BusinessDay 24 Sep 2019

Nigeria bank divide widens as lower yields crimp net interest margins BALA AUGIE

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he divide between the haves and the have-nots among Nigerian banks is widening.

The country’s biggest banks awash with cash and a strong bal-

ance sheet have generated more revenue as they are more successful at investing their funds in comparison with expenses in a difficult environment.

On the other side of the scale, smaller lenders, reeling from exposure from the oil and gas sec-

tor, lacked the capacity to invest in short-term government securities when yields were higher.

The cost of funds is also a ma-

MARKETS jor factor boosting profits.

Tier-one lenders have lower

cost of funds because they attract deposits at lower rates relative to smaller banks, according to Ayodeji Ebo, managing director/CEO, Afrinvest Securities Limited.

Net interest margin (NIM) is a measure of the difference be-

tween the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits) relative to the amount of their interest-

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businessday market monitor

Biggest Gainer

Biggest Loser

FO PRESCO N17.20 7.50%pc N40.35 -9.93pc 27,650.28

Foreign Reserve - $42.35bn Cross Rates - GBP-$:1.24 YUANY-N 50.78 Commodities Cocoa

US$2,454.00

Gold

$1,532.00

news you can trust I **TUESDAY 24 SEPTEMBER 2019 I vol. 19, no 400

₦3,543,315.32 -0.13pc

$64.57

N300

Foreign Exchange

Buy

Sell

$-N 357.00 360.00 £-N 444.00 454.00 €-N 390.00 400.00

Crude Oil

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FMDQ Close

Everdon Bureau De Change

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Spot ($/N)

I&E FX Window CBN Official Rate Currency Futures

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362.21 306.95

3M 0.14 12.31

NGUS DEC 24 2019 362.68

6M

DIPO OLADEHINDE

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frica’s biggest oil-producing country can convert from being an oil to a gas giant in the template of Australia or Qatar with the completion of several major gas projects scattered around the country.

The world is gradually turning away from crude oil to gas to drive economies. Countries like Norway and Saudi Arabia, among others, are doing well because they have made gas a critical catalyst to their economic development.

These big-ticket projects are

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NGUS MAR 25 2020 363.53

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These projects could take Nigeria from oil to gas giant

NGUS OCT 28 2020 365.50

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Motorcycle imports hit record high

....on ride-hailing, unemployment, poor transport system SEGUN ADAMS & GBEMI FAMINU

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Inside Malami expects IOCs to repay up to $25bn on PSC review P. 2

fgn bonds

Treasury bills

L-R: Yemi Odusanya, executive director, Keytsone Bank Limited; Ademola Adebise, managing director/CEO, Wema Bank plc; Herbert Wigwe, group managing director/CEO, Access Bank plc, and Adetokunbo Abiru, group managing director/CEO, Polaris Bank Limited, at the signing of the Principles for Responsible Banking held at the on-going 74th session of the UN General Assembly (UNGA 74) taking place in New York City, United States.

n the busy market of Oshodi, a suburb of Lagos State, Nigeria’s commercial capital, it is impossible to miss riders on bikes branded in purple, green and yellow, waiting to pick up passengers and join the city’s notorious traffic.

The bike riders, usually male, arrange themselves in a seemingly disorganised fashion as

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Tuesday 24 September 2019

BUSINESS DAY

news L-R: Richard MofeDamijo, Nollywood actor/producer; Tara Fela-Durotoye, chief executive officer, House of Tara; Tonye Cole, co-founder/ former group executive director, Sahara Group, and Wole Oshin, managing director/ CEO, Custodian Investment plc, during Custodian mentors conference in Lagos.

Malami expects IOCs to repay up to $25bn on PSC review DIPO OLADEHINDE, with agency reports

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igeria is claiming “colossal” sums of money from oil majors, its attorney general said on Monday, under regulations that allow the government to revisit revenue sharing from petroleum sales if crude exceeds $20 a barrel.

Abubakar Malami said a number of court cases were already underway.

The government in Africa’s largest oil exporter relies on oil for some two-thirds of its revenue and its economy is still largely dependent on crude production despite efforts to diversify away from the industry.

A 1990s law that governs oil production sharing contracts allows the government to re-

view revenue sharing once the oil price rises above $20 per barrel.

Asked about the government’s demands to recover revenue from international oil companies (IOCs), Malami said the sums in question were “huge”.

“We are taking steps to recover what we feel is due,” said Malami, adding he could not give a precise figure as multiple actions and suits were underway.

“One thing I can say is that the amount is substantial and colossal, there is no doubt about it,” said Malami, not naming the companies.

Earlier this year, industry and government sources told Reuters that Royal Dutch Shell, Chevron, Exxon Mobil, Eni, Total and Equinor were each asked to pay the central government between $2.5 billion

and $5 billion.

A spokesperson for Shell in Nigeria said on Monday: “We do not agree with the legal basis for the claim that we owe outstanding revenues and the matter is pending before the court.” Exxon declined to comment. Eni, Total, Equinor and Chevron did not immediately respond to requests for comment. Oil majors are keen to get involved in developing and operating Nigeria’s giant offshore fields.

Malami is in London as part of a delegation of Nigerian policymakers who will meet stakeholders and investors as well as attend a court hearing on a $9 billion arbitration case the government disputes.

Nigeria’s central bank governor Godwin Emefiele, also part of the delegation, accused oil majors of having dragged their feet on purpose rather

than initiating a review once oil prices crossed the $20 per barrel threshold.

“You think it should be forgotten and we shouldn’t revisit it given that it resulted in substantial loss of revenue to the government?” said Emefiele.

“It stands for me to reason that the IOCs deliberately did not trigger event for review because it benefits them - and that is something that we kick against.”

Nigerian policymakers are due to attend a court hearing on Thursday after a judge in August said he would grant a firm called Process and Industrial Developments Ltd (P&ID) the right to seek to seize some $9 billion in assets from the government over an aborted gas project.

•Continues online at www.businessday.ng

Nigeria losing 875,000bpd over delayed FID on 8 oil and gas projects ...FG promises to sign 4 FIDs by year-end ...stakeholders urge expedited action OLUSOLA BELLO

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igeria is tying down about 875,000 barrels per day of crude on account of delay in signing final investment decision (FID) on at least eight oil and gas projects that are just waiting for the government to give the go-ahead to the promoters to commence execution.

The projects are Bonga Southwest/Aparo with an estimated production of 250,000 bpd; Bonga North 100,000 bpd; Bosi Satellites Fields phase II 80,000 bpd; Uge 11,000 bpd; Zabazaba 120,000 bpd; Nsiko 100,000 bpd, and Bosi 140,000 bpd.

Train 7 of the Nigeria Liquefied Natural Gas (NLNG) Limited had its letter of intent signed with contractors recently and Mele Kyari, group managing director of Nigerian national Petroleum Corporation (NNPC), said

the FID would be signed at the end of October.

“This is indeed the wish of NNPC as a shareholder and I will like to reaffirm to you all our support to carry out all the realignment to make the project a reality,” Kyari said.

If the projects, whose cost is estimated at $100 billion, were up and running, they would generate additional 875,000 barrels of crude oil per day (bpd).

The Federal Government has said it plans to sign FIDs on at least four oil and gas projects by the end of this year.

Timipreye Sylva, minister of state for petroleum, said this when he represented President Muhammadu Buhari at 24th World Energy Congress (WEC) in Abu Dhabi, United Arab Emirates.

Sylva said his vision was to bequeath a vibrant petroleum industry which would guarantee long-term stratewww.businessday.ng

gic investments and prosperity for Nigerians.

“My plan is to ensure that during my tenure, four Final Investment Decisions (FIDs) are taken. I am sure that within the next quarter, we should be able to conclude on some of these FIDs so as to grow the industry,” Sylva said.

Stakeholders in the oil and gas industry have urged the government to match words with action, saying the delay in approving projects has caused the country great loss.

If the government could sanction the execution of these projects, they said, Nigeria would be closer to producing about 3 million barrels per day of crude.

The industry stakeholders said ensuring the taking of FID on some of the pending projects would help to boost the economy as it would create several thousands of jobs.

Tosan Omatsola, principal and executive director,

Kaptepla Capital, said Nigeria needs to attract investors by creating enabling environment, adding that there is no reason why the country should not be producing 4 million barrels per day of crude oil if the enabling environment is there.

“The government should make the fiscal and contract terms more attractive for investors,” he said.

Seye Fadahunsi, a former executive director of Pillar Oil, said signing FIDs would increase activities in the oil and gas industry, improve the nation’s oil production output and have ripple effect on the economy.

He said the process of getting projects approved in the country is too long and it has had serious implications on investment in the industry.

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Why we are placing lien on bank accounts of wealthy tax defaulters – Fowler CYNTHIA EGBEBOR, Abuja

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he executive chairman of the Federal Inland Revenue Service (FIRS), Tunde Fowler, says the Service gave ample time to rich tax defaulters to comply before placing lien on their bank accounts.

“Before FIRS voted for lien on bank accounts of defaulting taxpayers, the Service granted a waiver of penalty and interest for three years (2013-2015), followed by the Voluntary Assets Income Declaration Scheme (VAIDS),” Fowler said.

“It was when millionaire and billionaire taxpayers with turnover of between N11 million and N1 billion did not take the opportunity to pay their taxes that FIRS decided to place lien on the accounts of defaulting taxpayers,” he said.

Fowler said the FIRS Establishment Act (2007) empowers the FIRS to place lien on the accounts of defaulting taxpayers. Insisting that what the defaulters were doing was wrong, Fowler queried why they should leverage on Nigeria, make money, but fail to chip in any form of tax to the nation.

“All defaulting taxpayers were considered, provided that such taxpayers came forward to declare their indebtedness, pay at least 25 percent of

the outstanding amount and present a payment plan on the outstanding tax liability that was acceptable to the Service,” he said.

The window, he said, was opened from 5 October to 24 November, 2016, which a total of 2,400 companies took advantage of and the FIRS realised about N98.8 billion.

“Look, we look at all businesses, partnerships, corporate accounts that have a minimum turnover of N1 billion per annum for the past three years…From the 23 banks, we have analyses, we have about 50,000 who have a turnover of between N100 million and N1 billion and above and they don’t pay any form of tax. They are operating within our society and economy and do not remit or pay any tax,” Fowler said.

“If you have had the opportunity to make your wealth in this economy, in this society, the least you can do is to pay your tax. I plead with the banks to support us. In supporting us, you are supporting Nigeria; you’re supporting Nigerians and those who have chosen Nigeria as home. And most of all, you are supporting a future that we can leave behind for the upcoming youth of Nigeria,” he said.

•Continues online at www.businessday.ng

Nigerian banks join global lenders to sign responsible banking principles HOPE MOSES-ASHIKE

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igeria banks on Monday joined global lenders to become founding signatories as they launched the Global Principles for Responsible Banking.

By signing the Principles, the Nigerian banks, including Access bank plc, Keystone bank, among others, have joined a coalition of 130 banks worldwide including ING, representing over $47 trillion in assets, in committing to taking on a crucial role in helping to achieve a sustainable future.

This is a further commitment to strategically align their business with the Sustainable Development Goals and the Paris Agreement on Climate Change.

The banks have demonstrated commitment towards using their products and services to support and accelerate positive changes in both local and international economies as well as promote lifestyles necessary to achieve shared prosperity for both current and future generations.

Herbert Wigwe, group managing director of Access @Businessdayng

Bank plc, stressed the need for continued collaboration and long-term approach to sustainability, recognising the benefits of sustainable banking and the positive effect it has on the bank and society.

“There is a greater need now, more than ever, to promote sustainability in the global financial sector. This is therefore the right time to launch the Global Principles for Responsible Banking,” Wigwe said.

“At Access Bank, we are committed to setting standards and engendering innovative solutions that address social, economic and environmental challenges.

We believe that the Sustainable Development Goals will be better achieved if we can work together, using these Principles as a guide,” he said.

As expressed in the Global Principles for Responsible Banking, Access Bank is convinced that humans and businesses can only thrive in an inclusive society founded on human dignity, equality and the sustainable use of natural resources.

•Continues online at www.businessday.ng

Tuesday 24 September 2019

BUSINESS DAY

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news Nigeria’s new national identity plan to fast-track credit economy goal SEGUN ADAMS

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i g e r i a’s d a t a management agency has announced plans to issue identity numbers for up to 50 million citizens per year, a move experts say would help the country leapfrog in its goal towards becoming a credit economy.

Aliyu Aziz, director-general of the National Identity Management Commission (NIMC) in an interview said the agency, which has secured $433 million from international organisations, would by end of September introduce a new digital identification system that would capture data of the country’s 200 million citizens and issue unique identity numbers.

Partnering with the private sector and government agencies, the new system would allow NIMC to integrate the multiple identity documents Nigerians carry and provide a link between papers issued by different ID agencies in the country.

“Nigeria would become a credit economy in less than two years if every adult citizen has a unique form of identification,” said Ahmed Popoola, CEO of Lagos-based CRC Credit Bureau, formed by a consortium of leading Nigerian banks and Dun & Bradstreet.

As a percentage of gross domestic products, domestic credit is lower in Nigeria compared to Egypt, Ghana, Angola,

Kenya and South Africa, the country’s continental peers.

World Bank data show a decline in Nigeria’s from an all-time high of 22.3 percent in 2009 and to 10.95 percent as at 2018, while globally the measure of credit stands at 128.61 percent.

In a credit economy, where access to credit is easy and there is a high possibility of using credit rather than cash, people do not need cash to afford cars or houses.

“For instance, in such economy credit cards and other electronic means of payments are dominant,” Popoola explained.

But “No credit today, come tomorrow” is a mantra that typically guides business activities in Nigeria.

In the absence of a centralised form of identification, cash payment is usually required to seal a transaction.

This is because credit is based on trust and trust depends on information.

Nigerians have a multiplicity of IDs while in contrast, “South Africans from birth have a unique national number they are identified with throughout their life,” said Popoola.

The lack of data coordination made Nigeria establish a National Identity Management Commission (NIMC) in 2007.

Twelve years after, the Country’s senior adviser to President Muhammadu Buhari says over 37 million Nigerians have been registered under the scheme.

BusinessDay reported that

the 201 million people estimated by the United Nation to be Nigeria’s current population means 164 million Nigerians cannot be authoritatively identified.

“If the government makes it such that the NIN becomes a prerequisite for getting any other form of ID, people would take it seriously,” Johnson Chukwu, CEO of Lagos-based Cowry Asset Management Ltd said.

A 2019 McKinsey report estimates that only 28 percent of Nigerians have IDs; more than half of that population have IDs that cannot be traced digitally while about 70 percent of the total population are without any form of identification.

Unlocking the potential in digital ID could see Nigeria achieve economic value up to 7.1 percent of GDP in 2030, McKinsey says.

This means hurdles that have weighed on a half-decade goal to go digital must be addressed.

In an attempt to create electronic-identification, Nigeria partnered with Mastercard in 2014 to create E-id cards which enables authentication through chip-based card and data sharing for Know-Your-Customers (KYC) but the country has seen less than 10 percent adoption rate since.

On the other hand, India’s Aadhaar which enables biometric digital authentication was launched in 2009 and has covered more than 90 percent of the country’s population.

3Invest, Houston EB5 offer insights on investing for US residency CHUKA UROKO

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or Nigerians seeking to live in the United States of America, a sure and an easy way to realize that dream has come as 3Invest, a Nigerian real estate marketing and consultancy firm, in partnership with Houston EB5, will be offering insights on how to realize that dream.

Houston EB5, a subsidiary of a real estate developer, DC Partners, effectively guides investors seeking a secure path and peace of mind to permanent residency in the US by providing opportunities to co-invest in landmark projects with successful returns.

In a statement obtained

by BusinessDay in Lagos on Monday, Ruth Obih, CEO, 3Invest, informed that Houston EB5 would be visiting Nigeria in the next couple of days for an investor open house and launch of its Nigerian office at Lagos Cowork.

Obih added that at the September 26,2019 at a closedevent in Ikoyi, Lagos, Acho Azuike, managing director of Houston EB5, would be presenting an overview of the EB-5 visa programme and why the time to invest.

“The Houston EB5 office is the only regional center led by a team with personal and professional interests in Nigeria. Houston EB5 has worked with Nigerian investors since

2010 and has successfully completed multiple projects,” the 3Inest boss said.

Founded in 2010, the programme was established to help international investors gain permanent United States residency in return for making a qualified real estate investment. Certified

by United States Citizenship and Immigration Services (USCIS) as an EB-5 Regional Center, Houston EB-5 has more than 25 years of real estate experience.

Achuike’s presentation will include investment opportunity in The Allen project which is a high-end, multiuse development in Houston, Texas that includes the luxury brand, Thompson Hotel, The Residences, a lifestyle pavilion, including one of the nation’s most exclusive fitness clubs, luxury retail spaces, and worldclass office buildings.

The landmark development, overlooking Buffalo Bayou Park, will stand as a crossroad between downtown, the Galleria Uptown area, Midtown and the Texas Medical Center offering the best of the city and outdoor lifestyle.

“The Allen will truly be a landmark project –redefining luxury living, working and playing at the middle meeting point between the central business district and the Galleria.” said Acho Azuike, COO and managing director

of Houston EB5.

Azuike said The Allen fits perfectly with 3Invest’s profile for high-quality EB5 investment funding. Like previous Houston EB5 projects, The Allen has received great support from the City of Houston. A Targeted Employment Area (TEA) designation has been assigned to the project, lowering the minimum investment amount from $1 million to $500,000.

“Through the marketing of previous projects and local partners like 3Invest, Houston EB5 has established strong investor pipelines in Latin America, Africa, and Asia helping to assure complete capitalization of projects,” said Azuike.

“Houston EB5 has a proven success rate of Green Card approvals and return of capital to all its investors,” said Roberto Contreras, President & CEO, Houston EB5. “We consistently deliver worldclass investment projects and demonstrate long-term financial strength, as we help investors achieve their business and residency goals.”

Time is of essence. The US government has issued a new rule, raising the level of investment effective November 21, 2019. This new regulation will change the EB-5 programme significantly. One of the major changes to the EB-5 programme in the final rule is the drastic increase in the investment levels.

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BUSINESS DAY

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news

Election Petitions Tribunal reaffirms Sanwo-Olu’s victory …It’s re-affirmation of people’s mandate - Lagos APC Iniobong Iwok

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he Election Petition Tribunal sitting in Lagos State on Monday dismissed the petitions filed by the Labour Party and reaffirmed the victory of SanwoOlu candidate of the ruling All Progressives Congress (APC) as the duly-elected Governor in the March polls.

The Tribunal described the Labour Party (LP) petition as futile and a wasteful exercise, noting that the petitioners could not prove their allegations of mental incompetence against Sanwo-Olu. Justice T.T Asua, while delivering the judgement, said the petitioners LP and it candidate, Ifagbemi Awamaridi, also failed to prove the allegations of electoral malpractices against Sanwo-Olu and his party, the APC. Meanwhile, the state chapter of the APC has described

the victory of Governor Sanwo-Olu at the tribunal as a re-affirmation that he got the mandate of the people in the March elections.

In a message to Journalists after the judgement, Abiodun Salami, Assistant Publicity Secretary of the APC in the state, said the victory was a judicial vindication of the belief Lagosians have in the Governor to move the state forward.

Salami said the victory was a validation of the support the people had for Sanwo-Olu and proof that the petition was all along ‘’a wild goose chase’’. He congratulated Lagosians on the victory as it was not only victory for the Governor but also for the people and good governance.

“We are happy at the victory; it is a reaffirmation that the governor got the mandate and support of the people in the March election .

“We congratulate the governor and the good people of

Lagos on the judicial vindication of this electoral victory.

This verdict is not only a victory for democracy, it is a victory for good governance and a more prosperous Lagos,’’ he said.

Salami assured residents that the verdict would further inspire the Sanwo-Olu administration to render impactful governance in the state. He said the governor was justifying the confidence reposed in him with his many achievements since he was sworn in over 100 days ago.

The APC spokesman listed the achievements to include fixing of potholes across the state to tackle the nagging problem of gridlock.

Salami said the efficiency of the Lagos State Traffic Management Agency (LASTMA) had improved as a result of increase in their allowances by Sanwo-Olu. “The refuse problem is fading away with the resuscitation of the Lagos State

Waste Management Authority (LAWMA)’s PSP model on waste management. Wastes are now being promptly cleared and the state is getting cleaner. The right attitude to the environment is being restored,” he added.

He added that the SanwoOlu administration had commenced work on the LagosBadagry Expressway, a project which had suffered delays before now, noting that sufferings on the road were being alleviated.

“Security has been beefed up in the state with the provision of 125 patrol vehicles and 45 patrol motorcycles to the police and other security agencies.

“The Sanwo-Olu administration has also completed a 495 housing estate at Igando .He has made interventions in the health and education sector and had done well in the area of empowerment of the people.”

Manufacturing sector expands slowly in September HOPE MOSES-ASHIKE

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he manufacturing sector expanded slowly this month as the Purchasing Managers Index (PMI) stood at 57.7 index points in September 2019 from 57.9 points in the preceding month.

The PMI report released by the Central Bank of Nigeria (CBN) on Monday, shows that the sector expanded for the 30th consecutive month.

A composite PMI above 50 points indicates that the manufacturing/non-manufacturing economy is generally expanding; 50 points indicates no change, and below 50 points indicates that it is generally contracting.

The report shows that production and employment levels, as well as raw materials inventories grew at a slower rate, while new orders and supplier delivery time grew at a faster rate in September 2019.

Thirteen of the 14 surveyed subsectors reported growth in the review

month. These included cement ; petroleum and coal products; food, beverage and tobacco products; transportation equipment; printing and related support activities; chemical and pharmaceutical products; furniture and related products; fabricated metal products ; non-metallic mineral products ; electrical equipment; textile, apparel, leather, and footwear ; plastics and rubber products; and primary metal. The paper products subsector recorded a decline in the review period.

Also, the non-manufacturing sector expanded slowly as the composite PMI for the nonmanufacturing sector stood at 58.0 points in September 2019, compared to 58.8 points in August the same year. The sector expanded for the 29th consecutive time.

Consequently, business activity, new orders and inventories grew at a slower rate, while the employment level grew at a faster rate in September 2019.

BusinessDay moves future of Power Conference to Thursday, October 3

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L-R: John Obayuwana, founder, Polo Luxury Group/celebrant; Audu Ogbeh, former minster of agriculture, and Godwin Obaseki, governor, Edo State, during the birthday ceremony of John Obayuwana in Lagos.

Pic by Olawale Amoo

The life and times Chiedu Osakwe, Nigeria’s chief trade negotiator HARRISON EDEH & OLUFIKAYO OWOEYE

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he Nigeria Office for Trade Negotiations (NOTN) has officially announced the sudden demise of our Director-General/ Chief Trade Negotiator, Chiedu Osakwe, after a brief illness.

Osakwe who passed away in the early hours of Sunday, 22nd September, 2019, in Geneva, Switzerland, where he was receiving treatment, was appointed as the pioneer DG of NOTN on 6th June 2017.

He was the Trade Adviser to the Nigerian Economic Management Team (EMT).

In a press statement released in Abuja by President Muhammadu Buhari’s senior special assistant on media and publicity, Garba Shehu, the President noted that the late chief trade negotiator had “intellectual depth” and demonstrated professionalism and patriotism in all the trade agreements he negotiated for the country.

“The passage of Amb. Osakwe has created a gulf in the Nigerian Office for Trade Negotiations, which he served as pioneer Director-General, bringing invaluable experience, knowledge, and skill in setting up and motivating the operations of the agency that was established in 2017,” Buhari said The President prays that the Almighty God will receive the soul of the cerebral diplomat, scholar, and administrator, and comfort his family.

Osakwe was a member of the Nigerian “Industrial Policy and Competitiveness Advisory Council” and of its “Trade and Market Access Sub-Committee” and its “Advisory Group on Technology and Creativity”. He served as the Chairman of the Negotiating Forum (NF) and Senior Trade Officials (STOs), for the negotiations on the African Continental Free Trade Area (AfCFTA), during which he led the AfCFTA Negotiating Institutions to finalise Stage 1,

of the AfCFTA Negotiations (on Trade in Goods and Services), for signature by African Heads of State and Government.

Prior to his appointment as Chief Trade Negotiator Nigeria, Osakwe was an Associate Professor on International Trade Policy, Diplomacy and Negotiations (on a leave of absence) at the International University in Geneva.

He lectured globally and published extensively in peerreviewed journals on a range of subjects, including trade policy; fiscal and monetary policies; and, structural reforms.

At the World Trade Organization (WTO) where he worked for 19 years (1998-2017), he was a member of WTO Senior Management, serving as Director of the Divisions of Accessions; Doha Development Agenda Special Duties; Textiles; and, Technical Cooperation. He was also, Special Coordinator for Least Developed Countries (LDCs) and Head of the Sec-

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retariat Inter-Agency Working Group for the Integrated Framework for LDCs in the Office of the Director-General. He retired from the WTO Secretariat on 8 September 2017.

Osakwe joined Nigerian Foreign Service on 23 July 1979, after his NYSC, where he worked till 4 May 1998. During this period, he served in various capacities at the headquarters of the Nigerian Ministry of Foreign Affairs in Lagos and then Abuja.

As a Nigerian diplomat, the Ambassador held a number of international positions. At the Permanent Mission in New York, he was Chairman of the UN SubCommittee on the Legal Aspects of the Struggle against Apartheid (1984-1986); He is highly regarded for his knowledge and expertise on international trade policy, globally, and for his contributions to the WTO, African Union, ECOWAS and to the Federal Republic of Nigeria. Funeral arrangements will be announced shortly.

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he date for the 2019 edition of BusinessDay’s Future of Power Conference, which holds under the theme: Unlocking the Potential in the Nigerian Electricity Supply Industry, has been moved to Thursday, October 3, 2019. Attendees are expected to be seated at 9 a.m.

The annual event is a BusinessDay initiative in response to regulatory developments and market complexities faced by operators and investors in Nigeria’s

power sector.

The event was initially scheduled to hold this Thursday, September 26, 2019, at the Lagos Oriental Hotel, Ozumba Mbadiwe Road, Victoria Island.

The organiser regrets any inconvenience that the postponement may cause to registered delegates.

For registration details, sponsorship opportunities and other inquiries, please visit https://conferences. businessday.ng/event/thefuture-of-power/.

Murder of Fasoranti’s Daughter: Police not serious with investigation, says Afenifere Iniobong Iwok

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he Yoruba socio-political group, Afenifere, has accused the Nigerian Police Force (NPF) of not being serious about finding the killers of Olufunke Olakurin, the daughter of its leader, Reuben Fasoranti.

OlakurinwasmurderedinJuly at Ore in Ondo State by persons suspected to be herdsmen, who alsotookcaptiveotherpassengers in the vehicle in which she was travelling during the attack.

But the group in a statement on Sunday by its spokesperson, Yinka Odumakin, said it was compelled to speak out over the continuous unserious manner the Nigerian Police was handing the investigation of the murder.

The group expressed its dismay that the Police authorities in Ondo State failed to carry out a forensic investigation after picking up the vehicle in which @Businessdayng

she was killed and calming to be carrying out such for weeks.

According to the group, “The police had shown signs that it had no plans to launch any serious investigation into the matter.

“Kehinde Fasoranti, the junior brother of the deceased had stated openly a day after the incident that the police in Ore told him the sister was killed by Fulani herdsmen when he went to collect her body the day she was killed and challenged the police to bring out the statement he wrote at their station.

They have not contradicted him till date,” the statement read.

“The first sign we got that there was no attempt to launch any serious investigation into the murder was when the car in which she was killed was released to the family from Ore police station the day after the murder without any forensic investigation into the most prized evidence at the scene of the crime.

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Democracy, security and Nigeria’s future (1) STRATEGY & POLICY

MA JOHNSON

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am enormously pleased to be in the midst of distinguished delegates from the private and public sectors, including members and non-members of the Nigerian Institute of Management (NIM) for the 2019 annual National management conference. I am also highly honoured to speak on a paper with the sub-theme “Security Conflict and Information Management,” and to be the moderator for the break-out session.

At the dawn of the 21st century, Nigerians agitated for a re-introduction of democracy as a possible answer to persisting problems of bad governance, instability, economic hardship and insecurity that seem to characterise the country then.

Since 1999, Nigeria has embraced democracy as the system of government.

Democracy, with its flaws and weaknesses, is truly suitable for us, provided it can be made to work effectively and, even more importantly, fairly. For almost a decade, anybody with an intellectual interest in national security cannot but be taken aback by the general climate of insecurity and uncertainty in the country.

Nigerians and our friends in the international community are concerned about what is responsible for this bleak security picture we witness today in Nigeria? Some scholars want to know if democracy can survive without security. Others want to know the link among security, leadership and development. How can Nigeria manage the challenges of democracy? Is our democracy threatened because we do not have a strong democratic culture?

Is it that our security planners do

not have a clear perception of what is required to provide security for almost 200 million people? Or does the country lack the capacity-human and material to provide security for its citizens?

Can we attribute the current insecurity to poor security management strategy?

The questions are endless.

It is against this background that this presentation seeks to provide a platform for a robust discourse in order to proffer strategies to manage Nigeria’s security challenges.

Security The concept of security is a complex one that covers every sphere of human endeavour. Security means different things to different people depending on their intellectual preference and/or socio-political perception. That is why it does not have a universally accepted definition. .

People feel secure or insecure because of several reasons. Some people feel secure because they are self-actualised. For some, they see security as having to do with war.

For this category of people, they feel insecure when there is conflict. While others feel insecure because of situations within their environment that cannot make them live long and enjoy a good life. There are people who feel insecure because of uncertainties in the polity arising from frequent loss of jobs, devaluation of the local currency, increased taxes and tariffs, and incessant supply of electricity.

There are also, non-military threats such as famine, ecological disasters, and even destruction of a nation’s resources without recourse to arms which are no less devastating than military threats. All these have negative impact on people. In fact, some scholars see security from a broader angle to include the whole gamut of human security needs.

McNamara, however, got the crux of security when he claims that, “Security of any nation or entity lies not solely or even primarily in its military preparedness but also in having a stable

economic development and political growth at home and abroad.” The common element to all perspectives on security is that of protection against threats either internal and/or external.

In a broad sense, security connotes freedom from, or elimination of, threat not only to the physical existence of the country, but also due to its ability for self-protection and development, and most importantly, the enhancement of the general well-being of the people.

Conflict Conflict is a disagreement between parties when they perceive threat to their interests and needs. Conflict can be between individuals, communities, or even countries. There are mechanisms to resolve conflicts.

But when conflicts are not well managed, they gravitate to war between countries involved. War may be seen as something conventional. The use of armed conflict as war and war as armed conflict is semantics because both are pervasive human behaviour and are naturally destructive.

Indeed, the use of the conflict concept coinciding with peculiar wars of terrorism and insurgency as we have them currently, may be an attempt to deny the damaging nature of such wars. The risk here is for policy decision makers and implementers who may not consider an evolving situation as war in the offing until it engulfs the polity with its mysteries.

