Nigeria’s Financial & Business Newspaper TURNED ON CLOSING INDICES Project Syndicate Monday, December 16 - Sunday, December 22, 2019 www.businessamlive.com Africapitalism, Governance NSE ALL-SHARE 0.13% & Sustainability 45000 43500 42000 9 10 11 12 13 26,536.21 FTSE/JSE ALL-SHARE 1.53% 65000 50000 45000 9 10 11 12 13 4,095.03 FTSE 100 1.10% 7400 7300 business 7100 9 10 11 12 13 7,302.94 DOW JONES 0.012% NEW YORK – Europe has done 24500 it. The European Green Deal an- 24000 LOMÉ – The rise of digital nounced by the European Com- 23500 pay-as-you-go (PAYGo) services mission is the first comprehen- 9 10 11 12 13 28,135.38 in Africa is cause for celebration. sive plan to achieve sustainable S & P 500 0.0073% By enabling low-income popula- development in any major world 3000 tions, both rural and urban, to region... 2500 access the goods ... TOWARDS MORE EFFICIENT MARKETS Back Page 2000 Page 9 a.m. 9 10 11 12 13 3,168.80 CBN’s intervention war chest holds N317bn in reserves Summary Nigeria gets AfDB’s $124.2m Apex bank cooking up new strategies for 2020 THE BOARD OF DIRECTORS OF THE AFRICAN DEVELOPMENT BANK (AfDB) has Targets remain critical sectors driving growth approved a $124.2 million loan to finance the MOSES OBAJEMU drawn the sum of N24 billion to intervene CBN, as part of efforts to stimulate out- Urban Water Sector Reform and Akure Water in the country’s highly critical and pre- put growth, enhance value addition and Supply and Sanitation Project in Nigeria... HE ALMIGHTY DEVELOP- ferred sectors in line with the objectives engender productivity in the economy, es- Page 2 MENTAL intervention war chest of the SIR. tablished Real Sector Support Fund (RSSF) of the Central Bank of Nigeria But the huge war chest in the SIR shows to intervene in some critical development (CBN) has N317 billion in what the effect of foot dragging by participants, issues. FINANCE & INVESTMENT it calls “special intervention re- especially banks, who since it was set up, At the inception of the fund, banks were Public finance openness serve”T (SIR) as at the end of October 2019, have not found it attractive to push it as to access the fund at three per cent and on- down from N344 billion during the same many had expected at the onset. lend it to small businesses at nine per cent. AFTER MANY DECADES OF opaque period a year ago 2018. The SIR was set up by the CBN with It was later reduced to one percent for the budgeting process and unaccountable pub- In the 12-month interval, according banks expected to contribute to the reserve banks for them to lend at nine percent. lic expenditure practice in Nigeria, presi- to CBN data obtained by business a.m., in order to qualify to access it for onward dent Muhammadu Buhari last week direct- Page 2 the CBN and the participating banks had lending to their customers. ed the office of the accountant general of the federation (OAGF) to publish... Page 10

ENERGY CBN says oil earnings slide NIGERIA’S EARNINGS FROM the oil and gas industry declined by 2.62 per cent to N3.973 trillion in the first nine months of the year, from January to September 2019, accord- ing to data obtained from the Central Bank of Nigeria, CBN... Page 28

TRAVELLER AND HOSPITALITY Airlines, hotels develop thick skin MOST AIRLINES AND HOTELS in Lagos, Nigeria’s commercial nerve centre are not do- ing promo sales despite the yuletide, checks by Traveller & Hospitality have revealed. All the airlines that responded to our in- quiries on yuletide promo answered in the Page 30 L-R: Patrick Olima, representative of the managing director of Total; Osagie Okunbor, chairman of Shell group of companies in Nigeria and managing director, Shell Petroleum Development Company (SPDC); Tony Attah, managing director, Nigeria Liquefied Natural Gas Ltd TECHNOLOGY (NLNG); Mele Kyari, group managing director, Nigerian National Petroleum Corporation (NNPC); and Masimilianao Bertona, represen- tative of the managing director of Nigerian Agip Oil Company (NAOC), displaying the gas supply agreements documents after signing the IT innovations liberate the poor NLNG Train 7 gas supply agreement at the NNPC Towers, Abuja at the weekend. THE NIGERIAN COMMUNICATIONS Commission has expressed belief that 100 EXECUTIVE KNOWLEDGE SERIES million poor Nigerians can be lifted above ANALYST INSIGHT poverty line through collaborative efforts on Accounting policies and notes to accounts Employees as Social Media Influencers promoting information... THE FINANCIAL STATEMENTS of an entity HOW ORGANISATIONS CAN get work- Page 22 as earlier mentioned comprise of Statement of ers to post more company-related content Financial Position, Statement of profit or loss willingly. and other comprehensive income including Dell is doing it. MasterCard too. Even For subscription call: Statement of cash flow, Statement of Changes universities, not exactly bastions of social 07039371360 in Equities and Notes to the accounts. media influence, are embracing it. Employee advocacy in social media is gaining currency as an effective way to promote... N250 Page 13 Page 15 No 097 News: 2 & 4 Comment: 8 Finance & Investment: 10 Commodities: 10 Technology: 22 BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 2 NEWS CBN’s intervention... Page 1

However, banks more or less were indifferent to the fund be- cause of their insistence that the six per cent margin was not enough to cover the assessed risks inherent in lending to the targeted sectors, hence they shunned the funds. The RSSF is scripted to chan- nel more facilities to priority sectors of the economy, assessed to have sufficient employment capabilities, high growth poten- tials, increase accretion to foreign reserves, expand the industrial base and consequently, diversify the economy. In the new scheme, it will be used to support start-ups, as well as expand existing enterprises. The facility specifically targets improved access to finance by the agricultural value chain, manu- facturing, mining, solid minerals activities and other strategic sec- tors of the Nigerian economy. The initiative rules out any sup- L-R: Sheriff Machina, chairman, Board of Directors, Nigerian Shippers Council (NSC); Dakuku Peterside, director-general, Nigerian Maritime Ad- port for trading activities, while ministration and Safety Agency; Hassan Bello, executive secretary/CEO, NSC; and Chibuike Royimi Amaechi, minister of Transportation, at the NSC according top priority to projects stakeholders appreciation night, held at Intercontinental Hotel, Victoria Island, Lagos, recently. with high local content, import substitution, foreign exchange earnings and huge potentials for Akure city and vicinities. At the Fe- job creation. deral level, the project’s Urban Wa- The RSSF will have a maximum AfDB approves $124.2m for ter Reform component will establish tenor of 10 years, depending on the a water and sanitation investment complexity of the project, which programme that would contribute means that each project tenor Nigeria’s urban water projects to scaling up of the National WASH would be determined in relation Action plan 2018-2030. to its cash flow and life of the un- The project, which combines derlying collateral. “hard” water, sanitation and envi- It would also allow for mora- Akure, Ondo State capital, gets lion share ronmental protection infrastructure torium of one year in the loan re- Tola Akinmutimi, in Abuja rall project cost is $222.69 million facilitate urban Water Supply and with “soft” analytical and institu- payment schedule, while interest and will span five years from 2020- Sanitation reforms. tional reform support, aligns with rate will still remain at nine per THE BOARD OF 2025. Commenting on the project, the AfDB’s Ten-Year Strategy (TYS), cent yearly. DIRECTORS OF According to the development AfDB’s senior director at the bank’s its High 5s priority areas, and the Since the SIR was set up in NEWS THE AFRICAN DE- finance institution, the project is set Nigeria regional office, Ebrima Faal, Integrated Water Resources Mana- 2016, there has been relatively low VELOPMENT BANK to address bottlenecks in critical wa- said: “The project will particularly gement (IWRM) Policy. drawdown from it because the (AfDB) has approved ter supply services to households in contribute to improving the living According to available figures on banks did not see their participa- a $124.2 million loan the densely populated project area conditions of the communities in the bank’s interventions in Nigeria, tion in the intervention business to finance the Urban Water Sector and also help to install sanitation the project area. as at December 13 2019, its active as profitable. Reform and Akure Water Supply infrastructure for schools, hospitals “Involving these communities in portfolio in the country comprised Besides, the administration and Sanitation Project in Nigeria. and markets. the public awareness and marketing 61 operations, of which 54 are natio- of Godwin Emefiele, the current The approval for the project Specifically, it would provide activities, will increase the project’s nal and seven are regional. governor of the CBN, favoured cost, which was given on Thurs- residents of Akure city (Ondo State) ownership and ensure they pay for The total commitment to these CBN’s direct participation in the day by the bank but announced at and its environs, access to safe the water supply and sanitation projects is $4.8 billion and includes intervention schemes and is be- the weekend, includes an African drinking water and sanitation and services,” Faal added. water and sanitation projects worth lieved to have disbursed over N100 Growing Together Fund (AGTF) by implication, strengthen the On completion, the project will $606.0 million. billion through its interventions loan of $20 million while the ove- Federal Government’s capacity to benefit the 1.3 million residents of in agriculture, manufacturing, SMEs, among others. However, drawdown by banks from the scheme will be subject to Power supply drops to 753MW from 4,008MW their contributions to the Special Intervention Reserve (SIR) with business a.m. of Electricity Employees, NUEE. generated due to high frequency It added: “The dominant the CBN, while repayments would A report obtained Thursday resulting from the unavailability of constraint on December 12, 2019, be amortised, with quarterly prin- POWER SUP- from the office of Vice President distribution infrastructure. 0MW was due to unavailability of gas – cipal repayments remitted to SIR PLY HAS DROPPED Yemi Osinbajo stated: “On De- was recorded as losses due to water constraining a total of 2,885.5MW Account domiciled in the CBN. NEWS from 4,008 megawatts cember 12, 2019, average energy management. from being available on the grid.” Recently, Edward Adamu, the (MW) to 753MW, sent out was 753 MW/H (down by “The power sector lost an esti- Prior to the blackout, another re- deputy governor in charge of the indicating a loss of 1392.99MW/h from the previous mated N1,618,000,000 (One Billion port had stated: “On December 9, corporate services department 3,255MW, as the Transition Com- day). 2,885.5MW was not generated Six Hundred and Eighteen Million 2019, average energy sent out was of the CBN, said the bank’s inter- pany of Nigeria, TCN, struggles to due to unavailability of gas. Naira) on December 12, 2019 due 4,008MW/H (up by 159.19MW/H vention is targeted at improving ‘synchronise’ the system after the “170MW was not generated due to constraints from insufficient gas from the previous day). 3,122.5MW local production of four com- nationwide blackout, occasioned to unavailability of transmission in- supply, distribution and transmis- was not generated due to unavaila- modities, namely rice, fish, wheat by the strike of the National Union frastructure, while 311MW was not sion infrastructure.” bility of gas and sugar. While presenting a paper, “Gal- vanizing development finance the Central Bank of Nigeria, our Samson Echenim and monetary policy for growth,” approach to stimulating economic Buhari approves disbursement Adamu said the CBN intervened development is three-pronged, PRESIDENT MU- in the agriculture and manufac- centred on agriculture, micro, HAMMADU Buhari of N44.6bn Cabotage fund small and medium enterprises NEWS turing sectors through schemes has approved disbur- He said the ministry would be- country’s cabotage trade. The fund and infrastructure,” he said. like the Anchor Borrowers’ Pro- sement of the Cabo- gin meetings with indigenous ship was also to form a source of aid to He agreed the CBN’s interven- gramme, Commercial Agricul- tage Vessels Finan- owners in January to commence enable local ship owners compete tions transcend its core mandate tural Credit Scheme and the Real cing Fund (CVFF), to indigenous the disbursement process. favourably against foreign ship of maintaining monetary, price Sector Support Facility so as to ship owners. The CVFF is a special inter- owners in crude oil freighting on and financial system stability. strengthen the economy. Rotimi Amaechi, minister of vention fund created alongside the Nigerian waters. He said the bank undertook the Specifically, he said the apex Transportation confirmed the the country’s Coastal and Inland While the minister did not dis- developmental initiatives with a bank increased its lending to the long-awaited approval by the pre- Shipping Act, 2003, otherwise close the current value of the view to spurring economic growth two sectors to catalyse growth in sident on Thursday while speaking known as the Cabotage Act, to as- CVFF, Business a.m gathered that and job creation, which should critical sectors of the economy and at the Nigerian Shippers’ Council sist indigenous ship owners with the fund has reached $124 million be the responsibility of the fiscal create jobs. Stakeholders Appreciation Night acquisition of vessels to enable (about N44.6 billion) as at June, authorities. “It is pertinent to note that at (NSC SAN) 2019, in Lagos. them operate maximally in the 2018. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 ADVERTISEMENT 3 BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 4 NEWS

Tola Akinmutimi, in Abuja

DESPITE COM- Climate Change: 66% of Nigeria’s MITMENTS by the NEWS Nigerian govern- households still depend on wood for cooking ment to continue to initiate policies that costly than urban areas (N2,733)”, will reduce gaseous emissions the bureau added. to the minimum and make the On households’ access to elec- country’s environment healthy for tricity, the agency reported that living and productivity, latest fin- even when generated power is not dings indicate that little is being being fully off-taken by electricity done at the grassroots to promote distribution companies (DisCos), environment-friendly living. the national average for dwelling This fact is contained in the houses without electricity stood latest ‘Nigeria General Household at 44.6 percent, with rural areas Survey-Panel Wave 4 2018/2019’ clearly above the national average report produced by the National at 57.6 percent. Bureau of Statistics (NBS) in colla- The bureau stated: “North East boration with the World Bank. (79.1%) has the highest share of The findings are coming as households with no electricity, global leaders rose from the just and South South (27.2%), the least. ended United Nations Climate Furthermore, generators are more Change Conference (COP 25) held commonly used in South South in Madrid, Spain, advocating for a (24.1%) and South East (20.7%) united front to tackle the challen- zones than other zones.” ges of climate change in Africa. It would be recalled that the Specifically, the survey showed Secretary General of the Orga- under its ‘Energy Sources’ nisation of Petroleum Exporting sub-heading that 66 percent of Wolfgang Schneider, general manager, Five Star Logistics Ltd. and Mark Walsh, managing director, ENL Countries (OPEC) had said ear- households in the country use Consortium at the Nigerian Shippers Council stakeholders appreciation night, held in Victoria Island, Lagos on lier this year that “the oil indus- wood for cooking compared to recently. Photo: Samson Echenim. try must be part of the solution to 21.3 percent that use kerosene the climate change challenge. The despite the fact that households scale of the challenge means that ry cook stove and the most com- of households using LPG/cooking (9.0%), and North West (6.0%). no single energy source is a pana- spend on average N1,012 monthly monly used cook stove across the gas at 25.7 percent, although it has LPG/Cooking gas is more com- on wood as against the N969 being cea; nor can the contribution of an regions nationwide, with the ex- the lowest monthly average cost. monly used in the southern zones entire industry or group of coun- spent on kerosene. ception of South East (36.5%) and “Also, coal products are used than in the northern zones. A further analysis of the ener- tries be overlooked. South West (32.5%) where kerose- predominantly in the northern “It is also the costliest fuel for “This is not a race to renewables gy consumption types indicated ne is more commonly used. zones compared to the south, with all zones, with South East recor- that 43 percent of households use alone; it’s a race to lower green- The report clarified: “The South North East households using it ding the highest at N3,763, and house gas emissions”, the industry a three-stone open fire, which is West has the highest percentage the most (11.6%), North Central rural areas (N2,928) being more the most prevalent type of prima- expert added. Nigerian GTB get court powers to take lists benefits over Stallion over N30.5bn debt of AfDB, business a.m. Limited, company in receivership, was availed several loan facilities Microsoft’s totalling the sum of N30.5 billion to JUSTICE SALIU augment its working capital needs SAIDU of the Federal digital training NEWS as well as those of its related com- High Court sitting in panies. to career Lagos has granted an The loan facilities, which were order to receiver/ma- secured by the personal guarantee building nager appointed by Guaranty Trust of Sunil Vaswani, five choice pro- bank Plc, Gbenga Akinde- Peters perties located in Lagos, Port Har- Tola Akinmutimi, in Abuja to take over all fixed and floating court and Abuja, were said to be assets of Stallion Nigeria Limited, drawn down and used by Stallion A NIGERIAN company in receivership. GRADUATE AND Nigeria Limited, company in re- NEWS The judge who gave the order ceivership, in accordance with the BENEFICIARY of confidence. following Stallion’s inability to pay a the African Develop- offer letter. According to her, the skills she debt of N11,401,860,857.06 it owed However, when the facilities ment Bank’s (AfDB’s) acquired from the coding pro- the bank also restrained the direc- digital training programme - ‘Co- were matured, Stallion Nigeria Li- gramme have made her more com- tors of the company from obstruc- mited, company in receivership, ding for Employment’, Olashide petitive in the job market. ting the receiver/manager from control of the mortgaged properties Odetola, has described the pro- and the defendants companies and assets of Stallion Nigerian Li- “Never in my life would I have performing his duties. who guaranteed the loan failed to gramme as an enabling tool for her thought that I will have this oppor- Other defendants in the suit are mited. competitiveness in the increasingly liquidate the facilities, which have The receiver manager upon his tunity. For the first time in my life, I THP Limited, The Honda Place Li- continued to accrue interest. technology-driven global labour feel confident in myself. I am now mited, Connoisseur Investment Li- appointment then approached the market. The bank wrote several demand court in order to get the needed working from the comfort of my mited, Premium Seafoods Limited letters, made entreaties to Stallion Odetola, 31, was one of 2,000 home in the digital field,” she said. and Onward Fisheries Nigeria Li- protection to enable him perform students who took part in the trai- Nigeria Limited and the defendant his duties unhindered. After completing the five-week mited who were alleged to have companies to meet their obliga- ning programme launched by the programme, Odetola, who now guaranteed the loan. Consequently, counsel to the re- continent’s development finance tions to the bank but all to no avail. ceiver manager, Adamolekun urged works providing annotation and la- In an affidavit sworn to by a li- Following Stallion’s inability to institution in partnership with Mi- belling for an online company said tigation officer, Segun Omoshola, the court to restrain the defendants crosoft in April 2019, after success- pay the loan, the bank appointed and their directors, shareholders that the job had helped her to sup- filed and argued before the court by a receiver manager statutorily em- ful pilots in Nigeria, Kenya, Rwan- port her family. Temilolu Adamolekun, the depo- and their agents from intermedd- da, Senegal and Cote d’Ivoire. 46 power by law to take charge and ling with or disturbing his client, Her testimony reportedly drew nent alleged that, Stallion Nigeria remain in exclusive possession and per cent of the students have been cheers from scores of hopeful Akinde-Peters, the receiver mana- women. young people who had been in- ger, from performing his duties. The lady, who is among the vited to attend the conference. her partners sought to create. nolds, general manager at Micro- Justice Saliu Saidu, after hearing about 46 per cent of women-bene- Attendees also believe that Ode- “We placed all our bets on the soft Philanthropies Strategy, said Adamolekun, leading four other ficiaries in the programme so far, tola’s testimony was an illustration youth and for the first time, the pri- that the Coding for Employment counsels, while restraining the di- graduated from the University of of the AfDB’s ‘Jobs for Youth in Afri- vate sector, non-governmental bo- programme was “just one step on rectors of the defendants compa- Ibadan with a degree in Commu- ca’ strategy, which aims to create 25 dies and development institutions that journey to empower our youth nies from obstructing the receiver/ nication and Language Arts in 2016 million jobs by 2025 and to equip like the bank were not speaking in Africa to get the greatest jobs in manager from performing his du- but could not find a job. 50 million African youth with com- profit margin, we were speaking computer science.” ties, also issued an order protec- Reflecting on her experiences petitive skills. development,” Edosio added. The AEC is hosted by the African ting Akinde Peters, appointed by during and after the digital training In her address at the forum, Overall, the goal is to expand Development Bank, in partnership the bank to take over all fixed and at this year’s African Economic Uyoyo Edosio, AfDB’s programme the programme to 130 centres of with the United Nations Develop- floating assets of Stallion Nigeria Conference (AEC), held in Sharm task manager, said: “Jobs for Youth excellence across Africa over a 10- ment Programme and the United Limited, company in receivership, El Sheikh, Egypt, Odetola, who was is operational and we seek to create year period. The aim is to create Nations Economic Commission for whenever the assets are found in permitted to attend the training impact. Not just any impact but nine million jobs and to empower Africa. whatever form. The matter has class with kids, testified that she impact that can be scaled. African young people to become innova- This year’s theme was: Jobs, En- been adjourned till December 16, got two “gifts” from the training, youth deserve value -- that is what tive players in the digital economy. trepreneurship, and Capacity De- 2019 for the hearing of the substan- namely digital skills and a sense of the African Development Bank and Commenting further, Rich Rey- velopment for African Youth” tive suit. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 ADVERTISEMENT 5

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TOWARDS MORE EFFICIENT MARKETS ADVERT RATES TOWARDS MORE EFFICIENT MARKETS ADVERT RATES a m business a m business

