Westafrica BusinessNews Nov 05-09, 2018

NNPC Dispels Rumour on Petroleum Scarcity

BY ENYI MOSES

T

he Nigerian National Petroleum Corporation (NNPC) has dispelled insinuations of an impending pe-troleum products scarcity in the country.

The corporation’s

Group General Manager, Group Public Affairs, Ndu Ughamadu, said the corporation had 39 days petroleum products sufficiency and about 25 days products availability on land, stressing that motorists and other consumers of petroleum products are

assured of adequate stock to meet their energy needs.

The NNPC spokesperson said providing information on the petroleum products stock level became necessary to dispel suggestions that the threat of strike action by the Nigeria Labour Congress (NLC) would result in a slip

Vol. 05 No. 263

NOVEMBER 5 - 9, 2018

into a round of products shortages across the country.

Ughamadu advised motorists not to engage in panic buying as the corporation would do all it could to ensure the strike action does not impact negatively on fuel distribution nationwide.

He stated that Nigerians should remain vigilant and volunteer information to the Department of Petroleum Resources (DPR), the Industry regulator or to any law enforcement agency around them, on any station that attempts to take

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Dr Baru

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ISSN: 2408-6703

Nigerians Fret Over National Assets Seizure Nigeria-China Debt:

BY NIYI JACOBS AG BUSINESS EDITOR

T

he fear of China taking over Nigeria assets has recently pervaded the nation with several African na-tions standing the risk of losing their sovereignty to this big creditor.

The concern which was raised recently at a meeting of some financial experts in Lokoja in Kogi state explained that the world’s most populous nation will seize national assets, once these owing govern-ments default on the Chinese loans

hanging round their necks.

Speaking with Westafrica BusinessNews, a source at the gathering who pleaded anonymity said “I afraid the Nigerian government might be so naughty to include the takeover of national assets in its loan terms with the Chinese government. So, I envisage the possible takeover of our infrastructure, in case we default in loan repayment.”

But since the President has assured that loans will be repaid as at when due, one can only hope that Nigeria keeps to that promise,

As Chinese loans hit 8.5% of Nigeria’s external debt

Page 6

ABCON says new rule limiting directorship tenure difficult to implement Page 2

May & Baker Rights Issue triggers Controversy Page 14

NAG Hosts tourists, Unveils 50th anniversary plans Page 8-9

The Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala Usman (3rd left), the Country Di-rector, Renner and Renner Consulting, Ibby Iyama (2nd left), the Executive Director, Marine and Oper-ations (NPA), Dr. Sokonte Davies (left), and the Executive Director, Finance and Administration, Mohammed Bello-Koko during an awareness workshop on ISO 9001:2015 and Occupation Health, Safety, and Assessment Series (OHSAS) 18001:2007 ISO Certification for NPA in Lagos,

Forge documents for UK visas, get 10 years ban — High Commissioner

T

he outgoing British High Commissioner to Nigeria, Paul Arkwright has cautioned Nigerians seeking vi-sas to the UK to avoid presenting forged documents.

Speaking in Abuja, Arkwright warned that anyone

caught flouting the rule would be denied entry into the UK for at least 10 years.

“I know there is a feeling in Nigeria that we refuse visas more often than we accept them. That is not the case.

“We are not trying to keep Nigerians out but

it is important Nigerians stick to the rules when they are there in the same way that you in Nigeria would expect British people to obey the rules here.

Sadly, there are a few Nigerians who provide forged documents. We

know when a document is forged and that is an automatic 10-year ban.”

According to the envoy, Nigerians are welcome in the UK, as some Nigerians living there are

How Uncertainties shut HSBC, UBS banks, out of Nigeria

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NEWS

BUSINESSNEWS 2 WESTAFRICA NOVEMBER 5 - 9, 2018

ABCON says new rule limiting directorship tenure difficult to implement

T

he Association of Bureau De Change Operators of Nigeria (ABCON) has said that Central Bank of Nige-ria (CBN) new corporate governance policy limiting the tenure of directors of BDCs might be difficult to implement.

Alhaji Aminu Gwadabe, President, ABCON, Alhaji Aminu Gwadabe said on Sunday in Lagos that the difficulty would arise because the business of BDCs was largely driven by trust and personality of oper-ators.

CBN had on November 2 introduced new code of corporate governance rules for BDCs which, among others, limited the number of family members that could be on the management of BDCs and sepa-rated the positions of the Board Chairman and Chief Executive.

The regulation also

bars government agencies’ ownership of BDCs and allowed non-executive direc-tors of BDCs to serve for a maximum of three terms of four years each to ensure continuity and injec-tion of fresh ideas. ”The limit of directorship tenure in the policy for the BDC sub sector will be difficult to implement as a lot of trust and personality is a driven force for the business. ”There will definitely be teething challenges like any other policy,” Gwadabe said.

The ABCON chief said that corporate governance was germane to a successful management of every organisation. ”The issue of beneficial owner is a pointer even in complex organisations like banks and stock exchange companies,” Gwadabe added.

He noted that the small

and retail scale nature of BDC operations have often made owners in most cases lukewarm in implementing effective management and implementation of regulations.

The ABCON chief said that the association’s automation for BDC operations was aimed at ensuring corporate governance.

According to him, ABCON’s effort at corporate governance was already translating to ease of regulato-ry supervision with increasing transparency and operating in accordance with international standards.

The regulator said the BDC boards shall be accountable and responsible for the performance and af-fairs of the BDC and members of the board are severally and jointly liable for the activities for the BDC.

C/River Garment Factory unveils new range of wears

BY EDEM ARCHIBONG

T

he Cross River Government Garment Factory in partnership with Blue Ocean of India, has unveiled a new range of wears which include T-shirts, boxers, polo, shirts and trousers.

Gov. Ben Ayade, who spoke while inspecting the products at the Garment Factory on Sunday in Cala-bar, said he was proud of the quality of wears from the factory.

Ayade disclosed that the wears would be launched during the 2018 Calabar Carnival.

According to Ayade, the factory was established in line with its vision to produce clothing that can compete with the best designs in the world.

The governor said that the wears from the factory would go by the name, “Callyphina”.

Ayade further said it was the dream of his administration that the factory would dominate the T-shirt market in the country.

Displaying the products to newsmen, the governor remarked: “If you look at the finishing and the de-tailed lining, you will see precision and expertise at work.

“And if you look at the hemming and the final knitting, it just could be a Versace or Gucci or Dolce and Gabbana.

“It is exactly the quality we aim to achieve and our hope is to exceed this,” he said.

Ayade said that the

quality of finishing stood at 70 per cent, but assured of more work to be done to get the factory to produce quality for export.

“By the time Blue Ocean is ready and we are ready for the export, our quality and brand will be among the best in the entire world,” he said.

The Managing Consultant, Blue Ocean of India, Mr Atul Kakkar, explained that the job specification handled in his two weeks of stay in Calabar was in line with the governor’s vision to create a world class garment factory.

Kakkar disclosed that “the samples you are seeing are made by our people here

in Calabar. So, I am proud to say that nothing was done by the Indian team, we were just giving directions”.

“Our people are totally capable and I think they can compete in the fashion industry,” he assured.

On when the products would hit the market, the consultant disclosed that the wears are to be pro-duced in commercial quantity, especially as this year’s biggest street party, Carnival Calabar approach-es.

“We have started approaching government departments, private sectors and corporate bodies and they have signified interest to give us their orders.

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Lagos APC names Hamzat as Sanwo-Olu’s running mate

T

he Lagos State chapter of the All Progressives Congress (APC) on Sunday officially named Dr Obafemi Hamzat as the running mate of Mr Babajide Sanwoolu, its governorship candidate for the 2019 elec-tions.

The Chairman of the party in the state, Alhaji Tunde Balogun announced Hamzat’s choice at a news conference in Ikeja.

The speculations about the choice of Hamzat, a former Commissioner for Works became rife after he stepped down for Sanwoolu shortly before the primary.

Balogun said Hamzat was selected after wide consultations by the Apex decision making body of the party with other important stakeholders.

He described Hamzat as a competent hand, saying

the party had no doubt of the complementary role he would play in helping Sanwoolu move the state forward “The highest decision making body of APC together with all the relevant stakeholders of APC in Lagos State have endorsed Dr Kadiri Obafemi Hamzat as the running mate to the candidate of APC in Lagos State, Mr Babajide Sanwo-Olu.

Forge documents for UK visas, get 10 years ban — High Commissioner Continued from page 1 making very serious contributions to the British economy and other sectors.

He said that the British High Commission received about 80, 000 visa applications annually, adding that about 70 per cent of those applications were successful.

He said that 90 per cent of visa applications were from students wanting to study in the UK. Arkwright further advised those seeking visas to apply “in good time’’ and also ensure they had the required documents ready.

He stressed that it was

important for an applicant to have sufficient funds in their bank accounts which should have been in the account for a minimum of 28 days.

The British High Commissioner noted that the visa application was an online process and the High Commission was “working hard to streamline the process’’.

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BUSINESSNEWS 4 WESTAFRICA NOVEMBER 5 - 9, 2018

THE ECONOMIST

DOING BUSINESS RANKINGS Red in tooth, claw and tape

Most criticisms of the World Bank’s annual rankings miss the point

ADAM SMITH visited a pin factory to discover how the wealth of nations was created. Hernando de Soto, a Peruvian economist, went one step further. In 1983 his team set up their own garments factory outside Lima to discover how the potential wealth of nations was obstructed and frustrated by bundles of red tape. His experiment, which revealed that it took 289 days to register and license a new factory, inspired the World Bank’s annual assessment of how countries welcome businesses.

The latest of these Doing Business rankings was published this week.

Because they arouse countries’competitive spirit, the rankings are unusually influential. India’s success last year, jumping by 30 places, helped stir China to lift its position this year— by 32 places. And because they are influential, the rankings are also controversial. In January Paul Romer, then the bank’s chief economist, suggested that the political leanings of bank staff had potentially tainted some of the results. That allegation, which he could not substantiate and which led to his resignation, has encouraged critics

to renew older lines of attack. They argue that the reports do not match the actual experience of entrepreneurs; that they promote a mindless deregulatory race to the bottom; and that their methods are too unstable to allow anyone to judge countries over time.

Take each of these criticisms in turn.

Rather than setting up factories itself, the bank rates countries by asking thousands of lawyers, accountants and others how long it would take a small firm to be registered, obtain a building permit, pay taxes and so on (see Finance section). Their answers, it is true, do not always fit well with what firms themselves say about their own experience. But this objection largely misses the point. Everyone knows that some firms are big enough to bend the rules and others shadowy enough to evade them. Certainly Mr de Soto knew that no other factory actually wasted 289 days observing the letter of the law. But it is still useful to know what full compliance would entail. The answer helps explain why many companies stay in the shadows

and others need friends in high places.

Other critics argue that the race to the top of the bank’s rankings encourages a race to the bottom in regulatory standards. A country in a Hobbesian state of nature would get a perfect score on almost all of the bank’s indicators, says one commentator. This charge is easy to rebut. In a war of all against all, firms would struggle to get a loan or a quick electricity connection. The topranked country is New Zealand, where life is hardly nasty, brutish or short. It is true that the rankings chiefly assess the costs, not the benefits, of regulations and taxes. But why should it be otherwise?

No one would expect an index of pollution to include the benefits of carbon-emitting industrial production.

Critics also point out that the bank occasionally fiddles with its methods of assessment, adding new indicators and tweaking others. Countries can therefore jump up or down the rankings through no action of their own. This can be unfair. But the unfairness is minor in the grand scheme of things.

Politicians are always getting credit and blame for rallies, crashes, booms and

busts outside of their control. And since governments cannot dictate the bank’s methodological tweaks, their best bet for improving their rank is still to cut red tape.

Unfortunately some governments now game the rankings, enacting reforms engineered to yield the biggest jump in their standing for the smallest political effort. But in these cases, the blame surely lies with the governments rather than the bank. And any policymaker bothered enough about the rankings to game them, probably cares at least a little about business. The worst governments do not care enough to cheat.

Worth the candle In such places, regulations are both grossly inefficient and wholly ineffective, protecting almost nobody; most firms struggle for survival outside of the government’s limited reach. Mr de Soto and his followers do not want to liberate firms from all regulation.

They want to help garment-makers and pin factories escape an informal economy that can be truly brutish.

BUSINESSNEWS 5 WESTAFRICA NOVEMBER 5 - 9, 2018

STRICTLY FOR CEOs

Africa: A CRUCIBLE for CREATIVITY (1) Lessons from the continent’s breakout businesses Acha Leke Chair, Africa, McKinsey & Company Saf Yeboah-Amankwah Senior partner, McKinsey & Company

the development of 10,000 megawatts of power generation capacity, upgrades to air-ports, the modernization and expansion of the national railway corporation’s locomotives, and the construction of public hospitals and diagnostic centers. Jay Ireland, the recently retired president and CEO of GE Africa, describes the approach as “an umbrella agreement matching our capabilities as a company with the issues the country was facing, including putting more power on the grid, strength-ening logistics, and improving health care outcomes.”

Other African innovators are harnessing mobile money, along with advances in solar power and bat-tery storage, to leapfrog the continent’s gaps in electric power generation. One example is Kenyabased M-KOPA, which provides affordable solar-powered electricity generation and storage solutions to households that lack access to the grid—and finances payment over a 12-month period via mobile money accounts. Since its founding, in 2011, M-KOPA has sold more than 600,000 household kits and garnered investments from multinationals including Japan’s Mitsui. Another example is Uganda-based Fenix, which has sold 140,000 solar power kits, also enabled by mobile money.

In late 2017 Fenix was acquired

by Engie, a major global energy company based in France, as part of a drive to use digital technologies to provide 20 million people around the world with decarbonized, decentralized energy by 2020.

H

ow MANY COMPANIES IN AFRICA earn annual revenues of $1 billion or more? Most global executives we speak with guess there are fewer than a hundred. Many answer “zero.”The reality? Four hundred such companies exist—and they are, on average, both faster growing and more profitable than their global peers.

We have advised many of these companies as they have spread rapidly across Africa and beyond, and we’ve observed an unexpected side effect of this growth burst: Africa has become an important test lab for global innovation. If you can build a product, a service, or a business model that’s cost-effective and robust enough to succeed in Africa, chances are it will be competitive in many other regions of the world.

We don’t mean to minimize the challenges of doing business in Africa (challenges of which successful entrepreneurs are well aware).

Inadequate infrastructure may mean that companies need to build their own supply chains, for example, and inadequate public education may mean they need to train workers in basic skills and mindsets. But as we shall see, those challenges also provide opportunities for value creation.

To help global executives and entrepreneurs pinpoint the Africaborn innovations they can learn from, partner with, or invest in, we have sketched a taxonomy of six innovation types, which we describe in the following pages. Technology is the golden thread running throughout: More than perhaps any other region, Africa is piloting digitally enabled breakthroughs that can aid companies in surmounting entrenched barriers and unlocking exponential progress.

LOW- AND HIGH-TECH MOVES TOWARD FINANCIAL INCLUSION IN EMERGING ECONOMIES, 2 billion individuals and 200 million businesses lack access to savings and credit, and many of those with access pay dearly for a modest range of products (see the exhibit “Who Are the Financially Excluded?”). The problem is by no means limited to the developing world. In the United States, one in 14 households—some 9 million in all—lacks a checking or savings account, often for reasons of affordability. Another 24 million are underbanked: Although they have accounts, they also resort to costly financial products and services outside the banking system, such as payday loans.

To serve excluded households— and to do so in a profitable, sustainable way—banks and other firms must use technology-based solutions and lowtech work-arounds. African companies provide compel-ling examples of both. Consider Equity Bank, born of a small building society in Kenya in 2004. By 2017 it had more than 12 million clients across East Africa, more than $5 billion in assets, and reported pretax profits of $270 million. James Mwangi, the founding CEO, told us that the bank’s very purpose is “to

solve a social problem: lack of access to financial services.”That problem is deeply personal for him. “I grew up in a rural area, and my mother didn’t have a bank account,”he said. “The nearest bank branch was 50 kilometers away, and the minimum opening balance was equivalent to several years of her earnings.”Kenyans’response was to keep their money under the mattress.

Fewer than one in 10 Kenyan adults had a bank account at the turn of the 21st century. Today, thanks in large measure to Equity Bank’s innovations, two-thirds do. “We knew we had to address the needs of people like my mother,”Mwangi said. Well before cell phone–based banking came along, Equity Bank introduced what it called mobile banking: mini bank branches that fit in the back of a Land

Rover and were driven from village to village. The bank’s best-known innovation, though, is its agency banking model: It has accredited more than 30,000 small retail outlets across the country as bank agents, able to accept deposits and dispense cash.

Alongside these low-tech innovations, Equity Bank has harnessed the exponential growth in mobile telephony in Africa. In 2000 the entire sub-Saharan region had fewer telephone lines than the island of Manhattan. By 2016 there were more than 700 million mobile phone connections across the continent—roughly one for every adult.

Cell phones have transformed Africans’lives in important ways, such as by replacing cash transactions with instant and secure mobile payments.

Fewer than one in 10 Kenyan adults had a bank account at the turn of the 21st century.

Today, thanks in large measure to Equity Bank’s innovations, two-thirds do.

“We knew we had to address the needs of people like my mother

There are now 122 million active mobile money accounts in subSaharan Africa—more than in any other region of the world (see the exhibit “Africa Is the Leader in Mobile Money”). That growth enabled Equity Bank to move beyond Land Rovers and create true mobile banking via its Equitel cell-phone banking application, launched in 2015. Equitel now handles the vast majority of the bank’s cash transactions and loan disbursements, helping to make the bank extremely cost-efficient.

NEW PARTNERSHIPS FOR INFRASTRUCTURE DEVELOPMENT BOTH DEVELOPED AND DEVELOPING countries have glaring gaps in transportation, power, and water infrastructure and in “soft”infrastructure such as health care facilities. Our McKinsey colleagues esti-mate that the global gap between current and required infrastructure spending is $350 billion a year; unless it is closed, growth will slow and fast-growing cities will come under enormous strain. Nowhere is the gap bigger than in Africa; for instance, nearly 600 million people there lack access to electricity. The deficit has spurred some bold publicprivate collaborations that could serve as a model for other regions.

A case in point: the “company to country”agreements between GE and various African governments.

These represent a new frontier in the company’s approach to publicsector clients. For example, GE’s agreement with Nigeria supports the financing, design, and building of vital infrastructure, with pro-jects including

APPROACHES INDUSTRIALIZATION M A N U F A C T U R I N G REPRESENTS ANOTHER CLASS of African innovations relevant to other regions seeking to build or revitalize their industrial base to meet local demand and create stable jobs. One pioneer is Nigeria’s Aliko Dangote, whose Dangote Industries achieved the seemingly impossible task of building large-scale manufacturing businesses when the country was plagued by chronic power out-ages, exchange rate volatility, and other impediments, including underdeveloped local supply chains and shortages of technical skills. “We knew that everyone who had tried industrialization in Nigeria had gone out of business,”Dangote told us. So he built a shock-proof manufacturing model that included vertical integration, on-site power generation, robust engagement with the government, and an in-ternal manufacturing academy. Today his group produces pasta, sugar, salt, flour, plastics, and cement in large volumes, and it will soon add refined petroleum and fertilizers—all commodities that Nigeria has historically imported. The company has created 30,000 jobs and made Dangote Africa’s richest per-son.

Africa is also home to a growing group of innovative industries, from car making to chemicals, that meld the latest technologies with the continent’s labor force advantages to meet both African and global demand. An analysis by the McKinsey Global Institute suggests enormous potential to increase the production of such “global innovations,”which could enable Africa to double its manufacturing output in a decade.

TO

SMART

BUSINESSNEWS 6 WESTAFRICA NOVEMBER 5 - 9, 2018

Nigeria-China Debt: Continued from page 1 in order to prevent Nigerians from going through the agony and anger Zambians are still passing through.

Also an economic expert, Sarah Pius, said: “So far, China recently threatened to take over national as-sets in Zambia, for defaulting in loan repayment; then, what stops it from doing the same to Nigeria, if she fails to service the debts?”

Meanwhile, in the past three years, Nigeria has collected over $5 billion loan from the People’s Repub-lic of China, which has resulted in the execution of infrastructure projects across the country.

This was revealed by President Muhammadu Buhari in September 2018, in Beijing, at the China-Africa Cooperation (FOCAC) Round Table meeting, attended by African leaders and Chinese President Xi Jinping.

Chinese loans now make up 8.5% of Nigeria’s external debt of $22.08 billion, as at the end of June 2018.

However, it would be noted that Nigeria sets aside a reasonable percentage of its budget for debt servicing yearly, and most likely would not fail to service its Chinese debts.

Also, the Federal Government has dismissed insinuations of the possible takeover of the economy, by the Chinese Government, if it defaults on loan terms.

According to a statement issued by the Debt Management Office (DMO) last month, Chinese loans are cheaper compared to other international bodies and agencies and there is no risk of default on the Chinese loans.

“The public should be assured that Nigeria’s public debt is being managed under statutory provisions and international best practices, and there is no risk of default on any loan, including the Chinese loans.

“Thus, the possibility of a takeover of assets by a lender does not exist.

“For the avoidance of doubt, government’s borrowings in the domestic and external markets, includ-ing Chinese loans, are all backed by the full faith and credit of government, rather than a pledge of government’s assets.”

Meanwhile, here is a look at key Chinese-loan-funded infrastructural projects in the country, which might be taken over by China, in case Nigeria defaults in its debt repayment to the Asian giant, de-pending on what is contained in the terms of the loan deals.

Abuja Urban Rail System: This $500 million rail

Nigerians Fret Over National Assets Seizure

project was constructed with loans sought from China and happens to be the first urban rail system in the entire West African sub-region. The rail was com-missioned in July this year.

Abuja-Kaduna Rail System; This is another $500 million Chinese-funded rail system that has been com-pleted and operational in Nigeria. The amount was borrowed to complete the project, which brought the total figure to $1 billion.

The 180km rail line connects Abuja and Kaduna and was commissioned about two years ago. The rail line system is the first in Africa that uses modern Chinese standard and technology.

Investigations into the project revealed that the rail line is functioning efficiently with no issues, and one could only hope that it would not be taken over by China.

Upgrading of Airport Terminals; This is one of various on-going projects worth $3.4 billion that Nigeria is leveraging Chinese funding to execute across the country.

This amount was jointly borrowed under the administrations of Presidents Muhammadu Buhari and Goodluck Jonathan. In 2013, Nigeria se-cured a $500 million loan from China at 2.5% interest rate, for the construction of four international airport terminals in Abuja, Kano, Lagos and Port Harcourt, after signing a Memorandum of Under-standing with China Exim Bank. The MoU for the loan was signed in Beijing, with the delivery of the four new International airport terminals to be constructed by the China Civil Engineering Construction Corporation (CCECC).

The new terminals, “designed to rival some of the best around the world”, were to be part of the achievements of President Jonathan’s administration, ahead of its 2015 re-election bid, however, none of the terminals were completed before he lost his re-election bid. The Port Harcourt Interna-tional Airport terminal, part of the deal, was commissioned last week by President Buhari.

Lagos-Kano Rail Line; This is another project that is part of the recent $3.4 billion Chinese loan to construct infrastructural projects in Nigeria. Though the rail line is an extension of the Lagos-Ibadan stand-ard rail gauge, it is to be funded with about $6.1 billion loan to be used on Ibadan-Ilorin-Minna-Kaduna- Kano line.

The railway will run parallel to the British-built Cape gauge line, which has a lower design capacity and is in a deteriorated condition.

Zungeru Hydroelectric Power Project;This is a $1.2 billion loan power plant that is currently under con-struction by the China Electric Engineering Company (CNEEC).

It was initially billed to be completed to-wards the end of 2019, but will now be completed in 2020.

The Hydro Power Plant will produce 700MW of electricity and it is a joint project between Nigeria and the

Chinese government at a financial contribution ratio of 25/75 per cent respectively.

It is expected to produce a yearly power generation of 2,640GWh and supply electricity to the National Grid.

Lagos-Ibadan Rail Line; This rail line is being funded by a $1.6 billion loan secured from the China Exim Bank. A sum of $1.6 billion was borrowed by the current government for the construction of this standard

gauge Lagos-Ibadan rail line that will connect Nigeria’s commercial capital, Lagos to Ibadan. The project is a segment of the Lagos-Kano Railway modernisation project.

Fibre Cables for Internet Infrastructure; The Export-Import Bank of China provided a loan of $328 mil-lion to support Nigeria’s National Information and Communication Technology Infrastructure Backbone Phase 11 (NICTIB

11) between Galaxy Backbone Limited and Huawei Technologies Limited (HUAWEI). This project is expected to boost Nigeria’s Information and Communication Technology sector.

Furthermore, less than 3 months ago, Nigeria signed an additional $1 billion loan from China for addi-tional rolling stock for the newly constructed rail lines, as well as road rehabilitation and water supply projects.

FG will no longer bear cost of service charge for TSA payments — AGF

F

ederal Government has clarified that henceforth, it will no longer bear the service charge cost on all payments to its Ministries, Departments and Agencies (MDAs) as such costs will be borne by the pay-er.

Accountant-General of the Federation (AGF), Ahmed Idris said this in a statement issued by Johnson Oise, Director, Press, Office of the Accountant-General of the Federation (OAGF), on Sunday in Abuja.

Idris said that the Federal Government had spent N16 billion on Treasury Single Account (TSA) transaction cost in two years.

He said that right from the inception of TSA, the Federal Government had been bearing the cost of transmission of funds and would not want to do so anymore.

“Within the last two years, government spent almost N16 billion in this direction which ordinarily should be borne by those making payments.

“So, it is time for Nigerians to pay for the services that they receive and government will take whatev-er is due to it without necessarily incurring cost.’’

“In the old tariff regime, the Federal Government bore the charges on all transactions to the service providers

Ahmed Idris on

behalf of payers.’’

Idris said a lot of sensitisation had been done to give enough room to understand the new tariff regime and for compliance, adding that the charges were minimal and negotiable.

“By negotiable, I mean by introduction of more players in the market, definitely the charges will come down from whatever they are now, but right now discussions are going on to make the charges

as

minimal as possible.

“We are liberalising the market and it has to be a level playing field for all operators to operate and that is what will happen.’’

The AGF said that the Central Bank of Nigeria (CBN), as the regulator which stipulates the rates of the charges would always intervene if any service provider charges beyond the approved rate.

TSA is a public accounting

system using a single account, or a set of linked accounts by government.

The aim is to ensure that all revenue receipts and payments are done through a Consolidated Revenue Account (CRA) at the CBN. The scheme which commenced in 2012 uses a unified structure of accounting for MDAs to ensure accountability and transparency in public fund management.

NIMASA partners MAN to provide standard facilities in Oron

T

he Rector, Maritime Academy of Nigeria (MAN), Duja Effedua, says that the Academy is partnering with the Nigerian Maritime Administration and Safety Agency, (NIMASA) to provide standard facilities in the academy, Oron.

Effedua, whose academy graduated 325 marine engineers for the 2017/18 academic session told newsmen on Sunday in Lagos that, the partnership was to ensure adequate training facilities in Oron.

The MAN rector, said that the measure was for the institution to be in line with internationally acceptable specifications to

attain compliance with the International Convention on Standards of Training and for watch-keeping for Seafarers (STCW 1978) and as amended in 2010.

“Fully equipped multimedia classrooms with fire training grounds and custom purpose built swimming pool as well as realistic simulation environment are some of the new innovations his team and NI-MASA are working on. ”We have structured and have gotten 60 per cent right. Presently we are sourcing for qualified lectur-ers home and abroad. ”We are also remodeling the classrooms, hostels

as

well as the library.

“I am glad to announce that the management of NIMASA has promised to be with us all the way in terms of financial support,’’ he said.

According to him, a new simulation centre, which NIMASA has commenced the process of equipping to international training standards, is under construction.

Effedua said, “Dr Dakuku Peterside is a person who matches words with action.

“NIMASA has commenced the process of acquiring a simulator amongst other equipment for training of our cadets to ensure that Certificates of

Competencies (CoCs) issued here attain global recognition.

“I believe before the end of the 2019 academic session, we shall be one of the best maritime acade-mies in Africa.’’

The Director-General of NIMASA, Dr Dakuku Peterside had assured the students and stakeholders of the Agency’s commitment to ensure capacity development in the sector.

The DG had commended the MAN team for judicious utilisation of funds disbursed to the institution and assured the rector of NIMASA’s backing.

ECONOMY

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

7

Battling corruption while 90 million Nigerians suffer

Nigeria continues to faces multiple socio-economic crisis induced principally by untamed corruption, exacerbating poverty level and crime rate. In this analysis, NIYI JACOBS writes on some suggestion by financial analysts on ways to get out of the menace.

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ear-after-year, data and poverty index releases by National Bureau of Statistics (NBS) and international bodies, the World Bank and International Monetary Fund (IMF), keep the nation’s poverty level on the rise.

Regrettably, every successive administration in Nigeria unconsciously helps in the proliferation of poverty through one or several policies it adopts.

To dissect causes of high poverty level in Nigeria amidst stupendous wealth, human and natural resources, the Nigerian Economic Summit Group (NESG), organisers of the yearly National Economic Summit (NES), at just concluded 24th edition, focused its theme on “Poverty to Prosperity: Making Governance and Institutions Work. ” This year, NES was loaded with over 15 syndicated sessions, as experts and panelists assembled to x-ray underlying impediments to growth, which they also proffered solutions to.

In the interim, a poverty report outside of Nigeria shores earlier in the year alluded to Nigeria being headquarters of the world’s poorest people.

A Brookings Institution report revealed that Nigeria overtook India as headquarters of the world’s poorest people.

The study, titled ‘The start of a new poverty narrative,’ says Nigeria has now taken over as the nation with the highest number of extremely poor people in the world, while the Republic of Congo is also rising as the second poorest in the world.

According to the report, extreme poverty in Nigeria is growing by six people every minute, the highest number in the world.

India, on the other hand, is witnessing a decline in its level of extreme poverty.

At the end of May (2018), the survey showed that Nigeria had an estimated 87 million people in extreme poverty, compared to India’s 73 million.

Strikingly, unlike similar unrelated reports debunked by the government, poverty report sits well with the administration. The eerie silence in the government circle is an admittance of pervading poverty level .

The poverty prognosis can be further interrogated by unravelling how the nation got to this messy path?

Given the huge limitless resources at Nigeria’s disposal, the country’s romance with poverty is an aberration. Sadly it’s the reality.

Nigeria is a very poor country, with 85 per cent of her citizens soaked in intense poverty. Joblessness, criminality are the country’s trademarks.

The 24th NES, which ended last week, devoted a great portion locating corruption as the

President Buhari

Poverty, unbridled population growth, poor healthcare and high number of out of school children are some of the lots confronting Nigeria as a nation. root cause of endemic poverty.

Nigeria’s Vice President, Prof.

Yemi Osinbajo, couldn’t agree less.

At the opening session of NES 24’s first plenary sub titled: “Corruption and rule of law, zero tolerance,” moderated by the founding Dean, Blavatnik School of Government at Oxford University, Mrs. Ngaire Woods, Osinbajo located Nigeria’s endemic poverty on layers of corruption festering the system.

He categorised corruption in two layers, grand corruption and kickback taking corruption.

Osinbajo told his audience that corrupt officials had built formidable contacts and financial war chest to frustrate their investigation and prosecution.

“By 2050, Nigeria will become the world’s third most populous nation and over 60 per cent of Nigeria’s population will be youth.

High oil revenue does not translate to job creation because grand corruption is the biggest problem of Nigeria,” the VP added.

Asked by session moderator to name influential people that prevent prosecution of corruption, Osinbajo said: “I would like to refer to the Nigerian elite, and it’s probably not fair to be that broad, but practically, every segment, because people who have access to you, they could be political leaders, religious leaders, business leaders, whoever has access to you.

“We have a system where people just feel like, ‘why don’t you just give this guy a break?’ Which again is part of the problem? You don’t get one call, you get several calls.”

Osinbajo said one of the most frustrating parts of the fight against corruption for him is the slow pace of prosecution.However, he added that the two conviction of former executive governors secured by the Federal Government had shown that the hand of justice may be slow, but it would eventually catch up.

Speaking recently in Ibadan at his honorary induction into Sigma Club at the University of Ibadan, a former Governor of the Central

Bank of Nigeria and Emir of Kano, Muhammad Sanusi II, said based on current realities, Nigeria and DR Congo would house 40 per cent of the world’s poorest people by 2050.

The revered economist said he gathered from the just concluded UN General Assembly that current projections showed that Africa would be home to 80 per cent of the world’s poorest people.

He said: “If every country continues its present trajectory, by 2050, 80 per cent of all the poor people in the world will live on the African continent.

“That is not the frightening thing. One half of this 80 per cent will be in Nigeria and the Democratic Republic of Congo. Two countries will account for 40 per cent of all the poor people in the world and Nigeria will therefore remain the poverty capital of the world.”

Lamenting Nigeria’s poor status, a country that was once prosperous, Sanusi said: “This is a country that has produced many great people.

This is a country that has boasted of best professors, greatest intellectuals, and the most educated people.”

Nigerian population is on autopilot, racing to overtake India and China in a few years .

Untamed rise in population fuels high poverty level in Nigeria. A situation where a couple with little or no defined income sources give birth to between six and 10 children is a sure path to poverty.

At this year NES, unbridled population and its link to poverty was exhausted by participants.

Minister of Finance, Mrs. Zainab Ahmed, a member of panel on “Sustainable Economic Opportunities: Ending the Vicious Cycle,” hinted of government mulling a policy to rein in unrestricted birth.

Though she said it would be a difficult task, the minister said the Federal Government was seeking the buy-in of religious leaders and traditional rulers as vehicles of reaching out to Nigerians through advocacy campaign.

Like previous NES editions, the annual gathering of private and public sector think tanks was loaded with recommendations. They are never in short supply. However, converting recommendations to action lies the bottleneck.

The organisers explained that most of NES recommendations were implemented by government.

They cited Economic Recovery and Growth Plan (EGRP), which it said was conceived by NES and recommended to the current government as an economic blueprint to steer the economic from recession.

Speaking on the challenge of getting fiscal authorities (Federal government) to implement decisions reached at the summit, NESG Chairman, Mr. Asuen Ighodalo, was confident of government’s commitment to implementing NES recommendations.