This fear was brought to focus by an observer of the Nigerian polity who says in an article, “The great unravelling– the disintegration of the Nigerian state” that as the strength of the state wanes in Nigeria, communities are increasingly militarising themselves and resorting to self-help. The navel of his scholarship is that if the conflict continues unchecked, it’s not going to be a fiery event, but slow and lethal with pockets of conflicts pervading the 36 states and the Federal Capital Territory (FCT).

In fact, other observers are of the view that: “If Nigerians continue to die

‘

Nigerians and our friends in the international community are concerned about what is responsible for this bleak security picture we witness today in Nigeria

in large numbers in the hands of insurgents, armed robbers, kidnappers, bandits, militants, herders, farmers, communal warriors, and cultists amongst others, then democracy as a system of government will be discredited and no one will raise a finger to save it.”

Countering terrorism and insurgency have become sustained endeavours of many nations of the world. There is no universal remedy for countering the affliction. However, a soft and hard approach have become methods of choice. On the soft side, good governance, dialogue, amnesty and the like have been employed. On the hard approach, the employment of intelligence to nipping their acts in the bud as well as paramilitary and military confrontation have also been used.

Some principles have been established such as the four D’s: “Defeat terrorists and their organisations; deny sponsorship, support and sanctuary to terrorists; diminish the underlying conditions that terrorists seek to exploit; defend your citizens at home and abroad.”

With respect to counterinsurgency, five principles have been emphasised: “Clear political objective, establish a stable and unified country; coherent plan, coordinating actions in economics, social, security, etcetera; secure government base areas; operate within the rule of law; prioritise defeat of political subversion.”

Insurgency and terrorism are wars of the 21st century and they do not just emerge but are triggered by many contending issues in contemporary time such as the environment, insecurity, growth in information and communication technology, globalisation, religion, ethnicity, bad governance, corruption, population explosion, nationalism and identity issues.

• To be continued.

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

Revitalising primary healthcare for universal coverage in Lagos

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he Lagos state government has launched its mandatory health insurance scheme, known as the Lagos State Health Scheme, which is aimed at delivering basic health care to the majority of Lagos residents, with emphasis on the less privileged.

For the scheme to be successful, it is essential we direct our focus on to the primary healthcare system, which comprises of the Primary HealthCare Centres (PHC) and forms the foundational healthcare structure at the community level of any Universal Healthcare Coverage (UHC) strategy.

At the recently concluded breakfast meeting organised by the Franco- Nigerian Chamber of Commerce and Industry, we stated that across the whole of Nigeria, a good number of primary healthcare centres are dilapidated and not able to provide the services required.

The situation is not very different in Lagos.

While there are over 300 PHCs in Lagos only 57 have doctors and the rest are manned by nurses under the remote supervision of a medical officer of health. Therefore, it is imperative that for the Lagos State Insurance scheme to work, we begin to engage all tiers of government to find the right funding and operational model. In addition, the right statutory governance oversight is required to ensure that we jointly take responsibility

for these centres through efficient management systems.

According to the constitution of Nigeria, and the Lagos State Health Reform Act, the Local Government Area (LGA) health authority and ward committees have a major role and responsible for the functioning of the PHCs and so concerted advocacy efforts at this tier of government is required to initiate the revitalisation process and long term sustainability.

However, the resources of the state government are under strain and to attain UHC in record time, there is a growing recommendation for the two tiers of government (state and LGA) to partner with the private sector for innovative solutions.

One of such innovations is the access to finance scheme where the state in the previous dispensation, had commenced a pilot where 43 of underutilised PHCs would be allocated to the private sector for revitalisation in a public-private partnership arrangement. These private sector players would also have access to concessionary repayable loans bankrolled through blended financing which would ensure they have the capital for start-up and to provide affordable services to the enrolees of the health insurance scheme.

But for this pilot project to be potentially www.businessday.ng

effective, further stakeholder engagement at the community and LG level is necessary to get the buy in of the necessary structures to ensure the pilot is viable.

Nigeria is struggling to achieve the Abuja declaration of allocating 15 percent of its budget to health, which currently stands at about 4 percent. The situation is a bit better in Lagos as the average allocation to health is in the region of 8 percent.

The administration of Babajide SanwoOlu as part of the THEMES mandate has pledged to gradually increase the allocation to health to approach 15 percent over the tenure of this government. However, allocation is different from drawdown on the approved budgetary allocation. All efforts will hence forth be made to ensure that funding is available for capital and recurrent expenditure to ensure public facilities are well maintained and running efficiently. Moving forward, we will prioritise income generation projects, efficiencies and cost containment.

We have a unique situation in terms of population. The population of Lagos state has surpassed 20 million and rising daily, so now Lagos qualifies as a hyper city. This situation is brought about by constant migration of people into the city, either induced by the insurgencies and climatic forces north of La-

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AKIN ABAYOMI

gos or the attraction of the economic viability of the centre of the excellence.

This brings about a great strain on the existing facilities in the state by people who require healthcare services and also threatens its biosecurity. This is why there is an urgent need for all relevant stakeholders, including the federal government, to be involved in the propagation of primary care to congregate and brainstorm on the appropriate financing mechanism to rejuvenate this system. As a matter of priority, we are going to deeply engage with the LG structures and the House of Assembly on this critical issue.

Prof Abayomi, is the commissioner for health in Lagos State

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BUSINESS DAY

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Climate change & conflict in West Africa (4) RAFIQ RAJI

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frica is vulnerable to the effects of climate change.

Climate change, in association with socio-economic factors, definitely leads to conflict, and considerable evidence points to causal relationships among the effects of climate change and violent conflict. Climate change causes resource scarcity, which spurs competition that ultimately feeds conflict.

Studies reveal that the strength of the climate change-conflict links depends on several factors, including social and political contexts.

In the specific case of West Africa, solutions to conflict that focus on longterm issues such as slowing climate change miss the urgent need to manage emerging conflict before it leads to violence. Ideally, states will take action to mitigate the potential conflicts generated by climate change before these conflicts lead to violence. The relevant questions for policymakers are how and where should they intervene to best effect?

Current evidence suggests that global policy initiatives such as the Paris Agreement are unlikely to offset resource scarcity issues in the near term. Even those measures that nations agree to implement will take many years to make a substantial impact on current climatic trends. Also, few African nations currently have the institutional capacity needed to successfully respond to intense resource

and political conflict at a national level.

Thus, I propose that African governments focus their efforts to mitigate the impacts of climate change on proactive interventions to minimize the conflicts associated with resource competition. I suggest institutional interventions at the resource scarcity stage. Examples of these interventions range from efficient irrigation, water rationing, pasture management, resource rejuvenation, to public education and institution-building. They are discussed below.

Restore water bodies Drying river and lake basins may be restorable. If the proposed Lake Chad inter-basin water transfer (IBT) project succeeds, it would help restore livelihoods in the region, which would in turn reduce potential conflict.

However, review of other IBT projects suggests the social and environmental costs may be significant. If this is true, the Lake Chad IBT may have long-term and perhaps more serious implications for climate change and conflict.

Plant trees Planting trees is a simple and costeffective measure to rebuild capacity for CO2 absorption. According to the recent study by Bastin et al., planting trees on as much as almost a billion hectares of currently suitable land could absorb up to a quarter of carbon currently in the atmosphere. The study recommends a greater sense of urgency in this regard, however. This is because over time there would be less land suitable for afforestation efforts.

For instance, the authors estimate about 223 million hectares of land for planting trees could be lost to climate change effects by 2050.

Build irrigation infrastructure for

agriculture African agriculture, which is largely rain-fed, is currently the least productive in the world. Studies estimate that improved irrigation could boost agricultural productivity on the continent by as much as 50 percent. According to the International Food Policy Research Institute (IFPRI), only 4percent of cultivated land in sub-Saharan Africa is irrigated, compared to 37 percent for Asia.

Thus, the livelihoods of most African farmers are subject to the elements. To move forward, African farmers must adopt modern agricultural methods.

These would go beyond irrigation to include complementary measures such as cheaper fertiliser, betteryielding seeds, post-harvest storage and processing facilities, improved access to markets, and the training of and support for farmers.

Incentivise ranching and commercial grazing for livestock production Ranching, a well-established alternative to nomadic pastoralism, is clearly a success in Ghana. It can be incentivised to be attractive to itinerant pastoralists. Grazing bans are ill-advised. We suggest the creation of enabling environments for commercial grazing instead. This would be privately managed pasture that herders can bring their cows to graze for a fee.

Increase use of alternative & renewable energy sources The International Energy Agency (IEA) estimates renewable energy could constitute almost half of all new power generation capacity in subSaharan Africa by 2040. The case for alternative and renewable energy to replace fossil fuels in Africa is robust.

Although some worry that commitments to reducing global warming

‘

Initiatives to proactively mitigate conflicts resulting from climate change must be context-flexible, as locational and situational factors determine the specific interventions that stakeholders will accept

would slow Africa’s economic development, the continent has a unique opportunity to develop sustainably without externalising its carbon emission costs to the earth’s climate.

Increase climate change awareness Africa has the opportunity not to join the current culprits in the developed world by emitting GHGs to the atmosphere. This will require increased awareness of climate change and its potential effects on the continent. The United Nations Environment Programme (UNEP) has many resources to aid governments in this regard.

Strengthen state capacity, democracy and good governance In areas with strong institutional capacity for conflict resolution, disagreements between farmers and herders should be easy to resolve. Few African countries have built such institutions. This weakness, coupled with poor governance and politics riddled with corruption, allows conflicts generated by climate change to escalate into violence, as evidenced by clashes between sedentary farmers and itinerant pastoralists in countries bordering Lake Chad.

This article was first published by the NTU-SBF Centre for African Studies at Nanyang Business School, Singapore.

References are in the original article

Note: the rest of this article continues in the online edition of Business Day @https://businessday.ng “Dr Raji is chief economist at Macroafricaintel.

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

Boosting trade: Strategies in port and shipping management

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eaports and maritime transport have existed for some thousands of years and they support international trade in shaping the economies of modern world. It is estimated that about six billion tonnes of freight move through maritime transport each year, being comprised mostly of liquid and general cargo.

Global trade has been growing since the 1950s and the increasing prominence of the World Trade Organisation and bilateral nations efforts to promote competition in global trade has led to changes in shipping practices, and as the dominant mode of global freight transport, this has led to growth in containerised trade, helping minimise freight handling costs compared to earlier forms of shipping.

The emphasis on the role of ports in the growth of world trade and maritime transport businesses globally has increasingly connected many of the world’s economies, a result of the increasing trade and the globalisation of production. Over the past half-century, most countries have seen an increase in exports share of GDP, with the vast bulk of these exports transported by sea.

A number of factors have affected the ports sector positively and were instrumental in increasing efficiency and productivity in the sector. These include better, faster and larger vessels and improvements in cargo handling at the ports.

With fewer ports able to handle larger vessels, there is a growing traffic concentration at certain ports, and increasingly many mid-sized ports are acting in a feeder role to the larger ports. In these networks the larger vessels sail between the major hubs, with the effect that the growth of the smaller ports is dependent on the routes of the major shipping lines.

Global shipping companies have also increased significantly in scale as freight has grown considerably in recent years. A particular feature of this growth is its uneven spread across different sections which has led to directional imbalances, with the result that large numbers of empty containers may flow in one direction, while much higher freight rates exist in the opposite direction.

The rising cost of transport has seen more economies using port-centric logistics models which has boosted its level of competitiveness.

This term describes a logistics and distribution service based at the port where goods arrive, a brilliant alternative to inland depots and centrally located national distribution centres, which reduces the number of storage and distribution handling stages, saving both time, energy and money.

This is recommended by some of the world’s largest supply chain and distribution companies and is rapidly gaining popularity as businesses and economies look for better solutions to streamline supply chains and reduce the impact on the environment. Port-centric logistics removes unnecessary freight miles.

For example, if goods arrive at a port in the south, then travel to the distribution centre in the north, the goods essentially retrace their steps if they are distributed to a customer based in the south. If the goods remain at the port they arrived in and get distributed from that same location, you have avoided wasted freight miles, which is excellent for the ports’ bottom line and reduces environmental impact.

Port-centric logistics helps reduce costs, streamlines operations and improves customer service. As a result, shippers benefit from lower costs, shorter lead times, reduced congestion

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in the ports, a more efficient supply chain, a reduced carbon footprint, and cost-effective logistics and distribution.

Port-centric logistics helps make management of the supply chain process simple. Ports and organisations using this model utilise innovative warehousing management systems to ensure seamless handling of goods from start to finish, from unloading and storage to pick and pack for onward distribution. This helps guarantee safe handling of customers’ goods and gives control and traceability of stock in real-time.

The important role seaports play in the development of trade and economies of nations cannot be over emphasised because they serve as the gateways and transit points through which imports and exports flow, as such seaports are critical elements of the global supply chain.

Global trade enhances economic development and many countries including Nigeria must take advantage of this linkage by reducing or eliminating obstacles that slow down the movement of cargo through their seaports which result in idle times that lower seaport efficiency, and negatively impacts on the cost of trade and the level of competitiveness of the port.

For example, the Chinese government places great emphasis in building their economy through international trade and, hence, China has the largest shipping ports in the world and is a leader in manufacturing. Currently, the port of Shanghai in China, comprised of a deep seaport and a river port, is the largest and busiest port in the world in terms of cargo tonnage.

A port is defined as any maritime facility that is operated on a commercial basis and has at

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FESTUS OKOTIE

least one or more wharves for docking ships.

Most ports are located around the coastal areas but there are some that are inland, e.g. those in Manchester, Hamburg etc and usually a canal or river helps connect the inland port to the sea.

Recently, Asia has emerged as the continent with the most significant port growth globally because of the steady growth in its international trade transactions and this has brought tremendous growth to its economy.

The modern types of ports are very busy locations with a lot of economic and operational functions, the old days of the port being nothing more than a mere berthing space for ships has long changed. Even vessels and shipping businesses have changed, and we now have commercial ships, military ships, tourism ships etc. that need modern technology and a strategic management system to maximise efficiency and productivity.

The techniques needed to achieve optimum growth in port logistics and shipping management is therefore a very fundamental strategy for nations and stakeholders to adopt and take seriously, if they want to stay ahead in the present day competitive maritime industry.

Okotie, a maritime transport specialist, writes via fokotie. bernardhall@gmail.com, Fokotie@bernardhallgroup. com

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Tuesday 24 September 2019

BUSINESS DAY

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Fakery, quackery and piracy in Nigeria

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ounterfeits kill.

Especially fake drugs. Counterfeit medicines are killing the economy of Nigeria, its businesses and its people.

Because they are cheap and easy to produce and sell, the business of fake drugs attracts the unscrupulous and has become prevalent.

More importantly, demand for medicines is elastic i.e. a change in price is the major factor that drives the decision to buy. Hence, the cheaper the price, the more it will be demanded. As a result, substandard drugs, made from cheap, and often medically ineffective, substances, produced in a backyard are proliferating the market through a vast distribution network.

Fakery and piracy thrive in Nigeria because the economy is highly informal, poorly regulated with porous borders, recovering feebly from a recession, burdened with unemployment, battling with inflation and a currency whose value has depreciated.

Poor Nigerians, who are in the majority, can’t afford genuine products so they opt for counterfeits.

In developing countries, drugs for treating life-threatening illnesses like malaria and tuberculosis are the most counterfeited.

This is a triple jeopardy for the health of the public, companies and the economy. Fake drugs not only affect the business of pharmaceutical companies it destroys the reputation of their brand; and, because it fails to cure the patient of, say malaria, it’s killing tens of thousands in a country where population size is a market advantage.

A 2007 Global Fraud Report

by Kroll, a risk advisory firm, notes that businesses in the pharmaceutical and healthcare sector are most vulnerable to risks from regulatory breaches and abuse of intellectual property. In its 2019 report on how the abuse of intellectual property and copyrights affects the economy, PwC, a consultancy, estimates Nigeria is losing N200 billion a year to fake drugs.

Every naira made from a fake drug is a naira stolen from the original owner of the product or idea. This is bad for business, consumers and the economy.

Nigeria has emerged a hub and entrepôt for cheap substandard fakes for local and foreign traders.

As a result, sales in the Nigeria pharmaceutical industry have declined by over by 35.7 percent since 2015 and expected to fall even more, according to a Fitch Solutions report on the pharmaceuticals and healthcare business in Nigeria.

At the peak of the recession in 2016, drug makers saw their sales drop by 20 percent to $722 million from the $904 million made in 2015. And despite a rebound in the economy in 2017, sales fell further by 11.9 percent to $636 million but rose to $666 million in 2018.

At the heart of this is weak intellectual property rights. An economy is as strong, innovative and developed as its laws.

Laws, for instance, that encourage investment, incentivise innovation, protect copyrights and encourage research and

development. Otherwise, local and foreign businesses will invest elsewhere. Strengthening laws that protect inventions of entrepreneurs from being stolen copied or used without a share in the financial benefits increases the amount of investment in the country.

Nigeria, however, has one of the weakest laws that protect intellectual property.

Stronger regulation and enforcement (shutting the border at Cotonou is not an example) will help. So too will legislations and policies that deter infringement and stimulate innovation, and investment. PwC reckons regulatory agencies and the private sector could collaborate more to raise public awareness about why it pays to respect intellectual property rights.

Amid these challenges, technology is playing a big role as start-ups such as mPedigree and Sproxil have come with innovative ways to curb the manufacture and spread of fake drugs. These initiatives will prove more effective with better, stronger and enforced laws and policies.

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Setting targets for ministers

O

n 14th August 2019, shortly before Ministers were assigned portfolios, President Buhari announced that Ministers will receive clear implementation targets tied to their portfolios and he will ensure that these targets are complied with and performance will be monitored by the Office of the Secretary to Government of the Federation.

This, of course, was very welcome news, especially as this announcement was followed five days later with a two-day “Presidential retreat for ministers-designate, federal permanent secretaries and top government functionaries.” Helpfully, the retreat elucidated government priorities beyond the three priorities – security, anti-corruption and economic growth and jobs – in the first term of the Buhari administration.

Everyone agreed that while these three priorities are appropriate and key, there are other equally pressing priorities like electric power, infrastructure, health and education that did not appear to have been given the same prominence as the top three. The Nigerian on the street is more likely to mention electric power as their priority before mentioning security and anticorruption.

In the 2019 ministerial retreat, government outlined 11 priorities for

the Buhari second term. These are: stabilise the macroeconomic environment; achieve agriculture and food security; ensure sufficiency in petroleum products; ensure sufficiency in power; improve transportation and infrastructure; drive industrialisation focused on small and medium enterprises; improve health, education and productivity of Nigerians; enhance social inclusion and reduce poverty by scaling up social investments; fight corruption and improve governance; provide security for all citizens; and improve access to mass housing and consumer credit.

Elements of these stated priorities and their underlying ideologies are very interesting, but I will cover those in a separate future article on “The changing role of the Nigerian state.”

While the President’s announcement that he will be setting targets for ministers and holding them accountable is welcome news, it is not the first time that this has been done in Nigeria.

On 22 August 2012, President Goodluck Jonathan went beyond setting targets to actually signing Performance Contracts (PCs) with his ministers which he termed “a momentous ceremony, the first of its kind in the history of our democracy”.

Indeed, he clearly stated his intention that the process should be replicated all through the system. That is: ministers will sign similar contracts with their permanent secretaries who in turn with their directors and so on.

Just like now, the populace duly applauded the move. Private sector commentators that saw the major weakness of the public service as lack of a performance management culture and the use of clear Key Performance Indicators were ecstatic (KPI). The

National Planning Commission (NPC) was given the responsibility for monitoring and reporting on the contracts.

They produced ministerial scorecards for each ministry, with clear KPIs agreed with the minister. It didn’t work.

I will tell you why.

Firstly, government budgeting is mostly unrealistic with regards to the availability of revenue to fund the budget. This means what is budgeted is very different from what is eventually released. In many years, the federal government has not been able to release more that 50 percent to 60 percent of the funds budgeted for capital expenditure.

Secondly, ministers are not the “Accounting Officers” in their ministries.

This means that although ministers are the chief executives of the ministries, they do not hold the chequebook. The permanent secretary does.

Thirdly, the minister cannot employ, sack or even discipline any civil servant by himself. All appointments, promotion and discipline matters are the constitutional preserve of the federal civil service commission. I mean that a minister cannot even issue a query to an administrative officer. The minister is allowed a couple of aids paid for by government. I really mean a couple. Two. One special assistant and one personal assistant. No more.

If a minister has any more aides, she must pay for them by herself out of her salary or find a donor that is willing to fund their salaries.

One year after signing the performance contracts, the planning commission assessed President Jonathan’s ministers against the targets they signed up to in their contract. Most of the ministers did not meet the targets they signed up to. Now, when you sign

‘

Given Nigeria’s experience with performance contracting, the recent laudable initiative to set targets for ministers must be handled with some sophistication

a contract and repeatedly fail to deliver, the consequences can be as severe as its termination. The ministers were therefore rattled.

The comforting thing though, was that virtually everyone missed significant targets. Therefore, the ministers rallied round and presented a united front. The first argument of the ministers was, “We didn’t really know what we were signing when we signed it.

We have not done this before and did not fully understand the implications.”

The killer argument was the second argument though: “You didn’t release the money we needed to deliver and we are not allowed to recruit our own staff. How can we be expected to deliver when we have no control over the financial and human resources needed to deliver?”

A similar argument was also advanced at state level when one state government tried to introduce performance contracts for his commissioners. One of the commissioners said, “Your Excellency, I will sign, but you must also sign that you will give me all the money I need to meet the targets and the freedom to hire all my own staff.” The initiative died a sudden death. The performance contract regime of the NPC similarly suffered infant mortality. It was never cascaded down the line, as the problems that killed it at ministerial level also killed it down the line.

Note: the rest of this article continues in the online edition of Business Day @https://businessday.ng Dr Abah is a development practitioner and the immediate past Director-General of the Bureau of Public Service Reforms.

Philippines, China and US: Joint exploration versus rearmament

P

resident Duterte’s joint exploration framework with China is a historical breakthrough. But since it has potential to de-escalate tensions over time, it is opposed by those interests that prefer rearmament, even if that would lead to a split of Southeast Asia and new nuclearization.

In early 2018, the Philippines and China agreed to set up a special panel to work out how the two could jointly explore oil and gas in parts of the South China Sea that both sides claim without having to address the issue of sovereignty. That was something of a breakthrough.

Last fall, President Xi Jinping’s state visit to the Philippines resulted in the bilateral memorandum of understanding on oil and gas development in the contested South China Sea (SCS). It was one of 30 documents signed during Xi’s visit in Manila.

Following a recent meeting with President Xi, Duterte said the Philippines could set aside the ruling of the international arbitral tribunal on China’s SCS claims, in exchange for a joint oil and gas exploration deal with Beijing.

The Xi-Duterte framework relative to Malampaya To undermine the breakthrough and cooperation, critics argue that Duterte is “abandoning” the international ruling on South China Sea. In reality, setting aside the ruling does not mean abandoning it.

As I have argued since the early 2010s, the friction between the Philippines and China can be overcome by focusing on the economic cooperative potential, suspending the stated bilateral differences, creating mechanisms to settle those disagreements over time and fostering joint confidence-building measures.

That’s what most ASEAN countries aspire to,

including those that have SCS disagreements with China.

It may be useful to compare the stated joint exploration framework with another historical precedent. In 1989, during the rule of President Corazon Aquino, a gas field was discovered offshore Palawan. Following successful appraisal in the ‘90s – the reign of Fidel Ramos and Joseph Estrada, respectively - the Malampaya field became operational in 2001.

According to its operators’ estimate, as of 2018, the Malampaya, whose supply is forecast to start declining by 2022, has surpassed $10 billion in Philippine government revenues.

That’s a nice way to say that that 90 percent of the Malampaya revenues go to multinationals in Europe and the US. In reality, the Philippine interest in the gas field is a just 10 percent, as opposed to 45 percent in the British-Dutch Shell and the US Chevron respectively.

According to President Duterte’s statement, China has promised to give the Philippines 60percent of the profit from any gas or oil deal as opposed to China’s 40 percent.

That’s a breakthrough; something that none of Duterte’s precursors achieved in the past decades.

Of course, there is another possible approach to the SCS issues, as well. After Duterte’s statement, Vice President Leni Robredo, the last major holdout of the Liberal Party meltdown following the 2016 election, blamed Duterte for a “shameful” sell-out to China over the joint-exploration deal. In turn, Duterte has argued that the Philippines needs to stop the “foolishness” of such scenarios.

Where would such scenarios lead?

The other scenario In the April phone conversation between President Trump and President Duterte,

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Trump boasted about two US nuclear submarines near North Korea. “We have a lot of firepower over there,” Trump said. “We have two nuclear submarines — not that we want to use them at all.” The willingness to use nuclear weapons in the region is the latest phase in the ongoing rearmament.

During the Cold War, Washington created the security architecture in the region, including the South East Asia Treaty organisation (SEATO) signed in Manila, in the mid-50s.

The SEATO’s stated task was to contain Soviet Communism. Hence, the US-led wars from the Korean Peninsula in the early 1950s and the massacre of almost a million communists and Chinese in Indonesia in the mid- ‘60s to the war in Vietnam and subsequent conflicts in the former Indo-China in the 1970s until the SEATO’s dissolution.

Today, the region looks very different. In relative terms, America’s economic role has been descending. Meanwhile, China has matured into a major economic contributor, as reflected by the economic spill-overs associated with One Road One Belt initiatives.

Ever since President Obama’s pivot to Asia in the early 2010s, Pentagon has been pushing rearmament in the region, through arms sales.

In 2017, the US sold $42 billion in weapons to foreign countries, but $8 billion (20 percent of the total) in the “Indo-Pacific” region. Yet, in global arms transfers, Asia Pacific is the most lucrative region (over 40 percent of world total). Consequently, US defence contractors would like to double their revenues in the region.

Pentagon’s highest executives have a personal stake in rearmament. Former US defence secretary James Mattis served on the board of General Dynamics, a leading US de-

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DAN STEINBOCK fence contractor. His successor Patrick Shanahan served over 30 years in executive roles at Boeing, the largest US military exporter.

Current defence secretary Mark Esper has been recognised as America’s top military lobbyist. He spent seven years as the head of government relations at the leading defence contractor Raytheon.

In the early 2010s, the strategic goals of the former Aquino government and those of current Vice President Robredo have largely converged with the US “pivot to Asia.” As President Obama’s defence secretary Leon Panetta affirmed in 2012, this plan was predicated on the deployment of 60percent of US warships to Asia Pacific by 2020 – that is, next year.

Last month, Pentagon’s new chief Esper illuminated the next phase of US rearmament in the region.

Note: the rest of this article continues in the online edition of Business Day @https:// businessday.ng Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see http://www.differencegroup.net/

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14

Tuesday 24 September 2019

BUSINESS DAY

COMPANIES & MARKETS

COMPANY NEWS ANALYSIS INSIGHT

CONSUMER GOODS

Credit Bureaus reduce financial constraints to SMEs by at least 22 percent-Popoola With Nigerian Banks asked to lend more, experts say the focus has shifted to Credit Bureaus. In this interview, with BusinessDay journalist Segun Adams, Ahmed ‘Tunde Popoola, Managing Director/CEO of CRC Credit Bureau Limited explains how the presence of Credit Bureaus guarantees easy access to credit for individuals and businesses.

T

he Credit Bureau Industry started in 2008 perhaps reflective of the country’s financial literacy, not a lot of Nigerians know what Credit Bureaus are, can you shed more light on what you do?

Credit Bureaus are institutions or infrastructures put together by every country to encourage access to credible information for creditors or lenders to have good information about the performance of financial obligations of every borrower or anyone who buys on credit.

So where you have Credit Bureaus the source for information about loans that are being taken and try to develop products around credit history and credit scores including credit ratings for all individuals and entities in that economy.

The whole objective is to make such information available for creditors and lenders to be able to lend with some level of confidence and trust.

One of the main challenges that lenders face generally is to know the capacity of potential borrowers and their willingness to repay loans and Credit Bureaus believe if one has been behaving in a particular way or pattern, the tendency is for such person to behave the same way in the future.

Credit Bureaus put data from various sources including banks and public utilities like electricity, water, telecommunications and data companies, to generate credit report and credit scores which lenders then rely on to be able to determine the creditworthiness of every individual or entity in that particular economy.

When that is done, the major benefit is that lenders would no longer give credit in the dark; they would lend based on credible information about potential borrowers, hence minimizing the risk of their business.

The second advantage is that it allows for risk-based pricing means persons with credit score pay a lower rate of interest than those with higher risks.

The third one is that it helps lenders overcome the challenge of information asymmetry which occurs when creditors do not know about a borrower but only rely on the information made available by the person seeking credit; with Credit Bureaus, banks and other creditors can get information from

Popoola

an independent third-party thus minimizing haphazard selection.

For the borrowers, the existence of Credit Bureaus means those with good credit history would be opportune to have more access to loans and can buy on credit; more so, they would be able to negotiate the rate of interest they pay based on their credibility.

Overall, the economy would benefit as the efficiency of getting access to credit improves and the process of becomes de-personalized by making sure that even with machine learning and automated processes, credit can be granted within seconds and the manual process of interviewing customers and getting written application would be done away with.

Also, credit analysts would no longer rely on emotions to run credit analysis so Credit Bureaus make access to credit easy by providing useful information, removes sentiments and reduces human-errors in the process leading to an increased volume of daily transactions in the economy and growth of national income.

Where you have Credit Bureaus, it reduces the financial constraints to Small and Medium Enterprises (SMEs) by at least, 22 percent. This means more businesses-especially SMEs which are the engine of growth for developing economies like Nigeria-would have access to credit.

On the consumer side access to credit stimulates demand; in any economy where you have Credit Bureaus, overtime the GDP grows.

The industry is a little

more than a decade old, as an industry leader how has the journey been for Credit Bureaus in Nigeria?

It has been an interesting and a hard journey to where we are today but it is good to say the Credit Bureau industry in Nigeria today seems to be supply-leading and demandfollowing.

By supply-leading I mean those who started Credit Bureaus in the country believing that lenders would someday need their services while demand-following is a situation where the lenders themselves see the gap in the absence of Credit Bureaus and therefore co-operate to share information amongst their selves.

It is both ways in Nigeria because before the licensing regime in 2008 there had been a Credit Bureau trying to enter the market but the acceptability was very low because while the Credit Bureau saw the opportunity, the market operators did not see the need for their services until 2008 where the banks came together to form CRC Bureau and that is why the Credit Bureau is owned by a consortium of some of the biggest banks in Nigeria.

The Central Bank of Nigeria (CBN) through section 57 of its Act began licensing and regulating Credit Bureaus in 2008.

In 2009 we came live and three bureaus were licensed; we started with less than 12 banks and the percentage of data that was accepted in the bureau was just about 20 or 30 percent but today we have about 1,500 institutions on our platform, and those institutions cover all the commercial banks in Nigeria, all

microfinance banks, we have the primary mortgage banks, the specialized banks like the Bank of Industry, Bank of Agriculture, Federal Mortgage Banks and so on, we have the leasing companies, the finance houses and the fintech companies.

