BusinessDay 28 Oct 2020

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news you can trust ** wednesday 28 october 2020 I vol. 19, no 681

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Protest forces hospitals to step up response but doubt lingers over sustenance Temitayo Ayetoto

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ospitals stepped up emergency responses, particularly to gunshot victims, in the wake of the violent twist to the #EndSARS protests across Lagos and Nigeria last week.

But many still doubt that the positive development will be Continues on page 31

Coronation Insurance offers rapid claims track for #EndSARS victims

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oronation Insurance, formerly known as Wapic, has introduced a fasttrack claims application platform for its customers who fell victim to attack by hoodlums across the country last week.

The company in a statement notes that while it supports the right to non-violent protests, it Continues on page 2

Inside Fear heightens as police, LASTMA officers stay off Lagos roads

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Following the #EndSARS protest of last week, there is panic buying of petrol by motorists in Abuja, as shown in this photo.

#EndSARS: Border re-opening offers Buhari opportunity to cut cost of living Odinaka Anudu

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uhammadu Buhari may not need another term as presid e nt, b u t h e surely needs to gain political capital critical for enjoying legitimacy and for his party in future elections.

One of the simplest ways of doing that is to re-open the Nigeria-Benin Republic border, which is the entry point for major food products into Nigeria.

The closure of the border, according to BusinessDay market survey, has shot up prices of food items by 50 to 100 percent in the last 14 months — deepening poverty in a country notorious for being world’s poverty haven.

“A bag of rice is now N35,000,” was boldly written on a cardboard placard flaunted by an #EndSARS protester at Gbagada in Lagos on October 16.

Another protester in Lekki, on October 17, before the shooting of peaceful protesters by soldiers, brandished a placard

boldly written, “Our families cannot afford a bag of garri.” #EndSARS protests have focused mainly on the brutal police unit known as the Special Anti-Robbery Squad (SARS), but many young Nigerians have protested high cost of living that has permeated lives for more than one year.

Before the closure of the allimportant border, which has been the source of Nigeria’s food items from rice to pepper, a 50kg bag of foreign or imported rice was priced at N15,000 to

N18,000. But the price is now N26,000 to N35,000 in many parts of Nigeria. Many households buy garri, powdery food flour made from cassava tubers, on ‘painters.’

A painter of garri costs N400 before the border closure in August 2019, but it now costs N800 to N1000 in several markets in Lagos, Onitsha, Abuja and Port Harcourt. A 25kg bag of garri stands at N13,000 to N16,000 as against N8,000 before the policy Continues on page 31

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news Coronation Insurance offers rapid claims...

Continued from page 1

deplores the unnecessary

loss of human lives.

According to Coronation Insurance, “Following the recent monumental loss of human life and damage to property and assets across the nation, we have shifted to our highest gear to get our customers the most appropriate help as quickly as possible at this time of need.

“We believe that insurance companies must ensure their clients do not have to wait for assistance after a disaster occurs by proactively collating information of damage and losses as well as responding to claims with speed and precision. We are well aware that our customers are dealing with numerous difficulties at this time and the last thing

they want is a painful and challenging claims process.”

The company said, “We want our customers to return to their normal way of life as soon as possible, and have put in place a claims response platform for real-time communication and easy sharing of loss evidence to fast-track claims processing.

“Our emergency payment methods will assist to relieve your immediate spending pressures and help you get back on your feet within the quickest period of time. Our channels are available 24/7 so that you can make enquiries and report claims seamlessly.”

Coronation Insurance called on all citizens to embark on the collaborative rebuilding of all that we have lost in the past week.

Business disruption, economic losses are opportunity costs of stalling police reform Endurance Okafor

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s Nigeria gradually re-opens its economy following the relaxed curfew that was enforced by some state government to contain the unrest caused by hoodlums, many business owners in Africa’s largest economy may be returning to empty shops, offices and damaged buildings.

This is due to the disruption caused by hoodlums who hijacked what started as a peaceful protest of well breed Nigerians demanding an end to police brutality and bad governance in the country, as they made away with goods worth billions of naira.

The unrest, looting, destruction and vandalism of private and government properties by hoodlums coupled with the economic impact of the almost two weeks peaceful protest are a big hit for Nigeria’s fragile economy, already suffering from the double challenge of Covid-19 and low crude price.

According to economists, the Nigerian government could have been able to prevent the losses if it had reformed the police force, which the citizens have been demanding since 2017, the reason why the protest that led to killings of unarmed campaigners started in the first place.

“There is an opportunity cost or cost of stalling governance at all levels, and of course this is one of the critical parts of the security structure, but it also includes things like the regulation and the overlapping system of the regulators, the complexity of regulation, the exchange regime, the poor infrastructure,” Andrew S. Nevin, partner/chief economist, PwC Nigeria, said.

With four attempts in three years, Nigeria has been unsuccessful in its quest to reform its police force, an issue that recently pushed many Nigerians to the streets with the hope to pressure government

into providing answers, as many now feel threatened by the security agency that was established to protect them.

“The motive for the socalled police reform is totally deceptive. There is no will power on the part of the government that is pushing to execute the reform,” activist and senior advocate of Nigeria, Ebun -Olu Adegboruwa, said.

The unintended outcomes coming from the frustration of the youths have been at great cost to the economy and it continues to create bottlenecks and disruptions to businesses and the economy in general, according to Toki Mabogunje, president, Lagos Chamber of Commerce and Industry (LCCI).

“The goods in my shop are worth more than N5 million.

I am very pained because I just got new products. Coming here today, to see that my shop is empty is like my whole world has collapsed,” a young Nigerian who simply identified herself as Temmy, a shop owner at Leisure Mall at Surulere, one of the locations that were raided by the hoodlums, lamented.

Like Temmy and her three employees, Nnamdi, Idris and many others, were also affected by the activities of the hoodlums who according to BusinessDay survey are selling the stolen goods at prices far below the worth.

“I think business would see operations suffer, especially for businesses that have physical value chains,” Ayo Ayorinde Akinloye, a research analyst at CSL Stockbrokers Limited, said.

Aside from the losses caused by the hoodlums, Nigeria, according to LCCI may have lost over N700 billion in economic value in the period the protest lasted.

With business activities being disrupted it could lead to a downside in the economy, according to Joachim MacEbong, a senior analyst at SBM Intelligence. www.businessday.ng

Fear heightens as police, LASTMA officers withdraw from Lagos roads

... absence of officers worsens traffic situation CHUKA UROKO & JOSHUA BASSEY

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olice traffic wardens, officials of Lagos State Traffic Management Authority (LASTMA) and Federal Safety Corps (FRSC) have been scanty on major roads across Lagos State since Monday, in what has triggered fear and worsened traffic situation.

In some parts of the state, they were completely absent from their duty posts, leaving ‘area boys’ and members of the National Union of Road Transport Workers (NURTW) to man and control traffic at road junctions/roundabouts.

At Okota Roundabout, Jakande Junction, Cele Uturn, Mile 2, and First Avenue in Festac Town, policemen and LASTMA officials who

usually control traffic movement in the areas were conspicuously absent, as NURTW and ‘area boys’ were seen with long sticks in their hands controlling vehicular movement.

Driving and commuting experience in the sprawling city is now a lot more difficult and stressful. Technically speaking, nobody is in charge of traffic management and control, leading to chaos and longer hours on roads. BusinessDay checks reveal that the situation is not any better on Lagos Island than it is on the Mainland.

Pockets of military personnel were also sighted in areas where public assets are located, including the Tafawa Balewa Square, Lagos Island, international airport, Ikeja, Lagos State secretariat, multinationals, foreign embas-

sies, among others, in what is further fuelling a sense of uncertainties in Nigeria’s economic capital.

“It is now three days since the Inspector General of Police (IGP) gave directives to the force area commanders to reclaim public space by taking charge and ensuring that the ongoing burning and looting of public and private assets were stopped,” Timothy Agboola, a public affairs analyst, noted in an interview with BusinessDay. “That directive is yet to take effect and so we don’t see any police officer on the streets and that is encouraging the hoodlums to continue with the burning and looting, and motorists to drive anyhow,” Agboola said.

Expectation was that with the IGP’s directive and the

adjustment of the curfew imposed on Lagos by Governor Babajide Sanwo-Olu from 6am to 8pm, policemen would be everywhere on the streets to ensure there was no further breakdown of law and order, and also to enforce the curfew.

But going through major roads in the metropolis on Monday and Tuesday morning, it was discovered that policemen were not on their duty posts. LASTMA officials were not anywhere to be found too.

The whole stretch of the Lagos-Badagry Expressway from Agbara to Doyin in Orile Iganmu, had no single police officer or LASTMA official to control traffic. The same thing on Apapa-Oshodi Expressway, Lekki-Epe Expressway,

Continues on page 31

Babajide Sanwo-Olu (5th r), governor, Lagos State; Ajayi Borroface (4th r), Ondo North; Olamileka Yayi (r), Lagos West; Obafemi Hamzat (6th r), deputy governor, Lagos State; Opeyemi Bamidele (6th l), Ekiti Central; Oluremi Tinubu (l), Lagos Central, and other Southwest senators, during their solidarity visit to Governor Sanwo-Olu on the #EndSARS protest mayhem, in Lagos House, Marina, yesterday.

#EndSARS: Why many insured may not be able to make claims … as insurers receive claims request Modestus Anaesoronye

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number of claims request arising from losses incurred by government, businesses and individuals from #EndSARS protest damages across Nigeria may be turned down by insurance companies, BusinessDay investigation reveals.

Facts emerging from underwriters reveal that losses resulting from incidents like the current #EndSARS protest, which was eventually hijacked by hoodlums that led to destruction and looting of properties and assets, are classified as riots, vandalism or civil commotions, and so are covered only by extension on normal insurance.

According to insurance operators, only insurances with extension for riot, vandalism and civil commotions will be honoured, so this does

not cover ordinary normal policies.

“The #EndSARS loss incident is covered in insurance, under policies that extend to riot and civil commotion.

So, fire and burglary or commercial property insurances, if extended, cover these kinds of damages,” an insurer says.

Ganiyu Musa, chairman, Nigerian Insurers Association (NIA) who spoke at a media interview on Monday, said all valid claims arising from the #EndSARS vandalism and looting from policyholders would be duly settled according to the terms of the policies obtained.

Assessment of claims from the crisis is currently ongoing across the 55 insurance companies, as some of them have started getting notification of claims from policyholders, Musa said.

He stated that presently, loss adjusters were already touring the sites of the affected

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companies and businesses evaluating the extent of damages done.

However, he noted that claims from these damages would have an immediate negative impact on companies’ liquidity, balance sheet and cash flow but essentially, insurance was built for times as these and this was why people take up policies.

He gave assurance that all policyholders, both individuals and businesses with valid insurance policies that have been paid for, would be duly compensated as all members of the NIA would indemnify and provide them the necessary pay out in line with the terms of their policies.

“Policyholders with valid claims have nothing to fear.

This is why you took insurance, for times as these. If you are in doubt of how to start processing your claims, you can get in touch with your in@Businessdayng

surance company or brokers.

They will put you through the claims process.

“For those that have not taken or do not have any form of insurance policy, this is the best time to do so because this is the essence of insurance,” he said.

Eddie Efekoha, managing director/CEO, Consolidate Hallmark Insurance plc, said his company would settle insurance claims for policyholders whose policies cover Strike, Riot and Civil Commotion (SRCC) extension.

The company, who stated this in a mail sent to all its policyholders and stakeholders across the country, noted that such claims, like all others, would be expeditiously handled to ensure that customers were back in business as quickly as possible.

While calling on the victims of the #EndSARS protests to file

Continues on page 31

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Moving Nigeria forward: Time for shared responsibility?

Franklin Ngwu

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he fear is palpable and justified! Even the unshakeable have been shaken with the level of destruction, looting and carnage across the country following the mismanagement of the legitimate EndSARs protest. That we suffered such an unbelievable level of carnage just days after celebrating 60 years as a country clearly shows that our dear country is in a deep crisis! The question on many lips is if our dear country Nigeria can truly be called a nation and what should be done to rescue the rapidly failing giant of Africa! There is no time that the meaning of our National Anthem is needed than now. Compatriots from all parts and shades urgently need to rise to this call to build and serve while we earnestly pray to God Almighty to direct our noble cause and guide our leaders’ right!

The urgency of this call cannot be over-emphasized! While we hope that the destruction, looting and carnage of the last few days will continue to decline and stop, the truth is that the government (federal, state and local) are yet to properly appreciate the enormity of the challenges to articulate the appropriate solutions. Regrettably, as long we lack proper understanding of the challenges, the likelihood of more protests and crisis cannot be ruled out. While EndSARS protest might be seen, perceived and treated as a protest of police brutality, it is far beyond police issues. It is more of

a manifestation of deeper failures of our society and governance evident in the lamentable levels of poverty, unemployment, insecurity and hate. Nigeria is in a deep crisis and needs total overhaul!

Shared responsibility is urgently and deeply required. We all have our parts to play particularly the key stakeholders- the government (mainly federal and state), the private sector and the youth movements.

This contribution highlights the summary of what is expected of the key stakeholders to rescue Nigeria from failure. Before I continue, let me first offer my condolences on the avoidable deaths of fellow Nigerians particularly the youths and our security officers. We pray that God accept their souls while we make all efforts to avoid such condemnable and reactive mismanagement of otherwise very peaceful protests for a better Nigeria. How we learn and treat the issues that caused the carnage will go a long way in showing that heroic efforts and sacrifices of our departed brethren were not in vain!

First, the government led by PMB and the governors need to quickly appreciate that Nigeria is fast failing under their leadership and poor performance.

With the hope that they are interested in legacy, a key question is what they can do in the remaining two years and six months before a new government in 2023. If PMB is not strategic and proactive, his legacies might be remembered more from the negatives than the positives. This I hope and pray should not be the case. Believing that he is interested in building a nation bound in freedom, peace, justice, fairness and unity, it is pertinent that he appreciates that with the sociology of Nigeria, the current governance structure we are using is not working, will not and cannot work. This is not caused by PMB, APC or PDP rather by our sociology and plurality. For Nigeria to progressively work, the need to quickly restructure particularly devolving powers from the center (federal) to

‘

A very important question and challenge for the educated youths is how to secure the buy in and support of the “hoodlums”.

This can be achieved through a strategic rethink of why they are called hoodlums

the states and local governments cannot be overemphasized. It is an option that can only be ignored to our collective peril. The current growing demand for state police is a subset of this overwhelming demand to restructure Nigeria.

About 25 million Nigerians are unemployed. If they are classified as a country, they will be more populated than 35 countries in Africa’s 54 countries.

We also know that Nigeria is classified as the poverty capital of the world with about 91 million Nigeria described as extremely poor. Deductions from the above clearly show that we have a potent danger in our hand with about 100 million Nigerians willing to protest and with the saying that a hungry man is an angry man, violent protests cannot be ruled out. Restructuring the country will liberate the country and open more opportunities for higher productivity, engagement and job creation. As these millions of poor and unemployed Nigeria all reside in the 36 states of Nigeria, our 36 governors have no option than to buckle up and provide the needed innovative leadership! The jobs need to be created from the states and by the Governors rather than the present seeming transfer of the task to the federal government.

Second, the carnage has clearly shown that the private sector needs to do more. While some are significantly contributing to the economy through taxes, job creation and corporate social responsibility, the situation we are in calls for more collective efforts and actions. Just as we had a private sector led effort (CACOVID) against COVID 19, so we desperately need for job creation and poverty reduction. There is a need for a large pull of funds from and managed by the private sector focused on quick job creating sectors of the economy. Three very good sectors that can be supported for immense and immediate social impact are education, agriculture and health. With many of our poor neighborhoods lacking good and

affordable schools, a significant part of the pooled private sector funds should be channeled to building and managing schools specifically built for the poor of our society.

As skills in Information Technology provide the opportunity to get jobs in any part of the world irrespective of your location, it is an area the schools for the poor can focus on. Agriculture also provides immense opportunity to reduce poverty. With some economic trees such as avocado, soursop, coconut and palm trees proven to generate about N25,000 per tree after three years of planting, it is an area that the private sector can use to both reduce poverty, create jobs and generate more wealth. The private sector fund can agree to finance the planting of about 5 million economic trees every year. While it will cost about N2.5 billion to plant the five million trees at a cost of N500 per tree, it will generate a revenue of about N125 billion every year for at least 50 years.

The third most critical stakeholder are the youths. From what happened, we have two major groups. While the first are the educated that organized and participated in the EndSARS protest, the other group are the generally uneducated that organized and participated in the violence, destruction and carnage that we are witnessing. This second group is generally described as Hoodlums! A very important question and challenge for the educated youths is how to secure the buy in and support of the “hoodlums”.

This can be achieved through a strategic rethink of why they are called hoodlums and what can be done to reduce their population through education and opportunities. This is very important for the Youth movement to succeed.

Dr. Ngwu, is an Economist/Associate Professor of Strategy, Risk Management & Corporate Governance, Lagos Business School and a Member, Expert Network, World Economic Forum. E-mail- fngwu@ lbs.edu.ng

New power tariff implementation: It’s time for DISCOs to embrace greater automation

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ollowing a meeting between federal government officials and the leadership of the Nigeria Labour Congress and the Trade Union Congress, Nigeria’s government has extended the suspension of the implementation of new electricity tariffs by an additional week up to October 19.

The parties also agreed to reduce the tariffs by 10 percent for band A, 10.5 percent for band B and 31 per cent for band C. While ongoing consultations between government officials and the labour unions may lead to further tweaks to the implementation of the new electricity tariffs, most distribution companies (DISCOs) already have several challenges on their hands.

One challenge is potential complaints from consumers about the quality of service.

The new tariff bands are based on specific service delivery commitments by the DISCOs and the Nigerian Electricity Regulatory Commission, the industry regulator, has said that the DISCOs are required to compensate consumers when they fail to meet the agreed service level. Therefore, to dismiss frivolous complaints and to assess valid ones, each DISCO must be prepared to show how much power it supplied its consumers. However, doing so with the manual record keeping methods adopted by many DISCOs today can be challenging and problematic.

In addition, the new tariff regime elevates the need for greater transparency about in-

formation relating to electricity distributed to the DISCO’s feeder stations. Such insight eases the transition to a regime where the operations of DISCOs are increasingly scrutinized. DISCO operators can no longer afford to be sloppy with how they organize their operations but may struggle to monitor a complex value chain if they fail to improve how they capture information about what they do.

DISCOs will be under pressure to improve response times to address faults that cut off electricity supply to consumers. In the case of pre-paid customers, DISCOS will have to work out an efficient way to issue credit notes to compensate deserving customers. These require accurate data. Those who struggle to manage the requirements of the revised tariff environment may see their costs rise and revenues come under further pressure.