He said NES package containing summit recommendation would be delivered to the Federal Government, adding that NESG had tracking committee, whose duty it is to engage the government on implementation of recommendation.

Poverty, unbridled population growth, poor healthcare and high number of out of school children are some of the lots confronting Nigeria as a nation.

The plight is not induced by dearth of resources, but self-inflicted, mainly caused by grand corruption.

With imminent risk of multiple social economic threat facing Nigeria, the Federal Government must rise up to the occasion by not only accepting NES recommendations, but engage NESG on faithful implementation of the recommendations.

BUSINESSNEWS 8 WESTAFRICA NOVEMBER 5 - 9, 2018

TOURS & TRAVELS

NAG hosts tourists, unveils Tourism Editor, Ebere Chibuzor and Oniovosa Diejomaoh write on the recent 2018 edition of Ogidi Day and the enduring efforts of Chief Nike Okundaye, Curator of Nike Art Gallery,NAG, in using art and culture to drive Nigeria’s tourism business

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rguably she keenly participated; and certainly attracted incredible quality crowd, included the speaker of the Kogi State House of Assembly, Matthew Kolawole, the national publicity secretary of the People’s Dem-ocratic Party (PDP), Kola

Ologbondiyan, who was the most honoured guest, the immediate past permanent secretary, Ministry of Foreign Affairs, Ambassador Oluso-la Enikanolaye, royal fathers, among others.

That was exactly what happened at the Ogidi Day 2018, when NAG knot-tied Ogidi Festival

CHECK BOX • Okundaye noted, the community was endowed with a whole lot of tourism potentials.

• In a nutshell the day experienced a very good commercial activities and should not be classified as hype.

• Most worrisome for Okundaye was the seeming inability of the government to show support for Ogidi’s community • She would continue to bring tourism experts from diaspora to explore natures in Ogidi community.

• The trip to United States of America,USA, was guided by her natural curiosity and quest to posh up scope of art and culture in Nigeria • Okudaye also went into partnership with specific people in Kenya • She barely started her business back then, with one shilling.

to famil-iarize the culture and business sides of the Ogidi people in Ijumu Local Government Area of Kogi State to the global world.

The lined-up activities to thrill the atmosphere range from performance by various cultural groups and troupes from states

across the country. It was indeed a display of the rich culture of the diverse groups in Nigeria, such as masquerades displaying,

awards presentation among others.

The event was not really to acclaimed NAG boss efforts in the development of Nigeria’s

tour-ism, but she wanted to actualized the dreams and aspirations of the people through the NAG medium.

Swiss Int’l D’ Palm Airport Hotel Oasis Of Comfort

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3-star hotel with a superb environment, serene, beautiful and tranquil setting. With an improved product offering quality services, strong and focused team, diverse food and beverages and confer-ence services, and diligent staff, and this makes customers to describe the hotel as oasis comfort.

Swiss International D’ Palm Airport Hotel is located in Ajao Estate, Lagos. The hotel boasts a restaurant, a bar, and an inspiration swimming pool. Swiss International, popularly known as D’ Palm Airport Hotel designed for the discerning guests, the hotel offers quality services to accomplish the tasked set.

The location Of Swiss International D’ Palm Airport Hotel distinguishes it from the rest. The location of this hotel cannot be duplicated elsewhere. Accessibility is therefore not an issue for guest. it’s appar-ently not more than 26 minutes drive from Murtala Muhadmmed International Airport Swiss International Dpalms Airport Hotel provides seamless meeting and conference services to ensure an efficiently. running of the the hotel. It also provides a breathtaking spectacle with its man-made beauty.

TOURS & TRAVELS

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

50th anniversary plans The people may have been celebrating the cultural festival, thus more than that, it also a time for the sons and daugh-ters of the agrestic community, along with foreign tourists and fun seekers to gathered to celebrate the day.

In an exclusive interview she told Westafrica BusinessNews that NAG was to globally create awareness of the brand. “Many people do not know about the town, it is a small town, she optimistically noted, the community was endowed with a whole lot of tourism potentials range from mountaineering as well as art, culture among others.”

One of the high points of the event was when the Edo women’s dancing troupe dressed in sparkly red African attires to titillate the stage for more than an hour.

For Okundaye, apart from celebrating the day, it was also an opportunity to celebrate the New Yam festival, which sig-naled the beginning of harvest ushering the indigenes of the town to eat the new yam. That means, in addition to the Ogidi day, the local women made money through petty business-es, transport sector experienced boom, hotels did sold most of their rooms during the period, in a nutshell the day experienced a very good commercial activities and should not be classified as hype.

But most worrisome for Okundaye was the seeming inability of the government to show support for Ogidi’s communi-ty, she pointed out that some social amenities in the community are ongoing efforts that are made by the industrious sons and daughters of the community.

Edo women’s dancing troupe Insisting, Art and creativity will change society faster than politics.

Through Art and creativity she said, she would con-tinue to bring tourism experts from diaspora to explore natures in Ogidi community.

“This year we already have about forty people who want to come. But the two festivals came together, we have the Durban festival in Kano and Kaduna and the yam festival, if not we are going to see nothing less than forty expatriates here. But many of them who has not been to Durba before, they have gone to Durba. But every year we have to bring new people to the village. We have about 11 people from British High Commission; they want to fly to Ibadan but were not able to get a flight.

Tourism actually can boost

economy look at Gambia they have nothing, they have no oil, they have nothing to sell more than the sun and we have everything in Lagos. We have the ocean. So, tourism is a source of making money and once Nigeria start giving VISA you will see how they will come here. So tourism is a source of income.”

The trip to United States of America, USA, was guided by her natural curiosity and quest to posh up scope of art and culture in Nigeria, since she returned from USA in 1970, she re-examined her belief to better arts world.

Then she began to see things differently as to see life through art, she came to realised, through mak-ing of Adire one could easily brought to limelight; and seized the opportunity to train other women as that would enable them

gain self-employment, the whole idea was to disabuse their beliefs that marriage was a bondage.

Over a long run the idea to add the boys to the picture came when she noticed that should she continues to train only the women, she would tag as feminist, she then decided to train the boys to art of adire business, the whole ide-as were basically to train the women. NAG has about five centers cut across three locations in Nige-ria including Federal Capital Territory, Oshogbo and Lagos.

To celebrate her 50 years in business and coming up of age of her outfit NAG. Okundaye has to siezed the platform to disclose some of the NAG activities in the past. She advised people to always consider areas of strength not the oppo-site; she started art business in 1960 and

Abuja Jabamah to host whole class Chef

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wo of the seasoned chefs in the hospitality industry Chef Zainab Nasiru, and Chef Oliver Ahouandessi will be joining other top chefs at this year’s Abuja Jabamah.

Abuja Jabamah is the foremost Nigerian Travel Expo put together by the organizers of Akwaaba Afri-can Travel Market in its effort to drive domestic Tourism as it seeks to play Host to a huge travelling population, hotels, tour operators and travel agents for B2B Sessions and exhibitions.

Specifically, it’s organised for showcasing of the tourism attractions of northern Nigeria. This year’s event will have Ghana, Ethiopia and South Africa attending.

Zainab Nasiru, is an indigene of Taraba state and a graduate of Food science and Technology from Uni-versity of Maiduguri, also a professional

chef, entrepreneur, public and motivational speaker and cur-rently based in Abuja Nigeria capital Meanwhile, Chef Oliver Ahouandessi, who has being in the industry for 7 years has worked both in the commercial and domestic sectors.

Ahouandessi, who is a well-trained chef with 7 years’ experience in culinary said, “By God Grace I have worked in both Domestic and commercial industry like Restaurants, lounge, hotel and culinary school owned by me where I trained and impact upcoming chefs who want to make a mark in the industry.”

The 6th Abuja Jabamah will see the unveiling and celebrating of the Top 100 Tourism Personalities in Nigeria and the induction of the winners into the Tourism 100 Club Nigeria.

Uko

Zuma Rock

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opened the first gallery in 1968.

Okundaye did not stop there, she also went into partnership with specific people in Kenya; and established annex of NAG there which she eventually sold, even as she sold it out rightly in 1995, that could not limit her business. Out of the passionate love for tourism her intention was to create awareness, and for people to also know that it pays a lot to be diligent, as she barely started her business back then, with one shilling today the game has drastically changed for good and she could politely said, she worth about two billion naira.

Speaking at the event, His royal majesty Oba Rafiu Oladimeji Sule added that farming involved danger-ous encounters with nature and other members of the animal kingdom, many of which are quite un-friendly to man. The director general of the Ipinmisho, however urged the promoters of Ogidi Day to explore ways of making the United Nations Education, Science and Cultural Organisation (UNESCO) to list it as a world cultural tourism event.

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SPECIAL REPORT

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

Deep mess inside six companies

BY JULIUS ALAGBE, EDITOR, INTELLIGENCE UNIT

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here are rules of engagements for companies that want to be among league of quoted companies, it is a global demand. The rules are sacrosanct, and the demand is clear. Filing of report has always been among the top on the list because except investors have information, trading on stock may be difficult.

The need to fulfil fiduciary responsibility lie on the directors.

Last week, the Nigerian Stock Exchange (NSE), suspended trading in the shares of six companies for not filling their financial statements in accordance with its post-listing requirements.

These firms include Unity Bank Plc, Fortis Microfinance Bank Plc, Thomas Wyatt Nigeria Plc, Multi-trex Integrated Foods Plc, Golden Guinea Breweries Plc and Deap Capital Management & Trust Plc. Barely 24 hours after the announcement, Unity bank Plc returned to the trading floor having made available all its pending financials.

According to a statement released on the NSE’s website, Head, Listings Regulation Department, NSE, Godstime Iwenekhai, said that pursuant to Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of the Exchange, which provides that ‘If an issuer fails to file the relevant accounts by the expiration of the cure period, the exchange will: send to the issuer a second filing deficiency notification within two business days after the end of the cure period; suspend trading in the issuer’s securities and notify the Securities and Exchange Commission (SEC) and the market within 24 hours of the suspension.

“Trading in the shares of the six companies has been suspended effective today, November 1, 2018.

In accordance with the rules set forth above, the suspension of the

above listed companies will only be lifted upon the submission of the relevant accounts and provided the NSE is satisfied that the accounts comply with all applicable rules of the exchange.”

Westafrica BusinessNews investigation into these companies to know how they are doing revealed that many of the suspended companies are facing some high level challenges, from financial services firm that is struggling with brand identity, to agro processing firms that has been under lock for a while as it groans under burden of debt or capital management & trust firm that are deep seated in performance mess.

Unity Bank Plc: Escaped suspension after 24 hours Before the suspension, Unity Bank Plc was having some strategic and operational issues. Thanks to the management restiveness, the coast is looking clear. But market regulators have standard, of which there is a breach – not filling report as at when due. So, Unity Bank Plc deserve it but market expects the bank to set its path

straight to complete its comeback story. Meanwhile, you cannot talk about the comeback story at Unity Bank Plc without its history.

In the past, the load was heavy Unity Bank Plc was fraught with issues; which seems to have started since 2015, at least. It may be recalled that the bank said that it audited report was submitted to the Central Bank of Nigeria (CBN) as normal procedure before it is released to the public.

Now, the coast has been cleared.

Though, the bank returned negative in terms of profit performance in its audited result for 2017. But then, the comeback story is not completed without the fact that the result has been released. It is a signal that the management strategic cleanup exercise of the past mess is heading somehow, hopefully productive.

There had been disquiet that the bank has been riding on negative retain losses which (accumulated deficits) printed at N273.641 billion at the end of third quarter of 2017. To post positive net assets worth N84 billion in the period, non-distributive reserve

of N263.788 billion with the regulator has to be plugged into its statement of financial position.

Fortis Microfinance Bank Plc The bank which seems among top performing microfinance bank operators has been having it rough lately. In 2016, the bank was unable to submit its audited report and the bank was suspended. This caused chains of reaction with investors offloading their portfolio to maximise their return. The suspension caused massive panic withdrawal of deposits as the bank claimed that the announcement was largely misunderstood as revocation of Bank’s operating license.

In September 15, 2017 the stock exchange lifted suspension on Fortis stocks. Meanwhile, in the third quarter of 2017, several accounting anomalies were discovered in the bank’s book.

The issue invalidated previous financial reports filed with regulatory authorities and the public were materially impacted and has to be restated.

Early in 2018, Fortis Microfinance Bank Plc announced

Meanwhile, in the third quarter of 2017, several accounting anomalies were discovered in the bank’s book. The issue invalidated previous financial reports filed with regulatory authorities and the public were materially impacted and has to be restated

the appointment of an Interim Management Committee by the Central Bank of Nigeria (CBN) to pilot the affairs of the bank. The bank was led by Bunmi Lawson till August, 2018.

Incorporated as a Private Limited Company on the 18th of June 2007 and commenced operations as a unit Microfinance Bank on October 4, 2007. Fortis bank converted to a Public limited company in October 2011 and its shares were subsequently listed on the Nigerian Stock Exchange on the 20th of June 2012. In August 2015, Fortis obtained a license from the CBN to operate as a National Microfinance Bank.

Again, the stock market regulator has hammered the bank from presenting its shares on the bourse for trading. This indicates that all is far from being well for Fortis.

Does Thomas Wyatt Nigeria Plc need to list on primary market?

What is the problem with Thomas Wyatt Nigeria Plc? Its key business focus and activities include the school exercise books, hardcover notebooks and other paper materials. It has become a normal thing for Thomas Wyatt Nigeria Plc to be suspended for listing infractions.

The company which has been reeled in some strategic mess and low business performance seems to be looking out for some kind of lifeline from investors as its financial position weaken.

The company which was recently fined N46 million has been suspended from trading its stock. For five years, Thomas Wyatt numbers show that the company has been on lose streak with operating cost fast outgrowing revenue strength.

Again, Thomas Wyatt Nigeria Plc was suspended alongside 5 other firms by the Nigerian Stock Exchange (NSE) last week. The suspension was placed due to the companies’ failure to release their financial statements when due.

SPECIAL REPORT

WESTAFRICA BUSINESSNEWS

suspended by NSE

The same issue it had for its audited statement for the year ended March, 2018. The company has been growing revenue but sustaining loss before and after taxation.

Perhaps, the management of the company needs deep thinking and strategic review of its operation by moving the stock to the secondary market where it can be traded on a strong footing. Now, it has become very clear that primary listing is not Thomas Wyatt thing, really!

It business has proven to be not enough to sustain the company as a listed firm on the bourse.

Analysts are of the opinion that the company needs to do more.

Diversification of interest and creative intelligence in the industry where is plays may be help its future.

M U L T I - T R E X Integrated Foods Plc Heavily indebted Multi-trex Plc needs help. The company has always been trying to move with the tide in the economy. Due to debt exposure, it was locked for long time while many workers were laid off. It going concern life seems to have come into horizon when earlier in 2018, NEXIM Bank had promised to inject some funds but terms and conditions always apply.

But the company was suspended for not filling its financials as at when due just like others, last week.

NEXIM Bank in an export grant deal was expected to revive MultiTrex Integrated Foods Plc with the sum of N5bn to get the company up and running, and contribute significantly to economic growth.

The Managing Director, NEXIM Bank, Mr. Abba Bello, sometime said the lender was looking at intervening to bring the cocoa production company back to life. The company had to wait on Central Bank of Nigeria and AMCON’s approval to proceed on the intervention by NEXIM Bank. In 2017, AMCON and Multi Trex were on the same page as negotiation were said to be okay for both sides.

But did CBN approve this deal?

It seems there are in-betweens as the company continues to groaning with signs and facts that things are far from expectations, at least yet. In terms of capacity, Multi-trex factory can process 65,000 tonnes for full capacity but needed as much as N5 billion working capital to leverage.

The question is: why does this company be on the bourse if it cannot raise capital from investors?

With its two factories with installed capacity of 65,000 metric tonnes of cocoa per annum, processing equipment and machinery for manufacturing chocolate bars, drinks etc Multi trex has been running loss and the bank exposure defunct Skye Bank Plc was N8.5 billion before AMCON bought the toxic asset.

The company case became complicated when the apex barred banks from lending to companies indebted to AMCON above N5m threshold. Following this, the firm became handicapped and unable to access working capital to produce and pay back the debt owed to AMCON. In 2015, half way down the year, Multi Trex management sacked over 300 workers and its modern processing plant and

equipment are currently rotting away and exposed to vandals.

Golden Guinea Breweries Plc The Umuahia-based Golden Guinea Breweries Plc has its own issues but the new investor had promised a comeback to the beer market in August, 2018. Though there is a new investor, the Pan Marine Investment Limited, which has promised in a deal to resuscitate the breweries. The company has franchise rights to produce and market Golden Guinea Beer, Holsten Brewery’s Bergedorf premium lager beer and Bergedorf Malta in Nigeria.

In its audited statement for 2018 submitted in March, 2018 Golden Guinea Breweries Plc net assets was valued at N2.738 billion with total assets that closed the year at N4.579 billion against N1.84 billion in liabilities.

Beer market is trending with key players jostling for market share, using both price and quality as their key success factors in additional to stable distribution channels.

Recently, a grant of N3.6 billion was given to the management to get the company back to life. It was observed that the company fell

NOVEMBER 5 - 9, 2018

under the hammer of unfavourable foreign exchange deal in 2015 when swap rate soared.

The funding package was provided by the Nigerian Export Import Bank (NEXIM) with the Bank of Industry also pitching in with an Economic Revival Facility.

With installed capacity of about 48,000 bottles per hour.

But there is no significant evidence that the investor has injected funds into the operation of the company, yet as its products are yet to circulate to the market.

The brewer has no revenue stated on its audited statement submitted to NSE, in 2018.

Administrative expenses stood at N152.875 million in spite of no trading condition coming from N186.854 million in 2017.

Earnings per share of the company close at negative 16 kobo in 2018.

For Golden guinea to stay on the bourse, it has to define the need for being a public quoted company, once again.

Deap Capital Management & Trust Plc The name may not really ring a bell on the street but those that have placed their funds into the

The Company which operates in the capital market, mortgage banking, and oil and gas sectors has been experiencing flat revenue over the years. Its major products include DEAP Standard, DEAP Gold, DEAP Platinum and DEAP Classic. Its major services include fund management, portfolio management, capital market/financial advisory services and issuing house services.

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shares won’t forget it in a hurry.

For the company, NSE delisting has also been serial. Deap Capital Management & Trust Plc is a Nigeria-based non-performing fund management company.

The Company which operates in the capital market, mortgage banking, and oil and gas sectors has been experiencing flat revenue over the years. Its major products include DEAP Standard, DEAP Gold, DEAP Platinum and DEAP Classic. Its major services include fund management, portfolio management, capital market/financial advisory services and issuing house services.

The company was suspended last week for not filling results.

However, a deep look into operation of the capital management and trust Plc shows that there are underlie operational challenges. Just like others, the company has been striving to stay above the water as operating environment becomes tense.

The management has been grappling with non-performance as debt obligations expanded while profits leaked. Shareholders had asked the Board to restructured non-bank debt which was little less than N3 billion in 2015. At the end of extra ordinary general meeting, the shareholders had mandated the Board to negotiate with individual creditors and secure agreements for the conversion of non-bank debts to ordinary shares of company at a price to be determined by the directors and agreed with the creditors.

The non-bank debts of the company, which was incorporated in June 2002 and commenced business that same month, stood at N2.46 billion as of June 30, 2014, the statement said.

Deap capital Managetment and Trust Plc Shareholder’s funds stood at N2.13bn negative as at 31st DEcember, 2017.

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WESTAFRICA BUSINESSNEWS

SME ADVISORY

NOVEMBER 5 - 9, 2018

Leading your employees, project team with style W

hat distinguish executives that are performing is not quality of strategy alone. More often than not, it is their leadership quality that makes the difference. There is no business without human faces, running and implementing ideas, strategies. While strategies are designed at corporate level, some people are responsible to implement or execute it.

Corporate empathy, quality human relations key to business success. Fact is, executives that are succeeding have lowered down corporate wall to be able to relate with subordinates. Some companies are removing the tall barrier, like using the word “sir” in addressing each other. They say it is colonial mentality brought into corporate space and it is hindering communication.

Strangely enough, while many business executives, managers or business owners always strive to stay ahead of the curve, anticipating needs before they arise. Some are still laid back. But the need to continue keeping possible problems at bay, all the time is general. Managing employees-employers relationship is one of the burning issues you can’t shy away from. There goes a big question mark: how are you leading your team or staffers?

Have you heard that where two or more employees are gathered, there are some ‘attitudes’ around there that must be managed effectively to corporate advantage? Every day, employees discuss their managers. It is human nature; as a business manager, you must be awaken to this fact.

Side talks often come when employees are being directed by a bad boss that didn’t know he is bad, really.

Or, a leader who prefers to be out rightly unfriendly to his subordinates.

Such leadership approach is always counterproductive!

But employees are no saints too.

Business owners, managers must balance the equation from each side.

Employees want to be involved.

They don’t want to be passive and they want more. They want more of everything as long as it is going to add to them. To them, more work means more pay. They want to be recognise for contributions they make towards achieving business goals. They don’t want managers to write a letter to them in private, they prefer an announcement. It is attention-grabbing, that way.

Busy schedule. Managers don’t have that time all the time. Forgetting that corporate world is embracing democracy in general; and employees are noting changes at working places.

Rules are taking but more and more staffers want to discuss issues with their employers as it is affecting them.

Hanging on no time, deadlines and targeted widened relationship between many managers and their subordinate to the disadvantage of the business. Response, timely one is important for companies that will run in the future. The future is now. By design, business owners and corporate managers respond to issues differently.

So, this explains the reason why

many managers perform differently in similar condition with similar resources. Even, C-suites executives don’t produce similar results, either.

Design and implementation of key management functions differ along strategic focus. Things, issues, strategies, approaches appeal to managers differently.

That’s where understanding of human resources and employees relations becomes critical success factor - the area where managers must get thing right. Business that lower guards on its employees hardly survive in the long run.

You really think you know your staffers? As business owners, top managers; you are lucky if what your

members of staff (employees) say when you’re not around is the same thing they say to your face. It is not always so between Managers, business owners and their subordinates.

The fact is, employees from all cadre gossip about their corporate leads, positive or negative. It is human nature. But care must be taken to ensure side talks, normally corporate issues are not affecting business performance. No company enjoys margin erosion. But many are comfortably coping with employees’ agitations, rebellion and thinking they are winning the war.

Some chief executive officers often would say, ‘if you are dissatisfied with our packages, the rules of

Delegation always inspires, especially those class of employees that are naturally restless, incline to do more.

It is not money all the time, there are people that performance defines their happiness. That doesn’t mean that monetary incentives are not key but they have come to understand that value given, is value taken!

engagement and other variables that define our mutual contract, you may resign’. Many of them always use intimidation to cow their employees into a corner. To them, they can eat their cakes and have it. To them, they are winning a war against employees. No, you are not!

If you are leading your business like this; you are not wining any war. You are killing the company with style. Here is the fact, each dissatisfied employee erode value, reduce your business margin in any way they can. It is better to let go than to keep an enemy in your bed.

As an entrepreneur, the way you lead your team is crucial. In fact, to a greater extent, it determines the result to achieve, afterwards. This is where many business owners often goofed.

To them, employment agreement is a closed contract. That’s right, but then employees must be managed to achieve optimum productivity.

That, is an open contract.

Motivation is key. Delegation is important. Your leadership strategy leads the pace. Many business leaders lack corporate empathy. It is easy to see. Their businesses struggle to survive all the time. Rules are rules.

They are not in the class of innovative mindset that have discovered that rules are anti creativity. So, there is no creative indulgence at this floor, many managers often opine.

If presented with the same situation, it is more likely to see business owners’ act or react differently to a similar situation. Base on the assumed similar scenario, results achieved could differ greatly.

Don’t forget, similar situation, same resource level but different managers actions produce different results!

Treat them as human being first. Understand they have needs.

You don’t have to beat yourself

about meeting all their needs.

Many employees have (always) an unending needs, but meet the one you have agreed to be meeting just in time as you have agreed to do.

Delegate! Yes, people differ.

Your team may be motivated to do more just by reason of the fact that you always delegate assignment.

Don’t get it twisted. Delegation of authority never absolves managers from responsibility. No, it doesn’t but it actually allows managers to meet deadline or do more than initially plan. At the end, a properly executed delegated assignment provides synergy.

Delegation always inspires, especially those class of employees that are naturally restless, incline to do more. It is not money all the time, there are people that performance defines their happiness. That doesn’t mean that monetary incentives are not key but they have come to understand that value given, is value taken!

Unmotivated employees, or team don’t perform. The business, then won’t perform as expected.

So, it is lose-lose situation. Extreme specialisation could be boring. Some employees are naturally restless.

They want to do more, exploit and expect support from their managers. For managers, it is dicey.

There is always rules of engagement. In that case, you don’t have to close the doors to such employees face. It will birth dissention and it won’t look go on business results. Manage the situation with care. Give hope, support.

How do you do that? There is no rule. Being a listening managers often help situations not to get out of hands. Don’t be autocratic.

It is counterproductive to be.

Stock

Previous Close

Open

High

Low

Close

Absolute Change

% Change

Deals

Volume

Value

ACCESS

7.90

7.90

8.35

7.85

8.35

0.45

5.39

112

6,091,972

48,410,455.60

AFRIPRUD

3.58

3.58

3.80

3.77

3.77

0.19

5.04

58

1,181,811

4,474,393.39

AGLEVENT

0.36

0.36

0.36

0.00

2

45,989

15,176.37

AIICO

0.71

0.71

0.71

0.00

10

213,797

149,971.70

AIRSERVICE

6.60

6.60

6.60

0.00

5

3,285

21,025.75

BERGER

6.60

6.60

6.60

0.00

5

19,848

127,184.80

BETAGLAS

62.10

62.10

62.10

0.00

3

4,160

250,080.00

BOCGAS

4.21

4.21

4.21

0.00

1

500

1,895.00

CADBURY

9.00

9.00

9.00

0.00

20

84,189

788,032.10

CAP

25.75

25.75

25.75

0.00

4

8,230

228,934.50

CAVERTON

1.81

1.81

1.82

1.82

1.82

0.01

0.55

16

300,958

546,515.78

CCNN

22.50

22.50

20.25

20.25

20.25

-2.25

-11.11

26

215,670

4,443,885.55

CHAMPION

1.68

1.68

1.52

1.52

1.52

-0.16

-10.53

6

516,000

784,880.00

CILEASING

2.80

2.80

2.80

0.00

11

237,051

651,493.00

CONOIL

22.50

22.50

22.50

0.00

14

38,278

798,380.90

CUSTODIAN

5.00

5.00

5.00

5.00

5.00

0.00

8

72,390

363,824.40

CUTIX

2.03

2.03

1.83

1.83

1.83

-10.93

19

402,070

766,772.10

DAARCOMM

0.44

0.44

0.00

1

2,000

800.00

DANGCEM

203.00

203.00

205.00

203.00

204.90

1.90

0.93

74

4,647,323

951,800,164.30

DANGFLOUR

5.50

5.50

6.00

5.50

5.80

0.30

5.17

75

1,529,260

8,972,510.70

DANGSUGAR

12.70

12.70

13.90

12.90

13.00

0.30

2.31

54

1,305,230

17,090,051.75

DIAMONDBNK

1.31

1.31

1.30

1.20

1.20

-0.11

-9.17

75

10,246,615

12,519,264.79

ETERNA

5.45

5.45

5.45

0.00

8

43,590

222,485.30

ETI

16.00

16.00

16.00

16.00

16.00

0.00

25

2,329,096

37,259,066.60

FBNH

7.70

7.70

7.90

7.65

7.65

-0.05

-0.65

340

35,635,257

274,342,286.00

FCMB

1.55

1.55

1.58

1.52

1.53

-0.02

-1.31

137

108,640,824

165,724,097.40

FIDELITYBK

1.94

1.94

2.04

1.94

1.98

0.04

2.02

94

10,596,772

21,238,283.91

FIDSON

5.10

5.10

5.05

4.60

4.60

-0.50

-10.87

40

1,531,905

7,109,985.50

-0.20

0.44

52 WKS High

52 WKS Low

14

FINANCIAL STOCKS

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

May & Baker rights issue triggers issues Controversy

Nnamdi Okafor, MD, May & Baker Plc

T

he stock broking community have raised issues on the on going right pricing of May & Baker at N2.50 per one ordinary shares because the company’s share price trends below the offer price.

This was part of the issues raised by the capital market community when the company’s management team presented facts behind the issue at the Nigerian Stock Exchange (NSE) recently at the NSE’s event centre.

Nigeria’s pharmaceutical giant, May & Baker is currently floating 980,000,000 ordinary shares of 50 Kobo each at the offer price of N2.50 per share, on the basis of one new ordinary shares for every one ordinary shares held as at Tuesday, 4 September 2018.

The offer acceptance opened on Monday, October 22, 2018 and scheduled to close on Wednesday, November 28, 2018.

David Imafidon Adonri, lauded the company for adopting the option of the capital market to raise fresh funds against the high cost expended on debt servicing annually, but argued on the offer pricing Imafidon said “I don’t know if you have gotten the pricing right. That will be a disincentive to investors” May & Baker shares, Westafrica BusinessNews recalls, closed trading on October 26, 2018 at N2.35 per share and on November2 closed at N2.40, while the rights offer price remains at N2.50 per share Andonri further sounded that the May & Baker Nigeria ongoing right issue expected to be offered to investors at a discount, is being offered at

a premium, a development, he stressed needed more explanations for investors to grasp.

Among other issue raise by the stakeholders at the presentation include, challenges of cross border operations and the readiness of the federal government to pledge its part of the partnership in the long standing Biovacin project jointly owned by the company and the federal government.

Nona Awoh of Valencia urged the firm to sustain commitment to reducing its debt portfolio or ending the era of high debt servicing charges which continues to eat into the company’s performance year on year.

Meanwhile, management of May & Baker Nigeria Plc assured shareholders of the company that though the firm would start using proceeds realised from its ongoing rights issue in 2019, dividend would be paid for the newly acquired shares for 2018 financial year.

The company’s Managing Director, Nnamdi Okafor reassured investors that the company is committed to sustain the organic growth which has been on for the past five years and would ensure enhance-ment of profitability to reward investors adequately.

Urging shareholders to take their rights, Okafor said that May & Baker is thriving on a new

About N2.5 billion fresh capital expected to be raise through the rights issue would enable the company strengthen its financial position , in order to among other things, increase capital contribution in a subsidiary, provide working capital support in a timely manner and capture potential attractive growth opportunities.

vision “to be a leading health care brand in Sub-Saharan Africa” and currently working towards making inroad into other African countries.

Okafor said “the new vision is also “to launch M&B on the path of sustained growth in profitability and shareholders value” He said that the rights price of N2.50 was a product of the board and series of meetings. “The board earlier approved N2.75 and the price was sliding in the market.

We had a review and adopted N2.50 and everybody agreed that N2.50 was right pricing. The benefit of this rights doesn’t come to the company this year, but you get dividend on it this year” He said that the about N2.5 billion fresh capital expected to be raise through the rights issue would enable the company strengthen its financial position , in order to among other things, increase capital contribution in a subsidiary, provide working capital support in a timely manner and capture potential attractive growth opportunities.

According to him, the new funds would enable the company reduce its leveraging by about N450million, at least to reduce its N900 million debt position to about N550 million.

On why the May & Baker is diversifying to other African countries, when some banks are closing their cross border operations , even as it has disposed its none pharmaceutical businesses, Okafor said the company is different from the banks in the country that are currently selling off their assets in some African countries.

“We are not the banks. We have

some opportunities that we see, we are carefully looking t the risks”’-He added that the opportunities in the pharmaceutical sector across the country looking for WHO certified firms to take advantage of , including in Nigeria, which is why the company is committed to securing the WHO prequalification for vaccines in order to adequately take advantage of funds and opportunities beckoning on WHO certified companies to key into.

“There is no local pharmaceutical company that is in all regions across Africa, there are opportunities, it is not going the way some of the banks operations in the region, go” Earlier in an address, CEO Nigerian Stock Exchange (NSE), Oscar Onyema, represented by Tinuade Awe,Executive Director, Regulation at The NSE, lauded May & Baker for remaining committed in meet-ing its post listing commitments and high level of corporate governance.

He commended the company for opting to raise long terms funds through the stock market, against the high rates charged by banks, saying that the funds would be effectively deployed to enhance the company’s fortunes, boost profitability and increase returns to shareholders.

Onyma urged other listed companies to emulate May & Baker by releasing information on their com-panies as at when due to the investor’s in order to empower existing shareholders and prospective investors to make right investment decisions.

FINANCIAL STOCKS

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

15

Development Bank of Nigeria Joins SME Finance Forum T he Development Bank of Nigeria (DBN) has become a member of the SME Finance Forum, a global

membership network that brings together financial institutions, technology companies, and development finance institutions

Buhari frowns at delay in budgets passage

P

resident Muhammadu Buhari has said that delays in passage of budgets by the National Assembly, sometimes lasting seven months, affects completion of projects across the country.

The President stated this when he received a delegation of Eminent and Respected citizens of Niger State led by retired Lt. Gen. Garba Duba at the Presidential Villa, Abuja.

He called for effort to speed up the process for the benefit of the economy.

Buhari said the government’s achievements in ensuring better roads, rails, power and repositioning of the airports was in spite of the delays.

The president prayed for more understanding and commitment to infrastructure development.

He said: “If the National Assembly takes seven months to pass a budget, then we should be commended for the much that we have achieved, and can still achieve.

“I personally feel very disappointed. I spoke with the leaders of the National Assembly on the issue that seven months is a long time to work on a budget.’’

He added that ongoing efforts to improve road, and rail networks across the country would be increased as infrastructure development remains paramount for improving the livelihood of Nigerians.

Buhari told the

delegation, which included Gov. Abubakar Bello, military and traditional leaders, that his administration would pay more attention to the stretch of 2,150km federal roads in the state.

On security, he said, “we cannot manage our communities and societies without security.

A lot of resources is being diverted to provide security instead of going into infrastructure development.’’

The president re-assured the delegation that his administration would stay focused on securing lives and property, fighting corruption and stimulating the economy for more progress.