We also have the pharmaceutical companies, the retailers, insurance companies and even players from segments outside the financial institutions which give credit or sell on credit.

Our repository today is over 30 million compared to under two million when we started; so we have grown in terms of volume of data in our repository as well as the number of institutions and sectors we cover. We have electricity distribution companies (DisCos) and telecommunications companies submitting data and using the bureau services.

The other thing that has happened is that we have had the opportunity to develop an array of products to support lenders and creditors in the market.

When we started we had just the credit information report which covers credit history of obligors whether as individuals or as businesses but today we have about 13 products including credit scores, credit monitoring products, portfolio management products, products on training and capacity building and so on.

Beyond that, the Federal Government, the CBN and the International Finance Corporation (IFC) have done a lot to help the industry.

In 2013, the CBN reviewed the guideline issued in 2008 having seen the bureaus operate for five years and the inhibitions inherent in the former regulation.

Four years after, an Act of parliament was passed called 2017 National Reporting Act, a legislation that supports of Credit Bureaus and defines in clear terms the responsibility of each stakeholder in the market.

The Act makes it comfortable for us to operate and has given us legitimacy; it has also boosted our ranking on the ease of doing business in terms of access to credit which is the criteria Nigeria rank highest among parameters that are summed in the ease of doing business.

Credit Bureau Coverage in Nigeria is around 11 percent according to World Bank data and lower than coverage in African Peers like Ghana, South Africa, Kenya Egypt, and even sim-

ilar economies across the world. Why is this so?

The analogy I can make is this: when a university student has mostly D grades in his or her first and second year and then scores A parallel, the cumulative average grade does not improve so much and the person would need some time to even reach a second class upper with subsequent excellent performance.

Nigerian banks used to lend only to big corporates and only a small segment of the consumer market before the advent of Credit Bureaus.

The volume of transactions of the typical Nigerian bank it was almost 97 to 3 percent.

Loans to SMEs and consumers was under five percent generally in terms of volume and when you consider the value the situation was even worse.

Because bureau data is based on existing borrowers, it took time to build on that and since bureaus started, banks now have SMEs desk.

The 11 percent you mentioned as Nigeria’s coverage is calculated by dividing the data Credit Bureaus have by the number of the adult population of the country.

If you divide 30 million data by almost 200 million people you would see that it is low but that is an improvement from under five percent coverage in 2008.

We are making strides and would soon meet up with a lot of the countries ahead of us.

Recently the CBN issued directives for lenders to give a minimum of 60 percent of consumer deposit as loan, how has it impacted on the Credit Bureaus?

Even before the pronouncement of the CBN governor, which I have to commend, there has been some upsurge in the volume and value of loans that were booked by financial institutions especially in the last 12 months and there are about two drivers for that.

The first driver is the coming of fin-techs who have very simple technology to make loans available to people who do not have bank accounts in few minutes and this has put a lot of pressure on commercial banks to think through how to compete in that space.

We saw some commercial banks partnered with fin-techs, some invested in fin-techs while the others came up with their applications to lend to a lot of people within 24 hours and also lend small amounts of money to consumers.

The second thing that started before the CBN governor made the announcement was the fact that most banks had SMEs desk in an attempt to leverage Credit Bureaus data in lending to the businesses. Today most banks now have SMEs desks as well as special loan packages for SMEs. In the last two or three years also virtually all banks have introduced credit cards with was not available before that time and that speaks to the fact that with the bureaus the lenders now have credible information to work with as well as a reliable institution to submit data to on every customer that borrows.

Customers now know that if they default, banks can check against the database, discover their compromise and decline their loan request; not just lenders even utility companies can access the database.

With the lending policy announced two months ago, it is too early to start seeing the impact.

The directive is to lending at least 60 percent or the gap is sterilized by the CBN. No bank wants that but at the same time they do not want to just give loans out without due diligence so we are beginning to see a lot of engagement with the banks who are asking questions about what products we can give to them to do more.

We are also beginning to see a lot of banks change the model of their lending; before quite a number of them have an array of staff who access our system through the website but today most of them are opting for electronic linkage that is Application Processing Interface (API) which is faster and more efficient method.

The other thing that has come to play is that we have introduced our credit scores as a way of looking at the totality of information in the credit report and reduce it to three digits that show the level of risk associated with each borrower. The score ranges from 300 to 850 with a lower score indicative of higher risk, and vice versa.

With that, the banks have a scientific way of profiling their customers although the minimum acceptable score varies with individual banks and reflects their risk appetite.

Latest data show that the economy slowed for a third straight quarter and some key sectors where loans have to be

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

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Tuesday 24 September 2019

COMPANIES&MARKETS

BUSINESS DAY

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Business Event

Stock, bond investors unresponsive to Buhari’s economic advisory council DAVID IBIDAPO & OLUWASEGUN OLAKOYENIKAN

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he weak investor sentiment on the Nigerian Stock Exchange (NSE) remained unchanged in spite of President Muhammadu Buhari’s move to set up an Economic Advisory Council largely dominated by renowned economists.

Year-to-date returns to investors worsened further to -11.9 percent at the end of trading on Friday after the All Share Index (ASI) which measures the performance of all stocks on the exchange dipped 0.3 percent.

Last week Monday, Buhari constituted an Economic Advisory council headed by Doyin Salami, a renowned economist to replace the existing economic management team. The move by the president is towards reviving and restoring faster growth in the economy after a snail-paced growth in the last four years.

Some analysts, however, were of the view that investors were yet to price in the information as concerns abound on whether or not the president would listen and implement recommendations from the council or treat the council as an image-laundering tool.

Reversing a week on week bullish run of 2.3 percent recorded week prior to last week, the market plunged 0.47 percent w/w, in market capitalisation.

According to the National Bureau of Statistics (NBS), in the last six years, the equities market has witnessed a deceleration by 22 percent in capital inflow as investments are rotated into money market instruments which has accelerated at an annual average of 71 percent as at Q1 2019.

This signals the perceived heightened risk position of

Nigeria by foreign investors which has affected the market value of listed firms as prices have crashed to their lows.

To buttress this further, returns of the stock market in dollar term since the global financial crises has been negative with FPI’s investments grossly below prior levels amid strengthening dollars against naira.

The sluggish growth of the Nigerian economy has thrown a large part of its population into a poverty trap while companies seem to be growing, however, this growth is a mirage, BusinessDay analysis show.

Investors in the stock market would need more than just an announcement of an economic team but marketmoving policies, reforms and implementation towards reviving the current precarious state of the Nigerian economy. “if only the president will listen and implement recommendations proposed by the EAC, then the medium to long term of the equity market is positive,” Paul Uzum, a Lagos state stock broker told BusinessDay. A similar trend was also observed at the fixed income end of nation’s financial market.

The bond market largely recorded positive performance in the week, but that could not be sustained in the last trading session of the week The bond market commenced Tuesday’s trading session on a bullish note at 14.45 percent levels, as investors looked to re-invest coupon payments received earlier in the week.

The positive sentiment, however, turned negative towards the close of the trading session as bondholders sold-off outstanding assets following the release of the September 2019 FGN Bond offer circular by the Debt Man-

agement Office (DMO).

Consequently, yields rose by 10 basis points on the average across the FGN benchmark bonds to close the trading session, while the T-bills market traded mixed.

On Wednesday, the bond market was bullish on the back of sustained demand interests triggered by inflows from bond coupon payments.

As a result, benchmark bond yields closed the session lower by 3 basis points on the average across the FGN benchmark curve. The T-bills market recorded sell-offs at the long-end of the Nigerian T-bills curve as market participants offloaded positions in anticipation of supply from the T-bills primary market auction This impacted negatively on instruments as yields expanded by 7 basis points on the average across the T-bills benchmark curve.

The bullish run in the bond market continued until Friday’s session as investors traded in anticipation of the outcome of the Monetary Policy Committee (MPC) meeting held during the week.

The CBN maintained status quo at the meeting. Consequently, average benchmark bond yields closed lower by 6 basis points, while yields across the benchmark Nigerian T-bills curve compressed by a basis point on the average.

“We anticipate a slight retracement in yields in the coming week, as market participants price in supply coming from the monthly FGN Bond auction scheduled for Wednesday, September 25, 2019,” analysts at Zedcrest Capital Ltd said in a note to clients. “We maintain our cautious outlook for T-bills at current yields as we expect the Central Bank to float multiple OMO auctions to check liquidity levels.”

L-R : Onasanya Oluwafosin, medical officer , Ayantuga Health Centre, Mushin; Anselem Igbo, chief executive, Stanbic Insurance Brokers, and Okuwasayo Ajayi ( r), a member of the community, and others at the official commissioning of the labour room donated by the Stanbic Insurance Brokers in Lagos. Pic by Pius Okeosisi

L-R: Mele Kolo Kyari, GMD, NNPC; Folashade Yemi-Esan, acting head of civil service; Timipre Sylva, minister of state, petroleum resources, and Simbi Keslye Wabote, executive secretary , Nigerian Content Development and Monitoring Board, at the press conference on the outcome of 2day ministerial retreat with directors and executives of the ministry in Lagos. Pic by Pius Okeosisi

FCMB rewards more customers in third draws of ‘millionaire promo season 6’ MICHAEL ANI

F

irst City Monument Bank (FCMB), a Nigerian mid-tier lender, has empowered another set of 644 customers with cash and various exciting gifts at the third draws of the bank’s on-going bumper reward scheme tagged, ‘’FCMB Millionaire Promo Season 6’’.

The electronic selection of the winners, which took place at the regional and zonal levels of the bank across Nigeria, was witnessed by officials of the Federal Competition and Consumer Protection Commission (FCCPC), National Lottery Regulatory Commission (NLRC), thousands of customers of the financial institution and other dignitaries.

While four lucky customers were rewarded with the sum of N1million each at the regional draws held in Lagos,

Kano, Uyo (Akwa Ibom State) and Ilorin (Kwara State), 640 others smiled home with LED televisions, generating sets, decoders, tablets, smartphones and other consolation prizes.

At the Lagos Regional draw, Hosny Mattar won the star prize of N1million, while Patricia Anya was rewarded with the same amount at the Abuja & North Regional draw. In the same vein, Orji Chinenye emerged winner of N1million at the South-East/South-South draw held in Uyo, just as Ajai Aderotimi smiled home with N1million at the South-West regional draw in Ilorin.

The ‘’FCMB Millionaire Promo Season 6’’, which is still on until November 2019, is designed to provide extra empowerment, reward and value for customers of the Bank, while encouraging financial inclusion and savings culture.

The promo is targeted at all

segments of the society, especially existing and potential savings account customers of the Bank. This, however, excludes salary and domiciliary account holders.

Speaking on the latest draws of the promo, the Executive Director, Retail Banking of the Bank, Olu Akanmu, assured that the bank will continue to appreciate and empower customers to fulfil their aspirations.

“The fact that the lives of thousands of our customers have been positively changed through the promo speaks volume about its impact. We are also committed to distinguishing our offerings in the retail banking space by delivering exceptional products and services that would ultimately ensure the growth and achievement of the aspirations of our customers,” he said According to him, that is

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L-R: Tara Fela Durotoye, founder of House of Tara International; Chidi Ajaere, executive chairman, GIG Group; Stephanie Obi, founder of TrainQuarters; and Paul Okeugo, co-founder & COO of Chocolate City Group at the TrainQuarters Launch Party in Lagos.

L-R : Heather Lanigan, USTDA regional director for Sub Saharan Africa; Debo Fagbami, COO for Xenergi Limited; Emeka Ene, chief executive officer , Xenergi Limited, Kathleen FitzGibbon, Charge d’Affaires US Embassy Abuja, and Ijeoma Ikoku Okeke, CFO, Abuja Electricity Distribution Company and its Managing Director, Ernest Mupwaya during launch of U.S. Trade and Development Agency 3 energy projects in Nigeria with Xenergi Limited in Abuja recently.

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16

Tuesday 24 September 2019

BUSINESS DAY

COMPANIES&MARKETS

Business Event

TRANSPORT

POP Taxi launches ride-hailing service in Nigeria ... to commence in November with free rides ENDURANCE OKAFOR

K

abbu Technologies has announced the official roll-out of POP Taxi app in a bid to redefine riding experience, and bring convenience to customers as well as drivers in Lagos.

POP TAXI is a new ondemand cab-hailing and ridesharing app service in Nigeria.

The app is owned and managed by Kabbu Technologies Ltd, partnered by a Canadianbased investment group.

The technology platform is developedtomaketransportation system safer, cheaper and convenient in selected cities in Nigeria, while helping drivers earn cash to elevate their living standard.

With just the use of their car and smartphone, drivers can successfully launch their own business, work their own hours, earn a decent income, and take charge of their lives.

It has been created with a philosophy of “Minimal Com-

mission” and ‘No Surge.”

“POP Taxi commitment to safety is very extensive.

We make sure that drivers go through extensive background checks, so we know who they are, where they are, and what they look like,” Nyemike Okonkwo, Founder/ CEO, Kabbu Technologies Ltd told BusinessDay. “Every ride is tracked real-time, and customers can share the status of their trips with friends and family.”

In addition, there is an inapp emergency button to call for help if the need arises. POP Taxi is also partnering with leading insurance providers to help protect both riders and drivers if anything happens.

POP Taxi caters to the needs of everybody because we have three different vehicle choices – Sedan, Mini and SUV. Riders can choose the standard sedan cars, the little budget mini, or the luxury SUV vehicles.

With POP TAXI, we plan to change the way the ride-

hailing industry is perceived in the country by bringing about a paradigm shift in this sector with a business model built on the ethos of bringing fair play and technology innovation for the larger public.

POP TAXI will also be launched in other major cities in Nigeria - Abuja, Port Harcourt, Enugu, Asaba, Benin, Owerri, and Warri. There is a plan to launch in cities in Africa – Accra (Ghana), Nairobi (Kenya), Jo’burg (South Africa) and Monrovia (Liberia).

According to the Okonkwo, Lagosians will be able to book for rides from November 2019 and “during the official launch of POP Taxi, passengers will have free rides and after that will come a 50 percent discount.

We have a lot in stock for Lagos residents because it’s the first city we’ll be launching in Nigeria.”

On the international scale, POP Taxi will be launched in Canada, Australia and the USA among others.

Ebere Ihedioha ,wife of the governor of Imo State; Vivian Ironna, wife of deputy governor, Imo State; flanked by Chioma Nwachuku, general manager, External Affairs and Communications, Seplat Petroleum Development Company Plc (right) and Engr. Ayodele Olatunde, general manager, Eastern Assets, SEPLAT (left), during the opening ceremony of SEPLAT’s 2019 Eye Can See and Safe Motherhood CSR Programmes in Izombe, Imo State ...

Tiger Beer holds unique “Uncage Party” to relaunch brand

T

iger Beer - a product of Nigeria’s leading brewer, Nigerian Breweries Plc hosted its unique “Uncage Party”, on Friday, September 20, 2019, at the Landmark Beach, Victoria Island, Lagos to reintroduce itself to fearless and restless young Nigerians across the country.

The event featured a host of celebrities and consumers who got the chance to try out a series of exciting activities and “uncage”, as Tiger beer marked a new dawn in the Nigerian beer industry.

The Tiger beer brand which is enjoyed in over 60 countries has been the brand known for its laudable advocacy for uncaging the pragmatic and resourceful sides of its consumers, breaking limitations, defying expectations, challenging conventions and setting new frontiers just like the beer brand itself.

Here in Nigeria, the story is not any different and the brand has taken it a step further as it seeks to reestablish its stance as well as simultaneously uncage the restless Naija energy

hidden beneath the Nigerian millennials’ constant hunger for a brighter future.

The Tiger beer brand which champions unique creativity, distinct art, clear-cut bravery, fierce pursuit for passion in arts, music, fashion, food, adventures and entrepreneurship and above all an uncommon taste of refreshment is brewed with only the purest of ingredients through a careful brewing process which produces a unique tasting beer to uncage the thirst and refreshment of millions of its consumers.

The A-list event featured some of Nigeria’s leading stars in the entertainment scene as the likes of BOJ, Rema, Ajebutter22, Noble Igwe, TeddyA, ShowDemCamp and Waye amongst others, graced the event and joined in on the “uncage vibe”.

Commenting on the relaunch, Brand Manager – International Premium, Nigerian Brweeries Plc., Chinwe GregEgwu spoke of the brand’s commitment to remaining the uniquely brewed brand which

is championing the cause for young daring Nigerians who are unafraid to break the norms.

“We felt the need to once again re-introduce this laudable brand into the Nigerian market, but we assure our consumers that nothing has changed in the unique brew taste of Tiger. The brand is still the beer of choice for the daring ones who are unapologetically different and are unafraid to Uncage their fears,” she said.

Tiger Beer was born in 1932 on the streets of Singapore. A world-acclaimed lager beer, Tiger Beer is made with only the finest ingredients through a precise brewing process and uses only the finest quality ingredients. The result is the intensely refreshing, full-bodied taste of one of the world’s leading contemporary beer brands that have won over 40 international awards and accolades including Gold at the prestigious world beer cup, Gold medal at the Commonwealth Bottled Beer Competition, and the BIIA’s World’s Best Lager Beer award among others.

2Baba to host BBNaija Top 10 Housemates at #20YearsAKing Abuja Concert

T

he highlight of the 2baba Week so far appears to be the unannounced visit to the Big Brother Naija house.

Hailed as the most exciting celebrity visit so far at this year’s Big Brother Naija, the housemates got to meet and party with the music icon who turned a year older a day before. The housemates got super excited when they got the offer to be hosted at 2Baba Live #20YearsAKing concert scheduled for October 11 at

the International Conference Centre, Abuja.

2Baba also came bearing gifts, his own custom branded “Necklace 2” earphones making the Top 10 the first set of people to own the premium merchandise released in partnership with leading mobile accessories brand, Oraimo.

2Baba who was there with his manager/ business partner Efe Omorogbe, and Larry Gaaga, performed two songs as well as enjoyed tributes by the housemates backed by a www.businessday.ng

superb Alternate Sound.

The week has been all about music icon 2Baba, it started on Monday, September 16 with the arrival of the winners of Next Up - Online Talent Search, followed by an array of activities such as Media Day, Campaign for Peace and Good Governance, Radio Takeover, Industry Nite Special, BBN surprise visit, Abuja Make It Red Festival with Campari and it ends with a bang at the grand finale at Rumors Nite Club Festac.

L-R: Samuel Ayuba, head, Ogun Office 1, Standards Organisation of Nigeria (SON); Yakubu Dauda, director, operations; Chinyere Ugwuonwu, director, standards development, and Osita Aboloma, director general, during SON meeting with the steel bar manufacturers in Nigeria, in Lag

L-R : Seun Bode, Managing Director, Trashusers;with Tobi Ogunpehin, Corporate Communications, Nestle Nigeria plc; Edidiong Peters, Public Affairs Specialist, Nestle Nigeria, both members of the Food and Beverage Recycling Alliance (FBRA); Nwamaka Onyemelukwe, Head, Public Affairs and Communications, Coca-Cola Nigeria Limited, also Technical Lead, FBRA; and Osifebo Olusegun, Assistant Marshal, Lagos State Environmental Sanitation Corps (LAGESC); during the World Clean-up Day commemoration at Agege Community in Lagos on Saturday, September 21, 2019.

Credit Bureaus reduce financial constraints to SMEs by at least...

Continued from page 14 disbursed and underperforming, what are the broad ways to ensure that bank’s loan do not go bad?

Sadly, we have not been able to grow the GDP more than our population since we exited the 2016 recession. Nigeria is the only country in the world apart from worn-torn nations where the number of people living in poverty is increasing; the global trend shows a decline.

The service industry has

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been the driver of growth in recent times while agriculture and manufacturing, core drivers of the economy, have not been impressive.

To address the issues we must focus on three main drags; the first of which is power.

For SMEs, the cost of production is astronomical and this kills the country’s competitiveness and drives businesses out of the country.

In the last 10 to 15 years power production has been hovering around the same range and below the capacity needed @Businessdayng

for domestic production.

The second one which is transportation; Nigeria needs a good transportation system to enhance the mobility of goods and services.

The Lagos-Ibadan expressway in the last decade has not improved and I only ply that road when it is necessary. The state of our road infrastructure needs to be addressed because of the impact it has on commerce.

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Tuesday 24 September 2019

BUSINESS DAY

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Tuesday 24 September 2019

BUSINESS DAY

Media business Nigeria’s packaging industry attracts more investment as Jaro firm commits $12m … Boosts local content policy Daniel Obi

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ith strong confidence in Nigerian economy, the most populous nation in Africa, management of Jaro Industries and a subsidiary of Dee-

kay Group has invested a total of $12 million about N4.3 billion into carton manufacturing to enhance packaging business in the country.

According to the company, 30% of the investment is family shareholders equity while 70 % is sourced from banks. Packaging is unavoidable part of manufacturing sector and it cuts across various industries and it enhanc-

es branding and marketing.

The Jaro factory which was opened last weekend for business by Ogun State governor, Dapo Abiodun; alongside the CEO/Managing Director of Deekay Group, Kavine Vaswani; and other dignitaries is sitting on a 28 Acre of land in OPIC’s New Makun Industrial City of Ogun State along Lagos-Ibadan Express road.

Kavine said the company

L-R: Kavine Vaswani, CEO, Deekay Group of Companies; representative of Ogun State Governor; Yemi Adesoye, managing director, OPIC, and representative of Alake of Egbaland, Oluyinka Kufile, Aro of Egbaland during the inauguration of Jaro Industries factory in Makun Industrial City, Ogun State

Survival: Collaboration, new thinking and practice in digital era suggested as solutions for Ad industry Daniel Obi

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igeria’s advertising industry is not spared by the heat arising from the harsh business landscape occasioned by poor infrastructure, government policies, growing insecurity and declining value of Naira among others which has led to low activity in the manufacturing and services sectors including Ad industry.

The Ad industry, as some other sectors, is further affected by the evolution in the digital world, a development that has disrupted age-old practices, created dynamism in consumer demand and raised competition from local to global level.

In other, therefore to continue to reduce the erosion of margins and survive amidst the challenges and create value to clients who are equally seeking solutions to hedge the turbulent time and global competition, members of Association of Advertising Agencies of

Nigeria, AAAN used the opportunity of their 46th annual meeting recently to discuss the way forward.

At the meeting, entitled ‘The war within: Solutions for survival’ speakers unequivocally told them that collaboration among themselves, supportive of one another, discovery of more markets, creation of data bank for resources and creation of business solutions for their clients are ways to forge ahead in the difficult time.

More importantly, they were told that the new world requires a paradigm shift from old thinking.

Citing examples of how technology has disrupted practices such as riding carts to cars to aeroplanes and to drones, Jimi Awosika, Vice Chairman of Troyka Holding who spoke at the forum told the Ad men that they must understand the environment if they must find solutions.

He said professionals need to understand where the world is going, stating that conversation for business existence has moved into the realm of solutions. “It is no more scope www.businessday.ng

of work but scope of value”. He said what makes an agency relevant to business is the value the agency brings to the table.

Bola Thomas, AAAN Trustee who also wondered how the agencies are making it in the difficult time underscored new thinking and collaboration in the industry as strength.

During the panel discussion, Steve Babaeko who noted that other sectors are equally discussing solutions said the industry has changed and therefore the kind of solutions Ad men provide should also change. He said the economy now lives in co-sharing, and Ad men should copy such model.

Lanre Adisa suggested for pooling of resources to build data bank for Ad men to leverage for their business in the new era.

Speaking earlier, the chairman of AAAN, Ikechi Odigbo said the theme of discussion is not only apt but imperative given the significant developments and challenges the entire marketing communication industry is facing.

relies on 70% local source of its materials and presently employs about 250 people directly and 350 contractual workers. He said the employment level will likely increase to about 800 people when the efficiency rate of the company builds up Kavine said “the completion of this project is to further demonstrate the Group’s commitment and belief in the Nigerian economy. I must say, there is a lot of potential for economic growth in Ogun State and that is why we have decided to take this bold initiative by citing the factory in this state, with the help of special partners” While declaring the factory opened, the Ogun State Governor, Dapo Abiodun, represented by Managing Director of OPIC, Yemi Adesoye expressed delight on the project. “We are indeed very pleased to have you plant your factory in Ogun State; it shows we are doing certain things right, which has attracted you to our state”. He assured investors all the necessary support they require for a smooth operation in the state.

Also speaking, Director General of Manufacturers

Association of Nigeria, MAN, Segun Ajayi-Kadir said all nations that want to sustain their economy must pay attention to manufacturing as it is the only sustainable way to banish poverty.

While commending Deekay for building the factory in just 9 months, which will contribute to creation of jobs, Ajayi-Kadir said the factory will also increase the manufacturing sector’s contribution to GDP. He called on government to partner with the private sector to grow the economy as government is not good in business, stating that the responsibility of government is to provide the right environment for business.

The MAN director also told government to rescind its decision on the recent increase on VAT. He describes VAT as a tax that punishes the poor. He criticised the decision for the VAT increase that it was designed to empower the states to pay the minimum wage. “You cannot give something with right hand and take it with left hand and that is what the increase in VAT means”, he said.

SO&U Limited appoints Biodun Adefila as COO

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O&U, one of Nigeria’s marketing communications companies has appointed Biodun Adefila as its first Chief Operating Officer. Until her recent elevation, she was the company’s Executive Director, Brand Management, responsible for formulation and implementation of strategies for successful execution of its brand management initiatives.

With a rich pedigree and experience that spans decades, during which period she honed her skills at some of the country’s leading advertising companies, Adefila through her commitment, focus and dedication has been an integral part of the SO&U success story for over two decades.

She holds an MBA in Marketing from the University of Liverpool, UK and a Certificate in Advanced Management from the prestigious Lagos Business School.

According to the Company’s Group Managing Director, Udeme Ufot, “Biodun has spent most of the last two decades in SO&U growing through the ranks and living the values that have seen our Agency through its nearly three decades of existence. She can be described as a dyed in the wool SO&U person. There is no doubt that she has been well tutored for this moment”

Leo Burnett Lagos advocates strong retail market for Africa

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eo Burnett Lagos, a foremost creative advertising firm has urged brand builders and communicators to discontinue the strategy of building retail across products but people.

Lekan Lawal, the Chief Operating Officer of Leo Burnett Lagos stated this at the recently concluded 2019 Global Africa Forum on Communications (GAFCOMM), held in Kigali the Rwanda capital, with the theme: Speak for Africa: New Frontiers for Africa’s Global Growth Story.

While speaking on the topic “The Leo Burnett Way” as well as contributing at the panel

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session, titled “the future of retail in Africa”, Lawal in a press statement said, “Retail should be designed around people, not products. It should be designed in the context of multichannel shopping. We must deliver a relevant message that meets our shoppers’ needs at every channel along her path to purchase.”

According to him, the battle is on the ground already.

Africa is one of the fastestgrowing consumer markets in the world, he posited, adding “Household consumption has increased even faster than its gross domestic product (GDP) in recent years - and average annual GDP growth has consistently outpaced the global average.”

Lawal said “the vast majority of consumer spending on the continent still currently takes place in informal, roadside markets. But the consumer today holds the most power - better connected, and better informed. “So then, how can brands connect with these consumers in a manner that is resonant and relevant, in order to build stronger relation@Businessdayng

ships, in their quest to push the growth Agenda,” he queried.

“This African consumer is driven by hope and fear; hence we must understand them to a granular level. The more confident they are, the more they spend. The less confident the more they go into saving mode. Deeper understanding of the African consumer, both as a consumer and as a shopper therefore is crucial to winning in retail,” he recommended.

Speaking further on “This is the Leo Burnett way”, the adman reinforced how his agency has helped various organizations solve complex retail problems, particularly with the introduction of the ‘ARC’ tool, Leo Burnett’s edge to connecting with African shoppers, scientifically mapping their journeys and designing based on a deeper understanding of their behavior across various key channels.

Commenting on how Africa can solve it challenges through communication, Lawal said, “Most disputes are as a result of breakdown in communication.

Tuesday 24 September 2019

BUSINESS DAY

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ADVERTISING Expert gives advice on how local operators can grow in consumer retail space

Daniel Obi

Daniel Obi

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s local operators continue to scale in the organized consumer retail sector in Nigeria, CEO-designate of FoodCo Nigeria Limited, Ade SunBasorun, has charged them to tap into their native knowledge of the environment to drive the industry towards attaining its potential.

Sun-Basorun, co-author of the article, Africa’s Growing Giant: Nigeria’s New Retail Economy, stated that in spite of the current economic climate in the country, there continues to be opportunities for growth for value focused offerings at targeted segments of the Food and Consumer Goods Sector which is projected to generate $40 billion in revenue by 2020.

According to him, integrating digitization as part of the core fabric of business operations and go-to-market strategy can further accelerate profitable growth for local operators in the space.

He said: “The last decade has witnessed rapid growth of home-grown brands in the Nigerian consumer space. It is commendable that these indigenous brands are rewriting the narrative in the marketplace; however, the reality is that the organized retail sub-sector currently accounts for less than 20 percent of the

total ecosystem. This is grossly inadequate for the country’s growing middle-class and fast expanding urban population who yearn for the convenience, quality assurance and unique shopping experience that only modern retail outfits can deliver.”

“Indigenous players have the benefit of local experience and a native understanding of the operating environment which can be strategically leveraged to deepen engagement with stakeholders as well as response to market dynamics. Additionally, they have first-hand knowledge of changing consumer tastes and are in a position to readily spot market gaps. These can be huge advantages if properly harnessed,” he added.

Continuing, Sun-Basorun

noted that, “the Nigerian consumer is getting increasingly sophisticated and retail operators must be fluid enough to adapt to their tastes. Operators must embrace digitization and continuous innovation to reach customers at the point of their needs and unlock the manifold opportunities that exist within the space.”

In order to address the dearth of specialists in the sector, Sun-Basorun added that FoodCo established the FoodCo Fellowship, a novel initiative aimed at training a retail-ready workforce to drive growth in the Nigerian retail market. According to him, the Fellowship is targeted at MBA and post-graduate students with passion to build a career in retail.

NBC gets global recognition for good management of water

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igerian Bottling Company (NBC) Limited has been awarded for its Ikeja Manufacturing plant, an ‘Alliance for Water Stewardship (AWS) Gold Certification’. The international award which follows after a rigorous process is awarded to companies that meet international set criteria relating to management of water, both in a factory and outside the boundaries of a site.

The certification was presented by Control Union, Ghana, a global organization made up of members from leading businesses, non-profits, public sector agencies and academic institutions, following a thorough audit of the plants processes.

The NBC plant in Ikeja, Lagos is the first plant in Africa to be awarded the prestigious ‘Alliance for Water Stewardship Gold Certification’.