TaOWARDS M OREm EFFICIENT MARKETS TaOWARDS M OREm EFFICIENT MARKETS SIZE COLOUR BLACK & WHITE BLACK & WHITE SIZE COLOUR BLACK & WHITE PUBLIC NOTICE PRODUCT FULL PAGE N520,800.00 N393,540.00 Acceptable FULL PAGE N520,800.00 N393,540.00 N289,380.00 Acceptable HALF PAGE N312,480.00 N231,504.00 HALF PAGE N312,480.00 N231,504.00 N185,220.00 13 x 4 Cols N353,052.00 N324,072.00 Format for Copy: 13 x 4 Cols N353,052.00 N324,072.00 N225,708.00 Format for Copy: 10 x 6 Cols N405,132.00 N258,132.00 Only electronically stored 10 x 6 Cols N405,132.00 N258,132.00 N234,948.00 Only electronically stored 10 x 5 Cols N387,744.00 N234,948.00 10 x 5 Cols N387,744.00 N234,948.00 N208,320.00 10 x 4 Cols N335,664.00 N208,320.00 advertisement materials 10 x 4 Cols N335,664.00 N208,320.00 N173,628.00 advertisement materials 10 x 3 Cols N243,096.00 N185,220.00 are acceptable 10 x 3 Cols N243,096.00 N185,220.00 N150,528.00 are acceptable 9 x 6 Cols N381,948.00 N237,300.00 9 x 6 Cols N381,948.00 N237,300.00 N208,320.00 9 x 5 Cols N324,072.00 N191,016.00 in PDF, JPEG & PNG 9 x 5 Cols N324,072.00 N191,016.00 N185,220.00 in PDF, JPEG & PNG 9 x 4 Cols N289,380.00 N185,220.00 format. 9 x 4 Cols N289,380.00 N185,220.00 N162,036.00 format. 9 x 3 Cols N243,096.00 N144,732.00 Storage device should 9 x 3 Cols N243,096.00 N144,732.00 N124,992.00 Storage device should 8 x 5 Cols N254,688.00 N185,220.00 8 x 5 Cols N254,688.00 N185,220.00 N144,732.00 8 x 4 Cols N231,504.00 N138,936.00 be CD or 8 x 4 Cols N231,504.00 N138,936.00 N130,788.00 be CD or 8 x 3 Cols N173,628.00 N127,344.00 Flash disk. Materials for 8 x 3 Cols N173,628.00 N127,344.00 N99,960.00 Flash disk. Materials for 7 x 4 Cols N202,608.00 N115,752.00 7 x 4 Cols N202,608.00 N115,752.00 N113,484.00 QUARTER PAGE N196,812.00 N138,936.00 colour QUARTER PAGE N196,812.00 N138,936.00 N115,752.00 colour 6 x 3 Cols N138,936.00 N75,264.00 adverts should be 6 x 3 Cols N138,936.00 N75,264.00 N69,468.00 adverts should be 6 x 2 Cols N97,272.00 N52,080.00 6 x 2 Cols N97,272.00 N52,080.00 N41,664.00 4 x 2 Cols N64,848.00 N32,424.00 accompanied 4 x 2 Cols N64,848.00 N32,424.00 N28,980.00 accompanied 3 x 2 Cols N48,636.00 N24,360.00 with a colour guide. 3 x 2 Cols N48,636.00 N24,360.00 N20,832.00 with a colour guide. 2 x 2 Cols N32,424.00 N16,212.00 2 x 2 Cols N32,424.00 N16,212.00 N13,944.00 1 x 1 Cols N8,148.00 N4,704.00 1 x 1 Cols N8,148.00 N4,704.00 N4,116.00 1 x 1 Cols Change of Name N4,400.00 1 x 1 Cols Change of Name N4,400.00 3 x 6 INSIDE STRIP N266,196.00 N150,528.00 3 x 6 INSIDE STRIP N266,196.00 N150,528.00 N138,936.00 4 x 6 INSIDE STRIP N289,380.00 N208,320.00 TECHNICAL DATA 4 x 6 INSIDE STRIP N289,380.00 N208,320.00 N162,036.00 TECHNICAL DATA 2 x 6 INSIDE STRIP N243,096.00 N138,936.00 Number of Columns: 2 x 6 INSIDE STRIP N243,096.00 N138,936.00 N115,752.00 Number of Columns: SPECIAL POSITION COLOUR BLACK & WHITE Six(6) SPECIAL POSITION COLOUR BLACK & WHITE Six(6) - - FRONT PAGE SOLUS 1 x 4.5 N450,000.00 Full page depth: FRONT PAGE SOLUS 1 x 4.5 N450,000.00 Full page depth: - - FRONT PAGE STRIP 2 x 6 N504,000.00 14.5 inches FRONT PAGE STRIP 2 x 6 N504,000.00 14.5 inches BACK PAGE STRIP 2 x 6 N463,008.00 N324,072.00 BACK PAGE STRIP 2 x 6 N463,008.00 N324,072.00 FRONT PAGE STRIP 3 x 6 N697,200.00 - Full page width: FRONT PAGE STRIP 3 x 6 N697,200.00 - Full page width: BACK PAGE STRIP 3 x 6 N578,676.00 N405,132.00 10.5 inches BACK PAGE STRIP 3 x 6 N578,676.00 N405,132.00 10.5 inches FRONT PAGE EARPIECE 3.7 x 1 N350.000.00 - FRONT PAGE EARPIECE 3.7 x 1 N350.000.00 - FRONT PAGE STRIP 4 x 6 N1,157,352.00 - Print process: FRONT PAGE STRIP 4 x 6 N1,157,352.00 - Print process: BACK PAGE STRIP 4 x 6 N810,180.00 N694,428.00 Web-Offset Litho BACK PAGE STRIP 4 x 6 N810,180.00 N694,428.00 Web-Offset Litho FRONT PAGE SOLUS 6 x 2 N636,552.00 - FRONT PAGE SOLUS 6 x 2 N636,552.00 - BACK PAGE SOLUS 6 x 2 N405,132.00 N347,256.00 BACK PAGE SOLUS 6 x 2 N405,132.00 N347,256.00 CENTRESPREAD N1,504,608.00 N1,273,104.00 Copy required: CENTRESPREAD N1,504,608.00 N1,273,104.00 Copy required: CENTRESPREAD HALF P. N1,099,476.00 N983,808.00 Camera-ready artwork CENTRESPREAD HALF P. N1,099,476.00 N983,808.00 Camera-ready artwork DOUBLESPREAD N1,388,856.00 N925,932.00 DOUBLESPREAD N1,388,856.00 N925,932.00 FRONT PAGE EARPIECE N295,176.00 - FRONT PAGE EARPIECE N295,176.00 - BACK PAGE EARPIECE N231,504.00 - All discounts BACK PAGE EARPIECE N231,504.00 - All discounts PAGE 2 N925,932.00 - PAGE 2 N925,932.00 - PAGE 3 N925,932.00 - are negotiable PAGE 3 N925,932.00 - are negotiable PAGE 5 N810,180.00 - PAGE 5 N810,180.00 - FULL WRAP AROUND N23,520,000.00 - FULL WRAP AROUND N23,520,000.00 - HALF WRAP AROUND N14,280,000.00 - ADVERT HOTLINE HALF WRAP AROUND N14,280,000.00 - ADVERT HOTLINE CONTACT: 08035555568 CONTACT: 08035555568 THE ADVERT MANAGER 08034246024 THE ADVERT MANAGER 08034246024 BUSINESSNEWSCORP Nigeria BUSINESSNEWSCORP Nigeria BUSINESS A.M. 07082256051 BUSINESS A.M. 07082256051 10B Stella Osholanke Street, Off Internationnal Airport Road, 07039371360 10B Stella Osholanke Street, Off Internationnal Airport Road, 07039371360 Ajao Estate, Isolo Lagos, Nigeria. Ajao Estate, Isolo Lagos, Nigeria. Email: [email protected] Email: [email protected] Thanks! We look forward to hearing from you. Thanks! We look forward to hearing from you. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 6 COMMENT

Capitalism & Prosperity with NNANYELUGO IKE-MUONSO

Professor Ike-Muonso is the Chief Transformation Officer at GTI Capital Limited

OMETIMES, THE MOST ENDURING solutions to problems are rooted in the mental models that feed them. In the same vein,S challenges can become more complicated, the more the under- lying mental models that support them fail the tests of facts and logic. Common culprits are many of the popular systems of beliefs rooted in tradition, religion, and fads. Coincidentally, we are pro- Mental models frustrating foundly cultural and religious people who are also easily swayed by trends. As such, it becomes easy for us to stand some of our actions our collective prosperity on ideologies that may be either able, there will be poor govern- untrue or misleading. Challeng- that ordinarily should have water our expense. Today, we are also open-heartedly embrace these ment performance. As such, our ing some of these belief systems, lacks the same, the followers help not only fantastically skilled but white-skinned people, we despise physical infrastructure becomes however, are critical in clearing the in creating salacious excuses to have institutions with the right and racially profile our people. decrepit out of the many years of haze and in better understanding cover those shameless fiscal rob- capacity to deliver long-term fi- We have derisive profile labels for neglect and abandonment. Cer- the behavioural structure that un- beries. They know that there are nances that will provide even bet- each ethnic group in Nigeria and tificated but poorly trained gradu- derlie the events in consideration. no consequences for those ac- ter results. Therefore, we have all believe that all persons with the ates populate our job market. The Some years ago, one of my young- tions. Even when these perpetra- that it takes to make our country DNA of those ethnic groups be- life expectancy rate continues to er brother’s friends wanted to ask tors receive prompts on the pos- even more exceptional. Very well- have in line with those mythical drop with each passing year. Car- me for some financial support. But sibility of the prosecution, their trained Nigerian professionals are and unfounded profiles. The Ibo nivores of political leaders who rather than go straight to the point, usual refrain is “God forbid” or “it scattered across the globe and are ethnic group are considered to have hijacked the entire system he said to me “my brother, I am is not my portion”. Yes, shamefully doing exploits wherever they are. have an excessive love for money consequently beleaguer ordinary now rich, and will need your sup- we have a mindset that calls on At home, we have the benefit of and places more importance on it people. In the face of all this, there port”. I felt so excited and happy for God to ‘forbid’ the consequences abundant natural and human re- more than the regard they have for is one narrow way to survive: join him and praised God for what he of an action that we consciously sources that can easily attract all any other thing. The Yoruba ethnic the government. Those in govern- has done. But I was wrong. He was undertook. This mindset is very the financing required for our de- group are deceptive and untrust- ment become wealthy easier with- not any wealthier than he used to much the same with a student tru- velopment. worthy. The Hausa/Fulani ethnic out making any investment. The be. He had to use that choice of ant that gleefully refrains that “it is The same thinking has made group are uneducated and mur- only requirement is to possess the words because his church teaches not my portion” when reminded many of our young ones to leave derous. Each of these false profiles “do or die” mentality to secure a that, presenting himself as lack- of class repetition as a possible the shores of Nigeria only to find may be modified depending on political position or appointment. ing money and confessing, the consequence. themselves in terrible conditions the profiler. But the unfortunate Once in, the new political job may same would cause the manifes- That also tries to explain the overseas. Many hitherto brilliant thing in all of this is that it frus- now serve as a platform to drain tation of that situation in his life. “do or die” mentality that appears graduates that could have secured trates trust and communication the system without any blame. It is And therefore, such confessions to underlie our everyday life. The employment in some outstanding which we so badly need to be able this state of helplessness that have should be avoided at all costs. The “do or die” mindset hinges on the organisations in Nigeria leave for to make good progress as Nigeria. made many to assume that noth- contradiction, however, is that the notion of the ‘end justifying the the so-called greener pastures. A With frustrated inter-ethnic ing can work without government. avoidance of the disclosure of such means’. In other words, what mat- substantial number of them, only trust and communication, mem- Ascribing the powers to make our unwanted situation would always ters most is the achievement of the discover too late that the best job bers of each ethnic affiliation feel country work to government is a result in a lie. And thus, more peo- goal and not the ‘how’ of it. The they could get for themselves out- safe only within their ethnic com- failure of mindset. That is why we ple are taught to deny or hide the handprints of this kind of think- side of the country was to serve as munity. Consequently, racial affin- are yet to free this country. We actual circumstances of their lives ing are too evident in our political a house help. Some even prefer to ity and ethnicity blossomed. That must use all nonviolent means in order not to be victims of that. and economic hustling. Politicians become farmers and gardeners is also the pillar of the mindset that possible to redefine the manner- So, we mire ourselves in the kill and maim countless numbers in some poorer foreign countries “he is our own”. Accordingly, “such isms of government in operation denial of our realities to avoid the of persons to manipulate the elec- than being well-earning farm- our own” must be taken care of re- and considerably tame those that confession of negativity. But that toral process and win success- ers who feed well in this country. gardless of who is displaced in the control that machinery. In any character of denying the fact is fully. People in business infringe Again, the large-scale preference process or defended irrespective of case, two fundamental structures commonplace in more amplified on duly signed contracts to close for items that are easily substitut- the enormity of the crime commit- grow an economy. They are an effi- levels when our politicians bra- a deal knowing full well that with able locally is a mindset failure ted. Ethnic biases work against the cient legal or judicial structure and zenly deny their failure to perform the illicitly acquired money, they that is carried over from colonial foundations of collective existence robust investment banking struc- as expected. Unarguably, more might be able to buy up the law. times. Recently more people are under the umbrella of one coun- ture. At present, both structures than 95% of our political leaders But these mindsets and the ensu- convinced that it is preferred to try. But it is increasingly becom- are defective but can nevertheless will go to any extent to prove that ing actions are dynamically vicious patronise and consume our lo- ing the norm and the reflection of be made more independent with they are delivering on their man- and bounce back on all. The first of cally made foods rather than the the failure of mindset. Politicians the right kind of determination. dates when millions of people such is the sustained destruction nutrient-deficient industriallyin power rather than use their of- Similarly, many also believe know and confess otherwise. They of the rule of law and the weak- produced and imported foods. For fices for the common good see it that without external financing find accomplices in the follower- ening of the justice system upon several decades, elitist consump- as a platform to corner collective from institutions such as the World ship who facilitate the denial of which the economic life of the tion has constituted one of the resources for the betterment of Bank, the IMF and so on that we the same reality. That is why hun- country resides. By destroying the crucial lures underscoring the cor- their ethnic groups. Political ap- will achieve very little. All that we dreds of thousands of people still strongholds of equity and peace, ruption of our leaders. pointments are brazenly lopsided. need them to show us the way. sing hosanna to ignominiously businesses fail to thrive. Secondly, Besides, our inexplicable pref- Prosecution of crimes against the Unfortunately, this thinking has unpopular political leaders de- such actions hijack and silence the erence for foreign foods and items state is selective in favour of eth- its roots in the colonial brainwash spite their well-known atrocities. rights and voices of the people. have now become so ingrained nic group members. The citing of that is pervasive in Africa. It is true Many followers are ready to die With more offenders going scot- that, many desire to genetically significant infrastructure depends that in the pursuit of development while lying to defend the short- free, impunity and lawlessness in transmute into the white race. That on ethnic preferences. The list is that we can register the financial comings of these politicians. And the society heighten and becomes is easily understandable since we endless. assistance of any institution or so, when they barefacedly divert a societally acceptable norm. have abandoned the taste buds for We are all victims of Nigeria’s country of our choice. However, duly budgeted amounts of money The result is that doing busi- our meals in place of theirs, em- faulty mental models which can such support need not originate into their private pockets, they ness becomes increasingly dif- braced their education, religion, nevertheless be corrected if those from developed countries or any receive applause rather than con- ficult. Without any law holding dressing, type of government, and at the driver’s seat make the need- such institutions fashioned to demnation. When communities those that are in power account- so on. But the aspect that has be- ed overhaul of the mindset. achieve their growth objectives at come worrisome is that while we BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 COMMENT 7 THE TEAM EXECUTIVE EDITOR Phillip Isakpa Tel.: 0809 400 0025 [email protected]

CONTENT MANAGER Moses Obajemu Tel.: 08038484048 [email protected]

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JOURNALISTS Adesola Afolabi Samson Echenim

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EVENTS & PARTNERSHIPS Amadi Iheukwumere 07082256051 [email protected] ______

Businessnewscorp Limited Phillip Isakpa Amadi Iheukwumere Adedotun Akande

Tiamiyu Adio Isaac Jayeola

10B Stella Osholanke Street, Off Internationnal Airport Road, Ajao Estate, Isolo Lagos. Fake motor insurance certificates Tel.: +234 (0)803 5555 568 NEGLIGENT THIRD gross premium currently written by erty damage get compensation Email: [email protected] PARTY VEHICLE all underwriters in Nigeria. This is from the negligent motorist. Also, Website: www.businessamlive.com rammed into my cli- more than enough incentive for the families who lose their loved ones ent’s vehicle about two insurance industry to be involved. to accidents on the road should weeks ago. My client The regulatory body of insurance get compensation from the guilty number or registration number. calledA me from the accident scene. professionals, the National Insur- motorist. Where the guilty party is uncoop- I told him to take photographs of ance Commission (NAICOM), Beyond enforcement, the vari- erative and refuses to produce his The the truck showing the registration should also be deeply involved. ous stakeholders need to step insurance certificate, simply look Insurance Broker number and also demand for the At least one per cent of the N40 up creation of awareness. Motor at his number plate and use it to motor insurance certificate, which billion will go to NAICOM in form (Third Party) Insurance is in the check the insurance status of his the negligent party surrendered. of statutory fees from brokers and interest of the policy holder. The vehicle. He snapped and sent to me. I used underwriters. But beyond pecuni- policy protects him from legal li- Fake motor insurance is a global the registration number to check ary gains, it will be a major mile- abilities to third users for bodily in- problem. In the United Kingdom the status of the vehicle on the stone for the NAICOM’s incumbent juries, death and property damage. and United States of America, Nigerian Insurance Industry Da- helmsman and his team. The benefits for both bodily injuries the problem is there, though on tabase (NIID), but no information On the part of government, the and death are unlimited, though a smaller scale. Nearer home, came up. I checked again later only Federal Road Safety Commission, there are parameters for arriving at the problem is also there, but the to get a result that the insurance law enforcement agents and other a reasonable figure, while property countries are doing something of the vehicle had expired. Mean- concerned agencies should be in- damage has a limit of N1 million. about it. About 40 per cent of the FRANCIS while, the certificate showed 17th volved. The government stands to So, if a motorist with a genuine vehicles that ply Kenya and Ghana EWHERIDO September 2020 as the expiry date. benefit financially from increased Motor (Third Party) Insurance is roads carry fake motor certificates. The certificate is apparently fake. premium from motor insurance. involved in an accident where third That is better than Nigeria where The NIID has about 2.53 million It will come in form of company parties are involved, his insurance Ewherido, ACIIN, about 79 per cent of vehicles carry vehicles on its database. Mean- tax and PAYE. Currently, those company will pick up the bills for fake insurance certificates and ACIB, is the while, there are about 12 million involved in the sale of fake motor the third party bodily injuries and only about 21 per cent of vehicles Managing Director vehicles on our roads. What hap- certificates do not pay any tax to property damage (to the limit of N1 carry genuine motor insurance pened to the balance of 9.5 million the government. It will also reduce million). I skipped death, because I certificates. To check the menace of Titan Insurance vehicles? They are either carrying unemployment because the in- pray death is not involved, but if it in Ghana, the National Insurance Brokers and can fake insurance certificates or they surance sector will employ more happens, the insurance company is Commission (NIC), the insurance have no insurance certificate at people. liable. The only problem the policy regulatory body in Ghana, will roll be reached on all. Another report said eight mil- But government has a more holder has to worry about is own out an electronic database in 2020. +2348132433631 lion vehicles on our roads have important reason to ensure the damage (damage to his vehicle). So It is akin to our NIID. In their own fake motor insurance certificates. stamping out of fake motor insur- why would people not be interested or titan. case, the verification may be done That represents about 67 per cent ance certificates. There are six in an insurance where you pay so through a mobile app, a text mes- insuranceng@ of the vehicles on our roads. In compulsory insurances in Nigeria little and are entitled to so much. sage or by scanning a code on the gmail.com monetary terms, even if you use and Motor (Third Party) Insurance Ignorance is a major inhibiting insurance sticker. The NIC said it is the N5,000 premium for private is one of them. The Motor Vehicles factor. collaborating with the Driver and vehicles (insurance premium for (Third Party) Insurance Act of Another group that needs to be Vehicle Licensing Authority, DVLA, commercial vehicles is N7,500 1945, which took effect from 1st seriously enlightened is other road and the police Motor Traffic and minimum) to multiply 8 million April 1950, makes it an offence for users. They must be well informed Transport Department, MTTD as vehicles, it comes to N40 billion anybody to use a motor vehicle on so that they can know their rights. well as the drivers unions, to ensure in lost premium. Faking of motor the road without having in place If motorists get hit by third party that the system is run effectively. insurance certificates is a multi- the minimum Motor (Third Party) claims, they will sit up and do the Reducing the number of vehicles billion naira business. There are Insurance to cover the motorist appropriate thing. with fake insurance requires col- entrenched interests and whatever against legal liabilities arising from Another area where we need to laboration. efforts we have made so far have third party bodily injuries or death. enlighten both motorists and other The war against fake motor barely scratched the surface of the The Insurance Act of 2003 extended road users about is the Nigerian In- insurance is one that the insur- problem. the cover to take care of liabilities surance Industry Database (NIID). ance industry and government Tackling the problem requires arising from damage to third party The database has the information must wage with everything in collaboration and the involve- property to the tune of One Million on all the vehicles with genuine their arsenal. Where persuasion ment of all, including insurance Naira. It is the responsibility of the motor insurance in Nigeria. It is and enforcement are not enough, companies and insurance brokers. federal government that enacted accessible to the public and you punishment should be meted out. At least, N40 billion is involved; the laws to ensure that third par- can check the insurance status of and that is about 10 per cent of the ties who suffer injuries and prop- any vehicle with either the policy BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019

