BusinessDay 29 Nov 2019

Osinbajo, five governors to grace BusinessDay CEO Forum … with Peter Tufano as keynote speaker

JOSHUA BASSEY

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ice President Yemi Osinbajo and five Nigerian governors are among personalities in business and governance that will attend and offer insights at the 2019 edition of BusinessDay CEO Forum. The event holds Tuesday, December

3, at the Lagos Continental Hotel, Victoria Island.

The CEO Forum is an annual event that brings together business leaders to dissect key trends, best practices and successful business models.

It has over the years provided a unique platform

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Gov. Obaseki

Gov. Abiodun

Gov. Umahi

Gov. Ihedioha

Gov. Sanwo-Olu

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news you can trust I **FRIDAY 29 NOVEMBER 2019 I vol. 19, no 446

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L-R: Daniel Obianyor, manager, origination business development, NLNG; Abel Nsa, assistant director, domestic gas obligation, Department of Petroleum Resources (DPR); Tengi George-Ikoli, program coordinator, Nigerian Natural Resource Charter; Odein Ajumogobia, chairman, expert advisory panel, Nigerian Natural Resource Charter; Audrey Joe-Ezeigbo, president, Nigerian Gas Association; Adeoye Adefulu, partner, Odujurin and Adefulu; Chichi Emenike, head, gas venture, Neconde Energy Limited; Wole Ogunsola, department manager, gas production, gas division, and flare monitoring, Department of Petroleum Resources (DPR), and Ayodele Oni, partner, Bloomfield Law Practice, at the BusinessDay oil and gas roundtable in Lagos, yesterday. Pic by Olawale Amoo

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L-R: Tunji Olanipekun, managing director, Energy Works Technology; Ernest AzudialuObiejesi, group managing director, Nestoil Group, and Modestus Nwosu, general manager, Ikike Project, Total E & P Nigeria Limited, at the First Steel Cut ceremony to flag off the fabrication of pressure vessels by EWT for Total E & P as part of Ikike Oil Field Development in Port Harcourt.

Buhari resends $29.9bn loan request to NASS, still without draft plan details of borrowing plan not yet available - Senate spokesman See story on P.2

‘Smart regulation is missing piece in unlocking Nigeria’s gas economy puzzle’

… Time is running out on Nigeria Ajumogobia …FG should get out of gas pricing - president of NGA

See story on P.38

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Friday 29 November 2019

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news Weak economy impediment to CBN’s lending policy - Moody’s

… says it is credit negative for lenders ENDURANCE OKAFOR

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L-R: Professor Kenneth Amaeshi, Chair in Business and Sustainable Development, University of Edinburgh; Omar Shaikh, Managing Director, Global Ethical Finance Initiative; Folake Ani-Mumuney, Group Head Marketing & Corporate Communications, FirstBank; Michael Paris, Managing Director, FINTECH Scotland; Dr. Adesola Adeduntan, CEO, FirstBank; Professor Christine Bamford, Founder, Women Coin; Dr. Emmanuel Ogbonna at the African forum breakfast meeting on Sustainable Business held at the University of Edinburgh, Scotland.

Sale of Abuja Disco misses deadline as consortium fails to raise $20m DIPO OLADEHINDE

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ini Standard International Limited and the consortium of investors behind it appear well short of the requirements they must meet by close of business today to acquire the 60percent equity in Abuja Electricity Distribution company, AEDC. The controlling equity is up for sale at a price of $120 million dollars and Fini Standard and Thomas Etu, the business man who is backing it were given till the end of

today to pay $20m to open the door to a bank loan of $100 million which will allow the consortium to take over the Disco.

Etu is Chairman of the Fertilizer Producers and Suppliers Association of Nigeria and he has the enviable job of being major transporter for the phosphate which Nigeria gets from Morocco for its fertilizer scheme aimed at boosting agriculture in the country.

Senior bankers in Lagos told BusinessDay that it was now unlikely that the firm will be able to raise its equity

contribution of $20 million.

“We are aware the consortium members are talking to a number of financial institutions but so far there does not seem to have been a breakthrough and given that the deadline is end of Friday, one can assume that this bid will fall through,” one merchant banker told our reporter.

As part of the terms of the sale, it was agreed that “FSL will be required to make an upfront payment of $20,000,000 on or before November 30, 2019 into a dedicated escrow account

with the bank failing which the bank reserves the right to contact the reserve bidder.”

Apart from its inability to raise the equity, FSL is also facing the challenge of qualifying for the mandated approval from both the industry regulator NERC and BPE that are insisting that controlling stake transfers can only be made to parties with proven experience and participation in the sector.

The regulator is currently watching the on-going negotiation for the sale of both the Jos and Yola Discos.

oody’s Investors Service, a global credit rating agency, says the recent policies by the Central Bank of Nigeria (CBN) designed to spur economic growth through increased lending to the private sector will be constrained by the weakness of the economy.

Moody’s in an interview with BusinessDay on Thursday said the new directives would not be able to offer much support to the economy due to its current sluggish growth.

“It will be difficult for the recent policies by the central bank to really have a strong impact on the economic growth just by pushing the banks to lend. This is because the banks are taking on more risks due to the slow economic growth,” Aurelien Mali, vice-president senior credit officer, Sovereign risk group at Moody’s Investors Service, told BusinessDay in agency’s London office.

The Nigerian economy continued to expand at a sluggish rate in the third quarter of 2019 after state data agency, the National Bureau of Statistics (NBS), reported a 2.28 percent growth for the period.

While this is the fastest growth in four quarters, the GDP rate is lower than the

country’s population growth rate of 2.6 percent. This means that since 2015 Africa’s largest economy has been producing more people than it can feed.

The Central Bank of Nigeria (CBN) recently adopted the Loan-to-Deposit Ratio (LDR) policy to discourage banks from investing in government securities and force them to expand lending to the private sector to ramp up the struggling economy and boost jobs.

To that effect, the industry regulator raised the LDR of banks to 65 percent, after the September 30 deadline given to the banks to meet its 60 percent directive.

Nigerian banks have advanced loans to the private sector by well over a N1.1trn just in 3months to October following the 60-65percent LDR set by the central bank, according to figures from the regulator.

According to Peter Mushangwe, an analyst at Moody’s, the new derivatives from the central bank particularly the 65 percent loan to deposit ratio target, and the fact that banks are no longer allowed participation in some auctions in order to push them to lend to the household and SMEs, “is credit negative from the perspective that the economy is yet to grow at a very strong pace”.

•Continues online at www.businessday.ng

Buhari resends $29.9bn loan request to NASS, still without draft plan Onyinye Nwachukwu & Solomon Ayado, Abuja

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resident Muhammadu Buhari on Thursday resent to the Senate for approval a proposal to borrow $29.96 billion offshore to fund some critical projects - but still did not present a detailed draft plan for that loan request - a major reason the Bukola Saraki-led 8th National Assembly refused to approve it.

The President rather told the lawmakers that the loans would fund 39 emergency projects in the power, agriculture and transport sectors, and asked them to request further details from Zainab Ahmed, minister of finance, budget and national planning.

Apart from majorly addressing the nation’s challenges of infrastructure which the President had informed in the loan request to the 8th National Assembly, the loan was to execute other projects including the Mambila Hydro Electric Power Project, Railway Modernisation Coastal Railway Project (CalabarPort Harcourt-Onne Deep

Sea Port Segment), Abuja Mass Rail Transit Project (Phase 2), Lagos Kano Railway Modernization Project (Lagos-Ibadan Segment Double Track), Lagos Kano Railway Modernization Project (Kano-Kaduna Segment Double Track).

Other areas the loan was targeted to fund were Eurobond, Federal Government Budget Support, Social (Education & Health), Agriculture, and Economic Management & Statistics respectively.

However, in the new loan request Buhari resent to the 9th National Assembly and read by Senate President Ahmad Lawan, he revealed that the 8th National Assembly approved only a part of the External Borrowing request he forwarded to it in September 2016.

According to him, out of a total of thirty-nine (39) projects, only the Federal Government’s Emergency projects for the North East, (Four (4) States’ projects and one (1) China Exim Bank Assisted Railway Modernisation Project for Lagos – Ibadan Segment) were okayed. www.businessday.ng

This, according to him, stalled the Federal Government’s implementation of critical projects spanning across the mining, power, health, agricultural, water and educational sectors.

But a source in the 8th National Assembly when that request was rejected confided to BusinessDay then, that giving approval to the President’s request without an attached draft plan would amount to giving ‘anticipatory approval’ to the borrowing plan yet to be submitted to the National Assembly.

Buhari said in the resubmitted request: “Pursuant to Section 21 and 27 of the Debt Management Office (Establishment) Act, I hereby request for Resolutions of the Senate to approve the Federal Government’s 2016 - 2018 External Borrowing plan, as well as relevant projects under this plan.

“Specifically, the Senate is invited to note that: While I had transmitted the 20162018 External Borrowing Plan to the Eighth National Assembly in September, 2016,

this plan was not approved in its entirety by the Legislature, only the Federal Government’s Emergency projects for the North East, (Four (4) States’ projects and one (1) China Exam Bank Assisted Railway Modernisation Projects for Lagos – Ibadan Segment) we’re approved, out of a total of thirty-nine (39) projects.

“The Outstanding projects in the plan that were not approved by the Legislature are, nevertheless, critical to the delivery of the Government’s policies and programmes relating to power, mining, roads, agriculture, health, water and educational sectors.

“These outstanding projects are well advanced in terms of their preparation, consistent with the 2016 Debt Sustainability Analysis undertaken by the Debt Management Office and were approved by the Federal Executive Council in August 2016 under the 2016 – 2018 External Borrowing Plan.

“Accordingly, I have attached, for your kind con-

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sideration, relevant information from the Honourable Minister of Finance, Budget and National Planning the specific outstanding projects under the 2016 – 2018 External Borrowing plan for which legislative approval is currently sought.

“I have also directed the Minister to make herself available to provide any additional information or clarification which you may require to facilitate prompt approval of the outstanding projects under this plan,” Buhari stated in the letter.

According to details from the earlier document presented to the 8th NASS, the three-year external borrowing plan seeks concessionary debts and low-cost loans from multilateral agencies including the World Bank and the Chinese EXIM Bank.

The then Minister of Finance Kemi Adeosun said the plan which was supposed to span 2016-2018 seeks to access foreign loans with interest rate of 1.25 percent, offering four to seven years of moratorium and 20 years @Businessdayng

repayment period.

Other multilateral agencies that will be providing the loans are African Development Bank, and Japanese International Cooperation Agency (JICA). BusinessDay could not independently confirm whether anything has changed despite wide inquiries.

The spokesman of the Senate, Godiya Akwashiki, while fielding questions from journalists after the President’s request was read at plenary on Thursday, confirmed that the borrowing plan was not yet available.

He admitted that “the 8th NASS rejected the request because it didn’t come with the details of what the President wanted to use the money for”.

“The Senate President read another request letter for the borrowing plan. The life of the 8th Assembly has elapsed. The request of the President details would be made known when the request comes from the minister of finance,” he explained.

•Continues online at www.businessday.ng

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OAU honours Caritas Communications’ CEO

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EO of Caritas Communications, Adedayo Ojo, has been conferred with an Award of Special Recognition by the Faculty of Education, Obafemi Awolowo University, Ile-Ife, Osun State.

The award, presented at the 2019 professional induction of graduating students in the Faculty of Education, Obafemi Awolowo University, is in recognition of Adedayo Ojo’s contributions to the development of the Faculty of Education at the school and for his commitment to improving the lot of youths across the country.

“This award is for me, an encouraging pat on the back and coming from such an illustrious citadel of learning, with which I share a strong bond, makes it even more endearing.

I feel highly honoured to have been selected for my modest efforts and passion to see that the emerging generation has a strong foothold to keep this country on the right path,’’ he said at the award presentation.

He encouraged the graduating students to be good ambassadors of the university and of the country, “As you embark on another phase of your journey in life, hold fast to the tenets that you have acquired from this school and remember that you have a responsibility to protect your good name and that of this prestigious university.”

In his welcome address, the dean, Faculty of Education, Obafemi Awolowo University, Professor M.A. Adeleke, expressed gratitude to Adedayo Ojo for his long standing support to the Faculty and his commitment to the development of education in Nigeria.

“Mr. Adedayo Ojo has made significant contributions to the growth of our Faculty, including the donation of many computer systems that formed the backbone of what today, constitutes the Faculty of Education e-library,” Adeleke said.

Adedayo Ojo is the founder/ CEO of Caritas Communications, an innovative, reputation management and integrated business communication service provider. An accomplished public affairs professional of over 30 years, he is the current vice president, Public Relations Consultants Association of Nigeria (PRCAN).

Ojo is also the author of a ground-breaking and thought leadership book – “Public Relations: Thoughts & Deeds”.

The event was attended by several important personalities in the education sector, including the Vice-Chancellor of the Obafemi Awolowo University, Professor Ebun Fajuyigbe, the Principal Officers of the university, officials of the Teachers’ Registration Council of Nigeria amongst others.

Toyota Nigeria revokes Globe Motors’ distributorship status MIKE OCHONMA

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oyota (Nigeria) Limited (TNL) has parted ways with Globe Motors Holdings Limited (GMHNL), one of its erstwhile dealers.

Internal sources at TNL allege that GMHNL may have infringed on their dealership agreement with TNL, the sole franchisee and distributor of Toyota Motor Corporation (TMC) in Nigeria.

The implication of this development, among other things, is that GMHNL can no longer act on behalf of TNL in any transaction like sales, service, parts with the public and its customers.

Some of the service and products exclusive to Toyota accredited dealers are genuine manufacturer’s warranty offer on vehicles and parts, repair services by Toyota Motor Corporation, Japan, trained technicians and offering of tropicalised vehicles designed

… as dealership reacts for the Nigerian market.

Other services and products exclusive to the accredited dealers include consultancy services in workshop management, technical support in repairs and business expansion, WEB EPC services and the display of Toyota Motor Corporate identity Signages.

The development therefore leaves Toyota Nigeria with seven accredited dealers. These are Elizade Nigeria Limited, R.T. Briscoe Nigeria plc, Omoregie Motors Limited, Germaine Auto Centre Limited, Mandilas Enterprises Limited, and Kojo Motors Limited.

Toyota Nigeria had in a caveat emptor published in national newspapers last week revoked the dealership status of Globe Motors.

According to the public notice, “Toyota (Nigeria) Limited wishes to inform the

general public and all our dear customers that Globe Motors Holdings Nigeria Limited is no longer a Toyota accredited dealer, hence is no longer authorised to transact any business on behalf of the TNL. “As such, Toyota will not be liable for any business transaction with Globe Motors Holdings Nigeria Limited.” The TNL accused Globe Motors of infringing on its dealership agreement existing between the duo, and by extension the business operational guidelines of the TMC for the Nigerian market.

It was learnt that several attempts made to resolve the crisis between the two parties, which had lingered since 2017, failed.”

But is reaction to the development, Victor Oguamalam, managing director of Globe Motors Holdings Limited, said TMC, the number one

automobile manufacturing company in the world, had about four to five layers of distributorship for their products - Toyota vehicles and spare parts covering all continents of the world.

All these distributors ensure that TMC standards are met and factory warranty of three years is ensured. Globe Motors is successfully linked to this value chain.

According to Oguamalam, Globe Motors has been among the leading distributors of Toyota vehicles in Nigeria in the past 25 years. He said the dealership’s warrantees are more than those of any subset in the country.

According to Oguamalam, his company imports tropicalised vehicles built for Nigerian roads and suits the climate, and its customers are given three years warranty as stipulated by the manufacturer of Toyota vehicles including better back-up services.

Senate restrains NDDC interim board from acting Solomon Ayado, Abuja

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he Senate on Thursday placed restriction on the interim management of the Niger Delta Development Commission (NDDC) and asked it not to act and or take decisions for the commission.

Senate president, Ahmad Lawan announced the bar following plans by the interim management to appear before the Upper Chamber to defend the agency’s 2020 budget.

Buhari had on Tuesday submitted to the Senate the 2020 budget estimates of the NDDC. Buhari’s letter read: “Pursuant to Section 18(1) of the Nigerian Delta Development Commission Establishment Act, I forward herewith 2019/2020 budget estimates of the Niger Delta Development Commission for the kind consideration and passage by the Senate.

“While hoping that the Senate will consider this request in the usual expeditious manner, please accept, Mr. President, the assurances of my highest consideration.”

But the Senate refused to honour the President’s request because, according to it, original members of the governing board of the NDDC that were constituted were yet to be inaugurated.

However, the Minister of Niger Delta Affairs, Godswill Akpabio, had earlier made appointment of a three-man interim management committee of the NDDC. But the Senate said the minister’s action was illegal because it did not follow due process.

Instead, the Senate con-

firmed the NDDC Governing Board sent to it by Buhari, with Pius Odubu as chairman, and Bernard Okumagba as managing director, respectively.

Others are Executive Director Projects, Otobong Ndem (Akwa Ibom), Executive Director Finance and Administration, Maxwell Okoh from Bayelsa State, Delta State representative, Prophet Jones Erue; Victor Ekhator (Edo) and Nwogu Nwogu (Abia), Theodore Allison, representing Bayelsa State, Victor Antai (Akwa Ibom); Maurice Effiwatt (Cross River); Olugbenga Elema (Ondo), and Uchegbu Chidiebere Kyrian (Imo).

Also, others confirmed for zonal positions were the Northeast representative, Ardo Zubairu from Adamawa state, Ambassador Abdullahi Bage from Nasarawa State to represent the North Central zone as well as Aisha Murtala Muhammed, from Kano State, to represent the Northwest Zone.

While barring the interim committee, Lawan said the committee was not screened and confirmed by the Senate.

The Senate Committee on NDDC should ensure that only the 15 member Governing board forwarded to the Senate

by Mr President, screened and approved by us, should be related with as far the budget of the agency is concerned and other official matters,” he said.

“I want to also reiterate here that you (Senate Committee on NDDC) deal with the governing board this Senate has approved,” he said.

Consequently, the Senate has directed the matter to the Senate Committee on NDDC for further legislative action. www.businessday.ng

L-R: Ademulegun Olowojoba, manager, Future Wox; Rhoda Robinson, executive director, HACEY;​Ochuko Keyamo-Onyige, country manager, G.B.C Health; Tayo Taiwo, managing director, Xploits Consulting Limited; Victor Okhai, CEO, Victory Bridge, and Abiola Oshunniyi, chief responsibility officer,​Parallel Point Consult, during the day 2 event to commemorate Access Bank Sustainability Awareness Week 2019 with the Theme ‘Together For A Sustainable Future’ in Lagos.

AfDB approves $210m for TCN’s expansion network across Nigeria HARRISON EDEH, Abuja

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oard of the African Development Bank (AfDB) has approved $210 million for Transmission Company of Nigeria (TCN), in a bid to support its National Transmission and Expansion Project (NTEP -1) across Nigeria.

The decision for the support was reached in a board resolution onWednesdayatthebank’sheadquarters in Abidjan, Cote d’Ivoire, a statement issued by TCN said.

The NTEP-1 is one of the projectsunderTransmissionRehabilitationandExpansionprogramme financed by the bank, which is targeted at rehabilitating and expanding parts of the transmissiongridintheNorthWest,SouthSouth and the South East regions.

The project is expected to reconstructoldtransmissionlines andbuildnewonesaswellasconstruct new substations, contributing to further increase in TCN’s transmissioncapacity,itexplained

in the statement Thursday.

In the statement issued by Ndidi Mbah, TCN’s general manager, the company noted that even though the approval has just been given, it had already concluded Environmental StudiesincludingResettlementAction Plan in which people that would be affected by the acquisition of the Right of Way (RoW) for the proposedtransmissionlineswere identified, the report had been submitted to AfDB. Also the advert for the prequalification of contractors had been carried out under advance procurement and evaluation of submissions from consultants that submitted “Expression of interest” for the procurement of consultancy for the project is ongoing.

According to the statement, adopting the use of advance procurement in the execution of its projects,hasgivenTCNleadtime, reducing procurement period by six months.

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The procurement processes for the project is about 70% complete, meaning that execution of theprojectsunderNTEP-1would soon commence in earnest, even though it has just been approved by the AfDB board.

TCN further noted that the NTEP-1 projects would address some transmission lines and substations requirements in the North West, South-South and South East regions of the nation.

In the North West, the projects that would be executed include the construction of 212KM Double Circuit 330kV Quad conductor (Kaduna to Kano); installation of 2x150MVA and 2x60MVA transformers and bay extensions in Zaria; installation of 2x150MVA and 2x60MVA transformers with associated bay feeders and bay extensions in Kaduna Millennium city; installation of 2x60MVA transformers and outgoing feeders in Rigasa Kaduna; and the installation of 2x60MVA transformers @Businessdayng

and out-going feeders in Jaji, Kaduna. The substations would all have turn-in and turn-out transmission lines.

IntheSouth-SouthandSouth East, NTEP-1 would reconstruct the 107KM Double Circuit DeltaBenin transmission lines into a 330kV quad line; reconstruct the 138KM Alaoji- Ihiala – Onitsha Single Circuit line into 330kV Double Circuit Quad line.

TCNnotedthatNTEP-2which would execute projects mainly in the North East and parts of the central states of the nation is also in the pipeline and had reached an advanced stage on the funding processing.

TCN assured that the present management of the company wasdeterminedtoensurethatthe projects are completed as scheduled, in line with its four-year Transmission Rehabilitation and Expansion Programme (TREP).

The timeframe for execution of all the NTEP-1 projects will be 24 months after award of contracts.

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Lack of political will, others impede Contributory Pension Scheme in states - Pencom Cynthia Egboboh, Benin City

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ational Pension Commission (Pencom) on Thursday said lack of political will had impeded the success of theContributoryPensionScheme (CPS) in states as most governors were yet to embrace the scheme.

Babatunde Philips, head, states operation department, speaking at the 2019 journalist workshop titled ‘Expanding coverage of the pension industry’ in Benin City, said the need for states to adopt the CPS cannot be overemphasised as it present opportunities for state governments to access available pension fund to deepen infrastructural development.

According to Philips, 25 out of the36stateshaveenactedtheCPS, whileninestatesandtheFCThave commenced implementation, remitting both employer and employee pension contributions.

He said, “The CPS stands as a legacy against old age poverty, as well as enhances the integrity of state governments’ payroll.

“The right of states to enact their own pension laws had been acloginwheelofprogressassome states delay in enactment of their laws. The lack of political will by some state executive governors had also hindered the implementation as the decision more or less depends on the states’ governors.”

Speaking further,he said delay in adoption of the scheme by

some states was due to poor understandingbyotherstateofficials and labour unions.

“Steps towards ensuring full implementation of the CPS in states include; enactment of the state pension law, establishment of state pension bureau, commencementofactuarialvaluation to determine accrued rights of employees, opening of RSA for all eligible employees amongst others,” he said.

Aisha Dahir-Umar, acting director-general, Pencom, in her remark,saidthecommissionover the years had remained focused on its objective in ensuring the conclusion of the pension industry transformational initiative, adding that the commission is out to get players of the informal sector through the micro Pension plan launched by the President in March 2019.

She said, “As at September 2019, the number of registered contributors under the CPS has grown to 8.85 million while pension fund assets have grown to N9.58 trillion. This growth indeed justifiesouremphasisonthesafety of pension funds as the bedrock of sustaining the CPS and I assure all stakeholders that the pension reformremainssteadilyoncourse.

“These modest milestones notwithstanding, the Commission and Pension Operators are committed to actualizing the growth potentials of the pension industry.”

ICAN enhances professional capacity, inducts 1,747 graduate members KELECHI EWUZIE

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nstitute of Chartered Accountant of Nigeria (ICAN), as part of its strategic step to produce world-class accounting professionals in Nigeria, has inducted 1,747 graduate members that have successfully went through the qualifying process of the Institute.

Nnamdi Okwuadigbo, 55th president of ICAN in his address at the 64th induction ceremony in Lagos, observes that the institute is undoubtedly addressing one of the critical indices of economic growth – human capital development.

Okwuadigbo says over the years, ICAN’s products have proven their relevance in virtually all sectors of the economy.

According to Okwuadigbo, “As inductees, you are joining the league of Chartered Accountants who continue to bring to bear their expertise in financial reporting, auditing, tax administration, management consultants among several others. By this singular occasion, you become part of over 3 million accountants under the aegis of the International Federation of Accountants (IFAC).”

Okwuadigbo further urges the new inductees to know that their admission into the accountancy profession comes with responsibilities, adding that there is the professional fulfilment in knowing that you are meeting the needs of your clients and contributing to growth and development of the country.

“While ICAN certificate has placed you at a vantage

position above the masses, you still need to complement this with regular update of your skills. The Mandatory Continuing Professional Education (MCPE) programmes are platforms created by the Institute for members to stay at the cutting-edge of knowledge in the profession,” he says.

On his part, Richard U. Uche, guest speaker at the event, charges the new members to ensure they seek careers in professions that promises ample job opportunities, adding that more importantly, individuals should seek careers in professions that have the ability to thrive even when the economy takes a downturn.

Uche, while delivering his address titled: Accountancy: ‘A Profession for all Seasons,’ observes that accountancy professionals are often called upon to assist with the corporate strategy of business ventures, provide advice and help businesses reduce costs, maintain solvency and mitigate risks.

Uche further opines that Accountants in academia are tasked with the important role of imparting the knowledge, skill and the ethical underpinnings of our profession to the next generation. “It goes without saying that the accounting profession is one that is primal to the success of any business and indeed a profession for all seasons,” he says.

He urges that new inducted members to engage in continuing profession development not just because it is mandatory in ICAN.

L-R: Sade Morgan, corporate affairs director, Nigerian Breweries Plc; Jermaine Sanwo-Olu, senior special assistant to the governor (Diaspora and Foreign Relations), Lagos State Government; Remco Bohre, commercial director Nigeria and Ghana, KLM Royal Dutch Airlines; Chiagozie Xavier Obetta, winner of the fashion competition; Mattijs van Bergen, Dutch fashion designer; Weijen Jan-Van, consul-general of the Kingdom of the Netherlands in Nigeria, and Jordi Borrut-Bel, managing director, Nigerian Breweries Plc, during the award presentation at Fashion Event and Business Reception themed ‘A Case of Love – Lagos Meets Amsterdam in Fashion’ held in honour of the Prime Minister of Netherlands visit to Nigeria in Lagos, yesterday.

Reps approve 7.5% VAT, strip NIPOST duty to collect N50 stamp duties James Kwen, Abuja

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ouse of Representatives has approved the increase in the Value Added Tax (VAT) from 5% to 7.5% on services rendered in Nigeria, regardless whether a person is physically present or not, as well as services rendered within Nigeria or outside.

The House also stripped the Nigerian Postal Commission (NIPOST) of the responsibility of the collection of N50 Stamp Duties and transferred it to Federal Inland Revenue Service (FIRS).

These actions followed the consideration of the report on the Finance Bill with the long title of: “A Bill for an Act to Amend the Companies Income Tax Act, Value Added

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... as House considers report on Finance Bill Tax Act, Customs and Excise Tariff etc. (Consolidation) Act, Personal Income Tax Act, Capital Gains Tax Act, Stamp Duties Act and Petroleum Profit Tax Act to Provide for the Review of Tax Provisions and make them more Responsive to Tax Reform; and for Related Matters”, presented by the chairman, House Committee on Finance James Faleke on Thursday during plenary.

The report stipulates that, the N50 one-off stamp duties, however, exempts all electronic receipt or transfer for money deposited in any bank or with any banker, on any type of account, to be accounted for amounting from N10,000 upwards, except that monies paid into one’s account or transferred electronically

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between accounts of the same owners by the owner within the same bank.

The bill provides that: “a taxable person who fails or refuses to register with FIRS within the time specified in the bill shall be liable to pay N50,000 fine for the first month, N25,000 for each subsequent month of default.

“Where a taxable person permanently ceased to carry on a trade or business in Nigeria, the taxable person shall notify the Service of its intention to deregister for tax purposes within 90 days of such cessation of the trade or business.

“A non-resident company is also under the obligation to be taxed on the invoice for the supply of taxable services while the person to whom the

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services are supplied in Nigeria shall withhold and remit tax directly to the Service in the currency of payment The amendment to Customs and Excise Tariff, etc, (Consolidation), Act empowered Nigeria Customs to impose a duty on “goods manufactured in Nigeria and specified in the Fifth Schedule to this Act shall be charged with duties of Excise at the rate specified under the Duty Column.”

It also provides that goods imported and those manufactured in Nigeria shall be charged with duties of Excise at the specified rates in the Duty Column, in order to protect the local industries and make their prices competitive and avoid double taxation.

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Alliance Law guides firms through ease of doing business manual HOPE MOSES-ASHIKE

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s a way of supporting start-ups and established businesses, Alliance Law firm has released an ‘Ease of doing business in Nigeria manual,’ to guide businesses, both local and international, on how best to conduct businesses in Nigeria, legally and ethically.

This comes as experts in the financial services and ICT sectors have described data, information and technological advancement as pivotal to economic growth.

Speaking in Lagos at the annual lecture series, 2019, organised by Alliance Law Firm, Leo Stan Ekeh, chairman, Zinox Technologies Limited, harped on the relevance of data in planning, saying lack of data could affect planning.

“Data is the power and is important for planning. If you do not have data, how can you plan? This is the major problem of this country and it needs to be addressed,” Ekeh said.

He said Nigeria was still grappling with challenges that needed to be addressed such as poor electricity supply, poor access to good water, bad roads among others.

Patrick Akinwuntan, managing director, Ecobank Nigeria,

said leveraging technology for the growth of Nigeria was not only applicable to banks but also for all stakeholders in the country.

He said, “The banking industry would do so much in leveraging technology to rebrand Nigeria but for us as a nation, it is important that we leverage the opportunity that technology brings to the table.

“For us in banking, we have the Bank Verification Number (BVN) and there are 40 million customers with BVN today so the issue of who is a valid customer is getting eliminated and was achieved through technology.”

Uche Val Obi, managing partner, Alliance Law Firm, said technology was causing disruption in the financial sector in a good way, and urged other sectors to follow suit in keeping up to the pace of technological advancement.

Commenting on the ease of doing business manual, he said: “We have produced the ease of doing business in Nigeria manual, we had the first one done 10 years ago and we have updated this version making it more user friendly. It would help explain and understand things for startups, established businesses both local and international. The firm did this while leveraging in our vast experience.”

P&ID $9.6bn judgment: Briton begs for bail variation, EFCC kicks Felix Omohomhion, Abuja conomic and Financial Crimes Commission (EFCC) on Thursday objected to the bail variation canvassed by James Nolan, a Briton, who is facing trial for tax evasion and money laundering offences.

Nolan is standing trial for being a signatory to the account of the Process & Industrial Development (P&ID) Nigeria, on amended 32-count charge.

The anti-graft is accusing Nolan of being a part in the controversial gas supply contract, (P&ID) that led to the $9.6 billion judgment liability against Nigeria.

The prosecution said the

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defendant was a signatory to accounts of P&ID, Nigeria, the In-Country Support Manager of P&ID, Virgin Island.

The prosecution alleged that the defendant engaged in money laundering and tax evasion, forgery of immigration documents, running of a trafficking syndicate and was involved in corrupting Nigerian officials.

Nolan was arraigned on October 21 and admitted to bail on November 7. Among his bail conditions was to deposit in the sum of N500 million bail bond and a surety in like sum.

The judge ordered the Briton who was charged alongside his compatriot, Adam Quinn (at large), to produce a serving

senator to stand surety for him in the same bail sum.

In addition, the court said the senator must be someone that does not have a criminal case pending in any court in the country and must have a landed property that is fully developed in the Maitama District of Abuja.

Trial judge, Justice Okon Abang, stressed that an officer of the court would verify the statutory Certificate of Occupancy of the property as issued by the Federal Capital Territory Administration.

Besides, he held that the proposed surety must submit a three-year tax clearance certificate and sign an undertaking to always be present in court with the defendant throughout the

duration of the trial.

The surety is to depose an affidavit of means with two passport photographs and undertake to pay the total bail sum, should the defendant escape from the country before the conclusion of his trial.

The court equally ordered the defendant to surrender all his international passports, even as it mandated the Nigerian Immigration Service to confirm how many passports that were issued to him within the past 20 years.

The bail conditions followed the prosecution counsel, Bala Sanga’s submission that the defendant was arrested after an extensive covert manhunt that stretched for over two weeks.

African network users to experience mmWave 800M with 5G James Kwen, Abuja

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frican users of digital network can now experience mmWave 800M with 5G, which increases the amount of bandwidth available that is also capable of delivering extreme data speeds and capacity that is the first of its kind in Africa.

The 5G network, developed

by Huawei Technology Limited, a global ICT infrastructure provider in a technical partnership with MTN Nigeria, makes it possible for subscribers in Africa to make voice over NR (VoNR) calls.

The VoNR is a voice and video solution using the 5G SA network architecture (also the first in Africa), which makes it possible to place multiple voice and video calls with 100% clarity and no interruption.

Speaking at the launch of the technology recently in Abuja managing director of Huawei Technologies Company Nigeria Limited, Zhang Lulu, says the launch of the 5G Network is in line with the telco’s decision to roll out 5G in other major cities in Nigeria before 2020.

Lulu states that 5G is a core technology in establishing the digital infrastructure of the future and will be essential in how all of the mobiles and connected devices will communicate together.

According to Lulu, 5G has low latency rate which is the amount of delay between the sending and receiving of information making it a better future available to operators and customers, adding that the trial demonstrates the capability of the new technology while giving customers a glimpse of what the future holds, showcasing the next generation of applications

for consumer and enterprise customers.

“This is coming immediately after the telco successfully ran a trial of the Network in South Africa, achieving 20 Gigabyte per second (Gbps) with less than five minutes latency.

“Huawei will keep supporting MTN through its challenges and requirements, providing the most innovative product and solution for MTN, bringing the ultimate experience to MTN subscribers.”

MTN partnership with Huawei will enable MTN to serve its subscribers with advanced technologies of the future.

“Huawei is leading the 5G rollout globally, despite issues with the US ban with more than 60 commercial contracts and shipment of 400,000 plus base stations,” he notes.

Lulu notes that MTN Nigeria has finally beat the Nigerian Communications Commission (NCC) by launching a trial of the network before the regulatory body even approved the network for mass use.

“Huawei’s 5G simplified solution helps operators build 5G networks with superior performance and user experience and rapidly deploy simple 5G networks to allow customers enjoy 5G services.

“The 56 technology improves operation and makes maintenances easier; this will also boost business growth.

“With the newly introduced technology, telecommunications subscribers can now effortlessly experience the fastest internet and mobile connectivity. 5G is 100-250 times faster than 46. In other words, it is 20 gigabits per second over wireless fast. www.businessday.ng

Aliko Dangote (2nd l), president/CE, Dangote Industries Limited, posing with recipients after presenting Long Service Awards to Nzeako Onyembo Alexander (l); Olakunle Alake (2nd r), group managing director, Dangote Industries Limited, and Taiye Ajiyen for their 29 years of dedicated service to Dangote Industries Limited at the 2019 Long Service Award held in Lagos.

Nigerians must acquire ships to unlock NALPGAM distributes cylinders to potential of maritime economy - SOAN deepen gas penetration in Nigeria AMAKA ANAGOR-EWUZIE

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igerian ship owners under the aegis of Ship Owners Association of Nigeria (SOAN) said in Lagos on Wednesday that indigenous shipping operators need to acquire more ships to become globally competitive in the shipping trade.

To SOAN, acquiring more Nigerian owned vessels will enable ship owners unlock economic prosperity of Nigeria and create thousands of new jobs.

Speaking at the first Lagos International Shipping Expo with the theme: ‘Shipping, Global Economy and National D evelopment,’ Mkgeorge Onyung, SOAN president, called on President Muhammadu Buhari to assist Nigerian ship owners in creating enabling business environment and finances needed to acquire more ships.

“If there is no shipping, there is no shopping, which is why there is connect between shipping and national

development. Of course, shipping controls 90 percent of the global economy.

Seafarers are the most important workers on earth as declared by the United Nations, and we ship owners, we value them because their future lies in the development of Nigerian shipping industry,” he said.

On the importance of the conference, Onyung said SOAN organised the event in order to speak in one voice so that government and its agencies that regulates shipping business can hear the voice of ship owners and proffer solutions to the challenges facing indigenous ship owners.

Legor Idagbo, chairman, Nigerian Content Development and Monitoring Committee (House of Representatives), commended SOAN for organising the extraordinary event, which showcases the pivotal role of the shipping value chain not just in Nigeria’s economy but in the global trade as a whole.

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IFEOMA OKEKE

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he Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) says it has distributed about 10,000 6kg cylinders of gas with burners to Nigerians in the last 12 months as part of efforts to deepen gas penetration in the country.

