Businessday 26 apr 2018

businessday market monitor Commodities

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4.99pc

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NEWS YOU CAN TRUST I **THURSDAY 26 APRIL 2018 I VOL. 15, NO 41 I N300

SELL

$-N 360.00 363.00 £-N 498.00 508.00 €-N 436.00 446.00

@

FMDQ Close FOREIGN EXCHANGE Market

Spot $/N

I&E FX Window 360.51 CBN Official Rate 305.65

FGN BONDS

TREASURY BILLS 3M

6M

5 Years

10 Years

20 Years

0.15 10.31

-0.04 11.40

0.23% 12.80%

-0.12% 12.87%

0.00% 12.90%

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BusinessDay capital market, investors forum holds today

As Benue burns, Buhari focuses on re-election, Ortom vacations in China

…to honour top 25 CEOs

... Lawmakers condemn, summon President

IHEANYI NWACHUKWU

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he 2018 edition of BusinessDay annual Capital Market and Investors Forum holds today at the prestigious Intercontinental Hotel, Lagos.

Today’s capital market and investors forum is another important gathering of personalities in the nation’s capital market who will be discussing how to catalyse listings in the nation’s Continues on page 34

NRC dilapidated rail infrastructure, negligence endanger lives in Lagos ... may have caused many deaths already MIKE OCHONMA & AMAKA ANAGOR-EWUZIE

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ysfunctional crossbars at several rail intersections across the country is putting at risk the lives of Nigerians. The country’s troubled railway system is struggling to maintain relevance amid poor funding and consequently low patronage. However, governContinues on page 34

Inside FBN Holdings net income up 178%, gross earnings hit N595.4bn in FY 2017 P. 4

CHRIS AKOR & INIOBONG IWOK

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L-R: Roosevelt Ogbonna, group deputy managing director; Herbert Wigwe, GMD/CEO; Mosun Belo-Olusoga, chairman, and Sunday Ekwochi, company secretary, all of Access Bank plc, during the 29th annual general meeting of the bank in Lagos, yesterday.

Pic by Olawale Amoo

n a classic case of fiddling while Rome burns, President Buhari was busy hosting APC governors to strategise on how to neutralise opposition within the party to see him clinch the party ticket for the 2019 election, governor Samuel Ortom was vacationing in China while the Senate was busy with the Dino Continues on page 34

Bond investors can’t figure out yield direction as rally heats up Yields hit 3-year lows on reduced FG issuance

LOLADE AKINMURELE

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ome holders of Nigerian government bonds are torn between selling now and making good profit or holding out in the coming months and making an even juicier return.

Nigerian bonds are currently trading at a premium to par, as a supply cut back by the government has sent yields to a near three-year low.

The question however is if there is still some room for yields to fall.

“Everyone (bond holders) is

looking for triggers to sell, but are having a hard time guessing whether rates have bottomed or if there is still some way to go,” an institutional bondholder who craved anonymity told BusinessDay. “It is difficult to find news that will trigger a sell-off these days,” the person added, pointing to declining inflation and waning bond supply by the government.

The right bet on the direction of yields would return bumper gains for bond holders, largely Pension Funds Administratorsas they hold the single largest share of federal government

bonds at 55.7 percent of their total assets. That comes to N4.1 trillion.

A BusinessDay survey on five fixed income analysts suggests that yields will tumble further.

“There is still room for a 50 basis points moderation in yields between now and the third quarter,” said Abiola Rasaq, head of investor relations at tier-one lender, United Bank for Africa.

He points to declining inflation, stable exchange rate and reduced government borrowing in the domestic market as factors that support his outlook for further yield moderation in the

coming months.

“However, as presidential elections in 2019 draw close, the risks to that outlook include an unlikely rate hike by monetary authorities to manage the inflationary pressures of electioneering and tame portfolio outflows associated with an election year,” Rasaq said from Lagos.

Average bond yields are currently near three-year lows of 12.85 percent, levels last seen in April 2016 when the monetary policy rate was at 12 percent.

The yield on the benchmark 10-year bond maturing in NoContinues on page 4

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FBN Holdings net income up 178%, gross earnings hit N595.4bn in FY 2017 ENDURANCE OKAFOR

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BN Holdings, Nigeria’s second largest bank by assets has announced profit before tax of N56.8 billion for full year 2017, up 147.6 percent from N22.9 billion reported in 2016.

Net income was also up 178.8 percent to N47.8 billion in 2017, from N17.1 billion in 2016.

Gross earnings of N595.4 billion for the financial year ended December 31, 2017 was driven by a 15.9 percent year-on-year (YOY) growth in interest income on the back of enhanced yields and volume growth in investment securities.

The 2017 gross earnings represented a growth of 2.3 percent, compared to N581.8 billion reported in 2016, as compiled from the FBN Holdings audited result released April, 25 2018.

“As evident by the continually improving set of results, the initiatives we have put in place are producing encouraging results ahead of our projections. It is noteworthy to highlight that this progress has not been detrimental to our commitment to cost containment, illustrated by the 7.7 percent YOY increase in OPEX which is significantly below the headline inflation rate of 15.4 percent,” UK Eke, FBNH Group Managing Director said.

The recorded net-interest income increased by 8.9percent to N331.5 billion as against N304.4 billion in 2016, driven by a 15.9 percent increase in interest income to N469.6 billion in 2017 compared to N405.3 billion recorded the previous year.

This was partly offset by a 31.5

percent decline in non-interest income.

Interest income and non-interest income contributed 78.9 percent and 19.0 percent respectively to gross earnings.

“Notwithstanding, we have continued to optimize the balance sheet to ensure our margins are protected despite the increase in interest rates and the constrained lending environment. In view of this, the blended yield on interest earning assets improved to 11.9percent (Dec 2016: 11.7 percent) but overshadowed by the cost of funds resulting in a marginal decline in net-interest margin to 8.4 percent (Dec 2016: 8.8 percent),” the bank said in a statement.

The company also proposed payment of 25 kobo per share cash dividend to shareholders of the company.

The amount for the year ended December 31, 2017 is 5 kobo higher than what was paid in 2016 financial year end of 20 kobo per share.

“This result was also made possible by the successful implementation of our digitisation initiatives, that have allowed us to serve our customers in a more efficient and effective way. It is re-assuring that our dominance in the electronic platform has positioned the Group for a prosperous future and our holding company model is yielding further synergies and increasing cross-selling amongst all the operating companies in the Group,” Eke added.

The bank has continued to strengthen its credit culture and governance, moderated its risk appetite, and redefined target market and consequence management to

Bond investors can’t figure out yield...

Continued from page 1

vember 2018 cooled 200 basis points to 13 percent and was priced at 111 at the secondary market on Tuesday, April 25, according to FMDQ data.

When a bond is priced above 100, it is said to be trading at a premium, helping bond holders, who bought when yields were as high as 18 percent, to book bumper gains if they sell in the secondary market.

The rally in bond prices has been triggered partly by falling inflation.

Annual inflation fell to 13.34 percent in the month of March, the 14th straight month of decline since peaking at an 11-year high of 18 percent in 2016.

It was the first time since 2015 that inflation rate fell below the benchmark lending rate of (14 percent).

Asides declining inflation, another factor that has given rise to bond bulls are indications that the Federal government is bent on reducing domestic borrowing to manage ballooning debt servicing costs.

The second quarter bond issuance calendar shows the government is looking to raise about N270 billion in 5, 7 and 10-yr bonds, much less than was raised last year.

“That’s half the amount raised in the same period of last year and would leave investors with excess

cash, mounting further pressure on yields,” said Wale Okunrinboye, a fixed income analyst.

“There is still room for yields to decline to as low as 11 percent,” Okunrinboye added.

The Bond market has remained significantly bullish with yields compressing by another 20bps, consequently capping a c.70bps decline in yields for the third consecutive session since the last OMO auction, last Thursday by the CBN. “If interest rates continue to contract and the government sustains its policy of reflating the economy by cutting back on domestic debt, yields will moderate further,” said Johnson Chukwu, CEO of Lagos-based financial advisory firm, Cowry Assets.

Bond traders have had a hard time guessing if improving inflationary conditions, a somewhat stable naira exchange rate and the government’s reduced appetite for domestic borrowing are enough to drive yields downwards this year.

Decelerating inflation and exchange rate stability make a compelling case for the CBN to reduce OMO auctions- which the apex bank frequently used to defend the naira exchange rate and tame rising inflation in thick of an economic crisis in 2016.

The OMO auctions ensured there was not too much naira chasing scarce dollars at a time when

ensure a robust risk management structure.

As it continues to sustain remediation initiatives, it expects a gradual reduction in Non-Performing Loans (NPL) with a target of a single digit NPL in 2019, in line with its strategic plan. The bank further expects loan growth in the current year with manufacturing, agriculture, trade and retail being the sectors of focus.

The bank reported 1 trillion transactions processed on the *894# Unstructured Supplementary Service Data (USSD) banking channel making it the fastest growing USSD product in the industry.

Also, with over 2 million subscribers, FirstBank’s mobile platform ‘FirstMobile’ achieved the fastest growing mobile banking penetration across Africa, be-

coming the highest transacting bank on the Interswitch payment platform. As such FirstBank ATMs now account for 37 percent of bills payments on ATM platforms in Nigeria.

FBN Holdings traded at N12.20 per share as at market close Wednesday April 25, 2018 and it has a market capitalization of N437.923 billion , as compiled from Bloomberg data.

L-R: Aigboje Aig-Imoukuede, former president, Nigerian Stock Exchange (NSE); Subomi Balogun, founder, FCMB/special guest; Abimbola Ogunbanjo, president, NSE; Oluwaseyi Abe, president, Chartered Institute of Stock Brokers, and Oscar Onyema, CEO, NSE, at the official commissioning of Chartered Institute of Stockbrokers’ House, Ikoyi, Lagos, yesterday.

low oil prices and production as well as a slide in foreign investment had taken its toll on dollar liquidity and forced a near 40 percent naira devaluation.

Petrodollars are flowing again with the rise in global oil prices and domestic production as well as improved foreign investments which have been lifted in no small way by the creation of a marketdetermined foreign exchange window (called Nafex) in April 2017, yet the CBN has another reason to

continue its OMO auctions.

That reason is the need to create a floor for interest rates to ensure they do not become too low and less attractive for portfolio investors.

Portfolio inflows accounted for 60 percent of total dollar flows in 2017, indicating its significance to the economy.

Propelled by a 304 percent surge in portfolio inflows to $7.3 billion compared to the previous year ($1.8 billion), total capital imported into Nigeria more than doubled to

a 3-year high of $12.2 billion last year from $5.1 billion in 2016, according to data from the National Bureau of Statistics.

“The CBN is very mindful of foreign portfolio inflows and if they halt OMO issuances today rates could collapse to single digits and that may trigger some outflows,” a bond trader told BusinessDay. But this could also lead to instability in the exchange rate, a situation that the CBN would want to avoid.

Reps task CBN, NDIC on regulation of cryptocurrency KEHINDE AKINTOLA, Abuja

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embers of the House of Representatives o n We d n e s d ay called on Central Bank of Nigeria (CBN( and Nigerian Deposit Insurance Commission (NDIC) to put in place a legal framework for the regulation of the blockchain technology .

The resolution was passed sequel to the adoption of a motion titled: “Need to regulate blockchain applications and Internet technology” sponsored by Solomon Adaelu, who underscored the novelty of the blockchain technology and its capability to facilitate payments for financial services industry.

“Blockchain as a digital and

decentralization ledger technology that records all transactions without the need for financial intermediary bank is new to humanity and can be a core payment facilitator for financial services industry.

“A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way,” the lawmaker noted.

According to him, it was first invented in 2008 by Satoshi Nakamoto for use in the cryptocurrency bitcoin, blockchain is said to have solved the problem of double-spending in digital

currency transaction without a trusted authority or central server.

Adaelu recalled that the world economic leaders at the G20 Finance Ministers’ meeting held in 2017 had set July 2018 as deadline for a unified cryptocurrency regulation.

He added: “Countries such as the USA, the UK, Russia, Venezuela and Kenya have provided framework for the regulations of this emerging technology.”

Other lawmakers who spoke in favour of the motion, who acknowledged the warning issued by the apex bank and NDIC to Nigerians not to trade on cryptocurrency given the complexity and uncertainty surrounding it, however stressed the need for protective measure.

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Rivers N500m hospital loans scheme Why we earmarked 200,000ha suffers crash with 90% default for oil palm plantation - Edo IGNATIUS CHUKWU

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he N500 million private hospital loans fund instituted by the Rivers State government under Nyesom Wike to boost private healthcare system in the state has suffered a crash. This is because, according to the governor, over 90 percent of the beneficiaries failed to repay.

This has thus caused a suspension of the scheme because the government cannot give others as planned. Wike said the failure of private medical practitioners to service their loans had made it impossible for the state government to start the second phase of the scheme.

Speaking during a courtesy visit by the Nigerian Optometric Association, Rivers State branch, on Tuesday, Wike said the action of the private hospital proprietors negated the spirit of the revolving loan scheme.

He said: “We gave out loans of N500million to private hospital proprietors. Out of the number of those who received the loans, majority of them have refused to pay back. The first batch is not responding in loan repayments making it difficult to commence the second phase of the programme.

There is a 90 percent failure in loan repayments in the first phase.”

The governor said the poor governance style of public hospital operators had made it imperative for the state government to seek a quality management model for the Mother and Child Hospital nearing completion.

He said public hospitals in the state do not remit funds to the coffers of the state government, even though the state government paid the salaries of all health workers.

He particularly said, “The management of the Braithwaite Memorial Specialist Hospital does not remit generated funds to the state government.

“We have spent $8 million to re-equip Braithwaite Memorial Specialist Hospital, and we are setting a dedicated electricity line for the hospital to improve power supply to the health supply.”

On 2019, the governor urged Nigerians to work towards enthroning a credible government that would protect the people and develop the economy.

He assured members of the Nigerian Optometric Association that his administration would continue to work with them to improve the sight of the people.

… reiterates commitment to create Oil Palm Council

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do State governor, Godwin Obaseki, says his administration plans to earmark about 200,000 hectares of land for organised oil palm plantation to diversify the state’s economy and create jobs for its teeming youth population.

Obaseki disclosed this at the public presentation and launching of the Nigeria National Interpretation of Roundtable on Sustainable Palm Oil (RSPO) in Benin City, the state capital.

The governor said, “The goal for the palm oil industry is to have not less than 200,000ha of organised oil palm plantation by the end of my administration. We are ready to fulfil our commitment made during the commissioning of the extension II project for Okomu Oil Palm Company, to pioneer the establishment of Oil Palm Council of Nigeria.”

According to Obaseki, the state is committed to the principles of the RSPO, noting, “Adopting the principle is critical in ensuring the achievement of the goal to position the state as the hub of palm oil production in the country. We will develop a master plan to deepen

and re-enforce some of the RSPO principles with specific benchmark.”

He said as part of the state’s plans to ensure RSPO compliance, the state government has partnered with Pro-Forest to audit the forest assets in the state. “We have set-up a technical committee to review the report and work towards establishing a forestry commission for the state,” he said.

He commended Okomu Oil Palm for its collaboration with the state to train 50 students from the College of Agriculture, Iguorhiakhi for a period of three months.

“The college was closed to allow for a comprehensive revamp. We require support of stakeholders to drive investment, economic growth and wealth creation through agriculture. The support will also assist the state to build a College of Education that will be responsible for providing needed technical manpower for the sector,” he said.

CEO, SIAT Group, Gert Vandersmissen, said the oil palm sector in the state, if properly positioned, would be among the most sustainable in the world.

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FEC approves N80bn, contracts, 10 new rice mills TONY AILEMEN, ABUJA

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ederal Executive Council (FEC) has approved various contracts worth over N80 billion and additional 10 new rice mills with production capacity of 100 tons per day each.

This is as FEC also approved a department for traditional medicine at the Federal Ministry of Health to the cure of Malaria.

These were revealed by ministers while briefing State House correspondents after the weekly FEC, presided over by President Muhammadu Buhari.

Minister of Works, Power and Housing, Babatunde Fashola, said FEC approved additional contracts for additional facilities for the ongoing section A of the Lagos Ibadan Expressway at the cost of N64.108 billion.

The new approvals will cover the construction of bypass, pedestrian bridges and walkways to take care of various users of the road, including churches, universities and industrial complexes located along the road.

According to Fashola, “Council approved the award of SubailaFalala-Bini-Baku-Bauchi Road that connects Kano and Bauchi States at the sum of N4.578 billion.

“Council also approved additional works on section one of Lagos - Ibadan express way, the additional works over 43.6 kilometres at the cost of N64.108 billion which covers pedestrian bridges, toll plazas for that section so as to accommodate the changing nature of that road.

“Over the years, the road has seen many new structures, including religious institutions, factories, universities, increased human activities have come up along that road.”

He noted that the inherited design didn’t provide for these at all and also to modify the quality of bitumen, polymer modified bitumen, in order to deal with the heavy cargo that passes through that road.

Julius Berger handles the first section, while the “second section under RCC which covers over 80 kilometres will come to council to incorporate similar works including drainage works when we finish the procurement,” he said Minister of State for Agriculture and Rural Development, Heineken Lokpobiri, also disclosed that FEC approved additional 10 rice mills at the total cost of N10.7 billion.

Each of the 10 rice mills with a total production capacity of 100 tones each will be spread across 10 states in each of the six geopolitical zones. The states include Bayelsa, Kebbi, Zamfara, Ogun, Anambra, Kogi and Benue, Kaduna, Bauchi and Niger states.

Lokpobiri said the mills would be handed over to private sector operators, saying, “Today, the Federal Executive Council approved the establishment of ten very large rice mills to enhance the milling capacity of rice value chain in the country.

“Few years ago, it was projected that the country will require a minimum of 100 large mills.”

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Harvard Business Review

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Global Business Perspectives CONNEC TING

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Asian regional order – US allies to the rescue ATMAN TRIVEDI

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he symbolism is striking: The White House recently threw out the international rulebook to impose sweeping tariffs on imported steel and aluminum, and that same day, more than 5,000 miles away, in Santiago, Chile, ministers from key U.S. allies and partners quietly inked a deal to eliminate trade barriers and spur market reforms in 11 countries stretching across the vast Pacific Rim. Casual American observers stopped paying attention to the Trans-Pacific Partnership more than a year ago, when President Donald Trump pulled out of the agreement, one of his first moves in the Oval Office. But reports of the TPP’s demise turned out to be greatly exaggerated; the massive deal survived, albeit in a slimmed-down form, without support from the world’s largest economy. True, each of the 11 TPP countries concluded it made sense to forge ahead with a revised agreement that prepares them to compete in an interconnected world. But more to the point, an updated deal would have been impossible without Japan. The linchpin U.S. ally smartly stepped into the vacuum to rally other friends like Australia, New Zealand and Singapore.

Japan’s leadership reflects a developing trend, sometimes lost in Washington’s chaos, of Asian allies and partners working overtime in response to America’s rejection of traditional diplomacy and shifting regional power dynamics. The White House cannot afford to take these friends for granted.

Tokyo’s recent diplomatic makeover is a telltale sign of the times. Japan has historically been seen as defensive

President Donald Trump signs a presidential memoranda withdrawing from the negotiating process over the Trans-Pacific Partnership in the Oval Office of the White House in Washington, Jan. 23, 2017. Eleven countries are expected to sign a slimmed-down version of the Trans-Pacific Partnership as they try to counter Washington’s new protectionism. (CREDIT: Doug Mills/The New York Times)

on trade, passively backing U.S.-sponsored rules. But with America abdicating its historic role, Japanese Prime Minister Shinzō Abe thrust his nation into the unfamiliar position of championing traditional U.S. goals rejected by the White House.

Japan’s new trade leadership reflects a welcome trend where Tokyo increasingly shows signs of leading on economic and security issues like open markets, quality infrastructure development and unfettered sea lanes.

Right now, Tokyo’s trend of international activism is encouraging.

Consider Japan’s recent security contribution. The Trump administration’s vision of a “free and open IndoPacific” that connects Asia’s maritime and land spaces actually derives from an idea Abe advanced more than a decade ago and refined in 2012.

Following behind-the-scenes Japanese diplomacy, the White House adopted Abe’s concept to grow cooperation among Australia, India, Japan and the United States. In November,

the countries met for the first time in more than a decade.

Australia and India are similarly beginning to raise their regional profile, both initiating leadership summits this year with Southeast Asia to discuss shared concerns such as cybersecurity, maritime security and terrorism. South Korea’s New Southern policy and Taiwan’s Southbound policy are likewise novel initiatives designed to facilitate regional cooperation. Asian democracies such as India and Japan are building closer military and economic ties with one another and with Australia based on common liberal values and interests.

Meanwhile, on the Korean Peninsula, longtime U.S. ally South Korea has surprisingly taken the diplomatic initiative to discuss North Korea’s nuclear program. Few expected President Moon Jae-in’s envoys to return from Pyongyang with assurances that North Korea’s young and mercurial ruler would freeze nuclear and ballistic missile testing while negotiators talk.

Sure, there are plenty of rea-

sons for skepticism. But at least for the time being, the growing talk of war has receded.

The growing chorus of friendly voices in the IndoPacific is an influential yet underappreciated story. The 11 TPP countries’ decision sends a powerful message against protectionism just as Washington threatens to launch a destructive global trade wars.

The countries remaining in the TPP took a careful approach in suspending relatively limited provisions of the agreement — leaving the door ajar for a U.S. return. Trump himself raised this possibility.

For the Pacific region, where the United States has underwritten security for seven decades, the enhanced leadership of Japan and others comes in the nick of time. China is growing more authoritarian and assertive. Security competition is heating up just as “America First” policies are causing some countries to doubt U.S. reliability.

Yet, rather than resign themselves to living in China’s Asia or demonize Beijing as public enemy No. 1, countries are now finding ways to recalibrate their foreign policy.

TPP-11 reflects a common, affirmative vision for competing against China — not containing it — and other nations in today’s digital economy. That approach lies in stark contrast to the Trump administration’s unilateral tactics to address China’s harmful intellectual property and trade practices.

Allied actions may just be instructive for interpreting regional trends and as a model for other U.S. friends.

Dismayed foreign policy elites have captured how the liberal international order faces serious challenges from within national borders and without.

Nevertheless, the TPP-11 and

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

renewed efforts to build regional security architecture suggest that — at least in Asia — the existing order may be more resilient than many expected.

However, over the long term, only steady and engaged American leadership can preserve this order. Even the world’s third-largest economy, Japan, with its constitutional limits on using force, can’t fill U.S. shoes. In the near term, no one possesses the resources or ambition on security issues — not even China. Fortunately, the United States still claims unique military, economic, and technological characteristics; an unmatched system of alliances; and residual goodwill from its post-World War II leadership.

But these advantages are shrinking. Serious diplomatic missteps, including an unfortunate underestimation of how allies like South Korea and Japan are advancing American interests, have closed the gap. Domestic divisions rising from a collective failure to help those left behind by globalization are sapping U.S. strength, while secondary developments such as China’s rise and technology diffusion also disrupt the global status quo.

For the time being, one must find solace in the reality that Asia’s rules-based order is staying alive thanks to the efforts of friends around the globe and a dwindling number of farsighted leaders in the United States.

(Atman Trivedi is the managing director at Hills & Company International Consultants. He recently worked as an appointee at the U.S. Commerce and State departments, and as a senate foreign relations committee staffer on Asia issues.)

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COMMENT FELTED THOUGHTS

OLUGBENGA A. OLUFEAGBA Senior Consultant, Markets Practice, Kainos Edge Consulting Limited. gbengaolufeagba@kainosedge.

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s the intrigues around the elections continue to unravel, many different reasons are being adduced for why a change of the incumbent c ha ng e - g ove r n m e nt i s necessary, but I haven’t h e a rd a n y m e a n i n g f u l message that resonates with me. There is a lot of noise from the old b r iga d e a n d t h e u su a l suspects about the failings of the current administration, and why a change in leadership is necessary, but in a decent clime, most of those ra b b l e ro u s e r s s h o u l d not even be in a position to raise any dust as they would be in jail for their own contributions to Nigeria’s failed system.

There is also the clamour by the younger generation on why a change in baton is necessary, but what I haven’t seen is that compelling argument on why we should vote for any of the younger aspir-

EMEKA UCHEAGA Ucheaga is Managing Partner, Emeka Ucheaga Advisory

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n 2017, foreign portfolio investment grew in excess of 200% buoyed by high yields on government treasury bills and stability in the foreign exchange market. This was a product of the tight monetary policy stance adopted by the government in the last 2 years. The Central Bank of Nigeria has not been the only African countr y that tightened monetary policy to combat rapidly rising inflation, other countries like Ghana and Egypt also took such steps with effective

Thursday 26 April 2018

comment is free

Send 800word comments to comment@businessdayonline.com

Issues before the 2019 election gladiators and pretenders ants. Although I do not support old, wheelchair bound presidents, but if age was the most significant factor, then the D e m o c ra t i c R e p u b l i c of the Congo, with all its resources and a 47 year old president that has been in power for 17 years would be the beacon of development in Africa. The younger aspirants haven’t demonstrated that they are any different from the old brigade, with their c a m p a i g n ma n i f e s t o s also heavy on what they would do, but very light on how they would go about them as well as a realistic way of funding the promises.

There are a number of pressing issues any serious contender will address. First on my list is the security of life and property, as that is a constitutional right of every citizen. We need to see a demonstration of the understanding of the complex security issues in Nigeria, along w ith pragmatic s olutions. Have w e nipped the Boko Haram insurgency menace in t h e b u d o r h av e t h e y metamorphosed into the so called herds-

Have we nipped the Boko Haram insurgency menace in the bud or have they metamorphosed into the so called herdsmen carrying out unprovoked attacks across the length and breadth of the country? men carrying out unprovoked attacks across the length and breadth of the country? Are we to expect more brazen robbery attacks like the one t hat hap p e n e d i n O f f a, Kwara State, where a police station was sacked and banks raided unhindered? Should we create a colony for kidnappers so that they can legiti mately continue to terrorize the citizens? Will 80% of the ineffective police force with staff strength of about 371,800 continue to guard the ‘important dignitaries’ while the remaining 20% protect 180 million citizens?

The next on my list is health as many of us cannot afford the luxury of

f o re i g n h o s p i t a l s t h a t will extend our life expectancy beyond the d i re 5 4 y e a r s t h a t t h e average Nigerian is sent e n c e d t o. How d o w e turn our public hospitals into lifesaving centers that the president and his offspring will be confident enough to patroni z e w h e t h e r f o r t re a tment of ear infection or management of motorbike accident injuries?

Is there a solution to the perennial industrial action by our physicians due to dangerous work conditions while some of their mates in another countr y are protesting against increase in salary? How do we ensure decent universal basic

healthcare for every Nigerian citizen?

Another area that would be interesting for our aspirants to address is the human capital deficiency in Nigeria. Will we ever find a solution?

Or because there are no quick wins in education, we will continue to neglect this all important f a c t o r o f p ro d u c t i o n ?

Does any of the aspirants actually understand the role of human capital in economic development?

Are we going to continue to prioritize quantity of schools and graduates over quality and skills?

Do we actually have educational systems and structures that address human capital needs of Nigeria?

Any aspirant that has no clue on the above enumerated fundamental issues will certainly have no idea on how to build institutions and run a vibrant economy.

It is only when we find solutions to those aforementioned that we would have laid the foundation for an inclusive growth and a responsible and responsive government.

Send reactions to: comment@businessdayonline.com

Hot money goes home results.

However, with such polices being largely effective in Africa, there seems to be a harmonization of Central Bank decisions around the c o nt i n e nt a s t h e l a rg e s t economies, South Africa, Ghana, Kenya, Egypt and Nigeria are all looking to ease monetary policy this year to reduce borrowing costs for the real economy and encourage growth. Unfortunately, this is also happening at a time the Federal Reser ve Bank of America is raising interest rates at market choking pace and the Bank of England finally raised interest rate in 2017 for the first time in almost

a decade. Also, the European Central Bank and Bank of Japan are also starting to wind up quantitative easing in some form as the economy seems to be prospering while inflation gradually edges north.

The risk here is that we expect capital to flow out of Nigeria as rising political risk and falling treasur y yields makes Nigeria an unattractive Capital destination for f o re i g n i nv e s t o r s i n 2 0 1 8 .

Already NSE has seen foreign portfolio investment reduce by more than N120b in the first quarter of 2018. We expect this trend to continue as funds flow out of Nigeria and into US treasury market where yields will continue to

get juicier with three more Fed rate hikes expected during the course of the year.

Since other large Afr ican economies are also easing, we expect similar trends to occur in these economies.

Large capital outflows in Nigeria and Ghana will have significant negative impacts on the exchange rate and the Central Banks in both nat i o n s w i l l n e e d a l l t h e ammo they can get to support the currency through the year long process. We expect the Naira and the Cedi may be devalued this year as capital outflows pick up pace and loose monetary policy (which Ghana has already began and Nigeria will join

by mid year) occur simultaneously in 2018. Although we expect both currencies to drop, we do not anticipate the national currencies to drop by more than 15% due to r ising cr ude oil pr ices which is a key source of foreign exchange earnings to both countries.

While foreign investors take cash home to more business friendly environments, Central Bankers in Africa must ensure that large capital outflows and weaker currencies do not bring back the inflationary pressure they struggled so hard to control in past year.

Send reactions to: comment@businessdayonline.com

Thursday 26 April 2018

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COMMENT

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Sports as an integral part of sound education OLUWADARA ALEGBELEYE Oluwadara is a writer as well as an academic researcher. She is currently a PhD student at the Department of Food Science, University of Campinas

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n recent time, I have observed that so many primary and secondary schools in various parts of Nigeria have all sorts of fancy structures and amenities but lack sports facilities least of all a sports field! Most secondary schools have their premises completely tarred, showcasing flagrant disregard for sports and games. Interhouse sports competitions, which were the highlight of my secondary school experience, are so rare nowadays that I feel sorry for primary and secondar y school students. School administrators are not only hostile towards sports; they seem to be hostile towards virtually every form of extracurricular activity. There is no reliable research output proffering any reasons for this trend, but some theories have attributed it to parental indifference, as many parents seem to consider sporting activities a waste of time or even dangerous. Some others suggest it is cost-related, where sports are not considered a worthy investment of limited resources.

Philistinic governance may also be a factor, demonstrated by the derelict facilities in many public schools and the progressive enfeeblement of erstwhile

TUNDE AROGUNMATI Agorunmati lives in Lagos

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ood question; possibly the most important thing is for us to agree by way of a national consensus that we need to do something urgently to change our national trajectory, which currently has been truncated into an occupational agenda being ruthlessly implemented via herdsmen genocide.

We have to enable a modular civic coalition template that will enable all diverse interest groups as cer tain their prioritised agenda and articulate same as clearly as possible along the lines of community, culture, region

sports renowned and reputable colleges and mission schools.

In my opinion, pervasive obtuse reasoning and intellectual laziness of all key players, is a major contributing factor.

Whatever the cause, it is highly unhealthy.

I understand that academic excellence is now more than ever, of premium importance, and I believe that education is paramount. However, I do not see the sense in keeping children in classrooms from 7 AM until 6 PM with a one-hour or less lunch break everyday of a full school term. It is unnecessary, as there are other productive activities that could be incorporated into school schedules for holistic development.

Recently, I heard a popular TV host say that we need more scientists than sportsmen. That may be true. However, a potential scientist may indeed need sportsmanship to excel. First, sports (whether recreational or organized) breeds intense competition. In addition, it builds physical stamina, resilience, self-esteem, and improves cognitive function and mental alertness. It teaches children requisite life skills like teamwork, leadership, time management and patience.

Furthermore, there are recent global initiatives encouraging increased physical activity as a health protection or longevity strategy.

When I was in secondary school, classes terminated at 2:20 PM, after which we had lunch and a compulsory siesta.

Depending on what day of the week it was, we had afternoon ‘prep’ (for revision, I presume), sports activities, sanitation, literary or press-related ac-

It is useful to point out that while education is indeed important, not everyone will require a tertiary education or fancy advanced degrees to succeed or attain fulfillment in life. So many people have other forms of talents, which the current education system will not enable them to exploit. As a matter of fact, this system will very likely, eclipse such talents tivities, or some other social engagement. I know at least three women who obtained full scholarships to study in advanced countries, representing their universities in sporting events.

Also, many of my secondary school colleagues ended up in prestigious university programs and are currently pursuing fulfilling careers or other rewarding life goals. So then, if school closed at 2:20 PM and we are doing well now, what exactly is the point of subjecting students to such undue rigor?

It is useful to point out that while education is indeed important, not everyone will require a tertiary education or fancy advanced degrees to succeed or attain fulfillment in life. So many people have other forms

of talents, which the current education system will not enable them to exploit. As a matter of fact, this system will very likely, eclipse such talents. In sports, at the national and international level, we are already doing so badly. Consider for example, the spotty representation of Nigerian acts at the last Olympic games and how we can now only reminisce about our past football glory. Furthermore, research has associated sedentary lifestyle with an increased risk of cardiovascular diseases, obesity, colon cancer, high blood pressure, anxiety and depression, amongst other chronic diseases. It is worth mentioning that most students, when not in school, are not physically active either. Active

travel is not an option for most Nigerians, and so getting around is most commonly by motorized transport as opposed to walking or cycling. In addition, virtual socializing is the trend and many young people have a tendency for excessive screen time- using phones, tablets or computers, playing video games or watching television, many times while lying down. All of these make the revival of sporting activities in schools even more urgent.

An arrangement where students sit for several hours studying, reading and forth clearly represents a major public health risk and should be re-evaluated. Overall, schools and parents should aim for balance, as an unhealthy commitment to sports may indeed translate into compromised academic performance. Government involvement and control is also necessary. Other possible interventions include, boosting other forms of physical activity not just among students but other members of the society such as ensuring safe and attractive environments for walking, promotion of stair use amongst others. Sports related injuries can be minimized by adopting certain strategies such as ensuring sports readiness, proper rest, hydration, nutrition and strength training. Organizations promoting positive youth engagement in sports are available and should be enabled. A balance between fun, physical fitness, wellbeing and lifelong lessons can be achieved, if the right people can adopt the right attitude.

Send reactions to: comment@businessdayonline.com

Nigeria - what is the way forward? etc.

General Obasanjo’s Third Force could have achieved this, if it had been better thought-out and less selfeffacing.

A functional coalition is a good political enabler, when it’s not overly partisan; a coalition is not an amorphous monolithic “party” - it is a flexible platform designed to accommodate a multitude of divergent “party” elements for the purposes of deploying enlightened self-interest towards accomplishing a rounded political settlement acceptable to the generality with a shared, albeit clear vision on the way forward

and concrete plans to achieve national goals together.

How this will be realised at community, LG, State & regional levels will then be left to preferred political ideology as delivered by specific parties set up to operate along best practice principles including, equal opportunity, transparency & merit-based metrics operating under an atmosphere of free and fair elections.

All elements of this may yet not be possible, but a concerted effort may commence asap to ensure that we get back to our senses to reappraise our situational peculiarities and benchmark our expectations with an agreed global

standard.