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tics, insensitive to the weight What Should Economists Be Doing? of evidence. Bipolar Economics Last is the question of to recognize that conven- work.” making, and it is simple: if scope and ambition. RCTs tional economics, and the You can see their pres- you build it, they will come. are best suited to narrowly social sciences more gen- ence even in everyday life. Politicians, if confronted defined policy issues. If you erally, have not done well When your dinner host with strong evidence, will want people to sleep un- in helping us cope with our asks if you eat everything do the right thing. Yet other der anti-malaria bed nets, new world and its major is- and you say yes, you pre- economic research, often should you sell those nets or sues: the digital revolution, sume sticks and stones are produced by other Nobel give them away? Do condi- volatile markets, sharp cli- not part of the discourse. laureates, helps understand tional cash transfers to poor matic changes, and the re- Occasionally, during why this is not a satisfactory mothers cause them to enroll treat of democracy. cross-cultural encounters, ANDRÉS model. their kids in school? And my There is no denying that you are jolted into aware- VELASCO Start with decision-mak- personal favorite: do gender KAUSHIK serious empirical research ness of these latent as- ing. Psychologist Daniel election quotas improve the Velasco, a former BASU has helped make econom- sumptions. Kahneman and economist political representation of ics the important disci- Euclidean geometry presidential Richard Thaler received the women in India? (The an- Basu, former pline that it is today. At the was developed by explic- candidate and Nobel for their pioneering swer is a clear yes.) same time, it is now time itly writing down a series finance minister of work in behavioral econom- No amount of research Chief Economist to turn to economic theo- of axioms. What was not ics, a branch of research talent can design an RCT to of the World Bank ry. Ailing economies and written down, but was cen- Chile, is Dean of showing that the fully ratio- test whether more globaliza- and former Chief crumbling politics prompt tral to the Euclidean para- the School of Public nal homo economicus popu- tion is desirable, how big gov- Economic Adviser big questions about the digm, was the assumption Policy at the London lating economists’ models ernment ought to be, or what discipline’s foundations. of a flat, horizontal surface. School of Economics never was: human beings are triggers economic growth. to the Government It is no surprise that the Hence, Euclidean geome- prone to overconfidence, bi- As a result, randomistas can of India, is Professor biggest breakthroughs in try would not strictly apply and Political Science. ases, and reliance on fallible say little about the big issues of Economics at economic theory have oc- to all worlds, including the ONDON – How rules of thumb when making that inflame passions and Cornell University curred during times of spherical one that we in- can we know if an choices. around which grand narra- great turmoil. As I have habit. The Swiss mathema- economic policy is When the choices human tives are built. And it is such and Nonresident written elsewhere, it was tician Leonhard Euler real- beings must make are col- narratives, Robert J. Shiller Senior Fellow at the achieving its stated on the heels of the Indus- ized this in the eighteenth objective? Well, lective, the problems grow (yet another Nobel laureate) Brookings Institution. trial Revolution that the century, marking the start weL can create two similar exponentially. The observa- has shown, that organize our British economist Stanley of a paradigm shift to non- groups, randomly allocate tion that what is collectively thinking about the economy. Jevons had his seminal in- Euclidean geometry. (Of the “treatment” to only one rational need not be individ- If not woven into a broad THACA – The un- sight into how prices are course, giving rise to a of them and measure the ually appealing is the bread narrative of change, empiri- expected financialformed and goods and whole field named as not results. By comparing the and butter of modern public cal evidence can have lim- crash of 2008, the per- services acquire value. As being one’s own is still a groups, we will obtain a reli- economics. If a single group ited political impact at best. sistence of the slow- he wrote to his brother in staggering achievement.) able estimate of how effec- benefits from a particular Duflo and Banerjee are down that occurred 1860, “I cannot now read Economics is now at tive the policy is. item of public spending (say, well aware of all this. In their Iin its wake, the failure of other books on the subject a stage when we need to This technique, known as a local clinic) which can be thoughtful new book, Good conventional monetary without indignation.” This examine the assumptions randomized controlled trials, financed by borrowing – so Economics for Hard Times, and fiscal policies to revive was the start of the margin- in the woodwork that are or RCTs, had long been used that other taxpayers, cur- they write: “As we lose our economies, and the cracks alist revolution, soon to be hindering our ability to in medicine and social pol- rent and future, will help pay ability to listen to each other, in global trade that we are followed by path-breaking understand and map the icy. By applying it to devel- for it – then no amount of democracy becomes less witnessing now have all giv- contributions from Léon new world of digital tech- opment economics, Esther sermonizing on the empiri- meaningful and closer to a en rise to a widespread dis- Walras and others. nology and inter-linkages Duflo, Abhijit Banerjee, and cally demonstrated benefits census of the various tribes, quiet about conventional The decade or so af- that we are beginning to Michael Kremer revolution- of fiscal prudence will keep who each vote based more economics. As David Grae- ter the Great Depression inhabit. “Normal science” ized how many economists neighbors from demand- on tribal loyalties than on a ber wrote in a recent review marked another era of must continue, but it is work – and won the Nobel ing the clinic be built. As judicious balancing of priori- of Robert Skidelsky’s new breakthroughs. The Nobel also time to examine the Prize last month. Chile’s finance minister for ties.” What remains unclear is book Money and Govern- laureate economist Rob- theoretical foundations of The achievement was four years, I participated in how this observation fits into ment: The Past and Future ert Solow, reflecting on his the discipline. both intellectual and organi- countless debates over pub- their theory of social change. of Economics, “There is a high school years in the We need to go beyond zational: a global community lic spending. I cannot recall “The only recourse we growing feeling … that the late 1930s, wrote that “It mere statistical regulari- of randomistas has emerged, that an evidence-heavy aca- have against bad ideas,” they discipline of economics is was an obvious fact of life ties to understand, for ex- committed to using RCTs to demic paper ever helped my conclude, “is to be vigilant, no longer fit for purpose.” to us that our society was ample, how the world of change the world. New evi- side carry the day. resist the seduction of ‘the Rather than offering a malfunctioning politically money affects the supply dence would cause develop- And then there is the obvious,’ be skeptical of pro- specific critique or solution, and economically, and of goods and services. We ing-country governments thorny issue of distribu- posed miracles, question the I want to draw attention to that nobody really knew need to investigate how to discard bad policies and tion. There are some policy evidence, be patient with some foundational issues how to explain it or what to economics influencesadopt good ones. changes from which some complexity and honest about concerning the evaluation do about it.” It is no coin- our political choices, and Philosopher Nancy Cart- people gain and no one what we know and what we of economics. What makes cidence that several semi- how those choices that wright, Nobel laureates loses (economists call them can know.” This is both elo- assessing the discipline so nal works were published feed back to economics. Angus Deaton and James Pareto improvements). In quent and right, but it sounds challenging is the very na- around this time, such as And we must recognize Heckman, and Oxford’s Lant such cases, persuasive em- more like an expression of ture of the subject, which is John Maynard Keynes’ The that economic behavior is Pritchett have long argued pirical evidence, skillfully hope than a call to action. a strange mixture of science General Theory of Employ- shaped not only by prices that the evidence RCTs yield deployed, can change peo- The point is not to dispute and commonsense. This is ment, Interest and Money and regulation but also by is not the gold standard of ple’s minds. But most policy the importance of more evi- the reason for many policy (1936) and John Hicks’ social norms that are wo- reliability proponents claim choices cause someone to dence on “what works” in ed- mistakes by politicians – Value and Capital (1939). ven into our psyche and it is. But even if the evidence lose something. Potential ucation, poverty, or health. they take it to be all com- We live in similar times: influence our individual is strong, will voters and gov- losers then organize to fight But economics teaches that monsense. Solow’s quote is as rel- choices – and, through ernments find it persuasive? the change while potential we should allocate the mar- Another challenge arises evant for today’s world as those choices, the wellbe- Will policy improve enough winners remain uninformed, ginal dollar where it yields from the fact that, unlike for it was for the world in the ing of our communities, to make a difference to peo- uninterested, or both. Policy the biggest social return. most natural sciences, what 1930s. The only difference countries, and the world. ple’s lives? paralysis follows. The results And, given the veritable del- economists say can affect is that our world is more If there was ever a mo- from an RCT are unlikely to uge of RCTs in recent years, what they study. Consider globalized, so the malaise ment when reliable evidence change that. perhaps academics and do- the frequent complaint that is not confined to the Unit- fails to move politicians, this Moreover, human be- nors should devote more no economist has been able ed States and a few other is it. “The experts are ter- ings care about what others time and resources to the to predict, say, stock market advanced economies, but rible!” Donald Trump de- with whom they identify say big questions that cannot crashes or exchange-rate extends to Latin America, clared in 2016. “Britain has about them. And, as Rachel be studied by experimental fluctuations. Now, assume Africa, and Asia. had enough of experts!” Tory Kranton and Nobel laureate methods – and to learning such an economist exists. If Such times call for a minister Michael Gove re- George Akerlof have argued, more about demand for new she predicts a stock market paradigm shift in the sci- torted when confronted with we are willing to incur eco- empirical evidence and the crash next month, the crash ence trying to grapple with evidence that Brexit would nomic costs for the sake of barriers to policymakers’ use will happen immediately, the problem. All science, be bad for the British econ- affirming our identities. A re- of it. The same is true of cur- not next month, because including economics, is omy. One can imagine Rus- cent immigrant may choose ricula: many academic pro- people will sell their stocks based on assumptions. sia’s Vladimir Putin, Brazil’s not to learn the dominant grams risk teaching students right away. Moreover, the Many of these are written Jair Bolsonaro, Turkey’s Re- language of his new home every last econometric wrin- sole reason for the immedi- down explicitly, often as cep Tayyip Erdoğan, and the country in order to fit into kle while imparting little wis- ate crash may well be that axioms. In addition, how- Philippines’ Rodrigo Duterte a neighborhood populated dom about how to put that the economist predicted it. ever, all disciplines rely nodding in agreement. by other recent migrants. knowledge to work in the real An economist who is known on assumptions that are The experimental ap- Or voters who identify with world. As the dean of a public to be able to forecast crash- so deeply engrained that proach is mostly atheoreti- a populist leader may con- policy school, this causes me es with a lead time, and can even practitioners are not cal, which some view as an tinue to support him even if to lose a fair bit of sleep. demonstrate this ability, is a aware of them. These are advantage: let the data speak. his misguided policies are logical impossibility. what may be called the But the randomistas do have bankrupting the country. Nonetheless, we have “assumptions in the wood- Copyright: Project Syndicate, 2019. an implicit model of policy- Politics is often identity poli- Copyright: Project Syndicate, 2019. www.project-syndicate.org www.project-syndicate.org BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019

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with BBOXX. Togo has Pay-As-You-Go for taken the lead through the Lebanon’s Next Government “chèque solaire CIZO” pro- African Development gram, which offers target- ed subsidies to consumers Should Focus on Health and provides affordable utilities such as BBOXX, coverage, with the Ministry port health-care coverage. which operates in 12 coun- access to high-quality so- lar home systems. This of Public Health covering In order to maximize the tries, including Togo and treatment at public hospi- likelihood that policies and Rwanda, are offering solar initiative is enabled by the customer data gener- tals or even private ones, programs will achieve their home systems on a PAYGo where the cost of services is objectives, sufficient and basis to communities that ated by PAYGo methods. Governments should also capped at a predetermined appropriate evidence must are excluded from power level. be at the heart of decision- grids or living without reli- create incentives for com- panies to expand PAYGo But the ministry lacks a making processes. able energy access. well-delineated coverage Such reforms will offer BBOXX is also apply- solutions broadly to rural and urban communities, mandate, and it struggles to the next government an op- ing its PAYGo model to FADI control patient flows across portunity to reimagine the CINA equip individuals, house- and to invest in PAYGo val- EL-JARDALI various levels of the health- relationship between the LAWSON holds, communities, and ue chains. To promote PAYGo fur- care system, with only a people and the state. The small and medium-size limited capacity to direct protests have provided a enterprises with income- ther, Togo will soon pilot a El-Jardali is Professor Lawson is Minister unified open-source plat- the uninsured to public powerful reminder that or- generating assets, such and Chair at the hospitals. Moreover, the dinary citizens are critical of Posts, Digital as clean-cooking equip- form connecting consum- Economy, and ers to providers of PAYGo Health Management ministry’s expenditures on agents of change. Reforms ment, electric mills, and care are unpredictable, not must reflect that, with Technological solar-powered irrigation goods and services. The and Policy platform is expected to of- least because private hos- strong public participation Innovation of the systems. The Togolese vil- Department and pitals may petition it after helping to ensure that the lage of Sikpé Afidégnon is fer any private company Founder and Director Republic of Togo. wishing to provide goods the fact for treatment prices health system – and pub- a prime example of how above the cap. lic policy more generally this works in practice, as and services to rural popu- of the Knowledge to lations the ability to man- Policy (K2P) Center Yet the burden on the – is responsive to citizens’ BBOXX’s partnership with ministry is only growing needs. EDF Energy has powered age equipment remotely, at the American centralized access to data heavier, because it is re- At the same time, poli- the entire village with PAY- University of Beirut in sponsible for the care of a cymakers should introduce Go solar electricity. on customer expenditure, and access to a secure Lebanon. large proportion of Leba- mechanisms to strengthen Across Africa, PAYGo non’s growing elderly pop- accountability at all levels of approaches are facilitat- mobile payment process- OMÉ – The rise ing system. Consumers, in ulation (aged 65 and up), the health system. Lebanon ing the delivery of pub- who are projected to ac- is beset by corruption, and of digital pay-as- lic goods and consumer turn, not only benefit from you-go (PAYGo) easier access to PAYGo count for 21% of the total the health sector is no ex- products – such as neigh- EIRUT – A mas- services in Africa goods; their usage trends by 2050, from 7.3% today. ception: provider absentee- borhood lighting, phone- sive protest is cause for cel- are gathered reliably and Since formal-sector work- ism, demands for informal charging stations, Inter- movement has ers lose their health cover- payments, embezzlement Lebration. By enabling low- net-connected learning securely, thereby building swept across income populations, both much-needed credit his- age when they reach the of public funds, tamper- centers, radios, televisions, Lebanon. The rural and urban, to access tories to enhance financial retirement age of 64, and ing with medical bills, and and fans – to communi- immediate trigger was a the goods and services they inclusion. B there is no universal pen- unethical or unregulated ties. Indeed, as mobile proposed tax on gasoline, need not only to survive Efforts to improve qual- sion program for the elder- interactions with represen- penetration rates in Africa tobacco, and some social- (food, water, and shelter), ity of life often come down ly, up to 50% of this group tatives of pharmaceutical have increased – Togo has media platforms, including but also to thrive (educa- to cost. Low-income and may have no health insur- companies are rampant. reached 82.6% penetra- WhatsApp. But the ground tion, health care, and in- rural households can’t af- ance at all. (Informal work- Reform efforts should tion – and mobile money for unrest was fertile, owing come-generating assets), ford to invest in productiv- ers do even worse in terms promote far greater trans- has flourished, applying to vast and growing eco- the PAYGo business model ity-enhancing goods and of social security benefits.) parency at the top, say, digital PAYGo business nomic, social, environmen- can significantly improve services, and governments Administrative hurdles, by requiring the results of models has become easier tal, and health disparities, their quality of life. In fact, can’t afford to provide political clientelism, con- regular performance and than ever. And PAYGo’s po- which the next government with enough support, PAY- them. Innovative PAYGo fessional/religious-based financial audits to be made tential is only beginning to – led by an as-yet-unnamed Go models can revolution- business models circum- favoritism, and demands public. They should also be tapped. prime minister – must com- ize the provision of goods vent these obstacles. As a for out-of-pocket and in- aim to strengthen social ac- For example, PAYGo so- mit to addressing. If Leba- and services, thereby spur- result, digital PAYGo may formal payments further countability, for example, lutions can play a power- non’s leaders are to meet ring inclusive development. well represent a paradigm exacerbate health inequi- through community over- ful role in boosting finan- protesters’ demands for Digital PAYGo models shift in the pursuit of in- ties. Out-of-pocket spend- sight boards, civil-society cial inclusion, as the data greater equity and social take advantage of machine- clusive economic devel- ing on health in Lebanon is watchdogs, participatory generated by micro-trans- justice, they must begin to-machine communica- opment. That is why, as high – 36.5% of total costs budgeting and planning, actions and usage trends with far-reaching reforms tion and sensor technol- African policymakers, we – and lower-income house- citizen scorecards, and forms a credit history for to the public-health system. holds pay a disproportion- quality media. ogy to allow companies to consumers who might must support it. track usage, lock or unlock To be sure, Lebanon’s ate share. People with dis- Lebanon’s new govern- otherwise struggle to build leaders have failed its peo- abilities – some 10-15% of ment has an opportunity their assets, and access rel- one. Beyond improving evant data remotely. This, ple in myriad ways. Through Lebanon’s population – are to lay the foundations for a their access to financial a combination of corrup- among the most vulner- more stable, equitable, and together with flexible pric- services, such as loans or ing mechanisms, makes it tion and incompetence, able; their full health-care prosperous future. To suc- microloans, such a record they have steadily depleted needs are only rarely met. ceed, it will need strong and possible for firms to offer could enable them to ac- goods and services to con- the country’s resources – Worse, Lebanon’s consistent public support. quire health or life insur- Lebanon’s debt-to-GDP health-care system focuses Reimagining the health sys- sumers with limited capital ance. and variable income flows, ratio is among the world’s mainly on treating injuries tem would go a long way to- All of this would go a highest – and allowed a and illnesses, with less than ward securing it. bringing immediate im- long way toward improv- provements in living stan- waste-management crisis 10% of public health expen- ing overall wellbeing, rais- to grow. Civil wars, inva- diture allocated to preven- dards. ing productivity, and ad- For example, by lower- sions, and other crises have tive and primary care. Yet vancing inclusive growth. hastened the economy’s non-communicable dis- ing the upfront cost of ag- But, to make the most of ricultural machinery, mills, decline, contributing to a eases such as heart disease, this opportunity, not only steady rise in unemploy- cancer, and diabetes, for and irrigation systems, must the private sector PAYGo models can enable ment and skyrocketing in- which many risk factors are continue to invest in PAY- equality. controllable, cause some farmers to increase their Go solutions; the public productivity and, in turn, But health may be the 90% of deaths in Lebanon. sector must get involved as most fundamental inequal- The first step toward re- their incomes. To that end, well. After all, among the the Nigerian start-up Hello ity; after all, public health form is a mentality change. most fundamental respon- lies at the foundation of Health is not exclusively a Tractor, in partnership with sibilities of government is global tractor manufacturer economic prosperity and medical issue; it must be ensuring that people’s ba- social justice. And while viewed as part of a com- John Deere, has created a sic needs are met and that program that gives small Lebanon’s health system plex social, economic, and they have opportunities to has improved in terms of policy ecosystem. This farmers in Nigeria, Kenya, prosper. and Mozambique on-de- access and quality in recent means recognizing how For starters, govern- years, existing governance, political and social power mand access to the com- ments should provide pany’s equipment. financing, and delivery ar- affect health outcomes. It subsidies that further re- rangements leave many be- also means addressing en- Moreover, PAYGo mod- duce sign-up fees for low- els are helping to expand hind. vironmental risks to public income customers. This As it stands, roughly health (such as air pollution access to utilities. Capital- can be achieved through izing on falling solar battery half of Lebanon’s popula- and poor waste manage- public-private partner- tion has no form of health ment) and updating social- costs on a continent with ships that reduce the cost no shortage of sunshine, insurance coverage. This protection schemes (such of PAYGo solar home sys- makes them eligible for sec- as for disability or unem- so-called next-generation tems, like the one forged Copyright: Project Syndicate, 2019. Copyright: Project Syndicate, 2019. www.project-syndicate.org ondary- and tertiary-care ployment benefits) to sup- www.project-syndicate.org BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 10 FINANCE & INVESTMENT Stories by Moses Obajemu