Nosa Ogieva-Okunbor, president of NALPGAM, disclosed on Wednesday at the group’s South West Zone Liquefied Petroleum Gas (LPG) sensitisation and awareness campaign in Ikorodu, Lagos.

Ogieva-Okunbor stated that the LPG usage awareness campaign also involved a demonstration on the way to use cooking gas, safety precautions to be observed in cylinder handling, checks for leakages and cylinder maintenance.

He s a i d : “ NA L P G A M is committed toward taking cooking gas into every household in Nigeria.

“With the free cylinders given out today, we have freely given out 10,000 cyl@Businessdayng

inders in seven states of the country and we are still going to other states until the desired level of awareness and consumption is achieved.

“We cannot be so blessed with LPG in Nigeria and our citizens particularly the cooking population of our women in rural areas are suffering to cook.”

Ogieva-Okunbor stated that the use of unclean cooking energy like charcoal and firewood had had very negative effect in the climate due to deforestation and creation of arid land.

He said according to the World Health Organisation (WHO), the usage of unclean sources of cooking accounted for many cases of respiratory tract diseases and deaths, particularly among women and female children.

The NALPGAM president said the free distribution of the cylinders was to support the ongoing plan by the Federal Government to increase LPG consumption

by Nigerians to five million in 2023.

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Businessday Oil & Gas Roundtable in Lagos

Frank Aigbogun, publisher/CEO, BusinessDay Media Limited, giving his welcome address.

Victor Eromosele (l), CEO, ME Consulting, with Imo Itsueli, chairman, Dubri Oil Company Limited

Audrey Joe-Ezeigbo (l), president, Nigerian Gas Association, with Emeka Ene, chairman, Petroleum Technology Association of Nigeria(PETAN)

Odein Ajumogobia (l), chairman, expert advisory panel, Nigerian Natural Resource Charter, with Tengi George-Ikoli, program coordinator.

Aderonke Onadeko (l), special advisor and consultant, DRNL Consultant Limited, with Charles Majomi of Foster.

Abel Nsa (r), assistant director, domestic gas obligation, Department of Petroleum Resources, (DPR), with Daniel Obianyor, manager, origination, business development, NLNG

Michael Temitope Faniran (l), outcome lead-industry restructuring, Foster, with Adeoye Adefulu, partner, Odujurin and Adefulu.

Ibrahim Shehu (l), deputy director, upstream, ministry of petroleum resources, with Abdurraffii Egbeyemi, senior petroleum engineer upstream.

L-R: Aminat Jegede, senior manager, KPMG; Jumoke Fajemirokun, partner, Advisory Legal Consultants; Emmanuel Anyaeto of Axxela, and Shofowora Oluwatobi, business analyst, QSL Gas and Power.

L-R: Pradipta Mitra; Saji Pillai, both Greenville, LNG, and Oweh Mba-Sam, CEO, Manufacturers Power Development Co. Ltd.

L-R: Dan Daniel, commercial advisor, NLNG; Anne-Marie Palmer-Ikuku, head, media relations, NLNG, and Yemi Adeyemi, head, public relations, NLNG.

L-R: Adeola Adeyanju, MD, Cinatt Resources Nigeria Limited; Margaret Emeh, business officer, Point Engineering Limited, and Adeola Bankole, senior adviser, tax regulatory people services, KPMG.

Emmanuel Anyaeto, head, gas demand and supply, Axxela, and Abdullateef Amodu, publicity secretary, Nigerian Association of Petroleum Explorationists (NAPE)

L-R: Steve-Ray Ugwu, production, NLNG, and Wofai Samuel, international communication executive, NLNG

L-R: Odunayo Ajike, P.A to the president, Nigerian Gas Association/ Falcon Corporation, and Taji Ogbe, executive secretary, Nigerian Gas Association

Lemebri Keme, senior project engineer, Erasko Energy Limited; Nura Manu, CEO, Action Energy, and Emeka Okoye, business development manager, Dindu Energy

L-R: Anoruse Thomas of SPDC; Edeme Kelikume of connect Rail Services Limited, and Tunde Kehinde, chairman, Skylink Consulting Limited

Bolaji Fasheun, executive associate, Bloomfield Law Practice, and Ola Vera-Crug, head, business development, Veromo International Limited

L-R: Uzo Ozoh, Chijioke Emole, both of Chevron Nigeria Limited, and Emeka Ene, CEO, Xenergi

L-R: Ademola Asuni, director, Soareagle Energy; Chinasa Obigwe, commercial analyst, Naselle Associate, and Ifeoma Finnih, head, telecoms, manufacturing and distribution, debt solutions, FBNQuest Merchant Bank.

Pictures by Olawale Amoo and David Apara

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Why are the French so obsessed with African civilisation?

THE NEW WEALTH OF NATIONS

Obadiah Mailafia

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he French president Emmanuel Macron, was recently quoted as saying that the problem with Africa is “civilisational”. In his words: “With a family that has seven or eight children in Africa, even if you invest billions, nothing will change, because the challenge of Africa is civilisational.”

A decade ago, his predecessor, Nicolas Sarkozy, in a well-packed hall at the venerable Cheikh Anta Diop University in Dakar opined that Africa is stagnating because its collective mindset is rooted in “circles and circles” of thinking. Nothing moves, everything is in “endless circles”, hence no progress is possible. The audience in that sweltering summer in Dakar felt both stupefied and humiliated.

Times have changed. The grandees that once occupied the Elysée Palace – Charles de Gaulle, Pompidou and François Mitterrand – would never have talked such nonsense.

One academic who did not allow Emmanuel Macron to get away with it was the sociologist Amadou Douno of Conakry, Guinea. He minced no words: “Africans do not need your debauchery civilisation. Because, with your (so-called) civilisation a woman can sleep with a woman….with her dog; a child can insult his father and mother without problem….a young man can live with a woman who is his mother’s age or his grandma without problem….Africans have no civilisation lesson to learn from people like you….

What is delaying this continent is the large-scale pillage of its resources by the great powers, France in the lead….

The challenge for Africa is to get rid of France. Because the latter is not the solution to its underdevelopment; it is at the heart of the problem!”

Europe and Africa are condemned to live in cocoons of mutual incomprehension. One of the oldest views is of an Africa imprisoned in the womb of medieval myth and superstition; a civilisation caught in the circular chains of nature and the seasons. Classical Greece is presented as a unilinear civilisation anchored on continuous progress while Africa is a continent condemned to repeat its misfortunes in endless cycles. The myths of Homer present a heroic drama that has a beginning and climaxes in a denouement of hope and progress. Whereas Africa is contrasted as doomed to reproduce only poverty and degradation.

But this is a false narrative. The work of the late Isidore Okpewho, myths of Ozidi as retold by the poet J. P. Clark Bekederomo and the ancient tales of Sundiata Keita of Mali also speak of a straight even if tortuous path from suffering and deprivation to greatness, hope and redemption.

One of my teenage heroes was the Franco-German doctor, missionary, theologian and philosopher and Nobel laureate Albert Schweitzer. Schweitzer was one of the most learned savants of the twentieth century, with doctorates in medicine, philosophy, theology and music. A man of science and culture, he was the world’s leading authority on the music of Bach -- a close friend to such progressive post-war intellectuals as Albert Einstein, Niels Bohr and Bertrand Russell. He was a cousin of the French existential philosopher Jean-Paul Sartre. Schweitzer gave up the pursuit of worldly fame to work as a missionary doctor in the primeval forest of “darkest Africa” in Lambarene, Gabon.

When I was in Gabon recently, I was talking about his legacy to a friend and he exclaimed, “When I was a child my mother would take me to his hospital.

Schweitzer would give me an injection and then console me with some sweets – a kindly old man!”

Despite his great humanitarian work, Schweitzer suffered from the European disease of racial condescension. He famously proclaimed that “the black man is our brother – albeit a younger one!” That infamous remark alone has virtually destroyed his entire legacy in Africa.

Africa is the cradle of human civi-

lisation. Although Homo sapiens first reached its settled mode in Mesopotamia, ancient Egypt, Meroe and Kush were the first high civilisations recorded in the annals of human history. There is no civilisation of antiquity that rivals the Egypt of Imhotep and Ramses II. The Europeans and the Arabs have colluded in wickedly denying that Pharaonic Egypt was an African civilisation. Africa is the only continent where a civilisation found on its soil is denied to be part of that continent. It is the stupidest and most pernicious intellectual racism known in the annals of world science.

When Cheikh Anta Diop of Senegal presented his doctoral thesis at the Sorbonne conclusively proving that ancient Egypt was a black civilisation, his thesis was rejected. He resubmitted it at London University and was awarded a doctorate. Amadou Mahtar M’Bow, Director-General of UNESCO during the years 1974-1987, sponsored a major research project on rewriting the history of Africa. The Americans were so incensed that they pulled out of the organisation. Other Western powers starved UNESCO of much-needed funds until M’Bow was forced out. I met him in Dakar in 2003, still looking svelte and dapper -- a great and brave man of uncommon erudition!

The later work of the Anglo-Jewish historian Martin Bernal at Cornell opened up whole new vista in Egyptology. Before embarking on his Black Athena project, Bernal already had a well-established reputation at Cambridge University as a classical scholar and historian of science with a focus on ancient China. Nobody could doubt his credentials. And he had no axe to grind with anyone. Bernal’s thesis is that classical Greece borrowed most of its science and philosophy from ancient Egypt. For taking this view, he came under an avalanche of relentless attacks.

Entire books were written in an attempt to discredit him. While Afrocentric intellectuals celebrated, racist academics who felt that the Western canon was being assaulted cried blue murder.

The greatest challenge we face in Africa today is what the late Kenyan political scientist Ali Mazrui termed “Global Apartheid”. It is a pernicious system that seeks to exclude our con-

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The greatest challenge we face in Africa today is what the late Kenyan political scientist Ali Mazrui termed Global Apartheid. It is a pernicious system that seeks to exclude our continent from the mainstream of world civilisation.

Nothing good is supposed to come from Africa

Dr. Mailafia is a former Deputy Governor of the Central Bank of Nigeria, a development economist and public finance expert with a DPhil from Oxford obmailafia@gmail.com; 08036590990 (text messages only)

Waiting for Buhari on NDDC’s new board

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resident Muhammadu Buhari has since returned to the country after a 10-day private visit to the United Kingdom – a visit that was not so private as he actually worked from London, signing bills into law and attending to official matters. While he was away, the Senate screened and approved his nominees for the board of the Niger Delta Development Commission (NDDC).

Now that the president is back at his desk, Nigerians expect that he will do the needful by inaugurating the board of the commission to bring to an end the confusion that has reigned these past one month or so with the existence of an interim management committee that was set up in controversial circumstances. While the need may arise for an interim management committee in the absence of a substantive board, which may be brought about by unforeseen circumstances and for a specified period, the fact that a board has been appointed and is actually waiting to be put in place makes the existence of any temporary arrangement superfluous. President of the Senate, Ahmed Lawan, said this much on the day the upper chamber of the federal legislature approved the NDDC board.

President Buhari must inaugurate the board he has appointed, which has Pius Odubu and Bernard Okumagba as chairman and managing director/ chief executive officer, respectively. The board cannot continue to wait indefinitely for the

Minister of Niger Delta Affairs, Senator Godswill Akpabio, to make up his mind on when his interim management committee should end its tenure.

From the look of things, the interim committee is not in a hurry to round off its activities and leave. The manner in which it is going around the Niger Delta to secure endorsements from socalled stake holders leaves no one in doubt about its long-term agenda. Members of the committee would not be doing so if they had it at the back of their minds the fact that a substantive board is waiting to be inaugurated to perform the functions assigned it by law.

It has not been explained up till now why Gbene Joi Nuneih, the acting managing director of the commission, was not available for the Senate screening when the other 15 members of the new board attended the exercise and their nomination was duly approved. For all we know, her action may be a grand scheme to delay inauguration of the new board. It is instructive that at the time of writing this article, there is no word as to when she will present herself for screening by the Senate for appointment into the new board.

One of the reasons President Buhari enjoys so much goodwill from Nigerians, which actually contributed to his emergence as the country’s president is his unrivalled integrity and strict insistence on due process. He followed due process by nominating a board to run the affairs of NDDC, just as he did shortly after he first assumed office

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in 2015. The Senate has done its part. The ball has now been played back into his court to complete what he started.

At the meeting with governors of Niger Delta states where he hinted at ordering a forensic audit of the activities of NDDC from inception, President Buhari lamented the fact that what may pass for the physical development of the region is not commensurate with the huge sums that exist on record as having been spent on the region. No other person understands the enormity of the task before the new board of the commission better than he does. It is expected that he will pass his desire for a new momentum and new sense of commitment to the real development of the Niger Delta region to the new board at inauguration.

There is work to be done at NDDC. The sad stories of unbridled and free-for-all corruption evidenced by the hundreds of abandoned projects that litter the entire Niger Delta landscape suggest a compelling need for the commission to start on a clean slate, with a properly and legally constituted board leading the change. With the Senate-approved board still in limbo, no meaningful development can be carried out by the commission.

The continuous neglect of the Niger Delta, despite the trillions of naira that have been sunk into the region through the Ministry of Niger Delta Affairs and NDDC, has unfortunately been masterminded by people from the region who

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tinent from the mainstream of world civilisation. Nothing good is supposed to come from Africa. And if any good still oozes through the frightful welter of racist bigotry, it is greeted with condescension and indifference.

We will never be welcome at the dinner table as equals with those who have arrogated to themselves the status of masters of the universe. It is foolhardy even to try. Rather, we should behave like the Chinese who decided long ago that they would never aspire to be second-class Europeans or Americans. Rather, they will be themselves.

They will reinvent themselves as an advanced technological-industrial society based on their own genius and ingenuity.

We must be true to ourselves. We can build a technological-industrial democracy and still remain Africans in heart and mind. We can embrace Western science and Western democracy while rejecting everything else. Europe itself, as far as I am concerned, has become anti-civilisation. Even at their very worst, the ancient Greeks never embraced the heresy that a mother could marry her own son and that an old man could marry a boy. The Europe of today is a temple devoted to the cruel god Jupiter – an anthill without the ramparts of faith.

But both Sarkozy and Macron have a point, though. The mediocrity, venality and sheer lack of vision of our leaders is inexcusable. Our generation of leaders owes it to our people to be more disciplined and more focused. The mission of our generation is to build a new inner-directed and self-confident civilisation anchored on African values of Ubuntu – of love and faith.

Chinua Achebe, late doyen of African letters, famously declared that unless the lion learns to tell his story, his story will always be told by the hunter.

If we don’t learn to tell our own story others will write it for us. And they will paint it in colours of ignominy. We must assert ourselves or die!

RICHARD GREEN have been the ones heading those agencies since their establishment. It is time for us in the Niger Delta to have a new understanding of the fact that our development rests squarely on our shoulders.

We cannot to continue to blame the rest of the country for the abject poverty and underdevelopment that our people have suffered as consequences of the oil exploration and production activities that go on in our communities. The Obasanjo administration did what no administration before it thought of doing by creating those two institutions and putting them in our hands as instruments for our development.

Odubu and Okumagba, both indigenes of the Niger Delta, know quite well that the lot has fallen on them to redeem the image of the people of the region by demonstrating that they can carry their destinies in their hands. They must device a new means of designing projects to meet the specific needs of people in the various communities, and not the common practice of foisting on the people projects that have more political significance than need, which in the end turn out to be white elephants.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Green is a businessman, wrote from Port Harcourt.

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Ekwegh is a private legal practitioner with over 15 years

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Akin Oyebode SAN and the Songhai project HumanAngle

Femi olugbile

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o some people, the name “Nigeria” was a joke, a neologism casually flung across the table by the girlfriend of Frederick Lugard after a raunchy Saturday afternoon rutting in the tropical heat.

“What shall we call the monster you’ve created, Fred? What about ‘Nige-ria’? And the people shall be called Ni-ge-rians. Terrible name, but what do they know?”

The latest voice to give vent to the “Nigeria-Must-Go” sentiment had a great deal of gravitas. It was the voice of Akin Oyebode, SAN, Professor of Law, a man of erudition and great passion for the cause of the nation.

His point of view was always well considered.

In the past week or so, a video of Professor Oyebode has been in circulation in the social media, talking about why Nigeria’s name should have been changed at Independence, preferably to “Songhai”. Nkrumah had taken the bull by the horn and wiped the slate clean for his people, giving them a new beginning, by changing his country’s name from the colonial moniker “Gold Coast” to “Ghana”. Ghana, Songhai and Mali

were the great civilisations in West Africa before the white man came and started putting it about that there was nothing before him. The rulers of Nigeria at Independence did not have the vision of Nkrumah.

It was really your son Ayodeji who brought the matter back up after you had mulled over it for a bit and let it go. Ayodeji lives and works in the United Kingdom. Like many people of his age in the diaspora, he is intensely focussed on Nigeria, and nothing in the local news or social media passes him by.

He sent you a clip of the Oyebode interview on WhatsApp one evening, with a query attached to it.

“Daddy, what do you make of this?”

Instinctively, you were concerned about his concerns, and always took pains to address them seriously.

Akin Oyebode is an academic who has a lot of street-credibility in “progressive” circles. He would not normally advance a proposition that did not pass through his own rigorous analysis. Though you encountered his thought now and then in the public space, the last time you actually saw him “in person” was several years past in the Senate Chambers of the University of Lagos. Your jolly-goodfellow, squash-playing friend from Edinburgh, Tokunbo Shofoluwe, was Vice Chancellor, and you had been invited to sit in on an Employment Panel. Shaking hands with the eggheads, you stopped in front of Akin as he remarked you had not published a book recently. Partly in jest, you replied you had your hands full with the weekly newspaper column you were then writing, apart from your

work-a-day life running a busy Teaching Hospital. The expression on his face said volumes about how little he esteemed the writing of a newspaper column beside the writing of a book.

It was an encounter shot through with poignancy for a different reason. That would also be the last time you would see your friend Tokunbo alive.

What was in a name? The trite answer was probably “Not a lot”.

However, in the various cultures of the many peoples of Nigeria, it was impossible to dismiss the importance of a name. To the Yoruba, a name said something not only about the person, but his antecedents. It even gave a pointer to his destiny. “Taiwo” was different from “Kehinde” in a very fundamental way, and they were not interchangeable, though they were twins from the same womb.

Deriving from such logic, it would seem reasonable to give the professor’s “Songhai Project” – to wit the discarding of a name that had brought the country little other than pain and aggravation in a century of enforced existence, in favour of a name that was emblematic of the glorious past of Africa, a long and serious consideration. “Nigeria”, according to Oyebode, was also tainted with a racial slur. He cringed every time he saw Nigerian sportsmen wearing the abbreviation NGR in international competitions.

The name, and its abbreviation, had their roots in “Nigre” – the word for black, which had become a term of racial abuse in many parts of the world.

He felt humiliated.

It was, to your mind, a persuasive but ultimately self-defeating argument. The way to deal with being labelled “black” was, surely, not to

‘

If Nigeria became a world power, nobody would thumb their nose at it, or disrespect Nigerians.

“Songhai” might have been a good idea at Independence, just to symbolise a fresh start, but it was not the reason Nigeria was bereft of virtue or selfesteem

run away from it! African Americans discovered that when James Brown sang “Say it loud, I’m black and proud” It was a battle in the zone of the mind that had to be won. If Nigeria started to achieve greatly in governance, in technology, in ideas and innovation, “NGR” would become not a label to cringe at but a badge to be proudly worn. It was not the “black” that was the issue, it was the associations attached to it, in the mind of the “victim”, as well as the “perpetrator”. People could change mind associations if and when they took their destiny in their hands and made things happen in the real world.

If Nigeria became a world power, nobody would thumb their nose at it, or disrespect Nigerians. “Songhai” might have been a good idea at Independence, just to symbolise a fresh start, but it was not the reason Nigeria was bereft of virtue or selfesteem. Only the Nigerian could make a deliberate choice to bring virtue and self-esteem back into his life and take his rightful place in the world. Even if the nation’s name was changed to “Songhai”, or whatever, and the Nigerian mind did not change with it, it would be more of the same.

For a long time, there was silence from the other end, and you began to think that Ayodeji had wearied of the prolonged messaging on WhatsApp and gone off to sleep. Later, a single line of letters appeared on the phone screen.

“I think I agree with you, daddy.

Thank you.”

Olugbile is a writer and psychiatrist. synthesiz@gmail.com

Vision versus people – the art of corporate restructuring

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have spent the last 10 years of my life restructuring businesses, both local and international. In a nutshell, restructuring is about reorganising things so they can perform better. In business, the process comes with a battle between the right vision and the people.

Restructuring is about drastically eliminating drags and creating superlatives from whatever positives you can find. According to our lexicons, being better is the adjectival superlative of good; same way being faster is the superlative of fast.

This is really what it’s all about.

From my experience as a management and corporate restructuring consultant, to get your results you must tweak the system, processes and people. In these variables, the people give the most headaches, either for their lack of understanding of the objectives and process or for their fear and resistance to change. Regardless, to get the result you either will try to “change the people”, or you “change the people”. It is also important to decide which to put first between the “where you’re going” (vision) and with “who” (people with you). Like I’ll always ask, which do you think should come first?

Even though the vision remains the baseline, great restructuring starts with defining the quality of the people than even the vision. The truth is, having good people with a bad vision will go farther than having bad people with a good vision. Still on people, you need a good mix of the three categories of people you can find, the dreamers, the thinkers and the doers.

Graphically, I’d like you to see restructuring as a process, see it even as a journey via a bus. Your role is to first, get the right people on the bus, get the wrong people off the bus, and with the right people in the right seats (position) you can now decide where it should go.

There is a real case study for this. And it’s that of Fannie Mae and the lead restructurer, David

Maxwell. Fannie Mae is one of the largest loans and mortgage firms in the world. When David Maxwell became CEO of Fannie Mae in 1981, the company was losing $1 million every business day, with $56 billion worth of mortgage loans underwater. He came in and recorded one of the greatest corporates come backs of all time. But what did he do right?

To restructure the firm, to save it from collapse and reposition it for the better performance, Maxwell first, interviewed every member of the team. He told each of the discipline and sacrifices needed. Some thought it would be too tough. He asked for cuts on their pay and other benefits. So, 14 of its 26 executives got off the bus. They were replaced by some of the most enthusiastic (dreamers), smartest (thinkers), and hardest-working (doers) executives around. And in a few years, Maxwell turned Fannie Mae from losing $1 million a day at the start of his tenure to earning $4 million a day at the end. To deliver on this, he knew all the intricacies of restructuring. Let me deep dive into its entire framework.

In an ever-changing business climate, restructuring is to suit new business objectives and purposes. It is the act of reorganising either or the legal, ownership, operational or other structures of a company for the purpose of making it more profitable and better organised for its present needs. About 2/3rd of restructuring doesn’t work.

And I think that bad strategy; bad implementation or an internal resistance to change is a factor for most of its failures. Corporate restructuring is done with respect to three fundamental part of your business, which includes: People, Processes and Systems.

There are three main categories of Corporate Restructuring. They are portfolio restructuring, financial restructuring and operational restructuring.

Portfolio Restructuring: involves changes in

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product lines; the configuration of lines of business of a firm through acquisition and divestiture transactions.

Financial Restructuring may come from adjustment of financial positions by equity reconfigurations or taking on high amounts of debt forcing managers to focus on core businesses, eliminate free cash flow and minimise organisational slack to ensure maximum operating efficiency.

Organisational restructuring: involves how an organisation changes its current operating procedures and practices to meet changes in the external environment, designed to retain old and attract new customers. Organisational restructuring is about redesigning the organogram by filling it with better strategic fits of people and process. With enhanced processes delivered through their job descriptions, KPIs and Standard Operating Procedures (SOP) you can drive better productivity.

When activating this, to make it sustainable, ensure that proper control/compliance system is in place. The compliance and control team help to keep track of staff with respect to the company’s objectives and Standard Operating Procedures (SOP). As much as organisational restructuring is about mostly the internal, you need an external check and balances through auditors, consultants and an advisory board.

The truth is, none of us is as smart as all of us.

To grow with the new structure, you definitely need extra hands. This is why you may need a mastermind, a change management committee and an advisory board that is committed to going all the way with you. Work with the best.

This would require you to assemble much higher minds to bring fresh and enhanced insights as part of your new process.

Corporate restructuring is aimed at increasing efficiency, enhancing competitive advantage,

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EIZU UWAOMA achieving synergy and improving firm value.

As for business line in portfolio restructuring, you are either creating or reducing product lines, by either forward or backward integration. Forward/horizontal integration implies that you are increasing your offering in your industry value chain so as to reach more people and revenue along the horizontals, which we refer to as value chains. On the other hand, backward/vertical integration is an expansion with respect to reducing dependency in the supply chain. Sometimes corporate restructuring in terms of portfolio restructuring shoots off from either backward integration or forward integration. These can be done either by building a whole new product line via creating a start-up from scratch or via mergers and acquisitions.

Mergers and acquisition deals with the buying, selling and the combination of another company that can aid finance or help a growing company in a given industry to grow rapidly without having to create another entity. The main rewards for Mergers and Acquisitions are usually synergy, tax yield, resources re-distribution, increase market share, access to modern technology, diversification and cost saving.

Note: The rest of this article continues in the online edition of Business Day @https:// businessday.ng Uwaoma is a start-up, corporate restructuring and strategy consultant. contacteizu@gmail.com

@Businessdayng

12

Friday 29 November 2019

BUSINESS DAY

Editorial Publisher/CEO

36 years of searching for solution to Lagos traffic crisis

editor Patrick Atuanya

o Nigerians especially Lagosians, it’s strange, yet true that Lagos State, the self-styled Centre of Excellence in Nigeria, has been searching for solution to its trade mark traffic crisis since the last 36 years without success.

Lagos which is addressed in superlative terms as the largest economy in West Africa; one of the fastest growing cities in the world, a mega city and one of the 100 resilient cities in the world. But it easily and pitiably falls flat when the cards are laid out on the table.

A major card is gridlock; another is misery which is quite deep.

Precisely on July 16, 1983, Lateef Kayode Jakande, the first civilian governor of the state (19791983) flagged off the Lagos Metro Line project projected to cost N689 million. It was a major attempt at introducing an intra-city rail system as a response to the state’s traffic crisis.

A few years earlier, the March 29, 1978 edition of Daily Times had hit the newsstand with a screaming headline, “Lagos Traffic Defies Solution” with a rider – “chaos despite new measure”, meaning that Lagos has known traffic crisis for more than 40 years today.

“We are making history today.

One hundred years from now, generations yet unborn would

Frank Aigbogun

DEPUTY EDITOR John Osadolor, Abuja NEWS EDITOR Chuks Oluigbo EXECUTIVE DIRECTOR, OPERATIONS Fabian Akagha EXECUTIVE DIRECTOR, STRATEGY, INNOVATION & PARTNERSHIPS Oghenevwoke Ighure ADVERT MANAGER Ijeoma Ude FINANCE MANAGER Emeka Ifeanyi 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

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thank us for the wisdom in establishing this project. At that time, the metro line would have expanded from the north-south route of Lagos to other states. I dream of a comfortable future and I thank God for making me and this administration instruments for this future,” Jakande said at the flag –off event.

But the visionary governor was mistaken and unfortunately his dream was dashed following the military coup of 1983 which saw the junta, led by then General Muhammadu Buhari, which overthrew the civilian administration of then President Shehu Shagari and Governor Jakande. Consequentially, generations yet unborn have no reason to thank him and his administration for the wisdom in establishing the project that never was.

The administration had planned to execute the metro line project in two phases, with the first starting from the Marina to Yaba. This phase was slated for completion in July 1986, while the second, commencing from Agege to Yaba through Oregun and Ikorodu Expressway, was slated for completion in March, 1987.

Till date, Lagos has experimented on one measure after another in an attempt to tame the monster called traffic gridlock to no avail. The population of the state has more than doubled along with growing number of vehicles, but infrastructure has

remained almost static.

It is sad that with a vehicular density of over 222 vehicles/km, Lagos has largely unplanned network of roads which, in the last five years, have become landmines with deep gullies and yawning craters.

Though successive governments in the state, especially the administration of Babatunde Fashola, have made some attempts at containing the challenge of traffic in the state, these attempts have not yielded tangle, measurable and sustainable results.

It is sad to note that whatever were the merits or achievements of the traffic law in its early days have been diminished by the traffic realities in the state today. It seems as though the state never had any such law in place. LASTMA which came out smoking with some level of positive results soon became an octopus, assuming larger than life image and extorting motorists on spurious charges, leading to its widespread condemnation.

Traffic wardens are a rare sight while LASTMA officials are overwhelmed as Lagos traffic congestion worsens daily. This in our view creates opportunities for new hires who can be trained to control traffic situations. However, what we see now are touts in their numbers taking up responsibilities of traffic officials in ways they deem fit.

Lawlessness in road conduct

among drivers and riders is now the order of the day. “One way” which should be frowned at and have its offenders brought to book is now the norm, as drivers try to beat traffic.

Regular motorcycles as an alternative means, has solved to an extent the menace however created new challenges as they are the perpetrators who ply the one-way route and drive at full speed thereby exposing people to the risk of accident. However, this isn’t the case with the likes of Gokada, Opay etc. who ride in line with traffic regulations.

It has become unbearable to live in the state and this was reflected in the ranking of the state as the third most miserable city in the world by an international ranking organisation.

We are alarmed by the rise in travel time and cost which have gone up by over 1000 percent. Apart from impoverishing the residents, the traffic crisis situation is also diminishing the economy of the state as it affects productivity significantly from the level of artisans to CEOs in the corporate world.

We are of the view that that for so long as the state government shies away from creating new city centres in places like Ikorodu, Badagry, Abule Egba and other far-flung suburbs, so long will everybody find their way to the already congested Ikeja, Ikoyi and VI, and for so long too will this crisis endure.

HEAD, HUMAN RESOURCES Adeola Obisesan

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Friday 29 November 2019

comment Cohabiting with rats and lizards Tales from the main road

Eugenia Abu

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have always believed that there are good men and women, always anywhere in the world. In spite of naysayers I am confident of the Nigerian dream and grateful to all those who wrote in when

I did my article on the Nigerian nation where I gave ten reasons why I would not leave Nigeria to include Amala and gbegiri. The letters were heart-warming and inspiring. Nigerians standing with Nigeria, a rarity in these times of hard-core condemnation of everything, even the air we breathe. I am thankful for your belief in the future.

In Kenya only last week and I found amazing patriotism, lacking in the main among Nigerians. If you are coming to invest and you are a foreigner, a lot of Nigerians discourage you citing corruption but guess what, they will be the first to congratulate you on the project, ask you who you are connected that got you the job and then proceed to demand bribe from you because they know the director of finance.

Talk about the man shouting about how Nigeria is corrupt and demanding bribe.

But let’s pause for a minute and talk about this week’s title topic, Cohabiting with rats and lizards. Indeed, we seem to be living with the strangest of humans and I believe the animal analogy is the best way to dissect this anomaly which by the way is not novel.

The dog eat dog syndrome has long been with humanity since biblical days. There will always be a Judas and there will be Ruth saviour of her people. And so in between these people in our nation are the rats who chew on all our achievements, destroy the like the locust and leave us ragged. These are the rats in our nation whose only interest is the destruction and reversal of our fortunes. But they on their own would not have succeeded in their misdeeds if they were not in the company of Agamah Lizards.

These destructive rodents feeding fat on our commonwealth

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‘

These are the rats in our nation whose only interest is the destruction and reversal of our fortunes.

But they on their own would not have succeeded in their misdeeds if they were not in the company of Agamah Lizards

Witching Nigeria at Nsukka

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ave you ever heard of the Christian Council of Nigeria, dear reader? Renowned associations speaking for Christianity in the country are the Christian Association of Nigeria (CAN), hitherto the grouping of what Nigerians call orthodox denominations but now cross-cutting, and the Pentecostal Fellowship of Nigeria for the group by its name. Enter the Christian Council of Nigeria.

A report in newsexpress.com on November 27 quoted the Christian Council of Nigeria as stating its resolve to fight the body of witches and wizards in Nigeria. CCN said this at a press conference to announce its 90th Anniversary celebration and 30th General Assembly in Lagos. It claimed there is a Witches and Wizards Association of Nigeria whose activities it condemned.

The many paradoxes of life in Nigeria took centre stage in the last two weeks and this week especially as the conference on witchcraft held at the University of Nigeria, Nsukka. It was comedic yet sad. It spoke to so many issues and reinforced the need “to restore the dignity of man” through knowledge.

The appearance of the Christian Council of Nigeria, “founded in 1929”, is one of the many revelations dredged up by the International Conference on Witchcraft at the Princess Alexandria Auditorium of UNN. The dominant theme was the pseudo fight mounted by PFN and CAN as well as, to the shock of everyone, the graduate body of the institution against the conference. CAN and PFN swore that it would not hold, thus providing the media with the narrative of conflict and drama. The unknown CCN used the opportunity of the interest in the conference to announce its presence. What witchcraft for it to have

remained hidden since 1929!

Just the mention of the word “witchcraft” drove certain groups in the university to apoplexy and into the dark ages. Students in a university founded on the philosophical injunction “To seek truth, to teach truth and to preserve truth” would prefer that the institution not examine for better understanding a matter that features in the narratives of our country regularly.

The drama took various dimensions.

The Energy Centre was the initial venue of the conference but declined the use of its accommodation as the hullabaloo rose in crescendo. They then enabled the organisers to use the bigger and more central Princess Alexandria venue.

Pretenders to “seriousness” on the outside claimed that serious universities did not engage in studies of the paranormal.

I responded to one such on Facebook.

“Amazing. Not only do many universities of repute worldwide” embark on such studies, but there are also academic tomes devoted to the study of the science and art of this area.

Check out the Palgrave Historical Studies in Witchcraft and Magic (palgrave.com), among so many others.

Check out the entry on “Witchcraft, Sorcery and Magic” in the International Encyclopaedia of Anthropology (https://doi.org/10.1002/9781118924396. wbiea1915) and several other sources.

The reason for the study is that since the rise of Pentecostalism in our land, interest in the phenomenon has grown, for good or ill. Scholars engage in identifying, analysing and proffering solutions to issues in their environment. Do not be part of this anti-intellectualism riding on the alleged grounds of more serious issues.”

The fakes posing as guardians of the www.businessday.ng

faith claimed that they would bring down fire and brimstone to stop the conference. They did no such thing.

In failing, are they suggesting that the power of witchcraft defeated the higher authority they claimed to call? Have they not reinforced stereotypes of the alleged influence of the supernormal? Why huff and puff to promote so much darkness and ignorance?

It is good that the B.I.C Ijomah Centre for Policy Studies and Research changed the theme of the conference from “Witchcraft: meanings, factors and practices,” to “Dimensions of human behaviours.” The innocuous title still allowed for a robust coverage of many issues around witchcraft.

Luckily, Egodi Uchendu, director of the Centre named after a UNN pioneer sociologist of the class of 1963, remained focused on the conference as a matter of academic engagement. She pointed out that even the protesting Christians would benefit if they opened their minds. “Church pastors discuss witchcraft regularly and preach against it all the time, drawing from their experiences during their training and in their ministries. I am sure the information from this conference and the research findings would assist them in their work for the gospel.”

It is thus unfortunate that the organisers tried to blame the mirror for the murky appearance of the conference.

They blamed the social media for the dust the conference raised. This form of witchcraft will also not fly because it is untrue. The mirror is what it is.

Damian Opata, a vibrant young lecturer who handled the Use of English component of General Studies in our days, has a fitting word by which to close. “Some people have killed the initiative for creative indigenous thinking

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and ensuring that their entire generation are destructive elements, never work but want to reap where they did not sow.

My husband had a mason work for him once who reminded me so much of the Lizards. What do you think of the blocks on this side David? This is good sir, he will say. What about on the other side? Even that side is good sir. He had no side. Every side was good.

No opinion No position. Swinging like a pendulum and agreeing with his master’s voice even if it meant mass suicide. The nodding Lizards among us do us no good.

When they are with rats, they never disagree. Everything is game...they wish we could all just nod along.

Abu is a broadcaster, writer, trainer, brand and multimedia strategy expert and media consultant. abu_eugenia@yahoo.com

The Public Sphere

CHIDO NWAKANMA

because of mere belief in witchcraft.

Pastors, prophets, seers in the foreign religions and charismatic priests of variegated persuasions very frequently use perceived attacks by witches and wizards to put fear in the minds and hearts of their various congregations.

The truth is, for those who believe that witches and wizards exist, it exists for them; and those who believe it does not exist, it doesn’t exist.”

The university in Nigeria should interrogate all matters in our environment. It should help dispel the darkness hovering over the populace, particularly among students. It is good that UNN did not fall for the boasts and threats but remained focused on this academic engagement. It should share the key learnings.