He said the Minister of Agriculture and the Governor of the Central Bank of Nigeria had been directed to increase monetary supports through loans to farmers in the next farming season.

He also enjoined the two officials to ensure that “farmers are not overwhelmed with the traditional demand for collaterals.’’

Buhari stated that traditional institutions and families could serve as guarantors as the nation “cannot continue with that colonial style of asking for collaterals that people don’t have.’’

The president commended the Chinese government for accepting to finance 85 per cent of Nigeria’s infrastructure development need.

to share knowledge, spur innovation, and promote the growth of SMEs. Established by the G20 Global Partnership for Financial Inclusion (GPFI) in 2012, the SME Finance Fo-rum was set up as a knowledge center for data, research and best practice in promoting SME fi-nance.

As an implementing partner for the GPFI, the International Finance Corporation (IFC) was tasked with managing the initiative.

Accepting DBN into the Forum, Chief Executive Officer, SME Finance Forum, Matthew Gamser,

T

He said that the workshop would provide insights on what entrepreneurs need to attract funding for their businesses.

“It will also provide an opportunity for entrepreneurs to interact with experienced angel investors and credit specialists.

“The workshop is also aimed at enlightening startups on what investors look out for in businesses before investing,’’ Olukoya said.

He also noted that the bank of Industry was partnering with the firm to see if there were startups they could give loans to, “provided they meet the required standard’’.

a plethora of networking and developmental oppor tunities.”

DBN was conceived by the Federal Government of Nigeria (FGN) in collaboration with global develop-ment partners to address the major financing challenges facing Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria.

The bank is a wholesale Development Finance Institution (DFI) providing sustainable financing through eligible Participating Financial Institutions (PFIs), who in turn, lend to end-borrowers - Micro, Small and Medium Enterprises (MSMEs) for the development of that segment

Diamond Bank Enhances Retail Business in Q3 2018

BY BONNY AMADI iamond Bank plc, has released its Q3 unaudited financial report for the period ended September 30, 2018 to the management and stockbrokers of the Nigerian Stock Exchange (NSE), highlighting its strong focus on the Nigerian market, especially the retail sector through its technology led retail strat-egy to drive growth and position SMEs for competitiveness.

The report showed that the Bank’s retail strategy is quite rewarding as the bank recorded a landmark figure in the value of funds disbursement of over N1 billion to small business owners under the cash flowbased SME lending scheme in partnership with the Women’s World Banking (WWB), and this has earned the leading financial institution ranked among the first five SME customer bank in Nigeria in the KPMG customer

D

LAN, Bank of Industry to support Start-ups he Director of Lagos Angel Network Ltd. (LAN), Segun Olukoya has announced that the company was partnering with the Bank of Industry (BOI) to create programmes that would provide finance, support and mentoring for start-ups.

Olukoya made this known during a workshop organised by Lagos Angel Network to educate start-ups on investment opportunities.

The theme of the workshop was: “Raising Capital for your Start-up’’.

Olukoya said that knowledge, learning, mentoring and finance were the key things needed for businesses to be successful.

said, “We are proud to have the Development Bank of Nigeria join our network of 140 members who work to expand access to finance for small and medium businesses. It has been discovered that 200 million businesses worldwide need financing to invest, grow and create new jobs.”

“Founded in 2014, DBN focuses on alleviating financing constraints faced

by MSMEs and small corpora-tions in Nigeria through the provision of financing and partial credit guarantees to eligible financial in-termediaries, on a market-conforming

and fully financially sustainable basis.

The bank supports inclusive growth and provides wholesale funding to fill identified enterprise financ-ing gaps in the MSME sector. In 2017, the bank disbursed a total of N5bn to microfinance institutions for on-lending to over 20,000 MSMEs across the country”, Gamser noted.

Expressing delight on the announcement of DBN’s reception into the forum, the Managing Director/CEO, Development Bank of Nigeria, Mr. Tony Okpanachi, said, “We are excited to expand our knowledge of SME financing and believe participation in the SME Finance Forum member working groups will afford us with

Also speaking, Sunday Afolami, Regional Manager, Lagos Region, Bank of Industry, said that before giving funds to start-ups they have to establish whether they need it or not.

He said that would help BOI to articulate what the funds would be used for and how the start-up would pay back both principal and interest and still make profit.

Afolami said that BOI gave loans to micro, small, medium and large enterprises.

“We give loans to new and existing companies seeking expansion or diversification.

“Also borrowers, whose management capability, financial situation,

Uzoma Dozie

service survey 2018.

Despite the challenging trading environment, the bank’s Contribution of noninterest income to profit increased by 10.81% from N24.66 billion (Q3 2017) to N27.32 billion (Q3 2018) while Impairment charges down 24.21% from N33.21 billion (Q3 2017) to N25.17 billion (Q3 2018). Interest expense up 18.32% to N41.26 billion year-on-year, but it has continued to decline in-line with guidance, falling by 15.36% from N14.83 billion (Q1 2018) to N12.56 billion (Q3 2018) and 2.89% year-on-year increase in operating ex-pense to N66.20 billion (Q3 2018). However, cost containment measures are underway with the digitization process contributing to quarter-on-quarter gains with OPEX declining 0.36% from N22.07 billion (Q2 2018) to N22.15 billion (Q3 2018).

Customer deposit dropped by 8.0% year-on year to N1,107 billion due to re-pricing and non-rollover of high priced maturing

deposits, and migration to government securities while Liquidity position remains strong as current and savings account balances increased from 77.4% (FY2017) to 78.08% of total deposits in September 2018.

The bank’s retail and digital strategy has continued the expansion of financial inclusion programme with total number of banking agents rising to 70,052 (Q3 2018) across Diamond Y’ello, BETA and CLOSA product lines. Apart from the disbursed N1 billion to Small and Medium Enterprises (SMEs), in partner-ship with Women’s World Banking as of September 30, 2018, the bank also Introduced SMEzone to the market – an informationsharing platform, aimed at positioning entrepreneurs for competitiveness while the sale of its UK subsidiary expected to be completed by year-end.

Commenting on the business, Chief Executive Officer, Uzoma Dozie said: “The global economy is currently witnessing a shift in trade

relations alongside continued interest rate adjustments.

This has led to greater volatility across markets and increasingly fragile economies.

Nigeria’s economy has not been immune to certain headwinds, so that while the economy recorded quarters of expansion, the rate of growth has weakened. However, against this backdrop, our digital-led retail strategy has remained robust. Through this strategy we have been able to continue scaling up by reaching a wide pool of customers both cost effectively and efficiently.

As a result of our network and digital infrastructure, during Q3 we reached the N1 billion mark in total loans disbursed to Small and Medium Enterprises (SMEs). Alongside this, we introduced the SMEzone, a platform targeted at keeping entrepreneurs well positioned for competitiveness through community and continuous learning.

Dozie said that the bank is investing more in businesses in the middle market because entrepreneurs are key driving force for economic growth, adding that the focus is in line with and supportive of Diamond bank’s recovery and return to profitability.

“As we move into the final quarter of the year, we expect headwinds to continue driven by emerging situations in developed economies as well as our domestic political realities. Despite this, our investors can expect a further decline in NonPerforming Loans (NPLs), a further increase in our digital footprint and completion of the sale of the UK subsidiary.

Through these actions we remain optimistic about the medium to long term outlook of Diamond Bank and its return to strong profitability.”

16

LAGOS TRADEFAIR

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

Nigerians scramble for Ghanaian “Garri” at Lagos Trade Fair

S

ome Nigerians were seen on queue scrambling for “Garri” that was Made in Ghana at the ongoing Lagos International Trade Fair.

The product, which was neatly packaged in 125 grammes sachet and labeled “Crispy Gari Mix’’, was on display at the Ghana stand at the Fair.

The product was mixed with groundnut and sugar and was being sold for N170 per 125g at the Ghana stand.

Many Nigerians were seen waiting patiently for their turns to buy and taste the Garri packed in attractive blue and white sachets.

The Commodity Manager, Ernest Boateng, said he was highly impressed

with the sale within two days of showcasing the product in Nigeria.

“I am surprised at the high patronage between yesterday and today, amongst other product we brought for sale, this one sells more,’’ he said.

Oshodi Tunde, one of the buyers who was seen eating the product directly from

the pack, advised Nigerians to copy the innovative idea. “ Nigerians should make use of this idea by packaging Garri with sugar and groundnut for sale too.

“We should stop looking for white collar jobs and try to do something meaningful with our country’s resources,’’ he said.

Lagos Int’l Trade Fair: Foreign exhibitors explore Nigeria’s business potential

S

ome international exhibitors at the ongoing 2018 Lagos International Trade Fair were optimistic of exploring more patronage during the 10-day annual exhibition.

The exhibitors, who spoke at the fair in Lagos on Saturday, said that they envisaged hitchfree trading sessions just like the previous years.

The annual trade fair, which is in its 32nd year, is organised by the Lagos Chamber of Commerce and Industry (LCCI) and reputed to be the largest international trade fair in Nigeria.

About 200 foreign exhibitors from 16 countries are participating at this year’s fair, which has an average of 2000 exhibitors and over 500,000 expected visitors.

The countries represented at the fair include: China, Japan, India, Indonesia, Ghana, Egypt, Jordan, Pakistan, Turkey, Cameroun, Kenya and Singapore.

Other countries are: Jamaica, Republic of Benin, South Africa and the European Union.

Tatyana Buchak, a Ukrainian Manufacturer of “My Coffee’’, who had been in the country for close to 10 years, said she looked forward to connecting with more businessinclined persons for the furtherance of her business.

Buchak said Nigeria was a good place for business to thrive, considering its population of about 180 million people.

“I am looking forward to meeting many businessinclined persons from different countries so as to expand my business and I know this is the best avenue for that,’’ she said.

Also, Chiharu Yamamura, Deputy Trade Commissioner, Japan External Trade Organisation (JETRO), said he expected women to embrace the special sales promotion on Japanese health and beauty products exhibited at the fair.

Yamamura said that Nigerian women were known to be keen about their

beauty and family’s health.

“Hence, I hope that those products will solve most problems confronting them in their health and beauty regimen’’.

“We have been coming to the fair since 2014 and this is the first time we will have promotional sales on our beauty and health products.

“There are a good number of Japanese companies present here, which are selling their products at subsidised rates. The products include hair extensions, shampoo, cosmetics, hair colouration and a lot more.

“I know that Nigerian women are very busy but have very keen interest in maintaining their beauty and sound health, so we are out for such women,’’ the Japanese official said.

Another exhibitor from China, Miao Shujin, said he had been an ardent exhibitor for years and hoped for a secure and neat environment for uninterrupted business transactions.

Shujin said that the Lagos international trade fair remained the largest fair in West Africa where businesses are created and improved on.

“The previous fairs have been very impactful.

I look forward to huge sales period in a tidy and secure environment,’’ he said.

Veana NednyhaicoUcer from Ukraine Chambers of Commerce said she was exhibiting at the fair for the first time.

Nednyhaico-Ucer said that she had come for a feasibility study of the country in order to facilitate future business transactions with Nigerians.

According to her, Nigeria happens to be the biggest country in West Africa with people who had huge business acumen.

She said that she hoped to give a report of proceedings at the fair to Ukrainian Government.

“I have only come to observe the Nigerian business terrain for future business transactions with Nigerians and some other countries.

“This is a place we can share business ideas.

This is a place we can

market Ukrainian products.

“We manufacture a lot of goods. We have so much electrical products, raw materials for further production and more; what we need is a market for them,’’ she said.

Nednyhaico-Ucer noted that many Nigerians studies in Ukraine and in 2018, no fewer than 4,000 Nigerians graduated from various Ukrainian tertiary institutions.

She said that this was an indication that the two

countries could be compatible doing business together.

A Ghanaian Exhibitor, Lisa Efua, said her expectations are primarily to learn new business strategies which would be unraveled during the seminar sessions.

“I want to learn more business strategies to move my business forward,’’ Efua said.

The 2018 Lagos International Trade Fair commenced on Nov. 2 and would come to an end on Nov. 11.

Lagos Trade Fair: Only 1 functional bank ATM on Day 2

O

nly one Automated Teller Machine (ATM) is functioning at the ongoing 2018 Lagos International Trade Fair, reports the News Agency of Nigeria (NAN).

Besides the functioning Fidelity Bank ATM, a First Bank mobile ATM van at the fair ground was yet to commence operation.

There was a long queue of bank customers at the only functioning ATM as customers complained about the inadequate number of financial institutions on ground.

Other bank and insurance companies that have erected stands at the fair were

Nigerian Export-Import Bank (NEXIM), LAPO Microfinance Bank, Nigeria Deposit Insurance Corporation, Leadway Insurance and Staco Insurance.

Gabriel Idahosa, Chairman, Trade Promotion Board of the Lagos Chamber of Commerce and Industry (LCCI), said that more banks would commence operation by Monday to facilitate seamless business activities at the fair.

He said that some of the banks were conducting installation of their computer systems and ATMs to meet the needs of exhibitors and visitors during the 10-day of the event.

WESTAFRICA BUSINESSNEWS

LAGOS TRADEFAIR

NOVEMBER 5 - 9, 2018

17

Trade Fair: Buhari calls for deeper Public-Private collaboration

President Buhari

P

resident Muhammadu Buhari has called for deeper collaboration between the public and private sectors toward achieving more vibrant economic growth.

Buhari made the call on Friday in Lagos at the opening of Lagos International Trade Fair organised by the Lagos Chamber of Commerce and Industry (LCCI).

Buhari, represented by VicePresident Yemi Osinbajo, said that vibrant engagement and collaboration between the two sectors was vital to improve the business environment.

According to him, feed backs and dialogues with the private sector will enable the government know if its policies, programmes and reforms were achieving the desired results.

He said that his administration had embarked on various reforms to create enabling environment and to address the challenges that stifled the growth of micro, small and medium enterprises in the country.

The President said that government spent N2.7 trillion two budget cycles on capital and infrastructure development across

the country, inspite earning 60 per cent less in the past five years.

He said that the money was spent on roads, rails, power and other similar projects which cut across different regions of the country toward making the business climate easier and improve the welfare of the citizens.

According to him, N15. 2 billion interest-free loan ranging from N50, 000 to N350, 000 has been disbursed to over 400, 000 market traders, artisans across the 36 states of the federation.

“We have been able to open bank accounts for about 349,

000 traders under Government Enterprise and Empowerment Programme (GEEP) for the tradermoni scheme.

“We have been able to bring in petty traders from the informal sector to the formal economyso that we can access them with financial literacy and even insurance,” he said.

Buhari said that 56 per cent of the loans was disbursed to women to expand their opportunities in business.

He said that to energise the economy, goverywas installing power, especially solar power in

markets and commercial clusters.

“We have powered Ariara Market, Aba, Sabongari Market, Kano, Sura Market in Lagos, Isinkan market in Ondo, Bola Ige Market in Ibadan, Oyo State and Edaiken Market in Benin, Edo State,” he said.

He said that the solar power initiatives would reduce fuel expenses, enhance produce storage and boost productivity among MSMEs. Buhari said that the focus of the administration was to ensure that ministeries, departments and agencies understood their role as facilitators and not an obstacle to business.

Mr Babatunde Ruwase, the President, Lagos Chamber of Commerce and Industry (LCCI), said the chamber was committed to the vision of the current administration in respect of economic diversification and self-reliance.

He said that the economic and investment policies must be right and investment friendly to attract more private capital into the economy.

Chief (Mrs) Alaba Lawson, the National President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), urge government to expedite actions on infrastructure across the country to improve economic activities.

Earlier, Governor Akinwunmi Ambode of Lagos State, had said the state would continue to partner with the private sector to create an enabling environment for businesses to thrive.

Ambode, represented by Mrs Olayinka Oladunjoye, the State Commissioner for Commerce, Industry and Cooperatives, said the state would continue to promote policies and initiatives that would attract more investment to the state.

Dancers, disc jockeys bemoan music ban at Lagos Trade Fair

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ancers and disc jockeys on Sunday decried the ban on the use of public address system and music gadgets at this year’s Lagos International Trade Fair.

They that the music ban at the ongoing Fair had affected their livelihoods and rendered many youths idle.

Miss Yetunde Gbadebo, an undergraduate at the Lagos State Polytechnic, said that she used the mon-ey realised from her dancing engagements at

the Fair for her upkeep and to support her education.

“Yearly, I look forward to the commencement of Lagos Trade Fair because for the past three years, various exhibitors engaged my service as a dancer and paid me between N2,000 to N3000 daily.

“But with this no music directive, there is no need for our service, my friend and I are just roaming around the fairground with the hope that the situation will change for better,” she said.

Mr Chidi Nelson, a disc jockey, said that the fair was a once in a year opportunity for him to showcase his talent while also making money.

“I feel so disappointed with this ban on music gadgets; I earn between N5000 to N10,000 daily at past fairs, depending on the company that I work with.

“Music is life; it makes the fair exciting. Some visitors are attracted to an exhibitor’s stand because of music and dancing activities, and from there they purchase the

goods displayed, but now the fair seems boring,” he said.

However, Mr John Malcolm, a European Union exhibitor, said that the ban on music was commendable, noting that it was an improvement upon the noise experienced during past fairs.

Gabriel Idahosa, Chairman, Lagos Chamber of Commerce and Industry (LCCI), said that the ban on the use of public address system and music gadgets at the fair ground was to control noise pollution.

He said that the chamber had educated exhibitors on how noise pollution was injurious to health and have enlightened them on other marketing alternatives.

Idahosa said that a central public address system had been positioned at strategic points at the fair to disseminate information and play music.

The annual fair, organised

by LCCI, began on Nov. 2 and will end on Nov. 11.

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INVESTMENTS & BANKS

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

Access Bank, Transfast Partners on Instant Money Transfer

BY NIYI JACOBS

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ransfast, provider of cross-border payments and remittance solutions, has partnered with Access Bank to facilitate inflow of remittance to bank accounts & delivery in the form of cash pay-outs from any of Access Bank’s outlets in Nigeria.

The two entities signed a global agreement to offer remittance services to expatriates sending money to their loved ones across select markets in Africa.

The new partnership further expands Transfast’s presence in Nigeria, allowing its customers in over 125+ countries to send money to millions of Access Bank accounts as well as non-account holders.

Access Bank is a commercial bank in Nigeria, with an extensive network of millions of customer accounts and over 318 branches. The new partnership with Transfast will increase convenience and ease of banking for Access Bank’s customers in Nigeria as well as support the country’s efforts to achieve financial inclusion.

The partnership will ultimately connect over 15 million Access Bank customers in Nigeria, Democratic Republic of the Congo, Ghana, Rwanda, The Gambia, Sierra Leone and Zambia to Transfast’s best in class online money transfer experience.

With a diaspora of 15 million people living in countries including the United States, the United

Kingdom, Australia and Canada, remittances play a significant role in Nigeria’s economy. The World Bank estimates that in 2017 alone Nigeria received $22 billion in remittances, making it the largest recipient in Africa.

This partnership is significant for Transfast, stated its Chief Executive Officer (CEO). “The relationship with Access Bank will allow

Herbert Wigwe, MD, Access Bank

us not only to extend our network footprint, but also build on the trust that Access Bank enjoys amongst its customers,” said Mr. Samish Kumar, CEO - Transfast. ‘’Access Bank’s state of the art technology makes it an effective delivery platform for Transfast services whose focus is in providing a seamless experience to its customers both on the send side & at the point of collection’’ Commenting on the partnership, Victor Etuokwu, Executive Director, Access Bank Plc, said, “It is with great pleasure that Access Bank Plc is partnering with Transfast a reputable global payment network to meet the needs of our customers who require a sound and reliable international payment platform. As a top player in the remittance industry in Nigeria, our wide branch network and large customer base will be invaluable to this partnership and we are confident that this relationship will be mutually beneficial to both parties.

This alliance also supports the Bank’s aspiration of being Africa’s gateway to the world.”

Nigeria-China Currency Swap; Diamond Bank Enlightens Traders

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iamond Bank has recently enlightened importers on ways of taking advantage of the signed federal government currency swap deal with the Chinese government.

The bank which held a business seminar for importers and other smallscale business owners in the commercial city Onitsha, on ways of improving their businesses said it is geared towards helping business owners grow their businesses.

An investment banker, Mr Henry Akumuo who took participants on the topic; taking advantage of Nigeria, China bilateral trade deal said using the bank, importers can access Yuan at a very low rate that can boost their business profits.

He said some of the ways the importers can attract good rate in converting the Naira to Yuan is by ensuring that such conversion was not done in dollars, but from Naira to Yuan.

He also called on

Uzoma Dozie

importers to always ensure that their goods leave China straight to Nigeria, instead of importing using other neighbouring countries, as those were some of the criteria that would enhance their chances of accessing Yuan from the Central Bank of Nigeria easily.

“This seminar is meant to add value to your business.

Our major aim as your bank is to teach you ways you can grow your businesses, because if you grow, we will get better patronage.

“If you can follow the steps we have marshalled out here, you will be surprised the exchange rate you can get, and this can help your business, and also help you to maximize profit.”

The bank also taught the importers way of reducing the tax burden they bear without any form of illegality.

Mr Taiwo Oyedele of Price Waterhouse Cooper(PWC) told participants, “If you are not very careful with the way you handle your taxes,

you might make losses.

“Because of the way the tax system works in Nigeria, some of the tax agent are dubious, but if you know your right, you can also know what to pay as taxes, without waiting for them to bring you very high tax.”

He told the businessmen that they also have the right not to pay tax if they didn’t make profit for the year, or suffered bad debt or other major losses, as their taxes could be deferred to subsequent years.

Cellulant Listed on KPMG’s 2018 Fintech100 Cellulant, a digital payments provider has been named among the Top 50 emerging Fintech companies in the world in this year’s KPMG FinTech100 report.

Cellulant is among the only three African companies representing Africa from Kenya, Nigeria and South Africa to be included in the list of leading global Fintech innovators.

Speaking on this, the Co-CEO, Cellulant, Bolaji Akinboro stated that “Being listed as one of the only 3 African new and exciting companies that is disrupting the financial services industry globally is a vindication of our vision to become the leading financial services and payments brand in Africa. Our commitment is to continue scaling a payments infrastructure that can transform two thirds of Africans who do not have access to a bank account.

We believe that building a connected payments infrastructure is the foundation of solving real challenges and accelerating Africa’s growth and development.”

The 2018 KPMG Fintech100 report highlights truly innovative companies creating products and services at the nexus of technology and financial services. Cellulant is among this year’s list of ‘Emerging 50’ firms – exciting new companies that are at the forefront of innovative technologies and practices and are often pursuing new business models. The annual report now in its fifth edition has featured companies from 36 countries

divided into two categories; The ‘Top 50’ - established Fintech firms around the globe, ranked based on innovation, capital raising activity, size and country.

Also, Co-founder of Cellulant, Ken Njoroge said that Cellulant is connecting a continent. ‘‘In most of subSaharan Africa, nearly 90% of all payments and transactions remain cash based yet the rate of mobile penetration in Africa is currently at 43%we are innovating around digital payments to change this status quo. Diversity has shown itself to be a powerful driver of innovation; we have seen an explosion of innovation over the past five years, across geographies and sectors. We attribute much of this innovation to the diversity of experiences and the inherent creativity of the people working in many of these companies.”

Cellulant was selected for operating a one-stop payments ecosystem in Africa; connecting businesses and governments to increasingly mobile consumers and for being the only African company to land the largest investment in the Fintech arena. Cellulant now operates in 11 countries, with roughly 12% of Africa’s mobile consumers now able to make payments using their services and products.

Cellulant is now building Agrikore- a block chain based smart-contracting, payments marketplace that ensures every stakeholder in the agriculture value chain can do business in a trusted and transparent environment.

Stanbic IBTC Bank gets 4-star quality rating

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tanbic IBTC Bank PLC, a member of Stanbic IBTC Holdings Plc, has received a 4-star rating in the first ever Lafferty Banking 500 Global Benchmarking Study.

Published by the Lafferty Group which provides research and intelligence to the banking industry across the world, the Lafferty Banking 500 study is a survey of 500 banks worldwide, expanded from 100 surveyed in 2016 and 2017, in which banks are given star-ratings out of five with institutions from 72 markets across all global regions ranging from large global banks to small regional institutions graded.

Stanbic IBTC Bank, which was awarded four (4) stars from a maximum (5) five, is one out of 160 banks to achieve 4 or 5-star ratings with only eight banks out of 500 achieving the highest score of five stars.

The group uses a combination of financial and non-financial disclosures in banking groups’ latest annual

Damola Sogunle

reports to determine the quality of the organisations and their respective business models. The banks are assessed across 19 metrics, which include things like loans to deposits ratios, profits and assets, as well as other indicators like strategy, culture and end leadership. A star rating is applied as part of the benchmarking of banks, with five stars for the best performers, and one star at the other extreme. Roughly onethird of the banks in the study achieved four-star quality ratings, while two-thirds were

rated three-star or lower.

“This recognition and rating affirms Stanbic IBTC’s commitment to providing peerless services and also signposts the fact that we’re heading in the right direction in our mission to become Nigeria’s leading end-to-end financial solutions provider.

Our ongoing digitization, innovative initiatives, c u s t o m e r- c e n t r i c i t y, aggressive universal financial services organisation drive, consistency in delivering relevant solutions to our clients and value to our

other stakeholders will be buoyed by this award,” Executive Director, Personal and Business Banking, Stanbic IBTC Bank, Babatunde Macaulay, said.

Macaulay expressed the company’s delight for being recognized by Lafferty Group amongst the best banks in the world. He said the award further demonstrates Stanbic IBTC’s strength and desire to consistently provide bestin-class financial services solutions across all market segments by leveraging on the expertise and rich heritage of the Standard Bank Group, to which Stanbic IBTC Holdings belongs.

He stated further that the high rating is testament of Stanbic IBTC Bank’s overall quality and stability and demonstrates the bank’s capacity to consistently deliver tailored solutions that showcase the bank’s expertise and understanding of the dynamics of the retail banking sector.

INVESTMENTS & BANKS

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

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SIBTC Holdings grows Q3 PAT to N59.76 billion

BY BONNY AMADI

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tanbic IBTC Holdings Plc , Nigeria’s number one rated financial conglomerate has once again tickled investors’ appetite for returns on investment with its promising nine months recently released to the investing public.

This was coming as Stanbic IBTC Bank has secured a four star rating, and emerged Nigeria’s number one bank, a development that has set the financial institution as toast of many investors, as its shares soar on the demand side.

Stanbic IBTC Holdings, a member of Standard Bank Group, nine months result for the period ended 30 September 2018, recently released by the Nigerian Stock Exchange (NSE), recently, reflects growth in key performance indices, as profit after tax (PAT) buoyed to N59.76 billion, reflecting 59 per cent growth compared to N45.65 billion recorded in the corresponding period in 2017.

The results further show that Profit before tax (PBT) closed the accounting period at N70.38 billion, showing growth by 54 per cent from N45.65 billion posted September 2017, while gross earnings peaked at N168.80 billion, indicating a boost by 9 per cent from the N154.22 billion in same period of 2017.

According to the Stanbic IBTC Holdings nine months 2018 result, Total income rose to N138.42 billion, an increase of 9 per cent from N127.23 billion recorded in the same period of 2017. Noninterest revenue recorded 24 per cent growth to N79.97 billion, from N64.28 billion in September 2017.

The result revealed that cost to income ratio remained healthy at 52.1 per cent, a slight increase from 48.1 per cent in September 2017.

The holding company’s Return on average equity (annualised) closed the nine months period at 39.0 per cent, while Return on average assets (annualised) closed at 5.5 per cent.

However, the bank’s net interest income declined by 7 per cent to N58.44 billion, compared to N62.95 billion in September 2017.

Chief Executive Officer, Stanbic IBTC Holdings Plc, Yinka Sanni, Speaking on the Group’s performance, said that the group’s business has sustained an upward trajectory and in the third quarter of 2018 even as financial sector challenges continue to deepen.

He pointed that such industrywide headwinds, bearish capital market supported by emerging market sell-off and attendant repatriation of foreign capital could easily be identified.

“Our performance shows steady growth in our balance sheet position, sustained improvement in revenue from fees and commissions and trading lines, though at a slower pace against a backdrop of reduced financial market volumes / trades and reduction in fee income rate particularly for our Wealth business due to the implementation of the multi-fund structure.

Nonetheless, we have seen significant improvement in our risk asset portfolio with gross loans and advances up by 14% year-to-date while non-performing loans (“NPL”) portfolio decreased by 39%, thereby

improving our NPL ratio to 4.7% from 8.6% in December 2017.

Sanni explained that decrease in non-performing loans was as a result of declassification of some loans following positive outcome on recovery and rehabilitation efforts, coupled with strategic decision to write-off some delinquent loans.

He said “The 2 per cent decrease in total customer deposits was due to the competitive yield environment and continued drive to reduce cost of funds which resulted in a 25 per cent decrease in expensive term deposits”.

The Group’s CEO reassured investors that Stanbic IBTC Holdings is focused on delivering end-to-end financial solutions to customers through enhanced digital platforms as significant investment is being made to achieve this stride.

The result of investments in digital

platform has continued to manifest as volume of transactions carried out on the bank’s digital platform continues to increase as robust transactional volumes are being recorded from the various platforms.

Giving insight on drop in interest income, Sanni said “The drop in our net interest income is due to lower yield on government securities compared to the same period in 2017 but the sustained growth in loans and advances will douse the impact on net interest income line in the near term. We remain on track to achieve our guidance by the end of the year. Our focus for the rest of the year is to maintain the momentum in improving the quality of the asset book and to further grow our non-interest revenue line,” In the same trajectory of success, Meanwhile, Stanbic IBTC Bank Plc has received a 4-star rating

Stanbic IBTC Bank, which was awarded four (4) stars from a maximum (5) five, is one out of 160 banks to achieve 4 or 5-star ratings with only eight banks out of 500 achieving the highest score of five stars.

in the first ever Lafferty Banking 500 Global Benchmarking Study.

The rating which was in sync with the bank’s remarkable performance year on year and its latest nine months 2018 result, corroborates the unsullied quality of service it provides to its diversified clients, in the Nigerian market and the sub region.

The Lafferty Banking 500 study is a survey of 500 banks worldwide, expanded from 100 surveyed in 2016 and 2017, in which banks are given star-ratings out of five with institutions from 72 markets across all global regions ranging from large global banks to small regional institutions graded.

The Lafferty Banking 500 Global Benchmarking Study Published by the Lafferty Group, provides research and intelligence to the banking industry across the world, Stanbic IBTC Bank, which was awarded four (4) stars from a maximum (5) five, is one out of 160 banks to achieve 4 or 5-star ratings with only eight banks out of 500 achieving the highest score of five stars.

Westafrica BusinessNews gathered that, the group uses a combination of financial and non-financial disclosures in banking groups’ latest annual reports to determine the quality of the organisations and their respective business models.

The banks are assessed across 19 metrics, which include things like loans to deposits ratios, profits and assets, as well as other indicators like strategy, culture and end leadership. A star rating is applied as part of the benchmarking of banks, with five stars for the best performers, and one star at the other extreme. Roughly one-third of the banks in the study achieved four-star quality ratings, while twothirds were rated three-star or lower.

Executive Director, Personal and Business Banking, Stanbic IBTC Bank, Babatunde Macaulay,

said, “This recognition and rating affirms Stanbic IBTC’s commitment to providing peerless services and also signposts the fact that we’re heading in the right direction in our mission to become Nigeria’s leading end-to-end financial solutions provider. Our ongoing digitization, innovative initiatives, customercentricity, aggressive universal financial services organisation drive, consistency in delivering relevant solutions to our clients and value to our other stakeholders will be buoyed by this award,” Macaulay stated the company’s delight for being recognized by Lafferty Group amongst the best banks in the world. He said the award further demonstrates Stanbic IBTC’s strength and desire to consistently provide best-in-class financial services solutions across all market segments by leveraging on the expertise and rich heritage of the Standard Bank Group, to which Stanbic IBTC Holdings belongs.

He stated further that the high rating is testament of Stanbic IBTC Bank’s overall quality and stability and demonstrates the bank’s capacity to consistently deliver tailored solutions that showcase the bank’s expertise and understanding of the dynamics of the retail banking sector.

Director of Councils and Client Relations, Lafferty Group, Caroline M. Hastings, while congratulating Stanbic IBTC Bank, said the Lafferty Banking 500 Global Benchmarking Study was inaugurated to distinguish and recognise banks with exemplary characteristics of the best banks in particular regions or worldwide.

“With a deep view across the world’s leading banks we understand the winning bank quality metrics: what makes good culture, strategy and customer service,” Hastings said.

Lafferty added that, the survey found that ‘focus’ is the key to success in banking, with the best performing banks focusing on consumer and SME/business banking.

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WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

The Detention of El-zakyzaky,

The recent face off between members of the Islamic Movement of Nigeria (IMN) and the military in Abuja during protest for the release of their leader, El-zakyzaky has thrown up serious legal issues on the right to protest and the detained religious leader’s right to freedom. Judicial Correspondent, GODWIN DUNIA, speaks to lawyers on the way out among others in this report.

About four members of the supporters of the imprisoned Shiite leader, also known as Islamic Movement of Nigeria (IMN), Ibrahim ELZakzaky, were killed when the group clashed with security forces during a protest march in Abuja last week.

The development has also precipitated calls on the Federal Government over needs for caution in handling the group. And that a heavyhanded approach could radicalized some elements in the group.

According to the military on what happened last week Monday in Abuja, it said they repelled attack by members of the IMN, who “fired weapons”, threw stones and Molotov cocktails, which led to the deaths of some of the members with several people injured. The report also quoted the army, saying, the attack was prompted by another attack on military convoy and attempt to steal weapons and am-munition at a checkpoint as security services stopped the protesters coming into the city.

Also, report quoted the IMN spokesman, Ibrahim Musa, that “they had received four bodies but indi-cated the death toll could be higher as scores of people were injured and troops took away others”.

It would be recalled, the IMN has staged a series of demonstrations demanding the release of its leader Ibrahim Zakzaky, who has been in custody since December 2015 after clashes in the northern city of Zaria.

Zakzaky has been at loggerheads with Nigeria’s secular authorities for years because of his calls for an Iranian-style Islamic revolution.

The cleric, who is in his midsixties and have lost the sight in one eye during the 2015 clashes, has only been seen in public twice since he was detained. And the government has previously ignored a court order

President Buhari to release Zakzaky and his wife.