AFTER MANY DE- Promoting openness and CADES OF opaque budget- ing process and unaccount- able public expenditure accountability in public finance practice in Nigeria, presi- dent Muhammadu Buhari mance of the federation in- last week directed the office cluding receipts from all of the accountant general the collection agencies and of the federation (OAGF) payments out of the Fed- to publish daily financial eration Account. statements of federal gov- This must be done with- ernment transactions in a in 14 days after the end of fresh initiative to enthrone the month, he stressed. greater transparency in Buhari equally directed government business, that the AGF and all ac- The new order in public counting officers of MDAs finance circles came on the “must publish quarterly fi- heels of the launch of a new nancial statements for gov- financial transparency poli- ernment as a whole and for cy/open treasury portal de- individual MDAs respec- signed to give the citizenry tively. These must be public access to information on There is no gainsaying fiduciary matters, improve the fact that the directive accountability and trans- is another strategy to battle parency in public financial corruption in government management. establishments to ensure The policy/portal, which that funds are not paid out was launched in Abuja by to undeserving people. the president, compels There have been several daily statements from the reports of illegal payments Office of the Accountant to phantom contractors by L-R: Osagie Okunbor, chairman, Shell group of companies in Nigeria and managing director, Shell Petroleum Development government officials who General of the Federation Company (SPDC); Tony Attah, managing director, Nigeria Liquefied Natural Gas Ltd (NLNG); and Mele Kyari, group manag- (OAGF) giving summary share such money without ing director, Nigerian National Petroleum Corporation (NNPC), sharing views at the NLNG Train 7 Gas Supply any service rendered, flows in and out of the trea- Agreement signing ceremony which held at the weekend at the NNPC Towers, Abuja. sury with a breakdown of This directive, if imple- mented to the letter and agencies responsible. stated, “has committed to Treasury will publish pay- “accounting officers are mensions, including MDAs, Represented at the closely monitored, will full implementation of the ments of at least 10 million responsible for providing functions and economic reduce waste in public launch by Tayo Alasoa- Freedom of Information naira while all MDAS must answers to any questions activities performed by all dura, the minister of state spending and give value Act 2014 so that govern- publish payments above 5 from the public relating to federal government agen- to the Nigerian tax payers for Niger Delta affairs, the ment-held-data-sets can be million naira made out of transactions completed by cies. president directed the ac- whose taxes are misap- availed and used by the me- all public funds under their entities under their charge.” These reports, heplied by government offi- countant general of the dia and the public at large. purview”. The president added stressed, must be ready federation (AGF), Ahmed cials year in year out. It will All MDAs are required to According to Buhari, that all MDAs must publish within seven days after the also help the country to get Idris, to henceforth ensure promptly respond to addi- the information “must in- monthly budget perfor- end of the month. the publication of daily much more done in terms tional requests for informa- clude the MDA respon- mance reports. The president also di- of project execution with inflows and outflows of tion beyond what is pub- sible, the beneficiary, the These reports, he noted, rected the AGF to “publish MDAs. direct benefits to the vast lished. purpose and amount of must include performance monthly Fiscal Accounts majority of Nigerians. His administration, he “With these reports, the each payment,” adding that of the budget by various di- detailing fiscal perfor-

do because the budget itself vestor and regulatory percep- is supposed to be a docu- Microfinance with tion. As an investor, we can Okowa signs N395.47b ment in which we have a pact change that narrative with with the people of Delta, so Insight ADOLPHUS the information contained Delta 2020 budget if we have projections, we An Investor’s Guide ABRAHAM in this episode. The CBN is must put down those pro- very clear on the nature of business a.m. nally generated revenue jections that we think are business MfBs can do and (IGR). achievable. those they cannot do as we GOVERNOR ”With the Appropriation “In the budget we have Non-permissible business can see below. IFEANYI OKOWA Bill signed into law today, it ensured that some key proj- Government Relation- of Deltaa State has become obvious that we ects have been provided for for microfinance banks ship: MfBs are not allowed has assented to as a government now have which includes the construc- I was in a gathering last to have direct banking rela- the 2020 Appropriation Bill, investors went into the busi- the financial document with tion of new technical colleg- week where we were to dis- tionship with the 3 tiers of with a promise to fast-track ness of micro financing on which we can work, and we es in all 25 local government cuss the future of microfi- government or their MDAs infrastructural projects for the basis of certain param- will hit the ground running areas in the state because as nance banks from an investor (Ministries Departments the benefit of Deltans during eters and when these param- in early 2020. a government we believe that point of view and during the and Agencies). They can- the period. eters shifted or became non ”It is very instructive for acquisition of technical skills welcome address from the not open account for them The who governor signed available and non-existent us members of the execu- will go a long way in equip- convener and chairman of and accept deposits either the bill in Asaba in the pres- they realized they had made tive arm of government that ping our youths to face the the occasion, the first state- in terms of savings or fixed. ence of the Speaker Delta a mistake. we pray that God will pro- challenges ahead. ment he made was a rhe- However they can deal with State House of Assembly, Some investors went in vide the resources projected ”The completion of all torical question on why the government officials as in- principal officers of the to MfBs with the assump- within the budget in terms drainage projects as well as industry has continued to dividual but will ensure that House and the clerk, said tion that they can use it as a of internally-generated rev- road projects will be seen underperform. There are all provisions of KYC (Know a higher receipts were ex- platform to mop up deposit enue. ”This is because if the too; our health sector will myriad of factors but the rel- Your Customer) and PEP pected from internal sources to fund their other projects resources do come from our also receive more attention evant one for the purpose of (Politically Exposed Persons) to augment revenue from the at cheaper cost. They soon IGR we will do the best that as well as other sectors.’’ this discussion relates to the are adhered to. They can also Federation Account. realized that the fact that we can to execute projects He thanked members individual goal of the inves- deal with beneficiaries of Speaker, Delta State your name carries the word and programmes in such a of the legislature for due tor. Several questions that will government activities that House of Assembly, Hon “Bank” does not give the manner that it will impact diligence while ensuring beg for answer would be the has to do with individuals. I Sheriff Oborevwori, who public enough confidence to very well on the lives of our speedy passage of the appro- investor’s motive. will explain this better in the presented to the governor walk through your door and people. priation bill. “I truly thank In previous episodes we coming episode. the bill passed by the legis- deposit funds as it is the case “There is no doubt that Mr. Speaker and the House have discussed the double Foreign exchange transac- lature, said that the Bill went with commercial banks. To despite the fluctuating price of Assembly for being very bottom approach where mi- tions: FX transactions comes through a rigorous process improve customer’s confi- of oil, Nigeria still depends a diligent in the course of their crofinance banks are ex- with its attendant risk and before passage. dence and compete with the lot on oil for the purpose of duties in handling the Ap- pected to exist for profit and challenges. Engaging in any Okowa assured that in commercial banks, many funding its budget both in propriation Bill. sustainability while caring form is a No No for MfBs. spite of the trying times in tried to upgrade their busi- the oil-producing and non- Earlier, Speaker Obor- for the poor and financially Should you want to keep your the nation his administration ness environment with huge oil producing states and the evwori said that the Appro- excluded. So, while attempt- license, or if the reason for was poised to implement the investment far in excess of the federal government. priation Bill went through ing to make profit, the path your interest in the license budget towards achieving potential level of business as- ”As a state we have tried to a rigorous process before it to profitability is guided by the desired developmental sociated with microfinance. be very reasonable with our was passed with a little up- products offering, pricing, goals, adding that he looked Their decision caused the budget size and I believe that ward review of the figure in promotion and place. Many industry a lot in terms of in- forward to increased inter- it is the right thing for us to the original proposal. continues on page 13 ????

BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 FINANCE & INVESTMENT 11 FIXED INCOME & MONEY MARKETS Investors stake N292.6bn on N45bn T-bills auction business a.m. Investors offered N192.43bn on the 364-day THE FREE tenor, bidding between 6.4 FALL OF INTER- per cent and 13.4 per cent. EST rates not- The CBN on Thursday withstanding, allotted only N1.8bn from investors staked N292.6bn the N53.86bn subscription at the N45bn treasury bills recorded at an interest rate auction, which took place of five per cent. last week. A total allotment of The auction results N4.5bn was made out of showed that the oversub- the N46.28bn subscription scription rate stood at 550 recorded on the 182-day per cent. tenor at an interest rate of The Central Bank of Ni- 6.19 per cent. geria offered N5bn, N10bn On the 364-day tenor, and N30bn across the 91- the CBN allotted at 6.88 day, 182-day and 364-day per cent N38.7bn from the tenors, respectively. N192.43bn subscription A total subscription of recorded. N53.86bn was recorded An analysis of the cur- on the 91-day tenor, with rent stop rates (or inter- investors bidding between est rates) of the 91-day, five and 7.5 per cent. 182-day and 364-day tenor On the 182-day tenor, showed that they all de- a total subscription of clined by 1.4 per cent, 1.01 N46.28bn was recorded, Salihu Jamari (right), managing director, Nigerian Gas Company (NGC), welcoming Roland Ewubare, chairman, NGC Board per cent and 2.49 per cent, with investors bidding be- of Directors and chief operating officer, Upstream, Nigerian National Petroleum Corporation (NNPC) to the 24th annual respectively. tween five and 8.5 per cent. general meeting of NGC, which held at NNPC Towers, Abuja, recently

can be used to support on- preceding month”, they said. Over $60bn traded in I&E going efforts to diversify the Analysts predict inflation to They also said the recent nation’s economy due to its reports of conflicts in some forex window Emefiele impact on improving access rise marginally to 11.68% agrarian communities in the to credit. middle-belt and core North GODWIN $60 billion worth of transac- Highlighting how digi- ANALYSTS end-of-the-year consumer (which has affected the sup- EMEFIELE , tion have taken place since tal finance contributes to AT GTI CAPITAL spending to drove up prices ply and prices of some farm GOVERNOR, the inception of the window economic growth, he said, HAVE projected on foods, clothing items, produce at a time the land Central Bank in April 2017, and our for- “When properly deployed that Nigeria’s transportation, and recre- border remains shut by the of Nigeria (CBN), said that eign exchange reserves are by banks, it could be used headline inflation (a mea- ation services (to mention federal government) are ex- over $60 billion has been at $39 billion, relative to its towards the development of sure of the average change but few) in November. pected to negatively impact traded in the Investors and low point of $23 billion in savings, insurance and in- in the price level of both “Secondly, we expect food price inflation. Exporters (I&E) window October 2016. vestment products for con- food and non-food items) the negative impact of re- “As such, we expect the segment of the foreign ex- “Today, our current stock sumers. will climb by a minimum of duced FX inflows due to oil food price sub-index to change market since it’s in- of external reserves is able “Additionally, it can pro- 7bps to 11.68% year to year price and output volatility climb to 14.38% year to year ception in April 2017. to finance nine months of vide Nigerians with a faster from 11.61% in the preced- (at a time demand for FX (or 1.36% m/m) from 14.09% Emefiele disclosed this current import commit- and more efficient payment ing month. by domestic importers is year to year (1.33% m/m) in in his opening address at ments.” Speaking further, service, as well as improved According to the ana- high), and CBN continuous the previous month. This the 2019 annual Bankers Emefiele called on the gath- access to credit. Access to lysts, the projection came draw-down on the foreign we anticipate being more Committee retreat in Ogere, ering of bank chief execu- credit, in particular, is often from the result of a pre-CPI reserves balance (which pronounced on the prices Ogun State. tives and top management recognised by smallholder survey carried out by them has led to Nigeria external of staple food items such as Highlighting the im- of the CBN to come up with farmers and MSMEs as a . The report analysis showed reserve slipping to $39bn) rice, yam, pepper, and veg- pact of the policy measures measures to address con- strong constraint to their that the headline infla- to pressure Core inflation etable.. which facilitated the na- straints to use of digital fi- expansion and growth. “For tion rate’s modest upsurge (non-food items price in- “Hence, we project a tion’s recovery from eco- nance tools in the country, the monetary policy au- we believe will mainly be dex) to 8.92% y/y (or 0.72% minimum of 7bps rise in the nomic recession, Emefiele noting that this is the focus thorities, improved access driven by a joint increase in m/m) from 8.88% year to Headline inflation rate to said: “The impact of a tight- of the 2019 Bankers Com- to finance for a majority of both the core inflation (i.e. year (or 0.74% m/m) in the 11.68% for November 2019”. er monetary policy regime, mittee retreat. Nigerians through digital non-food items price index) attractive yields in the mon- He said this became channels enhances the effi- and Food inflation (i.e. food ey market, and our efforts at imperative in view of the cacy of monetary policy ac- price index). supporting domestic pro- potential impact of digital tions, by aiding our ability to “Our position is hinged ductivity in the agriculture finance on boosting access influence credit conditions on the projected effect of and manufacturing sectors; to credit and economic in the economy. It could three notable drivers within along with improvements growth. also enhance fiscal buffers the month – seasonality ef- in oil production, have sup- Speaking on the theme of by increasing tax revenues fect, FX inflows reduction, ported continued foreign the retreat, “Delivering In- and minimising waste in and conflict report in some exchange inflows into the clusive Growth: Leveraging government intervention agrarian communities. Nigerian market. Digital Finance”, Emefiele programs.” “First, we expect the “In the I&E window over stressed that digital finance characteristic increase in Financial markets are catalysts of economic growth — FMDA president FINANCIAL nancial market – An agent She said that countries in Nigeria, while remain- MARKETS for growth and develop- with better-developed fi- ing a strong and reliable HAVE huge im- ment.’ nancial systems enjoyed partner to Nigerian mar- pact on the lives She explained that faster and more stable ket participants and in- of individuals and govern- though it was not everyone long-run growth and de- stitutions now and in the ment and should be devel- that played in the financial velopment. years ahead. oped to promote desired markets, the result of trad- “Evidence from recent Also speaking, Ladi economic growth and ing in these markets could empirical studies suggest- Oyefuga, acting chief risk development, Adetoun be seen and felt by every ed that deeper, broader, officer, Stanbic IBTC Bank, Dosunmu, president, Fi- participant in economic and better functioning who spoke on the theme, nancial Markets Dealers life—individuals, busi- financial markets could ‘Risk management as a Association, has said. nesses, and the govern- stimulate higher econom- development tool,’ said She said this while ment. ic growth and develop- identifying, assessing and speaking during the fi- Dosunmu said those ment,” she said. controlling threats to an nancial markets confer- trading in financial mar- Dosunmu said that organisation’s capital and ence organised by the kets influenced economic FMDA was committed to earnings was important for FMDA in Lagos, with the and social life in one way ensuring the growth of a every company that want- theme, ‘The Nigerian fi- or another. safe and efficient market ed to thrive. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 12 FINANCE & INVESTMENT CAPITAL MARKETS

Stories by Omobayo Azeez industry, measured by vol- ume, led the activity chart with 556.905 million shares AS ACTIVI- 10 indices down as equity valued at N5.678 billion TIES ROUNDED traded in 8,267 deals; thus up at the floor contributing 53.33 per cent of the Nigerian Stock Ex- and 38.81 per cent to the to- change last week, 10 out of investors part with N154bn tal equity turnover volume 14 indices tracking perfor- and value respectively. mances of the equities seg- The Healthcare industry ment of the market closed Analysts finger profit-taking for losses followed with 215.030 mil- negative, leading to N154 lion shares worth N122.603 billion loss for investors. million in 412 deals while The main index tracking the third place was con- share prices in the market, glomerates industry with a the All-Share Index, shed turnover of 89.601 million 319.31 points, amounting shares worth N466.294 mil- to 1.19 per cent loss to close lion in 874 deals. at 26,536.21, while market Trading in the top three capitalization dipped in the equities were Union Diag- same percentage point to nostics and Clinical Servic- close at N12.808 trillion es Plc, United Bank for Af- All other indices finished rica Plc and Guaranty Trust lower with the exception of Bank Plc. NSE Pension, NSE Insur- Measured by volume, ance, NSE-AFR Div Yield, they accounted for 379.095 NSE MERI Value and NSE million shares worth N3.066 Oil and Gas indices which billion in 1,704 deals, con- appreciated by 0.02 per tributing 36.30 per cent and cent, 0.03 per cent, 2.09 per 20.96 per cent to the total cent and 2.06 per cent and equity turnover volume and 0.03 per cent respectively value respectively. Meanwhile, the loss fol- Also, a total of 211,474 lowed similar pattern as in units valued at N2.379 mil- the previous week in which lion were traded during significant losses recorded the week in 22 deals, com- in the banking and Indus- pared with a total of 6,140 trial Goods sectors weighed units valued at N103,759.84 on the market performance, transacted the previous as both indices declined by week in 17 deals. -1.2 apiece. Similarly, 7,300 units of Market observers re- Federal Government (FGN) marked that the downtrend three of five trading ses- market, the market is ex- over the final weeks of the deals were traded investors Bonds valued at N8.073 was occasioned by intensi- sions of the week, the All- pected to shed points in the year as fund and portfolio on the floor of the Exchange million were traded in 4 fied profit-taking activities share index settled year-to- coming week, except there managers realign portfolios in contrast to a total of deals, compared with a to- by investors in the equities date (YtD) loss at -15.67 per come a policy-driven cata- prior to the start of 2020. 952.697 million shares val- tal of 27,096 units valued at market as the selloffs from cent. lyst. As the market closed last ued at N12.774 billion that N27.630 million transacted the previous week persist- According to experts, However, valuations re- week, a total turnover of Exchanged hands last week last in the preceding week ed. given the risk-off sentiment main attractive, hence the 1.044 billion shares worth in 17,279 deals. in 25 deals. With losses recorded on dominating the domestic hope of pockets of gains N14.628 billion in 14,974 The Financial Services

