 billion ordinary shares of 50 kobo each under a capital restructuring programme aimed at removing bubble assets. Under the share reconstruction, Prestige As-

surance will reduce its share capital from N2.685billion or 5.370billion ordinary shares of 50 kobo each to N1.909billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

This will lead to a reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

Prestige Assurance stated that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.511 million. The company noted that the reconstruction would reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

Besides, the reconstruction would allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

SEC seeks shareholders support for e-dividend mandate registration project …as expert identifies opportunities, challenges of investing in Nigerian market

S

ecurities and Exchange Commission (SEC) has again urged shareholders group in Nigeria capital market to support the Commission’s to ensure that initiatives, especially, the E-dividend Mandate Registration drive committed to significantly reducing the volume of unclaimed dividend in the stock market.

The SEC made the plea at the maiden national discourse of the Pragmatic Shareholders Association of Nigeria (PSAN) where it solicited for shareholders support until the nation achieves 100 percent implementation of the E-dividend Mandate Registration project.

While speaking at the event themed “Portfolio Investments – Opportunities and Mounting Challenges for Nigerian Shareholders”, Stephen A. Falomo, Director, SEC, Lagos Zonal Office, who represented the Acting Director General, Mary Uduk noted that the Commission appreciates the role of Shareholders Associations in the development of the Nigerian Capital Market.

“As the theme suggests, investment in the Nigerian capital market, just as in any other capital market across the world, is a mixed bag of fortunes. A smart investor is expected to have this consciousness

at the back of his mind at all times, even as he wades into the market, to pick his choice instrument or instruments of investment”, the SEC director said.

The Commission further noted that investors generally make investments for reasons of capital appreciation, tax advantage and safety of capital.

“In the capital market, this could be achieved through investment in various capital market instruments. While there are good opportunities to achieve decent returns on investment, an investor has to be smart to avoid some obvious mistakes which could lead to capital erosion, this is why one of the most consistent advice an investor would receive is the fact that it is very important to have a mixed bag of investment instruments in order to mitigate risks and exposure”, Falomo stated.

He noted that opportunities in portfolio investment for individual investors deal mainly with the chance to create a mixed investment package which would ensure that such investment is not eroded by changing government policies. “The challenges however deal with the investor’s ability to select a good mix of bonds and equity which could be expected to give

a decent yield over time.

Also, investment in mutual fund has continue to be a worthwhile investment in recent time,” the SEC director added.

In his presentation at the event, Johnson Chukwu, MD/CEO, Cowry Asset Management Limited noted some challenges of investing in Nigerian securities.

Some of them according to him are: unstable macroeconomic environment, market abuses/low but improving sanctions regime, slow rate of weed out of weak listed corporates, and relatively weak investor protecting resources.

Others challenges of investing in Nigerian securities according to Chukwu are, “Absence of efficient commercial legal systems, lack/high cost of credits in the economy, absence of effective securities lending system, and the market being sensitive to the influence of foreign portfolio investors”.

He identified opportunities in the Nigerian investment market to include strong mid/long term economic prospects, high yield environment, acquisition/ take over opportunities, availability of a number of gift edge investments with low risk and relatively good return prospects, and limitless market growth opportunities.

BUSINESS DAY

33

34

BUSINESS DAY

C002D5556

Thursday 24 May 2018

Live @ the Stock exchange Prices for Securities Traded as of Wednesday 23 May 2018 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. 313,868.49 10.85 -0.46 171 30,378,902 UNITED BANK FOR AFRICA PLC 386,453.46 11.30 0.89 203 18,142,985 877,532.00 27.95 -0.18 354 20,083,475 ZENITH INTERNATIONAL BANK PLC 728 68,605,362 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 384,079.63 10.70 0.94 329 8,846,898 329 8,846,898 1,057 77,452,260

BUILDING MATERIALS DANGOTE CEMENT PLC 4,157,883.81 244.00 - 16 13,603 LAFARGE AFRICA PLC. 351,273.84 40.50 - 32 91,868 48 105,471 48 105,471

EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD 432,330.22 734.70 - 5 968 5 968 5 968 1,110 77,558,699 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 78,506.79 82.30 - 13 42,153 OKOMU OIL PALM PLC. PRESCO PLC 75,000.00 75.00 - 10 62,016 23 104,169 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 511.20 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 2,550.00 0.85 -1.16 7 560,000 7 560,000 30 664,169

DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 1,561.90 0.59 - 4 154,065 210.14 0.54 3.85 11 278,551 JOHN HOLT PLC. S C O A NIG. PLC. 2,111.93 3.25 - 2 125 58,533.11 1.44 -4.64 144 21,327,632 TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. 41,778.80 14.50 -8.52 69 1,613,499 230 23,373,872 230 23,373,872

BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 38,280.00 29.00 - 17 41,681 165.00 6.60 - 0 0 ROADS NIG PLC. 17 41,681 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT CO. LIMITED 5,560.57 2.14 -4.89 13 314,584 13 314,584 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 2,000.00 100.00 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 11,300.89 45.20 - 0 0 26,682.70 10.00 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 0 0 30 356,265

AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 1,479.53 0.31 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 16,050.47 2.05 0.49 25 475,875 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 1 1,868 GUINNESS NIG PLC 227,799.81 104.00 - 42 329,481 INTERNATIONAL BREWERIES PLC. 445,265.65 51.80 - 1 200 NIGERIAN BREW. PLC. 977,221.43 122.20 -0.65 75 203,070 144 1,010,494 FOOD PRODUCTS DANGOTE FLOUR MILLS PLC 50,250.00 10.05 -4.74 95 2,960,107 DANGOTE SUGAR REFINERY PLC 213,600.00 17.80 -2.47 112 1,877,224 FLOUR MILLS NIG. PLC. 132,852.30 32.40 -2.85 119 2,106,979 HONEYWELL FLOUR MILL PLC 19,825.49 2.50 1.21 48 1,978,508 MULTI-TREX INTEGRATED FOODS PLC 1,489.00 0.40 - 0 0 N NIG. FLOUR MILLS PLC. 1,220.67 6.85 - 1 218 NASCON ALLIED INDUSTRIES PLC 54,313.49 20.50 -0.24 52 922,480 UNION DICON SALT PLC. 3,676.41 13.45 - 2 48,341 429 9,893,857 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 24,416.63 13.00 - 37 128,641 NESTLE NIGERIA PLC. 1,268,250.00 1,600.00 - 46 1,351,167 83 1,479,808 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 3,439.82 3.30 - 6 3,955 6 3,955 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 86,754.92 21.85 - 11 73,857 UNILEVER NIGERIA PLC. 290,122.77 50.50 - 23 128,085 34 201,942 696 12,590,056

BANKING DIAMOND BANK PLC 36,361.81 1.57 -2.48 36 4,024,695 ECOBANK TRANSNATIONAL INCORPORATED 367,908.50 20.05 -2.20 46 788,114 FIDELITY BANK PLC 63,165.06 2.18 -0.46 59 3,223,922 GUARANTY TRUST BANK PLC. 1,280,256.30 43.50 0.23 184 13,772,343 JAIZ BANK PLC 20,035.69 0.68 - 10 127,615 SKYE BANK PLC 10,549.03 0.76 -1.32 45 4,205,283 STERLING BANK PLC. 38,867.06 1.35 -3.57 45 4,897,656 UNION BANK NIG.PLC. 186,372.82 6.40 - 16 103,192 UNITY BANK PLC 11,338.66 0.97 -4.90 15 441,856 WEMA BANK PLC. 30,473.83 0.79 -3.80 51 5,016,183 507 36,600,859 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE COMPANY PLC 4,117.00 0.20 - 1 15,000 AIICO INSURANCE PLC. 4,296.73 0.62 -4.62 22 417,846 AXAMANSARD INSURANCE PLC 26,250.00 2.50 1.63 14 480,100 CONSOLIDATED HALLMARK INSURANCE PLC 2,100.00 0.30 - 19 105,255 CONTINENTAL REINSURANCE PLC 15,559.12 1.50 - 16 324,260 CORNERSTONE INSURANCE COMPANY PLC. 5,155.33 0.35 - 0 0 EQUITY ASSURANCE PLC. 3,220.00 0.23 -4.17 5 580,530 GOLDLINK INSURANCE PLC 2,411.47 0.53 - 0 0 GREAT NIGERIAN INSURANCE PLC 1,913.74 0.50 - 0 0 GUINEA INSURANCE PLC. 2,456.00 0.40 - 0 0 INTERNATIONAL ENERGY INSURANCE COMPANY PLC 539.32 0.42 - 0 0 LASACO ASSURANCE PLC. 2,856.14 0.39 -2.56 25 1,730,747 LAW UNION AND ROCK INS. PLC. 3,866.70 0.90 1.12 6 1,065,842 LINKAGE ASSURANCE PLC 6,960.00 0.87 -4.40 14 3,333,883 MUTUAL BENEFITS ASSURANCE PLC. 2,800.00 0.35 2.94 9 3,545,337 N.E.M INSURANCE CO (NIG) PLC. 13,729.31 2.60 - 16 411,692 NIGER INSURANCE CO. PLC. 1,857.48 0.24 4.35 8 651,055 PRESTIGE ASSURANCE CO. PLC. 1,832.36 0.48 - 0 0 REGENCY ALLIANCE INSURANCE COMPANY PLC 1,800.56 0.27 - 1 40 SOVEREIGN TRUST INSURANCE PLC 2,085.21 0.25 4.00 20 5,990,806 STANDARD ALLIANCE INSURANCE PLC. 5,422.63 0.42 - 1 20,000 STANDARD TRUST ASSURANCE PLC 4,483.72 0.48 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 1 1,488 UNIVERSAL INSURANCE COMPANY PLC 8,000.00 0.50 - 0 0 VERITAS KAPITAL ASSURANCE PLC 4,853.33 0.35 - 4 12,500 WAPIC INSURANCE PLC 6,959.02 0.52 -3.70 9 1,316,995

191 20,003,376 MICRO-FINANCE BANKS FORTIS MICROFINANCE BANK PLC 11,799.67 2.58 - 0 0 4,436.08 1.94 - 19 485,301 NPF MICROFINANCE BANK PLC 19 485,301 MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 5,460.00 1.30 - 0 0 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 5,922.05 1.42 - 0 0 INFINITY TRUST MORTGAGE BANK PLC RESORT SAVINGS & LOANS PLC 5,664.87 0.50 - 0 0 2,949.22 3.02 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 0 0 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,200.00 4.10 -2.38 63 1,625,532 CUSTODIAN AND ALLIED PLC 28,232.95 4.80 -3.61 29 842,936 720.00 0.48 - 1 100 DEAP CAPITAL MANAGEMENT & TRUST PLC 47,130.45 2.38 -4.80 83 4,597,979 FCMB GROUP PLC. NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 1,749.43 0.34 - 4 72,325 ROYAL EXCHANGE PLC. SIM CAPITAL ALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 482,374.36 48.00 - 19 147,661 STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC 18,900.00 3.15 0.32 56 1,713,739 255 9,000,272 972 66,089,808