Cloud technology is underpinning solutions that are transforming how utility and other large companies with complex value chains are able to automate their operations and enhance the customer experience. For example, software as a service (SaaS), is a growing software licensing and delivery model in which software is licensed on a subscription basis. Adopters of such technology are able to achieve greater automation and efficiency in their business operations through collaborative tools for workflow management, inventory management and

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customer self-service. Some analysts have estimated that SaaS is currently a $158 billion market and is expected to almost double to $307 billion by 2026.

Crown Interactive’s CICOD suite of software has been successfully adopted in Nigeria’s power distribution sector to good effect. The great thing about SaaS is the flexibility it offers users to select what they need and avoid purchasing expensive off-theshelve enterprise solutions with redundant modules. The CICOD product suite offers a workflow manager that enables the automation of approval-based business processes across departments, including complaint handling, task management and inventory request management. There is also the Energy Management Control Centre (EMCC) which can be deployed as a private cloud for the DISCO. The EMCC is Crown Interactive’s control system architecture that allows DISCOs to set up a utility network, read data from communication nodes and control feeders and distribution transformers as required, providing timely notifications of electricity downtime to the DISCOs. Another valuable CICOD module is the inventory management system that enables efficient real-time allocation, disbursement, and tracking of business assets, minimizing losses and leakages in the process. This helps users adopt more efficient inventory

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Wumi Oghoetuoma

management strategies such as just-in-time inventory.

DISCOs must embrace enterprise software as a way to manage the transition to a new tariff regime. Cloud technology offers a cost-effective way to automate their increasingly complex operations. Technology greatly enhances DISCO operations, shoring up revenues by improving response time to operational failures. Additionally, it allows DISCOs to truly redefine the customer experience in a market where consumer apathy and suspicion is rife. Imagine a world where consumers can verify if a DISCO is meeting its obligations under the new tariff regime by viewing the information on a website. With CICOD, this and more is possible at a price that does not break the bank.

Oghoetuoma is the CEO of Crown Interactive, a software company with its head office in Lagos, Nigeria. Established in 2005, the firm is dedicated to providing innovative business and system process solutions to customer centric organizations across the world. Crown Interactive’s business model is to enable technology to promote industry collaboration and new business models.

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Security is key to entrepreneurship and prosperity in Nigerians Small Business handbook

Emeka Osuji

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ast week, we tried to restate the fact that finance is a major challenge faced by the SME sector, not just in Nigeria but practically everywhere in the world. We however, emphasised that it is not the most critical challenge. We identified some other factors that are equally, if not more important, than finance.

Indeed, we cautioned that under certain circumstances, the coalition of the other challenges often turns around to reinforce and often exceed the negative impact of lack of finance.

In that regard, it was our candid opinion that putting finance high above other challenges plaguing the SME sector may be a recipe for failure.

This has been the experience of many programme efforts in many climes. It is an experience we are likely to repeat, going by some of our current policy actions. In other words, whatever policy action that is proposed or taken in an effort to empower operators in the SME sector, must be comprehensive. It must

include social overhead capital and common services – the elixir for private enterprise.

The structure of the Nigerian economy makes it imperative that we continue to talk about certain development-related issues, to the extent that some people are feeling the issues are over flogged. That is how it sometimes feels when we discuss poverty, the informal sector and the developments around them. We cannot therefore be guilty of overemphasis on subjects that are rather getting worse by the day – poverty and insecurity. It is certainly not a case of saying something ad nauseam, if we discuss poverty every day in Nigeria.

For one, we hold the poverty crown of the world. Second, our ranking on the scale of failing states is worsening and unemployment is rising. Youth unemployment is in the region of 60 per cent and there is a risk of youths transiting from unemployment to high crime. Our economic life is threatened by the soon-to-come obsolescence of hydrocarbon, and our diversification efforts need time to materialise.

The Nigerian economy is overwhelmingly informal, and informality is related to poverty. A lot is being done to increase transition to formality through the education of entrepreneurs and the promised simplification of business interactions in the country. However, mush is yet to

be seen to have been done, as multiple and illegal taxation, extortion by security men unleashed on the roads, purely for commercial purposes, have made both inter- and intra-state trade and movement almost impossible, especially in the south, where security men act as though they are an army of occupation. They have run riot forcing motorists to tip them on the way. There has been little political will to end this scourge and the result is fear, hatred for security operatives and poverty among the people.

As current reports paint pictures of worsening poverty, such that the number of abjectly poor Nigerians is projected to hit 150 million by 2021, just next year, and government continues to struggle with its finances, leading to policies that are not people-friendly, it would be a disservice to downgrade the discussion and insecurity and speak only to economics. Our life as a nation depends on our ability to drag more of our people out of the class of the abjectly poor and increase the size of our middle class. We often forget that it is the middle class that makes the critical mass of investment that pushes development, but only when secure.

The problem of Nigeria has been compounded by the fact that most of the evils we identified in this column, over the past several years, as poverty generators have either become worse or given birth to children, contrary to

Our winter of discontent

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ree provision of food and water.

Typical orderly queues. Free medical care. Free legal representation.

Spontaneous crowd funding to purchase a prosthetic leg for a female amputee protester who refused to be deterred. Fundraising target was N1.5 million in one month. N4.1 million raised in three hours. Lesson: accompany compassion with will and anything is possible. Raised banners.

Fluttering national flags. Impassioned anthem singing...then a rain of bullets. Sudden tragedy. Eerie screams. Pandemonium. So who amongst these were thugs?

Tuesday, October 20, 2020 was yet another dark day for our fledgling democracy. Yet another, because it wasn’t the first. Over 300 Shiites were reportedly killed in cold blood by our armed forces in 2015. The IPOB propagators suffered a similar fate. Lesson: injustice meted out anywhere is injustice everywhere.

Never turn a blind eye because it doesn’t directly affect you. One day it may arrive at your doorstep.

Many western nations are preparing for a potentially harrowing winter as COVID-19 cases spike. The annual season of influenza approaches and portends a winter of discontent, if we’re to borrow a line from Shakespeare. Nigeria, blessed with comparatively low cases of the dreaded Coronavirus has yet again used its own hands to invite a disaster that should never have been. The utterly heartless and cowardly slaughter of unarmed and peaceful protesting youths has foolishly ushered in its own winter of discontent.

Fed up with staring hopelessly into a bleak future, our youths finally came of age to say enough is enough. Attracting the admiration and respect of all well-meaning Nigerians, they took to the streets in the most spontane-

ous yet orderly, legal and organised fashion to register their discontent. I, for one, doff my hat to them not just because they’ve finally woken up to the fact that power resides in their hands (no matter what anybody says) but because of the incredibly efficient, clever and united way in which they did it.

They displayed a front of solidarity rarely seen on these shores, which thankfully put a lie to the tribal, religious divisions that the old guard have sold to us for far too long. It brought tears of pride to my eyes to watch as the Christians amongst them formed a wall of protection around their Muslim brothers and sisters as they took to their Friday Jumat prayers.

The Muslims reciprocated by standing by the Christian faithful during the Sunday service. Such simple gestures of camaraderie speak volumes and to me signify the birth of a new Nigeria. One where the lies of the past have finally been exposed for what they are, lies. By far the largest demographic group in the country, with about 70 percent of the population under the age of 35, whichever way they go, the country must surely go. They only needed to come to that realisation and it looks like they finally have. Their time has come and no bullet, no senseless thugs, no method of intimidation and no divide and rule tactic can stop them. They hold the future and by God’s grace, they will arrive there.

It pleases me that people are finally waking up to the fact that we shouldn’t have to fast and pray for God to elevate one of our relatives or friends to a government position before we should hope to enjoy the good life.

We can no longer wait patiently for crumbs to fall off our “benefactor’s” table. Every Nigerian, no matter where he hails from, his religion or who he knows or doesn’t know,

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‘

Our life as a nation depends on our ability to drag more of our people out of the class of the abjectly poor and increase the size of our middle class. We often forget that it is the middle class that makes the critical mass of investment that pushes development, but only when secure

our expectation of their elimination or reduction. A war-torn country cannot be counted among the prosperous nations of the world, while the war lasts. As we write, there is no visible sign of an end to insecurity in Nigeria. Rather, if care is not taken, we are just at the beginning of what looks like a persistent and increasing attack on the rural dwellers in Nigeria. One of the key causes of rising poverty in the country is that more people join the rank of the hopeless every day, than exit the dreaded conundrum of poverty and insecurity.

Somehow, we seem to have put certain external interests ahead of ours. We allow such things as the so-called ECOWAS protocol on the free movement of people, including killer herdsmen from all over Africa to come into the country. We are guaranteed unsafe communities as these migrants extend their ambitions from merely grazing their cattle to owning a piece of the Nigerian space. Farming has come to an end and even social life, like weddings and other community-based activities, are on stop. We cannot hope to bring a single person out of poverty in 20 years, for as long as there is no freedom. Whatever it costs Nigeria to secure its people is a worthy investment in its future.

Dr Osuji is head of the department of Economics at Pan Atlantic University Lagos. eosuji@ pau.edu.ng @Emekaosujii, Twitter: emekaosuji_

Character Matters should have high hopes of living the good with Daps life as long as he’s willing to work hard and work smart.

Ask those in societies that work and they will tell you that you don’t need to be a millionaire to live a comfortable and meaningful life. You don’t have to be rich to buy a new car, give your children a good education, have peace of mind that any medical eventuality would be met without much struggle or even take your family on annual holidays; something considered a luxury by 99 percent of Nigerians but which Oyinbo has since realised is critical for his health and a sense of wellbeing. It takes its place amongst the plethora of factors which determine a nation’s average life expectancy and partly explains the gap of over 25 years between that of Nigeria and that of Western Europe.

About 70 percent of illnesses can be linked to stress and unfortunately, we have plenty of that here. Is it the endless hours spent in traffic or the absence of constant electricity supply which makes restful sleep an impossibility for the majority? Or is it having to sleep with one eye open because of the horrendous security situation? Or the constant harassment by security forces and the agony of having to part with money that was already not enough? Stress is something we have adapted to living with but only few realise that adapting to it does nothing to minimise the damage it does to our health. Contrary to popular belief, you’re not strong or tough because you’re able to work like a jack ass without taking commensurate rest, you’re just foolish. Sooner or later one’s body will tell one that. Don’t let that be you.

Back to being rich or not rich. I will add this. In countries where leaders lead and don’t rule; where leaders respect the rights

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Dapo Akande

of the people to aspire to a good life; where the social contract is clear about what the people should expect of their government and what the government should in turn expect of their people that will enable them (government) fulfil their obligations, you don’t even have to be rich to own your own house. Lee Kuan Yew read his people well and concluded that a people opportune to live in their own houses will be more patriotic and will fervently protect the stability of their society because they have too much to lose.

Acutely conscious of their tangible stake in it they’ll never watch it burn.

All we need to enjoy all the above is good governance and that can only be the fall out of having leaders that care. To our most recent fallen heroes, may you rest in peace, in the knowledge that your ultimate sacrifice shall not be in vain. A grateful and mournful nation acknowledges you and says thank you.

Changing the nation...one mind at a time.

Akande is a graduate of the University of Surrey, UK, author of the acclaimed book: “The last fight: A personal journey to discovering values.” Contact: dapsakande25@gmail.com

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A near-death experience and my Nigerian epiphany

David Hundeyin

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wo Sundays ago, I stood on the tarmac at the Nnamdi Azikiwe Airport in Abuja trying to do a WhatsApp video call with my friend William Ukpe. Having just arrived from Lagos to march alongside him during the #EndSARS Abuja protest, I was eager to announce my arrival to my friends and colleagues in Abuja. I had been at the Lekki Toll Gate protest in Lagos, and it was somewhat pedestrian in comparison.

Scrolling through my Twitter feed the night before and seeing the worst of the Nigeria Police Force meting out violence against the likes of Ndi Kato, William and Aisha Yesufu inspired me to buy a return ticket to Abuja on the spot. Abuja was where my people were being bullied, and I would stand with them. In quick succession I called them up one after the other: William, Samuel, Dare, Ndi - “I am here! Let’s show these people that we are not afraid to demand for our rights!”

A few hours later, standing amid the large protest crowd at Maitama roundabout alongside William and Kevwe while chatting with Aisha, news came through on our Twitter feeds - SARS had been ‘scrapped.’

Tempering our celebrations with apprehension of the Nigerian government’s legendary duplicity, we all decided to stage a peaceful march to the police force headquarters. Marching arm-in-arm with my brothers and

sisters singing resistance songs, I had never felt so free, so proud, so confident in all the life choices that had led me up to that point.

I looked to my left and to my right, and I saw leaders. I saw people with value. I saw greatness. At that moment, we were no longer Kevwe the doctor, William the analyst and David the journalist. We were Nigerians in the most noble and respectable sense of the word. Not even being subsequently hosed by a water cannon in addition to getting an eyeful of teargas and a backside of angry police horse whip was enough to dull my conviction. Nigeria’s youth had finally risen up to challenge oppression in a noble, visible and coordinated manner. Best of all, I got to see it and be at the epicentre of history in the making. It was a lifetime Kodak moment for me.

A near death experience above Lagos A little over 24 hours later, I was in my customary window seat as the Air Peace Boeing 737 made its descent into Lagos on my return flight.

Without warning, the plane suddenly started to drop like a stone. I could barely hear the screams of the other passengers over my own as I suddenly contemplated my completely unexpected and yet manifestly imminent death. It was all over and I was really going to die. Like this. Aboard a flight from Abuja. Where I went to attend a protest. Even though I didn’t have to. When I could have stayed on Terra Firma in Lagos.

After 30 years of some of the unlikeliest experiences a human born in this part of the world can amass, I was finally going to die. Not quite as a regretful nobody, but also nowhere near where I would have wanted to be when my time came. I thought about my friends in Abuja getting the news that David died in a plane crash on his way back home after going out

there specifically to get tear gassed, shot at and horsewhipped alongside them. How awful would it feel to be in their shoes? I thought about my aunt and my cousins, perennially worried about my safety and always looking out for me. What an awful way to go out on them.

I thought about my late dad.

Would he be happy to be reunited with me, or would he be sad that I never got to live out even half of the 66 years he managed on earth? A thousand and one thoughts crashed through my mind at the same time as I gripped my seat and prepared to die as we plummeted toward the ground.

Suddenly the stall ended as the pilot managed to pull the plane level again. From the window, I could see the wings responding to the pilot’s yoke as the plane struggled to stay level. From my limited aeronautical exposure back in 2014 when I qualified for a helicopter cadet program and almost became a pilot, I knew that we had just survived wind shear while descending through a fierce rainstorm, which is every pilot’s nightmare.

As the lights of Lagos came into view and I slowly accepted that imminent death had been postponed to another day, I realised something that is relevant to our post-Lekki Massacre reality. I realised that even at that point, I regretted nothing. Even at the point of death while thinking at the ungodly speed that only a dying person can, I did not regret going out to Abuja to stand with my friends. I would rather not have died, but even if I had, it would have been OK. I regret nothing In the aftermath of the Lekki Massacre, a friend whom I left in the UK when I returned to Nigeria in 2013 asked me, “Do you regret moving back to Nigeria? Do you wish you had done things differently?” I did not give a direct answer because I was

‘

There was no place for a person like me who could not bend into what that society wanted me to be. Hence after a while, the only logical option was to return home and assume my full, unapologetic humanity here

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng David Hundeyin is a writer, travel addict and journalist majoring in politics, tech and finance.

He tweets @DavidHundeyin.

Principled entrepreneurship and the essential role of reward in business

S

ignal the right value in your business and you will attract the right audience.

There are people who will not only buy on price.”- Andreas Widmer Andreas Widmer, who is an entrepreneur, author and philanthropist, spoke at the LBS-CKRLE conference titled “Principled Entrepreneurship and the Essential Role of Reward in Business.”

From his presentation, many ideas were communicated and seen as valuable. One of the things that struck me was his simplicity and openness in talking about the effect of his religious beliefs on his success as a business man and a person as a whole. He has been in business for over thirty years and a question he always asks himself is “how my business decisions should be influenced by my faith in God or Catholicity?”

In running a business, there is always an aim or a goal and something he asked us to bear in mind is the ‘Why’ behind the decisions we make in business and what they are supposed to lead to or what we are trying to achieve. In 1990, while working as a business strategist, He was approached by a company who wanted to revive a city’s economy in Jamaica by making small rum bottles available at a cheap price since they might not be able to afford the normal sized rum at the normal price.

Andreas however, asked himself if rum is what the people really needed? Or if rum is the best product to do this project with? Another innovation he was approached with was a speech recognition software like Alexa. He saw this as good because those who could not physically type for whatever reason, now had a means. The downside however, was that these machines always listen “…

and respond when commanded, which means that they can carry out unprecedented surveillance across the world. He was also approached to get involved in a business idea of gene prediction.

This is a technology that allows you to know if having a child with a particular partner might result in the child having a genetic disease. The promise was that it would reduce the amount of diseases in the world, but it would also give unprecedented power over existence and shape our attitudes towards people who have diseases or disabilities or human life and sexuality. He didn’t accept any of these jobs because he didn’t believe in the value in them. This doesn’t mean that these projects didn’t go through, they did. He however stood by his beliefs and conscience and made a business decision not to partake in these projects.

Our actions need to be probed by a repeated ‘why’ like children ask. According to Andreas, businesses nowadays ask ‘what?’ instead of ‘why?’ We need to ask why we do what we do.

We should not primarily work or innovate for money; there should be other driving reasons.

A true entrepreneur does not start a business simply to make money as there are much easier ways to make money. From his experience, these businesses are started to provide a solution to a problem, to satisfy a demand perceived or provide a fixed link in a process. Business is inherently OTHER-DIRECTED. It asks how I may help you.

When running a business, we are called to give everybody the opportunity to flourish towards their ultimate destiny. For Andreas, this ultimate destiny is Heaven. To him, this is the great and ultimate why of business. His focus is on the hu-

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man person for the Glory of God. Business is made for man and not man for business. We all have a hungry heart and the fulfillment of this hunger is happiness. So, we need to ask, what does my heart need? As human beings, we tend to Worth-ship one thing out of these major five-pleasures, power, God, honour and money. For Andreas, his worth-ship’s God and that is his main altar. Unlike God, the other four altars are a kind of slavery because that is what you live for and when the thrill dies down, which happens quickly, you have to go back to prove yourself all over again. This is not happiness but a ‘contingent transient pleasure.’ Faith filled entrepreneurs are called to worship at the altar of God and it shows in how their companies run.

He created an alternate CSR that he applies to his business. CSR stands for a business that Creates, Supports and Rewards. A business is to create goods that are truly good and provide services that truly serve. To support human flourishing by pursuing human excellence and support its employees by using their excellence to create.

To reward participants physically, emotionally, spiritually and financially through good profit.

What you do and what you have does not make you human. Being human establishes your dignity and human dignity is never a means to an end.