traded shares. 652.9 million shares traded, Top 10 stockbrokers push shares worth N120.4bn In terms of volume, EFG thereby accounting for 4.68 Hermes Nig. Limited opened per cent of the total share TOP 10 DEAL- broking forms traded 7.58 Stanbic IBTC Stockbro- NSE; Cardinalstone Securities the list with 1.48 billion worth volume traded. ING MEMBERS billion share units valued at kers Limited facilitated deals Limited traded N8.22 bil- of shares, representing 10.64 Cardinalstone Securities were responsible N120.4 billion which repre- worth N22.9 billion, 13.21 per lion, representing 4.73 per per cent of total volume of Limited, Chapel Hill Denham for share trades sented 54.32 per cent and cent of total traded shares. cent and Tellimer Capital traded shares in the month. Securities Limited traded valued at N120.4 trillion in 69.31 per cent of total volume Rencap Securities (Nig) Lim- Limited closed the month APT Securities and Funds 626.5 million or 4.49 per cent November this year. and valued of traded in the ited followed with N14.0 bil- with share trade worth N7.94 Stockbrokers Limited ranks and 610.9 million shares or This is even as the market month. lion or 8.06 per cent worth billion, representing 4.57 per 2nd and traded 1.25 billion 4.38 per cent respectively. maintained downward trend In terms of value of trade, of shares and Chapel Hill cent of total traded value. shares or 9.01 per cent, Stan- Other firms that made the with year-to-date deprecia- EFG Hermes Nig. Limit- Denham Securities Limited Other firms that made the bic IBTC Limited traded 848.8 list include Cordros Securi- tion of 14.09 per cent as at ed topped the chart of the traded N12.3 billion shares, list include Meristem Stock- million or 7.69 per cent and ties Limited with 510.9 mil- the end of the month under leading stockbrokers as it representing 7.12 per cent of brokers Limited (N7.0 billion, FBN Quest Securities Lim- lion traded volume of shares, review. traded the largest volume of total traded shares. 4.03 per cent), CSL Stockbro- ited transacted 655.5 million Apel Asset Limited (478.7 This is according to data shares worth N27.39 billion FBN Quest Securities Lim- kers Limited (N6.47 billion) or 4.70 per cent of the total million shares) and Corona- obtained from the Nigerian that represents 15.76 per cent ited trailed with N8.38 bil- and Coronation Securities volume traded. tion Securities Limited with Stock Exchange (NSE) which of the total value traded in No- lion, 4.82 per cent of the total Limited makes the 10th on Rencap Securities (Nig) 454.6 million (3.26 per cent) showed that the top 10 stock- vember this year. value of traded shares on the the list with N5.71 billion Limited ranks the 4th with traded volume of shares. Chams Plc appoints non executive NSE lifts suspension on shares of FTN Cocoa Processors director, announces retirement of ED fected companies suspend- Processors Plc was lifted to- CHAMS The company said Tomi- HE MAN- ment of Default Filing. ed on 2 July 2019, has filed day, Tuesday, 10 December PLC HAS AA- wa Aladekomo is the CEO of AGEMENT OF The rules provide that: its filed its audited financial 2019.” NOUNCED THE Big Cabal Media, which cre- THE NIGERIA “If an Issuer fails to file statements for the year The Rule 3.3 of the De- appointment of a ates compelling content for STOCK EX- the relevant accounts by ended 31 December 2018 fault Filing Rules reads: “The non executive director and African youth and is build- CHANGE (NSE) has lifted the expiration of the Cure as well as its first, second suspension of trading in the the retirement of an excutive ing the next generation of the suspension it placed on Period, The Exchange will: and third quarter financial Issuer’s securities shall be director from its board. Africa’s media brands. the shares of FTN Cocoa (a) send to the Issuer a statements for 2019 with lifted upon submission of the According to a notice Described as an experi- Processors Plc on July 2, 2019 “Second Filing Deficiency The Exchange, the NSE an- relevant accounts provided sent to the Nigeria Stock enced technology, media for late filling of report by the Notification” within two (2) nounced. The Exchange is satisfied that Exchange by the company, and marketing executive, company. business days after the end The management of the the accounts comply with the retirement of Olufunke Aladekomo led the team The NSE had announced of the Cure Period; (b) sus- bourse said: “In view of the all applicable rules of The AlomoOluwa as an executive that transformed the Guard- in a market bulletin dated pend trading in the Issuer’s Company’s submission Exchange. director after three years of ian Nigeria into a top-notch 2 July 2019, with Reference securities; and (c) notify the of their Audited Financial “The Exchange shall meritorious service is with digital media operation. Number: NSE/RD/LRD/ Securities and Exchange Statements, and pursuant to thereafter also announce effect from December 1, He has worked in se- MB34/19/07/02, wherein it Commission (SEC) and the Rule 3.3 of the Default Filing through the medium by 2019, while the appointment nior roles, leading digital notified dealing members Market within twenty- four Rules, Dealing Members are which the public and the of Tomiwa Aladekomo as for Heineken Nigeria and of the suspension of 11 listed (24) hours of the suspen- hereby notified that the sus- SEC was initially notified of a non-executive director is heading one of West Africa’s companies for non-compli- sion.” pension placed on trading the suspension.” with effect from December top digital agencies. ance with Rule 3.1, Rules for FTN Cocoa Processors 1, 2019 Filing of Accounts and Treat- Plc, being one of the 11 af- on the shares of FTN Cocoa BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 FINANCE & INVESTMENT 13 ANALYST INSIGHT rectors and Shareholders: Financial with Microfinance with Transactions with directors, officers, employees or per- IRENE PETER Insight ADOLPHUS sons who either individually REPORTING ATOLO An Investor’s Guide ABRAHAM or in concert with their family FCA, FCIIN members and beneficiaries Insight own five per cent (5%) or more of the equity of the MFB should be at arm’s length. HE FINANCIAL Accounting policies The approval of the CBN STATEMENTS of must be sought before such an entity as earlier Non-permissible business and notes to accounts is consummated. The prac- mentioned com- continued from page 10 the real estate that serves as tice of Leasing, renting, and prise of Statement the office accommodation, notes to the accounts make show the consistency of the sale/purchase of any kind is of Financial Position, State- owning real estate for specu- T comparability and under- treatment of transactions. is to harness the potentials common and should be ap- ment of profit or loss and lative purpose is not allowed. standability possible. Consistency is an enhanc- of your affiliations with busi- propriately handled. other comprehensive income Some investors may want to For example, IAS 2, ‘In- ing qualitative characteristic ness of FX nature, you would Other Businesses: These including Statement of cash use their license to mop up ventory Valuation’ permits of financial information. It have to seek an appropriate include business that may flow, Statement of Changes savings and buy several plots the use of First in First out is worth noting that entities license because as an MfB or may not require remote in Equities and Notes to the of land or pay for off plan de- (FIFO) and Weighted Average are not allowed to will fully you would not be allowed licensing. Though they may accounts. velopment with the proceeds in determining the value of change their accounting poli- to issue international com- have been licensed by other These statements are in other to dispose them closing inventories. If an en- cies. If there will be a need for mercial papers, engage in in- bodies as many would ar- quantitative and aggregated. when the value appreciates. tity A uses the FIFO method changing accounting policy ternational corporate finance gue, they are top rated in the For instance, the figure of This is not allowed. and entity B uses Weighted already adopted by an entity, and electronic transfer. prohibition list. MfBs shall Property, Plant and Equip- Speculative Loans: A cus- Average, the profits to be the provision of IAS 8 ‘Ac- Clearing House: A clearing not grant loans to companies ment (PPE) shown in the tomer may imagines that he/ reported by these entities counting Policies, Changes house in banking terms refers whose business objective is statement of financial posi- she can make money by buy- will be different as a result of in Accounting Estimates and to a platform form that allows gambling, drug trafficking tion is an aggregate of so ing palm oil at a cheaper cost the different methods used in Errors’ must be strictly fol- you exchange banking instru- and sale or distribution of many non-current assets when it is in season and then valuing inventories. lowed. ment of other institutions for fire arms. such as land, motor vehicle, On this basis, someone IAS 8 provides among value. MfBs are not allowed to store it till it is out of season building, machinery, lease cannot decide on the perfor- others that an entity can only play this role of mopping up before he/she sells at a huge property, etc. mance of the entities except change its policies if: third party cheques and other profit margin. As good as the The notes to the accounts the financial statement are 1. It is required by stat- instrument with the intention idea sounds, MfBs are not provide information that produced on the same ac- ute; to clear them through their allowed to grant this type of makes the figure in PPE com- counting policies. These poli- 2. It is required by an ac- correspondence bank. loan or any other loan of a • Adolphus Abraham is prehensible by showing a cies are always explained in counting standard-setting Real Estate: This is pretty speculative nature. managing director, Rigo schedule of PPE. The sched- the notes to the accounts. body; straight forward. Apart from Relationship with Di- Microfinance Bank ule of PPE explains individual Accounting policies on 3. The change will result in assets that form the PPE as the other are methods, rules, a more appropriate presenta- well as the accounting policy and conventions adopted by tion of events or transactions adopted by an entity in de- an entity in the preparation in the financial statements of preciating the individual and presentation of financial the entity. Governance, assets that form part of the statements. The accounting Finally, the explanatory PPE. The notes to the ac- policies as may be shown in notes, as well as the account- Risk & with counts, therefore, provide a the notes to the account also ing policies, give flesh to the EMMANUEL comprehensive explanation aid comparability of financial bones of other statements Compliance to the mere figures in other statements. that constitute the financial MOORE ABOLO, statements that constitute The accounting policies statements. Insight PhD the financial statements. The adopted by an entity also risks. A lackluster commit- greater encompassing needs should be looking to improve ment to GRC carries chal- of an enterprise governance upon what they have and lenging consequences for management solution. what they are using – such GRC BOARD PORTAL: Why corporations. Many boards that I know as avoiding using personal The resulting penalty may have made the switch to email accounts for com- cost them financially, create improve security, increase munication. The lessons are making the right choice matters instability and damage their efficiency, streamline com- there for all to see in the US. reputations. To fulfill their munication, get more sup- If an issue does happen, Y EXPERI- sary. This is where board por- cumbrous and have too high a fiduciary and other respon- port, and save money and like a data breach with the ENCE SIT- tal becomes an imperative. risk of error for large, complex sibilities to the best of their time. There are also those vendor they are working TING o n A board portal is a digital organizations to continue to abilities, boards will need to boards that realize that they with, it isn’t an overnight the boards tool that facilitates secure employ. rely on accurate, real-time can’t function any longer process to make the switch of compa- communication between Taking your board docu- information. without a board portal. That to a new vendor; that is why niesM teaches me that it can be directors and senior execu- ments and GRC processes The volatility of the mar- is the reality. directors should be very dili- a herculean task document- tives on their chosen device digital can eliminate the waste ketplace demands a high On the other hand, some gent when evaluating the dif- ing board activities associ- anytime and anywhere. De- and failure of many aspects of level of commitment to GRC. boards realize that the board ferences between solutions ated with Board oversight signed to elevate pellucid- these manual processes. Boards are facing strong portal that they are currently and make sure that they are functions and GRC-related ity and practice good gover- Automation removes scrutiny by regulatory bod- using does not live up to asking the right questions. matters. It can be very stress- nance, it provides features much of the human error ies, shareholders and other expectations. For whatever It is worth emphasizing ful and frustrating as a board that are meant to streamline that’s inherent with manual stakeholders. reason they are evaluating that to be efficient, boards member when you receive the entire meeting process applications and processes. These issues require a board portal, it is impor- of all sizes should be able board papers only a few days – from pre-meeting prepara- Board portal tools are the board directors to demon- tant that they can properly to communicate between before a board meeting. Not tion all the way to minutes logical answer for all GRC- strate leadership in devel- think through the process meetings in a secure environ- to also forget that board de- distribution. related activities, such as: oping a strong culture of and understand the ins and ment, on a variety of devices, cisions are quite often cir- Typically, board portals • Organizing and storing GRC throughout their cor- outs of board portals and and be supported with live IT culated several days after also come with a matching board materials; porations. They can only ac- how not all board portals are help that is only a phone call meetings, and sometimes as set of tools including agenda • Securing communications; complish this by abiding by created equal. Making the away without any wait times. hard copies. builder, meeting presentation • Conducting board evalu- governance principles, com- wrong board management Making board decisions isn’t Add to these challenges tools, search capabilities, vot- ations; manding strong oversight software choice can have always easy; using the right the fact that board members ing, and other features. More- • Submitting compli- over compliance matters and some serious consequences. streamlined GRC technology create, oversee and maintain over, board portals positively ance documents; developing acceptable risk My experience in working should be. ever-evolving organization contribute to a company’s • Recording board agendas profiles. with companies in assessing Given the increasing de- policies. This area of a board’s bottom line by saving time and minutes; It’s a tall order that boards Board portals convinces me pendence of directors on responsibilities is an ongoing and resources, cutting down • Strategic planning and face — one that requires a that all relevant stakeholders board portals, it is important activity. The organization, logistical expenses, and help- analysis; and board portal that provides be engaged fully in arriving at that the chosen solution will archival, and security of the ing organizations achieve • Assigning and tracking them with access to informa- a right decision. be able to satisfy the vast documents associated with sustainability targets. tasks. tion and supporting docu- Boards should always requirements of any given corporate policies are vital. Automation is quickly be- Board directors can man- ments on all aspects of GRC be looking for the most ad- organization. This isn’t a one-and-done coming a necessity in today’s age documents and reports in real time. vanced technology for their As such, executives must activity. corporate sphere. In the past, from a central dashboard and For any board, there are needs. Instead of an attitude be on the lookout out for the Policy management re- manual processes could be manage risk and compliance many added benefits from of reactivity, board members right technology for their quires organizing and ar- allowed because the option responsibilities while making switching to a digital solu- should be proactive and ap- organisation. Otherwise, it chiving documents so that for automation wasn’t there or governance transparent and tion and no longer using ply this as a best practice. might suffer from irreversible boards can review them in was just too expensive. actionable. paper board books. The same The attitude of compla- consequences that may harm relation to mandates, busi- With the speed at which Board directors accept could be said for switching cency can be something that internal processes, or worse ness objectives, risks and the corporate world is mov- the responsibility to navigate from a board portal that does gets boards in hot water and the company’s reputation. controls. Policies also need ing, automation is the only their companies through the not meet directors’ growing instead of waiting for some- Making the right choice really to be available to employees way to keep up with demand. uncertain, rolling waves of needs to one that serves the thing bad to happen, boards matters. and business allies as neces- Manual processes are just too legislation, regulations, and BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 14 FINANCE & INVESTMENT MARITIME AND SHIPPING FINANCE

Stories by Samson Echenim

THE NIGE- RIAN SHIPPERS’ Nigerian ports remain uncompetitive COUNCIL (NSC) and seaport ter- minal operators have again as Customs fails to fix scanners called on the Nigeria Cus- toms Service to fix scanners the Federal Government to lying comatose at the coun- NSC, terminal operators, urge Customs to act the challenges affecting the try’s seaports. ports. The maritime indus- Speaking to business try has such a huge potential a.m. on the sidelines of the to generate revenue for the 2019 stakeholders apprecia- federal government if the tion night, Hassan Bello, ex- right policies are made and ecutive secretary of the NSC enforced. So, the govern- said the 100 percent physi- ment must accord it full at- cal examination on cargoes tention. currently being done by the “Cargo clearing process Customs at the seaports at our ports, where contain- was hindering smooth and ers are checked one by one seamless trade at the ports is causing a lot of issues at and making Nigerian ports the ports. There are no scan- far less competitive than ners and this is not good for ports of neighbouring coun- a modern port. The Customs tries. have also not auctioned Also, Vicky Hastrup, overtime cargoes. chairman of Seaport Termi- “This is causing conges- nal Operators Association tion at the port and it does not of Nigeria (STOAN), who serve the best interest of the noted that the annual Nige- government. The NSC should rian Shippers Council stake- engage the Customs to find holders appreciation night a way to auction them. Some had become a major rallying cargoes have stayed for five point for maritime opera- years at the ports. tors to accelerate the growth “We have infrastructural of the sector, took her spot challenges. Bad road has at the event on Thursday become the single biggest to express the pains of port problem at Lagos ports and concessionaires concerning quire a new one. to reduce physical contacts goes at the port. The Federal federal government to fix the the story is the same at oth- the dead scanners and the Bello said the way im- when doing business at the Government has embraced scanners at the ports across er ports, dilapidated roads perennially gridlocked Apa- ports are processed at the port. Human interface or automation. Ultimately, we the country, noting that lack linking to the ports pa and Tin Can Island ports port, with Customs doing contact is a source of cor- are going to have the cargo of scanners at the port and “Seaports access roads access roads in Lagos. physical examination of ruption and delay,” Bello tracking note (CTN) and the poor port roads had eroded which have remained in Several cargo scanning containers remained a po- said. international single window, gains of port reforms em- permanent terrible state in machines inherited from tential source of corruption The Shippers Council which is a one-stop shop barked upon in 2006. the last 10 years had eroded Destination Inspection (DI) at the port, insisting that au- boss also said the council where all these transactions She, however, applauded the gains of port reforms service providers are cur- tomation of port processes would keep pushing for digi- can be conducted. It is open President Muhammadu Bu- in Nigeria, which we all rently lying in comatose at remained the way to go. talisation of all other aspects and transparent, so that hari’s push to fix the railway worked so hard to achieve. Nigerian ports. The country’s “It takes five minutes to of port operations. there will be no leakages of and roads. I am aware that the federal customs service has said the examine a container and He said, “Physical inter- government revenue; there Hastrup, who is also the government is working hard scanners were inherited in pass it when we have scan- ference also breeds ineffi- will be no cheating and no executive vicechairman of to fix roads. I am seeing the bad shape and could cost a ners. It is five hours when ciency. We want a situation under-declaration and no ENL Consortium, conces- efforts of the honourable fortune to repair. However, we do physical examination. where there is central pay- concealment of cargo.” sionaire of Terminals C and minister of transport to fix no efforts have been made So, which one is better? At ment system on the plat- Speaking earlier at the D at Apapa Port said, “I the rails, but for now, port by the service to repair just every stage there has to be form. A shipper can be at event, Hastrup, STOAN want to use this opportu- users are suffering due to one of the scanners, or ac- some level of automation his office and clear his car- chairman, also called on the nity to call the attention of bad roads.” PwC raises awareness on cyber- NPA to commence ballast security in shipping industry water compliance check PWC GREECE Kollidas, director, Technology a significant gap between C- THE NIGERI- Harmful Aquatic Organisms ships coming into Nigeria HAS AD- Consulting at PwC Greece suite’s understanding around AN PORTS AU- and Pathogens (HOAPs). For and that will start in the next DRESSED THE set an event agenda ensuring cybersecurity and cyber risks THORITY (NPA) this reason, the International two weeks. NPA does not do crucial issue of that the roundtable provided and those involved in man- will commence Maritime Organisation (IMO) that before because the con- cybersecurity for the shipping a forum to discuss openly the aging the organizations’ IT, Ballast Water Management has adopted several con- vention has not been passed industry by organising an common themes and issues bridging the gap is extremely Compliance (BWMC) before ventions to control marine into law. exclusive roundtable among that shipping companies are important in order to ensure end of this year, a top official pollution, which also check “The BWMC is composed COOs, CIOs and internal au- facing when addressing cy- that management and boards of the agency has said. ballast water, with the Marine of 22 Articles and one An- ditors of shipping companies. ber security risk. During the can assess the risks and prior- Sani Musa, a senior man- Pollution (MARPOL) 73/78 nex with five sections -- A-E. The roundtable offered the roundtable, Nicholas Karlsen, itize on immediate exposures ager in the Environmental Convention now ratified by Since its adoption, 14 Tech- opportunity for PwC to raise Senior Security Advisor, PwC or risks to the business and Department of NPA said the the Nigerian government. nical Guidelines have been awareness on the challenges Denmark, shared experiences operations. port authority’s state-of-the- Musa said before now, developed to support state shipping companies face with from real life incidents within During the roundtable it art laboratory where samples the NPA would have ships authorities, ports, shipmas- regards to cybersecurity, en- the maritime sector and dis- was also highlighted that as of ballast water taken from coming to Nigerian ports to ters, shipowners, equipment hance PwC’s support to ship- cussed with the audience the ships become more and more international ships would be discharge ballast water mid- manufacturers to encourage ping professionals in their ripple effects that these could digitized and more leanly tested for dangerous organ- sea, about 200 nautical miles the harmonised implementa- primary role of protecting have on shipping companies. manned, the requirements isms. and take in new one from the tion of the different require- their companies from cyber- A number of insights re- for cyber and information In order to provide weight ocean which is less likely to ments.” attacks and identify ways to sulted from PwC’s CyberSe- security are drastically rising and maintain its stability on infested with troublesome raise the level of importance curity Shipping Roundtable and are becoming more com- the water, ships take in ballast aquatic organisms and plants. to the shipowners and boards indicating that shipping com- plex. Thus, responding to the water when they are light on “Nigeria has ratified the of directors. It was also an panies need to adopt a ho- important issue of cybersecu- load. The water is sometimes BWMC adopted by the IMO opportunity to have shipping listic approach in managing rity should be a vertical team discharged at the port of call, in February 2004. The con- professionals express their cybersecurity as a business effort within a shipping com- especially when the ship is vention is meant to prevent, thoughts on the way forward risk while it is of great im- pany, involving a wide range getting more load. Unfortu- minimise and eliminate the for shipping companies in portance that the identified of functions from top man- nately, ballast water has been risks to the environment, building an effective cyber- cyber risks and threats are agement to legal, operations, identified as a major source human health, property and security programme. escalated to board and owner compliance, risk, technology of transfer of dangerous and resources arising from ballast Santos Equitz, shipping level and are treated with the and audit departments. invasive aquatic animals and water. So, the NPA is ready industry leader and George proper attention. As there is plants, usually refereed to as to enforce compliance by BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 EXECUTIVE 15 KNOWLEDGE SERIES In Association with MARKETING Pawel Korzynski OW OR- GANISA- TIONS CAN get workers Hto post more company-related content willingly. Dell is doing it. Master- Card too. Even universi- ties, not exactly bastions of social media influence, are embracing it. Employee advocacy in social media is gaining currency as an effective way to promote an organisation by the very people who work in it. Rather than creating adverts or hir- ing social media influencers to boost a brand, companies like Vodafone and Starbucks to schools like Oslo Metro- politan University (OsloMet) are tapping staff members at all levels to become brand ambassadors, with arguably Employees as Social Media Influencers improved conviction and results. ski University and Michael their institutions were highly positively associated with actively creating shareable and acknowledging staff In 2015, two years after Haenlein of ESCP Europe, it active on Twitter, LinkedIn, the number of participants’ corporate content. Go Social, advocates for their efforts. Dell launched its employee shows that corporate brand Facebook, and Research- company-related posts. Vodafone UK’s programme, Adobe holds contests like advocacy programme, its strength in itself is not suffi- Gate. Answers were coded Our findings contradict offers a wide range of mate- one which asked employ- employees shared more cient to mobilise employees in a five-point Likert scale those of previous studies rial posted on the telecom ees to design t-shirts that than 150,000 pieces of con- to post company-related from strongly disagree to that showed consumers were group’s consumer blog, as illustrate what “Adobe Life” tent with 1.2 million people, content on social media. strongly agree. To measure more willing to repost cor- well as external Vodafone means to them. It created a driving 45,000 clicks to the However, a company could the frequency of company- porate content of stronger news stories for employees high level of social engage- computer-maker’s website. signal its brand strength with related posts by employees brands. Our findings also in- to share. They also submit ment and t-shirts sold out At OsloMet, Norway’s third- corporate social media activ- on the same four platforms, dicate that employees whose their own content to Go So- within days. Every week, the largest university, 15 indi- ity, which in turn inspires we developed a six-point organisations frequently cial which, once approved, company’s internal commu- vidual shares by student employees to post company Likert scale ranging from post content on social me- is made available for others nications team also searches and employee advocates related content. 1=“always” to 6=“never”. dia may be more inspired to share. Reebok has a simi- social media for photos and had the same social reach Corporate brand strength to post company-related lar two-way approach: The messages employees are as a post on the university’s Brand strength is not was examined with ques- content than employees sportswear company creates sharing using #AdobeLife Facebook page, which had enough tions such as “Overall, how whose companies are less articles and blog posts that it and highlights some of the 30,000 followers when the We invited university aca- do you feel about the univer- active, assuming similar shares with employees, and best on Adobe’s digital sig- university began driving em- demics who had published sity you work for”, with an- brand strength. In other vets and shares content cre- nage in every office. ployee advocacy in earnest in the Financial Times Top swers ranging from “very low words, an organisation that ated by its workers. Marketers and consumers three years ago. 50 journals to take part in quality” to “very high qual- wants to promote employee Besides corporate con- are no longer the chief arbi- Encouraging rank and a survey we designed. We ity” and “not at all desirable” advocacy cannot bank on the tent generation, organisa- ters of a brand’s strength on file workers to promote the chose scholars because they to “very desirable”. Another strength of its curated brand tions that want to join the social media; workers have a brand they work for makes are a class of employee that item states “I believe that alone; it has to consistently employee advocacy band- strong voice too. When done sound business sense con- uses social media to enhance students that graduate from create and post corporate wagon would do well to right, advocacy programmes sidering regular employees personal brand image. They the university are: better content, making it easier for follow current industry best show that employees are are trusted more than CEOs also double up as front-line prepared/worse prepared; employees to share content practices. First, keep it au- truly a company’s greatest by the general public and employees who directly in- very satisfied/not satisfied; with their own network. thentic. When Dell rolled out asset. eight in ten people trust rec- teract with “customers”, i.e. successful/not successful; Further, the relationship its advocacy programme in ommendations from people students, playing a crucial highly credible profession- between corporate brand 2013, it invited, rather than they know. role in management and als/not credible”. strength and an employee’s mandated, its employees to There has been much marketing. The results of our survey, posts on company-related participate. The programme Pawel Korzynski is a Vis- research on whether or how Participants filled an on- based on 96 responses from content goes both ways, each proved to be so popular that iting Scholar at INSEAD as employees engage in social line questionnaire about em- participants in 19 countries, mediated by corporate social by mid-2015, more than well as an Associate Pro- media activities and support ployee engagement with or- showed that corporate brand media activity, our analysis 10,000 employees had en- fessor at Kozminski Uni- their companies’ brands, ganisation-related content, strength had no significant shows. Put another way, em- rolled and recruitment had versity in Poland, where he but few, if any, studies on corporate brand strength impact on participants’ ployee posts may boost cor- to be slowed. The company teaches Digital Leadership employee advocacy have ex- and social media activity, company-related posts on porate brand strength, but also encourages its advo- and Human Resource Man- amined the role of corporate and employee social media social media. However, cor- only when corporate social cates to curate and share agement. social media activity – con- activity and social media porate brand strength was media activity is frequent. content they find interesting tent created by a company network. The measures con- correlated with corporate and relevant to customers, itself. My paper, published sisted of multi-item scales social media activity, which, Two-way street keeping only 20 percent of “This article is repub- in European Management we adapted from previous in turn, was positively as- Among major companies their posts for company- lished courtesy of INSEAD Journal, seeks to plug this research. For organisational sociated with participants’ with formal employee advo- related content. Knowledge(http://knowl- gap. Co-authored with Grze- social media activity, we company-related posts. Par- cacy programmes, Vodafone Second, sustain enthusi- edge.insead.edu). Copy- gorz Mazurek of Kozmin- asked participants whether ticipants’ network size was and Reebok stand out in pro- asm by keeping things fun right INSEAD 2019 BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 16 EXECUTIVE KNOWLEDGE SERIES In Association with LEADERSHIP & ORGANISATIONS