Having done this, we may want to approach the coming elections sensibly to the extent that the localities & regions agree on best fit genuine parties to deliver and field credible competent candidates at all levels, thereby ensuring more widespread participation amongst the plethora of party structures, which w ill have the dual advantage of breaking the toxic APC-PDP stranglehold on political power and truly enabling a restructuring of the political backbone from the present “kakistocratic junkyard” to a vibrant democratic existence premised on

unity of purpose and strength in diversity.

A properly organised coalition will also arrange the voting into the centre of a truly transformational federal turnaround game-changer who knows his/her onions and understands what it takes to manage our country’s abundant resources (notably, our youthful human population) diligently & equitably.

This is my humble submission regarding lasting positive change - not a complete panacea; but a credible way forward to a #NewNigeria4All. Send reactions to: comment@businessdayonline.com

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Editorial PUBLISHER/CEO

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

Bashir Ibrahim Hassan

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

Thursday 26 April 2018

Concern over anticipatory approvals

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nce again, there is deserved focus on the money trail on security expenditure by the Federal Government.

While it is true that the Muhammadu Buhari government named security as one of its cardinal programmes, the question increasingly arises. Are we more secure or less secure now than we were in May 2015? Are we getting value for the humungous sums that have gone into security spending?

There is the additional matter of process and procedure. The Federal Government in pursuing expenditure on security has evidently ignored procedures and processes. Why the rush?

In whose interest is it to rubbish established procedures with security spending as rationale?

It has since come out that President Muhammadu Buhari breached procedures in granting anticipatory approvals for payment of huge sums of money in the name of security. One was the payment of $469m from the Excess Crude Account to buy 12 Super Tucano aircraft from the United States government. The sum is in addition to the release of $1billion also from the Excess Crude Account following the consent of the Governors.

There are many problems

with the process and the actions.

For one, funds in the Excess Crude Account are not directly available to the Federal Government to draw upon at a whim or a decision of the executive arm. They belong to the Federation, being all the federating units of states, local governments and the federal government. The established procedure is for all funds to get legislative approval, meaning the representatives of the people endorse the expenditure.

The Excess Crude Account came into being in 2004 as a proactive measure to save oil revenues above a base amount based on benchmark oil prices.

The account seeks to protect the budgets against shortfalls due to fluctuating oil prices.

The goal was to delink government expenditures from oil revenues thereby insulating the economy from external shocks.

The ECA grew up to $20 billion by November 2008, representing a third of Nigeria’s external reserves then.

But by June 2010, the account had less than $4billion due to budget deficits at all levels of government and the steep drop in oil prices. Demands by the Nigerian Governors Forum for release of the saved funds ensured that it reduced further to barely $1 billion by the end of the Goodluck Jonathan administration. It has since risen to over $2billion.

Divvying up the Excess Crude Account gave the governors additional political leverage and funds. There are hardly any traces of the funds in the states in terms of infrastructure or visible expenditure, the original arguments they made for insisting on release of the funds. Now the Governors are similarly in the forefront of pushing the Buhari government to draw freely from the ECA and spend the money.

Second is the wrong procedure the Federal Government has adopted in taking the money. The President has written to the National Assembly after the fact to approve the expenditure by inserting it into the yet-to-be-approved 2018 budget. Wrong process that leaves a foul smell.

There is yet another concern. Expenditure on security since 2015 is becoming curiouser and curiouser. Citizens are bemused as there are inadequate or no explanations for some of the actions.

Take the matter of the $1billion. When the Federal Government first spoke of it, the claim was that it would be deployed to defeat Boko Haram. This was strange, to say the least, because for nearly a year before then the same Federal Government insisted that it had “technically defeated” Boko Haram. Why would you need such a huge sum of money representing a significant fraction of the 2018 budget, just to fight

a defeated army?

The sum of $1billion in the open market translates to about N365b or N305b at official rates. It means an expenditure of N1billion daily on this fight. Note that this is extrabudgetary spending aside from the provisions in the Defence budget. The budget provides N567billion for Defence. The defence budget expressly provides for the purchase of small boats, tugs and helicopters.

Then before the approval of the same budget by the National Assembly, the Government releases $469m for buying the same helicopters.

It does not make sense. Too many things do not add up in the expenditure on defence.

As we noted with the case of the abduction of the Dapchi girls, on the matter of our defence it would seem that too much money is available.

The more money that the government makes available, it appears, the more money that it needs to conduct this war.

On the other side, the more money available, the more unending the war seems to become. Remember this was a war the Government assured us that a Government headed by a general would quickly bring to an end. It is not happening.

There is too much that is unseen and unknown.

Please cap the expenditure on security or make it more accountable.

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Thursday 26 April 2018

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BUSINESS

COMPANIES & MARKETS

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Unilever’s profit surges 143%, driven by declining operating cost

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

Ecobank could pay dividend this year as first quarter earnings surge …Q1 profit up 49.14% in 2018 BALA AUGIE

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cobank Transnational Inc., A f r i c a’s m o s t geographically diverse lender, could reward shareholders this year as the lender started the year with a double-digit growth in earnings while curtailing costs.

Investors use the first quarter results of companies to gauge future performances as they expect a return on their investments.

At its 30th Annual General Meeting (AGM) held in Pan Africa Conference Centre in Lome Togo, Ecobank said that it was unable to pay dividend for 2017 financial year despite rebounding to a profit position because there was the need to create buffers and maintain a solid profit position.

For first three months through March 2017, Ecobank’s net income spiked by 49.14 percent to N27.86 billion as against N18.68 billion the previous year.

A reduction in impair-

ment losses on financial assets and increased noninterest income helped propel the lender to growth amid a volatile and unpredictable environment.

Gross earnings were up 11.34 percent to N198.61 billion in the period under review, thanks to contributions from interest on loans and advances.

Interest income and similar charges were up 9.58 percent to N126.58 billion

in March 2017 from N115.58 billion the previous year.

The growth in interest income was driven largely by a 12.90 percent increase in noninterest revenue to N66.30 billion in the period under review.

The Lome, Togolese lender’s decision to curtail costs by reducing number of branches in Nigeria to 405 from 479 as it seeks to reach more customers through digital platforms has yielded

fruit as cost to income improved.

Staff expenses were down 2.47 percent to N37.88 billion in the period under review from N38.87 billion as at March 2018.

Operating expenses were up 9.80 percent to N42 billion as at March 2018, lower the 13.34 percent March inflation figure.

“Overall, our results show the progress that we have made in the last two

years in strengthening the firm’s foundations as part of our ‘roadmap to leadership’ and digitisation strategies – particularly around operating efficiency, credit risk management, and digitisation to reduce our costto-serve and advance our vision to bring affordable and convenient financial services solutions to the many unbanked Africans,” said Ade Ayeyemi, Group CEO of Ecobank in a note

to client.

“We have now reached a turning point in our fiveyear strategy. In the next few years, we will build on this momentum with one major goal – relentless execution,” said Ayeyemi.

Ecobank’s deposits from customers increased by 13.76 percent to N4.71 billion in March 2018, from N4.14 billion as of March 2018.

Total assets were up by 9.10 percent to N6.83 trillion in the period under review from N6.26 trillion as at March 2018.

“We can serve the number of people, while improving fundamentals will boost economic activities and ease credit risk. We expect credit quality metrics to remain elevated in some countries, notably Nigeria and Ghana.

To address these issues, Ecobank has appointed a highly experienced chief risk officer to ensure that the bank establishes and maintains robust risk management framework,” said Ayeyemi, during the lender’s Annual General Meeting.

Air Peace moves to expand regional operations …reassures on safety IFEOMA OKEKE

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igeria’s leading carrier, Air Peace, has announced plans to begin the third phase of its regional operations in the next few weeks with the launch of flights to Monrovia, Lome, Abidjan and some other West Coast destinations.

The airline has also reassured that its fleet comprises Boeing aircraft with some of the best engines in the world and built to ensure the safety as well as comfort of the flying public.

A statement signed by Chris Iwarah, Air Peace corporate communications

manager, said the airline was already realising its goal of guaranteeing seamless connectivity on the West Coast of Africa with the launch of its Accra, Ghana; Freetown, Sierra Leone and Dakar, Senegal flight operations.

The plan to add Monrovia, Lome and Abidjan to the airline’s route network, the statement added, was in appreciation of its customers on the West Coast who had reached out to it to expand its regional operations to cover more underserved destinations.

“On February 16, 2017, we launched our Accra, Ghana operations and gave members of the flying public a refreshing choice of spec-

tacular flight services on the route. Just about a year after our entry into the Accra route, we took another huge step to deepen our West Coast operations with the launch of our Freetown, Banjul and Dakar services on February 19, 2018.

“We are deeply grateful that members of the flying public have not only endorsed our regional flight operations with their patronage and loyalty, but are now requesting that we expand our network to cover more West Coast destinations, including Monrovia, Lome and Abidjan. We feel highly honoured that our wonderful guests are pleased with our domestic and regional

operations.

“Our goal is to make air connectivity on the West Coast and indeed the entire Africa seamless, comfortable, affordable and a refreshing experience. We are ready to take up the challenge and kick off the third phase of our regional operations with the commencement of our Monrovia, Lome and Abidjan services in the next few weeks. It is the least we can do in appreciation of our esteemed guests whose support and loyalty have taken us to the top spot as leaders of the commercial flight business on the West Coast of Africa,” the carrier said.

In another development, Air Peace has reassured that it was running a strict safety

and fleet maintenance programme because of the premium it placed on the lives of its customers.

Its fleet, the airline said, comprised the family of Boeing 737 aircraft with some of the best engine performance record in the world.

The engine of an NG B737-700 aircraft owned by a United States-based airline recently blew out, prompting regulators to reportedly order a check to ensure that other aircraft of the same type were not having the fault allegedly discovered in the engine.

Air Peace, however, said its aircraft were different from the Boeing 737-700 involved in the U.S. incident. The Boeing 737-700 aircraft belonging

to the U.S. carrier is fitted with a CFM56-7B engine.

Air Peace explained that it had Boeing 737-300 and 737-500 aircraft, which had been credited with perfect engine performance, in its fleet. The B737-300 and B737500 aircraft are fitted with a CFM56-3C engine.

The airline said besides contracting one of the best aircraft maintenance companies in the world, BCT Aviation, to do routine maintenance of its fleet on ground its base in Lagos, it was spending huge foreign exchange to maintain its aircraft in some of the best facilities in the world to ensure that the safety of the flying public was not compromised

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Thursday 26 April 2018

COMPANIES & MARKETS Unilever’s profit surges 143%, driven by declining operating cost MICHEAL ANI

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nilever, one of Nigeria’s biggest players in the Fast Moving Consumer Goods (FMCG), space has reported an increase in profit after tax of 143 percent on the back of a decline in operating cost, data from its 2017 full-year financial report shows.

While the consumer goods firm saw an increase in profit of 143 percent to N7.45 billion in 2017, from the N3.07 billion recorded in 2016, its operating cost dropped by six basis points (6bps) in the same period under review.

The firm’s stock price shows that investors are finding it attractive as price rallied some 29.27 percent, outperforming the NSE all-share index of 6.59 percent year-to-date.

Further analysis indicated that the company’s total assets were up by 48.6 billion to N121.1 billion last year, from N72.5 billion two years ago.

Total liabilities also fell by 15.6 billion to N45.2 billion in 2017, from N60.8 billion in 2016 at the thick of the recession.

The Central bank Of Nigeria(CBN) decision to restrict specific items from accessing its official window in 2015 placed significant pressure on input costs for FMCGs, as they had to source for foreign exchange (FX) from the parallel

market at higher rates to settle import bills which consequently depressed gross margins.

In response to this, several FMCG companies developed backward integration strategies and effective supply chain management to reduce overreliance on imports to militate against exchange rate volatility that has hitherto hampered growth The apex bank also touted the possibility of FX concessions for manufacturing firms who are willing to set up production facilities in the

country rather than continually depending on the CBN for FX to import their inputs – and this led to Unilever’s commissioning of a new Blue Band factory in 2017.

Rising input costs and FX constraints, saw gross margins come under pressure for most FMCGs in 2017. This led to several price increases in products as companies responded to keep up with margin expectations. As a result, consumer demand declined, given the strong price elasticity of most

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ricewaterhouseCoopers (PwC) latest report has revealed that approximately $13.5 billion was raised in the equity capital markets in Africa or by African companies in non-African capital markets last year. This is 49 percent increase from 2016, according to PwC. Similarly, the consulting global company said $7.5 billion in non-local currency debt was raised by African companies in international debt capital markets, a 68 percent increase from 2016. “Despite a challenging environment, with public debt approaching critical levels in some countries and concerns over excessive reliance on oil, African businesses are expanding”, PwC said in the report.

PwC’s analysis of 75 companies featured in the inaugural ‘Companies to Inspire Africa 2017’ report, by the London Stock Exchange Group (LSEG) in partnership with Africa De-

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nited Capital Plc, a leading Pan-African investment banking group, announced its unaudited 2018 first quarter financial results, showing gross earnings of N2.2 billion and profit before tax of N1.49billion.

United Capital generated gross earnings of N2.2bn, an increase of 4 percent from N2.1bn in Q1 2017, despite uncertain macroeconomic environment and lower interest rates on treasury assets. Profit before Tax also grew by 7 percent, from N1.39bn in Q1 2017 to N1.49bn in Q1 2018.

The Group’s sustained growth in revenue and profitability is in correlation with the firm’s strategic and efficient management of investment activities across all businesses, better pricing of earning assets, gains from its eq-

uity portfolio as well as effective cost management, the bank says in a statement.

Commenting on the results, Oluwatoyin Sanni, group CEO, said: “As a company, we understand the importance of starting a new financial year on a positive note. At the beginning of the year, we outlined our business objectives and developed a strategy to achieve those goals from the onset. While the market may have sustained challenges beyond our control, we took this as an opportunity to expand our business/product offerings and encouraged innovation in-house to gain market share across our diversified business lines. The sustained growth is a testament to the hard work, dedication and precision United Capital offers its customers across Africa.

FirstBank to sponsor Visa Gold customers to World Cup ODINAKA ANUDU

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L-R: Segun Adeniji, corps marshal, LAGESC; John Irvine, CEO Visionscape Sanitation Solutions; Adebola Shabi, SA to the governor on CLI; Iyabo Philips, general manager, LAWMA, and Afis Kasumu, chairman, Waste Operators Association, at the press briefing on the planned transfer loading stations across the state as part of cleaner Lagos initiative held in Lagos recently.Pic by Pius Okeosisi

African companies continue to grow despite difficult macro environment, says PwC Daniel Obi

consumer items other than the household necessities.

Unilever successfully raised N63 billion via a rights issue last year. Management indicated that the proceeds will be used to settle foreign currency intercompany loans, support working capital and for capacity expansion.

The FMCG recorded a 30.1 percent increase in revenue.

This revenue growth in 2017 primarily reflected price increases rather than volume expansion

United Capital grows gross earnings 4% to N2.2bn

velopment Bank Group, CDC Group and PwC, provides clear evidence of significant investment and growth in African business.

“The success of these businesses tells an important story to the world: there is huge potential in Africa. Companies are growing but they need external interest and investment for this to continue. While supportive governments, enabling environments and access to funding clearly play significant roles, business transparency and accountability are also essential ingredients to attract a wider audience and fuel the growth of African companies,” Simon Venables, deal origination leader, PwC Africa, said in a report.

Also commenting, Andrei Ugarov, corporate finance partner, PwC Nigeria, adds that “For UK investors, Africa offers economic growth that continues to outpace established nations. A swelling middle class, advances in technology and the rise of entrepreneurship has boosted the number of consumers, making the continent more appealing

than ever.”

A number of the businesses featured in Companies to Inspire Africa 2017 have taken a lead in obtaining alternative sources of financing beyond traditional bank debt. Examples include issuing the first 10-year infrastructure corporate bond in Nigeria, raising finances through cooperative and social investment companies and numerous stock exchange listings including a record $600 million Eurobond.

“Companies from Kenya, Nigeria and South Africa are leading the way in spreading their African footprint beyond their borders. Financial services, consumer services and energy are the sectors where the most expansion took place”.

Twenty-one companies featured in LSEG’s Companies to Inspire Africa 2017 report formed alliances and joint ventures in the past year. These include companies based in Kenya, Nigeria and South Africa, with industrial products and telecoms and technology being the dominant sectors.

n partnership with Visa International, First Bank of Nigeria Limited has announced that two winners will emerge from its on-going Visa Gold card issuance and usage promo. Each winner will be entitled to take a partner along, for a five-day all-expense paid trip to Russia for the 2018 FIFA World Cup event.

To qualify for the promo, customers are expected to spend

a minimum of $500 on their FirstBank Visa Gold cards. The promo is open to new and existing customers and ends on Monday, April 30, 2018.

The FirstBank Visa Gold card is an international premium credit card, issued in partnership with Visa International. It is accepted for payment at over 29 million partner locations and enabled for cash withdrawals at over 1.8 million ATMs in over 200 countries and territories worldwide, wherever the Visa logo is displayed.

Coca-Cola Nigeria facility investment deepens capacity for younger generation KELECHI EWUZIE

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oca-Cola Niger ia says its investment through construction and rehabilitation of education facility would deepen capacity and contribute to the growth of future generation of Nigeria youths.

Bhupendra Suri, managing director, Coca-Cola Nigeria said beyond infrastructural development, The Coca-Cola Foundation also facilitates a capacity building training for teachers to deploy literacy enhancement programmes targeted at the upper primary section of the school.

Suri who was represented

by Osita Abana, sustainability manager, Coca-Cola West Africa Business Unit, stated this while speaking at the foundation-laying ceremony at First Baptist Primary School, IjayeOja Ale, Ilogbo, Abeokuta, Ogun State.

Abana said the project is part of the Coca-Cola Foun-

dation/UNDP New World Programme in collaboration with Ogun State Government aimed at providing critical infrastructural development in the school, According to him, “The project was funded by Coca-Cola Foundation and implemented by the Youth Empowerment Foundation would be completed within a duration of six months”.

Abana explained that the scope of the project would cover the construction of a block of five classrooms, six units of functional gender segregated toilet with water and sanitation facilities; construction of a functional playground; rehabilitation of two units of toilets; and rehabilitation of two units of classrooms.

“Representing Ogun State at the ceremony, Modupe Mujota, commissioner for education, science and technology for Ogun State, stated that the project would go a long way in improving the quality of education offered to the pupils of the

school while also impacting the community positively.

Mujota commended CocaCola Nigeria and The CocaCola Foundation for supporting the efforts of the state government in providing a conducive learning environment in schools through the school rehabilitation project.

In his own remarks, , Olatunji Okewole, chairman, Ogun State Universal Basic Education Board, described the partnership between the board and Coca-Cola Nigeria as a welcome development in terms of Public Private Partnership (PPP) in bridging infrastructure gap in schools.

He thanked Coca-Cola Nigeria for the gesture and urged other corporate organisations to emulate the company by supporting the government in providing adequate infrastructure in schools in the state.

The project when completed would provide improved water supply not only to the school but also to the entire Ijaye OjaAle Ilogbo Community

Thursday 26 April 2018

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COMPANIES & MARKETS Stanbic IBTC’s PAT spikes 44% in q1 2018 Business Event BUNMI BAILEY

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tanbic IBTC Holdings Plc is on the path of starting the year with a boom as it recorded a spike of 44 percent in its profit after tax to N23.1 million in the first quarter of 2018 from N16.1 million in the same period of last year, according to its first quarter financial statement.

Analysts who spoke with BusinessDay has attributed this to recovery to write-back in loan loss provision.

“One of the reasons is a write back of about N1.5 billion in loan loss provision and that materially boosted their profitability. So, in effect, it simply means that they have recovered their bad loans and the quality of risk passage has also improved,” Johnson Chukwu, CEO of Lagos-based financial advisory firm, Cowry Assets, said on the phone.

“Because one other part of making additional loans is that they are arriving back to earlier provisions, which is one of the major factors that influenced their profitability,” Chukwu further added.

Stanbic IBTC Holdings’ was among the banks in which their loans and advances fell by 7 percent. At N354.7 billion, Stanbic IBTC Holdings’ loans and advances were lower by 7 percent when compared with N381.7 billion granted to different calibres of their customers in Q1 2017.

Its gross earnings at N154.220 billion were an increase of 34.5 percent over the N114.622 billion achieved in the corresponding period in 2017.

The bank’s total assets also rose to N1.4 billion from N1.39 in the same quarter of last year, while net interest income rose to N18.85 million compared to N18.89 in the previous year.

Non-interest revenue shot up to N27.7 million, a 37.9 percent

increase from N20.1 million in the corresponding period of 2017 On why the loans and advances of banks fell amidst rising profitability, Saheed Bashir, senior analyst at Meristem Securities, attributed the development to the sluggish first quarter disease, improving loans quality and high non-performing loans in 2017.

“The first quarter of the year is always sluggish as most economic activities would not have picked up. Again, the rising crude oil prices at the international market have made banks to reclassify some of the loans regarded as bad last year. In that situation, you don’t expect banks to give out a lot of loans to customers”, Bashir said.

As at Monday 23th April, the company’s share price rallied at 50 year to-date, outperforming the NSE All share index with a market capitalization of 502.5 billion and outstanding shares of 10.1 billion

L-R: William Folorunso Kumuyi, founder/general superintendent, Deeper Life Bible Church; Esther kumuyi, and Ojo Olukayode, national overseers, Deeper Life Bible Church Netherland, at the Deeper Life Bible Church stakeholders meeting and dinner in Lagos.

ABCON advocates integration of BDCs into I&E forex window HOPE MOSES-ASHIKE

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he Association of Bureaux De Change operators of Nigeria (ABCON) is recommending a process of integration of the BDC into the Investors and Exporters (I&E) forex windows.

The I&E forex window was created in April 2017 by the Central Bank to cater to invisible transactions (capital repatriation, dividend remittances, loan repayments, loan interest repayments, software subscription payments amongst others), bills for collection and any other trade related payments with the exception of international Airlines ticket sales’ remittances.

However, the Association is concerned by the multiplicity of foreign exchange windows operated by the Central Bank of Nigeria (CBN) and the resultant multiple exchange rate regime in the economy.

The Africa’s biggest economy has at least six exchange rates

ranging from one for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed BDCs, and a rate for foreign travel and school fees, official and black market rates.

The total efficiency loss caused by the current multiple exchange rate regime is estimated at about 14–17 percent of the country’s GDP. “The issue of multiple rates is a thing we have been discussing with the CBN. It is not helping a lot of companies to plan. So, we are imploring the CBN who is the custodian of exchange rate management to work towards a single exchange rate that would favour the economy,” Aminu Gwadabe, acting President of ABCON said.

Giving an instance, he said the CBN sells dollar to the banks at N358 to the dollar and to BDCs at N360 to a dollar.

“And we are meant to sell the same products to members of the public. Also, dollars for PTAs, BTAs and schools fees which we sell are also being sold by the banks and the CBN is giving

them preferential treatment. In view of that, our members are operating at a loss. That is why we are calling on the management of the CBN to consider our Plight,” Gwadabe said in the newly introduced ABCON Quarterly Economic Review.

The quarterly economic review series will focus on review of the performance of key indicators in the Nigeria economy during the immediate quarter.

Emphasis will be laid on the aggregate effects and especially the foreign exchange market.

ABCON is also concerned on the ripple effects of the forthcoming 2019 elections and the preceding campaign process.

The development, which would be another round of economic shock, according to him, would see foreign investors who invested billions of dollars in the equities market taking their exit. He said the negative implication of the exit of portfolio investors from the local bourse therefore, is a major concern on the local currency’s continued stability.

Skye Bank recruits entry level staff nationwide

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kye Bank has announced plans to recruit fresh graduates into its employment at entry level.

The recruitment exercise aims to create employment opportunities for young employees into the organisation while positioning the bank for improved competition in retail banking services across the country.

Candidates wishing to apply are expected to visit the bank’s website at www.skyebankng. com, fill the form and submit online.

Speaking on the recruitment exercise, . Taiwo Olupeka, group head, human capital manage-

ment of the bank, said: “We remain an employer of choice and as a responsible corporate citizen. We are poised to create fair opportunities for young Nigerians to attain their career aspirations in one of Nigeria’s leading financial institutions.

This step also enables us address in some measure the menace of youth unemployment in Nigeria”.

The recruitment process involves the selection of qualified candidates from a pool of applicants across the country who will be taken through a nineweek rigorous training at the bank’s training schools before absorption into the system as

full employees.

Skye Bank operates a business school, which enjoys the full accreditation of the Chartered Institute of Bankers of Nigeria (CIBN) as a banking/finance, business and continuous human capital training academy.

The fully residential Skye Business School runs two campuses in Ilupeju, Lagos and Eleyele, Ibadan both with stateof-the-art facilities and conducive learning environment running robust programs, including but not limited to; Skye Graduate Intensive Program (SGIT) and Onboarding Program for Experienced Hires.

L-R: David Jones David, J.J Aguize, Bright Chimezie, veteran highlife musician, and Tipsy Kelvano, highlife artiste, during the selection party at Bongo Center in Owerri, Imo State

R-L: Udeme Ufot, group managing director, SO&U, with Julien Morales, vice president, African Cristal Festival at a meeting in Lagos to discuss the upcoming African Cristal Festival holding in Marrakech, Morroco.

L-R: Toki Mabogunje, representative of the president, Lagos Chamber Of Commerce And Industry (LCCI); Alfred Susu, chairman advisory board, Nigeria Prize for Science; Nike Akande, immediate past president, LCCI, and Muda Yusuf, director general, LCCI, at the 2018 World Malaria Day Celebration by The LCCI Medical and Pharmaceutical Group in Lagos.

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Investor

In association with

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

Year Open

38,243.19

Market capitalisation

N13.609 trillion

NSE Premium Index

The NSE-Main Board

NSE ASeM Index

2,564.13

1,713.69

1,087.32

Week open (13 – 04–18)

40,928.70

N14.784 trillion

2,934.48

1,775.14

978.72

Week close (20 – 04–18)

40,814.89

N14.743 trillion

2,975.03

1,784.72

966.49

Percentage change (WoW) Percentage change (YTD)

-0.28 6.72

1.38 16.02

NSE Lotus II

NSE Ind. Goods Index

NSE Pension Index

330.69

2,560.39

1,975.59

1,379.74

960.96

350.28

2,685.65

2,173.54

1,566.74

952.67

352.82

2,644.73

2,172.59

1,588.94

NSE Banking Index

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

1,746.68

475.44

139.37

1,838.42 1,840.84

502.28

149.83

514.04

148.08

NSE 30 Index

0.54

-1.25

0.13

4.14

-11.11

5.39

2.34 8.12

-1.17 6.25

976.10

-0.86 -2.40

0.73

-1.52

-0.04

1.42

6.69

3.29

9.97

15.16

Investors look to first-quarter earnings HEANYI NWACHUKWU

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he performance of Nigerian stocks market throughout this month of April will be driven further by the quality of unaudited firstquarter (Q1) to March 31 results which many corporates release on the Nigerian bourse.

Many research analysts had said that investor sentiment will be guided by the influx of Q1 2018 earnings declaration.

Currently, most companies’ first-quarter results reflected some positives across key line figures while some others have also thrown negative surprises.

While many stock investors are confronted with either “buy” or “sell” views, research analysts at Lagos-based GTI advised them to take medium-to-long term view of the market.

They however expect a positive market bearing in this month of April and strongly advised investors to take a keen interest on firms’ fundamentals before taking an investment position on such firms.

The Nigerian equity market rounded off last week on a negative note, shedding 14basis points (bps) on Friday April 20 to extend the week’s loss to 28bps. Thirty-six (36) equities gained in the review week, lower than 37 in the preceding week; while 33 equities depreciated in price, lower than 38 equities in the preceding week, while 100 equities remained unchanged

higher than 94 equities recorded in the preceding week.

The Nigerian Stock Exchange (NSE) All-Share Index depreciated by 0.28percent to close the week ended April 20, 2018 at 40,814.89 points from week open level of 40,928.70 points. The value of listed equities decreased to N14.743 trillion from a high of N14.784 trillion on April 13, 2018, indicating a decrease of about N41billion.

“Despite the increased inflow of relatively improved 2017 corporate earnings, market failed to respond positively as legacy issues in external markets continued to dictate direction of the market. We expect a high level of volatility in the equity market to continue in the second-quarter (Q2) of 2018,” GTI Research stated in their Q1

economic review where they noted that the existing positive economic data show that Q1 2018 corporate earnings will be buoyant “thereby driving up activity level in Q2 2018”.

In their April 23, 2018 stock recommendation note, Afrinvest Research said that despite weaker market performance, investor sentiment has remained upbeat hence they expect a positive performance in the market this week.

“We expect that as firstquarter (Q1)2018 earnings begin to trickle in, we would see improved sentiment in the market as investors seek bargain hunting opportunities in fundamentally sound stocks with attractive entry prices”, Afrinvest noted.

“Market sentiment appears

lukewarm given the mixed closes across key sectors and sustained negative market breadth, even as the ASI traded lower for most part of Friday’s session”, said Vetiva Capital in its April 23 equity research. Vetiva expected the negative breath to drive the market to a weak start this week.

The stock market had witnessed extended oversold of main indicators as a results of recent market correction and significant profit-taking. Stock market investors were relatively skeptical about the earnings results announced by bellwether companies.

In March, the market performed relatively lower than February with ASI recording a dip of 4.21percent. In all, N557billion was wiped-off the market capitalisation of the NSE which dropped to N14.90trillion in March 2018.

Bismarck Rewane-led Financial Derivatives Company in their outlook at the April 4, 2018 Lagos Business School Executive Breakfast Session noted that “stock market will not rally after MPC- an anti climax”.

In the trading week to April 20, all other indices finished lower with the exception of NSE Consumer Goods, NSE Premium, NSE-Main Board, NSE 30, NSE Banking, NSE Oil/Gas, and NSE Pension indices, which appreciated by 1.08percent, 1 . 3 8 p e rc e nt, 0 . 5 4 p e rc e nt, 0 . 1 3 p e rc e nt, 2 . 3 4 p e rc e nt, 0.73percent and 1.42percent respectively.

Little change in PFAs’ asset allocation –FBN Quest

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he assets under management (AUM) of the Nigerian regulated pension industry increased by 23.7percent year-on-year (y/y) in February to N7.79trillion ($25.5billion).

They are growing at a reasonable rate yet, at just 6.9percent of 2017 GDP, are running well behind many emerging markets.

Nigeria was relatively late (2004) in introducing legislation creating a sound structure for regulated pensions.

Strong and forward-looking leadership has not always been forthcoming from the regulator, so we have to view its target of 30percent coverage of the workforce by 2024 as ambitious.

The industry’s holdings of FGN paper amounted to 69.7percent of their AUM in February, compared with 72.3percent one year earlier. The beneficiary has been domestic equities, the share of which gained 1.9percent over the 12-month period.

The role of the PFAs in local debt markets remains pivotal. Their holdings of FGN bonds at end-February represented 45.5percent of the stock of the instruments at end-December.

PenCom’s latest data do not point to a surge of investment in domestic equities. The NSEASI rose by 71.1percent in the 12 months to end-February while AUM in the asset class increased by 54.8percent over the same period.

The decline in yields on FGN paper since mid-2017 could lead to a change in asset allocation by PFAs. The share of AUM invested in equities has risen but we are not witnessing a sea-change.

The generally average results of listed companies other than tier-one banks militate against such a change.

We understand that conversations are taking place between the FGN and the PFAs to persuade them to invest in priority infrastructure projects through a SPV structure.

Investors require attractive terms relative to those on exposure to other asset classes.

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Thursday 26 April 2018

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United Capital investment views

Investor’s Square

NSE ASI skids into 0.3% week-on-week loss …as first-quarter 2018 earnings trickle in

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omestic equities closed last week 0.3percent lower at 40,814.9points.

The market opened the week in review on a bearish footing and did not break the trend despite the marginal gains recorded on two of five trading days.

Thus, market capitalisation shed N41.1bn to N14.7tn while year-to-date (YtD) return depreciated 6.7percent.

Sector indices’ performance tracked the overall bearish theme in the market as three of five sector indices closed the week lower, led by the Agriculture (-5.7percent) index owing to declines in PRESCO (-8.3percent), LIVESTOCK (-7.8percent) and OKOMUOIL (-3.3percent). The Industrial Goods (-3.6percent) and Consumer Goods (-0.5percent) indices also trailed along as t h e d ow nwa rd t re n d i n DANGCEM (-4.0percent), INTBREW (-5percent), FLOURMIL (-4.9percent) and NB (-3percent) dragged the indices. Consequently, only the Oil & Gas (+7.8percent) and Financial Services (+2.5percent) indices drifted northwards consequent on appreciation in OANDO (+39.1percent), S E P L AT ( + 5 . 6 p e r c e n t ) , SKYEBANK (+18.8percent), UNITYBANK (+14.4percent) and UBA (+5.2percent).

I n v e s t o r s’ s e n t i m e n t remained afloat despite selling pressures in the market as market breadth closed at 1.1x (formerly 1.1x); 35 stocks advanced while 31 declined.

Activity levels also defied all odds to close the week higher as average volumes traded rose 112.6percent to 601.6million units while average value traded ascended 54.2percent to N6.1billion. We expect investors’ sentiment to be guided by the flurry of Q1-18 earnings declaration during the week.

Money Market: CBN tapers OMO clearing rate amid sizable demand System liquidity was awash with cash in the week ending 20th April 2018, as money market rates averaged 3percent (Previous week: 3. 1percent).

The weeks’ liquidity profile was keep afloat by maturities to the tune of N349.2billion (OMO issuance maturities of N276.1billion and Primary issuance maturities of N73.1billion) and inflows from bond coupon payments (c.

N33bn on the 2037 bond).

On the tightening end, only one OMO auction was carried out throughout the week; the auction saw a robust demand of N887.0billion (bid-cover: 2.2x) that was filled by only 56.4percent at an average stop rate of 11.4percent (previously: 13.1percent). The CBN also

carried out FX interventions (to the tune of $210million in the wholesale, SME and invisibles segment of the market). In terms of liquidity profile, N226.7billion maturing bills are expected to hit the system this week. The DMO is scheduled to hold its monthly auction on the 25th of April, with a total offer amount of N90billion – split equally across the 5,7 and 10year issues.

Fixed Income Market : Reduced fiscal paper supply and boisterous system liquidity incentivize the Fixed Income bulls During the review week, the CBN sold N58.5billion (just 50percent of maturing Nigeria Treasury Bills (NTB’s), in line with its strategy of reducing its domestic debt portfolio. This strategy was also highlighted in the released Debt Management Office (DMO) borrowing calendar for Q2-2018 which showed an issuance of circa N175billion -

witnessed relative stability in the week ending 20th April after trading sideways in the parallel and official market all through the week. The parallel market closed at N361.5/$1 while the official market ended at N305.6/$1.

In another theme, the naira depreciated lightly by 9bps in the Investors and Exporters Foreign Exchange window to settle at N360.4/$1. The outlook of the naira is expected to remain tied to the spate of CBN’s intervention in the spot and forward market.