Nyarko said “NBC has achieved five key criteria stipulated for the certification

MTN latest board appointment expected to create warm relationship with government - marketers

including Good Water Governance, Sustainable Water Balance, Good Water Quality, Protecting Important WaterRelated Sources and Safe water, Sanitation and Hygiene for All”.

Receiving the certification, the Manufacturing Operations Director for Lagos and West, Nigerian Bottling Company (NBC) Limited, Soni Alok remarked that NBC is pleased with the recognition of the company’s extensive efforts to promote water sustainability.

According to him, these efforts

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are line with the Coca-Cola Hellenic Bottling Company Group’s 2025 sustainability commitments.

Head of Ecology and Conservation, Lagos State Environmental Protection Agency (LASEPA), Olayinka Omotosho, also noted during the certificate presentation in Lagos recently that the certification is a huge recognition for Lagos state as this would go a long way to validate the level of total compliance to standards pertaining to water sustainability operations in the state.

ctivities of MTN have in the recent time attracted public attention and the fresh board appointment of the telecommunication firm is no exception.

Presently, there are different interpretations of the latest board appointment by the telecommunication giant but marketing and brand building professionals who assessed the issues arising over the development said the appointment of the reputable individuals is a move to continue to place the telecom giant in an excellent brand position.

They said that the MTN board has over the years been built on quality people like the outgoing chairman, Pascal Dozie and others and the new board appointment of accomplished individuals is in that tradition of maintaining a board of people with substance.

Recent media reports have listed Ernest Ndukwe, one-time executive vice chairman of Nigerian Communication Commission as the MTN’s chairman designate. Others nominated on the board are Muhammad Ahmad, former Chairman of the Technical Committee of the Nigerian Code of Corporate Governance; Andrew Alli, a chartered accountant; Omobola Johnson, a former Minister of Communication; Ifueko Omogui-Okauru, former executive chairman of the Federal Inland Revenue Services (FIRS).

In justifying the appointment of former public officers and other individuals in the private sector who have carved a niche for themselves, a brand builder and CEO of Absolute PR, Akonte Ekine said the new board members are expected to guide the telecom firm appropriately in terms of strategic direction in compliance to rules.

“No matter what anybody says, the thinking of MTN is to appoint people who are respected in the society as such reputation will continue to rub off on the brand quality” In his assessment, the Managing Director of TBWA, an integrated marketing communication firm, Kelechi Nwosu said from feedback he received, analysts have commended the appointment of the individuals in the board as well chosen.

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“There are very well respected Nigerians and professionals who are nominated on that board, and there is diversity, not just gender as well as experience on the board. These individuals have been available in the market and if MTN has been sagacious enough to get them, this is fine. As a management, you are looking at a board that will grow the business and these are men and women of integrity. I think there is nothing wrong with the appointment”, Nwosu said.

He said as a country “we need to move away from the habit of grumbling and complaining at every issue and begin to build.

Another top marketing professional who wants his name not mentioned said what is required today is a new thinking in running business. He said these days, organisations need to compose board members that are

ernment or the regulatory agency. “Ernest Ndukwe was former vice chairman of NCC and if that will make MTN to comply with the lawS, it will better for the entire industry” He said the appointment of the former government officials may make MTN communicate better with regulatory agencies and government.

Recently, a rights group, Human and Environmental Development Agenda, HEDA queried the appointment of some individuals on the new board and gave Nigerian Securities and Exchange Commission, SEC 14 days to delist some of the members of the newly constituted board or face legal action.

The body argued that the former public officials are said to have been appointed to offer MTN undue advantage in Nigeria’s political and economic environment.

In a published report, the protesting rights group said

dynamic and future thinking that will bring value to the table.

A c c o rd i n g t o L e k a n Fadalopo, executive secretary of Association of Advertising Agencies of Nigeria, AAAN said every business has its strategic focus and MTN has reasons for appointing those individuals on its board. He said most organisations set up government regulatory departments and the reason is to further enhance their relationship with the gov-

the retention of the board members who were former public officers undermines best practices in corporate governance.

It will be interesting to see how this development evolves, but marketers who spoke to BusinessDay maintained that the appointment of the board members will rather promote cordial relationship between government and the telecommunication firm and the industry, the economy will be the ultimate beneficiary.

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Tuesday 24 September 2019

BUSINESS DAY

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Tuesday 24 September 2019

BUSINESS DAY

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Tuesday 24 September 2019

BUSINESS DAY

EDUCATION

Weekly insight on current and future trends in education

Primary/Secondary

Higher

Human Capital

Investment in learning infrastructure to unlock students’ potential, guide career paths - educationists KELECHI EWUZIE

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rofessionals in the education sector have identified investment in infrastructure by forward thinking schools as a strategic measure to create diverse opportunities for students to re-discover themselves and their future career paths.

They observed that poor physical infrastructure for teaching and learning in public secondary schools across Nigeria which impact students in the long run may have forced private sector to invest in modern infrastructure to unlock student’s potential.

Determined to drive transformation in teaching and learning across the country, Educational institution like Greensprings School Lagos recently announced plans to launch, Air and Sea Lab, Virtual Reality and Augmented Reality Lab, Business Incubator, as well as College and

University Readiness Centres in Lagos.

Barney Wilson, deputy director of Education, Greensprings School opines that the labs would help to provide the workforce in the leadership team for the future in Nigeria and the continent.

Wilson says with the air and sea lab, students would explore and research every aspect of air and water so they will seek to understand what is happening in their environment and come up with cutting-edge solutions that will help to resolve to issues in Nigeria and globally.

Speaking to Journalists in Lagos to announce its new innovative initiatives as the first thinking school in Nigeria, Wilson says Greensprings School hopes to partner with industries in Lagos to serve as catalysts for change in Nigeria.

Wilson observes that the lack of connection between industries and schools was the motivation behind the setting up of the initiative, adding that the school saw the opportunity and the gap.

According to him, “Very few students in secondary schools in Nigeria are knowledgeable about the industry. There are many opportunities for companies to start and for students to go into leadership positions where they too can head some of these multi-national companies that have offices here. So the things that we are doing are going to provide that connection that is missing.”

He further said that in the virtual reality and augmented reality lab, students will use the technology not only to explore different aspects of education, but also different aspects of science and world issues”.

According to Wilson, “The business incubators would allow students to start businesses that not only would impact Nigeria, but also will have worldwide impact. In addition to the labs, he said the two college career and university readiness centres; students will have the opportunity to research and explore colleges and univer-

Harrow School Online deepens A-Levels education option for Nigerian students KELECHI EWUZIE

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o enable Nigerians age 16 to 18 access quality Advanced Level education in preparation for tertiary institutions, Harrow School Online has opened a digital gate to Nigerians to apply for a place to start their education in September 2020.

The new school is founded on the traditions and academic excellence of Harrow School in England; a renowned fullboarding school for boys aged 13-18. The school was founded with the approval of Queen Elizabeth 1, who granted a royal charter in 1572 to the founder John Lyon to establish the school.

Harrow School Online is a co-educational school for ambitious students aged 16 and over, who have strong English skills and are looking for a prestigious, high-quality British education that suits their lifestyle. Heather Rhodes, Harrow School Online’s Principal says it’s a privilege to be at the forefront of this new chapter of education adding that we live in a rapidly changing world, and education must too adapt to the new challenges this pres-

ents, and reflect young people’s lifestyles and aspirations.

Rhodes while speaking to Journalists in Lagos via teleconference call says the school is pleased to be partnering with Pearson using their expertise in this area to make it a reality.

According to her, “Using the digital platform, students will take part in one-to-one academic tutorials, live online lessons with a teacher and other students, self-study lessons completed at a time and pace to suit the individual student, and regular coaching sessions that will provide them with personalised support and feedback”.

Students will be given the opportunity to study virtually for the Pearson Edexcel international A-Level examinations.

Focusing initially on STEM subjects (Chemistry, Physics, Mathematics, Further Mathematics) and Economics, the school will help prepare students for higher education and employment opportunities of the future. Sharon Hague, head of Pearson Schools in the UK, said: “Pearson is investing in digital innovation and our collaboration with Harrow School builds on our existing leadership in online schooling in the US and worldwide. Through www.businessday.ng

this innovation we are helping export high quality, British curriculum internationally, using technology to increase access to quality education for international learners.”

Pearson, the world’s learning company, is providing the technology that underpins the online school via a platform that is already used by more than 75,000 virtual school students around the world.

As well as the focus on academic excellence, the school will also aim to mirror the ethos of Harrow School in England as much as possible through a virtual house system, the opportunity to participate in extracurricular activities (such as a chess club and a student newspaper) and the chance to attend a summer course at Harrow School in England.

The UK-based and qualified teachers, who are subject matter experts will be recruited and trained to the same levels of excellence required by Harrow School. Harrow School Online’s Principal is Heather Rhodes who has worked at Harrow School for over ten years as the Head of English as an Additional Language (EAL) and the Academic Principal at Harrow School Short Courses (HSSC.)

L-R: Oluseyi Ojurongbe, manager, Sahara Foundation; Chizoba Imoka, chief executive officer, Unveiling Africa; Bolanle Olumekor, knowledge management assistant, United Nations Information Centre, Lagos; Femi Taiwo, executive director, LEAP Africa, and Chiamaka Oguonu, senior programmes coordinator, LEAP Africa, during the LEAP Africa-Citi Foundation iLead Stakeholders Engagement Meeting in Lagos.

sities of their choice here on campus. We know that such a lab does not exist now in Lagos or any part of Nigeria”.

Lai Koiki, executive director of the school says the focus of Greensprings School is always to ensure that students

are prepared for the future.

“We want to expose pupils to the realities of the future so that they will be ready to impact the environment positively with the gains of the digital world”.

“There are more resources

online that pupils can take advantage of, so instead of just using technology for play, they need to use it to be creative because that is the future; they need to use technology in an innovative way”, Koiki said.

iLEAD drives conversation on how to embed sustainability in public secondary schools STEPHEN ONYEKWELU

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igeria’s educational ecosystem has been described as unsustainable as it continues to produce people who either immigrate to economies with better prospects or others who remain but have largely been described by some employers as unemployable.

Education for sustainable development is being advocated as a means to inject some substantial dose of sustainability thinking into curriculum formulation and design. This includes developing employability skills in students of public secondary schools.

Sustainability means meeting the needs of today without compromising the ability of future generations to meet their own needs. Embedded in most definitions of sustainability are also concerns for social equity and economic development.

Experts say Nigeria’s educational ecosystem is designed to produce people for developed economies and that without historical consciousness, Nigeria’s educational system will

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continue to be unsustainable.

An organisation, the Leadership, Effectiveness, Accountability and Professionalism (LEAP) Africa in association with Citi Foundation through the iLEAD programme (formerly YDTP) is changing this narrative by transforming mindsets and equipping youth to be value creators and change agents. iLEAD aims to inspire, equip and challenge teachers to be role models of leadership to their students and provide a platform for secondary school youth to acquire skills which are critical to a meaningful and productive existence.

“Only one in four students who graduate from the secondary make it to the university in Nigeria, this is why we believe more attention needs to be paid to this stage in the education of the Nigerian youth,” Femi Taiwo, executive director at LEAP Africa said at a recent event designed to engage stakeholders on how to localise the sustainable development goals in Lagos public schools.

“In partnership with public secondary schools across Lagos, AkwaIbom and now @Businessdayng

Abuja we deliver weekly curriculum to students on leadership and life skills.”

Chizoba Imoka, chief executive officer, Unveiling Africa made a passionate argument to show how any education in Nigeria that does not promote historical consciousness is doomed to be unsustainable because Africa’s most populous nation does not have a clear national philosophy that promotes multiculturalism and that also develops indigenous knowledge systems.

This entails trans-disciplinary, passion-centred and problemsolving oriented education.

“We need to create a truly multicultural nation, entrench secularism and re-conceptualise schools to help students appreciate and solve local problems,” Imoka said. “We need pilot projects for projectbased learning. Everybody’s knowledge is an important starting point.”

It is held among education experts that once a country’s human capital is ready for the Twenty-First century, every other thing falls into place. But there cannot be an improvement in education by paying lip-service to it.

Tuesday 24 September 2019

BUSINESS DAY

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EDUCATION Catering for different types of learners

OYIN EGBEYEMI

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he old school method or mindset towards education, in its perceived simplicity would easily allow people to identify the slow learners in a rigid system of teaching and learning as inadequate.

With this in mind, I also wonder how many people now realise that some of such students then now excel in their careers and lives in general. What is even interesting is that some of them are doing very well in areas

that we would view today as different or unconventional…different from the generic career paths (or expectations) of Medicine, Law and Engineering; or perhaps their academic performance began to improve when they moved to a different system of education.

Knowing this should provoke some thought around the approach to our foundational education system and its expectations. Rigidity in teaching and learning rendered those who did not fall in line lost or confused. While the system worked well to address key values such as hard work and discipline, it was lacking in flexibility towards people who inherently cannot learn effectively through this so-called conventional method. A lot of teaching was done, but not a lot of learning was achieved. There

are so many reasons for the existence of these outliers, which brings forward the importance of considering different types of learners and their peculiarities.

The first area, which the enlightened population is beginning to accept as critical is Special Education Needs (SEN). Children in this category do not fall under the spectrum of what we may view as normal learners because of some inherent limitations or special abilities, which they have purely as a result of their biological makeup. These include learning disabilities such as dyslexia, behavioural disabilities such as Attention Deficit Hyperactivity Disorder (ADHD), physical disabilities such as cerebral palsy and developmental disabilities such as autism.

In the old-school set up,

the curriculum, staffing and teaching methods did not deliberately cater to children who fell under this category.

Some who suffered milder versions were not easily identified (some adults today may still not even know or accept that they might have one of these conditions). Hence inclusion was not necessarily identified as an issue, let alone addressed. Now, more modern schools are beginning to realise that inclusion is indeed an important aspect of their operations.

Some, which operate international curricula, actually have this as a requirement for compliance; otherwise they would not meet up to standards for accreditation.

Fortunately, there is specialist assistance available and many private schools now accommodate departments for SEN Coordination

LASU students show dexterity to emerge winners of Maritime Blueprint competition KELECHI EWUZIE

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he trio of Tiamiyu Hezekiah Toheeb, Enifeni Ibrahim and Emmanuel Omotayo Johnson from the Lagos State University have emerged winners of the 2019 Maritime Blue Print Competition.

The competition, sponsored by SIFAX Group, is one of the activities of the Taiwo Afolabi Annual Maritime Conference, which is in its fourth edition and held in partnership with the Mari-

time Forum of the Faculty of Law, University of Lagos.

At the end of the keenlycontested debate, students from the department of Law, Lagos State University scored 67 points to defeat University of Lagos team of Mubarak Agboola, Otitoola Folajimi and Alao Omeiza Joshua emerged runners up with 65 points.

Taiwo Afolabi, group executive vice chairman, SIFAX Group while speaking on the competition, praised the winning team for their doggedness and well-researched presentations. He noted that

the competition’s key objective of stimulating university students’ interest in the maritime industry is gradually being fulfilled.

According to Afolabi, “The quality of the thoughts and styles of delivery by the students have been very encouraging. This has shown that the competition on an annual basis is yielding its desired results. This competition will go a long way in stimulating the interests of the students in maritime business. SIFAX Group will continue to partner the Maritime Forum

to make this a sustainable initiative.”

The universities debated on the topic: Achieving the Blue Economy Dream in the Nigerian Maritime sector”.

Aside from the two finalists, University of Lagos and Lagos State University, Other schools that participated in the debate include: Bowen University, University of Ilorin, Babcock University, Afe Babalola University, Crescent University, University of Ibadan, Obafemi Awolowo University and University of Benin.

R-L: Tiamiyu Hezekiah Toheeb, Enifeni Ibrahim and Emmanuel Omotayo Johnson winners of the 2019 Blueprint Competition and another LASU student displaying their cheque at the fourth edition of the Taiwo Afolabi Annual Maritime Conference held at the University of Lagos recently. www.businessday.ng

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to help meet the peculiar needs of these children. It is extremely important that Individualised Education Programmes (IEPs) are developed, and doing so should be a joint effort between the teacher, parent, the school’s leadership and perhaps a specialised facilitator (if required). These should be reviewed regularly amongst all stakeholders so that the child fully benefits from his or her learning experience.

Another area to consider is Gifted and Talented learners. These are children who are found to have exceptional abilities in certain learning areas (most commonly, academics and sports). There are certain students that schools would identify as naturally brilliant or high in cognitive ability. Teachers would attest to exceptions in their classrooms in subjects

such as Mathematics and Quantitative Reasoning and certain sports. These are the children who may not need to work as hard as their peers to achieve excellent results.

What happens with academically gifted learners is that they would get bored very easily because they might not feel sufficiently challenged if they are given work of the same level of difficulty as others. Teachers need to pay close attention to this and ensure that they differentiate these children’s work and pay close attention to their acceptance of more difficult challenges to ensure that they also enjoy their learning experience.

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

WAEC registrar Uwadiae bows out from council KELECHI EWUZIE

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he 12th Registrar of the West African Examinations Council WAEC, Iyi Uwadiae has given account of his 7 years stewardship as a registrar as he announced his retirement at the end of his tenure, which ends in September, 2019.

Uwadiae while speaking to education correspondents at the WAEC International Office in Agidingbi, Ikeja, Lagos State, through a tele-conference from Ghana headquarters says during his tenure, the council completed its headquarters, which took 15 years to build, in 2016.

According to Uwadiae, “Liberia fully adopted the West African Senior Secondary Certificate Examinations (WASSCE) in 2018, while the Council increased additional diets of the WASSCE and Basic Education Certificate Examination for private candidates in member-countries”.

Commenting on efforts to prevent examination malpractice and leakages, the Registrar said the Council acquired facilities to print in-house.

“The secretariat paid the deserved attention to the issue of examination leakage and resolved to settle for nothing short of total eradication of the nuisance.

We pursued a status of selfreliance in printing services, which could guarantee our set target of 100 per cent in@Businessdayng

house printing of question papers.

“As at now, each national office has reached a certain stage in the establishment of an in-house printing press.

Other types of malpractice also received our deepest reflection, as the Council constructed or furnished for use its own standard/model examination halls in places like Lagos and Benin City in Nigeria, Accra, Cape Coast and Koforidua in Ghana and Tubmanburg in Liberia,” he said.

On the use of technology, Uwadiae said the Council under him used software and various gadgets to prevent and check examination malpractices.

“We built tighter security around our examination materials and conduct as various gadgets and software were deployed for identification of candidates, capturing of data and detection of irregularities at examination centres,” he said.

The outgoing registrar further said his successor, who had been appointed, would be named when he assumes office on October 1.

“I anticipate that you will be anxious to know who is going to succeed me. I am glad to inform you that my successor has been appointed.

I will, however, want to appeal to you to grant me the indulgence of not unveiling the personality at this forum.

As you are quite aware, the Council has an official process of doing so soon, after assumption of office. There will be a press release or conference to that effect,” he said.

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Tuesday 24 September 2019

BUSINESS DAY

Boss-less business is no workers’ paradise

system best known for its adoption

by Zappos, the online shoe and fashion retailer.

Based on teams — known as circles — in which employees guided by explicit rules design work roles to solve business problems, Holacracy tackles the conundrum of how to avoid chaos without traditional managers.

When a pilot project produced a new audio product in record time, Blinkist’s workforce agreed to go allin with Holacracy.

Two years later, the bold experiment that had promised freedom had turned into a straitjacket.

“Instead of solving problems, we were spending all our time asking how do we solve them Holacratically?” Mr Jansen says. Blinkist concluded that being ruled by the book was as onerous as being ruled by a boss.

“One thing we really underestimated was the step-by-step explaining required to familiarise new people with a completely different

way of working.

It’s so many words that you need to learn to get the whole system.”

At the other extreme are companies that claim to dispense with both rules and hierarchy and rely solely on their corporate culture.

Yet, as the feminist writer Jo Freeman, author of The Tyranny of Structurelessness (1970), and the Stanford professor Jeffrey Pfeffer (2013) have respectively argued, declaring an end to hierarchy does not erase status differences. It may amplify them by serving as a smokescreen that masks how power is exercised.

Thomas Hoyland, lecturer in organisational behaviour at the University of Hull, worked for a start-up that professed to be hierarchy-free.

“The founder talked of employees as owners, [staff were able to buy in], and told everyone to bring their ideas and opinions,” he says.

Yet instead of putting everyone on the same footing, the lack of formal channels fostered power cliques who dominated over employees with

technical expertise.

“There were [influential] ingroups, and out-groups who were sidelined.” Lindred Greer, associate professor of management and organisations at the University of Michigan, believes that hierarchy is a necessary tool, though best used sparingly.

To maintain management control without causing people to bow before power she recommends “flexing” between authority and autonomy, as US Navy Seals do.

In the field, the Seals obey rank, but for the debrief everyone removes their stripes. In business, that might translate to holding certain meetings off-site and playing down status.

A leader might, for example, say: “I hired you because you’re brighter than me, I really need you to let me know your thoughts,” she suggests.

Flexible policies, flatter structures and job autonomy are popular with tech companies. Futurice, a Helsinki-based innovation consultancy, goes further, combining low

hierarchy with a reliance on trust.

Employees are taught decisionmaking techniques, trusted to decide their hours subject to operational requirements, and given a credit card to buy work tools of their choosing.

David Mitchell, UK managing director, says that people appreciate freedom, and so “tend not to abuse it”.

Allowing employees greater autonomy does not necessarily reduce top down power imbalances, however.

Nor does it limit the ability of higher-ups to abuse power — as revelations that leading tech companies imposed arbitration on victims of alleged sexual misconduct and discrimination illustrate.

An expansion of industrial democracy might improve matters, thinks Professor Child. Dividing organisations into smaller units helps foster “a sense of identity, between the top and bottom,” he writes.

Likewise, co-opting employees into ownership and profit-sharing gives workers a stake in success and, if accompanied by board representation (a demand in the Google staff walkouts), makes executives answerable to workers as well as shareholders. Not all experiments succeed.

St Luke’s, a London advertising agency, operated as a co-operative from 1995 to 2010 in which employees owned equal shares and voted on issues affecting the agency’s direction.

When it hit financial difficulties in the early 2000s, tensions between the leadership’s right to run the business and the ownership rights of employees erupted into a row over management-proposed redundancies. To the relief of staff who feared deadlock might sink the agency, the leadership ultimately bypassed the voting system, but many employees saw this as a betrayal of all St Luke’s stood for.

“The belief was that everyone was involved in decision-making.

Now, we [the management] were saying, we’re deciding this and you’re not invited to take part,” says Neil Henderson, St Luke’s chief executive. The agency is now management owned, though employees share in the profits.

Mr Jansen says that aspects of Holacracy, such as pushing decisionmaking downwards, still influence Blinkist. But now he focuses more on behaviour — starting with his own — than process and structure.

“Moving team A to department B on a whiteboard takes five minutes.

What matters is not what’s written, it’s how people behave.”

Amazon-owned Zappos adopted Holacracy in 2014 and, with about 1,500 employees, is thought to be its largest user.

Instead of having one manager, “to whom all work reports up,” explains John Bunch, lead organisational designer at Zappos, employees belong to multiple circles that run themselves according to common rules. Zappos struggled

to balance self-management and financial discipline.

Telling employees, “Go create a circle you’re passionate about,” says Mr Bunch, unleashed a f re e - f o r- a l l , n e c e s s i t at i n g a hurried shift to a market-based model that requires circles to o p e rat e a s m i c ro bu s i n e ss e s that must bid for resources and break even.

A Har vard Business Review article, co-authored by Mr Bunch, details other challenges: time consumed by governance meetings; persuading former managers to unlearn old power habits; and adapting to a system in which authority is vested in adjustable roles rather than owned by individuals with managerial status.

Mr Bunch says that employees are no longer pigeonholed — anyone with a good idea can propose a circle — and customers benefit from staff ’s ability to spot gaps and initiate change.

“Are there things we’d do differently? Absolutely. But, if you listen and adjust, that’s all you can really expect,” Mr Bunch says.

Greater autonomy is a good thing but how well do truly democratic workplaces function?

Alicia Klegg, FT

H

ierarchies are everywhere, from family-run businesses to multinationals, and under the spotlight as

never before.

On the plus side, command chains enable control and co-ordination. They also have many drawbacks, as the British academic John Child highlights in his recently published book, Hierarchy.

Hierarchies, he writes, concentrate rewards at the top, foster secrecy and are, arguably, “a failing organisational principle” for an era in which innovation depends increasingly on ideas created by young tech workers.

They may even be bad for health.

Studies of the British civil service known as the Whitehall cohort studies found that, grade by grade, these officials, the embodiment of hierarchy, had worse health and shorter life expectancy than officials ranked above them.

After controlling for standard factors, the researchers attributed the unexplained gap to lack of autonomy, a known metabolic stressor.

But, if hierarchy is flawed, are there any alternatives? Blinkist, a Berlin-based business that distils non-fiction into podcasts and bitesize reads, experimented with radical self-management.

When its founders quit corporate careers they planned to build a company of equals — but a pecking order emerged.

Though they hired smart people, the founders made the decisions and as the business grew they quarrelled over budgets.

“We were one-and-a-half years in and, ‘Oh man’, the corporate hierarchy that we’d rejected, we’d recreated,” says co-founder Niklas Jansen.

Out of frustration, they turned to Holacracy, a self-management

Case study:

Z

appos Developed by Brian Robertson, a software entrepreneur, Holacracy is an unconventionally structured, but not structureless, system in which self-managed teams known as circles replace permanent departments, forming and disbanding as the organisation needs change.

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Imperial College launches student-run fund University’s endowment provides £100,000 to seed investment vehicle

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he first independent student-run investment fund has been launched in the UK, with scholars from London’s Imperial College Business School pitting their wits against professional asset managers.

Student-managed funds, which take academic theory from the lecture theatre and put it to work in the markets, are popular in the US, with initiatives at several business schools, including Columbia University in New York and the University of Michigan.

But so far similar initiatives in the UK have been mainly limited to student societies overseeing virtual accounts.

The only other student fund investing real money in the UK is the Griff Investment Fund at the University of York, where students oversee £13,000 in assets.

The global equities portfolio forms part of the university’s endowment fund and was launched in 2013.

Although the Imperial fund has been seeded with £100,000 of cash from Imperial’s en-

dowment, it is run independent of it.

“Our fund is unique as it is an actual investment organisation under Imperial College Business School, possessing the organisational, infrastructural and legal background and the necessary institutional accounts for trading and investment with real money,”

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said Bálint Geiger, co-chief investment officer of the Imperial fund.

The fund is split between a market-neutral equities portfolio and a quantitatively managed portion, which is run by the business school’s computer science students.

“Our biggest selling point is the quantitative department,”

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Mr Geiger added.

“The whole investment industry is moving towards this strategy.”

The fund has so far invested £10,000 in nine European stocks, including Danone, Volkswagen and EDF, as well as two exchange traded funds to hedge its positions.

It is overseen by an advisory

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board that includes academic staff and investment industry figures, including Victor Li, a fund manager at JPMorgan Asset Management, and Guillaume Benhamou, a private equity manager at Tikehau Capital.

Up to 80 students have been involved in the initiative so far, with the management team changing each academic year.

It expects to invest up to £40,000 this year, with the rest of the start-up capital and additional funds provided by donors being available for future students.

Three years ago, Columbia Business School launched the 5x5x5 Student Value Investment Fund, which was backed by Thomas Russo, a stockpicker in Pennsylvania.

The fund invests $250,000 a year in five investment ideas that have been put together by students on the school’s value investing course.

Michigan Ross business school has several studentrun funds, including the first such impact fund in the US, with combined assets of more than $10m.

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Tuesday 24 September 2019

BUSINESS DAY

property&lifestyle How Alaro City is creating benchmark for city devt with innovative infrastructure Stories by CHUKA UROKO

E

xciting developments are taking place in the Nigerian real estate sector where investors, especially those involved in building new cities, are scaling up their developments with innovative designs and worldclass infrastructure.

One of such developments is the Alaro City—an inclusive, mixed-use city-scale development in the Lekki Free Trade Zone, where the developer has adopted innovative infrastructure building systems intended to serve as a benchmark for new cities in the country.

The new city is a joint venture project between the Lagos State government and Rendeavour— a new city builder in Africa. The city project, which was launched in January 2019, is sitting on 2,000 hectares of land in the North-West Quadrant of the Lekki Free Trade Zone.

The city is designed to include industrial and logis-

tics locations complemented by offices, homes, schools, healthcare facilities, hotels, entertainment and parks and open spaces.

Currently, the city’s first 3.5 kilometre road – a four-lane, asphalt thoroughfare with a four-metre median that has adopted modern best practices and delivered an efficient drainage system—is being constructed.

Bailey Ligtas, the city’s construction manager, told journalists on tour of the project site last week that the city’s road infrastructure, designed by leading engineering firm, Arup, is the first of four major access points from the LekkiEpe Expressway, just metres away from the gate of the city.

“We are also developing an independent power plant solution by connecting to a nearby gas pipeline. Water supply for the first phase is also at an advanced stage,” Ligtas said.

“In building Alaro City, Rendeavour has provided solutions to urban planning

and city-building problems unique to Lagos,” Ligtas noted, adding, “to ensure effective flood management, Rendeavour has adopted a rain garden drainage system that not only provides a unique landscaping opportunity, but also ensures the development is not afflicted by open drainage systems.”

Green areas, parks and open spaces in the cover more than 150 hectares and form part of the drainage strategy of the city via five ‘greenways’.

These are designed to provide an area for leisure activities and also carry surface water to the lagoon.

As a city, Alaro has gained increasing recognition for its world-class master plan and the innovation it represents in modern city building. In July, the city’s master plan won the international Architizer A+ Popular Choice Award, beating prestigious projects such as the Amazon HQ2 supersite in Dallas and the 5M project in San Francisco. In September, Alaro City was also voted ‘Emerging Project of the Year’

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by PropertyPro.ng at the Africa Real Estate Awards.

Odunayo Ojo, CEO of Alaro City, says the city has already sold out phase one of its residential ‘buy-and-build’ plots, with phase two well underway, adding that several Nigerian, regional and multinational companies are building commercial and industrial facilities in the city.

“Alaro City lies in the growth path of Lagos and aims to serve as a model for what a modern mixed-use city looks like,” he said, adding, “we have partnered with renowned experts in various fields to ensure that our culture of high standards is sustained.”

Rendeavour’s pedigree has been identified by industry experts as a key contributor to the growing success of the satellite city. Rendeavour is currently building seven new cities in Nigeria, Kenya, Ghana, Zambia and Democratic Republic of Congo, with over 60 industries already building their businesses at the cities and over 6,000 homes in development.

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Endsley, Cardman to speak at FIREC programme in Nigeria

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ill Endsley, Princ i p a l a t Wo r l d Citizen Consulting, and Thomas Cardman, Director of Operations and Finance at Michael Consults, will be the focus of attention when stakeholders gather for the FIABCI International Real Estate Consultants (FIREC) programme this week.

This year’s edition of the annual programme, which is to be hosted in Lagos, Nigeria on September 26 & 27 by the FIABCI-Nigeria Chapter, promises insightful discussions that will touch on both global and local real estate issues.