However, this continuous clashes and the military’s use of deadly force have raised fears of a repeat of the 2009 crackdown on the Islamist group Boko Haram in northeast Nigeria.

Then, some 800 people, including Boko Haram leader Mohammed Yusuf, were killed in the Borno state capital, Maiduguri, forc-ing the group underground. They then re-emerged a more deadly force under Yusuf’s deputy, Abuba-kar Shekau. The insurgency since then has killed more than 27,000 people and displaced

more than two million others.

Consequently, many Nigerians have expressed concern over the

manner the FG is handling this group who are protesting the release of their leader in accordance to the order

of the court. Most people are of the opinion that it is of no consequence for the FG to insist on keeping the IMN leader in detention against court order.

And most people have expressed their fear on the ground that, this was how Boko-haram became radicalised.

Similarly, a Lagos based lawyer, Charles Lambo, described the development as an affront on human rights and defilement of the order of a competent court. He said it is also against what the constitution of the Federal Republic of Nigeria implies.

“It is an aberration to the doctrine of the rule of law which also stipulates freedom of movement and association under chapter 4 of the 1999 constitution. The action of the military in attacking the mem-bers of the Islamic Movement of Nigeria is despicable and an affront on the constitutional rights of those members to peaceful protest.

“The military has no right to take live in this situation since they were only engaged in peaceful protest and not armed. And they were protesting for the release of their leader who has been incarcerated despite court order that he should be granted bail.

It is even wrong that the military were alleged to be involved in the shooting of the IMN members, because it is the police duty to disperse such protesters who were not armed and it is therefore a misnomer that the

It is an aberration to the doctrine of the rule of law which also stipulates freedom of movement and association under chapter 4 of the 1999 constitution. The action of the military in attacking the mem-bers of the Islamic Movement of Nigeria is despicable and an affront on the constitutional rights of those members to peaceful protest.

$8.1Bn Fine: Court to hear preliminary objection on MTN vs CBN

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Federal high court sitting in Lagos has adjourned till December 4, 2018 for the hearing of preliminary objection filed by the Central Bank of Nigeria (CBN) and other pending applications in the suit filed by MTN Nigeria against the Central bank of Nigeria fine of $8,134,312,397.63 .

Also mentioned as codefendant is the Attorney General of the Federation AGF. At the hearing of the suit, Chief Wole Olanipekun (SAN), leading four other Senior Advocates of Nige-ria and 15 other lawyers informed thecourt that CBN has filed defence and counter claim to the suit filed by MTN and his client had also filed response to the said defence andcounter claim.

However the counsel representing the CBN, Seyi Sowemimo (SAN), leading Demola Akinrele (SAN) and nine other lawyers told the court that the CBN

has filed preliminary objection in addition to the already filed statement of defence and counter claim.

Though, the Attorney General of Federation has not filed any defence, the presiding Judge, Justice Saliu Saidu also observed that there is no proof of service before the court to show that the AGF has filed any response, though there is proof of services of other process filed by other parties.

Thereafter, by the agreement of the the counsels of the two parties, Justice Saidu adjourned for hearing.

However, in a statement of claim jointly filed before the court by Chief Wole Olanipekun and four oth-er Senior Advocates of Nigeria, MTN states that between 2001and 2006, its shareholders invested thetotal sum of $402,590,261.03 into it to meet the various obligations, including statutory payments to the government of Nigeria which wasconfirmed by the CBN.

The investment were issued by authorized dealers who are Standard Chartered bank, Diamond bank and Citibank, the CCI were converted into equity and preferential shares, as the article of the associa-tion allows it to alter its share capital.

But by a letter signed by the CBN Governor communicated a decision to MTN through the Managing Director of Stanbic Chartered Bank Limited whereby it decided amongst others, against the plain-tiff,that “the action of your company and the banks represent a flagrant violation of the extant laws and regulation of the Federal Republic ofNigeria on foreign exchange matters.

The sum of $8,134,312,397.63 illegally repatriated by MTN on the basis of illegally issued of Certificate of Capital importation CCIs should be refunded to the covers of the central bank of Nigeria with immediate effect “ MTN posits that the CBN lacks power to make a finding of illegality and it also has no power to

penalise the plaintiff on its illegality in the sum of $8,134,312,397.63 or in any sum whatsoever.

Consequently the plaintiff claims against the defendants thus :A declaration that the CBN lacks the power to determine the civil obligations or penal liabilities of the plaintiff A declaration that the plaintiff is not liable to pay the sum of $8,134,312,397.63 demanded as penalty from it by the defendants vide his letter of 3rd September,2018.

An Order of injunction restraining the defendants ,their agents whatsoever acting on their authority from giving effect to the decisions, demands and directive contained in the letters of August 28,2018 and September,2018 issued by the CBN. However in a statement of defence and counter claim filed before the court by the CBN counsel, Seyi Sowemimo, the Apex bank averred that MTN

Nigeria com-munication limited deliberately withheldinformation on what proportion of the sum of $402,590,261,03 was imported into the Federal Republic of Nigeria as shareholders loan and was equity.

In the course of its supervision of the foreign exchange market, an issue of foreign exchange with ir-regular CERTIFICATE OF CAPITAL IMPORTATION (CCI) arose in respect of certain foreign ex-changetransactions carried out by Standard Chartered bank Limited, Stanbic IBTC Bank limited, Citi Bank Nigeria limited and Diamond bank Plccollectively referred to as “the banks” CBN carried out a special investigation of the said transactions and it came to light that the banks had at the material time between 2007 and 2015 issued irregular CCI to remit foreign exchange amounting to$8 134,312,397.63 on behalf of MTN Communications Limited and for the benefit of its shareholders.

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

IMN Military Clash army were alleged to be involved”.

Lambo said even if it is assumed that some of the alleged protesters were killed by the police and not the army, it is also wrong. Because the duty of the police is to ensure safety of lives and property.

His words: “By virtue of Section 4 of the Police Act, the police has the right to investigate and maintain law and order, protect lives and prevent crimes. They don’t have the right to open fire on harmless protesters not to even talk of the army. There are other lesser measures to quell protest that is likely to degenerate instead of shooting at them. That the protesters were alleged to have threw stones and armed with cudgel against the security men is not enough to open fire at them and also this in-struments are not regarded as arms in law. So the actions of either the police or army is uncalled for and under the law, the rule of law supersede national security. The same section 4 also said the police should be involved in military operation because the army supposed to train the police in a situation of internal aggression”.

Lambo stated further what he meant by the rule of law in this situation, saying: “What the rule of law implies here is that, their leader has been granted bail by a competent court and up till now, he has not been release by the Federal Government. The rule of law here means that the FG has refused to obey the order of the court and it is an aberration and misnomer”.

He also asserts the constitutionality of the court order and the reason why the FG must obey it to letter. “Under section 6, of the 1999 constitution, the judiciary has the right to adjudicate on any matter and protect individual rights”.

The Lagos based lawyer also lament actions of the FG and described such as not only dictatorial, but tending towards fascism regime where extreme power are used to suppressed the masses. He gave instance of what played out in Italy in 1938.

“In Nigeria today, dictatorship has taken over the rule of law to the

extent that protesters are been shot at for their demand for the rule of law which implies the release of their leader. Since a court of competent jurisdiction has given an order that the man should be release and the FG has not chal-lenge or appeal the order and the law says, when a court gave an order and you are not comfortable with it, then you appeal. But in this instance, it has not been done. And whatever the case may be, the law supersede every other institution or person, even the president”.

Speaking further on the principle of separation of power, Lambo pointed out that under the constitu-tion, the legislature has power of checkmate the executive and indeed the President.

The legislature supervises the activities of the executive who is to enforce the law made by the legislature.

And sec-tion 111 of the constitution says, once a law is made and is at variance with the constitution, such law is declared null and void.

According to Lambo, “the court of law empowered by section 6 of the constitution has given an order that this man should be release on bail with certain conditions and they

met the conditions but the executive on its own refused to obey and the protesters are rightly demanding for the freedom of their leader. So they were right by the protest”.

Lambo is also of the opinion that, the aggression of the FG may radicalised the IMN members such that they can regroup to become another terror group.

“It is possible that the group may radicalised if the FG did not manage the situation in the proper way. So far, the action of the government is not pacific rather it has been too aggressive.

Mind you, this is a religious group which had its root in Saudi Arabia and other Northern (Islamic) countries.

The FG is indi-rectly radicalising them and when they become so desperate, death will meant nothing to them.

“We don’t want any other forms of internal threat to our existence as a country and this is why the FG has to obey the order asking it to release the man. I am of the opinion that if the man is release today, we are likely not to see these people again on the street”.

But an Enugu based lawyer, Ifeayin Okumah, would preferred a continuation of the legal battle

on the part of the sheikh members.

To him, it is of no gain mounting violent pressure on the FG in order to get their leader released.

Okumah said: “My take is that once they have gone to court and the court has given order that their leader should be given bail. There should be no need for any pressure from the IMN members in-stead, they should go back to court and push for their demand and at the same time they should en-gage the press to get them advice the FG on what to do.

Confrontation is not the best because at the end of the day, their members are the ones who would pay dearly for it. And whoever is strategising for the IMN members should note that it is not in their best interest”.

He also condemned the actions of the government, describing it as absurd for them to go to court and the court gave an order yet, they refused to obey.

“It shows the government is not obedient to the rule of law. And there was no appeal against the order by the government. The man is a Nigerian citizen and he is entitled to rights as enshrined in the constitution”.

Also, on his opinion on rights to protest, Okumah belief there is no absolute right to protest against someone who is in detention.

It is the right of the person in detention that is curtailed not that of his members or followers.

“His followers may protest or assembled, the point is that they would continue to lose their members.

They cannot afford to clash with the army whose primary responsibility is to defend the country against any form of insecurity. That was why I said they should exploit the legal option to get their leader out of detention”.

Okumah also advice the government on the need to manage this group such that it would not degen-erate to another terrorist group.

“What the government is doing is that they are taking the wrong approach. No matter what is on ground, since it has nothing to do with treason, then the man is entitled to his bail

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otherwise the gov-ernment is indirectly indoctrinating them and sowing seed of hatred and by the time the man is out it would be something else”.

Another lawyer from Akure in Ondo State, Remigius Akinbinu, said he has read about the members of the Islamic movement and that they were violent and confrontational, but whatever this may meant to the government, the point is that an order of the court must be obeyed.

Akinbinu said: “I have heard they have been violent but no matter what they are doing, since the court of competent jurisdiction has granted the leader of the movement bail and the FG or the President refused to obey is wrong. That alone amount to impunity and fragrant disobedience to the rule of law. It is also despotism of the highest order no matter what the IMN leader has done”.

But speaking on threat to security and peace of the country, he said: “Though under normal circum-stances, one may not blame the government for unleashing military might on them because we have already found ourselves in a near war situation and the government may not want to toy with security. It is also a public opinion that the sheikh members are causing a lot of havoc, but then what caused this war-like situations was the flagrant disobedience to court order”.

However, the Akure based lawyer is also of the opinion that the government should be held responsi-ble for what the members are doing and whatever happen thereafter to them or the country. He said the government must manage the situation very well by re-visiting their demand and at the same time accede to what the court had ordered.

“The case of the IMN is very unlike that of the Boko Haram and I have always supported the way the government has continue to respond to the Boko Haram, but to actually curb and douse the tension of the IMN, the government need to obey the court order and free their leader”.

It shows the government is not obedient to the rule of law. And there was no appeal against the or-der by the government.

First Bank files suit against Lister flour Mills over N8.8 billion debt First bank of Nigeria limited, has refiled a suit against two directors of a company Mrs Khadijah Alao -Straub, Mr Ismail Alao. The company, Lister Flour Mills Nigeria Limited and its sister company Lister Oil limited were promoted and predominantly owned by late Ibadan business mogue, Alhaji Arisekola Alao.

The First bank refilled the suit in a bid to recover a debt of N8,856,570,029.81.

The suit which was filed in pursuant to order of a Federal high court in Lagos south west Nigeria was filed before the court by a Lagos lawyer, Barrister Olamide Balogun.

In a statement of claim accompanied with statement of witness on oath of account officer in classified Asset Management Department of First bank, Mr Ololade Lawrence, It was alleged that, Mrs Kahadi-jah Alao-Straub acting as director alongside the other erstwhile directors of Lister Flour Mills of Nigeria approached and obtained various huge credit facilities which she personally guaranteed from First bank Nigeria limited, while Lister Oil limited corporately guaranteed the repayment of the said loan.

Between 24th of January 2011and November, 2013, First bank granted the following credit facilities to Lister Flour Mills Nigeria Limited with its operating office at 21Creek Road, Apapa Lagos as a customer of First bank.

The sum of N2.5billion for the purpose of supporting the civil construction of proposed biscuit manu-facturing factory belonging to Lister Confectionary Nigeria limited at Ibadan, the importation and instal-lation of 600MT production plant for

Lister Flour Mills limited and the interest capitalization of the loan.

The sum of N3.5billion for the purpose of supporting the importation and installation of five biscuit production lines in respect of the proposed biscuit manufacturing factory belonging to Lister Confec-tionary Nigeria limited.

A term loan in the sum of N80million for the restructuring of the expired Temporary over draft facility in the sum of N80million as part of existing facilities at an interest rate of 18% per annum and a restruc-tured term loan in the sum of N150million.

First bank Nigeria limited aver that the facilities granted Lister Flour Mills now in receivership were duly accepted and fully utilized as Mrs Khadijah Alao-Straub and other erstwhile directors then acting on behalf of the company made a full draw down on all the facilities.

The loans were secured by a pefect deed of Mortgage debenture dated 23rd of October, 2002 over the company’s undertaking, goodwill and assets which include the entire parcel of land lying at Idiroko Olomoyoyo, Ibadan -Ijebu-Ode Road, Ibadan, Oyo stste containing area of approximately 31Acres.

Various deed of guarantee dated 22nd of May, 2013, the Lister Oil Mill Limited and Mr Ismail Alao guar-anteed the repayment of the loan facilities.

When the loan became due and owing to the persistent failure of Lister Flour Mills to liquidate its in-debtedness to the bank, the bank called in the facilities and serve demand letters for immediate pay-ment of the outstanding debt.

However,the company acting through the

defendants demonstrated nonchalant attitude towards liq-uidating the company’s indebtedness.

Upon continual refusal,failure of the company and the defendants to liquidate the company’s indebt-edness to the bank, and in accordance with the provision of the deed of debenture the bank on the 29th of September,2015 appointed Receiver /Manager over the assets of the company.

The bank avers that the Lister Flour Mills indebtedness to the bank is a colossal sum of which stands in the sum of N8,856,570,029.81.

The bank contended that the company’s failure to liquidate its indebtedness to the bank adversely affecting the Bank’s business operation as the funds packaged as facilities to Lister Flour Mills Company are third party depositors/stakeholders funds,and if the funds packaged as facilities for the company being third party depositors/ stakeholders funds remain unpaid, it Will have More devastating effects on the business of the bank and the resultant effect Will be multiple on the economy of the country.

The bank stated further that its books are always examined by the regulatory authority and the bank has always been queried severally by the regulatory authority on the account of Lister Flour Mills com-pany which are always colossal debt and also the bank has been given final notice by the regulatory authority of impending grave sanction if the accounts of the Lister Flour Mills continued to be in debt.

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OPINION

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

In 2013, China made the promotion of PPPs part of state policy as it sought private investment in state infrastructure.

However, a survey of private companies involved in PPP projects conducted by China Confidential, a Financial Times research service, found that “only 48% said they would invest in such developments again. Government interference, poor enforcement of investors’ rights and low returns were cited as reasons for their hesitance.”

In 2013, China made the promotion of PPPs part of state policy as it sought private investment in state infrastructure.

However, a survey of private companies involved in PPP projects conducted by China Confidential, a Financial Times research service, found that “only 48% said they would invest in such developments again. Government interference, poor enforcement of investors’ rights and low returns were cited as reasons for their hesitance.”

Investing in infrastructure: if you build the right financial structures, will investors come? (2) “There have been several examples globally where excessive risk was evident not from development and construction itself but because usage of the asset after construction was not as expected. Several greenfield toll road developments, for example, have suffered from this,” says Mr Matthews.

“Governments can assist with this by recognising that they are best placed to take this initial usage risk.

They can then sell the asset to longterm investors once it is up and running, and then use that recycled capital to develop new projects.”

The Australian government does just this, giving state governments an additional 15% of the capital recycled from current assets and reinvesting in new infrastructure.

Fastest growth, biggest needs Emerging markets such as those across Africa – which need an estimated $90bn in infrastructure investment over the next decade and will be home to 25% of the world’s population by 2050 – are keen for more PPP deals in infrastructure, according to Rosalind Kainyah, managing director at Kina Advisory, which advises investors in Africa. “Outright privatisation is often unpopular in sectors with strong labour unions such as railroads and power companies.

The PPP model is an easy way of bridging that concern,” she says.

Recent examples include Uganda’s

Kampala Expressway and a wasteto-energy plant, facilitated by the country’s passing of its landmark Public-Private Partnership Bill in 2015, which introduced a regulatory framework for PPPs. African companies are gaining prominence in the market through these partnerships. Ms Kainyah says: “With growing FDI and PPP investment, we are beginning to see African partner companies to these international investors coming onto large-scale projects, which they would not have been able to do on their own. Significant knowledge and technology is being transferred to them, enabling them to become bigger players in their own right.”

Of course, emerging markets present their own risks. Ms Kainyah encourages investors to conduct what she calls “due diligence plus”, “taking the time to understand the political and socio-economic terrain while having good on-the-ground advisers”. Land issues, for example, can be very sensitive because they often require negotiations with local tribes or families. Political instability, civil strife, currency risks and contract rejection are also greater risks in emerging markets; governments must actively work to instil confidence in private investors.

This requires maintaining a stable environment. A 2016 World Bank report on PPPs found that private infrastructure investment is “highly sensitive to conditions

such as freedom from corruption, rule of law, quality of regulations and the number of disputes in a sector… A robust institutional and regulatory framework is critical in attracting private investment for infrastructure projects”.

In 2013, China made the promotion of PPPs part of state policy as it sought private investment in state infrastructure.

However, a survey of private companies involved in PPP projects conducted by China Confidential, a Financial Times research service, found that “only 48% said they would invest in such developments again. Government interference, poor enforcement of investors’ rights and low returns were cited as reasons for their hesitance.”

International intermediaries When there is insufficient equity to match the debt required to finance a transaction, development banks play an increasingly important role filling the gap. The World Bank’s International Finance Corporation (IFC), for example, invests more than $1bn in infrastructure equity annually and in 2013 launched a global infrastructure equity fund for emerging markets, raising $1.2bn.

The African Development Bank and Inter-American Development Bank, among others, also have targeted infrastructure funds.

The World Bank’s International Development Association recently

introduced the Risk Mitigation Facility (RMF), allocated to catalyse more private investment in largescale infrastructure and PPP projects in low-income countries by providing liquidity support and political risk insurance.

“It is specifically to address the risk of political interference,” explains Bernard Sheahan, director of infrastructure at the IFC. “This is a brand new thing that for low-income countries we think will make a big difference.”

A new entrant is the Beijingbased Asian Infrastructure Investment Bank (AIIB). With more than 70 member countries, the AIIB provided over $1.7bn in loans in 2016, co-financed with other multilateral institutions.

“The AIIB recognises that in order to be transformational, it’s not about billions in capital but about bringing in the trillions from the private sector,” says the EBRD’s Mr Romani. “We believe the AIIB will be instrumental in that.”

National and local governments must continue working with partners in developing sound deals to attract the crucial private capital needed to support their populations. Attracting these investors, Mr Sheahan concludes, boils down to one thing: “It’s like anything else. Investors only respond to one incentive: that the return is adequate for the risk.”

In focus: the global PPP picture The UK pioneered PPPs in the

Growing the Nigerian Economy through the Mobile & Telecom Sector Undoubtedly the giant of Africa - with an estimated population of 194 million people, Nigeria remains the largest mobile market in the continent - and still has more potential for growth and for competing on a level-playing ground with the developed nations.

Although the economic growth of the country might not be as fast-paced as its counterparts’, it is full of hopes and promises.

The mobile trends published in the 2017 Nigerian Mobile Report,

by Jumia Nigeria - Africa’s biggest e-commerce platform, provided some convictions for this belief. In summary, the report examined how the market has democratized mobile internet use, the consumer behaviors driving increased smartphone adoption and the role of the different stakeholders within the sector.

Jumia is set to release the 2018 edition of the Mobile Report, which will focus on various mobile trends in the country and in Africa at large.

And Juliet Anammah, CEO, Jumia Nigeria is as excited as everyone else about the report. But, while we patiently wait for the report pending its release, let’s examine some facts and figures from the 2017 report.

There were about 150 million mobile subscribers equivalent to 81% penetration (as a percentage of the population) in 2016. Internet penetration was at 18% with 216 million internet users while Nigeria’s internet penetration was much higher at 53%; its mobile subscription was similar to Africa’s

at 81% penetration (960 million mobile subscribers). To benchmark this data, a similar report by the Nigerian Communications Commission (NCC) put the number of subscribers - by the end of December 2016 - at 154 million.

This subscriber base is a sum total of all the active subscribers for telephony services on each of the licensed service providers utilizing different technologies.

The difference in the number of subscribers presented by both reports can be attributed to the lack of accurate census in the country.

Meanwhile, the percentage of internet penetration widened increasingly; number of internet subscribers peaked at 97.2 million (more than half the number of mobile subscriptions) by end of 2016 - which represented a much higher penetration rate than the rest of Africa combined. The subscriber base of internet users in the country was predicted to increase by at least 30% by end of 2017. With the number of Nigerians having access to the internet - mostly through smartphones - growing in leaps and bounds, it’s a clear indication that there is a huge potential for e-commerce in the country. For instance, Jumia recorded 394% growth on the sales of smartphones between 2014 and 2016, mostly driven by an increasing range of lower smartphones price points. And 71% of website visitors on Jumia Nigeria in 2016 used their mobile phones to shop, whereas only 53% of Jumia African customers did so.

Although, the contribution of the telecom & mobile sector to the country’s GDP was indeed a small fraction, according to a report by the NCC - only 9.13% was directly or indirectly accrued from the sector. Yet, it is worthy of note to mention that it was a great leap from the previous year. E-commerce companies like Jumia - present in 15 African markets - are facilitating the promotion and distribution of both high-end and low-end price points mobile phones in Nigeria.

The NCC is not also relenting in exercising its power to regulate the operations of the licensed telecom operators especially in the area of voice & data tariff.

So, what is the future of the telecom and mobile sector in Nigeria? To witness an improvement over the previous years will require a collective, yet individual effort from both the private and public sectors. Primarily, the growth of the sector, among other things, depends on the availability of affordable mobile phones & data tariff. To the former, Jumia is committed with its partners - to facilitating and leading the charge in this regard.

The week of March 15th 25th, 2018 will be interesting and exciting for the entire country for two reasons: the 2018 edition (4th report) of the Nigerian Mobile Report will be released at a press conference; and secondly - although still related to the first event is the commencement of Jumia Mobile Week (an entire week dedicated to the sales of mobile phones at

the best prices in Nigeria). Nothing beats the excitement of getting your dream mobile phone at nearly half the price and such was the frenzy all over the Nigerian cyberspace in 2017. From the moment you spot the juicy deals, the swift race for the fastest fingers, the sigh of relief when you have successfully placed your order and the short wait for your order to be delivered. Last year, Jumia Mobile Week featured 3 mouth-watering flash sales everyday at nearly 50% off; both night crawlers and day troopers had a piece of the pie. MTN also gave out free MTN 4G sim and 20% data bonus on their data plan everytime you recharged for the first 3 months.

There was also juicy discounts on mobile brands like: Infinix at 40% off; Tecno at 20% off; Motorola at 50% off, and Innjoo at 20% off.

So, this year, which brands will top the list of Jumia top selling mobile phones? How much discounts will be available to customers and on what mobile brands? How much money are you hoping to save during this year’s Mobile Week? Which mobile phones will have the best deals this year? How much discount will Jumia offer on purchases done on its mobile App? How do you get to participate in the Treasure Hunt so as to win a coveted prize? How do you participate in the fashion accessory giveaways on social media by your favourite fashion celebrity/icon?

EDITORIAL

WESTAFRICA BUSINESSNEWS NOVEMBER 5 - 9, 2018

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WESTAFRICA BUSINESSNEWS

ENERGY, OIL & GAS

NOVEMBER 5 - 9, 2018

Electricity Workers, CSOs kick against Renewal of BEDC Operational Licence

By Clifford Agbajor, Benin

M

embers of Edo State Civil Society Organisations and National Union of Electricity Employees (NUEE), have called on the Federal Government not to renew the operational licence of the Benin Electricity Distribution Company, (BEDC) due to poor performance and unfriendly labour practices.

They made the demand during a protest match and picketing of the company by the CSOs members and electricity workers, in Benin City, recently.

The mass protest which coincided with the fifth anniversary of the licencing of the BEDC, grounded economic activities in and around the headquarters of the electricity company located along Akpakpava Road, in the Edo State capital.

The protesters who carried placards with various inscriptions such as “Funke must go; FG don’t renew the license, BEDC must go; Five years of continue darkness is enough; Treat customers with respect; Nigerians are tired of

blackout among others, accused BEDC of providing epileptic power supply to consumers in the State as well as its failure to honour contract agreement, unfriendly labour practices among others.

The group therefore urged the Federal Government not to renew the Company’s operating license as it does not have the capacity to meet customers’ electricity demand, adding that the privatisation of PCHN has failed.

Coordinator, Edo State Civil Society Organisations, Omobude Agho, who addressed journalisits, said the protest is to demand that the licence of BEDC should not be renewed over poor performance.

He said; “The license is a five years contract which expired today, we are saying that it must not be renewed, BEDC should be taken over by the Bureau for Public Enterprise (BPE) and get capable investors willing to do business and follow the terms of agreement.

“BEDC has not met any of the conditions of the terms of the contract agreement. There was no provision of transformers, elec-

tricity, replacement of poles, wires, amongst others.”

Agho also alleged that the company had rejected power from the transmission company and prefer to give the little it accepted to big companies and wealthy individuals who can pay N2 million and above.

“There was an occasion the Managing Director said that she can’t give power to a community that can’t pay N1 million bill when an individual can pay N2 million,” Agho alleged.

On his part, the Assistant

General Secretary, National Union of Electricity Employee (in charge of Lagos District), Richard Kedee, said the protest was as a result of the unfriendly labour practices and poor services by BEDC. “BEDC management doesn’t observed labour laws and treats worker like slave.There is no condition of service and they are owing workers”.

Responding to the allegations, the BEDC Public Relations Officer, Tayo Adekunle, said members of NUEE were

trying to impose the condition of service that is obtainable in the public sector on BEDC. He said; “As as a private sector organisation, we operate in line with private sector condition of service.

We were still engaged in that negotiation to a point that we told that what we could offer in line with the financial reality on ground.

“They said that it was unacceptable to them and that based on that, they would picket us. We wrote to the Federal Ministry of Labour

on the situation and they told both NUEE and BEDC to stay action and come for a discussion next Monday.

There is nothing wrong in picketing but in the company, majority of the staff are not union members.

“There is nothing like licence renewal, the privatisation exercise was a once-for-all transaction that transferred the assets of the defunct Power Holding Company of Nigeria to core investors in the BEDC.”

Past government abandoned 800 containers of power equipits determination to boost megawatt, which we have ment - Mohammed power supply was able to re- been able to raise to 7000.

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he Minister of Information and Culture, Lai Mohammed had disclosed that the past governments abandoned 800 containers of power equipment meant to help boost power generation in the country.

The minister made

this known when he featured on a national television on Saturday to discuss on the state of the nation.

He said the containers were abandoned because contractors were not paid.

He, however, noted that the present government in

trieve 690 of those containers.

He said the contractors had also been paid and mobilised to site, adding that the effort had yielded positive result.

“How many hours of power did we have. When we came in all the GENCOs were generating were under 5000

“Today people who live in part of Ondo that have not seen power for 10 years will tell you they now have power.

“As a matter of fact, not only do we generate 7000 megawatt of power, by the end of this year we will generate additional 2000 megawatt,’’ he said.

Erring marketers face six months suspension to stem scarcity during yuletide — DPR

A

s part of measures to curb the usual fuel scarcity during yuletide, the Department of Petroleum Resource (DPR) has announced plans to sanction erring marketers for six months.

DPR Head of Downstream Monitoring and Regulations, Mrs Ijeoma Onyeri, disclosed this at the First Annual General Meeting and Anniversary if its Abeokuta Field Office on Thursday.

Onyeri said that the sanction was mandated by the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, in order to curb hoarding and diversion of petroleum product.

Represented by Isah Ibrahim, Acting Assistant Director, Retail Outlets Monitoring, Onyeri said there was no plan by the government to increase prices of petroleum products, warning against panic buying by both the public and the marketers.

“It’s important to note that as we approach the yuletide period, the Honourable Minister of State, Petroleum Resources, has mandated the DPR to suspend any defaulting marketer.

“Be it depot or a petrol filling station found engaging in hoarding or diversion of petroleum products, especially Premium Motor Spirit (PMS), for a period not less

than six months while stiffer fine will be imposed in addition to the above,” she said.

She said the DPR would soon launch Minimum Industry Safety Training for Downstream Operations (MISTDO) as part of initiatives to improve on safety of Minister of State Solid Mineral Development, Bawa Bwari; Secretary to the Government of the Federation, Boss Mustapha and Minister life and property in the down- of Information, Alhaji Lai Mohammed, during the Federal Executive Council Meeting at the Presidential Villa in Abuja Sumaila Ibrahim stream sector operations.

In her welcome address, DPR Coordinator of Abeokuta Field Office, Mrs Muinat Bello-Sagie, said the AGM offered stakeholders ophe Nigerian National of measures to sustain the “As a reliable supplier, we talking of a local company portunity to interact, share Petroleum Corporation, robust supply of petroleum think BP is a brand that we can with over 150 retail outlets, knowledge, ideas and experiNNPC has signed a six- products across the country, always partner with. We trust depots as well as a good netences in order to continually month Direct Sale-Direct Pur- especially as the nation moved the company and we have work of trucks nationwide.” improve on the DPR activities chase, DSDP agreement with toward Yuletide and beyond. a good relationship with it.

Responding, John Goin Ogun and Nigeria at large. the British BP for the supply odridge, Head of MarketUghamadu quoted the “We also believe in the She added that apart of Premium Motor Spirit Group Managing Director of company’s commitment to- ing and Origination of BP from the supervisory role of (PMS), also known as petrol. the corporation Dr Maikanward the development of oil trading business said it the oil and gas operation, The corporation dis- ti Baru, shortly after cer- local content,” Baru said. was a great honour for BP the organisation also ensured closed this in a statement emony, as expressing the He also commend- to be trusted by NNPC as the safety of lives, assets and signed by its spokesman, commitment of NNPC to ed BP for partnering with one of its strategic suppliers. environmental protection. Ndu Ughamadu in Abuja. ensure product availability.

“We are delighted to have AYM Shafa, a local oil com“Within one year that British Petroleum is Baru, who described pany, noting that the lo- the opportunity to work more Abeokuta office was cre- the trading arm of BP NNPC as the nation prodcal oil company had been closely with the NNPC. Going ated, the DPR had tackled Oil International Ltd. ucts supplier of last resort, expanding its downstream forward, we hope to grow this many challenges mitigating He said the latest agree- said the commitment would footprints across the nooks mutual relationship to greatsmooth operations of the ment would represent 20 per be accomplished by invitand crannies of the country. er things,” Goodridge said. downstream sector including cent of NNPC total PMS supply ing new and old players to According to him, BP “BP partnership with AYM diversion of products, ununder the DSDP arrangement. boost the Nigerian oil sector. Shafa toward delivering on boasts of a global network of reder-dispensing, among others Ughamadu said the agreeThe NNPC boss noted its DSDP obligations makes fineries capable of generating “Some of the issues we ment would basically allow that over the years, BP had it a perfect fit for our plans to the products to meet the spechad to deal with include prothe corporation to exchange demonstrated the capacity ensure that there is adequate ifications required by NNPC. liferation of illegal LPG opercrude oil with international and robustness to augment the supply of products throughout He said the ultimate was ations, diversion of products, oil traders for imported pe- shortfall by NNPC, especially the coming Yuletide and even to ensure that over the next six under-dispensing and un-sertroleum products over time. as the winter and 2019 gener- beyond the election period. months, “Nigeria does not witviceable fire extinguishers.

He added that it was part al elections were approaching.

“In AYM Shafa, you are ness any product shortages.“

NNPC, BP sign 6-month deal for fuel supply

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PROPERTY & ENVIRONMENT

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

FG to invest N500Bn to bridge housing deficit in five years — Presidency

BY MARIAM ABDULLAHI, ABUJA

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he Federal Government will over the next five years invest N500 billion to bridge the housing deficit through the Family Homes Fund (FHF).

Special Adviser to the President on Economic Matters, Adeyemi Dipeolu said this while speaking with newsmen on the sideline of the second Nigeria Housing Finance Conference in Abuja.

The conference was organised by the Nigeria Integrated Social Housing (NISH).

The conference has as its theme: “Innovative Financing of Affordable Housing’ with the sub-theme “Delivering Affordable Housing through Cooperatives’’.

Dipeolu, represented by Ms Imeh Okon, the Senior Special Assistant to the President on Infrastructure, said that FHF would be powered by the government but with private sector participation.

“Government is giving FHF N100 billion yearly for the next five years with anticipation that it is going to leverage one trillion naira of private resources.

“This money is essentially to help build social and affordable housing for Nigerians and in this situation, if you earn N30,000 you can be able to buy houses that will be under the FHF.” He added that presently, some houses had been completed in Nassarawa state and about 3,000 to 6,000 were under construction across Nigeria According to Dipeolu, the Ministry of Power, Works and Housing has also completed more than 2,000 houses of 72 units across Nigeria under the affordability index with the hope that Nigerians will be able to access them.

On the issue of high mortgage, he said that efforts were on going to ensure cheaper mortgages, adding that if the houses were there and the mortgages were not available, it would be a bit of a challenge for Nigerians to access the houses.

Dipeolu also said that the issue of hidden charges in mortgage acquisition was also being addressed.