Meanwhile, following the logic of the naysayers, with a full hall at the conference, pray, how many more wizards and witches are now in Nsukka?

Nwakanma is a Visiting Member of the BusinessDay Editorial Board and serves on the Adjunct Faculty at the School of Media and Communication, Pan Atlantic University, Lagos.

Email chidonwakanma@gmail.com.

@Businessdayng

14

Friday 29 November 2019

BUSINESS DAY

MoneyInsight

Luno makes top ten best crypto exchanges globally FRANK ELEANYA

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he latest CryptoCompare Exchange Benchmark has ranked Luno as one of the ten best cryptocurrency exchanges in the world.

The ten exchanges that made the list include Gemini, itBit, Coinbase, Kraken, Bitstamp, Liquid, OKEx, Poloniex, bitFlyer and Luno.

According to a press release from CryptoCompare, the list ranks over 100 active spot exchanges globally, offering investors and traders a comprehensive, granular and reliable source of information on the best trading venues.

“CryptoCompare is increasingly seen as the gold standard for rating crypto companies because it considers a broad set of important factors essential for the development of our

industry,” Marcus Swanepoel, CEO of Luno said in a statement BusinessDay received. “These include security, compliance, customer feedback and team strength - it is not just a measurement of overall volumes or developed market currencies.”

Founded in 2013, Luno is one of the market leaders covering over 40 countries and an extensive reach in Africa, including Nigeria where it has a physical presence. The company’s exchange services over 3 million users across the world. It is also the first crypto-exchange to be regulated in Malaysia.

Charles Hayter, co-founder and CEO of CryptoCompare described the list as a response to industry concerns over inflated volumes and the lack of reliable metrics for assessing cryptocurrency exchanges.

“We look forward to bringing greater transparency to the digital asset class and improv-

ing decision-making for market participants by providing a dataset they can trust,” Hayter

said.

Luno came equal tenth out of 165 exchanges which were

evaluated as part of the benchmarking process. It received and overall ‘A’ rating.

L-R: Fola Adeola, founder FATE Foundation; Dapo Okubadejo, chief economic adviser to Ogun state Government representing Ogun State Governor; Ajibola Ponnle, Commissioner for Establishment training and pension represents Lagos state governor; Olaniyi Yusuf, managing partner, Verraki and Adenike Adeyemi, executive director, FATE Foundation at the Foundation’s 5th policy dialogue series on Entrepreneurship in Lagos.

FNCCI Economic Summit highlights risks, opportunities for businesses in 2020 ISAAC ANYAOGU

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usinesses say one of the most fundamental risks facing them in Nigeria is regulatory risk which has significant impact on their operations. In the oil and gas sector, new rules introduced recently has compelled oil companies to pay back taxes worth billions of dollars and telecommunication companies battle new rules by the regulator.

This is affecting the country’s ability to compete as smaller African countries are reaping the fallouts of Nigeria’s poor regulatory environment. Mozambique for example has earned over $30bn in new oil and gas investments while Nigeria’s has seen barely 10 percent of that amount.

Yet, Nigeria’s fundamentals are attractive to investors. It has Africa’s largest market, abundant natural resources and a robust business environment replete with resilient entrepreneurs. This year’s French Week organised by the Franco-Nigerian Chamber of Commerce held an Economic Summit in Lagos on November 25 to discuss how companies can navigate the tough business environment in Nigeria.

Yomi Olugbenro, tax partner at Deloite in his presentation lauded the passage of the Finance bill by the Senate saying that it will help Nigeria’s quest to improve the ease of paying taxes. “The expectation is that this bill will be passed together with the appropriation bill so that come first January it can become law.”

Olugbenro said the Finance Bill contains a lot of positives apart from the much discussed VAT increase from 5 percent to 7.5 percent. The bill cushions the impact of higher taxes by exempting smaller companies and some

Laurence Monmayrant, French Consul General to Nigeria

goods and services.

The Bill proposes fiscal measures in support of the 2020 Budget of the Federal Government of Nigeria with extensive tax implications for the country. With a total proposed expenditure of N10.33 trillion against total expected revenue of N8.15 trillion, resulting in a deficit of N2.18 trillion; the 2020 Budget is projected to be financed partly by tax revenues expected to be generated through the key fiscal changes introduced by the Bill.

Among other things, it provides excess dividend tax to apply only to untaxed distributions other than profits specifically exempted from tax and franked investment income. Small businesses with turnover less than N25m to be exempted from Companies Income Tax and lower CIT rate of 20% to apply to medium-sized companies with turnover between N25m and N100m.

The Bill repeals section 60 of the Petroleum Profits Tax Act and effectively introduces Withwww.businessday.ng

holding Tax (“WHT”) of 10% on dividends paid out of the profits of companies engaged in petroleum operations in Nigeria. By this measure, the Bill seeks to remove the tax exemption granted under the PPTA in respect of such income or dividends All these proposals have significant implication for businesses but the government has designed the bill to raise taxes without hurting businesses, Olugbenro said.

In his presentation, Patrick Olinma, executive director, Asset Total E&P Nigeria Limited said regulations in the oil and gas sector should help to attract investments rather cede investment space to smaller African countries.

Olinma said that Nigeria may be the largest market on the continent but it must fix fundamental issues including poor infrastructure and the perceived difficult regulatory environment to be able to attract new investments suggesting that perhaps the country can direct its energy to fixing

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things that are broken.

Chizoba Adigwe, the CEO of Carbon Afrika, in her presentation highlighted the opportunities that exist for investment in the South eastern part of Nigeria. These include in manufacturing, trade and services and said some investments made including in auto assembly plants are crystallising in the state opening new vistas for investments.

The panel members agreed that though there are challenges and the economy still growing slowly, there are still opportunities to succeed in Nigeria for businesses that are resilient.

The Franco-Nigerian Chamber of Commerce and Industry (FNCCI) holds its French Week Celebration every year and this year it is running from November 22 to 29. FNCCI says it is an epic celebration that brings together business figures from France and Nigeria in an atmosphere of networking and business exchanges, the organisers say. @Businessdayng

French Week which has been organised for the past 30 years has become a veritable platform to promote bi-lateral business relationship between Nigeria and France.

“France-Nigerian relations have improved over the years and continues to grow strong,” says Laurence Monmayrant, French Consul General to Nigeria in her address at event.

Monmayrant said that France is an important trade partner for Africa and is the second-largest exporter to the continent so the goal is to enhance partnerships between French and African businesses in order to create new forms of cooperation.

“We expect that 2019 would account for more investments as French companies continue to show interest in the Nigerian economy,” Monmayrant, said.

Nigeria is France’s biggest trade partner within the Sub-Saharan African region with over 4 billion euros in trade in 2018, from about 3.6 billion euros in 2017. Nigeria is also the 9th largest trade partner of France in the world ahead of countries like Canada and Singapore.

Moses Umoru, director general of the FNCCI said, “The goal of the French Week is to sustain business relationship between France and Nigeria and to see how this partnership can create an opportunity for Nigerian firms to also increase trade with France,” Eonomic Summit of the French week is aimed at bringing together key business and government figures From France and Nigeria to discuss how to create more growth opportunities for our both countries. The economic summit of the French Week brings together key decision makers in government and the organized private sector and creates a platform for networking exchange and partnerships.

Friday 29 November 2019

BUSINESS DAY

15

AgriBusinessInsight Market Insights

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Send in Commentaries to caleb.ojewale@businessdayonline.com

New RSPO standard for smallholders signals hope for Nigerian palm oil producers Stories by CALEB OJEWALE Twiiter: @calebtinolu

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mallholders in Nigeria’s palm oil value chain, like others across the world, can now get certified according to standards of the Roundtable on Sustainable Palm Oil (RSPO), opening up new possibilities for them in market access, global competitiveness, and attractiveness to potential financiers.

Agribusiness Insight had exclusively reported on the Independent Smallholder (ISH) standard, which would facilitate registration of smallholders through cooperatives or group, with provisions that eliminate the financial and technical limitations that hitherto prevented them from getting certified.

This month, RSPO had its 17th Annual Roundtable Conference on Sustainable Palm Oil (RT17) and 16th Annual General Assembly (GA16) in Thailand, where members adopted the RSPO Independent Smallholder (ISH) Standard, described as a bold commitment to supporting greater inclusion of smallholders into the sustainable palm oil supply chain.

“Through the new rules for Shared Responsibility, I expect all members to actively participate and work together to increase the demand for sustainable palm oil with mutual accountability throughout the supply chain,” said Datuk Darrel Webber, chief executive officer of RSPO in a statement.

The newly adopted RSPO ISH Standard implements simple, straightforward requirements and cost-effective tools that consider diversity, capacity, and incentives, whilst ensuring that core sustainability criteria are upheld. Girish Deshpande, Global Surfactants Business Planner and Palm Sustainability Leader of Procter & Gamble UK, said, “This standard allows us to achieve our ambition of being a force for good and a force for growth, driving livelihood improvement for smallholders.”

Henry Olatujoye, president, National Palm Produce Association of Nigeria, previously told BusinessDay the “RSPO is good but the platform for it to be established in Nigeria is not yet there.”

“RSPO will only work in a place where there is a regulator, even before one tree is planted,” he said. According

to him, while RSPO is good, he still has reservations that “Nigerian operators still do not understand the benefits that can accrue to them by adopting the RSPO policy.”

There are however provisions to assist smallholders in achieving certification easily (including in Nigeria), through the RSPO smallholder strategy that provides access to simplified assessment tools. Whereas big companies pay tens of thousands of dollars to get required assessments done before getting certified, for smallholders, RSPO is through its smallholder support strategy, helping them achieve this at no cost, as explained by Elikplim Dziwornu Agbitor, technical manager for Africa at RSPO in a previous interview before the standard was adopted.

The RSPO event in Thailand also saw the launch of

a new initiative, the RSPO Smallholder Trainer Academy (STA) that aims to significantly increase the resources available for smallholders globally. By adopting a ‘trainthe-trainer’ approach, RSPO hopes to reach larger numbers of small scale oil palm farmers through agricultural best practice training.

“We can’t leave smallholders behind. Supporting them with training is vital to make sustainable palm oil production inclusive,” said Narno Sayoto Irontiko, chairman of FORTASBI, an association for smallholder Farmers in Indonesia.

For Nigerian players in the value chain, with time, it would be seen how much they would take advantage of these RSPO provisions, expanding their access to markets, and aligning with financiers keen on supporting only certified sustainable ventures.

Benue willing to offer land, resources to potential investors – Agric commissioner

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iolent clashes between crop farmers and cattle herders may have subsided in recent times, but for Benue state, the government is attributing the relative calm to its ability to maintain peace owing to its law and policies prohibiting open grazing.

Riding on the relative peace, the state is looking to attract more investors into the agriculture sector, offering potential agribusiness investors incentives, which include land, clearing, and security.

“We are willing to partner with any private investors or corporate investors that are willing to move into Benue state to engage

in agricultural production and other value addition in the value chain of agriculture,” said Timothy Ijir, the Benue State Commissioner for Agriculture in a recent interview.

He told Agribusiness Insight that the state government is willing to assist prospective investors with land acquisition or even land clearing, to enable farmers who are coming into Benue state to have an enabling environment to be able to get access to land resources. The state’s vegetation according to him is suitable for the growth of almost any crop that one wants to cultivate. “We are willing to partner and make www.businessday.ng

the environment conducive for them to do business here in Benue state,” he said.

With violent clashes between crop farmers and cattle herders likely to be a major concern for prospective investors, Ijir explained that in the recent past, there has not been much problems between Fulani herdsmen and farmers. The present administration, he says has taken very drastic steps, even with the enactment of the open grazing prohibition and branches establishment law that has curtailed some of the clashes that used to occur in the past.

Now, “Everybody seems to be on board with the law and events that used

to take place in the past where farmers used to clash with the nomadic herders has been greatly reduced,” he said. The government as he further explained is planning to establish commercial farms in some of the state’s border areas and in the riverine areas where the environment is suitable for rice and other crops.

This, Ijir says is going to even reduce violent conflicts the more.

As he emphasised during the interview, the Benue state government is willing to provide the enabling environment for people to come in without fear of any of such (violent) incidents happening again.

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What to know about benefitting from APPEALS as a farmer

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he Agro-Processing, Productivity Enhancement and Livelihood Improvement Support – (APPEALS) Project started in 2018 and expected to close by September 2023, after a six-year period.

Developed by the Federal Ministry of Agriculture and Rural Development (FMARD) in collaboration with the World Bank and other stakeholders, it currently has six participating states; Cross River, Enugu, Kaduna, Kano, Kogi, and Lagos.

Depending on overall project performance and funding availability, the project may expand and cover additional states.

The Project has eleven priority value chains: Cassava, Rice, Wheat, Cocoa, Ginger, Poultry, Aquaculture, Dairy, Maize, Cashew and Tomato.

The value chains were selected from the priority value chains of the Federal Government’s Agriculture Promotion Policy (2016 – 2020), also known as the ‘Green Alternative’.

The project aims at supporting the transition of small subsistence farmers’ production system farming (1-5 hectares) to a market-oriented agricultural undertaking and supporting middle-size farmers (5-10 hectares) to address constraints facing them and enhancing their productivity as well as effective participa-

tion in the Value Chains.

The project aims to scale up the Business Alliance Model, successfully implemented under the Commercial Agriculture Development Project (CADP).

The number of the project’s direct beneficiaries is estimated at 60,000 individuals on the basis of 10,000 beneficiaries per state, and 300,000 farm household members as indirect beneficiaries. It is anticipated that 35 percent of direct beneficiaries or (21,000 individuals) will be women.

The project has a dedicated sub-component to benefit women and youth to allow them develop Agric businesses that are expected to create jobs and improve their livelihoods.

According to APPEALS, the beneficiaries do not have to pay to participate in the project, and all Nigerians resident in the focus states can benefit, provided they meet the eligibility criteria.

It should be noted that according to the project document reviewed by Agribusiness Insight, there will be no handing out of cash directly to beneficiaries. However, the project is providing technical support in terms of training for skill acquisition and empowerment along the priority value chains to support farmers’ productivity, value addition and linkage to markets.

Transforming Nigeria’s subsistent agriculture to commercial requires deliberate efforts, says Dan-Ali

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s Nigeria hopes to drive transition from subsistent to commercial agriculture, achieving this is not possible without the conscious efforts of all stakeholders in the sector.

This is according to Mannir Dan-Ali, the chief executive officer (CEO) and editor-inchief of Daily Trust Newspaper, speaking on Tuesday at the 3rd Daily Trust Agricultural Conference and Exhibition in Lagos.

Dan-Ali identified government at all levels, financial institutions, agro-allied industries, farmers as well as the numerous other corporate entities as crucial stakeholders that have one role or the other to play in the entire production and distribution process.

He stressed the need for a lot more action by both government and the financial institutions to stimulate increased funding interventions for the agricultural sector in the country in order to re-position the sector and enable it deliver the desired result.

“We have seen various intervention projects by government, even under the present administration, projects like the AnchorBorrowers’ Scheme of the Central Bank of Nigeria (CBN) are valuable. How@Businessdayng

ever, it is pretty obvious from our current situation that the government needs to do a lot more and urgently too in certain critical areas in the value chain.

“I believe that it is the desire of ever y critical stakeholder in this sector for government to influence the provision of a single digit interest rate for agricultural loans,” he said.

The conference, themed ‘Re-positioning Rice, Sugar and Dairy Production for Optimal Yield’, according to Dan-Ali, aims to address fundamental issues that relate to growth and development of the main artery of the nation’s economy, which is agriculture.

He further pointed out that the conference is coming at a time that a major continental policy, the African Continental Free Trade A g r e e m e n t ( A f C F TA ) , which has the potential to help lift the Nigerian economy from its sluggishness, has just been endorsed by President Muhammadu Buhari.

Nigeria, he said, has the potential to not only feed itself but also export agricultural produce to its entire sub-regional neighbours, yet it imports huge quantity of its food requirement to sustain its massive population.

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BUSINESS DAY

COMPANIES & MARKETS

17

Company news analysis insight

FIXED INCOME

T-Bill rates crash to 4-year low as investors place N383bn in failed bids OLUWASEGUN OLAKOYENIKAN

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ixed-income investors seeking high-yielding securities in the light of the prevailing developments in the markets have once again been disappointed, as attempts to buy the federal government shortterm debt instruments at attractive rates were denied.

More than N383.3 billion worth of failed transactions was recorded at the Nigerian Treasury Bills (T-Bills) auction conducted Wednesday by the Central Bank of Nigeria

(CBN) on behalf of the Federal Government of Nigeria (FGN) as investors bid at rates as high as 12 percent, 11.5 percent and 14.4 percent on the 91-day, 182-day and 364day bills.

Subsequently, the apex bank lowered rates across the three tenors to 6.495 percent, 7.23 percent, and 8.37 percent, respectively.

While the rates are the lowest since January 6, 2016, they compare with 7.8 percent, 9 percent and 10 percent they cleared on the 91-day, 182-day and 364-day bills at the previous T-Bills auction which saw rates crash to a single digit for the first time in

3 years.

Investors jostled for the N150.6 billion the CBN sought to raise at the auction with N533.9 billion, causing about three-quarters of the total bids to fall beyond the CBN’s interest rates band, according to the auction result seen by BusinessDay. A breakdown of the result reveals that even though interest for the debt instruments waned when compared with the previous primary market auction, the Wednesday’s sale was oversubscribed by more than 3.5 times with most demand on the 182-day paper.

The CBN sold N20.37

billion worth of bills for the 91-day paper, N19.16 billion worth of bills were allotted on the N182-day paper, while bills valued at N111.07 billion were sold on the 364-day paper.

The Nigerian government plans to cut its cost of borrowing and rampup its revenue collection haven consistently failed to meet its targets in the past half a decade. To achieve this, the country’s central bank crashed interest rates on T-Bills to single digit in the last auction after restricting local corporate and individual investors from patronising its OMO bills.

Performance at the secondary market was bullish following Wednesday’s Nigeria T-Bills auction as buy interest was witnessed across some selected short-dated maturities including Jan-02-2020 and Apr-16-2020bills, a move analysts say could continue as investors with failed bids may scramble for bills at the secondary market.

The average benchmark discount rates dropped some 121 basis points to close at 7.58 percent. “We could associate this sentiment to the effect of the primary market auction as investors displayed interest for

maturities with attractive yields having seen the stop rate lowered further at the auction,” analysts at Lagos-based Greenwich Trust Limited said in a note to clients.

A similar trend was observed in the bond segment of the fixed-income market, as the average yield on benchmark bonds moderated to 12.23 percent driven by buy interest across various tenors of the curve.

Meanwhile, liquidity in the nation’s financial market fell to N337.58 billion as of the close of business Wednesday from N349.73 billion recorded in the preceding day.

MANUFACTURING

Nampak slumps into loss, sells Nigerian cartoon business for €26m OLUFIKAYO OWOEYE

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ampak, Africa’s leading packaging company, revenue tanked 8percent to R14.6bn from R15.96bn in the previous year, its trading profit was down 21percent to R1.6bn. On the back of currency volatility in Nigeria and Angola, loss for the year stood at R390m down 132percent from last year’s profit of R1.2billion.

The company’s core Beverage can business continued to perform well in Nigeria, with doubledigit market share gains and increased sales volumes, an indication that expansion on its production facility was imminent which would further increase Nampak’s ability to tap into the fast-growing Nigerian demand for cans.

Early in the year, Nampak announced that it has entered into a definitive agreement with AR Packaging Group AB, a Swedish cigarette pack maker, for the disposal

of its wholly-owned subsidiary Nampak Cartons Nigeria although it still retained its aluminum and tin canning operations The company says it expects that the sales of Nampak Glass and Nampak Nigeria Cartons to raise a total of R1.9bn, which would be applied to reducing debt, and in particular dollar-denominated debt.

According to the company, cash balances in Angola and Nigeria reduced significantly, with a total of R3.2bn transferred for the year; R1.7bn from Angola and R1.5bn from Nigeria. Hedging instruments have been highly effective during the devaluation of the kwanza, and have protected Nampak shareholders against potential losses of some R1.9bn since the inception of the hedging programme.

“Angola and Nigeria are now effectively unconstrained from a cash transfer perspective, and the businesses are delivering solid cash flows

back to Nampak,” the company noted.

André de Ruyter, Nampak CEO noted that while the company has met its loan covenants, it intends further to deleverage its balance sheet using sales proceeds and enhanced cash genera-

tion from operations.

It is pleasing that cash generated from operations before financing activities has increased to R1.1 billion from R0.3 billion in the T h e s ha re p r i c e, which opened at R6.62 on Wednesday morning,

plummeted 17percent during the morning session to R5.46 following the release of the result.

The group said that a successor for De Ruyter is expected to be announced in mid-December, before the outgoing CEO leaves the company

on January 14, 2020.

Nampak Cartons Nigeria was established in 2004 and has continued to serve a broad market of primarily multinational customers in the tobacco and food segments from its production facility in Ibadan, Oyo State.

L-R: Adenike Osofisan, provost, College of Fellows, Nigeria Computer Society; Wale Adetona, representative of John Obaro, MD, SystemSpecs; Tunde Ezechi, past president, Nigeria Computer System, and Adesina Sofiya, president, Nigeria Computer SystemSpecs, at the 2019 Nigeria Technology Merit Awards where John Obaro bagged a College of Fellows’ Award in Lagos.

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COMPANIES&MARKETS RETAIL

Mr Bigg’s hits new high with quality restaurants ODINAKA ANUDU

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r Bigg’s, the Quick Service Restaurants (QSR) run by UAC Restaurants Limited, has hit a new high with its model restaurants scattered across Lagos and other states.

Mr Bigg’s launched its model restaurant at Northwest Filing Station at VGC, Lagos in a grand event which took place in July, this year.

The store, which houses both Mr Bigg’s and Debonairs Pizza counters, is exquisitely designed with great interior finishing, which is an embodiment of taste, class and convenience, with wooden wall features, suspended pendants lightings, floral arrangements and wall paintings, all conveying a strong desire to offer their customers high level of class and comfort.

With ample space downstairs and upstairs lobby offering a cosy setting, it is tastefully finished with comfortable and relaxable sitting options in loosed seats, bunks and timber bench seats. The kids play area also offers the perfect fun experience for children.

The vibrancy of the model restaurant is seen in all of Mr Bigg’s new outlets in different parts of the country including Challenge in Ibadan, Onisha, Owerri, Idiroko and outlets in Amuwo Odofin, Ijeshatedo and Abule Egba in Lagos State.

The new outlets, according to Ethel Mba, marketing manager, UAC Restaurants, depicts excellence, offering a wide variety of meals ranging from local to continental dishes, which, according to her, is the heritage of Mr Bigg’s.

Many customers who have visited the new restaurants are

impressed and excited with the excellent service experience which they say largely addresses their eating needs.

Mr Bigg’s, with over 75 restaurants in Nigeria, is a response to consumers’ need for quick, fresh and tasty meals as they become increasingly busy and less time for cooking.

Mr Bigg’s specialties include Meat pie, Scotch Egg, Doughnut, Peppered and Barbeque Marinated Chicken, Celebration cakes and different types of confectionaries, while Nigeria delicacies include soups like Efo riro, Edikiakong, Fisherman Soup, among others.

While the customers are excited by this new development, Mr Bigg’s management has expressed commitment to passionately drive the business objective of growing and sustaining a positive image for the brand and building consumer loyalty.

COMPANY RELEASE

Pacegate launches first commercial lubricant testing laboratory Olusola Bello

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acegate Limited has officially launched the first commercial dedicated lubricant testing laboratory called PG Labs, in Nigeria.

PG Labs comes as a solutions provider to the rising demand for testing lubricants locally with its continued reinforcement of quality, reliability and timeliness.

The organization according to Umesh Amarnani, managing director of the firm,buttresses its commitment to pioneer solutions to support the evolving needs of its customers with the launch of this laboratory.

The facility can run a number of tests including Evaporation Loss, Homogeneity & Miscibility, Shear Stability and Kinematic Viscosity. These tests like Shear Stability, a measure of the resistance of an oil viscosity to shearing, are mandatory requirements by Standard Organisation of Nigeria (SON) for all engine oils in Nigeria.

It also offers a broad array of tests to suit lubricant manufacturers, regulators and companies. PG Labs is ISO 17025 accredited and is being registered with the Institute of Public Analysts of Nigeria (IPAN).

The laboratory performs at the highest professional level with industry experts who perform the analysis in accordance with the relevant test procedures and cross referenced with samples from ASTM (American Society for Testing and Materials).

PG Labs comes as a solutions provider to the rising demand for testing lubricants locally with its continued reinforcement of quality, reliability and timeliness. The organization buttresses its commitment to pioneer solutions to support the evolving needs of its customerswith the launch of this laboratory.

Umesh Amarnani, said, “PACEGATE is delighted to launch the first laboratory dedicated to the lubricants market.

This laboratory will further en-

hance our technical offerings to our lubricant suppliers, customers and partners, and provide them with local services atinternational standards.Our ongoing commitment to providing strong technical supportensures that we uphold our position as a valuedand sustainable partner in the lubricant industry, while continually building on expertise”.

Also commenting, Ayodapo Keshinro, PG Labs Principal Officer, general manager-Sales and Technical, said,“At PG Labs, we are committed to improving our services through adequate research and viable practices in order to meet the evolving needs of our customers.

Since our solutions cater to a wide pool of needs, it is important for us to explore every possible means to ensure they are of maximum quality and can match the requirements of our customers. The lubricant laboratory is an important milestone in our journey to serve our customers better

L-R: Felix Awogu, executive head of OB and Studios, MultiChoice Nigeria; Wangi Mba-Uzoukwu, channel director, Africa Magic; Mike Okolo, faculty member, School of Media & Communication, Pan-Atlantic University, and Caroline Oghuma, executive head, corporate affairs, MultiChoice Nigeria, at the tour of MultiChoice facilities by Master’s Degree Student of School of Media and Communication, Pan-Atlantic University.

L-R: Ndidi Nnoli-Edozien, founder, Growing Business Foundation; Wale Omole, board chair, CSR-in-Action Advocacy; Godwin Bamsa, external affairs & sustainability lead, Unilever; Yemisi Ransome-Kuti, founder, Nigeria Network of NGOs; Segun ‘’Segalink’’ Awosanya, CEO, Aliensmedia Communications; Abiola Soremekun, assistant manager, partner’s liaison, Nigerian Agip Oil Company, and Bekeme Masade-Olowola, chief executive, CSR-in-Action/convener, sustainability in the Extractive Industries (SITEI) Conference, at the Community Engagement and Human Rights Awards and Unveiling of the Community Engagement Standards in Lagos

L-R: Stephen Newton, chief operating officer - South Africa & Subsaharan Africa; Manuel Hubault, Global senior vice president, brand partnerships, Universal Music Group and Brands; Ezegozie Eze, GM, Universal Music Nigeria and Anglophone West Africa; Lebo Kgothadi, senior brands/partnership manager, Universal Music Group and Brands, and Bayo Fatoba, manager, New Business & Live | Universal Music Nigeria.

Cormart announces new partnership with AB Mauri

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ormart Nigeria Limited, a leading chemicals and food raw materials Company and a member of Tropical General Investments Group, recently partnered with ABMauri,a global business devoted to the baking industry. The partnership will enable Cormart distribute AB Mauri’s Mauripan Gold Instant Dry Yeast and Activa 10 Bread Improver in the Nigerian market.

The Mauripan Gold Instant Dry Yeast is well regarded worldwide as one of the best yeasts for bakers.It has a much longer shelf life than fresh yeast and no refrigeration is required.

It is a fast acting yeast with resultsthat provide good quality and increased quantity.

The Activa 10 Bread Improver is recognised for its consistent quality results, bread softness extender, improved freshness,

dough tolerance and increased gas retention capacity.

Martin Middernacht, Executive Director, Cormart, expressed his delight about the partnership. He said, “Cormart is excited about this new partnership with AB Mauri. These products are targeted at bakers and confectionary makers in the Nigerian market. We are committed to supporting local production in Nigeria across all spheres.”

General Manager, Johannes Flosbach, explained that both companies are looking to leverage on each other’s strengths and abilities. “Cormart and AB Mauri look forward to many successful initiatives together. We will continue to deliver worldclass quality solutions and services to help bakers become more efficient and profitable”, he said.

Felicia Onabanjo, Business

Unit Head, Cormart - Food and Nutrition Department, explained that there is a need to fill the gap in bakers’ demand for high quality yeast.

“These products add to the portfolio that we already have.

We will also provide technical support to all our customers to ensure they fully maximize the potentials of these products”, she said.

About Cormart Nigeria Ltd.: Cormart Nigeria Limited is one of the leading chemical and food raw materials companies in Nigeria a member of the Tropical General Investments (TGI) Group, a global conglomerate with a majority of its investments based in emerging markets.

Since its inception in 1981, it has been at the forefront of production, importation, stocking and distribution of chemicals and other raw materials.

L-R: Salami Abolore, founder, Riby Finance; Mobolaji Onibudo, CEO, XendBit Digital Transaction Services Limited; Bola Orolugbagbe, chairman/president Board of Trustees, Co-operative Financing Agency of Nigeria (CFAN); Abubakar Lawal, MD/CEO, GTI Capital Lmited; Eric Olo, director, EPercent Investment Resources; Dipo Odeyemi, CEO, Cavidel; Bola Ajomale, CEO, NASD Limited, and Ayo Banjo, director, FinsureX Limited, at the sensitisation workshop on the establishment of a co-operatives shares exchange in Lagos.

L-R: Yemisi Edun, executive director, finance, First City Monument Bank (FCMB); George Ogbonnaya, group head, Business Banking; Kudzai Gumunyu, divisional head, Agribusiness, and David Rogers, director of the United States Agency for International Development, at a conference on “Energy-Agric Nexus for Rural Economic Development” organised by FCMB in partnership with Rural Electrification Agency, European Union and other organisations in Abuja

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BUSINESS DAY

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BUSINESS DAY

Health Business&Life Localisation is a healthcare need – Odediran FG, Oyo to deworm 2m school pupils ...as Sanofi, May& Baker sign contract for manufacturing medicines in Nigeria ANTHONIA OBOKOH

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ith the phase of global challenge in Nigeria’s healthcare sector, localisation has been tipped as the biggest gamechanger.

Speaking at the official signing of contract for local manufacturing of Sanofi products in Nigeria

by May &Baker Nigeria Plc, Folake Odediran, general manager, Sanofi Nigeria-Ghana said that localisation takes translation a step further which is a healthcare need in Nigeria.

She noted that the policy direction set by the federal government is to assure national drug security through self-sufficiency in the supply of essential medicines.

According to Odediran, to achieve this, the government has chosen the noble path of building local capacity and expertise for sustainable growth stating that at Sanofi, the organisation understands that local sourcing of essential medicines is central to achieving the government’s objectives. We remain committed to this noble aspiration.

“Today, the formal signing of a manufacturing agreement with May &Baker Nigeria plc is proof of our commitment to localization.

We will continue to contribute our quota towards availability of very efficacious, high quality made in Nigeria medicines,” she said.

She further said that building strategic partnership with May & Baker Nigeria Plc is to support the country’s local manufacturing ambitions based on its (M&B) rich history of producing high-quality medicines in Nigeria and it also follows rigorous due -diligence exercise and successful compliance outcomes in line with local laws and our global policies.

“I reckon that localization is a journey. And the evolution we seek will not come overnight. Therefore, bridging the gap between local demand and supply may require that some categories of medicines

L-R: Nnamdi Okafor, Managing Director, May&Baker Nigeria Plc; Folake Odediran, General Manager/ Country Chair, Sanofi Nigeria Ghana, Mazi Sam Ohuabunwa, President, Pharmaceutical Society of Nigeria, [PSN], and Monica Eimunjeze, Director, Registration&Regulatory Affairs Directorate, NAFDAC, During the Formal Signing of Local Manufacturing Contract Medicine in Nigeria, Between Sanofi-Aventis Nigeria Limited and May&Baker Nigeria Plc, Held on Wednesday 27-11-2019, At Radisson Blu, GRA, Ikeja Lagos

continue to be remotely sourced to prevent dearth of life-saving medicines.”

“In the interim, I wish to call all stakeholders to collaborate with the government to develop a robust and fully functional local drug manufacturing ecosystem,” she said.

Sanofi is a global healthcare company focused on serving the healthcare needs of the world’s 7 billion people. The organisation is driven by a mission to empower life and a purpose to understand and solve the healthcare needs of people.

Nnamdi Okafor, managing director, and chief executive officer May &Baker added that the partnership is significant to both companies and the country at larger noting that because it aligns NAFDAC’s strategic policy (5+5) which is aimed at improving local capacity as well as the quality of medicines manufactured in Nigeria.

Okafor said that the Pharma centre established by the organisation has the manufacturing capacity of about 6 billion tablets and 37.5 million bottles of 60cl liquid preparation annually was built to meet strict international pharmaceutical manufacturing standards.

“It was purpose-built not just to make high-quality pharmaceutical

products for May& Baker but for quality-minded organisations like Sanofi under contract manufacturing agreements. Current capacity utilisation at the pharma centre stands at about 50% of installed capacity.

“I, therefore, want to assure Sanofi of our readiness to manufacture even more products for them,” he said.

Also speaking, Mojisola Adeyeye the director-general of National Agency for Food and Drug Administration and Control (NAFDAC) represented by Monica Eimunjeze director, Registration & Regulatory Affairs of NAFDAC said today is a special day for NAFDAC and the Federal Republic of Nigeria.

“Localisation with is dear to the organisation and access to sales and quality medicines in Africa is part of Africa union’s plan. We are very proud of Sanofi and May &Baker and other companies that are giving effect to local drugs manufacturing because the drug security world is not possible without strengthening local drugs manufacturing Eimunjeze said that the Agency give effect to what they do. “We are looking forward to seeing more partnership and more local products which will meet the acceptable global standard.”

Hygeia HMO announces black Friday sales ANTHONIA OBOKOH

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ygeia HMO, the leading Health Management Organization in Nigeria, will be having its first black Friday sales.

The sales are aimed at ensuring all Nigerians have access to quality and affordable healthcare. For the first time, the brand is inviting shoppers to participate in its firstever sales on its healthcare plans – up to 20 percent off!

The best health insurance deals you can get will be up for grabs at the Black Friday sales which started on November 22nd, 2019 and also will take place on Friday, November 29th, 2019. The sale will give current and new customers the opportunity to buy healthcare plans at a discounted price.

Three of Hygeia HMO’s products will be up for sale on those

days, and they are; HyBasic, HyCheck, and HyCheck Advanced plans. The HyBasic plan is still selling at a 13percent discount which has been on sale since November 22nd, 2019, while the HyCheck plans will be selling at a whopping 20 percent off on Friday, November 29th, 2019.

However, imagine going to the hospital and not worrying about health bills? The HyBasic plan will give individuals health cover up to N350, 000. This includes general consultations, minor surgeries, basic x-rays, diagnostic tests and so much more.

Meanwhile, both the HyCheck and HyCheck Advanced plans allow you to take charge of your health and detect problems even before they start. The plans offer both standard and advanced health screenings that individuals need to get, all at a discounted www.businessday.ng

price.

“Every Nigerian deserves affordable coverage and high-quality care. For millions of Nigerians, quality healthcare is a luxury and with these sales, our already affordable healthcare plans become more affordable,” said Obinnia Abajue chief executive officer (CEO) of Hygeia HMO while speaking on the sales.

According to Abajue, we at Hygeia HMO will continue to contribute positively to the healthcare sector in Nigeria, and our Black Friday sale is a way of giving back to the society.

“Hygeia HMO drives to continually provide quality health insurance services that will continually enhance the quality of lives of Nigerians, and the brand will always make meaningful contributions to the healthcare industry at large,” he said.

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REMI FEYISIPO, Ibadan.

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he Federal government in partnership Oyo State government and Evidence Action, a non – governmental organisation is set to deworm over 2 million pupils in public schools across the state.

The event which was which flagged off at St. Michael Primary School, Iyemetu, Ibadan school children aged between 5 – 14 years are to benefit from the deworming.

Muideen Olatunji, a medical doctor and executive secretary, Oyo State Primary Health Care Board in his welcome address, applauded the collaborative effort of the federal government, Oyo state government, and the sponsoring NGO, Evidence Action for their investment in the program.

“It is the duty of the government to educate teachers and parents on child malnutrition which is a key tool in a child’s immune productivity,” he noted.

Also speaking Femi Adepoju, zonal coordinator of ‘Evidence Action’, expressed his profound gratitude to all stakeholders engaged in the implementation of the deworming exercise.

Adepoju recalled that the last exercise organised by the organization benefited over 700,000 school children in 13 local government areas in Oyo state.