The questions we should ask ourselves as entrepreneurs are - Do I promote the dignity of my employees in the tasks that I ask them to do? Is it just? Do I let the employees make their own decisions or do I force them? Does my work environment and policies promote the common good? The common good according to Andreas

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actually not sure. Did I regret walking out on the comfortable, low-drama, unspectacular life I might have had in Leeds or Manchester, and returning to Nigeria in March 2013? Has the measure of self actualisation I have experienced in Nigeria been worth the emotional and psychological damage it may have inflicted in return?

I left the UK and returned to Nigeria not just because I was seduced by the ‘Africa Rising’ story, but also because I found the prospect of living out the rest of my life as a constantly embattled, nuance-free entity called “Black Man” totally unacceptable. I hated the fact that I had to change the pitch of my voice when I was talking to people if I did not want them to react to me in certain ways. I hated the fact that I constantly performed a pitch-perfect Yorkshire accent even though I was born and raised in Lagos, just to avoid being treated in certain ways.

I absolutely hated the constant reminder that my existence was an irritation to everyone from random people on the street to colleagues at work who were not at all familiar with the idea that a “Black Man” could be intellectually superior, higher achieving, and not afraid to own it publicly.

In that society, a “Black Man” with an ego only belonged in sports or entertainment - not at KPMG for example.

There was no place for a person like me who could not bend into what that society wanted me to be. Hence after a while, the only logical option was to return home and assume my full, unapologetic humanity here.

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Ekene Okafor is the social conditions that allow people to reach their full human potential and realise their human dignity. Do the rewards I create go beyond the material rewards? Are they adequate to their contributions, risks and the dignity of everyone involved? Rewards don’t have to be financial or public praises. It can be granting decision making rights, more training, allowing people to work on projects that interest them. And so on.

For Andreas, he looks at his decisions as saying yes rather than no. when he says no, he is saying yes to something more important to him, “we say no to profit all the time, we make moral decisions every day. I just ask that we be consistent in them.

If we act because the law says so, then we make the law our morality and that is an abdication of personal morality. That is treating morality as a limitation to our freedom rather than a liberation of our potential. In the long run, true happiness eludes such choices.”

At the end of the seminar, he referenced two great people. According to Fulton Sheen, “work done for the love of God makes a man happier and gives him an inner peace the world cannot take away.” These are ways of thinking and not a list of dos and don’ts. Saint Pope John Paul II said, “You have to decide, I cannot want for you, you get to decide.”

Okafor, an undergraduate at the Faculty of Law, University of Lagos and Volunteer at Christopher Kolade Centre for Research in Leadership and Ethics, Lagos Business School. Ekene Okafor can be reached at ekeneokafor18@yahoo.com

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Wednesday 28 October 2020

BUSINESS DAY

Editorial

Buhari and EndSARS Protest: The road not taken

Publisher/Editor-in-chief

Frank Aigbogun editor Patrick Atuanya

DEPUTY EDITORS John Osadolor, Abuja Lolade Akinmurele NEWS EDITOR Osa Victor Obayagbona NEWS EDITOR (Online) Chuks Oluigbo MANAGING DIRECTOR Dr. Ogho Okiti EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha ADVERT MANAGER Ijeoma Ude MANAGER, CONFERENCES & EVENTS Obiora Onyeaso BUSINESS DEVELOPMENT MANAGER (South East, South South) Patrick Ijegbai COPY SALES MANAGER Florence Kadiri DIGITAL SALES MANAGER Linda Ochugbua GM, BUSINESS DEVELOPMENT (North)

Bashir Ibrahim Hassan

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

I

Accelerate action on economic reforms, rejig nation’s security architecture

f President Muhammadu Buhari had expected his nationwide broadcast last week to receive national acclaim, he made a big mistake. In place of commendation, he and, indeed, the federal government got condemnation.

The lack-lustre pronouncements in the president’s speech have made the economy bleed with properties worth millions of Naira destroyed in addition to loss of lives.

Nigerians have witnessed killings, massive looting and wanton destruction of properties across the country.

From Kano, to Lagos, Imo, Osun, Ondo, Ogun, Cross River, Akwa Ibom, Rivers, Abia, Abuja, Plateau, Kaduna, and other states, the story is the same. By the last count, more than 20 police stations and several public and private buildings have been destroyed. To checkmate the youths’ protests, about 18 state governments imposed 24-hour curfew in their states. But that did not quell the situation. The youths are still angry.

The anger, arguably, stemmed from the disappointment they got from Buhari’s speech and more from the killing of peaceful protesters at the Lekki Tollgate. There had been peaceful protests by Nigerian youths against police extortion, brutality and other criminal acts against innocent Nigerians by security agents.

The President’s speech was, therefore, expected to address frontally the issues at stake, douse tension and assure Nigerians of the readiness of his administration to right the wrongs.

Unfortunately, the speech did not do that, but rather inflamed the overcharged atmosphere.

It failed to address the key issue which was the Lekki Tollgate massacre, the very development that sparked off the protest across the nation and consequent demand for a presidential address.

Eye witness accounts have it that Nigerian soldiers fired into a crowd of peaceful, unarmed protesters who had remained at the toll gate following a hastily announced curfew. The shooting resulted in several injuries that allegedly left many dead.

The president’s decision to completely omit the Lekki shootings from his speech was in line with the army’s official stance of denial despite instances of video footage which contradicts the army’s claim.

Nigerians say Buhari’s speech was uninspiring, dictatorial and insensitive to the mood of the nation and we can’t agree more. The president addressed Nigerians with zero empathy.

It is saddening that what should have been an opportunity to unify the country and, more significantly, empathise with grieving families, proved to be anything but a keeping with his long-running style as a former military dictator. To say the least, Buhari’s speech came off high-handed

and tough.

Before his address, expectations from local and international audiences was that the President would reassure Nigerians, especially the youths, by forcefully condemning the killing and brutalisation of our young ones, and announcing an accelerated independent inquiry into the circumstances surrounding the gruesome acts.

It was also expected that the president would set a clear pathway for the much-needed overhaul of the country’s security system. If done, that would have ushered in the much desired national healing, peace, unity and stability of a nation anchored on such show of concern and commitment by leaders.

Surprisingly, President Buhari’s speech came with a demand—and a thinly veiled threat—for protesters to call off street demonstrations which have seen thousands gather at different locations across the country while using digital tools to drive and sustain momentum.

In some ways, however, that Buhari gave a speech was a novelty in itself. Through his six years in office, Nigerians have mainly heard from the president during national holidays or through interviews granted to foreign media. So, Nigerians expected little from the speech in the first place.

After a successful presidential campaign in 2015 that aimed at endearing the president to younger Nigerians, his administration has been criticised for being out-of-touch with and tone-deaf

to an increasingly important youth demography.

We agree with those who hold the view that, as father of the nation, Buhari should take further steps to realign with the expectations of Nigerians and reassure the nation that he is indeed in charge by immediately setting up an independent inquiry into the killings with a view to prosecuting and bringing the perpetrators to account.

This is in addition to an inquiry into videos and reports that unscrupulous security operatives mobilised thugs to attack peaceful protesters and unleash violence on innocent Nigerians. In the same vein, those behind shameful acts that escalated sectional hostilities and pitched citizens against one another should be brought to book.

We advise that time is now for Buhari to rejig the nation’s security architecture by replacing his service chiefs with more competent and professional hands to assist in effectively handling the security challenges confronting the nation.

He should also take steps to accelerate action on his economic reforms so as to provide ample opportunities for the youths to gainfully participate in productive sectors and ameliorate the hardship, hunger and frustration in the land.

History beckons on this administration to ensure that the unity, stability, peaceful co-existence and general wellbeing of citizens are not compromised.

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

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Wednesday 28 October 2020

BUSINESS DAY

MARITIMEBUSINESS Shipping

Logistics

Maritime e-Commerce

#ENDSARS: Demurrage, storage charges pile up for importers over operational disruption at ports

…Cargo owners seek exemptions amaka Anagor-Ewuzie

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ollowing the disruption of business activities at the nation’s seaports in Lagos, Apapa and Tin-Can ports, for close to one week over the ENDSARS protest by Nigerian youths, demurrage and storage charges have piled up on goods trapped at the ports within that period.

According to port users, shipping companies and terminal operators have started imposing these charges on cargoes trapped at the ports since on Tuesday last week when cargo evacuation from the ports to importers’ warehouses became impossible due to the unrest in the country.

In a letter titled ‘Appeal to all Shipping Lines/ Terminal Operators not to Charge Demurrage/Storage during this ENDSARS Lockdown Period’, and addressed to the managing director of Maersk Line Nigeria Limited signed by Ibrahim Tanko, national co-

ordinator, 100 percent Compliance Team of the National Association of Government Approved Freight Forwarders (NAGAFF), warned that any effort to impose demurrage and storage charges on trapped goods inside the ports will be resisted vehemently.

“Following the ENDSARS protest by Nigerian youths,

which lasted for more than a week; the NAGAFF 100 percent Compliance Team wishes to appeal to shipping companies and terminal operators in Lagos not to charge demurrage or storage fees on cargoes trapped inside the ports, said the letter, which was issued over the weekend.

Tanko stated that it has

come to their knowledge that some shipping companies and terminal operators have already started charging storage and demurrage for the period of ENDSARS protest by Nigerian youths without recourse to consideration like safety of lives and properties.

“First consideration during crisis period is secu-

rity of lives and properties.

It is most unfortunate to note that otherwise is the case here and we want to say a ‘BIG NO’ to that. We had expected shipping companies and terminal operators to show some sense of concern, love, solidarity and pity to Nigerians and those importers who have lost their loved ones or properties in this struggle to put Nigeria on the track of good governance,” he noted.

He however noted that that NAGAFF 100 percent Compliance Team will not fold it’s hands and watch its members exploited for no fault of theirs, adding that they will resist such attempt.

“We will mobilise in most civil manner, other associations, truck owners, clearing agents and port users in a placard carrying protest against this impunity and block the ports access gates and entrances until our demands are met. We therefore call on the shipping companies and terminal operators

to refund the fees to those who have already paid with immediate effect,” Tanko further said.

Kayode Farinto, vice president of the Association of Nigerian Licensed Customs Agents (ANLCA), said he expected the shipping companies and terminal operators not to collect demurrage and storage charges on cargoes trapped inside the port due to last week unrest.

“The protest led to breakdown of law and order, and the Lagos State Government had to impose a movement restriction, so under such circumstances, nobody could come to the port to clear cargo. Even the ports were shut down. If the Nigerian Ports Authority (NPA) head office in Marina can be torched by hoodlums, then we expect the shipping companies and terminal operators to understand what happened,” he said.

“We are going to write the NPA on this, because we won’t pay for what we didn’t cause,” he added.

Terminal operators condemn burning of NPA building by hoodlums

FG pledges support for SIFAX’s new container terminal at Ijora

..Call for protection of nation’s seaports

amaka Anagor-Ewuzie

amaka Anagor-Ewuzie

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i c k y Ha a s t r u p, chairman, Seaport Terminal Operators Association of Nigeria (STOAN), has condemned the looting and burning of the head office of the Nigerian Ports Authority (NPA).

Haastrup also conveyed the sympathy of all STOAN members to the board, management and staff of the Authority over the incident.

The NPA building, located on Marina Street, Lagos, was torched by arsonists, suspected to be hoodlums, on Tuesday.

The hoodlums also set many official and private vehicles parked within the vast NPA premises on fire.

“Setting a national asset like the NPA headquarters building, which belongs to all Nigerians, on fire is an ignoble action. We urge the government to bring the perpetrators of this evil act to justice. These are trying

times for the country and it is the responsibility of all Nigerians to protect, not destroy, critical national infrastructure,” said Haastrup.

The STOAN Chairman said that while it is within the rights of the youth and other Nigerians to express their grievances through protests, such expressions must be done in a non-violent manner and must also be carried out within the ambits of the law.

According to her, it was unfortunate that hoodlums hijacked the other wise peaceful #ENDSARS protest that received global commendation for its campaign against police brutality in the country.

“Those who destroyed the NPA building, public assets and private businesses, cannot, by any stretch of the imagination, be termed #ENDSARS protesters. They are criminal elements who decided to hide under the guise of an otherwise noble cause, to steal and destroy public property. This must not be condoned by any www.businessday.ng

means and we do hope that the relevant security arms of government will secure what is left of the NPA building and other national assets across the country to prevent another round of destruction,” she said.

She however called for an investigation into the incident to unravel the perpetrators. She also asked government to beef up security at all the seaports in various parts of the country, while protecting port workers against attacks.

Vicky Haastrup

“The seaports are critical to the economic well being of Nigeria and Nigerians.

Port workers are also essential service workers. So, I wish to use this opportunity to urge governments at all levels to ensure that hoodlums are not allowed to gain access into the port or launch attacks on pork workers. The country cannot afford prolonged interruption of port operations after severe interruptions of services at the Apapa, Tin-Can and Onne Ports over the past few days,” she said.

Noting that trucks have been unable to go in and out of the port and many perishable items are already rotting away, Haastrup urged government to make it possible for port workers to return to work immediately in order to minimise the impact of prolonged closures.

She also expressed deep sorrow over the loss of lives, and prayed God to comfort the families of those whose lives were lost in various parts of the country.

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T

he Federal Government has promised to support the vision of the newly-opened terminal in Lagos by SIFAX Group.

SIFAX Container Terminal located at Ijora, Lagos was established to address the challenges of traffic congestion around the Lagos ports.

Its vantage position, which is on the fringes of the port environment, will allow it to receive consignments from both Apapa and Tin-Can Island ports through barges, without the complications of traffic congestion that has adversely affected businesses and port activities.

Speaking during the assessment visit of the Ministry of Transportation’s Ministerial Implementation Committee to the new terminal in Lagos, Auwalu Suleiman, leader of the delegation and director, Maritime Services, Federal Ministry of Transportation, expressed the committee’s satisfaction with the facilities provided He lauded the company for the huge vision it has set for the inland container depot.

“We are here at the instance of the Minister of Transporta@Businessdayng

tion to inspect the terminal and make sure that it conforms to all the relevant requirements stipulated by law in setting up an inland container terminal.

So far, we are impressed with the standards you have set in terms of space, equipment, facilities, your vision and future plan,” he said.

He said: “It is also our intention to recommend to the government that this terminal should be adopted as a model for all future off docks that would be sited in Nigeria. We have compiled all your needs, complaints and they will be forwarded to all the relevant authorities for proper and immediate action.”

Earlier, Taiwo Afolabi, Group Executive Vice Chairman, SIFAX Group, who was represented by Ibraheem Olugbade, executive director, SIFAX Off Dock, informed the government officials that the terminal’s concept and design were in line with existing SIFAX Group business plan of continuous expansion, proffering solutions, growing improvements in the maritime sector and the logistics value chain, meeting customers’ expectations and complying with government’s regulations.

Wednesday 28 October 2020

BUSINESS DAY

AGRIBUSINESS

15

In association with

ag@businessdayonline.com

Agric research: Weak link in Nigeria’s food security quest Josephine Okojie

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i g e r i a smallholder farmers have continued to lag behind its peers’ in terms of yield per hectare owing to the inability of the agricultural research institutes to provide the needed technologies to boost productivity.

Agricultural research institutes have continued to be the weak link in Nigeria’s drive to diversify the economy through the sector and make exponential gains by way of earnings, employment and other spinoffs.

The research institutes across the countr y are however falling grossly short in providing the technologies that would drive growth in the sector and are lagging behind smaller peer nations, where agriculture is less of a priority.

Experts have attributed this to poor funding. They identify poor res earch funding as the major challenge among others limiting the institutes to

provide vital research that would impact far mers’ productivity.

T h e i n s t i t u t e s w e re established by the Federal Government in is efforts to increase agricultural productivity, improve the lives of rural communities and make Nigeria sufficient in food production.

The institutes where

mandated to provide technologies that w i l l i n c re a s e f a r m e r s’ productivity and boost food production through the science of research.

But today, the dream has become dead, the vision blurred and the mission a mere statement of expression as majority of the institutes are mere shadow

of themselves. “ We have a t o t a l o f 13,000,000 staffs and 90 percent of the yearly allocation goes into salaries and emoluments. Only 10 percent goes into research.

This is why the institutes have not be en able to improve farmers output,” B a b a Yu s u f Ab u b a k a r, former executive secretary

of the Nigerian Agricultural Research Council (ARCN) told BusinessDay. “We cannot conduct effective research which such stipends. Research plays a pivotal role in transforming the agricultural sector and that is why we must take it very seriously,” Abubakar advised.

Data obtained from the budgetary allocation to the agricultural ministry shows that the research institutions got an average of N28 billion yearly ($78 million) in the last five years.

Comparing Nigeria’s annual spend on its agric research institutes with that of India’s $2 billion, Brazil’s $1 billion and China’s $700 million, shows that research is still grossly underfunded in the country.

Michael Oluwole Ajala, professor of Seed Te c h n o l o g y , F e d e r a l University of Agriculture Abeokuta (FUNAAB) said the agric research institutions in the country are underfunded and lack basic facilities needed to conduct research.

Ajala stated that most of the equipment’s are obsolete and cannot be used for

modern research work.

Similarly, a 2015 ActionAid report, states that for every $100 of agricultural output, Nigeria invests only $0.42 into agricultural research, as compared to $0.94 and $1.40 in Ghana and Uganda respectively.

Despite the country’s large size of agriculture in relation to other African nations, Nigeria lags behind its peers in the sector in terms of research funding.

Nigeria has the highest agricultural research system in Sub-Saharan Africa though, in terms of investments and number of researchers, with over 80 government and high education institutes and over 2,000 researchers engaged in research.

In view of this shortfall, experts emphasise on the need for government to increase its investments in research, if truly it hopes to revive the sector.

They also underscore the need for private-sector participation in the funding and delivery of agricultural extension services so as to meet the needs of the farmers.

TechnoServe urges SMEs to adopt Micronutrient Fortification Index model to self-regulate Josephine Okojie

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n a bid to scale p r o c e s s o r s ’ compliance levels in food fortification, TechnoServe Nigeria has urged operators of small and medium-scale enterprises (SMEs) in the food industry to adopt the Micronutrient Fortification Index (MFI) model to self-regulate.

The MFI, a selfassessment driven approach, has been developed in conjunction with industry partners and the support of the Bill & Melinda Gates Foundation.

It serves as an innovative mechanism to suppor t the food industry in selfregulating the improvement of fortification compliance, alongside the existing regulatory regime.

“The MFI is a proactive measure to increase food fortification compliance in the country,” Ike IIegbune, Te c h n o S e r v e ’s l e a d consultant for MFI, said during a presentation at the Nigerian Institute of Food Science and Technology (NIFST) 44th annual conference.

Ilegbune said that the MFI helps in derisking companies’ exposure to failures in maintaining both regulatory and best-practice standards in fortification compliance as well as overall quality management, adding that it helps businesses integrate effectiveness from strategic governance, to production and to consumer satisfaction.

He described the index as being made up of three important components which include the selfassessment tools, industry intelligence, and periodic independent testing.