FIABCI, an acronym for International Real Estate Federation, is an international real estate organization whose membership cuts across 65 countries of the world. It recognizes the import of ease of doing business as a catalyst for attracting foreign direct investment (FDI).

According to Adeniji Adele, President, FIABCI Nigeria Chapter, the organization is a platform for learning, networking as well as harnessing immeasurable experiences

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and opportunities.

It is expected that the international speakers at the FIREC programme will be bringing global perspectives to the endless search for solution to the problems of this sector in Nigeria.

“We were careful in the choice of our speakers for this year ’s programme.

Besides networking, participants will be availed the opportunity of gaining more insights on how to the approach the many complex challenges we have in real estate in Nigeria,” Adele assured Adele pointed out that FIABCI, as an association of professionals, always takes interest in what happens in the economy, especially as it affects the business environment in which they operate.

He, however, canvassed public private partnership in dealing with the identified challenges in the business environment, contending that government alone cannot solve the problems because of other demands of governance such as health, education, etc.

Tuesday 24 September 2019

BUSINESS DAY

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property&lifestyle Why 4point’s Wealthgate Park is good buy for first time buyers, families

W L-R: Ken Leech, development manager, Elalan Construction; Segun Oniru, former Lagos State commissioner for waterfront infrastructure; Femi Hamzat, deputy governor, Lagos State, and Obi Nwogugu, fund manager, real estate private equity, African Capital Alliance, during the deputy governor’s visit to Blue Water Lagos project site recently.

‘Blue Water Lagos devt in line with Okunde Scheme’

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t has been observed that the development of the Blue Water Lagos located in Lekki Phase 1, within 10-15 minutes’ drive from Victoria Island and Ikoyi, is in order, especially within its specific location.

Deputy Governor of Lagos State, Femi Hamzat, who made this observation during a visit to the project site recently, noted that the development, which is an EDGE-certified mixed use

facility, was in line with the development plan for the Blue Water Okunde Scheme.

The deputy governor who was accompanied on the visit by Segun Oniru, former Lagos commissioner for waterfront infrastructure, encouraged the developers to keep up the good work they were doing.

Blue Water Lagos, which sits on an expansive 37,000 square meters of sea-view land, is being developed as

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a joint venture project by Elalan Group and African Capital Alliance— a private equity investment firm.

It offers contemporary luxury penthouses and apartments; world class leisure and entertainment malls and an exclusive resident’s recreational park. It also offers the ultimate lifestyle community in a serviced and secure strategic location.

The project is divided into three phases. Phase 1 con-

ith its strategic location, convenient payment options and appropriate pricing, Wealthgate Park estate comes as a very good buy and an attractive destination for first time home buyers, young families, and savvy investors with patient capital and good understanding of the property market.

A new residential development located at Eleko junction, Ibeju-Lekki, the estate is being aggressively developed by 4point Real Estate Investment to offer affordable land to prospective subscribers as an innovative scheme.

The estate is also targeted at property investors, business professionals, and retirees looking for quality developments and attractive returns on their investments through rental yield and capital growth.

4point Real Estate is well known for developing residential communities across the mainland metropolitan area of Lagos state and with its introduction of Rose Gardens,

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a premium housing development in Asese, Ogun state, it has successfully delivered over 200 housing units, creating opportunities for families and investors.

With Wealthgate Park, which primarily offers land, the firm aims to demystify the perception that the Lekki residential communities are only accessible to super-wealthy individuals and that middleclass citizens cannot own properties in the highbrow Lekki axis.

Wealthgate Park is situated close to landmark developments like the Lufasi Park, Amen Estate, the Pan Atlantic University and Eleganza industrial city, making it one of the best and safest investment destinations for astute investors.

Wale Olayanju, managing director of the company, explained that the company launched Wealthgate as a social enterprise strategy to encourage Nigerians to start investing in real estate as it remains the safest investment asset class with the highest returns compared to other alternatives.

Olayanju disclosed that

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4point Property does not just believe in housing that meets subscriber’s need, but also in examining the challenges at every point in the housing value-chain and providing credible answers which meet the needs of its clients.

“Buyers could get a parcel of land in the estate for N7.2 million, far below the prevailing market value of about N12 million in the same axis,” the managing director informed.

He explained further that his firm has also put in place convenient payment options to allow subscribers to comfortably spread payment across up to 12 months and is currently exploring partnership opportunities to allow up to 5 years mortgage to subscribers at the lowest possible mortgage rates.

Other benefits, he added, are the absence of the traditional land grabbers and land speculators, as all legal documentations are given to buyers under the scheme upon the completion of payment. “There are no ‘hidden charges’ in transactions with 4point Property,” he assured.

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Tuesday 24 September 2019

BUSINESS DAY

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Tuesday 24 September 2019

BUSINESS DAY

BDTECH

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In association with

E-mail: jumoke.akiyode@businessdayonline.com

Broadbased Communications, Dolphin Telecoms sign MoU on wholesale internet distribution to Telcos, ISPs JUMOKE AKIYODE-LAWANSON

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roadbased Communications Limited, an open access metropolitan fiber optic network operator has signed a Memorandum of Understanding (MoU) with Dolphin Telecom Limited, a member of the African Coast to Europe (ACE) submarine cable system consortium and the operator of the ACE Submarine Cable Landing Station in Nigeria.

The formal agreement will ensure that Broadbased Communications provides last mile metropolitan fiber optic network connectivity on a wholesale basis to the clients of Dolphin Telecom Ltd which include telecom operators and Internet Service Providers (ISPs) in Nigeria.

The ACE submarine cable system is managed by a consortium of 19 telecom operators from Africa and Europe.

The ACE submarine

L-R: Chidi Ibisi; executive director, business development, (BBC), Chris Erewele; group executive director, Broadbased Communications Ltd (BBC), Henry Iseghohi; MD/CEO of Broadbased Communications Ltd (BBC), Jonnie Coleman; chief commercial officer of Dolphin Telecom, Chineme Oladapo Areola; group sales manager, (BBC), and George Opara; head of sales, Dolphin Telecom, during the signing of the memorandum of understanding (MoU) between BBC and Dolphin Telecom in Lagos, recently.

cable system is being upgraded to100G technology, which will increase its design capacity from 5.12 Tbps to 12.8 Tbps. The ACE submarine cable system is supported by wavelength division multiplexing (WDM) technology to accommodate tomorrow’s ultra-broadband networks.

Broadbased Communications operates a non- compete, non-discriminatory, open access metropolitan fiber optic network that spans over 3,500km of transmission, distribution and inpremise in all the major business districts in Lagos.

It also operates metro fiber networks in Kano and Akwa-

Ibom States with additional points of presence in Abuja, Port Harcourt and Enugu.

Broadbased provides fiber optic network connectivity for mobile network operators, 4G network operators, all the submarine cable landing stations, all major internet service providers, all data centers,

Nigeria internet exchange point, major global telecom operators, all the banks, the Nigerian Stock Exchange, all electronic payment switching and processing companies, oil companies, major corporate firms and residential estates in partnership with other telecom service providers in each estate.

Henry Iseghohi, MD/ CEO of Broadbased communications stated that “the MOU is a testament to the company’s dedication to the open access, non- compete model, robust network architecture and the dedication of the company’s staff.”

Iseghohi said Broadbased Communications Ltd won the Telecom Wholesale Company of the year 2018 award of the Association of Telecom Companies of Nigeria (ATCON) and Titans of Tech Awards 2019 Most Innovative Fiber Optics Network Company of the Year

by Technology Africa.

Jonnie Coleman, the chief commercial officer of Dolphin Telecom, said the company is delighted to

partner with Broadbased Communications to distribute its wholesale internet capacity to Telcos and ISPs in all the major districts of Lagos. He said the ACE submarine system has positioned itself as a key driver of Nigeria’s social and economic growth.

Also speaking, Chris Erewele, the group executive director of Broadbased Communications, restated the company’s commitment to the provision of quality services to Dolphin Telecom with a dedicated technical support team to meet the needs of their esteemed wholesale customer including the use of horizontal directional drilling equipment to install fiber optic cables without manual digging.

Chidi Ibisi, executive director, business development, said the Broadbased Network which spans over 3,500km is designed as a self-healing network in a ring architecture with redundant routes to over 20 points of presence.

Inlaks recognized as Best ICT Infrastructure Provider 2019 JUMOKE AKIYODE-LAWANSON

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nlaks, a fast growing Information and Communication Technology (ICT) infrastructure and systems integrator in Sub-Saharan Africa recently received an award of innovation and excellence as the “Best ICT infrastructure Provider of the year” at the recently concluded 2019 Digital Banking Summit and The Digital Innovations and Excellence Awards.

The two-day event

themed “Digitisation of Banking Sector - en route to a cashless Africa,” was organised by the International Centre for Strategic Alliances (ICSA) with KPMG as Knowledge Partner; First Bank Nigeria as Official Banking Partner and MasterCard as a Lead Sponsor, it also had in attendance Banks, Financial Institutions, Fintech Firms and service providers in the African Continent.

Maxwell Opoku-Afari, the first deputy governor of the

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Bank of Ghana, in his keynote address urged stakeholders in the financial and banking industry to exploit digitisation to meet the needs of the unbanked and broaden services to all segments of society.

“The adoption of digital technology in the banking and financial space will help promote transactional efficiency in the delivery of financial services as well as scale-up and broaden financial access to all segments of the society. Digital innova-

tion will create unprecedented opportunities for Africa to grow its economy, create jobs, and transform people’s lives,” he said Making a presentation on the topic ‘Improving Customer Experience through Digital Retail Banking Transformation’ at the Summit, Olufemi Muraino, executive director at Inlaks said: “Traditional banks must constantly innovate to stay relevant in the face of fast-growing technology or risk losing customers

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they cultivate over decades.

Exceptional customer experience goes beyond standard online services; innovation is required because digitisation never stops. Digital transformation is a continuous process; there is no such thing as a start and a finish.”

Reacting to a Global CEO survey across all sectors business leaders conducted

by PwC, 70 percent of the leaders expressed their biggest concerns on the speed of technological change in

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financial services noting that the Digital Banking Summit was indeed a great avenue for African decision-makers to strategise and make plans for a better future.

Recall that Inlaks was also recently awarded “Technology Solutions Company of the Year” by the Nigerian Leadership Award and “Banking Technology Solutions Provider of the Year” by the Ghana Information, Technology, and Telecoms Award (GITTA) earlier in 2019.

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Tuesday 24 September 2019

BUSINESS DAY

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E-mail: jumoke.akiyode@businessdayonline.com

Coderina, Google to train 3000 youths in Nigeria under CSFirst Code Club JUMOKE AKIYODE-LAWANSON

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n a move to groom youths with technology driven orientation and increase innovation to spur a digital revolution in Nigeria, Coderina Education and Technology Foundation, an independent non-profit foundation that works to promote Science, Technology, Engineering and Mathematics (STEM), has partnered with Google to initiate CSFirst Code club in over 100 schools and community centres in Nigeria The CSFirst Code Club will offer trainings free of charge and facilitate CSFirst and Online Safety curriculum to over

3000 youths across Nigeria.

CSFirst curriculum which is the main component of the code club is a specialised curriculum by Google based on the programming language, scratch from MIT, which helps children and youths to become equipped with 21st century coding skills, problem-solving, critical thinking and creativity thereby empowering them to be able to contribute to personal and community development.

The 2019 Google CSFirst Code Club roll-out is simultaneously happening in Kenya, Nigeria and South Africa.

The curriculum is developed based on real-life and

practical themes that includes sports, fashion, game design, storytelling, music etc. hence, every youth can be equipped to learn and understand how they can take advantage of the digitalisation in our world.

Coderina Education and Technology Foundation, a Nigerian registered non-profit, is the West Africa operational partner for the successful experiential international robotics and project-based learning program FIRST LEGO League and recently FIRST Tech Challenge.

Akinniyi Obaide, director of Coderina disclosed after the just concluded official kick-off call with Google; that the target

youth within the age range of 9-16 years will participate.

These, he said, include students in secondary school and all technical schools. Participants will also be trained from community centres, libraries, youth camps etc.

“Private and public schools, state and local governments and stakeholders are to signify participation via completing an online form.

“Principals, teachers, parents, religious leaders and everybody should tap into this golden opportunity to start our youth up very early computer programming, a pathway to developing 21 century skills,” Obaide said.

Infinix launches Hot 8 smartphone with bigger battery and display JUMOKE AKIYODE-LAWANSON

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nfinix Mobility has launched the new Hot 8 smartphone, the latest addition to its ‘HOT’ entertainment product line-up. With a 5,000mAh battery, a 6.6-inch HD+ waterdrop display, a triple rear camera, and a DIRAC sound and party mode as the key features, HOT 8 will allow consumers to enjoy a world of entertainment at their fingertips.

HOT is a mid-budget series phone designed for young people who are passionate about entertainment in the interconnected world. Inheriting Infinix’s brand spirit of providing the most cutting-edge technologies at affordable prices, HOT series has been committed to breaking the boundaries of combining the most relevant features in one device, letting customers amplify their entertainment experience in the digital space.

“The Infinix HOT series aims to empower young people with boundless entertainment experience fueled by transformative mobile technology. We observe the trends of online and offline entertainment in global emerging markets where technologies apply. We found that young people desire to connect and share their life with their communities in various ways, such as social networking, gaming, streaming, and partying,” Benjamin Jiang, managing director of Infinix Mobile said.

The new device was launched at a concert-like event at University of Lagos sports center on Friday September 20, 2019, as the mobile phone company re-

R-L: Edoyemi Ogor; deputy director, Nigerian Communications Commission (NCC), Bako Wakil; director, technical standards and network integrity (NCC), Tony Ikemefuna; assistant director, (NCC), Martina Medac; Cognys Systems Nigeria Limited and Chijioke Eze; co-ordinator, Wireless Application Service Providers Association of Nigeria(WASPAN) during the first 2019 NCC Value Added Service Stakeholders forum in Lagos recently.

iterated that the Hot 8 is a youth focused device operating in partnership with Google, Vskit and Boomplay “The launch of HOT 8 is a great example of how Infinix spares no efforts in delivering on its promise. By integrating a bigger battery, a bigger display and other key features, we not only aim to satisfy consumers’ entertainment desires, but also inspire them to explore a world of creativity with one device at smaller cost.” Jiang added.

HOT 8 comes with a 5,000mAh battery in a compact body. According to Infinix, the device enables four days of battery life with only three hours www.businessday.ng

of charging through the 2A fast charge technology.

“Consumers will be able to enjoy non-stop entertainment throughout the day, whether it is social networking, watching videos, capturing images, or playing games. To further satisfy consumer demand of long standby time, HOT 8 also adopts artificial intelligence to optimize power consumption. By learning consumer app usage habit and executing an intelligent power saving strategy, HOT 8 creates a 10 percent increase in overall standby time,” Amanda Zhang, marketing manager, Infinix Mobility said.

The HOT 8 features a 13MP

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rear triple camera, consisting of a 13MP lens, a 2MP lens and an AI lens that combine to capture more detailed clearer pictures.

It is also equipped with a Quad flash and an F1.8 aperture to further enhance the camera performance. The triple rear camera will empower consumers with better image capturing and broadcasting experience, allowing them to explore more entertainment.

The new device is preinstalled with the Google Files app to keep the device more organized and cleaner. It enables consumers to free up space regularly, search files quickly, and transfer files without consuming mobile data. @Businessdayng

Jumia Mall launches with 90 top Nigerian brands JUMOKE AKIYODE-LAWANSON

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n a bid to make online shopping experiences a lot more seamless and safer for consumers, Jumia Mall has partnered with 90 top Nigerian brands to launch its online store.

Speaking during the launch of Jumia Mall in Lagos recently, Juliet Anammah, CEO, Jumia Nigeria, said that Jumia Mall is a space dedicated to various brands on Jumia website.

“This website helps consumers; to find products that are 100 percent authentic, to enjoy a 15-day return policy on the platform, and enjoy warranty on every product.”

According to her, “consumers can also enjoy faster delivery because those brands have their products seated in our warehouse, and we are able to provide those products to consumers as fast as possible.”

Explaining that Jumia itself is a marketplace, Annamah said; “this means that anyone who has a shop can sell their products on the website.

People can browse and go directly to a particular brand section that they desire just the same way they go into a regular physical mall. In the same way, we have a dedicated space on the website where they can access those brands directly. It means that if the brands are running an offer they will find it offline as well as online.”

Also speaking at the official launch of Jumia Mall, Kolawole Osinowo, head of mobile category, Jumia Nigeria, stressed the authenticity and genuineness of the products on Jumia Mall.

“The first thing that we have done very well with Jumia Mall is to ensure that the products coming in are either coming from the brands directly, or they are coming from the authorised distributor or reseller of the brands. So with that in place, customers are assured of getting genuine products on the Jumia Mall,” Osinowo said.

Buttressing the point of quality control, Michael Adesanya, head of categories, Jumia Nigeria said that the company has put up processes that will ensure that consumers get only top quality products.

“One of the processes is that any brand that is on Jumia Mall must have its products seated in our warehouse. For the purpose of quality and trust, we insist that products of various brands must first come to our warehouse to enable us do all the necessary quality control checks before shipping,” he said.

Jumia says it has a robust technology network capacity to handle and manage the huge influx of customers on its site. The e-commerce platform currently has about 90 active brands on its Jumia mall.

“For brands to qualify to be on the platform, they have to be on Jumia Express – which is another platform from Jumia that allows speedy delivery on products, the brand must also have acceptable warranty period for its products and must honour Jumia’s 15-day return policy,” Adesanya said.

Tuesday 24 September 2019

BUSINESS DAY

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Nigeria’s oil assets idle as Angola goes bullish on block auctions STEPHEN ONYEKWELU

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ngola, Africa’s second biggest oil exporter after Nigeria is set to flag off a licensing bid round for oil blocks as Nigeria’s continue to lie fallow at a time when the country is in dire financial straits.

In what has been described as a well-attended licensing round road show in London during the week ending September 22, Angola’s National Agency for Petroleum and Gas (ANPG) unveiled the final schedule for an acreage auction that will end in April next year.

The anticipated round, covering 10 blocks in the frontier Namibe and Benguela basins in the country’s southern waters are due to open on October 2, with offers to be submitted by November 12, giving interested companies just 40 days to evaluate data and bid, according to a report by Upstreamonline.

Hermengildo Buila, ANPG director of negotiations pointed out that “all investors currently in Angola” contributed to establishing the 40day turnaround time.

Sources argued that companies not currently active in Angola will find it a challenge to meet such as tight schedule, suggesting that incountry incumbents will have an inherent advantage.

However, Nigeria’s story reads differently. With a maximum crude oil production capacity of 2.5 million

barrels per day, Nigeria is comfortably Africa’s largest producer of oil and the sixth-largest oil-producing country in the world.

The country has a total of 159 oil fields and 1481 wells in operation.

With African peers ramping up efforts to grow their oil and gas production and reserves; Nigeria’s last licensing round was in 2008.

Data obtained from the Depart-

ment of Petroleum Resources, Nigeria’s oil and gas industry regulator show that out of 390 oil blocks in the country, 211 are yet to be allocated by the federal government.

The country has seven basins, namely Anambra, Benin, Benue, Bida, Chad, Niger Delta and Sokoto.

As of December 2017, 179 blocks had been allocated comprising 111 Oil Mining Leases (OML) and 68 Oil

Prospecting Licences (OPL).

In Anambra, 12 out of 19 blocks have not been allocated; in Benin, 39 out of 50 are open; in Benue, 41 out of 43 are still idle, while none of the 17 blocks in Bida has been allocated.

In the Chad basin, 40 out of 46 blocks are open; in the oil-rich Niger Delta, 34 out of 187 blocks are still idle, while Sokoto’s 28 blocks remain unallocated.

Ibe Kachikwu, former minister of state for petroleum resources suggested plans to do oil license bid rounds, noting that things would definitely lookup for the sector once this is done but he, however, did not give a timeline.

As Nigeria dithers, offshore exploration and field development have gained momentum in many sub-Saharan Africa countries, with numerous licensing rounds underway in many parts of the African continent.

The long list of African countries opening offshore blocks to licensing include Gabon and Somalia already underway with international roadshows. Other countries contemplating licensing bid round are Republic of Congo, Côte d’Ivoire, Ghana, Guinea, Madagascar (for the first time offshore), Mauritania, Nigeria, Senegal, and Sierra Leone.

In Angola, once the offers have been opened in public on November 13, the ANPG, Ministry of Finance and Ministry of Petroleum will have until December 28 to evaluate both the bids and the companies aiming to secure acreage and address inconsistencies.

Concessions are due to be awarded by January 17, with talks, including an appeal and response process, to run until March 27. Production sharing contracts are due to be signed by April 30, and will have an effective date of May 4, the first working day of the following month.

MARKET

Discos remit 28% of N190bn energy bill collected in Q1 - NERC DIPO OLADEHINDE

R

eport from Nigerian Electricity Regulatory Corporation (NERC) has revealed that out of a total invoice of N190.1 billion for energy received from Nigerian Bulk Electricity Trading Plc (NBET) for services provided by Market Operator’s only 28 percent (N52.8 billion) of the invoice was paid by Discos creating a total deficit of N137.3 billion in the first quarter of 2019.

“This clearly indicates that regardless of the prevailing tariff shortfall DisCos’ remittance is still significantly below the expected threshold. To ensure business continuity and improve sector liquidity, therefore, DisCos must improve on efforts towards reducing their ATC&C losses,” NERC said.

NERC admitted that the financial viability of the Nigeria Electricity Supply Industry (NESI) is still the most significant challenge threatening the sustainability of the electricity industry.

“The liquidity challenge is partly due to the non-implementation of cost-reflective tariffs, high technical and commercial losses exacerbated by energy theft, and con-

sumers’ apathy to payments under the widely prevailing practice of estimated billing,” NERC said.

According to NERC, in Q1 2019 invoices issued to Ajaokuta Steel Co. Ltd, international customers and special customers like Communaute Electrique du Benin–CEB were N0.3billion and N12.8billion respectively; however, neither NBET nor MO received payments from the special and international customers during the period under review. www.businessday.ng

“While the low remittance by DisCos to NBET and MO is partly attributable to the prevailing tariff shortfall, the DisCos must improve on efforts towards reducing the technical, commercial and collection losses to consequently improve sector liquidity,” NERC said.

Regarding individual performances, Ikeja DisCo had the highest collection efficiency of 84 percent followed by Eko DisCo with 80 percent while Jos DisCo recorded the lowest collection efficiency of

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10 percent.

NERC said to address the remittance issue and as part of the review of DisCos’ viability as a going concern, the Commission is discussing with some DisCos to review their performance and respective comprehensive strategy towards addressing their operational challenges.

“The Commission has extracted obligations undertaken by the DisCos in previous meetings for compliance tracking and further actions.

The Commission is also finalising a framework for minimum remittance that would ensure a fair and equitable distribution of market revenues as a further initiative towards addressing the fragile financial standing of the electricity market,” NERC said in its Quarterly report.

NERC noted that the commission has continued to monitor DisCos’ process of procuring Meter Asset Providers (MAP) in compliance with the provisions of the MAP Regulations.

Further analysis of the NERC report showed only three DisCos have metered more than 50 percent of its registered electricity customers as at the end of the first quarter of 2019.

In first Quarter 2019 out of a total of eleven Discos, Port Har@Businessdayng

court Disco recorded the highest metering among its customers of 68 percent, following by Benin Discos who recorded 57 percent while Abuja recorded 52 percent.

Yola Disco, Kano Disco and Kaduna Disco recorded the lowest metering among its customer of 21 percent, 24 percent and 28 percent respectively.

“The Commission, continued to monitor the conclusion of the MAP procurement process by the DisCos’ to ensure that successful MAPs commence the roll-out of meters in order to meet the target date of closing the metering gap in the NESI within three years,” NERC said.

The Commission received a total of 72 accident reports from the operators during the first quarter of 2019 which resulted in 10 deaths and 7 injuries of various degrees involving both employees of the companies and the third parties.

“The Commission has resolved to develop a more comprehensive penalties and compensation structure for health and safety breaches in NESI for the purpose of stopping the utilities’ discretionary payment of compensations to electrical accident victims or their families,” NERC said.

32

Tuesday 24 September 2019

BUSINESS DAY

ENERGY INTELLIGENCE Partnership

Nigeria takes gas flare sale campaign to US ISAAC ANYAOGU

N

igeria will hold talks with US business executives on ways to collaborate to ensure the success of the gas flare commercialisation programme later this month, Justice Derefaka, programme manager, Nigeria Gas Flare Commercialisation programme has said.

The upcoming conference on powering local markets in the Middle east and Africa organised by the United States Department of Commerce, will hold from Sep. 30 – Oct. 2.

The forum will be focused on bringing together global leaders across the oil and gas, renewable energy, electricity infrastructure, engineering, construction and transportation sectors. It will also create opportunities for matchmaking and networking sessions and build new business partnerships with US-based executives, the event organisers said.

“At this Discover Global Markets event, you will have the opportunity to hold one-on-one meetings with US companies and US government officials, and to present opportunities in Nigeria to US suppliers and US project prime contractors looking to grow

their business,” said the invitation extended to Derefaka.

For Nigeria in dire need of foreign direct investments, this could not have come at a better time. Nigeria has progressively been attracting less foreign direct investments and need to start creating enabling environment beyond just rhetoric. According to data from the National Bureau of Statistics (NBS) $222.8 million was imported as FDI in the

second quarter (Q2) of 2019, the lowest since Q2 2016.

Not only does that compare poorly with FDI flows to African peers from South Africa to Egypt, it translates to an FDI per head of $1.14 compared to the Africa average of nearly $100 per head, according to World Bank data. In 2018, while South Africa and Egypt attracted FDI worth $5.3bn and $6.8bn respectively, Nigeria raised $2bn, according to

UNCTAD data.

The Nigerian Gas Flare Commercialization Programme, is an ambitious plan to sell over 700 million standard cubic feet of gas a day flared at 178 different sites.

Approved in 2016 by the Federal Government, the NGFCP seeks achieve government target of eliminating gas flaring in the Niger Delta by 2020. The Petroleum Act of 1969 and Flare Gas (Prevention of Waste and Pollu-

tion) Regulations 2018, signed in July 2018, provide the basis for the NGFCP. Based on the right of the Federal Government under the Petroleum Act to take gas at the flare free of cost, the NGFCP was launched by the Ministry of Petroleum Resources in December 2016. It is designed to offer a series of auction rounds, wherein the Federal Government takes the flare gas at the flare site, and auctions it to third parties for commercialisation.

Over 700 applications were received in the first round of the bid process concluded on February 28 after which all the applications were evaluated to prequalify competent investors in March. The programme is on course and proceeding to the final stages where the eventual winners would be announced.

“The design of the NGFCP according to our development partners is an innovative, robust and scalable approach to gas flare reduction - a “game changer” (first of a kind) consistent with the climate change action plans anticipated in the Paris Climate Change Accords which could be replicable in many other gas flaring countries around the World with Nigeria setting the pace,” Derefaka said.

Market

Bayelsa, Cross River, Kogi residents paid higher petrol price in August 2019- NBS DIPO OLADEHINDE

R

esidents of Bayelsa, Cross River and Kogi states paid the highest average price for Premium Motor Spirit (PMS) popularly known as petrol in August 2019, latest data from National Bureau of Statistics has said.

The Bureau said residents of Bayelsa paid average of N146.78 per litre for petrol, while residents of Cross river and Kogi paid N146.77 and N146.75 respectively.

This showed that the residents bought the product more than the official pump price of N145 per litre.

Meanwhile, Kaduna State, Zamfara and Katsina were the states with lowest average price as they sold the product below the official pump price in the month under review.

Residents of Kaduna bought the Petrol at N144.68 per litre while Zamfara residents bought at N144.34 and Katsina sold the product at N142.51.

“Despite the subsidy claims by importers and in spite of the inclusion of a bridging fund (Petroleum Equalisation Fund) on the pricing

template, the geographical variations in the prices of these products remain one of the major challenges facing petroleum products supply in the economy,” Research

by African Centre for Leadership, Strategy & Development said.

The report added that continuing contestations over the removal of subsidy clearly show that the matter of petroleum pricing in Nigeria remains an unresolved issue while also admitting that a pricing scheme which is based on importation and the need to ensure import price parity is not in the long run interest of the national economy as domestic refining necessarily has to be the basis of long term pricing.

“Our domestic refineries must be made to work. Appropriate incentives need to be worked out to attract new investment in refining.

While domestic refining by itself is not sufficient to guarantee product price stability, there are clear gains to be derived from domestic refining as opposed to imports,” the report titled Pricing of Petroleum Products in Nigeria said.

Nigeria’s inability to refine adewww.businessday.ng

quate petroleum products domestically in order to meet local demand has continued to render the downstream sector vulnerable to foreign exchange volatility particularly for petroleum independent marketers.

The advent of Dangote refinery - which is set to produce 0.65mbpd of refined products – and other modular refineries will significant-

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ly impact the current landscape in the downstream sector which upon completion will exceed domestic consumption levels and subsequently export excess refined products to neighboring African countries.

Also, NBS data revealed that the average price paid by consumers for premium motor spirit (petrol) @Businessdayng

decreased by -1.0percent year-onyear and increased by 0.3percent month-on-month to N145.5 in August 2019 from N145.0 in July 2019.

NBS noted that the Field work was done solely by over 700 NBS Staff in all States of the federation supported by supervisors who were monitored by internal and external observers.

Tuesday 24 September 2019

BUSINESS DAY

33

OFFGRID BUSINESS

In $500k grant AfDB supports development of Nigeria’s energy access fund STEPHEN ONYEKWELU

C

lean energy development in Nigeria has received a boost thanks to the African Development Bank’s recent grant. The bank’s Sustainable Energy Fund (SEFA) for Africa has approved the sum of $500, 000 to this effect.

This grant will go to support Nigeria Energy Access Fund (NEAF) that will make strategic investments in sustainable energy in Nigeria, particularly in the country’s burgeoning off-grid and mini-grid sectors.

NEAF is a new private equity fund developed by All On, a Nigerian impact investment firm financed by Royal Dutch super oil major, Shell. NEAF will make strategic investments in sustainable energy in Nigeria, particularly in the country’s burgeoning off-grid and mini-grid sectors.

The SEFA grant will support specific work streams to set NEAF in motion and enhance its engagement with private and public sector investors. NEAF will be a first-ofits-kind facility to provide eligible projects and businesses with equity solutions that are currently unavailable in the market.

“Nigeria requires bespoke and innovative market-based solutions to provide its off-grid population, estimated at 100 million, access to sustainable sources of energy. The

Collaboration to drive the growth of the Nigerian off grid energy sector: L-R Dozie Okpalaobieri, Nigeria Power Sector Lead, African Development Bank; Adesola Alli, Head of Renewables, Sterling Bank; Balaji M. K., Off Grid Lead, USAID Power Africa Nigeria; Anita Oburu, Head of the Energizing Education Initiative, Rural Electrification Agency; Wiebe Boer, CEO, All On during the quarterly Nigeria off grid energy donor and investor coordination meeting held in Abuja.