While leading the flag-off exercise, Bashiru Bello, commissioner for Health in Oyo State urged parents and school children to take

advantage of the program which he regarded as ‘Public Health Scholarship’ The commissioner maintained that the health sector is one of the 4 major cardinals points of the current government of Oyo state under the leadership of Gov. Seyi Makinde.

Program officer, Neglected Tropical Diseases, Public Health Department at the Federal Ministry of Health, Rita Rude explained that this particular round of treatment has been targeted for over 2 million school-based students in 21 local government areas in Oyo state.

She added that the federal ministry of health has decided to treat Schistosomiasis and Helmiathiasis with the donation of 3 million tablets of praziquantel and 600,000 tablets of mebendazole for the treatment of the two diseases respectively.

She however added that the treatment will leverage on the school – feeding programme, adding that the drugs should not be used in an empty stomach.

She also noted that the exercise is set for children between the ages of 5 – 14 years because they are highly vulnerable to these diseases.

Nureni Adeniran, chairman of the Oyo state universal basic education board ably represented by a board member, Akeem Oladeji appeal to parents and guardians to endeavour in periodic deworming of their children.

Children were urged to always wash their hands after touching the soil or other dirty materials.

‘Political will, free healthcare to pregnant women will address maternal mortality in Nigeria’ SIKIRAT SHEHU, Ilorin

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lusegun Mimiko, the immediate past Governor of Ondo State has advocated for free healthcare services to all pregnant women in Nigeria to reduce the rate of maternal mortality.

Mimiko, who made the call in Ilorin while delivering a paper at the Seventh Kola Olafimihan College of Health Sciences Endowed Lecture of the University of Ilorin, posited that maternal and child health care are cost-effective interventions and have been recognised by United Nations, World Health Organisation (WHO) and in Nigeria policy papers as the desired entry point to Universal Health Coverage.

He, however, suggests that sustainable strategies to reduce maternal mortality would include policy targeting of maternal care, increased public health funding, elimination of financial barrier, health system strengthening and sustained political will.

“A society that did not recognise the vulnerability of a pregnant woman and does not embrace any ameliorative process is guilty of some form of violence against women” said Mimiko in his paper presented- entitled: “Sustainable Strategies to Reduce Maternal Mortality in Nigeria: My Experience”.

Mimiko said training local birth attendants will not save maternal lives in the country, noting that traditional birth attendants should only refer pregnant women to public facilities but not to handle birth deliveries.

The former Governor, who is a medical practitioner, pointed out @Businessdayng

that local birth attendants have no business in obstetrics, as he even reveals that the 2012 confidential enquiry into maternal deaths in Ondo State (CEMDOS) report showed that over 90 per cent of maternal deaths were linked to mismanagement or delayed referrals by unskilled faith-based or traditional birth attendants.

Mimiko said that maternal mortality which had been on the decline globally, had been on the rise in Nigeria from 545 per 100,000 live births in 2008 to 575 in 2014 (NDHS).

“WHO figure of 814 in 2015, an increase of 30 per cent over the 2010 figure of 630 even seems worse. As a matter of fact, we have graduated from being No 2 globally to have the largest number of women dying from pregnancyrelated causes in 2015 -overtaking India,” said the former governor Also speaking at the occasion, Kayode Alabi, Kwara deputy Governor says maternal death rate in Nigeria may be worst than we thought as every single day, Nigeria loses about 2,300 children under the age of five and 145 women of childbearing age.

“The statistic is disturbing because Nigeria is the second-largest contributor to the under-five and maternal mortality rate in the world accounting for 14 percent of the world’s maternal mortality deaths, which is the highest in West and Central Africa,” he said.

Alabi says infant mortality is a critical indicator of global development and decreasing, its severity has been a challenge in low-income countries for decades despite the presence of effective interventions.

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Health Business&Life Lagos considers neighbourhood doctors to close healthcare gap ANTHONY NLEBEM & DESMOND OKON

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s the appetite of SanwoOlu’s administration for an inclusive government and grassroots governance grows, Lagos State is considering the creation of neighbourhood doctors to close the gap in health care delivery in rural communities.

The intention was made known

by Morenike Babington-Ashaye, founder, International Centre for Tax Research and Development (ICTRD), at a three-day conference organised recently by the United People Global (UPG) and Lagos State, in collaboration with ICTRD. If a resolution is reached leading to the establishment, the neighbourhood doctors initiative would augment the efforts of the primary healthcare centres by making health care accessible to residents.

In addition, Babington-Ashaye said the neighbourhood doctors would enable residents get health care before they can go to a health clinic, stating that the idea was born out of several discussions with communities bordering on access to health care.

“We are looking at how we can create neighbourhood doctors, that is, within your neighbourhood. At least, you have a doctor to run to immediately before you even go to a health clinic; because, from the community conversations we have done so far; we found out that the community health centres are far away from each other, that if

anything happens in a particular community, before you get to the health centre of a community that has a health centre is only if God says you are going to survive that you will survive,” Babington-Ashaye said.

Expressing her concern about the health of the people and the bad situation of medical doctors and health facilities, she said they were looking at how people and the private sector can partner with the government to bridge the gap in the health sector as it would create more jobs and investment opportunities.

“We are looking at investment opportunities. For doctors now, if it is agreed that we create neighbourhood clinics or neighbourhood doctors, that will be employment opportunity for doctors. It will also create jobs for auxiliary workers.

And of course, there will be a clinic that will be built there. So that will generate a lot of opportunities –employment opportunities, investment opportunities,” the tax expert said.

Again, Babington-Ashaye confirmed to BusinessDay that “doctors are not being helped at all by governments” and not just Lagos state alone, while also stating that the situation was different in other climes.

“In other places, doctors are helped with facilities, whether it’s an insurance policy that will be created, whether it’s government that is going to intervene with funds so that every health centre is well equipped.

So it means that private sector will have to come in now or we have private public partnership in the health sector,” she said.

L-R: Chinedum Okereke, managing director, The La Casera Company; Jeremiah Amobi, La Casera Refresh & Connect promo Smart TV winner and Oluwatobi Femi, iPhone X winner, La Casera Dealer in Lagos, Fair Bridge at the Lagos Grand Draw of the La Casera Refresh & Connect promo.

Family travels into Nigeria during yuletide seasons (Part 1) ...Specific considerations when travelling with infant and young children Executive Travel Health

www.cdc.gov/vaccines/schedules/ hcp/imz/catchup.html. Countryspecific vaccination recommendations and requirements for departure and entry vary over time. A Yellow Fever vaccination certificate is required on arrival from all travellers 9 months of age and older coming into Nigeria (iamat.org/country/nigeria/risk/ yellow-fever).

Travel-specific vaccine considerations include the following: HepatiDr Ade Alakija tis B vaccine: Vaccine can be administered with an accelerated schedule of Q-life Family Clinic 4 doses of vaccine given at 0, 1, 2, and he yuletide season is around 12 months; the last dose may be given the corner and many family and on return from travel.

Influenza vaccine: Influenza friends will be travelling into Nigeria for visits. It is important that the viruses circulate predominantly in the children they are coming in with are winter months in temperate regions (typically November– April in the well prepared ahead of the journey.

Meanwhile, the preparation goes Northern Hemisphere and April– beyond shopping, buying flight tick- September in the Southern Hemiets, making hotel reservations and sphere) but can occur year-round travelling down to Nigeria. It is critical in tropical climates. Since influenza that the family visits a Travel Clinic viruses may be circulating at any time before coming preferably 4-6 weeks of the year, travellers aged ≥6 months before the visit. This is to allow for who were not vaccinated during the proper evaluation and vaccinations influenza season of their country of that might be needed for vaccine- residence should be vaccinated ≥2 weeks before departure if vaccine is preventable diseases at destination.

Children should complete the available.

MMR or MMRV vacroutine immunizations of childhood on a normal schedule. However, travel cine: Children travelling into Nigeria at an earlier age may require acceler- need to be vaccinated at an earlier ated schedules. The recommended age than is routinely recommended. Inchildhood and adolescent immuniza- fants aged 6–11 months should receive tion schedule is available at www.cdc. 1 MMR dose. Infants vaccinated before gov/vaccines/schedules/hcp/imz/ age 12 months must be revaccinated on or after the first birthday with 2 doses of child-adolescent.html.

The catch-up schedule for chil- MMR or MMRV separated by ≥28 days. dren and adolescents who start their Children aged ≥12 months should be vaccination schedule late or who are given 2 MMR or MMRV doses separated >1 month behind can be accessed at by ≥28 days.

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HBL Team

FG, Harpic strategise to eliminate open defecation in Nigeria ANTHONIA OBOKOH

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n commemoration of the 2019 World Toilet Day (WTD) and as part of efforts towards achieving the national target of ending open defecation in the country by 2025, the Nigerian government, in partnership with Harpic has launched the ‘Clean Nigeria: Use the Toilet’ campaign.

The 2019 WTD with the theme ‘Toilets for All’ - leaving no one behind, is in line with current global efforts towards achieving universal access to sanitation, whereby toilets are available for all. This is to help reduce open defecation while promoting better hygiene practices in the prevention of diseases.

“Nigeria lags behind other nations in terms of proper hygiene with about 47 million citizens without direct access to toilets.He also revealed that according to the statistics by World Health Organization (WHO), today, over 100,000 children die every year through poor sanitation and unsafe water caused by diarrhoea,” said Sulaimon Adamu, minister of Water Resources at the media briefing which was held immediately after a sensitization walk around the FCT Abuja to sensitize the residents on the need for proper toilet practices.

Adamu while appreciating the stakeholders for their support said, the campaign is aimed at mobilizing high level support and resources towards building a new culture of safe

Shedams launches season 3 of fitness, lifestyle reality TV show JOSEPHINE OKOJIE

Meningococcal vaccine: Children aged 2 months to 18 years who travel to or reside in areas of sub-Saharan Africa known as the “meningitis belt” during the dry season (December through June) should receive quadrivalent meningococcal conjugate (MenACWY) vaccine.

Polio vaccine: Polio vaccine is recommended for travellers to countries with evidence of wild poliovirus (WPV) or vaccine-derived poliovirus circulation (during the last 12 months) this include Nigeria. (wwwnc.cdc.gov/ travel/destinations/list). If necessary, Infants and children should receive an accelerated schedule to complete the routine series. Young adults (≥18 years of age) who are travelling to areas where polio vaccine is recommended and who have received a routine series with either inactivated polio vaccine (IPV) or live oral polio vaccine in childhood should receive a single lifetime booster dose of IPV before departure.

Rabies: Rabies virus causes acute viral encephalitis that is virtually 100% fatal. Travelling children may be at increased risk of rabies exposure, mainly from dogs that roam the streets. Bat bites also carry a potential risk. There are 2 strategies to prevent rabies in humans: Avoiding animal bites or scratches.

Use of preexposure and postexposure prophylaxis.

Typhoid: Vaccination is recommended for travellers to Nigeria. Two typhoid vaccines are available and both vaccines induce a protective response in 50%–80% of recipients. The vaccine can be administered to children who are aged ≥2 years, with a booster dose 2 years later if continued protection is needed.

defecation.

“A large number of women and children are exposed to a high risk of contracting infections due to lack of access to proper sanitation which impacts on health, dignity, and safety.

The ‘Clean Nigeria: Use the Toilet’ campaign is aimed towards advancing the populace towards a new culture of safe defecation in the country,” he said.

Speaking on the role and support of the private sector towards ending open defecation in Nigeria, Asif Hashimi, general manager, RB Hygiene & Home West Africa West Africa, relayed that the provision of needed basic amenities is crucial in supporting the federal government’s plans towards ending open defecation.

“There is a need to construct public toilets and support public awareness campaigns towards behavioural change, so that people start rejecting open defecation as a norm.”

Emphasising on the commitment of Harpic towards the cause, the marketing director said, “Harpic, one of RB’s most notable brands has consistently put on its front burner the importance of having access to clean toilets.

“The aim of today’s campaign launch and the World Toilet Day commemoration is to raise awareness about the people in the world who don’t have access to safe toilets, despite the fact that it is a human right to have access to clean water and sanitation.

Toilets save lives, because human waste spreads killer diseases.” He said.

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n a bid to promote fitness and a healthy lifestyle among Nigerians, Shedams has launched its season 3 of Nigeria’s first weight loss TV reality show called the FaStest Shedder.

The reality show is created to enlighten Nigerians on the benefits of incorporating fitness and healthy living habits in their daily lives with a special focus on individuals who desire to lose weigh in the right and safe way.

“Our objective is to create a unique social-oriented platform where contestants, viewers can be educated and also get tips on fitness and healthy living,” said Seyi Olusore, founder of Shedams said during the launch.

“Also, they will share their weight loss stories; get support and encouragement from professionals, hence encouraging fitness and healthier eating habits in Nigeria and Africa at large,” Olusore said.

He noted that the TV reality series in its 3rd season intends to be a lifechanging adventure with fitness and wellness for participants and experts who are set to ensure that contestants achieve their fitness in a careful and safe environment via recommended diets and exercise routines.

He added that owing to the success of season 2 and level of awareness created in some African countries such as Tanzania, Ghana, Lesotho, Cameroon, Botswana, and Congo, Shedams decided to make the faStest shedder SEASON 3 a Pan-African show, giving opportunities to foreigners to participate.

Olusore stated that the overall winner will have a car as a cash prize and other consolations prizes. The 3rd edition has already kick-started with audition last weekend. He appreciated

ANTHONIA OBOKOH / Reporters. Email: obokoh.anthonia@businessdayonline.com

Three Crown Milk, the headline sponsor and other participants for their support to make the show a success.

The TV reality show will run for twelve weeks and expected to end in March 2020. A total of 10 contestants will be selected from the auditioning and housed in an undisclosed location for 90 days.

All their activities will be aired weekly on Vox Africa UK, Waptv, RaveTv and Pop Central Tv among others.

Speaking also during the launch, Madey Adeboye, chief executive officer (CEO), Green Circle House Realty Food Café said that the program proves that Nigerians can do anything they set their minds to do and that there are untapped talents who are passionate about their health waiting to be discovered.

“Each contestant starts with a weigh-in, to determine his/her initial statistics, which will serve as the baseline for determining the overall results.

The fastest shedder is determined by the shedder who has the highest percentage weight loss relative to her initial weight,” Adeboye said.

He stated that the participants will be enlightened, re-orientated on meal plans and healthier food options, noting that it will be enforced all through their entire stay in the show.

He added that side attractions such as puzzles themed team tasks, fashion skills, craft designs, make-up competitions, treasure hunts, food temptations, master class coaching, celebrity visits, psychological therapy sessions, spa treats, and movie hangouts will be carried out by contestants during the show.

The judges for season 3 are Lepacious Bose, Lolo, Askdamz, Madey, Joel, and Shedams, and the trainers are LakeCole, Nkem, Gbenga, Uche, and Shedams.

I David Ogar, Graphics

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Friday 29 November 2019

BUSINESS DAY

FINTECH News

Products Review

In association with

Technology Review

Personality Review

Company Review

Chinese startups step up heat on US control of cross-border payments in Africa FRANK ELEANYA

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he race to corner cross-border payments space is tightening and assuming a two horse race with capital stakes so high that African-based firms are forced to make do with fringe positions.

In the absence of local leadership, Chinese startups and US-based payment firms seem locked in a race to the top of the cross-border market which still experiences a lot of friction.

Rather than relying on traditional payment systems that paid off in the past for companies like Western Union, these foreign firms are broadening the space with the help of digital technology.

To be fair, local banks on the continent have been making efforts to break down the barriers but their unwillingness to collaborate amongst themselves, and the tendency to place shareholders’ interest ahead of customer needs have ensured that they are not among the top runners for the top prize.

As mobile money transactions outpaces bank accounts in Africa, the firms are increasing their investments in payment technology and collaborations with the goal of breaking down the barriers to cross-border payments in Africa as the leaders of various countries in the continent work to finalise modalities for the African Continent Free Trade Agreement (AfCFTA).

Prior to now, card payment companies like Visa and Mastercard where the most dominant forces in the market. They

were given a head-start by the fact that African financial flows is dominated by payments from North America and the dollar remains the operating currency. However, a report

by SWIFT indicates that North American clearing dominance is decreasing from 41.7 percent in 2013 to 39.5 percent.

The report also noted that more than 80 percent of the transactions sent from Africa to the United States have their final beneficiary in another region. The two main regions where the payment will eventually be transferred are Asia Pacific at 35 percent, and Africa at 19.5 percent.

While that shows that payment between African countries is rising, it also means Chinese activities in the payment space is growing and could overtake the US. Opera, Alibaba and Transsion, backed by seemingly limitless supply of capital are leading the Chinese invasion.

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Barely one-year of launching OPay, a mobile-based platform for payments, transportation, food, grocery and delivery, Opera has led a funding spree of $200 million from Chinese investors. The investment is expected to pave OPay’s way into Africa’s crossborder payment ecosystem.

“OPay will facilitate the people in Nigeria, Ghana, South Africa, Kenya and other African countries with the best fintech ecosystem that Africa has ever seen, paired with the inclusion of daily use services such as transportation and delivery,” Yahui Zhou, CEO of OPay said in a statement.

“We see ourselves as a key contributor to expanding financial inclusion in Africa, and helping local businesses and workforces to thrive from opportunities created by new, digital business models.”

Unlike OPay, AliPay, the world’s largest online and mobile payment platform

with more than 1 billion users operated by Ant Financial Services Group, has been making a gradual entry into the market in Africa.

Again unlike OPay which prefer to build solo, AliPay is leveraging local payment providers to make its journey to the summit of the market.

In 2017, it collaborated with South African-based mobile payment platform, Zapper to enable Chinese tourists in South Africa to pay via smartphones as AliPay. In July 2019, AliPay turned to Flutterwave, a San-Francisco-Lagos-based businessto-business (B2B) payments service to address the Nigerian side of digital payments between Africa and China.

Cross-border payments in Africa have a lot of complexities and inflexibility that make transactions prohibitive for the average individual.

Cross-border transactions are understandably subjected

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to more rigorous sanctions screening, anti-money laundering and fraud protections, typically because they involve very high value transactions.

A Brookings report showed that complexities in crossborder payments - like domestic ‘closed loop’ individual currency systems which solve for an exclusive community of participants - is responsible for 80 percent of Africa’s trade that is exported outside the continent. It is the opposite of what occurs in most other parts of the world. Although the AfCFTA is widely expected to overcome these complexities but new policies around open border are pushing back on those expectations.

But prior to the AfCFTA, several African countries have seriously looked into removing the complexities and allowing payments to flow from one system to another and provide pan-regional settlement capability. The Tripartite Free Trade

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Area between the East Africa Community, the Southern African Development Community and the Common Market for Eastern and Southern Africa are all results of the move to be more flexibility in cross-border payments.

At an Africa-China summit in June, the Cross-Border Interbank Payment System, China, said it hopes to play a more important role in payment by increasing use of the renminbi (RMB) in the China-Africa trade channel.

Already, China’s financial institutions have set up more than 10 branches in Africa and eight countries, including South Africa, already have the RMB in their foreign exchange reserves.

Visa, in the meantime, has a lot of cards to play. It has successfully secured a series of high profile collaborations including a 20 percent equity stake in Interswitch, Africa’s first unicorn payment service provider. Visa was also announced as a partner of new payment service, PalmPay, owned by Transsion, the Chinese manufacturer of smartphone brands such as Techno, Infinix and Itel.

There are hopes that the involvement of telecommunications companies in mobile money will balance the competition and perhaps give local players a slice of the market. But regulatory hurdles telecom companies like MTN have faced in countries like Nigeria and others have ensured their progress is slow.

Experts also say MTN and the big telecommunication companies will have to collaborate more to make cross-border payments more seamless.

Friday 29 November 2019

Harvard Business Review

BUSINESS DAY

25

ManagementDigest

Designing better online review systems Geoff Donaker, Hyunjin Kim and Michael Luca

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OW TO CREATE RATINGS THAT BUYERS AND SELLERS CAN TRUST. Online reviews are transforming the way consumers choose products and services. Managed well, a review system creates value for buyers and sellers alike. Trustworthy systems can give consumers the confidence they need to buy a relatively unknown product.

But for every thriving review system, many others are barren, attracting neither reviewers nor other users. And some amass many reviews but fail to build consumers’ trust in their informativeness. Research by Mike and Georgios Zervas has found that businesses are especially likely to engage in review fraud when their reputation is struggling or competition is particularly intense.

Drawing on our research, teaching and work with companies, this article explores frameworks for managing a review ecosystem — shedding light on the issues that can arise and the incentives and design choices that can help to avoid common pitfalls.

NOT ENOUGH REVIEWS Many review systems experience a shortage of reviews, especially when they’re starting out. While most people read reviews to inform a purchase, only a small fraction write reviews on any platform they use. This situation is exacerbated by the fact that review platforms have strong network effects: It is particularly difficult to attract review writers in a world with few readers, and difficult to attract readers in a world with few reviews.

We suggest three approaches that can help generate an adequate number of reviews: — SEEDING REVIEWS: Early-stage platforms can consider hiring reviewers or drawing in reviews from other platforms (through a partnership and with proper attribution). For platforms looking to grow their own review ecosystem, seeding reviews can be useful in the early stages because it doesn’t require an

established brand to incentivize activity. However, a large number of products or services can make it costly, and the reviews that you get may differ from organically generated content.

— OFFERING INCENTIVES: Motivating your platform’s users to contribute reviews and ratings can be a scalable option and can also create a sense of community.

Financial incentives can become a challenge if you have a large product array. But a bigger concern may be that if they aren’t designed well, both financial and nonfinancial incentives can backfire by inducing users to populate the system with fast but sloppy reviews that don’t help other customers.

— POOLING PRODUCTS: By reconsidering the unit of review, you can make a single comment apply to multiple products. On Yelp, for example, hairstylists who share salon space are reviewed together under a single salon listing.

A risk to this approach, however, is that pooling products to achieve more reviews may fail to give your customers the information they need about any particular offering.

All these strategies can help overcome a review shortage, allowing content development to become more selfsustaining as more readers benefit from and engage with the platform. However, platforms have to consider not

only the volume of reviews but also their informativeness — which can be affected by selection bias and gaming of the system.

SELECTION BIAS Research has shown that users’ decisions to leave a review often depend on the quality of their experience. On some sites, customers may be likelier to leave reviews if their experience was good; on others, only if it was very good or very bad. In either case, the resulting ratings can suffer from selection bias: They might not accurately represent the full range of customers’ experiences of the product. If only satisfied people leave reviews, for example, ratings will be artificially inflated. Selection bias can become even more pronounced when businesses nudge only happy customers to leave a review.

Any review system can be crafted to mitigate the bias it is most likely to face. The entire review process — from the initial ask to the messages users get as they type their reviews — provides opportunities to nudge users to behave in lessbiased ways. Experimenting with design choices can help show how to reduce the bias in reviewers’ self-selection as well as any tendency users have to rate in a particular way.

REQUIRE REVIEWS. A more heavy-handed approach requires users to review a pur-

chase before making another one. But tread carefully: This may drive some customers off the platform and can lead to a flood of noninformative ratings that customers use as a default — creating noise and a different kind of error in your reviews. For this reason, platforms often look for other ways to minimize selection bias.

ALLOW PRIVATE COMMENTS. The economists John Horton and Joseph Golden found that on the freelancer review site Upwork, employers were reluctant to leave public reviews after a negative experience with a freelancer but were open to leaving feedback that only Upwork could see. This provided Upwork with important information — about when users were or weren’t willing to leave a review, and about problematic freelancers — that it could use either to change the algorithm that suggested freelancer matches or to provide aggregate feedback about freelancers.

DESIGN PROMPTS CAREFULLY. More generally, the reviews people leave depend on how and when they are asked to leave them. Platforms can minimize bias in reviews by thoughtfully designing different aspects of the environment in which users decide whether to review.

FRAUDULENT AND STRATEGIC REVIEWS Sellers sometimes try (un-

ethically) to boost their ratings by leaving positive reviews for themselves or negative ones for their competitors while pretending that the reviews were left by real customers. This is known as astroturfing. The more influential the platform, the more people will try to astroturf.

Platform design choices and content moderation play an important role in reducing the number of fraudulent and strategic reviews.

SET RULES FOR REVIEWERS. Design choices begin with deciding who can review and whose reviews to highlight. For example, Amazon displays an icon when a review is from a verified purchaser of the product, which can help consumers screen for potentially fraudulent reviews.

CALL IN THE MODERATORS. No matter how good your system’s design choices are, you’re bound to run into problems. Moderation can eliminate misleading reviews on the basis of their content, not just because of who wrote them or when they were written.

Content moderation comes in three flavors: employee, community and algorithm.

PUTTING IT ALL TOGETHER Online reviews have been useful to customers, platforms and policymakers alike. But for reviews to be helpful — to consumers, to sellers and to the broader public — the people managing review systems must think carefully about the design choices they make and how to most accurately reflect users’ experiences.

Geoff Donaker manages Burst Capital, through which he invests in and advises tech startups. He was Yelp chief operating officer from 2006 to 2016.

Hyunjin Kim is a doctoral candidate in the strategy unit at Harvard Business School.

Her research explores how organizations can improve strategic decision-making and productivity in the digital economy. Michael Luca is the Lee J. Styslinger III associate professor of business administration at Harvard Business School and a co-author (with Max H. Bazerman) of the forthcoming book “The Power of Experiments: Decision Making in a Data-Driven World.”

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Friday 29 November 2019

BUSINESS DAY

entertainment

Nikita Kering; Truly Africa’s music revelation OBINNA EMELIKE

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udging by all standards, the 6th edition of the All Africa Music Awards (AFRIMA) was a success. From a befitting venue, spectacular opening, presence of an array of African music icons and upcoming ones, enthralling live performances, award presentations to the cheerful African audience, the show lived up to expectations.

But beyond the glamour and entertainment, this year’s edition was a revelation of the shift in the music industry with the emergence of new music acts across the continent who are upstaging the big names.

Nikita Kering, a 17-year-old Kenyan music sensation, was the highlight for many who graced the awards night. The teenage musician truly upstaged the big names to win big at the awards this year.

The Kenyan teenager, who was accompanied by her mother to AFRIMA 2019 awards, stole the show at Eko Convention Centre, Eko Hotel and Suites, Victoria Island Lagos, venue of the awards, when she emerged winner in two notable categories.

She defeated the likes of South Africa’s Sho Madjozi and Tellaman, Nigeria’s WurlD/Sarz and Skiibii, Egypt’s Hamada Helal and Tanzania’s Rosa Reese to emerge winner of the Revelation of the African Continent category.

Of course, she is truly a revela-

Nikita Kering performing at AFRIMA 2019

tion. She started in music when she was barely 9 years as a passion and today, the 17-year-old singer has toured the world, thrilling international audience and wining fans with her music at home and abroad.

Yet, she surprised those who undermined her prowess by going further to win the Best Female Artiste in Eastern Africa, a category mostly won by established music acts.

Surprisingly, the teenager

beat seniors such as Uganda’s Irene Namatovu, Tanzania’s Maua Sama, Queen Darleen and Vanessa Mdeeto to carry the day as the best female musician in East Africa at just 17 years.

When she was announced as the winner of the best female artiste category, her mother said the obvious on stage while about receiving the awards on her behalf. She said, “You know Nikita is a small girl, she is feeling sleepy and may have retired in her hotel

room”. Many were laughing, but that is true of her daughter, though she appeared at the right time to assist her mother in receiving the award.

She was delighted at wining the awards, but still hopes to get to the top, just like her idols Beyoncé and Adele. With the way things are going in her favour, she will not stop until she gets to the top like her idols.

Well, credit goes to the award’s judges and voters for choosing

performance over big names. As well, the ‘big names’ need to wake up as the underdogs are becoming more determine to upstage them with unmatched creativity.

Nikita won the two awards with her song titled ‘Happy with you’, but her adorable voice and lovable nature endear her to the fans, especially the audience at AFRIMA 2019 awards .

Nikita Kering, Kenya’s rising teenage music star, debuted in the music scene during the album launch of Emmy Kosgei, Kenya’s gospel powerhouse, in December 2011, where she performed on stage with the main act, who later became her mentor.

Since then, she has honed her craft further, performed in Nigeria at Emmy Kosgei’s wedding, at the Gotabgaa International Conference in Washington DC, and has made music and cultural tours to Cologne, Germany, and Pretoria, South Africa.

Back home in Kenya, she has performed locally at various events.

Also top winners at AFRIMA 2019 include; Saudi Sol, who clinched the Album of the year in Africa, Artiste of The year in Africa went to Burna Boy, while Wizkid won the Song of the year award.

In the tradition of the awards, AFRIMA Lifetime Achievement Awards were presented to Awilo Logomba and Innocent Idibia (2Baba) for their sustained contributions to the development of the music industry in Africa.

Mike Aremu, saxophone sensation, set to celebrate 20 years in music OBINNA EMELIKE

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o doubt, Mike Aremu is Nigeria’s front running saxophone player, as well as, one of the most successful global Jazz exports from Nigeria. However, Aremu has been thrilling fans and global audience with his saxophone for 20 years now and thinks it is a feat worth celebrating.

On Sunday December 22, 2019, the super saxophonist is rolling out colourful drums to celebrate his two decades in music at Lagos Continental Hotel, Victoria Island, Lagos with a concert. The 20th anniversary event will feature his fellow musicians mostly of the Gospel genre such as Tim Godfrey, Sammie Okposo, Tope Alabi, Onos Ariyo, Ibitayo Jeje and a host of others.

Mike grew up in Niger State where he was encouraged to play a musical instrument in school.

From the school exposure, he went further to learn other basic lessons and in 1995 he made full transition and concentrate solely on the Saxophone. He joined House on the Rock’s music team in 1996 having also played with the Compassion Band of the Strong Tower Mission – a charity

organization. As his confidence grew, so did his reputation as a charismatic musician.

In 1999 Mike signed a record deal with Kennis music under which he released two chart topping albums (“Dance” -1999 and “No Shaking” -2002) making total of near 2 million copies from his first two albums; a record in sales for a Jazz artiste. He has also recorded two songs for the Christian Broadcasting Network (CBN) in the United States.

To date he has played alongside notable international artistes like Kenny G, India Arie, Hugh Masakela, Najee, Bill Laurance, Kirk Franklin, Marvin Winans, Israel Houton, Mary Mary, Fred Harmond and the likes. He appeared at the John F Kennedy Centre, Washington DC’s main concert arena. He has also made considerable progress in Europe, in particular the UK where he has performed in some of UK’s principle music venues like The Barbican, Apollo London, Apollo Manchester, The Ocean, among others. In the United Kingdom, Mike has sold out a few venues in his own concerts including the famous jazz café, twice and made history as one of the few Africans to ever make such landmark ; aside venues such as London’s www.businessday.ng

famous Jazz venue, Pizza Express Jazz Club and the O2 Academy, Islington. Performing before mega crowds is quite becoming normal to Mike. He has performed eight times at the Lagos EXPERIENCE, a concert tagged to be the world’s largest gospel music concert, attracting a crowd of over 600,000 at the Tafawa Balewa Square (TBS), Lagos. Mike Aremu has also performed twice at the London

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Festival of Life (FOL) an event that is attended by over 40,000 people at the Excel Centre, London. He has also performed at the FOL Wales and Scotland. The Green Belt festival was also a part of a major feat for his music career as he performed to an audience of 30,000. Mike is the convener of the biggest jazz concert series in Nigeria, Sax Appeal, a concept which is geared towards the rebirth

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and promotion of live musical performances in Nigeria. It also aimed at creating a platform for interaction between sponsoring organisations, corporate executives and entrepreneurs coming together under an entertainment friendly environment. Sax Appeal has featured renowned artistes like Kenny G, India Arie, Jessy Jay, Judith Sephuma, Kunle Ayo, Yolanda Brown, Agboola Shadare, Yinka Davis, Tosin Martins, Bez, Timi Dakolo, Cobhams, Waje and many more.

He has also received industry recognitions. He won TOMA Awards (Today’s Gospel Music Awards) and AMEN Awards, Best Instrumental Album of the Year and Best Gospel Music Video of the Year in 2014. He also won AGMA in 2019, 2018, 2017 and 2016 Instrumental Musician of Excellence. He won in four categories at the 2014 MEGA Awards (Album of the Year, Best Collaboration, Best Use of Instrument, and best Contemporary/Alternative Album of the Year). He won the 2014 Crystal Awards for Best use of Instrument among many other awards.

Nowadays, Mike spends a considerable amount of time traveling and performing at venues across the world.

Friday 29 November 2019

BUSINESS DAY

27

entertainment ‘Highlife music has taken another form, more like a mutation’ Bimbo Esho, managing director, Evergreen Musical Company Ltd, wrote her final year thesis at University of Ibadan on “Highlife Music in Nigeria”. Her father, Femi Esho, is Africa’s largest collector of music of yesteryears with over 100,000 original vinyls of different African musicians in his archive. In this interview with Obinna Emelike, she talks about the place of highlife music in Nigeria and also about Ariya Eko, her upcoming music festival. Excerpts: What is Evergreen Musical Company all about? vergreen Musical Company is the largest collector of music of yesteryears. The company have been in existence for over 25 years and has been the brain behind the preservation of indigenous music of yesteryears such as Juju, Fuji, Apala, Highlife, Sakara, and Waka. The company also has the licensing right to promote and market few of the music of Nigerian and Ghanian indigenous music icons like Adeolu Akisanya, Fela Anikulapo Kuti, Victor Olaiya, Rex Lawson, Tunde Nightingale, ET Mensah, C.K Mann, King Kennytone, Crosdale Juba, Ramblers Danceband, among others..

sake of posterity and also to show the world that we are a people that have musical roots, culture and identity. Our music dictate our mood and it is a reflection of our way of life.

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What is the place of highlife music in Nigeria given that it is almost going into extinction?

Highlife music is one of the greatest musical gift to mankind. I do not believe it is going into extinction but rather I will say it has taken another form more like a mutation. Few of the younger acts today play highlife.

People like Flavour, BRYMO even Sunny Nneji.

Ariya Eko Music Festival is coming up very soon. What is it all about?

Ariya Eko Music Festival is a yearly festival geared towards the recognition and celebration of the rich, vibrant and nostalgic musical

What are the criteria used in selecting the artistes for the project?

There is really no criteria as such just that any performer at Ariya Eko must be able to perform with a live band, must have been in the music system for years whether popular or unpopular and should have his or her own compositions.

How much of support are you getting from Lagos State government?

We are doing the event in partnership with Lagos State government.

We are happy to have Babajide Sanwo-Olu, a listening governor, who is irrecoverably passionate about tourism and sees the importance of music in tourism.

Bimbo Esho

culture and heritage of Lagosians and Nigerians in general. It is traditional and contemporary form while harnessing its potency for development of the highly needed vintage music culture.

What is the motivating factor for the music festival?

The motivating factor is in a bid to preserve some of our dying core indigenous music repertoire for the

Is Ariya Eko a continuation of Faaji Agba Eko which you hosted last year?

Faaji Agba Eko had a different theme and concept. It was more about fun for the older generation.

Ariya Eko is for both old and young.

This year we believe that both old and young should have a feel of Ariya (fun) in Lagos.

You are honouring Ebenezer Obey Fabiyi with Evergreen Hall

of Fame. What informed the idea?

Chief Commander Ebenezer Obey has paid his dues in the area of music. With his music, he has touched many lives. He has been able to showcase our musical aesthetic (juju music) to the world. He has the largest music repertoire in Africa with about 660 songs. He is a worthy ambassador of our country, hence, we believe he must be curated for posterity for children yet unborn, for students of history and for artistes who want to learn about good music. Another highlight of the music festival is the celebration of Shina Peters 30 years of his evergreen song - ACE. Besides putting the show together, what about other logistic arrangements like security?

Lagos is a place that takes security and the life of its citizen very seriously. Security is guaranteed during this event considering the calibre of people that will be in attendance both at home and from the diaspora.

What will you love to see at Ariya Eko to describe it as a success after the show?

Wow. I cannot wait to watch the veterans and the young acts come together under one roof to buttress the saying that the “YOUNG SHALL GROW “. There is no better time than NOW and there is no better show to capture this than Ariya Eko.

First Bank partners Linda Ikeji on First Class Material TV show

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irst Bank of Nigeria Limited, a leading Nigerian financial institution, has thrown its weight behind Linda Ikeji, the blogger, in projecting the good image of Nigeria through First-Class Material, a television programme that commenced airing during the week.

The show aims at digging deep across the country to discover and showcase a generation of Nigerians who are doing very well in their respective endeavours.

The 15-20 minutes programme airs on the Linda Ikeji Television every Tuesdays and Thursdays, as well as, on Linda Ikeji YouTube and her other social media platforms.

With First-Class Material initiative, both organisations are offering platform to entrepreneurs and professionals who are making great impact on the economy, as well as, on human capacity development programmes to be profiled on television for promotion and public reckoning.