“The self-assessment tool enables internal benchmarking by participant companies, enabling them to measure and report internally on the efficiency and effectiveness their people, processes, p a r t n e r s h i p s, a n d t h e entire strategic governance framework that holds them in place”, he said.

“The periodic independent product testing uses established protocols to select products and test for product compliance with fortification standards,” he added. www.businessday.ng

According to IIegbune, the model adopted for TechnoSer ve’s MFI has worked successfully in o t h e r a re a s, i n c l u d i ng c o r p o rat e g ov e r na n c e, noting that he would like to see companies reporting on MFI in their annual reports and communicating incremental improvements to key stakeholders. “ We a re c u r re nt l y involved in the consolidation

of the MFI and we want to see a gradual movement to sustainability,” he said. “By 2024, we hope to able to see a self-sustaining MFI system”.

Speaking shortly after, Larry Umunna, TechnoServe’s regional director for West Africa said that the firm is deeply honoured to be a partner of NIFST. TechnoSer ve Nigeria through its Strengthening African Processors of

Fortified Foods (SAPFF) initiative is increasing the compliance of processors in fortification of their products with essential micronutrients by understanding their challenges and helping them in closing the gaps.

He pointed out that the SAPFF project has provided customised assistance to the flour mills, edible oil, and sugar processing operators over the last three and a half

Oluwole Toye, president, NIFST and Larry Umunna, regional director – West Africa, TechnoServe during the Nigerian Institute of Food Science and Technology (NIFST) 44th annual conference held in Lagos recently. https://www.facebook.com/businessdayng

@Businessdayng

years, with the MFI being the latest in its proactive initiatives to achieve its program objectives.

He noted that the SAPFF project has worked with several major food vehicle processors, accounting for a significant increase in fortification compliance from 50 to 75percent in that period, with a target to get to 90percent at the end of the project.

He stressed that the p r o j e c t ’s s u c c e s s w a s based on the commitment of industry CEOs who are tasked with ensuring their companies’ compliance with Nigeria’s food fortification regulations for the health and economic benefits of its citizenry.

“The COVID-19 pandemic has made it compulsory for businesses to rethink their processes while adjusting to the new normal, he stated.

“The MFI, therefore, presents an opportunity for participants to augment re gu lato r y c o mp l ia n c e efforts and to build sustainability and resilience into their business models, something we encourage SMEs to adopt,” he added.

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Wednesday 28 October 2020

BUSINESS DAY

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Wednesday 28 October 2020

BUSINESS DAY

17

FINANCIAL INCLUSION

& INNOVATION

How Nigeria can deepen farmers’ bank account usage …as 2% currently receive payment through formal channels Endurance Okafor

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hile Nigeria’s agriculture sector contributes about 23percent to the countr y’s Gross Domestic Product (GDP) and employs over 50 percent of the country’s working population only about 2 percent of the farmers receive payment through a formal bank account.

This lack of access to formal financial services has severe financial implications for Nigerian farmers.

Limited access to financial services makes it more difficult for them to take advantage of business opportunities, invest and save for the future, and insure against risks.

To analyze this issue, the World Bank recently released the report ‘Digitization of Agribusiness Payments in Africa: Building a Ramp for Farmers’ Financial Inclusion and Participation in a Digital Economy.

The report argues that digitization of agribusiness payments can help advance financial inclusion of farmers.

“When faced with a bad harvest or significant livestock loss, farmers bear the entire financial risk of such a loss since they lack access to financial tools that could help them manage these risks,” the report explained, adding that reliance on informal providers can be quite costly and risky, “not only putting the safety of savings at risk but also limiting access to credit and insurance.”

According to the Washingtonbased institution digitization of payments by agribusinesses to farmers can act as the ramp to broader

financial inclusion and better use of these accounts.

It defined digitization of payments to mean a payment being made electronically into a “transaction account.”

Access to mobile money accounts seems to be a key driver of the levels of digitization of agricultural payments. Data by the World Bank shows that among the countries with the largest share of adults receiving agricultural payments into an account, most receive the payment into a mobile money account.

In Kenya and Ghana, 37 percent of agricultural-payment recipients receive payments into a mobile money account. In Uganda and Zambia, 28 percent and 27 percent, respectively, receive such payments into a mobile money account.

These countries are also among

those with the highest uptake of mobile money: the share of adults with a mobile money account is 73 percent in Kenya, 51 percent in Uganda, 39 percent in Ghana, and 28 percent in Zambia.

Meanwhile, a national survey of smallholder households in Mozambique, Uganda, Tanzania, Côte d’Ivoire, Nigeria, and Bangladesh by the Consultative Group to Assist the Poor (CGAP) find that the proportion receiving payment into an account is less than 2 percent, study shows that there is a consensus on the linkages between financial inclusion, inclusive growth, and poverty reduction and thus financial inclusion of farmers is critical for agriculture-sector growth but most farmers in a country like Nigeria still do not have access to formal financial services.

Lack of trust, high cost of account maintenance, distance to the access point are some of the barriers to financial inclusion of farmers in Africa.

Most rely on saving in kind or cash at home or depending on family and friends or informal service providers such as savings groups, savings collectors, and money lenders.

On how a country like Nigeria can include more of its farmers into the formal financial sector, the World Bank said: “Governments should strengthen the foundations of their national digital economy and the enabling environments for agritech, fintech, and e-commerce.”

The World Bank also added that the actions are critical since improvements in these areas make it more feasible for agribusinesses to digitize their payments to farmers and increase farmers’ ability to use

digital payments.

Speaking to the importance of financial inclusion for farmers, the report by the World Bank explained that the transaction history that farmers accumulate can provide a basis for formal financial service providers to assess creditworthiness, opening an avenue to formal credit, insurance, and savings products that equip them to deal with income shocks and smooth consumption, thus improving overall well-being.

According to 2017 Global Findex, 13 percent of account owners globally reported having opened their first account to receive private-sector wages, government payments, or payments for the sale of agricultural goods. About 20 percent farmers in sub-Saharan Africa reported having opened their first account to receive an agricultural payment.

Administered to 45 firms, and 29 agribusiness respondents the survey by the World Bank included 16 firms that operate globally or regionally and have operations in several African countries and 13 firms that operate at a national level, the result of the survey by the World Bank recommends key actions that can help accelerate digitization.

The report also recommended that governments should take targeted actions to strengthen the rural DFS ecosystem: Targeted actions are needed to strengthen the rural DFS ecosystem since rural areas face specific challenges related to their geography. “These include actions to increase the density of CICO (cash-in-cash-out) agents in rural areas and increase the opportunity for rural residents to use e-money.

FirstBank deepens financial inclusion drive, disburses N17bn loans through FirstAdvance Endurance Okafor

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ustomers of First of Bank Nigeria Ltd have been able to access over N17billion worth of loans through the bank’s FirstAdvance, a digital lending solution, as compiled from the tier-one bank.

According to the lender, FirstAdvance is designed to offer convenient and easy access to cash for salary earners whose accounts are domiciled with FirstBank and have

received regular salaries for two months, before the loan request.

In barely a year since the launch of FirstAdvance, over 128,000 unique customers in over 782,996 successful transactions have so far benefitted from loans.

Meanwhile, the World Bank believes financial inclusion does not only end with having access to financial services but being able to access credit. Data by EFInA shows about 40 million Nigerians are outside the formal financial system, a

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barrier that is constraining many from accessing loans.

Explaining how FirstAdvance works, FirstBank said: “Processing a loan with FirstAdvance is implemented in less than a minute and it is accessed in two ways, the USSD code; *894*11# or the Bank’s recently upgraded mobile banking application, FirstMobile”.

Further to its pursuit of providing options to Nigerians across all income bands, FirstBank also offers Personal Loan Against Salary

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(PLAS) to individuals in paid employment who need long term loan to meet their financial obligation more especially as the economy returns to normalcy post-COVID-19 pandemic and as schools resume.

FirstBank’s Personal Loan guarantees a convenient repayment plan of up to 60 months.

According to Gbenga Shobo, FirstBank’s Deputy Managing Director, meeting the needs of “our customers have always been our priority and we are delighted with the volume of loans

@Businessdayng

disbursed to Nigerians as it reinforces the confidence of Nigerian workers in FirstAdvance, our digital lending solution and also our long-term offerings through Personal Loans for people in paid employment.”

The deputy MD explained that the bank is excited that its FirstAdvance has been added to the channels through which the bank is “deepening financial inclusion as it is no doubt an expansion of our commitment and support to every household in the country”.

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Wednesday 28 October 2020

BUSINESS DAY

insurance today

E-mail: insurancetoday@businessdayonline.com

‘Robust risk management key in driving foreign investments in Covid-19 era’ Modestus Anaesoronye

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o sustain Foreign Investments (FIs) into national and regional economies that have been impacted negatively since the Covid-19 pandemic era, robust risk management plan has been recommended.

Ken Aghoghovbia, deputy managing director/ COO, Africa Reinsurance Corporation (Africa Re) made the recommendation at the Annual Investment Meeting (Digital 2020 Conference) held in Dubai.

Aghoghovbia in his presentation titled ‘Re-insuring Investment During and Post Covid-19’ said many countries have achieved accelerated economic development with a boost from foreign investments.

He noted that sadly, the contribution of these investments to national and regional economies have been adversely impacted by the Covid-19 Pandemic, resulting in massive unemployment, a significant drop in GDP growth

Ken Aghoghovbia

rates and a generally reduced level of economic activity.

Aghoghovbia pointed that, at times like these all parties must come out with a robust risk management plan, which basically involves identifying all the risks associated with an investment and making a decision on how to mitigate them.

“The plan could be to avoid, accept, limit or transfer the risks.”

He stressed that Insurance and Reinsurance are risk transfer mechanisms that helps an investor transfer all the risk identified in executing a project to the insurer, who in turn transfers all or part of the risks assumed to the reinsurer, thereby enabling the risk managers to fully de-risk investments.

According to him, since the outbreak of Covid-19, insurers and reinsurers have

been actively playing their risk mitigation role in settling the pandemic related claims, estimated to eventually reach $100 billion.

“Insurance and reinsurers are also providing new covers for emerging risks to help businesses and economies recover. In order to boost passengers’ confidence in flying at this time insurance policies have been provided for airlines to cover passengers Covid-19 related expenses. Similarly, some countries, like the Dominican Republic, in pursuit of a tourism recovery plan, are now offering free travel insurance covers to foreign visitors.”

“With appropriate reinsurance policies, uncertainty is taken out of all phases in the execution of projects and even the heightened cyber risks concerns can adequately be mitigated, Aghoghovbia noted.

He however assured that Africa Re is ready to design for you, viable risk transfer solutions capable of withstanding all risk scenarios and creating a more resilient business landscape across borders.

#EndSARS Protest: CHI assures customers of paying their claims Modestus Anaesoronye

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he Consolidated Hallmark Insurance (CHI) Plc has assured its customers and policyholders whose policies cover Strike, Riot and Civil Commotion (SRCC) extensions, that their claims will be paid.

The company, who stated this in a mail sent to all its policyholders and stakeholders across the country, noted that, such claims, like all others, would be expeditiously handled to ensure that customers are back in business as quickly as possible.

While calling on the victims of the #EndSARS protests to file their claims through the company’s website and customer care centre, it assured the aggrieved policyholders that they would be attended to passionately.

Commiserating with the victims of the protest, the insurer said: “May God console the families of citizens who have lost their lives and there are certainly glorious days ahead.”

The youths were, for 16 days, embarked on #EndSARS protests along major highways and inner roads across the country to protest against police brutalities and

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abuse of office. The situation heightened last week, as hoodlums hijacked the protests, taking advantage of the 24hrs curfew imposed on the Lagos State by the State governor, Mr. Babajide Sanwo-Olu, between last Tuesday and Friday in Lagos, to vandalise and set ablaze public buildings, police stations, banks branches, Federal Roads Safety Corps(FRSC) offices, among others, while robbing shops, offices and carting away goods worth several billions of Naira in the process.

Similar protests and vandalism were also recorded in Abuja, Ogun, Edo, Anambra, Akwa-Ibom, Cross River, Ekiti, Ondo, Osun, Oyo, among other States in the country.

Meanwhile, the company is running a ‘Safety First’ campaign on radio and television stations in the country.

Currently running on Channels Television, African Magic Showcase and African Magic Urban DSTV Channels, it is equally running on some radio channels across the country. Advert as monitored is being aired on radio during the prime drive time morning peak period of between 7am

to 8am while it is on TV from 8pm to 10pm The campaign, according to a statement from the firm’s spokesperson, Mr. Ben Mamedu, was aimed at sensitising Nigerians on the need to protect their valued assets from life’s uncertainties in view of the lack of awareness and the understanding of the numerous benefits of insurance.

A lot of people, he said, are not aware that getting their valuable assets insured can keep them afloat when the unexpected happens.

“The campaign revolves around the key message of what takes anxiety away through safety of various assets – including Goods while in transit, vehicle insurance, security of investments, accident and medical as well as micro insurance. It takes into consideration, activities of various companies within the Consolidated Hallmark Group –Hallmark HMO, Grand Treasurers Limited, CHI MicroInsurance and the general insurance turf of the parent company – Consolidated Hallmark Insurance Plc,” he pointed out in the statement.

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Lasaco Assurance names Teju Phillips new chairman

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asaco Assurance Plc has announced the appointment of Maria Olateju Phillips as the chairman, Board of Directors with immediate effect.

Teju Phillips takes over from Aderinola Disu, who resigned from the Board, having completed her term as Chairman.

Teju Phillips, a successful Chartered Accountant who holds an ACCA from England and Wales, has professional training in Executive Development Programmes in Harvard (USA), Columbia & Wharton Business Schools and has attended various Management Training Courses both locally and internationally.

Her Articleship as an Accountant was in the globally renowned firm of Peat Marwick Cassleton Elliot & Co. (Firm of Accountants - Ani, Ogunde & Co. KPMG).

She was a Director in Keystone Bank; former Director, Lagos State Lottery Board; Commissioner For Special Duties & Inter-Governmental Relations in Lagos State; She was also the managing director of Alma Beach Estate Limited (a subsidiary of Rims Merchant Bank Limited); managing director, Maridot Ventures Limited. She is a renowned Management/Financial Consultant to many companies and was at a time, the Divisional Commercial Manager of Kingsway

Stores, a division of the United African Company (UAC) of Nigeria Plc. Her other appointments include but not limited to the following: Chairman, Organizing Committee of the Institute of Directors (IoD) Nigeria; Council Member, Bank Directors Association of Nigeria; Board Member, Women In Boardroom; Member, Institute of Chartered Accountants of Nigeria (ICAN) Presidential Committee; Member, ICAN Annual Conference Committee; Member of 100 Eminent Persons Group set up by the Federal Government of Ni-

Teju Phillips

geria for the ‘Nigeria 2010 World Cup Bid’; Board Member, State Primary Education Board, Ogun State; Chairman, Accommodation Committee FIFA 1999, Junior World Cup Championship held in Lagos.

Premium Pension rewards members on Multi-Channel experience Modestus Anaesoronye

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n its strategic plans aimed at enhancing customer service by providing Premium Experience to its esteem Members, Premium Pension has rewarded its Members across the country that emerged as the first to download the Company’s Multichannel Mobile App recently.

Premium Pension recently launched its multi-channel mobile application as part of the revamped technology infrastructure designed to provide Premium Experience to its esteem members.

As an indication of embracing the great milestone achieved by the Company to serve its customers, Mohammed Bello Saidu a member who works with the Federal Medical Centre, Katsina, was among the first to download the App. While Abubakar Saidu a member with National Board for Arabic & Islamic Studies (NBAIS) in Minna Niger State was the first to make use of the referral module to introduce a customer to Pre@Businessdayng

mium Pension Also, Razaq Bashiru Ogundimu from Lagos State, Okey Udeh Augustine, Abia State and Omozogie Bright Irene , Edo State were among the people honored by the Company for being the first to download and register the Premium Pension MultiChannel Mobile App. In their geopolitical zones While congratulating the recipients of the awards, the Umar Sanda Mairami, chief executive officer said the recognition is aimed at encouraging our Members as well as the general public to embrace the Mobile App as a one stop digital shop for retirement planning and services at all times.

He further said that “The Mobile App is designed to revolutionize the pension industry as one of the several touch points designed by the Company to give our Members premium experience. With the App Members can keep track of their retirement savings real time, check account balance and transaction details, and calculate retirement funds with the pension calculator, view fund price and more”.

Wednesday 28 October 2020

BUSINESS DAY

BANKING

19

Share your experience at banks with us via: hope.ashike@businessdayonline.com

For breaching lending requirements CBN debit banks CRR worth N926.4bn Stories by HOPE MOSES-ASHIKE

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he Central Bank of Nigeria (CBN) last week debited banks of Cash Reserve Ratio (CRR) worth N926.4 billion for breach of its lending policy - Loan to Deposit Ratio (LDR).

Zenith Bank Plc, UBA, and Access Plc, led other financial institutions with a total deduction of (N290bn), Plc (N160b), and (N140bn) respectively.

Other banks affected in the CRR deduction include FBN (N95bn), GTB (N55bn), Polaris (N30bn), Keystone (N30bn), Standard Chartered Bank (N24bn), Fidelity (N15bn), FCMB (N11bn), Ecobank (N11bn), Stanbic (N10bn), WEMA (N10bn), Coronation (N3.9bn), Sterling (N8bn), Citi (N6bn), Union (N5bn), Providus (N5bn), RMB (N5bn), FSDH (N1.5bn), NOVA (N1bn) Globus (N3bn), Unity (N7bn), Suntrust (Nil), Heritage (Nil), Titans (Nil), and FBN Quest (Nil).

With this deduction, the Apex bank has debited a total of N1.4 trillion from the banks in one month. On October 9, 2020, the regulator debited banks of CRR worth N462.7 billion for breach of its lending policy.

On June 2019, the Central Bank announced a new policy measure, which required Deposit Money Banks (DMBs) to maintain a minimum 60 percent Loan to Deposit

Godwin Emefiele, CBN governor

Ratio (LDR).

The objective was to grow the economy through making credit available to the real sector of the economy.

This, the regulator later raised to 65 percent and set December

2019 as deadline for compliance by banks. Loan to Deposit Ratio is a ratio, represented in percentage, between a bank’s total loans and total deposits.

“We give them incentives that when they lend to the Small and

Medium Enterprises (SMES), and private sectors, they will be granted certain dispensations to make them happy while failure to comply will result into taking 50 percent of the un-lent portion of their loans into the CRR,” Godwin Emefiele, governor of the CBN said.

In July 2019, the CBN wielded the first big stick on 12 banks for LDR default to demonstrate its determination to jumpstart the economy. The regulator deducted N500 billion from the accounts of 12 banks for failing to meet the target to provide credit to their customers.

The deduction will continue to increase the effective CRR beyond the statutory threshold and limits the ability of the banks to consider other likely potential income positions, according to Nigeria’s Economist and Investment Professional.