Andrew C. Hafenbrack unlikely to give you a push. If you face a decision that ECOME MORE would benefit from a present HELPFUL and focus or are about to meet generous after with someone with whom just eight min- you need to work but have utes of mindful- trouble empathising, mind- B fulness is highly desirable. If ness practice. Reduced stress. Increased you are experiencing nega- awareness. More focus on tive emotions, mindfulness the present. The benefits of weakens them, which can mindfulness are well known help if those emotions are by now, following the prolif- making you overly anxious, eration of corporate mind- or hamper if the emotions fulness training programmes alert you to something you in the past decade. Rooted in really ought to be doing. Buddhism and embraced by Research such as ours on office workers, soldiers and the benefits and the costs of athletes, mindfulness has mindfulness can help you been widely studied for its know when it’s time to put benefits on a person’s mind on those headphones and and emotions. Increasingly, meditate. researchers also find that de- veloping a non-judgemental awareness of the present boosts empathy and other- focused perspectives, lead- ing to more behaviours that benefit the people around you. Those findings, however, have limited implications for the workplace as they are based on up to 12 weeks of training aimed at cultivating mindfulness as a personal- How a Few Minutes of ity trait. Not everyone has the time or resources to be Andrew Hafenbrack is away from work and family an Assistant Professor in the Meditation Makes You Management and Organisa- that long. Our latest paper, “Helping People by Being tion Department at the Foster in the Present: Mindfulness School of Business, University Increases Prosocial Behav- a Nicer Co-Worker of Washington - Seattle. He iour”, looks at temporary has a PhD in Organisational Behaviour from INSEAD. or state mindfulness that cept that it lasted only a an university to decide how motion. Participants in the We also showed that it is one can easily practice at two mindfulness conditions possible to run a study on day and participants – 250 much they would give to an- Lindsey Cameron is an work. In five experiments demonstrated significantly mindfulness in a business employees of an IT consult- other participant if they won Assistant Professor of Man- involving diverse samples of higher levels of compassion setting without resorting to ing firm in India – rated the the €120. Again, participants agement at the Wharton office workers and business in that note, as well as greater a multiweek programme. helpfulness of other team in the mindfulness condition School, University of Penn- school students in North positive emotions, empathy You can get someone to do a members in terms of provid- proved to be more generous sylvania. America, Europe and Asia, ing guidance. Again, par- than control-condition ones, and perspective-taking than single secular attention exer- we found that after as little those in the control group. cise in the morning for eight ticipants in the mindfulness donating on average €41 vs Gretchen Spreitzer is a as one session of seven or This finding suggests that dif- minutes without telling them condition engaged in more €23. This finding, unlike pre- Professor of Management eight minutes of mindfulness ferent mindfulness practices it is mindfulness. Such a prosocial behaviour. vious research that involved and Organisations at the Ross meditation, participants such as focused breathing study design provides a more recipient suffering, suggests School of Business, University demonstrated more proso- and loving kindness can have robust test of hypotheses as it Suffering not re- mindfulness can make you of Michigan. cial behaviour at work such quired more prosocial and altruistic similar results in the work- reduces any demand or pla- as helping a co-worker or even towards people who place, and individuals can cebo effects and gives more To capture a more ob- Chen Zhang is an Assis- donating money to someone don’t have an immediate simply choose the one that confidence in the results. jective measure of help- tant Professor of Leadership in financial distress. problem. resonates with them. While If participants don’t know ing, we designed a third and Organisation Manage- many people meditate as a what you are testing, they experiment that was not a ment at the School of Eco- More mindful, more means to pursue enlighten- are unlikely to give you the field study. This time, we To each her own prac- nomics and Management, helpful ment, our findings show that answer that they think you recruited 144 alumni of an tice Tsinghua University. We conducted our first Indian business school and We also found that mind- even secular meditations can want to have. experiment among 146 fulness enhanced prosocial improve the way we treat randomly assigned them to Laura Noval is an Assis- employees of a large US behaviours beyond devoting others. It must be said, however, either the mindfulness or tant Professor of Organisa- insurance company. The additional time or money, that notwithstanding its vari- control group. Both groups tional Behaviour at Impe- participants were randomly such as acting compassion- ous benefits, mindfulness of participants – all full-time Tool, not panacea rial College Business School, assigned to the mindfulness ately. Such behaviour was Our study, in press at Or- is not a panacea and can employees – were then asked Imperial College London. group or a control group. to imagine receiving a bonus mediated by empathy and ganisational Behaviour and indeed be counterproduc- Over five work-day morn- thinking from others’ per- Human Decision Processes, tive at work. One of us (An- of US$1,000, which they Samah Shaffakat is a fac- ings, the former group en- spective. is one of the first to look into drew) previously found that could keep or share with a ulty member at Liverpool gaged in breath practice by In our fifth experiment, the prosocial effect of state people lacked motivation co-worker in financial diffi- Business School, Liverpool listening to a seven-minute we recruited 139 employees mindfulness at the work- after mindfulness medita- culties. On average, mindful- John Moores University. She audio recording that induced in the United States and place. It contributes to the tion. Others have found that ness participants indicated was a post-doctoral fellow at mindfulness. The control randomly assigned them to body of research on mindful- mindfulness meditation ren- that they would give their co- INSEAD. group received no interven- worker US$482, compared three conditions: focused ness by showing that you can dered practitioners prone to tion. All participants com- to US$375 among control- breathing meditation, lov- become more prosocial at avoidance or susceptible to pleted afternoon surveys on group participants. ing kindness meditation work – not just self-rated but forming false memories. their prosocial behaviour Experiment no 4 was sim- (participants focused on giv- also assessed by co-workers at work, such as teaching a ilar to no 3, except that the ing feelings of warmth and – after just one short session The key is to see mindful- co-worker something new. windfall this time was in the kindness to themselves and of meditation. And you can ness as an extremely useful Those in the mindfulness form of a real €120 jackpot others) or a control condi- practice at your desk by lis- tool that helps you in certain condition reported signifi- and the proposed benefi- tion where they listened to tening to an audio recording. conditions. This requires you “This article is repub- cantly higher levels of help- ciary was not described as the news. They were then Mindfulness, in short, can be to have sufficient insight into ing behaviour than control being in financial distress. asked to write a note to a very accessible and relevant your situation. If you are lished courtesy of INSEAD participants. We asked 66 business or eco- colleague to inform her that for the workplace. feeling unmotivated at work, Knowledge(http://knowl- The second experiment nomics students at an Austri- she had been denied a pro- for example, mindfulness is edge.insead.edu). Copy- was similar to the first, ex- right INSEAD 2019 more than banking BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 EXECUTIVE KNOWLEDGE SERIES In Association with 17 MANAGEMENT

Now, why would a firm be vulnerable? We find that vulnerability starts at the top. It’s a consequence of the leadership team being short term-oriented and staying within in their famil- iar [settings]. They don’t step outside the bounds of their industry. They don’t chal- lenge themselves. As a consequence, there’s not a lot of curiosity. They don’t invest in foresight, which is the second big fac- tor. They don’t undertake disciplined searches for op- portunities using techniques like lead user analysis. They tend to be more inside-out thinkers. That is, they say, “We’ve got this capability, or this resource. What do we do with it now?” That sets them up to be always reacting. To us, that’s the definition of a vulnerable organization. It’s always in react mode and has lost its strategic degrees of freedom.

Knowledge@Wharton: If organizations need to be vigilant all the time, why does vulnerability seem to be the norm? Schoemaker: The reason is that day-to-day pressures really command a lot of attention. It’s almost like Gresham’s Law of Planning, In the Digital Age, How Companies where the less important stuff drives out the more important stuff, which has Can Go from Vulnerable to Vigilant to do with the longer term – which always can wait, people think, but in fact, OMPANIES Q2 Technologies who also In the 10 years we’ve been strong leadership commit- six or seven technologies. you’re using up precious THAT ARE VIGI- served on the faculties of the working together on this ment. [For instance], autonomous time. It has to do with where LANT — and University of Chicago and topic, we have found that cars integrate some 20 differ- the organization’s attention responsive to Wharton. whenever an organization Knowledge@Wharton: ent technologies. It is hard to goes. changes in their Day and Schoemaker re- was late to pick up a weak Paul, why is vigilance so predict when everything is at We focus, in our book, C signal of either a threat or important, especially at a the right point of reliability, business environment — cently published See Sooner, on the leadership team. We see higher increases in their Act Faster: How Vigilant an opportunity, there was time of digital turbulence, cost and functionality, to don’t think it is one person, market capitalization than Leaders Thrive in an Era someone in the organiza- as you say in the subtitle of make a car function far bet- one CEO or a board member those that are not. The need of Digital Turbulence. The tion that, in fact, knew all your book? ter. It seems digital innova- who can say, “This is how you for vigilance increases as book offers insights on how about it. But the leadership Paul Schoemaker: You tions happen suddenly. In become vigilant.” We ask the digital technologies chal- leaders can spot and respond team didn’t know about it. have different combinations fact, there’s usually a long question: “What must the lenge existing business mod- sooner than their competi- We built on that insight to of technologies out there, gestation period. But how do leadership team do at the els. Early warning signs may tion to non-obvious signals come up with this notion of with some still emerging you get a fix on this combi- corporate level, the division not be apparent to compa- that foreshadow opportuni- a ‘vigilant organization.’ and other already developed natorial complexity? There’s nies that are complacent, ties or threats to their busi- technologies. When they an exponential explosion if continues on page 18 so leaders need to groom ness. Knowledge@Wharton: coalesce to make something you have 20, 30 technologies their organizations to be In an interview with What’s the payoff for a vigi- possible — a new electronic that may coalesce. So, you responsive to weak signals of Knowledge@Wharton, they lant organization, if it is more digital product, [an] Uber, need to prepare for multiple potential threats and latent identified the attributes that vigilant than its rivals? [or an] Airbnb — people scenarios. opportunity. This needs to leaders and organizations Day: We were fortunate don’t see it coming quickly, be done throughout each need to defend themselves that some colleagues in Eu- because it is not in the tradi- Knowledge@Wharton: organization, right down to against disruption. rope conducted a study that tional mold. Also, it may not Is that the reason why tur- the reception rooms. expanded on our survey be in the space where people bulence is so hard to pre- These insights and more Below is an edited tran- work on peripheral vision. are looking. dict? appear in a new book by script of the conversa- They asked the question – These digital technolo- Schoemaker: Yes, there’s George Day, Wharton emer- tion. “What is the payoff?” They gies don’t respect industry a truly unpredictable el- itus professor of market- Knowledge@Wharton: contrasted ‘vigilant’ and boundaries the way that’s ement to it, and so your ing, and Paul Schoemaker, George, what do you mean ‘vulnerable’ organizations, normally the case. They are vigilance building strategies founder and chairman of by ‘vigilance,’ and why is it as we had done as well, and often disruptive, although must respect the fact that so important? also included those that not always. They allow for not all future changes can George Day: Let’s start were continually surprised very fast scaling, [with] light be analytically predicted. When the with individual vigilance, and wrong-footed. They asset [bases]. They empower signals are which is a heightened sense tracked 85 large European new entrants who don’t want Knowledge@Whar- of alertness. We take that multinationals over eight to compete within the old ton: George, in your earlier weak, it’s theme and apply it to the years. The payoff was that the business model. Entrepre- comment, you referred to hard to build full organization. A leader- vigilant organizations had neurs may bring in a new ‘vulnerable organizations.’ ship team that is vigilant is an increase in market capi- technology to destroy an Which factors matter most in a strong case characterized by candor, talization, about double the old one or create a hybrid of explaining the difference be- that you high curiosity, and explora- increase in the market cap [the old and the new] that is tween vigilant organizations tion because they receive a of vulnerable organizations, superior. and vulnerable ones? should make a lot of weak signals, and they due to their investments in Each of these digital in- Day: We’ve already talked bold move are open to them. foresight capabilities and novations may draw on five, about vigilant organizations. more than banking BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 18 EXECUTIVE KNOWLEDGE SERIES In Association with INNOVATION In the Digital Age, How... registered them noticed that surveys at times, where em- tions and corporations), some of these were very drug could possibly displace ployees rate the organiza- and American credit unions. continued from page 17 cheerful – more so than oth- and obsolete our product?” tion anonymously, to see if Our initial corporate study They created a task force to the requisite conditions for level, the functional level, – you bought your software, ers. This person mentioned covered many global com- focus on the question. All high vigilant are in place. and the SBU (strategic busi- and you got full rights to this curious funding to peo- panies, but then we wanted the weak signals on that par- Our full vigilance survey has ness unit) level, in order to it. ple running the trial and they to conduct a comparison ticular topic flowed into one 30 questions about seeing be vigilant?” They become Adobe could see, over were also sufficiently curious between for-profit organiza- central node. Interestingly, sooner and acting faster, and vulnerable the moment they the horizon, ahead of al- to check further. Vigilance tions and nonprofits as well. just as a sidebar, they learned we have collected data from get sucked into either pro- most all their rivals, that requires a culture of curios- We found that the regression an enormous amount about 345 organizations by now tecting turf, or the broader cloud storage was going to ity, a genuine desire to look weight that some of the fac- the drug industry, and they that provide benchmarks politics of organizations. dramatically change the into anomalies. And as you tors we mentioned earlier found some amazingly ef- to compare against. These With a shorter-term focus, way images are stored and can imagine, it turned out received in terms of explain- fective drugs to enhance are all diagnostics that can they don’t fully anticipate made available. So, they that many of these cheerful ing variance in vigilance dif- the capabilities of not only help. how scenarios for the future made the decision to shift to folks happened to be in the fer as a function of size, and their stents – which they Day: We offer at the end may be vastly different from a subscriber-based model, treatment group, not in the as a function of the degrees also sold – but also of their of the book an action agenda the status quo. where all the content was control group. Even though of freedom. If you’re highly pacemakers. that is consistent with all There’s a discomfort level lodged in the cloud. And of this particular drug failed regulated, as credit unions of the examples we have with contemplating a disrup- course, their customers ob- as a dermatological drug, it are, there is, of course, less Knowledge@Wharton: talked about. There’s a lot tive future rooted in an aver- jected strenuously, because became a successful antide- scope for far-sighted leader- How can companies become of supporting research, but sion to ambiguity. People they liked having ownership. pressant. ship. more vigilant? Or as you put we found there are two big don’t want to go there. What But Adobe persisted because Too often, weak signals It has become clear to us it in your book, “How can a factors: leadership com- they must do there is often it was confident with the from customers or partners, that you need to understand company increase its vigi- mitment to vigilance that’s counterintuitive. You have evidence found in testing or even from inside your the contingent factors. When lance quotient?” highly visible and signaled to almost say, as a leadership the cloud scenarios. We use organization, die at the point does a new foresight capabil- Schoemaker: It is [im- widely to the organization; team, “What are the anoma- the term, ‘See sooner, and where they are seen. It stays ity, or say an attitudinal shift, portant] to identify cases and significant investments lies? What is happening in act faster’ advisedly. Acting in the reception area, rather become critical in a particu- where people were prescient in foresight activities. our environment that people faster is about doing probe- than make it all the way up lar sector or organization? in some sense – they saw the Leadership commitment are curious about?” And then and-learn studies, a lot of the organization. So, you It’s hard to find a recipe that future. But just as important- is signaled by the amount they must ponder, “Why is experimentation, and buy- need champions who can always works. Many fac- ly, we must also look at the of time spent, for example, this happening?” ing real options. It doesn’t amplify weak signals. Oth- tors matter, but to different past. We typically start with thinking about the future. You need leaders who mean acting in the full sense erwise, they will just die and degrees depending on the an audit and say, “Let’s look A vulnerable organization can unearth the paranoia of jumping into the market. not be explored further. The circumstance. It remains at what you missed in the may spend less than 20%. simmering under the surface It’s getting yourself ready, so future foreshadows itself, an important research topic past, in the last three years, Vigilant organizations spend and who look for the reasons that when the time is right, and there are many soft why vigilance varies and and what you saw early. up to 50% of the leadership why things may fall apart. you have all the pieces in warnings, but they are not what the main determinants Was it more of a threat or time thinking about the fu- Such leaders must also be place. And Adobe did that presented on a gold platter. are, because it seems to de- an opportunity?” When we ture. They also network very willing to deeply challenge superbly. The signals are distributed pend much on time, place did that with Olympus, for widely. They communicate the current mindsets. When In another domain, the throughout your organiza- and culture. example, there were things widely that they’re ready and Andy Grove became CEO Canadian government was tion and even beyond your that they were excellent at. open to weak signals. of Intel (in 1987), he chal- far-sighted in realizing that organization. Some of the Knowledge@Wharton: They saw underwater cam- Andy Grove was a magi- lenged the business model. the future of digital technolo- signals may be in other in- Let’s imagine there’s a CEO eras as an opportunity before cian at that. He gave per- He asked, “If we had taken gies was going to be inextri- dustries. If you go too far, who comes to you and says, others did. But there were mission to people way out over this company through cably linked to advances in however, it may become “What’s your one piece of ad- other things they saw rather on the periphery to come to an acquisition, would we artificial intelligence. Ten overwhelming. vice to make my company’s late – such as that their high- him directly with a concern. stay on the current course?” years ago, they made a major Day: Let’s go back to the leadership team more vigi- end endoscopes were being That kind of openness, curi- He legitimized questions commitment to investing digital turbulence problem, lant?” What would be your displaced by cheaper dispos- osity, and candor is critical about whether [a company in keeping the science in which is dramatically in- top recommendations? able endoscopes. because vigilance is a team has] the right business model Canada – and making it very creasing the amount of data Schoemaker: Reward it When I worked at the sport, and then leaders must in light of warnings that are attractive for talent to come and confounding noise. Cur- if you see it, and share the corporate planning group follow that with highly vis- still ambiguous. When the from the U.S. to Canada. rently the amount of data is best practices. Also, instill at Shell in London, we ible investments in foresight signals are weak, it’s hard to They greatly reduced the doubling every 18 months. a culture of curiosity and asked, “Well, what has Shell activities (walk the talk). build a strong case that you career risk for them, but That also means the ratio of hypothesis testing. missed?” It turned out they Companies like 3M in- should make a bold move. this required far-sighted useful signal-to-distracting Day: The litmus test is missed a geopolitical event, vest a significant amount in But that is what Grove did vigilance and a lot of initial noise is deteriorating rap- openness. A vigilant leader but they don’t miss a lot looking for opportunities. and this propelled Intel to investments to get proof- idly. must be open and make it Important weak signals systemically in the other They don’t wait for ideas clear to the organization new heights. of-concept, to make people domains, except for one. In comfortable with it. Now, we of threats and opportunities and concepts to come to they are open to hearing public relations and me- them, but they use lead-user Knowledge@Wharton: are seeing the payoff to their are often shrouded in all the about weak signals, nagging dia, they didn’t have a good analysis to pursue emerging What are some of the fea- long-term commitment. noise. We spend a lot of time concerns, and anomalies sense. They had the Brent or latent needs of their lead tures that define a vigilant in the book helping lead- that people can’t explain. Spar fiasco at one point in the customers. They run a lot organization? Could you Knowledge@Wharton: ership teams think about Such openness is a critical North Sea. (In the mid-1990s, of experiments and make a offer any examples? Why is it so important for how to allocate that scarce signal of organizational cu- Shell had planned to sink a lot of investments in small Day: Yes, there are many companies and leadership resource of attention, and riosity. disused oil storage facility startups. The medical device nonprofits, as well as for- teams to pick up on weak sig- then focus on a few areas that called Brent Spar in the At- company [referenced earlier] profits [that are good ex- nals? What exactly does that will be ultimately extremely lantic Ocean but was forced invested small stakes across amples of vigilant organiza- mean? Could you also give critical. to abandon that plan in the many startups to get visibility tions]. Let’s start with Adobe, any examples of companies We have come up with wake of strong opposition into what was the next gen- which is a masterful example that have done it well? the strategy of ‘guiding ques- triggered by Greenpeace.) eration. of a vigilant organization. Schoemaker: A weak tions’ that help keep your In Nigeria, they had made Finally, one [aspect] that Most will remember their signal is something that on eyes trained on what matters payments to schools that is consistent through all of shrink-wrapped image-ed- its own doesn’t have a lot and make sure the whole or- ended up in the pockets of our studies and examples is iting Photoshop program. of meaning. But if it is com- ganization is aware of them. corrupt officials. And later, that when information is not It was only 15 years ago the bined, either by understand- These questions come out of looking at where you’ve they badly overstated their shared but heavily filtered, software was sold that way ing the context of the signal oil reserves, with its head of or by combining it with other missed things in the past, you become vulnerable. diagnosing the present, and E&P (exploration and pro- signals, through triangula- anticipating the future. We duction) losing his job over Knowledge@Wharton: tion, it holds informational advocate finding two or three that mistake. We’ve talked a lot about value. To unlock it requires a The future guiding questions the whole Once you start to develop for-profit companies. I won- culture that is curious about organization is aware of, a profile of hits and misses, der if vigilance and vulner- foreshadows anomalies or other things [which are] widely commu- you identify where the or- ability are also applicable to itself, and that are contrary to expecta- nicated, and you have task ganization is systemically other kinds of organizations, tion. there are many forces working on them. weak. Once you understand like nonprofits and founda- One pharmaceutical For example, a medical that, you can then say, “How tions. warnings, but company, to give an ex- device company some years can we fix that?” Schoemaker: Yes, we ample, was working on a they are not ago was very concerned that Of course, past weak- also sampled, for example, dermatological drug. It ran a drug would displace the nesses don’t predict future American foundations with presented on a standard controlled experi- function of a pacemaker. misses necessarily, but at the help of the Council on ments, and the volunteers gold platter Their guiding question was least you have a starting Foundations (an association had to come in for medical this: “What pharmaceutical point to improve your hit of grant-making founda- checkups. The person who rate. We also use company more than banking BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 FINANCE & INVESTMENT 19 MARITIME AND SHIPPING FINANCE Engage PwC, KPMG or Philips to carry out forensic audit of Nigeria’s Cabotage, Ogbeifun tell Amaechi