Speaking at a media conference, which held recently at Eko Hotel and Suites, Victoria Island, Lagos, where the partnership was unveiled, Folake Ani-Mumuney, group head, marketing and corporate communications, First Bank of Nigeria Limited, said the financial

institution backed the initiative because it projects good image of Nigeria.

“First Bank of Nigeria Limited partnered Linda Ikeji TV for the broadcast of the TV programme, First Class Material because apart telling our story as a country, First Class Material also aims to make education, vocational training and skill acquisition trendy, attractive and fashionable to the nation’s human capital by celebrating and re-

warding exceptional Nigerians that have made an indelible mark in their chosen endeavor, irrespective of where they are, thereby inspiring the next generation”, she said.

She explained that the reason for the partnership with Linda Ikeji Television was informed by the need to make the programme become a wider dream, as television is tailored to such idea.

While urging the government, individuals and corporate or-

ganisations to emulate the idea, Ani-mumuney said, there are lots of talents in the country waiting to be celebrated.

Explaining the reason behind the project, Linda Ikeji explained that she was moved by the negative narratives being spread about Nigeria, saying in spite of the challenges the nation is going through, there are lots of First Class Materials among Nigerians.

Ikeji explained further that the

L-R: Sipasi Olalekan of L’Africa Integrated Farms, Folake Ani-Mumuney, group head, marketing and corporate communications, First Bank of Nigeria Limited, Linda Ikeji and Abdulhakim Bashir at the media briefing where the partnership was unveiled recently. www.businessday.ng

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initiative focuses on Nigerians who have performed incredibly well, adding that it targets 200 people across board to select the best among them for profiling.

Two of Nigerians who are billed to feature in the first airing of the TV programme are; Abdulhakim Bashir, the founder of CHINIKI Guard, which provide updates on activities going in retail stores by analysing video feed from CCTV and Sipasi Olalekan of L’Afrika Integrated Farms.

Bashir, who was at the unveiling, recently went to Dubai for a competition on artificial intelligence comprising 7050 contestants and won an award. He built an application that helps retail shops to report shoplifting and theft by analyzing using CCTV cameras.

He said he has passion for artificial intelligence and that when he learnt about the First-Class Material initiative he submitted form and got selected.

However, the criteria for featuring on the show is based on evidence that the person is doing something remarkable. The initiative is for people who have been discovered, while the general public is encouraged to look out for candidates for the First-Class Material from across the country.

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Friday 29 November 2019

BUSINESS DAY

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Friday 29 November 2019

BUSINESS DAY

LEADINGWOMAN

Amina J. Mohammed

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Amina-Oyagbola

In developing women to build a better nation, WISCAR holds annual conference themed I Do Not Walk Alone Kemi Ajumobi

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ISCAR (Women In Successful Careers) is a non-profit organisation focused on empowering and developing professional women to contribute to development and growth in Nigeria and indeed Africa.

The WIN with WISCAR Mentoring programme is a structured mentoring program that provides strategic career advice, inspiration, guidance and support to young career women to help unleash their potential, navigate career pathways, foster ambitions and nurture dreams.

The organisation has earned a reputation for building a formidable network of focused women who will facilitate a new chapter of experience in the workplace and in organisations.

Since its inception in 2008, inspired by ALIWA (Africa Leadership Initiative West Africa), WISCAR has equipped several professional women with relevant skills and competencies to effectively manage their careers and assume leadership positions and contribute to nation building.

WISCAR recently held her annual leadership and mentoring conference which took place at the Muson centre, Lagos, themed I Do Not Walk Alone.

In her opening address, the Founder/Chairperson, WISCAR, Amina Oyagbola said at WISCAR, they have continued to make measurable achievements in their mission to develop women to build a better nation.

She stated that they have consolidated on the gains from previous years, made significant new strides, forged new partnerships and impacted on the lives of an increasing number of people.

“Let me remind us all that our vision remains the preparation of generations of up and coming women for meaningful, aspirational and ethical leadership. Our way is to inculcate in future and present women leaders the methodology, knowhow, road map and confidence to navigate their way to increasing influence and success.” Amina said.

She further revealed that with support from WISCAR, this 10th stream of mentees have helped to organise and participated in a group project called the Grow and Learn Initiative (GLIN). The project is a mentoring outreach programme for 500 girls in both public and private secondary schools in Lagos State.

These graduating WISCAR mentees, according to Amina, are therefore already paying it forward. “Our fervent prayer is that this positive chain will never be broken. This initiative is carried out under the ACT Foundation grants, powered by Access Bank Plc.” Oyagbola revealed.

In her speech, the keynote speaker, Deputy Secretary General, United Nations, H.E Amina J. Mohammed said WISCAR initiative is so important to empower women to contribute to economic development and nation building here in Nigeria, across Africa and across regions. www.businessday.ng

“Women bring a lot to the table and when we say they bring a lot to the table, it’s not just food. This has got to change. That balance of power has to transform itself and the pace of that change has got to be accelerated because when that happens, we are all better for it.

Networks like WISCAR has a key role to play in making that change happen from the inside out, it means creating networks, reaching out across the country and other parts of the world. Networks create more opportunities, promote solidarity, foster peering and encourage generations to share wisdom and aspirations for the future.” Mohammed asserted.

She further added that “beyond opportunities, networks are deeper and transforms institutions. When women enter a space once dominated by men, it changes perspectives, bringing in new perspectives, correcting thoughts and outcomes.

We know it is difficult to multiply and amplify women’s voices and to ensure their presence at executive boards and tables of peace, but as women take roles that are dominated by men, there is resistance, for that, we need to push back against the push back.” Amina passionately declared.

In Amina’s view, for every space we get as women, we should occupy and bring more of us in. She also acknowledged men who champion women’s rights and encouraged them to do more. She however paused to express her dissatisfaction and rejection of

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the death of the female politician in Kogi state. Amina describes the act as “absolutely unacceptable”.

For the Deputy Secretary General, if there is anything we need to take away, it is perseverance. She insists that we must keep sticking at it. “Often in your journey, you will be dissuaded but stick to what is right. Once you do, even if it seems impossible, one day, you will become an essential commodity, everybody is looking for the person doing the right thing.” Said Mohammed.

Sharing on the theme of the conference ‘I don’t walk alone’, Amina Mohammed says this is true. In her words, “This is so true because I have never walked alone. I have stumbled but not fallen. I am first to say everything I do is accompanied by God. When things happen, we want to retaliate but the most wonderful opportunity is that when you are accompanied by God, you never get it wrong.”

Distinguished guests who shared on the theme “I do not walk alone” included: the Honourable Minister of State, Federal Ministry of Environment, Sharon O. Ikeazor, member of the Federal House of Representatives, Chairman House Committee on Diaspora, Hon. Tolu Akande-Sadipe, Lawyer, banker and international development expert currently Nonexecutive director at FBN Holdings, Cecilia Akintomide OON and Funmi Omo MD/CEO of African Alliance.

The panel was moderated by the publisher of Business Day, Frank Aigbogun.

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Friday 29 November 2019

BUSINESS DAY

INTERVIEW ‘Stable forex market promotes economic growth’ The full impact of the Central Bank of Nigeria’s (CBN) increase in Loan to Deposit Ratio (LDR) to 65 percent for banks will be seen in their 2020 earnings. Also, sustaining the stability in the foreign exchange market and funding for Small and Medium Enterprises (SMEs) are some of the issues that will be discussed at the Financial Market Dealers Association of Nigeria (FMDA) market-development conference titled: ‘The Nigerian Financial Market – An Agent for Growth and Development,’ holding in Lagos on December 6. In this interview, Adetoun Dosunmu, FMDA president, speaks on key issues driving the financial markets and what investors should expect in the coming year. Excerpt: Would you share perspectives on the Nigerian forex market, and in your view, factors responsible for the level of stability witnessed in the market the last couple of years? he Nigerian forex market has been quite stable at N360 to N362 to dollar since the introduction of the Investors and Exporters’ forex window by the CBN in 2017, with the CBN being the major supplier of forex to the market through the various intervention windows. The price of crude oil averaging $63 per barrel and the sovereign Eurobond issues have helped to shore up the country’s reserves to $40.5 billion in October 2019 to accommodate 11.9 months of imports.

The CBN has demonstrated the willingness to meet demand at the different intervention windows and has proven to be capable of doing so throughout this year. I do not foresee a change in the exchange rate in the nearest future.

What is your general overview of the Nigerian financial markets and areas you think need government or regulatory support?

The Nigerian financial market has great potentials to drive growth and sustainable economic development, with the advent of new products and the use of technology to enhance financial inclusion.

The government can support by providing an enabling environment to support lending to the real sector thereby driving economic activities – both in the formal and informal sectors. This will ultimately lead to economic growth. For sustainable economic growth, there must be a deliberate collaboration between the government, the financial sector and the real sector.

What are your thoughts on corporate governance practices in the financial markets and what should be done to strengthen it in the overall interest of stakeholders?

The core principle of corporate governance in Nigeria is on how to make those in the management of the companies more accountable, responsible and sensitive to the interests of shareholders, creditors and members of the public. We now have transparent, accountable and ethical business structures in line with global best practices.

I believe the regular audit exercises being conducted by the different regulatory bodies on different levels ensure that corporate governance is enshrined in the management of financial institutions in Nigeria and regular updates of the principles are done and as when necessary. In addition, the CBN has consistently taken steps, including issuance of circulars that guide banks and discount houses regarding monitoring compliance on implementation of the Code of Corporate Governance and submission of quarterly returns.

You were recently elected president of FMDA. What is your vision for the association and immediate priorities for the group’s members?

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Adetoun Dosunmu

The FMDA has consistently contributed to the development of the financial sector by collaborating with the government and financial markets regulatory bodies in formulating policies on monetary issues as well as creating awareness of financial markets products through education, technical advice and networking events.

The FMDA’s vision is promoting efficient market practices by encouraging high standards of conduct and professionalism. The association’s priority among others is to contribute to the growth and development of our financial markets as well as the protection of the interest of members in the exercise of their dealing/trading activities.

Our immediate priorities are to create structured and regular meetings with the Central Bank of Nigeria and other regulatory agencies in financial markets. We will also build members’ capacity in new products with continuous learning and knowledge sharing on best global practices.

The FMDA will be organising the second Financial Markets Conference in Lagos on December 6 with theme: ‘The Nigerian Financial Market – An Agent for Growth and Development.’ Why has the Association decided to play up this segment of the market at this time?

In 1999, Nigeria had a dream, it was coined The Vision 20:2020 - Nigeria will become one of the first 20 economies in the world by the year 2020 but as at today, even with an estimated population of over 200 million and it being largest economy in Africa , we are yet to live up to that potential. Though the economy had in 2017, came out of recession, its first in 27 years, the World Bank projects growth to be a mere 2.1 percent in www.businessday.ng

2020 while the population is projected to double by 2050.

Looking at these projections seems to be very dire compared with the vision that was conceived over 20 years ago. The FMDA is well aware of the fact that for an economy to grow and be sustainable, vibrate financial market is a necessity while SMEs are required to create employment for a ballooning population. This we see as the recipe for growth and development of the Nigerian economy in the very near future and we believe that the theme of the conference is quite appropriate for such a time as this.

The conference will serve as an avenue for all market participants, regulators, policy makers and the general public to rub minds, share and collaborate on driving growth and development of our country especially with the government’s commitment to fostering rapid growth in the real sector.

Who are the stakeholders expected to attend this programme and what will be your preferred likely takeaways towards business growth?

We look to have in attendance, SMEs, Regulators (CBN, FMDQ OTC Securities Exchange (FMDQ), Nigeria Deposit Insurance Corporation, Debt Management Office, Securities and Exchange Commission, other government agencies, Deposit Money Banks/financial market participants, corporate treasurers, fund managers and the general public.

On my preferred take ways, I will like to see collaborative engagements between the financial markets and corporates, entrepreneurs, small/ medium business level owners – with targeted ways of fostering business engagements on both sides of the divide,

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with resultant increase in lending to the real sectors and ultimately in the medium term accelerated growth and development of our economy.

This year’s conference is bringing in top government officials - the Speaker, House of Representative, Femi Gbajabiamila, is the special guest. Are there certain areas of financial markets operation in your view that need legislative intervention?

As the market evolves in line with best global practices, new products will be developed and traded, this will result in international participants in our markets thereby creating liquidity in these products.

There is therefore the need for a new legal framework that will require legislative support that will give comfort to investors – both local and international and ease operational challenges in trading these products.

We believe the forum will be an avenue of collaboration between the market and the legislature on these matters and much more.

Also, the sub-theme of the conference - “Unlocking Real Sector Development: SMEs as an Agent of Growth and Development International Monetary Fund Perspective” will be presented by IMF Country Chief, Amine Mati; the Role of Small and Medium enterprises Development Agency of Nigeria (SMEDAN) in Enhancing Sustainable Business Growth for SMEs will be presented by SMEDAN Director General, Dikko Radda and Intermediary Role of Banks – SMEs As Springboard of National Economic Growth and Development - managing director/CEO, Sterling Bank, Abubakar Suleiman, are focused on SMEs development.

What are your thoughts on the state of the SMEs in Nigeria and what should be done to lift their operations?

The SMEs have been discovered to be a key driver for any country’s economic growth. And as seen all over the world, the SME sector is the backbone of major developed economies, as well as an important contributor to employment.

With the significant contribution of SMEs to the Nigerian economy, I believe the sector needs support from all and sundry. The government can provide an enabling environment for them to function, transportation and stable power supply comes easily to mind. Imagine the impact of the reduction in the cost of transporting goods and services from one point to the other or the effect on their bottom line if you remove the cost of generating electricity to power their businesses. Taxation is also an issue, some states charge multiple taxes which have become huge burden on SMEs. The financial markets can also provide access to reasonable priced credits to grow and expand their business operations.

Again, due to the complexities of dealing with the formal financial markets, many resort to the informal lending sector which is quite expensive. Generally speaking, doing busi@Businessdayng

ness in Nigeria is pretty expensive, this stalls their ability to expand and grow their businesses, generate more employment and contribute to economic development.

What is your 2020 forecast on the performance of financial institutions and the equities market?

Just using a back of the envelope approach, I think the market will be slightly positive in 2020. After closing down for two consecutive years (-18% in 2018 and -14% year to date), we see the market closing up by around +10 percent in 2020.

The supporting catalysts are depressed equity valuation which is supportive for most stocks. Almost all the names are cheap, with most of them trading near or close to their trough price to earning multiples.

Also, with the regulatory stance of the CBN, particularly the restriction on Open Market Operation (OMO) Bills, we expect to see some asset class rotation into equities as investors search for yields.

There is also strong outlook for oil prices on the back of geopolitical events and current policy stance of the US Fed- recent reduction of interest rates among others are expected to help in boosting the market.

I expect to see the full impact of the increase in Loan to Deposit Ratio (LDR) policy on the financial institutions’ earnings by 2020, which might have flat impact on their earnings vis-à-vis 2019 results as banks adapt to a higher risk asset earning environment. The border closure if it progresses into 2020 might also have an impact on lending, as Nigerians look inwards to meet demand for exported products.

What role do you think that improved risk management framework could play in building a sustainable financial sector and better funded SMEs? Adequate risk management framework is key to having a sustainable financial sector. Any rational investor or finance provider would only deploy capital having done its due diligence by identifying all the risks involved in the venture as well as ways to mitigated all risks – both known and perceived.

A risk management framework provides the tools to ensure that this is done as well as reduce exposures to unfavourable markets and economic conditions. In addition, robust risk management framework ensure that only SMEs that are well structured have access to credit.

What should be done to boost local and foreign investments into the Nigerian economy?

Several factors influence investment decisions in any given economy.

They include an open market that is transparent; an enabling environment- adequate infrastructure, attractive tax incentives /breaks, targeted sectoral initiatives to drive investment in non-oil sectors; access to credit; a skilled workforce/cheap labour amongst others are necessary to drive investments in any economy.

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feature

Imperatives of corporate drive to harness youths’ creative skills for productivity In Nigeria, a high percentage of youths have innate creative skills, but lack the required avenue to showcase such in order to make them competitive. This drawback may negatively impact the economic future of the country if not tackled.

KELECHI EWUZIE writes on how MTN Foundation through its theatre for schools initiative is addressing this.

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igeria is facing a youth employment crisis, with figures from the Nigerian Bureau of Statistics showing youth unemployment rate averaging 23.63 percent from 2014 to 36.50 percent in the third quarter of 2018.

It is worrying that deficient school curricula and poor teacher training have contributed to the failure of educational institutions to provide their students with the appropriate skills to make them employable and function effectively in the 21st century.

There is also the huge burden that a high percentage of Nigerian youths stand little competitive chance of securing high-paying jobs globally because they are illequipped to provide the needed solution that huge global workforce demands.

It is the general views of industry watchers that any country serious about preparing her future generation to be competitive in the the global market will ensure her children are actively engaged not just in classroom work, but other creative aspects of learning from a very early age.

While most secondary schools in Nigeria lay claims to having drama and creative arts classes where they teach the pupils the rudiments of play-acting and culture, serious efforts need to be channelled to ensure that a focus on Arts and Culture is supported, as this will stimulate public interest in Nigerian Arts and Culture as well as encourage the adoption of theatre from an early age by talented young Nigerians.

It has also become imperative that young Nigerians be provided the opportunity to focus on Arts and Culture as this will create a platform for them to build capacity in the performing arts.

Indeed, it could be argued that very few organisations understand the critical role that youths could play in business sustainability and future growth than MTN foundation does.

What today is known as MTN foundation was established on 11th of May, 2005, the Foundation is funded by up to one percent profit after tax (PAT) from MTN Nigeria and has shown greater passion to institute deeper engagements with the youth across the six geopolitical zones of the country.

The foundation understands

for Blind Students is aimed at providing academic scholarship annually to eligible full-time Blind students in accredited tertiary institutions (universities, polytechnics and colleges of education) across the six geo-political zones in Nigeria.

The MTN Foundation Science and Technology Scholarship (MTNF STS) Scheme, now in its Fifth Phase, was introduced in the 2009/2010 academic session to assist high performing Nigerian students to pursue their academic education in tertiary institutions (Universities, Polytechnics and Colleges of Education) across the country. Each award is worth N200, 000 covering tuition, book allowance and pocket allowance every academic year. Subsequently, the scholarship is renewed L-R Mazen Mroue, chief operating officer, MTN Nigeria; Nonny Ugboma, executive secretary, MTN Foundation; Esther annually on the condition that Akinnukawe, chief human resources officer, MTN Nigeria with representatives of Vital Years Secon students maintain the required grades.

Under the MTNF STS Scheme Accompanied by their respecthis connection and its sustain- mended the efforts of the finalists ability strategy is underscored by and applauded the stand-out tive coaching teams, the regional 500 top scoring candidates are its continued investments in the performance of the eventual win- teams arrived Lagos to compete selected annually as new benefiyouth. MTN foundation’s mis- ner, Vital Years Secondary School. for the one million Naira (N1, ciaries following an aptitude test Ugboma noted that without 000,000.00) prize money. The set for 2nd-year students who have sion is evident in its support for several youth-oriented initiatives a doubt, the competition was a keenly contested final saw a great maintained a 3.5-grade point and alongside its aggressive innova- keenly contested one and the best display of budding talents from the above.

This year alone, over 7,800 team won, adding that the pas- young aspiring actors. tive drive.

The judges were made-up of students applied for a scholarship In keeping with its passion sion, creativity and sheer depth for youth empowerment under of composure displayed by these seasoned theatre practitioners with their submissions evaluated; its social investment vehicle, students only help to re-confirm like Bimbo Manuel, Tina Mba, and on verification of academic reMTN Foundation organised the that decision of MTN foundation AfeezOyetoro, KemiLalaAkindoju cords, 1,500 shortlisted applicants maiden edition of Theatre for to invest in the grassroots develop- and Patrick Jude Ote who is the ar- were invited for computer-based Schools Competition for second- ment of local talent was the right tistic director of the Jos Repertory aptitude tests in 3 locations across economic and human develop- Theatre. Divine Autafrom Vital the country. ary schools across Nigeria.

The MTNF Science & TechYears Secondary School emerged The Theatre for Schools compe- ment decision.

According to her, “The 2019 the best male thespian, while nology Laboratory Project is an tition represents one of MTN foundation’s sustainability initiatives. MTN Foundation Theatre for AbioyeAyomide of Idikan Baptist initiative of the MTN Foundation, With a focus on Arts and Culture, Schools competition was imple- Comprehensive College of Ibadan which involves the renovation and equipping of laboratories and aimed at creating a platform for mented in collaboration with the was named the female thespian.

As a foundation that is commit- turning them into state-of-the-art students to build capacity in the theatre arts departments of the performing arts, stimulating pub- Ahmadu Bello University (ABU); ted to the development of Nigerian Science laboratories. The project lic interest in Nigerian Arts and University of Ibadan and the youth, MTN foundation recog- aims to improve learning and Culture as well as encourage the University of Port Harcourt. Each nises education as the bedrock of practical teaching of core science adoption of theatre from an early school received state-of-the-art sustainable development, which subjects (i.e. Chemistry, Physics equipment worth two million, is why education is one of its core & Biology) in public Secondary age by talented young Nigerians. schools to enhance students’ The maiden edition of the five hundred thousand naira (N2, social investment areas.

The foundation is underscoring academic performances in these competition which drew par- 500,000.00) each to enhance their its commitment to sustainable subjects. ticipants from secondary schools creative practice”.

These initiatives among others Ugbomafurther said the MTN development through education across the country had its regional competitions in Ibadan, Zaria and Foundation’s Arts and Culture by awarding scholarship grants to are proofs of MTN foundation’s Port-Harcourt respectively. Idikan causes have for the last five years Nigerian university undergradu- commitment to sustainable deBaptist Comprehensive College of supported shows, plays, musicals ates to reward and encourage velopment in communities across Ibadan emerged regional cham- and initiatives that aim to tell au- academic excellence amongst Nigeria.

It is the belief of stakeholders Nigerian undergraduates. pion from the Ibadan zone while thentically Nigerian stories.

MTNF educational initiatives in the education sector that with “Recent productions supportNigeria Navy Secondary School of Port-Harcourt emerged the re- ed by the Foundation include have seen it provide digital librar- intervention such as what MTN gional winners for that zone. Vital critically acclaimed shows such ies and ICT laboratories to uni- foundation is currently undertakYears Secondary Schoolemerge- as Fela and the Kalakuta Queens, versities and secondary schools, ing, arts and culture will spur the das the eventual national winner Legends, the Musical, the Life respectively, across the country creative energies of the young peoin My City Art Festival in Enugu, while empowering others with ple across Nigeria and go a long from the Zaria zone.

Speaking at the grand finale, Our Son The Minister, the Made scholarships in music and science way to unleashed and help them to discover the beauty of storytelling NonnyUgboma, executive sec- in Nigeria Poetry Show and High and technology The MTNF Scholarship Scheme using play-acting. retary, MTN Foundation, com- The Play” she said. www.businessday.ng

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Friday 29 November 2019

BUSINESS DAY

IMPACT INVESTING Relevance of Operating Principles for Impact Management In Association With

TELIAT SULE

O

n April 12, 2019, history was made when the Operating Principles for Impact Management were officially launched at the World Bank Group-IMF Spring Meetings in the United States’ capital, Washington District of Columbia. Earlier in February this year, the International Finance Corporation (IFC) published a comprehensive report on what the principles entail.

The publication of the impact investing operating principles followed the growing importance of impact investing globally.

There are noticeable gains since the launch of the principles as no less than seventy-one(71) companies have become signatories, albeit with little African presence.

The few impact investors with focus on Africa that are signatories to the principles are the Development Partners International LLP and the Egyptian-American Enterprise Fund.

“The impact investing market is currently estimated at $502 billion, and is growing at a rapid pace as socially minded investors; family offices, investment funds and other companies recognize the power of this approach. It is growing in sectors such as energy, banking, education, housing and infrastructure, with returns those rival non-impact investment portfolios.

“Naturally, as the market grows, significant players from banking, insurance and healthcare – including MSD – and other industries are joining in, fuelling a cycle of more growth and better expertise in the sectors invested in”, the World Economic Forum, stated.

According to the IFC, there are five major broad aspects of these principles, which are further divided into nine sub divisions.

“Investors are increasingly looking to invest with impact, with a growing number of investors adopting the Sustainable Development Goals (SDGs) as a reference point to illustrate the relationship between their investments and impact goals.

Despite the growth in the impact

investing market in recent years, the lack of a common standard for what constitutes impact created confusion for investors. In response, IFC led the initiative to create a framework for impact investing – one that is focused on ensuring that impact considerations are purposefully integrated throughout the investment lifecycle”, the IFC said.

The first principle is the strategic intent. Two objectives are to be realised here which are the impact investor must define its strategic impact objectives which must be consistent with the investment strategy; and that the strategic impact must be managed on portfolio basis. In this case, the impact investor is expected to define strategic objectives for the portfolio or fund with a view to achieving positive and measurable social or environmental effects in line with Sustainable Development Goals (SDGs).

The second principle is origination and structuring and is very essential because there must be a record of the impact manger’s contribution to the achievement of impact, and the expected impact

of each investment, based on systematic approach must be assessed.

The essence of this to establish and monitor impact performance for the entire portfolio considering the fact that impact could vary from individual investments in the portfolio.

The third principle is portfolio management which entails monitoring the progress of each investment in achieving impact against expectations and that response should be appropriate. This implies that contributions could be through one or more financial or non financial channels. This encompasses improving the cost of capital, shareholder engagement, offering innovative financial instruments and creating long term trusted partnerships, among others.

Assessing the expected impact of each investment using a systematic approach is crucial. A systematic approach is the application of clearly defined and repeated methods learned through a step by step procedure. A number of questions are raised here. What is the intended impact? Who experi-

ences the intended impact? How significant is the intended impact?

It is advisable that the impact assessment is evidence based to indentify the size of the challenge to be addressed within the targeted geographical context.

The principles also seek to monitor and manage potential negative impacts of each investment. This is essential to mitigate and manage environmental, social and governance risks.

Other sub divisions of these principles include to monitor the progress of each investment in achieving impact against expectations; conduct exits considering the effect on sustained impact; improve decisions and processes based on the achievement of impact and lessons learned, and that the impact investors should publicly disclose alignment with the principles and must be ready for independent verification of this alignment. The verification is to come up on an annual basis or at regular interval and the conclusions of the verification report will be publicly disclosed.

Signatories to the Operating Principles for Impact Management • Actis • Acumen Capital Partners • Albright Capital Management LLC • AlphaMundi Group • Amundi • AXA Investment Managers • Belgian Investment Company for Developing Countries (BIO) • Blue like an Orange Sustainable Capital • BlueOrchard Finance • BNP Paribas Asset Management • Calvert Impact Capital • Capria Ventures • Cardano Development (ILX Fund and TCX) • CDC Group • CDP – Cassa Depositi e Prestiti • Christian Super • COFIDES • Community Investment Management (CIM) • Cordiant Capital • Credit Suisse • DEG – Deutsche Entwicklungsund Investitionsgesellschaft mbH • Denham International Power GPLP SCSp • Development Bank of Latin America (CAF) • Development Partners International LLP • Egyptian-American Enterprise Fund • European Bank for Reconstruction and Development (EBRD) • European Development Finance Institutions (EDFI) • European Investment Bank (EIB) • Finance in Motion • FinDev Canada • Finnfund • Flat World Partners • FMO – the Netherlands Development Finance Company • FullCycle • IDB Invest, Member of the Inter-American Development Bank Group • IFC • IFC Asset Management Company (AMC) • IFU – Investment Fund for Developing Countries • Incofin Investment Management www.businessday.ng

• INOKS Capital SA • Investing for Development SICAV • Investisseurs & Partenaires – I&P • Islamic Corporation for the Development of the Private Sector (ICD, Member of IsDB Group) • Japan International Cooperation Agency • Kohlberg Kravis Roberts & Co. • LeapFrog Investments • LGT Impact Investment Advisors UK • LGT Venture Philanthropy Foundation • MicroVest Capital Management • Norfund • Neuberger Berman • Nuveen, a TIAA Company • Obviam • Oesterreichische Entwicklungsbank AG (OeEB) • Origin Capital • Overseas Private Investment Corporation (OPIC) • Partners Group • Phatisa Group Limited • Proparco • Prudential Financial, Inc., Impact Investments Group • The Private Infrastructure Development Group Ltd. (PIDG) • responsAbility Investments • Sarona Asset Management Inc. • STOA Infra & Energy • Swedfund • Swiss Investment Fund for Emerging Markets (SIFEM) • Symbiotics S.A. • The Osiris Group • The Rise Fund • The Rock Creek Group • Triple Jump • UBS Group • UOB Venture Management Private Limited • VentureWave Capital Ltd. • Water.org • WaterEquity • Zurich Insurance Group Source: IFC

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34

Friday 29 November 2019

BUSINESS DAY

Hotels

Southern Sun Ikoyi waxes stronger at 10 ...hopes to impact industry, economy more OBINNA EMELIKE

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n the second qurater of 2009, the Nigerian hospitality sector welcomed a new entrant.

Then, the sector was in need of fresh offerings, especially in Lagos where most guests were tired of the then cluster of hotels in Victoria Island.

Again, guests were also complaining of overpriced rooms across hotels in the Victoria Island axis. But the berthing of Southern Sun in Ikoyi, another highbrow area of Lagos, made a difference.

From the introduction of exciting offerings, weekend rates, Sunday Brunch, fusion of international menu with native offerings to many other packages, the South African branded hotel was truly a game changer in the Lagos hotel business and the Nigerian hospitality sector at large.

Most hoteliers in Lagos then and even until now accuse Southern Sun Ikoyi Hotel of crashing room rates in Lagos. Of course, the crashing or rather right pricing and offering of value for money offerings further wooed more guests to the hotel.

This year, Southern Sun Ikoyi Hotel is marking 10 years since opening its doors to the discerning public and also changing the norm in the business in Lagos.

For 10 years, the hotel, which is previously known as the “Old Ikoyi Hotel” has changed and is still changing the dynamics of hospitality standards within Nigeria through its innovations, consistency in maintaining and delivery exceptional services through its enthusiastic staff imbibed with a penchant for maintaining high standards in all department. Southern Sun Ikoyi is truly revered as the leading lodging for business and relaxation offerings in Nigeria.

In celebrating 10 years of operating within the heart of

Ikoyi in the busy Lagos Metropolis, Southern Sun Ikoyi hosted many events. One of them was a cocktail evening where it hosted friends, clients, guests and distinguished members within Lagos State to celebrate the decade milestone achievement.

The dignitaries at the event included; Darkey Ephraim Africa, Consul General of the South African Consulate General, Lateef Abiru, chief whip, Lagos State House of Assembly, Olusegun Ogunsanya, managing director/ CEO, Airtel Networks Limited, among many others.

The event was a gathering of stalwarts from across the Lagos business community in celebrating an iconic brand and destination, which has evolved over the years into a unique destination buoyed with class, prestige and excellent culinary services.

As well, Southern Sun Ikoyi is truly revered as the leading lodging for business and relaxation offerings in Nigeria.

Famed for its unblemished excellence in hospitality and innovative services, Southern Sun Ikoyi prides itself as the industry standard for exceptional culinary and hospitality offerings having won numerous local and international accolades for distinction, more than many

of its contemporaries. Over the years, these celebrated awards include; Trip Advisor Certificate of Excellence Hall of fame recognition 2018, Trip Advisor Certificate of Excellence in 2010 -2015, Top 100 Travel companies in West Africa 2016, Top 50 Restaurants in West Africa 2016, Traveler’s Choice Award 2011-2017, Trip Advisor Hall of Fame Award 2015, West African Tourism Hospitality Awards (WATHAWARDS 2012) ‘Best Fine Dining Restaurant 2012, International Hotel Awards (IHL) UK ‘Best Hotel Nigeria 2013/2014 African Region, International Hotel Awards (IHL) UK “Best Hotel in Africa 2012/2013 to mention a few.

Speaking at the commemoration cocktail, Mark Loxley, general manager, Southern Sun Ikoyi, expressed gratitude to the guests for gracing the occasion with their presence, as it showcases the unwavering commitment by these Key stakeholders who have consistently supported the journey of the Southern Sun Ikoyi brand over the past 10 years.

“We will also us this medium to appreciate the support of the management team members and stakeholders, whose fantastic support has allowed the hotel to be positioned as a

prominent member within the hotel community in Lagos and has also allowed us a business to take pride and position as a true 4-star internationally branded hotel within the Nigerian Industry”, Loxley said.

Loxley also noted that the concerted efforts in the ongoing staff trainings and development has always been core within Southern Sun Ikoyi’s mandate in ensuring that the human capital within the hotel is maximized to the fullest extent, which has further allowed for a great and consistent service culture to be extended to all the Hotel’s guests.

He used the medium to shareupdates on the recent renovations embarked by the Hotel across its rooms in upgrading its fittings, rugs and other resources which were all sourced by local vendors in promoting local trade patronage and ensuring that guests have a memorable experience at the Hotel.

Also speaking at the occasion, Ernest Orji, director, Southern Sun Ikoyi, recalled the unique opportunity afforded him in playing a role in reviving the then decrepit Ikoyi Hotel and the transformation into the new Southern Sun Ikoyi, forged by the strategic partnership with the Tsogo Sun Hotels.

Top BusinessDay Partner Hotels Four Points by Sheraton Hotel (Oniru Chiefatancy Estate,Lekki) Tel: +234 1 448 9444

Transcorp Hilton Abuja 1 Aguiyi Ironsi Street Maitama, Abuja Tel: +234-708-060-3000

The Wheatbaker #4 Onitolo(Lawrence Road), Ikoyi, Lagos.

Tel: 01 277 3560

Hawthorn Suites by Wyndham Abuja 1 Uke St, Garki, Abuja.

Tel: +234 9 4603900, +234 805 7522500

Lagos Continental Hotel Plot 52, Kofo Abayomi St, Lagos Tel: 01 236 6666

Radisson Blu Hotel Ikeja #38/40 Isaac John St, Ikeja GRA100271, Ikeja Tel: +234-908-780 5555

206 Exclusive Hotel Plot 206 Oladipo Diya Road Opposite Olympia Estate

By Games Village Second Gate Durumi2 Abuja

Novotel Port Harcourt Address: 3 Stadium Road Rumuomasi, Port Harcourt Rivers State, Tel: 0809 713 5734

L-R: Mojisola SAKA, chief operating officer, Soulcomms; Lateef Abiru, chief whip, Lagos State House of Assembly; Ubong Nseobot, sales & marketing manager, Southern Sun Ikoyi, and Oluwaseyi Adeyemo, publisher, Inside Watch Africa, at Southern Sun Ikoyi 10th Anniversary Cocktail event in Lagos recently.

Radisson Lagos Ikeja #42-44 Isaac John Street, GRA Ikeja, Lagos

Zamzam Pullman Hotels Makkah, Madina engage with Nigerian Hajj operators

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amzam Pullman Hotels Makkah and Madina have recently held engagement sessions with key Hajj operators and other critical stakeholders within the Nigerian Hajj community in Lagos and Abuja.

The meetings, which were the first of its kind for the hotel in Nigeria was primarily driven by the hotel management’s desire to showcase its offerings and collaborate to enhance the experiences of Nigerian

pilgrims at the hotel during the Hajj and Umrah.

The stakeholder sessions which were insightful offered an opportunity for Hajj Operators in Nigeria to offer useful tips on the peculiar needs of Nigerian pilgrims staying at the hotel during pilgrimage.

With a total of over 800 rooms at its Makkah facility and 500 at its Madina facility, the Zamzam Pullman Hotel is quite popular with Nigeria pilgrims desirous of a close proximity to the holy sites, www.businessday.ng

luxurious amenities and top notch hospitality.

Speaking at the event, Hamid Sidine, general manager, Zamzam Pullman Hotel Makkah, stated that the engagements were an opportunity to appreciate the efforts of critical stakeholders, who have been instrumental in the logistics support of Nigerians travelling to Makkah for hajj and Umrah all year round.

He said that “it was also geared at collaborating with stakeholders in Nigeria and

through engagement, better understand the needs of Nigerian Pilgrims in order to improve the existing delightful experiences sfor Nigerian Pilgrims during visits to the Holy Land in Saudi Arabia” Ayman Elkayssouni, cluster director, Sales and Marketing, Zamzam Pullman Makkah and Madina, stated that the purpose of the visit by the Hotel Brand was to engage hajj operators directly, listen to their needs, and also build relationships with the Nigerian Hajj operators.

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Southern Sun IkoyI Hotel Address: 47 Alfred Rewane Road, Ikoyi, Lagos Tel: +234 1 280 5200 / +234 1 280 0630 Email: ssikoyi.reservations@ tsogosun.com

Radisson Blu Anchorage Hotel 1A,Ozumba Mbadiwe,Victoria Island.