What the deduction means for the sector is that it puts pressure on the Net Interest Margin of the banks as these funds earn zero interest with the CBN, the Economist said.

This is responsible for the low deposit rates in the banks as banks may be wary of taking deposits. On the positive side, the economist said the low interest rate has shifted investors focus to other asset classes with higher yield which aligned with the CBN’s position.

The CBN at the first meeting of the Monetary Policy Committee (MPC) on January increased the CRR to 27.5 percent from 22.5 percent. The increase then was as a result of concerns on the excess li-

quidity in the banking sector, occasioned by open market operations (OMO) ban for non-bank investors and corporates.

In March this year, the CBN deducted a whopping N1.4 trillion from the banking sector’s CRR as all DMBs and Merchant banks failed to meet the 65 percent LDR at the end of March 2020.

Olusegun Akintunde, financial market analyst at Polaris Bank Limited, said the impact has always been the same, squeeze the system of liquidity and impact the ability of banks to bid for FX in size.

On June 2020, the CBN debited banks the sum of N216bn for the same reason. One of the major implications of the CRR debits for deposit money banks is the adverse material impact on their liquidity ratios, FBNQuest said in a note in June 2020.

On July 2020, the CBN debited banks an additional sum of N118bn for breaching its CRR requirements.

The higher CRR is in line with the CBN’s liquidity mopping efforts which have intensified this year amid rising inflation.

The MPC noted in its last meeting that the CBN policy measures have assisted in boosting credit to the agricultural and manufacturing sectors.

Total gross credit to the economy grew by N3.3 trillion or 21.5 per cent to N18.9 trillion at the end of June 2020, from N15.56 trillion recorded in May 2020, according to

Other lenders urged to emulate Access Bank’s N50bn interest-free loan

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ccess Bank Plc has taken a lead in designing an interest free loan and grant for small and medium sized enterprises and youth affected by the #EndSARS crisis.

Last week saw businesses shut down, lives lost and several properties destroyed after the hoodlums hijacked the peaceful protest against the Special Anti-Robbery Unit (SARS) and police brutality by the Nigerian youth across the country.

As part of efforts to get the affected businesses get back on their feet, Access Bank at the weekend through its official LinkedIn page announced that it has set aside a minimum of N50 billion interest-free loans and grants to support communities, Micro, Small and Medium sized businesses and the youth.

“Now more than ever, we remain committed to our purpose of impacting lives positively. In light of the recent occurrences, we will be supporting Nigerian businesses with 50 Billion Naira interest-free loans and grants,” the bank stated.

Herbert Wigwe, Group managing

director/CEO had at the weekend disclosed to BusinessDay that the bank would issue the guidelines for accessing the fund this week.

“Let them come up with the guidelines then we will know whether they are being realistic or not”, Uju Ogubunka, president, Bank Customers Association of Nigeria (BCAN) said by phone.

However some of the affected businesses have indicated interest in the fund, while analysts in the financial services sector have commended the bank for the move.

An official at one of the branches of Spar who preferred to be anonymous noted that they would be interested in the loan but that their head office would be the one to have the final say on it.

The N50bn interest-free loan scheme of Access Bank for businesses affected by the end SARS crisis is highly commendable,” said Uche Uwaleke, professor of capital market and president Capital market Academics of Nigeria.

Uwaleke said the move is quite exemplary and a demonstration of www.businessday.ng

empathy on the part of the bank.

Other banks should borrow a leaf from this great show of corporate social responsibility.

He said extending this kind gesture in the form of reduced interest rate and moratorium to those who already borrowed money should equally be considered.

“There is no doubt that the implementation of this plan will be at a cost to the bank. This cost should be borne by the shareholders ultimately and not the customers by way of higher bank charges. It is the responsibility of the CBN to ensure that deposit money banks, as financial intermediaries, do not give with one hand and take with another,” Uwaleke said.

On his part, Ayodele Akinwunmi, relationship manager, corporate banking, FSDH Merchant Bank Limited, said, “I think it is a good gesture from the bank to assist businesses affected by the crisis to recover faster by offering financial assistance to the affected businesses”.

He said the strategy will also help the bank to win new customers be-

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cause customers will see them as bank that can stand with them even in crisis. And in the long-run, he said it is a win-win for both parties and the economy.

Olalekan Aworinde, Senior Lecturer, department of economics, Pan-Atlantic University, Lagos, said giving such interest-free loan and grant is also part of their corporate social responsibility, if other Banks does this it will have a positive impact on the level of their performance in the long run.

On the other hand, in celebration of Women’s Health Month, Access Bank’s ‘W’ Initiative, a flagship women empowerment programme from Access Bank on Monday announced a breast cancer awareness campaign and screening for women in Lagos, Abuja and Port-Harcourt from the 21st – 31st of October, 2020.

The W Health Month, aimed at improving community awareness on health issues that affect women and their families by bridging knowledge gaps, providing access to health checks and encouraging healthy lifestyle habits, will be kicking off with @Businessdayng

the Breast Cancer Awareness Sensitization Campaign from October 21, 2020. Subsequently, women across the three states will have access to free breast screening from October 26th – 31st, 2020.

Speaking on the campaign, Ayona Trimnell, group head, W Initiative, said, “Breast cancer is the 2nd most common cancer among women therefore, the need for awareness cannot be overemphasized in the effort to fight and prevent the devastating and long-lasting impact of the illness on affected women and their families.”

“While there has been considerable global conversations about this subject matter over the past few decades, many Nigerian women are still unaware of the importance and procedure for regular breast screening, which is a major reason Nigeria has one of the highest breast cancer mortality rates in the world. During this Women’s Health Month, and even beyond, Access Bank is committed to raising awareness, and providing medical support for women across the country.”

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Wednesday 28 October 2020

BUSINESS DAY

TRANSPORTation Motoring

RailBusiness

ModernTravel

Roads

Toyota to axe L/Cruiser from global line-up Traffic back on Lagos roads amid post-protest curfew …After 13 years and slew of facelifts usiness activities is man traffic density ac-

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MIKE OCHONMA Associate Editor

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n d i c a t i o n s h av e emerged that; Toyota will reportedly axe the Land Cruiser from its global lineup soon. While the news has not been confirmed, a deleted post on IH8MUD.com that primarily deals with Land Cruiser indicates that the iconic nameplate will be shelved following the 2021 model year but the Lexus LX will continue to be on sale with a turbocharged V6 power-train.

The existing generation Toyota Land Cruiser has been in the business for 13 years and there appears to be no new iteration in the pipeline. The Japanese manufacturer has managed to stretch its lifespan with a slew of facelifts but the time may have come to say a goodbye.

Currently, the LX comes equipped with a 5.7-litre V8

engine. According to Motor Authority, the publication’s dealer source has also confirmed of the matter with strong words that there is no illusion it’s coming back and is completely dead for the moment.

In the model year 2021 Toyota Land Cruiser in the United States for instance, the Heritage Edition will offer three rows of seats.

The special edition was unveiled at the 2019 Chicago Auto Show with a sticker

tag of $80,000.

Recently, in Australia, the Land Cruiser Prado received an update. Offered in GX, GXL, VX and top-end Kakadu trims, it is powered by a 2.8-litre fourcylinder 1GD-FTV turbo Diesel engine developing 204 PS at 3,400 rpm and 500 Nm of peak torque at 1,600-2,800 rpm. w Th e u p date d L a n d Cruiser Prado has a towing capacity of three tons while

Why driving with a near-empty fuel tank is bad

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filled is that it will prevent the fuel pump and engine picking up contaminants that have settled at the bottom of the tank over time. Running low on fuel frequently leads to a higher chance of the settled sludge being picked up into the rest of the fuel system, subsequently damaging the engine.

Running a vehicle low on fuel could also lead to its system pumping air instead and long-term exposure to air will also cause issues to the fuel pump and other components that require fuel to function. If you’re really pushing the limits of your fuel range, your vehicle www.businessday.ng

may well run out of fuel at a truly inconvenient time, such as on a highway or when going through busy intersections, which could be dangerous.

Last but not least, don’t you think it would be a far less stressful experience if your vehicle has sufficient fuel at all times? You will have a clearer head for avoiding and getting around any eventualities that may be encountered on the road, thus making for a safer time in your vehicle. You will need fuel sooner or later, so you may as well have the peace of mind of having enough in your tank.

cording to those who spoke with BusinessDay are the Agege motor road, Ikotun, Jakande, Okota roundabout towards the Apapa-Oshodi expressway through the Cele link-road and the Mile-2 interchange.

Similarly, the LagosLekki-Epe road which has been in the news associated with EndSARS protest and all manner of civil agitations also recorded severe traffic.

Many commuters who spoke to our reporter last Monday said that, the traffic gridlock is not strange to them as the day was the first time many Lagosians are trooping out in their numbers following two weeks of the nation-wide protests with reported cases of looting, arson and destruction of both private and public properties.

FG, states must prioritize safety on rail level crossing, says minister

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MIKE OCHONMA

ften times, car owners lay claim to knowing their car very well and sometimes wrongly interpreting to what distance the little petrol inside their car could carry them before refueling at the next gas station.

You may ‘know your car’ no doubt about that, but did you know that running your vehicle really low on fuel is actually bad for its health.

There a number of negative implications of driving a car with the fuel gauge showing the driver the empty tank sign. Firstly, running close to the ‘E’ end of the gauge is bad for your car’s fuel pump because it will not receive the lubrication it requires.

As with most constantly moving mechanical parts, prolonged operation in this state will lead to premature wear and possible breakdown, and the same applies to the fuel pump.

Another reason to keep your fuel tank sufficiently

the Toyota safety sense package is standard. It features pre-collision system, seven airbags, VSC, TC, ABS, EBD, BA, Trailer Sway Control, lane departure warning and assist, road sign assist, active cruise control, etc.

Industry followers hope the Land Cruiser nameplate lives on especially in the current market scenario where the sport utility vehicles (SUVs) and crossovers are more popular.

gradually returning back to Lagos as city dwellers go about their daily activities with cautious compliance to the ongoing curfew imposed by the state government following the post-EndSARS protest and civil unrest witnessed in some parts of the country in the past two weeks.

Some areas of the metropolis with heavy traffic jams include the Lagos-Badagry expressway and the Third Mainland Bridge which coincidentally are areas where the state government is currently executing either road modernisation like in the case of the LagosBadagry road and palliative work on the 11.5 kilometer Lagos third mainland bridge.

Other stretch of the city road network with high vehicular and hu-

s a precautionary measure to prevent accidents along the Lagos-Ibadan standard gauge rail corridor and protect residents of host communities along the rail line corridor, Nigeria’s minister of transportation; Rotimi Amaechi has emphasized the need for stronger cooperation between the various states where the rail tracks passes and the federal government in provision of level crossings.

The minister, who was speaking at the end of the monthly inspection tour of the $1.5 billion Lagos Ibadan rail project, said the communities had expressed concern about the number of under and over passes as well as erosion caused by the standard gauge.

Concerned about the development, the transportation minister directed the Chinese Civil Engineering & Construction Corporation (CCECC) contractors and its engineers handling the project to take a village by village study of what impact the rail lines must have caused these communities vis-a-vis the environmental impact assessment.On the issue of perimeter fencing, the minister expressed

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dismay that miscreants are sabotaging efforts to secure the rail corridors by fencing.

According to him, if you look at the Warri-ItakpeWarri line, you will see that we are fencing and the communities are breaking it down. We are having problems with it.We are also fencing Kaduna-Abuja.

We will find where we suspect more human interference like Lagos”. Amaechi expressed satisfaction with the level of work done on

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the stations and expressed hope that, the project will be commissioned by President Muhammadu Buhari as a New Year gift to Nigerians.

Making further clarification on the issue, Ibrahim Alhassan Musa, chairman, Nigerian Railway Corporation (NRC) board said the corporation is working hand in hand with the Lagos, Oyo and Ogun state governments to ensure there are enough level crossings.

Wednesday 28 October 2020

BUSINESS DAY

TRANSPORTation Motoring

RailBusiness

ModernTravel

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Business Event

Roads

How much switching to EV could really save owners MIKE OCHONMA Associate Editor with Agency Reports

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he electric vehicle (EV) renaissance is upon us and there is no doubt about it.

What was once dismissed as a naive novelty is now recognized as the future of driving, with virtually every major automaker throwing their hat into the ring.

Despite a global pandemic orchestrated by the coronavirus scourge, EV pioneer Tesla just reported

stantial savings over their gas-powered counterparts.

Here’s an overview of the cost to operate an EV compared to a vehicle with an internal combustion engine for 15,000 miles, which the Department of Transportation of the United States estimates is the approximate annual mileage for owners of new vehicles. These are gaspowered car $1,420, electric car $620, gas-powered SUV/crossover $1,800, electric SUV/crossover $780, gas-powered pickup truck $2,300 and electric pickup truck $990.

During the first year

This is due in large part to the fact that the motors and drivetrain components in EVs have fewer moving parts than internal combustion engines and are less mechanically complex.

Gas-powered vehicles also require regular fluid changes. Most engines today have recommended oil change intervals of 5,000 to 7,500 miles, according to AAA and since EVs don’t use oil, they don’t require oil changes.

As the cost of lithiumion batteries continues to fall each year, the driving range of electric vehicles keeps growing — and so

L-R: Princewill Ekujuru, president, Brand Journalists’ Association of Nigeria; Blessing Umebali, publisher, Brandmatters Magazine/former auditor, Brand Journalists’ Association of Nigeria presenting 12th Edition of Brandmatters Magazine to Adebola Balogun, senior business executive, CMC Connect, and Akin Adewakun, former vice president, Brand Journalists’ Association of Nigeria, at a courtesy visit to the company in Lagos.

L-R: Sharon Ikeazor, minister of state for environment; Ike Ekweremadu, chairman, Senate Committee on Environment, and Mahmood Abubakar, minister of environment, during Ekweremadu’s visit to the Ministry in Abuja.

its best quarter ever, with a 40 percent iincrease in sales over the third quarter of last year. It’s been so successful it decided to split its stock, making it easier for ordinary people to invest in such a highly valuable company.

Buying an electric vehicle can be a daunting investment, too. However, a new study from Consumer Reports reveals just how worthwhile that investment can be.

Sticker shock is a common occurrence when shopping for an electric vehicle, since EVs can cost anywhere from 10 percent to over 40 percent more than similar gas-powered models.

But based on findings, the long-term ownership costs of an EV are $6,000 to $10,000 less than a vehicle with an internal combustion engine.

Depending on the size of your vehicle and where you charge up, electric vehicles can provide sub-

of ownership, electric vehicles cost around 60 percent less to fuel, with savings between $800 and $1,310 depending on the vehicle’s size.

Due to regional price differences in both gas and electricity, the fuel savings on EVs won’t be the same for everyone. However, EV owners who mainly charge their vehicles at home overnight when electricity prices are lower will see significant savings no matter where they live.

Findings by Consumer states that over a typical seven-year ownership of an electric vehicle, average fuel savings were $4,700 for a car, $6,300 for an SUV and $8,800 for a pickup, compared to similar gaspowered vehicles.

The cost to maintain and repair an electric vehicle over a 200,000 mile lifetime is roughly half as much as maintenance and repairs on a similar gas-powered vehicle, with an average savings of around $4,600.

does their resale value.

For the 2020 model year, at least 11 new EV models had a range of 200 miles or more. These long-range electric vehicles are holding their value as well as or better than similar gaspowered models, according to findings.

As with traditional vehicles, EVs depreciate in value differently based on their class, features and brand. Luxury models tend to depreciate less over time, while mainstream lowrange models depreciate more.

Findings show that, after adjustments for federal and state tax credits, a luxury EV retained 48 percent of its value after five years, while a comparable vehicle with an internal combustion engine retained only 46 percent of its value.

How to manage the upfront cost of an EV. Even with these long-term savings, the upfront price of an EV can be intimidating for first-time buyers.

L-R: Danjuma Johnekele, corporate affairs manager (North), Nigerian Breweries Plc.; Abdullahi Shittu Kuriga, district head of Gwagwada, (Danmakoyan Chikun Chiefdom); Shehu Tijani, district head of Kakuri (Hakimi Kakuri), and Abbey Ajayi, brewery manager (Kaduna), Nigerian Breweries Plc, during the launch of Nigerian Breweries Plc’s Empowerment Programme for youths and women in Kaduna.

L-R: S.A.U Offiah, chief medical director, Abia State Teaching Hospital; Bond Abbe, associate director, government relations, IHS Nigeria, and Livingstone Ogualu, officer, fleet operations, IHS Nigeria, at the official handover event of PPE items to support the fight against COVID-19 in Abia State.

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Wednesday 28 October 2020

BUSINESS DAY

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Wednesday 28 October 2020

BUSINESS DAY

23

NEWS

Victim tells Lagos judicial panel how SARS brutalised, sold his properties …as N/Assembly to seek FG’s support for rebuilding Lagos JOSHUA BASSEY

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petitioner, Okoli Agu Abunike who appeared before the Lagos State Judicial Panel of Inquiry and Restitution, on Tuesday, narrated to the panel how SARS operatives brutalised and him and sold off properties.

The judicial panel presided over by Justice Doris Okuwobi, began sittings on Tuesday at the Court of International Arbitration Centre, Lekki, with Abunike appearing as first petitioner.

The practitioner while being led in evidence by his counsel, Olalekan Gazali, narrated his ordeal while in custody of the dissolved SARS operatives, saying he was detained without trial for 47 days.

He said “I was arrested, beaten and paraded at Alaba International Market by SARS operatives and later taken to Ojo Police Station after my former boss accused me of fraud. The incident happened in 2012. I worked with a company for four and a half years,

I had stated that I wanted to resign and my then boss authenticated my resignation.

“After some days I was called back to the office for some clarification and I was promptly arrested by the police at Ojo Police Station. From there I was taken to SARS. I was told that my boss said something happened. I was beaten, stripped and paraded

by SARS around the Alaba International Market as a thief, my head was broken and lost a lot of blood. I sustained so many injuries and I still have the scars.

“I spent 47 days in SARS office in Ikeja. They removed two of my teeth. My family did not know my whereabouts.

Eventually, when my mother and my wife came, one Inspector Sunday popularly called ‘Baba Ijapa’ and ACP Haruna beat them in my presence.

“One day my mother visited and she told me that everything is gone. They took all my properties - My house, phones, cars, generator, everything. I was told by SARS

to confess and my former boss said that I must produce the missing goods and if I don’t, I will die there. I said I will never confess to committing any crime.”

Abunike explained that he was later released from SARS custody after which he filed a fundamental human rights enforcement suit against SARS at the Federal High Court Lagos before Justice Ibrahim Buba According to him, the judge delivered judgment in his favour, ordering SARS to pay him N10 million as damages, which the police failed to pay.

“Since then, my belongings have not been given back to me. The only thing we have gotten back through legal processes is the documents for my land, through a judgment delivered by Justice Bola OkikiOlu- Ighile in Badagry.”