Global equities eke out weekly gains amid inflow of economic data and Q1-18 earnings Maj o r e q u i t y i n d i c e s across the globe advanced in the week to end 20th April, 2018. U.S. equities rose for the second consecutive week as retail sales expanded 0.6percent in March after weathering three straight declines. Also, continued

RSA fund price of PFAs as at April 20, 2018 S/N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

PFAs CrusaderSterling Pensions Premium Pensions ARM Pension Mgrs.

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

IEI Anchor Pension Managers Radix Pension NPF Pensions

N265billion compared to over N300billion in bond maturities over the quarter. Consequently, the reduced fiscal paper and boisterous system liquidity triggered belligerent bargain hunting across the yield curve.

Average T-bill yield shed 170bps week-on-week (w/w) to close the week at 12.2percent currently at 2-year lows (91day, down 272basis points (bps) to 10.5percent, 182-day (down 285bps to 11.5percent) and the 364-day (up 48bps to 14.8percent). In a similar theme, average bond yield fell by 56bps to end the week at 12.9percent (two-year low).

Generally, we believe sentiment in the FI space is tied to whether or not the CBN retains its prior tightening stance via OMO auctions. However, given that most instruments are trading below 13percent, we are likely to have a mixed market this week.

Currency Market: Naira establish sense of balance; closes flat in the parallel and official market T h e c u r re n c y ma rke t

CURRENT PRICE 3.9405 3.8814 3.8370 3.7302 3.5611 3.4081 3.3779 3.2401 3.2088 3.0994 3.0908 2.9898 2.7651 2.6784 2.6495 2.6025 2.5038 2.4304 2.3011 2.0063 1.4447

decline of initial jobless claims to 232,000 and most importantly, the swath of Q118 earnings numbers drove the DJIA (+0.4percent w/w), S&P 500 (+0.5percent w/w) and NASDAQ (+0.6percent) to positive territories w/w.

Across Europe, investors welcomed the decline in UK’s inflation to 2.5percent, the lowest in twelve months, lowering the expectation of an interest rate hike by the Bank of England. Thus, France’s CAC (+1.8percent), UK’s FTSE (+1.4percent), Germany’s DAX (+0.8percent) and Pan-European STOXX (+0.7percent) all ended the week higher.

Emerging markets indices also received a boost as Russia’s RTSI (+3.7percent) led the BRICS classification while South Africa’s JALSH (+1.8percent), Brazil’s IBOV (+1.4percent) and India’s SENSEX (+0.8percent) trended along. Despite expansion of China’s economy 6.8percent y/y in Q1-18, China’s SCHOMP (-2.8percent) declined w/w.

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

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

E-mail: iheanyi.nwachukwu@businessdayonline.com

Nigerian Breweries Q1 results throw negative surprises …FBNQuest research expects stock to underperform NSE ASI

he Board of Directors of Nigerian Breweries Plc recently released the company’s first quarter (Q1) 2018 results. The unaudited and provisional results released to the Nigerian Stock Exchange (NSE) show profit after tax (PAT) of N10.2billion, which represents 11percent decrease over the N11.4billion recorded in the corresponding (Q1)

yet to be reflected in consumer spending” Results from operating activities declined by 8percent, from N19.2billion recorded in Q1 of 2017 to N17.7billion in Q1’2018. Profit before Tax (PBT) also decreased by 12.6percent, from N17.4billion in 2017 to N15.2billion in the Q1 period under review.

“On an annualised basis, Q1 sales are 11percent behind consensus full year (FY) estimate. However, PBT is well on track to

continue to down-trade to economy brands”, adding that they would look to Nigerian Breweries management for further clarification.

“On the back of these results, we expect to see a neutral reaction from the market. Nigerian Breweries shares have declined by 3.9percent this year and have underperformed the NSE All Share Index (ASI) which is up 6.6percent. We rate the shares Underperform.

Our estimates are under review,” according to

period in 2017.

The company’s revenue also decreased by 9.1percent, from N91.3billion recorded in Q1’2017 to N83billion in Q1’2018. The share price of Nigerian Breweries Plc at N125 on Tuesday implies a decline of 7.3percent from year-open price of N129.70.

In a filing statement to the Nigerian Stock Exchange by the Board of Directors, the company said “while there are some signs of improvement in the macroeconomic conditions, these are

meeting consensus’ FY PBT estimate of N55billion. According to Heineken’s (NB’s parent) trading statement, unit volumes for the group grew by high single digits due to growth from a number of countries including Nigeria”, Tunde Abidoye’s team of research analysts at Lagos-based FBNQuest said in their April 24, 2018 note to clients.

They analysts believe that the Nigerian Breweries topline was reflective of a weaker price / volume mix skew “as consumers

FBNQuest research analysts.

‘Underperform’ rating for the stock, implies that the analysts expect the stock of Nigerian Breweries to underperform the NSE All Share Index over the next twelve months.

Uaboi Agbebaku, Company Secretary/ Legal Adviser, Nigerian Breweries Plc in a statement said “the Board remains confident that the Company has a clear strategy to deliver a good return on investment for its shareholders”.

IHEANYI NWACHUKWU

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Analysts see significant upside potential in Seplat stock price … United Capital research sees bull case price at N1025.6 …as Vetiva sets target price of N973.68 IHEANYI NWACHUKWU

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eplat Petroleum Development Company Plc held its 51st Board meeting on Thursday, 19th April 2018 where the board reviewed and approved the company’s first-quarter (Q1) 2018 Financial Results for the period ended March 31, 2018.

In line with Section 1.1 of the Rules Relating to Board Me e t i n g s a n d G e n e ra l Meetings of issuers, there is an obligation on the Issuer to notify the Exchange within twenty-four hours after the relevant Board meeting of the key decisions taken by the Board.

T h e Ni g e r i a n S t o c k Exchange (NSE) was told that the results were duly considered and approved by the Board of Directors and will be filed with the Exchange on April 30, 2018 while a decision was made in relation to the declaration of interim dividend payment to the shareholders.

Ahead of the first-quarter (Q1) results, aot a few analysts believe SEPLAT is in a strong financial position considering its more flexible credit terms and a favourable cash generating outlook.

Just recently, SEPLAT announced key milestones in its debt restructuring programme. One is the successful refinancing of its existing (LIBOR + 6percent) $300 million Revolving Credit Facility (RCF) due December 2018 ($120 million drawn down as at FY’17) with a new four-year $300 million RCF due June 2022, priced at LIBOR+6percent. Two is the issuance of a $350 million senior note due 2023, priced at 9.25percent.

Upon completion of the refinancing on March 21, 2018 SEPLAT’s gross debt amounted to $550 million.

“We highlight a couple of positives from the programme. To start with, whilst the pricing on the new RCF remains unchanged, the 9.25percent pricing on the senior note is cheaper than the existing Term loans (priced at LIBOR+8.75percent) especially in light of the hawkish global interest rate outlook. Going by the new

Source: United Capital Research

pricing, we cut our FY’18 interest expense forecast by 12percent to $49million.

Meanwhile, with the RCF maturity date now extended to FY’22 (Previous: FY’18), ou r p o st- 2 0 1 8 i nt e re st expenses are revised higher due to the resulting new streams of payment on the facility. Overall, the refinancing programme presents modest net positive impact on interest expense over the medium term through FY’22”, according to Tominiyi Ramon-led team of equity research analysts at Lagos-based Vetiva Capital.

In the analyst’s view, S E P L AT a p p e a r s t o benefit more from the liquidity ease that berths with the programme. “Exrefinancing, $265 million of outstanding debt balance should have matured by FY’18. Also, SEPLAT’s debt repayment is now more flexible, stretching up to FY’23 versus the previous FY’21. We see this liquidity ease particularly valuable considering the expansion plans in SEPLAT’s pipeline in the short to medium term, even as SEPLAT is just recuperating from earnings slump in recent years. Our view on the c o m p a n y ’s o p e r a t i o n s remains positive, buoyed by cautiously optimistic outlook on stability in the Niger Delta region, increasing gas volumes and stable oil prices”, Vetiva analysts noted. They also placed a ‘Buy’ rating on Seplat stock with a target price (TP) of N973.68.

Seplat is among the four new entrants into the

Nigerian Stock Exchange elite board –the Premium Board. As at Monday April 24, 2018, the share price of the company reached a 52-week high of N737.10.

Its market capitalization is in excess of N433.7billion with 588,444,561 shares outstanding.

Ahead of the first-quarter (Q1) results of S eplat, Olayinka Odedeyi-led team of research analyst at Lagos-bas ed United Capital initiated coverage report on Seplat Petroleum Development Company Plc where they also rated the stock ‘BUY’. Their Target Price (TP) for the stock is N867.7, which implies 17.7percent upside from its current price. The analysts expect return of 20.8percent on the stock.

The analysts ‘Buy’ rating for Seplat stock is based on their valuation and subjective view, which implies that the total return upside on the stock’s current price is greater than the

Source: BusinessDay Investor

analysts estimated cost of equity.

“Our TP of N867.7 ($2.4) is derived using the Net Asset Value (NAV) Methodology.

Stressed for an oil price of up to $70, SEPLAT’s bull case price stands at N1025.6 ( $ 2 . 8 ) . Fu n d a m e n t a l l y s p e a k i n g , S E P L AT h a s promising prospects that point to a run-up in its shares if all falls in place,” the analysts further added.

United Capital analysts in their investment case said, “We are constructive on strengths steaming from a more consistent outlook on oil and gas production, braced by a more stable security environment in the Niger Delta, and a l e s s -v o l a t i l e o i l p r i c e environment. With SEPLAT trading at a 2018 P/E of 6.5x (versus comparable peers 11.0x), we believe the stock offers significant share price upside potential”.

ABC Orjiako, chairman Seplat said “We promised the market when we came

that we would be adding value growth in terms of capital growth and that we have delivered and that is what the elevation to Premium Board has shown.

We promised them we would be a profitable company and we have maintained that over the years. We also promised that we are going to be a company that is well run; that we have delivered.

We said we are going to grow the company organically, we promised we are going to be a profitable and dividend paying company; that we have delivered. We will acquire asset, we would grow our production, and all these we have done phenomenally.” “ We s a i d w e w o u l d commercialise and monetised gas and we are doing that. Obviously, if you are following the trend of our performance you will see that the gas revenue is growing Year on Year (YoY),” Orjiako added.

SEPLAT has four clear strategies over the next few years : to maximise production and cash flows from its existing assets; to Increase its reserve base and develop and commercialise its 2C resources into 2P reserves; to commercialise gas reserves and production to grow market share in Nigeria’s growing gas market; and to pursue a focused acquisition strateg y to selectively acquire interests in assets with potential for strong return-on-investment (RoI).

SEPL AT has interests in 6 onshore oil and gas assets in the Niger Delta area; a financial interest in OML 55, as well as 5

working interests in OMLs 4, 38, 41, 53 and OPL 283.

In 2015, SEPLAT concluded negotiations to purchase 56.3percent of BelemaOil Producing Limited (BelemaOil) – a Nigerian Special Purpose Vehicle that had purchased a 40percent interest in OML 55. In 2016, SEPLAT agreed to a new commercial arrangement with BelemaOil, in which SEPLAT is to relinquish all control over the entity in return for a discharge sum of $330million to be paid to SEPLAT effective 2017, through the allocation of crude oil reserves from OML 55.

The company has a 45percent working interest in OML 4, 38 and 41; a 40percent working interest in OML 53; and a 40percent non-operating working interest in OPL 283 Marginal field Area (Pillar).

In terms of OML 55, SEPLAT and BelemaOil are joint operators of the block on behalf of the NPDC/Seplat/ BelemaOil Joint Venture.

Early last month, S&P Global Ratings assigned its preliminary ‘B-’ long-term issuer credit rating to Seplat Petroleum Development Company Plc. The outlook for the Nigeria-based oil and gas producer is positive.

At the same time, S&P assigned its preliminary ‘B-’ issue rating to Seplat’s $500 million senior unsecured notes.

Oil demand is primarily driven by global increases in urban population – especially in emerging markets. This growth drives household incomes and translates to higher consumption of the commodity through the use of cars, airplanes, ships, among others.

Seplat’s business is highly dependent on the demand and supply dynamics of oil and gas. Oil prices gave up earlier declines Monday to settle higher, as reports that a Saudi-led air strike killed the head of the Houthi rebels in Yemen raised the potential for disruptions to the flow of crude in the Middle East.

June Brent crude LCOM8, +0.29% on Monday tacked on 65 cents, or 0.9%, to $74.71 a barrel on ICE Futures Europe, reversing course after touching a low of $73.13.

BUSINESS DAY

Thursday 26 April 2018

19

CITYFile Family demands N500m over extra-judicial killing

T L-R: Rickett Odebode, medical officer, Office of the Chief of Staff, Governor’s Office Clinic; Olatunji Disu, commander, Lagos State Rapid Respons Squad (RRS), and Adeboye Olanrewaju, assistant medical director, during First Aid training section for men of the RRS at the RRS headquarters in Alausa, Lagos.

Police confirm killing notorious kidnapper in A/Ibom ... as robbery kingpin arrested in Bayelsa ANIEFIOK UDONQUAK, Uyo

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he police in Akwa Ibom State have confirmed the death of a notorious kidnapper and member of a criminal gang said to have been terrorising the people of Ukanafun and Etim Ekpo local government areas of the state.

The police said the criminal identified as Isaac alias ‘Stainless’ was gunned down during an exchange of gunfire between members of his gang and policemen attached to the Akwa Ibom police command.

Stainless was said to be the successor to Akaninyene Jumbo, also a notorious criminal and gang leader who was shot dead by the police in January.

Adeyemi Ogunjemilusi, the Commissioner of Police (CP), Akwa Ibom command who confirmed the killing of Stainless to journalists, on Tuesday, explained that following the death of Jumbo, Stainless led

other hoodlums on a revenge mission and unleashed terror on the two local government areas, killing, maiming, raping, kidnapping and issuing threats to the people and burning houses at will.

According to Ogunjemilusi, security agencies in the state thereafter re-strategised and mounted massive operations against the criminal gang ‘’ which led to the arrest of many of the hoodlums.’’

“The efforts of the command received a major boost on Wednesday 18 April, 2018 with the death of “the most brutal” gang leader known as Stainless by his victims was shot in serious exchange of gunfire.’’

The police chief said with the death of the gang leader an end has been put to the reign of terror by the gang in the two local government areas. He explaining that the command has chosen to parade his corpse to “demystify his invisibility and re-assure the people of Etim Ekpo and Ukanafun local government areas of their safety to encourage

those who have fled the area to return home.”

He said there had so far been an improvement in the security situation in some towns including Ikot Ekpene, the Ibom Plaza, Eket and many areas across the state noting that there would be no hiding place for criminals including cultists in the state as many of them have been put behind bars.

“They are mainly responsible for the heinous crimes in the state. We are aware some of them have moved their activities into the forest but even there, we would smoke them out. Arrangements have been concluded with authorities of higher institutions and students’ unions to fish them out and restore the glory of the various institutions,’’ the CP said.

In Bayelsa State, the police said they have arrested a suspected kingpin of a notorious armed robbery gang and recovered arms and ammunition in his apartment.

The command’s spokesman, Asinim Butswat, said that operatives of the Federal Special Anti-Robbery Squad (FSARS) at Ovom, Yenagoa, arrested the suspect on Monday.

Libya returnees protest in Benin, want task force disbanded IDRIS UMAR MOMOH, Benin

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embers of Libya returnees in Edo have called for the immediate disbandment of members of the taskforce against human trafficking and illegal migration by the state government and reconstitution of a new body.

The protesters armed with placards also called for the immediate withdrawal of case instituted against one of the returnees, Jude Ikhuenobe by the chairman of the task force, Yinka Omorogbe, who is also the attorneygeneral and commissioner for justice in Edo. The protesting returnees said Jude Ikhuenobe was unlawfully arrested by the task force on March 9, 2018, at the National Museum ground for ventilating his anger and frustration over the committee ‘s alleged selective empowerment of some members.

Some of the inscriptions the placards displayed by the protesters on read “Governor Obaseki please reconstitute the taskforce committee”, “Edo State taskforce against human trafficking defrauding Libya returnees, stop defrauding Libya returnees” Spokesperson of the group, Amawu Osariemen, also wants the state government to investigate the alleged selective empowerment by the committee. Osariemen explained that the protest was occasioned by the alleged systematic delay and diversion stipend meant for the returnees.

They demanded to know the criteria used in arriving at higher stipend for some returnees as against N2,800 paid to majority of them.

“Sir, the payment of monthly stipend that you have approved for the Edo returnees and training is highly commendable, but, we want to use this medium to draw your

attention to some of the fraudulent activities by members of the task force in connivance with some staff of Heritage Bank to shortchange some of our members.

Reacting, Solomon Okoduwa, senior special adviser to Edo State Governor on taskforce against human trafficking and illegal migration described the allegations as untrue. Okoduwa noted that the empowerment was done in phases adding that those yet to benefit should exercise patience with the state government and the committee.

“We are not giving selective empowerment to any of the Libya returnees. We give equal empowerment to all of them. The empowerment is in phases, and we are definitely going to get to all of them. Those protesting are not properly informed. They should have asked questions before embarking on the protest”, he said.

he family of Henry Dokotri, allegedly killed by the Police Special Anti-Robbery Squad (SARS) has sued the Inspector General of Police (IGP) demanding N500 million as compensation over the death.

The case, filed at a Jos High Court by father of the deceased, Victor Dokotri on Tuesday, is for the enforcement of the right to life and dignity to human person in line with sections 33 and 46 of the 1999 constitution.

The family also urged the court to enforce article 2, 3 and 4 of the African Charter on Human and Enforcement Act. Dokotri prayed the court to declare that the incident that led to the death of the victim deprived him of his right to life and human dignity and grant the family N500 million as compensation.

The plaintiff also want the court to declare that the torture and killing of Henry by the SARS operatives on the claims of possession of Indian hemp was a violation of his right to fair hearing as guaranteed by the 1999 Constitution.

The family told the court that on January 18, Henry, 30, a graduate of Maritime Academy, Oron, Akwa Ibom State, was allegedly killed at Dorowan Zawan village, Jos South, by men of the special anti-robbery squad.

Other respondents in the suit include the Nigeria Police Force, Plateau Police Command, SARS in Plateau and the Commissioner of Police in the state. Other police officers joined in the suit include John Ugbaje, Edekin Aigbekiem, Reuben Deshi, S Abobo Erim and Christopher Adamu.

Counsel to the defendants, James Adokwu and J.A. Idoko prayed the court to give the defendants time to respond to the suit filed against them.

A’Ibom records increase in tourist facilities ANIEIOK UDONQUAK, Uyo

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he tourism industry has received another boost as an international firm, Tunas and Partners Consultancy has opened an outlet in Uyo, the Akwa Ibom State capital.

Speaking at the event, head of business development, Uduak Kufre Shilling Paul said that the company which is operational in 13 other countries around the world sees Akwa Ibom as a destination because of the progress made in the tourism and hospitality sector in the state. She also listed the several tourist attractions in the state as one of their motivations.

“We are doing business in about 13 countries, we have decided to operate here in Akwa Ibom because there is growth and potential in the industry, I mean tourism, hospitality, ticketing and studying overseas.

It is our honest desire to add colour to the industry as we have arrived” Responding to the development, the AKwa Ibom State commissioner for culture and tourism, Victor Antai commended Tunas and Partners for having discovered what he referred to as pure gold (tourism sector) in the state.

The commissioner expressed satisfaction, noting that the firm would close the gap between the international community and the tourism/ hospitality industry in Akwa Ibom.

“It is such a pleasure that we are having companies like this spring up in Akwa Ibom at this time,” Antai said.

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BUSINESS DAY

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Thursday 26 April 2018

How govts can grow nonaeronautical revenues in airports Isabel Zarza, managing director, Dufry Africa, a global travel retailer, manages duty free stores in eight airports in Africa where Dufry operates. These eight countries include Cape Verde, Morocco, Algeria, Egypt, Kenya, Ghana, Ivory Coast and Nigeria. In this exclusive interview with Ifeoma Okeke, she speaks on strategies governments across Africa can use to grow revenue.

How long have you been managing duty free stores within these airports? t depends on the countries because in some countries, we have been for a long period of time and in some other countries, we are quite new. We have been in Africa for more the 20years.

What is the shopping culture like in airports across Africa?

When you talk about Africa, it is a big continent. The profiles of passengers are not the same in the north of Africa, South of Africa and the central Africa. In the North of Africa, you will have more passengers from the Europe and very frequent fliers. They are looking more for souvenirs and products that are cheaper in Africa than in Europe.

For Nigeria, we offer perfumes and cosmetics and we have exclusive brands. Textiles, spirits and tobacco are the key categories that people look for.

How do you think an airport can be structured to attract nonaeronautical revenues?

Airports are looking at increasing the non- aeronautical revenues because that is the way they can increase the plane tickets and increase the number of passengers.

The way they can do it is to have duty free walk through shops. This means that in order to arrive to the gate, you need to go through the shops. It will also be important for us to have only one entrance.

For example, in Nigeria currently, you have two entrances to the airport. This means you are dividing passengers and cannot attract them to the same offering.

You need to duplicate the offering and that is not convenient. So, if you have one only entrance with one walk through shop, it will be much better because revenue will increase for everyone.

The other thing is to be flexible with the operatory in order to be able to sell the products based on the analysis that we do with passengers. Basically, we analyse periodically what they buy and we compare the nationalities that we have in the airports where we operate to find out what we need to introduce. Most importantly is to have a good relationship between the duty free operators and the airport authorities in order to be flexible and to meet the customers’ needs.

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Isabel Zarza

Don’t you think just one walk through shop will be inconvenient for passengers, considering a surge in passenger traffic?

We have this working in some airports. They have built one single entrance with one walk through shop. It is very important to take into consideration that airports need to increase the number of passport controls and security controls, so you expedite the way passengers go into the shops and into the airport. For the shops, if you have wider corridors and that is perfectly done, it will not be a problem. The problem is the security and customs. We need to have sufficient number of them in order to be able to go through.

As an expert in this field, what do you expect an ideal airport to possess in a bid to promote the shopping and retail culture?

Most importantly, there should be a good relationship with operators so that they will be able to be flexible. It is important to understand the passengers’ profiles so that it will be important for them to tell the operators what can be expected so they can also adapt to the customers that will come. It is important to be open to have duty free but it is important to also have

only one duty free. Nigeria has two duty free and that sometimes has a lot of competition but in a bad way because it is a price fight between the competitors. It is really important to have a good walk through shop and to have proper investment within the shop.

Africa Retail Development Index has it that the number of Africans patronising retail outlets has continued to increase by 20percent annually. Can this patronage be said of retail outlets across African airports as well?

There is a huge opportunity for development at the airport. I think we are still in the early stages.

First of all, we need to develop a beautiful walk through shop but it is important to increase the types of shop. In Nigeria, you also have an example because you don’t only have the duty free shop but specialty retail, which is also increasing. Passengers are willing to really buy at the airports. They need to arrive two hours before their flights and once they are in the airside, they have that free time to shop.

How do you make airports attractive for non-flying publics?

In Africa this is very difficult because most African countries do not allow non-flyers to enter

into the airport. In Europe and in other countries you are able to enter. There are also countries in Africa where you can enter into the airport as non-flyers but most of them, you cannot. You cannot make an offer attractive for people who are not going to fly. In Europe, you have that mostly on the arrivals because when you fly and depart, you want to go but when you arrive, you have meeters and greeters and people who go to meet their relatives. So, that is where you can have convenience shops where you see newspapers and flowers.

Do you think Africans need to review this system?

This depends on the security of each country. I am thinking it is something they can develop so that people will be able to enter into the terminal. It is important to understand that security is key and for that reason, I understand they do not want people coming into the airport if they do not want to fly.

What is the future of tax free shopping across Africa given the ban on the sale of cigarettes, and alcohol or the limitation of transport of purchases by air carriers?

The proposed ban is out of place and we are trying to fight against it. What the World Trade Organisation is saying is that they want to ban tobacco being sold illegally and we understand that.

In the duty free shops, we are not selling tobacco illegally, it is totally legal and it is the right way to do it. If passengers don’t buy tobacco at the airport, they will buy it somewhere else and that money is not going to the airport authority and not adding to the country’s revenue. An average of 33percent of the total sales at the airport in Africa is from tobacco.

This could be higher or lower depending on the country. If tobacco is banned, the non- aeronautical revenues from the retail side will be banished from the airport. This will make it difficult for airports to increase non- aeronautical revenues if tobacco is banned.

The World Trade Organisation is talking with the government and when government says they want to ban illicit trade of tobacco, that is good but it is important to understand that duty free is legal.

That is why it is important to work with airport authorities and governments in order to make them understand that duty free is legal.

We control what products go into duty free shops.

What is the percentage of nonaeronautical revenues as against aeronautical revenues in Africa?

Non- aeronautical revenue in all African countries is reduced compared to what it is in Europe.

In Europe, we are arriving 30 to 40percent of non- aeronautical revenues as against aeronautical revenues. In Africa, we are below 20percent. The reason for this is that retail is not yet well developed.

We need to invest in this part of retail. It is important to develop retail is African countries. There are new terminals that are being built in Nigeria. We need to work with Federal Airports Authority of Nigeria, (FAAN) to build the perfect shops in the new terminals.

What are the non-aeronautical areas we can leverage on to grow the economy?

Non- aeronautical areas include shops and food and beverage. We can also improve the packing and VIP lounges amongst others.

How can tax free shops leverage on the diverse cultural backgrounds of passengers in an airport to sell their products?

It is actually very difficult because in an airport, the difference between the duty free and the retail is that in retail you know the customers are at the receiving end. You are in an area and you know people you are dealing with are people in a surrounded area of people in the country. For duty free, you are dealing with people all over the world, so it is a quite difficult to have one offer that suits everyone.

So, we try to adapt the offer based on the nationalities or based the destinations of the passengers.

How can the government create a favourable working environment for tax free shops and retailers to operate and make profits at airports?

For the government, it is important to know that you can do duty free both at the airports and the borders with the other countries.

Government can make customs easy in order to be able to sell the products. VAT is something that shouldn’t apply to the duty free products because they are going outside the country. It is not for consumption internally. In terms of regulation, they can also help with the duty free licences. Also they should fight against bans that don’t make any sense to the industry.

Innovation

Apps

Fin-Tech

Start-up

Gadgets

Ecommerce

IOTs

Broadband Infrastructure

Bank IT Security

21 AgriTech startup, Farmcrowdy woos Nigerians in Diaspora BUSINESS DAY

Thursday 26 April 2018

FRANK ELEANYA

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igeria’s agriculture technology (agritech) startup, Farmcrowdy has moved to woo Nigerians based in the United Kingdom, to invest in agric opportunities back home using their mobile phones.

Established in 2016, the company which currently has an active sponsorship base of 1,000, said it has seen total investments from Nigerians living outside the country into its platform rise to over £1.62 million.

Majority of the overseas sponsors reside in the UK. Interestingly, Diaspora remittances from the UK to Nigeria which is about £4 billion annually, is the fourth largest source.

Onyeka Akumah, cofounder of Farmcrowdy explained that the UK being home to over 1 million Nigerians makes it the ideal market to provide alternative investment portfolio.

“Farmcrowdy is reshap-

ing the way in which people participate in farming and food production through using their online and mobile platforms, and predicts that hundreds more Nigerians based in the UK will look to invest their money

Crypto firm, Luno is UK’s fastest growing tech start-up of 2018 FRANK ELEANYA

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uno, a cryptocurrenc y company with outpost in Nigeria and other emerging markets, has emerged the 2018 fastest growing tech start-up in the United Kingdom, according to organisers of the Tech5 awards.

Te c h 5 i s a n a n n u a l competition organised

by TNW and Adyen. The competition showcases and awards the fastest growing companies by revenue in six key European markets.

According to Katherine Suy, a media representative for Luno, “There has been a massive spike of interest in digital currencies globally. We believe this to be a result of customers reevaluating their options, and reimagining financial potential. We want to upgrade them to that world where money is cheaper, faster and safer. This is a world where transactions are private, yet transpar-

ent. We are giving our customers a vehicle to reach this world, and the tools to enable financial freedom; tools that are interoperable and programmable, with open, equal access for everyone.”

As the UK champion, Luno will be competing against Tech5 winners from Germany, The Netherlands, Spain, France and Sweden for the title of “Fastest growing tech company in Europe. The winner will be unveiled at The Next Web Conference 2018, on 24 May 2018.

“Our team have been working tirelessly over the last few years and have been laser-focused on providing the best service for our customers. Not only are we really proud to see that recognition paying off, it has further ignited our purpose by validating our role in the future of money.”

Luno provides cryptocurrency services including buying and selling of bitcoin and Ethereum.

into the country’s estimated £30 billion agricultural sector, thanks to the strong returns on investment, and the fact that technology is not breaking down barriers to investment and engagement,” Akumah said

in a statement released to BusinessDay. He also added that Farmcrowdy has addressed the problem investors usually have in agritech in terms of tracking the progress of crops or guaranteeing

that payments would be made. The company, he said, provides a safe, trusted platform where farmers and sponsors can interact via their mobile phones.

To sponsor a crop cycle, investors can start with as

low as £175 (N90,000). A crop cycle can be anything from poultry (3-5 months) to cassava (9 months). The farmers receive on-theground advice from farm specialists – training in better agriculture practices, different types of crops and production methods. When the yield is sold at harvest, the sponsor receives their orginal investment +40 percent of the profit, the farmer receives 40 percent of the profit and Farmcrowdy receives 20 percent of the profit. Sponsors of farms can get between 6 to 15 percent on their returns.

“The scale of the Nigerian agricultural sector is huge,” Oyawale Olusola, VP Investment and Corporate Governance, Farmcrowdy, said. “There are currently around 30 million small scale farmers who are unbankable. Our mission is to connect them with sponsors who are interested in farming, and who want to invest in the market.”

Farmcrowdy presently has 10,000 acres of land and 7,000 farmers signed up from 9 states in Nigeria.

AI-startups dominate global VC market in Q1 2018 FRANK ELEANYA

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tart-ups that are into artificial intelligence (AI) t e c h n o l o g y attracted the most venture capital (VC) investment in all regions of the world in the first quarter of 2018, according to KPMG report.

The ‘Venture Pulse Q1 2018: Global analysis of venture funding’ report noted that AI is seen as one of the most transformative technologies in existence, with broad reach and applicability across industries and verticals.

It identified the financial services sector as the hungriest for AI solutions; hence it has been at the forefront of AI usage globally. Nigerian financial institutions and fintech firms are increasing their adoption of AI technology to enable them provide more efficient and convenient ser vices to customers.

Healthcare is gaining momentum due to the significant diversity of

the healthcare related AI capabilities being developed.

“O ne of the bigg est roadblocks to strong AI offerings seen over the past few quarters has been the availability and quality of data to teach AI effectively,” the report noted. “To help address this, a number of companies have been conducting strategic acquisitions in order to gain the right data in sufficient quantities they need to better train their AI solutions. It is expected that AI will only continue to gain momentum in the

foreseeable future.”

The momentum nonetheless, a new study conducted by the RAND Corporation said AI might have a different impact on segments like the military.

According to RAND Corporation military adoption of artificial intelligence and other emerging technologies could have a destabilizing effect over the next couple of decades, and lead one nation to take the nuclear option.

The KPMG report also disclosed that investment into blockchain technology saw an increase in

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

the first quarter, despite scepticism from different parts of the world.

“During Q1 2018, there was a significant increase in discussions, particularly among corporate, as to the ability to use blockchain technologies in both supply chain and logistics. For example, some began by using it to increase traceability and ensure products are transported according to regulatory requirements.

The market for blockchain is well positioned to continue to mature and expand with progress beyond use cases expected by the end of 2018,” the report noted.

In 2017, blockchain investments grew beyond digital currencies, with many of them channelled towards supporting use cases in areas like payments and remittances.

Although the US and UK markets accounts for the majority of these investments, other countries have also witnessed significant growth in blockchain investment.

22

Luxury

BUSINESS DAY

Malls

Companies

Deals

C002D5556

Thursday 26 April 2018

Spending Trends

Stiff competition among diaper manufacturers benefits Nigeria’s child-bearing couples STEPHEN ONYEKWELU

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igeria’s child-bearing couples are reaping the benefits of fierce comp e t i t i o n a m o ng diaper manufacturing companies, which is crashing prices and introducing affordable smaller sales units.

The United Nations Children Emergency Fund put annual childbirth in Nigeria at 5.9 million. By the time you finish reading this article, about 35 newborns would have been added to Nigeria’s population, swelling the baby diapers market size by another 35.

Some baby diapers, nappies and pants brands in Nigeria are subsidiaries of some multinationals such as Procter and Gamble, P&G (makers of various pamper brands, like Pampers, Pampers Baby dry, Swaddlers sensitive and cruisers dry) and Hayat Kimya (makers of Molfix) as well as Wemy Nigeria Limited, manufacturers of Dr. Brown, Huggies, produced by Huggies Nigeria and other fringe players like Cuddsies diaper, produced by Rainbow Fame Industries, RFI, Taiwan, imported into the country, Tourjour among others.

Competition in Nigeria diaper market is spurring innovation among retailers who now break down units to a level where consumers buy three diapers for N150. This is putting pressure on market leaders like Pampers, Huggies and Hayat, but they have no plans to compromise on quality in response to competitive strategies of fringe players in the market.

Fringe brands have broken into the market with smaller units,

where consumers buy three pieces of diaper for N120, which is resold by roadside store owners for N150, while those of leading brands are sold N100 for a single diaper (N300 for the three units).

“This is indeed a positive development because it will make diapers more affordable and accessible to more people” Loise Ogbonna, a mother of two told BusinessDay. According to Euromonitor, a market intelligence firm, nappies, diapers pants in Nigeria saw

volume growth of 6 percent and current value growth of 16 percent in 2015. While this growth is driven by the increase in urban populations (who are more likely to use such products than rural residents), the increase in women in formal working environments, and a growing baby population, growth in 2015 was also supported by marketing activities and the increased visibility of a wide range of brands.

From only one dominant brand about 15 years ago (Pampers),

there are now numerous brands on offer in Nigeria. Sales of nappies, diapers, pants in Nigeria are also very low in per capita terms, with a usage of only 60 units per child per year compared to 1, 204 in North America and 959 in Western Europe. This means it is a developing category with strong growth prospects.

Nappies, diapers, and pants are expected to see a strong performance in value terms over the next 10 years with a compound annual growth rate (CAGR) of 7 percent

at constant 2016 prices. Growth in the baby population, as well as in the middle-income population, and rising brand awareness will help drive growth over the forecast period.

In volume terms, nappies, diapers, pants are expected to grow at a CAGR of 7 percent, to reach 2,070 million units by 2020. If the infrastructure supporting local production is improved, particularly the electricity supply, and if import tariffs are not lowered to favour imported brands, local players will be much more capable of competing and providing lower-priced and better-quality products, helping to improve competition and demand.

Baby product businesses in Nigeria in general and the baby diapers market are booming because both birth and fertility rates in Africa’s most populous nation are rising rapidly at 35 per 1000 live birth per annum.

Growing awareness regarding baby’s health and novel products resulting from technological advances are other critical factors that are presumed to positively impact the baby diaper market over the next decade. Increasing working women ratio is another key factor that is expected to aid the market over the next seven years.