HEALTHCARE PROVIDERS EKOCORP PLC. 1,680.29 3.37 - 0 0 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1,634.44 0.46 - 0 0 0 0 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 544.04 0.55 - 1 3,971 1 3,971 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 8,850.00 5.90 2.79 39 27,195,644 25,412.38 21.25 - 11 10,625 GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. 2,606.80 2.66 -1.12 18 319,280 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,139.49 0.66 - 3 68,100 556.71 3.62 - 0 0 NIGERIA-GERMAN CHEMICALS PLC. PHARMA-DEKO PLC. 477.00 2.20 - 4 1,430 75 27,595,079 76 27,599,050

COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 710.40 0.20 - 2 265,983 2 265,983 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 680.40 6.30 - 5 20,850 TRIPPLE GEE AND COMPANY PLC. 435.56 0.88 - 0 0 5 20,850 PROCESSING SYSTEMS CHAMS PLC 1,784.50 0.38 -5.00 2 500,100 E-TRANZACT INTERNATIONAL PLC 19,110.00 4.55 - 2 3,904 4 504,004 11 790,837

BUILDING MATERIALS BERGER PAINTS PLC 2,608.41 9.00 - 0 0 CAP PLC 27,195.00 38.85 -2.87 9 102,173 CEMENT CO. OF NORTH.NIG. PLC 31,668.28 25.20 - 21 29,709 FIRST ALUMINIUM NIGERIA PLC 970.77 0.46 4.55 6 400,856 MEYER PLC. 361.24 0.68 - 5 64,000 PAINTS AND COATINGS MANUFACTURES PLC 467.82 0.59 - 0 0 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,626.50 2.05 - 3 20,510 PREMIER PAINTS PLC. 1,279.20 10.40 - 0 0 44 617,248 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,774.08 3.15 - 21 506,835 21 506,835 PACKAGING/CONTAINERS BETA GLASS PLC. 43,672.55 87.35 - 5 2,475 GREIF NIGERIA PLC 388.02 9.10 - 0 0 5 2,475 70 1,126,558

CHEMICALS B.O.C. GASES PLC. 1,927.21 4.63 0.65 20 1,009,669 20 1,009,669 METALS ALUMINIUM EXTRUSION IND. PLC. 2,023.60 9.20 - 1 500 1 500 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 77.00 0.35 - 0 0 0 0 21 1,010,169

ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,690.93 0.27 -3.57 23 3,227,483 23 3,227,483 INTEGRATED OIL AND GAS SERVICES OANDO PLC 94,478.73 7.60 -3.80 129 2,779,184 129 2,779,184 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 62,202.68 172.50 - 54 56,828 CONOIL PLC 22,067.68 31.80 - 24 48,232 ETERNA PLC. 8,085.70 6.20 - 42 781,465 FORTE OIL PLC. 53,010.98 40.70 - 37 58,475 MRS OIL NIGERIA PLC. 7,924.45 31.20 4.87 14 128,759 TOTAL NIGERIA PLC. 71,978.63 212.00 - 25 79,573 196 1,153,332 348 7,159,999

ADVERTISING AFROMEDIA PLC 2,219.52 0.50 - 0 0 0 0 AIRLINES MEDVIEW AIRLINE PLC 20,866.39 2.14 - 2 560 2 560 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 564.65 0.48 - 1 7,592 1 7,592 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 3,713.83 6.30 - 6 57,500 TRANS-NATIONWIDE EXPRESS PLC. 384.45 0.82 - 0 0 6 57,500 HOSPITALITY TANTALIZERS PLC 1,188.30 0.37 - 1 3,000 1 3,000 HOTELS/LODGING CAPITAL HOTEL PLC 4,878.66 3.15 - 1 500 IKEJA HOTEL PLC 4,656.50 2.24 9.80 31 45,834,353 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 56,623.01 7.45 - 3 14,500 35 45,849,353 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 5,760.00 0.48 - 0 0

Thursday 24 May 2018

BUSINESS DAY

35

Politics & Policy

36

BUSINESS DAY

C002D5556

Thursday 24 May 2018

Guber aspirant promises to jumpstart Imo economy with N25bn venture capital fund CHUKS OLUIGBO

A

top aspirant to the Imo State governorship seat in the 2019 general elections, Chidi Okoro, has said if elected governor, he would jumpstart the Imo economy with a N25billion private sector-funded venture capital fund.

Okoro, who is pursuing his aspiration on the platform of the All Progressives Grand Alliance (APGA), told journalists in Lagos last weekend that the N25 billion would be plugged into creating eight light manufacturing clusters in the state in the following areas and locations: pharmaceuticals (Orlu), building materials (Mbaise), beverage (Owerri), food processing (Okigwe), ceramics (Akokwa), electrical (Ngor-Okpala), and so on.

The choice of these locations, he said, is based on areas where each has comparative advantage.

“When we do this, we will build structures, put in embedded power and put in the roads, and it costs barely $2 million per cluster. Then we

invite people to come and invest, and we give them two years to start paying for the property,” Okoro said.

“The moment we start manufacturing, jobs get created, IGR will rise. The plan is that within two years we will triple the IGR to about N1.5 to 2 billion per month, and that’s easy. Because we can consume, we can manufacture, and because we have the manpower, we can manufacture,” he said.

Okoro said part of the N25billion venture capital fund would also go into creating an ICT innovation hub and getting Imo youths into the structure so that they can start making inventions, as well as transforming Owerri, the state capital, from a hotel city to a hospitality, conferencing and entertainment city.

Other areas that the money would go into, according to Okoro, include education and health care, where he plans to attract the Imo diaspora to contribute to build worldclass medical facilities at the ‘Medical Village’ planned for Owerri, as well as facilitate investments in education with focus on areas Imo needs to develop advantage – ICT,

Chidi Okoro

medicine including public health, pharmacy, engineering, hospitality and entertainment management services, among others.

“We will also push some of that money to facilitate private community healthcare industry to create pharmacies, medical laboratories, and

Presidential aspirant pledges to privatise NNPC, revamp economy … kicks against complete restructuring of Nigeria INIOBONG IWOK

A

presidential aspirant on the platform of the ruling All Progressives Congress (APC), Adamu Garba, has kicked against the call for complete restructuring of the country, stating that if the country as presently constituted is to develop and overcome its current challenges there was the need for a strong central government that can tap the various natural resources of the country and harness it for development.

Garba stated this yesterday during a visit to corporate head office of BusinessDay in Lagos, where he fielded questions on his presidential bid.

He noted that the idea of restructuring of the country was necessary, especially considering the myriad challenges the country was facing, but warned against complete restructuring, stressing that it was necessary that there must be a strong federal system that would control the resources of the country.

“There are several stages of restructuring that need to be

natural, like state of residence, federal character, etc. The only area I have concern is in the resource control, because we need to build industries, schools and we can’t do this by concentrating of in the regions; for example, in Enugu and some other states we have large deposit of coal and we need a federal government that can develop and tap this resource for the benefit of the country.”

The Adamawa-born businessman cum politician promised to build local industries which would use local

Adamu Garba

raw materials while creating jobs, adding that his focus would also be on agriculture by harnessing the farm produce to be used by local industries.

He stressed that his administration would privatise the Nigeria National Petroleum Corporation (NNPC) and that he would list it on the stock exchange. He also promised to reposition the Central Bank for efficiency.

Garba further said he would launch two national programmes, namely, the awakening and rejuvenation initiatives, which would give Nigerians a sense of belonging, while opening up the country to nine geo-economic zones, which he said would aid the utilisation of resources by local industries and promotion of entrepreneurship.

“What we did was to look at what strategy can be implemented in our economy and we came up with step by step initiatives. We would give farming a priority but we need to use this farm produce in the factories that would be built to create jobs for the people,” he said.

maternity homes in rural and semi-urban areas so that Imo development gets diversified and the economy starts to really be genuine and real,” he said.

“Because we can consume much of what we produce, we don’t need to wait for outsiders to buy and also, we have

nearby markets that are pretty big. Between Anambra, Rivers and Abia States, you probably have 25 percent of Nigeria’s GDP sitting there. So if you are one hour from these places, you can actually see what they need and provide that. That’s how we intend to spring up the Imo economy and make it work,” he said.

Giving an overview of the state of Imo economy at present, Okoro said the state is at a stage where it either stays stagnant or it just falls off the cliff and it would take so much to recover.

“Imo economy is a $14-billion GDP, per capita is $3,500, actually almost double Nigeria’s per capita. The Imo diaspora – those in the United States, UK, and all over Nigeria and the world – ship in a lot of money back into the state; the challenge is that it is direct consumption money they ship in, it’s not investment money, so the money is not turned around,” he said.

“Imo gets in about N4 billion to N5 billion every month from the Federation Account.

Our debt situation is N90 billion and $63 million. By the way, a state that makes N50 billion or N60 billion a

year can afford to owe N90 billion, the challenge is how you intend to pay it off, how you intend to keep an economy that pays that off while meeting other obligations to civil servants, pensioners and contractors. Imo IGR is about N500 million to N600 million every month, that’s a shame because we do not produce anything,” he said.

He decried the level of unemployment in the state, at about 30 percent and youth unemployment at 58 percent, blaming it on the absence of productive industries.

Before joining the Imo governorship race, Okoro, who trained as a pharmacist at the University of Nigeria, Nsukka and holds MBA from University of Lagos and Executive Masters Degree in Positive Leadership and Strategy from IE Business School, Madrid, Spain, has held senior management positions in Promasidor, MTN, Reckitt Benckiser and Emzor Pharmaceutical and has served as managing director/CEO, GlaxoSmithKline Nigeria, CEO Africa , Suntory Beverages and, later, managing director/CEO, UAC Foods Limited.

Ayade administration reels out achievements amid criticism MIKE ABANG, Calabar

I

n 2015, Ben Ayade assumed office as governor of Cross River State; he thumped his chest to make a great difference in governance to better the lives of the people of the state. In line with this determination, no sooner had he settled down for the onerous task ahead of him than he started travelling abroad in search foreign investors to actualise his dreams.

Expectedly, tongues wagged, and he was widely criticised by his opponents for spending quality time and state funds on the journeys from one nation to the other.

But the enthusiastic governor was not perturbed by the distractions. He continued assiduously with his quest to prove his detractors wrong.

And about three years down the line, the digital governor, as he is fondly called, has proven his mettle as a young generation governor of his time by providing dividends of democracy to the people of the state.

Although his critics scored him low for not settling down to work earlier at the onset of his administration and for

his alleged inability to commission projects before now as expected, a trip into the hinterland of the state speaks volumes of the massive infrastructural development going on across the three senatorial zones of the state.