He noted that he has not been found guilty of any crime by the justice system and that he is yet to receive his N10 million court ordered com-

pensation, and requested the panel to compel respect the court’s ruling.

Earlier before proceedings, two youth representatives, Rinu Oduala , Majekodunmi Temitope and the zonal coordinator (South-West Zone) National Human Rights Commission, Lucas Koyejo were sworn in to join the panel.

Meanwhile, Senators from the southwest geo-political zone have submitted that the level of destruction carried out in Lagos by hoodlums who hijacked the #EndSARS protest, was beyond the capacity of the Lagos State alone to fix.

The lawmakers said they would be making a case at the National Assembly for the Federal Government to assist Lagos in rebuilding the nation’s commercial capital.

They stated this when a delegation of the senators, led by Ajayi Boroffice, visited Governor Babajide SanwoOlu at State House, Marina, to commiserate with him on last week’s massive destruction of public and private properties in Lagos.

Upstream oil, gas companies require digital technologies to redress value creation crisis STEPHEN ONYEKWELU

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new study by the Boston Consulting Group (BCG) has said that the oil and gas industry is in the middle of a value creation crisis and has delivered subpar shareholder returns for the past decade and leveraging digital technology could improve profitability.

Titled Digital Powers Value Creation in Oil and Gas, the study stated that with the collapse in energy demand as part of the economic fallout of COVID-19 pandemic success in leveraging digital technologies is critical in transforming legacy businesses to achieve a stepchange in performance, and innovating business models to tap into new value pools.

To evaluate the industry’s digital maturity, BCG recently conducted a Digital Acceleration Index (DAI) study of almost 50 companies using a combination of online surveys and deep-dive interviews.

Oil and gas poor performance compared with other

Nigerian youths form NNYM to redirect #EndSARS protest OBINNA EMELIKE

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L-R: Sharon Ikeazor, minister of state for environment; Ike Ekweremadu, chairman, senate committee on environment, and Mahmood Abubakar, minister of environment, during Ekweremadu’s visit to the ministry in Abuja.

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#EndSARS protest: Here’s what destruction of properties means for real estate sector CHUKA UROKO

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esides the death of some protesters that have left family and friends grieving, the real estate sector of the Nigerian economy is the worst victim of the wanton destruction that trailed the killing of EndSARS protesters at the Lekki Tollgate in Lagos by persons suspected to be Nigerian soldiers.

The sector is currently bleeding as some private residences and many public assets have been either vandalised and looted or completely burnt down by hoodlums who took over the peaceful protest and went on destruction spree, leaving families homeless and businesses in ruins.

Among the private resi-

dences that were torched are the home of the governor of Lagos State, Sanwo-Olu’s mother, and the palace of Rilwan Akiolu, the Oba of Lagos, which the hoodlums looted and made away with his staff of office. The palace, an expansive one-storey building, was allegedly partially burnt.

Though public buildings such as the Igbosere High Court on Lagos Island, Oyingbo and Ojodu Bus terminals, Nigerian Ports Authority (NPA), Orile and other police stations, local government secretariats, Federal Road Safety Corps and Vehicle Inspection Service offices, etc, were badly torched, the impact is not as deep and far-reaching as that of private business facilities that were destroyed.

Though ultimately this will www.businessday.ng

create opportunities for players in this sector, analysts are of the view that it is a red flag for a sector still struggling to free itself from recession. The implications for the sector are grave, they add.

“For a sector that has consistently recorded negative growth in many quarters including the third quarter of this year, this is a huge blow. The sector has been, by reason of this massive destruction, plunged into a hopeless situation that will push it into negative growth territory,” Peter Ogunyemi, an estate manager, noted on Friday.

Damola Akindolire, managing director, Apha Mead Development Company, affirms, saying it was going to be tough for the sector and its investors. “The retail sector is

the worst hit and that is going to affect so many things in that sector,” he says, noting, “This is a sector that is still smarting from the impact of Covid-19, which has reduced not just patronage but also footfall in the malls.”

By the last count, about five malls in Lagos were either looted or burnt or both. They include Adeniran Ogunsanya Mall in Surulere, Circle Mall, The Palms, The Spar in Ikate, Novare Mall, all in Lekki, Lagos, and Oshogbo Mall in Osun State.

While Adeniran Ogunsanya Mall was completely vandalised and looted, Circle Mall was looted and burnt, The Spar, The Palms and Novare Mall were only looted and vandalised. Novare Mall is suffering this kind of attack a second time in 12 months.

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industries showed up in the DAI results. No upstream oil and gas company scored high enough in the survey to classify as a digital leader. That is somewhat surprising given that nine out of ten respondents said they have a digital vision for the company, and two out of three said they have clearly defined digital ambitions.

Last year, Rystad, an energy research firm analysis report showed that the global oil and gas industry can save as much as $100 billion through automation and digitalisation in the 2020s. The efforts could help cut about 10 percent of the $1 trillion spent in 2018 on operational expenses, wells, facilities and subsea by more than 3,000 producers.

In Nigeria, some oil companies have been leveraging digitalisation and automation to keep operating expenditures (OPEX) low, make processes repeatable, auditable and to shorten opportunity maturity cycles by more than 60 percent. This has also led to efficient oil well stock inventory management.

s part of action plans following the end of the #EndSARS protest, Nigerian youths have formed a new organisation tagged New Nigeria Youth Movement (NNYM).

The new youth movement was formed on October 23, 2020 by like minds across different sectors in Nigeria and Nigerians in Diaspora, who met via zoom in a session streamed live on Facebook and Youtube.

The formation of the new youth organisation was among the many things agreed at the zoom meeting by the youths in effort at redirecting the #EndSARS Protest energy to something positive and for a movement for a new Nigeria.

Recognising the fact that so many groups have sprung up as a result of the EndSARS protest, the NNYM is geared to serve as the anchor for all groups both in Nigeria and in Diaspora.

Stephen Akintayo, one of the voices in the new movement said, “We are not a political party, but a movement for a new Nigeria, and

CHANGE OF NAME

I formerly known as NNODI ONYINYECHI SANDRA now wish to be known and addressed as NNODI BIDEMI OLUCHI. All documents bearing my former name remain valid. General public, please, take note. @Businessdayng

we are open to working with like minds that have a similar agenda for the new Nigeria we envision. One of our aims is to better engage grassroots people like the ‘street landlords’ whom many refer to as thugs and hoodlums.”

Akintayo noted that some h o o d l u m s h i ja cke d t h e peaceful #EndSARS protests, disturbing the peace in many states and leaving people to think that the movement does not have a focus, hence the behavior of the hoodlums who were mistaken for the protesting youths.

“We apologise to these ‘street landlords’ for occupying their space since the beginning of the protest before they joined the party on Wednesday. The street landlords are also Nigerians, and we must remember that no Nigerian is more Nigerian than others, #NoNigeriaIsMoreNigerianThanTheOthers”, he said on behalf of NNYM. According to him, it is the class between the haves and have nots in the society that makes many Nigerians vulnerable, and the less privileged to become street landlords.

CHANGE OF NAME

I formerly known as Jimmy Love now wish to be kn own and addressed as Love Akanimon Tunde .

All documents bearing my former name remain valid.

General public, please, take note.

24 BUSINESS DAY

Wednesday 28 October 2020

NEWS

ICPC to investigate sources of looted palliatives FELIX OMOHOMHION, Abuja

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he Independent and Corrupt Practices and Other Related Offences Commission (ICPC) said on Tuesday that it would investigate sources of looted palliatives across the states.

There have been reported cases of youths breaking into warehouses in different states of country and carting away items, especially food stuff, meant for distribution during the Covid-19 lockdown.

The commission’s spokesperson, Azuka Ogugua, in a statement said in the aftermath of the looting spree that ensued as a result of the #EndSARS protest, the antigraft commission was set to commence the investigation of the sources of looted items.

According to the statement, this is in response to increasing public demands on the commission to investigate and uncover the rationale behind the storage of palliative materials meant for the suffering masses in warehouses across the country which were supposed to be distributed to the citizens.

Recall that in the wake of the Covid-19 pandemic, the commission had taken proactive measures to prevent corruption in the administration of the Covid-19 funds by setting up a monitoring team

that was charged with the responsibility of preventing possible abuse.

In addition, the commission drew up “guidelines for PTF management of Covid-19 relief funds” and issued an advisory on the management of the Covid-19 relief funds.

“The scope of the monitoring activities of ICPC did not cover CACOVID funds which were donated by individuals and private sector organisations as palliatives, but only the Federal Government funds used to procure relief materials and other palliatives.

“In view of the recent looting spree, ICPC will investigate the sources of goods looted from palliatives warehouses, the National Emergency Management Agency (NEMA) and private houses to unravel whether or not the properties looted were personally acquired, government procured, CACOVID donated, or are empowerment materials which are part of the constituency projects initiative of the Federal Government.

“ICPC will also scale up the monitoring of Ministries, Departments and Agencies (MDAs) charged with the acquisition and distribution of Covid-19 palliative relief materials and make public its findings in due course,” the statement added.

CBN’s report shows PMI contracted slowly in October to 49.4 index points …as analysts expect PMI reading to cross 50 points before year end HOPE MOSES-ASHIKE

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he Central Bank of Nigeria (CBN) on Tuesday released its Purchasing Managers Index (PMI) report which showed that the manufacturing sector contracted slowly in October to 49.4 points from 46.9 index points in September 2020.

This is attributed to slowdown in economic activities as a result of Covid-19 pandemic lockdown.

However, the PMI reading shows an improvement when compared with the numbers in the last five months - in May 2020, it stood at 42.4 index points, 41.1 in June, 44.9 in July, 48.5 in August and 46.9 points in September 2020.

Ayodeji Ebo, senior economist/head, research & strategy, Greenwich Merchant Bank, said the improvement could be attributed to improved economic activities earlier

this month. However, he said the civic unrest in the past two weeks might have impacted on the PMI numbers for October.

“We expect further improvement in November despite the civil unrest,” Ebo told BusinessDay. PMI for the non-manufacturing sector stood at 46.8 points in October 2020 from 41.9 points in September 2020, indicating contraction for the seventh consecutive month.

Of the 17 sub-sectors surveyed, three subsectors reported growth.

Ayodele Akinwunmi, relationship manager, corporate banking at FSDH Merchant Bank Limited said although the PMI is still lower than 50points, meaning contraction, it is an improvement over the figure released in September.

The improvement he said was on account of the gradual easing of the economy that led to increased suppliers’ deliver time and increase in new orders prior to the crisis that

followed the ENDSARS protest.

“With appropriate growth enhancing and confidence building polices in the country, I expect the PMI to cross 50points before the end the year 2020,” Akinwunmi said.

At 48.7 points, the business activity index declined for the sixth consecutive month, indicating contraction in nonmanufacturing business activity in October 2020. Three out of the 17 subsectors reported growth in business activities (above 50 percent threshold) in the review month; while 11 subsectors recorded decline in business activity and 3 subsectors were stationary in the month under review.

The October 2020 PMI survey was conducted by the Statistics Department of the Central Bank of Nigeria during the period October 12-16, 2020.

The respondents were purchasing and supply executives of manufacturing and nonmanufacturing organizations in all 36 states in Nigeria and

the Federal Capital Territory (FCT).

The report shows that in October 2020, suppliers’ delivery time was faster, new orders increased, while employment level and raw materials inventories contracted.

Of the 14 subsectors surveyed, 6 subsectors reported expansion (above 50 percent threshold) in the review month.

The sub-sectors include electrical equipment, transportation equipment, printing and related support activities, chemical and pharmaceutical products, textile, apparel, leather and footwear and cement. The remaining 8 subsectors reported contractions in the following order: primary metal, petroleum and coal products, paper products, fabricated metal products, furniture and related products, non-metallic mineral products, plastics and rubber products and food, beverage and tobacco products.

Why infrastructure will take N66bn of our N378.48 2021 budget - Okowa MERCY ENOCH, Asaba

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overnor Ifeanyi Okowa of Delta State says the N66 billion proposed for infrastructure in the 2021 budget is to facilitate road interconnectivity which is a pre-requisite for commerce and economic development.

Okowa presented a budget of N378.48 billion for the 2021 fiscal year to the state House of Assembly on Tuesday.

Education sub-sector ranked second as the governor proposed N23 billion for it, saying the state would build more technical colleges in line with the administration’s knowledge-based driven economy.

He said since inception of his administration in 2015, the government has embarked on 439 road projects, aside from those done by ministry of urban renewal, the Delta State Capital Development Territory Agency, Warri/Uvwie and Environs Development Agency, and Delta State Oil Producing Areas Development Commission, DESOPADEC. He expressed the hope that in 2021, the remaining portions of the Asaba Storm Water Drainage would be completed, saying “we are equally giving attention to the Storm Water Drainage project

in Warri and environs.”

“Government has moved to complete inherited projects in the riverine areas. One of such projects is the Ode Itsekiri-Trans Warri road with 19 bridges, which contract was awarded in 2006.

“With the contractor, Setraco, mobilising to the site in November 2007, and before the end of the last administration in 2015, the contractor had done five kilometres of the road and completed five of the bridges.

“We are also working on the Ayakoromo bridges that we inherited from the previous government. The project, connecting Egbedi and Ayakoroma communities in Ughelli South and Burutu local government areas respectively, it is about 70 per cent completed, and should be finished by the second quarter of 2021”, he said.

He explained that the Ovwor-Effurun-Otor Bridge, started by the incumbent administration, has been completed while work is at advanced stage at the KwaleBeneku Bridge, and the Orere, Agbarho – Otokutu road.

He said in the ministry of works alone, the government has provided over N66.659 billion for road infrastructure in the 2021 budget proposals, he said. www.businessday.ng

Ketil Karlsen (l), head of European Union (EU) in Nigeria and ECOWAS, and Jean-Claude Brou, president, ECOWAS Commission, after a meeting to discuss EU-ECOWAS issues, at the ECOWAS secretariat in Abuja, yesterday

Higher Asian LNG prices raise prospect for Nigeria DIPO OLADEHINDE

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igeria may most likely earn more dividends from its Liquefied Natural Gas (LNG) assets in coming weeks as prices in one of its main market, Asia, to its highest level this year, as a result of stronger demand in the region, as well as supply concerns in the United States due to a hurricane and stronger European gas prices.

In Nigeria, the natural gas sector is oriented towards the export market with over 50 percent sold at the Asia market, which is determined by economic fundamentals as against a regulated

domestic regime, with LNG being the major revenue earner for the country in the gas industry.

Bloomberg reported that three trades for liquefied natural gas cargoes executed by commodity trading major Vitol made the company the talk of the LNG town as it pushed the Asian regional LNG benchmark up by as much as 20 percent to $6.761 per mmBtu—the year’s high from as low as $2.

The deals included one purchase of an LNG cargo from PetroChina company for December 5-9 2020, one from Gunvor Group for December 13-17 delivery to China at a premium to a European benchmark, and

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one from Trafigura Group for December 1-5 delivery to China, at $6.87 per mmBtu. “Apart from this deal, we expect LNG demand to increase by four billion cubic meters this winter and that’s led by growth in China, Japan and South Asia,” said analysts from Refinitiv, as quoted by Gasworld, earlier this month.

LNG prices have received much-needed support recently, mainly from weather forecasts expecting a cold winter in the northern hemisphere and specifically in Asia. If the forecasts materialise, they will provide a vital boost to LNG trade as Nigeria and other exporters have @Businessdayng

struggled with an oversupplied market that started well before the pandemic.

“We are expecting a substantial year-on-year increase in Northeast Asia’s Q4 2020 demand for LNG because of increased heating load compared to last winter,” consultancy Energy Aspects said in a report, adding that lower nuclear output in South Korea may also create additional LNG demand.

An excess in the supply of LNG globally had pushed benchmark prices for the commodity lower when the coronavirus emerged. Then they fell further, following the path of oil.

LNG fell as low as $2 per mmBtu

Wednesday 28 October 2020

BUSINESS DAY

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GLOBUS BANK CELEBRATES CUSTOMER SERVICE WEEK WITH THREE (3) NEW BRANCHES Nigeria’s foremost “phygital” bank, Globus Bank Limited, celebrates 2020 Customer Service Week with a special gift to Lagos customers.

The bank opened 3 new branches at the following locations – Plot 17, Admiralty Way, Lekki; Plot 2B, Aromire Street, Allen Avenue, Ikeja and Plot 17, Warehouse Road, Apapa, Lagos.

The bank is poised to strategically branch out in a manner that aligns with its vision to offer the banking public a viable alternative that is designed to provide ultimate and endearing customer experience.

L-R: Modupe Ajayi, Branch Manager Lekki, Globus Bank; Elias Igbinakenzua, Managing Director/CEO Globus Bank; Ekundayo Yakubu, Chief Financial Officer Globus Bank and Titus Ebare, Chief Risk Officer, Globus Bank at the launch of the Globus Bank Lekki Branch.

Lekki Branch – Plot 17, Admiralty Way, Lekki

Globus Bank commenced operations on November 6, 2019, and in accordance with their service promise, they have continued to roll out branches in very strategic locations across the country.

These three new branches in one week demonstrate their commitment to match words with action.

Ikeja Branch – Plot 2B, Aromire Street, Allen Avenue, Ikeja

To serve the retail customers, the Bank is currently active on USSD code (*989#) and has a mobile banking appliApapa Branch – Plot 17, Warehouse Road, Apapa

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cation (Globus Mobile), that is seamless and provide end-to-end solution for retail customers. Accounts are fully opened in 2 minutes without the need to physically visit any branch. The transfer service on Globus Mobile is the most enjoyable in the industry. Individuals can switch between personal and corporate accounts on Globus Mobile and do transactions seamlessly, including bulk payments. With Globus Mobile, your corporate account is on your palm. This is a robust solution for individuals and MSMEs. For key corporate customers, the bank has a robust Corporate Internet Banking Solution that has been adjudged by customers as one of the best in the industry.

Whilst rapidly gaining market share in the corporate segment, the bank is maintaining its focus on enhancing financial inclusion by encouraging the unbanked through innovative digital platforms and incentives. There are plans to show optimal physical presence in key retail centres aimed at strengthening financial inclusion and supporting MSMEs.

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Wednesday 28 October 2020

BUSINESS DAY

Pay on Demand Solutions: Unlocking Financial Inclusion through everyday transactions The world is moving fast – digitizing, globalizing, connecting more and more through the Internet of Things.

Still, too many people remain disconnected from the networks and systems they need to be fully productive. Some need electricity or access to clean water, others want education for their children or basic financial services. Most importantly, many need the ability to pay for these necessities in small manageable increments – ideally via mobile. Africa after all, is the beating heart of the world’s mobile money activity.

An estimated 1.7 billion people around the world still don’t have access to a bank account or financial network, so when it comes to payments, they are at the mercy of cash, as well as the costs, risks and limitations it presents.

Around the world, Pay on Demand (POD) business models are emerging to give people the ability to pay for what they use, as they need it. In this model, consumers who cannot afford to pay for an asset outright, pay a provider in small chunks when they need to consumer or small instalments, at regular intervals.