“Most of the mortgages that are being issued right now through the Primary Mortgage Banks (PMBs) to my understanding make these charges to cover their own administrative costs.

“We have been told about these hidden charges and presently, we are working with the PMBs to see how we can reduce them to the barest minimum so that it will not impact on what the beneficiary has to pay in the long run.”

In his keynote address, Prof.

Ibrahim Gambari, said that the challenges inhibiting delivery of affordable housing in Nigeria include land, technology, expert knowledge and skilled manpower, building materials, infrastructure and finance.

Represented by Amb. Sani Bala, he said that other issues include insurance of mortgages and properties, estate maintenance and management, legal framework like foreclosure laws

President Buhari and Affordable Housing Bill.

Gambari, Nigeria’s former UN Permanent Representative and Under Secretary-General, added that the solution to land and land titles issues lay with the Federal and State Governments.

“It is important to note that affordable housing cannot be achieved using land purchased at market prices.

“It is also important to note that for affordable housing to succeed, governments must provide easy access to land and land titles at little or no cost.”

According to him, building materials are also critical to de-

veloping affordable housing.

Gambari also said that policies must be geared toward encouraging new entrants into building materials industry.

“Bulk discounts should also be offered by manufacturers, especially for affordable housing projects.

“Manufacturers of building materials, especially the socially responsible ones should make it a policy or strategy to moderate prices and offer special discounts and terms for housing cooperative societies for affordable housing projects.

“Government should also con-

sider 100 per cent waivers or lowering of import duties on imported building materials, epecifically tied to the affordable housing project after the marshal plan being proposed is finally approved.”

The Managing Director, NISH, Mr Yemi Adelakun, said that one of the major problems in bridging the housing deficit was that the houses available had not been built to the needs and the affordability of the people.

According to him, not giving houses to those who are in need of them must be addressed squarely.

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UN urges Africa to increase budgets for environment management

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he UN Environment on Friday called on African governments to increase budgetary allocations for the management of environment.

Head of African Ministers of Environment secretariat (AMCEN), at the UN Environment, David Ombisi said an allocation of one per cent annually is not enough to help tackle environmental problems.

“More than 23 per cent of premature deaths in the continent are attributable to environmental causes,” Ombisi told journalists in Nairobi.

Ombisi noted that Africa’s figure is the highest for any region in the world.

He said that less allocation of money to the environmental sector is to blame for the spread and outbreak of a number of diseases in the continent.

Ombisi noted that AMCEN saw the need to incorporate ministries of health, finance and planning to help discuss the funding aspect of environmental programmes.

“The Inter-Ministerial Conference on Health and Environment has since 2010 been discussing how to enhance investment to address challenges posed by environment,” Ombisi revealed.

The UN official observed that while the continent has long been plagued by problems relating to access to safe drinking water, inadequate sanitation and poor infrastructure, new environmental threats including climate change and rapid and unplanned urbanisation have emerged.

Abia defeats Rivers, others to win regional environmental quiz competition

O

waza Community Secondary School, Abia, has emerged winner of the 2018 edition of Environmental Quiz Competition for Community Secondary Schools in Niger Delta.

Owaza defeated several other secondary schools from Abia, Imo and Rivers states to win the prestig-ious annual competition organised by the Shell Petroleum Development Company (SPDC), Joint Ven-ture (JV).

Community Secondary School Aleto, Rivers, finished as runner up; Community Secondary School Ru-muapara, Rivers, was at third position, while Community Comprehensive Secondary School, Rumuokwurushi, Rivers came fourth.

Speaking, SPDC’s General Manager, External Relations, Igo Weli, said the quiz competition was organ-ised

by SPDC JV for communities in its East Land Hub area.

According to him, SPDC and its joint venture partners organised the competition, to create awareness among secondary school students on the importance of maintaining the environment.

He said: “SPDC is passionate to improve education in its host communities to guaranty quality gradu-ates and manpower needed to drive development of the country.

“This passion led us to organise this quiz competition which seeks to create awareness for students

and teenagers to be conscious of their immediate environment.

Weli said the quiz competition was one out of the many social investments that the company had sponsored in communities in its East Land Hub area of operation.

He said, however, that its social investments in its host communities have been partly affected by youths restiveness and agitations in some communities.

“We need to ask ourselves the question about the things that we are doing, which made companies and investors to turn their backs on providing social investment.

“Also, some of the choices that we

are making as a people have made a lot of companies that could have done more things like this to leave.

“People need to stop whatever that they are doing that is driving away those opportunities, that these students need when they come of age,” he advised.

Rivers Commissioner for Education, Dr Tamunosisi GogoJaja, commended SPDC JV for providing the enabling environment for students to get better understanding of their environment.

He said the state was currently carrying out campaign to end corrupt practices by some parents, headmasters

and principals of primary and secondary schools in the state.

“Some of the corrupt practices that we are tackling are, cases where parents offer money to teachers, to influence marks for their children.

“We are also taking action on imposition of tuition on students, and also, the so called miracle exami-nation centres where students’ sitting for WAEC make as much as eight distinctions,” he said.

Prizes won by the contestants include, laptop and desktop computers, text books, school bags, stu-dent water bottles and trophies, among others.

Review of Lagos State Environmental Law indigenous PSP/investors,” he said. overdue – Environmentalist Lagos State House of

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n environmentalist, Taiwo Adewole, says the the review of the Lagos State Environmental Law 2017 is long overdue.

Adewole, Chief Executive Officer of Taiwo Adewole and Associatessaid in Lagos that the 2017 Environmental Law was done in a hurry.

He said that the previous Environmental Law was done to favour of Visionscape Sanitation Solutions and the state lawmakers had seen the flaws and now want to set the record straight. ”There are a lot of flaws because it was rushed and passed into law just to favour Visionscape, all in the name of Pubic Private Partnership

(PPP),” the environmentalist said.

He said that while reviewing the law, the aspects of first line charge payment to Visionscape and total scrapping of the Private Sector Participants (PSPs) should be looked into.

According to him, the area of introduction of Waste Collection Operators (WCO), which is selective of some selected PSPs, and killing of the Lagos Waste Management Authority (LAWMA) should be reviewed. ”The new law should give all opportunity previously given to Visionscape to the PSPs in terms of PPP and funding based on first line charge and signing of bonds for the

Assembly recently began a threeday retreat to review the state’s Environmental Law and nine others, to meet global best practices.

The Speaker, Mudashiru Obasa, said the House was committed to moving the state forward with realistic laws.

Obasa said that to move Lagos State forward, there was the need to put in place laws that were enduring and in conformity to the interest of the people. ”We must restructure them (selected laws) and introduce new laws where applicable.

We need laws that can satisfy the interest of our constituents.

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INSURANCE

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

The imperative of insurance to survival of Nigeria’s agricultural sector Nigeria’s agricultural sector losses about N20 billion annually, as a result of failure of insurance companies to cover farmers. The resurgent flood destroying many farmlands has added to the renewed calls for insuring this sector. NIYI JACOBS reports.

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here are opinions that many farmers operating in the Nigerian agricultural sector are not keen or even belief in getting insurance covers for their farms.

Insensibility to insurance policy in the country’s agriculture have resulted to severe loss in agric produce running into an estimated N20 billion annually.

Dr. Kolade Adebayo, Executive Director, Zynosism Nigeria Limited, recently charged the insurance sector to create products that capture small farmers.

Adebayo who revealed this at an event in Lagos noted that: “The absence of insurance products for small farmers is costing the agricultural sector over N20 billion annually. We need insurance products that will aggregate small farmers cooperatively and provide cover for them. As such, insurance companies need to deal with poultry associations, rice farmers association and so on so that agricultural produce can be enhanced.

“Risk is an integral element of the farming industry, but the challenge we are having is that we don’t have the insurance partnership to cover most of our risks. The association of livestock farmers usually organize annual agric forums where we come together to discuss issues. For years we have always invited stakeholders from other sectors to rob minds together on ways of moving agric business forward. For over 10 years that we have been having this forum, while we have had many representatives from other sectors, we only see one person from the whole of the insurance industry. This is not good for the insurance sector.”

Also speaking at the event, Biodun Oladapo, Chairman, Small and Medium scale Enterprises Trade Group of the Lagos Chamber of Commerce and Industry, LCCI, said that the livestock business is still stunted in Nigeria because over the years, there has not been insurance support to give it a boost.

Oladapo said, “We have seen little growth in livestock business in the country because we have not had adequate insurance support.

Any farmer that has any insurance cover today got it because they wanted bank loans. Unfortunately, no bank in Nigeria will give any farmer loan without insurance cover.

“For the farmers that have insurance, when cows enter a rice farm and eat up the rice, the insurance companies will tell you that ‘cow eating rice’ was not covered.

At the end of the day, no claim will

Babatunde Ruwase, President LCCI

be paid and the farmer is abandoned to his fate. Such incidents have contributed in impoverishing many farmers and the experience is causing apathy between us and insurers. So there is need for the insurance sector to introduce products that will cover all our risks.

Responding to the concerns raised, President of the Nigerian Insurers Association, NIA, Tope Smart, said that the insurance industry need to partner with the agricultural sector going forward as part of measures to survive and thrive.

Smart stated: “The insurance sector is under threat of survival, as such, it should re-strategize

and innovate to continue to exist.”

The main concept of insurance is that of spreading risks. Insurance facilitates investment by reducing the amount of capital that businesses and individuals need to keep at hand to protect themselves from uncertain events.

Particularly, insurance is a barometer of economic activity in a country and thus, protects the success of emerging economies.

Insurance in Nigeria can be traced back to the 20th century when Nigeria’s economy was solely dependent on agriculture. Then, there was a need for merchants to transport their cash crops to Europe

Essentially, for the Industry to survive, thrive and attain its potentials, the government must be sincere in promoting a favourable environment that will allow the financial service industries thrive. This will help increase the operational efficiency of the insurance industry. Additionally, the Industry must make concerted effort to play more actively in the real sector of the economy.

Tope Smart

and also reducing the risk of such transportation. This majorly contributed to the dominance of marine insurance in Nigeria at that time.

Despite its importance for economic development, the gross premium collected by insurance companies in Nigeria is about $2 billion compared to the $4.8 billion collected in South Africa.

In the United Kingdom, the insurance industry contributes about 20 per cent of the total Gross Domestic Product (GDP) of the country. In South Africa, the insurance industry contributes 17 per cent of the total GDP and in Kenya, the insurance industry contributes 3.4 per cent of its nation’s GDP. However, despite the astronomical growth of the Insurance companies from just one agency in 1918 – Royal Exchange Assurance Agency to the present number of 56 insurance companies as stated on National Insurance Commission (“NAICOM’s”) website, the Nigerian Insurance industry contributes a meagre 0.7 per cent of the total GDP of Nigeria.

Consequently, it will be right to say that the performance of Nigerian insurance industry is sub-optimal.

In fact, the adverse effects of flood on many farms across the country have reiterated the need for Nigerian farmers to get insurance cover to protect the risk in agriculture in order to survive the severe damages to their farm-

lands amid the consistent rainfalls.

Recently, it was reported that the N50 billion Sunti Golden Sugar Estate built by giant food and agro-allied company, Flour Mills of Nigeria Plc in Mokwa, Niger State, commissioned early this year by President Muhammadu Buhari was ravaged by massive flood, resulting in the suspension of the sugar crushing exercise originally billed to commence production last month-October.

In fact, the massive flood threatening the coming on-stream of the FMN multi-billion sugar project is expected to impede the realization of the proposed one million tonnes of sugarcane production projection.

In addition, other tales of woes in terms of flooding experiences have trailed the state of Nigeria’s agriculture following several losses of farm produce, livelihood, properties and farmlands, which have caused looming famine in some states amid the inability to harvest crops for consumption.

Hence, the need for Nigeria’s farmers to get insurance cover for their produce has become more compelling than ever.

As agric stakeholders continue to clamour for insurance cover for farm investments, there is also a need for insurance companies to become more innovative by churning out attractive products that endear them to farmers.

INSURANCE & PENSIONS

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

Insurance awareness: LCCI Tasks Insurers to adopt Cowbell Milk

BY NIYI JACOBS

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ears back, milk was exclusively for the rich, until the producers of Cowbell milk broke the jinks with the production of small sachets which put milk in the hands of virtually every Nigerian.

Those were the words of the

Chairman, Small and Medium Enterprises (SMEs) Trade Group of the La-gos Chamber of Commerce and Industry (LCCI) Abiodun Oladapo, as he implored insurance operators to design affordable policies that would endear insurance to the public.

Oladapo, while speaking at a forum organised by the Nigerian Council of Registered Insur-

ance Brokers (NCRIB) in Lagos, noted that Cowbell was able to penetrate the highly competitive milk market with affordable products, adding that the initiative forced other milk producers to repackage their products so as to compete effectively.

He implored insurers to adopt a similar strategy so as to put insurance in the hands of Ni-

gerians espe-cially those at the grassroots, adding that many businesses have collapsed because they were not in-sured.

He narrated how one of his relations invested all his earnings and even borrowed to cultivate a maize farm.

According to him, his relative having harvested the maize, bagged them in anticipation for sale when the price appreciates. While waiting for the right time, the warehouse where the products were kept was razed by fire and all the products consumed by the inferno.

He said the relative loss all his earning and went into debt as the products were not insured.

He then, implored insurers to come to the aid of small business operators by crafting affordable poli-cies and that they should also improve on insurance education as most people are yet to come to terms with the workings of insurance.

Oladapo also urged insurers to do more in the area of claims payment, adding that the public will buy insurance when they see people’s business restored through insurance mechanism having been af-fected by disaster.

President, National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCI-MA) Iyalode Alaba Lawson, implored insurance operators to take their services to people at the infor-mal sector, unite and work closely with their colleagues in the Organised Private Sector (OPS).

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‘Only four states implement group life insurance’

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nly four states in the country are presently implementing the group life insurance policy for their employees, while 32 others are yet to comply with the policy WestafricaBusinessNews reveals.

The states that have complied and are implementing are, Lagos; Niger; Osun and Rivers.

According to the National Pension Commission (PenCom), stricter measures have been put in place to encourage remittance of pension contributions of employees and provisions of group life insurance for employees.

The commission maintained that in line with its regulatory mandate, applications from 207 organiza-tions seeking compliance approval were turned down due to non-remittance of pension contributions for the appropriate period and/ or non-provision of Group Life Insurance Policy for their employees.

PenCom noted that as at first quarter 2018, 28 states have enacted laws on Contributory Pension Scheme (CPS), while eight states were at the bill stage and one state is yet to commence the process of enacting a law to reform its pension system.

PenCom noted that 12 out of the 36 states had commenced remittance of contributions into Retire-ment Savings Account (RSA) of their employees, while eight states have started funding their Retire-ment Benefits Bond Redemption Fund Accounts (RBBRFAs).

The pension regulator maintained that a road map covering a period between 12 and 18 months has been developed for the engagement of Labour Unions; State Governments; State Employees and other stakeholders to positively influence state compliance.

Aisha Dahir Umar, PenCom DG

PenCom recovers N14.38bn from defaulting employers

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he National Pension Commission (PenCom) said it has recovered N14.38 billion, comprising principal contribution of N7.48 billion and penalty of N6.96 billion outstanding pension contributions from defaulting employers since it engaged the services of recovery agents.

The pension regulator stated this in its second quarter 2018 report, adding that it has maintained the services of 14 recovery agents for the recovery of outstanding pension contributions from defaulting employers.

“Following the issuance of demand notices to defaulting employers whose liabilities had been established by the Agents, some employers had remitted the outstanding pension contributions and the corresponding penalties.

“During the quarter, the sum of N465.02 million representing principal contribution of N335.70 million and penalty totaling

N129.32 million was recovered.

This brought the total recoveries made to date to N14.38 billion comprising of principal contribution of N7.48 billion and penalty of N6.96 billion,” it said.

Furthermore, the commission noted that in the quarter under review, it received a total of 5,634 applications for issuance of pension clearance certificates, of which certificates were issued

to 5,427 organisations, while 2017 firms were turned down due to non-compliance of pension contributions for the appropriate period and non-provision of group life insurance policy for employees.

It posited that N49.31 billion was remitted to the Retirement Saving Accounts (RSAs) of 71,386 employees by the 5,427 organizations to whom certificates were issued.

NAICOM seeks collaboration to reduce insurance gaps

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he need for collaboration towards reducing insurance gaps in developing nations cannot be overemphasized, the National Insurance Commission (NAICOM), has said The Director Inspectorate, National Insurance Commission (NAICOM), Pius Agboola, who said this at the Risk Frontiers West Africa 2018 in Lagos, identified some areas where there are still gaps to be filed by insurers.

According to him, these areas include, natural catastrophes; Cyber crimes/ risks; healthcare; pensions and emerging risks.

On steps taken by NAICOM to bridge these gaps, he noted that the regulator had introduced micro insurance; issues two Takaful insurance licenses; Bancassurance partnership with conventional banks while with microfinance banks is in progress; partnership with relevant agencies

and state governments on compulsory insurances implementation is in progress.

Other steps according to him are, distribution channels which is being expanded; co-ordination with relevant government agencies for effective insurance of government assets and partnership with relevant government agency(NIRSAL) on agriculture index insurance.

He said the commission had engendered partnership with the operators on

awareness creation through the medium of Insurers’ Committee; partnered foreign development agencies for sponsorship And reinforced its zonal/ branch offices on insurance education at their domain.

Agboola stated that the regulators is also encouraging specialization; strengthening insurer’s capacity; improving insurance penetration; attracting foreign investment and encouraging healthy competitions.

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WESTAFRICA BUSINESSNEWS

ICT

NOVEMBER 5 - 9, 2018

TD Mobile, MTN, 3 others enable flexible payment devices

BY ONIOVOSA DIEJOMAOH

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e c h n o l o g y Distributions (TD) Mobile has unveiled a revolutionary, technologydriven device financing scheme to enable Nigerians from all walks of life own high-end devices.

The scheme which is in partnership with MTN Nigeria, PayJoy, Samsung and Sterling Bank, will enable Nigerians pay for devices at flexible installments.

The Managing Director,

TD Mobile, Mrs Gozy Ijogun, said in a statement in Lagos, that the scheme was an opportunity to deepen smartphone penetration in the country. ”With TD’s agility, millions of Nigerians are assured of the constant availability of the devices at multi-ple locations and in every MTN store nationwide. ”We are delighted at this development, as it will not only empower more Nigerians to own devices that are hitherto out of their reach, but will also boost

smartphone penetration in Nigeria,” Ijogun said.

The General Manager, PayJoy Africa, Dominique Friedl, said that the revolutionary nature of the de-vice financing scheme relied heavily on technology in creating a seamless process for subscribers.

Friedl said that PayJoy’s mobile locking technology and data science enabled financial inclusion for bil-lions worldwide. ”Our secure mobile locking technology and world class data science enables

people in emerging markets worldwide to qualify for smartphone financing and cash loans that would otherwise be unavaila-ble. ”You do not have to be a working-class Nigerian or salary earner to subscribe to this scheme or own that desired device. ”All you need to do is walk into the nearest MTN store,” he said.

The scheme will be available in designated MTN stores in Lagos, Abuja and Port Harcourt during the week.

MTN Nigeria’s Senior Manager, Data and Devices, Abiodun Ajayi, said that the offer stood out from other device financing schemes due to the convenient, flexible and value-adding benefits it provided to subscribers.

Ajayi said that there were loads of freebies and incentives to help interested customers derive more value. ”These include free 2GB data every month and access to a suite of MTN offerings such as MTN Pulse, MTN Music Plus and many others,” he said.

Shina Atilola, the Group Head, Strategy and Innovation, Sterling Bank urged Nigerians to sign up for the offer, notwithstanding their social status.

Atilola said that Sterling Bank was committed to ensuring that the devices were readily available for people’s convenience. ”The scheme is open to all classes of Nigerians and you do not necessarily have to be a salary earner to qualify, so I encourage everyone to sign up for it. ”This is one of the surest and most convenient ways to own a high-end smartphone without burning a hole in your pocket,” he said.

NCC establishes industry code to regulate internet access

BY FAREEDAH OLANREWAJU

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he Nigerian Communications Commission (NCC) says it has concluded plans to establish internet industry code of practice to regulate internet access and services in the country.

Prof. Umar Danbatta, the Executive Vice Chairman of NCC made this known at a Stakeholders’ Consul-tation Forum on the Establishment of Internet Industry Code of Practice in Abuja.

Danbatta, who was represented by Mrs Yetunde Akinloye, the Director Legal Regulatory Services (NCC) said that the code would clearly define the rights and obligations of internet access service pro-viders.

He said that the code would also put measures in place to safeguard and protect minors, vulnerable audiences and consumers as a whole.

“This envisioned as a co-regulatory effort between the commission and industry stakeholders, hence the need for extensive public

consultation and in the final document, ‘’ he said.

Danbatta said that the establishment of the code was conceived to ensure safety, security and to harness the benefits of the internet for good governance and better user experience.

He said that the Sub-

Saharan Africa had lost between seven and 20 per cent of its GDP to cyber crimes as stated by internet society, adding that it was very vital to intensify efforts to secure the country against imminent threats.

He said that NCC also considered other factors

including but not limited to online child protection, privacy and data protection, objectionable content and traffic management practices.

“The global perspective is that the internet be open and unregulated creativity and internet access. Propositions are for either self-regulation

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government regulation repressive economies.

“However, both have their advantages and disadvantages. Thus, the drive for a co-regulatory practice as it relates to the internet in Nigeria.

“Consequently, the NCC in accordance with its mandate to regulate the communications sector in Ni-geria as expressed in the Nigerian communication Act 2003 sets out to establish Internet Code of Prac-tice.’’

Destiny Amana, the President, Nigerian Internet Group, one of the stakeholders

at the event said that internet fraud was one the major problems in the country.

Amana said that there was need to protect the young and old ones online.

“Hence there is need for check and balances, which the commission is trying to put in place, ‘’ he said.

Another stakeholder, Adeboye Adegoke, the Programme Manager, Digital Earth, Paradigm Initiative called on the commission to emphasis importance of judicial oversight instead of using phase such as legal authority.

eNigeria 2018 confab will accelerate access to digital products — NITDA

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Danbatta

E-PPAN to host over 250 delegates at Payment Mr Dayo Apata, SolicitorSystems, Fraud Conference General of the Federation/

he E-Payment P r o v i d e r s Association of Nigeria (E-PPAN) says no fewer than 250 delegates will attend the 9th Annual Payment Systems and Fraud Conference on Nov. 6 in Lagos.

Mrs Regha Onajite, Executive Secretary/ Chief Executive Officer of E-PPAN, made this known on Thursday in Lagos.

Onajite said that the annual conference usually provided delegates and

or in

stakeholders the platform to discuss and proffer solutions on ways to mitigate rising cases of cyber fraud that had become the in-dustry’s greatest challenge.

According to her, a research by Michael McGuire, Senior Lecturer in Criminology at Surrey University, says globally, cyber criminals rake in at least 1.5 trillion dollars every year; which means more than one million dollars (N305,

750, 000) is lost every minute to cyber crime.

“It is this worrisome phenomenon that compelled industry stakeholders to become more concerned about how to ensure an effective, swift and well-orchestrated response to cyberattacks,’’ Onajite said.

She noted that some of the speakers expected at the event include: Mr Adedotun Sulaiman, Chair-man, Board of Trustees, E-PPAN; and

Permanent Secretary, Federal Ministry of Justice.

Onajite said that other expected speakers are: Mr Agada Apochi, Managing Director, Unified Payment Services Ltd.; and Mr Tunde Ogungbade.

Others are: Temitope Akin-Fadeyi, Head, Financial Inclusion Secretariat, CBN; and Olayinka David West, Research & Academic Director; Lagos Business School.

s Nigeria strives to increase its digital presence in the global economy, the National Information Technology Development Agency (NITDA) says the 2018 eNigeria conference will accelerate access to digital products.

NITDA made this known in a statement issued by Mrs Hadiza Umar, the Head, Corporate Affairs and External Relations of the agency, in Abuja.

According to Umar, the 11th edition of the eNigeria event scheduled to hold from Nove. 5 to Nov. 7, would enhance digital products and strive towards positioning Africa as the largest single digital market by 2020.

“The 11th Edition of eNigeria is to accelerate the development of, and access to digital products and services to citizens thereby, creating Africa’s largest single digital market by 2020”.

Umar said that the event, with the theme “Promoting a Digital Economy in an Era of Emerging Technologies through Effective

Regulations” is expected to be declared open by President Muhammadu Buhari.

“President Buhari will further advance the agenda for promoting digital economy, emerging technologies and effective regulations as basis for Nigeria’s entry into the digital economy.

“The theme is a response to the complex mix of digital opportunities and challenges driven by the in-creasing influence of emerging technologies on the socio-economic aspect of our society.”

She further said that since the maiden edition of eNigeria in 2007, it had attracted over 25,000 partici-pants, including local, international leaders of thought from business, government and academic communities.

Umar noted that topics to be discussed at the conference would include `Key Conditions for Unlocking Nigeria’s Digital Market Opportunities, Leveraging Disruptive Technologies to Grow Key Sectors and Industries.

ECOWAS

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

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ICRC to unveil ECOWAS International Humanitarian Law action plan

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he International Committee of the Red Cross (ICRC) said it has concluded plans to unveil the Economic Community of West African States (ECOWAS), International Humanitarian Law action plan from 2019 to 2023.

Communication Officer, Environmental Scanning and Media Relations, ICRC, Mrs Esther Akpa who disclosed this in a statement in Abuja, said the event would hold on Nov. 2 at the ECOWAS Parliament.

She said the ICRC has been working with member states of the ECOWAS for the past 17 years to ensure that the respect for International Human Rights Law forms part of their national legislature.

Akpa stated that the action plan to be unveiled would guide the activities of the ECOWAS towards the respect for and implementation of International Humanitarian Law (IHL) treaties for all 15 member states.

“The meeting would include experts’ release and validation of 2019 to 2023 ECOWAS IHL Plan of Action which will guide its activities towards respect for and implementation of IHL treaties for all 15 member states.

“There will be an annual review meeting which will examine the progress of member states in implementing IHL treaties and also technical support for the domestication of such treaties at the national level,’’ she said.

She added that remarks would be delivered by the ICRC head of delegation, the Hon. Minister of Foreign Affairs and the Chairman of the ECOWAS Authority heads of state and government, among others.

Geoffrey Onyeama

FG summons envoy over closure of Nigerians’ shops in Ghana T he Ministry of Foreign Affairs, has summoned the High Commissioner of Ghana to Nigeria, Amb Rashid Bawa, over the continued closure of over 400 Nigerian shops in Ghana.

Foreign Affairs Minister Geoffrey Onyeama said the Ghanaian envoy was invited to give a definitive explanation on the treatment of Nigerian traders in that country.

The closure of over 400 Nigerian businesses in Ghana had sparked protest by National Association of Nigerian Traders (NANTS) and Nigerian Union of Traders Association Ghana (NUTAG).

Onyema said: “There had been some horror stories that we have been hearing and a case of suicide of Nigerian lady and when this broke out the Minister of Foreign Affairs of Ghana came here.

“And we were assured that Nigerians were not the target and that efforts were being made to calm the situation.

“Again in New York, assur-

ances were made by President Nana Akufo-Addo and we were shown the text that the shops that have been closed that belong to Nigerians would be reopened He noted with concern that there were, however, conflicting reports on the reopening of Nigerian traders’ shops in Ghana.

Onyeama said that a committee was being set up at a highest level in Nigeria to look into the matter and to look at how, as a government, how to respond to the situation.

“And, we said as part of understanding of what the situation is now legally and factually, to give this opportunity to brief us on the current situation,” he said.

He said “the Ghanaian envoy was invited to give the opportunity to brief us on current situation” on the closure of Nigerian businesses in that country.

The High Commissioner, in his response, said he visited the areas that experienced by Nigerian traders. distress

Bawa confirmed that about 80 to 85 per cent of shops that were locked had been re-opened and that the exercise was still ongoing.

He said the Ghanaian authorities were also making efforts to ensure that Nigerian traders who were conducting businesses in Ghana were registered and had resident permits.

“I was in Accra at the invitation of the president to go and have a look at what was happening on the ground.

I spent two days on the ground, meeting with all stakeholders.

“Some of the shops at the time I visited 10 days ago have been opened. Some have not yet been opened. Opening of shops are still ongoing as we speak.

“Those that have not been opened are locked because owners were not present at their shops. GUTA wants to open the shops in the owners presence.

“With these shops opened, I can say that about 80-85 per cent of shops that were locked have been opened.

We insisted that before shops are

opened, the owners should be there.”

The envoy also dismissed reports that a Nigerian in Ghana, Mrs Stella Upaleke, committed suicide because of frustration occasioned by the closure of her shop.

“I was with the regional police commander where the issue happened. The police statement, written by the husband and daughter of the woman, indicated that the suicide was not as a result of the lock-up of her shop,” he said.

A former Secretary General of Nigerian Union of Traders Association Ghana (NUTAG), Mr Jasper Emenike, confirmed that some shops had actually been re-opened.

He, however, said that some Nigerian traders refused to show up because of harassment by Ghana Union of Traders Association (GUTA).

Emenike therefore appealed to the Ghanaian authorities to reduce the cost of registering business and totally exempt Nigerian traders from the Ghana Investment Promotion Council (GIPC) Act.

FG assures ECOWAS of fiscal policies to encourage investments

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he Minister of Finance, Mrs Zainab Ahmed, says the Federal Government will continue to deploy fiscal policies that will protect its industries and also encourage investments in critical sectors of the economy.

She gave the assurance at the opening of the fourth meeting of the ECOWAS Finance Ministers on the consolidation of Economic Community of West African State (ECOWAS), Customs Union in Abuja.

According to a statement issued

by Paul Abechi, the minister’s Special Assistant on Media and Communications, Ahmed is quoted as saying that the policies will also promote local production.

“This is with a view to achieving the effective implementation of the country’s Agricultural Promotion Policy (APP) and the Nigeria Industrial Revolution Plan (NIRP) within the transitional period of five years of implementation of the CET (2015-2019).”

Ahmed said this was without

prejudice to the spirit of regional integration and free trade protocols since Nigeria had been in the forefront of supported trade policies.

“Like every developing economy, Nigeria’s vision to industrialise is very strong.

“Accordingly, we believe ECOWAS Common External Tarrif (CET) should be designed to promote regional industrialisation in a manner that on the long term reduces dependence on imports.

“We will continue to work within ECOWAS to achieve these laudable objectives.

“Nigeria believes fervently that ECOWAS regional policies such as the CET, the Customs Union and other fiscal policies should aim seriously at achieving economic growth and industrialisation for member states, while reducing import dependency.”

According to her, the economies of scale that result from successful integration should serve as catalysts for economic development of the region.

Ahmed said that Nigeria believed that West Africa, while desiring integration into the global economy, should diversify its economy through manufacturing, processing of primary products and other forms of economic modernisation.

She also said that Nigeria undoubtedly supports a regional common tariff and a customs union for ECOWAS as major steps toward the achievement of the objective for which the commission itself was established.

The minister declared Nigeria’s unflinching commitment to the success of the ECOWAS project, particularly in the areas of trade liberalisation and economic integration.

“Nigeria’s current economic policies, in several aspects, seek to identify with and actively participate in the effort to achieve regional economic development through cooperation.

“In this regard, Nigeria effectively commenced the implementation

of the ECOWAS CET in April 2015, with additional measures under the ECOWAS approved Supplementary Protection.”

She said that some of the measures taken include: an Import Adjustment Tax (IAT) list which involves additional taxes on 177 tariff lines of the CET 2015-2019.

Others are a national list consisting of items which import duty rates have been reviewed downwards to encourage rapid development in strategic sectors of the economy and an import prohibition list (Trade) applicable only to certain goods originating from Third World Countries.

The minister, however, advocated for more control on tobacco in the subregion to minimise the health hazzards associated with tobacco.

“In particular, we hold the belief that the establishment of a track and trace system for manufactured and imported tobacco products represents ECOWAS’ genuine desire

to enthrone best practices in tobacco taxation and control the public health hazards of these products.”

On taxation, she said that the draft regulations on an ECOWAS Tax Treaty Model and Mutual Assistance in tax collection could potentially ease tax treaties negotiations among the member states.

She also said they could eliminate tax evasion/avoidance within the region, encourage tax audit and exchange of tax information and enhance regional integration.

“As a matter of fact, these regulations will also assist to deepen the integration of the region with the global strategies to improve public revenue through the elimination of tax malpractices.”

“I wish to assure you of Nigeria’s commitment to a sustainable, functional regional economic integration project that will, in the long run, facilitate economic growth and social prosperity for the people of West Africa.”

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Over 3000 Foreign Exhibitors to Participate In Kano Trade Fair – KACIMA President

BY MUSA DISO, KANO

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he President, Kano chamber of commerce, industry, mine and agriculture (KACIMA), Alhaji Dalhatu Abubakar that about 3000 foreign exhibitors are expected to participate in forth coming Kano International Trade fair.

Revealing that this year’s fair would be different form previous editions, Dalhatu said that 2018 edition of the fairscheduled to take place on 22nd November, 2018 at the trade fair complex is going to be unique

Kaduna crisis: Don calls for surveillance cameras to reveal criminals

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lecturer with the Kaduna State University (KASU), Malam Aliyu Yero, has urged the state government to plant surveillance cameras in some strategic locations to reveal the faces of the criminals fueling crisis in the state.

Yero, who gave the advice in an interview with the News Agency of Nigeria at the weekend in Kaduna, said that peace preaching alone would not sustain the required peace in the state unless perpetrators of the crime were brought to justice.

According to him, the cause of incessant crisis in the state was as a result of perceived injustice by some people within the state who felt they had been wronged.

“Preaching peace does not work for people who feel they have been wronged, because the perpetrators who destroyed their property and killed their loved ones are not brought to book.

“This makes some people to nurse hatred and start planning for reprisal attack, whenever they get the opportunity to do so,” he said.

The lecturer, who is of the Political Science Department of the institution, added that lack of effective surveillance system in violence prone areas in the state had made it easier for criminals to escape justice.

He said that planting such camera could be planted on major roads, markets and other sensitive locations in the area.

Yero also urged security agents to be proactive in tackling violence rather than the often reactive

because all the stakeholders have agreed to participate actively on the annual event.