SEFA grant will be instrumental in the constitution of NEAF, and ultimately, the mobilisation of muchneeded private sector investment for the sector,” said Wale Shonibare, the Bank’s acting Vice President for Power, Energy, Climate Change and Green Growth.

Once operational, NEAF is expected to complement the Bank’s wide range of sustainable energy initiatives currently being imple-

mented in Nigeria. In November 2018, the Board of Directors of the Bank approved a $200 million package to support Nigeria Electrification Project (NEP), designed to help scale-up green mini-grid solutions with subsidies, among other measures.

In May 2018, SEFA approved a $1.5 million grant to support the first phase of the Nigerian government’s Jigawa 1-GigaWatts Independent

Power Producer Solar Procurement Programme.

SEFA’s support to NEAF is aligned with the New Deal on Energy for Africa and the Bank’s High 5 priorities, especially ‘Light Up and Power Africa’ and ‘Improve the Quality of Lives of Africans.’ The project conforms to the Bank’s Energy Sector Strategy and will boost the Nigerian government’s power sector recovery plans.

“It is critical that Nigerians take steps to understand and embrace the new starting points for energy provided by stand-alone renewable technology and mini-grids.

We believe these solutions provide a viable, bottom-up solution to the patchy availability of electricity in Nigeria,” said Pedro Omontuemhen, partner and lead, Power and Utilities at PwC, a multinational professional services firm.

Africa’s most populous nation needs to create an enabling environment for off-grid development, including clearer criteria for minigrid development, support for skills and training and more supportive regulation to allow private players to unlock the off-grid market potential.

Nigeria also needs to recognise the value of and promote the growth of mobile infrastructure, microloans and payment solutions in supporting energy access because mobile infrastructure is proving crucial in the take-up of standalone home systems, giving providers a low-cost channel for customer relations and an ability to automatically manage non-payment.

Mozambique is already implementing a similar model. This is why Fenix International, a subsidiary of ENGIE has partnered with Vodacom and Vodafone M-Pesa South Africa to tackle the challenges of distribution, connectivity and mobile payments that have left rural Mozambicans underserved by affordable energy products in the past.

Global leaders urged to build climate response around renewables ISAAC ANYAOGU

A

s thousands of young people all over the world protest the impact of climate change calling on global leaders to take action, a new report by the International Renewable Energy Agency (IRENA) is calling public and private sector leaders to double annual investments in renewable energy to keep the world well below 2°C of warming.

The report published ahead of the UN Climate Action Summit in New York is calling for more concerted actions. With just 11 years left for action to limit the effects of climate change, annual investments of USD 4.3 trillion in the energy sector until 2030 is the world’s most practical and readily available climate solution.

Annual renewable energy investments for the next decade need to double from around USD 330 billion to nearly USD 750 billion per year until 2030, the report said.

The findings form part of a new climate investment report

by IRENA that highlights how cumulative global energy investments must pivot overwhelmingly towards low-carbon technologies including renewables.

More than USD 18.6 trillion of planned fossil-fuel investments by 2050 need to be redirected to hold the line called for by the Paris Agreement and reaffirmed by the recent special report of the Intergovernmental Panel on Climate Change (IPCC).

Despite the urgency, current investment patterns show a stark mismatch with the pathway necessary to ensure a climate-safe future. Together, renewable energy and energy efficiency, along with deeper electrification, can deliver 90 per cent of the energy-

related emission cuts needed under the Paris Agreement.

“It’s possible to limit climate change and meet the world’s growing energy demand by rapidly accelerating the speed at which we deploy renewable energy,” said Francesco La Camera IRENA’s Director-General. “Only an energy transformation driven by renewables will allow us to meet the goals of the UN 2030 Agenda and Paris Agreement.

Renewables are the only ready and available instrument we have to hold the 1.5°C line over the next

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

11 years.”

“In meeting climate goals, we can also boost economic growth and deliver on sustainable development with renewables,” continued La Camera. “But there is an urgent need to rethink long-term energy investment decisions to ensure they lead us to the sustainable future we need. Doubling investments in renewables offers us a tremendous opportunity to improve health, create jobs, deliver economic opportunity and tackle climate change. No other solution is as plausible.”

Transforming the energy system with renewables offers a more cost-effective path than climate inaction. Every dollar invested in the energy transition will offer returns of up to three to seven times in improved human health, lower climate related expenditure and reduced subsidies.

But accelerating renewable energy deployment requires policies that create an enabling environment to unlock investment and encourage economic development, the new report concludes. IRENA will work closer to the ground, facilitating projects and assisting countries in building attractive investment frameworks for renewables. The Agency will also enhance cooperation with the private sector, international financial institutions and multilateral organisations.

In support of the UN Secretary General’s call for decisive climate action, IRENA has launched a campaign that underpins renewable energy as a practical climate action solution. In co-operation with the United Nations Development Programme (UNDP), the Agency’s “Lead the change.

It’s possible with renewables” campaign aims to inform about the potential of renewable energy technologies and in turn encourage concrete climate action.

Feedback: 07037817378, 08137433034, 08135447789

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

34

Tuesday 24 September 2019

BUSINESS DAY

Markets + Finance

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

Seplat makes more money than it spends as margins surge BALA AUGIE

U

ndoubtedly, Seplat Petroleum Development Company Plc is an attractive investment, which is why investors keep swooping on its stock, as it continues to maximize shareholders’ value.

After surmounting the headwinds brought in by a precipitous drop in crude pr ice of mid 2014 that crimped the cashflow of oil majors across the globe, the Nigerian upstream oil and gas giant has continued to thrive.

The company an economic moat, which is the unique, sustainable, advantage that keeps competitors away, and allows it to generate higher than-average-profit.

For instance, the company’s policy of creating multiple export routes for all of its assets has resulted in it actively pursuing alternative crude oil evacuation options for production at OMLs 4, 38 and 41.

It has plans to further

grow and diversify production in order to reduce any over-reliance on one particular third party operated export system.

Seplat makes more money than it spends, which means it charges enough to cover costs, as evidenced in strong profit margins. This means for every Naira invested in sales, it generates higher profit.

The company has a robust cash flow, which means it has the financial strength to embark on more exploration activities and magnify sharholders earnings.

It is able to generate enough cash flow to provide a solid return per share, while its solid working capital position means there are no threats to its going concerns.

Financial performance for hi 2019 For the first six months through June 2019, Seplat recorded total revenue of N108.97 billion, this compares with N104.79 billion it generated in 2018, N40.31 billion in 2017, N31.12 billion in 2016, and N48.71 billion in 2015.

The growth in revenue was largely driven by the gas

segment. Revenue from gas spiked by 63.65 percent to N42.67 billion in the period under review from N26.09 billion as at June 2018.

Seplat plans to increase revenue from gas, as it will raise will raise $700 million for a joint gas project scheduled to start production next year as the government steps up plans to reduce the country’s reliance on oil.

The project, known as Assa North-Ohaji South, is one of seven to boost gas production and infrastructure development in the West African nation, the continent’s biggest producer of crude. ANOH Gas Processing Co., which is owned by Seplat and the Nigerian Gas Co., a unit of the Nigerian National Petroleum Corp., will develop, build and operate the plant in southeastern Imo State.

Seplat has managed direct cost attributable to projects as gross profit surged to N63.12 billion in June 2019, from N53.30 billion in 2018, N16.40 billion in 2017, N14.72 billion in 2016, and N21.39 billion in 2015.

Gross profit margin increased to 58.30 percent in June 2019, from 50.87 prcent in June 2018, 40.69 percent in 2017, 46.62 percent in 2016, and 43.82 percent in 2015.

This means the company is currently achieving a 58 percent gross profit (GP) on its products. It also means that for every Naira of sales Seplat generates, it earns 58 kobo in profits before other business expenses are paid.

The upstream oil and gas giant’s net profit hit a five year high of N37.49 billion in June 2019. See Chart.

Seplat is able to turn each Naira invested in sales into higher profit as net profit margin increased to 34.14 percent in 2019 from 14.16 percent the previous year.

That represents the fastest expansion in 5 years, and the negative figure in 2016 was caused by the disruption of

Forcados pipeline, during the restiveness in the Niger Delta region.Nigeria’s oil production was also disrupted, but the country existed a recession in the third quarter of 2017, thanks to a rebound in crude oi price and relative peace in the Niger Delts region.

Seplat’s operating income can cover its interest expense, which means are no threat to the bottom line.

Interestcoverage ratio hit 5.60 times operating income, which is more than the 1.50 percent international bench mark.

The interest coverage ratio is calculated by dividing earnings before interest and taxes (EBIT) by the total amount of interest expense on all of the company’s outstanding debts.

The company is efficient in utilizing its balance sheet in generating higher profit as return on asset (ROA) increased to 4.76 percent in June 2019 from 1.71 percent the previous year.

In other words, every Naira that Seplat invested in assets during the year produced N0.05 of net income.

The return on assets ratio, often called the return on total assets, is a profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.

Seplat’s cash flow from operating activities is N78.33 billion, which means it has the financial strength to pay dividend, reduce its debt, and fund future expansion plans.

The company has revised downwards its capital expenditure (CAPEX) to $150 million, while targeting targeting longer term oil and gas production together with the Oben and Sapele LPG projects.

Seplat has a cash conversion ratio (CRR) of 2.08, as it possesses excellent liquidity, and it also indicates that the company has excess cash flow compared to its

net profit.

The Cash Conversion Ratio (CCR), also known as cash conversion rate, is a financial management tool used to determine the ratio of the cash flows of a company to its net profit.

“Today’s results further emphasize the strong cash generation potential of our low-cost production base and the good progress we are making at the large scale ANOH gas and condensate development project,” said Austin Avuru, Seplat’s Chief Executive Officer Our H1 work programme has been impacted owing to unforeseen delays from rig contractors as well as the need to undertake higher lev-

BD MARKETS + FINANCE Analysts: BALA AUGIE www.businessday.ng

https://www.facebook.com/businessdayng

@Businessdayng

els of maintenance and asset integrity work for longer-term benefit of the assets. Both have affected production during the H1 but we have now secured the necessary rig capacity for the second half to implement the revised work programme which will drive us towards a 2019 exit working interest production rate of 62,000boepd and bring annualized production within the unchanged guidance range of 49,000 to 55,000 boepd.

Meanwhile, we remain on an extremely solid financial footing and concentrated on furthering our growth strategy as we target both organic and inorganic opportunities to grow shareholder returns,” summed Avuru.

Tuesday 24 September 2019

BUSINESS DAY

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@Businessdayng

35

36

Tuesday 24 September 2019

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Monday 23 September 2019

Top Gainers/Losers as at Monday 23 September 2019 LOSERS

GAINERS Company

Company

Opening

Closing

Change

N16

N17.2

1.2

N10.95

N11.6

0.65

UACN

N4.5

N4.95

0.45

NB

ZENITHBANK

N18.7

N19

0.3

ETERNA

N2.75

N3

0.25

FO CADBURY NCR

Closing

Change

N44.8

N40.35

-4.45

DEALS (Numbers)

PRESCO

VITAFOAM DANGCEM

N7.9

N7.15

-0.75

N52.55

N52

-0.55

VOLUME (Numbers)

N4.29

N3.87

-0.42

VALUE (N billion)

N155

N154.6

-0.4

MARKET CAP (N Trn)

Stock market opens week on a negative note Stories by Iheanyi Nwachukwu

T

he Nigerian equities market kick started this week on a negative note following relatively quiet trading session.

The benchmark performance indicator dropped by 0.15percent to close on Monday September 23 at 27,657.27points while the value of listed stocks stood lower at N13.463trillion as against 27,698.69 points and N13.484 trillion recorded the preceding trading day respectively. Stock investors lost N21billion on Monday.

The market’s year-to-date (YtD) returns currently stands at -12percent. Monday’s negative performance came as a result of sell pressure on some mid/large cap stocks.

For instance, Presco Plc led the losers table of 24 against 18 gainers. Presco dipped from N44.8 to N40.35, down by N4.45 or 9.93percent, followed by UAC of Nigerian Plc which declined from N7.9 to N7.15, down by 75kobo or 9.49percent.

Nig e r i a n B re w e r i e s Pl c decreased from N52.55 to N52, losing 55kobo or 1.05percent.

As investors cautiously observe the direction of the market, its turnover on Monday came in lower than recorded in recent sessions. In 3,382

deals, stock dealers exchanged 109,562,733 units valued at N888.172million.

With negative market breadth and most sectors seen close negative, analysts expect a busier session with similar trading pattern in Tuesday session excluding any positive event that may sway investors’ sentiment to the positive side.

On the gainers table, Forte Oil Plc led other stocks after its share price advanced from N16 to N17.2, adding N1.2 or 7.50percent. It was followed

by Cadbury which moved up from N10.95 to N11.6, after adding 65kobo or 5.94percent, and NCR Plc which rose from N4.5 to N4.95, adding 45kobo or 10percent.

L-R: Adedeji Olutayo Abiodun, president Nigeria Statistics Students Association, University of Abuja; Ahmad Hamidu, lecturer Department of Banking and Finance, Modibbo Adama University of Technology Yola; Ali Haruna, lecturer Department of Finance MAUT; Ahaneku Ikechukwu, principal Manager Investor Education Division Securities and Exchange Commission; and Y. Jatau, senior Lecturer Department of Accounting Federal Polytehnic Nassarawa during an educational visit to the SEC.

FATE Foundation set to hold 4th alumni conference

P

reparations are in earnest for the FATE Foundation 4th annual alumni conference with the theme “Innovating for Scale” holding in Lagos on Wednesday, September 25, 2019 by 9am to 4.30pm.

The conference which will be attended by the vast alumni network of the foundation will provide a veritable platform for alumni networking and knowledge sharing.

Professionals like the Founder and Chief Executive Officer of SLOT systems limited, Nnamdi Ezeigbo and Senior Partner, TLcom

capital, Omobola Johnson w il l grace the e vent a s Keynote speakers to share insights on their experiences with the budding entrepreneurs on strategies and required skillsets for making decisions that will help their businesses have high impact growth and scale successfully.

Speaking about the Conference, Lead, Growth S u p p o r t U n i t , FAT E Foundation, Fatai Olayemi, s t at e d t hat t h e a n n u a l alumni conference is the most anticipated event of the Foundation. He stressed that www.businessday.ng

ASI (Points)

Opening

the event would provide a formal and informal platform for networking, learning and also highlight the Foundation’s role in harnessing the strong entrepreneurial culture of young Nigerians by providing them with business incubation, growth and accelerator support required to fully explore their innovative potentials.

Olayemi noted that “this year’s theme “Innovating for Scale” was apt at this critical time when entrepreneurs need to constantly be in tune with understanding the local and global dynamics which shape business successes”.

27,657.27 3,382.00 109,562,733.00 888.1 13.463

Global market indicators FTSE 100 Index 7,326.08GBP -18.84-0.26%

Nikkei 225 22,079.09JPY +34.64+0.16%

S&P 500 Index 2,995.13USD +3.06+0.10%

Deutsche Boerse AG German Stock Index DAX 12,342.33EUR -125.68-1.01%

Generic 1st ‘SP’ Future 2,996.00USD +6.50+0.22%

Shanghai Stock Exchange Composite Index 2,977.08CNY -29.37-0.98%

Economy & Markets

As stakeholders meet over FX restriction on powdered milk, dairy products, all food imports

T

he Central Bank of Ni g e r i a ( C B N ) i s always in the news because of its role in the economy. As the apex bank, CBN’s traditional functions include the formulating and implementing monetary policy, determining interest rates and directing money supply - to achieve price stability; regulating and supervising the banking and financial systems, managing foreign reserve and ensuring the stability of financial markets.

Recently, CBN announced policy which puts a restriction on the sale of foreign exchange (FX) for the importation of milk from the Nigerian FX market saying its is aimed at promoting local production of milk in the country.

CBN said that the policy will help conserve between $1.2 billion and $1.5billion the country spends on the importation of milk every year.

Since the policy announcement many interest groups have been reacting to the policy which increases to 44 the items CBN restricts from accessing FOREX at the official rate. The policy restricting access to forex for importation of powdered milk and other food products stands to create scarcity of forex for affected importers leading to an increase in prices of their basic products (utilising imported raw materials), ultimately fueling inflation.

No doubt this prompts the Convention on Business Integrity (CBi) to schedule today event tagged Regulatory Conversation 4.0 with the theme “Foreign Exchange Restrictions on Food Imports and Implications for Regulating and Growing the Nigerian Economy.”

This is part of CBi’s mission of promoting ethical business p ra c t i c e s, t ra n s p a re n c y and fair competition in the private and public sectors.

The event which is anticipated to have in attendance about 200 participants comprising Regulatory Agencies such as the Central Bank of Nigeria, Directors –General of Ministries, Departments and Agencies of the Government, Private Sector actors such as Chief Executive Officers of Companies (Large/ Medium/Small) as well as other key players in the Business community and other related stakeholders.

The debate currently raging in private sector circles is whether or not this regulatory action of the CBN is in the public

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interest? If so, should the public hail the CBN and encourage more of such interventions?

Nigeria’s milk demand is some 1.7billion litres a year of which only about 600 million litres are locally produced and imports bridge the 1.1billion litre demand gap.

Segun Ajayi-Kadir, DirectorG eneral, Manufacturers Association of Nigeria (MAN) had noted that the decision might lead to the downsizing of staff of affected manufacturing companies while also cutting down on the contribution of the manufacturing sector of the economy to the country’s gross domestic product (GDP).

“It is a fact that backward integration is the way to grow an economy, but there is a need to be strategic and deliberate about the way to implement the measure,” he said.

The expectations behind CBN action were at least that: processing companies would be induced to backwardly integrate into their local value chains; herdsmen will find more offtakers for their produce and earn more and this will result in greater peace between them and farmers ; an appreciable number of jobs will be created locally especially for Nigeria’s teeming youth population; and the federal government (CBN) will save valuable foreign exchange, which it has put at some $1.2billion annually for milk imports.

Meanwhile, a modestlysized powdered milk factory will require guaranteed daily supplies of at least 1million litres of raw milk daily. During the rains when there is enough water for cattle, Friesland Campina for example has reportedly never managed to aggregate more than 70,000 litres a day which falls to well less than 20,000 litres a day during the dry season.

A sudden introduction of a restriction will leave players in this sector with at least two scenarios: continue to import but with forex bought at prices you are less able to plan for and pass the cost increases on to consumers or backwardly integrate, invest, but face severe shortfalls and loss of revenue and profits for an indeterminate number of years.

St a k e h o l d e r s b e l i e v e that those who are sincere about investing in backward integration would come across major challenges to increasing milk productivity sustainably.

For instance, cows need three @Businessdayng

litres of water to produce a litre of milk (but there are severe water shortages where they are concentrated in Northern Nigeria). Also, the fodder available to our cattle is high in Lignin and inhibits conversion to milk, although we now have Napier grass thanks to the Business Innovation Facility (BIF) ran by Convention on Business Integrity for PwC Uk and DFID, which increases yield by at least two additional litres of milk per cow per day (single milking).

This is not yet available across the country and can only solve the dry season need for fodder if converted to pellets and/or silage in bags. Opportunities for growing the grass and creating value-added products from it will certainly be accelerated by this CBN policy but access to water requires major investments in infrastructure particularly in the grazing reserves where the government has allowed majority of the dams to silt up.

Another challeng e to productivity comes from the breed of cattle itself which needs to be improved if the dairy sector is to record the sorts of volumes needed for reliance on local value chains.

There is also artificial insemination and embryo te chnologies that could b e e m p l oy e d f o r b re e d improvement to ensure that in 5-10 years milk yields could be significantly increased. However, regardless of the amounts of milk available, without improved cattle management (extension and vet services) leading to acceptable milk handling and hygiene practices amongst pastoralists, it will not be fit for uptake by the processing companies. This is another area where private sector innovation and investment can make a significant difference. At last, there may be more outlets for greater volumes of liquid milk but the problem of industry, access to powdered milk will remain a few years away.

The message is that this ban may catalyse activity at the very start of the chain and benefit herdsmen that are ready to be sedentary (whose numbers have currently not been shared publicly if known), but it will not replace the need for forex to purchase powdered milk for inclusion in powdered dairy-based beverages and baby food for the foreseeable future. Considering this, the question now is who are the real beneficiaries of the policy?

Tuesday 24 September 2019

BUSINESS DAY

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news

Phillips Consulting partners Five Cowries for ‘My Story of Water’ exhibition 2019 SEGUN ADAMS

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hillips Consulting, as part of its commitment to drive inclusiveness and development in Nigeria, recently partnered with Five Cowries initiative to deliver on a photo-exhibition project tagged “My Story of Water”.

The 2019 project, “My Story of Water”, is a collaborative arts programme bringing children from Lagos with partners around the world, using art as a vehicle for social change. The initiative is aimed at creating awareness and helping children understand the importance of water, water pollution and the environmental crisis, which will, in turn, inspire creative ways to address the issues in the country.

The children were encouraged and empowered to express themselves and tell their stories about water using art by painting jerry cans, canoes, etc.

About 1,600 children from over 30 primary schools in Lagos and Ogun States took part in this project and produced an installation of 500 painted jerry cans.

Phillips Consulting supported by distributing art supplies and “canvases” in the form of jerry cans to primary schools in Lagos, Abeokuta, Ilaro, Aiyetoro and Ijebu-Ode in Ogun State and also supported the kids during the creative sessions.

Polly Alakija, founder, Five Cowries initiative, explained the challenges young children experience in Nigeria regarding lack of water.

“Everyday activities such as bathing and cooking have become chores for these children, they are constantly at risk of diseases caused by using dirty water,” Alakija said.

Collaborating with public, private and civil sector partners – including Phillips Consulting Limited, Five Cowries initia-

tive is intentional about fusing the 3Rs of primary education – reading, writing and arithmetic – with the 4Cs – critical thinking, communication, collaboration, and creativity.

Rob Taiwo, MD, Phillips Consulting, and Dele Phillips, associate partner, were in attendance at the photo-exhibition launch event at the London City Hall to show support to the Five Cowries Initiative.

“Last year, Phillips Consulting realigned her business goals with a clear focus on transforming businesses using its strategy, digital and human capital resources. The Five Cowries initiative provides pcl. with the platform to achieve one of her strategic goals – impacting lives,” Phillips said about the partnership with Five Cowries.

“The story of water encourages students to tell visual stories about water and sustainability in their environment. pcl. has been delighted to provide ‘fluidity’ in the process, making this a success story. We are also pleased with the positive energy towards building and maintaining our waterways,” he said.

As part of the Totally Thames festival, the riverside arcade at Oxo Tower Wharf in London is also currently adorned with an installation of 500 jerry cans, painted by children across Nigeria till the 30th of September.

The photo exhibition of the project at London City Hall will be open to the public till 16th September Five Cowries initiative was launched in 2017 to offer more inclusive pathways into education by integrating arts into teaching to improve learning outcomes. The initiative was established as a response to the degenerating educational system in Nigeria. Five Cowries trains 50 teachers who directly support some 2,000 children annually.

R-L: Asue Ighodalo, chairman Nigerian Economic Summit Group; Vice President Yemi Osinbajo; ‘Laoye Jaiyeola, CEO, NESG, and Nnanna Ude, co-chair (Private Sector) #NES25 Joint Planning Committee, at the official briefing of the Vice President on the upcoming 25th Nigerian Economic Summit in Abuja.

Service Chiefs apologise to Reps, say absence at Friday meeting not disrespect James Kwen, Abuja

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he Service Chiefs, who head Nigeria’s armed forces, have apologised to the House of Representatives over their failure to personally attend the meeting convened by the leadership of House and relevant security committees last Friday.

Chief of Defence Staff, Gabriel Olonisakin who tendered the apology at the rescheduled meeting on Monday at the National Assembly Complex, Abuja said, the Service Chiefs recognised the concern of the National Assembly over the current security challenges in the country, but were unable to appear on Friday due to other national assignments.

“I wish to put on record that contrary to insinuations,

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he House of Repre s e n t a t i v e s h a s threatened to make sure that no fund was appropriated in the 2020 budget of the Niger Delta Development Commission (NDDC) unless the agency paid over one Trillion Naira debt it is owing contractors who executed projects in the Niger Delta region.

Chairman of the House Ad-hoc Committee on abandoned projects by NDDC, Nicholas Ossai, who gave this indication Monday at an investigative public hearing, revealed that almost all the contractors who executed one project or another in the Niger Delta region for the development of the area were still being owed by the NDDC. Ossai noted that from the

documents submitted to the Committee, many of the contractors had completed their jobs and were still being owed for so long after they executed jobs for the Commission.

He said that “for contractors who have finished their jobs and have not been paid, we are going to use our powers to ensure that provisions are made in the next budget for such otherwise we may not pass it”.

Some of the contractors who appeared and also made presentations lamented that the agency is currently having a debt profile of one Trillion Naira on the projects that had been executed in the nine Niger Delta States.

One of the contractors, Fubara Blessing, who told the Committee that so much money had been voted for www.businessday.ng

Olonisakin disclosed that the armed forces in collaboration with other security and intelligence agencies had been contending with terrorism for many years in the northeast and assured that they would continue to strategise on how to address the changing operational situation of the terrorists.

In his opening remarks before the meeting went closed-door, Speaker of the House, Femi Gbajabiamila, said the essence of the meeting was to meet with the Service Chiefs and discuss the security situation in Nigeria as well as to identify the challenges and what the House could do to address them.

Gbajabiamila said that the 2019 budget was to be presented to the House within the next two weeks and that the meeting was timely to address financial

challenges confronting the armed forces in the fight against insurgency, banditry and other security issues.

“Security is one of the major concerns of this government and we have an obligation to arrest the situation and do whatever we can.

“Like in every democracy, there is collaboration among arms of government ; it is only when we collaborate that we get the required results,” the Speaker said.

Unlike Friday, the Monday meeting was attended by the Service Chiefs including the Chief of the Naval Staff, Ibok Ekwe-Ibas and the Chief of the Air Staff, Sadique Abubakar.

However, the Chief of Army Staff, Tukur Buratai, was again absent, while the Inspector General of Police, Mohammed Adamu who attended the last meeting was also absent.

CJN canvasses financial autonomy for judiciary

Reps threaten to withhold NDDC budget over N1trillion contractors’ debts James Kwen, Abuja

the absence of the service chiefs on Friday was not a deliberate act to disrespect the institution of the National Assembly.

“We hold the National Assembly in the highest regard and wish to appreciate the institution for the support in the fight against insurgency,” Olonisakin said.

The Chief of Defence Staff said the armed forces would continue to collaborate with other security agencies to ensure peace and security in the north-eastern part of the country.

He appreciated the leadership of the House for the opportunity to interact with them on the issues of insecurity in the north-eastern and other parts of the country, adding that, in spite of the challenges, appreciable progress had been made in the fight against insurgency.

Felix Omohomhion, Abuja

NDDC but none of the contractors had been paid by the agency.

He advised the committee to ensure that it plugged all the loopholes that had been identified in the payment system to ensure that no contractor was paid by the Commission until all contracts awarded by it are completed.

On the other hand, Oghogho Emeni, Chief Executive Officer of Atom Global Contractors Ltd lamented that most female contractors were not given jobs to execute in the agency despite having qualifications to execute them.

The Committee adjourned the investigative hearing to Wednesday, September 25, 2019 for more contractors to appear and give more testimonies to the committee.

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he Chief Justice of Nigeria (CJN), Justice Ibrahim Tanko Muhammad, Monday, canvassed for financial autonomy for the judiciary.

The CJN said a situation where the third arm of government went cap in hand begging for funds for the administration of justice in the country did augur well for the independence of the judiciary.

Justice Muhammad, who spoke during the swearing-in ceremony of 38 new Senior Advocates of Nigeria (SANs) at the Supreme Court, Abuja, yesterday, lamented that the gross underfunding and neglect of the judiciary over the years had impacted negatively on the infrastructure and personnel within the system.

He appealed to the relevant authorities to free the judiciary from financial bondage.

Muhammad, who harped on the independence of the

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judiciary, said financial autonomy was tied to its capability to dispense justice.

“Be that as it may, when we assess the judiciary from the financial perspective, how free can we say we are? The annual budget of the judiciary is still a far cry from what it ought to be.

The figure is either stagnated for a long period or it goes on a progressive decline. The only thing I can do at this juncture is to plead with all concerned to let us enjoy our independence, historically. If you say that I am independent, but in a way, whether I like it or not, I have to go cap in hand, asking for funds to run my office, then I have completely lost my independence. It is like saying a cow is free to graze in the meadow but at the same time, tying it firmly to a tree. Where is the freedom?” he asked.

However, he said the Nigerian judiciary, to a large extent, was independent in conducting its affairs and taking of decisions on matters before it with@Businessdayng

out any extraneous influence.

“At the Supreme Court, as I have always said, we are totally independent in the way we conduct our affairs, especially in our judgments. We don’t pander to anybody’s whims and caprices. If there is any deity to be feared, it is the Almighty God. We will never be subservient to anybody, no matter his position in the society,” he asserted.

He continued: “The gross underfunding and neglect of the judiciary over the years have impacted negatively on the infrastructure and personnel within the system. It is to a large extent affecting productivity, increasing frustration and deflating morale. That is certainly not a good omen at this stage of our nationhood. The constitution provides for separation of powers and independence of the three arms of government. I am using this medium to appeal to government s at all levels to free the judiciary from the financial bondage it has been subjected to over their the years,” he said.

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Tuesday 24 September 2019

BUSINESS DAY

FEATURE

Village community in Kebbi awakens on FG’s clean energy drive KARE-DADIN KOWA, an agrarian community in Kebbi State has joined a growing league of solar powered rural communities in Nigeria. This is so because the Federal Government has commissioned a 98.80 kilowatts (kW) solar hybrid mini grid power plant. STEPHEN ONYEKWELU writes that this community is known for rice and millet production in Nigeria, the newly commissioned facility will improve lives and boost trade for residents.

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are-Dadin Kowa, a small riverine community in Arewa Local Government area of Kebbi State has awakened from decades of slumbering without light, in dark oblivion. This awakening is thanks to the new roll out of mini-grids powered by hybrid solar power plants by the PresidentBuhari led administration, implemented by the Rural Electrification Agency, under its Rural Electrification Fund (REF).

With a total population of about 3,180 people, agriculture and fishing are key economic activities within Kare-Dadin Kowa.

The newly commissioned 98.80kW solar hybrid mini grid plant would provide clean energy to 483 residential buildings, schools, places of worships and health centres. It will also power 82 commercial buildings which would serve over 3,000 inhabitants of the community. The old inhabitants were very appreciative, the not too young were joyous and the young ones were excited as they lined the streets to witness the historic moment in their lives, when reliable, clean energy entered the community.

The September 17 commissioning of the 98.80kW solar hybrid mini grid power plant reinforces the Federal Government’s campaign to electrify the un-served and underserved communities across all regions of the country, ensuring equitable access to uninterrupted and sustainable power through an off-grid independent power plant.