Beginning from Bakassi in the south through the central to the extreme northern part of the state, the governor has been able to create positive impact in the minds of the people of the state by the massive infrastructural development going on in most of the local government areas of the state.

During a recent media tour of parts of the state, it was crystal clear that though, some projects are completed and are awaiting commissioning, while many others are ongoing, Ayade has kept faith with his electioneering campaign promises to his people. In spite of some initial challenges, the governor had at different fora reiterated his commitment to complete every project he has embarked upon, because, according to him, they are very dear to him as much as they are to the electorates who staked their necks to elect him to power.

In about two years, the governor has spread projects all around the state to the admiration of the people of the state.

Prominent among projects at different stages of completion and ongoing are the 30km East/West Boki link roads connecting Boje, the local government headquarters with a completed gigantic concrete bridge, across the Boje River, as well as other network of link roads to the hinterland of the LGA, which is about 85percent completed) and already boosting the socio-economic life of the people. There is the Ultra-modern cocoa-processing factory, Ikom, the first of its kind in South/South zone of the country. Also are the three referral hospitals simply referred to as “Ayade Care” spread across the three senatorial zones of the state located at Efraya, Etung Local Govt Area, Obudu and Akpabuyo LGAs; the tooth pick manufacturing factory at Ekori in Yakuur LGA, among others. Some of the projects which are at various stages of completion will provide not only job opportunities to our teeming youths, but will boost economic activities of the state.

Thursday 24 May 2018

BUSINESS DAY

37

38 BUSINESS DAY NEWS

C002D5556

1.2bn scf gas targeted... Rowdy session as Reps set to revisit...

Continued from page 4

Continued from page 1

ternational players.

Lagos, which consumes approximately 60 percent of the country’s total energy output, presently receives about 500 million scf gas from the Niger Delta, but the reform seeks to an approximately 1.25 billion scf daily supply to be sourced mostly within the state.

And as a strategy to making this real, the state government under the reform will be looking to sign long term off-take contracts for gas found in any oil field in Lagos.

Already operational in Badagry, Lagos, is the Aje Oil Field operated by Yinka Folawiyo Petroleum Company while the Dangote Oil Refinery within the Lekki Free Trade Zone (LFTZ) is proposed to commence operation in 2021.

Olawale Oluwo, the Lagos State commissioner for energy and mineral resources, says the reform when fully achieved will help to power the state’s economy from within.

“For a state like Lagos, the fifth largest economy in Africa, we cannot continue to rely on sources of gas that we do not have any form of influence. Part of the objectives of the gas sector reform is to guarantee steady supply to power the state’s economy,” said Oluwo on Wednesday.

According to him, the government is considering a floating storage and re-gasification unit (FSRU) for supply of up to 750 million scf of gas per day, and connection of the re-gasified natural gas from the FSRU to the Escravos Lagos Pipeline Service (ELPS).

Oluwo said that the state government would also be increasing the supply of LPG from both local and international players, with the state ministry of physical planning already working on 200 designated locations across state where potential gas operators will set up storage and dispensing stations.

“There are plans to design small sized cylinders for distribution in the retail market and ensure that the cylinders to be deployed are manufactured in Lagos,” said Oluwo.

madu Buhari.

Meanwhile, the House during the plenary session passed through second reading the regazetted bill for an Act to amend the provisions of the Electoral Act, No 6, 2010 and Electoral Amendment Act, No 2015 to provide for timeline for the submission of list if candidates, criteriaforsubstitutionofcandidates,limit ifcampaignexpensesandaddressthe omission of names of candidates or logo of political parties and for related matters.

In her lead debate, Aisha Dukku, chairman, House Committee on Electoral Matters explained that the proposed reform was aimed at consolidating on the gains of the 2015 elections and address the lacuna in the legal framework.

Thelegislationalsoseekstoprovide legal framework for the use of card reader,whichtheSupremeCourtpronounced as alien to the Electoral Act. She added that the bill seeks to include corrupt practices and noncompliance of the use if the card reader as additional grounds for an election petition and as a reason to invalidate an election. It further seeks to penalise the interruption by any person of the announcement of election results by a returning officer at a collation centre by proposing a five year term or N500,000 fine or both.

Another proposal seeks to amend section 150 to allow any police officer to prosecute electoral offences. this varies from the current practice that

yields will further drive stock market performance higher.

“We are glad to inform you that from July 1, 2018, you can choose 1 of the 4 fund types to invest your RSA”, Stanbic IBTC Pension Managers said in a recent message to its clients.

“We believe that the Federal Government has taken a significant and commendable step towards unlocking the investment potentials of pension fund assets in Nigeria. It is thus expected that the inclusion of new asset classes in the list of Allowable Instruments will widen the investment horizon for PFAs”, according to a Lagos-based law firm, Banwo & Ighodalo.

The firm anticipates that the newly-introduced Multi-Fund Structure presents PFAs with increased opportunities to make targeted and well-tailored investments and also spread the risks usually associated with undiversified portfolios; adding that “Pen-

•Continues online at www.businessdayonline.com

MTN to price $2bn... Relief for banks...

Continued from page 1

resenting 35 percent of its value MTN Nigeria is potentially worth between $8.6 billionand $10.3 billion, according to a research done by BusinessDay. Applying a 7 multiple or the Ghana implied EV - EBITDA valuation to MTN Nigeria’s EBITDA for trailing 4 quarters of N365 billion gives a value of N2.55 trillion or around $7 billion.

MTN said May 3 the offer will start at the end of the month. The Johannesburg-based company is listing the stake on the Ghana Stock Exchange to meet conditions agreed to with the government in 2015, when it acquired the right to use fourth generation spectrum, a high-speed mobile data carrier for customers.

MTN declined to comment.

Kwabena Osei-Boateng, managing director of IC Securities, which is arranging the placement, told Bloomberg by phone he couldn’t immediately comment.

If successful, the share sale will compare with the Ghana Stock Exchange’s previous biggest IPO, when Agricultural Development Bank Ltd. raised 326 million cedis in December 2016.

L-R: Sonnie Ayere, chairman/founder, Dunn Loren Merrifield Group; Kehinde Ogundimu, acting managing director/chief executive officer, Nigeria Mortgage Refinance Company (NMRC); Funso Akere, chief executive, Stanbic IBTC Capital, and Musa Bello, company secretary, NMRC, at the formal signing meeting of the NMRC Series 2 N11 billion Bonds under its N440 billion Medium Term Note Programme in Lagos.

Stocks rally seen as PFAs comply with...

Continued from page 1

prohibits police officers who are not lawyers from appearing before the Court,” Dukku noted.

In swift response to the proposed amendment, Diri Douye (PDP-Bayelsa) who kicked against the proposal, argued that “most of us will become victims of disqualification” in the hands of the police.

Speaking earlier, Nnenna Elendu-Ukeje (PDP-Abia) stressed the need for the House to engage Independent National Electoral Commission (INEC) on the proposed inclusion of Nigerians in Diaspora who are qualified to vote in the list of voters that the Commission should include in its national register of voters for presidential elections.

The amendment also include provisions for parties to submit their list of nominated candidates to INEC not later than 120 days to the election date as against the current 60 days provision.

According to her, the Commission had publicly affirmed that N.E.C confess not to have the capacity to handle diaspora voting, especially as the Embassies agree that they do not have the database of Nigerians living abroad.

In his remarks, Ossai Nicholas Ossai (PDP-Delta) who urged the House to step-down the bill, adding that ongoing amendment to the Electoral Act conflict with the ECOWAS treaties and conventions which Nigeria is a signatory.

sion funds will boost activities/ transactions in the money and capital markets, going forward.”

Fund I of the new structure has the most risk tolerance, and allows maximum exposure to variable income instruments of up to 75 percent of portfolio value.

PenCom defines variable income instruments as the sum of a PFA’s investments in Ordinary Shares and participation units of Open Close - ended and Hybrid Funds; Real Estate Investment Trust; Infrastructure Funds; and Private Equity Funds.

The new Multi - Fund structure specifically allows a maximum of 30 percent exposure to equities for Fund I, up from a 25 percent cap under the old structure.

BusinessDay estimates that an additional N230 billion could flow into equities over time if 40 percent of PFA Assets under Management (Aum), move to fund I. Fund II is for active contributors who are 49 years and below as at

their last birthdays and its investment threshold is 55percent maximum and 10percent minimum of portfolio value. Fund III is for active contributors who are 50 years and above as at their last birthdays with investment threshold of 20percent maximum and 5percent minimum of portfolio value; while Fund IV, exclusively for retirees has investment threshold of 10percent maximum and Zero percent minimum of portfolio value.

Yields on fixed income securities have fallen dramatically this year and the Central Bank of Nigeria (CBN) shows commitment to single-digit inflation. The FGN bond market was fairly active on Tuesday, with yields contracting across the curve. The Monetary Policy Committee (MPC) rose from its two day meeting and eight members voted against one to leave all its policy parameters unchanged.

Yields generally narrowed at the Eurobond market, particularly for sovereigns. Opening market liquidity on Monday was positive at N81billion. Interbank rates closed

Thursday 24 May 2018

within 16percent to 18percent levels.

On the Nigerian Treasury Bills (NTB) secondary market, yields also dipped for several maturities.

Despite that first-quarter (Q1) 2018 results had little impact on the bourse, the equities market has remained positive with return of about 5.25 percent this year.

“The decline in yields on FGN paper since mid-2017 could lead to a change in asset allocation by PFAs. The share of Assets Under Management (AUM) invested in equities has risen, but we are not witnessing a sea-change. The generally average results of listed companies other than tier-one banks militate against such a change,” said Gregory Kronsten-led team at FBNQuest Research.

They noted that though the assets under management (AUM) of the Nigerian regulated pension industry increased by 23.7percent year-on-year in February to N7.79trillion ($25.5billion); they are growing at a reasonable rate yet, at just 6.9percent of 2017 GDP, running well behind many emerg-

Continued from page 4

Seplat Petroleum Development Company Plc, Shoreline Natural Resources, among others.

Many banks exposed to the oil and gas sector will be happy to see the resumption of TFP. Up to 15 oil fields, producing about 250,000 barrels per day are connected to the TFP. Shell is estimated to be pumping roughly 50,000BOPD crude it currently produces in its operated Western Niger Delta fields (held in Joint Venture with NNPC, TOTAL and ENI) through the facility.

The crude is exported out of the country from the Forcados Terminal.

Also linked to the field is the six Joint Ventures that NPDC has with Nigerian independents (Seplat, Shoreline Natural Resources, Neconde, Elcrest E&P, NDWestern and First Hydrocarbon Nigeria).