These payments are made either until the value of the asset is paid off and the consumer owns the asset, or on a continuous basis until the customer does not require the asset—or cannot pay for the asset anymore—at which point the asset is locked for further usage and returned to the provider.

Asset financing in the IoT era What separates today’s Pay on Demand models from traditional asset financing models is the provider’s ability to remotely lock or un-lock the asset based on customer payment history.

This process is enabled by IoT technologies. Importantly, the asset is used as collateral for the duration of the providercustomer relationship, allowing the customer to incur little upfront cost and risk, and providing the basis for what is often the customer’s first financial service via a microloan.

Last month, Mastercard announced a partnership with Samsung, Airtel Africa and Asante Financial Services Group (“Asante”) to launch a Payon-Demand (POD) payments platform. The platform provides end-consumers and micro, small and medium enterprises (MSMEs) with asset financing to access smart handsets at a low upfront cost while making

payments over time. As they use the device, they will also establish a digital transaction history, making other financing solutions accessible, such as credit, loans and insurance.

For MSMEs this is particularly beneficial, as it provides them with an opportunity to obtain financing to help them scale up.

Innovators in developing markets are combining lowcost IoT technologies with seamless digital payments and new business models like POD to provide consumers with previously inaccessible, capitalintensive products that enhance their everyday lives while simultaneously placing them on a path to financial inclusion.

Solar energy providers have been early adopters of Pay on Demand to expand electricity access to underserved communities through flexible payment plans.

Driving financial inclusion through Pay on Demand Since the late 2000s, Pay on Demand providers operating in the solar home industry have improved affordability and access to off-grid electricity for underserved communities. A customer of POD solar not only gains access to electricity, but also benefits from a business model that creates the enabling environment for financial inclusion. This holds true across all industries where Pay on Demand models gain traction. www.businessday.ng

Pay on Demand models help establish a digital transaction history through which credit solutions can be derived.

By pairing digital payments with IoT technology, Pay on Demand providers transform from retailers and distributors to financial service providers.

Providers build internal credit risk models on new customers who do not possess a financial history through analysis of behavioural, consumption, and employment-related data collected from IoT sensors and business operations. In fact, many providers share these internal credit models with credit agencies to help customers build relationships with formal financial institutions.

Additionally, Pay on Demand providers offer their creditworthy customers add-on consumer or financial products outside of their core offerings.

This allows customers to build their economic stack, a combination of products and services that improve everyday life and overall economic outlook. While electricity is a core-component of the economic stack and can be enabled through POD solar in underserved communities, other products like smartphones and services can be similarly provided through Pay on Demand models. Additional products, such as agricultural equipment, can increase incomes and improve livelihoods

for households. An Acumen study recently reported that one POD solar provider’s business customers who used their product claimed an increase of store income by 60 percent.

Access to the formal financial system has tangible benefits to customers. These can include convenient and secure payment methods to transact with merchants and in marketplaces, consumer protection against fraud and abuse, and financing for a new home, an education program or a small business loan.

pay by sending the merchant ID associated with the QR code.

Moreover, consumers can select from any of the available mobile money or banking apps used in the country. The Mastercard QR solution can pull funds from a variety of accounts including mobile money wallets, prepaid cards, and bank accounts leveraging Mastercard Send technology.

In case of the most recent launch with Airtel & Samsung, the consumers will use their Mastercard virtual card issued on their Airtel mobile money account to pay in a simple and As a leading technology secure way for the payment. company in the global payments industry, we’ve been busy Scaling the Pay on Demand making this a reality for Africans. model to more industries In October 2018, we partnered with Centenary Bank and Innovators are working to bring M-KOPA Solar and rolled-out a the Pay on Demand model to first of its kind energy solution adjacent industries and solve in Uganda. M-KOPA, which critical development challenges. already provides affordable, The Pay on Demand model safe and clean energy to can be applied to virtually any three million people in East product or service. To identify Africa launched Mastercard’s where Pay on Demand models Masterpass Quick Response will create the most impact, (QR) payment technology in providers need to understand Uganda to facilitate and extend the priorities of customers and the reach of its ground-breaking communities, and design with those users in mind. Moreover, pay-as-you-go solar program. as providers grow beyond core Customers have the option to products to new markets and make daily payments or top up industry segments, they must their solar accounts easily on any define and execute viable gomobile device. On smartphones, to-market strategies. Some of consumers can scan a Quick the industries where we see Response (QR) code to make this model most relevant are the payment. On feature and Electricity, Sanitation, Cooking, Transit and basic phones, consumers can Agriculture,

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Personal/household Devices.

Pay on Demand providers must have the right capabilities and partners to grow As providers scale across markets and industries, partnership will be critical for effective go-tomarket strategies. For instance, partnership with players who can provide interoperable payments solutions will be important in driving consumer adoption as it reduces consumers’ payment barriers. Providers will also need to be prepared to handle increased volumes of data associated with growth and be able to effectively create value from that data.

There are an increasing number of specialized actors available to help providers develop and deliver Pay on Demand solutions.

Additionally, government and development organizations have an important role to play in market creation and shaping regulatory environments.

Through Mastercard’s Pay on Demand digital solutions, people can pay for what they need and build a credible payment history, connecting them to other financial services, such as credit, loans and insurance.

Used ethically, data becomes a key enabler to drive inclusion and protect the consumer. This is our way of using connectivity to drive a new wave of digital and financial inclusion where it can make a difference.

Wednesday 28 October 2020

BUSINESS DAY

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28 BUSINESS DAY

Wednesday 28 October 2020

NEWS

CACOVID says distribution of palliatives to states began in June

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L-R: Usman Malah, director, human capital and administration, Nigerian Communications Commission, (NCC) ; Blessing Olaifa, president of Nigeria Information Technology Reporters Association (NITRA), Abuja chapter; Mohammed Ajiya, president/CEO, Digital Bridge Institute (DBI); Ikechukwu Adinde, director of public affairs, NCC, and Usman Mamman, head, human capital, NCC, during the training for Nigeria information technology reporters, yesterday, at Digital Bridge Institute, Abuja.

Nigerians now spend nearly twice more on Jollof BUNMI BAILEY

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he cost of preparing a pot of Jollof rice, a popular delicacy among Nigerians, is now N7,167, which is almost twice what it used to be four years ago, no thanks to the country’s protectionist policies and higher energy cost following the removal of subsidies.

SBM Intelligence, Africafocused geopolitical research firm, in its October 2020 Jollof index, estimates that, on the average, the cost of making Jollof rice in the country has increased by 75.4 percent in the last four years to N7,167 in September 2020 from N4,087 in July 2016.

This means households on the country’s new minimum wage (N30,000) will spend 24 percent of their monthly income on just one pot of Jollof rice, up from 23 percent of the previous N18,000 minimum wage four years ago.

“In the period under review from July to September

…as it costs N7,167 per pot 2020, two key policy changes (forex restriction on importation and increase in energy prices driven by the removal of petrol subsidies and the raising of electricity tariffs) in addition to the continued border policy have forced the prices of food commodities to begin to rise sharply again,” the report states.

The SBM Jollof Index is a composite index that tracks how much it costs to make a pot of Jollof rice across 13 markets in the six geopolitical zones for a family of five or six, the average rural and urban family size in Nigeria.

The Jollof meal, a mixture of rice, tomatoes and spices, is practically a national dish in Nigeria and one meal that is enjoyed in every part of the country. While the Jollof index has treaded close to food inflation since collection began, it has provided a simple way of communicating the realities of inflation to the Nigerian public.

The commodities that make up the index are rice, groundnut oil, chicken or turkey, beef, seasoning, pepper, tomatoes, salt and onions.

In all the states survey, there has been a significant increase in the cost of making Jollof rice since the last report. Across the 13 markets surveyed around the country, a pot of Jollof rice for a family of six is cheapest in Awka, Anambra State costing N5,620 and most expensive in Wuse II, Abuja, costing N9,600.

“Perhaps the reason behind this is that operational costs are more for the former than for the latter. Furthermore, people in Awka are more easily able to substitute buying some of the commodities with products from their subsistence agriculture,” the report states.

The more expensive Jollof rice mirrors the trajectory of food inflation in Africa’s biggest economy. The National

Bureau of Statistics (NBS) said food inflation printed at 16.7 percent in September 2020, the highest in almost three years.

Before the closure of land borders in August last year, a bag of imported rice costs N14,500-N15,000, while a bag of locally produced rice cost N16,000-N17,000. But after the closure, a bag of imported rice cost N26,000 and a locally produced bag of rice cost N18,000 to N19,500.

Also, the price of a kilo of imported turkey increased to N1,700 from N1,300, while a kilo of imported chicken increased to N1,500 from N1,100.

And now with the forex restriction on importation and energy subsidy removal, the price of these commodities keeps increasing. Currently, a bag of foreign rice now cost about N35,000, a kilo of turkey costs around N1,800-N1,900 and a kilo of chicken costs N1, 600-N1,700.

AGF says judiciary role vital in banking transactions ...as CJN seeks timely dispensation of justice in commercial transaction FELIX OMOHOMHION, Abuja

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he Attorney-General of the Federation (AGF) and minister of justice, Abubakar Malami, on Tuesday, said that the country’s judiciary has a crucial role to play in securing banking transactions in movable assets and credit reporting.

The AGF said it has become a collective duty to ensure that the potential and prospects of credit delivery are optimally realised in the country.

Also, the Chief Justice of Nigeria (CJN), Ibrahim Tanko Muhammad, said the financial sector and the entire economy stand to benefit from quick dispensation of justice in commercial or business transac-

tions.

Both spoke at the opening of the World Bank/CBN 2-day specialised virtual workshop for judicial officers on Secured Transactions in Movable Asset (STMA) and Credit Reporting Reforms in Nigeria.

The virtual workshop was themed: “The role of the judiciary in ensuring the effectiveness of STMA and credit reporting act”.

According to the minister, the STMA established the National Collateral Registry, to be responsible for receiving, registering and storing information and security interests in movable assets and provide access to persons who may seek information on security interests from the Registry; and performing other functions prescribed by regulations unwww.businessday.ng

der the act.

“The on-going economic development strategy requires the joint efforts of the central bank, the judiciary, and all stakeholders to make giant strides, he said.

The minister while sharing his perspective on the topic, added that “credit reporting reforms in Nigeria require special attention from the judiciary because of its critical position in the economy given that movable assets are involved. Small businesses require access to credit to thrive and the rights of the relevant parties to a transaction must be protected.”

The AGF, who stressed the importance of the judiciary to the financial sector, noted that its role cannot be overemphasized.

“Against this background,

I wish to state that potential investors often hinge their decisions to come to Nigeria on enforceability of their rights in any commercial venture. Therefore, courts must be versed with credit transactions principles, especially with the passage of the STMA Act and Credit Reporting Act, 2017.

“This means that there is need for the judiciary to be strengthened to help the financial sector protect credit transactions. The financial sector and indeed the entire economy stand to benefit from quick dispensation of justice in commercial or business transactions,” he added.

Meanwhile, the CJN said the country’s financial sector would benefit from quick dispensation of justice in commercial transactions.

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he private sectorled coalition against COVID-19 (CACOVID) has urged Nigerians involved in the wanton destruction of public and private properties and even looting of the warehouses where Covid-19 palliatives are kept to desist from such acts in order to allow the states to proceed with a peaceful and fair distribution of the palliatives to the neediest and most vulnerable in the society.

The coalition, in a statement, explained that though it embarked on the palliatives effort in April, the first deliveries could not start until June this year to the state governments.

“However, as of October 2020, a sizable portion of the items had been delivered but yet to be distributed by the governors. Although various states and the FCT had commenced flag-off of the distribution of the food items since early August, some could not conclude the distribution as they were yet to receive complete deliveries of the items allotted to them,” CACOVID said.

In the statement signed

by Osita Nwasinobi, CACOVID explained that 1 0 m i l l i o n v u l n e ra b l e Nigerians were targeted to benefit from the palliatives sent to the state governments across all the 774 local government areas in the country.

According to the group, each household is supposed to receive 10kg bag of rice, 5kg bag of garri/ semolina, one carton of

pasta, two cartons of noodles, 5kg of sugar, and 1kg of salt adding that it worked with state governors and the minister of the federal capital territory to ensure food items reached the beneficiaries.

In the wake of the coronavirus pandemic in Nigeria, it would be recalled that the Nigerian private sector assumed a leading role in the fight against the pandemic in the country.

On March 27, CACOVID, spearheaded by the Central Bank of Nigeria, the Aliko Dangote Foundation, and Access Bank, was established to mobilise private sector resources towards supporting the government’s response to the crisis.

CACOVID also helped to mobilize private sector thought leadership, raise public awareness and buy-in for Covid-19 prevention, and provide direct support to strengthen the healthcare sector’s capacity to respond to the crisis.

CACOVID, through the statement, further stated that: “As of today, October 26, 2020, some states have confirmed completion of their distribution while others were in the process of proceeding with the distribution before these lootings took place.”

The coalition assured that it would publish the full delivery schedule and flag-off date by each state.

It also assured that KPMG, its external auditor, is on the verge of completing the audit of all donations as well as food and medical items procured.

African ministers of finance to push for investments in water, sanitation MODESTUS ANAESORONYE

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he Sanitation and Water for All (SWA) global partnership is organising a meeting of African ministers of finance to agree on smart investments in water, sanitation and hygiene for the region.

The 2-hour meeting bille d for November 4 will be live streamed and simultaneous interpreted in English and French.

The meetings will underscore the crucial role of water, sanitation and hygiene to the African economy, population and environment during and after Covid-19, and will offer ministers practical options for financing the sector.

The Africa FMM is one @Businessdayng

of three regional finance ministers’ meeting to be organized by SWA in 2020: Latin America and the Caribbean on 18 November, and Asia and the Pacific on 2 December.

The SWA Africa FMM will be co-convened by global partners UNICEF and the Global Water Practice of the World Bank, as well as regional partners, the African Development Bank and the African Ministers’ Council on Water.

The SWA Africa FMM is preceded by a 2-month preparatory process that relies on multi-stakeholder dialogue at countr y level to ensure that finance and sector ministers are briefed and ready to actively participate in the FMM.

Wednesday 28 October 2020

BUSINESS DAY

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Wednesday 28 October 2020

BUSINESS DAY

Live @ The Exchanges Market Statistics as at Tuesday 27 October, 2020

Top Gainers/Losers as at Tuesday 27 October, 2020 LOSERS

GAINERS Company

Closing

Change

NEM

N2.06

N2.03

-0.03

DEALS (Numbers)

1.55

WEMABANK

N0.58

N0.57

-0.01

N16.9

0.9

ABCTRANS

N0.3

N0.3

0

VOLUME (Numbers)

N7.6

N8.3

0.7

BERGER

N6.7

N6.7

0

VALUE (N billion)

N30.65

N31.25

0.6

CHAMPION

N0.89

N0.89

0

MARKET CAP (N Trn)

Closing

Change

FLOURMILL

N24.2

N26.5

2.3

CONOIL

N15.8

N17.35

GUINNESS

N16

CADBURY GUARANTY

Company

ASI (Points)

Opening

Opening

28,980.29 5,283.00 385,598,796.00 2.914 15.147

Equity investors book N106bn gain as market remains in green zone Iheanyi Nwachukwu

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igeria’s equities market remained in the green zone on Tuesday October 27 as investors in their buy mood further took advantage of low prices of attractive counters.

Investors booked about N106billion gain amid inflow of funds by local fund managers due to the unattractive yields in the fixed income market.

The market’s positive return year-to-date (YtD) increased to +7.97 percent.

At the close of trading session on Tuesday, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) increased by +0.70 percent to close at 28,980.29 points as

against preceding trading day low of 28,777.96 points while market capitalisation increased by N106billion, from N15.041trillion to N15.147trillion.

In 5,283 deals, investors exchanged

385,598,796 units valued at N2.914billion. Banking stocks were actively traded, led by FBN Holdings Plc, Access Bank Plc, Fidelity Bank Plc, ETI Plc and UBA Plc. Flour Mills Nigeria Plc

led the gainers after its share price moved from Monday’s low of N24.2 to N26.5, adding 2.39.50 percent.

Conoil Plc followed after its share price rose from N15.8 to N17.35, adding N1.55 or 9.81 percent.

Guinness Nigeria Plc increased from N16 to N16.9, adding 90kobo or 5.63 percent.

Cadbury Nigeria Plc also rallied from N7.6 to N8.3, up by 70kobo or 9.21 percent while GTBank increased from N30.65 to N31.25, adding 60kobo or 1.96 percent.

As sectoral performances print further positive, analysts anticipate continued upward performance, though the possibility of profit taking following recent gains cannot be ignored.

Universal Insurance pays N1.2bn claims in 5 years Modestus Anaesoronye

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niversal Insurance Plc has paid N1.2 billion as claims to its policyholders that included losses in the last five years.

The breakdown of the claims paid shows that the company paid N147.8 billion in 2015 financial year; paid N111.1 million in 2016; N330.3 million in 2017; N334.2 million in 2018, while it settled N338.2 million in 2019.

Within the period of five years, the company paid N182.3 million claims on Bond, as it paid N11.4 million in 2016, N13.3 million in 2017, N5.9 million in 2018 and N151.7 million in 2019.

Similarly, it settled Engineering claims worth N178.1 million; fire claims to the tune of N412.1 million; general accident claims gulping N299.8 million, while aviation claims amounted to N10 million even as Marine insurance claims was N43.9

million.

Marine Hull insurance attracted N5.6 million claims with motor insurance attracting N156.8 million claims.

Speaking on this development, the managing director, Universal Insurance Plc, Ben Ujoatuonu, noted that the Company is presently meeting its obligations especially, in the area of prompt claims settlement to clients and other stakeholders, adding that the insurer is liquid enough to carry out its civic responsibilities.

“We have a competitive edge in claims settlement through investment in state of the art communication and information technology

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thereby enhancing our operational efficiency and offer to pay off legitimate claims in a jiffy after the execution of discharge voucher. We have a tractable but reduced claims process circle,” the CEO said.

He noted that the firm is liquid to underwrite big insurance businesses in insurance sector of the financial industry, saying, the company is eyeing the retail market and will soon unveil some retail insurance products to deepen insurance penetration. Moreover, he said, the company has also imbibed the culture of training and retraining of its workforce as it believes in the human capital development, moti-

vation and empowerment to drive policies and create values.

Universal Insurance Plc Policyholders were in jubilant mood, as they attested to the claims paying ability of the insurance firm.

Meanwhile, its customers have continued to applaud the company’s claims paying ability Kayode Okunoren, chairman, Manny Insurance Brokers Limited, disclosed that Universal Insurance Plc. has a rich heritage of professional practice in Nigeria, believing that, this heritage is being sustained.

“It is the belief of Management that the desire of Universal to forge collaborative relationship with brokers through the Nigerian Council has f Registered Insurance Brokers (NCRIB) platform will be achieved,” he stressed.