‘Birth rate’ refers to the number of live births in an area (like Nigeria) for every 1,000 people in a year and ‘fertility rate’ is the average number of children born to one woman over the course of her life, both figures are high Nigeria. The average birth rate in sub-Saharan Africa currently stands at 35 babies per 1, 000 Africans. This figure approaches 25 million babies born every year in Africa of these, 24 percent are born in Nigeria.

Top five Luxury Champagne brands in Nigeria Moet Imperial Nectar Rose oet Imperial Nectar rose is a lightly sweet rosé. It is a unique Champagne and the taste is rich, luscious and vibrant.

Little wonder this Luxury Champagne is common sight at Nigerian weddings and celebrations. Moët & Chandon Nectar Impérial is the go to choice for many Nigerians when it comes to top quality.

Perrier Jouet Grand Brut Perrier Jouet Grand Brut is an elegant delicacy in the floral, stylish and diamond cut style of the house of Perrier Jouet. This Champagne is well appreciated by those with an eye for quality and true luxury.

It is definitely a favourite among

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Nigeria’s upper class.

Veuve Clicquot Brut True to its motto, “One quality only, the finest”, with its Carte Jaune Brut Maison, Veuve Clicquot offers a great Champagne. Veuve Clicquot Yellow Label is one of the most popular and recognisable Champagnes throughout the world. With its distinctive yellow label, Veuve Clicquot is the enduring homage to the great Madame Barbe-Nicole Clicquot. Veuve Clicquot is a wonderful celebration Champagne and since Nigerians love to celebrate, you can be sure that Veuve Clicquot Brut is a common sight at parties.

Laurent Perrier Demi-Sec Champagne lovers in Nigeria delight in the pleasure and subtlety

of Laurent-Perrier Demi-Sec. The Champagne is fresh, rich and intense. It is the ideal partner for the especially spicy Nigerian foods which makes it a favourite among many Nigerians. Its sweet taste is guaranteed to always hit the spot.

Dom Perignon For those who know first-hand what luxury tastes like, or want to experience the true taste of luxury, Dom Perignon is an excellent option. Dom Pérignon is a brand of vintage Champagne produced by the Champagne house Moët & Chandon and serves as that house’s prestige champagne. The boldness and timeless style of Dom Pérignon are well loved and appreciated by Nigerians.

Thursday 26 April 2018

C002D5556

BUSINESS DAY

23

Global retail update

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Highs and Lows oogle’s parent company Alphabet has experienced a massive profit gain, growing by 73% or US$ 9.4 billion in the first quarter. Meanwhile, the CEO of embattled retailer Sears is out to purchase some of the company’s more successful brands, following unsuccessful attempts at luring outside buyers.

Innovative swings In a move to further its investment in the Indian market, Amazon has increased its funding in fintech startup Capital Float by US$ 22 million. The e-tail giant is also generating hype around its plans to build a robot capable of performing domestic duties. Speculation is afoot that Amazon is considering a move into TV home shopping, with a possible acquisition of Evine Live.

Tech focus Walmart is urging suppliers to enter food into online tracking system blockchain, in an effort to better manage food safety issues and decrease waste. The US retail giant is also expected to visit Israel this week, with an apparent interest in Israeli technology.

Battles ahead Alibaba is copping flak after reports have emerged the online behemoth is ‘punishing’ companies who refuse to sign an exclusive contract

with them. Affected brands describe being blocked from special sales, having advertising removed and products no longer appearing in top search results.

New blood Retail analysts are hailing the appointment of Myer’s newly chosen CEO John King as a positive step towards revitalising the besieged department store. The former House of Fraser boss is expected to pursue cheaper store rent as part of a colossal effort to turn the retailer’s fortunes around.

Offline endeavours Tmall has opened its first physical store in its Hangzhou headquarters, in an effort to capitalise on the city’s policies around cross-border retail.

The shop sells high end beauty and fashion items and customers complete transactions via smart phones.

Intriguing data Ad spending stats released in the UK reveal that Sky has jumped ahead of Procter & Gamble as the biggest spender on traditional advertising. In the supermarket sector, Tesco had the largest increase, while Aldi’s spending decreased by 32%.

Belt tightening In an apparent effort to cut costs, Nestlé has begun an appraisal process with a view to consolidate the US$ 633 million North American advertising business it does with approximately five agencies.

Sustainable supermarkets

Dutch grocer Albert Heijn has been bestowed with an award for being the most sustainable supermarket chain in the Netherlands. Meanwhile, Coop Norway is doing its bit for the environment with the launch of its Plastic Clean-up campaign.

Online ethics The legitimacy of some online reviews have been called into question following a Washington Post discovery that merchants can secretly use Facebook to inundate Amazon with fake reviews.

Meanwhile, the Facebook inquiry into data mining may have an impact on retailers.

Keeping quiet The luxury fashion sector trails behind other retailers

when it comes to fair trade transparency. Brands such as Dior, Chanel and Dolce & Gabbana have been the subject of much criticism for refusing to reveal information about their supply chains and the conditions for workers.

Compelling swings Amazon’s dominance has been further solidified with US grocery sales up more than US$ 200 million in the first quarter. The online giant is also expecting to strengthen its hold on the Indian market, with predictions that sales of groceries will significantly increase when AmazonFresh is launched. “Alexa Blueprints” has been unlocked, which allows users to make helpful and amusing customized voice commands through the virtual assistant.

Good buy General Mills stock could risesignificantly more than predicted, as its purchase of Blue Buffalo Pet Products starts to flourish. The company’s shares have fallen 27% this year, with some analysts claiming they are now a ‘bargain’ given the potential for growth from their recent acquisition.

Waste not, want not Walmart Canada has revealed a commitment to achieving zero food waste by 2025. The retail heavyweight is donating US $15 million towards food wastage reduction

research and will also improve its operational efficiencies in order to fulfil their mission.

Sticky situation In a decade-long legal battle over copyright between Nestlé and its US rival Mondelez, the Swiss food giant has been dealt a blow. The European Court of Justice has been instructed to reject the company’s appeal to maintain EU trademark status of its four finger KitKat bar.

Poultry predicament Sainsbury’s has come under fire after it was alleged they failed to follow through on promises to improve welfare conditions for its own-brand chickens. The UK retailer has handed back a good practice award it received in 2010 from an animal rights group.

Innovative moves Supervalu is leading the way in Ireland as the first retailer to offer fully compostable and biodegradable produce bags for consumers.

Meanwhile in Scotland, Lidl has partnered with six artisan gin producers for their new in-store Scottish Gin Festival.

Chips are up A l i b a b a ha s f u r t h e r strengthened its grasp on the artificial intelligence market with its acquisition of Chinese chip designer C-SKY. The ecommerce giant has also partnered with Xi’an International Medical Investment to offer internet-powered medical services.

Living under poverty line How Nigerians are struggling to survive

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

Teacher in dire need of funds to undergo hip replacement Name: Godwin Adanon State of Origin: Lagos State Age: 26 years Dependents: None Occupation: Teacher I used to teach Music at Christabel Nursery and Primary School, Oshodi. I also taught Music in College Best Secondary School but I quit teaching in schools in 2015 when I started experiencing a severe hip pain.

I have had issues with my left leg for a long time but sometime in 2015, I discovered that each time I stood up to teach, the pain at the hip was always severe.

What did you do when you noticed the severe pain?

I went to General Hospital, Isolo, for diagnosis. I was referred to Ikeja General Hospital for X-ray. After the X-ray, I was told I needed a

surgery. The doctor said my entire hip has gone and must be replaced.

The bill I was given was huge so I went to my pastor for prayers. One of the leaders in my church raised N50, 000 for me and another leader from another church raised N50, 000, making it N100, 000.

Since then (February 2016) till now, no more money has been raised.

What is the cost implication?

The bill I was given by the Lagos State University Teaching Hospital (LASUTH) on the September 30, 2016, was N823, 000 for the hip replacement, but recently, I went back to the hospital and was told I needed about N1.4million which will cover the surgery, admission bill, drugs, and blood.

Have you taken any treat-

ment since then?

I have not taken any treatment. The doctor advised me to be using crutches to avoid total breakdown of the hip since I don’t have the money for the surgery. I also have to use the crutches each time I want to go out to reduce the pain on my leg.

I have had this issue for long and I usually take Renaf Plus and other pain-relieving drugs prescribed by my doctors. I take the drugs once in two days just to calm the pain and it lasts for a week, after which the pain would come up again. If that happens, I rush and get the drugs.

How have you been coping since you noticed this in 2015?

I had to stop teaching Music in schools. I only teach a student Music at home on Saturdays and I’m paid N15, 000

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

a month. I used that money to support myself. My family are poor and could barely feed themselves let alone help with my medical bill. I still support them with the little I make.

I cannot go far with the crutches. Sometimes, I have to trek from my house to the junction to catch a bus and that usually gives me a tough time. I discovered that each time I walk the bones at my hip rub against each other and that gives me serious pains at the hip. Each time I’m walking, the hip generates pain.

The best thing I was told is to do the surgery.

This hip problem has caused me so much pain.

It’s hard for anyone to know what I’m going through but whenever I’m alone, I cry so much praying that God will raise men to help me do this surgery.

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BUSINESS DAY

Thursday 26 April 2018

INTERVIEW

‘I see property prices go up because development has slowed and economy is recovering’ One of the manifestations of challenges in the property market at the moment is developers’ slowing down of development and watching the market. But that will, in the long run, turn out an opportunity. GBENGA OLANIYAN, CEO, Estate Links Limited, in this interview with CHUKA UROKO, Property Editor, explains that the slowdown in development will shrink supply at a time when the economy is recovering and money is trickling into people’s pockets. He also speaks on other issues in the market. Excerpts The real estate market is still struggling despite the recovery in economy. It seems the recovery has no impact of the on the market; what exactly is happening? here has been an impact but that has not largely manifested in true transaction. We are very active in the commercial real estate, especially in the office space segment of the market.

Majority of the A-grade office space we have in our books had a greater number of square metres rented out in the last six months than all we did in the previous two years put together.

We are still not where we should be, but we have seen much more successful outing in the last six months than the previous two years combined. Besides that, enquiries are increasing. Even though these are not translating into closed deals, there is hope that in the very near future, transaction will happen.

We are getting much more demand. In real estate, the reaction time is usually slow and I am talking specifically about A-grade commercial office space. Take, for instance, a company that says it is going to change office in 2013 and suddenly sees the fortunes of its business turning around in 2017, will have to wait before deciding on what to do next. These are the kind of people we are seeing now coming to make enquiries about rents and the size of space available. I see a situation where a lot of these things will start translating into activities and this will surely take us towards the end of the year

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That’s for the commercial office market; what is the situation in the residential market?

I can say there has been an improvement in this market and I want to illustrate with a development that we did. We did not sell for a while, but from the middle of last year, we started seeing people come. Right now, we have only two units left. Though we are not back to the 2014 days, we cannot compare the first quarter of this year to the same period in 2016, not even 2017.

A lot of Nigerians expect a quick return to those years, but it is going to be a gradual return and we are getting there. The only problem is that developers are slowing down and watching the market. For instance, the last two units we still have to sell out of 15 in our development are still selling at N50 million per unit that we sold early last year

Gbenga Olaniyan

when we were selling off-plan. That we still have these two units left means that nobody wants to pay more than N50 million.

But if I am to replicate that development, clearly, the price of the units will no longer be N50 million because construction cost has gone up significantly. Because of this, I won’t be in a hurry to do another one. I have to wait until the market moves. I see a situation where because development has slowed down, the economy is recovering, money is trickling into people’s pockets, property prices which had been flat for so long has to go up.

Let us look at the market trends.

Between the last quarter of 2017 and end of first quarter 2018, what has it been like?

Honestly, I can say there has been a more significant change this year than what we saw in the second quarter of last year, but the change has been very gradual. Over all, I can say that things have started getting better in terms of closing transactions which can be measured.

We have seen about 10 percent rise in transaction in the last six months. But property prices have not yet gone up across markets.

But they will surely go up because many people are not building. The few that are building are going to deliver at prices that will reflect market realities.

For now, both residential and commercial property prices are quite flat. The only changes we have seen are in the number of transactions in the last six months which have really increased for both residential and commercial but have not led to price increase.

Some analysts say retail and office space rents have hit the bottom, giving hope of a positive

For the retail market, rents will only start coming up again when they bottom out to where retailer’s naira can afford it; many of the retailers at the malls are making less profit now than before and some are moving into stand alone buildings

change. How reflective of the market situation is this analysis?

We all know that what caused the challenge in the retail sector was the fall in the value of the naira.

Take, for instance, a man who was bringing in goods at $100 before the devaluation had N16,000 as his cost and so, he could sell for N20,000.

Now, the same man is still bringing in goods at $100, but his cost has now moved from N16, 000 to N36,000, but the buyers are not yet ready to pay N40,000. That is a huge challenge. So, he has to decide to leave or remain in the mall. Many have left as a result of this which is why the structured malls are losing local retailers.

So, for the retail market, rents will only start coming up again when they bottom out to where retailer’s naira can afford it. Many of the retailers at the malls are making less profit now than before. A lot of them are moving into stand alone buildings. But we are starting to see a lot of malls giving concessions like rent-free periods just to keep the old tenants and attract new ones.

I totally agree that office space rents are getting to the bottom, but they are not going to bottom out and start rising. Residential property prices will go up, but for retail, the rise will be slow like international markets where price rise is usually in the region of 2 percent or 3 percent.

With the situation in the market, any likelihood of landlords slashing rents and house prices?

Let me again illustrate with a man that brings in his goods into the market for N13.00. After sometime, he brings the price down to N12, N11 and finally to N10.50. At this price, he will be asking himself if he could damn the consequences.

But all his projections have been shredded. Before now, people were asking for $1,000 per square metre. Now, they have come down to $650 which is two thirds of their projections.

Most of the developers took loans to do the development. Many of the properties are at a level where below that the developers will say the situation has really gone bad. At the moment, many of the projects are at the bottom of where their financials can handle. The situation is made worse by old buildings which are ready to take lower rents. Owners of those building are ready to take N100, 000 per square metres.

Even if you put your own at N200,000 which is the least anybody can go, these people are ready

to take N60,000 per square metre.

The market is really very difficult at the moment and landlords are accepting rents that are so ridiculous that they cannot document them.

How is the lull in the market affecting estate agency practice, especially professional estate agents?

All these have really affected estate agency, but it is a simple mathematics. If I were to rent 20,000 square metres in a year, and I am doing 5,000 now, it means my commission is now a quarter. There are over 18 estate firms that are now doing a quarter of what they were doing four years ago. But everybody is adjusting just to keep afloat and as long as you are not making losses, everything is in order.

As for estate surveyors and valuers who are the professional estate agents you are talking about, the beauty of it all is that it is at a time of recession that they get a lot of valuation jobs because both private and public sectors are valuing their properties and so, their income comes through valuation. Over all however, the professionals are making less than they were making five years ago.

What are the prospects for investors; do you see the market improving before the end of this year?

The prospects are high at the upcoming areas like the free trade zone. After the commissioning of the zone by the president, a lot of people are already asking if we have anything to offer. I see that axis starting to develop; I see it starting to boom and because there is cheap land there, it is an area I am already looking at for affordable housing development. Private developers are going to start doing developments there.

As for commercial real estate like offices, the market has started picking up and it will continue.

Heritage Place that is already 70 percent let may achieve 100 percent occupancy by year end. The same thing for The Wings which came into the market much later. Even if we don’t achieve 100 percent, we will go very far.

On the retail side, anybody doing malls now has to look at it again because the game has changed.

If he wanted to rent his space for $600 per square metre and half of his tenants are Nigerians, because the naira has dropped by about 60 percent, his $600 will now be under $300 because that is what the tenants can afford.

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Thursday 26 April 2018

BUSINESS DAY

25

LegalBusiness BD Business Law Industry Report Practice Intelligence Partnerships

2018 CMSA luncheon: Capital market experts examine prospects for Govt’s financing of social infrastructure

Digital Disruption of the Workplace – Legal Issues in Artificial Intelligence, Robotics and Automated Systems in Nigeria

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CHUKS OKORIEKWE

apital Market experts and stakeholders yesterday examined precedents and prospects for Government’s financing of social infrastructure at the 2018 capital Market Solicitors Association (CMSA) annual business luncheon which held in Lagos.

Participants at the CMSA’s flagship event, made up of solicitors, investment bankers, investors (corporate and Pension Funds Administrators) as well as fund sponsors took a critical look at instruments such as Sukuk and plain vanilla bonds.

order to better fulfill their roles in the investment matrix. There was also an insightful presentation on the prospects and viability of Infrastructure Funds.”

The Annual Business Luncheon, every year, targets solicitors, regulators, capital market operators, the investor community, and other participants in the sector.

Each year, the CMSA luncheon theme is carefully selected to examine topical issues in the capital market in furtherance of its objectives

The theme for this year’s Business luncheon, “Investing in Nigeria’s New Economy” focused on Nigeria’s current investment climate, the challenges, recent successes and the direction in which the investment trajectory appears headed. It had participants discussing prevailing legal, regulatory and structural issues affecting investment in Nigeria and also share invaluable insights into investor expectations, concerns and other feedback gathered “on the road” in the course of domestic offerings and Eurobonds launched out of Nigeria by the Sovereign and corporates.

Speaking about the luncheon, the Chair of CMSA, Ayotunde Owoigbe stated, “We heard from corporate investors as well as investors with ‘patient’ capital such as Pension Fund Administrators, who shared their perspectives and the changes they desire to see in

The Capital Market Solicitors Association (CMSA) is an independent self-regulatory association of solicitors and commercial law firms engaged in capital market practice in Nigeria. The Association, which was established in 2001 is set up primarily as a platform to articulate and promote the interest of legal practitioners specializing or dealing in capital market transactions. Further, the Association is concerned with developing the legal and regulatory framework within which the capital market operates and pursues its objectives by, amongst other efforts, organizing training sessions, workshops and seminars for its members and other participants on topical issues arising in the capital market.

The 2018 event was largely attended, and adjudged impactful by several participants.

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igitization is reshaping the workplace globally, and with even more untold potential vide Artificial Intelligence (AI), Robotics and Automated Systems (AS) (collectively, AIRAS). PwC’s Nigeria Fintech Survey, (2017), highlighted digital disruption in the Financial Services Industry (FSI) with innovation and diverse products. According to the report, up to 40% and 30% of Banking and Payment Business and in Insurance, Asset and Investment Management respectively, would be at risk by 2020.

Business owners in their bid for greater efficiency through reduced overheads, often invest in technology infrastructure (AIRAS), which also help with managing customer experience. One direct fall out is the likelihood of many redundant employees, thereby leading to massive job losses. Recently in Saudi Arabia, Sophia, a robot, was granted citizenship (Independent UK, 26th October, 2017). Thus issues around the usage and limitation of AIRAS, has thrown up numerous questions begging for answers.

For instance, what is the status of Sophia?

Would ‘she’ be qualified for remuneration, pensions and other entitlement as a worker?

These similar questions may be asked for example, in respect of the recent introduction of ‘Leo’ (virtual banker) by UBA, ‘Ada’ (Chatbot) by Diamond Bank Plc and ALAT - a ‘full-fledged’ digital bank by Wema Bank Plc. This article thus seeks to examine legal implications of adopting AIRAS in Nigeria’s workplace.

Nigeria’s Workplace: How Prepared for Digital Disruption?

Employment relationship in Nigeria is governed by contract and also labour laws,

particularly Labour Act (LA), Cap. L1 LFN, 2004, Trade Unions Act, Cap. T14, LFN, 2004, Trade Dispute Act, Cap. T8, LFN, 2004, Employee’s Compensation Act (ECA) Cap. E7A, LFN, 2004, Pension Reform Act No. 64, 2014, amongst others. These laws regulate employment, trade association, compensation upon injury and pension contribution responsibility in employment contracts.

Accordingly, section 91 LA defined a worker to mean “…any person who has entered into or works under a contract with an employer, whether the contract is for manual labour or clerical work or is expressed or implied or oral or written, and whether it is a service or contract personally to execute any work or labour….” On its part, section 73 ECA defined an employee to mean “a person employed by an employer under oral or written contract of employment whether on a continuous, part-time, temporary, apprenticeship or casual basis and includes a domestic servant who is not a member of the family of the employer including any person employed in the

Federal, State and Local Governments, and any of the government agencies and in the formal and informal sectors of the economy.”

The above definitions presupposes that, an ‘ employee’ must be a natural person, not even an artificial person created pursuant to statute like a company under the Companies and Allied Matters Act (CAMA) Cap. C20 LFN, 2004. This is despite the provision of section 38(1) CAMA that: “….every company shall, for the furtherance of its authorised business or objects, have all the powers of a natural person of full capacity.” And according to Salmond on Jurisprudence (11th edn. (by Glanville Williams) 1957, at page 351), ‘…a person is any being whom the law regards as capable of rights and duties….’ We must agree Continues on page 27

SBL Vice Chair, Seni Adio, SAN offers tips on innovative lawyering at Asaba law week Excerpts from Keynote address delivered by the Vice Chair of the NBA Section on Business Law (SBL), Seni Adio, SAN at the 2018 Law Week of the Nigerian Bar Association, Asaba Branch on Tuesday, April 17, 2018.

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his highly topical issue straddles both [A] the challenges facing legal practitioners in terms of “encroachment” by other professionals into our practice; (ii) commoditization of certain areas of practice; (iii) clients being increasingly reluctant to pay for legal services that they consider more as support as opposed to cerebral; and: [B] the vast opportunities presented through: (iv) technology as a means of service delivery; and (v) specialization.

We have a very bright future in the profession. Even though the five factors that I have identified above highlight some of the “disruptions” in our profession; they indeed also provide unique opportunities to be innovative in justice delivery.

I would like to quickly deal with the first issue I identified, which is what I have described as “encroachment” by other professionals. You will note

Seni Adio, SAN

L-R, Honourable Justice Samuel Oseji, JCA, Justice of the Court of Appeal, Benin Division; Seni Adio, SAN, Vice Chair NBA Section on Business Law; Professor Adedeji Adekunle, SAN, Director-General, Nigerian Institute of Advanced Legal Studies; and Peter Mrakpor, Honourable Attorney General of Delta State.

that I have chosen my description very carefully – I did not say unauthorized practice of law.

1. Encroachment A. There are certain entities known as Multidisciplinary Professional Services Networks (“MPSN”). Succinctly

stated, these are very large organizations that provide a variety of professional and consulting services. And, broadly stated, these organizations engage in providing law related services in various forms. Quite obviously, they would not dare to seek audience in court, so for many, the threat is not

readily apparent. However, it is there.

More specifically, these entities provide services, which are law related in the areas of: (i) tax, (ii) insurance, (iii) immigration, (iv) intellectual property and (iv) employment. Notably, what curbed their initial aggressive foray into the law sphere was the Enron catastrophe, which resulted in the advent of the Sarbanes-Oxley regime, and its corporate governance prohibitions, particularly with respect to conflict of interest dealings, causing such firms to discontinue providing certain law related services.

B. On-Line Providers of Legal Services: There are numerous on-line providers of legal services. Some of the internationally well-known ones include: (i) Legal Zoom; (ii) Rocket Lawyer; (iii) US Legal; (iv) CorpNet; (v) Legal Shield; (vi) Public Legal; (vii) Smart Legal Forms; (viii) Find Legal Forms; (ix) Legis One; and (x) Presto Experts. In Nigeria, there is a

well-known one called “Law Padi”, with legal inquiries to be directed to contact@lawpadi.com. I have categorized these on-line service providers as “encroachers” because, often times, they are business enterprises in many instances not run by lawyers. Furthermore, their real sources of revenues are through advertising and internet traffic to their websites as opposed to payment for actual legal advice or information received by users of their services.

2. Commoditization What do I mean by this? Simply put, it refers to those tasks that I broadly describe as “repetitive” and “standardized” and do not necessarily require cerebral exertion. With all due respect, these would include routine incorporation of companies; appointment and removal of directors; increase in share capital; and the like. A perfect illustraContinues on page 26

26 BUSINESS DAY PERSPECTIVE with Ayodele Oni

C002D5556

An evaluation of the Nigerian electricity regulatory commission meter asset provider

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he Electric Power Sector Reform Act 2005 (“EPSRA”) empowers the Nigerian Electricity Regulatory Commission (“NERC”) to make regulations with a view to, amongst others, ensuring fairness, safety, security, reliability and quality of service in the production and delivery of electricity to customers. NERC, therefore, issued the Meter Asset Provider Regulations 2018 (the “MAP Regulations”) with a view to, inter alia, eliminating estimated billing and thus, engendering fairness in the industry whilst also enhancing revenue assurance in the face of the illiquidity which has pervaded the industry- especially on-grid power supply. Specifically, the MAP Regulations were issued in exercise of the powers conferred on NERC by section 96 of the EPSRA. The increasing number of unmetered electricity customers who are continually subjected to estimated billing by the electricity distribution companies (“DisCos”) and the significance of attracting private investment to metering services in the distribution sector have made the issuance of the MAP Regulations all too important. Little wonder, also, that a bill to criminalize the use of ‘estimated billing’ in the calculation of electricity consumed and tariff to be paid by consumers by Discos has passed first reading in Nigeria’s House of Representatives.

An Analytical Review of the MAP Regulations The MAP Regulations primarily introduce Meter Asset Providers(“MAPs”) as a new set of service providers in the NESI. As assets with technically useful life of 10-15 years, the regulation provides for the third-party financing of meters, under a Permit issued by the Commission, and provides for amortization over a period of 10 years.

With the metering gap in the Nigerian Electricity Supply Industry reported to be almost five million meters as at December 31, 2017; DisCos are required to engage the services of MAPs, in accordance with the provisions of MAP Regulations towards meeting their metering targets specified by the Commission. The key provisions of the MAP Regulation are analyzed below: Metering Obligations DisCos are wholly responsible for meeting their metering targets as maybe prescribed by NERC from time to time and in furtherance of this mandate, the MAP Regulations directs all Distribution Licensees to engage the services of MAPs towards meeting its metering targets.

Additionally, Eligible Customers being served under the Eligible Customer Regulations may engage MAPs to ensure proper energy accounting.

Of paramount consideration however is the lack of clarity on the context or process on how the Eligible Customers contemplated by the MAP Regulations are to engage the MAPs in ensuring accurate energy accounting. The writer notes that the MAP Regulations already empower every electricity customer with the right to a properly installed meter to ensure an accurate energy accounting and to ultimately prevent circumstances that could lead to estimated billing. Also, the MAP Regulation provides that in the event that the meter is in need of repair, such repair services must be provided within two (2) working days of the disrepair. It is unclear whether this provision out-

rightly empowers Eligible Customers to engage MAPs without the normal process of going through the DisCos. Grant of Permit and Procurement A relevant DisCo is required to first declare a metering gap, stating its intention to meter certain areas and requesting prospective MAPs to express their interests. Consequently, bidders must then submit an expression of interest in at least three Nigerian newspapers and on the licensee’s website, in accordance with published requirements which must include –technical expertise, financial capability and experience in the metering business. Prior to participating in such bid rounds by DisCos for MAPs, such MAPs interested in bidding must first obtain a “No Objection” from NERC subsequent to the conduct of the relevant due diligence on the prospective MAPs by NERC. Once a decision is made, the licensee issues a bid document to each qualified bidder and a letter of offer to enter into a Metering Service Agreement (“MSA”) with the successful bidder.

DisCos are required to conclude the procurement process for the engagement of MAPs within 120 days from the commencement of the procurement process. However, the procurement process for the engagement of the first set of MAPs is required to be concluded no later than one hundred and twenty days from April 3, 2018. Upon completion of evaluation of bids, the successful Applicant shall submit an application for the grant of a Meter Asset Provider Permit to NERC. The tenure of the permit of a MAP, shall be fifteen (15) years in the first instance. Additionally, subject to NERC’s approval of the procurement process and grant of a Meter Asset Provider Permit, the Distribution Licencee shall enter into Metering Service Agreement with the successful applicant for a Map Permit.

It is pertinent to note that, rather surprisingly, the MAP Regulations do not prescribe a renewal period for permits granted to MAPs. Further, it is unclear if DisCos have commenced a bid process for the selection of MAPs. Importantly, the MAP Regulations specify that NERC shall convey its decision in respect of an application for a MAP Permit within twenty-one (21) days of the submission of the required documentation for a MAP Permit.

Local Content Requirements Not less than 30% of the contracted metering volumes sourced by the MAPs shall be from local meter manufacturing companies in Nigeria. The implication of this directive encapsulates the NERC’s underlying objective of encouraging competitive metering services within Nigeria, especially considering the wide gap between demand

and supply of electricity meters in Nigeria; whilst simultaneously encouraging the participation of foreign investment (as there is an allowance for 70% of meters that may be manufactured by non-Nigerians).

At this point, it is germane to quickly consider the provisions of the NERC’s Local Content Regulations regarding local content. By virtue of the NERC Regulations, all licensees shall give first consideration for Nigerian goods and services in award of contracts. The implication is that Nigerians shall generally be awarded contracts for the provision of goods and services in the power sector, before non-Nigerians are considered. Another interpretation of this provision implies that non-Nigerians will only be considered, when utilization of indigenous operators in the domestic power market is exhausted. The writer notes the seeming contradiction between this provision and the MAP Regulations which has restricted and streamlined the application of local content to a 30% minimum. Meaning that, in procuring the MAP services, foreign participation of up to 70% is allowed, as long as the metering volumes sourced is not below 30% local content. The writer is not unaware of Paragraph 24 of the Local Content Regulations which empowers NERC to make Orders in furtherance of the objectives of the Local Content Regulations. This Paragraph gives fillip to the argument that NERC should not be reducing local content limits in the MAP Regulations as making Orders in furtherance of the objectives of the Local Content Regulations will mean providing further support to it and not reducing its effectiveness, which the 30% threshold stated in the MAP Regulations appears to do.

Contractual Framework In a bid to further regulate the operations of the DisCos and the MAPs and to subject them to legally enforceable principles, the MAP Regulations introduce a compulsory legal requirement which mandates the distribution licensee and the MAP to enter into a Meter Service Agreement (“MSA”) and a Service Level Agreement (“SLA”). The requirements of the MSA include the number of meters to be installed by the MAP and the licensee; recovery of the Cost of Meter Asset plus a reasonable return over a period of 10 years; securitization; meter specification and other provisions on indexation to cater to the variation in the macro economy. The SLA on the other hand would specify the timeframe for installation; maintenance; meter reading; meter replacement among others.

To be continued next week

Thursday 26 April 2018

SBL Vice Chair, Seni Adio, SAN offers tips on innovative lawyering ..

Continued from page 25 tion of these tasks being commoditized is demonstrated by the fact that these are some of the key areas in which online service providers provide free legal advice, as well as templates/forms for accomplishing these tasks.

3. Legal Support This is an emerging area in these parts. Generally, clients are becoming increasingly reluctant to pay standard professional fees for work considered as legal support. This is especially the case in the area of litigation, which often requires the review of vast amounts of documents.

Legal Assistants: In large international firms, these very important aspect of litigation is done by Legal Assistants, who often are not lawyers, but bright graduates who for various reasons do not intend to become lawyers and, in some cases, young very bright graduates who decide to work for a while before going to read law. The point here is that, these folks provide invaluable legal support for a fraction of the cost of lawyers. Some of the services that they provide include: (i) document review; (ii) case summaries; (iii) preparation of demonstrative evidence (“chalks”); and (iv) participating in mock trials before actual trials.

4. Technology as a Means of Justice [Service] Delivery Here, I would like to focus predominantly on the public sector, although justice delivery is an eco-system comprising broadly speaking the public and private spheres of law practice.

Technology is transformational in terms of justice delivery – AND IT COSTS MONEY – that is part of the reason why I am gratified and encouraged by their presence.

We are now in 2018! I practiced law in the United States of America for approximately 15 years and, primarily, in Boston, Massachusetts.

I recall that in my law firm then, we had our first PAPERLESS TRIAL in the 1990s, that is, not a single piece of paper was handed in hard copy to the Court Clerk or Judge during trial.

All The Documentary Evidence were imaged and projected on TV monitors in the courtroom. Not only that, the oral examination by counsel and the testimonies of witnesses were also projected in real-time on the TV monitors, such that when a question was asked and there was an objection, the Court could see it or play it back in order to promptly make a ruling. Likewise, it could be rewound for the witness to read in case he feigned not hearing or understanding the question.

That was in the 1990s! So, you can imagine that if we were already conducting paperless trials then, we were also transacting various forms of pre-trial activities electronically.

These include: i. E-filing of new cases; ii. E-Service of processes; iii. E-Notification from the courts about hearings; iv. E-Notifications from the courts about adjournments; v. E-receipts of Rulings and Orders; vi. E-Filings of Joint Motions for Continuance (Adjournments) – yes, lawyers granted each other such courtesies and cooperation; vii. Telephonic conferences with Judges and Magistrate Judges to discuss case management; viii. Telephonic conferences with

Judges and Magistrate Judges to argue certain motions; and ix. Telephonic conferences with Judges and Magistrate Judges to argue Emergency Applications.

We could conduct those crucial legal tasks due to the use of technology!

Briefly, the mechanism worked based on each lawyer admitted to the Massachusetts Bar having: (i) a unique Board of Bar Overseers Number (“BBO Number”); and (ii) unique ID and User Name to log into the portal of the Massachusetts Superior Court (the State High Court). The same applied with respect to filings at the United States District Court for the District of Massachusetts (Federal High Court). These are some of the things that technology can do.

There is no reason why Delta State cannot be a pace setter to revolutionize justice delivery.

Indeed, at the risk of stating the obvious, whatever the investment in technology costs will pay for itself in very short order. Some of the selfevident benefits include, but are not limited to the following: i. Reduction of costs: travel time; filing costs; staffing requirements; even decongestion of roads; etc. ii. Efficiencies: electronic retention and retrieval of documents; and iii. Reduction of mischief through human interventions in the Registry, such as failure to serve processes on time; “missing” processes; etc.

Now, to be fair, I am very much aware that some of these initiatives have commenced with pilot programs at the Supreme Court. Lagos State is also in the process of automation. I know that nowadays, in my office, we often receive notifications via e-mail to come to the Court of Appeal to ensure that records are complete before the date scheduled for hearings. I believe that we sometimes also receive Hearing Notices via e-mail. In sum, we are making progress. However, it is too slow.

To be continued next week Seni is a Senior Advocate of Nigeria (SAN), as well as an Attorney-at-Law in the State of New York and Commonwealth of Massachusetts in the United States of America.

Notably, before returning to Nigeria Seni practiced law at the international law firm, MINTZ LEVIN, in Boston, Massachusetts, where he achieved the remarkable feat of becoming a Litigation Partner.

While in the United States, he counseled multinational publicly-held conglomerates and private companies on various matters, including but not limited to, Fiduciary Law and Corporate Governance; Securities Laws; Legislative and Regulatory Matters before the U.S. Congress; Real Estate Valuation and Tax Abatement; Immigration; Intellectual Property Law; Internet Technology and Security; Insurance and Coverage Disputes; and Business Torts (including Unfair Trade Practices, Commercial Libel and Breach of Contract).