Marginal field operators; Pillar Oil, Energia, Platform Petroleum, and Midwestern Oil are also linked to the TFP, although the marginal field operators have an alternative evacuation route, through the ENI operated Kwale to Brass pipeline.

F ro m Fe b r u a r y 2 0 1 6 t o March 2017, the TFP suffered from three different attacks resulting in zero exports from the facility, a situation that badly impacted on the operations of companies linked to the pipeline and resulted in many banks having to restructure their oil and gas loans advanced to these companies.

The pipeline came back on stream after March 2017 and this has seen production in many of these companies recover. ing markets. PFAs had 9.25 percent of AuM or N734.5 billion invested in equities as at March 2018.

“The industry’s holdings of FGN paper amounted to 70.37 percent of their AUM in March, compared with 72.3percent one year earlier.

The beneficiary has been domestic equities, the share of which gained 1.9percent over the 12-month period.

“PenCom’s latest data do not point to a surge of investment in domestic equities. The NSEASI rose by 71.1percent in the 12 months to end-February while AUM in the asset class increased by 54.8percent over the same period,” according to FBNQuest Research.

“The Nigerian equities market is unlikely to post a high doubledigit return in 2018. However, we think modest returns can still be achieved in 2018. For instance, sustained recovery in the broader economy - driven by higher oil prices which have helped to bolster Nigeria’s current account - points to a bullish outlook”, said the Kayode Tinuoye-led team of research analysts at United Capital Plc.

Thursday 24 May 2018

C002D5556

NEWS

BUSINESS DAY

39

Buhari yet to receive 2018 Appropriation Bill - Udoma TONY AILEMEN, Abuja

F

ederal Executive Council (FEC) Wednesday expressed worries that the recently passed 2018 budget was yet to be transmitted toPresidentMuhammaduBuhari for his assent.

Ministerofbudgetandnational planning, Udoma Udo Udoma, stated this while briefing Stare House correspondents after the weekly FEC meeting presided over byPresidentMuhammaduBuhari.

The minister, while fielding questions, said a week after the 2018 budget was passed by the two chambers of the National Assembly, President Buhari was yet to have it transmitted to him for assent.

Udoma said the delay would negate the impact the budget wouldhaveontheeconomy,even thoughthegovernmentwasready to cushion the shocks that might arise as a result of the delay in the passageofthe2018budget,which was described as the longest ever.

Theministerdismissedclaims credited to him in the media that President Buhari would not sign thebudget,saying,“ThePresident is yet to receive the budget, it is therefore impossible to make a statement about the budget that has not been received.

“Once we get it, we will work very quickly on it. When it is submitted, I am sure the National Assembly themselves will inform Nigerians.”

The budget minister noted that despite challenges, the economywaslookingupwithacurrent GDPgrowthrateof1.95percentin the first quarter of 2018.

AccordingtoUdoma,theGDP of the economy would peg at 3.5 percent despite these short comings by the fourth quarter of 2018, adding that the foreign reserves were also growing at a steady pace pegging at $47 billion as of May 2018.

The 2018 budget, it would be recalled, was passed by both Houses of the National Assembly on May 16, 2018 about six months after it was submitted by Buhari on November 7, 2017, with the budget figure raised from N8.6 trillion to N9.1 trillion Minister of interior, Abdulrahman Danbazzau, also said FEC approved consultancy service for the construction of technology building, meant to accommodate data communication, command andcontrolcentre,tobemanaged byNigeriaImmigrationService,at the cost of N582 million.

AccordingtoDanbazzau,“We realisedwhenwefirstcameinthat we have a lot of data which was being handled by service providers engaged in the Public Private Partnership (PPP) arrangement.

The data involves that of passport issuance, visa issuance and residence permits.

“So, we are bringing all that together in the interest of national security under the control of Nigeria Immigration Service, contrary to what has obtained in

the past whereby all the service providers have been handling the databases. This is contrary to the interest of national security.

The total cost of the consultancy service is N582,838,449.39 plus five percent vat at the completion period of 23 months.

“So we intend to have that which we will have total control of all the databases that has to with passports, visas and work permits.”

Minister of transportation, Rotimi Amaechi, said the Council approvedtwomemoshepresented, saying, “The two memos are Local Jajamata River Port Complex we are trying to construct.

The port is nearing completion so we are just buying the equipment Cargo clearance.

“So, I got approval for the procurement and installation of 64 tons capacity mobile crane that will help in cargo movement from the vessels to the port at the cost of€N3.5millionandanothercomponent of N203 million and N69 million for training. All together it came to N1.6 billion as the cost for the equipment.

“Also Council approved a transactional adviser to advise us on the following railway projects: Port Harcourt-Maiduguri. I have consistently said the State capitals these trains will run across will be Port Harcourt-Abia-OwerriUmumahia-Enugu-AkwaAbakilikii-Makurdi-Lafia-JosBauchi-Gombe-DamaturuYola-Maiduguri.

Kwara posts 70% revenue increase to N7.7bn SIKIRAT SHEHU, Ilorin

K

wara State Internal Revenue Service (KWIRS) on Wednesday disclosed that it had generated N7.7 billion between January and April 2018, with 70 percent increase when compared with the revenue generated same period last year.

Murtala Awodun, chairman, KWIRS, who made the disclosure in Ilorin at the quarterly media parley held at the Ministry of Information, attributed the increase to restructuring of the agency in the last quarter of 2017, in a bid to increase effective service delivery.

According to Awodun, the N7.7 billion revenue generated was against N7.4 billion generated in the first four months of 2017, adding that the N7.7 billion generated marks a 70% increase over that of 2017.

Giving the monthly analysis, he said: “The sum of N2.2 billion

was generated for the month of January, N2.3 billion for February, N1.8 billion for March and N1.29 billion for April as against the total sumofN11billiongeneratedatthe first quarter in the year 2017.”

Awodunpositedthattheagencyalsoembarkedonrestructuring, training and retraining of middle and lower management staff to focus on appropriately towards growth in the revenue generation and ensure improved economic development of the state, In order to give back to the community, the KWIRS boss also disclosed that the agency in the last four months had embarked on various Community Impact Programmes.

The community impact activities in the last four months include; “renovation of marriage registry, distribution of books to pupils of schools in the Kwara North Senatorial District,clearing of drainages around Tanke area,

Edo Assembly summons NDDC commissioner over alleged projects’ abandonment IDRIS UMAR MOMOH, Benin

T

he Edo State House of Assembly has summoned Saturday Uwuelekhue, commissioner, representing Edo State on the board of the Niger DeltaDevelopmentCommission (NDDC), over alleged abandonment of road projects in the state.

The summoned was sequel to a motion of urgent public importance moved by the majority leader of the House, Roland Asoro, alleging that the commission had abandoned the BeninAbraka road.

According to Asoro, the Benin-Abraka road leading to some Orhionmwon communities has

gone bad, making transportation impossible for farmers to move their produce to the city centre due to the poor state of the road. ‘’The aim of the commission is to develop the Niger-Delta region and rehabilitate the roads.

A lot of road projects embarked upon by the NDDC have all been abandoned.

“For the past four years, the road has been in bad shape. The road is also connecting Edo and Delta,’’ he said.

He however urged the commission to embark on the rehabilitation of the road, and urged the House to prevail on the NDDC to complete the road and all other ongoing projects in the state.

contributionofendowmentfunds totheforthcomingconvocationof theKwaraStateUniversity,Malete and donation of vehicle to the National Union Road Transport Workers (NURTW).”

Others, according to him, are, “Sponsoring of symposium at KWASU, donation of borehole to Ifelodun community in Alagbado area, as well as clearing of Yoruba road market.”

Awodun, while appreciating the response from the taxpayers in the state noted that it had been very encouraging, just as he appealed to the people to continue with their cooperation.

He pointed out that the revenuecourtremainedthelastoption foralltaxdefaulter,notingthat,two banks (Skye Bank and FCMB) operating in Ilorin metropolis were sealed off recently and charge to court for withholding tax on bank interest.

L-R: Haruna Jalo-Waziri, MD/CEO, Central Securities Clearing System (CSCS) plc; Tinu Awe, executive director, Nigerian Stock Exchange (NSE); Bayo Olugbemi, non-executive director, CSCS, and Roosevelt Ogbonna, non-executive director, CSCS, at CSCS shareholders dinner in Lagos.

NNPC promises to pay N2.1bn outstanding debt to NPA AMAKA ANAGOR-EWUZIE

N

igerian National Petroleum Corporation (NNPC) has assured the Nigerian Ports Authority (NPA) of its readiness to pay up all the outstanding debt owed to the authority from 2017 to date.

According to a statement from the NPA, the total debt estimated at about N2.1 billion for services rendered by the NPA to the Corporation, are to be settled this week.

The statement also said the NPA had assured that henceforth the NNPC would not be charged by the authority for services not offered to the Corporation in order to foster better working relationship with the Corporation.

These were part of the outcome between Hadiza BalaUsman, managing director of the NPA, and Maikanti Baru, group managing director of NNPC, when the management of NPA paid a courtesy call on the NNPC in Abuja on Tuesday.

While assuring that the NNPC would subsequently ensure steady and prompt payment for services rendered to it by the Authority, the Corporation said it may be constrained to approach the NPA Board for a soft landing on the payment of legacy debts the Corporation owes the NPA, some of which have been outstanding for more than 20 years.

Bala-Usman said her visit to the Corporation was borne out of the desire to strengthen the syn-

ergy and collaboration between both Agencies.

According to Bala-Usman, with the planned dredging of the Escravos and Ejigbo area in Lagos, there was a need for the Corporation to bury its pipelines deeper to allow for effective dredging activities to enable deeper draft for bigger vessels to access Warri and Lagos in a bid to enhance the supply of petroleum products and other larger vessels coming into the country.

Baru commended the NPA for securing the approval of the Federal Executive Council (FEC) for the dredging of the Escravos channel, stressing that the feat would go a long way in stimulating economic activities in the area.

Transcorp Hotels wins big at tourism transport summit

T

he National Tourism Transport Summit and Expo has awarded Transcorp Hotels plc with three awards of excellence, including the Outstanding MICE hotel in Nigeria (Transcorp Hilton); Outstanding international city hotel (Transcorp Hilton), and the outstanding leadership in hospitality operations and management qualities award, given to MD/CEO, Transcorp, Valentine Ozigbo.

The National Tourism Transport Summit and Expo Gala Nite Award is the pinnacle of recognition for excellence, given to individuals and industries that have distinguished themselves in the area of hospitality services and promoting tourism locally and internationally.

The awards, presented at a

ceremony, held at the LagosOsun Hall of Transcorp Hilton, Abuja, on Tuesday night, attracted A list dignitaries across Nigeria.

Transcorp Hotels beats other nominees in the hospitality category, to clinch the three awards.

Its exceptional hospitality services have resulted in the hotel emerging a top giant in the hospitality industry.