Speaking to Journalists in Kano, the KACIMA president said Kano state chamber of Commerce is

one of the foremost chamber of commerce in Nigeria and founding member and pioneer signatory to National chamber of commerce and industry, mine and agriculture (NACCIMN) which presently

it has over 3000 member and professional establishments.

Dalhatu further explained that when he took over the leadership of the chamber a lot has been achieved and we have introduced a system

where everybody was carried along and nobody is left out.

He urged the member of the chamber to work hard in order to actualise our dream as one of the foremost chamber in the country.

Kaduna earmarks N23.2Bn for capital projects in 2019 T he Kaduna State Government has earmarked N23.2 billion in its 2019 budget for execution of capital projects in the education sector.

The figure is part of the 2019 proposed budget obtained from the state’s Planning and Budget Commission, on Friday.

The proposed budget currently before the state house of assembly however indicates that the amount is N9.7 billion lower than the N33 billion allocated to the sector in 2018.

A breakdown of the figure shows that N12.1 billion would go to ministry of education science and technology and N5.9 billion would go to the State Universal Basic Education (SUBEB).

The budget also provides that N4.04 billion would go to Kaduna State University, N529.1 million to Kaduna State College of Education, Gidan Waya and N428.3 million to Nuhu Bamali Polytechnic Zaria.

Also, N192.7 million is allocated to the Library Board, while N1.9 billion goes to Kaduna State

Gov El-Rufai

Scholarship Board.

According to the document, the education ministry is expected to spend N8.8 billion on primary and secondary school rehabilitation and provision of equipment and N1.9 billion on Global Partnership for Education.

N1.1 billion will go into development of web portal for ICT services and multimedia/ video conference centre, while N7.2 million will be spent on development of three computer-based test centres ;

one in each senatorial district.

A total of N200 million is equally earmarked for Teacher Development Programme, a DFID joint project, and N152.1 million for fencing of governmentowned institutions.

“The construction of six science secondary schools, with support from Islamic Development Bank (IDB) would gulp N57.4 billion.

“Provision of school uniforms for students across the state got N27.3 million, while N75.9

million would supply of furniture to secondary schools across the state.

“Similarly, N731 million was earmarked for interventions to improve the nutrition of primary school pupils, Islammiya and Quranic education boarding school pupils, 31 boarding secondary schools.

“Supply and installation of LPG tanks, burners and industrial boiling pans in 29 boarding secondary schools got N37.3 million,” the document indicated.

Dangote sets to link Kano varsity to national grid

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he richest man in Africa, Alhaji Aliko Dangote is to link the Kano University of Science and Technology (KUST) Wudil to national grid as part of effort to enhance power supply in the institution.

Already, survey on the project which is expected to gulp over N200 million had commenced.

The Vice-Chancellor of the University, Prof. Shehu Alhaji-Musa disclosed this while briefing newsmen in Kano.

He said that when completed, the project would improve the existing pow-

er supply in the entire university as well as enhance teaching and learning.

The business mogul, who is the Chancellor of the University, had also acquired land for the construction of 15 residential houses for 15 foreign professors he sponsored to teache in the university.

“Aliko Dangote has already acquired 15 plots of land to build housing units for the Professors so that their accommodation will be ready when they arrive in the country in January 2019.

“A part from sponsor-

ing the employment of the 15 foreign professors, he has also promised to offset the salaries and other entitlements of the professors for four years,” he said.

Similarly, Dangote is building two Industrial boreholes with the capacity of 15,000 each.

According to the Vice-Chancellor, the Chancellor of the university had acquired land for building two hostels with capacity to accommodate 500 students each.

This, he said would ease the hostel accommo-

dation challenges faced by students of the university.

He disclosed that the university had within the last three years secured the accreditation of 21 of its programmes with 19 having full accreditation while the remaining two have interim accreditation.

“Iam happy to inform you that there is no single course being run by the University that does not have accreditation by the National Universities Commission (NUC),” he said.

The Vice-Chancellor said two of the three new faculties would commence operation

Nasarawa lawmaker offers free hepatitis screening, testing to constituents

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lhaji Ibrahim Muluku, member representing Nassarawa Eggon East constituency at the Nasarawa State House of Assembly, has sponsored free screening and testing for hepatitis B and C for his constituents.

Declaring the three-day free outreach opened in Nasarawa Eggon on Friday, Muluku said it was designed to improve the health status of his people.

He explained that the free medical outreach was also targeted to help the needy by bringing healthcare services closer to them.

The outreach is in collaboration with Beaconship International, an NGO, in which about 400 people are expected to benefit from the programme.

According to Muluku, the outreach would also assist his constituents to know their hepatitis status and get treated free of charge.

“Hepatitis is a deadly disease, hence my desire to organise the programme for my people because a healthy nation is a wealthy nation,” he said.

Muluku advised his constituents and Nigerians at large to give priority to routine medical check-up in order to enable them detect early infection of diseases in their body.

He added that routine medical check-up is necessary in order to detect early infection of diseases as well as to keep the body more healthy.

The lawmaker also encouraged his constituents to embrace physical exercise for good health and for the overall development of the country.

The assemblyman promised to provide more developmental programmes to the people of the constituency in order to better their standard of living.

The Coordinator of Beaconship International, Dr Silva Itoro, commended the legislator for sponsoring the programme.

He said that after the screening and testing, those who have been confirmed negative would be given vaccine for three months and those found positive would be administered with proper medication.

Responding, Sule Andah, the District Head of Alizaga in Nasarawa Eggon Local Government Area of the state, lauded the lawmaker for the gesture and called for its sustenance.

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

World Stroke Day: Over 1,000 screened for stroke in Anambra

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o fewer than 1,000 persons have been screened for stroke at the First Stroke Risk Assessment Symposium organised at Otuocha, Aguleri in Anambra East Local Government Area of Anambra.

The symposium was organised by the Office of the Senior Special Assistant to Gov. Willie Obiano on Health, in collaboration with Stroke Investigative Research, Education Network and Blossom Centre for Neuro-Rehabilitation.

The symposium entitled “Promoting Good Health and Wellbeing (SDG3) by creating Awareness on Stroke”, was part of activities to mark this year’s World Stroke Day commemorated on October 29.

Delivering a lecture at the event, Prof. Mayowa Owolabi, the Dean, Faculty of Clinical Sciences, University of Ibadan, described stroke as the second killer disease in the world.

Owolabi, represented by Dr Kingsley Nwankwo from the Stroke Control Innovation Initiative of Nigeria, advised people against all the risk factors that could metamorphose into stroke.

The professor said that high blood pressure, too much intake of alcohol and salt, stress, obesity, depression among others, could lead to stroke.

According to him, statistics have shown that one in every adult above the age of 25 years is hypertensive.

He harped on the need for regular checkups, eating of balanced diet and regular exercises, to escape the risks associated with stroke, adding that stroke could be managed, if detected early.

The Senior Special Assistant to Gov. Willie Obiano on Health, Mrs Kate Edozien, explained that the symposium was organised to complement the efforts of the state government in the health sector.

“A health risk assessment is a powerful screening tool, which is often the first step to any medical diagnosis implemented to gain a clear understanding of the population’s evolving health status and risks.

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National integration: FG celebrates New Yam festival in Enugu

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he Federal Government says promoting indigenous culture and festival will facilitate national integration and economic diversification through cultural tourism meant to promote progress, peace and unity in the country.

Acting Executive Secretary of National Institute for Cultural Orientation (NICO), Louis Eriomala said this in an address at the Federal Government New Yam Festival (Iri Ji) Celebration in Enugu.

NICO is a parastatal agency under the Federal Ministry of Information, Culture and Tourism.

Eriomala said that the Federal Government’s investment in culture and promotion of heritage of Nigerian people had further proven that the country is one indivisible entity.

“We have a unique culture that is predicated by wisdom, knowledge, hard work, honesty, fear of God, accountability, transparency, communal life as well as respect for elders and constituted authority.

“These positive attributes of our culture are waning because of our love for western culture that is not restrictive.

“It is therefore, pertinent to state that the celebration of the New Yam festival is part of the efforts of NICO and by extension

the Federal Government, to revive and promote this cherished culture of the Igbos.

“This is in line with the mandate of NICO, which is to promote indigenous culture, heritage and history.

“It is our desire to see how this rich festival and a host of others can be used to further foster unity, peaceful coexistence and unity in diversity in the country,’’ he said.

Mr Nnaemeka Nwajagu, Head, NICO Enugu State Office, said that it was wrong to describe some of the cherished culture in Nigeria as fetish as some religious sect think.

He, however, added that culture should be separated

from idol worship or rituals.

“In Igbo-land, New Yam festival comes with a lot of positive outcomes to better the people, as our people see it as a unifying factor, where reconciliation is put on the table to settle dispute and bring people together notwithstanding perceived differences,’’ Nwajagu said.

He noted that the Federal Government’s New Yam Festival had come to stay as a yearly event, adding that the 2019 edition would be bigger and more encompassing.

Igwe Lawrance Agubuzu, Chairman, Enugu State Traditional Rulers’ Council, noted that the festival was

meant to thank God for a bountiful harvest in 2018 as well as life and health, to witness another end of a successful farming season.

“New Yam festival is a positive and progressive culture handed to us by our forefathers and we will hand it over to the up-coming generation to continue to reap its good benefits for Igbo-land and Nigeria in general,’’ he said.

The Chairman of the occasion, Igwe Chris Eze, appealed to the Federal Government to involve more corporate organisations to celebrate Nigeria’s own culture; and not just western

festivals like Christmas and Valentine’s Day, among others.

Eze, the traditional ruler of Ezeoha-na-Ideoha Community in Enugu State, however, urged Igbos to always find a way of promoting their culture, to create a distinctive identity.

Chief Ben Nwankwo, Member Representing Orumba North and Orumba South Federal Constituency in Anambra, commended the Federal Government for coming out to identify with the people as well as to organise the New Yam Festival.

“I wish that by celebrating this festival, a large number of Nigerians from other ethnic groups should attend this event and learn more about this cherished culture; so that they can promote New Yam and other cultures in their various ethnic homes.

“Northerners can be supported to come to the East and witness and learn about New Yam Festival; while people in the East can also have a similar cultural exchange to the North.

“This will definitely bind us closely together as one nation,’’ Nwankwo, who was awarded “Cultural Ambassador’’, advised.

Chief Chijioke Harford, one of the awardees of “Cultural Ambassador’’ also noted that Nigerians should be proud to promote and propagate positive and progressive culture anywhere they find themselves in the world.

Community Leader Cautions Against Desecration Of Igbo Tradi-tional Heritage

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ost of the problems experienced by individuals and families in Igbo land have been attributed to the desecration of some vital Igbo traditional heritage which was instituted by the ancestors as designed by nature to protect and guarantee a happy life style for generations.

The revelation was made yesterday by HRH and Igwe Council, Anambra East Local Government Area of Anambra State, Chief Sir John Iwuno (KSJI).

Chief Iwuno who hails from Nando community told our correspondent

that with the incursion of Chris-tianity and colonialism Africans were deceived into rejecting and desecrating their own traditional be-liefs which worked for them in the past and embraced foreign cultures and traditions which were alien to their communal existence.

He stated that even foreign religion has openly become prominent in Igbo land today, most of the suc-cessful men and women who still parade themselves as Christians with significant involvement in church activities still partake in some traditional beliefs, but exercise their beliefs

secretly in order not to attract criticisms from other church members.

The community leader who is highly respected in his community and Anambra East Local Government because of his philanthropic disposition to the people of the area observed that Igbos should use their traditional beliefs effectively to solve most of the problems facing them, while also using western reli-gion and civilization to improve the standard of living of the people.

Giving a graphic picture of the progenitor of the community, ‘’ Nando ‘’and the mystery

surrounding his birth, Chief Iwuno stated that Nando community has for so long been known for her expertise in herbs and roots which he noted was recently transformed into production and merchandise on mod-ern drugs, while still practicing the traditional herbs and roots which he maintained was still a source of income to some indigenes.

He stated that most successful people in the community today achieved success by training their chil-dren in school through the practice of their traditional beliefs as herbalists and native doctors.

He further revealed that Nando, the progenitor of the community was reported to have been born clinging herbs and roots in his fists, signifying that the community was naturally designed to be great in medicine which she still retains today in Igbo land.

He, however, lamented that most of the social vices such as human rituals, murder, youthful death, strange ailments, family economic woes, incest, among others confronting Igbos were as a result of the wrath of spirits that were rejected and desecrated by the so-called modern life style of the peo-ple.

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WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

Ondo awards N17.38Bn projects in South Senatorial district

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he Ondo State Government has awarded no fewer than 390 projects worth N17.38 billion in Ondo South Senatorial district between January and September in the 2018 budgetary provisions.

The state Commissioner for Economic Planning and Budget, Emmanuel Igbasan made the disclosure in Okitipupa during a town hall meeting with stakeholders in the senatorial district on 2019 Budget.

The senatorial district comprises: Ilaje, Okitipupa, Ile-Oluji/Okeigbo, Irele, Ese-Odo and Odigbo Local Government Areas.

Igbasan said that

the projects, which cut across the district, were meant to transform the area as planned by Gov. Oluwarotimi Akeredolu.

According to him, N6 billion has been paid to the various contractors handling the projects.

The commissioner said that some of the projects include: 191 school projects executed by the State Universal Basic Education Board (SUBEB) worth over N2 billion and N5.8 billion worth of integrated rice project comprising a rice farm of 5,000 hectares at Ese-Odo Local Government Area of the district.

The commissioner also

Police arrest seven over transport unions’ crisis in Ekiti

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he Ekiti Police Command has arrested seven suspects in connection with the recent violence involving two transport unions.

The suspects are all males with ages ranging from 20 years to 32 years.

The command’s Public Relations Officer, DSP Caleb Ikechukwu, confirmed the arrest in a statement in Ado-Ekiti.

The violence by members of the state chapters of National Union of Road Transport Workers (NURTW) and Road Transport Employers’ Association of Nigeria (RTEAN) in AdoEkiti left many people wounded on Tuesday .

Ikechukwu said that the arrest followed a tiff-off.

He said that two guns, three expended cartridges, four cutlasses, a jackknife and Suzuki Mini Bus with plate number Ekiti KER 509 XA were recovered from the suspects.

The spokesman said that the crisis resulted from supremacy tussle between NURTW and RTEAN members.

“As soon as investigations are concluded, all the suspects will be charged to court,’’ he said.

He thanked members of the public who gave timely and accurate information on the incident.

He said that the information helped to secure lives and property.

Ikechukwu urged residents of the state to be vigilant and report any suspicious happenings to the nearest police station or call the control room on 08062335577.

mentioned the N4.4 billion worth of fertiliser blending plant contract being ex-ecuted at Odigbo Local Government area of the district.

He said that over N250 million was recently approved by the state governor as 2015/2016 Bursa-ry/Scholarship benefits for 5,393 undergraduate and post- graduate students from Ilaje and Ese Odo Local Government Areas through Ondo State Oil Producing Development Area Commission (OSO-PADEC).

Igbasan said that the state government was determined to have an allinclusive, robust and peopleoriented budget in 2019.

According to him, the forum is designed to seek inputs and candid opinions on the fiscal policy of the state in a bid to ensure a prosperous state.

“We need your feedback on what we have done or doing and what you feel we should do to expand the fiscal space of the state; create wealth for the people; reverse the trend of huge infrastructure deficit and in the long run, ensure better and brighter state.

“The need for robust and sound budget cannot be overemphasised. Hence, we must realise that we must challenge ourselves and be prepared to think anew; act anew and create anew through contribution of our quota,’’ he said.

Igbasan said that at the end of the process, creative ideas and initiatives that would make 2019 budget respond to the yearnings of the people would be generated.

Bunmi Alade, the Permanent Secretary of the ministry, said that if ideas and prioritised needs of the people were entrenched in the budget, it would be called People’s Budget and not Government’s Budget.

Alade noted that the new dimension was the best practice for the state, especially the present economic reality which restricted the state government from meeting virtually all needs.

In his remark, the Jegun of Idepe Okitipupa, Oba Michael Obatuga, lauded Akeredolu led-administration for coming up with the forum for the people at the grassroots to contribute to the fiscal policy of the government.

The traditional ruler

Gov Akeredolu appealed to the state government to implement all requests being tabled.

Funminiyi Olowodasa, President of National Association of the Physically Challenged in Irele Local Government Area of the district, commended the governor for his welfare programmes for the disabled and for appointing a member of the association into his cabinet.

Olowodasa appealed to the state government to employ members of the

association, especially the educated ones, into the state civil service and get others engaged in various empowerment pro-grammes.

Agbejoye Adetoye, the Chairman, Niger Delta Youth Movement (NDYM), Ondo State Chapter, said that the proposed budget should consider youth engagement in meaningful and substantive means in reducing drastically social vices, especially theft and violence.

Roads construction: Ogun spends N18Bn in eight months — Commissioner

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he Ogun Government said it had spent N18.6 billion on the construction and provision of roads across the state between January and August.

Arch.

Olamilekan Adegbite, the State Commissioner for Works and Infrastructure, said this while play-ing host to the House Committee on Works and Infrastructure, on oversight visit to the ministry in Ab-eokuta.

The commissioner attributed the slow pace of the on-going road projects across the state to the present rainy season adding, however, that the progress represented a performance of over 60 per cent.

Adegbite said that the roads included SagamuBenin express junction/ Oba-Erinwole junction road, Ilo-Awela road,

OGTV-Brewery junction road, Ilara-IjohunIlase road, LafenwaAyetoro road and EjirinOluwalogbon junction road.

He also listed AgbaraAtan road, Lusada-Igbesa township road and LusadaAlapoti road as well as reconstruction of Ilaro-Owode road amongst others.

He noted that the state government had put in place more infrastructural projects, saying that con-tractors were being mobilised to site for the construction of semi-urban roads.

“When it comes to completion of projects, we are trying to ensure that

all the roads embarked on will be taken to a logical conclusion.

“The roads are much better than the ones met.’’

He added that the Federal Government had approved the construction of Sokori River concrete chan-nel for flood control in Abeokuta metropolis.

Olusola Bankole, the House Committee Chairman, asked the Ministry to speed up construction works at the various sites across the state.

He also called for the completion of all ongoing projects before the end of the tenure of the current administration.

Osun closes two forest reserves over illegal activities

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he Government of Osun says it has closed two forest reserves in Irewole and Isokan communities over illegal activities of plank dealers.

Prince Tunde Ajilore, the Special Adviser to Governor Rauf Aregbesola on Forestry, Natural and Miner-al Reserves, made this known to newsmen in Osogbo.

Ajilore said the closure was to ensure the state’s resources were not siphoned through illegal means.

He said before the

closure, the state government had held series of meetings with the plant dealers associations to put an end to such activities, but to no avail.

“Some eminent personalities have intervened, but the association members have refused to embrace peace,” Ajilore said.

He said the state government would not reopen the reserves until the dealers complied with the laws of the state, adding that the state government would not hesitate to deal

with anyone found wanting.

Mrs Yemisi Adetipe, the state Task Force Officer for Forest Reserves, said that offenders would not escape the wrath of the law.

Adetipe said the primary responsibility of the ministry was to mobilise revenues for the state to boast its internally generated revenue.

She called on stakeholders in the forestry, natural and mineral reserves sector to be calmed as the state government was on top of the situation.

Gov Aregbesola

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

Kill rodents to avoid Lassa fever, ministry advises Edo residents

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he Ministry of Health in Edo has advised residents to kill rodents to prevent the outbreak of Lassa fe-ver in the state.

The State Health Education Officer in the Ministry, Mrs Helen Ehigie who gave the advice in in Benin, said Lassa fever is an acute viral haemorrhagic illness caused by Lassa virus, a member of the arena vi-rus family of viruses.

She said that Lassa fever is transmitted to humans from contacts with food or household items con-taminated with rodent excreta.

Ehigie described the disease as endemic, especially in the rodent population in parts of West Africa.

The health education officer said that the ailment could cause bleeding in eight out of every 10 per-sons infected with the virus.

“If it affects the liver, kidneys, or spleen, it can be fatal.

“It is spread through the excreta and urine of the multimammate rat (Mastomys natalensis),” she said.

Ehigie said that Lassa fever was first discovered in Nigeria when two missionary nurses became ill with the virus in 1969.

The state health educator said that the Lassa fever symptoms include bleeding in the gums, nose and eyes, difficulty in breathing, cough and swollen airways.

She described the other symptoms of the ailment as vomiting and diarrhea with blood, difficulty in swallowing, hepatitis, swollen face, pain in the chest, back and abdomen.

Ehigie warned Edo residents against unhealthy living, dirt around the environment and exposure of food.

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Army begins ‘Crocodile Smile III’ in Bayelsa, Delta Urges calm

Donates foods to flood victims

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he 16 Brigade of the Nigerian Army has commenced `Operation Crocodile Smile III’ exercise across some states of the Niger Delta, to stem the tide of pipeline vandalism in the region.

Maj.-Gen.Jamil Sarham, the General Officer Commanding (GOC) 6 Division, Port-Harcourt, said the 2018 operation would not be different as officers and soldiers had been advised to abide by the rules.

The GOC donated food items to over 2000 flood victims in Delta in order to alleviate their plight.

He presented the items on Saturday.

The donation was made to the victims at an Internally Displaced Persons (IDP) camp at OgbeIjoh, Warri South-West Local Government Area.

The army boss said that the succour came at the instance of the Chief of Army Staff (CAS), Lt.-Gen. Tukur Buratai.

“The CAS sympathised with the victims of the recent flooding that ravaged houses and brought some untold hardship on them.

“He has also directed

Gen Buratai that you consider what he called “Operation Crocodile Smile Three 2018’’. It means keeping the people safe,’’.

The items donated included; bags of rice, garri, vegetable oil, several cartons of Indomie and table wa-ter.

The “Operation Crocodile Smile Three 2018’’ was flagged off on November 1 in Bayelsa while that of Delta started on November 2.

Sarham said that

professionalism would be showcased during the operation in the states under divi-sion — Akwa Ibom, Bayelsa, Delta and Rivers.

He commended Gov. Seriake Dickson of Bayelsa for providing the needed support to the army and other security agencies in the state.

Sarham assured the general public that the navy and army would be peaceful during the

conduct of the operation.

Also speaking, Brig.Gen. Kevin Aligbe, the Commander, 16 Brigade, Nigerian Army in Yenagoa, said the operation was being conducted under the directive of the Army Chief of Staff.

Aligbe said that the Brigade had visited two Internally Displaced Persons’ (IDPs) camps in Igbogene and donated relief materials sent from headquarters.

“In line with the Army Headquarters Training Directive for Year 2018, we have commenced preparations that started on October 22, with multi-agency show of force within Yenagoa metropolis and be-yond.

“Today, we have gathered here at the second army headquarters Nembe for the flag-off of our en-gagement to dominate the water.

“In doing so, we are very much aware of the expectations of the GOC, Chief of Army Staff and the general public of our conduct during period of operation.”

He said that at the end of the exercise, they would want to achieve success in order to undertake fu-ture tasks and challenges as the yuletide season approaches.

In his remarks, the Bayelsa governor urged the public to support and collaborate with the army to achieve the aim of the operation.

Represented by the Secretary to the State Government, Kemela Okara, Dickson described the army as a very critical component of the country, especially in the area of security.

FG calls to revive peace committees between Cross River, Ebonyi states

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ederal Government has called for the resuscitation of peace committees between Cross River and Ebonyi states.

A statement signed

by Kabir Isa, Resident Information Officer, National Boundary Commission, in Abuja on Friday stated.

Isa said in a bid to curtail the hostilities among communities of the boundary corridor between the two states , a joint consultative meeting of stakeholders on the boundary management was held in Abuja.

He said the meeting, which was convened by the commission was attended by the Deputy Governors

of Cross River and Ebonyi states, Prof. Ivara Esu and Eric Igwe, respectively.

“In a communique read by the Director-General of the Commission, Dr Muhammad Ahmad, it was re-solved that all forms of hostilities and violence along the boundary must be stopped forthwith.

“The communique stressed the need to resuscitated the peace communities earlier constituted and be made functional.

“Relevant officers of the two states should be appointed from the offices of the deputy governors, to coordinate the engagements of the affected communities

in ensuring peaceful co-existence. ” Isa said the meeting also recommended the setting up of the security personnel task force to monitor and ensure compliance with all resolutions jointly agreed.

He added that it was agreed that in the meantime, the two state governments must ensure all activities at the Erei Palm Plantation were stopped pending the resolution of the matter ‎.

“The communique advised the three communities in the Erei Palm Plantation comprising Ekoli Edda in Afikpo South Local Government Area of Ebonyi State.

“Egbor and Urugbam in Biase Local Government Area of Cross River State, to resume peacefully, their traditional mode of sharing products of the plantation.

He said there was a call on the National Emergency Management Agency and the National Refugee Commission, to speedily intervene in the issue of resettlement of the internally displaced persons in the area.

He added that security agencies should also ensure the issue of disarmament was rounded off within 90 days from the day of the meeting.

Isa said that two deputy governors of Cross River urged traditional rulers not to relent in

preaching the need for peaceful coexistence among the people.

He said the Ebonyi State deputy governor said peace was the only alternative to achieve any meaning-ful development.

The statement quoted Ahmad as commending the governors of the two states for their commitment to finding a lasting solution to the crisis, urging them to promptly implement the cross boarder projects in their respective states.

He said some senators, members of the House of Representatives as well as traditional rulers and representatives of security agencies were also in attendance at the meeting.

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WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

Ekiti PDP Reps Caucus disowns call for State Exco Restates loyalty to Fayose

BY ENYI MOSES

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he Peoples Democratic Party’s (PDP) five House of Representatives members from Ekiti State have expressed their confidence in the leadership of the Chief Gboyega Oguntuaseled State Exco of the party, dissociating themselves from the Saturday meeting of some stakeholders held at the instance of the Senate Minority Leader, Biodun Olujimi, which called for dissolution of the State Party Exco.

The House of Representatives

members, Kehinde Agboola (Ekiti North I), Thaddeus Aina (Ekiti North II), Ayo Oladimeji (Ekiti Central I), Segun Adekola (Ekiti South I) and Akin Awodumila (Ekiti South II) also reiterated their loyalty to the immediate past Governor of the State, Ayodele Fayose, saying; “there is no leadership vacuum in the PDP in Ekiti State, those desperate for political leadership should wait for their time.”

They called on the Senate leadership to call Senator Olujimi to order so as to avoid crisis capable of af-fecting the party’s chances in the 2019 general elections.

The House of Representatives members said; “While we agree that individuals or groups have rights to hold meetings, we are miffed that Senator Olujimi was taking her selfish agenda of collapsing the party structures to the extreme.

“We were not consulted before the meeting was held and most of those who attended the meeting were those who worked against our party in the July 14 governorship election. Some of them were even governorship candidates of other parties, and collectively, they could not get up to 1,000 votes in the election.

“Also, leaders like Chief Bola Olu-Oju who attended the meeting

innocently have started dissociating themselves from its outcome and by Saturday, this week, a proper meeting of stakeholders will be held in the State.

“Most importantly, is Senator Olujimi also claiming leadership of the PDP in the South-west since they she is the ranking elected official in Ekiti State and the South-West?”

We therefore call on our party’s members and teeming supporters to disregard the meeting and its outcome, bearing in mind that it was a gathering of dissidents, most of whom contested the July 14 governorship election under other parties with some of them getting less than 200 votes.”

APGA assures 100% vote for candidates in Ogbaru LG — Chieftain

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he All Progressives Grand Alliance (APGA) in Ogbaru Local Governemnt of Anambra has said it would ensure all votes in council go to the candidates on its platform in the 2019 general election.

Chairman of the council, Arinzechukwu Awogu said this while addressing newsmen after he met with APGA stalwarts in Ogbaru on Sunday.

Awogu said the he had been able to reconcile party faithful in the council after the disagreements from the primary election, adding that they were now in one accord.

According to him, the APGA candidate for Anambra North Senatorial District, Ogbaru Federal Constitu-ency and Ogbaru 1 and Ogbaru State Constituency are assured of victory in Ogbaru.

“APGA is Ogbaru and Ogbaru is APGA, we are not going to lose one vote to any other party, we have resolved for total victory for all our candidates in Ogbaru.

“We have overcome the misunderstandings within the party in Ogbaru and the stakeholders have re-solved to deliver all APGA candidates in the general elections.

“This local government is a deciding factor, Sen. Stella Oduah, candidate of the PDP is from Ogbaru, but because she is not our candidate she will not get our votes.

“We shall vote Chief John Emeka for Senate 100 per cent, Mrs Chinwe Nwaebili for House of Repre-sentative and the two candidates for Anambra House of Assembly,’’ he said.

Awogu said APGA had done well as government in Anambra under the leadership of Gov. Willie Obiano in terms of economic prosperity and security of lives and property.

According to him, having benefited from the purposeful leadership of APGA government in Anambra, we shall ensure that those who are candidates of the party are elected to ensure continuity.

Fayose

2019: Politicians using religion to divide Nigerians, says cleric

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he Senior Pastor, Father’s Touch Ministry Church, Nyanya, Abuja, Pastor Evans Idoko, has accused some politicians of using religion and ethnicity to divide Nigerians ahead of the 2019 election.

Pastor Idoko made the allegation in an interview with the News Agency of Nigeria on Sunday in Abuja.

“It’s regrettable that the unity of Nigerian is strengthened during sporting activities and otherwise be-comes the case during electioneering activities.

“It is an indication that politicians have taken pleasure in using religion to divide Nigerians against themselves for political or selfish reasons. It must stop forthwith! Nigerians must resist it because it will take us nowhere,” he said.

He recalled with nostalgia

how Muslims and Christians lived together peacefully some years back irre-spective of religious or ethnic differences.

He said such divisions have been responsible for the obvious hatred among Nigerians, which, he said, has slowed down socio-economic and political development in the country.

“As 2019 political activities gather momentum, we appeal to politicians seeking elective offices to es-chew hatred and bitterness, and promote courses that will promote peace and unity among Nigeri-ans,” he said.

Idoko advised that the church should take the front row in moblising Nigerians to participate in the forthcoming 2019 general elections.

“It doesn’t come by words alone. We have to take a step further to empower people

educationally, financially and otherwise so they could have voice and knowledge to take their rightful place in Nigeri-an political and economic discussions,” he said.

He explained that the church could partner with the Social Exchange Market, to disburse financial grant to citizens not minding their religion or ethnicity.

“We are all one body in Christ Jesus,” he said.

The cleric said that such empowerment initiative should be borne out of utmost desire of the church to rekindle the hope of Nigerians.

He, however, encouraged churches, corporate organisations and individuals with financial ability, to assist to lift the poor off poverty so they could confidently participate in political and economic activi-ties.

POLITICS Politicians Advised to Emulate Jonathan’s Spirit of Sportsmanship

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ne of the founding fathers of Abia State Chapter of People’s Democratic Party, (PDP), Dickson Nwosu has advised politicians in the country to emulate former President Goodluck Jonathan who af-ter losing in the presidential election of 2015 to president Mohammadu Buhari congratulated him and embraced the spirit of sportsmanship.

Nwosu who is also the Ezeelect of Ule-na-Nso autonomous community Ohuhu in Umuahia North Lo-cal Government of Abia gave the advice during Iriji ceremony of his community urged politicians not to dump their parties for failing to pick tickets to represent their parties for 2019 elections in the just concluded primaries.

He observed that such act was a mark of irresponsible politicking where those involved did not understand that dynamics of the game.

Nwosu reminded politicians that “if you want to be a good party man you should obey the constitution and rules of the party, not when you fail, you start campaigning against the party as was noticed re-cently at Umuahia Stadium venue of PDP primaries where some aspirants after failing to pick the tick-ets started working against the party”.

“My advice is for those who lost to remain in their parties in order to build up their parties instead of jumping from one party to another which makes one an unserious politician. Remaining in your party after losing makes you more serious, reasonable and responsible politician” he admonished.

The Royal father-elect further explained that politics should not be seen as a do-or-die affair “you can lose this season and you get through in another. It is like the barber’s chair that rotates”, He frowned at the attitude of politicians who have made politics to look like winner takes it all, loser loses it all, which he noted had contributed to desperation of politicians, stressing that winners should see their winnings as service to humanity and carry losers along.

The one time Chairman of Umuahia North Local Government Area disclosed “I contested seven times for elective posts, I was defeated thrice, I didn’t run away from my party, my aim was always to win, they should remain in their parties, supporting others and help in building up their parties, they should be responsible and not going about divulging party’s secrets”.

“I formed many organizations, namely: D.A Nwosu unity, freedom unity club and Total bridge organization all of them positioned me in politics and not using thuggery , hooliganism or being fetish to con-test election” he said.

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WESTAFRICA BUSINESSNEWS

FEATURES

NOVEMBER 5 - 9, 2018

314 Business reforms recorded globally in one year - World Bank Togo, Kenya, Côte d’Ivoire and Rwanda tipped as world’s top 10 improvers

BY BONNY AMADI

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he World Bank group’s doing business 2019, has revealed that a total of 314 business reforms were effected globally in the past one year to enhance business climate.

The report released recently, which did not feature Nigeria among top improvers, showed that SubSaharan Africa set a new milestone for a third consecutive year, implementing 107 reforms in the past year, up from 83 the previous year.

In addition, this year also saw the highest number of economies carrying out reforms, with 40 of the region’s 48 economies implementing at least one reform, compared to the previous high of 37 econo-mies two years ago.

The report by World Bank’s doing business 2019: training for reform, showed that the Sub-Saharan Africa, is home to four of this year’s top 10 improvers, Togo, Kenya, Côte d’Ivoire and Rwanda. It add-ed that while reforms in the region were wide-ranging, many improvements focused on easing prop-erty registration and resolving insolvency.

The report revealed that reforms carried out in 128 economies, benefit small and medium enterprises (SMEs) as well as entrepreneurs, enabling job creation and stimulating private investment. This year’s reforms surpass the previous all-time high of 290 reforms two years ago.

“The private sector is key to creating sustainable economic growth and ending poverty around the world,” said World Bank Group President Jim Yong Kim. “Fair, efficient, and transparent rules, which Doing Business promotes, are the bedrock of a vibrant economy and entrepreneurship environment.