Since returning to practice in Nigeria, Mr. Adio has complemented his business litigation background with extensive expertise in Admiralty (Maritime), Energy (Oil and Gas), Telecommunications, and Capital Markets transactions and counseling. He is also duly registered with the Nigerian Securities and Exchange Commission (SEC) as a Capital Markets Solicitor.

The Learned Senior Advocate of Nigeria (SAN) currently leads the Nigeria Bar Association – Section on Business Law (NBA-SBL), NASSBER collaboration with the National Assembly, Nigerian Economic Summit Group (NESG), the U.S. Department for International Development – Enhancing Nigeria Advocacy for a Better Business Environment (DFID-ENABLE).

Thursday 26 April 2018

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BUSINESS DAY

LEGALPERSONALITY Eminent legal personality striding across boardrooms

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n the present day society, corporate governance which involves balancing the interest of stakeholders has become a very key aspect of institution building. It encompasses every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. It also ensures transparency, efficient structure, integrity and financial accountability, which further enhance the confidence of members.

For many admirers of Paul Usoro, he stands out among his contemporaries in corporate governance.

He’s a legal luminary, an epitome of success in the Nigerian legal space, a gentleman who has practiced the noble profession to enviable heights; attaining the coveted status of Senior Advocate of Nigeria (SAN) at the first half of his forties. But there’s more to the soft-spoken erudite Lawyer. He may have earned his stripes, making giant strides in the legal profession, but with equal measure, Usoro has his footprints across the boardrooms of blue chip companies in Nigeria, leaving behind positive legacies.

Between 2001 and 2006, Usoro served the interest of his state, AkwaIbom, as a Director on the board of Airtel (formerly Vee Networks Limited), when the telecommunications company opened shop in Nigeria. His time on the board of the company witnessed many successes. For AkwaIbom, he negotiated an investment valued, as at the date of entry, at the sum of US$75,000,000.00.

Usoro continued his good work in the Airtel set-up and in 2006; he brought his transactional skills to bear again when he negotiated the sale of Akwa-Ibom’s stake in the Celtel BV take-over of the company.

Akwa-Ibom State Government cashed out most of its investments in this enterprise in 2006 and indeed made multiple returns on its investment amount. After the state sold its stake in Airtel, Paul Usoro was retained as an independent director on the board and served in that capacity through successive owners until recently when he exited from the board in February 2018 in compliance with the Nigerian Communications Commission’s new policy on corporate governance for telecommunications companies.

As the Committee Chairman, Usoro led the Airtel Shareholders Committee in negotiating the Celtel Transaction, which, at the time, ranked as one of the biggest private sector equity transaction in Nigeria’s history. He represented the interest of all the shareholders that included three Nigerian State Governments and blue-chip corporate citizens like First Assets Limited, a wholly-owned subsidiary of First Bank of Nigeria Limited. It is a testimony to his leadership quality that Celtel BV insisted after the Transaction that he remained on the Board even though Akwa-Ibom

Paul Usoro

State Government whom he initially represented had sold out completely from the Company.

In 2010, Celtel BV sold out its equity entirely to the Bharti-Airtel Group of India resulting again in the reorganization of the Airtel Board.

Again, Bharti-Airtel, the new 65% owners of Airtel retained Usoro as an independent director on the board and he served in that capacity until his exit in February 2018. It should be noted that for most of his time in the Airtel Board, Usoro was the Chairman of the Board Audit Committee.

Usoro has many feathers to his cap. While he was making waves in the Airtel boardroom, his renowned leadership dexterity was equally felt in Access Bank boardroom. From 2014, Usoro has chaired the Board’s Remuneration Committee and Governance & Nomination Committee. He also serves as a member of the Board’s Audit Committee, Risk Management Committee and Credit & Finance Committee. And in 2011, he was appointed as a director of PZ Cussons; he chairs the People & Governance Committee of the Board.

Between 2008 and 2014, Usoro served as a director on the Board of Premium Pensions Limited, a leading Nigerian pension funds administrator and was, throughout the entire period, the Chairman of the Board’s Audit Committee. He also served on the Board of CR Services (Credit Bureau) Plc, Nigeria’s credit-rating organization; representing Zenith Bank Plc. Usoro has served on the Board of Marina Securities Limited since 2011 and is currently the Chairman of the Company.

Oyinlola Adeleke Esq summed up a lot of young lawyers’ perception of Usoro.

“You can’t miss the Paul Usoro name as far as the legal profession is concerned in Nigeria today. A lot of us are inspired by his success. What he also does to everyone’s amazement is his strides across boardrooms alongside a very successful practice. Only a man totally committed to excellence can do that. Paul Usoro is an icon of excellence,” she declared.

To be continued next week

PHOTOFILE

TMT Finance Africa Conference Photos from TMT Finance Africa Conference in Cape Town, where DOA (Duale Ovia & Alex Adedipe) partner, Adeleke Alex-Adedipe chaired the session on Digital Africa Panel - “Who will Lead The Next Wave of Growth?”

27

Digital Disruption of the Workplace...

Continued from page 25

that in the aforementioned statutory employment context, only natural persons come within scope. One can therefore posit that AIRAS are unknown to law as persons. Consequently, AIRAS utilised in the production of goods and services cannot be validly classified as employees or workers under Nigerian labour laws.

Their usage would be exempted from compliance with all forms of labour laws.

Illustratively, Guaranty Trust Bank Plc (GTB) introduced Electronic Banking Centres (EBC), utilising only Automated Teller Machines (ATMs) with few support staff to ensure operational efficiency. Presumably the EBC model translates to optimised operations vide lower salary overheads because of reduced personnel count. Should GTB consider increasing the number of its EBCs (although this also implicates capital expenditure cost of acquisition and installation of ATMs and allied infrastructure), there is a high possibility of increased staff redundancies. This has been the trend with the banking sector which, according to the Nigeria Bureau of Statistics (NBS), has witnessed the most retrenchment in recent times in Nigeria due to introduction of new technology (NBS, Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength Report, 2017).

Another issue worthy of consideration is whether AIRAS can disrupt regulated professions such as legal, medical and pharmaceutical practices in Nigeria. Undoubtedly, a

combined reading of sections 2 and 24 Legal Practitioners Act, Cap. L11 LFN, 2004 restricts legal practice (as barrister and solicitor) in Nigeria to only those: whose names are on the roll; entitled to practice by virtue of their offices; and who are permitted by the Chief Justice of Nigeria to practice for the purpose of a particular proceeding in court. This was the crux in Awolowo v. Sarki (1962) LLR 177 where the Court recognised the restriction placed on the rights of Nigerians to be represented by counsel of their choice, to only counsel eligible to practice in Nigeria. Similarly, under section 8, Medical and Dental Practitioners Act, Cap. M8 LFN, 2004 “a person shall be entitled to be fully registered as a medical practitioner or as a dental surgeon if – he has attended a course of training approved by the Council…; the course was conducted at an institution so approved…; he holds a qualification so approved; and holds a certificate of experience…”

One can presume that AIRAS do not have a place in the practice of these professions in Nigeria. However, the reality dictates otherwise. In some advanced jurisdictions, the legal profession has been under attack, warding off threats from AI systems built to determine outcome of cases using specially built legal algorithms, as well as prepare standard contracts thereby eliminating the ‘need’ or reducing billing hours of conventional lawyers. This trend has also showed up in medical practice with the introduction of machine learning in predictive medicine which utilizes analytics on patient’s data to proffer a medical solution.

One question worth asking is, who

bears the legal liability in cases of third party mishap by AIRAS? Would it be the software developer or user?

Attempts have been made in various jurisdictions including the European Union (EU) to identify liability of robots.

According to paragraph AD, European Parliament Resolution of 16 February, 2017 with recommendations to the Commission on Civil Law Rules on Robotics (2015/2103(INL)): “whereas under the current legal framework robots cannot be held liable per se for acts or omissions that cause damage to third parties; whereas the existing rules on liability cover cases where the cause of the robot’s act or omission can be traced back to a specific human agent such as the manufacturer, the operator, the owner or the user and where that agent could have foreseen and avoided the robot’s harmful behaviour; whereas, in addition, manufacturers, operators, owners or users could be held strictly liable for acts or omissions of a robot.”

In other jurisdictions including Nigeria, the position of the law remains cloudy – it could therefore be rightly presumed that developers of AIRAS may be directly liable under ‘product defect’ where their product causes harm to third parties. For AIRAS to be legally liable for acts done by it, the law would have to confer on it a ‘legal status’ say, electronic person with its attendant rights and liabilities.

To be continued next week

Chuks Okoriekwe is a commercial lawyer and practices with LeLaw Barristers & Solicitors.

INDUSTRYFILE

Client expectations, human capital, form main discourse at 2018 Lagos law week THEODORA KIO-LAWSON

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ey challenges in the legal profession such as human capital, client expectations, technology and innovation are some of the hot topics, which will form the crux of discourse at the 2018 annual law week of the Nigerian Bar Association (NBA) Lagos Branch.

This was disclosed by the Chairman of the Law Week Planning Committee, Tola Oshobi, SAN at a press briefing in Lagos.

Speaking further on the annual event which scheduled to hold between Saturday, 5th and Friday 11th May, 2018, Oshobi stated that, a range of issues affecting legal practitioners in Nigeria, their practices and clients, will be on the top burner all week long. Among these are technology and innovation, taxation, land use charge, land registration in Lagos state and other jurisdictions, and several other topical issues where practitioners interface with government will be adequately addressed.

“We are in talks with the Lagos Government regarding their participation and I assure that the response so far has been greatly positive,” Oshobi said.

The aim according to him is to give Lagos State an opportunity to address lawyers on certain critical areas that are relevant to not only lawyers but also members of the public who form majority of the lawyer’s clientele.

Speaking about the technical sessions for the week, the committee further revealed that the ses-

L-R: Chairman NBA Lagos 2018 Law Week Planning Committee Tola Oshobi SAN, Chairman NBA Lagos Branch Chukwuka Ikwuazom and Alternate Chairman, Law Week plannning Committee Ken Ahia SAN and other Committee members.

sion on “Client Expectations in the 21stCentury,” would have panelists educating members on the expectations of corporate organisations from the perspective of in-house counsel; while the third session is dedicated to the Young Lawyers of the Branch and is on the topic, The 21st Century Young Lawyer; There will be yet another interesting session titled, ‘The Rainmaker Lawyer’, aimed at reminding lawyers that the profession is also a business that should generate sources of livelihood; and the session on ‘Dialogue with the Judges on Labour Issues’, which will address issues such as the amendment of the 1999 Constitution to give the NIC exclusive jurisdiction on labour issues as well as the recent Supreme Court decision on appeals emanating from the NIC. Judges of the National Industrial

Court are expected to be on ground to respond to issues relating to these and many more.

According to the conference chairman, the choice of the NIC according to the Chairman is provoked by the fact that labour related issues which form an integral part of the everyday activities of both the lawyer and the client are issued that have received little or no attention.

Also speaking at the event, the Chairman of branch, Chukwuka Ikwazom also assured legal practitioners that the Lagos branch (also known as The Premier Branch) will no doubt witness a shift from the usual activities that characterises past law weeks in the 2018 Lagos NBA Law Week.

To be continued next week

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BUSINESS DAY

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INDUSTRYFILE

THE YOUNG BUSINESS LAWYER

Etomi joins other African, SADC, European lawyers in Zambia to chart course for globalisation of legal services

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op Energy lawyer and Principal Partner, GEPLAW, George Etomi was among 150 participants drawn from across the Southern Africa Development Community (SADC) countries and other parts of Africa to network, discuss and learn from lawyers across the globe about the effects of globalisation on legal services at the 2018 edition of the ‘Globalising Your Legal Practice’ conference in Zambia.

The two-day programme organised by the International Bar Association (IBA) and the European Lawyers Foundation (ELF) in collaboration with the Law Association of Zambia, featured speakers from the International Trade in Legal Services Committee (ITILS) and the Bar Issues Commission (BIC) of the IBA, including the pioneer Chair of the NBA Section on Business Law, George Etomi.

The programme which took the form of a series of training programs was aimed at assisting African lawyers prepare to deal with the effects of globalization of legal services.

Following the models successfully used for the previous conferences held in Zimbabwe (2016) and Kenya (2017), facilitators from the ITILS and the BIC worked closely with their African counterparts to examine viable options for lawyers drawn from the 15 countries that constitute the SADC can deal with the challenges of globalisation while similarly harnessing the opportunities that attend globalisation of legal practice.

Speaking at the conference, Ben Greer, a retired Partner in the Law Firm of Alston & Bird LLP, a large international law firm headquartered in Atlanta, Georgia, United States of America (USA), and past General Secretary of the IBA gave an overview of the origins of globalisation tracing same to the World Trade Organisation (WTO)’s desire to remove the barriers to trade in goods or services across the globe.

Greer acknowledged that the pace of acceptance of globalisation had varied across the different regions of the world but stressed that all lawyers needed to continue to work hard in innovative ways to remain relevant.

In his contribution, Jonathan Goldsmith, the Chair of the ITILS urged participants to take a cue from the EU, which had facilitated the integration of legal services in the region. According to Goldsmith, lawyers in the EU are presently free to practice both EU law and the laws of their respective home countries. He also noted that the integration policy had been in place for over three decades with little or no conflict over the policy. Goldsmith added that the benefits of globalisation far outweigh its deficiencies and therefore urged African lawyers to take full advantage of the phenomenon.

Following the presentations by Greer and Goldsmith, a number of participants from the SADC made their presentations in which they expressed their concerns about the effects of globalisation and the pos-

Bar leaders of the SADC, Government Representatives and members of the IBA team

sible loss of legal market share to foreign lawyers seeing that lawyers in SADC countries have hardly been availed of the opportunity to participate in the sort of briefs that attract foreign lawyers.

One of the major concerns revolved around the perceived preference of foreign law firms by African governments who happen to be the largest consumers of legal services.

According to the presenters, African governments regularly engage foreign law firms to advise on various transactions without seeking the input of local law firms or requesting that the foreign law firms collaborate with the local law firms to ensure a transfer of the skills necessary to compete in the future.

To address the concerns raised by other African lawyers, George Etomi, made a presentation on ‘Eliminating the Barriers to Cross Border Legal Practice in Africa’ expressing his desire to see African lawyers increasingly collaborate with one another.

He challenged lawyers associations across the African continent to work out an integration system to empower lawyers on the continent harness their resources for mutual benefit.

He said, “Globalisation of legal practice in Africa was primarily driven by the influx of foreign investment into the African continent and cross-border legal practice was more inter-continental than it was intracontinental. However, a number of foreign law firms in recognition of the opportunities for cross-border legal practice in Africa have either opened offices on the continent or formed legal alliances with local law firms.”

Etomi thus, challenged African governments to cooperate with lawyers associations to address the major barriers to intra-continental legal practice, such challenges including Border/Immigration Requirements, and Jurisdictional Limits. He faulted the existence of stringent entry requirements imposed by many African countries on citizens of other African countries, which make travel within the continent difficult.

The GEP principal partner also called for a review of the laws and practice requirements that bar other Africans from either being called to their Bars or engaging in legal practice within their domains.

Promoting continental integration through the faithful implementation of economic treaties on free movement of goods and services will facilitate cross-border legal practice

Thursday 26 April 2018

in Africa, according to Etomi. He similarly urged other countries to emulate Ghana, which has introduced more liberal admission requirements for intending legal practitioners from other African countries.

Earlier, the Honourable Minister of Justice of the Republic of Zambia, Given Lubinda who was accompanied by the Honourable AttorneyGeneral of Zambia, Likando Kalaluka had declared the conference open.

In separate speeches, both gentlemen acknowledged the reality of globalisation and concluded that the legal profession in Africa was not immune from the wave of globalisation.

Lubinda and Kalaluka both urged lawyers in the SADC to engage in the relentless pursuit of excellence to remain competitive in a globalized environment. They also pledged their support for programs, such as the Globalising Your Legal Practice conference, able to assist lawyers improve their skills in providing legal services. Both senior government officials also particularly thanked the IBA and the ELF for the initiative while hoping for more of such in the future.

Dignitaries at the conference included Minister of Justice of Zambia, Hon Given Lubinda; the AttorneyGeneral of Zambia, Hon. Likando Kalaluka; Member, ITLILS, Mr. Thierry Ngoga of Rwanda; Former President of Law Society of Zambia, Mrs. Kondwa Chibiya-Sakala; Mr. James Banda, former President Law Society of Zambia; Current President of the Law Society of Zambia, Mr. Eddie Mwitwa; Diana Sichone, Secretary & Director, Securities and Exchange Commission, Zambia; Alonso Hernandez-Pinzon of the European Union; Juan Javier Negri from Argentina; Jonathan Goldsmith from Belgium; Alison Hook from England; Ben Greer from USA and George Etomi from Nigeria.

Speaking the BusinessDay after the event, Etomi disclosed that the Conference on ‘Globalising Your Legal Practice 2018 edition’ provided a great opportunity for lawyers from the SADC countries and other parts of Africa to network and learn from other lawyers including facilitators from the ITLS and the BIC. “We also engaged in a number of practical exercises as well as outdoor activities including visits to the Victoria Falls. The experience is one that all participants will continue to cherish for a long time to come,” he said.

Now let us talk welfare! (2)

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s I hold the pen on this page, I realise that I must be very careful, why do I say so? No one has the prerogative to prescribe rules (outside the prescriptions of the professional bodies to which we all (as members) subscribe) to any lawyer on how best to run his business as our realities are different. Nonetheless, there is an imperative need for standards and those standards while taking account of realities per time, must be reasonable and proffer a balance between profitability, sustainability, organisational and personal success.

In my opinion, that balance is the yardstick and should inform policy, management and practice structure.

So, on this basis, I will opine on these other issues that daily beleaguer our legal community of young lawyers.

First on the list after remuneration would be the fact that for a large part, young lawyers do not have any benchmarks or competency measures to which they can grade their growth over time. Until recently, not too many organisations had clear and pragmatic gradations for promotions, sequence for pay increase and more poignantly, the career path of their lawyers.

Put simply, many young lawyers are on a journey to no known destination, some may spend 10 years before they move to the next stage and even then, without skill or competence. This is more common with law firms and it is not okay. While the primary duty for development or growth is that of the young lawyer, it is necessary that benchmarks for growth and competence endorsed by the larger body of lawyers be clear from the start.

In many law firms, there are till date no stages of progression in place, no competency measures, and no clarity on the areas of expertise within which they are to work and grow.

This kind of “structure” cannot make for progress of the body and when we speak of the drop-in quality and capacity of lawyers, this is the most germane cause. You cannot progress or plan for what is unmeasured. In my opinion, continuous legal education remains a myth until the approach becomes statistical and scientific with predictable outcomes in view per time.

While there are many lawyers who have thrived in spite of the system, pockets of success do not make for substantive impact for the bulk. Also, this process cannot be driven by the young lawyer’s efforts alone as in certain cases, the problematic paradigm that the young lawyer must “pay dues” to get work, to get pay or earn a promotion without clear yardsticks make it difficult to define what decisions they should be making about their career.

The Nigerian Bar Association through its various sections has in recent times taken steps to resolve this issue; the efforts made in this regard must be consolidated to result in visible impact on the community we service.

Next in line would be abuse and non-professionalism. Renowned motivational speaker, Dr. Myles Munroe (God rest his soul) had an anthem, “when purpose is not known, abuse is inevitable”. The lack of clarity on purpose referred above provides some explanation. Young lawyers need not suffer to be qualified to grow, this prevalent paradigm is primordial.

There are reports of young lawyers being asked to buy food, sweep offices, go and pay children’s school fees and in some cases, do several ludicrous acts in the name of work. It must be first understood that a firm or organisation that employs lawyers

purports to be set up for business. The ethos of professionalism and mutual respect is critical and must be complied with across board.

This is a large contributor to earning the trust and respect of the community we service. Physical abuse? This is a crime to say the least and should not be trivialised. We could go on and on about this point but I will end here and state that if there is a profession that prides itself in decorum, it is the legal profession.; as such, we should not pay lip-service to the notion, we should live it out in every way.

Mentoring and the need for inclusion in more challenging work are also critical issues for consideration. Work allocation to young lawyers is subjective and there is no hard and fast rule, same for mentoring. I imagine this to be a relay race; the competence of the succession is critical and should match or even surpass that of the preceding runner. The overriding mindset should at all times be intentional training towards competence.

Where the concerns outlined above relating to the prescription of competency measures are dealt with, work allocation would not even be up for discussion. In addition, it is my view that more comfort should be expressed with the development of young lawyers. The insecurities that ensue are valid and cannot be obviated; however, an investment in a young lawyer is paying it forward, the benefit does come around.

Lastly and I would say most important, would be the creation of a healthy working environment. Environment in this context transcends, air conditioners and a pretty office, it is the structure that is put in place to enable a good work flow and wellness.

Are there policies that govern relations between the human resources? Is there a healthy leave policy? Hours of work? Team enhancement activities?

It is rumoured that substance abuse amongst lawyers is now at its highest.

The demands of the market mandate increased output but this should not be a ground for letting our wellness go.

Stress induced slumps at work, health breakdown from consistent unhealthy work habits all need to be cut down significantly.

Young lawyers while in school have faith that the profession holds promise; many have been severely disappointed and a vast majority are trudging on without home in view.

Critical resolutions to these issues and the many more that for want of time cannot be elaborated on, are required and that right early.

Again, my two cents.

Oyeyemi Oyeyemi Aderibigbe is a Senior Associate at Templars. She is also the current Vice-Chairman of the Young Lawyers’ Forum of the Nigerian Bar Association -Section on Business Law and the Young Lawyers’ Committee Liaison Officer of the African Regional Forum of the International Bar Association.

Feedback – Oyeyemi.aderibigbe@ templars-law.com ; yemiimmanuel@ yahoo.com.

The column gives perspective on various issues young lawyers deal within the course of their career and how they can optimise their journey.

Politics & Policy BUSINESS DAY

Thursday 26 April 2018

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Court nullifies National Assembly’s Electoral Act amendment

Herdsmen killings: Buhari losing control of government, says NDP

…It is victory for democracy - stakeholders …As INEC sensitises Lagosians on PVC collection INIOBONG IWOK

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n Abuja Division of the Federal High Court has nullified the amendment of Section 25 of the Electoral Act passed in February by the National Assembly.

In a judgment delivered yesterday, the court presided over by Justice Ahmed Mohammed, stated that only the Independent National Electoral Commission (INEC) had the powers to create an election timetable for the country.

The judge also ruled that any attempt by the National Assembly to amend the Section 25, as done by the legislature, must first require an amendment of the 1919 constitution.

Recall that the Accord Party (AP) had filed the application after both chambers of the National Assembly attempted to implement Section 58 of the constitution which allows the legislature to override the decision of the President.

Accord Party in the suit had asked the court to determine if INEC was not solely empowered to carry out its function of overseeing the election timetable in Nigeria.

The application was part of events that trailed the decision of the National Assembly to reorder the sequence of the

Saraki

2019 general election, putting the presidential election last.

However, the decision of the lawmakers had generated debate in the polity, while some pro-Buhari senators had said the amendments was targeted at President Muhammadu Buhari.

The new election sequence by the National Assembly would have make the National Assembly election first in 2019, then followed by the Governorship, state Houses of Assembly while the presidential election was fixed for last.

This was against the sequence released by Independent National Electoral Commission (INEC) which listed presidential and National Assembly elections first while the governorship and state Assembly elections were to follow.

Buhari had immediately

refused to assent to the bill, stating that the amendment was a violation of the constitution.

However, reacting to the judgment, an Ilorin-based lawyer and senior advocate of Nigeria (SAN), John Bayesha, said the judgment was in order with the provision of the constitution which gave only INEC the power to set election sequence for the country, while added that the judgment could however, be appealed.

Bayesha said the amendment could not stand without an amendment to the constitution which the electoral laws derive it powers, while urging the lawmakers were only embarking on fruitless effort.

He said: “I said it at that point that the lawmakers’ action would lead to nowhere, what they did was a violation

Osun guber 2018: PDP aspirant, Akingbade, declares interest BOLADALE BAMIGBOLA, Osogbo

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ormer Secretary to Osun State Government, Fatai Akinbade, has declared his intention to vie for the gubernatorial seat under the umbrella of People’s Democratic Party (PDP) in the September 22, Osun State Governorship Poll.

Akingbade’s declaration to be next governor of Osun State was the second of such in Osun State politics after the declaration of an Ile-Ifeborn journalist and publisher of Nigerian News Direct, who declared intention to run for governorship on the platform of All Progressives Congress (APC).

Akinbade, who was a commissioner for Works during the Military Era in Osun State, served as the Secretary to the State Government under Olagunsoye Oyinlola’s administration between June, 2003 and April, 2010, after which he contested August 8, 2014 governorship election on the platform of Labour Party, after he was denied of PDP ticket.

He however, returned to the party last year, when he was approached by the Senator Ahmed Makarfi-led National Caretaker Committee of the PDP. Delivering his letter of Intent to vie for the PDP ticket, in company of large number of his supporters, Akinbade

said with his experience and dedication to the cause, the party should make available its platform for him to realise his ambition to govern the state.

“History has it that I led PDP during its most successful period. In 2003, I was the party chairman that led PDP to the general election and we won all posts vied for. I have also served in government. I was secretary to the state government for over 7 years and we have unmatched records of achievements.

“I have the experience, the courage and exposure to lead Osun state. If PDP can make its platform available for me, by the grace of God, we will return the party to power,” Akinbade concluded.

of the constitution, it is only INEC that has the power, the electoral act derives it powers from the constitution and they went for the one that is cheaper.

“It is a victory for democracy and shows that the court is there to always act as the last arbiter,” he said.

Wale Ogunade, an activist and president of Voters Awareness Initiative (VAI), lauded the judgment of the federal high court, stressing that the lawmakers carried out the amendments because of their selfish agenda.

Ogunade added that the constitution was clear on the duties of INEC and who could set timetable for elections in the country, and advised the National Assembly to focus on passing bills and carrying out oversight duties that would alleviate the suffering of Nigerians.

“I have always said that amendment was not going to stand and was against the law, they have no powers to do what they did; it was a selfish mission, it is victory for democracy that no arm of government can be armtwisted,” Ogunade said.

Meanwhile, the Lagos State Independent Electoral Commission (LASIEC) has mounted advocacy and sensitisation of Lagosians across local governments in the state towards the collection of the permanent voters cards (PVCs).

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INIOBONG IWOK

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he National Democratic Party (NDP) has said that the inability of President Muhammadu Buhari to curtail the increasing killings across the country which is allegedly being perpetrated

by Fulani herdsmen had shown clearly that he was losing control of the administration.

Adewale Bolaji, Lagos State chairman of the party, made the observation in an exclusive interview with BusinessDay, noting that the refusal of the InspectorGeneral of police to obey the order of the president to relocate to Benue and the careless manners the various security agencies in the country were handling the killings were proofs of the failure of the current administration.

Bolaji added that the security of the country had deteriorated in recent times, because impunity was the order of the day in the country, while charging the Buhari administration to arrest and prosecute culprits involved in the killing of innocent Nigerians.

He said: “The killing has started since, what has he done about it? It is very unfortunate that the president is not dealing with the situation. I can’t understand why; if he could initiate an operation against Boko Haram and he has not done the same against these killings. Look at the way the inspectorgeneral of police ignored

Buhari

his directive to relocate to Benue, the man did not obey and he is still in office, it shows he is losing control of this government”.

On the 2019 general election, the chairman stressed that he was not surprised about Buhari’s second term bid, but added that the president would easily be defeated because he has failed to deliver his campaign promises to Nigerians.

Speaking further, he dismissed the anti-graft war of the president, stressing that it was targeted at the opposition and condemned the recent released looters’ list as biased.

“Am not too surprised that the president has declared his intention to contest again… it is admitting that the president has failed if they don’t do otherwise.

“Everyone knows that the incumbent president has failed; some people may believe in him, but Nigerians know he has failed, those with him are there for their selfish interest. Nigerians have lost hope in him because the president has not done well to justify his recontesting for any position,” Bolaji said.

Anarchy looms in Nigeria, constitution now suspended, Fayose warns AKINREMI FEYISIPO

Ekiti State Governor, Ayodele Fayose has raised the alarm that Nigeria was drifting towards a state of anarchy, calling on the international community to intervene and rescue the country from turning to a war zone, where mass killings is a usual occurrence.

The governor who was reacting to the killing of 18 worshippers and the two priests in Benue State allegedly by herdsmen, President Muhammadu Buhari’s withdrawal of $496 million from the Excess Crude Account (ECA) without approval of the National Assembly and the controversial arrest of Senator Dino Melaye, said it was obvious that “under

this government of President Buhari, the constitution is on suspension.”

According to him, If half of the level aggressiveness being shown by the Police on the arrest of Senator Dino Melaye because of seeming concocted allegations is shown on the killings by herdsmen across the North Central States and other parts of the country, the rampaging killer herdsmen that are even killing policemen would have been brought under control.”

Special Assistant to the governor on Public Communications and New Media, Lere Olayinka, said in a statement issued on Tuesday night that “it is alarming and curious that Father Joseph Gor, one of the Catholic Priests that were murdered in Benue State to-

day, raised alarm on January 3, 2018, through his Facebook account on the occupation of Mbalom community by herdsmen. Yet, the priest was killed!”

The governor asked; “Why is the federal government allowing this seeming ethnic cleansing in Benue and other middle-belt States, such that President Buhari and the entire members of his government do not see the wanton killings as anything to be worried about?

“When did Nigeria degenerate to the level that people can no longer worship peacefully in their churches or go to their farms? When did Nigeria become a state of anomie where people are killed even after raising alarm that there was threat to their existence?”

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BUSINESS DAY

Thursday 26 April 2018

GARDEN CITY BUSINESS DIGEST Niger Delta energy transition and clean environment may gulp $100bn As ERA prepares youths to take over from fossil to renewable energy •Post petroleum economy youth camp held in PH •Decarbonisation scheme now a serious agenda in Niger Delta •Clean energy now a new hunger •Nigeria has enough money to survive outside oil IGNATIUS CHUKWU

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campaign is building up to demand for the floating of a $100Bn environment clean up fund that may lead to energy transition scheme from fossil to renewable energy.

Already, groups are pressing for “Leave Oil in the Soil’ to force Nigerians to look for wealth outside oil and gas.

The Environmental Rights Action (ERA) led by Godwin Uyi Ojo says Nigeria was sitting on huge wealth and money but seems blinded by oil money.

Now, he told BusinessDay in Port Harcourt that there is the need to set aside $100Bn to clean up the oil region that would help in the energy transition from fossil to renewable energy, the new global focus.

Youths are already being camped in the oil region to be the soldiers of the new economy outside oil and gas. They are to be the new masters in the demand for clean energy and wealth outside oil/gas. The camping, a new strategy, took place at Visa Karina Hotel off Olu Obasanjo Road in

Port Harcourt by ERA. Ojo, director for ERA/Friends of the Earth, Nigeria, told BusinessDay that the objective is to provide the training, the knowledge and the empowerment to confront environment issues in Nigeria today and for the future.

He said environmental impact of oil is devastating. “You can imagine the amount that was taken from a small Ogoni in the days of oil there. Now, the UNEP Report is requesting that an initial sum of $1Bn be set up as environment fund for clean up for the first five years. So, you can see the monumental impact; the social impact, the social cost, the environment pollution and deaths that have occurred. This is where the ERA is calling for $100Bn Clean up and Restoration Fund to be set up for the clean up of the entire Niger Delta region.”

He said the youths must be integrated in the solution mechanism of the environment and discussing a post-petroleum economy. “We need to prepare them for the energy transition, from fossil to renewable energy.”

He talked about the global campaign on de-carbonisation; the need for energy transition to renewable energy, to clean

Godwin Uyi Ojo

energy. “Already, we are building schools’ environment clubs to create a feel of and hunger for solar energy gadgets and other appliances to the youths.

More importantly, we want to identify some youths that may be business-oriented and equip them for entrepreneurship in the renewable energy sector. This is the objective of the camping in

2018.”

He declared that the ‘Leave Oil in the Soil’ campaign has found expression in the Paris Agreement toward global decarbonisation in 2030 in cars, electricity supply, etc. “Our effort here is geared towards reducing carbon emissions. The Nigerian Government has pledged 20 per cent carbon emission reduction

within the Paris Agreement, unconditionally. We do not see many programmes in place to actualize this. We don’t see how they will realize this without involving the youth and other segments of the society.”

He said Nigeria was far behind, yet to put the laws in place.

“There is no Climate Change Agency or Commission. We need laws, we need institutions.

Proposals have been made but they are yet to pass the law at the National Assembly. We are therefore calling on the FG to put the right framework in place. They should put in place the ministry that is required to put in place the structures and required protocols for climate change. One of them is the Climate Change Guild before the National Assembly. We want them to pass it as soon as possible.

“Many people are talking about how much money should be available for stealing and misappropriation. Nigeria has enough money to survive and they did so in the 1960s. Oil money is a mere addition. Every person can survive without oil.

The question is, how prepared is Nigeria in the event that oil is exhausted. Then the ques-

tion is answered because oil is a finite resource. It will surely be exhausted. The concern is how the world will live away from dirty energy such as oil, coal, gas, and move to renewable energy.” He said the group would go beyond talking to doing.

He insisted that the devastation of the Niger Delta that the oil majors have so far caused could not be corrected in a lifetime, thus they must first do clean up; any other thing is bonus or palliative.

He commended the Ogoni for embracing the struggle to leave oil in the soil, saying they needed commendation and compensation. He said there opportunities in it from the UNDP and European Union.

Leaving oil in the soil, he insisted, would not spell doom for Nigeria but would rather liberate Nigeria from oil-dependency syndrome. “It helps Nigeria to see that there is money everywhere.

This is because there is so much that can be created outside oil and gas.”

Some of the participants drawn from Delta, Bayelsa, Rivers, Akwa Ibom and Cross River states vowed to join the new army to fight for the environment and to seek energy sources from non-oil elements to help rebuild the environment of the oil region. Tammy Tuasi Steven from Goi Community, Gokana, and Rejoice Michael, all from Rivers State told newsmen that if they could be able to learn about renewable energy and apply the skills make gadgets that would supply light and other appliances, that kerosene or gas would be a thing of the past.

East-West Rd: The village pillaged and left desolate by kidnappers

Port Harcourt by Boat With IGNATIUS CHUKWU

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he village is close to Ahoada town from B a y e l s a o r Wa r r i end. Those who zoom across this village in the day think all is well. They may never know that the houses the see are all empty; no light, no life in them anymore.

There are two hottest s p o t s b e t w e e n Mb i a m a Ju n c t i o n a n d C h o b a i n PH from that route, robbers and other hoodlums operate everywhere else i n Ni g e r i a t h e s e d a y s .

These two particular

spots (Onekaba area near Ahoada and Rundele area near Choba) have assumed a new notoriety.

Government has simply surrendered authority in those places, just like S erg eant D o e’s Lib eria once lost authority in Nimba County to Charles Taylor an d paid dearly for it afterwards; just like Obasanjo’s Nigeria lost a u t h o r i t y t o Ye s u f u i n a p a r t o f Ma i d u g u r i t o Boko Haram and is paying dearly for it to day.