@Businessdayng

Friday 29 November 2019

BUSINESS DAY

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POLITICS & POLICY Labour Party challenges Sanwo-Olu’s victory at Supreme Court Iniobong Iwok

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he Labour Party (LP) has appealed the judgment of the Court of Appeal upholding the victory of the Governor of Lagos State, Babajide Sanwo-Olu in the March gubernatorial election in the state.

The Court of Appeal in Lagos recently dismissed an appeal filed by Labour Party (LP) challenging the judgment of the Governorship Election Petition Tribunal which affirmed the election of Sanwo-Olu as the Governor of Lagos State.

The Appellate Court, in a unanimous decision, held that the appeal lodged by Labour Party lacked merit.

Labour Party and its governorship candidate, Ifagbemi Awamaridi, had appealed the judgment of

Election Petition Tribunal delivered on September 23, 2019, insisting that SanwoOlu was not qualified to contest the election held in March 2019, and that the governor did not win the election.

Hannatu Sankey, the justice who led judgment of the five-man panel of Justices of Appeal Court, specifically affirmed the decisions reached by the Governorship Tribunal.

The Court said the Labour Party and its candidate failed to produce any oral or documentary evidence through witnesses and other channels to establish the fact that SanwoOlu was not qualified to contest the election or did not win the governorship election.

However, in a statement to journalists in Lagos Thursday, signed by A .

K. Kolawole, director of

Babajide Sanwo-Olu

publicity, Labour Party in Lagos State, a copy of which was made available to Busi-

Obaseki swears in new 247 aides IDRIS UMAR MOMOH & CHURCHILL OKORO, Benin

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do State Governor, Godwin Obaseki on Thursday swore in 247 new aides with a charge to be his eyes, ears and fight against oppressors.

The new aides were sworn in more than one month after the sacking of the former appointees.

The state government had on October 2, 2019 in a statement signed by the Secretary to the State Government, Osarodion Ogie announced the sacking of all the 192 wards special assistants and local government senior special assistants to the governor.

O g i e , h o w e v e r, a n nounced that fresh appointments would be announced within the next 30 days.

The breakdown of the aides sworn in by the governor yesterday shows 192 wards special assistants and 55 local government senior special assistants.

However, two persons were appointed as special assistants out of the 10 wards in Ikpoba Okha while there were no appointees out of the 10 wards in Ovia SouthWest Local Government Areas.

While for the position of Senior Special Assistants

there were also no representatives in Ovia South-West and Uhunmwode Local Government Areas respectively.

Speaking at the swearing ceremony in Benin City, the state governor who urged the appointees to be his eyes and ears in their various wards and local governments, however admonished them not to take side with oppressors and do justice to all manner of people.

Obaseki, who noted that Edo State does not belong to few individuals, also urged them not to sabotage the effort of his government.

According to him, “Edo State cannot be restricted to just a few people. So, our appeal to you is to represent us well. Please, I am begging you, serve your people. Uphold justice and never take side with the oppressors.

“Once again, I charge you to uphold the ethical standard which this government, administration is proud of.

“So, I encourage all of you that after today go back to your various wards and Local Government Areas of Edo State. You must feel the purse of the people. Our aim is to penetrate into the grassroots and deliver the dividend of good governance to our people.

“I want you be our eyes and ears in your various domains. I want to know the www.businessday.ng

area of opportunities in the area of employment, security and agriculture.

“I want you to go to your various communities and liaise with your leaders and define the programmes and governance in this State.

“Today, we are looking for land in Edo State to cultivate thousands of hectares, that is part of your responsibility to help the government to achieve”, he said.

While enjoining the appointees to emulate the legacies of the late Samuel Osaigbovo Ogbemudia, he opined that the late former two-time governor of the defunct Midwest and Bendel states did not die a multi-millionaire.

“He is being remembered today not because of his riches, but because of his service to our people in the defunct Bendel State, now Edo and Delta States. This is the kind of culture that we are trying to introduce to the people of Edo State”, he added.

Responding on behalf of the Special Assistant and the Senior Special Assistants, respectively Ogie Ogedengbe and Lucky Aigbe expressed willingness to key into the giant strides of the governor’s administration, describing the 2020 governorship election in the state as a done deal.

nessDay, Kolawole said that the party and its candidate, Ifagbemi Awamaridi, had

successfully appealed the judgment of the Court of Appeal to the Supreme Court.

The party disagreed with the judgment of the Court of Appeal and Tribunal, stressing that some of its observations was not within the law.

The party further stated that it has engaged U. O. Sule, who is a Senior Advocate of Nigeria (SAN) and an activist, to lead 16 other erudite lawyers to battle for the nullification of the governorship election result in the state at the Supreme Court of Nigeria.

According to the statement, “How can the Tribunal expect us to physically present in Court over 13,000 ‘Oral’ witnesses within less than 240 hours, i.e. less than 40 days, while throwing away all documentary evidences of irregularities, corrupt practices and

crime, even the Tribunal’s documentary records.

“The intendment of the law is not to expect parties to be magicians and miracle workers. The law does not expect impossibilities as a premise of justice.

Imagine a Tribunal to lie against its own record, just to pervert Justice.

“The Tribunal claimed the election result sheet which was brought to court by the umpire, INEC, from which over 80percent were incontrovertibly proved to be fraudulently recorded based on corrupt practices was sealed in brown envelopes, whereas in the CTC of records intelligently obtained by the petitioners no document was sealed in brown envelopes.

“How can a Tribunal say an election where ‘socalled’ valid votes are more than accreditations is normal and just?”

Traps you set for Oyo people will fail, group replies Folarin REMI FEYISIPO, Ibadan

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yo Kajola Group (OKG), an O yo State-based sociopolitical group, has flayed the Senator representing Oyo Central Senatorial District, Teslim Folarin for claiming in an address to his party loyalists that the All Progressives Congress (APC) has allegedly set two traps for the government of Oyo State, Seyi Makinde, which according to him, it cannot escape.

The group said the statement credited to the Senator has exposed the evil intention of the APC, its members and that of the Senator in question.

In a statement by its Media Coordinator, Adebayo Ayandele, on Thursday, the group said that “by that statement, we are left in no doubt that the APC has the sinister motive of seizing power at all cost through the Court, an intention which has no basis and will fail woefully,” the OKG said.

The group maintained that whatever trap has been set to derail good governance, which the Makinde administration has been delivering in the state, would hit the rocks because the governor was massively elected by Oyo State people and has continued to endear himself to them through policies and programmes that are already yielding fruits.

The statement noted that Folarin’s assertion, contained in a video clip, was a timely

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revelation that forces of darkness in the APC were hellbent on destabilising the government of Makinde.

It warned that any plan to entrap the people Oyo State with fraudulent Court judgment and foist on the people an already rejected candidate would contend with stiff opposition and the wrath of the people.

The group warned the APC leaders, especially Folarin, to perish the thoughts of stealing the popular mandate given to Makinde, because according to the OKG, it will remain a pipedream that can never materialise.

“Before such APC leaders go about deceiving innocent persons, they, including Folarin, would need to explain their roles in the failed Moniya-Ijaiye-Iseyin road contract on which N2billion of Oyo State tax payers’ money was wasted without a tangible result,” the group said.

According to the Oyo Kajola Group, Folarin’s statement was unguarded and irresponsible; adding that the Senator’s insistence that “they could not allow another party except the APC to govern Oyo State,” came a few weeks after the trio of former Governors Adebayo Alao-Akala, Abiola Ajimobi and Folarin had a meeting in Abuja.

“We in the Oyo Kajola Group and by extension the people of Oyo state were not surprised

by Senator Folarin’s statement.

Indeed, no resident of Oyo State @Businessdayng

expects decorum or finesse from Folarin, because of his known political history. What no one expected was that he would, like a palm wine drinker, openly seek to truncate the wishes generally expressed by the people of Oyo State during the March 9, election.

“We believe that Folarin’s unguarded moment was God’s way of exposing APC’s plan to derail the government of Oyo State and deny the people of the good governance they are already enjoying under Governor Makinde.”

The group queried the real reason behind Folarin’s outburst, wondering if he was reacting to Makinde’s actions in exposing the rot left behind by his cousin, Senator Ajimobi or protecting his own interest, saying: “But before Folarin and his evil traps setters in the APC continue in their doomed voyage, which will ultimately consume them and be the beginning of the end for them politically, we would like the Senator to explain what he knows about the Moniya-Ijaiye-Iseyin road contract awarded to Oladiran Trades and paid N2 billion mobilisation funds.

“It would interest the public to know that Governor Seyi Makinde had, after revoking the contract from the incompetent contractor supported by the APC leaders, seized the contractor’s Advance Payment Guarantee (APG) and recovered N1billion to the coffers of the state.

36 BUSINESS DAY

Friday 29 November 2019

news

LAPO MfB gets ISO 27001 certification for adherence to standards HOPE MOSES-ASHIKE

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APO MfB, a microfinance bank in Nigeria, gets ISO 27001:2013 certification for Information Security Management by Professional Evaluation Certification Board (PECB).

The ISO 27001:2013 of the International Organisation for Standardisation (ISO) standard specifies the requirements for establishing, implementing, maintaining, and continually improving an Information Security Management System (ISMS) within the organisation.

The certification is a testimony to LAPO Microfinance Bank’s commitment and adherence to the highest standards in information security management.

Speaking on the certification, the bank’s Managing Director, Godwin Ehigiamusoe noted that the certification is a reflection of LAPO’s philosophy of best practice in data security and protection especially of its customers.

LAPO Microfinance Bank limited on Friday announced the appointment of Cynthia Ikponmwosa as the new managing director designate of the premium bank.

She succeeds Godwin Ehigiamusoe, founder/CEO, Lift Above Poverty Organisation and LAPO microfinance bank, who has just retired

based on personal decision.

Ede Osayande, chairman, describes Ikponmwosa as the foundation member of the LAPO story in its commitment to social and economic empowerment of the members of low income household.

He noted that the board has absolute confidence in Ikponmwosa’s capacity to build on the accomplishments of the bank.

Osayande added that Ikponmwosa, in the new position will be offered all the necessary support needed to deliver value to all stakeholders.

Ikponmwosa joined Lift Above Poverty Organisation (LAPO NGO) the precursor of LAPO Microfinance Bank in 2001 as a Senior Programme Officer and has played several key roles within the Group.

She provided leadership for the transformation of LAPO into a regulated microfinance bank between 2008 and 2010.

She led the corporate secretariat and recently as executive director, ED, Corporate Services. She holds a Master of Arts degree in Corporate Governance, University of Hertfordshire, England.

Ikponmwosa has attended several senior management development programs.

The appointment is subject to the approval of the Central Bank of Nigeria

StarTimes makes strong footprints on Nigerian market ODINAKA ANUDU

S

tarTimes Niger ia is strengthening its footprints on the country with an array of programmes for subscribers.

The payTV company announced an early commencement of its 2019 Christmas promotion, in a bid to entice new and existing subscribers across the country between November 1, 2019, and January 15, 2020.

The company said its Christmas promotion was aimed at giving subscribers and prospective customers the chance to watch and enjoy a higher bouquet when they subscribe for two months on to any bouquet.

“All StarTimes subscribers who pay for two months on any bouquet will immediately get an upgrade to an even higher bouquet for two months. For example, when you pay for two months on Nova bouquet

which is N900, you get to enjoy the Basic bouquet channels free for 2 months,” Kunmi Balogun, public relations manager, said.

Subscribers who pay N1,300 for two months on the Basic bouquet will get to enjoy all Classic bouquet channels free for another 2 months and customers who pay 2 months on the Classic would get an extra 10 days free of charge.”

Similarly, Toka Mcbaror, ace producer and director of Merry Men is producing a new crime series titled ‘Paper Boat’, exclusively for StarTimes.

The action-themed crime series will commence on December 1, on ST Nollywood and it would show Monday to Friday from 7:30pm.

Said to be the first and biggest crime series on TV, Paper Boat tells the story of hate, crime, and revenge and features a host of Nollywood actors including Ali Nuhu, Fakunle Olarotimi, Waziri Wash.

Sanwo-Olu tasks CDAs on project monitoring, maintenance Josephine Okojie n a move to transform Lagos to a 21st Century city, Governor Babajide Sanwo-Olu has called on Community Development Associations (CDAs) in the state to ensure proper monitoring of ongoing projects in their areas.

The governor who spoke at the Community Day Celebration with the theme ‘Revisiting Rural Communities for 21st Century Development,’ held recently in Lagos, said with effective monitoring of contractors

by CDAs, quality and standards will be guaranteed in project executions in the state.

He urged the CDAs to always supervise projects on-going within their communities and also ensure that the projects are of quality through constant supervision.

“Whatever project that is being initiated by the state remains in the communities and such

I

projects should be protected and maintained to ensure that it severs its need,” he said.

“You need to monitor contractors to ensure that roads and schools that are building in your communities meet the standards,” he added.

He also urged them to ensure the protection and maintenance of projects such as schools, hospitals, and roads among others that are built in their communities.

He appreciated the CDAs for carrying out developmental projects within their communities; saying that the ten best CDAs with the best community intervention projects will be rewarded to encourage developments in rural communities.

Also speaking during the event, Ibijoke Sanwo-Olu, the first lady of Lagos State, said that the development of the state is a collective effort which must be taking seriously by all residents of the state.

Edo Law Students honour Obaseki for achievements in education sector

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ndigenes of Edo State at the Nigerian Law School, Abuja campus, have conferred on Governor Godwin Obaseki an award of excellence in recognition of his developmental strides in the education sector.

Leader of the group, Ovas Idofe, disclosed this while speaking with journalists at the Government House in Benin City, the Edo State capital.

Idofe said the state’s law students were impressed by the governor’s reforms in the education sector and decided to give him an award of excellence.

She said, “We came from the Nigerian Law School to honour our state governor, Mr. Godwin Obaseki with an award of Excellence. This is because of his contributions to the education sector. We have found him worthy to give him the award considering his milestone achievements in the sector.”

The law students’ leader noted that the governor ha d a l s o d o n e w e l l i n other sectors of the state, noting “ There is a big difference between what we have on ground in the

state compared to what we had in 2016 when he came in as governor.

Obaseki has shown that h e i s a n a ch i e ve r a n d we are all proud of him.

Imagine all what he has achieved in such a little time, especially in terms of human capacity development. We are here to commend and to encourage him to continue in his people-oriented policies and reforms, not minding distractions from political jobbers in the state.”

Also, Rachael Idahosa, a member of the Edo Indig ene group at the Ni g e r i a n L aw S c h o o l , said the developmental strides and achievements of the governor were outstanding.

“We are glad to meet the governor; we are here to celebrate him for his outstanding contr ibutions to the development of the state. He is a performer and has the support of all well-meaning Edo people. As a group, we are confident that he will do more if given the time and support.”

Idahosa urged Edo youths to key into the empowerment programmes of the governor and support his policies on youth development.

L-R: Temitope Oguntokun, country lead, sustainability and stakeholder management, International Breweries; Michael Daramola, director, legal and corporate affairs; Peter Bankole, chairman, International Breweries Foundation, and Muyiwa Ayojimi, company secretary, at the media briefing on the upcoming kickstart Initiative Awards by International Breweries to beneficiaries in Lagos.

Pic by Pius Okeosisi

Housing for poorest Nigerians gets boost as Senate queries FG’s implementation Solomon Ayado, Abuja

S

enate on Thursday queried the effort of the Federal Government to implement workable initiatives that could provide adequate shelter to the masses, as it felt irked by the lack of affordable housing for the poorest Nigerians.

Consequently, the Senate mandated its Committee on Housing to collaborate with various stakeholders in the National Housing Development sector to make housing affordable.

The Senate issued the query while considering a motion on the urgent need to reform the Housing Policy and Mortgage Financing in Nigeria to meet the escalating housing demand in the

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country.

Sponsored by Senator Albert Bassey Akpan, the motion sought to proffer solutions to housing challenges of low and middleclass income earners that constitute the largest active population in the country.

According to him, a majority of Nigerians find it difficult to have access to affordable housing, including those working for the government.

Akpan recalled the creation of the National Housing Fund through the National Housing Fund (NHF) Act of 1992 which, he said, was specifically intended to cater to Nigerians in line with the various Housing policies and International Conventions and Treaties to

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which Nigeria is a signatory.

He stated that by virtue of the provisions of the NHF Act, a working class Nigerian is required to contribute 2.5 percent of his or her monthly salary to the fund which provides the source of funding to the Primary Mortgage Institutions (PMIs).

“A c c e s s t o t h e f u n d through the PMI is cumbersome due to stringent and complex eligibility criteria which makes the development of housing through the fund challenging or practically impossible to date.

“Since the creation of the fund in 1992, the Federal Mortgage Bank of Nigeria as of 2013 disbursed only N100.5 billion.

“In 2015, out of 4 million registered contributors to @Businessdayng

the fund, only 60,000 (1.5%) were able to access mortgage loans through the funds, leading to the construction of only 40,653 houses across the country.

“There is a dire and urgent need for a total review of our National Housing Policy framework to meet the needs of our people, especially the poorest Nigerians in line with the various International Conventions/Treaties of which Nigeria is a signatory,” Akpan said.

Contributing to the motion, Senator Fadahunsi (PDP, Osun East) said it was until the Federal Government totally overhauled the country’s housing policies before the burdens of poor Nigerians on housing would be curbed.

Friday 29 November 2019

BUSINESS DAY

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Friday 29 November 2019

BUSINESS DAY

news Osinbajo, five governors to grace...

Continued from page 1

for debate around challenges that confront business executives within Nigerian operating environment and beyond.

The 2019 edition, 11th in the series, with the theme ‘Nigeria At Cross Roads: The Private Sector Opportunity,’ will have Peter Tufano, Dean and Professor of Finance, Said Business School, Oxford University, delivering the keynote address.

Tufano, an accomplished scholar, before moving to Oxford in 2011, had spent over three decades at Harvard University where he completed his AB in Economics, MBA and PhD in Business Economics, spending 22 years in the faculty. He will be enriching the forum with his vast knowledge in consumer finance, financial innovation, risk management and corporate financial engineering and mutual funds.

The governors that will grace the event this year are generally acknowledged as some of the best brains in governance.

They include Godwin Obaseki of Edo; Babajide Sanwo-Olu of Lagos; Dapo Abiodun of Ogun; Emeka Ihedioha of Imo, and David Umahi of Ebonyi.

Obaseki, who assumed office November 12, 2016, is credited with turning around the education sector with the launch Edo Basic Education Transformation (EdoBEST) programme, an initiative to train and equip public school teachers with top-of-the-range skills and expertise for deploying Information and Communication Technologies (ICTs) in classrooms to improve learning outcomes.

He is also applauded to have through the Alaghodaro (Edo Investment) Summit attracted new investments to Edo in areas of agriculture, manufacturing, health, while also focusing on infrastructure development.

“In the area of economic growth, we are emphasising production, industrialisation and working hard to have independent source of electricity.

We are emphasising technical education for our people and primary healthcare,” Obaseki recently said.

Sanwo-Olu, since assumption of office on May 29, 2019, has devoted energy and time to address the perennial gridlocks and other environmental issues in Nigeria’s economic hub by fixing the roads, aimed at further creating the right atmosphere for businesses and living.

“We are at the stage of building critical infrastructure that will make our state more habitable. We want technology to drive economic innovation, public security, health management, waste management, traffic management, government processes and services to the public,” Sanwo-Olu said during his recent visit to China where he secured the commitment of leading technology

companies, including Ehang and Huawei, to support his government’s vision of transforming Lagos into a smart city.

In Ogun, Abiodun, who took the oath of office on May 29, 2019, is acknowledged to have within six months in office, launched the Ogun job portal, agricultural revolution, purchased patrol vehicles and motorcycles to security agencies and the Ogun Tech Hub in Abeokuta with a five-day free training in soft skills like Artificial Intelligence, Digital Marketing, Web Development, Cyber Security, Mobile Application Development, Data Science, IT Business, Emerging IT Trends: Big Data, IoT, Cloud Computing, and Science, Technology, Engineering & Mathematics (STEM), among others.

Ihedioha is seen repositioning the economy of Imo for development in all its facets.

The Imo Growth and Strategic Development Agenda plan (G-SDP), a two-stage development horizon of a five-year economic blueprint conceived by the transition technical committee set up the government, provides the roadmap for the overall economic growth and development of the state. They include among other things the delivery of 381km rural access road projects, restoration of an improved Owerri master plan, restoration of water supply in Owerri metropolis, roll out of a state health insurance scheme as well as the reactivation of four technical education institutions in the state.

The Ihedioha’s administration has also focused on human capital development, agriculture and food security, infrastructure, industrialisation and job creation as well as security and environment.

“Imo State is now on track to join open governance partnership which now qualifies it for performance based grants of the World Bank and other multinational development institutions,” Ihedioha recently said. Umahi, a second-term governor, is making the people of Ebonyi State proud.

He is credited with the completion of over 20 roads within the capital city of Abakaliki, rebuilding some federal roads, especially the Afikpo-Abakaliki Road and the Nkalagu Road.

Umahi has also reconstructed and equipped schools as well as approved the promotion of the state university staff – a decision that had stalled for years.

The governor declared emergency in the health sector and undertook the reconstruction of general hospitals as well as built the first virology centre in the south east from scratch, to reduce Lassa fever deaths. His administration has also spent billions of naira as soft loans to farmers, targeting expanded rice farming, which has raised rice production in the state.

•Continues online at www.businessday.ng

L-R: Michael Daramola, legal and corporate affairs director, International Breweries PLC; Aghogho Enomate, a beneficiary of Kickstart grant ; Festus Keyamo, minister of state for Labour and Employment, representing the Vice President, Yemi Osinbajo; and Kingsley Mogbalu, keynote speaker, at the International Breweries Foundation Kickstart grant awards ceremony, in Lagos.

Pic by Pius Okeosisi

‘Smart regulation is missing piece in unlocking Nigeria’s gas economy puzzle’ ISAAC ANYAOGU, STEPHEN ONYEKWELU & DIPO OLADEHINDE

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nlocking Nigeria’s gas potential of over 202 trillion cubic feet (Tcf) of proven natural gas reserves or moving from being an oil economy to a gas economy will require the right regulations, collaboration between the Federal Government and the private sector.

This cooperation will drive the ability to innovate, grow capacity for the domestic gas market and increase willingness to make long-term commitments by investors.

This is according to experts at Thursday’s BusinessDay Oil & Gas Roundtable at Four Points by Sheraton, Lagos.

The total value of Nigeria’s proven gas reserves is over $460 billion, more than the country’s gross domestic product (GDP) as of today.

Yet, in a world where gas is emerging as the fuel of the future, Nigeria lags due to its inability to articulate a clear vision for energy security around gas.

At the event, the experts said the inability to review obsolete regulations and update outmoded laws had kept the oil and gas sector on its knees with foreign investment looking the directions of other countries, apart from Nigeria.

In order for a gas economy to work, Audrey Joe-Ezigbo, president, Nigeria Gas Association (NGA), said Nigeria must create an environment where industries and foreign investment can thrive because gas commercialisation was one of the primary ways of driving industrialisation, and also a faster solution to its poverty problems.

“We need clearly focused regulations that will create

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gas-based industries, which will absorb teeming employable youth and create a multiplier effect that will affect the SME corridors which will change the things we do in this country,” Joe-Ezigbo told the audience.

According to Joe-Ezigbo, Nigeria cannot be regulating pricing and be expecting investment dollars to come into the country, as “we can’t have a welfarist agenda and yet be expecting capitalist money in the economy.

“Certainty of investment is another major concern, Nigeria has adopted an oil philosophy and is failing understand how to run a gas economy,” Joe-Ezigbo noted. “Nigeria is still focusing on associated gas, when are we going to start focusing on Non-Associated Gas (NAG).”

Odein Ajumogobia, former minister of petroleum resources and current chairman of Nigeria Natural Resource Charter (NNRC), said, “Nigeria needs to learn lessons from smaller countries like Trinidad and Tobago, which is a small island country but is the sixth largest producers of LNG.” While Nigeria seems to be dilly-dallying, Trinidad and Tobago is a good example of a country that has accomplished much with its gas resources. With a small population of 1.4 million and only 11Tcf of proven gas reserves, the country has developed a globally competitive petrochemicals industry.

Today, Trinidad and Tobago is the world’s largest exporter of ammonia and second-largest exporter of methanol leading to this industry contributing significantly to the country’s GDP. “Time is running out on Nigeria, other countries are competing for investment,”

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Ajumogobia said.

Victor Eromosele, former general manager finance at NAPIMS and current chairman/CEO of ME Consulting Limited, said Nigeria needs to think big on what to do with its huge gas reserves, thereafter modularise its thinking of gas by starting small. “The time to start is now,” Eromosele said.

Adeoye Adefulu, a partner and head of Odujinrin & Adefulu’s Energy Practice & Real Estate and Mining Team, said there were lots of regulatory clashes in Nigeria’s oil and gas sector, most especially between the NNPC and DPR. “The philosophy of Nigeria’s regulations needs to be smarter and much more specific on needs and challenges facing the sector,” Adefulu said.

Abdullateef Amodu, publicity secretary at Nigeria Association of Petroleum Explorationist (NAPE) said Nigeria’s oil exploration is effectively dead as Nigeria’s Niger delta is still highly underexplored.

“Nigeria needs to have holistic oil and gas vision that stakeholders can all tie into,” Amodu said at the event.

Em ma nu e l A nya e t o, head, gas demand and supply at Axxela a fast-growing gas & power Portfolio Company said governments think in terms of electoral cycles and prefer to jump at low hanging fruits.

“Joint Ventures continue to be poorly funded because the government cannot afford to do so. Government revenue has many competing interests ranging from infrastructure, healthcare, and education to paying members of the national assembly,” Anyaeto said.

Anyaeto noted that the government can recoup billions by simply stopping JVs which may work for climes such as @Businessdayng

Saudi Arabia with bigger oil revenues.

Ayodele Oni, energy partner at Bloomfield law practice said gas is a low hanging fruits towards industrialisation in Nigeria however much need to be done in terms of improving the regulations in the sector. “We need to have a philosophy behind the reforms,” Oni said.

Other stakeholders believed the government sector has to be bold about solving challenges such as gas pricing, unreliable gas supply, poor gas infrastructure, power sector liquidity issue, ineffective regulation of the energy value chain, and concentration and control of gas resources within a limited set of license holders in the country.

Nigeria holds Africa’s largest gas reserves of more than 202 trillion cubic feet, but flares, or burns, most of the gas it produces along with oil because it lacks the infrastructure to process it.

In the first seven months of 2019, Nigeria flared a total of 147.72 billion standard cubic feet of natural gas amounting to a potential loss of $413.6 billion that would have had potential value to Nigeria’s economy.

Much is also lost to the Nigerian economy from the lack of gas to power domestic industries due to investment shortfalls and opaque prices for the gas that manages to get to international markets.

The discovered gas resources, located in the southsouth geographical part of the country, have become mere assets on paper, and they continue to be in the firm control of government bureaucrats whom analysts say are without a clue how to unlock them to energise the economy.

Friday 29 November 2019

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Sports NFF queries Rohr over incessant utterances, breach of contract Anthony Nlebem

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he Nigeria Football Federation (NFF) has issued a query to Super Eagles’ technical adviser, Gernot Rohr to explain reasons behind several breaches of the contract that he signed with the body, which forbids him to divulge to the public/ media information on some aspects of his contract.

Bitrus Bewarang, NFF’s technical Director, said Rohr’s new-found love for disclosing information beyond technical matters to the media is highly unprofessional and against the spirit and letter of his contractual relationship with the NFF. “In as much as we appreciate the work that Rohr has been doing with the Super Eagles in the past 40 months, his recent penchant for breaching provisions of the contract he signed with the NFF and the Code of Conduct for coaches is not good for the relationship.

“The NFF wishes that Rohr continues in the job because

of the team he is building for Nigeria which looks promising and has earned some good results since he took charge, but he cannot continue to nonchalantly cause the NFF as a body, and Nigeria as a nation, reputational damage through his utterances and actions,” Bewarang said.

Bewarang, who was assistant to Clemens Westerhof

when the Super Eagles qualified Nigeria for her first-ever FIFA World Cup and won the Africa Cup of Nations in Tunisia in 1994, pinpointed Clause N of the Code of Conduct for coaches, which states that “coaches must not by their actions or inaction cause NFF or the Federal Government of Nigeria any harm, reputational damage or embarrassment,

Excitement as 2019 Rainoil tennis open kicks off today Anthony Nlebem

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ainoil Limited in partnership with the Nigerian Tennis Federation (NTF) will begin its 2019 Rainoil Tennis Open Tournament today November 29th to December 8th, 2019 at the Lagos Country Club, Ikeja, Lagos.

The tournament will feature the 64 men and top 32 women that will begin their campaign from the qualifying draws and another 64 men and 32 women from the main draw .The open nature of the competition ensures that we partner with the Nigerian Tennis Federation (NTF) who supplied us with

the player rankings. The Rainoil Tennis Open is an NTF sanctioned competition ad participating players will also earn ranking point.

According to the Group, Executive Director of Rainoil Limited, Mrs. Godrey Ogbechie, “Rainoil has been sponsoring tennis for over 10 years now with the Rainoil Tennis Open and this competition is our contribution to both youth and sports development using Tennis as the platform. The competition brings members together in a friendly atmosphere and gives them the opportunity to gain bragging rights and improve on their rankings.”

The finals for the men and women’s teams will take place

L-R: Akshay Saxena, group, general manager operations, Rainoil; Igbo Okor, vice president, Lagos Country Club; Godrey Ogbechie, group executive director Rain Oil; Segun Aluko, sports secretary Lagos Country Club and Emanuel Omuojine, head strategy and business development Rainoil during a press conference on the forthcoming Rain oil tennis tournament. www.businessday.ng

nor do anything directly or indirectly to undermine their contract with the NFF.” In addition, Clause E of the same code says, “Coaches must not misrepresent the NFF or distort information to the media. They are precluded from imparting unauthorized information to the media.”

While Clause 19 of Rohr’s contract with the NFF states that “the parties hereto agree that specific contents and especially the financial details of this contract shall be confidential and therefore agree to undertake whatsoever measures are necessary to preserve its confidentiality...,” Clause 11.2.5 was clear that “the coach shall refrain from talking to the press on matters outside his terms of employment i.e he can only talk to the press on technical matters about the Super Eagles. He cannot talk to the media about any confidential subjects or issues other than technical matters only relating to the team and the development or state of Nigerian football, technically.”

Bewarang regretted that

Rohr has continually and flagrantly disrespected the provisions of his contract and the Code of Conduct for coaches, divulging information at every turn to generate negative reports about the NFF and Nigeria in the public space.

“The money that the NFF is owing Rohr is the differential in his new contract (about $30,000) which our financial advisors have to align and interface with AITEO before payment (as the improved contract came into effect in the last half of the year), and which process was concluded on Friday last week. He will soon be paid.

Rohr has talked about bonus from the 2019 AFCON, which is not contractual but discretionary on the part of the Federation. The present NFF started the policy of paying players a percentage of tournament bonus during the 2018 FIFA World Cup just to motivate them, outside their bonuses and allowances.

“We did not pay any bonus for the 2021 AFCON qualifying matches against Benin Republic and Lesotho

because we are in the process of negotiating with the players on a new template of bonus payments based on performance after qualification for championships. This is still being discussed.

“The NFF is very much alive to its responsibilities but will not tolerate disrespect for the body and the country Nigeria by anyone. NFF can never be happy owing coaches in its employ which is the reason why the present administration took the unprecedented step of putting in place a sponsor specifically to pay coaches’ salaries. Last week, we paid all the National Team coaches and we are putting in place mechanism to ensure we don’t owe them going forward. We commend AITEO for its belief in the NFF and for always making funds available to pay the coaches.”

The NFF Technical Director expressed deep appreciation to all the partners and sponsors of the football –governing body for their commitment to the letter and spirit of their contracts with the football Federation.

MatchCentre Brief Atletico vs. Barcelona: The stats you need to know on Sunday December 8, 2019 with winners in the male and female categories going home with a total grand prize of over N5, 000, 000.

Also speaking during the press conference, Board Member of the Nigerian Tennis Federation, Funmi Adako, expressed her profound appreciation to Rainoil for choosing to sponsor Tennis tournament.

She described the initiative as a very commendable one as it has a great chance of helping the youths discover their talent and be creative in their approach to sports.

She also urged the participants to make good use of the opportunity noting that she is convinced it would have great impact in their lives.

In his remarks, Segun Aluko, sports secretary Lagos Country Club thanked Rainoil for sponsoring 2019 Rainoil Tennis Open tournament being hosted by Lagos Country Club (LCC).

According to him ‘‘we are the foremost family club in Nigeria and are proud to host the only clay-court tournament in 2019. LCC Tennis has the largest number of junior players when compared to any other recreational club in Nigeria and this tournament provides a great platform for the continued development of tennis in Nigeria.”

Anthony Nlebem

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his weekend, football lovers are in for interesting fixtures as Atletico Madrid host champions Barcelona on Sunday, 1st December at the Wanda Metropolitano stadium.

Atletico will be hoping to put behind them, the disappointment of dropping vital points following their 1-1 away draw against Granada last Saturday.

For Barcelona, the game will provide a stern test on their title credentials as they are currently tied on the point as fierce rivals Real Madrid on 28 points but top the league standings on superior goals difference.

Here are key stats to know ahead of the cracker: Atlético Madrid are winless

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in their last 18 LaLiga games against Barcelona (D5 L13).

Atlético last won against Barcelona in LaLiga in February 2010 (2-1) under Quique Sánchez Flores, with Pep Guardiola in charge of the Catalan side.

Atlético have drawn 7 of their opening 14 LaLiga games this season, while they have never previously drawn 8 of their first 15 matches in a single season in the top flight.

Barcelona have won 3 of their last 4 away LaLiga games (L1), after being winless in the previous 5 away from home in the competition (D2 L3).

Barcelona have scored the most LaLiga goals from outside the box this season (7), while Atlético are yet to score from outside the box this term.

Barcelona’s Lionel Messi

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has scored 29 goals against Atlético Madrid in all competitions.

Barcelona striker Luis Suárez has been involved in 12 goals in 15 appearances against Atlético Madrid in all competitions (8 goals, 4 assists).

Atlético boss Diego Simeone has only won one of his 25 managerial games against Barcelona in all competitions (D9 L14), while he is winless against them in LaLiga.

After winning three consecutives away LaLiga games against Atlético between 2006 and 2009, Barcelona manger Ernesto Valverde is winless in his last 7 games on the road against Atlético in the competition (D4 L3).

For more updates, visit www.matchcentre.ng

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cityfile L-R: Mallam Mele Kyari, GMD, Nigerian National Petroleum Company (NNPC); Ajibola Oyebamiji, immediate president, Nigerian Association of Petroleum Explorationists (NAPE), and Olajumoke Ajayi, MD, Asharami Energy (A Sahara Group Upstream Company), at the recently concluded NAPE 37 th International Annual Conference in Lagos

Farmers/ herders’ clash: NSCDC to deploy agro rangers in Anambra communities Emmanuel Ndukuba, Awka

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Miyetti Allah, Oodua, Igbo, others unite to prevent conflict JOSHUA BASSEY

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he quest for peace and unity in Nigeria has received a boost, as some ethnic and socio-political groups have agreed to work towards preventing conflict and ensuring peaceful co-existence among the various Nigerian ethnic nationalities.

Leaders of the groups, who converged on Lagos on Wednesday for training session with the theme: “Engaging the media, community-based groups for peace building and conflict prevention,” called on the Federal Government to intensify the mopping up of illegal arms across the country and initiate the process for continuous dialogue, promising to strengthen a national working group for peace and conflict building in the country.

Speaking during the training, Akinbayo Olasoji, an Assistant Commissioner of Police (ACP), blamed crises

in Nigeria on greed and selfserving interests of some religious, political and community leaders. He commended the coming together of young ethnic leaders in choosing to address the problems of conflict in the country.

Sina Odugbemi, leader of the African Conflict Prevention and Peace Network, stressed the need to study the environment in order to sustain peace.

“The flow of arms and the threats to stability in Nigeria cannot be resolved unless we have a deep understanding of the proliferation of arms.

Nigeria is surrounded by French-speaking countries; the free flow of movement of people in that area is an indication that Nigeria will remain unsafe unless there is a strong and effective border,” Odugbemi said.

Also, Tijani Suleiman, vice president of Arewa Youth Consultative Forum (AYCF), said: “As a people we have the responsibility to work towards peaceful co-existence.

Violence is an ill-wind that blows no one any good; we can make the choice to prevent conflict in Nigeria”.

Adekunle Oshodi, president of Agbekoya, a Yoruba group, said his group was excited to participate in a forum initiated for stakeholders in conflict in which the people are the drivers of the process.