Receiving the awards, the CEO of Transcorp Hotels, Ozigbo, thanked the organisers for the recognition noting that he is proud to work with the best team in the hospitality business. He dedicated the awards to his team members who he said works tirelessly to ensure that nothing is spared in ensuring that customers satisfaction.

“In Transcorp Hotels, we’re not only serving our customers, but selling the city. We’ve been putting together tourism destinations. Our job will be made easier when the government plays their role,” he said.

He also recalled the strides of a former governor of Cross River State, Donald Duke in marketing the tourism potential of that state, which eventually etched the Obudu Resort and other sites in the state on the global map.

Ozigbo also used the opportunity to appeal to relevant ministries and agencies of government at the Federal and State levels to spearhead the marketing of the tourism sector in Nigeria, saying doing so would help in leapfrogging the sector into a major revenue earner.

Insecurity: Senate asks security agencies to submit supplementary budget in 2 weeks OWEDE AGBAJILEKE, Abuja

A

week after passing the N9.120 trillion 2018 budget, the Senate has asked service chiefs and heads of paramilitary agencies to submit special funding requests within two weeks.

This followed a closed-door session on Wednesday, which lasted for over four hours.

Senate president, Bukola Saraki, who announced the resolutions at the end of the meeting, equally deliberated on the lack of coordination among security agencies as a key factor in the failure to quell the incessant killings

and kidnappings.

Saraki said the Senate had resolved to accord priority to all bills thatwouldstrengthenthesecurity architecture of Nigeria, saying the specialfundingrequestswouldbe in the form of a Supplementary Budget.

He, however, disclosed that theSupplementaryBudgetwould be different from the $1 billion approved by the President to the military some weeks ago to tackle insecurity and release of $496 million to the United States government for the purchase of 12 Tucano aircraft.

He said: “The Senate in a closedsessionreceivedbriefsfrom the Chief of Defence Staff, the Di-

rector General of the Department ofStateServices,representativesof theComptrollerGeneralofImmigration, Inspector General of Police and the Comptroller General of Customs on the proliferation of dangerous arms, spate of killings and kidnappings by hoodlums across the country.

“Thereafter, they answered questions from Senators bothering on security, insurgency, terrorism, kidnapping and other national security matters.

“On the whole, we decided that on our part, certain outstanding bills or protocols that needed to be fast-tracked, be addressed immediately to see that they are passedassoonaspossibleinorder

to strengthen the nation’s security architecture.

“Secondly, the Senate observed the issue of underfunding of security agencies and agreed that there is need for special funding for them to be able to carry out their mandates. Therefore, we gave the security chiefs two weeks topresenttheirownbudgetonthis area of special funding to the National Assembly, which we think willgoalongwayinimprovingthe security situation in the country.

“Our great concern also was the issue of coordination among the security agencies and on this note, we resolved to find ways to strengthen that aspect of security through constitutional means.

Thursday 24 May 2018

FT

C002D5556

BUSINESS DAY

FINANCIAL TIMES Global equities hit

by US-China trade deal doubts

A1

Malaysia: The obstacles to dismantling the old regime

Page A3

Page A4

World Business Newspaper

Donald Trump blames China for problems with Kim summit

Remarks heighten pressure on Beijing and seek to absolve US over nuclear talks BRYAN HARRIS AND CHARLES CLOVER

D

onald Trump has blamed China for the possible delay or cancellation of a much-heralded summit on June 12 between the US president and North Korea’s Kim Jong Un. The US leader on Tuesday suggested that a meeting between Chinese President Xi Jinping and Mr Kim earlier this month was behind a renewed bout of acrimony from Pyongyang, which has thrown the mooted summit in Singapore into jeopardy.

For analysts, the remarks by Mr Trump are an attempt to ratchet up pressure on Beijing and absolve his own administration from claims that it undermined the meeting with loose talk.

“I will say I’m a little disappointed, because when Kim Jong Un had the meeting with President Xi in China . . . I think there was a little change in attitude from Kim Jong Un. So I don’t like that. I don’t like it from the standpoint of China,” said Mr Trump, referring to a meeting between Mr Xi and Mr Kim in the Chinese city of Dalian earlier this month.

Mr Trump then added that the ChinaNorth Korea border — a vital trade route for the reclusive regime — had recently “opened up” despite US efforts to economically isolate and punish North Korea.

“Every time I talk to China about trade, I’m thinking about the border.

Because that border is a very important element in what we’re doing,” he said.

Mr Trump hopes that the proposed landmark summit with Mr Kim will lay the foundation for the denuclearisation of North Korea.

However, concerns are growing that the summit may be cancelled after Pyongyang last week reacted angrily to demands from John Bolton, US national security adviser, for a Libya-style denuclearisation process.

The “Libya model” of cash-for-weapons is known to infuriate North Korean officials, who view it as ultimately responsible for the overthrow and murder of Libya’s leader Muammer Gaddafi in 2011.

“Trump is now blaming China for intervening and changing the North’s attitude. But the change in attitude was caused by Washington’s hawks, such as John Bolton. Their remarks went too far,” said Kim Joon-hyung, a South Korean presidential adviser.

China’s foreign ministry spokesman Lu Kang noted on Wednesday that preparations for the summit were still ongoing.

“The current political settlement of the peninsula issue faces a rare historical opportunity. We especially hope that the parties concerned, especially the United States and the DPRK, will seize the opportunity to go in the same direction and balance their concerns,” he said.

China is responsible for more than 90 per cent of North Korea’s trade, much of which is conducted over the land border between the two neighbours.

Earlier this week, Mr Trump on Twitter urged China “to be strong & tight on the Border of North Korea . . . The word is that recently the Border has become much more porous and more has been filtering in”.

Kim Jong-bong, a former South Korean intelligence officer, said: “During the meeting between Xi and Kim in Dalian, Xi is reported to have assured the North of economic support even if the summit with the US ends in failure.”

“So from Trump’s point of view, even though he succeeded in bringing the North to the dialogue table with the ‘maximum pressure’ campaign, China’s intervention has changed Kim Jong Un’s attitude.”

Shi Yinhong, a professor at Renmin University in Beijing, said it was possible the meeting in Dalian with Mr Xi “made Kim Jong Un feel like he was in a stronger position to threaten to cancel the summit”.

US Congress rolls back parts of post-crisis bank rules Changes to Dodd-Frank aim to provide relief to small and mid-sized institutions BARNEY JOPSON

U

S lawmakers have voted for the biggest changes to financial regulation in eight years, approving a bill that would give banks outside Wall Street’s top tier respite from rules designed to prevent a repeat of the last crisis.

The US House of Representatives passed legislation making targeted changes to the 2010 DoddFrank act on Tuesday, two months after it was approved by the Senate.

It will now be sent to President Donald Trump for his approval.

A White House official said the administration wanted the legislation to be signed into law “as soon as possible”.

The bill, passed by 258 to 159, is seen by some as Congress’s most significant accomplishment since tax reform last year. But it does not come close to dismantling DoddFrank, a cause Mr Trump championed in his election campaign.

Instead it makes narrow changes that mostly benefit small and mid-sized banks. Because it mainly granted relief to Main Street finanContinues on page A2

Donald Trump

US has more than 5,600 banks. Consolidation is coming Regulatory rollback passed by Congress this week is one of several spurs to M&A BEN MCLANNAHAN

T

he US’s banks have largely sat out the mergers and acquisitions wave of recent years. While deal records have fallen in almost every other sector, big banks have done almost nothing, shrinking rather than expanding. And merger activity among small and mid-sized banks — some 5,607 of them, at last count — has been subdued.

But when Fifth Third Bancorp of Cincinnati revealed its $4.7bn swoop for Chicago’s MB Financial on Monday morning, shares in other Chicago-area banks began to move, too. Wintrust, a similar-sized bank based in Rosemont, Illinois, ended the day up almost 4 per cent, while First Midwest of Itasca closed up 3 per cent.

The implications were obvious: after years of thin activity in bank M&A, this deal could mark a turn.

The conditions for dealmaking look better than at any time since the financial crisis. Higher interest rates and lower taxes have pumped up bank profits, giving management teams stronger platforms from which to contemplate doing something radi-

cal. Data released on Tuesday by the Federal Deposit Insurance Corporation showed that net income across the banking industry rose 27 per cent from a year earlier in the first quarter, to a record $56bn.

Shareholder activists have also begun to flex their muscles, calling for fresh ways to boost returns at Ally Financial, Comerica, Citigroup, Morgan Stanley and Regions Financial, among others.

And then — most importantly — there is the shifting regulatory landscape.

For much of the post-crisis period, agencies generally frowned on any transaction that might make a bank bigger, more complex and tougher to police. Several proposed combinations were abandoned because regulators took too long to approve them, among them New York Community Bancorp’s bid for Astoria Financial and Investors Bancorp’s move on The Bank of Princeton. A $5.3bn tie-up between M&T Bank of New York and Hudson City Bancorp of New Jersey took more than three years to limp over the finish line.

Now, under the administration of Donald Trump, there are clear signs

that attitude is changing. Last year, the Federal Reserve made it easier for banks to merge by lifting the combined size threshold that would trigger a much deeper regulatory probe, from $25bn in assets to $100bn.

On top of that, the Fed is considering a change to the way it grades banks’ management teams, moving from a fivepoint to a four-point scale. In practice, said Rodgin Cohen, senior chairman at Sullivan & Cromwell, that may mean many managers will be bumped up from a grade 3 (“less than satisfactory”) to a grade 2 (“satisfactory”). In the past, a three-rating has been an effective bar on doing deals, keeping many would-be acquirers on the sidelines.

Another spur to consolidation comes with the new bank-relief bill passed on Tuesday by Congress, which is set to free small and mid-sized lenders from many of the restraints that apply to the trillion-dollar banks such as JPMorgan Chase and Bank of America.

The most obvious “winners” are regional banks in the $50bn-in-assets to $100bn bracket, said Quyen Truong, a Washington-based partner at Stroock & Stroock & Lavan.

World Bank approves first pandemic facility grant to fight Ebola in DRC JOHN AGLIONBY

T

he World Bank is to disburse money for the first time from its Pandemic Emergency Financing Facility to help contain the spreading outbreak of Ebola in the Democratic Republic of Congo.

The $12m grant is being combined with the reallocation of the international agency’s $15m three-year investment in disease surveillance in DRC to the government’s three-month $56.8m Ebola response plan. This means the plan is now fully funded, the World Bank said in a statement.

The current outbreak of Ebola began several months ago but was first reported to the World Health Organisation on May 8. It entered a new phase last week when it spread to a large city, Mbandaka, for the first

time. As of Tuesday evening 50 cases have been reported, of which 27 have proved fatal.

The pandemic facility was set up by the World Bank, Japan, Germany, the WHO and some private sector partners in the wake of the 2014-16 west Africa Ebola outbreak which resulted in 11,600 deaths from 28,000 infections. It became operational last year and consists of cash and insurance components.