These things start small but end big.

Onekaba village is not more than 3km to Ahoada but it has been overrun by c r i m i na l ga n g s . According to nearby residents, the place has been deserted by the few good men not yet killed. The other day, a Jeep lost its tyre and a bolt there at about 5pm and had to seek help. As the driver and a one colleague went to Ahoada town on bike to lo ok for towing van, a journalist and the Oga leaned on the Jeep to wait.

O ne bus sp e e ding from PH slowed and shouted at them; Leave here now, this place is not good, leave now. As if that was not enough, another driver did the same, urging them to flee.

Fe a r n o w e n v e l o p e d them and they began making frantic calls to Ahoada.

Bike riders or would-be kidnappers flew past and threw looks at them. Now, a hefty looking young man rode on a very new bike to the spot, took measured looks at the jeep, and right in th eir front, d id a Uturn. The fear became unbearable. How can anyone not even care to hide his mission? Has he gone to fetch his gang?

More frantic calls and the toying team arrived.

It seemed to be a game of who would arrive first to have them ; the gangs or the toying team.

Now, gory details spilled out. They listened to witnesses: “I have been in this Ahoada for 41 years and I have lived through de cades of transforma-

tion of this place. I am an Ogoja man but I know this place inside out. No soul lives here anymore. Everybody is either dead of on the run. Look at every single house, there is no occupant anymore. See a whole NNPC franchise feeling station, can you see any life? There is no light and no life in any building here. Everybody has died or has fled. The gangs come everyday and kill or kidnap.”

The travellers now needed speed. The towing man said: “No amount of money would have brought me here if it had passed 6.30pm. If any motor stopped here soon now, even if you people are 50, the boys are able to kidnap all of you and take you into this thick bush. There, they will b ea t y o u t i l l y o u v o m i t m o n e y . Th e y d o n o t hear ‘I beg ’; they do not hear ‘I have no money’.

Money will come out by forc e”. Chilly moments took over.

In the bush, he went

on, the boys would separate their victims; “They will choose those they want to rape first. They will choose those that would be taken to native doctors for ritual killing; they will choose those that will have to beat till money comes out. At any point you die, so be it. Ah, people die in their numbers every time here oh”.

From this detailed and seemingly authoritative account, there is no hint of security intervention.

Rather, it is that the residents could not bear the raids and simply fled, that is, those that had not been killed.

Th i s c o n f i r m e d h o rrible accounts earlier told by survivors of various incidents around that area and around Rundele near Choba. One family driving late in that area was bundled into the forest with their twin baby boys until God showed up for them. The kidnappers claimed to be Don Wanni boys then. The matter is so drastic that corporate

businesses like filling stations shut down. This was what happened at the Obingwa area near Aba during the Osisi-kankwu reign.

The situation is getting out of hand because entire villages are collapsing to criminal gangs. If nothing is done, territories will b e share d out to gang s to r un as sh eriffs. This could be why some people welcome the Rivers State N e i g h b o u r h o o d Wa t c h Agency, believing that no mater what, they would a t l ea s t re ta ke t h e l o s t communities. The fears of likely abuse for electoral a d v a n ta g e m ay b e r e a l but the consideration for life seems uppermost in people’s minds at the moment. There is the need to bridge the big gap between the police and the vulnerable masses especially in the communities a n d s u b u r b s . Fo r n o w , Onekaba or whatever the place is called has fallen.

Gangs now rule the area, and they are not shy.

Thursday 26 April 2018

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NEWS

Developers avoid bank loans, embrace joint ventures as interest rates soar … Alta Semper’s $18m investment in Healthplus seen boosting retail sector CHUKA UROKO

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esidential real estate developers are now avoiding bank loans and embracing joint venture arrangementsbetweenlandowners, developers and providers of capital. The bank loans are considered too expensive at 25 percent charged as interest rate.

In the last 12 months, lending to the construction sector has declined by 8-10 percent as banks have become lending-shy, especially to real estate, which, because of its long gestation period, does not give quick returns on investment like oil and gas or fast moving consumer goods (FMCGs).

This has affected investment inthesectorwithasignificantcontraction in construction activities.

But the recent investment of $18 million by Alta Semper Capital LLPinHealthplusisapositivevote for the small to medium business sector in Nigeria.

Munachi Okoye, managing director, MCO Real Estate, explains in a recent report that Healthplus is a major space occupier in multiple retail malls in Nigeria and the investment, which is positioned to enable the retailer expand its retail footprint in Nigeria, can only be a positive development for the modern retail sector in Nigeria.

Residentialdevelopersarestill able to source off-takers, particularly for well-located mini-estates in proximity to a good road network and for sale at a competitive price. Developing up to shell level enables the developer offer product at more competitive sales price with the buyer able to complete to his own price and standard of finish and at his own time.

Deliveringhousesatshelllevel is a growing trend in the residential property market and a good numberofdevelopersembracing the trend. Lekki Gardens made a huge success of this trend before other developers saw the opportunityitofferedboththedeveloper and the buyer.

“It offers low entry level for home buyers, especially midincome buyers,” explains Gbenga Olaniyan, CEO, Estate Links, saying it also offers buyers the opportunity to finish their homes at their pace and in the way and manner they want it.

Okoye highlights interesting trends in some investment destinations, saying these destinations offer pockets of attraction for residentialdevelopmentandthey include Lekki, Ikoyi and mature mainland destinations such as Ilupeju and Yaba.

“For prime residential development, there is a move away fromhighpriceddetachedhouses to higher density high quality

multi-family apartment complexes within mixed use developments branded as live-work-play schemes inclusive of office and retail uses,” he says, adding that highdensitiesareneededtomaximise returns from high priced land plots in desirable locations.

There are value for money apartments which are priced for a quick sale with the expectation that profits are derived from a higher turnover rather than single large sales and these are apartments priced from N35 million–N60millionformainland LagosandfromaslowasN90million in Ikoyi.

The hospitality sector had very interesting trends. As at the last quarter of 2017, Lagos had 4,800hotelroomscomparedwith 3,900 in Abuja with an increase in supply of 25 percent and 10 percent, respectively, over the last four years.

“Hotel room rates have remained fairly stable with many hotels operating highly discounted rates in order to attract business. This is not expected to change any time soon over the coming months,” Okoye says, adding, “Room occupancy stood at 48.5 percent in January, traditionally a slow month with a pickup to 64 per cent by February.

This compares favourably to the February 2017 occupancy rate of 56percentandisareflectionofthe pick-up in the wider economy.”

South West incident: NCAA mandates airlines to comply with FAA detective IFEOMA OKEKE

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he Nigerian Civil Aviation Authority (NCAA) has issued an All Operators Letter (AOL) 070 requiring mandatory compliance with the United States Federal Aviation Administration (FAA) Emergency Airworthiness directive by all operators in Nigeria, forthwith.

The AOL, endorsed by Kayode Ajiboye on behalf of Muhtar Usman, director-general, NCAA dated April 23, 2018, addressed to all airlines and aircraft owners, is for immediate compliance.

The issuance was an aftermath of a recent incident involving a South West Airlines

(American carrier) in which one of its engines exploded mid-air and the attendant Airworthiness Directives issued by FAA. A statement signed by Sam Adurogboye, NCAA spokesman, said upon the receipt of FAA Emergency Airworthiness Directive AD 2018-09-51, the authority swung into action by carrying out a review on all the airlines to determine the operators of aircraft type with CFM567B engines that were essentially affected by the circular.

“It was established that only two operators have the aircraft type in question in their fleet but the good news is that they are yet to reach the 30,000 cycles

to which the Emergency AD requires immediate ultrasonic inspection of the fan blades within 20 days.

“However the Authority went ahead to notify all the Nigerian operators about this development to enable them carry out the required inspection when it is eventually due.

“Nigeria air travellers are assured that the Authority will continue to enforce compliance with Safety Regulations at all times for a safer aviation and any violations will be treated in line with the provisions of the Nigerian Civil Aviation Regulations (NCARs),” the statement read.

AMES to kick-start 250,000 tons pipe, coating plant in Edo … as state pledges support infrastructure

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n the back of assurances of adequate support infrastructure by the Edo State government, Atlantique Marine and Engineering Services Limited (AMES) says it has concluded plans to work with the state government to construct a 250,000 tons-perannum pipe and coating plant in the state.

Governor Godwin Obaseki, who received the management team of AMES Pipe Mill and Coating Limited and UDECM Incorporated, United States of America, at the Government House in Benin City, on a courtesy visit, said the state was willing to provide requisite infrastructure to attract and sustain investments in the state.

The governor assured the investors that he was committed to improving the ease of doing business, noting, “The state has provided 996 hectares industrial estate, improved security and now has a one-stopshop to encourage investors in the state. The industrial estate is being developed to encourage production of locally-made products as well as create domestic market for the products, which will serve the country.

“We are committed to developing programmes that will attract more businesses to the state. We are revamping the state’s security architecture. We are also making plans to facilitate sufficient supply of power for businesses to operate within

the industrial estate.”

Earlier, the spokesperson for the delegation, Charles Akhigbe, said the funding for the 250,000 tons per annum pipe mill and coating plant had been secured.

“The plan is to carry out the ground-breaking in two months’ time. We anticipate that the project will be delivered within a year. Within one year, we intend to commence production of pipes for the construction industry and in another year and half, we should be producing pipes for the oil and gas industry.”

He applauded the Obasekiled administration for developing the ease of doing business framework.

Tackling malaria: Firm to distribute free drugs to 20m Nigerians

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s part of its support to the federal and state governments in the fight against the scourge of malaria, Superior Pharmaceuticals, in commemoration of the World Malaria, will distribute free malaria drugs to 20 million Nigerians nationwide.

IkeOkeke,president/CEO,Superior Pharmaceuticals, observes that the incidence of malaria has for yearsposed significantdrain in Nigeria’s GDP and a major cause of death to children five years or younger.

Okeke says the free distributionofSumetherPlus,acombination of Artemether and Lumefantrine therapy at selected pharmaceuticaloutletsacrossthecountry, will be on till the end of April 2018.

He says the Sumether plus is a brand of ACT recommended

by World Health Organisation as a first line drug in treating malaria infestation, saying the company is committedtosupportthegovernment by providing highly effective

and genuine ACT tablets, syrup and injections for therapeutic treatment and cure of malaria infestation.

According to Okeke, “All hope is not lost but the government in partnership with foreign organisations must show willingness and commitment to combat this epidemic in Nigeria.”

Okeke is worried that Insecticide treated mosquito nets embraced by donor agencies has limited use in the fight against this insidious enemy. A time-tested solution used by most developed nations to eradicate malaria is still been scorned by Nigeria and other Africans.

Hepointsoutthattoeffectively combat the spread of malaria which pose a major public health hazard with significant man hour andproductivitylostNigeriansare encouragedtokeeptheirenvironment clean and use insecticide treated mosquito nets as often as they can.

L-R: Emmanuel Daniel, founder/chairman, The Asian Banker; Ebehijie Momoh, head, retail banking, Standard Chartered Bank Nigeria (SCBN); Simpa Adaba, head, wealth management, Standard Chartered Bank Nigeria, and David Gyori, CEO, Banking Reports, London/International Resource director,The Asian Banker, at the Asian Banker Excellence in Retail Financial Services Awards (for West Africa 2018) in Lagos recently, where Standard Chartered received, for the 3rd year in a row, the Best Wealth Management Bank in Nigeria award.

PIB: Senate to pass Host Community Bill before long recess IGNATIUS CHUKWU

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limmer of hope came the way of the passage of the Petroleum Industry Bill (PIB) as it relates to the host communities in a legislation called Host Community Bill (HCB).

This is because the Senate committee chairman on Petroleum Industry Bill, Kabiru Marafa, said in Port

Harcourt on Wednesday, that the Senate would endeavour to pass the Bill before its long vacation.

He said the senate attached great importance to the passage of the Host Communities Bill, adding that the initiative to segment the bill was to ease the passage of the Petroleum Industry Bill.

The PIB has lasted over 15 years in the National As-

sembly until it was broken into three different bills including the one for governance of the industry, the one for financing, and one for host communities.

The senator said: “On the assumption of office, the eight National Assembly took it upon itself to break the jinx and pass the Petroleum Industry Bill once and for all”. It is not clear if by the time the Bill would be passed, there would be

a chance to sign it before the life of the administration ends.

Reacting, the Rivers State governor, Nyesom Wike, stated that the passage of the Host Communities Bill would give oil producing communities a sense of belonging.

Speaking at the Government House Port Harcourt during a courtesy visit by the senate committee, Wike said: “This is an important

aspect of the Petroleum Industry Bill as it concerns the host communities. The host communities will become a component part of the entire process. The oil producing communities are bedevilled by all kinds of environmental challenges.

The passage of the host communities bill will give them a sense of belonging.”

Governor Wike added that the passage of the bill would also enhance the

security of petroleum pipelines because of the involvement of the Host Communities in the production process.

According to the governor, setting aside a certain percentage of funds for the development of host communities was vital.

He urged the committee to visit all slated communities for the necessary interaction as regards their peculiar needs.

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Thursday 26 April 2018

Live @ The Stock Exchange Lafarge Africa says committed to delivering strong margins Stories by Iheanyi Nwachukwu

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afarge Africa Plc has restated its commitment to deliver strong margins in its Nigerian business as a result of the company’s commercial and energy strategies.

This assurance comes on the heels of the company’s first-quarter (Q1) results that were affected by timing of inventory movements and performance in South Africa.

Lafarge Africa recorded net sales of N81billion in Q1 of 2018, slightly lower than the corresponding period in 2017 by 1 percent due to volume effects in Nigerian and South Africa.

The company is of firm belief that full year outlook for the cement market in Nigeria remains with positive signs of recovery in March.

Lafarge Africa noted that its business turnaround actions will be consolidated fur-

ther in 2018 through energy optimisation as well as commercial and logistic improvements. For South Africa, the economy is expected to grow in 2018. The turnaround plan of the South African operations is focused on cost containment, commercial transformation and industrial stabilisation.

The company’s recurring earnings before interest, tax, depreciation and amortization (EBITDA) margin in Nigeria stood at 29percent, thanks to strong operational performance.

“The South African operations are more stable following turnaround measures including price adjustment and cost reduction initiatives,” said Bruno Bayet, Chief Financial Officer, Lafarge Africa Plc. “Lafarge Africa Plc commercial, logistic and industrial operations in Q1, 2018 continued to improve strongly despite inflation. “The energy improvement plan continued to outperform with increased

use of Alternative fuel and Coal while logistic and commercial initiatives helped to sustain market share during the first-quarter,” Bayet noted.

The overall goal is to create value for shareholders through an attractive growth profile and good margins.

A strong cement market in 2018 portends well for Lafarge Africa Plc, the cement manufacturer with operations in the country and South Africa, say analysts.

In April 17 note to investors, research analysts at Rencap, an investment bank, reckon Lafarge’s Nigeria operations performed well despite its results for the fourthquarter of 2017. According to the investment bank “Lafarge’s current share price is at a discount to fair value and we maintain our buy rating as we expect cement prices in Nigeria to remain strong.”

Basing its recommendation on the 32percent rise in earnings before interest, tax, deContinues on page 33

Custodian and Allied shareholders approve name change, dividend payment

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he shareholders of Custodian and Allied Plc on Tuesday April 24, 2018 approved a change of the group’s name to Custodian Investment Plc in a bid to enable the company expand its operations within the financial services industry.

The shareholders approved the resolution to change the holding company’s name at the company’s 23rd annual general meeting (AGM) held in Lagos.

Custodian and Allied Plc has subsidiaries such as Custodian and Allied Insurance Limited, Custodian Life Assurance Limited, Custodian Trustees Limited and CrusaderSterling Pensions Limited. The change in name will however, be subjected to the approval of the Corporate Affairs Commission (CAC).

At the meeting, the shareholders received and adopted the audited financial statement of the company for the year ended December 31, 2017 together with the reports of the directors, auditors, and the audit committee thereon.

The shareholders also approved for the board of Custodian and Allied Plc to proceed in paying a dividend of 32 kobo per every 50 kobo ordinary share, to shareholders whose names appear in the register of members at the close of business on Wednesday, April , 2018, bringing total dividend paid for 2017 financial year to 42kobo.

Various shareholders who spoke at the AGM commended the board and management of the company for the impressive performance and dividend pay-out at a time when some companies have not been able to pay dividend to their shareholders.

Addressing shareholders at the meeting, Omobola Johnson, chairman, Custodian and Allied Plc noted that after a moderate growth in the previous year, global economy witnessed steady improvement in 2017 on the back of accommodative monetary and fiscal policies as well as robust global trade.

According to her, following the meltdown of the stock market and the relatively low

interest rate regime of 2016, the environment in 2017 was more favourable to companies with net investible funds such as Custodian and Allied Plc among others.

She said the various revenue streams including premium income, investment income, fees and commission recorded significant growth while the company’s costs were effectively managed, resulting in a 37 percent increase in the net profit of N7.3 billion in 2017 compared with N5.3 billion and comprehensive income of N8.02 billion compared with N5.04 billion in the corresponding period of 2016.

On the future outlook, the chairman noted that inspite of the uncertainty that usually accompanies election cycles in Nigeria, she was confident that the management was well- positioned and adept enough to weather the storm and continue to take the company to greater heights.

The insurance group recorded a growth in owner’s equity by 21 percent from N20.3 billion in 2016 to N35.4billion in 2017.

Thursday 27 April 2018

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Live @ The Stock Exchange Access Bank gets shareholders’ approval to increase existing dollar debt issuance programme to $1.5bn heanyi Nwachukwu

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he shareholders of Access Bank Plc on Wednesday April 25, 2018 approved for the board of directors to increase the size of the bank’s existing US Dollar debt issuance programme to $1.5billion.

The resolution formed part of the special business at the bank’s 29th annual general meeting (AGM) held in Lagos.

The shareholders approved for the debt issuance programme to be done through the issuance of non-convertible loans, notes, bonds and or any other instruments whether by way of public offering, private placement, book building process, reverse call enquiry or any other method or combination of methods, in such tranches, series or proportions and at such dates, coupon or interest rates within such maturity periods and upon such terms and conditions as may be determined by the Board of Directors subject to obtaining the requisite approvals of the relevant regulatory authorities.

During the ordinary business at the annual general meeting, the shareholders received and adopted the group’s audited financial statements for the year ended December 31, 2017 and the Reports of the Directors, Auditors and Audit Committee thereon.

The board of Access Bank Plc also received the approval of the shareholders to pay final dividend of 40kobo per every 50kobo ordinary share, bringing the total dividend paid for 2017 financial year to 65kobo per share.

The bank’s ability to generate strong financial performance despite the adverse market conditions and the

Herbert Wigwe, group managing director/CEO, Access Bank Plc

residual issues from the recession is a testament to the tenacity of its management team and staff.

In the year 2017, Access Bank recorded strong top line growth as gross earnings improved by 20 percent to N459billion.

Significant higher provisioning, arising from the macroeconomic headwinds, affected profitability with profit before tax reducing year-on-year to N80billion in 2017 from N90billion in 2016.

Total Assets as at December 2017 stood at N4.1trillion, representing an 18 percent increase over the N3.5trillion recorded in 2016 while loans and advances grew by 11 percent to close at N2.1trillion in 2017 from N1.9trillion in 2016.

“Our overall performance underscores our commitment to the continued execution of our strategy in order to generate sustained economic returns, while

maximizing shareholders’ value”, Mosun Belo-Olusoga, chairman, Access Bank Plc told shareholders at the meeting.

As the bank moves on to the next phase of its growth story, “the board is positive that we will achieve our growth aspirations through a sustained and sharp focus on our strategic priorities,” she said.

“Operating efficiency will remain at the hearts of our decisions and we will continue to focus on effective execution of our strategy and on delivering value to shareholders”, Belo-Olusoga added.

Herbert Wigwe, group managing director/CEO, Access Bank Plc told shareholders at the meeting that “though we have made significant progress in delivering on our growth objectives, more work lies ahead to ensure that we are wellpositioned for longer-term value creation”.

Lafarge Africa says committed to ...

Continued from page 32 preciation and amortisation (EBITDA), Rencap reckons 2017 was a “clean-up year” for Lafarge.

Commenting on its first quarter result for 2018 Michel Purchecos, CEO Lafarge Africa Plc, said that continued improvement plans in logistics, operations and energy are targeted at delivering margins above their 35percent target in 2018.

The company reported

net sales of N81 billion and a recurring EBITDA margin of 29percent for the first quarter of 2018. “We continued to deliver strong margins in our Nigerian business as a result of commercial and energy strategies” he said. Purchecos also noted positive signs of market recovery in March.

One-off cost items (such as the N0.8billion SAP implementation) and high finance costs weighed on the company’s latest results. Opera-

tional issues in South Africa and high borrowing costs, however, remain risks. These risks aside the company’s valuation looks compelling, according to Rencap.

In a note released March, after a successful and fully subscribed new rights issue of, Rencap upgraded its rating of Lafarge from sell to buy.

A stronger balance sheet position, growth in the Nigerian cement market and a rebound in the economy were the reasons for the upgrade.

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34 BUSINESS DAY NEWS As Benue burns, Buhari focuses on...

Continued from page 1

Melaye and police saga on the day the deadly Fulani pastoralists or terrorists were decimating Benue state without resistance.

In the latest attack, about 22 persons were gruesomely murdered by the marauding herdsmen in Daudu communities in Guma local government area of the state.

This is coming 24 hours after two Catholic priests and seventeen of their parishioners were slaughtered in an early morning raid in Ayar Mbalom in Gwer-East local government area of Benue state.

The attack, according to eye witnesses, started around 5.30am and targeted the St. Ignatius Quasi Parish in Ukpor-Mbalom as worshipers came in for their morning devotion. The herdsmen also ransacked the entire village, setting ablaze over 80 houses and destroying foodstuffs and anything in sight.

Despite the frequent reassurances by the government and the launching of a military exercise – Ayem Akpatuma (Cat Race), to end the killings, the Fulani herdsmen have remained unperturbed and have intensified the killings in the state, moving from communities and towns bordering Nassarawa state into the Benue hinterlands.

In fact, the intensity and ferocity of the attacks have increased as it appears the military exercise, which was initially billed to last for six weeks but have been increased by two months, succeeded in cag-

ing the people while giving free movement to the herdsmen to continue their killings with little or no resistance.

Over the last two weeks alone, about 100 people have been killed by the herdsmen in various parts of the state.

“With the magnitude of the crisis we have at hand and, given the on-going killings despite Exercise Ayem A’ Kpatuma, we appeal to President Muhammadu Buhari and the federal government to convert the exercise to a full military operation to chase out the killer herdsmen from our communities,” the governor, Samuel Ortom pleaded during one of his frequent visits to the IDP camps in the state.

“There is no doubt that the level of killings and destruction of property in Benue by herdsmen is comparable to what is happening in the Northeast and, with the rains fast approaching, the humanitarian crisis may get out of hand because many of the IDPs sleep outside, and we all know what that means if the rains set in.”

But even the governor abandoned ship and went off to China on a two-week holiday to cool off while his people are still being killed.

A day before he left though, he took time to admonish the over 175,000 Internally Displaced Persons, being harboured in ramshackle camps across the state, to return to their homes and use stones to defend themselves against the Fulani invaders.

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He said his advice has become necessary because he was tired of keeping IDPs in camps and the state government no longer has the funds to sustain the camps: “David in the Bible used ordinary stone to defeat his enemy, it is now time for you to stay at home and use the stone in your homes to defend yourself instead of running away,” Ortom charged the hapless IDPs. “I believe in the rule of law, equity and fairness, but I cannot continue to keep IDPs and l can’t afford to have another IDPs in Gwer West” he said.

President Buhari however, was unperturbed by the killings as he was busy hosting APC governors at the presidential villa to discuss his re-election bid and plans for the party’s convention. His media team just issued a statement condemning the killings and that was it.

The seeming incapacity or unwillingness to confront the killings and its perpetrators frontally shows the president has conflicting roles as patron of Miyetti Allah and the president of the country.

Rising from a meeting at the house of its leader, Pa Reuben Fasoranti, in Akure, Ondo state, the Yoruba cultural group warned that if the president failed to choose one of the two responsibilities in the interest of the country, the National Assembly should initiate impeachment proceedings against the president for dereliction of duty and also for spending money without budgetary approval.

•Continues online at www.businessdayonline.com

L-R: Anthony Osae-Brown, editor, BusinessDay; Juliet Ehimuan-Chiazor, Google country director, Nigeria; Frank Aigbogun, publisher/ CEO, BusinessDay; Adeola Ajewole, advert manager, and Oghenevwoke Ighure, executive director, digital services, during the courtesy visit by the BusinessDay management team to Google to discuss area of collaboration between the two companies in Lagos, yesterday.

Pic by Olawale Amoo

BusinessDay capital market, investors forum...

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thriving market.

The event is an annual gathering of government officials, apex and self-regulatory organisations, all capital market operators, investment bankers, policy makers, chief executive officers (CEOs), economists, researchers, analysts, academics, private equity firms, technology startups and firms in need of long term capital.

Currently, the strategic partners for this capital market and investors forum are the Nigerian Stock Exchange(NSE),FMDQOTCSecurities Exchange(FMDQ),NASDPlc,Zenith Capital, Nestle Nigeria Plc, among others. At the Forum, investment andcapitalmarketindustryoperators will also proffer insights regarding the theme of the conference.

Oscar Onyema, chief executive officer, Nigerian Stock Exchange will be the keynote speaker at the conference.

Other speakers include: Patience Oniha, Director General, Debt ManagementOffice(DMO);BolaOnadele.

Koko, Managing Director and Chief

Executive Officer, FMDQ OTC Securities Exchange; Bola Ajomale, Managing Director and Chief Executive Officer, NASD OTC Plc and Haruna Jalo-Waziri, Managing Director/Chief Executive Officer, Central Securities Clearing System (CSCS) Plc. Aside the apex and Self-Regulatory Organisations (SROs), the conference also brings together capital market operators from various trade groups with the nation’s capital market, fund managers, and Pension Fund Administrators (PFAs). The conference is themed “Catalyzing listings in a thriving market”.

Oil is the big elephant in Nigeria’s capital market as the prices at circa $70 are at their highest averages since 2014. International Monetary Fund (IMF) forecasts that Nigeria’s economy will grow by 1.9 percent in 2018, driven by a stronger global economy; higherglobaloilpricesandoutput;FX market stability; and fiscal stimulus.

Amid all these expected positives, the dearth of new listings in equities, debts, derivatives, and Exchange Traded Funds (ETFs) as well as other alternative asset classes is increasingly attracting questions

from many schools of thought.

Nigeria joined the league of Argentina, Turkey, and Hong Kong stock markets which outperformed global equities in terms of returns in 2017. Truly, 2017 was a great year for equity investors globally.

While most major markets posted sizable gains last year, the rising tide did not lift all boats around new listings. The market is expecting MTN Nigeria listing this second half (H2) which will be another big one.

Onyema will leverage this conference today to tell stakeholders further prospects or possible risks to attracting new listings.

Corporate institutions have continued to successfully tap the Nigerian debt capital markets (DCM) to access stable long-term finance to fund key activities that ultimately translate to the development of the economy at large.

Onadele. Koko is expected to leverage the forum to further tell stakeholders how FMDQ OTC Exchange has positioned to bring revolutionary changes in the Nigerian DCM.

•Continues online at www.businessdayonline.com

Thursday 26 April 2018

NRC dilapidated rail infrastructure, negligence...

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ment’s attempt to concession the railway to GE is being delayed by bureaucracy and even sabotage from those benefiting from its present dysfunctional state.

Besides the loss of billions of naira that could be earned if the rail system was working at optimal level, its dysfunctional state is beginning put at risk the lives of Nigerians.

Nigerians wake up from time to time to hear the news of lives of pedestrians and motorists being cut short by moving trains at railway crossing due to the negligence of the railway authorities.

The crossbars at most locations are non-functional, BusinessDay has been told while the NRC staff that are supposed to be on duty to monitor the movement of trains or other pedestrians and motorists crossing the rail track abandon their post, exposing those crossing the railway tracks to the dangers of oncoming trains.

Only last Tuesday, Anthony Osae-Brown, editor of BusinessDay Newspaper cheated death by the whiskers only because he stopped for a lady to go across the road. The few minutes stop for the lady was what saved him from running into the front of an oncoming train at the Iganmu area of Lagos, near the National Theatre on his way to work. ‘’The bars at the rail crossing near Nigeria Breweries, Ijora remained open when a train was approaching. A woman carrying something on her head on the other side of the road was waving at me to stop. I stopped, thinking she wanted to go across the road. As soon as she crossed, I decided to move. That was when the train passed. I never knew she was actually warning me about the approaching train. I was a few seconds away from driving in front of the moving train’’.

Osae-Brown lamented that, as has been the standard safety standard, there was no NRC official with a red flag waving to warn motorists that the train was approaching. Meanwhile, the barriers that were supposed to be lowered when a train was coming remained open. ‘’I was close to committing a government induced suicide. The criminal negligence of the NRC and the government that owns them almost cost me my life.”

Later a road safety official told Osae-Brownthatthebarriersarebad.

“The security officials knew that the barriers were bad but they did not care to put someone there to warn motorists of approaching trains.”

People are routinely killed by trains across the country.

In March 2018, a Youth Corp member, Nneka Odili was killed after a train hit her on Ikeja. She was heading home after the monthly clearance exercise at the Ikeja Local Government Secretariat. She apparently walked unto the rail tracks without knowing that the train was approaching. Obviously, there was no NRC official to warn her or stop her from walking on the track.

In February, in Abuja, a grieving father, Francis Idoko, a staff of the National Universities Commission (NUC) , narrated the sad story of how his son was crushed to death by a moving train around Arab area in Kubwa, Abuja. The son had left to go to work that morning only to be crushed to death by a moving train.

No one was sure of what happened.

On October 25, 2016, a middleaged man was run over by a train in Enugu at Ogbete Railway Crossing

where people are said to be routinely killed by over-speeding trains.

He was killed by a train returning from Port Harcourt during the “rush- hour” in the evening when traders were returning from work.

BusinessDay have been told that beside the non-functional barrier near Nigerian Breweries road, Iganmu; other barriers at Jibowu, Ikeja Along and Illupeju on Agege Motor, are presently non-operational.

Tunde Oni, a Lagos- based businessman, who nearly lost his life while trying to drive pass the railway crossing bars located around the Ikeja Along axis, told our correspondent that it was a good citizen that saved him from being crushed by a moving train wagon.

According to Oni, a stranger jumped in front of his car while trying to navigate from the Agege Motorway into Ikeja, and he suddenly stopped, only for the train to speed pass the track.

“I would have driven in front of a moving train and that would have been the end of me. Usually, when the rail bars were still functional, they would be automatically brought down to barricade the road and prevent vehicles and pedestrians from crossing the track until the wagon passes,” Oni said.

“Today, the story is different because the rail barriers remain open whether the train is passing or not, and usually there is no official of the NRC to flag down vehicles and pedestrians to stop them from crossing.”

Aside the Lagos metropolitan, some terminal operators in the nation’s seaport, have also raised concerns about recklessness of the NRC drivers, who bring in wagons to the ports to evacuate cargo.

They argued that there was an existing working procedure between the NRC and the terminal operators, which stated that the management of NRC must give the terminals about 3-hour notice prior to their wagon coming to the port to lift cargo, but the NRC has not been keeping to the agreement.

The essence of the notice, the terminals said, was to not only prepare cargoes for evacuation, but to also clear the rail track of human activities that could endanger lives and property.

But, according to a CCTV footage shown by management of the Apapa Bulk Terminal (ABTL), during a recent stakeholder engagement organised by the Nigerian Ports Authority (NPA), NRC wagon visited the terminal without notice such that the wagon forcefully pulled down the terminal gate in order to have access into the terminal.

The footage also revealed that the terminal’s gate keeper and a truck driver, whose truck was loading at the point the wagon drove to the ABTL terminal, nearly lost their lives.

Worried by the concerns created by the inefficiency on the part of the (NRC) and lack of synergy between the Corporation and terminal operators in consolidating the gains of moving cargo away from the ports using rail wagons, Vicky Haastrup, executive vice chairman of ENL Consortium, advised NRC to make use of experienced and responsible wagon drivers to avoid man-made accidents in the ports.

Worried by the unnecessary deaths at railway tracks, the House of Representativesrecentlycalledonthe NRC to provide railway level crossing barriers, highway codes and alarm

•Continues online at www.businessdayonline.com

Thursday 26 April 2018

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Request for inclusion of $496m arms fund into 2018 budget untimely - Reps

... assure on passage by May KEHINDE AKINTOLA, Abuja

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ndications emerged on Wednesday that the National Assembly would not accede to President Muhammadu Buhari’s request to include the $496 million arms fund into the 2018 budget.

According to the leadership of House of Representatives, works on the 2018 budget has reached advance stage and slated for passage next week, and would be tantamount to holding Nigerians and businesses to ransom.

One of the lawmakers who spoke with BusinessDay under condition of anonymity argued that such consideration or rubber stamp would constitute a major setback for the new deadline set for passage of the budget.

While responding to BusinessDay inquiry on the status of the Appropriation Bill, Abdulrasak Namdas, chairman,

Africa CEO Forum builds on commitment to women’s leadership in Paris

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he Africa CEO Forum is strengthening its commitment to promoting women’s leadership, initiated three years ago, by hosting the first Women in Business Meeting, in partnership with ESSEC Business School, on July 2 - 3 in Paris.

More than 200 high-level delegates are expected in Paris to talk about influence and personal and business development.

One of the main objectives of the Women in Business Meeting is to co-build the first-ever influential network of African women leaders For three years, through its Women in Business initiative, the Africa CEO Forum has been engaged in promoting women’s leadership, an essential and powerful lever for Africa’s economic development.

Based on the initiative’s success and at the delegates’ request, the Africa CEO Forum is strengthening its commitment by organising this year’s meeting.

Through numerous interactive conferences, inspiring masterclasses and hands-on workshops, the 200 women leaders of African companies and public institutions as well as international companies and consulting firms active in Africa, will work on topics related to high-level personal development and issues related to the development of their companies across the continent and beyond.

The Women in Business Meeting aims to co-build the first influential network of women leaders through the creation of women’s circles of influence. The objective is two-fold: to foster high-level women’s business communities and support a panAfrican vision of women’s leadership.

House Committee on Media and Publicity, explained that all the grey areas surrounding the budget had been sorted out with the Executive.

Namdas noted, “What is preoccupying our minds is budget, budget, budget. Hopefully, we will pass it next week.”

He was however uncertain whether the new request for inclusion of $496 million will be given favourable consideration of the House considering the agitation raised by majority of members when President Buhari’s letter was read by the speaker.

Recall that the members of the House had during the debate on the letter sent by Mr. President expressed opposition to the anticipatory approval granted by President Buhari for the payment of $496,374,470 for the procurement of Super Tucano Aircraft from the United States government.

During the debate, majority

of the lawmakers alleged that the action of Mr. President was an impeachable offence, hence called for invocation of section 143 of the 1999 Constitution (as amended).