It’s critical for governments to accelerate efforts to create the conditions for private enterprise to thrive and communities to prosper.”

The report subtitled “Doing Business Report: Sub Saharan African Economies Set Third” noted that Economies in Sub Saharan Africa set a new record for a third consecutive year, carrying out 107 reforms in the past year to improve the ease of doing business for domestic small and medium enter-prises.

Nigeria, according to the report, carried out four reforms which included making starting a Business easier in Kano and Lagos, the two cities covered by Doing Business. Getting Electricity and Trading Across Borders also saw reforms in the two cities.

The report revealed that. Lagos made Enforcing Contracts easier by issuing new rules of civil procedure for small claims courts, while Kano, in a negative move, made property registration less transparent by no longer publishing online the fee schedule and list of documents necessary to transfer a property.

The World Bank report noted that, the latest reforms were a significant increase over the 83 reforms that were implemented

in the region the previous year.

The report further disclosed that, this year’s top 10 improvers, based on reforms undertaken, are Af-ghanistan, Djibouti, China, Azerbaijan, India, Togo, Kenya, Côte d’Ivoire, Turkey and Rwanda.

With six reforms each, Djibouti and India are in the top 10 for a second consecutive year.

Afghanistan and Tur-key, top improvers for the first time, implemented record single-year reforms, with five and seven, respectively.

“The diversity among the top improvers shows that economies of all sizes and income levels, and even those in conflict can advance the business climate for domestic small and medium enterprises.

Doing Business provides a road map that different governments can use to increase business confidence, innovation, and growth and reduce corruption,” said Shanta Devarajan,

the World Bank’s Senior Director for Development Economics and Acting Chief Economist.

This year, Doing Business collected data on training provided to public officials and users of business and land registries. A case study in the report, which analyzes this data, finds that mandatory and an-nual training for relevant officials is associated with more efficient business and land registries. A second study finds that regular training for customs clearance officials and brokers results in lower border and documentary compliance times, easing the movement of goods across borders. Two other case studies focus on the benefits of accrediting electricians and training of judges.

“This year’s results clearly demonstrate government commitment in many economies, large and small, to nurture entrepreneurship and private

This year’s results clearly demonstrate government commitment in many economies, large and small, to nurture entrepreneurship and private enterprise. If the reform agendas are complemented with training programs for public officials, the impact of reforms will be further enhanced, new data show.

enterprise. If the reform agendas are complemented with training programs for public officials, the impact of reforms will be further enhanced, new data show,” said Rita Ramalho, Senior Manager of the World Bank’s Global Indicators Group, which produces the report.

Since its inception in 2003, more than 3,500 business reforms have been carried out in 186 of the 190 economies Doing Business monitors.

The report celebrated four SubSaharan African countries, Togo, Kenya, Côte d’Ivoire, and Rwanda, as among global top improvers, also announced that Mauritius regained a spot in the world’s top ranked economies, in 20th place.

Five reforms were carried out in Mauritius during the past year, including the elimination of a sole gender-based barrier. In the area of Starting a Business, Mauritius equalized the business registration process for men and women and further consolidating the registration process for all applicants.

Mi-nority investor protections were strengthened by clarifying ownership and control structures and in-troducing greater corporate transparency. Reforms were also carried out in the areas of Registering Property, Trading across Borders and Paying Taxes.

Rwanda carried out the most reforms in the region in past year, with seven, and moved up to 29th rank globally.

Analysing Rwanda’s reforms, the report pointed that the latest improvements in Rwanda, which has carried out the most reforms since the inception of Doing Business 16 years ago, included making start-ing a business less costly by replacing electronic billing machines with free software for value added tax invoices. In Registering Property, an

area in which Rwanda is second only to New Zealand in the world, new land dispute resolution mechanisms made property registration easier.

It noted that a new insolvency law strengthened access to credit, another area in which Rwanda excels, and made it easier to resolve insolvencies by making insolvency proceedings more accessible for creditors and granting them greater participation in the proceedings.

Other reforms in Rwanda were in the areas of Trading across Borders and Getting Electricity.

Kenya, the report said, implemented five reforms, advancing to 61 st rank. One reform included the introduction of a new law which helped further strengthen access to credit. This latest reform cata-pulted Kenya to 8th rank in the world in the area of Getting Credit. Kenya also made it easier for busi-nesses to pay taxes by consolidating permits and utilizing the country’s iTax platform, while an online system helped make property registration easier.Other improvements strengthened minority investor protections and made it easier to resolve insolvencies.

Notable reforms in Côte d’Ivoire and Togo included the introduction of online systems for filing corporate income tax and value added tax returns, making it easier for businesses to pay their taxes. In Côte d’Ivoire, which carried out five reforms, access to credit and construction quality controls were also strengthened and business registration and enforcing contracts were made easier.

Togo was reported to have carried out six reforms, business registration was made easier with a re-duction of minimum capital requirement and enforcing contracts was made easier with the adoption of a new law on mediation, among other reforms.

36

WESTAFRICA BUSINESSNEWS

CONSUMERS

NOVEMBER 5 - 9, 2018

Food insecure people in northeast drop from 5.2m to 2.9m – FAO

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he UN Food and Agriculture Organisation (FAO) says food security has improved in northeastern states with the number of food insecure people dropping from 5.2 million to 2.9 million.

The FAO Representative in Nigeria Suffyan Koroma, represented

by Patrick David, the FAO’s Programme and Liaison Officer, said that the number dropped between August 2017 and August 2018 in Adamawa, Borno and Yobe States.

Koroma disclosed this at the presentation of October 2018 Cadre Harmonise (CH) Analysis Outcome for 16 states and FCT in Abuja.

Cadre Harmonise is an early warning and food insecurity nutrition analysis tool to serve Food Crisis prevention and Management Framework which takes into account various food security and nutrition outcomes in 16 states.

He noted that the number reduced as a result of massive support from the government and the inter-national community.

“Despite this improvement, there is still a huge need to respond to and FAO in partnership with WFP supported and will continue to support the Government of Nigeria in providing emergency and resili-ent livelihood assistance.

“We will also provide nutritious food crops, cash crops and livestock support to more than one million vulnerable individuals identified through the cadre harmonise,’’ he said.

Ms Myrta Kaulard, the World Food Programme (WFP) Country Director, emphasised the need for data collection to shape the right way of intervention and assist government policies.

Kaulard said that there were increased number of people who do not have access to land and could not return to farming activities.

She said that tackling insecurity and access to land in the northeast were priorities to reduce the num-ber of people who

required assistance in the area.

“WFP looks at the policies and actions by state and federal authorities and where there are gaps, we provide food assistance or cash requirements for the affected people to buy food.

“The result of these joint efforts are very encouraging because in 2016, there were concerns of fam-ine in the Northeast and year after year, we have seen a gradual improvement in conditions,’’ she said.

Dr Abdulkadir Mu’azu, the Permanent Secretary, Federal Ministry of Agriculture and Rural Develop-ment, emphasised the need for data collection

which was the major aim of the cadre harmonise anal-ysis.

Mu’azu, represented by Matthew Owolabi, a director in the ministry, said that the government would continue to support all stakeholders and take appropriate actions required based on the analysis.

Dr Issoufou Baoua, the Food Security Analyst Expert of Cadre Harmonise, said the analysis was done in October 2018.

Baoua said that the analysis was done with evidence and data from climate change and livelihood support in the 16 states.

He said that although there were still challenges to be addressed, the

food security situation had im-proved in the 16 states when compared with two to three years back.

The experts listed the states where the analysis as Adamawa, Bauchi, Benue, Borno, Gombe, Jigawa, Kaduna, Kano, Katsina, Kebbi, Niger, Plateau, Sokoto, Taraba, Yobe, Zamfara and the FCT. The CH analysis started in Nigeria in 2015 to help support and assist government interventions on food and nutrition security.

It is being supported by the FAO, WFP, and Committee for Drought Control in the Sahel (CILSS), among others.

Ms Myrta Kaulard,

Coca-Cola partners FG, OSSAP-SDGs against infant, maternal mortality

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oca-Cola Nigeria has partnered with the Federal Government and the Office of the Senior Special Assistant to the President on Sustainable Development Goal (OSSAP-SDGs) against infant and maternal mortality.

The President, Coca-Cola West Africa, Peter Njonjo said this at the inauguration of the partnership under the Safe Birth Initiative in Abuja.

Ojonjo expressed concern over increased rate of deaths associated with childbirths.

He said that 80 per cent of infant and maternal mortality in Nigeria were preventable if all stakeholders contributed their quota to minimise the trend.

He said that the issue of safe birth resonated around well-being of women, adding that CocaCola had commitment to women considering the fact that they were pillars of the society.

“As Coca-Cola, we have chosen to join in the fight against maternal and infant mortality so that our mothers and babies can come home alive after birth.

“Working with the Federal Ministry of Health and the OSSAP-SDGs as well as MedShare

International, we developed the safe birth initiative where government, private sector and the civil society come together to tackle issues.

“We recognise that there are many factors responsible for the high maternal and infant mortality and this will require different skills and levels of intervention.

“We want to support our doctors, midwives and nurses who battle against great odds in public hospi-tals to manage life threatening complications affecting mothers and newborns,” he said.

He said that Safe Birth Initiative had been

structured to help address the inadequacy of vital lifesaving equipment in public hospitals.

Njonjo said that the initiative would focus on the procurement of facilities and the training of biomedi-cal engineers and technicians.

In her remark, Mrs Adejoke OrelopeAdefulire, the Senior Special Assistant to the President on SDGs commended Coca-Cola and other stakeholders for the partnership.

She said that the initiative was to support the efforts of the Federal Government to reduce infant and maternal mortality in the country.

World food prices fall 0.9 pct in October – UN FAO

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orld food prices fell 0.9 per cent in October from the month before, reflecting lower values for meat, dairy and oils, the United Nations food agency has said.

The Food and Agriculture Organization’s (FAO) food price index, which measures monthly changes for a basket of cereals, oil seeds, dairy products, meat and sugar, averaged 163.5 points last month, against a slightly revised 164.9 in September.

The September figure was

previously given as 165.4.

FAO said global cereals output in 2018 was seen at 2.601 billion tonnes, up nearly 10 million tonnes on the previous forecast given in October, but still down 57 million tonnes, or 2.1 percent, from 2017’s record production level.

FAO’s forecast for world wheat production in 2018 was 728 million tonnes, down 4.3 percent from last year.

Consumers’ demand for organic produce increases globally – EOA

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he Country Coordinator, Ecological Organic Agriculture (EOA) Initiative in Nigeria, Dr Olugbenga Adeo-luwa says consumers’ demand for organically grown foods and livestock products are increasing global-ly.

AdeOluwa made this known in an interview with the News Agency of Nigeria in Abuja.

He said that organic farming was the fastest growing sector of agriculture.

“Sale of organic produce and products continues to grow by over 20 per cent annually and has shown an annual increase of at least 20 per cent during the last eight years.

“It is estimated globally that farmers use many inputs that could be hazardous to human health to grow foods which are sold at different market channels worldwide.

“Thousands of corporations are targeting consumers worldwide by adding organic stuff to their prod-uct lines such as textile, drinks, baking powder, pharmaceuticals and many others.’’

He said that Nigeria should use the opportunity of the high demand to capitalise on its sustainable practices to boost livelihood, income, exports and foreign exchange earnings, and reduce rural-urban migration.

According to him, awareness of organic farming can save farmers money and give them significantly better returns on land and resource utilisation, as compared to conventional farming.

“Organic agriculture is both beneficial to the producers as well as to the consumers as its high nutritional food is guaranteed and free of unhealthy elements.

“Research has shown that organic vegetables and fruits have higher mineral and vitamins contents as compared with those produced using conventional techniques, and actually tastes better.

“Moreover, the shelf life of organic fresh produce is longer than that from the conventional system, and the great biodiversity seen in indigenous vegetables and fruits are preserved,’’ he said.

AdeOluwa said that pollution control and enhancement of biodiversity were perhaps greatest part of contribution of organic agriculture to mankind.

WESTAFRICA BUSINESSNEWS

AGRIBUSINESS

NOVEMBER 5 - 9, 2018

Cross River to crush 30,000 tonnes of cocoa annually, says gov’s aide

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ross River Government has set a target of crushing 30,000 tons of cocoa annually beginning from 2018/2019 Farming season, Oscar Ofuka, Special Adviser to the Governor on Cocoa Development, has said.

The aide said in Calabar during a guided tour of a cocoa garden in the premises of Cross River Broadcasting Corporation (CRBC) while briefing some top

government functionaries and management staff of the corporation, that the move was to enhance government’s effort at diversifying the state’s economy.

“This is just part of what we are doing in ensuring that the state achieves self-sufficiency in revenue generation.

“The governor has always emphasised on the need for us to diversify the economy from over-

dependence on oil. It is our belief that with cocoa, Cross River can do without oil.

“As the second largest producer of cocoa in Nigeria, our target is to crush 30,000 cocoa annually starting with the 2018/19 farming season.

“Already, we have acquired over 380,000 hectares of land and planted over three million cocoa seedlings in Akamkpa Local Government Area.

“We are in the era of

cocoa revolution in the state.

What we have done today in CRBC, had been carried out in several other Ministries, Departments and Agencies (MDAs) and we are planting more and more,” he said.

Responding, Mrs Theresa Essien, the General Manager, CRBC commended the special adviser for the initiative, adding that, it was a clarion call for members of staff to go into agriculture.

“This is marvellous;

when he requested for a small portion to plant cocoa, I did not really take him serious but we can see that what he planted just few months back, is beginning to bear fruit.

“I really commend the special adviser and I am using this opportunity to advise members of staff and other Cross River people to see farming as part of our lives and use it to grow ourselves and our economy,” she said.

Fadama III provides relief packages to families of abducted Dapchi schoolgirls The Yobe Fadama lll Additional Funding II, distributed food items and livelihood packages to 2,000 households affected by insurgency, including 40 families of the abducted but released Dapchi schoolgirls.

Mustapha Gajerima, the Commissioner for Agriculture, who inaugurated the distribution in Dapchi, said the gesture was to improve lives of victims of insurgency across the state and 40 families of the abducted girls in Dapchi.

“The sense of responsibility demonstrated by Fadama III AF II by including parents of the Dapchi schoolgirls as beneficiaries of the intervention is a show of empathy and solidarity to the community.

“Fadama III project had supported 5,320 households with food and livelihood packages in the first tranche of intervention.

“I commend the project for prudent use of resources in implementing its initial 133 Community Action Plan (CAP) programmes to accommodate additional 50 CAPs. “This is being distributed to 2,000 benefiting households,’’ he said.

Alhaji Musa Garba, Fadama III State Project Coordinator said the current intervention of 2,000 households became possible due to savings made from the first phase where 5,320 households benefited.

“Dapchi, Damaya, Dumburi, Masaba and Ajiri communities in Bursari Local Government enjoyed support such as irrigation and rain fed agricultural inputs in crop production, livestock husbandry, drains and water facilities.

Garba, who also mentioned youth empowerment among the gestures, said they were came under the first phase of intervention.“

Governor of Yobe State, Alhaji Ibrahim Geidam,

Governor Ben Ayade

Orhionmwon oil palm farmers solicit govt’s support

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r h i o n m w o n Farmers in Edo have appealed to governments at all levels to make oil palm seedlings available to farmers in the state.

The state Chairman of the group, Sunday Okungbowa said in Benin that palm oil production was on the decline due to lack of government’s support.

Okungbowa said that farmers had difficulty accessing inputs,such as seedlings, machines, land and loans, among others.

He noted that oil palm farmers were not receiving the necessary support compared to other crops farmers across the country.

He also identified the lack of finance as the major challenge militating against oil production in the state, adding that farmers needed more fund to buy seedlings and fertiliser for high yields.

“I have about 10 hectares of oil palm plantation but I have not gotten any assistance from the government. ‘‘We have about 150 cooperative societies

in Orhionmwon Local Government Area, and we are appealing for support from the government to improve palm oil production,” he said.

Sandamu LG lauds EU, Oxfam for FuWoBa project The Sandamu Local Government Council in Katsina State has commended the European Union (EU) and Oxfam International for the Improving the Fuel Wood Balance (FuWoBa) project in the area.

Malam Usman Mohammed, Head of Department of Agriculture in the council, conveyed the commendation in an interview with News Agency of Nigeria in Sandamu.

He said that the council area had benefited immensely from the programmes of the fouryear FuWoBa project, which were aimed at protecting the environment and enhancing the socio-economic development of the people.

He said that the project had been able to plant 281, 423 trees across the 11 wards of the council area.

“Additional 654,090

trees were also planted and maintained through the Farmer-Managed Natural Regeneration (FMNR) scheme,’’ he said.

Mohammed noted that the FuWoBa initiative, which involved 6,273 farmers, had also trained 282 communitybased organisations in livestock production.

He said that the project had also promoted peaceful farmers-herdsmen coexistence in the area.

According to him, the FUWOBA project has trained 350 youths in the production of clean cook stoves.

He said that the youths produced 7,817 stoves, out of which 2,041 units had been sold.

“The stove production project has supported efforts to reduce indiscriminate felling of trees in the area,’’ he added.

Besides, Mohammed said that 2,516 farmers had benefited from the distribution of free agricultural inputs and items under the project.

He listed the inputs and items as 1,000 bags of NPK fertiliser, 1,000 litres of agro-chemicals and

insecticides, 1,000 units of clean cook stoves and 348 insecticide sprayers.

He added that 160 animal ploughs, 400 hoes and 800 watering cans were also distributed.

Mohammed stressed that the FuWoBa project had empowered hundreds of men and women in the area via the production of cash crops and the planting of economic trees to generate income.

He commended the EU and Oxfam as well as the FuWoBa Project Manager in Katsina State, Dr Chris Udokang, for selecting Sandamu council area as one of the beneficiary local governments of the project in the state.

He, however, called for the extension of the time frame of the project, which was expected to wind up by January 2019.

FuWoBa project, which was launched in Katsina State in 2014, has planted 5.6 million varieties of assorted trees in Sandamu, Mashi, Daura, Baure, Maiadua, Zango and Dutsi Local Government Areas.

37

Group seeks 60% of agric fund to small farmers

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he National Association of Nigerian Traders (NANTS) has called for increased budgetary allocation to agriculture and dedication of not less than 60 per cent of agriculture funds and facilities to small-scale farmers.

It also called for the sustenance and improvement of the successes achieved in the Growth Enhancement Support Scheme.

The group made the call through its National Coordinator, Legborsi Nwaibu, in Owerri at a sensitization programme for farmers and traders and presentation of the Nigerian Farmers Manifesto to the state Ministry of Agriculture.

It said the manifesto was articulated to ensure agricultural policies by the political class effectively targeted the beneficiaries and empower farmers to hold public officers accountable.

The association said the manifesto was based on aggregated information, observations and feedback from various farmers organisations and networks.

According to them, a study was also conducted to identify the various thematic areas of government’s commitments on selected agriculture policies.

It said the manifesto contained current concerns of the group which included farm productivity stagnation, poor access to financial credit facilities and exclusion of farmers from budgetary process.

Others are heavy post market losses as a result of poor market infrastructure, poverty as well as a disconnect between policy implementation and the needs of small farmers.

The association stressed the need for a roadmap in crisis and dispute resolution to prevent cases of death and displacement of small scale farmers as a result of herdsmen crises in various communities across the country.

It also called on political aspirants to commit themselves to addressing the specific needs of the group to win their votes in the 2019 elections.

The group expressed regret that some politicians were in the habit of making promises to farmers and traders in exchange for votes, pacifying them with food items during campaigns, but later reneging on those promises.

It said that political office seekers who wanted the support of the group must select and endorse some or all of their demands to implement when voted into power.

Responding, state Commissioner for Agriculture, who was represented by the Director of Agriculture, Sylvester Bini, commended the group for their efforts towards ensuring food security in the country.

38

WESTAFRICA BUSINESSNEWS

COMPANIES & BRANDS

NOVEMBER 5 - 9, 2018

Trade misinvoicing cost Nigeria $2.2bn in 2014 — Report A

new study by Global Financial Integrity (GFI), says that the potential loss of revenue by Nigeria to misinvoicing in 2014 was approximately 2.2 billion dollars. This is according to an analysis of trade misinvoicing it carried out on Nigeria for 2014.

A statement issued by its Managing Director, Tom Cardamone in Washington DC, United States of America said the amount represents four per cent of total annual government revenue as reported to the International Monetary Fund (IMF).

“Put still another way, the estimated value gap of all imports and exports represents approximately 15 per cent of the country’s total trade.”

The report which was published with the support of the Ford Foundation is titled: “Nigeria: Potential Revenue Losses Associated with Trade Misinvoicing.”

According to Cardamone, the report analyses Nigeria’s bilateral trade statistics for 2014 (the most recent year for which sufficient data are available) which are published by the United Nations Comtrade.

He said that the detailed breakdown of bilateral Nigerian trade flows in Comtrade allowed for the computation of trade value gaps that are the basis for trade misinvoicing estimates.

He added that import gaps represent the difference between the value of goods Nigeria reports having imported from its partner countries and the corresponding export reports

by Nigeria’s trade partners.

“Export gaps represent the difference in value between what Nigeria reports as having exported and what its partners report as imported.

“The portion of revenue lost due to the misinvoicing of exports was 1.3 billion dollars during the year

Minister of Finance, Mrs Zainab Ahmed

which was related to a reduction in corporate income taxes.

“The portion of revenue lost due to the misinvoicing of imports was 880 million dollars.

“This amount can be further divided into its component parts: uncollected Value Added Tax (VAT), 100 million dollars, customs duties 365 million dollars and corporate income tax 415 million dollars.”

Cardamone added that lost revenue due to misinvoiced exports was 1.3 billion dollars for the year, a figure he said was related to lower than expected corporate income and royalties.

Minister of Trade and Investment, Dr Okechukwu Enelamah

He also said that the report’s examination of the underlying commodity groups which comprise Nigeria’s global trade showed that a large amount of lost revenue of 200 million dollars was related to import underinvoicing of just five products.

Those products and the related estimated revenue losses include: vehicles 100 million dollars, iron and steel products 40 million dollars, electrical machinery 20 million dollars, ceramics 20 million dollars and aluminum products 20 million dollars.

He also said that lost revenue due to mispriced exports which

stood at 1.3 billion dollars might be related to the mineral fuels trade, given that this category of goods makes up over 90 per cent of all exports.

He said that the report added that trade misinvoicing occurs in four ways: under-invoicing of imports or exports and overinvoicing of imports or exports.

“In the case of import underinvoicing, fewer VAT and customs duties are collected due to the lower valuation of goods.

“When import over-invoicing occurs (when companies pay more than would normally be expected for a product), corporate

revenues are lower and therefore less income tax is paid.

“In export under-invoicing the exporting company collects less revenue than would be anticipated and, therefore, reports lower income.

“Thus, it pays less income tax.

Corporate royalties are also lower.”

Cardamone said that total misinvoicing gaps related to imports could be broken down by under-invoicing which was 2.4 billion dollars and over-invoicing which was 1.9 billion dollars.

“It should be noted that these figures represent the estimated value of the gap between what was reported by Nigeria and its trading partners.

“The loss in government revenue is a subset of these amounts and is based on VAT rates.

“It represents five per cent, customs duties 15.2 per cent, corporate income taxes 22.4 per cent and royalties 0.2 per cent which are then applied to the value gap.

“Export misinvoicing gaps were a massive 5.9 billion dollars for export underinvoicing and 5.6 billion dollars for export over-invoicing.

“Lost corporate income taxes and royalties are then applied to export underinvoicing amounts to calculate lost government revenue.”

The statement quoted GFI President, Raymond Baker, as saying that the practice of trade misinvoicing had become normalised in many categories of international trade.

“It is a major contributor to poverty, inequality and insecurity in emerging markets and developing economies.

“The social cost attendant to trade misinvoicing undermines sustainable growth in living standards and exacerbates inequities and social divisions, issues which are critical in Nigeria today.”

Newly elected CRFFN president promises to overhaul Freight Forwarding

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ewly elected President, Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Alhaji Abubakar Tsanni has promised a total overhaul of the freight and forwarding sub-sector.

Alhaji Tsanni also promised to train Freight Forwarders.

He identified untrained, inexperienced and unregistered Freight Forwarders as one of the challenges of Freight Forwarding in Nigeria, said that under his leadership, measures and policies would be adopted to address such challenges.

He said that a lot of people go into freight forwarding without understanding how the

business works and its ethics, thereby giving them a bad image.

Tsanni said that once Freight Forwarders are adequately trained and registered, there would be ease of doing businesses at the ports and end consumers would feel the positive impact.

“As a member of the freight forwarders we know our challenges and it is what we are going to look at and address. “ One of our challenges is the training of our freight forwarders, which immediately is the first thing we are going to do. “ The second is the registration of our freight forwarders. The Hon. Minister of Transportation has already instructed that only

registered forwarder will be allowed to clear any items in the ports.

“This means the registration and training of Freight Forwarders are vital.

“These would help in addressing the challenges of touts in the ports because only a registered freight forwarder with an identity would be allowed in,’’ Tsanni said.

Tsanni also called for the support of members in other to achieve the mandates of the council under his leadership.

Similarly, Mr Donatus Ozoemena, a newly elected member of the council representing the South East, said that training Freight Forwarders would change the dynamics of clearing goods

at ports, creating a lot of ease.

Ozoemena lauded the Minister of Transportation, Rotimi Amaechi for his keen interest in the Freight Forwarding subsector, which would further increase the nation’s Internally Generated Revenue (IGR).

“We shall ensure that manpower would be trained, a lot of ideas would be brought to the government, ease of doing business at the Warf and on the clearing activities.

“The council has a lot of functions to carry out and with the enabling laws, I being a former law maker will be able to play a key role.

“We will ensure that the council does a lot of things in the interest

of the government and people.

“Clearing and forwarding business is not supposed to be for charlatans, therefore, the council will make sure that those that are into it are trained. “ If you go abroad, clearing and forwarding agents are done by trained individuals.

“At the council we would ensure that those involved in the business are trained and the necessary incomes for government are made available through the council,’’ Ozoemena said.

The CRFNN last week in Abuja elected the new leadership of its Governing Council which was inaugurated by the Minister of Transportation.

COMPANIES & BRANDS

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

1% local content fund: EFCC to go after defaulting companies — Sen. Adeola

T

he Senate Committee on Local Content has warned that the Economic and Financial Crimes Commission (EFCC) will prosecute companies that failed to remit the one per cent Nigerian Content Development Fund (NCDF).

The commiittee Chairman, Sen. Solomon Adeola, gave the warning in Rivers while briefing newsmen at the end of the two-day oversight visit to oil and gas companies in Rivers and Bayelsa states.

The NCDF was established by Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.

It provides that one per cent of every contract in the upstream sector of the Nigerian oil and gas industry shall be deducted at source and paid into the fund.

The fund, managed by the Nigeria Content Development and Monitoring Board (NCDMB), is meant for

projects, programmes and activities directed at increasing Nigerian content in the oil gas industry.

Adeola (APC-Lagos) said besides the EFCC, the Attorney-General of the Federation had been briefed and was being carried along on moves to prosecute defaulting companies.

He said that any company found culpable would be charged for defrauding

the Federal Government.

“The Economic and Financial Crimes Commission in being carried along and anybody found wanting, will be dealt with.

“The team of auditors have commenced work and in a couple of weeks, reports will start coming in to know the companies that have complied or defaulted.

“The legislature is aware that there are issues on the

remittances to the fund and we will follow through to ensure compliance.

“The NCDMB has set up a team of auditors who are already going round the length and breath of this country to audit oil and gas companies.

“This is to ensure that any company that is found wanting or that has defrauded the government in this regard

Sen Adeola

will be dealt with,” he said.

The lawmaker said that the fund was meant to bridge the gap between indigenous and foreign companies.

He added that indigenous companies, particularly in the oil and gas industry, were grappling to meet up with demands in the industry and needed to be assisted.

39

Apapa gridlock: NARTO tasks police on security of cargoes

S

equel to the Apapa gridlock that has made container laden trucks vulnerable to vandals, Alhaji Mohammed Inuwa has advised the Nigeria Police to beam their search-light on container laden trucks.

Alhaji Inuwa, who is the Vice Chairman, of National Association of Road Transport Owner (NARTO) gave this advice in Lagos, adding that the incessant parking of container laden trucks along the roads outside the ports facility while in queue had made cargoes prone to vandalism.

Responding to a case of truckers that were arrested because a container under their care was allegedly burgled, Inuwa said the police should be more responsive to their responsibility.

Emma Itodo, a truck driver, Ahamed Dada a truck conductor, and Gab Opara, the escort were arrested on last week Monday by their transporter in connection with vandalised container under their care.

The NARTO chairman said the truckers might want to ease themselves or had fallen asleep in the night when the incident was allegedly committed without their knowledge.

“The gridlock has made Preparing Tariff and Services cargo laden trucks to stay Offers; and AfCTA National far away from the ports area Implementation Strategies. where there is police presence to areas like the Ijora and Carter Bridge where there are less security presence.

“These truckers are family men, but look at it now, they have been in custody since Monday probably for no fault of theirs,” Inuwa said.

He appealed to the police and other security operatives to keep watch on the containers as most of them were carrying goods worth millions of naira on transit.

The arrested men were conveying a 1×40 ft of benny seed container belonging to Olam Nigeria Limited for export before it was burgled.

The truckers were trying to fulfill their bail conditions at the Ebute Meta Magistrates Court.

Osinbajo lauds AfCTA, explains Nigeria anxiety

V

ice President, Prof Yemi Osinbajo, has commended the idea behind the Africa Continental Free Trade Area (AfCTA) agreement, while reiterating Nigeria’s position on it.

Osinbajo restated Nigeria’s position on the agreement in Lagos at the official opening ceremony of Africa Trade Forum, 2018.

The event, under the theme: “AfCTA Ratification and implementation: A Game Changer for African Ecomomies”, drew participants from across Africa.

The News Agency of Nigeria (NAN) reports that Nigeria has been reluctant in signing up to the AfCTA agreement, despite being one of the major initiators in 2015.

The Vice President, however, assured that in spite of not signing up to the agreement, the government has over the last few months held consultations with major stakeholders on the benefits of the AfCTA agreement.

According to him, the consultation process remains diligent, transparent and is yielding positive results.

Osinbajo noted that issues about how the AfCTA Agreement will impact on local industries in Nigeria had been the major concern.

He said that another focus of the stakeholders forum was on how to resolve trade dispute with recourse to Customs and border issues.

“We must also strengthen local businesses due to effects of the Trade Agreement Area and I believe other African stakeholders will take this feedback from Nigeria seriously,” he said.

Osinbajo said the establishment of AfCTA Agreement had prospects for increase in trade among African countries.

Also in attendance at the opening ceremony were Nigeria’s Minister of Trade, Mr Okechukwu Enelamah, and Chairman of the Dangote Group, Mr Aliko Dangote, amongst others.

Expressing dissatisfaction with the level of intra-African trade, Dangote questioned the rationale behind formation of regional economic blocs, if trade barriers still exist among African States.

He bemoaned the frustrations and difficulties

his group often goes through in exporting products to neighbouring African countries.

Dangote said that in as much as he is not opposed to Nigeria signing the AfCTA Agreement, all bottlenecks that work against Nigeria’s interest must be looked into.

For the Commissioner for Trade and Industry in African Union Commission, Mr Albert Muchanga, the initiative was carefully designed in the best interest of Africa.

He assured the forum that all grey areas raised that could hinder the implementation of the Agreement would be looked into.

Day 1 of the twoday event witnessed three experts meetings — Agricultural Transformation; Increasing Power Supply through Cross-border Networks; and Harnessing

Data for Development.

Other meetings scheduled for Saturday include Breakout sessions on “What next”,

Prof Osibajo

Okojie advises FG to encourage entrepreneurs for national development

P

rof. Julius Okojie, former Executive Secretary, National Universities Commission (NUC), has advised the Federal Government to encourage successful entrepreneurs who introduced new ideas, innovations and products in order to achieve sustainable development.

Prof Okojie gave the advice during the 10th Convocation Lecture of Bells University of technology, Ota,

Ogun, entitled “Education for Sustainable Development and Prosperity for Africa”.

He noted that entrepreneurial activity was essential for a strong global economy, moreso in developing economy like Nigeria.

“Research, innovation and entrepreneurship are the major drivers of any economy.”

Okojie, who was the pioneer Vice-Chancellor

of the institution, said that industrial development and production should be encouraged, adding that this would drive production, manufacturing and the market economy as well as create appropriate jobs.

He, however, urged universities to be agents of change in the economic and political activities of the nation.

“This can only be guaranteed through effective teaching, research,

patents and trade mark, protected by adequate intellectual property rights.”

He said that these factors were required to effectively transform African’s vast resources for the sustainable well-being and prosperity of its people.

Okojie also said that for Nigeria and other African countries to exit poverty, the governments needed to massively invest in education.

He further advised the

government to allocate more funds to the education sector in the nation’s annual budget so as to address the challenge of decayed infrastructure.

Okojie added that relevant education was required in the transformation of the economies of African countries, including Nigeria.

“The education sector must create a class of knowledgeable people with the ability for critical thinking and innovation,”he said.

SOCIAL DIARY

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

41

Nigerian Society of Engineers installs new Exco

By Musa Diso, Kano

N

.Regional/CEO, Institute of Strategic Management Nigeria (ISMN), Mr. Kenny Adenugba, Speaker/ Chairman Board of Trustee, Taekwondo Supporters Club of Nigeria (TSCON) Grandmaster Ashiru George, President TSCON, Grandmaster Abdullahi Aeidu and Speaker, Mr. Onidundu Amoo, during the Strategic Leadership and Management Workshop, Theme; Personal and Professional Development bootcamp, held in Lagos

Traditional ruler rolls out activities for Ilaro festival T he Olu of Ilaro, Oba Kehinde Olugbenle has assured that Gov. Ibikunle Amosun and the Minister of Information and Culture, Alhaji Lai Mohammed are among the dignitaries being expected by the Ilaro community to grace its 25th Oronna Ilaro Festival in Ogun.

Olugbenle, the Paramount Ruler of Yewaland, disclosed this at a news conference in Lagos while an-nouncing activities for the festival scheduled to hold between Nov. 10 and Nov. 18 in Ilaro.

According to the traditional ruler, the Silver celebration will be filled with fanfare, to promote the cultural heritage of the people.