The groups observed that ordinary people were worried about the spate of violence in some parts of the country and bringing an end to the crises could be achieved when the people realised that they were the main actors.

Tony Nyiam, a retired army colonel, said that one of the most crucial ways to prevent conflict was for the people to engage themselves by their free will.

“Nigerians want to live in peace. There is no one that would prefer conflict to peace. What we have seen is a situation where platforms for conflict prevention are lacking while the leaders run

up and down to douse the fire when it is too late.

The best way to prevent conflict is through active and robust engagement among the stakeholders. Conflict that is addressed at its budding stage is unlikely to mature while those left unattended to lead to chaos and violence,” Nyiam said.

Onyinye Onyemobi, who represented the Ford Foundation, noted that the involvement of young people in the conflict prevention training was an impressive initiative.

Present at the training were leaders of Miyetti Allah, Oodua Peoples Congress, Oodua Nationalist Coalition, Igbo Youth Council and the Indigenous Middle Belt Peoples Congress.

Also in attendance were representatives from Arewa Youth Consultative Council, National Council of Iteskiri Youths, Agbekoya, Borno Youth Coalition and the Ijaw National Congress, among others.

Abiodun warns criminals to avoid Ogun RAZAQ AYINLA, Abeokuta

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overnor Dapo Abiodun of Ogun has warmed criminals to avoid the state as his administration has zero tolerance for crimes and criminal activities.

Abiodun gave the warning while playing host to Kenneth Ebrimson, the new Commissioner of Police (CP) posted to Ogun. He said the state would be intolerant to any form of crime or criminality.

“As a gateway state, bordering some states and a neighbouring country, this comes with advantages and

disadvantages. It means that criminals also go through our state. We will continue to be innovative and very intolerant to crimes and criminality.

“We intend to keep the peace we are enjoying and that is why we are putting in place measures to ensure that the overflow from Lagos translates into a society where people can come and live, work and play without any fear of being attacked, robbed, kidnapped or live with any fear of criminal behaviour.

He added that his administration would do all within its powers to sustain the peace the state was curwww.businessday.ng

rently enjoying.

“For us, the issue of security is number one. Our vision is to create a conducive environment for public private sector partnership because we cannot fund all the projects we intend to embark. We have to look at bringing in potential investors to partner with us. If we want to do that, we must have a state that is peaceful.

“We believe that is the only way we can enhance the economic potential of the state. If the economy of the state is where it should be, it will percolate down to individual prosperity”, the governor added.

He commended the outgoing CP, Bashir Makama for a great job while in the state and attributed the peace in Ogun to the cooperation from the police in achieving a crime-free society.

While pledging his government would continue to support the police and other security agencies in the state to discharge their constitutional duties, the governor welcomed the new police boss to a familiar terrain, having served in all the three senatorial districts in the state in various capacities in the past.

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igeria Security and Civil Defense Corps (NSCDC) says it will be deploying the recently trained Agro Rangers to Anambra communities to check incidence of farmers/herders’ clash.

Billie David Billie, state commandant of NSCDC stated this when he paid a working visit to Igwe Benneth Emeka, the traditional ruler of Umeri community in Anambra East local government area.

Billie, who also sought the support of the monarch to succeed, said the command

has perfected strategy to nip crisis in the bud in various parts of the state.

He said the visit was part of his tour of the communities to build sustained relationships with the traditional institutions and the people.

“We have put measures in place to providing watertight security in the state and in particular, Umueri axis being an agricultural region.

I promise to help in the area of farmers/herders’ clash by deploying the Agro Rangers squad as the Christmas season approaches,” he said.

Igwe Emeka on part promised to assist the command in its efforts to maintain peace in the state.

Female pastor charged with theft of 4-month baby

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52-year female pastor, Char ity Okpara, has been arraigned before an Ikeja Chief Magistrate Court for allegedly stealing a four-month baby girl from her church member.

Okpara, who resides in Ojo area of Lagos, was arraigned on a four-countcharge bordering on conspiracy, unlawful abduction and child trafficking, to which she pleaded not guilty.

The police prosecutor, Ezekiel Ayorinde alleged that the defendant stole the baby, Princess Oluchi, daughter of one Blessing Okon.

Ayorinde told the court that the defendant committed the offences with others still at large on November

5 at No. 5 Kayode Street, Ajangbadi, Lagos.

The prosecutor said: “All efforts made to locate the baby proved abortive.” The offence violates Ssctions 141, 277(1) 277(b) and 411 of the Criminal laws of Lagos State 2015, The chief magistrate, B. O. Osunsanmi, admitted the defendant to a bail of N200, 000 with two sureties in like sum.

O su n sa n m i o rd e re d that the sureties must be gainfully employed with an evidence of two years tax payment to the Lagos State government and must reside within the court’s jurisdiction. The magistrate adjourned the case until February 24 for substantive hearing. NAN

Lagos court remands football coach

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n Igbosere Magistrate Court in Lagos has remanded a 32-year football coach, Leodina Ahamadah, for allegedly having sexual intercourse with a nine-year boy through the anus.

The magistrate, K. O. Doja-Ojo, remanded the defendant in prison, pending the legal advice from the Director of Public Prosecution (DPP). Ahamadah, who resides at Idi-Aba area of Lekki Beach road, was charged with forceful rape.

The prosecutor, Peace Chukwudi, told the court that the defendant committed the alleged offence on November 18, at 8:00 am at Idi-Aba area of Lekki Beach road, Lagos.

“Ahamadah, who charges between N150 and N200 to coach the boy and other children, had approached the boy to play football on @Businessdayng

the day of the incident. The boy had told him that he was not coming because he had no money to pay for his services.

“The defendant, however, told him not to worry and that he would pay for him to practice for that day. Instead of taking him to where they usually play football, the coach took him to his house and had sexual intercourse with him through the anus”.

According to her, the offence contravenes Section 261of the Criminal Law of Lagos State, 2015.

The plea of the defendant was, however, not taken.

The magistrate, Doja Ojo asked the defendant to approach the High Court to seek for bail, as the court did not have the jurisdiction to grant bail. She ordered that the case file be duplicated and sent to the DPP for legal advice.

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FINANCIAL TIMES

World Business Newspaper Edward Luce

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fter winning the cold war, the US sought to export the rule of law to other countries.

That flow has gone into reverse. Today it is importing some of the worst corruption from abroad. America’s largest law firms, real estate companies and lobbying outfits thrive on dirty money. In the process they are leaving stains on US democracy that will not easily come out in the wash.

Donald Trump is the public face of a problem that extends into the heart of America’s system.

It spans Democrats and Republicans, New York and Washington, the public and private sectors. It is a curse that dare not speak its name in the 2020 election.

It is easy to guess why Joe Biden, the Democratic frontrunner, goes light on it. Mr Biden helped to turn Delaware, his home state, into the most popular domicile for anonymously-owned companies. Without those, The Trump Organization would have garnered far fewer of the investors that bought its condominiums. In one of Mr Trump’s towers in Florida, more than 80 per cent of its units are owned by shell companies. The US has 10 times more shell companies than the next 41 jurisdictions combined, according to the World Bank.

To be sure, unlike Mr Trump’s alleged transgressions, Mr Biden’s are legal. But it is “legal graft” that has seeped into all corners of US politics — and society beyond. Mr Biden has done as much as any US

How money laundering is poisoning American democracy

Dirty cash is a curse that dare not speak its name in the 2020 election

Elizabeth Warren: her relative silence on the links between US politics and global corruption is surprising © Reuters

public figure to put such practices on the statute books.

More surprising is Elizabeth Warren’s relative silence on the links between US politics and global corruption. Early in her campaign for the Democratic nomination, she rolled out numerous plans. These included blueprints to tackle foreign lobbying and corporate malfeasance. Since then, the US senator from Massachusetts has

MEPs’ move ahead of COP25 summit aims to pressure Brussels into delivering set of green policies

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he EU has declared a global “climate emergency” ahead of next week’s international COP25 climate summit.

In a symbolic move that supporters hope will put pressure on the new European Commission to deliver an ambitious set of green policies, MEPs on Thursday voted in favour of declaring the emergency by 429 votes in favour and 226 against.

“We are meeting the expectations of European citizens,” said Pascal Canfin, a French En Marche MEP who drew up the motion. “I am proud to have gathered a majority in the European Parliament to make Europe the first continent to declare a climate and environmental emergency.”

The non-binding declaration comes two days before Ursula von der Leyen takes office as new European Commission president promising to deliver a Green New Deal that will set the EU on a path to becoming the world’s first carbon neutral power by 2050.

The parliament on Thursday als o backe d raising the EU ’s emissions reduction targets from 40 per cent to 55 per cent by 2030 — a promise that had divided centreright conservatives who have argued

against imposing onerous targets on businesses.

Ms von der Leyen will spend her first day in office on Monday in Madrid for the UN COP25 climate summit, where she will deliver a speech on Europe’s green efforts.

EU officials expect the Green New Deal proposal to be unveiled on December 11, a day before a European leaders’ summit at which Poland, Hungary and the Czech Republic will be urged to agree on the bloc’s carbon neutrality by 2050. The three countries are the only EU members yet to sign up to the target. MEPs urged the EU28 to make the declaration in Madrid next week.

The EU’s Green parties have pushed for even higher targets to meet the promises made under the Paris climate accord — including a 65 per cent carbon reduction by 2030. Bas Eickhout, a Dutch Green MEP, said the climate emergency had to be more than a “symbolic gesture”.

“This must be followed by serious and credible actions,” he said.

Meanwhile, European Central Bank chief Christine Lagarde is pushing for climate change to be part of a strategic review of the bank’s purpose. The plan underlines Ms Lagarde’s declared goal as president to make climate change a “mission-critical” priority for the central bank. www.businessday.ng

illicit money flows dwarf that of any other territory, unless you treat Britain and its offshore tax havens as one. The US Treasury estimates that $300bn is laundered annually in America. This is probably a fraction of the true number. Worse, the US government has no idea who controls the companies that channel the money because America lacks a corporate central registry.

There is no law in America

How investment analysts became data miners

EU declares global ‘climate emergency’ Mehreen Khan

been consumed in a battle to justify her $20tn Medicare-forAll programme. That she is still threatening to die on a cross of M4A raises questions about her political skills. Here is what a better Warren campaign would argue — or indeed any White House contender who is serious about reviving US democracy and fighting global authoritarianism.

America is the largest dirty money haven in the world. Its

requiring disclosure of “beneficial ownership”. US banks must report suspicious activity. But law firms, real estate companies, art sellers, incorporated enterprises and non-bank financial institutions are exempt.

Those hoping to clamp down on money laundering are thus heavily outgunned by lobbyists for the status quo. Mrs Warren should point out that the US system offers a red carpet for dirty money. Furthermore, autocrats in Russia, China, Saudi Arabia and elsewhere could not thrive without the connivance of America’s suite of service providers.

The US voter is exhausted with the “forever wars” that Mr Trump and Mrs Warren agree should be brought to an end. A better US foreign policy would be to close down weapons of mass incorporation in states such as Delaware and Nevada and hold their enablers in New York and Washington to account.

America’s military firepower poses no realistic danger to the likes of Vladimir Putin, Russia’s president. His visceral reaction to the 2010 Panama papers showed how deeply he fears the financial glare. Shining a light on dirty money flows would pose a greater risk to autocracies than five new US aircraft carriers.

Banks battle for audiences with new information sets, ‘charticles’ and podcasts Robin Wigglesworth

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ealmakers, traders and globe-trotting executives are the public face of the modern investment bank, but for many clients in fund management, the key point of contact is with banks’ less glamorous ranks of analysts.

That investment research business is now going through a profound reshaping. New investing strategies, regulations, commercial pressures and technology are forcing a rethink of what analysts do, how they do it and the ways their work gets distributed to clients.

“Everything is changing. So investment research has to change as well,” said Lou Pirenc, global head of research data at investment bank Morgan Stanley.

The immediate impetus is Europe’s Mifid II regulations, which forced asset managers in the region to pay directly for research rather than subsidising it by routing trading orders through banks.

Given the practical difficulty of divorcing European from global operations, many asset managers have adopted this “unbundling” of research fees as practice everywhere. Having to pay directly for analysis has triggered a rethink on

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how much research they consume, which has washed over research departments at investment banks like a tsunami — including in the US. “Not only has unbundling impacted US money managers, it is in the process of changing the whole nature of investment research,” Tabb Group, a markets consultancy, said in a recent report.

Bar chart of showing US investors trimmed their research spending significantly in 2018 Other, broader trends are having just as big an impact on research. Asset management has evolved dramatically over the past decade, with the rise of cheap, passive index-tracking funds and computer-driven strategies, and investment groups that primarily work in private markets rather than public ones.

That is a major challenge for analysts who have historically focused on producing stock tips, economic research and fixed-income strategy for old-fashioned investment managers. Bank of America has even set up a dedicated ETF strategy team to meet the demand. Candace Browning, head of research at Bank of America Merrill Lynch said: “The rise of passive investing in particular has changed what clients want, @Businessdayng

and we need to respond to that.”

Analysts are also increasingly turning to cutting-edge data science to better cater to computerdriven investors, who seek to meld it with traditional fundamental investing, as well as a broader group of corporate clients.

Nowadays, analysts sift through non-traditional information such as satellite imagery and credit card data, or use artificial intelligence techniques such as machine learning and natural language processing to glean fresh insights from traditional sources such as economic data and earnings-call transcripts. “If all you’re doing is traditional fundamental analysis, it’s not enough any more,” said Joyce Chang, chair of research at JPMorgan.

Almost every bank is now exploring how newer technology can enhance their analysis, or even become a separate business line.

A good example is UBS’s Evidence Lab, which last year was split off from its research department as a unit that collects, cleans and sells data to clients independently from its primary research offering.

The head of data at one asset manager said: “It’s a significant moment. It’s the start of a profound change of what the sellside is.”

Friday 29 November 2019

FT

BUSINESS DAY

48

NATIONAL NEWS

South African Airways close to collapse State-owned flag carrier struggling to pay salaries and secure funds to stay aloft Joseph Cotterill and David Pilling

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outh Africa’s state-owned flag carrier is on the brink of financial collapse after it paid only half of staff salaries this month and struggled to secure funds to survive.

South African Airways suffered a “sudden deterioration” in its finances after a recent strike grounded flights, Pravin Gordhan, minister for state-owned companies, said on Wednesday.

The government is working with the airline “to urgently formulate immediate actions that will be required to provide support to enable SAA to carry on its business”, he said.

The airline, once Africa’s largest, may have to file for liquidation if it cannot secure R2bn ($135m) of working capital in the next few days, people familiar with the matter said.

SAA needs a government guarantee to borrow the capital from banks but Tito Mboweni, the finance minister, has been reluctant to approve further bailouts.

The airline’s fate poses a dilemma for President Cyril Ramaphosa, who has pledged to turn round state companies that were looted under his predecessor, Jacob Zuma. But he is also under pressure to shore up strained public finances.

This month’s strike over planned job cuts grounded SAA domestic and international flights for days as Mr Ramaphosa’s government clashed with unions.

SAA has needed billions of dollars in state aid to stay aloft in the past two decades but graft and waste have left it struggling to compete with resurgent African and Gulf airlines.

“SAA competes in a cut-throat industry with razor-thin margins.

There are 50 airlines serving South Africa,” said Martin Kingston, a member of SAA’s board.

The airline has failed to produce accounts for the past two years because of doubts as to whether it remains a going concern.

Mr Mboweni’s Treasury has already agreed to repay R9.2bn in debts that will come due for the airline in the next three years.

However, last month Mr Mboweni drew a line over handing over more money for an airline that he regards as a middle-class subsidy in a deeply unequal society.

Mr Mboweni is battling to find funds to bail out Eskom, the blackout-prone state power monopoly whose $30bn debts dwarf SAA. Eskom is deemed a higher priority as it generates nearly all of South Africa’s electricity.

“The minister of finance is in an extremely difficult situation. He is highly fiscally constrained and one has to ask whether he and he can continually, in his words, bail out SOEs,” Mr Kingston said.

SAA and South Africa’s Treasury did not immediately respond to requests for comment.

A liquidation may impose steep costs on Mr Ramaphosa’s government, as it would have to pay out on guarantees to lenders to SAA in a default.

Solidarity, a South African trade union, has applied to place SAA in business rescue, a liquidation alternative. But bankers have said that this would be impractical as business rescue requires financial resources SAA does not have.

Vested interests are dragging South Africa down

Cyril Ramaphosa will be loath to take on the people who helped him to the ANC presidency David Pilling

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his month South African Airways will pay its nearly 6,000 staff only half of their November salary. Next month, without a substantial bailout it won’t be able to pay them anything at all.

The partial payment follows a bruising week-long strike that grounded all of the airline’s flights.

In the end, workers got a 5.9 per cent pay increase that management said had been on offer anyway. Some 900 jobs are still threatened amid planned cuts to lossmaking routes. Mismanaged and looted for a decade, the airline has failed to produce accounts for two years running. It has swallowed some $4bn in state aid over two decades.

The government has been divided over what to do. Pravin Gordhan, minister of public enterprises, would like to turn the airline around. Tito Mboweni, the finance minister who must approve any bailout, would like to close it down.

Nearly a year ago, the former businessman compared the chronically lossmaking airline to a chicken farm that wasn’t producing any eggs. If it were his money, he said, he would not invest a single cent.

The government of President Cyril Ramaphosa will decide within days what to do. Sentiment is

turning. The idea of pouring money into a flag carrier for middle-class people is beginning to look like a luxury South Africa cannot afford.

The stakes are high. Of the main rating agencies, only Moody’s has South Africa’s sovereign debt above junk status. If it downgrades, South Africa will have to pay more to service a debt already hovering at around 60 per cent of gross domestic product.

Whether the government decides to give the airline one last shot or to pull the plug, Mr Ramaphosa surely understands one thing: the airline is the easy part. The face-off with the unions is merely a dress rehearsal for a much tougher battle ahead: the fight over the state-owned power generator, Eskom, and the battle with its much stronger vested interests. Eskom provides 95 per cent of South Africa’s electricity, mainly from clapped-out, coal-fired power stations.

Some numbers will illustrate the scale of the challenge, which now falls to Andre de Ruyter, a packaging company executive who has been brave — or foolish — enough to take on the role as Eskom’s chief. The company’s $30bn debt is roughly 9 per cent of GDP against merely 0.5 per cent for SAA. This year alone, the government committed to a $4.9bn bailout as Eskom struggles to keep the lights on by fixing and upgrading power stations that are on average nearly 40 years old. www.businessday.ng

Donald Trump signs Hong Kong pro-democracy bills President backs human rights act sparking China retaliation threat Aime Williams and Tom Mitchell

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onald Trump has signed two US bills supporting Hong Kong’s pro-democracy protesters, defying calls from China to block the legislation and putting the territory’s special trade status at risk.

The president ratified the Hong Kong Human Rights and Democracy Act after it was overwhelmingly passed by Republican and Democrat lawmakers, a rare example of bipartisan co-operation. It mandates that the US executive branch annually re-examine Hong Kong’s status and imposes sanctions on anyone who has suppressed human rights in the former British colony.

Mr Trump also signed a second bill that blocks new export licences for tear gas, rubber bullets and handcuffs being sent to the Hong Kong police force.

China’s foreign ministry condemned Mr Trump’s decision, saying in a statement that Washington had “seriously interfered with China’s internal affairs”.

“The US has ignored facts, confused black with white, and supported violent criminals and vandals who burned and injured

innocent people, trampled the rule of law and endangered social order,” the ministry added.

It also repeated warnings that Beijing would take “resolute countermeasures” in response.

Hong Kong’s government called the move “unnecessary and unwarranted”, saying the decision “would send an erroneous signal to protesters” that would not help resolve the crisis.

Later on Thursday, China’s foreign ministry said it had summoned the US ambassador to Beijing, Terry Branstad, in protest, warning him the administration “must not put the law into practice”.

It was the second time in three days that Mr Branstad had been summoned over the acts.

“Hong Kong’s autonomy, its adherence to the rule of law and its commitment to protecting civil liberties are key to preserving its special status under US law, as well as to the success of ‘one country, two systems’,” a US embassy spokesperson said. “The Chinese Communist party must honour its promises to the Hong Kong people, who only want the freedoms and liberties that they have been promised.”

The new laws were passed after almost six months of unrest in

Hong Kong, and come following a week of violent clashes as police laid siege to a university campus.

Authorities on Thursday entered the grounds of Hong Kong Polytechnic University, where about 20 protesters are believed to remain in hiding.

In a statement issued by the White House on Wednesday night, Mr Trump said he signed the bills “out of respect for President Xi [Jinping], China and the people of Hong Kong”.

“They are being enacted in the hope that leaders and representatives of China and Hong Kong will be able to amicably settle their differences leading to long-term peace and prosperity for all,” the statement added.

The president’s actions have been condemned by Beijing, even as the US continues to negotiate with China over the completion of a “phase one” trade deal.

There have previously been signs of caution from the US administration over criticising Beijing’s approach to Hong Kong. In June, the Financial Times reported Mr Trump had promised Mr Xi the US would tone down its criticism of the country’s approach to the protests to revive trade talks.

US distressed debt flashes warning sign for investors

More than 200 bonds in junk-rated index are trading at levels implying severe strain Joe Rennison

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nvestors are pulling back from the riskiest parts of the US corporate bond market, fearing that a brightening domestic economy may not be enough to save hundreds of companies struggling under heavy debt burdens.

Corporate bond markets have enjoyed a big rally this year, buoyed by a trio of interest rate cuts from the Federal Reserve and by signs that the world’s largest economy is on a solid footing. An index of junk-rated debt run by Ice Data Services has returned almost 12 per cent this year, as bullish fund managers look lower down the credit spectrum in pursuit of income.

But in those furthest reaches there are signs of strain. More than 200 of the bonds in the Ice index are trading with yields more than 10 percentage points above equivalent government bonds — a commonly used definition of distress. That share now stands at 11.6 per cent

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of the index, the highest proportion since 2016.

“Beneath the surface of what looks like . . . an enthusiasm for taking credit risk, there is a consciousness that all is not rosy,” said Marty Fridson, chief investment officer of Lehmann Livian Fridson Advisors in New York.

Three years ago, pain among US companies with junk ratings was mostly limited to companies in the energy sector, which was grappling with a steep fall in the price of crude. Now distressed borrowers are spread more widely, including several in the retail sector, as bricksand-mortar stores continue to battle online sellers such as Amazon.

The telecoms sector has been hit too. Last week IPC, a private-equity backed provider of trading technology, defaulted on its debt, taking the tally of defaults in the sector this year to eight, according to S&P Global.

Signs of severe stress in bond markets are concerning given economic indicators are holding up, said S&P, in a recent research note.

Even supportive monetary policy @Businessdayng

may not be enough to prop up borrowers which have taken on more debt than they can handle, the agency noted.

“Investors are willing to take a fair amount of risk but they would much rather do it in higher quality companies,” said Kevin Baer, founder of CKC Capital, a New York-based hedge fund with about $300m under management. “It’s not that people are risk averse but they are averse to anything perceived to be really weak. A lot of the companies . . . are suffering from idiosyncratic issues that could easily be exaggerated by slower growth and a worsening economic outlook.”

Data on Wednesday indicated that the US economy expanded at a 2.1 per cent annualised rate in the three months to the end of September. That is up from an initial estimate of 1.9 per cent and an increase from the 2 per cent pace in the second quarter. Still, the picture around the world is more mixed.

Last month the IMF docked its global growth forecast to 3 per cent for 2019, its lowest level for a decade.

BUSINESS DAY

Friday 29 November 2019

FINANCIAL TIMES

49

COMPANIES & MARKETS

@ FINANCIAL TIMES LIMITED

Sterling rise underscores optimism over Tory win forecast Analysts say a Conservative victory would clear a more certain path for Brexit Adam Samson

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terling edged up to its highest level in a week after a poll showed Boris Johnson’s Tory party could storm to its strongest election victory since Margaret Thatcher more than three decades ago.

The modest rally marks a shift in tone for the currency markets; In recent months, the pound has at times reacted positively to gains

by Jeremy Corbyn, with investors betting that despite his marketunfriendly policies, the opposition leader at one point seemed to offer the clearest path away from leaving the EU without a deal.

Now, Conservative gains are linked more closely to strength in the pound. The currency hit a peak of $1.2950 in late New York trading on Wednesday as investors reacted to the YouGov poll. It gave up those gains in London, but analysts said the initial jolt higher highlighted how market sentiment had switched.

Antje Praefcke, an analyst at Commerzbank, said: “A result like [the one forecast by the poll] in two weeks’ time would mean that Boris Johnson would be able to get his Brexit agreement through parliament at the end of January and would be able to start the negotiations on future EU relations following the exit.

“Even if this would cast the exit of the UK out of the EU in stone it would at least end the uncertainty about it that dominated the past months and years.”

The UK currency has inched up and down throughout the election campaign that began in early November as traders have attempted to divine what various outcomes would imply for Brexit and the economy more broadly.

Mr Johnson’s Tories have led in opinion polling ever since the campaign kicked off. But investors have closely scrutinised the latest YouGov poll, based on a sample of 100,000 people, because it was the only one to correctly predict a hung parliament in 2017.

A Conservative majority is seen by many analysts as a bullish outcome for the pound since it would herald more certainty — at least in the short term — over the path for Brexit. Traders worry that an indecisive result or a Labour win would present fresh hurdles to the passage of legislation to allow the UK to exit the EU with a transition agreement in place.

Derek Halpenny, head of research for global markets at MUFG in London, said: “Corbyn has had a bad campaign and while there is still scope for the gap to narrow, it is now looking increasingly likely that time is running out or has run out for Labour to make a surge.”

The pound has rallied 8 per cent since striking a trough below $1.20 against the US dollar in August, leaving it as the best-performing major currency over the past three months. Analysts and investors have said the rise has come due to a reduction of concerns over a potentially chaotic no-deal Brexit that dominated the headlines this summer.

Why some corporate bond investors see higher risk in higher ratings Fund managers look for companies committed to protecting their balance sheet Joe Rennison

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topsy-turvy thesis is gaining traction among debt investors, with some fund managers arguing that the supposed safety of buying the highest-rated US corporate bonds is an illusion.

Instead, the argument goes, buying much-maligned triple B rated bonds — which sit just above the threshold of junk — is a better, possibly even safer, bet.

Triple B debt is typically seen as a potential breaking point in a long-overdue reckoning in the corporate debt markets.

If the cheap money era implodes, this could be where the first cracks form.

But the case in their favour begins with big companies like AT&T, Verizon, or most recently AbbVie, each of which has deliberately loaded up on cheap debt to fund large takeovers, taking a hit to their credit ratings in the process.

AbbVie borrowed $30bn from investors this month to fund its takeover of rival pharmaceutical company Allergan. In response, rating agency S&P Global said it expects to lower AbbVie’s sole single A minus rating to triple B plus when the deal closes in the first quarter.

That doesn’t sound too positive but AbbVie, like others, is now committed

to reducing its debt, which now stands at $90bn, trimming its balance sheet in a bid to maintain its investmentgrade rating.

Investors say that over time, this represents a good bet; if the quality of the company improves, so too should the value of its bonds.

In contrast, companies rated single A or above still have room to go through the same punishment as AbbVie, if they decide to take advantage of low borrowing costs to fund acquisitions or buy back their own stock.

“Triple Bs get all the airplay but if you take a step back . . . people are probably underappreciating the risk of A-rated companies getting downgraded to triple B,” said Josh Lohmeier, head of North American investment grade credit at Aviva Investors.

Investors like Mr Lohmeier are nervous that they could find themselves paying up to buy debt right before a company is downgraded.

One potential example highlighted by investors is tech company Oracle.

In September, it said it would increase its efforts to buy back its own stock and signalled that it remains open to acquisitions — both of which could threaten its single A rating. Investors also point to tech company 3M, which increased its stock buyback plans a year ago. www.businessday.ng

Brokers forecast that rejigging the Topix would create waves in the market, particularly in the months ahead of the change as investors pre-adjust portfolios © Bloomberg

Japanese financial regulator unveils shake-up for stock exchange FSA chief Toshihide Endo outlines plan to create Premium board to boost capital Robin Harding and Leo Lewis

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apanese equity markets are in line for their biggest shake-up in decades as part of plans to attract a fresh wave of capital by providing foreign investors with an index of liquid, wellgoverned stocks.

In an interview with the Financial Times, Japan’s chief financial regulator laid out his vision for a new premium market to replace the first section of the Tokyo Stock Exchange, and the exclusion of illiquid stocks from the benchmark Topix index.

Toshihide Endo’s plan would give international investors an easy way to buy and sell the cream of corporate Japan, leading to a possible boost in equity valuations and knock-on effects for every business involved in the Japanese stock market.

“The Topix index is made up of all the stocks on the first section of the TSE, but the fact is that some of those 2,000 stocks are illiquid,” said Mr Endo, who took over last year as commissioner of the Financial Services Agency.

“I think the premium section would be the main target for global investors. Then the Topix would be built mainly from stocks on the

premium market.”

Brokers forecast that rejigging the Topix would create waves in the market, particularly in the months ahead of the change as investors pre-adjust portfolios. It will also affect the Bank of Japan, which weights its ¥6tn ($55bn) in annual equity purchases towards the Topix benchmark.

Japanese companies prize a listing on the first section of the TSE because the prestige makes it easier to recruit staff and get access to credit. Listing standards are relatively low so the first section includes many small-capitalisation stocks or companies that stay public even though there is little trading in their shares.

That makes life difficult for index funds tracking the Topix or traders hedging Topix futures. Investors often struggle to tell the difference between the first and second sections or a tangle of small-cap markets such as Mothers and Jasdaq.

Mr Endo said reform of the market structure and the Topix index were separate issues. First, the market would be divided into new premium, standard and growth segments based on governance and size. Then the Topix would be constructed from premium com-

panies with adequate liquidity.

Japan’s drive to improve corporate governance would get a fresh impetus if it was part of the criteria for a premium listing. “What we want from companies, and what investors expect, is effective governance,” said Mr Endo. “For global investors, in other words, companies of a certain size with a certain level of governance should be gathered together.”

Mr Endo said the goal for market structure was simplification and higher standards, not excluding companies for the sake of it.

A market capitalisation cut-off for premium listings is not yet decided, he said, but described a mooted figure of ¥100bn ($914m) as “too high”.

“We would not be radically emptying out the first section but rather the premium section would pull companies along to some extent,” he said. “So there’s a chance some companies with low liquidity would be included and those could be excluded from the Topix.”

Brokers expect the changes to be announced around spring 2020. The coming months, said one market strategist, were likely to see many stocks trade on expected changes to the Topix, rather than fundamentals.

European investors add to call for shorter trading day Asset managers join with UK lobby groups in backlash against long-hours culture Philip Stafford

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sset managers in Europe are backing calls from counterparts in the UK to shorten trading hours on the region’s stock exchanges in an effort to boost diversity and improve poor liquidity.

A survey of 73 senior traders at asset managers around Europe, representing about $40tn of assets under management, found almost three-quarters in favour of shorter hours to improve market conditions.

Just under 60 per cent thought improving the balance between work and home life would encourage diversity in this male-dominated business, according to the survey carried out by K&K Global Consulting, which runs a network for traders in fund management to discuss industry issues.

The results add fuel to a brewing

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argument in Europe over its culture of long hours. Earlier this month, two of the largest trade bodies in Europe’s financial markets, both based in London, called on stock exchanges to cut their eight-anda-half hour days. The move would improve traders’ mental health and boost low trading volumes during the day, they argued.

European stock markets are open for longer than counterparts in New York and Asia. With the addition of client entertainment and other tasks, traders regularly put in 14-hour days. But the busiest part of the trading day is the final minutes, when the closing prices are set.

Lobby groups — backed by bankers, lawyers and UK asset managers — want European exchanges to open one hour later, at 9am, and to close half an hour earlier, at 4pm. @Businessdayng

“When looking at the accountability against remuneration, buyside trading is not a job where people are earning elaborate amounts of money when factoring in the pressure to perform during long working days,” said Anita Karppi, co-founder of K&K Consulting.

The push has not been universally welcomed and some women argue that low market liquidity and macho culture on the trading floor are two distinct issues that should not be conflated.

They argue that financial services companies need to change their culture, pay women more, give them decent promotions and encourage shift work — which could hurt their profits. Some London-based staff at investment banks also trade on non-EU markets such as Russia, the Middle East and Africa, meaning they already face long hours.

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Friday 29 November 2019

BUSINESS DAY

FT

ANALYSIS

Global trade slowdown hits EU the hardest, new figures show Exports and imports fall across all major European economies, according to OECD data

Valentina Romei

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he global trade slowdown is hitting the EU the hardest, according to new OECD data, as uncertainty over the UK’s exit from the trading bloc and Germany’s industrial downturn add to disruption caused by US-China trade tensions.

Exports from the EU contracted 1.8 per cent in the third quarter compared with the previous three-month period, while imports fell 0.4 per cent, according to figures released on Thursday by the Paris-based organisation.

Exports and imports declined across all major EU economies, with falls of 3.6 per cent and 1.7 per cent respectively in France, and of 0.4 per cent and 1.8 per cent in Germany. In Italy trade dropped for the sixth straight quarter: exports decreased 1.2 per cent and imports slipped 1 per cent.

This was a more severe contraction than the overall 0.7 per cent fall in exports across the G20 group of major economies, which account for about 85 per cent of world output. G20 imports dropped 0.9 per cent in the same period.

Trade in goods waned in the third quarter in nearly 80 per cent of the 50 countries and regions tracked by the OECD, while imports fell in the US and across all the major Asian economies, including China.

Laurence Boone, OECD chief economist, last week warned that high levels of uncertainty on trade policy and geopolitics had resulted in stagnating global trade, which is dragging down economic activity in almost all major economies.

The geographically widespread exports contraction also partially reflects lower oil prices and depreciation in other major currencies against the dollar; the OECD reports its trade data

in current dollar values.

Column chart of % change over previous quarter (current $ terms) showing The value of goods exports contracted across G20 economies Poor trade performance is a particular drag on growth in Europe because many EU economies are relatively open, with a high level of reliance on trade; in Germany trade is equivalent to 87 per cent of gross domestic product, compared with 27 per cent for the US. “European merchandise trade has been impacted significantly by uncertainty surrounding the trade war and Brexit,” said Timme Spakman, an economist at ING. At the same time “the slowdown of German industry had an impact on European trade, as German producers ran down inventories rather than importing new intermediates”.

A survey published by the European Investment Bank this week showed that more than 70 per cent of businesses in the EU and the US quoted uncertainty as a reason not to invest.

In the UK, exports contracted sharply as a result of Brexit uncertainty and the fall in the value of sterling against the dollar.

In response to the slowdown in trade and growth leading central banks have moved in recent months to ease monetary policy, but this has not had an effect yet, analysts said.

“Policy easing in the US, China and the eurozone is not yet feeding through so all remain a drag on trade growth,” said Adam Slater, lead economist at Oxford Economics.

While there are some signs of stabilisation in forward-looking sentiment indicators, the picture for the near future remains gloomy. Mr Slater added: “Any improvement in the trade picture looks fragile and limited.”

Lebanon urged to restructure debt as crisis deepens Embattled government under pressure to use limited reserves for imports Chloe Cornish

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rotest-stricken Lebanon has vowed to repay $1.5bn to holders of its government debt as planned this week despite a stalled economy and drained dollar reserves, but economists say the time has come to consider letting investors down.

With total borrowing of $88.4bn, Lebanon has one of the world’s biggest debt burdens, projected to be 155 per cent of gross domestic product by the end of 2019. But it has always met payments to creditors — a crucial step in maintaining investors’ trust and ensuring long-term access to international markets.

Now, as the protests over corruption and joblessness enter their second month, some analysts and economists are warning that imports should take precedence over bond obligations, urging the government to delay repayments or devise another way to spread the pain.

“They can reschedule this debt with a cheaper Eurobond issuance . . . not actually paying it but rescheduling it,” said Jad Chaaban, a professor of economy at the American University of Beirut.

Lebanon’s debt has piled up as the government has continued to spend more than it brings in, and remittances from the country’s diaspora have slowed. Last year the deficit was about 11 per cent of GDP. With the economic situation

worsening, the country could ask its creditors to accept delayed or smaller repayments, rather than continuing to pay punishingly high interest rates, according to Camille Abousleiman, a lawyer who has worked on Lebanon’s foreign debt issuances and is the caretaker minister of labour. “Lebanon is in reasonably good shape to negotiate a restructuring,” he said.

Nasser Saidi, a former central bank vice governor, said he expected the central bank would be able to provide the foreign currency needed to cover Thursday’s repayment, pointing out that not all the funds would automatically flow overseas. He estimated that over two-thirds of the $1.5bn owed would remain in the country as the debt is already held by local lenders and the central bank. “The balance to foreign investors can be covered from existing [foreign exchange] reserves,” he said.