Buhari had in a letter titled: ‘Supplementary input to the 2018 Appropriation bill: Purchase of Super Tucano Aircraft from the United States Government,’ dated 13th April, 2018 disclosed that the $1 billion was approved by the State Governors at the Federal Economic Council on 14th December, 2017 where a resolution was passed.

“With the Council approving that up to $1 billion may be released and utilised from the Excess Crude Account to address the situation. Subsequent upon this approval, we are preparing a comprehensive schedule of all the requirements for each of the security services for presentation to the National Assembly for consideration.

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BUSINESS DAY

FIRS records 33.57% increase in revenue Q1 2018 CYNTHIA EGBOBOH, Abuja

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ederal Inland Revenue Service (FIRS) at first quarter (Q1) 2018 recorded a 33.57 percent increase in revenue, amounting to a total of N1.17 trillion from collection of various taxes.

Tunde Fowler, executive chairman of the FIRS, said agency collected the sum of N1,171,588,583,152.96 from January to March 2018, against N778.19 billion recorded in the corresponding period of 2017, which is 69.5 percent of the total target to date.

This shows that there is an increase of N393,395,141,988.50, representing an overall increase of 51 percent in 2018 when compared with the collection performance for the corresponding period in

2017.

Breakdown of the revenue collection shows that Petroleum Profit Tax (PPT) collection rose by 91 percent from N338.29 billion in Q1 2017 to N644.76 billion in the first three months of this year; while Company Income Tax (CIT) rose by 30 percent from N155.57 billion to N202.16 billion.

An aggregate of N269.09 billion was collected as Value Added Tax (VAT) in Q1 2018, compared with N221.38 billion in Q1 of last year, representing a 22 percent difference. Stamp Duty collection jumped by N1.43 billion from N3.08 billion to N4.45 billion, while Capital Gains Tax (CGT) recorded a 179 percent rise from N110.94 billion in Q1 2017 to N309.17 billion in Q1 2018.

However, the education

tax collections fell by N8.06 billion in the first three months of this year to N25.87 billion from N33.93 billion in the first quarter of 2017.

Similarly, the National Information Technology Development Fund (NITDF) levy plunged by 9 percent, as only N163.6 million was generated in the first three months of 2018, compared with N179.17 million realised in the first quarter of 2017.

Also, affected was the consolidated revenue, which dipped by N931.37 million from the N25.7 billion recorded in the first quarter of last year to N24.77 billion in the first quarter of this year.

An analysis of the revenue collection performance indicated that taxes from non-oil sources accounted for 63 percent, while oil tax accounted for 37 percent of the total.

CBN releases administrative sanction for AML/CFT HOPE MOSES-ASHIKE

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entral Bank of Nigeria (CBN), in collaboration with the Attorney-General of the Federation (AOGF), has developed a robust administrative sanction regime for Anti-Money Laundering and Combating the Financing of Terrorism (AML/ CFT), regulations 2018.

In a circular to all banks and other financial institutions, signed by Kevin Amugo, director, financial policy and regulation department, CBN, said the administrative sanction regime had been gazetted to give it legal effect and ensure with FATF and GIABA requirements.

The circular states that a minimum penalty of N20 million shall be charged on deposit money banks for failure to establish written AML/CFT policies and procedures.

On the same infraction Unit Microfinance banks shall pay N300,000, Finance Companies/Bureau De Change/State MFBs N500,000, State Primary Mortgage Bank/National MFB -N1 million, and N5 million for National PMB.

CHANGE OF NAME

I, formerly known and addressed as Miss. Adetunji Folake Dayo now wish to be known and addressed as Mrs. Adesokan Folake Dayo. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Olayemi Dennis Akinlosotu now wish to be known and addressed as Olayemi David Alafifuni. All former documents remain valid. General Public please take note.

L-R: Ogbonnaya Onu, minister of science and technology; Udoma Udo Udoma, minister of budget and national planning; Suleiman Adamu, minister of water resources, and Bawa Bwari, minister of state for solid minerals, at the Federal Executive Council meeting in Abuja. NAN

CHANGE OF NAME

I, formerly known and addressed as Nelson Blessing Uchechi now wish to be known and addressed as Ezenduka Blessing Uchechi. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Cynthia Eseosa Obakpolor now wish to be known and addressed as Mrs Cynthia Eseosa Ituen. All former documents remain valid.

General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Ruby Oluwatofemi Oreoluwa I.F Akinlosotu now wish to be known and addressed as Ruby Oluwatofemi Oreoluwa I.F Alafifuni. All former documents remain valid.

General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Ibrahim Mopelola Monsurat now wish to be known and addressed as Akintomide Mopelola Loveth. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Joshua Isaac Unwaettor Isaac now wish to be known and addressed as Unwaettor Isaac Joshua. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Olubunmi Oyeronke Akinlosotu now wish to be known and addressed as Olubunmi Oyeronke Eunice Alafifuni. All former documents remain valid.

General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Williams Promise Nature now wish to be known and addressed as Mrs Raphael Promise Nature. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Isaac Ismaila Adesola now wish to be known and addressed as Isaac Adeyemi Adesola. All former documents remain valid.

General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Eke Christiana Chinasa now wish to be known and addressed as Mrs Showemimo Christiana Mariam. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Awosiji Dele now wish to be known and addressed as Olasunkanmi Dele Adebayo. All former documents remain valid.

General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as Miss Emmanuella Chioma Nnabuo now wish to be known and addressed as Mrs Emmanuella Chioma Nnabuo-Eguzozie. All former documents remain valid. General Public please take note.

CHANGE OF NAME

I, formerly known and addressed as John Stephen Ibakwu now wish to be known and addressed as John Emmanuel Ebakwu. All former documents remain valid. First bank,unity bank,UBA,Agatu local govt & General Public please take note.

Thursday 26 April 2018

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A6 BUSINESS DAY NEWS Pakistan set to showcase agro food industry at Food West Africa 2018

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ive Pakistani firms will showcase their products at the third edition of Food West Africa, the largest B2B food and beverage industry platform in West Africa, holding at the Landmark Centre in Lagos May 8 -10.

The five companies are related to beverage, juices, confectionary, rice, wheat products, fruit and vegetables, and flexible packaging for food products.

The Agro Food Division at Trade Development Authority of Pakistan (TDAP) said in a statement that it was convinced to participate in the fair following worldwide appreciation of Pakistani food products.

TDAP said it had been working for seamless participation in international food supply chain by focusing on qualitative improvement of products, availability of cold chain and best available storage facilities, international compliance standards and exploiting natural competitive advantage.

“Economy of Pakistan has maintained growth trajectory and registered growth of 5.28 percent in 2016-2017. This pattern of growth is projected to increase in current year.

Agriculture and food sector has been pillar of the economy and Pakistan figures in top commodity producing countries of the world,” the statement said.

It added that Pakistan records annual production of 26.4 million metric tonnes (MT) of wheat, 6.5 million MT of rice, 11.5 million bales of cotton, 1.8 million MT of mangoes, 2.4 million MT of citrus fruit, and so on.

The statement said Pakistan has multiplied exports of traditional agricultural products like rice, mandarin, seafood, mangoes, fresh vegetables, wheat, and sugar, as well as expanded its reach into new product areas such as processed halal meat, entire chain of poultry sector including feed and hatchery, spices, jams, pickels, confectionary, juices and beverages, molasses, tobacco, dairy products, etc.

“Pakistan has simultaneously specialized in production of agricultural machinery like tractors and implements, irrigation machinery, seeds, fertilizers, food packaging, food grade films, crockery, cutlery, and kitchen appliances,” it said.

This edition of Food West Africa, according to its organisers, is expected to attract more than 4,400 industry professionals from 25 countries looking to make new wholesale, retail and food service contacts in the industry as well as host +100 local and international exhibitors showcasing exciting new F&B products, services and equipment from across the globe.

CHRISTOPHER AKOR

public trial; executive influence on the judiciary; infringement on citizens’ privacy rights; restrictions on freedoms of speech, press, assembly, and movement; official corruption; lack of accountability in cases involving violence against women and children, including female genital mutilation/cutting and sexual exploitation of children; trafficking in persons; early and forced marriages; criminalization of status and same-sex sexual conduct based on sexual orientation and gender identity; and forced and bonded labor.”

In support of its damning verdict and as evidence of the impunity with which the Nigerian government operates, the report noted that the Nigerian government does not take steps to hold to account officials who perpetuated impunity whether in the security forces or in civil society. The report cited atrocities committed in the Northeast by members of the Civilian Joint Task Force (CJTF), the army, police and officials who systematically abuse inmates in the various Internally Displaced People’s camps scattered across the region. It also cited the case of the extra-judicial murder of over 348 Shia group Islamic Movement of Nigeria (IMN) and other civilians by Nigerian armed forces in Zaria, Kaduna State and the current unlawful detention of its leader even after the courts have ordered him released. It also cited the extrajudicial killings of members of the secessionist group, IPOB, the continued unlawful detention of Sambo Dasuki and many other such infractions.

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Thursday 26 April 2018

Forensic evidence reveals Danish Osinbajo calls husband killed wife, daughter - Lagos for religious JOSHUA BASSEY

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agos State government has confirmed that forensic analysis revealed that Peter Nielsen, a Danish husband recently arrested by the police, killed his Nigerian wife, Zainab, and their three-yearold daughter, Petra, in their Banana Island, Ikoyi home, on April 5, 2018.

Adeniji Kazeem, attorney general and commissioner for justice, who confirmed this in a statement, Wednesday, said forensic investigation into the matter revealed overwhelming and compelling evidence to the effect that the suspect killed his wife and daughter.

Kazeem said a prema facie case (evidence) of murder had been established against the suspect contrary to Section 223 of the Criminal Law of Lagos State, 2015, adding that he would be prosecuted at the High Court of Lagos State for the crime.

According to the statement, “The Office of Attorney General and Commissioner for Justice on the 19th of April, 2018 issued legal advice to the effect that a prima facie case of murder contrary to Section 223 of the Criminal Law of Lagos State, 2015 has been established against the suspect, Peter Nielsen (M) - a Danish National. The suspect is therefore to stand trial; before the High Court of Lagos State for the murder of his Nigerian wife and threeyear old daughter.

“There is overwhelming and compelling evidence both forensic and direct eye witness account showing without doubt that the victims were killed by the suspect. There is also evidence that there was a history of domestic violence against the victim by the suspect.”

Giving background of the case, the attorney general recalled that after news of the alleged murder broke, the police swung into action

and conducted thorough investigation, while the case file was forwarded to the Ministry of Justice for legal advice.

He said, “On the 5th/6th April, 2018, the people of Lagos State woke up to the news that a mother and daughter – Zainab Nielsen and Petra Nielsen were allegedly murdered in their residence at Banana Island, Lagos.

“The matter was reported at the nearest Police Station and the Nigeria Police immediately began an in-depth investigation into the case.

On the 10th of April, 2018 the Office of the Deputy Commissioner of Police, the Nigeria Police Force ‘D’ Department (CID) Panti, Yaba, forwarded the duplicate case file of their investigations to the Lagos State ministry of justice for legal advice.”

Besides, Kazeem said the trial of Nielsen would commence at the High Court as soon as the case was assigned to trial.

US Report on human rights in Nigeria signals difficult talks between Buhari and Trump

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he Nigerian government was happy to announce the invitation extended President Buhari by US president, Donald Trump, to the White House, April 30, to discuss bilateral issues such as fighting terrorism and economic growth.

“President Trump looks forward to discussing ways to enhance our strategic partnership and advance our shared priorities: promoting economic growth and reforms, fighting terrorism and other threats to peace and security, and building on Nigeria’s role as a democratic leader in the region,” the White House said in a statement.

But the meeting may turn out to be an unhappy one for President Buhari and his handlers if the recent report release by the United States Department titled “Nigeria 2017 Human Rights Report” detailing human rights infractions, abuse of power, extrajudicial killings, corruption and transparency issues in Nigeria since 2015, will form part of the discussions.

The report affirmed that human rights generally remained appalling in Nigeria. it listed significant human right issues in Nigeria in the period under review to include: extrajudicial and arbitrary killings; disappearances and arbitrary detentions; torture, particularly in detention facilities, including sexual exploitation and abuse; use of children by some security elements, looting, and destruction of property; civilian detentions in military facilities, often based on flimsy evidence; denial of fair

L-R: Tijani Borodo, shareholder, FBNQuest Merchant Bank; Kayode Akinkugbe, MD, FBNQuest Merchant Bank; Bello Maccido, chairman, FBNQuest Merchant Bank; Omobola Johnson, nonexecutive director, FBNQuest Merchant Bank, and U.K Eke, GMD, FBN Holdings, at the FBNQuest Merchant Bank 3rd annual general meeting in Lagos.

Pic by Pius Okeosisi

Forex challenges created growth opportunities for businesses –CWG CEO MODESTUS ANAESORONYE

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oreign exchange challenges witnessed in Nigeria, especially from 2015, which caused many companies to shut operations, also created several opportunities for indigenous companies to find new ways to reinvent themselves and position for diversification and growth.

James Agada, CEO of CWG plc, who made the remark, said hiscompanyratherthanallowthe situation to pull it down, saw it as an opportunity.

According to Agada, even thoughtheforeignexchangechallenges hit hard and resulted in the loss of about 50 percent of CWG’s earnings, it ultimately created opportunities for the company.

CWG, the largest system integration company in Nigeria, was forced to turn inwards, rejig its

operations and revive some of its local solutions, which were until then, unfortunately, not given the desired priority because of heavy dependence on foreign partners.

He disclosed that the company reported a significant loss in 2015, driven mainly by issues related to foreign exchange rate.

As a result of this, “We had to exit some businesses because we simply could not continue with them. It, however, also created new opportunities because it forced us into survival mode; we were ultimately able to sit back and re-strategise.

“Weighing the options, examining our competencies that are not reliant entirely on foreign expertise, what challenges do we have within our society that we can create active technology solutions for? We were able to define new business streams,

new products, we even had to define new customer segments so that our exposure to the future of foreign exchange shocks will be minimal,” he said.

Although it takes time to reinvest and build, the results of definingnewbusinesses,newproducts and new customers are already being noticed by CWG, he said.

Henotedthattoday,CWGhad expanded its business operations to delivering local solutions that were solving local challenges in every area of the Nigerian economy; a drive, the company said was in tandem with its mission of enabling growth.

CWG, a pan-Africa ICT company, prides itself as having expertise in building innovations around products and platforms to service its clients that cut across financialinstitutions,telecomand government.

tolerance

... as Kumuyi urges churches to support government effort SEYI JOHN SALAU

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ice President Yemi Osinbajo has called for religious tolerance in the country, saying the right to freedom of warship is also the right to build places of worship in Nigeria.

According to Osinbajo, Christians must go therefore to make disciples of Christ, as governance in Nigeria is a spiritual warfare, and therefore the church should pray for those in government.

Osinbajo, who graced the inauguration of the new 30,000 capacity auditorium of the Deeper Life Bible Church, Tuesday at its national headquarters, assured of the Federal Government’s commitment in bringing an end to the incessant killings in the country.

“We as a body of Christ must not lose focus. We are called to pray for all men and women, even those who kill and persecute us.

“This is one of the proudest moment for me as a Christian seeing the dedication of the new magnificent structure for the worship of God. For those who have lived in this neighbourhood there is no doubt that the glory of the latter house is greater than the former.

“There is no person born or unborn that can stop the gospel of our Lord Jesus Christ,” Osinbajo stated.

Akinwunmi Ambode, governor of Lagos State, who was represented by Lola Akande, commissioner for women affairs and poverty alleviation, lauded the church for contributing to the aesthetics of the environment, he said would enhance the state’s effort towards a megacity.

Ambode also pledged that his administration would “continue to uphold and protest freedom of worship.”

William Kumuyi, general overseer of the church in his welcome address, called on churches and faith-base organisation to support government effort in developing the society.

Kumuyi said the new auditorium was dedicated to the service of God and propagation of the gospel, saying, “Today its about thanksgiving to God for seeing us through; it is a leap of faith when we started 13 years ago.”

Mike Okonkwo, presiding bishop of The Redeemed Evangelical Mission (TREM) in a statement, said the new church was a fulfilment of destiny, as “we are witnessing prophesy being fulfilled; and Nigeria shall be great again.”

Thursday 26 April 2018

FT

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BUSINESS DAY

FINANCIAL TIMES

A7

World Business Newspaper

Macron makes long-term investment in Trump French president seeks to bolster relationship in carefully choreographed state visit

COURTNEY WEAVER AND KATRINA MANSON

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hey kissed. They strolled.

They planted a tree.

Nine months after Emmanuel Macron rolled out the red carpet for Donald Trump on Bastille Day, with a front row for the country’s military parade and an intimate dinner at the Eiffel Tower, the US president returned the favour.

Mr Trump rewarded his French counterpart with the first state dinner of his presidency, part of a carefully choreographed three-day affair that cemented Mr Macron’s relationship as the US president’s top European partner.

The trip was the sixth meeting between the two leaders, who have also spoken by phone nearly two dozen times, and whose co-operation has included this month’s joint air strikes in Syria.

Mr Macron’s goals include convincing Mr Trump to stay in the Iran nuclear deal, which the US president threatens to leave next month, and to reconsider the Paris climate accord, which Washington broke away from last year.

Both tasks are challenging to say the least. But the French president is also looking at the trip, described by a French official as both symbolic and an opportunity to pass on important messages, as a long-term investment.

The official added that Mr Macron had fostered a sense of camaraderie with Mr Trump, describing both as political outsiders who were “not supposed to be elected”.

Mr Macron told Fox News Sunday: “Both of us are probably the maverick of the systems on both sides . . . and we are not part of the classical political system.”

To some, the flattery and attention paid by Mr Macron could come off as sycophancy. But others argue it could also pay off in real political gains, even though the French president may leave Washington no closer to convincing Mr Trump to stay in the Iran nuclear agreement, rejoin the Paris climate accord, or walk away from new trade tariffs.

“To be the primary ally of Trump

in Europe makes you different from any other leader,” said Julian Zelizer, a history and public affairs professor at Princeton University, noting that Mr Macron appeared to be the only leader in Europe who had “some connection and some ability to influence” Mr Trump.

Mr Macron has been “trying to use his leverage with Trump to calm him down on some areas where they disagree”, while from Mr Trump’s perspective, the relationship has also been useful, Mr Zelizer continued.

“President Trump is someone who likes people who like him,” he said. “I think the leaders who have gotten Trump’s attention understand that he wants the pomp, he wants to be courted. And those who court him and treat him in a grandiose fashion get his attention.”

Grandiose would be the word to describe the state visit. On Monday, the US and French presidents planted a 4.5 foot-tall sapling taken from France’s Belleau Wood where 9,000 American marines died during the first world war. The two leaders shovelled dirt in their suits, while their wives looked on in stilettos.

Monday night brought a tour of Washington’s monuments and a private dinner at George Washington’s house at Mount Vernon.

On Tuesday morning, the foursome gathered to watch close to 500 US military personnel perform a review of the troops outside the White House, as Mr Trump craned his head under his wife’s widebrimmed hat to kiss her cheek.

Another notable kiss was between Mr Trump and Mr Macron.

While the two leaders had previously come under scrutiny for a prolonged handshake, on this occasion, Mr Macron avoided a repeat, opting instead to peck Mr Trump on the cheek Latin style.

Later Mr Trump flicked off a “little piece of dandruff” from his French counterpart’s suit.

The state dinner was staged in a cherry blossom and lilac-adorned State Dining Room, with a Chardonnay aged in French oak barrels in Oregon. For dessert: a nectarine tart infused with White House honey and crème fraîche ice cream.

US-China trade dispute puts Bain’s $18bn Toshiba deal ‘at risk’ Beijing withholds key approval of transaction as Trump pumps up rhetoric LEO LEWIS, KANA INAGAKI AND HENNY SENDER

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ain Capital’s $18bn purchase of Toshiba Memory — one of history’s biggest outbound deals by US private equity — is at risk of being derailed by President Donald Trump’s trade dispute with China, said people close to the situation.

Bankers and lawyers familiar with the matter said Mr Trump’s March 22 announcement of $60bn in new tariffs on Chinese imports represented “terrible timing” for US-headquartered private equity

house Bain, which last year led a consortium to buy Toshiba’s highly profitable semiconductor unit, the world’s second-largest producer of Nand flash memory chips.

One adviser to the deal raised concerns that the deal could become “collateral damage” in the US-China trade dispute.

The acquisition has received the approval of all relevant regulators except China’s ministry of commerce (Mofcom), which has appeared to have concerns centred on the involvement of the South Continues on page A8

The Trumps and the Macrons on the lawn at Mount Vernon, the estate of George Washington on the bank of the Potomac in Virginia, on Monday © Reuters

Private equity funds active in market reach all-time high Record 2,296 funds operating as demand from yield-starved investors grows, report says JAVIER ESPINOZA

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he number of private equity funds has reached an alltime high as demand from institutional investors for the sector grows in a low interest rate environment, according to a new report.

As of January 2018, a record 2,296 private equity funds were active in the market, seeking to raise an aggregate $744bn, representing a 25 per cent increase compared with a year earlier, the data from the Boston Consulting Group showed.

The authors of the report said the increase was being driven partly by ageing founders reluctant to let go of their companies but also growing demand from yield-starved investors for the asset class.

“As the industry matures there are a lot of senior people but not

everyone can be at the top of the firm,” said Antoon Schneider, senior partner and managing director at the BCG. “Some of these people then set their own funds successfully thanks to their track record.”

Recent examples of executives leaving established groups include KKR’s Dominic Murphy and Apax’s Ian Jones.

But the proliferation of new private equity funds is also a response to booming conditions in the sector, Mr Schneider added.

“Private equity is an attractive alternative because it tends to outperform in the long term. Investors will continue to allocate to private equity,” Mr Schneider said.

But there are growing concerns that private equity is in an asset bubble with leverage used for deals nearing record levels and valuations at historic highs in conditions

that resemble those of the years leading to the financial crisis.

This has led to warnings that the sector will experience a decline in returns over time.

The BCG report warned: “As money continues to pour in from institutional investors, firms will have a tougher time finding deals that meet their performance criteria.”

Separately, the BCG report also showed that despite the record amount of unspent capital waiting to find a home, buyout groups are managing to deploy capital at a record rate: $1.18tn worldwide in 2017, up from $1.13tn a year earlier.

“The private equity industry has not peaked,” the study concluded. “PE-owned companies are dwarfed by those that are publicly traded . . . and [investors] continue to invest their capital in private equity.”

Twitter climbs after posting second straight profitable quarter Social media company had been expected to return to a net loss ALIYA RAM

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witter flew in the face of Wall Street’s expectations to maintain its profitability and report higher revenues and user growth, sending shares up more than 6 per cent in premarket trading.

The social media company reported its first profit in 12 years last quarter, but was expected to return to a net loss in the first quarter of the year.

Instead it reported net income of $61m in the three months to March 31, down from $91m at the end of last year but far outstripping expectations.

“The first quarter was a strong

start to the year,” said Jack Dorsey, Twitter’s chief executive. He added that the company had introduced a new framework for thinking about the “health” of online conversations after a string of scandals over abuse and bots on the platform: “This holistic approach will help us more effectively address these challenges by viewing them through the broader lens of the health of the public conversation, and we’re encouraged by our initial progress in this area.”

Twitter said monthly active users increased by 2 per cent to 336m on the previous quarter, reassuring investors who are concerned its audience growth has stagnated over the past year.

Revenues increased of 21 per cent to $665m compared with the same period the year before. Twitter has struggled to attract the advertising dollars of its larger rivals Google and Facebook but benefited more recently after unveiling a range of new products such as a live-streaming video function for sports and news and doubling its character limit for tweets.

The upbeat results will give the smaller social media platform a boost as it attempts to reassure investors it can fend off increasing competition from Facebook’s Instagram and Snap, which will report first quarter results next week. In pre-market trading shares rose 6 per cent.

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Thursday 26 April 2018

NATIONAL

FT

Turkey lifts key interest rate to tackle ‘elevated’ price growth Lira volatile in wake of decision aimed at curbing inflation currently running at 10% ADAM SAMSON AND AYLA JEAN

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urke y’s central bank on Wednesday lifted one of its key interest rates as it looks to place downward pressure on price growth, shrugging off calls from President Recep Tayyip Erdogan to keep credit cheap.

The central bank increased its highest interest rate, the late liquid-

ity window lending rate, to 13.5 per cent from 12.75 per cent. The 75 basis points (0.75 percentage point) increase, the first since December 2017, was above the consensus estimate of economists in a Reuters poll of 50 bps. However, expectations ranged from no change to a 100 bps hike.

Other rates — including overnight interest rates and the one-

week repo rate — were both left on hold, matching expectations.

Trading in the lira was volatile following the decision. It recently rose 0.69 per cent on the US dollar, with on buck buying 4.053 lira. It had rallied to TRY4.034 immediately after the decision.

“Current elevated levels of inflation and inflation expectations continue to pose risks on the pricing

behaviour. Upside movements in import prices have increased such risks,” Turkey’s central bank said in a statement. “Accordingly, the committee decided to implement a measured monetary tightening to support price stability.”

Inflation is running at a 10 per cent year on year rate, double the central bank’s target, according to official data. Economists are

concerned that the weakening lira, down almost 7 per cent against the dollar this year, will stoke a further increase in prices that may, in turn, exacerbate pressure on the currency.

Several currencies strategists said ahead of the decision that a sharp increase, possibly of 100 bps or more, would be needed to stabilise the lira in the long term.

US-China trade dispute puts Bain’s $18bn Toshiba...

Facebook earnings: 4 things to watch

Continued from page A7

Wednesday’s results may reveal the impact of privacy scandal and news feed overhaul

Korean chipmaker SK Hynix in the Bain-led consortium.

In mid-March, said people involved in the deal, Bain and Toshiba were given strong indications approval was coming in the week that started on March 26.

But Mr Trump’s announcement, in which he bemoaned America’s “out of control” trade deficit with China, prompted Mofcom to suspend the approval process while Beijing considered its response to trade issues.

Bain initially understood that the escalation of US-China trade war rhetoric would only briefly delay approval for its Japan-based deal, said people close to the situation, but that has since proved optimistic. Bain continues to believe approval is imminent.

But it was clear, said one banker, that Bain’s deal in Japan was being treated as part of a wider Chinese hiatus on US-related decision making while the drumbeat of trade war was beating.

The future of Bain’s deal, whose original deadline for completion expired on March 30 but had been extended pending sign-off from China’s antitrust regulator, might now depend on a planned visit to Beijing by US Treasury secretary Steven Mnuchin.

People close to the situation said Mr Mnuchin was asked to raise the matter during proposed talks with the Chinese authorities aimed at damping the risks of a trade war between the world’s two biggest economies.

Although Toshiba was still publicly committed to the deal with Bain — and was under pressure from some of its biggest banks to remain so — people close to both companies said the threat of trade war-related interference was shifting calculations at the group.

The Japanese company’s new chief executive, Nobuaki Kurumatani, used his first media appearance in early April to affirm that Toshiba planned to “maintain our position and wait [for regulatory approval] unless severe changes to the situation take place”.

In the month since Mr Trump’s tariff announcement, said people close to Toshiba, the Japanese company had begun to more seriously reconsider its sale of the memory business to Bain, and had weighed the option of instead listing Toshiba Memory in an initial public offering. Some shareholders have suggested that Bain is paying about $10bn less than the fair value of Toshiba Memory. In a statement on Monday, Toshiba added it had “not decided any concrete policy for the alternative”.

HANNAH KUCHLER

I

Comcast chief Brian Roberts turned his attention to Sky after his offer to buy 21st Century Fox was spurned © FT montage / Reuters

Sky withdraws Fox bid recommendation after Comcast makes offer US cable group offers £22bn in deal for European broadcaster founded by Rupert Murdoch MATTHEW GARRAHAN

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ky has withdrawn its recommendation of a bid from Rupert Murdoch’s 21st Century Fox after Comcast made a formal £12.50-ashare offer that values the panEuropean media company at £22bn.

Sky ushered in the pay-television era when it was launched by Mr Murdoch in 1989 but has become a pawn in a global media power struggle between Comcast, the US’s largest cable group, and Fox. Waiting in the wings is Walt Disney, the world’s largest media company, which has separately agreed a $66bn deal last year to acquire most of Fox’s entertainment assets — including its 39 per cent stake in Sky. Mr Murdoch’s hopes of acquiring the Sky shares not already owned by Fox were dealt a blow when the independent committee formed to consider the offer, worth £10.75 a share, withdrew its recommendation of the deal. A “co-operation agreement” between Sky and Fox has also been terminated by the committee, which means Fox will no longer be obliged to pay a £200m break fee.

Fox said in a statement that it remained “committed” to its offer for Sky, adding that it was “considering its options”.

Brian Roberts, Comcast’s chief executive, said the company’s offer was a “significant premium” to the Fox proposal and pointed to the “opportunities for growth by combining our businesses”.

Comcast owns NBC Universal, the media group with assets that include Universal Studios and the NBC broadcast network. Its shares fell sharply when it first unveiled its proposal to acquire Sky in February, partly on fears that satellite television faces secular challenges.

But Mr Roberts told a conference call that Sky had been mistakenly characterised as a “satellite company”, pointing to its record in technological innovation and international programming investment. “Sky is a multi-country company,” he said. “Their road map fits Comcast’s extremely well.”

The Fox offer for Sky, which was first submitted in December 2016, has been pored over by UK regulators. The Competition and Markets Authority is the latest body to scrutinise the deal but

people briefed on the matter said it had privately indicated to Fox executives that it was not inclined to recommend it to the UK culture secretary, Matt Hancock, without additional safeguards to ensure the editorial independence of the Sky News channel.

This is because of concerns about Mr Murdoch’s influence over the UK media market via News UK, formerly News Corp, which he also controls, owning newspapers such as The Times and The Sun. Fox has proposed measures to address the CMA’s concerns — including a commitment to sell Sky News to Disney.

The CMA is due to inform Mr Hancock

by May 1 on whether the Fox remedies are sufficient to meet public interest concerns about the deal’s impact on media plurality.

Comcast has also attempted to ward off concerns about the effect of it buying Sky on media plurality with a commitment to maintain investment in Sky News and preserve its editorial independence. It said on Tuesday that it would give a “binding post-offer undertaking” not to acquire any majority interest in a UK newspaper for five years.

EU targets tech giants over unfair business practices Small businesses and app makers will be allowed to collectively sue platforms under new proposals MEHREEN KHAN

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pp makers and small businesses will be able to collectively sue internet giants such as Apple, Google and Amazon for unfair business practices under plans being drafted by Brussels.

In proposals to be announced on Thursday, the European Commission will for the first time seek to regulate the relationship between tech giants and the small companies and vendors who rely on their services.

The regulation is designed to target “harmful” business practices that allow tech giants to impose unfair trading terms on apps, retailers or hoteliers that use services such as Apple’s app store, Amazon or Booking.com.

Under the EU’s plans, companies

will be able to collectively sue “online intermediation services” if they fail to deal with businesses complaints in-house or through a system of mediation, according to a draft legal text seen by the Financial Times.

Examples of unfair practices include when a business is subject to a change in its terms and conditions without explanation or has been delisted or demoted in a search engine ranking without clear reasons.

Until now, collective redress has only been open to European consumers. App makers and small businesses would have to be represented in court by industry groups or non-profit organisations, according to the draft text.

The regulation is designed to provide a “fair, predictable and ultimately trusted legal environment” for tech companies to operate in, says the

commission’s text.

“These legal obligations should ensure that the business users of online intermediation services are given appropriate transparency as well as effective redress possibilities throughout the union.”

The commission’s plans, which will need to be approved by the European Parliament and EU governments before becoming law, will force intermediation services with more than 50 employees to set up internal complaint departments. Brussels will also encourage platforms to hire independent mediators to handle out-ofcourt settlements and foot a majority of the costs of setting up the system.

Tech giants, however, complain the regulation will hit them with burdensome administrative costs and the threat of lengthy legal action.

n a maelstrom of controversy over election meddling, inappropriate content and privacy violations, Facebook chief executive Mark Zuckerberg says he is remaking the social network as a place that prioritises “meaningful connections” between friends and family over the needs of businesses and publishers.

First-quarter results after the end of the trading day on Wednesday will reveal more about how the rethink might affect Facebook’s profitability.

Here are four things to watch.

Are users spending less time on Facebook?

On the last earnings call in January, analysts showed they were already worried about a decline in the amount of time Facebook’s users were spending on the platform.

The number of hours spent on the social network in the fourth quarter of 2017 fell by about 50m a day from the previous three months, about 5 per cent. In the US and Canada, home to the most valuable users to advertisers, the number logging on every day fell by 700,000 to 184m.

Facebook said the decline was due to a change to the algorithm that tried to limit the spread of viral videos and promised to continue to shake up the news feed to prioritise content from family and friends.

Two weeks before the end of the first quarter, it was revealed user data had been leaked to the research company Cambridge Analytica, prompting a #deleteFacebook campaign that could have hit these figures further.

Are advertisers spending more or less?

If people are spending less time scrolling through their news feed, that would mean fewer opportunities to show them ads, and the impact on revenue will be of keen interest to investors. A lower supply of ad spots could actually increase the price, in which case Facebook might not suffer financially.

Since the Cambridge Analytica revelations, two weeks before the end of the quarter, the vast majority of marketers appear to have remained loyal to Facebook, because the platform is so effective at targeting their audiences. Mozilla, the Firefox browser maker, and Germany’s Commerzbank did pull their ads, while Sonos, the speaker maker, said it would not advertise on the platform for a week. Elon Musk deleted the Facebook pages of his companies — Tesla and SpaceX — but they did not buy ads anyway.

If advertisers did stall any spending, it might be reflected in revenue guidance for the second quarter and beyond.

BUSINESS DAY

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NEWS YOU CAN TRUST I THURSDAY 26 APRIL 2018

TopfiveFacts

Fact Check

Trivial

Validating striking health workers claim of government neglect

T

he Joint Health Sector Unions (JOHESU) embarked on a strike action from the 17th of April to force the Federal Government to honour the terms of agreements with the Union at different fora since 2009 especially the agreement reached on the 30th of September, 2017 which had a time frame of five weeks.

In an interview granted to Premium Times, Ogbonna Chimela, the National Vice Chairman of JOHESU gave a breakdown of the series of demands and claimed that the strike action is undertaken also in the interest of the patients. This piece tries to validate these claims and compares it with what is obtainable in other parts of the world.

Understaffing According to Chimela, “the first problem is the issue of understaffing in our various hospitals across the nation, the number of professionals that are rendering services to numerous patients are very few, the government will always tell us that there is an embargo on employment and that there is no money to employ new staff but we noticed that as we are on strike, they engaged the services of locum staff. Locum staff is people you engage in a strike or emergency situation and you start paying them almost what you pay normal staff.”

“So if the government has money to employ locum staff at this strike period, why can’t’ they use that money to employ more staff when the workers are at work so we can have more staff? We demand more staff because we are being over worked.

Are Nigeria’s hospitals understaffed?