For the millions of people who do not currently have access to electricity, the old assumption that they will have to wait for grid extensions is being turned on its head by new technological possibilities. There are currently 634 million people without electricity in Africa and in Nigeria it is estimated that only one in five people has access to power from the electricity grid. This leaves four in five people living in urban and rural communities having to fend for themselves with makeshift and localised power solutions.

Faster progress is needed, and it is believed that national energy policies need to adopt a more comprehensive approach to energy access, embracing the new starting points for energy provided by standalone renewable technology and mini-grids. This is why Africa’s most populous nation is promoting off-grid electrification, to stimulate innovative approaches to rural electrification, with collateral social, economic and environmental benefits.

The first call of the REF will energise 12 communities and deploy 19,000 Solar Home Systems (SHS). REF projects are administered using a Public Private Partnership (PPP) model.

“Under my leadership, the Ministry of Power will continue to provide requisite policy interventions to ensure that transformative projects like this will have the desired impact of electrifying Nigeria,” Saleh Mamman, Nigeria’s minister of power said during the commissioning event.

Representing Abubakar Bagudu, the governor of Kebbi State, the permanent secretary, Ministry of Water Resources and Rural Development, Aminu Umar, commended President Buhari led administration’s Next

An artisan and resident of the Kare-Dadin Kowa community using the newly commissioned power plant to ply his trade

Level Road Map in rural electrification and noted that “the solar hybrid mini-grid will expand and transform the economic landscape of Kebbi State. “Small businesses like welders, cold rooms, as well as processing mills can now operate more effectively with reliable and clean electricity as a result of this project,” Bugudu said. “This solar installation has 380 panels that will provide electricity to over 3,000 residents of this community.

We are the land of equity and this project is further ensuring the distribution of equitable power to the people of Kebbi State.”

The governor reiterated his passion and vision to industrialise and make the State a viable economic business hub. This he said was why they have focused on the provision of electricity within Kebbi State by partnering and supporting on-grid providers, with new transformers and injection of funds to stabilise and ensure constant power supply to the state. “This power project’s impact will also be felt in other sectors, in tourism for example. With an available supply of clean energy, commerce and industrial activities will increase in the state,” the Governor added.

In his address, representative of the managing director of Rural Electrification Agency and executive director, Rural Electrification Fund, Sanusi Ohiare extolled the commitment of the Federal Government in walking the talk. “Kare-Dadin Kowa community is the second of twelve communities earmarked to benefit from Rural Electrification Fund (REF) grants. The project being commissioned here today is implemented by the Rural Electrification Agency, with the goal of providing equitable access to electricity across Nigeria. Today, REA provides electricity to 82 commercial businesses, 482 residences and over 3,180 residents (including women and children). I must state that these are exciting times because history is being made in Kare-Dadin Kowa, Kebbi State and in Nigeria

as a whole.”

According to Ohiare, the people of KareDadin Kowa have been provided with access to stable electricity, and this project will provide job opportunities for the industrious people of the community in engineering, construction and project management.

“Thanks to the Federal Government of Nigeria’s Next level Roadmap, more Nigerians can look forward to a Nigerian dream, where access to stable power is no longer dependent on alternative sources of electricity that are harmful to our health and the environment.”

Ohiare’s gratitude included litany of thanksgiving to the private sector developer, Nayo Tropical Technology Limited for delivering the project on time and to its full capacity. He also thanked his team at the Rural Electrification Agency, particularly Damilola Ogunbiyi, managing director and chief executive officer of REA for the guidance and tenacity in ensuring that the various initiatives earmarked under the Rural Electrification Fund come to fruition.

Elated Musa Maina, district head of the community said “this community has been in darkness for too long and this is why my subjects are grateful to the Federal Government and the people of the Rural Electrification Agency, for counting us worthy to benefit from solar technology. There is no doubt that the electricity will improve the way of life of my people, intellectual ability of our students who now have electricity to read.”

This was re-echoed in the goodwill message, by the Emir of Argungu, Samaila Muhammed Mera, who was represented

by Ibrahim Hassan. Mera said “this is especially gratifying for us and our rural communities in Kebbi State. We can now experience what we would normally refer to as “the city life” now that we will have access to reliable and stable electricity. We are a

small fishing and agricultural community so this is a major development as new business opportunities in milling; processing, storage and fishery will now become a reality for our industrious people. I appreciate the dedication of the Federal Government of Nigeria in ensuring that Nigerians, irrespective of their geographical locations, can now have access to constant electricity.”

In line with REF’s Public Private Partnership (PPP) model, private sector participation and investment was also critical to the successful implementation of the project.

Anayo Okenwa, MD/CEO, Nayo Tropical Technology Limited, said that the installed solar hybrid mini grid was constructed in line with international standards and best practice. “As an indigenous firm, we are proud to have leveraged the skills and capacity of our host community, in addition to providing the enabling environment for skilled labour and job creation.”

Still on vote of thanks, the director, Rural Electrification Fund, Bulus Maiyaki commended the relentless effort of President Buhari in seeing that Nigerians have increased access to clean and reliable electricity in their homes, businesses and schools.

He also gave appreciated the efforts of the Ministry of Power, the National Assembly and their Committees on Power, in creating an enabling environment for the successful implementation of Rural Electrification Fund projects across Nigeria.”

Maiyaki acknowledged the outstanding leadership role of the MD/CEO of Rural Electrification Agency, Damilola Ogunbiyi, Governor Bagudu of Kebbi State for his support, the emirs and district heads for creating an enabling environment for the project to be executed, this applied Nayo Tropical Technology Limited for its incredible efforts and professional expertise demonstrated on this project with the state-of-the art installation.

Tuesday 24 September 2019

BUSINESS DAY

39

news Motorcycle imports hit record...

Continued from page 1

they beckon on pedestrians, bargain with potential customers whilst contemplating how to respond to orders beeping on their smartphones.

The customers, typically youths, are a large part of Nigeria’s smartphone users recently estimated by Jumia, the online retail platform listed on the New York Stock Exchange this year, to be 36 million. They are in the forefront of a mobile-first digital transformation sweeping across Nigeria and their intolerance for go-slows is leading to a surge in bike import in the country.

Nigeria spent $111.96 billion to import motorcycles in the second quarter of 2019, according to the National Bureau of Statistics, more than the combined amounts expended on bikes in the first six months of 2018, making it a record high, according to BusinessDay computations.

In the last two years, increasing demand for bikes has seen motorcycles become the biggest non-oil import item. It is now Nigeria’s fifth-biggest demand in the international market with the surge in the fourth quarter of 2018 where expenditure on bike importation rose some 109 percent.

Across Lagos and in other regions of the country, bike-hailing businesses are gaining prominence. Max. ng, Gokada and ORide have no less than 2,000 bikes among themselves.

“The ride-hailing technological solution has proven scalable and has encouraged investment,” said Bongo Adi, a senior lecturer at the Lagos Business School. “The difficulty bike owners face in the traditional okada industry in monitoring activities of the riders they lease to has been done away with.”

But the rising demand for bikes also points to the neglect of alternatives modes of transportation like rail which has led to heavy traffic on roads. At the same time, it stems from economic migration from the northern region to hotspots like Lagos, Adi

earning assets.

A high net interest margin indicates an entity invests its funds efficiently, while a lower return implies the bank or investment firm doesn’t invest efficiently.

As at June 2019, Guaranty Trust Bank plc, the largest lender by market capitalization, has a net interest margin of 8.60 percent, First Bank Holdings (FBHN) 7.50 percent, Access Bank 7.60 percent, and Zenith Bank 6.70 percent.

B y c o n t ra s t , s m a l l e r lenders like Fidelity, Stanbic IBTC, Wema, and Sterling Bank have NIM of 4.60

noted.

“People leaving their states to seek greener pastures in Lagos find it easier to join the bike transportation business,” Adi said.

Boniface Chizea, MD and CEO of BIC Consultancy Ser vices, shared similar views on the impact of the poor transportation system on the country’s increasing motorcycle demand.

The new kids on the block Not so long ago, the yellow and black-striped danfo and molue buses were the undisputed kings of Lagos roads, but the rebranding of a one-time popular okada business is redefining the city’s transportation landscape as ride-hailing is fast becoming the new norm for commuting in Lagos and some other parts of the country.

Aside from traffic, the choice of taking okadas or ‘the new kids on the block’ is about cost, convenience and quality of service, said Anita, a 22-year-old student of the University of Lagos.

“There are areas where okada men have been banned from entering but the ride-hailing ones, who drive more carefully, are permitted,” she said.

S o m e w o rk e r s i n t h e middle-income class say t h e y l e av e t h e i r ca r s at home on days of the week traffic usually gets congested.

“I often take bikes or Uber to save fuel and ease my mobility,” one banker said.

An offer difficult to resist The motorcycle transport business has not always b e e n a s att ra c t i ve as it now is and Nigerians once only considered it as a last resort.

The birth of the multimillion-dollar industry was in August of 2015 when Max .ng pioneered t h e b i k i n g s e r v i c e s, a l though adoption w ould follow three years after, as the popularity of hailriding taxi, Uber, brought aggregation-model-styled transp or t business es to the centre stage.

•Continues online at www.businessday.ng

L-R: Kola Adesina, executive director, Sahara Group; President Alpha Conde of Guinea; President Sahle-Work Zewde of the Federal Republic of Ethiopia, and Akinwunmi Adesina, president, African Development Bank, at a dinner organised

by Sahara Group at the margins of the ongoing 74th United Nations General Assembly in New York to celebrate the role of strategic partnerships in the quest of achieving the Sustainable Development Goals in Africa.

These projects could take Nigeria from oil...

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expected to create thousands of new jobs, spur domestic gas demand, generate electricity, create an opportunity to diversify revenue of the Nigerian government, strengthen the country’s revenue base and turn Nigeria into a dominant geopolitical player in Africa, using its gas resources, just like Australia, Russia or Qatar.

Some of the critical gas de velopment projects in-

clude the 4.3 Trillion cubic feet (Tcf ) Assa North/ Ohaji South field by Shell Petroleum Development Company of Nigeria Limited (SPDC), a major plank of the domestic gas aspiration of the Federal Government for increased power generation and industrialisation.

SPDC is also participating in the development of the 6.4 Tcf Unitised Gas fields (Samabri-Biseni, Akri-Oguta, Ubie-Oshi and Afuo-Ogbainbri) in conjunction with the Nigerian Agip Oil Company JV, while Nigeria Petroleum Development Corporation (NPDC) is also developing OML 26, OML 30 and OML 42 which are expected to develop 7 Tcf. Other works include the development of 2.2 Tcf by SPDC JV Gas Supply to Brass Fertiliser Company, the cluster development of 5 Tcf of gas from OML 13 to support the expansion of Seven Energy’s Uquo Gas Plant, and the cluster development

of the 10 Tcf Okpokunou/ Tuomo West (OML 35 & 62).

SPDC JV also signed a gas supply and aggregation agreement with Geometric Power Aba Limited (GPAL) for the supply of about 43 million standard cubic feet of gas per day to support the 140MW Aba Integrated Power Plant at Ossisioma in Abia State. Other gas assets include Bosi, which is reported to contain as much as 5-7 Tcf of gas; the Nnwa/ Doro structure reportedly carrying 6-9 Tcf of gas; the Ngolo trap (OPL 219) and Assa-North. Eni also just announced a new discovery.

“Some of the fields were discovered as far back as in the 1990s, and have been plugged after successful production test were carried out,” Charles Akinbobola, energy analyst at Lagos-based Sofidam Capital, said.

Moving forward, ExxonMobil and Qua Iboe Power Plant Limited (QIPP) have initiated plans to invest a combined $1.6 billion in the development of gas and power projects in Akwa Ibom State. The initiative would see QIPP invest $1.1 billion in the building of a gas power plant with ExxonMobil investing $500 million in a gas project in the area.

Also, there are other gas pipelines projects such as Obiafu-Obrikom-Oben Gas Pipeline, the planned extension of the West Africa Gas Pipeline (WAGP) to Cote d’Ivoire, Escravos-Lagos Pipeline (ELP), East-West

Nigeria bank divide widens as lower yields...

Continued from page 1 percent, 6.0 percent, 6.10 percent, and 6.20 percent, respectively.

The bigger banks have a larger balance sheet size and assets that translate into higher interest income from those assets, according to Yinka Ademowagun, an equity research analyst at United Capital.

“Big banks do not borrow much and they invest in government securities, which are risk-free compared to loans that you have to take www.businessday.ng

some impairments on,” said Ademowagun.

This means the inequality among lenders in Africa’s largest economy is increasing.

The five largest lenders (FBNH, GTB, UBA, Zenith and Access) raked in N1.03 trillion in interest income as at June 2019, which compares with N368 billion combined interest income of the rest of the smaller banks, according to data compiled by BusinessDay. Similarly, the five big lenders have combined total assets of N26.15 trillion as at June

2019, which compares with the N8.16 trillion in total assets of the smaller lenders.

Net interest income of Nigerian banks – revenue from customers’ loans payments and investment returns minus what banks pays depositors – has been growing at a slow pace since the start of 2018, when yields on treasury bills began to fall.

In 2017, banks’ traditional lending businesses profited from a high interest rate environment as they made money from investment securities such as bonds and treasury

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Offshore Gas Gathering System (EWOGGS), AjaokutaKaduna-Kano (AKK) Pipeline project and the Trans Saharan Gas Pipeline.

Obiafu-Obrikom-Oben Gas Pipeline, also called the OB3 Pipeline or the East-West Pipeline, is a proposed natural gas pipeline running from the Obiafu-Obrikom gas plant near Omuku, Rivers State, to the Oben node in Edo State which is also expected to increase domestic gas supply from 42.5 mcm (1.5 bcf ) to 56.6 mcm (2 bcf ) per day.

The WAGP is a natural gas pipeline to supply gas from Nigeria’s Escravos region of Niger Delta area to Benin, Togo and Ghana. It has an initial capacity of 200 million cubic feet a day (mcfd), which is expandable to 600mcfd.

Also, there is the Escravos-Lagos Pipeline (ELP), a natural gas pipeline which supplies gas from Escravos region of the Niger Delta area to Lagos. The 36-inch, 342-kilometre gas pipeline project is expected to double the capacity of the existing ELPS, thereby improving gas supply to Ogun State and environs and guaranteeing a significant improvement in power supply across the country.

Early this year, NNPC awarded the Engineering Procurement Construction (EPC) contract for the $727 m i l l i o n Aja o ku t a -Abu ja portion of the Ajaokuta-Kaduna-Kano (AKK) pipeline project to Axxela Limited, formerly known as Oando Gas & Power, and Oilserv Limited.

AKK pipeline is a 614km-

long natural gas pipeline currently being developed by the Nigerian National Petroleum Corporation (NNPC).

The pipeline will cost an estimated $2.8bn and is currently scheduled for commissioning in 2020.

The proposed East West Offshore Gas Gathering System (EWOGGS) project being promoted by the Dangote Group consists of two 38-in, 550km pipelines, each with a capacity of 1.5 Bcf/day, while the Trans-Saharan Gas Pipeline Project (TSGP) is expected to help Nigeria achieve zero gas flaring by 2020, although it is currently running behind schedule.

While Nigeria seems to be dilly-dallying, Trinidad and Tobago is a good example of a country that has accomplished much with its gas resources. With a small population of 1.4 million and only 11 Tcf of proven gas reserves, the country has developed a globally competitive petrochemicals industry. Today, Trinidad and Tobago is the world’s largest exporter of ammonia and second largest exporter of methanol leading to this industry contributing significantly to the country’s GDP. Australia exported more LNG than Qatar in November 2018 and April 2019. But now, the US Energy Information Administration (EIA) says Australia is on track to consistently export more LNG than Qatar, as recently commissioned projects such as Wheatstone, Ichthys, and Prelude ramp up production.

These are all scenarios Nigeria can learn from.

yields.

That same year, treasury yields hovered between 18 percent and 22 percent, but now it hovers between 13 and 14 percent.

While the lenders’ combined net interest income increased by 16.01 percent to N862.78 billion in June 2019, it is lower than the N981.39 billion generated in 2017.

Analysts say net interest margin for Nigerian banks will continue to deteriorate through the year, but they added that the narrative will change next year since a lot of lenders are investing in the retail end of the market.

“When you look at the performance of banks, you will see that they are feeling the pains of a low yield environment, and as such net interest margins may continue to suffer,” said Ayorinde Akinloye, equity research analyst at CSL Research Limited.

Unlike in Europe, Asia, and the United States where net interest income is susceptible to central banks’ tampering of interest rates, net interest income of Nigerian banks often does not react to movement in the policy rate.

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•Continues online at www.businessday.ng

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Tuesday 24 September 2019

BUSINESS DAY

POLITICS & POLICY We’ll work with judiciary to ensure effective justice delivery - Sanwo-Olu

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abajide Sanwo-Olu, Lagos State governor, ha s a s s u re d the judiciary of his administration’s commitment to the implementation of reforms that will accelerate administration of justice.

The governor said the judicial arm of the government played critical roles in ensuring law and order through the protection of rights of the citizenry irrespective of status and background.

Sanwo-Olu, who was represented by Deputy Governor, Obafemi Hamzat at a special service held at the Central Mosque, Lagos Island, by the state judiciary to mark the 2019/2020 Legal Year, said his administration was committed to proffer solutions to challenges slowing down efficient justice delivery in the state.

He listed one of the obstacles against justice delivery to include lack of adequate courtrooms, disclosing that the current administration had approved the completion of the combined High and Magistrate Court complex in Ajah.

He said: “The judicial

L-R: Bukola Saraki, a former Senate president; Senator Buruji Kashamu and Dapo Abiodun, Ogun State governor, at the 40 day Fidau and final burial rites of Mama Wulemotu Kashamu at Ijebu Igbo, Ogun State.

fectiveness, efficiency and speedy delivery of justice.”

In his remarks, the Chief Judge, Hon. Justice Kazeem Alogba expressed gratitude to the executive arm of government for its support and cooperation, reiterating that the judiciary under his watch would continue to dispense justice without bias and favour.

The Chief Judge added that his aim was to create an independent judiciary by ensuring fair and re-

sponsive system of justice, with focus on excellence.

Speaking on the theme, ‘Concept of Justice in Islam’, Marufudeen Shittu and Imam Babatunde Alfa-Nla, the guest speakers, stressed the need for judicial officers to be fair and just in the dispensation of justice.

The clerics opined that Allah is the greatest judge, urging the members of the judicial arm to be fair to all parties in adjudication before giving verdicts.

Tribunal reaffirms Sanwo-Olu’s victory … It’s a re-affirmation of the people’s mandate - Lagos APC SIKIRAT SH INIOBONG IWOK

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he Election Petition Tribunal sitting in Lagos State on Monday dismissed the petitions filed by the Labour Party and reaffirmed the victory of Sanwo-Olu, candidate of the ruling All Progressives Congress (APC) as the duly-elected governor in the March poll.

The tribunal described the Labour Party (LP) petition as futile and wasteful exercise, noting that the petitioners could not prove their allegations of mental incompetence against Sanwo-Olu. Justice T.T. Asua, while delivering the judgment, said the petitioners LP and its candidate, Ifagbemi Awamaridi also failed to prove the allegations of electoral malpractices against Sanwo-Olu and his party, the APC. Meanwhile, the state chapter of the APC has

described the victory of Governor Sanwo-Olu as a re-affirmation that he got the mandate of the people in the March election.

In a message to journalists after the judgment, Abiodun Salami, assistant publicity secretary of the APC in the state, said the victory was a judicial vindication of the belief Lagosians have in the governor to move the state forward.

INNOCENT ODOH, Abuja

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he Department of State Services (DSS) has disowned fake Twitter handles, it said were created by subversive elements to spread fake news and falsehood in the country.

Public Relations Officer of the DSS, Peter Afunanya, made this known in a statement he issued on Monday in Abuja, even as he stressed that the Service his commenced investigation to have the culprits arrested.

“This to inform the public and particularly, social media users that the Department of State Services (DSS) does not own, use or operate any official twitter handles.

“The Service, therefore, disowns the ones, notably DSS 255 and DSS_NG_, currently in circulation. These twitter handles which also bear the Service’s symbols are not only fake but designed by their creators to deceive, misinform and defraud unsuspecting persons.

“It is also believed that such handles were desperately created by subversive elements to spread fake news and falsehood. The public is hereby warned to disregard them and any message(s) they may contain.

“However, a detailed investigation has already commenced to ensure that the suspect(s) is/are apprehended and prosecuted,” the statement said.

PDP will not create loophole for unqualified people to loot Kogi again – Ologbondiyan

Douye Diri

arm of government is an important institution that plays critical roles in ensuring law and order in the society. This is done through the protection of rights of the citizens, irrespective of status, political affiliation or background.

“As leader of the government, we are committed to the ideal of justice for all parties and independence of the judiciary. We will support the judicial arm to overcome challenges that may be obstacles to ef-

DSS disowns fake twitter handles

Salami said the victory was a validation of the support the people have for Sanwo-Olu and proof that the petition was all along ‘’a wild goose chase’’.

He congratulated Lagosians on the victory as it was not only victory for the governor but also for the people and good governance.

According to him, “We are happy at the victory; it

is a reaffirmation that the governor got the mandate and support of the people in the March election. ‘’We congratulate the governor and the good people of Lagos on the judicial vindication of this electoral victory. This verdict is not only a victory for democracy, it is a victory for good governance and a more prosperous Lagos.’’

...As party selects Aro as Wada’s running mate VICTORIA NNAKAIKE, Lokoja

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s the People’s Democratic Party (PDP) is leaving no stone unturned in its bid to return to Lugard House, the National Publicity Secretary, Kola Ologbondiyan has said that PDP will not create a loophole for unqualified group of people to loot the state’s treasury.

Ologbondiyan, who represented the party’s National Chairman, Uche Secondus stated this in Lokoja during PDP’s meeting when they endorsed Sammy Bamidele Aro as Musa Wada running mate, adding that when the PDP was governing the state teachers were buying cars, building houses and taking care of their needs.

He pointed out that people who sponsored violence during PDP’s primary are now judging PDP, adding that PDP members are not ‘mumus’, while urging the party faithful to stand firmly on the reconciliatory exercise going on now.

He commended the members for displaying the spirit of sportsmanship. “I want to commend the spirit of sportsmanship you are displaying.

I am very happy with the turnout. We are sure and very confident in our coming out to rescue Kogi from the hands of Bello,” he said.

He urged the party faithful to take the campaign back to their respective polling units and wards to make sure that PDP comes back to Lugard House come November 16.

Speaking also, Sammy Bamidele Aro, who was endorsed as Musa Wada running mate, promised to be a good Ambassador, adding that he will not be found wanting when he gets there.

He also promised that he would not bring disgrace to PDP family, adding that come November 16, PDP will chase Bello out of Lugard House “Bello knows me and am

not afraid of him. I want to assure you that they are just small boys; we will teach them what to do. I want to assure you that very soon we will chase them out. Winning election we need everybody.

There is nothing we can gain disagreeing with each other”.

Aro, who is also a businessman, equally called on people that benefit from spreading rumours to desist from the act, as he begged those aggrieved to drop whatever grievances they may be nursing and come together and build Kogi State.

He also called on the Independent National Electoral Commission (INEC) to do the needful and ensure that the November 16 election is credible.

On security, he assured other party faithful that they were ready for any action coming from the opposition party, saying the end has come for Bello to be chased out of office.

Speaking during the endorsement in Lokoja, the Zonal chairman, Kola Ojo said Kogi West is very proud to produce the right and most qualified running mate to the governorship candidate.

He pointed out that all the stakeholders in the state have come on board to work for the party, adding that crisis makes People’s Democratic Party stronger because whenever they are faced with crisis and it is resolved they become stronger than before.

He equally emphasised that in Kogi West they have a lot of tasks in the forthcoming election, adding that the party is working seriously hard to see that “we win this forthcoming election”.

According to him, “We are doing everything possible to make sure we win and our votes must count. Wada is working seriously for PDP. Am assuring you that everybody is seriously working to make sure victory is PDP’s portion come November 16”.”

Tuesday 24 September 2019

BUSINESS DAY

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42 BUSINESS DAY

Tuesday 24 September 2019

NEWS

UN Women, Procter & Gamble, Afrigrants hold private sector meeting on affirmative procurement BUNMI BAILEY

U L-R: Abimbola Okoya, area head, corporate affairs, British American Tobacco (BAT) West Africa; Temitope Akinsanya , human resources director, BAT West Africa; Ifeanyi Ochonogor, managing director, E-terra Technologies; Anthony Ita, business development manager, E-terra Technologies, and Kunle Ogedengbe,area head of information and digital technology, BAT West Africa, at the formal presentation of an award to BAT Nigeria by E-terra Technologies for maintaining a sustainable eco-friendly environment, at the BAT Nigeria office, in Lagos yesterday.

Pic by Pius Okeosisi

Lagosians recover N18m as refund, compensation from retailers …as LASCOPA resolves 87.1% complaints Endurance Okafor

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hrough the help of the Lagos State Consumer Protection Agency (LASCOPA), consumers in the state were able to recover a total sum of N18.89 million as a refund and compensation from retailers.

The amount was recovered for consumers who sought the support of the Agency to get redress from infringements on their rights by retailers and traders of various consumables.

According to Kemi Olugbode, the General Manager of LASCOPA, the agency receives complaints daily from aggrieved consumers seeking redress from various unfair trade practices in the State since the beginning of the year.

Data by the agency on Monday revealed that 87.1 percent of the total complaints received by the Agency from consumers had been amicably resolved.

“9.4 percent are receiving atten-

tion; 1.5 percent awaiting court judgment and two percent were dropped for lack of merit,” ASCOPA said.

Olugbode disclosed that complaints were received from various sectors of the economy including Transportation, Banking and Finance, Food and Beverages, Insurance, ECommerce, Telecommunications and Property.

Other areas were electricity distribution companies, confectioneries, manufacturing, automobiles, pharmaceuticals, chemical and agro-allied companies, among others.

With a population estimate of 24 million people, Lagos is referred to as a cosmopolitan state and the commercial nerve centre of Nigeria.

The massive influx of traders and the business activities culminate in daily occurrence of a violation of consumer rights manifesting in the sales of substandard and unwholesome goods, unsatisfactory financial transactions (ATM cases) and

delivery of poor services in some business engagements.

LASCOPA was established on the need to engender a mechanism for consumers’ protection and ensure that consumers in the state have value for their money and create sustainable confidence in them.

A law known as the Lagos State Consumer Protection Committee law, Cap L15, Laws of Lagos, 2003, was enacted and activated in the year 2008 with the inauguration of the Lagos State Consumer protection Committee (LSCPC) on the 27th February, 2008.

The performance of the free services provided by the Lagos State Consumer Protection Committee (LSCPC) gave room to the further enactment of the Lagos State Consumer Protection Agency (LASCOPA) law, cap C13 laws of Lagos State, 2014.

While urging consumers to take advantage of the Agency to seek redress whenever there was an infringement on their

Nigerians’ adoption of positive attitude to environment will reduce pressure on government finances - Expert Daniel Obi

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doption of a positive attitude to the environmental by individuals and corporate organisations in Nigeria will improve the health of the citizens and consequently reduce pressure on government finances, says Arjan Mirchandani, the chairman of Sona Group.

Throwing his weight behind environmental conservation for businesses and human continuous existence, a topic that is generating interest in the recent times, Mirchandani said environmental sustainability is a collective effort.

He spoke in Lagos recently at the opening of the 2019 packaging, plastics, food processing, labelling and print exhibition organised by Afrocet Montgomery with the theme ‘Sus-

tainability in manufacturing’.

The exhibition had about 200 brands from over 40 countries in attendance.

Stressing that environmental sustainability had become a central issue globally and Nigeria should not be left out, Mirchandani said the government had a big role to play in policymaking to achieve the course.

“When some policies and directions are made for environmental sustainability, then people will follow. It is the government that will make policies to enthrone discipline,” he said.

He noted that some state governments were doing a lot but more requires to be done.

Mirchandani whose group has recycling plants enjoined Nigerians and manufacturers to be responsible to achieve ‘green great Nigeria’.

In his presentation, William Eze of the Nigerian Export Promotion Council (NEPC) also demanded for collaboration among the government, private sector and individuals to rid the environment of plastic and other wastes towards conserving the environment.

Assessing the packaging industry, central part of the exhibition, Eze said “Packaging and branding have become central to marketing tools both in the domestic and export market”.

Stating that consumer demands had heightened the need to understand packaging, Eze said some Nigerian products destined for export had faced with poor packaging which resulted in rejection. “A recent report said 30% export to the US is rejected due to poor packaging and labelling, and not the quality of the product.”

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rights free of charge, she said complaints should be forwarded online through the Agency’s e-mail addresses, lascopa@ lagosstate.gov.ng or lascopa@ gmail.com.

Olugbode requested that all complaints should be accompanied with relevant documents attached, adding that complainants could also visit LASCOPA’s office at 2B, Soji Adegbepa Close, off Allen Avenue, Ikeja – Lagos.

Enacted in February, 2008 LASCOPA was established to uphold the rights of consumers in Lagos State and saddled with the following functions: Ensure speedy redress of consumer complaints through negotiation, mediation or conciliation; advise the State Government on consumer protection policies; ensure the replacement of hazardous products with safe products, and seek ways and means of eliminating hazardous products from the market in conjunction with the relevant Government Agencies.

nited Nations (UN) Women, Procter & Gamble and Afrigrants Resources recently organised a private sector meeting which was themed “Affirmative Procurement in Nigeria” in Lagos.

The meeting convened high-level decision makers and leaders from Nigeria’s private sector, including businessoriented platforms, and policymakers, to deliberate on the opportunities and challenges of mainstreaming affirmative procurement into Nigeria’s private sector.

“Women-owned businesses secure a mere one percent of procurement contracts, suggesting systemic gender disparities within procurement processes. Affirmative procurement seeks to respond to the gap in women’s access to procurement markets through addressing both demand-side (buyers) and supply-side (entrepreneurs) constraints,” the or-

ganisations said during the event.

This advocacy is driven by the conviction that the public and private sector at the country level can use procurement to achieve great socio-economic change for women and girls.

Globally, UN Women is leading the advocacy on promoting gender-responsive procurement to facilitate attainment of the sustainable development goals, and as a critical part of the solution for gender equality and women’s empowerment.

Thus, the meeting in Lagos deliberated on current good practices on affirmative procurement in the private sector for further study. It also examined opportunities and challenges of mainstreaming affirmative procurement into Nigeria’s private sector.

The meeting concluded with the formation of a working group on Affirmative Procurement in Nigeria to institutionalise the practice in the private sector and advocate for policies at the federal and state level.

No bridge has collapsed along JebbaMokwa-Bokani road- FG

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he Federal Ministry of Works and Housing, Monday, strongly dispelled as fake news circulating in the social media speculating that some bridges along Jebba-Mokwa-Bokani Road, especially Tatabu Bridge, collapsed and advising motorists to avoid the route.