Stories by Samson Echenim in the country’s cabotage businesses and how they can trade. The fund was also to get the aid. The president form a source of aid to enable has given the approval and NIGERIA’S local ship owners compete we will begin the process to LEADING IN- NEWS favourably against foreign disburse it by next year.” DIGENOUS ship owners in crude oil Amaechi also told mari- ship owner, freighting on the Nigerian time and port stakeholders Greg Ogbeifun, waters. at the NSC SAN 2019 that has called for forensic audit While the minister did he was determined to fight of the Cabotage Vessels Fi- not disclose the current maritime insincerity to a nancing Fund (CVFF) to de- value of the CVFF, business standstill. The minister la- termine its true value before a.m. gathered that the fund mented Nigeria’s current setting rules and guidelines has reached $124 million dangerous position in mari- for its disbursement. (about N44.6 billion) as at time security and accused The Starz Marine CEO June, 2018. The CVFF has Nigerian elites of cheating said this while reacting to remained undisbursed since the system and not allowing the news of the approval for its creation in 2003, despite genuine fight against sea disbursement of the fund by cries and efforts by industry crimes and piracy. President Muhammadu Bu- operators to access the fund “Nigeria is currently rank- hari, which was announced for securing approval from account. They will need to pay back.” which is under the custody ing No. 1 in maritime in- in Lagos on Thursday by the the president to disburse the work with all contributors to Amaechi, minister of of the Nigerian Maritime security. A few years ago, minister of transportation, cabotage fund. The fund has the fund to determine how transportation had an- Administration and Safety the Gulf of Aden was No. 1, Rotimi Amaechi. been in existence for 15 years much is there. nounced to maritime stake- Agency (NIMASA). The Fed- but now Nigeria is No. 1. I Ogbeifun told business without an approval given “We have our records holders at a shippers forum eral Ministry of Transport went to see the Indian high a.m. on Friday, before com- before now to access it. How- clean, because our contribu- in Lagos on Thursday Presi- which supervises the agency commissioner yesterday, ing up with ways to dis- ever, a forensic audit must be tion is taken from source, so dent Muhammadu Buhari had cited fears of insincerity because 18 Indian nationals burse the CVFF, the minister carried out to ascertain the I can tell you how much my had approved disbursement on the side of ship owners for were kidnapped on Nigerian should engage a tax and exact amount in the CVFF company has contributed. of the CVFF, to indigenous not disbursing the fund. waters and as I talk to you, audit management consul- account. There has been no Every company must have ship owners. Amaechi said, “I have India has issued notice to tancy firm to thoroughly basis for knowing the exact their records too. Again, the He said the ministry got approval to disburse her seafarers and citizens audit the account and de- amount. Many sources simply consultants must engage would begin meetings with the CVFF. I just want want that they should stop going termine what each shipping cite different amounts and I the IOCs who have deduct- indigenous ship owners in to use this opportunity to to Nigerian waters. company and international don’t know which is correct. ing two percent of our con- January to commence the inform stakeholders that “I have said to myself oil companies (IOCs) have My company has been con- tract value and remitting to disbursement process. the president has approved that I will go public with this paid into the Cabotage ac- tributing into that account NIMASA. NIMASA should The CVFF is a special the caboatge fund and by battle to secure Nigerian count. since 2010. have a clean account of this intervention fund creat- Tuesday I will meet with the waters. Every opportunity I He also warned ship own- “The minister must adopt money. ed alongside the country’s Nigerian Shippers’ Council have to make a speech, I will ers to first determine their a process that must be flaw- “I will not be in a hurry Coastal and Inland Shipping and NIMASA to look at the talk about it. Nigerian elites abilities to be able to pay less. He will need to engage to start saying I want to get Act, 2003, otherwise known dynamics of the fund. In must allow Nigeria to grow back, before applying to get a renowned consultant, such the loan. Before any ship as the Cabotage Act, to assist January, we will invite the as a nation,” the minister the long-awaited fund. as PwC, KPMG, or Philips owner applies for the loan, indigenous ship owners with operators for their proposals said. He said, “Let me commend Consulting to carry out a he must have his expansion acquisition of vessels to en- and to see the nature of their the minister of transportation forensic audit of the CVFF plans and must be able to able them operate maximally

aged by both the ministry as Import duty exception well as the Nigeria Customs Maritime stakeholders seek more Service (NCS). The vehicle identification number will to attract N60,000 be available to any user to ac- incentives for users of eastern ports THE FED- to handle applications for cess to find out information MARITIME there is a need to ensure He noted that other ERAL GOV- exemptions that come to the on vehicles”. NEWS NEWS STAKEHOLD- effective and efficient ser- challenges relate to the in- ERNMENT of ministry”. She stressed further that ERS h a v e vice delivery in Nigeria’s efficiency of the Nigeria Nigeria says “Some of the exemptions through the IDE component, called on the seaports. Customs Service (NCS), import duty cover a number of sectors the government will be able Nigerian Ports Speaking on the theme, and Nigeria Immigration tax will attract the sum of including the downstream to see how much waivers Authority (NPA) to raise ex- “Towards Standard Op- Service (NIS) personnel N60,000 henceforth. gas utilization projects, the have been granted to which isting incentives for import- erating Procedures That that operate at the nation’s The Minister of Finance, Agro-Allied processing proj- sectors and also track the ers and exporters who opt Works in Nigeria’s Sea Ports seaports. Budget and National Plan- ects and aviation (commer- performers of those waivers to ship through the eastern and Terminals,” the Chief An anti-corruption cru- ning, Zainab Ahmed, made cial aircraft engines), “she and reduce the cost subse- ports. Executive Officer of CBI, sader, Vebek Menon, noted this known after announcing said. quently. The NPA currently gives Soji Apampa, said the chal- that so far only five cases the development of the Por- Ahmed also pointed out She, however, added the 10 percent discount on lenge of gratification and had been reported through tal for Import Duty Exemp- that other exemptions are portal will be developed un- harbour dues, which it ap- maritime corruption remain the portal and that the issues tions and added applicants spare parts, automobile as- der a Public Private Partner- proved for shippers who the bane of effective and raised would be addressed for the tax exemptions would sembly, iron and steel pro- ship (PPP) arrangement. import through the eastern efficient service delivery without prejudice. pay a fee of N60,000″. duction, power including; ” The portal is undertak- ports in June this year in at the ports over the years, Ernest Elochukwu, a for- “Today, the Ministry of Fi- thermal hydro, solar and ing in the form of a PPP be- all concession terminals emphasizing the use of port mer president of Association nance sought the approval on wind, textile plants, machin- tween the ministry of finance as part of incentives to service support portal. of Nigerian Licensed Cus- a project which is designed to ery and equipment that are and Messrs Fore-core Tech- increase patronage at the Moses Fadipe, deputy toms Agents (ANLCA), in manage an automated gate imported for use for mining nology Solutions limited. harbours. director, Complaints Unit of his contribution, wondered way platform for the issuance operations. They are to develop, deploy, The stakeholders also Nigerian Shippers Council why government could not of import duty exemption According to her; “in the manage and transfer back to called for sanctions against (NSC), pointed out that the fashion out ways to stop certificates as well as vehicle process of these exemptions, the ministry”. those who violate the rules support portal would help corruption in the maritime identification and registra- a couple of years, we realized ”They are to be earning of the game in the cargo to submit and track com- sector, and why there are tion number”. that government was actu- revenue which is coming chain clearance, saying that plaints, and recalled that the no harsh consequences for “The federal Ministry of ally ceding quite a significant from the IDE application impunity has become the portal was launched in June failure to deliver. Finance, Budget and Nation- amount of revenue through fee. We are going to share the bane of the maritime in- 2017 by Vice President Yemi Elochukwu, who repre- al Planning is responsible for this process”. revenue in the promotion of dustry because no one is Osinbajo. sented the Port Harcourt the management of the coun- “Because the process was 90 percent to the government ever punished for violating He said apart from poor Chamber of Commerce, try’s national finance and largely paper-based, we got and 10 percent to Messrs the rules. infrastructure at the ports, Industry, Mines and Agri- one of our responsibilities is approval today to automate Fore-core Technology Solu- Stakeholders at a one- other challenges identi- culture (PHCCIMA) at the implementing fiscal incen- this process, to enhance ef- tions Limited”. day roundtable organised by fied include time and cost round table, argued that as tives that are used to attract ficiency, to block possible “They are earning this 10 the Maritime Anti-corrup- of doing business at the long as there are no con- investors to promote non-oil leakage and also to reduce percent to enable recover the tion Network (MACN), in docks, agencies and termi- sequences for violations of exports as well as encourage the amount of time that the cost of deployment as well conjunction with the Con- nal operators inefficiency, the rules of engagements in industrialization programme ministry takes to review this as the management because vention on Business Integ- government official docu- the cargo clearance chain, and stimulate growth in the exemption request and pro- they will also be the ones rity (CBI), and the Danish mentation, berthing of ships impunity would continue economy, “she said. vide the necessary approv- managing the project over International Development and discharge of cargo pro- to rein in the maritime in- She explained further that als”. this 10-year period.” Agency (DANIDA), said cesses. dustry. what the Ministry does is “This portal will be man- BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 20 COMMODITIES & AGRICULTURE AFEX secures funding to boost agro commodities market Stories by Kenneth Afor securitization of agricultural products. FEX COM- AFEX operates 45 ware- MODITIES EX- houses in Nigeria’s key grain- CHANGE LIM- producing areas and ac- ITED (AFEX), a counts for 100,000 MT of total market leading national storage capacity. commodityA exchange in Ni- Since 2014, the exchange has geria, said it has secured an reached 106,000 farmers and investment for an undis- traded 126,400 MT of com- closed amount from Conso- modities with a total turnover nance Investment Managers, of NGN14.1bn. a Sub-Saharan Africa focused AFEX’s mission is to early-stage and growth in- support Africa’s food secu- vestment firm. rity while promoting fair The funds will be used exchange of value among to increase liquidity of the players in agricultural value commodity markets, and chains. To achieve this goal, strengthen operations and AFEX looks to drive financial technology systems. AFEX inclusion for rural communi- will ease the access of retail ties, develop technology for and institutional investors data collection and market to the commodity markets access and introduce prod- in Nigeria by deploying its ucts that derisk the sector established infrastructure and enable the deployment to securitize agricultural of capital. products, ensuring efficient Consonance Investment and transparent clearing and Managers invests in early- L-R: Akinyinka Akintunde, Business Development Manager, AFEX; Ayodeji Balogun, CEO, AFEX; and Iruansi Itoandon, settlement. stage and growing business- Commercial Manager, AFEX, at a strategy session With more participation es across sub-Saharan Africa. in the sector, more innovative Consonance backs entrepre- products will be listed over out technology solutions requires AFEX to provide our in their mission to trans- and Exchange Commission neurs who are building large time, translating to growth that support traceability: infrastructure as a service to form Nigeria’s agricultural of Nigeria,” said Mobolaji and profitable enterprises for Nigeria’s capital market covering activities all the way the market and unlock capi- sector. AFEX increases trust Adeoye, Managing Partner that create systems to enable and increased funds being from the financial inclusion tal for the agriculture sector and transparency in local at Consonance Investment national wealth creation. directed towards the agri- of producers, through the in Nigeria. We will grow our agricultural supply chains by Managers. It focuses on the following cultural sector in the coun- outreach operations, and operations ten-fold over the connecting farmers to mar- sectors and themes: Access try. This key part of AFEX’s AFEX’s warehouse receipt next five years; we also aspire ket. AFEX has established the Since its founding in to wealth creation, financial operations requires the de- system, to a trading platform to increase funding to agri- infrastructure which will un- 2014, AFEX Commodities and capital markets infra- ployment of funds towards that fosters shared prosperity culture in Nigeria from about dergird Nigeria’s food secu- Exchange Limited (AFEX) structure, access to essential market sensitization, training between producers, proces- NGN 500bn (USD 1.5bn) to rity agenda and the Central has developed and deployed services (education, health & and product development. sors and investors. more than NGN 2tn (USD Bank of Nigeria’s economic a viable commodities ex- power), culture and media, To support the growth and “We are delighted to wel- 7.5bn) by 2025,” said Ayodeji diversification program. It change model for the West logistics and mobility, retail stability of its systems, AFEX come Consonance Invest- Balogun, AFEX CEO. will also be vital in deepening African market. AFEX has at scale, food and its distribu- will also continue to build ment Managers as partners “We are proud to support capital markets in line with built a strong supply chain tion systems and technology on this journey. The future Ayodeji and the AFEX team the mission of the Securities infrastructure to support the infrastructure services.

ered the imports of soybean Supply shortage pushes lately as its end product is Renewed hope from U.S.-China trade deal used for animal feed. resurrects copper prices after 7 months dormancy “Palm oil prices are ex- palm oil futures in Asia pected to remain high as demand is likely to grow Kenneth Afor Futures Exchange, cop- such as copper, iron ore, to a 2-year high further later this month in per, topped 49,380 yuan cooking coal and bauxite as the run-up to Lunar New ITH SIGNS ($7,015.30) by 0.5 percent they look out for both the US increase, the highest since and China ending their trade Kenneth Afor tonnes due to the reduction Year holidays in China,” said FROM THE of fertilizer application by Hideki Hattori, a depart- TWO larg- April 30 before it went down dispute soon. at 49, 160 ($7,050.15) late “Overall, we are of the RICES OF THE farmers on palm trees and mental store owner. est econo- the consumers’ preference Japan is also having its mies, the Friday. view that this work plan for WORLD’S MOST The high demand for the 2020 is quite favourable to used edible oil, to rival oil, soybean oil as a fair share of the oil price UnitedW States and China substitute for palm oil. surge which depends main- moving closer towards a industrial metal in power commodity demand,” an palm oil in the and construction works has industry firm said. Asian region has A palm oil merchandizer ly on imports. The oil is trade deal, investors saw said that “Farmers are cut- traded at around 162 ($1.50) London copper prices pushed prices for an addi- Elsewhere, at the LME, surgedP nearly to a two-year tional 3.5 percent increase at investors saw aluminium high in early December as ting the use of fertilizers to per kilogramme. surged to $6,200 per tonne curb production deliber- But producers in the on Friday after seven months the start of trading this week and zinc increased by 0.3 supply from Malaysia, the since last February when the percent, while tin was low- second-largest producer ately in an effort to mitigate country still want to in- of a downward trend. the impact of lower palm oil crease the price above the The industrial metal on record was high. ered by 0.1 percent likewise with rising demand in China Also, investors were nickel at 0.3 percent. and Indonesia is expected prices,” a palm oil merchan- current price as claimed the London Metal Exchange diser said.” by a representative from (LME) rose to $6,216 per buoyed by optimism from The LME data shows to fall. China with promised more nickel inventories material Also, the rise in prices According to industry the country’s oil produc- tonne by 1 percent, the high- figure, global output is ex- er. est since May before setting effective economic policies waiting for delivery rallied of the edible oil is that the in the coming year which around 52 percent, the high- world’s largest producer, pected to grow slightly by “We want to hike the at $6,203 per tonne. 2 percent at 78.62 million price by about 10 yen per Also, on the Shanghai would lay the basis for an est on August 29 for a day to Indonesia is pushing to active commodity trading 102, 036 tonnes. raise its production level of tonnes in the coming year kilogram for the October- the oil for the production of although slower compared December quarter,” Hattori phone. “But at the same time, biodiesel from 2020 as an to last year’s 7 percent in- added. Gold fails to crumble as trade we’ve seen a weakening of the alternative source of energy crease. If Asian prices remain deal news meets dollar’s decline U.S. dollar. And so, they’re the for automobiles. Due to the multi-purpose high, another Japanese oil OLD HELD ITS deal with China, averting the two currents that are pushing Benchmark of palm oil use of palm oil especially trader said his company OWN ON FRI- introduction of more U.S. and pulling gold at the mo- futures were traded around in China, imports to China would have to hike prices DAY as inves- tariffs, according to people ment.” 2, 630 ringgit ($632) per is consistently on the rise to a reasonable figure in the tors weighed familiar with the matter. Trad- Gold’s heading for an an- tonne on the Malaysian as imports would jump by first quarter of next year. bullion’s merits ers were also watching the nual advance, with its for- Commodity Exchange 5 percent in the coming However, if the hike per- headingG into 2020 after the U.K. general election, the tunes in 2019 shaped both by in early December, a 10 year at 6.9 million tonnes sists at the early period in U.S. and China managed a governing Conservative Party more accommodative mone- percent high last month as claimed by an industry 2020 oil consumers in the breakthrough in their bitter was on course for a big major- tary policy from central banks which helped it achieved research firm, Oil World. region already have an alter- and drawn out trade dispute, ity. Sterling rose. globally as well as the ebb the highest level in two Meanwhile, palm oil native with rival oils such as with the commodity’s initial “The news out of the U.S. and flow of the trade war. The years. imports is taking the lead sunflower oil and soybean losses driven by weaker haven that an agreement has been removal of tariff uncertainty Production from year- among other rival oils in oil for domestic use and demand offset by a slump in reached with China is posi- will return investors’ focus end to September 2020 in China due to the current ultimately traders would the dollar. tive for growth, and therefore to signs the global economy Malaysia is expected to drop outbreak of African Swine have no choice but to bring Bullion fluctuated after negative for gold,” Michael is improving as a strong year by 2 percent at 20.33 million Flu (ASF) declining the down in other to curb the President Donald Trump McCarthy, chief market strat- for risk assets heads toward number of pigs it has low- impending hike. signed off on a phase-one egist at CMC Markets, said by a close. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 COMMODITIES & AGRICULTURE 21