He stated that the insurer has etched its name amongst the most brokers’– friendly companies operating today in the Nigerian market.

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Global market indicators FTSE 100 Index 5,733.45GBP -58.56-1.01%

Nikkei 225 23,485.80JPY -8.54-0.04%

S&P 500 Index 3,396.87USD4.10-0.12%

Deutsche Boerse AG German Stock Index DAX 12,045.07EUR -132.11-1.08%

Generic 1st ‘DM’ Future 27,480.00USD -101.00-0.37%

Shanghai Stock Exchange Composite Index 3,254.32CNY +3.20+0.10%

PEARL Awards Nigeria steps down 2020 awards Iheanyi Nwachukwu

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n response to the prevailing COVID-19 Pandemic which has affected every facet of the national and global economies, the Board of Governors of PEARL Awards Nigeria in conjunction with the Central Working Committee has resolved to step down the 2020 PEARL Awards Nite.

According to a statement

by Olalekan Adekoya, Secretary, PEARL Awards Board of Governors, the decision to step down this year’s Awards was necessitated by the horrendous effect of the pandemic both on businesses and humanity, which has negatively impacted private sector organizations and government institutions alike, coupled with the subsisting need for social distancing globally.

In the opinion of the Awards Board of Governors, the capital market as a critical integral part of the national economy is deeply affected by the disaster while

its market activities cannot be isolated from the economic activities of the larger society. The PEARL Awards Nigeria as a responsive organization has deemed it fit at this critical time to strictly adhere to the government directive and align its interest with the current realities in our economy by stepping down this year’s Awards.

It is regrettable to note that the Awards Secretariat in conjunction with the Central Working Committee had earlier commenced intense preparation for this year’s Awards which ought to be the 25th anniversary edition, but the plan was brought to an abrupt end due to the pandemic that ravaged the world.

The PEARL Awards is hopeful that the concerted efforts being made by the governments at national and international levels to find a lasting solution to the pandemic will soon yield the desired results and return on our economy on the path of stability and sustainable growth.

Law Union & Rock advances recapitalisation plan Modestus Anaesoronye

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aw Union & Rock Insurance Plc is set to commence the payment of N1.23 per share for every 50 kobo ordinary share to shareholders following an approval by the Nigerian Stock Exchange (NSE) to delist its shares from the main board of the Exchange.

The delisting from the Exchange paves way for the new investors of the company, Verod Capital Management through the Kanuri LUR SPV, to pay off existing shareholders, which completes an aspect of the takeover.

With this development, the company says it is not only forging ahead in its recapitalisation plan, it is also stronger than before based on its share capital, assets, profits among others in the 2019 financial year.

The proposed transaction as contained in the

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TIA is expected to involve the transfer of a total of 4,296,330,500 ordinary shares of 50 kobo each of law Union held by the shareholders in consideration for a cash payment of N1.23 per share.

The Board of Law Union and Rock secured the exit payment from its new investor in the quest to get full value for the investment of shareholders of the company.

Commenting on the company’s achievement and recapitalization plans, the Ademayowa Adeduro, managing director, Law Union, said: “The company has concluded the process to voluntarily delist its shares from the Exchange.

We filed a Certified True Copy (CTC) of Court Sanction with SEC and applied for withdrawal of registration of Law Union’s shares and delisting of the company’s share from the NSE’s main board.

Wednesday 28 October 2020

BUSINESS DAY

31

News Protest forces hospitals to step up response...

Continued from page 1

sustained in the aftermath of the protests.

Given the scattered violence countrywide, Osagie Ehanire, minister of health, ordered all federal tertiary hospitals not to reject any patient with evocative injury on account of inability to pay for service, to avoid needless loss of lives.

As opposed to demanding that victims of gunshot wounds present police reports and provide deposits, hospitals were quicker to save victims’ lives this

time, focusing on the case at hand.

Some analysts consider it a smart way of averting the anger of rampaging citizens at a time when the national mood was already tensed up.

Both government hospitals and private hospitals rose to the occasion, with some organising makeshift tents to save victims who grew in number within a short period.

The Lagos University Teaching Hospital (LUTH), which is the largest tertiary hospital in Lagos, only needed information on what transpired to roll out emergency actions. The triage system was effectively accelerated to speed up intervention.

To expand its capacity to admit fresh emergency cases, the Lagos State University Teaching Hospital (LASUTH), Ikeja and the Federal Medical Centre, Ebute-Metta erected tents outside their medical and surgical emergency wards.

Kelechi Otuneme, LUTH’s public relations officer, speaking on the development, assured that the hospital has structures in place to sustain prompt clinical intervention during emergencies.

“During COVID-19, LUTH has treated more than 500 patients without charge. We dedicated about 120 beds to COVID-19 patients. There have always been positive trends and we will continue

to sustain it,” Otuneme said.

“All over the world, there is no hospital that has adequate space for accident and emergency. When the emergency is filled up, patients have to hold on until we admit some of the ones in the emergency or discharge them,” he said.

Despite a ‘Compulsory Treatment and Care for Victims of Gunshot Act’ signed in 2017, accident and gunshot casualties in Nigeria still die due to hospital rejections.

In 2019, Othniel Anselm, a Twitter user, narrated how his sister and her friend who were hit by a drunk driver died after a Nigerian Air Force Hospital in Jos, Plateau State, failed to attend to them without a police report.

But following the shootings at the Lekki Toll Gate on Tuesday, October 20, private hospitals including Grandville Trauma Centre, Ajah; Doren Specialist Hospital, Ajah; Reddington Hospital, among others, were quick to respond.

However, not much could be done immediately in the instances of victims whose degree of injury needed an X-ray assessment or blood donation.

“The #EndSARS movement and the #EndSars protests have taught us that we have each other’s back. May God heal the wounded, console the grieving and heal our fatherland,” Doren Specialist Hospital tweeted in a show of empathy with victims.

When the #EndSARS protest shifted focus from police brutality to other perennial social problems, health reform was listed among the fresh set of seven demands of protesters from the Federal Government.

They asked that the government declare a state of emergency on the health sector and increase budgetary allocation to the health sector by 50 percent.

“We demand mandatory health insurance for the vulnerable population in our society as NHIS is not doing enough to serve all Nigerians.

We demand that adequate

#EndSARS: Why many insured may not be ...

Continued from page 2

theirclaimsthroughthecompany’s website and customer care centre, it assured the aggrieved policyholdersthattheywouldbe attended to passionately.

Daniel Braie, managing director/CEO, Linkage Assurance plc, said the company’s system for prompt payment of claims was already in place to pay all valid claims.

He however noted that the #EndSARS incident was covered under policy extension like riot, civil commotion and other kinds of unrest.

Yinka Adekoya, CEO, Coronation Insurance, has also reassured the firm’s clients and the general public that following the recent monumental loss of human life and damage to property and assets across the nation, it had shifted its highest gear to

get her customers the most appropriate help as quickly as possible, at this time of need.

She said, “We believe that insurance companies must ensure their clients do not have to wait for assistance after a disaster occurs by proactively collating information of damage and losses as well as responding to claims with speed and precision.

“We are well aware that our customers are dealing with numerous difficulties at this time and the last thing they want is a painful and challenging claims process.

“We want our customers to return to their normal way of life as soon as possible, and have put in place a claims response platform for real-time communication and easy sharing of loss evidence to fast-track claims processing.” www.businessday.ng

L-R: Gbenga Omotosho, director of research, National Judicial Institute (NJC); Philip Yusuf, representative of the governor of the Central Bank of Nigeria (CBN); Osa Amadasun, deputy director, development finance department, National Collateral Registry, and Niyi Ayoola-Daniels, founder, Juries Law Office, during the e-workshop for judges organised by NJC,CBN and World Bank Group in Abuja, yesterday.

#EndSARS: Border re-opening offers...

Continued from page 1

began.

Similarly, a 50kg basket of tomatoes costs N8,000 to N10,000 before the border closure, but its price at Mile 12 Market in Lagos is N12,000 to N14,000 today. A tomato seller at the market says there have not been fine and good tomato crops since the closure of the border in 2019.

Also, a 50kg basket of pepper, which costs N5,000 to N7,000 before the border closure now goes for N12,000 to N15,000, BusinessDay learns.

“The cost of every food item has doubled since August last year. It has been the survival of the fittest,” Raphael Nwaenuigwe, an Anambra State-based poultry farmer, who also plants cassava and vegetables, states.

Cost of living has been on the rise since August 2019.

Inflation in Nigeria stood at 12.82 percent in July 2019 before the closure of the land border, but it shot up to 13.71 percent in September 2020.

Food inflation hit 16.66 percent in September 2020 as against 15.48 percent in July 2019, according to the National Bureau of Statistics (NBS).

The increase in the food index was caused by risen prices of bread, cereals, potatoes, yam

and other tubers, meat, fish, fruits as well as oils and fats.

“The decision by the government to close the border was the catalyst that spurred the consecutive rise in inflation from August/September last year,”said Omotola Abimbola, a macroeconomist at Chapel Hill Denham after the release of September inflation figure.

While food prices are rising, incomes of households have been declining. About 83 million Nigerians are poor, according to the NBS, with four out of 10 people having real per capita expenditure below N137,430 per year, which translates to N376.5 per day, still below $1.

COVID-19 has pushed many Nigerians out of jobs and protest is expected to worsen that.

The Lagos Chamber of Commerce and Industry (LCCI) has asked the government to re-open the border to cut rising prices at a time when the economy is lagging.

Toki Mabogunje, president, LCCI, explained at a dialogue session with Vice President Yemi Osinbajo recently that the closure of the land borders had enormous implications for the economy.

“The indications are now that the closure is indefinite.

Fear heightens as police, LASTMA officers...

Continued from page 2

and Agege Motor Road. On each of these routes, motorists did not find it easy.

Lagos, in the last few days, had come under severe attacks arising from the #EndSARS protest that led to free looting of Covid-19 palliatives, destruction and burning of private and public assets, including about 17 police stations, local government secretariat, hundreds of BRT buses, court, shopping malls, tollgates, among others.

In some of the police stations torched and vandalised, arms and ammunition were said to have been carted away by the arsonists.

Tukur Buratai, the chief of army staff, had charged senior

military officers manning various formations across the country to beef up security around public assets and deal decisively with any person that constitutes a threat to national interest.

It could not be ascertained what was responsible for the scanty presence and total absence of policemen in different parts of the state, as Muyiwa Adejobi, spokesperson of the Lagos police command, told BusinessDay his colleagues were working.

“They (policemen) have been asked to resume to their respective duties following the directive of the IGP. So, policemen are all over, except you don’t notice them. We also have convoy patrols, they

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While we share the concern of government on issues of security and smuggling, we believe that the indefinite closure of land borders is not the solution to the problem,” she said.

While the border remains shut, price of local rice has been rising rapidly.

“It means that quantity has not improved. Apart from the fact that agriculture supply is inelastic, the fundamental issues in agriculture have not been addressed,” said an economist, who does not want to be quoted.

“The best bet for Buhari is to re-open the border to allow free flow of goods and food.

Then, make local producers compete. You do not make them competitive by shutting the borders, because you are shielding them from competition, which is a bad strategy. If you close the border till 2025, there is no evidence that local production will rise.”

Analysts see border closure as a strategy to enrich some classes of farmers at the expense of the majority of consumers. However, supporters of the policy say it is yielding results.

“Lots of rice farmers are increasing their production areas because there is a huge market for paddy since the border closure,” Aminu Goronyo, national president, Rice

Farmers Association of Nigeria, told BusinessDay earlier in the year.

Gro Intelligence, a data firm, estimated Nigeria’s rice output at 4.9 million tons in 2019, less than 7 million tons demanded. Data show Nigeria is yet to attain food sufficiency on any crop.

Data from Agriculture Ministry show that Nigeria is the largest producer of yam with 40 million metric tons per annum, but yam demand in the country is 60 million metric tons per annum (MT), leaving a gap of 20 million MT. Nigeria produces 42 million MT of cassava but has a demand of 53.8 million MT of the crop, leaving a gap of 11.8 million MT. National supply for Irish potato is put at 900,000MT per annum but with a demand of 8 million MT and a gap of 7.1 million MT. Similarly, local production of sweet potato is estimated at 1.2 million MT, while demand is 6 million MT, leaving a gap of 4.8 million MT. More so, Nigeria produces 400,000MT of wheat annually but with a demand of 4 million MT, which leaves a gap of 3.6 million MT. Maize production in the country is put at 10.5 million MT but demand is 15 million MT, leaving a gap of 4.5 million MT.

move round the state, area command by area command.

So, we are fully on ground,” Adejobi said.

Lagosians are at a loss why LASTMA officials are off the roads, more so when SanwoOlu said Lagos had started the healing process after all that happened in the state in terms of loss of lives and destruction of public and private places, which the governor said, would require over N1 trillion to rebuild.

The general manager of LASTMA, Olajide Oduyoye, did not take his calls nor respond to text sent to his GSM phone inquiring about the absence of his men on the roads.

But Agboola reasoned that LASTMA officials might be off the road for fear of attack by hoodlums, or because of the

warning that their boss issued to them on how to conduct themselves in the course of their duty in order to avoid public opprobrium.

On the flipside, while motorists and commuters are lamenting the absence of these officials and the challenging traffic situation that follows, mini-bus (Danfo) drivers, tricycle and motorcycle (Okada) riders are happy with the way things are on the roads.

“We are happy with the absence of these officials on the roads; see how the roads are free everywhere; you can see that these people are the cause of the traffic (gridlock) we have in Lagos. Now, you can even drive closing your eyes,” a Danfo driver who identified himself simply as Oliver, said Monday night in Ejigbo, a Lagos suburb.

@Businessdayng

Country IN FOCUS

BUSINESS DAY Wednesday 28 October 2020 www.businessday.ng

Investors rush back to Egypt, buy over $20bn in debt while Nigeria struggles

W

hile peer Nigeria is str uggling, foreign debt investors have flocked back to Egypt, reversing billions of dollars of outflows in the spring sparked by the coronavirus pandemic.

Finance minister, Mohamed Maait told the Financial Times that foreign investors now held more than $20bn in Egyptian debt.

It is an astonishing reflection of confidence in the only regional economy that appears to be pressing the right buttons when compared to Nigeria’ Africa’s biggest economy. A working paper by IMF’s Amr Hosny said as at end of 2018, foreign investors held a little below 20% of all Nigeria’s outstanding domestic debt instruments but that has changed significantly with investors in flight.

Egypt is the only regional economy that has grown this year despite damage to key sectors such as tourism.

Analysts had reported that international holdings of Egyptian debt fell to $7bn in May. “We see this in the reaction of investors when we go to international financial markets and in the way they receive issuances of Egyptian treasury bills,” said Mr Maait in an interview in which he hailed the government’s economic record despite the health crisis.

The IMF reported growth of 3.5 per cent in the fiscal year that ended in June Although Egypt imposed a relatively loose lockdown, the pandemic has slowed growth and decimated the tourism industry, a major source of foreign currency that brought in $13bn last year.

Remittances from Egyptians working abroad, chiefly in Gulf oil-exporters hit by the drop in crude prices as Covid-19 curbed demand, are also expected to plunge.

Unemployment rose from 7.7 per cent to 9.6 per cent in the second quarter this year, according to official figures.

But Egypt is the only country

in the Middle East and north Africa region to have avoided a contraction in 2020, the IMF said this month.

“Growth is still positive and can be considered very good at a time of corona and in comparison with others,” said Mr Maait, who forecasts an expansion of 2.8 per cent to 3.5 per cent in the current fiscal year.

Egypt’s agricultural sector, which accounts for a quarter of gross domestic product, was not affected by the pandemic.

The swift resumption of public investment, mostly in infrastructure, after a brief pause until early April, also boosted growth, according to Mohamed Abou Basha, head of Macroeconomic Analysis at EFG-Hermes, the regional

investment bank.

Construction and public works have been leading drivers of expansion in recent years, economists say. Even before the pandemic Egypt had been able to lure international debt investors with some of the highest yields in the world.

Interest rates on the country’s six-month treasury bill sold on Thursday averaged 13.45 per cent. Foreign investors pulled more than half of their money from the Egyptian debt market after coronavirus struck, with their holdings of Egyptian treasuries plummeting to $7bn in May from a peak of $20bn in February, said Moody’s Investor Service, the rating agency, in a report in August.

Sentiment improved after

‘‘

Construction and public works have been leading drivers of expansion in recent years, economists say. Even before the pandemic Egypt had been able to lure international debt investors with some of the highest yields in the world

the country secured around $8bn in IMF funding, including almost $3bn in emergency finance. Earlier on, Nigeria received $3.4bn in credit from the same IMF but it was not enough to stem the exit of foreign portfolio investors from the country.

“Investors in Egypt’s debt market are lured by the elevated yields [and] also by the stable Egyptian pound . . . and commitment to reforms given the finalisation of a new IMF program,” said Mr Abou Basha.

Farouk Soussa, Middle East and north Africa economist at Goldman Sachs, said that despite Egypt’s debt pile, equivalent to 87 per cent of GDP, “there is confidence in the fact that most of it is domestic and there is a lot of capacity in the Egyptian banking sector to keep on rolling it over”.

Mr Maait said debt to GDP ratios were on a downward trend despite the impact of coronavirus. The country was also making progress on curbing its deficit, he said.

The measure widened to 7.9 per cent of GDP compared to a government target of 7.2 per cent in the fiscal year ending in June, according to official figures, but was below last year’s 8.2 per cent.

“It is true corona is slowing us down in reaching our aim,

but we continue to reduce the deficit,” he said.

“If I compare with others . . . their deficit has increased.” But the positive economic news has failed to translate into prosperity for ordinary Egyptians, critics say.

Official figures show that even before the pandemic, poverty had increased following a devaluation in 2016 and austerity measures linked to an IMF bailout.

The government statistics agency said in July that half of Egyptian families have had to borrow money to make ends meet since the start of the Covid-19 crisis.

Mr Maait acknowledged the economy faced difficulties in reducing poverty and creating jobs. “There are more than 100m people in Egypt, and every year we add 2.5m newborns.

The rate of economic growth is not keeping up with population growth,” he said. But the government was making progress, he added.

“The main thing is where we were and where we are now. We went through a tough period [in the early part of the decade] when there were severe gas and electricity shortages.

These problems have now been resolved.” Cairo was seeking to boost the economy by continuing monthly cash transfers to unemployed informal workers until the end of the year, increasing teachers’ salaries and disbursing subsidies to exporters, Mr Maait said. In the longer term it was building infrastructure and starting to increase spending on health and education.

“Like the rest of the world, I worry that tourism will not recover, or that international trade will not be restored to health,” he added.

“We are seeing how we can boost our exports, in agriculture for example, and there are initiatives to [encourage] tourism so that when there is an improvement in the coronavirus situation we can help speed up the recovery. But people will have to learn to coexist with the virus.”

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