This grant comes from the cash section, which is designed to enable tens of millions of pounds to be disbursed quickly. The insurance facility allows much larger payouts but can only be used if an outbreak has spread to more than one country and more than 250 deaths have been recorded.

Gerd Müller, Germany’s minister for economic cooperation and devel-

opment, said the decision to disburse the money “would not have been possible even a year ago”. “It sends a strong message that we can act in a swift and bold manner against a serious infectious disease threat,” he said.

Jim Yong Kim, the World Bank president, said the facility “shows that we have learned some of the stark lessons of the deadly 2014 Ebola outbreak and are well on our way to stopping the cycle of panic and neglect”.

“It is a critical part of our effort to ensure that money does not hold back effective pandemic response,” he said.

Another innovation in the response to this Ebola outbreak is the use of an experimental vaccine, supplied by Merck, the US drug manufacturer.

Some 7,500 doses have been sent to DRC and health workers began to administer them on Tuesday.

A2

BUSINESS DAY

C002D5556

NATIONAL

FT

Trump casts doubt on terms of China trade deal Beijing’s demand that White House softens stance on ZTE has met with Republican opposition CAT RUTTER POOLEY

D

onald Trump appeared to call into question the terms of a trade deal with China on Wednesday, hinting that it may be too difficult to conclude in its current form.

In an early morning tweet, the

Thursday 24 May 2018

US president wrote that while negotiations were “moving along nicely . . . in the end we will probably have to use a different structure [for the deal] in that this will be too hard to get done and verify results after completion”.

Washington and Beijing have been edging closer to a deal, with

the Trump administration announcing on Sunday that it was putting on hold threatened tariffs on up to $150bn in Chinese imports* and China pledging to increase imports of US agricultural goods.

The White House is also in the process of negotiating a deal to lift sanctions against ZTE, the

Shenzhen-based group accused of selling sensitive technologies to Iran and North Korea, which the Chinese president Xi Jinping has made a condition of a broader trade agreement.

The softening of the administration’s stance on ZTE has invoked the ire of Congressional Republicans, led by Florida Senator Marco Rubio, who on Wednesday said on Twitter

he had “urged [Mr Trump] to follow his initial instincts on China and listen to those in his administration who understand that a short term trade deal that sounds good but poses long term danger is a #Bad Deal”.

Mr Rubio added: “I don’t understand how they can push for a deal that lets [ZTE] keep operating in the US”.

US Congress rolls back parts of post-crisis bank...

Barclays explores mergers with rival banks

Continued from page A1

Private talks with StanChart form part of contingency plans after investor pressure

cial institutions, the bill gained support from some moderate Democrats as well as Republicans.

“Even though it is narrow and targeted, it’s a substantive reform,” said Brandon Barford, a partner at Beacon Policy Advisors. “It is a very distant second to tax reform. But in the absence of any substantive healthcare reform or infrastructure legislation or energy changes, this is what we’re left with.”

Leftwing critics say the new legislation goes too far in rolling back bank rules.

It gives banks with less than $250bn in assets a chance to escape some or all of Dodd-Frank’s core provisions, including stress tests, capital and liquidity requirements and living wills, said Dan Ryan, banking leader at PwC, an accounting firm.

“After today, the major provisions of Dodd-Frank will apply to only 13 US institutions,” he said.

“It’s a good day to be a bank, or a bank shareholder.” The US has more than 5,000 banks but the 13 largest account for roughly 50 per cent of the sector by assets and deposits, Mr Ryan noted.

The Dodd-Frank act was one of President Barack Obama’s signature achievements, a sweeping set of restrictions on the financial sector aimed at preventing a repeat of the 2008-09 mortgage meltdown.

Chart showing the three of 16 Dodd-Frank titles Congress has rolled back — financial stability regulation, Volcker rule & bank capital requirements and mortgage lending rules The new bill’s most significant provision raises the asset threshold at which the toughest regulations kick in from $50bn to $250bn. It does, however, give regulators at the Federal Reserve the option to maintain strict supervision of banks in the $100bn to $250bn bracket.

Americans for Financial Reform, a group opposed to the bill, disputed the Republican argument that no bank under $250bn poses systemic risks, noting that 25 of them had received bailout money totalling almost $50bn during the last financial crisis.

Lisa Donner, AFR’s executive director, said: “This legislation ignores the lessons of the financial crisis that cost so many Americans their jobs and homes, and pays no heed to the overwhelming majority of voters who correctly understand the need for tougher, not weaker, oversight of the financial services industry.”

MARTIN ARNOLD, PATRICK JENKINS

B

Vincenzo Boccia, president of Confindustria. ‘We cannot take for granted that this favourable condition, this privileged position in the club of advanced economies will remain unchanged regardless of the choices we make.’ © EPA

Italy business urges no weakening of Europe ties Industrial lobby group says nation needs trade as investor fears over government grow JAMES POLITI AND JIM BRUNSDEN

T

he head of Italy’s largest business lobby group has said the country’s advanced economy status would be at risk if it cut ties with Europe and resorted to protectionism, in a stark warning to the two populist parties on the verge of forming a government in Rome.

“We are a great industrial country, which is a source of national pride. But nothing is forever,” Vincenzo Boccia, the president of Confindustria, said at his organisation’s annual assembly on Wednesday. “We cannot take for granted that this favourable condition, this privileged position in the club of advanced economies will remain unchanged regardless of the choices we make.”

His warning followed a sell-off in Italian debt this week as investor concern grew about an impending government alliance between the anti-establishment Five Star Movement and the far-right League.

Giuseppe Conte, a little-known academic who has been proposed by the parties as prime minister, was due to hold talks with President Sergio Mattarella on Wednesday evening, ahead of a possible mandate to form a government.

Many in Italian business have long feared a Five Star-League government, whose joint platform is laced with economic nationalism and challenges the EU monetary, fiscal, regulatory and trade regime that has been the bedrock of the country’s economy for decades.

Mr Boccia had said before his speech that he was ready for

“dialogue, openness and 360-degree collaboration” with the new government. But he said the business community would also send “clear messages” to the country’s prospective leaders.

In his speech Mr Boccia said Europe was “essential” to Italy.

“We can criticise it for what it fails to do, for the slowness of its decisions, the byzantine nature of its legislation and its [leaders] and we must push to do more and better,” Mr Boccia said. “But we cannot question the principle that only together we can keep generating wellbeing and social cohesion.”

He also said Italy should not abandon big infrastructure projects, including a high-speed rail link between Turin in Italy and Lyon in France, saying the country would suffer a huge loss of credibility.

Five Star, in particular, has attacked such projects as sources of corruption and environmental damage.

“Infrastructure is a factor of growth and investment for Italy but also part of a very big European project,” Mr Boccia said.

With Five Star and the League also vowing to challenge free trade deals negotiated by Brussels, Mr Boccia stressed Italy’s reliance on exports to faster-growing markets.

“We are a country lacking in raw materials: our vocation lies in transformation, our richness lies in exporting. If we suffocate these capacities, if we limit their potential, we damage the entire nation and heavily forsake our future,” he said.

Confindustria, which represents many blue-chip companies,

has not been an unabashed cheerleader for the EU in recent years — opposing regional banking regulations that it felt unfairly damaged Italian financial institutions.

But it has been frequently targeted by Five Star and the League for supporting economic reforms introduced under the incumbent centre-left government. The jobs market overhaul and other reforms were unpopular with many voters.

Five Star and the League won wide support in the March election because of dissatisfaction with the slow pace of economic growth and high unemployment, often blamed on constraints imposed

by Brussels.

Mr Boccia’s speech came as the European Commission sounded its latest alarm on Italy’s public finances — saying that while Rome was “currently” fulfilling its obligations under EU budget rules to try to rein in its debt, further efforts would be needed.

Italy’s debt stood at 132 per cent of gross domestic product in 2017.

“Our political message is very clear,” Valdis Dombrovskis, the commission vice-president responsible for the euro, said. “Italy needs to continue to reduce its public debt which is indeed second highest in the EU after Greece.”

Pierre Moscovici, the EU’s economy commissioner, also said that the debt is an “important question” facing the Italian people and that it needs a “credible response.” However, Five Star and the League have scoffed at such statements, dubbing them inappropriate interferences in Italy’s political debate.

arclays has been privately exploring a possible merger with rival international banks, including Standard Chartered, in response to pressure from an activist investor who has become one of its biggest shareholders.

The exploratory conversations are part of wide-ranging contingency planning being considered by senior board members in response to the pressure from Edward Bramson’s activist investment fund Sherborne, which recently acquired 5.4 per cent interest in the bank, people briefed on the talks said.

Two people close to the situation said John McFarlane, Barclays chairman, was keen on the idea of a combination with StanChart, at least in theory, and was supported by Sir Gerry Grimstone, who chairs its Barclays International unit.

One of the people said a private conversation had taken place between a director at each bank about the potential benefits of such a deal, but no formal or informal bid approach had taken place.

One senior banker involved in the potential deal said: “John [McFarlane] has a real affinity for Standard Chartered.” Another said of the potential deal: “It would be logical but I’d be very surprised if anything came of it.”

Barclays shares opened lower after the Financial Times reported the discussions, dropping 0.9 per cent to 208.55p before a small recovery in midday trading. StanChart was up more than 2 per cent at the open, rising to as much as 787.3p before paring gains.

The possible combination with StanChart, which has a £25bn market capitalisation, is only one of many options being “kicked around” by Barclays directors in response to Mr Bramson’s intervention. Barclays and StanChart declined to comment.

Jes Staley, chief executive of Barclays, met Mr Bramson in New York earlier this month and was told by the activist investor that he was still finalising his strategic proposals for the bank.

One person who knows Mr Bramson well said he was likely to call for Barclays to return to shareholders much of the £25bn of capital tied up in its corporate and investment banking division by shrinking the long-underperforming unit.

Contingency plans discussed by some Barclays directors include: ways to return more capital to shareholders; options to expand the bank’s ringfenced UK business; and “hypothetical combinations” with a range of other banks, including Deutsche Bank, Credit Suisse and DBS in Singapore There has been no formal discussion of the potential combination with StanChart on the Barclays board, said one of the people briefed on the situation, who added that it had not been the subject of any detailed work or been discussed between executives and non-executives of the bank.

Thursday 24 May 2018

C002D5556

BUSINESS DAY

A3

FINANCIAL TIMES

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Global equities hit by USChina trade deal doubts Turkish lira rallies after country’s central bank lifts interest rates DAVE SHELLOCK

W

hat you need to know • Doubts over US-China trade deal unsettle global equities • “Core” government bonds, yen and Swiss franc rise • Turkish lira rallies after central bank raises interest rates • Political uncertainty puts Italian assets back under pressure • Sterling and gilt yields drop after UK inflation surprise Overview Fresh doubts about the terms of a US-China trade deal, renewed uncertainty about Italy’s political outlook and disappointing economic data out of Japan and the eurozone helped fuel a “risk-off ” session for global markets.