The World Health Organisation (WHO) recommends a doctor patient ratio of one doctor to 600 patients but this is not the case in Nigeria. The Nigeria Medical Association (NMA), at several foras said that medical personnel in Nigeria were constantly overwhelmed by the large number of patients as the doctor to patient ratio was out of tune with the WHO recommendation.

This is worsened by broken and dilapidated facilities in the hospitals.

Mike Ogorima, president

WHO The World Health Organisation (WHO) says Nigeria needs more than 237,000 medical doctors to meet the organisation’s standard doctor-patient ratio.

3,000 doctors yearly Each year Nigeria’s universities produce about 3,000 doctors, but many choose to practice abroad due to better healthcare system. of Nigerian Medical Association told BusinessDay last year that Nigeria with a population of over 180 million has only 35,000 registered doctors, of this figure 70 per cent practise in urban areas, where only 30 per cent of the populace live.

The implication of this is that Nigeria’s doctor-patient ratio is among the worst in the world currently hovering above 50,000 patients to one doctor rather than recommended 1:600 ratios.

The World Health Organisation (WHO) says Nigeria needs more than 237,000 medical doctors to meet the organisation’s standard doctor-patient ratio.

Each year Nigeria’s universities produce about 3,000 doctors, but many choose to practice abroad due to better healthcare system.

Poor remuneration Another vexing issue for doctors is skipping of CONHESS salary and its arrears.

In 2013, the matter was taken to the Industrial Court of Nigeria in Abuja and Justice Adejumo who presided, gave a ruling ordering the government to pay the doctor’s entitlements.

“The government agreed but they keep telling us they are compiling since 2013 till date. They have not paid it, and the most annoying thing is that the Nigerian Medical Association (NMA) has been paid skipping arrears even though they are not on CONHESS, they are on CONMESS and skipping arrears is meant for CONHESS but because they are the drivers of the system, they get whatever they want,” said Chimela.

Consolidated Medical Salary Structure, CONMESS, is the salary structure for medical and dental officers in the federal public service

while Consolidated Health Salary Structure, CONHESS, is the salary structure for pharmacists, medical laboratory, nurses and other health workers in the health sector of the federal public service.

“The third demand is the major one, the issue of adjusted CONHESS salary. Permit me to take the story back to 2009, when CONMESS and CONHESS was first approved by the government. In 2014, the government in her wisdom adjusted the salary of NMA; we now asked for our own to be done but the NMA told government not do it for us

trillion of which only 3.9 per cent or N304.2 billion was devoted to the health sector.

An analysis of Nigeria’s 2018 budget estimates shows it needs an additional 1.29 trillion to meet the Abuja health declaration.

In 2015, the Federal government budgeted 260 billion Naira for the health sector, representing 5.7 per cent of the federal budget, in 2016, the federal government budgeted N257.3 billion representing 4.23 per cent of the national budget, in 2017 the federal government budgeted 304 billion representing 4.7% of the federal budget, in 2018the federal government

The first problem is the issue of understaffing in our various hospitals across the nation, the number of professionals that are rendering services to numerous patients are very few, the government will always tell us that there is an embargo on employment and that there is no money to employ new staff but we noticed that as we are on strike, they engaged the services of locum staff that if they do that they are going to down tools. Up till now, that has been their stand and this is the reason government has been very slow on the matter.

Medical experts say a major attraction for Nigerian doctors emigrating abroad is the attractive remuneration and working conditions abroad. Every year, Nigeria does not rank the health sector as highly important in its budgeting.

Nigeria’s 2018 budget proposes to spend N8.612

budgets 340 billion representing 3.9% of the federal government budget The end result is an overburdened public healthcare system, with artificial scarcity in the private sector as low income patients avoid the private healthcare system due to exorbitant cost of services. Yet it is estimatedthatNigerialosesover $1billion annually for medical tourismtoforeigncountries. ​This indicates that the doctor’s claims have merit and urgentactionisrequiredbygovernment to remedy this situation.

70 per cent Mike Ogorima, president of Nigerian Medical Association said Nigeria with a population of over 180 million has only 35,000 registered doctors, of this figure 70 per cent practise in urban areas, where only 30 per cent of the populace live.

Budget estimate An analysis of Nigeria’s 2018 budget estimates shows it needs an additional 1.29 trillion to meet the Abuja health declaration.

Understaffing The first problem is the issue of understaffing in our various hospitals across the nation, the number of professionals that are rendering services to numerous patients are very few

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana.

Tel: +233243226596: email: mail@businessdayonline.com Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08022238495 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.

BUSINESS DAY

A Special Report on the Top 25 Best Performing CEOs on the Nigerian Stock Exchange

...the CEOs that added N1.96 trillion in market value...

TELIAT SULE

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eading a company and creating value depends on many skills that are hard to measure—strategic vision, authenticity, long-term planning. Investors aren't the only stakeholders that need tending to; the best-run companies connect effectively with customers, employees, and the communities where they operate. All that stops at the feet of CEOs, who must be everything their company's stakeholders want of them.

On April 26, at our Annual Awards & Dinner, BusinessDay will honour the Top 25 CEOs who delivered the most value to stakeholders and contributed to the stellar performance recorded by the Nigerian capital market in 2017.

Last year, listed stocks gained N4.36 trillion in market capitalisation, a development that made the Nigerian capital market one of the best in the world.

Interestingly, the 25 CEOs that will be celebrated accounted for over 45 percent of the success recorded on the NSE. That means they added some N1.96 trillion to market value in 2017.

The Top 25 CEOs of quoted companies on the NSE Awards was introduced to celebrate the CEOs who contributed to the success of the Nigerian capital market by adding significant value to shareholders' investment.

Parameters used in the selection of the winners include share price appreciation and sustainable growth in each company's Profit after Tax (PAT).

Since its introduction, the annual awards have become the capital market bellwether used in identifying the top-performing Chief Executive Officers and stocks on the Nigerian Stock Exchange (NSE). It is to this end that we celebrate the individuals who have contributed to the success recorded by their companies and the Nigerian economy in general.

Dignitaries expected at this year's event include Chief Executive Officer of the Nigerian Stock Exchange, Oscar Onyema, as well as the Executive Governor of Ogun State, Senator Ibikunle Amosun.

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Thursday 26 April 2018

Oscar Onyema: Celebrating a Symbol of Transparency and Transformation

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takeholders in the nation's capital market are unanimous in their assessment of Oscar Onyema's leadership at the Nigerian Stock Exchange (NSE) as unique

because of three notable qualities: transparency, transformation, and promotion of seamless cross border access between the NSE and other notable exchanges in the world. His policies aimed at promoting transparency at the Exchange have made the Nigerian bourse unattractive to rogue traders while timeliness in information disclosure by listed companies has bolstered investors' confidence locally and internationally.

The NSE is now deeper and broader with the introduction of many products such as derivatives, exchange traded products, bonds, REITS, Sukuk which have further increased market participation and financial inclusion. The enhancement of

Champion of the year by the HR People Magazine and in

cross border access is ensuring that stocks could be listed on

2015, was named by Forbes magazine as one of the Top 10

the NSE as well as other notable exchanges such as the Lon-

Most Powerful Men in Africa. In the preceding year, Abuja

don Stock Exchange, Johannesburg Stock Exchange, among

Chambers of Commerce awarded him with the Most Innova-

others.

tive CEO of the Year 2014 accolade. Same year he received the

He left no one in doubt about his mission to take NSE to a

national honour of Officer of the Order of the Niger ("OON")

greater height when upon assumption of office as the Chief

from the Federal Government of Nigeria.

Executive Officer of the Nigerian Stock Exchange (NSE) in

He is the Chairman of Central Securities Clearing System

April 2011, he launched a 'Transformation Agenda' to retool

(CSCS) Plc, the clearing house for the Nigerian capital market

the NSE into a globally competitive exchange. His effort as an

and President of the African Securities Exchanges Associa-

agent of change in restoring and growing investors' confidence

tion. Onyema also serves on the boards of all subsidiaries of

is assisting in advancing Nigeria's capital markets towards a

The Exchange. He has served as a Council member of Char-

path of sustainable growth and development.

tered Institute of Stockbrokers (CIS); Global Agenda Council

On the regional level, Onyema continues to play an influen-

member of World Economic Forum (WEF); board member of

tial role in the highest decision making echelons of the West

FMDQ OTC Plc and National Pension Commission of Nigeria

African Capital Market Integration Council ("WACMIC") and

(PENCOM).

the African Securities Exchanges Association ("ASEA"). He is

Prior to relocating to Nigeria, he served as Senior Vice Presi-

currently the President of the ASEA and was the immediate

dent and Chief Administrative Officer at American Stock

past Chairman and current Member of WACMIC, where he

Exchange (Amex), which he joined in 2001. He was the first

works to integrate various securities markets in the West Af-

person of colour to hold that position. He also ran the NYSE

rican sub-region. His passion for increased investment flows

Amex equity business after the merger of NYSE Euronext and

in emerging markets has established him as a thought leader

Amex in 2008, which he helped position as a premier market

within financial markets around the world. The NSE under his

for small and mid-cap securities.

watch champions the development of Africa's global financial

Onyema is an alumnus of Harvard Business School having

markets.

completed its Advanced Management Program. He has an

Onyema's remarkable achievements continue to make the

MBA from Baruch College, New York and BSc from Obafemi

headlines, as he recently received the Professional Excellence

Awolowo University, Ile-Ife. He is a fellow of the Institute of

Award - Capital Market Category, from the Business Hallmark

Directors ("IoD") Nigeria.

People of the Year Awards. He was also named the 2016 HR

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Access Bank Plc Share Price Appreciation in 2017:

78% Amount added to market capitalisation:

N112.24bn

Zenith Bank Plc Share Price Appreciation in 2017:

73.8% Amount added to market capitalisation:

N239.56bn

Herbert Wigwe GMD/CEO

Peter Amangbo Herbert Wigwe was appointed as the Group Managing Direc-

GMD/CEO

tor/CEO effective January 1, 2014.He left Guaranty Trust as an Executive Director to co-lead the transformation of Access

Peter Amangbo is the Group Managing Director/CEO of

Bank Plc in March 2002 as Deputy Managing Director. Wigwe

Zenith Bank Plc. Prior to his appointment, Amangbo has

started his professional career with Coopers and Lybrand As-

been an Executive Director of the bank since 2005 and has

sociates, an international firm of Chartered Accountants. He

over twenty four (24) years cognate banking experience all

spent over 10 years at Guaranty Trust Bank where he managed

of which has been with Zenith Bank. He worked previously

several portfolios including financial institutions, corporate

with PriceWaterHouse (now PriceWaterHouseCoopers) as a

and Multinationals. He holds a B.Sc. degree in Accounting

Senior Consultant in the Financial Services Group.He holds a

from the University of Nigeria, Nsukka; a master's degree

B.Eng. Degree (Electrical and Electronics Engineering) from

in Banking and International Finance from the University

University of Benin and an MBA from the University of War-

College of North Wales and another master's degree in Fi-

wick, Coventry in the United Kingdom. He is a Fellow of the

nancial Economics from the University of London. Wigwe is

Institute of Chartered Accountants of Nigeria (FCA). He has

an alumnus of Harvard Business School Executive Manage-

attended the Advanced Management Programme at INSEAD,

ment Programme and a Fellow of the Institute of Chartered

France and Wharton Graduate School of Business, USA.

Accountants of Nigeria (ICAN).

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United Bank for Africa (UBA) Plc

Diamond Bank Plc

Share Price Appreciation in 2017:

128.9%

Share Price Appreciation in 2017:

Amount added to market capitalisation:

70.5%

N142.94bn

Amount added to market capitalisation:

N14.36bn Uzoma Dozie GMD/CEO

Uzoma Dozie was unanimously appointed by the Board as the Group Managing Director/Chief Executive Officer of Diamond Bank Plc effective from November 1, 2014. His appointment was approved by the Central Bank of Nigeria in December 2014.Dozie started his banking career in the commercial banking unit at Guaranty Trust Bank Plc where he worked for some years and later moved to Citizens International Bank

Kennedy Uzoka GMD/CEO

Limited where he worked in the Oil and Gas Division. He joined Diamond Bank Limited as a Manager and the head of the bank's oil and gas unit. He was at a time head, financial control, then retail banking where he spear-headed the

Kennedy Uzoka is the General Managing Director/ CEO of

introduction of lifestyle-changing retail products. Dozie was

UBA. He has had a lengthy career at the bank, which over the

the Executive Director in charge of Lagos businesses between

course of two decades has seen him at the helm of a number of

2011 and 2013 until his appointment as a Deputy Managing

critical departments. Prior to his appointment as GMD/CEO he

Director in April 2013.

was the Deputy Managing Director and CEO of UBA Africa. A

Uzoma Dozie graduated in 1991 with a Bachelor of Science

keen adaptor of technology and modernity, Uzoka has super-

degree in Chemistry from the University of Reading, Berkshire,

vised two strategic support functions in the bank: Information

England. He obtained a Master of Science degree in Chemical

Technology and E-Banking. Most recently, he spearheaded the

Research from University College, University of London in

Customer Focused revolution in the bank which has created a

1992 and an MBA with specialisation in finance, from Impe-

fully digital, 24/7 user friendly experience that aims to anticipate

rial College Management School, London in 1998. He also

and fulfil our customer’s expectations.

attended the Program for Management Development at the

Uzoka is the holder of a BSc in Mechanical Engineering from

Harvard Business School, Boston, Massachusetts, USA.

the University of Benin an MBA from the University of Lagos and an AMP from Harvard Business School.

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Guaranty Trust Bank Plc Share Price Appreciation in 2017:

65% Amount added to market capitalisation:

N492.68bn

Nestle Nigeria Plc Share Price Appreciation in 2017:

92.1% Amount added to market capitalisation:

N293.4bn

Segun Agbaje GMD/CEO

Mauricio ALARCÓN MD/CEO

Segun Agbaje was as the Managing Director/Chief Executive Officer GT Bank on June 22, 2011. With over (25) twenty-five

Mauricio ALARCÓN is the Managing Director and Chief Ex-

years investment and international banking experience,

ecutive of Nestlé Nigeria Plc. He joined Nestlé Mexico in 1999

Agbaje is involved in the general management of the Bank’s

where he held various roles in sales and marketing before

day-to-day operations and has earned a reputation as a truly

his transfer to the Strategic Business Unit in Switzerland as

accomplished and highly respected professional within the

Marketing Advisor. In 2004, he became the Marketing Lead

West Africa sub-region, given his diverse experience in the

for Nestlé’s Movenpick Ice Cream brand, and in 2007, the

financial services industry. Agbaje possesses a deep under-

Managing Director of the Ice Cream Business unit in Australia.

standing of the Nigerian business environment having initi-

In 2010 he moved to Egypt as Business Executive Manager for

ated and led the execution of large, innovative and complex

Nestlé’s Ice Cream Business in North Africa.

transactions in financial advisory, structured and project fi-

Before his recent role, ALARCÓN was the Managing Director

nance, balance sheet restructuring and debt and equity capital

of Nestlé Cote d’Ivoire from 2014, and in 2016 became the

raising in several sectors of the Nigerian economy notably oil

Managing Director of the Atlantic Cluster comprising Côte

and gas, energy, telecommunications, financial services and

d’Ivoire, Sénégal, Guinea, Guinea Bissau, Gambia, Maurita-

manufacturing industries.

nia and Cape Verde. An engineer by profession, ALARCÓN

He is an alumnus of the Harvard Business School and holds a

started his career in an industrial group and then worked in

Bachelor of Science in Accounting and a Masters in Business

the banking sector in Mexico before joining Nestlé.

Administration from the University of San Francisco, USA.

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Stanbic IBTC Holdings Plc Share Price Appreciation in 2017:

176.7% Amount added to market capitalisation:

N233bn

Flour Mills of Nigeria Plc Share Price Appreciation in 2017:

56.8% Amount added to market capitalisation:

N10.34bn

Paul Gbededo Yinka Sanni Chief Executive

Yinka Sanni serves as Chief Executive of Stanbic IBTC Holdings and previously served as the Chief Executive at Stanbic IBTC Bank and IBTC Pension Managers Limited (IBTC Pensions). He has extensive experience in credit and marketing, corporate finance, asset management and stockbroking and has been involved in a number of landmark capital market transactions. He is also a Fellow of the Chartered Institute of Stockbrokers of Nigeria.

Yinka has a B.Agric. (Hons.), Agricultural Economics from the University of Nigeria, Nsukka, an MBA from the Obafemi Awolowo University and has gone through the Harvard Business School's Advanced Management Programme.

GMD/CEO

Paul Gbededo, a Fellow of the Polymer Institute of Nigeria and Managing Director of FMN’s Agro-Allied Business, was appointed the Group Managing Director / Chief Executive Officer of Flour Mills on 1st April, 2013. Paul has over 30 years career with FMN Group started at Nigerian Bag Manufacturing Company Plc (1982 – 1998), where he acquired extensive experience serving in various managerial positions as process control manager, production manager, general Manager Production and became the first Nigerian Production Director in 1993. Paul, best known for his pioneering role in fertilizer, pasta and rice, joined Flour Mills in 1998 as General Manager/ Director in charge of fertilizer operations, pioneering development of the product, “Golden Fertilizer” the first choice of Nigerian farmers.

Paul was educated at the Polytechnic of North London UK where he obtained Graduateship of Plastic and Rubber Institute and Associateship of National College of Rubber Technology in 1980, and holds MSc. Degree in Polymer Technology (1981) of Loughborough University of Technology, UK.

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FBN Holdings Plc Share Price Appreciation in 2017:

Ecobank Transnational Incorporated (ETI) Plc

162.7%

Share Price Appreciation in 2017:

Amount added to market capitalisation:

N62.82bn

65.4% Amount added to market capitalisation:

N27.54bn

Urum Kalu (UK) Eke GMD/CEO

Urum Kalu (UK) Eke assumed office as Group Managing Director, FBN Holdings Plc. on January 1, 2016. He joined the Board of First Bank of Nigeria Limited in 2011 as Executive Director, Public Sector South and until his appointment as GMD of FBNHoldings, he was Executive Director, South at FirstBank. UK Eke is a seasoned banker with deep financial services experience spanning diverse areas including risk management, consulting, taxation, process engineering, capital market operations and business assurance. He began his

Ade Ayeyemi Group Chief Executive Officer

career with the professional firm of Deloitte Haskins & Sells International where he rose to a Senior Audit Consultant prior

Ade Ayeyemi was appointed Group Chief Executive Officer

to joining Diamond Bank Plc. where he worked for 19 years

of Ecobank in June 2015 and assumed office on September

and became Executive Director, Regional Businesses, Lagos &

1, 2015. He is an experienced banker, who before joining

West. UK Eke has over 30 years of professional experience and

Ecobank, had a long and successful career with Citigroup,

he brings his wealth of knowledge to the Boards of a number

where he was CEO of Citigroup’s sub-Saharan Africa divi-

of institutions where he serves as Non-Executive Director

sion based in Johannesburg. Ade is an accounting graduate

including FBN Bank (UK) Limited, First Pension Custodian

of the University of Ife, now Obafemi Awolowo University,

Limited and Financial Institutions Training Centre (FITC). He

Ile-Ife, Nigeria, where he earned a Bachelor of Science degree

holds a first degree in Political Science from the University of

with First Class Honours. He also studied at the University of

Lagos and an MBA in Project Management Technology from

London and is an alumnus of the Harvard Business School’s

the Federal University of Technology, Owerri. A philanthro-

Advanced Management Programme. A Chartered Accountant,

pist and a respected business administrator, UK Eke is a Paul

he is also a trained UNIX Administrator and Network Oper-

Harris Fellow of The Rotary Club International, a Fellow of the

ating Systems Manager. His many interests include business

Institute of Management Consultants, Fellow of the Institute

strategy, economics, process engineering and technology.

of Chartered Accountants of Nigeria and recipient of Nigeria’s National Honor of Member of the Order of the Federal Republic (MFR). He is happily married with children.

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Fidelity Bank Plc

Africa Prudential Plc

Share Price Appreciation in 2017:

192.9%

Share Price Appreciation in 2017:

Amount added to market capitalisation:

38.4%

N46.94bn

Amount added to market capitalisation:

N2.62bn Peter O. Ashade MD/CEO

Peter is an astute investment banker with close to 3 decades’ cognate experience in Nigeria’s money and capital market.

He joined UBA Registrars Ltd (now Africa Prudential Plc) in 2006 as Managing Director/CEO and led the transformation of the business from a subsidiary of UBA Plc to the only listed Registrars’ company on the Nigerian Stock Exchange achieving over 8000% growth in profitability within 8 years.

Nnamdi J. Okonkwo

He championed disruptive innovation in the registrars’ busi-

MD/CEO

ness in Nigeria pioneering many e-products and successfully implemented a major diversification strategy for the business.

Nnamdi Okonkwo joined Fidelity Bank in 2012 as Executive Director in charge of the bank’s businesses in Southern Nigeria, a position he held until January 1, 2014 when he was appointed Managing Director/CEO of Fidelity Bank. Before he joined Fidelity Bank, he worked in other financial institutions including the United Bank for Africa (UBA) Plc where he held various managerial and leadership positions including regional bank head in Lagos, Regional Director, Federal Capital Territory Abuja; project director, and head of corporate banking and multinational corporate division.

The high point of his career in UBA came when he was appointed Managing Director/CEO of UBA Ghana and later elevated to Regional CEO of the bank’s West Africa Monetary Zone covering Ghana, Liberia and Sierra Leone. Nnamdi obtained a first degree in Agricultural Economics from the University of Benin. He holds an MBA in Banking and Finance from Enugu State University of Technology, Nigeria. In addition, he is also a graduate of the Advanced Management Programme of INSEAD Business School, Fontainebleau, France.

Prior to joining Africa Prudential Plc, Peter was the founding CEO of Great Africa Registrars Limited (Now Meristem Registrars & probate Services Limited), Assistant Registrar at First Registrars & Investors Services Ltd and Account Manager at Union Bank Plc (Registrars Department [Now GTL Registrars Ltd]).

Peter has diverse academic and professional background: • MBA, Marketing • MSc, Finance • Fellow, Institute of Chartered Accountants of Nigeria • Fellow, Chartered Institute of Bankers • Fellow, Institute of Capital Market RegistrarsAssociate, Chartered Institute of Taxation of Nigeria • Associate, Institute of Directors He is an alumnus of the prestigious Lagos Business School (CEP, LBS).

He is currently: • Treasurer, Institute of Capital Market Registrars (ICMR) • 1st Vice Chairman, Chartered Institute of Bankers of Nigeria (CIBN), Lagos Branch.

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C & I Leasing Plc

NASCON Allied Industries Plc

Share Price Appreciation in 2017:

Share Price Appreciation in 2017:

158%

117.7%

Amount added to market capitalisation:

Amount added to market capitalisation:

N10.76bn

N2.12bn Andrew Otike-Odibi MD/CEO

Andrew Ifuneyachukwu Otike-Odibi is a double Alumnus of the University of Benin, with an MBA and a Bachelor’s Degree in Accounting.

He commenced his career in 1991 with the Chartered Accounting Firm; Godfrey Ikomi then moved to the international Consulting practice of Ernst and Young in 1992.

In 1993 He switched to a banking opportunity with Diamond

Paul Farrer

Bank and in only 2 years his outstanding performance iso-

Managing Director

lated him as the best option for the position of Port Harcourt Branch manager.

In 1999 Andrew resumed with C & I Leasing PLC - the foremost

Paul joined NASCON as Managing Director in 2015, having

brand for Consumer Leasing and Business support services-

previously been the Chief Operating Officer and Group Ex-

as the Port Harcourt Branch Manager and the same outstand-

ecutive Director of Food Concepts Plc. His experience in the

ing qualities distinguished him on every task assigned.

foods business spans 20 years in the South and West African

Today he is the Managing Director of C & I Leasing PLC; a

markets; in international companies such as TGI Fridays

business which is heavily relied upon by several multinational

(Americana Group), Steers Holdings – Debonairs Pizza, Fa-

and indigenous corporate organizations in various sectors of

mous Brands and Innscor International. He is an alumnus of

the Nigerian economy including Oil and Gas, Banking, FMCG

East London Technical College, South Africa.

and Telecommunications. C & I Leasing PLC supports all these organizations offering services in Manpower Outsourcing, Fleet Management, Marine Operations and Telematics.

He is a Fellow of the Chartered Institute of Accountants of Nigeria, a sports aficionado and a volunteer with several Christian and charity organizations.

He is happily married with 3 Children.

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Berger Paints Plc Share Price Appreciation in 2017:

Cement Company of Northern Nigeria (CCNN) Plc

32.7%

Share Price Appreciation in 2017:

Amount added to market capitalisation:

N605.73m

90% Amount added to market capitalisation:

N1.14bn

Peter Bababunmi Folikwe

Ibrahim Aminu

MD/CEO

MD/CEO

Folikwe was appointed as the MD/CEO on the 10th of March

Ibrahim Aminun joined Cement Company of Northern Nige-

2015. He has over 24 years of experience in Marketing, Sales/

ria (CCNN) Plc, Sokoto, in January, 2010 as an Assistant Direc-

Distribution and General Management; having worked in a

tor–Finance and later promoted to Finance Director. He was

number of top-rated companies in Nigeria across a number of

appointed into the Board as Executive Director – Finance, in

sectors in varied capacities. He brings with him, a great depth

May 2013. He became the MD/CEO of Cement Company of

of knowledge and experience in manufacturing, telecommu-

Northern Nigeria PLC on June 1, 2016. He started his working

nications and FMCG environments.

career at First Bank Nigeria Regional Office in Ibadan where he

He holds a Bachelor of Science (Hons) degree in Marketing

served under the NYSC scheme. He has over two and half de-

from the University of Nigeria, Nsukka, and Masters in Busi-

cades working experience in various organisations including;

ness Administration (MBA) from the University of Benin. A

Federal Civil Service Commission, Lagos; Nigeria Universal

Fellow of the Institute of Direct Marketing, Folikwe is alos a

Bank, Kaduna; Nigerian Security Printing and Minting Com-

Member of the Nigeria Institute of Marketing, an alumnus of

pany Ltd, Lagos/ Abuja; Nigerian Telecommunications Ltd,

Lagos Business School and Cranfield University Bedford, UK.

Abuja; Suburban Telecoms, Abuja: BUA Flour Mills, Lagos.

Born on 14th July, 1968, he obtained his B.Sc. degree in Accounting from Ahmadu Bello University, Zaria, in 1990. He is also a member of the Institute of Chartered Accountants of Nigeria (ICAN) and a fellow of Association of Chartered Certified Accountants (ACCA, UK). Aminu also holds an MBA from Usmanu Danfodiyo University, Sokoto.

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Dangote Sugar Refinery Plc Share Price Appreciation in 2017:

227.3% Amount added to market capitalisation:

N84.60bn

Abdullahi A. Sule Ag. Group Managing Director

Dangote Flour Mills Plc Share Price Appreciation in 2017:

185.9% Amount added to market capitalisation:

N9.50bn

Thabo Mabe GROUP CEO

Abdullahi Sule is the acting Group Managing Director of

Thabo Mabe who is the current Group Chief Executive Officer

Dangote Sugar Refinery Plc. He has over 30 years experience

of DFM Plc was born 27th August 1963 in South Africa. He

in the oil & gas sector in the USA and Nigeria, steel produc-

holds a BSC in Chemistry from Fort Hare University in South

tion, machine shop operations and the sugar industry both

Africa. He started his working career in Unilever Plc where

in Nigeria and the United States of America. Before he joined

he served in various capacities with practical involvement in

Dangote Sugar, he was the MD/CEO of African Petroleum (AP)

manufacturing production, sales and other spheres of work

Plc, and Sadiq Petroleum Nigeria Limited.

in the Company. He held various leadership positions until

He holds a BSc. in Mechanical Engineering and a Master’s

he rose to become the CEO of Unilever Nigeria Plc.

degree in Industrial Technology from Indiana State University,

He headed the multinational company for over 4 years leading

United States.

to its tremendous transformation which has been sustained till date.

He joined the services of Dangote Flour Mills Plc on 1st July, 2014 as the Group Chief Executive Officer and a director on the Board of the Company with his vast experience which spans over years.

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May & Baker Nigeria Plc

Eterna Plc

Share Price Appreciation in 2017:

Share Price Appreciation in 2017:

176%

31%

Amount added to market capitalisation:

Amount added to market capitalisation:

N1.42bn

N1.03bn Mahmud Tukur MD/CEO Mahmud Tukur is a joint-honours graduate of Accounting & Management from the Business School of the University of Wales College, Cardiff. He has a solid track record of business success, well-developed organisational and leadership skills.

He has over 23 years’ experience in the Oil & Gas and Maritime sectors covering Oil services, Upstream, Downstream, Shipping and Terminal Operations.

He began his career with Sirpi-Alusteel Construction&Interoil Services Group in Port-Harcourt, Rivers State where he was involved in several strategic national projects including NLNG. He served as the MD/CEO of Daddo Maritime Services Limited, a foremost indigenous maritime services company.

Nnamdi Okafor MD/CEO

Mahmud was the founder and pioneer Managing Director IGPES which evolved to be a major EPC contractor to the IOC’s operating in Nigeria.

He is the Vice Chairman of Eco-Marine Group, a shipping

Nnamdi Okafor joined May & Baker in 1985. He was appointed as the Managing Director /CEO on February 1, 2011. Before then he was the Executive Director/General Manager, Foods Division, Ota, with responsibility for the operations of the food processing division of the company. Okafor holds a Bachelor of Pharmacy (Honours) degree from the University of Ife, IleIfe (now Obafemi Awolowo University, Ife) as well as Master of Business Administration (MBA) in Marketing from ESUT Business School, Lagos. He is a Fellow of the Pharmaceutical Society of Nigeria, Member of the Nigerian Institute of Management and an alumnus of the Lagos Business School.

line and Terminal Operator with operations across West Africa and a Non-Executive Director of Independent Energy Limited (IEL), an indigenous Oil Exploration and Production Company.

Mahmud serves as an Independent Non-Executive Director (INED) on the Board of Bourbon Offshore, the global leader in the provision of offshore logistics services to Oil Exploration and Production Companies. Bourbon is publicly quoted on the Euronext (Paris).

He is a recipient of the National Honour of Officer of The Order of The Mono, (OOM) of the Republic of Togo.

He is a Fellow of the Chartered Institute of Shipping in Nigeria and a former member of the Governing Council of the Nigerian Chamber of Shipping.

In addition to several Nigerian Languages, Mahmud speaks French fluently. He is a keen follower of sports and enjoys watching football and rugby in his spare time.

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NEM Insurance Plc Share Price Appreciation in 2017:

58.1% Amount added to market capitalisation:

N739.27m

Tope Smart GMD/CEO

Tope Smart is the group managing director and chief executive officer of NEM Insurance Plc. A seasoned underwriter and marketer, he started his insurance career with the firm of Everyman Insurance Brokers, Abuja in 1987. The management of the company later discovered the abundance of talent in him and was recommended to head the Abuja branch of the firm but he left for Nigerian-French Insurance Company Limited in 1989 in order to widen his experience. He became the Managing Director/Chief Executive Officer of the new NEM Insurance Plc after the recapitalisation exercise in 2007.

Tope Smart, an insurance graduate and an award winner from the University of Lagos (1987), is also an Associate of the Chartered Insurance Institute, London (ACII) 1990 and the Chartered Insurance Institute of Nigeria (ACIIN) 1991.

He holds a Masters Degree in Business Administration from the University of Nigeria, Nsukka 2000.

Fidson Healthcare Plc Share Price Appreciation in 2017:

189.1% Amount added to market capitalisation:

N1.61bn

Fidelis Ayebae CEO

Fidelis Ayebae is the Founder and Pioneer Chief Executive Officer at Fidson Healthcare Limited. He started the company in 1995 after working in various capacities in a number of organizations, including Citibank Limited. He transformation agenda over the years has succeeded in placing Fidson on the global stage.

Ayebae graduated from the Mainland Institute of Technology in 1976 with a Diploma in Civil Engineering. He obtained Advanced Diploma in Business Administration from the University of Lagos in 1999. He is an Associate of the Chartered Institute of Administration and also a member of the Nigeria Institute of Management. He is also the Chairman and Director of many other companies. He has attended many courses, both locally and internationally including banking operation, organisation development skills, and selling skills, among others.

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Honeywell Flour Mills Plc Share Price Appreciation in 2017:

61.5% Amount added to market capitalisation:

N1.98bn

Okomu Oil Plc Share Price Appreciation in 2017:

68.5% Amount added to market capitalisation:

N29.77bn

G.D Hefer, PhD Olanrewaju Jaiyeola

MD/CEO

MD/CEO Graham Hefer is the Managing Director of Okomu Oil Plc. Before joining Okomu Oil Palm as managing director, he Olanrewaju Jaiyeola was appointed to the board of directors

worked for 15 years in the cotton industry in Southern and

as the Managing Director designate on October 2nd 2013.

Central Africa where he was a shareholder in a number of

Few months later, he was later appointed as the Managing

cotton ginneries. He once worked as a lecturer and research

Director/CEO of Honeywell Flour Mills Plc on April 1st 2014.

fellow at the University of Natal then moved on to work as an

Before his latest assignment and owing to his versatility after

agricultural director at Tongaat Cotton Limited. Hefer was

holding various accounting and finance positions, Jaiyeola

an executive director at Noordelike Sentrale katoen (PTY)

was deployed to head the sales function in 2004. Following

South Africa. He is one of the rare CEOs that have transited

excellent results delivered by him since joining the sale func-

from the academic world into the business world. He has a

tions, he was promoted to the position of the Director, Sale

Masters of Science degree and Doctor of Philosophy (PhD)

Operations in August 2007. He had his professional accoun-

in Agriculture.

tancy training with the international firm of Messrs. Akintola Williams & Co and became a chartered accountant in 1990. He acquired relevant accounting experience in reputable organisations before joining the Honeywell Group in 1993. Jaiyeola obtained a Bachelor’s degree in Mathematics and Statistics from Obafemi Awolowo University, Ile-Ife, Nigeria in 1986.

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Linkage Assurance Plc Share Price Appreciation in 2017:

Pius Apere is the MD/CEO of Linkage Assurance Plc. In 2011

32%

he assumed the position of Managing Director of Achor Ac-

Amount added to market capitalisation:

Assurance Plc as Deputy Managing Director. Earlier, he had

N1.28bn

worked as an actuarial analyst for Lloyds Banking Group

tuarial Services Limited in London before joining Linkage

(HBOs), in Bristol, United Kingdom from 2008-2010 and with Ernst & Young in London from 2010-2011. He was the Life Manager at Unity Life & Insurance Company in Nigeria from 1989-1991. He was Consulting Partner at Chike Oyeka & Co (Actuarial Consultants) Nigeria from 1991-1992 and worked as the Head of Life Insurance Department at Cornerstone Insurance Company in Nigeria in 1992.

Apere holds a B.Sc from the University of Lagos, M.Sc and PhD in Actuarial Science from CASS Business School, City University in London. He is a Fellow of Institute of Insurance, London. He worked at Ajibola Ogunshola & Co (Actuarial &

Pius Apere, PhD

Financial Consultants) in Nigeria from 1986-1989.

MD/CEO

BUSINESS DAY

...the CEOs that added N1.96 trillion in market value...