“We expect the Executive Governor of Ogun, Sen Ibikunle Amosun as the Special Guest of Honour. ”We expect Alhaji Lai Mohammed, the Minister of Information and Culture, among others. Ilaro is ready to host the world, adequate arrangements have been made to ensure the safety of everybody, we are waiting to receive visitors.

“Sons and daughters of Ilaro (Omo Oronna) within and outside the country have started arriving for this Oronna Ilaro Festival,” Oba Olugbenle said.

He said the festival remained a yearly unifying socio-cultural event of Ilaro people aimed at bringing back Ilaro sons and daughters, other people of African descent to trace their root during the period.

Olugbenle said that the festival was aimed at positioning Ilaro town as a rewarding tourist destination, to identify talents for further development and collaborate with Ogun Government in its

From Left, Chief Rafiu, Akinola, Chairman, Oronna Ilaro Festival Central Planning Committee; Oba Kehinde Olugbenle, the Olu of Ilaro and the Paramount Ruler, Yewaland; Chief Thomas Lala, the Bobaseto of Ilaro, Yewaland and Chief (Mrs) Oluyemisi Oloyo, Iya Ewe of Ilaro at the news conference to unveil the 25th Oronna Ilaro Festival in Lagos on Friday

efforts to develop tourism.

According to him, the festival is organised in pursuant to the town’s cultural tradition and a platform for self-help initiatives to develop the community.

Olugbenle said: “Ilaro is one of the towns in Yoruba land with a very rich culture. The festival was cele-brated formally since 1993 with Ogun State Government participation in one form or the other.

“But in line with positive trends and the axiom that change is an inevitable aspect of human life, the Oronna celebration is now being rebranded and taken to the next level as a national and International tourism event with potentials to impact on the economy of Ilaro and Ogun State.

“The festival is now being rebranded as Oronna-laro festival. This year’s festival is the 25th of its kind, this is the 25th Silver Celebration of this annual festival, it’s going to be fun-filled, entertaining and in-teresting.”

On the line up of activities, the paramount ruler said that a week-long festival would

commence with festival carnival/roadshow on Nov.10.

According to him, tributes to Oronna and other deities in Ilaro and Itolu, medical checkup and Egungun masquerade parade will hold on Nov. 12.

He added that on Nov. 13, there would be a continuation of medical checkup, flag off of 5 kilometres festival race, Igunnuko masquerade display, Football Competition Final (Secondary Schools) and tradi-tional Efe Dance Ceremony.

The paramount ruler said that colourful Gelede Display would hold on Nov. 14 while Onigbaaje Cere-

mony, football competition final (artisans) and talent hunt would be on Nov. 15.

According to him, a visit to less privileged homes, celebration of four ruling houses forum, Jumaat Thanksgiving Service and 7th Sisi Ilaro Beauty Pageant will be on Nov. 16 while the grand finale will hold on Nov. 17 with paying of homage to the Olu of Ilaro.

The Oba said that the celebration would be rounded off with an Interdenominational Thanksgiving Service at the Cathedral Church of Christ, Ilaro.

The traditional ruler, who

igerian Society of Engineers (NSE) Kano State branch has inaugurated new executive council members at its 60th anniversary and Annual General Meeting (AGM).

The inauguration which held at Government house Kano recently, was declared open by the Kano State governor Dr. Abdullahi Umar Ganduje, represented by the state’s commissioner of works, housing and transport Engr.Aminu Aliyu.

Speaking during the occasion, Speaking during the occasion, the newly elected chairman Engr.

Mohammed Adamu Musa said in everywhere in the world no society can Newly elected chairman, NSE Kano, Engr.Mohammed Adamu Musa said that globally, no nation achieves meaningful development without peace, adding that peace is an ingredient for any development.

“Being together is unity, coming together is strong and working together is the success” He expressed his gratitude to Kano State government for providing enabling environment for engineers under the services of the state government.

Describing the state civil service engineers as amongst the luckiest in Nigeria, the newly elected NSE Kano chairman added that the state engineers engaged in meaningful engineering infrastructure development powered by the government as dividend of democracy.

Engr. Mohammed, the 18th state chapter chairman of the NSE, appealed to the government to involve professional engineers as consultants in order to structure and ensure procurements that provides public facilities with minimum resources.

He explained that such deployment of

professional engineers, would also support the use of technical services in the infrastructure to assist the state government achieve its 10 year development plan in accordance with the town planning, architectural and engineering codes and standards.

Other executive members of the executive committee are, Engr.

Dayyabu Tijjani, vice chairman, Engr. Lawan Umar, general secretary, Engr. Ja’afar Suleiman, assistant secretary, Engr. Abdullahi Tijjani Sulaiman, tech. secretary.

Others are Engr.Murtala Sala A. Garba, assistant tech. secretary, Engr. Lawan Usman, treasurer, Engr.

Usman Hamza Ibrahim as financial secretary, Engr. HabibM. Auwal as publicity secretary, Engr.

Rabiu Haruna as exofficio I, and Engr. Hadi S. Muhammad as ex-officio II. Engr.

Milad Maurice el.Helou, Civil Engineer, Triacta Nigeria Construction Company commended the Nigerian Society of Engineers Kano State branch for uplifting the status-quo of engineers in the state and enshrining unity among members.

He said Nigerian engineers are very hard working, dedicated and committed people who can compete with their counterparts in the world saying that he was very happy to be in Kano and Kano is my second home because the people of Kano are very friendly and peace-loving people.

Engr. El-helou who is also a Lebanese express his gratitude to the Nigeria Society of Engineers and the Kano state Governor Dr. Abdullahi Umar Ganduje for their unflinching support to Triacta Engineering Construction Company Limited and pledged to maintain the good relationship between his company and NSE.

P+ Measurement celebrates three years of PR measurement

I

ndependent PR measurement and evaluation agency in Nigeria, P+ Measurement Services is cele-brating its 3rd anniversary in the Measurement and Evaluation industry in the this year.

To commemorate this milestone, P+ Measurement Services has re-launched its

website, moved to a new service center located in the central business district of Lagos and organizing the AMEC’s measurement month with staff, shareholders and partners as part of the celebrations.

The third anniversary celebration of P+ Measurement Services is a look back to the company’s

history and achievements in redefining the Nigerian marketing communications landscape through the introduction of independent PR measurement and evaluation services.

Speaking at the anniversary, Philip Odiakose, Lead Consultant, P+ measurement Services said. “I would like to

take this opportunity to express my gratitude to our various stakeholders for their support over the years including our clients, regulatory body, suppliers, media partners, other business partners and above all, my colleagues. With their continual support and with the foundation built in the past, I have great confidence

42

WESTAFRICA BUSINESSNEWS

ANAMBRA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

Erosion: Anambra community bicker over partial ban on sand excavation

T

he People of Ihengwu Villiage, Oko in Orumba North Local Government Area of Anambra have called for outright ban on sand excavation at all beaches in Oko Town.

Ihengwu is one of the five villages that make up Oko Town, a community that is at the throes of massive gully erosion for a long time.

The villagers who protested on Saturday call on Anambra Government to save them from the Oko Town leadership who are campaigning for closure of the excavation site in Ihengwu village only.

Peter Okoli, Chairman of Ihengwu, said the recent move by the town leadership to stop excavation in Ihengwu was not because of erosion but a witch-hunt for

stopping payment of royalty.

Okoli said Mr Cyprian Nwammuo, PresidentGeneral of Oko Town was collecting the sum N200 per tipper from the village but did not use it to solve any of their problems.

He said the flood from Eke-Oko market which was channeled to Ihengwu was causing serious erosion challenge for them, adding that the town refused to do anything to save them.

“The president-general of Oko and some women of the town protested against sand excavation in Ihengwu but our problem in Oko is not about sand excavation, they are protesting for their money, not excavation, “The reason they protested was because we agreed to be giving Oko community

N200 each tipper but we also demanded that they should control the flood at Eke-Oko. “They never did anything to control the flood, so Ihengwu stopped paying them the N200 royalty, instead we are using that money to construct drainage for the Eke-Oko flood.

“We are not against closing of the beach, rather we demand that the excavation be stopped in the whole area and not Ihengwu alone, if we stop and others continue, it has not solved any problem.

“There are many communities excavating sand on the Odo River, Nanka, Awgbu, Amaokpala, Aronato in Ndikelienwu are all there, so if they want to ban excavation, it should be in all these places.

Also, Mr Arinze Anyalobu,

Leader of Ihengwu Youths, said it would only be fair that all mining activities at the various sites were stopped.

He regretted that instead of addressing the danger flood from the market posed to lives and property of Ihengwu people, the president-general was busy pursuing personal vendetta.

“We are suffering here, the village hall is at risk, fences are collapsing, even houses are threatened because of the market we gave them land to site market, Federal Poly Oko is also in Ihengwu.

“Since 2017 when we stopped giving this money they have not let us to know peace, they claim the excavation is responsible for erosion and should be stopped.

“We are not against

stopping it in Ihengwu, they should stop it in entire Oko and other communities in Orumba North that are also excavating,” he said.

An elder in the community, Mr Marcel Ezeofor, said Ihengwu people were peace loving who were not at war with the town.

Ezeofor said the erosion had been with them since history and dismissed the claim that that excavation was responsible for it.

“We want peace; they stopped us for three years and allowed others, let them stop it excavating sand from the beaches in Oko. “We are facing flood challenge here since four years, let them come and control this erosion which is destroying land and property because all of us are from Oko. Reacting, Nwammuo the president-general of Oko said he was not collecting

any of N200 per tipper from the village but insisted that the excavation should stop.

Nwammuo admitted that the market was causing flood challenge in Ihengwu but added that the local government authority was planning how to check it.

“Oko as a community is working hard to see that they stop the excavation, the state government has challenged us to stop excavation before they can help.

“Eke-Oko is newly constructed and the council chairman is working to control the flood caused by the newly built shops, they don’t pay anything to me, it is not true,” he said.

When contacted, Mike Okonkwo, Commissioner for Environment in Anambra, said he had met with stakeholders in Oko over the matter and that it was being addressed.

Newly Elected Old Motor Spare-Parts Market Boss Woos Opponents, Promises Road Rehabilitation

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t is finally a new dawn for traders at Old Motor Spare-Parts Market, Ugwuagba- Obosi, Idemili North Local Government Area of Anambra State

following the vow by the newly elected Chairman of the market, Ogbuefi Samuel Okechukwu Ezeobodo to reconcile with all factional groups in the market ow-ing

to bitter political bickering that have dragged on among traders in the market .Some of the traders have been in court over various issues surrounding the market

and its present leadership.

Ogbuefi Ezeobodo who has for years been regarded

as the main opposition leader in the Old Motor Spare-Parts Market otherwise known as

Onitsha North Council Boss Denies Using Thugs against Anglican Worshipers

C

hairman, Onitsha North Local Government Area, Hon. Patrick Agha Mba has refuted allegations made by the Legal Secretary, Anglican Diocese on the Niger, Mr Tagbo Anieto in which he purportedly claimed the Council Chairman, Agha Mba had a fortnight ago secured the services of about 250 thugs who assaulted some priests and members of the Anglican faithful who had gone to St Simon’s Anglican Church which is situated in the premises of Bishop Crowther Memorial Primary School, Onitsha to con-duct a church service.

The Legal Secretary to the Anglican Diocese on the Niger had in his claim accused the Council Chairman of preventing members of the Christian denomination of gaining access into the premises to conduct a service which he disclosed had been the practice for quite some time.

Bishop Crowther Memorial Primary School, Onitsha has been a subject of dispute and controversy as Anglicans have continued to claim ownership of the premises, citing that the land was the place the late Bishop Samuel Ajayi Crowther first stepped his feet during his evangelization mission in Igboland in

1857; a claim which the Anglicans have continued to back-up with relevant historical documents.

However, the claim of ownership has not gone down well with the State Government who recently took over the land with a gigantic signpost warning that trespassers on the land would be prosecuted.

While denying the use of thugs to assault worshippers at the disputed land, Onitsha North Council boss, Hon. Agha Mba said he never engaged the worshippers in any act of hooliganism, much more using thugs to attack the people who he was supposed to protect.

According to him, “I

never used thugs against my own people. It is not in my character. I am only a representative of the Anambra State Government.

My job is to maintain peace and good governance in my area of jurisdiction.

Bishop Crowther Memorial Primary School is government property and gov-ernment property must be protected accordingly”.

“I should not be maligned into a matter that is between the State government and the church.

Anambra State Government can never encourage any act of hooliganism or thuggery under whatever disguise, he stated.”

Anambra State Govt Donates Food Items to Flood Victims in Okpoko

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espite came the way of about 100 flood victims who were displaced by the recent flooding in various communities in Ogbaru Local Government Area.

The beneficiaries who received some flood items from the Anambra State Government were victims who sought refuge in some IDP camps in Idemili area of the vicinity near Okpoko.

Receiving the items such as rice, beans, cartons of soaps and other beverages from the government’s representative and APGA

flag bearer in the 2019 election for Ogbaru Federal Constituency, Hon Chin-we Nwaebili, the President-General, Okpoko Development Union (ODU), Chief Edwin Emesinwa, thanked the State Government and Hon. Nwaebili for remembering the flood victims who have been temporarily displaced from their homes, stressing that the community had done her bit to alleviate the sufferings of the people, but regretted that it had limited funds to meet the needs of the unfortunate victims.

In an interview with the press at Okpoko community Secretariat, venue of the disbursement, Hon. Nwaebili said that the gift items were a mark of concern from Gov. Willie Obiano in bringing succor to flood victims in Ogbaru and other parts of the State.

According to the former State law maker and Speaker, Anambra State House of Assembly, “Gov. Obiano has shown a great sense of love and concern to the people who were affected by the flood in their various communities

in Ogbaru and other parts of Anambra State by engaging generously to their upkeep in terms of feeding”.

She observed that it might not be enough, but added that the victims should be confident that their present condition was just temporary after which they were expected to return to the comfort of their various homes.

Highpoint of the event was the distribution of the food items to over 100 flood victims who trooped to the venue to collect their gifts.

“Mgbuka Obosi” defeated his closest rival and incumbent chairman of the market, Chief Emma Obiagwu with a large margin in a keenly contested election.

While interacting with our correspondent at his Ugwuagba-Obosi residence at the weekend, Ogbuefi Ezeobodo who is still engulfed in the euphoria of his feat at the market election said that his greatest priority was about restoring peace to the area as well as rehabilitating some roads in the market.

According to him, ‘‘mgbuka Obosi has not known peace for quite a long time now. We have a lot of litigations in court emanating from traders and the market leadership. It has led to disharmony which is not for the best interest of the traders and their businesses’’.

While promising to embark on the completion of the market hall which was started by past administration in the area, the newly elected market boss observed that the completion of the hall was long over- due as traders spend a lot of money securing venues for social activities.

He also earmarked plans to engage in the rehabilitation of some roads in the market and also pleaded for the state government assistance in achieving his lofty dreams immediately he’s sworn into office.

He decried trading activities in the market on Sunday, adding that such activities would be banned except for offloading of goods.

He, however , urged vigilante groups in the market to expect reforms in the security apparatus of the area for greater efficiency immediately after taking over as chairman.

SPORTS

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

43

Allegri unhappy in spite of another Juventus win

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aulo Dybala scored after 44 seconds for Juventus but they were made to struggle in a 3-1 win over a brave Cagliari team on Saturday in Serie A. Juventus, who have won 10 of their 11 league games, needed the help of an own goal by Filip Bradaric after Joao Pedro had equalised for Cagliari.

Juan Cuadrado wrapped up the points with a late goal set up by Cristiano Ronaldo, shortly after Cagliari had come close to making it 2-2.

Coach Massimiliano Allegri was far from satisfied, however, complaining that eight goals conceded was too many.

“We need to improve our defensive play especially in the middle of the field,” said Allegri, whose side host Manchester United in the UEFA Champions League on Wednesday.

“We allow too many crosses.

It isn’t good enough. Even after the first goal, we drifted out of the game. The sensation is we are less solid and the numbers confirm that.”

Dybala gave Juve the perfect start when he received a pass on the edge of the penalty area, twisted one way and then the other.

In spite of slipping as he struck the ball, he still scored with a right-foot shot past Alessio Cragno.

Cagliari fought back and, after having a penalty kick appeal for handball turned down following a VAR review, forced Juve goalkeeper Wojciech Szczesny into a point-blank save.

It was to block a Leonardo Pavoletti volley.

The Sardinian side deservedly levelled in the 36th minute when Joao Pedro controlled Darijo

Srna’s cross with an excellent first touch before beating Szczesny with a low drive.

But Juve were gifted a goal less than two minutes later by Bradaric who, under no immediate pres-sure, slid in and diverted Douglas Costa’s low cross into the net.

Ronaldo, who hit the post on the stroke of halftime, laid the third on a plate for Juan Cuadrado with three minutes left after Cagliari were exposed on the counter-attack.

It came minutes after Medhi Benatia prevented an equaliser with a lastditch block from Pavoletti.

Juve are now six points clear as they have 31 points out of a possible 33.

Inter Milan, who beat Genoa 5-0 earlier on Saturday, and Napoli, 5-1 winners over Empoli on Friday, are both on 25.

Suarez strikes late as Barca snatch victory at Rayo Vallecano Late goals from Ousmane Dembele and Luis Suarez earned La Liga champions FC Barcelona a 3-2 win at struggling Rayo Vallecano on Saturday.

The victory helped to keep them clear at the top of the standings.

Suarez slotted in a cross from Jordi Alba from close range to give Barca a deserved lead in the 11th mi-nute.

That was after they had made a flying start at a ground where they had eased to victory in their

previ-ous five visits and had not lost since 2002.

But Rayo, 19th in the table and with only one win all season, fought their way back into the game and midfielder Jose Pozo smashed an equaliser in off the post in the 35th minute.

Rayo winger Alvaro Garcia sent the raucous home fans into delirium early in the second half by stab-bing his side in front on the rebound.

Striker Raul de Thomas had struck the post with a diving header.

Barca might have had a sense of deja vu from their shock 2-1 defeat in Madrid by Leganes two months ago in which they also threw away the lead.

The Catalans adopted no nonsense tactics to get back into the game, throwing defender Gerard Pique up front and playing frequent high balls into the box.

Substitute Dembele got Barca out of trouble with a perfectly struck half volley in the 87th minute after a knockdown by Pique.

Suarez, who scored

a hat-trick in last week’s drubbing of Real Madrid, completed the comeback three minutes later.

He arrived at the far post to steer in a cross from Sergi Roberto, striking a fifth goal in two games and a ninth in total to move top of the league’s scoring charts.

Ernesto Valverde’s side lead La Liga with 24 points, four ahead of Atletico Madrid.

Alaves can move within one point if they beat Eibar on Sunday.

Emotions high as Gray seals Leicester win on testing day in English Premier League

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eicester City’s traumatic week ended with a 1-0 win at Cardiff City although the result was never the chief concern.

It was on a day when the tributes flowed for the Midlands club’s late owner Vichai Srivaddhanaprabha who died in a helicopter crash.

Several Leicester City FC players were due to fly to Thailand later on Saturday for his funeral.

A minute’s silence was held at all English Premier League grounds to mark last week’s tragedy outside Leicester City FC’s stadium in which four other people also died.

TV requirements saw Saturday’s games staggered over four separate kickoff times.

Liverpool moved top of the English Premier League — at least until Manchester City entertain Southampton on Sunday — after their 1-1 draw at Arsenal.

Manchester United recovered to win 2-1 at Bournemouth to move

seventh, while Newcastle United recorded their first league victory of the season, 1-0 over Watford.

Everton and West Ham United also won.

The final game of the day was arguably the most dramatic as Tottenham Hotspur almost threw away a three-goal lead against Wolverhampton Wanderers but held on to win 3-2.

Most attention was inevitably focused on the Cardiff City Stadium.

Tributes included a wreath brought on to the pitch before the game and the unfurling of a huge flag among the crowd in memory of the 60-year-old Thai billionaire.

A second-half goal from Demarai Gray sparked jubilation amongst Leicester’s players and fans.

Although, referee Lee Probert will face criticism for booking the forward after he took his shirt off in celebration to reveal a T-shirt with the words “For Khun Vichai” across the front.

“I feel proud, it’s been a really tough week for everyone,” said Leicester goalkeeper Kasper Schmeichel.

“The way everyone at the club handles themselves is a testament to the family Vichai built.”

At the Emirates, a superb late strike from Alexandre Lacazette gave Arsenal a point after James Milner.

Milner, who later broke his nose in a freak clash with team mate Joe Gomez, had given Liverpool a second-half lead.

A richly-entertaining game

threw up chances for both sides as Liverpool manager Juergen Klopp main-tained his record of never losing to the Gunners in six encounters.

Arsenal dropped to fifth after being overtaken by Spurs who climbed back into the top four after their win at Wolves.

They looked comfortable leading 3-0 at Molineux after quickfire goals from Erik Lamela and Lucas Moura and then a secondhalf strike from Harry Kane.

However, English Premier League debutant Juan Foyth gave away two penalty kicks which were con-verted by Wolves’ Ruben Neves and Raul Jimenez to leave Spurs clinging on until the final whistle.

On the south coast, Manchester United’s late win, via a Marcus Rashford strike, failed to alleviate Jose Mourinho’s disappointment at another below-par performance.

“I said at halftime I was the luckiest manager in the English Premier

League,” said Mourinho who add-ed that he thought Bournemouth should have been 5-2 or 6-2 up by then.

The win moved Manchester United level on points with sixthplaced Bournemouth.

Newcastle United fans finally had something to celebrate as Rafa Benitez’s side won at the 11th at-tempt after Ayoze Perez flicked home a 65th-minute header from a Ki Sung-yeung free kick.

The win took Rafa Benitez’s side out of the relegation zone at Cardiff’s expense, with West Ham, who beat Burnley 4-2, also edging further clear of the scrap at the bottom.

The Hammers’ deserved win was their first in the league since September and owed much to two goals from Felipe Anderson.

Everton beat Brighton & Hove Albion 3-1 — their third win in four league games — with Richarlison’s double taking his tally to six goals this season.

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WESTAFRICA BUSINESSNEWS

AUTOMOBILE

NOVEMBER 5 - 9, 2018

VW and Ford in talks on self-driving and electric vehicles: source V olkswagen AG and Ford Motor Co are in “exploratory talks” to jointly develop selfdriving and electric vehicles in a far-reaching strategic alliance meant to save the companies billions of dollars, according to a person familiar with the matter.

The German and U.S. automakers are expected to provide an update on the progress of the talks be-fore year end, said the person, who asked not to be identified.

Spokesmen for both automakers would only reiterate what they have said before about the compa-nies collaborating on the development of commercial vehicles.

“Our (memorandum of understanding) with VW covers conversations about

potential collaborations across a number of areas.

It is premature to share additional details at this time,” Ford spokesman Alan Hall said in an email.

Automakers globally are discussing teaming up to share the share the cost of developing autonomous and electric vehicles.

Partnerships on autonomous driving technology are different from region to re-gion.

Honda Motor Co earlier this month said it would invest $2.75 billion (£2.1 billion) and take a stake in General Motors Co’s Cruise Automation self-driving vehicle unit to jointly develop autonomous vehi-cles for deployment in ride service fleets globally.

VW and Ford are under pressure to roll out more

EVs in Europe, where emissions rules are being tightened in the wake of Volkswagen’s diesel emissions pollution scandal.

Volkswagen Chief Financial Officer Frank Witter on Tuesday said the carmaker was open to deeper alliances with outside companies, particularly in the area of autonomous driving.

Witter said sharing the carmaker’s electric cars platform MEB with Ford was theoretically possible, alt-hough VW is currently focused on rolling out the electric vehicle technologies among its own brands.

Ford executives and other sources previously told Reuters the two automakers were in talks about expanding product and technology alliances.

China tax hints bolster carmakers

Shares in some of the biggest carmakers picked up yesterday after China, the world’s biggest market, was reported to be eyeing a 50 per cent cut in vehicle purchase taxes.

Ford and General Motors were among the early movers, jumping 5 per cent and 3.8 per cent on the news. In Europe, Volkswagen’s shares rose by 5 per cent, with BMW and Daimler both up by 3 per cent.

The share moves were sparked by a Bloomberg report that China’s economic planning body was pro-posing to cut the tax on some cars from 10 per cent to 5 per cent

in a bid to revive sales.

China’s car market is expected to decline this year for the first time since 1990 as consumer confidence is hit by the trade war and an end to years of strong growth. Beijing has stepped in to stimulate de-mand before, cutting taxes in September 2015.

Robin Zhu, a Bernstein analyst, estimated that the move could boost sales by as much as 2.5m next year, leading to a modest rise in 2019 against expectations of a small decline.

China is the largest market for many carmakers with any slowdown representing a risk to their busi-nesses.

Daimler hit by Germany slump, CEO forecasts high fourth-quarter demand

D

aimler Chief Executive Dieter Zetsche has explained that customer demand remains strong even as a regulatory crackdown on diesel cars and a 13 percent sales slowdown for Mercedes-Benz cars in Ger-many weighed on third-quarter earnings.

“The automotive industry and thus also Daimler are still in a very challenging environment.

The contin-ued high demand from our customers makes us confident for the fourth quarter,” Zetsche said in a statement.

Third-quarter earnings before interest and tax (EBIT) fell 27 percent year

on year to 2.49 billion euros (2.21 billion pounds), hit by a 35 percent EBIT fall at Mercedes-Benz Cars to 1.37 billion euros.

The profit slide is accompanied by continuing friction between the German government and carmak-ers over whether to fit expensive emissions-reducing exhaust systems to older diesel vehicles and an ongoing U.S. investigation into emissions.

Sales of Mercedes-Benz Cars, a division that includes the Smart brand, are expected to reach last year’s level, Daimler said after reporting a 6 percent drop in deliveries in the third quarter.

Earnings were also hit by a provision taken after a court

ruling confirming a ban on the R134a air condi-tioning fluid used in MercedesBenz cars, Daimler said.

Daimler last week said its full-year operating profit would fall by more than 10 percent because of “government proceedings and measures in various regions”, in what amounted to the company’s sec-ond profit warning in four months.

In May German prosecutors searched Daimler’s offices as part of a fraud investigation related to pos-sible manipulation of diesel exhaust emission levels and U.S. authorities have asked MercedesBenz to explain emissions levels on certain vehicles.

WESTAFRICA BUSINESSNEWS

NOVEMBER 5 - 9, 2018

45

Natural Gas Production Up by 8 Per cent A total of 230.35Billion Cubic Feet (BCF) of natural gas was produced in the country in July 2018, averaging a daily production of 7,678.17Million Standard Cubic Feet (mmscfd), NNPC Monthly Financial and Operations report for July 2018 has stated.

The sum represents 8.81 per cent increase compared to the previous month of June 2018.

The report indicated that for the period, July 2017 to July 2018, a total of 3,084.09BCF of gas was pro-duced, representing an average daily production of 7,834.62mmscfd, while the daily average natural gas supply to gas power plants stood at 744.86mmscfd, equivalent to power generation of 2,898MW. release by NNPC Group General Manager Group Public Affairs, Ndu Ughamadu, explained that period to date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and Nigerian Petroleum Development Company (NPDC), contributed about 69.38 per cent, 21.69 per cent and 8.93 per cent respectively to the total

national gas production A further breakdown of the numbers showed that out of the total volume of gas supplied in July 2018, 127.19BCF of gas was commercialized, comprising of 35.55BCF and 91.65BCF for the domestic and export market respectively.

This translates to a total supply of 1,184.81mmscfd of gas to the domestic market and 3,055.00mmscfd of gas supplied to the export market for the month, implying that 55.98 per cent of the average daily gas produced was commercialized, while the balance of 44.02 per cent was re-injected, used as up-stream fuel gas or flared.

The NNPC July report said gas flare rate was 9.33 per cent, (706.96mmscfd), compared with average gas flare rate of 10.44 percent ( 816.73mmscfd) for the period July 2017 to July 2018.

In the downstream sector, the report revealed that the corporation continued to ensure increased PMS supply and distribution across the country to sustain seamless distribution of petroleum products and zero fuel queue across the nation.

It stated further that 2.18billion litres of white

products were distributed and sold by the Petroleum Products Marketing Company (PPMC) in July 2018 compared with 1.46billion litres in June 2018.

According to the report, the sales comprised of 1.84billion litres of petrol , 0.13billion litres of kerosene and 0.21billion litres of diesel, while total special products sold for the period was 10.70million litres, comprising of 0.87million litres of other special products and 9.83million litres of LPFO or 16 per cent, 12 per cent

and 6 per cent respectively.

The report disclosed that during the period under review, pipeline break stood at 204, of which 16 pipeline points either failed to be welded or ruptured/clamped.

It also indicated that 188 pipeline points were vandalized as against 165 recorded last month, with Iba-dan-Mosimi accounting for 124 points or 66 per cent of the vandalized pipeline, while Aba-Enugu, PHCAba and other locations accounted for the rest.

A total of 1,858 vandalized points was recorded between July 2017 to July 2018.

In the Upstream Sector, the NNPC Financial and Operations Report for July 2018 disclosed that average crude oil price stood at $72.57 per barrel in July 2018 as against $72.67 per barrel in June 2018.

Industry watchers attributed the oil price decline to the slight rise in the global inventories, saying the scenario is expected to continue in

the second half of 2018.

In July, the OPEC Reference Basket (ORB) increased marginally by 0.07 per cent to finish the month at $73.27 per barrel compared to the previous year ORB of $68.48 per barrel in the same period, indicat-ing a higher value of $4.7 or 7 per cent.

The July 2018 NNPC Financial and Operations report is the 36th in the series which began in 2015 on assumption of President Muhammadu Buhari’s Administration.

Finance Minister, Mrs Zainab Shamsuna Ahmed declaring open Executive Delivery Lab Session, aimed at radically revenue performance.

GenCos yet to receive payment for electricity since June – Official The Association of Power Generation Companies (APGC) says power Generation Companies (GenCos) have not received payment for electricity generated since June 2018 from the Nigerian Bulk Electricity Trading PLC (NBET).

The Executive Secretary of APGC, Dr Joy Ogaji, said this in an interview with the News Agency of Nigeria in Abuja on Sunday.

Ogaji said that GenCos were owed N500 billion for power generated from 2013, when they took over electricity generation, to December 2016.

“The GenCos debt is classified into about three categories, so when you are talking about debts, be-fore even NBET came, market operators were owing GenCos. “If you calculate all that debt from 2013 to December 2016, GenCos debt were about N500 billion, this debt that we are talking about is without interest.

“Because the Power Purchase Agreement (PPA) says if they delay to pay, GenCos are entitled to interest, so this amount is without interest, it does not also cover the cost for available capacity.

“You know GenCos makes capacity available, so the power that is been rejected it does not cover that one, because that one is a different cost.

“From 2017, NBET, through Federal Government’s Payment Assurance Guarantee has only been pay-ing 80 per cent and there is 20 per cent short fall till date.

“And for this year, since June we have not been paid,’’ Ogaji said.

On GenCos meeting their obligation on payment to gas companies, he said: “GenCos have been taking loans from the banks to be able to meet their obligations in the market and put power on the grid.

“Because when we don’t generate, we are called saboteurs they will start saying that the owners of the GenCos are PDP members that is why they are not generating.

“But the government is not looking at the cost implication of putting power on the grid and you are not paying for it.

“There is no business person that will want to continue business when you are not getting anything on it and upon that you are being accused

that you are a saboteur.’’

The APGC executive secretary, however, said GenCos were engaging NBET on the nonpayment since June.

Reacting to alleged nonpayment of GenCos invoice since June, Head Corporate Communication of NBET, Mrs Henrietta Ighomrore, told NAN that comment on GenCos not receiving their payment for their invoice since June was not accurate.

She said GenCos had always receive their payment as at when due, saying that at no time did NBET withhold payment to GenCos. “NBET do not retain any money, every money we receive from the DisCos, we immediately pay it to the GenCos to settle their invoices.’’

She said it was important to understand how payments were made in the electricity market.

“For instance, if you have January invoice, that invoice will be coming to you around end of February or early March.

“Because when the generating companies generate and then they send to us and then we send to the DisCos.

“Then all of these transactions at the end of the month, the Market Operator (MO) will now read the meter and will now raise the market settlement statement.

“The MO will now send it to us, we will send to the GenCos and the GenCos will also receive it and send to us, then we will send to the DisCos, so the issue of not receiving payment since June, that is not accurate.

“The thing is that most people in the electricity market don’t give very detail information, so you find out a lot of information outside are mere speculation.

“You must understand that for instance, if I receive January bill by the time it will be getting to me will be around March by the time I will be making the payment it will be middle or end of the month.

“But when somebody comes in March and says I have not been paid in January that is not accurate because there is no way you can pay January bill in January.

“The settlement statement is read at the end of the month, and at the end of the month they are sent to the market participants.

“So there is a time allowed for market participants to comment on the settlement statement.

“That whole time lag in the sector is about 90 days from the time the meter is read, to the time the settlement statement gets to everybody and to the time payments is done,’’ she explained.

Ighomrore, however, said through Federal Government’s provision of N701 billion Payment Assurance Guarantee loan, NBET had been making 80 per cent payment generation invoice of GenCos in the last 18 months.

“One of the things that the GenCos have not always being saying is this, there is a N701 billion that Federal Government approved loan and we use it to top up payment to the GenCos. “And that is not part of their contract, but because of the nonpayment that DisCos receive, Federal Government now taught of raising additional payment supplement so that NBET can use it.

“Now this loan that Federal Government gave to NBET is because of the low remittance that we get from DisCos, so that we don’t allow the GenCos to

suffer because of the low payment from DisCos. “So when people say that NBET is not making payment, it is not a true reflection of what is happening in the market,” she said.

On allegations of financial infraction leveled against NBET Management by an official of the company on a popular radio reality programme, the spokesperson said: “Unfortunately I have not listened to the transcript of the radio show, but there is no crisis in NBET, you can come to our office and see that everybody is going about their normal business.

“In an office there may be internal and operational issues, those internal issues are things we attend to internally.

“We have a policy manual; we have grievance procedure, if there is any body that is aggrieved, follow through the procedure and get result.

“So we are more focused on delivering technical duties, the internal operational issues are not things that should be splashed on the pages of newspapers or radio stations.”