Equities sold off virtually across the board, government bond prices in the US, Germany and the UK rose steeply, and the yen and Swiss franc outperformed.

The Turkish lira remained in the spotlight as it fell as much as 5.4 per cent to a record low against the dollar before rallying sharply late in the day after the country’s central bank raised interest rates.

The negative mood on Wall Street came after President Donald Trump cast doubt over current trade negotiations with China, hinting that it may prove too difficult to conclude a trade deal in its current form.

“The certainties of earlier in the week have ebbed away, and what’s worse is that new worries have arrived to concern investors,” said Chris

Beauchamp, chief market analyst at IG. “Signs of detente between the US and China have decreased, reviving the great trade war fear, while the deterioration in Japanese and eurozone purchasing managers’ indices have sent chills down the spines of those hoping that the synchronised global expansion had further to run.”

Marco Valli, head of macro research at UniCredit, said the pace of the eurozone growth deceleration could make the European Central Bank more cautious.

“We still expect the end of quantitative easing in December, but a policy normalisation that until a couple of months ago was almost on autopilot has become much more data-dependent.”

Meanwhile, participants remained nervous about the potential market tensions that could be provoked by the new Italian government might provoke. The spread between Italian and German 10-year bond yields rose above 190 basis points, the highest since June 2017, as the yield on benchmark Italian paper rose as high as 2.455 per cent.

Sterling hit its lowest point against the dollar since November — and the two-year gilt yield fell 6 basis points to 0.77 per cent — after data showed a surprise fall in UK inflation last month.

However, the FTSE 100 index fell despite the pound’s dip.

Forex and fixed income The Turkish lira finally gained some respite after the country’s central bank sharply raised one of its primary lending rates as it looks to stem the lira’s dramatic decline this year.

Oil companies in new rush to secure North Sea drilling rights Basin ‘is back’ says regulator as 123 licences are offered in latest round SYLVIA PFEIFER

T

he North Sea “is back” after a “transformational” licensing round in which more than 60 companies secured rights to explore for oil and gas in one of the world’s most mature basins, the UK industry regulator said on Wednesday.

A total of 123 licences were offered to 61 companies in the regulator’s 30th offshore round to a range of companies including Royal Dutch Shell, BP, France’s Total and several smaller groups.

“The UK continental shelf is back,” said Andy Samuel, chief executive of the Oil and Gas Authority. “Big questions facing the basin have been answered in this round. Exploration is very much alive with lots of prospects generated and new wells to be drilled.”

The North Sea was hit hard by the oil price crash that began in mid-2014 because it has been one of the most expensive places in the world from which to extract oil and gas. But the basin is rebounding as prices have recovered.

The 30th offshore licensing round focused mainly on previously explored or “mature” areas of the North Sea. The number of licences awarded was marginally fewer than in the last round to focus on mature areas, in 2016, but the Oil and Gas Authority

described it as “transformational” because companies have made firm commitments to drill eight exploration or appraisal wells and carry out nine new 3D seismic surveys.

Fourteen of the licences will be advanced immediately to the field development planning stage.

The Oil and Gas Authority said it hoped the licensing round will unlock 320m barrels of oil equivalent in about a dozen previously “stranded” or undeveloped discoveries.

Although development activity in the North Sea has rebounded and several companies have committed significant amounts of capital expenditure to the basin following the price crash of 2014, exploration drilling has slumped until now.

“There is a real sign of confidence,” said Mr Samuel. The results of the licensing round had demonstrated that exploration was not dead in the North Sea, he added.

Kevin Swann of Wood Mackenzie, the consultancy, said: “The UK is in desperate need of new projects to fill a development pipeline that is all but empty beyond the early 2020s, and 14 new pre-[final investment decision] projects could go a long way to rectifying that.

“The eight firm exploration wells among the awards, with big companies like Shell, BP, Equinor and ConocoPhillips among those set to drill, is a big vote of confidence in the UK.”

African nations’ debt costs at levels last seen before write-offs

Historic debt forgiveness programme ‘has failed’, says rating agency S&P KATE ALLEN

T

he interest costs on subSaharan African countries’ debt have returned to levels last seen before the debt forgiveness programme of the early 2000s, a sign that the initiative has “failed to permanently reduce debt-service burdens”, according to credit rating agency S&P Global Ratings.

The highly indebted poor countries and multilateral debt relief initiatives were developed by the World Bank, the International Monetary Fund and other creditors from 1996 onwards.

They aimed to reduce the debt of some poor countries in acknowledgment of the fact that they were unlikely to be able to repay in full.

In total 11 countries were relieved of $99bn of debt, cutting their government debt from an average of 100 per cent of GDP to around 24 per cent by 2008.

Burkina Faso, Cameroon, Congo-Brazzaville, Democratic Republic of Congo, Ethiopia, Ghana, Mozambique, Rwanda, Senegal, Uganda and Zambia all benefited.

The programmes were “also arguably a bailout for creditors”, S&P said in a new report.

However in the past seven years the average government debt stocks of the countries involved in the programmes have risen from 18 per cent of GDP to 53 per cent, with interest payments increasing from 4 per cent of government revenues to 11 per cent.

As a result, “fiscal accounts are burdened by the same or higher debt-service costs relative to government revenues as pre-[bailout],” S&P said. “There has been no improvement at all in this metric.”

Although the debt forgiveness initiative had succeeded in offering “respite [from debt]

for many years”, it has “failed to permanently reduce debt service burdens”, according to S&P, which also pointed to other concerning aspects of sub-Saharan African debt markets.

“We are seeing a higher share of borrowing from more costly commercial sources as well as from new, often more expensive, lenders such as China,” the report said.

“Countries have also been expanding their domestic debtmarket issuance, which is also typically more expensive than traditional concessional multilateral debt. Commercial terms, shorter tenors, higher interest rates and exposure to foreign exchange fluctuations are all contributing to debt-repayment risks.”

The increase in borrowing has been a “significant contributing factor” in a series of downgrades to the countries’ credit ratings in recent years, S&P warned.

Bovis shareholders rail against pay AIME WILLIAMS

U

K housebuilder Bovis has faced shareholder anger over high executive pay, with nearly two-fifths of investors refusing to back the company’s remuneration report.

Last year, the company was forced to compensate customers who were unhappy with the poor quality of their homes, and issued a profit warning.

In April 2017 Greg Fitzgerald left retirement to take to the helm at Bovis after his predecessor, David Ritchie, stepped down in January.

Bovis did not award former chief executive officer David Ritchie a bonus for 2017, but did award one to new chief executive Greg Fitzgerald. Mr Fitzgerald

received 200 per cent of his base salary, bringing his total pay to £1.4m.

Earl Sibley, the company’s group finance director, was handed an additional bonus of 15 per cent of his salary to bring his total pay for the year to £661,000 to recognise his “exceptional contribution” as interim chief executive. In 2016, Mr Sibley earned £371,000.

It is understood shareholders were concerned the over the remuneration committee’s decision to use discretion to raise Mr Sibley’s salary.

In a statement following the AGM, the company said it recognised a “significant minority” of shareholders had voted against the pay report, but that the remuneration committee has “consulted

extensively” with shareholders on its approach.

“In reaching its decision, the committee’s priorities were to ensure the directors’ remuneration arrangements were fully aligned with the business,” the company said in the statement, adding: “Going forward, the committee is committed to continuing an open dialogue with all shareholders.”

The revolt is not the first time shareholders have railed against pay at UK’s housebuilders this year, with Persimmon coming under intense pressure over its planned £130m bonus to its chief executive.

Persimmon faced fierce criticism from shareholders and politicians over high pay at a time when housebuilders are facing questions about shortages of supply.

A4

BUSINESS DAY

C002D5556

Thursday 24 May 2018

ANALYSIS FT Malaysia: the obstacles to dismantling the old regime New government must overcome scepticism to fulfil promises to curb corruption and introduce populist policies BEN BLAND

M

aria Chin Abdullah has faced death threats, detention without trial in solitary confinement and numerous police investigations, as she campaigned against corruption in her native Malaysia. She is still facing prosecution for illegal assembly and is banned from travelling to the state of Sarawak in Borneo.

Yet Ms Abdullah will today, as she has for the past two weeks, go to work as an MP for Malaysia’s new governing Pakatan Harapan (Alliance of Hope) coalition. The 61-year-old mother of three is a powerful symbol of everything that has changed since the electoral shock on May 9, when the ruling party was thrown out of power for the first time since independence in 1957.

After decades battling human rights abuses by Malaysia’s authoritarian governments, most recently that of former prime minister Najib Razak, she must now confront an arguably bigger challenge: dismantling the old regime and implementing root-and-branch reform in her role as an MP. “For 61 years, it was only criticism but now we have to implement what we say,” says Ms Abdullah.

“It’s a tall order as the new coalition is not all homogeneous. Ironing out our differences and the principles of our new democracy will take some years.”

The coalition rode a wave of anger against the perceived corruption of the Najib government. It represents one of the most dramatic, bloodless rejections of authoritarian rule in recent global politics, with the United Malays National Organisation — in power for more than 60 years — ousted at the ballot box. Even more remarkable is the fact that this reformist revolution was led by former strongman Mahathir Mohamad, prime minister from 1981 to 2003, in alliance with his protégé-turnednemesis Anwar Ibrahim.

As the initial jubilation fades, Mr Mahathir, 92, restored as prime minister, faces the monumental task of delivering on his coalition’s promises to repeal repressive laws, reform corrupt institutions and ensure a fairer division of the economic spoils.

Scepticism over his Damascene conversion to participatory democracy is only one of the many hurdles in front of his government.

During its long rule, UMNO bent the legal system, civil service and state-owned companies to its own ends. But the repression, electoral manipulation and allegations of corruption reached their zenith under Mr Najib, who has been banned from leaving the country after Mr Mahathir launched a new investigation into accusations that billions of dollars were misappropriated from the debt-ridden 1MDB state fund set up by Mr Najib.

If Mr Mahathir can get it right, this multi-ethnic nation of 31m people could become an example in a region beset by repressive governments, reversing a years-long brain drain and transforming the prospects of this emerging market, which has attracted a wide range of global investors.

But, from Myanmar to South Africa and Indonesia to Egypt, transi-

tions from authoritarianism to more democratic systems have proved difficult. Mr Anwar, the Pakatan Harapan figurehead freed from prison last week, is under no illusions about the challenge facing him — and Mr Mahathir — if he takes over as prime minister within one or two years, as planned. “I’m a student of history,” he says. “I realise how revolutions and people’s movements have disappointed the masses.”