The ministry clarified that there is no bridge collapse along the route and urged members of the public to disregard any mischievous circulation of old pictures as a recent incident.

In a press release signed by the deputy director, press, Stephen Kilebi, the ministry confirmed that all the bridges along the route are in good motorable condition pointing out that the route was very recently traversed to confirm the condition of the bridges.

Dispelling the news as unfounded, the press release noted that the Federal Controller of

Works/Engineer’s Representative in Niger State, I. F. Umeh, who along with other officers travelled on the road up to the Kwara State border, confirmed that “all the bridges are in good and passable condition”, that “there is no bridge that collapsed along the road”, and that “the Tatabu Bridge is intact and in perfect condition”.

While advising motorists to ignore any fake news of bridge collapse along the aforementioned road, the ministry stressed the need for caution, especially by those using the social platform for the dissemination of news, pointing out that the circulation of such unconfirmed and fake news concerning an important public utility such as the Jebba-Mokwa-Bokani Road could trigger off a situation that could have grave economic consequences to the nation.

Reforms to fast-track justice delivery underway in Lagos JOSHUA BASSeY

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agos governor, Babajide Sanwo-Olu has said that his administration would work with the judiciary to implement reforms that would accelerate administration of justice in the state.

This, according to SanwoOlu, was important because the judiciary played critical roles in the promotion of law and order through the protection of rights of the citizenry.

Sanwo-Olu, represented by his deputy, Obafemi Hamzat, at a special service held at the Central Mosque, Lagos Island, by the state judiciary to mark the 2019 legal year, Monday, said his administration was interest-

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ed in proffering solutions to challenges slowing efficient justice delivery in the state.

He listed one of the obstacles against justice delivery a lack of adequate courtrooms, disclosing that the government had approved the completion of the combined high and magistrate court complex in Ajah.

“The judicial arm of government is an important institution that plays critical roles in ensuring law and order in society. This is done irrespective of status, political affiliation or background.

“As leaders of the government, we are committed to the ideal of justice for all parties and independence of the judiciary. We will support the judicial arm to overcome @Businessdayng

challenges that may be obstacles to effectiveness, efficiency and speedy delivery of justice,” said Sanwo-Olu. The chief judge of Lagos, Kazeem Alogba, lauded the support of the executive arm of government, and affirmed that the judiciary under his watch would continue to dispense justice without bias and favour.

Alogba said that his aim was to create an independent judiciary by ensuring a fair and responsive system of justice, with focus on excellence.

Speaking on the theme, “Concept of Justice in Islam,” Marufudeen Shittu and Imam Babatunde Alfa-Nla, urged judicial officers to be fair and just in the dispensation of justice.

Tuesday 24 September 2019

BUSINESS DAY

news

Dangote donates $20m to African Center towards changing the African narratives TEMITAYO AYETOTO

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eeved with the negative perception of Africa by the outside world, Aliko Dangote, president of Dangote Group, on Monday donated a whopping $20 million to The Africa Center in New York, United States of America, towards reversing the trend.

Africa Center is a leading non-profit institution focused on challenging historical stereotype around the African continent and a hub for creating an intersection of African policy, business, and culture and recreating narratives about Africa’s economic and cultural significance today and into the future.

Sharing in Dangote’s vision, the Bill & Melinda Gates Foundation also announced a new $5 million grant at the Future Africa Forum. The Gates Foundation grant is directed to the Center’s capital campaign and for the development of its policy initiatives.

Other foundations, corporations, and individuals that provided leadership support for the capital campaign, including the Mo Ibrahim Family, and the New York City Department of Cultural

Affairs, were also recognised at yesterday’s event, which marked the conclusion of the second phase of construction.

In recognition of his love and unusual passion for the continent, Dangote was honoured as the main hall of The Africa Center, was named after him.

Named “The Africa Center at Aliko Dangote Hall”, speakers at the event which was part of The Future Africa Forum, praised the efforts of Dangote describing his various philanthropic interventions in Africa and beyond as very significant.

The Forum was this year’s signature policy and business dialogue event of The Africa Center in partnership with the Aliko Dangote Foundation.

Dangote, Africa’s leading entrepreneur had announced that the donation was towards the completion of the second phase of The Africa Center’s physical space, which he described as transformative, thus enabling the Center to accelerate its capital campaign, to further activate its public spaces and programming, and support ongoing operations.

On why he made the landmark donation, Dangote said the donation through the Aliko Dangote Foundation

is focused on supporting The Africa Center’s work in transforming global understanding of the continent and promoting partnership and collaboration between Africa and the rest of the world.

Said he: “the Africa Center is showcasing Africa in a contemporary, multifaceted manner as a center of innovation, growth, and limitless potential, which makes this project extremely important and worthy of support through my foundation.

“There is an opportunity to establish new narratives about Africa today, with its unrivaled mix of people, ideas, and resources, which are both its greatest strength and the basis for its tremendous, untapped promise. The connections The Africa Center will make between Africa, the United States, and the rest of the world, including members of the Diaspora, are needed more now than ever before.”

In her remark, President of the Center and a Group Executive Director of Dangote Industries, Halima Aliko Dangote, who is also leading the Center’s successful capital campaign, described The Africa Center as an important gateway to understanding contemporary and future Africa and Africans.

IMF: World Bank CEO Georgieva’s next call ENDURANCE OKAFOR

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ithout any upset, in the coming weeks, Kristalina Georgieva will be selected by the board of the International Monetary Fund (IMF) as the 12th managing director.

The current Chief Executive Officer (CEO) of the World Bank was championed for the position by Emmanuel Macron, the French president; with support from the rest of the European Union, as well as an unspoken backing form the US, with no rivals in sight.

Georgieva will be replacing Christine Lagarde, the former MD of the world’s lender of last resort, who resigned from the post to lead the European Central bank (ECB).

Due to her nomination as President of the ECB, Lagarde resigned from the IMF with effect from September 12, 2019, the first female MD of the IMF. Her second five-year term as head of the IMF was not due to end until July 2021.

Checks by BusinessDay revealed that the position of the MD of IMF has always been held by a European, while the head of the IMF’s sister organisation, the World Bank, has always been an American since the institutions were created at the end of World War Two. As CEO of the World Bank, which comprises of the International Bank for Reconstruction and Development and the International Development Association, Georgieva has built support across the international community to mobilize resources for poor and middle-income countries

and to create better opportunities for the world’s most vulnerable people.

With a PhD thesis in environmental policy and economic growth in the US, Georgieva could be on a hot seat when crowned the IMF boss: a global economic slowdown, fuelled by trade tension coupled with the pocket distress in an emerging market like Argentina, which was given a $57billion bailout by the IMF. But like Lagarde, Georgieva is referred to as a woman with astute political instincts and has capacity to craft consensus among different constituencies.

“She doesn’t shy away from conflict but doesn’t seek it for its own sake,” Margrethe Vestager, the EU’s competition commissioner who worked with her at the European Commission said in s statement. Adding that “people liked her because she would say how she saw things in a specific concrete manner.”

Georgieva studied political economy and sociology at the Karl Marx Higher Institute of Economics, graduating in 1976. Her academic breakthrough led her to the London School of Economics (LSE) and then the Massachusetts Institute of Technology in Boston, her springboard to the World Bank.

“She is a team builder and a good communicator, not the kind of technocratic profile sometimes associated with the IMF,” Jose Barroso nonexecutive chairman at Goldman Sachs International said in a statement.

She served as Acting President of the World Bank Group

from 1 February 2019 to 8 April 2019. She previously served as Vice-President of the European Commission under Jean-Claude Juncker from 2014 to 2016.

From 1993 to 2010, the Bulgarian economist served in a number of positions in the World Bank Group, eventually rising to become its vice president and corporate secretary in March 2008.

She has also served as a member of the board of trustees and associated professor in the Economics Department of the University of National and World Economy in Bulgaria.

On 27 September 2016, the Bulgarian government nominated Georgieva for the post of United Nations Secretary-General. Her short run Secretary-General at the UN ended following a vote at the UN Security Council on 5 October, where Georgieva ranked number eight out of ten candidates. In the same vote, António Guterres got the support of the Security Council for the post of UN SecretaryGeneral. On 28 October, the World Bank announced that Georgieva would become the first CEO of the bank starting on 2 January 2017.

Businessday checks revealed that some of her achievements as the CEO of the World Bank include her negotiation for $13 billion capital increase for the institution, with a hard-fought agreement of Donald Trump’s White House. She has cemented a commitment to multilateralism at the bank, focusing on climate change, gender disparity and helping fragile states.

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BUSINESS DAY

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BUSINESS DAY

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Tuesday 24 September 2019

BUSINESS DAY

FINANCIAL TIMES

World Business Newspaper HENRY FOY IN MOSCOW

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ussian president Vladimir Putin has criticised his government for “red tape” that is imperilling investment projects — a tacit acknowledgment of rising public discontent over low state spending.

While Russia’s economy has stalled and household incomes are under pressure, high oil prices and fiscal belt-tightening has helped Moscow to rack up budget surpluses and amass a rainy day wealth fund worth almost 8 per cent of gross domestic product.

However, spending on “national projects”, a $390bn initiative promised by Mr Putin last year as the cure to Russia’s economic ills, has been well below planned levels, while the country’s government and its central bank have argued over how to invest unspent cash.

In a meeting with prime minister Dmitry Medvedev on Monday, Mr Putin requested that the government “focus not only on financing as such — I hope that all this will be implemented — but on the red tape of decision-making with a view to ensuring the rhythm of funding”, according to a transcript released by the Kremlin.

The comments suggest Mr Putin is seeking to pin blame for the economic woes and parsimonious approach on Mr Medvedev, who as head of government is supposed to oversee domestic issues such as the economy with the help of his ministers, but in effect takes his orders from the president.

“Even this year, unfortunately,

Vladimir Putin urges cuts to red tape to unlock spending

Russian president lambasts government for slow progress on investment projects

Vladimir Putin meets Russia’s prime minister Dmitry Medvedev in Moscow on Monday © VIA REUTERS

[spending] does not work out the way we originally planned,” Mr Putin continued. “I am absolutely sure that if we want to carry out these national projects on which we have been working together for so long, then we need to change many things in terms of ensuring the rhythm and

timeliness of financing.”

Mr Medvedev replied: “We will deal with just this kind of bureaucracy.”

Russia’s budget surplus in the first eight months of 2019 totalled Rbs2.56tn ($40bn), and is on track to be roughly double the planned

amount for the entire year. At the same time, spending on the national projects — which cover areas such as building new motorways, investing in schools and digitising government — is running at less than 50 per cent of planned annual levels.

“The first available data on the

national projects suggests that they are getting off to a relatively slow start,” Ivan Tchakarov, an analyst at Citi in Moscow, wrote last week. “The central bank has claimed that the budget underspending, including on national projects, has been a key reason for the softer GDP growth.”

The economy is expected to grow about 1 per cent in 2019, held back by the impact of international sanctions, levied after Moscow’s 2014 annexation of Crimea, and tightened government spending.

Reflecting sluggish growth, real disposable incomes for Russians have fallen for five of the past six years, fuelling public anger at Mr Putin’s regime and prompting a surge in household borrowing.

But the Kremlin has been loath to open the spending taps too much because of fears over possible further western sanctions or the threat of a global recession. The central bank has also clashed with finance ministry officials by saying keeping a lid on inflation is more important than fiscal stimulus.

Mr Medvedev said on Monday that the 2020 budget would double spending on healthcare to Rbs320bn, increase education spending by 20 per cent and more than double funding for environmental programmes.

China government assigns officials Iran set to release British tanker to companies including Alibaba Seizure of Stena Impero sparked crisis over energy security in Gulf Move is latest sign of tighter links between state and private NAJMEH BOZORGMEHR IN TEHRAN

sector

LOUISE LUCAS IN HONG KONG

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he government of the Chinese tech hub of Hangzhou is assigning officials to 100 local companies including tech group Alibaba, in the latest example of a tightening of the ties between the state and private sector.

The move, described as a local initiative, highlights one of the many flashpoints in China’s tense relationship with the US. Washington’s angst at the blurred lines between the state and its tech companies has already prompted Beijing to downplay its “Made in China 2025” industrial policy blueprint, which sets out sectors in which it wants domestic companies to dominate at home.

Companies including Alibaba already have communist cells embedded in their operations and top executives spend much of their time dealing with government officials on policy and other issues.

Other big enterprises corralled into the initiative include automaker Geely. Soft drinks group Wahaha was also part of the group, according to Chinese state media.

Hangzhou, about 175km or an hour’s train ride from Shanghai, said

the “innovative” move was part of its “New Manufacturing Industry Plan”.

Government representatives would service the important companies and help facilitate co-operation and communication with the government, state media Zhejiang Online reported.

Alibaba said move would function as “a bridge” between the government and private sector.

“We understand this initiative from the Hangzhou City Government aims to foster a better business environment in support of Hangzhou-based enterprises,” a spokesman said.

“The government representative will function as a bridge to the private sector, and will not interfere with the company’s operations.”

Beijing has a complicated relationship with the private enterprises that it has nurtured with limited foreign competition and red tape, and often regards high-profile entrepreneurs who might present a challenge to its hold on society with suspicion.

As part of a recent crackdown on a group of private companies last year, the chairman of insurance group Anbang, Wu Xiaohui, was sentenced to 18 years in jail for fraud. www.businessday.ng

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ran has said it is set to release the British-flagged tanker whose seizure by the Islamic republic more than two months ago sparked a crisis over energy security in the Strait of Hormuz, a vital sea route for oil.

An Iranian government spokesman said it “can leave and decisions [made by the judiciary] suggest the seizure has ended”.

The announcement comes at a time of heightened tensions in the Gulf in the wake of drone attacks on Saudi Arabia’s biggest oil facility that forced Riyadh to suspend more than half its daily production.

Iranian president Hassan Rouhani is this week expected to address the UN General Assembly in New York. Speaking in New York, Iran’s foreign minister Mohammad Javad Zarif said US president Donald Trump had “closed the door” to any negotiations with Tehran with his decision on Friday to toughen sanctions on the Ira-

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nian central bank.

Tensions have escalated since the US abandoned the Iranian nuclear deal last year and reinstated sanctions on oil exports from the Islamic republic. While the US is seen as reluctant to get involved in a military confrontation, Iran has rejected calls from the White House for negotiations as long as sanctions are in place.

Iran has denied any involvement in the drone attack though US, UK and Saudi officials have voiced suspicions that Tehran was behind it. Yemen’s Houthi rebels, backed by Iran, claimed responsibility. Iran also shot down one unmanned US drone in June and is accused of organising attacks on at least six oil tankers off UAE coasts in May and June.

“Iran has remarkably changed the rules of the game in its favour [in recent months].

Now, everyone wonders what is the next thing Iran is going to do,” said a senior western diplomat in Tehran. “While the US is trying to negotiate with Iran, the Islamic republic is playing hard to get and speaks from a

@Businessdayng

strong position.”

Mr Rouhani said on Monday that the damage to Saudi oil facilities had been exaggerated by the US deliberately to expand its presence in the region. “The damages that can be repaired in two weeks, they say could take longer than one month,” Mr Rouhani said before leaving Tehran. “It is clear the US seeks other goals in this region.”

The Stena Impero was at the centre of a stand-off between the UK and Iran after the Islamic Revolutionary Guard Corps seized it in mid-July in apparent retaliation for British Royal Marine commandos’ impounding of an Iranian supertanker, the Grace 1, off Gibraltar two weeks earlier.

The UK detained the Grace 1 — since renamed Adrian Darya 1 — because it was suspected to be shipping Iranian crude to Syria in violation of EU sanctions. Gibraltar has since released the Iranian ship, whose fate is unknown. Iran said it had seized the Stena Impero because it had failed to observe international maritime rules and regulations.

Tuesday 24 September 2019

FT

BUSINESS DAY

47

NATIONAL NEWS

African medics seek ‘brain drain’ cure to tackle shortages More effort is needed to prevent the outflow of local clinical talent ANDREW JACK

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alawi has a population of over 18m. Some 40 per cent of its adults have mobile phones.

But this apparent mark of modernity belies profound problems of health and poverty. About 9 per cent of adults are infected with HIV. Yet the country has fewer than 300 doctors, putting it at the bottom of global rankings.

The precise figures, from the latest World Health Organization global health report, may fluctuate, but there is little doubt about the amplitude of the problem: the country has extremely scant, unevenly spread healthcare coverage.

Few train locally and many of those who become doctors emigrate or abandon their profession.

The story of its poor provision is emblematic of a far wider concern across Africa, as debate grows about the needs and difficulties of providing universal health coverage. The country’s more recent encouraging experience highlights efforts taken to tackle the problem: a lack of medical training.

“It’s been tough financially, but I felt that I owed the college for what it had spent on me,” says Mwapasa Mipando, the first Malawian trained in human physiology, who went on to study and work in England and South Africa but has since returned to run the College of Medicine in Blantyre. “When you see the impact, going into the districts to find people you have trained, it’s very fulfilling.”

Cultural and historical factors help explain slow progress in Malawi. Hastings Banda, the country’s former president who maintained a repressive one-party regime for nearly 30 years after independence in 1964, was a symbol of the ambivalence: he trained, settled and practised for many years as a doctor in the UK. “He refused to start a medical school in Malawi when he came back,” says Dr Mipando, whose college was only created in 1991, almost three decades after Banda came to power. “He didn’t want half-baked training. He wanted doctors who could meet the standards in the UK. But it’s chicken and egg: if you produce doctors for the UK, they can easily stay there to work.”

Economic factors also played a large role in pushing students abroad. In the latter part of the 20th century, medical infrastructure was undermined as former colonial powers withdrew across much of Africa.

Insecurity and economic instability locally combined with austerity measures encouraged by international financial institutions.

While squeezed budgets and scant investment restricted local training and development, many promising students interested in medicine headed abroad to study instead. Better educational facilities, pay and prospects lured them to Europe, North America and Australia.

Then, the development of personal ties once they had settled down

made it difficult for many to return.

At the same time, there has been a growing “pull” from the UK and other richer nations for doctors and nurses from Africa, as their own health systems have struggled to train and retain sufficient local healthcare workers while demand from ageing populations continues to rise.

“There’s a huge drain of resources from the continent. The disease and social challenges outweigh what they can provide in Africa,” says Dorcas Gwata, who left her native Zimbabwe as a teenager to help her sister in Edinburgh in Scotland, before training as a nurse and then in public health in London. “We need to stop recruiting from low income countries. We are taking from Africa their greatest assets.”

She now works with organisations including the Tropical Health and Education Trust, which promotes “reverse innovation” that encourages professionals from the UK’s National Health Service to take up placements in Africa.

While leaders often speak out about the importance of healthcare, she says, few have met their pledges in the African Union’s the Abuja declaration in 2001 to invest 15 per cent of their budgets in health. By contrast, they and many others in the continent’s elite “spend an unimaginable amount accessing treatment abroad for themselves.

That sets a precedent”.

While much of the medical “brain drain” has been into richer countries, there are other important regional and internal flows. South Africa draws off medical students and recruits from its poorer neighbours. In Malawi itself, private healthcare centres and non-governmental organisations lure staff from the public sector into higher paid and often administrative roles.

Africa needs an estimated additional 6m healthcare workers to reach the aim of universal coverage by 2030. As its population rises, the pressures will only grow.

“You will need a lot more midwives to deliver babies in rural areas,” says Patrick Dunne, chair of Education Sub Saharan Africa (Essa), a charity supporting tertiary education on the continent and modelling future faculty needs.

“What will happen otherwise to infant and maternal mortality?”

Tackling the problem depends in part on securing more public funding for medical education and paying for staff in the sector.

Yet frequent strikes among health workers in poorer countries highlight frustrations over low salaries, delayed payments and overwork, as well as scant prospects of promotion. “We have to look at the package on offer. The problem will only be overcome by greater education linked to employment,” says James Campbell, director, health workforce, at the World Health Organization. He cautions that private medical training institutes are pushing students to seek employment outside the public sector, doing little to help meet greatest local need. www.businessday.ng

Dark clouds: A scene from the HBO series ‘Chernobyl’ © HBO

HBO’s Emmy glory masks mounting pressure on AT&T

Activist Elliott at odds with TV network’s owner over size, strategy and succession ANNA NICOLAOU IN NEW YORK AND JAMES FONTANELLA-KHAN IN LONDON

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BO dominated Sunday night’s Emmy awards, scoring the most wins of any network or platform thanks to hits such as Game of Thrones and Chernobyl. But despite its moment of triumph, the future of television’s creative powerhouse is clouded with uncertainty.

Paul Singer’s Elliott Management, the aggressive activist investor known for its decade-long campaign against the Argentine government, has set its sights on HBO’s owner AT&T. Elliott wants the phone company to divest some of its assets and everything is potentially up for sale, according to people familiar with the matter — including HBO. Elliott argues that AT&T is bloated after making too many pricey

acquisitions in the past decade.

AT&T is “an outlier in terms of its M&A strategy: most companies today no longer seek to assemble conglomerates”, it says.

The hedge fund questions AT&T’s strategy for WarnerMedia, of which HBO is the crown jewel. After buying Time Warner for $80bn, AT&T wants to make use of its newly acquired Hollywood empire with a streaming service, HBO Max, to rival Netflix.

However, Elliott is sceptical about whether pushing into streaming is the right strategy, according to people familiar with the matter. HBO already has a streaming service that costs $15 a month — significantly higher than the prices of Apple, Disney and Netflix.

There is also a question of how HBO, which has made a name for itself as a producer of selective, high-quality series such as Chernobyl, Succession and Game of Thrones can be packaged into a

Netflix-style service as streamers flood the market with new shows.

Shortly after he was installed as WarnerMedia chief executive last summer, John Stankey warned HBO employees that the network needed to create more content. On HBO Max, HBO’s catalogue will be available alongside more lowbrow fare such as a Gossip Girl reprise and The Big Bang Theory.

WarnerMedia is planning an investor presentation on October 29, when it will lay out its streaming plans. Elliott executives are waiting for this before they decide whether HBO Max should be killed off, according to people familiar with the situation.

“The next few months could be pivotal for AT&T,” said Morgan Stanley.

Another looming point of contention is over who will replace AT&T chief executive Randall Stephenson, who is expected to retire as soon as next year.

Eurozone economy stalls as data trigger fears of recession Executives say order books ‘paralysed’ by trade war and woes in car industry MARTIN ARNOLD IN FRANKFURT AND PHILIP GEORGIADIS IN LONDON

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he eurozone economy is close to stalling, dragged down by a steep drop in German manufacturing activity, according to a key survey of business executives that hit European markets and prompted predictions of imminent recession.

The purchasing managers’ index for the eurozone fell to a sixyear low of 50.4 in September, below forecasts and down from 51.9 in August. The figures, produced by IHS Markit, offer a closely watched snapshot into private sector activity. A reading below 50 signifies economic contraction.

The euro fell 0.4 per cent against the US dollar and European stock

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markets fell after the data were released on Monday. The panEuropean Stoxx 600 index was down almost 1 per cent, while Germany’s blue-chip Dax index fell 1.5 per cent.

“Today’s figures confirm one thing in any case: there will be no noticeable improvement in the economy this year,” said Ralph Solveen, economist at Commerzbank. “On the contrary, the risk of a recession is increasing.”

The European Central Bank cited slowing economic growth in the eurozone as one of the reasons for cutting interest rates further into negative territory and restarting its programme of bond-buying this month. But most economists are sceptical that the ECB’s loosening policy will do much to restore growth.

“The ECB is right to keep an ac@Businessdayng

commodating policy stance, but its recent package will not make much difference and certainly won’t help the German car sector whatsoever,” said Dirk Schumacher, head of European macro research at Natixis.

The downturn in Germany’s critical manufacturing sector has deepened dramatically in September, dragging its wider economic activity to the lowest level since the depths of the eurozone crisis, according to a key survey of business executives.

The PMI for German manufacturing fell to 41.4 in September, from 43.5 the previous month, slumping to its lowest level since mid-2009. The figures underline how trade tensions, problems in the car industry, and Brexit uncertainties are weighing on the eurozone’s biggest economy.

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BUSINESS DAY Tuesday 24 September 2019 www.businessday.ng

Toyin Sanni: Changing the narrative in Nigeria’s investment space

MICHAEL ANI

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he task of marketing Nigeria, Africa’s most populous nation, to the investing public— foreign investors in particular—appears to be seemingly difficult as the country on several occasion attract global attention for all the wrong reasons.

On a daily basis, the news about insecurity in many parts of the country; several fraud cases and the government falling to play its part in fulfilling obligations in contracts, make headlines in dallies thereby fuelling the sour perception in which investors have about the Nigerian economy.

These shortcomings have made investors either shrugs off decisions to invest in Nigeria by stashing cash into other smaller African markets or ask for a higher risk premium before they can pump in dollars into Nigerian assets.

Direct investments into the country have also slowed down on government’s ability to take necessary reforms in various sectors of the economy. These have made the government cashstrapped and nearly incapable of carrying out its fiscal obligation To think of it that these was happening at a time in which the country is in dire need of investments to boost liquidity, create jobs and lift the over 90 million of its people leaving in poverty, based on data tracked from the World’s poverty clock.

Notwithstanding the above challenges and inspight the odds standing in the way of building investors’ confidence, many have taken it upon themselves to set the country on a positive light for investment.

One of such notable fellow is Oluwatoyin Sanni, chief executive officer of the Emerging Africa Capital Group, a company that provides innovative and investing solutions to African investors and issuers.

Sanni is a titan and among the very few persons who believe Nigeria is a great nation and must take the fore front ahead of other African nations in the scheme of things.

Oluwatoyin Sanni overtime, devoted her time, experience and network to focus on facilitating investments in Africa, nay Nigeria.

Whether it is via expressing her positive thoughts in writing about investing in Nigeria or displaying emulating attitudes by speaking and educating investors in conferences, workshop or symposium, Sanni is known for her drive in seeing that Nigeria attracts the needed investments that would spur inclusive growth.

Toyin Sanni

These have earned her several awards and recognition both domestically and internationally, making her one of the leading voices in the Nigerian investment landscape.

Sanni’s long road to stardom Prior to joining Emerging Africa Capital Group (EAC) as the CEO, Sanni held the position of Group Chief Executive Officer (GCEO) of United Capital PLC for four years. She also served as Managing Director and Chief Executive Officer (CEO) of United Capital Trustees limited which is a subsidiary of United Capital Plc. During her reign as CEO of United Capital, Sanni was reckoned with a stellar record of achievements and attainments; which includes her developmental work in the areas of women in finance, standardisation of ethics and practice ethos for the corporate and individual investor space, corporate financing, empowerment initiatives and opportunities for the youth, and development of products and services to benefit a changing market space During her tenure, she played leading roles in landmark deals such as the multi-trillion naira Asset Management Corporation of Nigeria (AMCON)bond

Issues, the Lagos State Bond Programme, the Lafarge WAPCO, UPDC and Flour Mills Debt Issues amongst many others. In 2007, she led the establishment of UBA Global Investor services the Custody arm of the UBA Group, which rapidly became a leading Nigerian Custodian and secured the mandates of major Global

”

During her reign as CEO of United Capital, Sanni was reckoned with a stellar record of achievements and attainments; which includes her developmental work in the areas of women in finance

Custodians amongst others.

These series of engagements has led to United Capital Plc becoming one of the best overall companies on the Nigerian stock exchange (NSE) in the last four years.

In 2017, Sanni was named the All African Business Woman of the Year 2017 by CNBC Africa; and Nigeria’s CEO of the Year by Pearl Awards becoming the first female CEO to win the Award in its 22-year history. She also led her company to win the best corporate governance, highest dividend yield and sectoral award categories, clinching the Best Overall Company Award. Toyin also won the BusinessDay Top 25 CEO on the NSE Award in 2014, 2015 and 2016, amongst many other awards.

Toyin Sanni’s literally works As earlier noted, Toyin Sanni is a renowned writer, popularly known for her works on investing and on women empowerment.

Her most recent book on investment that has gotten the widespread attention from the investing public was titled “Riding the Eagle – A Guide to Investing in Nigeria”.

The book which was aimed at serving as a guide for both local and international investors seeking to exploit the unique opportunities in the Nigerian economy, learn from the success stories of leading investors in Nigeria, as well as how to navigate the potential pitfalls and risks, has sold millions of copies and counting.

For Sanni, investment flows into a country today are to a modern economy, as impactful and life-giving as blood is in the veins of a human body and for a developing or ailing economy, as vital and life-saving as a blood transfusion for an anaemic or haemorrhaging patient.

She noted in the book that one of the hallmarks and greatest effects of globalization is the increased mobility of funds across national and regional barriers. These include both Foreign Portfolio Investments (FPIs), at the extreme end of which you have what is derogatorily referred to as “hot money” and the more “sticky” flows involved in Foreign Direct Investments (FDIs).

This book sought to make a contribution to the imperative of making Nigeria a sustainable and preferred destination for FDI flows by providing detailed yet concise information on the Nigerian market via a roadmap or guide for foreign, domestic, institutional and individual investors alike. It also examines the challenges currently faced by the Nigerian economy across sectors and by its investment markets, proffering solutions to some of

the nation’s economic and development challenges.

Other works written by her include ‘Yes, You Too can’ maximize Your Life; and ‘Get to the Top’. Both works are inspirational books aimed at empowering the next generation of women leaders.

Background Toyin has over twenty-five years cognate experience in investor services, law and finance; having served for eight years as CEO of Cornerstone Trustees (CTL), a council member of the Institute of Chartered Secretaries and Administrators Nigeria (ICSAN), a Fellow and VicePresident of the Association of Pension Funds of Nigeria (APFN), and President of the Association of Corporate Trustees Nigeria (CTN) and The Association of Investment Advisers and Portfolio Managers (IAPM).

She took her law degrees from the Obafemi Awolowo University and the University of Lagos; and has attended courses at the IESE as well as at Harvard and the Lagos Business School.

She is a prominent Investment Banker, Public Personality & Speaker who derives satisfaction from grooming future leaders and from proffering capital solutions for financing & investment challenges of African governments, businesses & individuals.

From a background in securities law and extensive experience in corporate finance, trusts & asset management, she leverages networks and relationships across markets and her extensive experience working on leading transactions to achieve her goals.

Toyin sits on multiple boards including Transnational Corporation of Nigeria PLC (Transcorp); and is currently the president of the Association of Corporate and Individual Investment Advisers (CIIA), the official trade group recognized by the Securities and Exchange Commission for all registered investment advisers in Nigeria. She also chairs the Financial Literacy Technical committee under the Securities and Exchange Commission and is the Founder/Chairperson of Women in Finance ng (WIFng), a non-profit organisation aimed at women advocacy and development. She is also the past president of the Association of Investment Advisers and Portfolio Managers of Nigeria (IAPM).

She is a frequent Speaker at conferences such as the Howard University USA & Imperial College, UK African Business Conferences, the Global Custody Forum, Network Managers Conference, World Intellectual Property Organisation African Ministerial Conference amongst others.

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