For years the central bank, headed by Riad Salameh, has functioned as the government’s financier, helping the administration to access foreign currency to meet its repayment obligations when necessary.

Mr Salameh has run the Banque du Liban for over 25 years and his self-described “financial engineering”, often involving complicated asset swap operations with the country’s commercial banks, has often helped to steer Lebanon’s government and banking sector through difficult times. www.businessday.ng

Science v poachers: how tech is transforming wildlife conservation Advanced cameras and AI systems are being used to detect poachers and prevent trapping and killing Clive Cookson

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t is dry season in a Kenyan national park. A small group of poachers walks along a dried-up riverbed, aiming to kill a black rhino and remove its horns, which could fetch as much as $100,000 on the Asian black market.

The men are concealed by undergrowth on the riverbanks but seen by a poaching alarm system developed by the Zoological Society of London. Their guns and knives trigger the Instant Detect system’s hidden metal detector, which activates a camera camouflaged in a bush. The images travel by radio to a base station and then via a communications satellite to the park headquarters, alerting the authorities in time to dispatch rangers and catch the gang.

Similar scenarios will soon be playing out in reserves and parks around the globe, as conservation bodies adopt a high-tech approach in their battle to protect animals.

Some of these groups were slow to see the potential for new monitoring tools, but with the aid of groups such as Google they are now embracing the devices as a way to tackle poaching.

WWF estimates the illegal wildlife trade is worth about $20bn a year and has contributed to a catastrophic decline in some species.

According to the Living Planet Index maintained by WWF and ZSL, the FT’s Seasonal Appeal partner for 2019-20, 60 per cent fewer vertebrate animals (mammals, bird, reptiles, amphibians and fish) live wild now than 50 years ago, with the steepest drops in the tropics.

An information graphic explaining how technology is being used to tackle wildlife poaching and help conservation Although huge falls in populations of some well-known species such as tigers, elephants and black rhinos have been halted and even reversed through intensive conservation efforts, poachers are still killing them — while numbers of other animals, including pangolins and many monkeys, are declining fast.

There are many drivers behind the loss of biodiversity, from overfishing and climate change to urbanisation and local pollution.

But for some species illegal trapping and killing is the biggest factor in their decline, says Andrew Terry, head of conservation at ZSL. “We have a particular focus on tackling the international wildlife trade but that is embedded in our broader conservation efforts,” says Mr Terry.

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Zoologists have used camera traps to photograph passing animals for decades but until recently these had no wireless connection, so their operators had to physically visit each one to remove its film and later its electronic SD card, which was often full of useless images of moving branches or other wildlife that had triggered the trap.

“The odd thing is that conservationists were slow to take up technology,” says Eric Dinerstein, director of wildlife and biodiversity at Resolve, a conservation charity based in Washington DC. “We jumped in around six years ago because we saw an opportunity to make a difference with a camera trap with intelligence and connectivity.”

Other conservation bodies including ZSL began to develop detection technology at about the same time, working with tech companies that see wildlife protection as a showcase for their expertise.

Systems such as ZSL’s Instant Detect and Resolve’s TrailGuard are in the final stages of testing and will be soon ready for deployment in the field.

“Conservation organisations don’t generally have the resources to recruit and employ expensive software engineers and developers, so we depend on collaboration with the tech industry,” says Sam Seccombe, Instant Detect project manager. ZSL’s partners include Google and Iridium, the satellite communications operator, while Resolve is working with Intel, Microsoft and Inmarsat, another satellite company.

Google’s AutoML system, which enables people with limited expertise to develop artificial intelligence for specific purposes such as image recognition, is being deployed in Instant Detect, making it possible to recognise people or animals instantly from camera trap pictures.

“A successful business relies on being able to collect, analyse and interpret data rapidly to make the best business decisions,” Mr Seccombe says. “The same is true for conservationists using camera trap data. By increasing the speed of image analysis, conservation impact can be made more quickly and be more effective.”

Remote wildlife parks have little or no mobile phone coverage, so Instant Detect uses its own radio transmitters to send images to a buried base station and then on by satellite to headquarters. ZSL tested the first version of the system by monitoring Antarctic penguins, Canadian bears, Australian night parrots and Kenyan elephants and @Businessdayng

rhinos. But it suffered from transmission problems, particularly in dense foliage.

A graphic with no description The team has developed a more robust and reliable second version, Instant Detect 2.0, which has had successful preliminary tests in Africa and will undergo more extensive trials in the new year in Thailand’s Western Forest Complex and elsewhere before operational deployment.

Camera quality was also an issue. Nothing on the market met ZSL’s specifications so it developed its own 5-megapixel Instant Detect camera with a wide range of focal lengths, triggered either by an inbuilt infrared sensor that detects heat and motion of a passing animal, or by an external metal detector for poachers. “It seems ironic that most trail cameras being used by conservationists have been designed for the deer hunting market,” says Mr Seccombe.

Although the camera has a powerful computer chip that could run an automatic image processing system on captured pictures to decide whether they are worth transmitting, this feature will not be used initially, so as not to overload the system. Instead, image processing will take place in the cloud after the images have been transmitted.

Another development in the near future will be the integration of acoustic sensors, triggered by sounds such as a gunshot, chainsaw, engine or animal call. ZSL is developing a machine-learning algorithm to detect shots in collaboration with Google.

Resolve’s TrailGuard, which incorporates Intel vision-processing chips in its cameras, does carry out AI image analysis locally, so that only pictures of human intruders are transmitted — extending battery life and cutting transmission costs. The first version of TrailGuard, operating in the Grumeti reserve in Tanzania last year, detected more than 50 intruders and enabled rangers to make 30 arrests from 20 different poaching gangs and seize 1,000kg of illegal bushmeat.

Mr Dinerstein says Resolve is manufacturing 1,000 updated TrailGuard units, 300 in California and 700 in China, for installation in parks in Africa and elsewhere.

The US foundation proposes to protect 100 wildlife parks and reserves over the next two years, by placing TrailGuards on the 10 trails used most actively by poachers in each place. Once satellite modems have been installed, the number of cameras can be increased to as many as 100 per park.

Friday 29 November 2019

BUSINESS DAY

51

Live @ The STOCK Exchanges Prices for Securities Traded as of Thursday 28 November 2019 Company

Market cap(nm)

Price (N)

Change

Trades

Volume

Company

Market cap(nm)

Price (N)

Change

Trades

Volume

PRICES FOR MAIN BOARD SECURITIES (Equities) BANKING ACCESS BANK PLC. 325,238.81 9.15 2.23 271 12,368,012 UNITED BANK FOR AFRICA PLC 242,815.89 7.10 1.43 240 20,364,158 ZENITH BANK PLC 583,974.78 18.60 0.54 271 10,373,799 782 43,105,969 OTHER FINANCIAL INSTITUTIONS FBN HOLDINGS PLC 244,087.99 6.80 4.62 218 5,360,165 218 5,360,165 1,000 48,466,134 TELECOMMUNICATIONS SERVICES MTN NIGERIA COMMUNICATIONS PLC 2,401,832.54 118.00 - 55 354,181 55 354,181 55 354,181 BUILDING MATERIALS DANGOTE CEMENT PLC 2,436,792.56 143.00 -0.42 64 2,046,677 LAFARGE AFRICA PLC. 225,509.14 14.00 - 45 124,649 109 2,171,326 109 2,171,326 EXPLORATION AND PRODUCTION SEPLAT PETROLEUM DEVELOPMENT COMPANY PLC 323,467.98 549.70 - 5 1,165 5 1,165 5 1,165 1,169 50,992,806 REAL ESTATE INVESTMENT TRUSTS (REITS) SKYE SHELTER FUND PLC 1,710.00 85.50 - 0 0 UNION HOMES REAL ESTATE INVESTMENT TRUST (REIT) 10,175.81 40.70 - 0 0 UPDC REAL ESTATE INVESTMENT TRUST 11,873.80 4.45 - 4 23,625 4 23,625 4 23,625 OTHER FINANCIAL INSTITUTIONS NIGERIA ENERYGY SECTOR FUND 411.91 552.20 - 0 0 VALUEALLIANCE VALUE FUND 3,312.39 103.20 - 0 0 0 0 0 0 4 23,625 CROP PRODUCTION FTN COCOA PROCESSORS PLC 440.00 0.20 - 0 0 OKOMU OIL PALM PLC. 47,361.63 49.65 - 14 71,816 PRESCO PLC 37,850.00 37.85 - 7 11,192 21 83,008 FISHING/HUNTING/TRAPPING ELLAH LAKES PLC. 8,520.00 4.26 - 0 0 0 0 LIVESTOCK/ANIMAL SPECIALTIES LIVESTOCK FEEDS PLC. 1,530.00 0.51 -7.27 27 2,328,827 27 2,328,827 48 2,411,835 DIVERSIFIED INDUSTRIES A.G. LEVENTIS NIGERIA PLC. 873.61 0.33 - 0 0 JOHN HOLT PLC. 217.92 0.56 - 2 1,599 S C O A NIG. PLC. 1,903.99 2.93 - 0 0 TRANSNATIONAL CORPORATION OF NIGERIA PLC 41,867.43 1.03 1.98 46 2,723,784 U A C N PLC. 21,609.72 7.50 7.14 92 8,525,363 140 11,250,746 140 11,250,746 BUILDING CONSTRUCTION ARBICO PLC. 711.32 4.79 - 0 0 0 0 INFRASTRUCTURE/HEAVY CONSTRUCTION JULIUS BERGER NIG. PLC. 25,080.00 19.00 - 7 43,635 ROADS NIG PLC. 165.00 6.60 - 0 0 7 43,635 REAL ESTATE DEVELOPMENT UACN PROPERTY DEVELOPMENT COMPANY PLC 2,572.41 0.99 -1.00 8 1,847,275 8 1,847,275 15 1,890,910 AUTOMOBILES/AUTO PARTS DN TYRE & RUBBER PLC 954.53 0.20 - 0 0 0 0 BEVERAGES--BREWERS/DISTILLERS CHAMPION BREW. PLC. 7,986.09 1.02 - 1 7,500 GOLDEN GUINEA BREW. PLC. 242.22 0.89 - 1 907 GUINNESS NIG PLC 67,901.87 31.00 - 30 86,971 INTERNATIONAL BREWERIES PLC. 80,801.10 9.40 - 21 28,495 NIGERIAN BREW. PLC. 407,042.31 50.90 - 47 128,757 100 252,630 FOOD PRODUCTS DANGOTE SUGAR REFINERY PLC 165,600.00 13.80 -4.83 65 428,049 FLOUR MILLS NIG. PLC. 74,831.93 18.25 - 62 405,001 HONEYWELL FLOUR MILL PLC 8,406.01 1.06 - 17 1,043,994 MULTI-TREX INTEGRATED FOODS PLC 1,340.10 0.36 - 0 0 N NIG. FLOUR MILLS PLC. 766.26 4.30 - 0 0 NASCON ALLIED INDUSTRIES PLC 37,092.14 14.00 - 13 37,427 UNION DICON SALT PLC. 3,321.07 12.15 - 0 0 157 1,914,471 FOOD PRODUCTS--DIVERSIFIED CADBURY NIGERIA PLC. 18,594.20 9.90 10.00 35 357,903 NESTLE NIGERIA PLC. 1,030,373.86 1,299.90 - 40 251,239 75 609,142 HOUSEHOLD DURABLES NIGERIAN ENAMELWARE PLC. 1,680.31 22.10 - 0 0 VITAFOAM NIG PLC. 4,803.24 3.84 - 16 272,315 16 272,315 PERSONAL/HOUSEHOLD PRODUCTS P Z CUSSONS NIGERIA PLC. 20,845.00 5.25 - 37 233,580 UNILEVER NIGERIA PLC. 92,494.59 16.10 0.63 108 4,230,457 145 4,464,037 493 7,512,595 BANKING ECOBANK TRANSNATIONAL INCORPORATED 128,446.86 7.00 - 41 424,554 FIDELITY BANK PLC 57,949.59 2.00 0.50 67 3,589,686 GUARANTY TRUST BANK PLC. 884,406.94 30.05 0.50 120 5,549,369 JAIZ BANK PLC 18,562.48 0.63 -8.70 130 7,008,091 STERLING BANK PLC. 56,141.32 1.95 1.04 44 2,334,031 UNION BANK NIG.PLC. 203,845.27 7.00 - 43 338,302 UNITY BANK PLC 7,598.07 0.65 - 7 439,543 WEMA BANK PLC. 27,002.13 0.70 -2.78 24 3,218,483 476 22,902,059 INSURANCE CARRIERS, BROKERS AND SERVICES AFRICAN ALLIANCE INSURANCE PLC 4,117.00 0.20 - 1 290 AIICO INSURANCE PLC. 4,851.14 0.70 -2.78 21 2,422,552 AXAMANSARD INSURANCE PLC 18,375.00 1.75 1.74 8 1,323,006 CONSOLIDATED HALLMARK INSURANCE PLC 2,926.80 0.36 - 3 37,750 CONTINENTAL REINSURANCE PLC 22,820.04 2.20 - 0 0 CORNERSTONE INSURANCE PLC 11,341.72 0.77 - 12 1,890,510 GOLDLINK INSURANCE PLC 909.99 0.20 - 0 0 GUINEA INSURANCE PLC. 1,228.00 0.20 - 0 0 INTERNATIONAL ENERGY INSURANCE PLC 487.95 0.38 - 0 0 LASACO ASSURANCE PLC. 1,904.09 0.26 -3.70 16 629,570 LAW UNION AND ROCK INS. PLC. 2,792.61 0.65 -1.52 11 151,702,463 LINKAGE ASSURANCE PLC 4,080.00 0.51 - 7 285,000 MUTUAL BENEFITS ASSURANCE PLC. 2,234.55 0.20 - 13 11,087,400 NEM INSURANCE PLC 10,561.01 2.00 - 10 1,402,518 NIGER INSURANCE PLC 1,547.90 0.20 - 2 219,680 PRESTIGE ASSURANCE PLC 2,745.10 0.51 - 0 0 REGENCY ASSURANCE PLC 1,333.75 0.20 -4.76 8 1,180,000 SOVEREIGN TRUST INSURANCE PLC 1,834.98 0.22 - 2 1,400 STACO INSURANCE PLC 4,483.72 0.48 - 0 0 STANDARD ALLIANCE INSURANCE PLC. 2,582.21 0.20 - 0 0 SUNU ASSURANCES NIGERIA PLC. 2,800.00 0.20 - 0 0 UNIC DIVERSIFIED HOLDINGS PLC. 516.46 0.20 - 0 0 UNIVERSAL INSURANCE PLC 3,200.00 0.20 - 2 116,101 VERITAS KAPITAL ASSURANCE PLC 2,773.33 0.20 - 1 49,140 WAPIC INSURANCE PLC 5,085.44 0.38 -5.26 33 4,473,089 150 176,820,469 MICRO-FINANCE BANKS NPF MICROFINANCE BANK PLC 2,538.17 1.11 - 1 9,250 1 9,250

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MORTGAGE CARRIERS, BROKERS AND SERVICES ABBEY MORTGAGE BANK PLC 4,200.00 1.00 - 1 100 ASO SAVINGS AND LOANS PLC 7,370.87 0.50 - 0 0 INFINITY TRUST MORTGAGE BANK PLC 5,796.93 1.39 - 0 0 RESORT SAVINGS & LOANS PLC 2,265.95 0.20 - 0 0 UNION HOMES SAVINGS AND LOANS PLC. 2,949.22 3.02 - 0 0 1 100 OTHER FINANCIAL INSTITUTIONS AFRICA PRUDENTIAL PLC 8,400.00 4.20 2.44 41 391,177 CUSTODIAN INVESTMENT PLC 35,291.19 6.00 - 7 109,201 DEAP CAPITAL MANAGEMENT & TRUST PLC 660.00 0.44 - 0 0 FCMB GROUP PLC. 39,803.45 2.01 -0.50 51 3,111,780 ROYAL EXCHANGE PLC. 1,183.44 0.23 4.55 6 301,642 STANBIC IBTC HOLDINGS PLC 419,985.42 40.10 - 9 5,311 UNITED CAPITAL PLC 14,220.00 2.37 0.85 52 1,712,504 166 5,631,615 794 205,363,493 HEALTHCARE PROVIDERS EKOCORP PLC. 1,994.40 4.00 - 5 112,202 UNION DIAGNOSTIC & CLINICAL SERVICES PLC 852.75 0.24 9.09 4 422,000 9 534,202 MEDICAL SUPPLIES MORISON INDUSTRIES PLC. 494.58 0.50 - 0 0 0 0 PHARMACEUTICALS EVANS MEDICAL PLC. 366.17 0.50 - 0 0 FIDSON HEALTHCARE PLC 7,823.85 3.75 - 7 262,782 GLAXO SMITHKLINE CONSUMER NIG. PLC. 7,474.23 6.25 9.65 62 6,962,499 MAY & BAKER NIGERIA PLC. 3,536.73 2.05 - 15 152,888 NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 1,386.38 0.73 - 16 275,673 NIGERIA-GERMAN CHEMICALS PLC. 556.71 3.62 - 0 0 PHARMA-DEKO PLC. 325.23 1.50 - 2 1,240 102 7,655,082 111 8,189,284 COMPUTER BASED SYSTEMS COURTEVILLE BUSINESS SOLUTIONS PLC 888.00 0.25 - 11 1,976,543 11 1,976,543 COMPUTERS AND PERIPHERALS OMATEK VENTURES PLC 1,470.89 0.50 - 0 0 0 0 IT SERVICES CWG PLC 6,413.06 2.54 - 0 0 NCR (NIGERIA) PLC. 486.00 4.50 - 0 0 TRIPPLE GEE AND COMPANY PLC. 316.77 0.64 - 0 0 0 0 PROCESSING SYSTEMS CHAMS PLC 1,784.50 0.38 -2.56 49 6,355,163 E-TRANZACT INTERNATIONAL PLC 9,996.00 2.38 - 0 0 49 6,355,163 TELECOMMUNICATIONS SERVICES AIRTEL AFRICA PLC 1,123,311.48 298.90 - 14 90,948 14 90,948 74 8,422,654 BUILDING MATERIALS BERGER PAINTS PLC 2,173.68 7.50 - 4 6,714 CAP PLC 17,010.00 24.30 - 13 20,562 CEMENT CO. OF NORTH.NIG. PLC 249,726.52 19.00 - 8 9,810 MEYER PLC. 313.43 0.59 - 1 1,595 PORTLAND PAINTS & PRODUCTS NIGERIA PLC 1,769.32 2.23 - 0 0 PREMIER PAINTS PLC. 1,156.20 9.40 - 0 0 26 38,681 ELECTRONIC AND ELECTRICAL PRODUCTS AUSTIN LAZ & COMPANY PLC 2,256.91 2.09 - 0 0 CUTIX PLC. 2,782.89 1.58 9.72 44 3,377,875 44 3,377,875 PACKAGING/CONTAINERS BETA GLASS PLC. 26,898.49 53.80 - 2 240 GREIF NIGERIA PLC 388.02 9.10 - 0 0 2 240 AGRO-ALLIED & CHEMICALS NOTORE CHEMICAL IND PLC 100,754.14 62.50 - 0 0 0 0 72 3,416,796 CHEMICALS B.O.C. GASES PLC. 2,547.42 6.12 - 3 1,124 3 1,124 METALS ALUMINIUM EXTRUSION IND. PLC. 1,781.64 8.10 - 1 20 1 20 MINING SERVICES MULTIVERSE MINING AND EXPLORATION PLC 852.39 0.20 - 0 0 0 0 PAPER/FOREST PRODUCTS THOMAS WYATT NIG. PLC. 83.60 0.38 - 0 0 0 0 4 1,144 ENERGY EQUIPMENT AND SERVICES JAPAUL OIL & MARITIME SERVICES PLC 1,315.17 0.21 - 16 895,100 16 895,100 INTEGRATED OIL AND GAS SERVICES OANDO PLC 46,244.85 3.72 6.29 42 708,214 42 708,214 PETROLEUM AND PETROLEUM PRODUCTS DISTRIBUTORS 11 PLC 53,332.04 147.90 - 12 16,667 CONOIL PLC 12,838.11 18.50 - 9 11,750 ETERNA PLC. 3,651.61 2.80 - 5 65,344 FORTE OIL PLC. 23,574.91 18.10 - 22 104,926 MRS OIL NIGERIA PLC. 4,663.23 15.30 - 3 150 TOTAL NIGERIA PLC. 37,652.97 110.90 - 23 5,561 74 204,398 132 1,807,712 ADVERTISING AFROMEDIA PLC 1,509.28 0.34 -5.56 6 560,000 6 560,000 AIRLINES MEDVIEW AIRLINE PLC 17,551.17 1.80 - 0 0 0 0 AUTOMOBILE/AUTO PART RETAILERS R T BRISCOE PLC. 270.56 0.23 - 4 51,411 4 51,411 COURIER/FREIGHT/DELIVERY RED STAR EXPRESS PLC 2,623.26 4.45 - 6 27,720 TRANS-NATIONWIDE EXPRESS PLC. 421.96 0.90 - 6 162,385 12 190,105 HOSPITALITY TANTALIZERS PLC 642.33 0.20 - 0 0 0 0 HOTELS/LODGING CAPITAL HOTEL PLC 4,259.15 2.75 - 0 0 IKEJA HOTEL PLC 2,598.50 1.25 - 4 5,798 TOURIST COMPANY OF NIGERIA PLC. 7,862.53 3.50 - 0 0 TRANSCORP HOTELS PLC 41,042.18 5.40 - 0 0 4 5,798 MEDIA/ENTERTAINMENT DAAR COMMUNICATIONS PLC 4,800.00 0.40 - 1 2,000 1 2,000 PRINTING/PUBLISHING ACADEMY PRESS PLC. 223.78 0.37 - 2 10,000 LEARN AFRICA PLC 972.03 1.26 - 3 102,048 STUDIO PRESS (NIG) PLC. 1,183.82 1.99 - 0 0 UNIVERSITY PRESS PLC. 629.86 1.46 - 6 136,693 11 248,741 ROAD TRANSPORTATION ASSOCIATED BUS COMPANY PLC 679.66 0.41 - 2 66,000 2 66,000 SPECIALTY INTERLINKED TECHNOLOGIES PLC 757.44 3.20 - 2 6,100 SECURE ELECTRONIC TECHNOLOGY PLC 1,126.31 0.20 - 0 0

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Friday 29 November 2019

BUSINESS DAY

53

Business SOUTH-SOUTH

COMPLETE COVERAGE OF SOUTH-SOUTH / SOUTH-EAST

Imo hoteliers’ association cries out over multiple taxation, but state govt denies claim

REGIS ANUKWUOJI, Enugu

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EFEGADIRIM MADU, Port Harcourt & SABY ELEMBA, Owerri

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oteliers in Imo State under the aegis of Imo State Hoteliers Association (ISHA) are crying out over what they describe as continued multiple taxation system meted on them by the state’s board of internal revenue (IBIR). They hospitality chiefs said the obnoxious retinue of taxes had started from the immediate past administration of former governor, Rochas Okorocha; and wondered that the trend has continued in the present government headed

by Governor Emeka Ihedioha.

The group is calling on Governor Ihedioha to intervene urgently to reverse the trend, as they said it was negatively affecting their business, which would in turn, force them to lay off some staff, thereby increasing the unemployment rate in the state.

Imo, an oil-rich state in the Niger Delta region, is groans under high unemployment.

Data from the National Bureau of Statistics (NBS) for the third quarter of 2018 (Q3 2018) show that the State had the second highest unemployment rate and labour force population in the South-East geopolitical zone.

The Eastern Heartland State recorded an unemployment rate of 28.2%, and an underemployment rate of 15.1% in the last quarter of last year. The labour force population in the state also rose to 3,123,271, which is a 7.0% increase compared to the third quarter of 2017. The total net number of employed persons (full time and part-time/ underemployed) increased by 175,378 persons within Q3 2017 and Q3 2018, the NBS said.

Ugwuanyi takes proactive measure on fire outbreaks in Enugu

According to the hoteliers’ association, if the multiple taxation on operators of hotel and hospitality industry continued unabated, added to other problems, most of them might be forced to fold up, as they would be operating under increased running costs.

Chima Chukwunyere, the managing director of Domino Paramount Hotel, Owerri and the chairman of ISHA, said, alleged that some notorious tax agents who worked for the past administration of Okorocha had infiltrated the present IBIR revenue team masquerading as government revenue consultants.

He therefore, appealed to Governor Ihedioha to fish out the infiltrators, in line with the spirit of his “rebuild Imo” agenda.

Chukwunyere alleged that the infiltrators often connived

with some staff of the state judiciary to secure kangaroo court judgments to seal-up business premises of some of ISHA members on trumped-up charges and with prohibitive fines.

“For instance, previously we used to pay N10,000 as fine on any hotel that defaulted in controlling waste water from its premises from gushing out to pose health hazard to the public; but this was hiked to N750,000 by the aggressive revenue consultants,” the ISHA boss lamented.

He said, Governor Ihedioha upon assumption of office, promised them of going to be a clear departure from the ugly past of Okorocha administration. But we’re yet to see it. We are therefore, calling on him to spare us from the hands of these hawks who do not mean well for our state,” he said.

Chukwunyere argued that

the hotel and hospitality sector was perhaps the biggest industry and the largest employer of labour in Imo after the State government; noting that the unpatriotic activities of the tax consultants, if left unchecked by the present administration, would kill the hotel and hospitality sector in the state.

“Some of the hotels would be forced to close business, and their workers thrown into the already saturated labour market,” he said.

According to him, rampant and indiscriminate sealing up of hotels by the revenue consultants on frivolous allegations has now become the order of the day in the state. He argued that hotels in the state generate huge revenue for the state government monthly; advising the Ihedioha administration not to allow those parading as revenue

consultants to kill the geese that lay the golden eggs for it.

Meanwhile, Governor Ihedioha, briefing journalists at his private residence at New Owerri last Sunday, denied the existence of multiple taxation system in the state. He said his government has abolished the multiple tax system, but urged people to pay their taxes.

“There is no more multiple taxation in the state,” the governor said.

He disclosed that there would be some form of tax to be paid for refuse disposal, but that it must be a bill that has a human face. Let me tell Imo people that there is no multiple taxation. The Imo Internal Revenue Service (IIRS), we have gotten them to streamline things.

Everybody will need to pay for the services, not because we are in a hurry to raise revenue, but to run the State,” he said.

overnor Ifeanyi Ugwuanyi of Enugu State say he has taken a proactive measure to prevent fire outbreaks in major markets in the state this dry season.

The governor has thus approved some 1,290 units of fire extinguishers in 23 major markets and other fire-prone locations in the state.

According to the chief fire officer at the Enugu State Fire Service, Okwudiri Daniel Ohaa, the approval was part of measures adopted by the state government to checkmate any incidences of fire in the markets and other fireprone areas in the state.

Ohaa added that the governor also approved fire safety training for officials and traders in the 23 major markets and some other fire-prone locations in the state.

Confirming that the fire extinguishers have been procured for onward installation, the chief fire officer of the state, said that the benefiting markets include: Ogbete Main Market, Ogige Market Nsukka, Orba Modern Market and Timber Market, Maryland, Enugu.

Others are: Ariaria New Market, Enugu, Afor Awkunanaw, Gariki, Enugu, Obollo Afor Market, Afor Opi, Eke Agbani, Abakpa General Market, 9th Mile Market and Promised Land Tanker Park at Emene, among others.

Ohaa further intimated that the approval was the outcome of a fire risk assessment of major markets in Enugu embarked upon by the State Fire Service, in line with Governor Ugwuanyi’s directives.

NPDC gives out scholarships to 2,000 undergraduates in five NDDC states IDRIS UMAR MOMOH, Benin-City

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he Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National petroleum Corporation (NNPC), says it has given out scholarships to over 2,000 undergraduate students in five of the oilproducing states of the Niger Delta region in the last five years, said Mansur Sambo, managing director of the national oil company.

Sambo spoke at the Federal University of Petroleum Resources (FUPRE), Effurun, Delta State during the 2019 scholarship examinations for indigent students of the company’s host communities.

He was represented by

Dahiru Abubakar, manager, Community Relations department; saying that over 4,000 tertiary undergraduate students had participated in the pre-selection scholarship examinations in the period under review. He said the scholarship scheme was part of the oil company’s corporate social responsibility (CSR) to boost human capital development of youths in the host communities.

Sambo listed the five benefitting states to include: Edo, Delta, Imo, Akwa Ibom and Rivers.

He said that, in the 2019 scholarship programme, over 300 students participated in the examinations across the three centres which are FUPRE for Delta State, Imo and Rivers states. According

to him, this was a pre-selection examination for indigent students of the company’s host communities; and it took place simultaneously in the three states.

“The scholarship scheme is not a one-year scheme, but the one that will take the beneficiary through the university until graduation. But the scheme does not include employment. The scheme will prepare them to be employable, and contribute meaningfully to the community, as well as establish and sustain mutual relationship between the company and its communities.

The main thrust of NPDC corporate social responsibility policy is education. The relevant of education in any society cannot be overem-

phasized,” he said.

The NPDC boss noted that educating a society leads to educating the whole nation for improvement, technology and development in general.

Whereas, an illiterate society produces an illiterate nation that will be stagnated in all facet of human life.

Sambo said the company had spent millions of naira in execution of the scholarship scheme, and said he was pleased with the academic performance of the student-beneficiaries.

He called on parents to encourage their wards to key into the scheme, as it goes a long way in ameliorating the burden of financing their children’s education.

Also speaking, Prekeyi Tawari-Fufeyin, the Deputy

Vice Chancellor (Administration), Federal University of Petroleum Resources (FUPRE) commended NPDC for the initiative. She said the institution are consultants to NPDC by conducting the scholarship examinations for selected students from different communities.

The DVC Admin said about 180 students were writing the exam in FUPRE in Warri, with over 300 students in all the three centres in Imo, Delta and Rivers.

Tawari-Fufeyin said the programme was a laudable initiative which the Niger Delta youths should take advantage of to empower themselves for the future. “Youth restiveness has reduced in the Niger Delta area, but not totally

eradicated, because they’re beginning to take advantage and appreciate the NPDC initiative,” she said.

The FUPRE deputy vice chancellor said the scholarship scheme was for those who are already university students, especially some of whom cannot pay the fees because of poverty; and of course, the university system survives on payment of fees.

She said it was the third time they were conducting the scholarship examinations. At the first time, they had over 800 students selected for the scholarship exams.

In the last exams, the number dropped because NPDC assets reduced, with students coming from NPDC’s concession areas also dropped.

Women in Business

BUSINESS DAY Friday 29 November 2019

By Kemi Ajumobi

Cecilia Akintomide

Funmilayo Omo

Non-Executive Director, FBN Holdings ecilia Akintomide joined the Board of FBN Holdings Plc. on July 19, 2016. She is a seasoned professional with executive level management experience. She was, until recently, Vice President Secretary General of the African Development Bank, where she was responsible for managing the secretariat as well as shareholder relations involving 80 member states. She was also responsible for the work programs of the Boards, and the institution’s diplomatic relations. In addition, she was a member of the senior management coordination and operations committees and chaired the committee for the preparation of the Annual Meetings.

Prior to her role as VPSG, she headed the public and private sector financing legal services team, covering projects in the whole of Africa, and also served as Chief Counsel Institutional Affairs, as well as Finance Counsel. She brings to the Board of FBN Holdings Plc., her wealth of management experience, particularly from an international financial institution, and her legal experience spanning over 30 years’ post call to bar, with expertise in corporate governance, institutional affairs, business reorganisations and financing. She has practiced law in different jurisdictions, including as a Business Reorganisation Associate in the law firm of Weil Gotshal & Manges, in New York, and as a Junior Associate at O. Thomas & Co., Lagos.

She was a member of the United Nations election monitoring team for the 1994 presidential elections in South Africa, won by Nelson Mandela. She was awarded Officer of the Order of the Niger (OON) by the Government of the Federal Republic of Nigeria in 2014 for her meritorious contributions in the field of International Development. She is experienced in working and leading in a multicultural and bilingual environment.

Cecilia is a frequent speaker at international events on Law, Development and Gender.

She is a member of the Nigerian Bar and the New York Bar. She holds gold and bronze

Managing Director, African Alliance PLC

C

medals in swimming, and is a Deacon as well as a member of the church choir.

Looking into the issue of multiple taxation, she says a critical part of managing an economy is resource allocation and making sure resources are in the hands of those who are best to deploy those resources. For her, if you look at taxes, you look at providing tax rates and incentives to business. “What will they do with it? They would reinvest, expand, create more jobs that we need desperately with 23 percent unemployment rate.”

According to her, “If you take for example, companies that are listed in the capital market, those companies have already subjected themselves to a higher level of scrutiny, higher level of disclosure, higher reporting standards, higher ethical standards, because they are on the stock exchange and so those companies at a cost, have subjected themselves to higher corporate government standards and in return, they should get a break and the break should come from tax breaks and tax incentives.”

Furthermore, she revealed that certain countries have gone as far as having the corporate income tax for companies that list. This is for a short period as some have done it for 3 years but looking at those tax breaks that give an immediate vitamin boost to the economy.”

Funmi says, those companies that are on the stock exchange, from the same revenues that are generated, the companies pay their tax and then, profit after tax, you pay dividends.

The same dividend that is withholding tax, at the end of this value chain is the shareholder who has been hit twice, from the company itself paying its tax from the withholding. By the time it gets to the shareholder, the returns have been significantly impacted.

“It is looking at those things and saying ‘let’s give a break’ because at the end of the day, more resources will be reinvested by the company, the shareholders gets returns and they are more confident about the economic space and willing to reinvest.”

A

n innovative and transformational leader, ‘Funmilayo Omo brings over 25 years of experience and a proven track record of success into her role as the Managing Director ofAfrican Alliance Plc. She began her professional career in 1991 at African Alliance, before it was listed on the Nigerian Stock Exchange, as the Head of Department, Individual Business. Her drive and penchant for excellence led to her promotion to the position, Head of Technical, Insurance Operations, where she successfully led the retail marketing team to expand the business volume by over 1000%.

Following that, she rose to the position of the Chief Operating Officer in 2006, where she was solely responsible for providing strategic direction for the company’s business operations.

In 2012, Funmilayo resumed the position of Executive Director, Operations at African Alliance Plc, overseeing an 80-staff team comprising of three departments. There, she doubled the gross premium income of the company within 3 years. During the period, she pioneered the design of the annuity products of the company boosting the annuity product range of African Alliance Plc to become a top-3 market player in the industry.

She was credited for championing the design of the life administration application and supervising the transition of African Alliance Plc from semi-automated application usage to fully automated management; a change that saved the company countless man hours, thereby improving efficiency and turnaround time.

As an innovative leader with a keen insight into the insurance market terrain, Funmilayo pioneered the design, modelling and marketing of Takaful in African Alliance Plc as the pioneer family Takaful Office in Nigeria.

She also developed and successfully launched micro insurance as a Strategic Business Unit in African Alliance Plc. In addition to her BSc. (Hons.) degree in Insurance from the University of Lagos, Funmilayo is an Associate Member of the prestigious Chartered Institute of Insurance, London, an Associate Member of the Nigerian Institute of Management and

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an Associate Member of the Certified Pensions Institute of Nigeria.

She is an alumnus of the Lagos Business School and the China Europe International Business School (CEIBS). Funmilayo served on the Board of Trustees, Ajaokuta Steel Complex, Axiom Air and National Iron Ore Mining Company (NIOMCO) until 2016.

She currently serves on the board of Frenchies Food, as well as on the board of PAL Pensions Alliance, an associate of African Alliance Plc. For Funmi, Success means different things to several people. In her journey towards achieving her goals, her parameters for measuring success have often changed because according to her, “You are a function of what you’ve always known and so I used to measure success the way the average person would.

Hence, success to me meant growth in my career, experience, promotions and of course everybody’s all-time favorite – money. However, based on what I now know, those parameters don’t work for me anymore.” She says.

It doesn’t work for her anymore because, according to Funmi, the issue here with the aforementioned measurements of success is that, when you take an in-depth look at the metrics, you would often find that it is mainly in comparison with some other person’s ‘’perceived success’’.

“If success to you only means getting a promotion over John or making more money than Priscilla, then you have achieved just an abridged version of true success” says Funmi.

As long as Funmi is concerned, people who are regarded as successful did and still do a lot of the things that resulted in their success. However, she has also come to realize that there are certain things successful people don’t do and what’s beautiful about it is that it has contributed immensely to their overall success.

Funmi says, these very intentional acts of avoidance play a key role in why they are successful today. She lists them as 7 in number.

Funmi says successful people do not procrastinate, engage in pity-party, feel entitled, avoid risks, loathe change, not afraid to say ‘NO’ and lastly, they not quit.

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