He adds: “The central issue is still governance . . . and democratic accountability. We can’t have the election commission involved in a fraudulent exercise, we can’t have the judiciary acting at the behest of the government, we can’t have a media that’s being cowed.”

Even critics admit that Mr Mahathir has moved rapidly since he was sworn in on May 10 to start dismantling the system he helped create. The prime minister won a full royal pardon for Mr Anwar, who was first jailed under Mr Mahathir between 1998 and 2004 before he was imprisoned again under Mr Najib in 2015, and secured the departures of the attorney-general and head of the Malaysian Anti-Corruption Commission.

He has set up committees to advise on institutional and economic reforms, and to investigate 1MDB, from which at least $4.5bn was diverted and laundered, according to the US Department of Justice.

But suspicion remains. Although Mr Mahathir has appointed some leading civil society advocates and technocrats to these committees, he has chosen others, such as economic adviser and former finance minister Daim Zainuddin, who many Malaysians doubt are genuine reformers.

His cabinet also contains a mix of opposition stalwarts such as Wan Azizah Wan Ismail, the deputy prime minister and Mr Anwar’s wife, alongside more recent converts to reform such as Muhyiddin Yassin, a former UMNO heavyweight and now home affairs minister.

Many Pakatan Harapan supporters are giving Mr Mahathir a chance to prove he has changed his spots, after his marshalling of the disparate coalition parties and his popularity with rural Malay voters helped them to win the election against great odds. They say he must maintain the reform momentum in order to keep together his coalition, which includes his Malay-dominated party of UMNO defectors, Mr Anwar’s People’s Justice party and the ethnic Chinese-dominated Democratic Ac-

tion party.

“The new government has made a good start but they’re facing a huge task, particularly in terms of legal reform,” says Sevan Doraisamy, executive director of Suaram, a human rights group. Suaram is one of several organisations that waged a decadeslong battle to stop the UMNO government and the police using vague laws to crush dissent. Last year alone, his organisation documented 155 cases where people faced legal action that violated their freedom of speech and recorded 280 cases of detention without trial under heavily criticised laws.

Mr Doraisamy and other activists want the government to institute an immediate moratorium on the use of such laws, before they can be amended or repealed when parliament returns in the next few months.

Mr Mahathir showed his new colours by using Twitter to rebuke the police for arresting a man who criticised him on Facebook and promising to review the relevant law when parliament convenes.

Amanda Whiting, professor of Malaysian law at the University of Melbourne, says the problem goes far beyond the law itself to a “deeply entrenched” culture of intolerance for criticism and meddling in the judicial process.

“There needs to be a cultural shift, they can’t just change the laws,” she says. “There’s a complete lack of trust in some of the major public institutions like the attorney-general.

There are severe doubts about the probity of decisions made — and the willingness of senior people to bow to pressure — and these are under investigation now.”

This culture of corruption, collusion and nepotism has become deeply embedded in Malaysia’s bloated civil service, on which Mr Mahathir has promised to bring the axe, starting with the 17,000 political appointees who served under Mr Najib.

Wong Chen, a Pakatan Harapan MP, claims that up to 40 per cent of annual government spending, which is forecast to be $59bn this year, is lost to corruption and wastage, with previous UMNO governments readily handing out grants and contracts to friendly parties. “The path we need to take is clear,” he says. “The question is: do we have the will?”

The allegations of corruption increased markedly under Mr Najib, particularly surrounding 1MDB. At one point, $681m was paid into Mr Najib’s own bank account, in what he later said was a gift from Saudi royalty, most of which he said he

Maria Chin Abdullah, a harsh critic of the outgoing Najib government, is now a coalition MP © AFP

Najib Razak, the former prime minister, arrives at the Malaysian Anti-Corruption Commission headquarters in Putrajaya, on Monday © Bloomberg

repaid. He has always denied any wrongdoing over 1MDB. Mr Mahathir has gone after his predecessor with zeal, appointing respected anti-graft officials to a task force to investigate possible criminal charges related to the fund. He has authorised the police to conduct extensive searches at properties used

by Mr Najib and his family, with several hundred designer handbags and dozens of suitcases full of jewellery, cash and other valuables confiscated from one luxury apartment complex in Kuala Lumpur alone. Mr Najib’s lawyer has criticised the “cavalier and irresponsible” manner of the police conduct, but Mr Mahathir says the new government is following the rule of law, rather than seeking payback.

“If anyone made any mistake, the law will decide, but I’m not going to take revenge in any form,” said Shukri Abdull, the new head of the anti-corruption commission, on Tuesday. The former deputy head of the commission claimed that he was forced out of the organisation during Mr Najib’s reign after receiving death threats for pursuing the 1MDB case.

With debt coupons to be paid, Mr Mahathir is under pressure to move fast on 1MDB. New finance minister Lim Guan Eng says that the last government has injected nearly $1.8bn into 1MDB since April 2017 to cover debt service obligations.

“There are a lot of issues,” says one banker in Kuala Lumpur. “They need to identify where all the liabilities are, what shady deals have been done and what is the residual risk.”

But Peter Mumford, the Asia director of Eurasia Group, a political risk consultancy, argues that there is a limit to how far the new prime minister will go to tackle corruption.

“Mahathir needs to demonstrate he is cleaning up the system, but he will be cautious and selective in draining the swamp,” he says. “There are lots of skeletons in plenty of closets.”

The opposition’s anti-graft campaign message was popular because it linked anger at the high cost of living and wide social inequality to the alleged excesses of the Najib administration.In particular, Pakatan Harapan promised to abolish the 6 per cent goods and services tax introduced by Mr Najib in 2015, to praise from international economists who believed it was wise for the government to diversify its revenue base away from oil production.

The GST will be scrapped from June 1. But the government has yet to come up with concrete plans for how to replace the lost money — which was forecast this year to be around $12bn, or nearly a fifth of state revenues — or fund other populist pledges, such as reinstating some fuel subsidies and abolishing highway tolls.

BUSINESS DAY

C002D5556

NEWS YOU CAN TRUST I THURSDAY 24 MAY 2018

Insight

Companies and Allied Matters Act (repeal and re-enactment) Bill 2018

O

Limited liability partnerships and limited partnerships.

The Bill is further revolutionary as it brings limited liability partnerships (LLP) and limited partnerships (LP) (previously regulated only at state level, and that, only in a few states) within the framework of the Bill. As such, the Bill provides that an LLP will be a legal entity, which would be a body corporate and exist separately from its members.

Background

n 1 5 May 2018, the 8th Senate considered and passed the Companies and Allied Matters Act (Repeal and Re-enactment) Bill, 2018 (the Bill) after its third reading. The Bill was the result of a collaborative effort among the Senate and key stakeholders in the business community.

Shareholding and directorship of companies The Bill provides a framework for single shareholder companies, as well as single director companies.

Companies limited by guarantee In Nigeria, many charitable organisations are forced to set up as incorporated trustees, due to the fact that Companies limited by guarantee cannot be incorporated within the framework of CAMA without the consent of the Attorney General of the Federation. The Bill dispenses with this needlessly complex hurdle.

Incorporation issues Naming Recognising the utility of technological advancement, the Bill now statutorily recognises that applicants may reserve their names through electronic means. This arguably offers little by way of change, and serves as codification of established practice.

Re-Registration of Companies Recognising the previously scanty provisions on the reregistration of companies as: Ltd; Unltd; and/or; PLC, the Bill now expatiates on the provisions of the re-registration of companies, and provides a clear roadmap for advisers and companies when they choose to re-register at the Commission.

Common seal of the company The Bill recognises that for many companies, the common seal is a relic, especially as the rules of evidence do not require a seal in the strict sense. Accordingly, the Bill now makes it optional for a company to have a seal, the use of which is to be regulated by the Company’s articles.

Prohibition of trusts The current position in CAMA that precludes the entry of trusts in the register has been dispensed with by the Bill.

It is expected that the inclusion of trusts and similar arrangements in the register of members would enable a clearer articulation of shareholding and also empower the relevant tax authorities to trace the beneficial ownership of shares.

Shares Significant shareholding The Bill now provides that all shareholders with at least 5% shareholding in any company have an obligation to disclose to the company and with the concomitant requirement that it would be noted in the register of members and annual returns of the company in question.

Issued share capital The Bill marks a shift

from the concept of authorised share capital, in favour of minimum issued share capital – thus, at every given time, the relevant computation for the purpose of paying stamp duties and other relevant taxes are the actual shares being held by shareholders.

Share buy – backs The Bill has expanded the scope of situations where it is permissible for companies to buy back their shares. Irredeemable Preference Shares The Bill now prohibits the issuance of irredeemable preference shares.

This may be to avoid the issuance of shares that have the character of equity shares but are called preference shares only by name.

Issuance of Shares at a Discount The Bill now makes it unlawful to issue the shares of a company at a discount.

C o rp o rate g o v e rnance changes Auditors The Bill now includes provisions which exempt small companies from appointing auditors in certain limited circumstances.

Annual General Meeting In addition, small companies are no longer

mandatorily required to convene annual general meetings, in accordance with the Bill.

The Company Secretary The Bill makes its optional for small companies and those with one shareholder to choose whether or not to appoint a company secretary.

Accounting records The Bill now requires public companies to display their audited accounts on their websites, in order to ensure the public is kept informed.

In similar vein, parent companies are obliged to ensure their subsidiary companies keep proper accounting records, in accordance with the Bill.

Minority protection The Bill enhances minority shareholder rights, as they may bring derivative actions not only in respect of the company in question, but also in respect of its subsidiary companies.

Resolving insolvency The Bill introduces three new insolvency provisions, to wit: (i) Administration – (which differs from receivership as the administrators duty is owed to the company); (ii) Netting Provisions and (iii) company voluntary arrangements.

The commission Among other things, the Bill makes fundamental structural changes in connection with the Corporate Affairs Commission (the Commission). From a governance perspective, the Bill establishes a governing board for the Commission, and provides nuance in the membership and qualification of those appointed to the governing board.

Conclusion With the foregoing in mind, it is expected that if and when the Bill is passed into law, it will repeal the Companies and Allied Matters Act Cap. C20, Laws of the Federation of Nigeria, 2004. While the changes address some issues that typically arise in structuring and operating investments in Nigeria, some hold the view that the amendments introduced by the Bill fall short of the far reaching improvements required to bring Nigerian corporate law and regulation up to date with more developed climes.

Notwithstanding these differing perspectives, it is envisaged that the Bill would impact the Nigerian business climate especially for Small and Medium Enterprises, and impact positively upon the inflow of foreign direct investment into Nigeria.

Courtesy: Olaniwun Ajayi

Olayimika Phillips yphillips@olaniwunajayi.net

Michael Amadi mamadi@olaniwunajayi.net

Joba Akinola jakinola@olaniwunajayi.net

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana.

Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08022238495 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.