and other contaminants on IITA, NAFDAC begin new our crops and broaden the scope of our exportable com- Analysts chart reforms tests on Aflasafe’s efficacy modities. on more crop fields “As you are aware, Nige- roadmap to raise agric rian groundnut and maize Tola Akinmutimi, in Abuja The IITA developed Afla- are not doing well as export safe as a cost effective bio- commodities because of the sector contributions to GDP HE INTERNA- control product to address high level of chemicals in the problem of aflatoxin in- TIONAL IN- them because farmers use Tola Akinmutimi, in Abuja overall EBA score. STITUTE FOR fection on soil. The prod- pesticides and fungicides The EBA measures how uct contains four atoxigenic TROPICAL AGRI- to protect them from being LEADING RE- regulations affect the liveli- CULTURE (IITA) Aspergillus flavus strains destroyed at planting and hood of domestic farmers. that are peculiar to Nigeria SEARCH FIRM, andT the National Agency For post-harvest seasons. Centre for the A further analysis of the Food, Drugs Administra- with roasted, sterile sorghum “With Aflasafe coming to country’s scores showed that grains serving as their carrier Study of the tion and Control (NAFDAC), protect the soil from major Economies of Af- Nigeria’s regulatory practice have begun researches to and nutritive source. toxins, we are hopeful that and laws ranked above-aver- Investigations by our cor- ricaA (CSEA), has canvassed determine the safety of ap- yields from beans, tomato, the need for the Nigerian age in the areas of registering licly-available information plying Aflasafe on tomato, respondent indicated that the rice and other grain crops fertilizer (69.30), seed supply on plant pest and diseases IITA, the developer of Afla- government to initiate im- rice, beans and other crops, will increase for local con- proved proactive requlatory (63.42), sustaining livestock on a designated government business a.m reports exclu- safe, had joined hands with sumption and export to in- (63.33) and securing water website and also mandating the national food products measures, particularly on sively. ternational markets. So, as protection of plant health, in (50). landowners/users to report The latest initiative was regulatory agency with a view farmer groups, we are waiting However, the World Bank’s pest outbreaks to designated to scientifically determining order to take the increasingly sequel to the successes re- for the result of the research encouraging contributions of EBA indicated that the coun- agency(ies) with penalties corded over the past two the efficacy or otherwise of being conducted by IITA try had weaker regulations in for non-compliance to be the biotechnological product the agricultural sector to na- years of application of the and NAFDAC on Aflasafe”, tion’s GDP to a higher ratio. registering machinery (48.8), enforced. biotechnology solution on (Aflasafe) as atoxigenic solu- he added. accessing finance (40), trading On dwindling revenue and tion, based on enquiries by Researchers in the firm groundnut and maize fields Researchers have con- gave this advice in the latest food (38.51) and protecting options for government, the to mitigate the risks of aflatox- smallholder farmers across firmed that the application plant health (20). experts noted that the decline the geographical zones na- ‘Nigeria Economic Update in infection on crops and the of Aflasafe on maize and Issue 45’ sourced by business The CSEA analysts recom- in FAAC allocations in recent associated health hazards. tionwide. groundnut fields over the mended that there was the months reflected the unpre- A leader of one of the a.m, among other recommen- Aflatoxin are poison- past months have ensured dations to esnure sustainable need for the Nigerian gov- dictability and volatility of oil ous chemicals produced by farmer groups who is famil- improved farmers’ yields, ernment to initiate strategic revenue. iar with the IITA/NAFDAC and balanced growth of the certain mold/fungi, mainly increased food processors nation’s economy in the years reform measures that would The CSEA team clarified Aspergillus flavus and As- research efforts, confirmed to and feed manufacturers’ ac- ensure regulatory protection further: “While oil will remain our correspondent that “the ahead. pergillus parasiticus which cess to quality maize and The analysts recalled that for plant health in which the a key source of government are prevalent in Nigeria, that two organizations have made groundnut for safe and nu- country recorded the lowest revenue, the government progress in the scientific re- Nigeria was ranked higher reside in the soil and dead tritious products, livestock at 67 out of 101 countries on performance for improve- should identify more innova- decaying organic matter. It search and it is expected that productivity and profitability, ment. tive means of sourcing finance their findings would be made the World Bank Enabling the is estimated that over 20 per- more foreign exchange earn- Business (EBA) of Agriculture They also canvassed the including partnering with the cent of maize and groundnut known soon. ings from agriculture and need for reforms in other private sector, in the short to “If the findings come out 2019 Report, with the country produced in Sub-Saharan created job opportunities in scoring 49.17 out of 100 in the areas such as providing pub- medium-term.” Africa (SSA) are affected by positive, it will be a major the groundnut and maize the fungi. milestone in Nigeria’s efforts value chains. to control level of chemical MARKET DATA Commodity Price List as @ Friday 13 December, 2019 Farmers, processors lament challenges AGRICULTURE COMMODITIES FUTURES Symbol Price $ Change %Change Volume Date of rice production, ask for help WHEAT 533 2.75 0.52% 63178 13/12/2019 CORN 381 3.25 0.86% 219020 13/12/2019 business a.m. send to the public. If we can tation, and parasitic activities SUGAR 13.48 -0.04 -0.30% 82613 13/12/2019 achieve a volume over 90 per of middlemen. SOYBEAN 906.75 8.5 0.95% 161765 13/12/2019 ICE FARMERS cent from the paddies, the He explained that roads to SOY OIL 32.61 0.38 1.18% 90901 13/12/2019 AND PROCES- prices will be beaten down most farms in the state have SOY MEAL 301 2.3 0.77% 63096 13/12/2019 SORS HAVE la- and this is quite the contrary,” been washed off, making it OJ FUT 97.15 -0.3 -0.31% 1281 13/12/2019 mented high cost he lamented. very difficult to move input COFFEE 129.75 -7.5 -5.46% 44801 13/12/2019 of transportation, Giving details of the hur- to farms and harvests to the COCOA 2570 49 1.94% 15897 13/12/2019 shortageR of electricity sup- dles of processors, he ex- marketplaces.Augie added ROUGH RICE 12.5 0.07 0.56% 931 13/12/2019 ply and expensive planting plained that “We face so many that inputs such as fertiliser, OATS 297.5 -5.25 -1.73% 411 13/12/2019 inputs as challenges confront- challenges. One of them is insecticides and herbicides MILK 19.4 -0.03 -0.15% 308 13/12/2019 ing the industry despite the the short supply of electricity, have become more expen- COTTON 66.71 -0.46 -0.68% 30988 13/12/2019 market created through the which has encouraged the use sive, eroding the profitability LUMBER 403.4 5.6 1.41% 300 13/12/2019 government policies on food of generators. The production of farmers. Good rice seeds importation. of rice takes a lot of processes, are expensive too, he ex- LIVESTOCK FUTURES Amos Fakunle, market- after the cleaning comes the plained to The Guardian. Symbol Price $ Change %Change Volume Date ing manager of a rice-pro- soaking for 24 hours. Then it Activities of processors LIVER CATTLE 127.825 2.725 2.18% 41441 13/12/2019 cessing company in Ibadan, will be ready for parboiling. too constitute a challenge to FEEDER CATTLE 146.5 3.95 2.77% 11862 13/12/2019 Oyo State, said transporting Then the next day, we wash farmers, he argued. Proces- LEAN HOGS 69.25 0.6 0.87% 32684 13/12/2019 tonnes of rice from the farm to the soaked rice to get rid of sors always want to exploit the production factory poses dirt. farmers most of the times. An- ENERGY FUTURES a great challenge as a result “We use hot water to soak other challenge he identified Symbol Price $ Change %Change Volume Date of the bad and muddy roads, the rice to eliminate bacteria is poor access to agricultural OIL 60.02 0.84 1.42% 469357 13/12/2019 saying, “This is because rice is and other germs. For the mechanisation equipment BRENT CRUDE 65.13 0.93 1.45% 223847 13/12/2019 planted in swampy areas.” parboiling stage, rice is filled which prevents intensive NATURAL GAS 2.3 -0.028 -1.20% 150994 13/12/2019 Fakunle explained to that and it is covered for steaming production, retarding pro- RBOB GAS 1.6598 0.0315 1.93% 50224 13/12/2019 “transporters charge really in the boilers. ductivity of small-scale farm- high fares. For example, if It is parboiled, after which ers.He advocated subsidies METALS FUTURES the bags of rice are to be tak- we release it into the dry- for farmers, especially those Symbol Last $ Low $ Change Chg. % Date en from Bachita to Ibadan, it ing beds. Regardless of the producing rice, while he sug- Aluminum 1,765.25 1,772.00 -6.75 -0.38% 13/12/2019 will cost a total of N250,000, weather, production goes on gested that a nine-per cent Copper 2.782 2.797 -0.015 -0.52% 13/12/2019 while from Ibadan to Osun, and the parboiled rice is dried interest rate is un-sustainable Copper 6,141.25 6,161.50 -20.25 -0.33% 13/12/2019 it is about N200,000.” under our roof using locally for farmers. He advised that Gold 1,482.10 1,472.30 9.8 0.67% 13/12/2019 Another challenge of pro- fabricated charcoal-powered five per cent interest rate Lead 1,907.50 1,928.00 -20.5 -1.06% 13/12/2019 cessors, he added, is that most dryers.” could help farmers. Nickel 14,212.50 14,012.50 200 1.43% 13/12/2019 paddies are loaded with dirt, To satisfy Nigerian buyers, Pa Akinade Samuel, chair- Palladium 1,898.85 1,914.20 -15.35 -0.80% 13/12/2019 stones and sand, with wastes Fakunle added that “we must man of Oyo State chapter of Platinum 929.9 944.8 -14.9 -1.58% 13/12/2019 the Rice Farmers’ Association accounting for about 30 per ensure that only quality rice Silver 17.027 16.949 0.078 0.46% 13/12/2019 (RIFAN) said one of the chal- cent of the raw materials. is produced, make it available Tin 17,195.00 17,177.50 17.5 0.10% 13/12/2019 and affordable and without lenges is inability to increase “When the rice finally gets Zinc 2,258.00 2,260.75 -2.75 -0.12% 13/12/2019 to the factory, it takes a lot stones and dirt so as to satisfy yield per hectare as a result them.” of poor or low inputs. Farm- of efforts to wash and sieve, INDEX FUTURES Muhammad Sahabi Augie, ers are incapacitated by a because when it comes from Symbol Price $ Change %Change Volume Date chairman of Kebbi State Rice number of factors, he said, the farm, it is usually filled DOW FUT 28129 -1 0% 187474 13/12/2019 Farmers’ Association, also including funding, access to with stones, sand, shafts and S&P FUT 3172 1 0.03% 1744438 13/12/2019 listed challenges of farmers as quality inputs and new tech- premature paddies. What NAS FUT 8517 25.5 0.30% 396998 13/12/2019 poor road networks, high cost nologies through extension would be left are the rem- S&P MID MINI 2022.5 -15.1 -0.74% 29318 13/12/2019 nants, which we process and of inputs and loans, pest infes- services. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 22 TECHNOLOGY&INNOVATION ‘Improved IT innovations can liberate 100m poor Nigerians by 2030’ Stories by Omobayo Azeez potential to lift 100 million engender increased usage of Nigerians out of poverty by emerging technologies such HE NIGERIAN 2030.” as Artificial Intelligence (AI), COMMUNICA- This is possible because robotics, Internet of Things TIONS Com- ICT innovations have the (IoT), Blockchain technology mission has ex- transformational power and Big Data - all of which are pressed belief to impact all sectors of the expected to become the next thatT 100 million poor Ni- economy, to impact our lives phase of ICT deployment gerians can be lifted above and to generate unprec- that users will interface with poverty line through collab- edented wealth for Nigeria for boosting efficiency and orative efforts on promoting and individuals, said. effectiveness in their opera- information and communi- According to him, the tions.” cation technology (ICT) in- activities and telling out- He further said the in- novations in the country. comes at the Silicon Valley dustry will achieve greater The Executive Vice Chair- in the United States indicate development and growth man (EVC) of the Com- the possibilities derivable with the Federal Govern- mission, Professor Umaru from ICTs that is possible in ment’s supportive policies Danbatta said leveraging on Nigeria, adding: “our aim is and directives, and with con- emerging technologies to to replicate and develop a tinuous consultation and create jobs resonates with the programme similar to Silicon formulation of regulations agenda of the federal govern- Valley which we call ‘Silicon that will promote regulatory ment (FG) to lift Nigerians WaZoBia’ within the Nigerian excellence and operational out of poverty. ICT ecosystem.” efficiency in the industry. Danbatta stated this re- Danbatta also reflected He said measures will be cently at a two-day forum on on the recent Fifth Genera- put in place to attract foreign “Emerging Technologies Re- promoting investment op- ployment for the teeming 13.9 percent to the country’s tion (5G) trials conducted by direct investment (FDI) and search and ICT Innovation” portunities and ICT innova- youths, enhance ICT knowl- Gross Domestic Product MTN in Abuja, Calabar and local investment. in Nassarawa State where he tion by facilitating strategic edge and skills, increase (GDP), surpassing the con- Lagos, under the supervi- Accordingly, the EVC was represented by Dr. Haru partnership and collabora- income and promote overall tribution of oil and gas sector sion of the Commission, solicited the support of all Alhassan, Director, New Me- tion. economic development in which is 8.8 percent of the na- saying that with 5G, “the stakeholders noting that it is dia and Information Security HE emphasized that “the the country is central.” tion’s Gross Domestic Prod- country should be ready to a collective responsibility of at NCC. role of ICT Innovators, tech Citing reports by the from uct as at October 2019. witness a greater revolution all relevant stakeholders in The NCC boss affirmed enthusiasts and tech entre- the National Bureau of Statis- He said, “Telecom sec- and transformational impact the telecom and ICT industry that NCC’s objective for the preneurs, whose activities tics (NBS), the EVC said that tor and by extension, the in economy. to ensure the consolidation forum aligns with the Com- will help in generating em- ICT currently contributes entire ICT industry has the “This development will of the gains of the sector. mission’s 8-Point Agenda of

becoming old-fashioned. It ISPON charges has now dawned on us that Broadband: ATCON pledges Pantami Nigeria, perhaps, is not very MDAs to patronise rich. support to realize 75% target “Therefore, countries like Singapore; etc are doing very SSOCIATION Teniola said the docu- tion on this proposed event indigenous software well without oil and such OF TELECOM- ments on National Digital would be shared with all HE INSTITUTE in Lagos, ISPON President, natural resources. We need to MUNICA- Economy Policy and Strategy concerned later. OF SOFTWARE Dr. Yele Okeremi, said the tap into the intellectual prop- TIONS Compa- will help all stakeholders “ATCON pledges to work Practitioners of roundtable was convened to erty and human resource we nies of Nigeria to have a focus as to what with the ministry in order Nigeria (ISPON) unmask the miseries around have to become great. This is (ATCON)A has pledged its the government is thinking to understand how we can has reiterated the the software industry in Ni- not the time to play politics if support to the Minister of in terms of digitalizing the shape, mould and create an needT for ministries, depart- geria. we want to remain relevant Communication and Digital entire country’s economy. industry that attracts further ments and agencies (MDAs) According to him, em- as a great country, in the next Economy, Dr Isa Pantami, According to him, it pro- huge investments and envi- of the government to favour bracing indigenous software 15 years. and agencies under his min- vides a further foundation ronment where innovation local software above foreign in the deployment of critical “I am saying this because istry in realizing 75 per cent which will eventually lead creates an eco-system where ones. government database and around 2013 Nigeria started broadband penetration tar- the industry to a truly digi- both the smaller and larger The Institute also harped projects is one critical way showing up in the global map get. tal transformation that has operators can co-exist to on the need to implement to avoid impending ‘digital for innovation. Why? There Nigeria telecoms indus- 5G as a central vehicle for create positive shareholder’s the Presidential Executive imperialism. were deliberate policies to try is currently pursuing a collaborative innovation value and deliver a consum- Orders that support prioritiz- He urged Nigerian govern- support software industry. target to deepen broadband to grow the GDP and raise er experience that exceeds ing local contents as means to ment officials not to overlook That is why we are asking the penetration in the country to GDP per capital in five year’s expectations. develop the software industry the lurking global cyber war MDAs to ensure strict imple- at least 75 per cent by 2023, time. “Collaboration remains a in Nigeria. where software contains the mentation of the Executive having met the initial target He said that in 2020, in critical factor in the success The practitioners made footprints of any nation. Orders that give priority to of 30 per cent at the end of order to give complete in- equation of our industry,” the call at ISPON’s Round- “At a point we were do- local software”. 2018. dustry support to our minis- he said. table on the ‘Future of Soft- ing well in agriculture. But ISPON is the industry The president of the as- ter’s passion and dreams for According to Teniola, the ware in Nigeria’; where the when oil was discovered, professional body for indig- sociation, Olusola Teniola, digital economy, ATCON, in special reception organized practitioners stressed need probably we became rich enous software developers said at a special reception collaboration with the min- in honour of the Pantami to implement the Presidential and relaxed. Now the price and practitioners in Nigeria, for the honourable Min- istry, and its agencies would was to formally present and Executive Orders series to of oil had ditched; the envi- established in 1999 with the ister in Abuja that opera- be organising a National introduce him to the cap- improve local ronmental degradation has aim of creating an enabling tors would collaborate with Dialogue on Telecom and tains of the industry, share In his opening remarks at become unbearable. environment for local content the ministry on the newly ICT in Nigeria. the current state of affairs the roundtable held recently Aside that, he said, oil is developers. launched National Digital He said the whole essence with him and offer him the Economy Policy and Strategy of the national dialogue is to opportunity to share his and broadband penetration foster the implementation of developmental plans for the around the development targeted. Digital Economy in Nigeria, industry with the relevant Russia raids office of U.S. web of Nginx’s original open- “We commend the re- adding that “the informa- stakeholders. source web server code by server giant in copyright clash cently launched documents Igor Sysoev when he worked on National Digital Econ- USSIAN POLICE the parent company of one of at Rambler nearly two de- omy Policy and Strategy. RAIDED the of- the country’s biggest search cades ago, so Rambler sees We promise to collaborate, fices of Nginx engines and internet portals, itself as the rightful owner corporate and partner with Inc., a U.S. com- said in a statement Thursday of the code. Nginx was first the Ministry of Communi- pany behind one it uncovered copyright viola- released publicly in 2004. It cation and Digital Economy ofR the largest web server proj- tions to its exclusive rights to now controls more than 30% to realise the set broadband ects, and briefly detained its Nginx, which was acquired of the server market for web- target of 75 per cent in the founder in a case that could by Seattle-based F5 Networks facing computers, behind documents in the next five stoke renewed fears of law Inc. this year in a deal that only the Apache Foundation, years by removing, collec- enforcement being used to valued the company at $670 according to Netcraft, which tively those obstacles that are settle corporate disputes. million. monitors the industry. Russia’s Rambler Group, The dispute centers working against the growth of the industry.” BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 TECHNOLOGY&INNOVATION 23 role without guidance and to know where to find necessary ANALYST information. The DPO must also have the board-level NFMC: Pantami Insight presence and be able to deal with experienced business people who will not know stresses autonomy the intricacies of DPO func- MICHAEL tions. IRENE, PhD • Teaching: DPOs must be of council Twitter: @moshoke able to speak in the language of the average Nigerian citi- Stories by Omobayo Azeez management of all regula- tory bodies represented in zen, not in technical or legal the Council, particularly, jargon, to handle requests HE MINISTER OF the Nigerian Broadcasting NDPR and the data and complaints from data COMMUNICA- Commission (NBC), to im- subjects. TIONS and Digi- mediately propose subsidiary protection officer function • Credibility: it is best if DPOs tal Economy, Dr are full time in their role or legislation to support the HE NIGERIAN there is a series of tasks the Isa Pantami, has the role outsourced to an existing Act. DATA PROTEC- DPO must perform. restated the need for Nation- independent external DPO T He expressed optimism TION Regula- Knowing those tasks, the al Frequency Management to overcome the possibility of that this would enhance ef- tion states, under next step is to determine the Council (NFMC) to regain conflicts. ficiency and fairness to the Implementation type of job skills that someone its autonomy in accordance Functions of the data pro- consumers with regards to Mechanism, that every data in the DPO role should have with the provisions of the Act T tection required job skills payment by satellite televi- controller shall: to be able to succeed in this establishing it. include: sion stations among oth- • Designate a Data Protection position. A Data Protection Pantami said this in a • Significant experience in ers. Officer to ensure adherence Officer must have significant statement signed by the Uwa global privacy laws, including Highlight at the meeting to this [NDPR] Regulation, experience in privacy and Suleiman, Special Adviser to tions: That the Council be drafting of privacy policies, was the inauguration of the relevant data privacy instru- security risk assessment and minister’s recently in Abuja, positioned properly as an technology provisions, and National Frequency Manage- ments and data protection best practice mitigation, in- following resolutions reached autonomous body with the outsourcing agreements; ment Council / Nigeria Police directives of the data con- cluding significant hands-on at the end of an inaugural secretariat, serviced by the • Significant experience in IT Force (NFMC/NPF), Joint troller; experience in privacy assess- meeting with members of officials of the Ministry of operations and programming Committee on evaluation • [and] may outsource data ments, privacy certifications/ NFMC in Abuja. Communications and Digital including attainment of in- of 450MHz Police equip- protection to a verifiably com- seals and information security The minister, who is the Economy. formation security standards ment. petent firm or person. standards certification. There Chairman of Council, faulted She said the meeting also certifications and privacy Umar said this was done in This is new. The role is are wide-ranging experiences the domiciling of the Coun- resolved that frequency au- seal/marks; line with the provisions of the made up of new require- that a company’s DPO can cil as a department under dit be carried out on all the • Demonstrated leadership law empowering the Council ments but the regulation does have. the Ministry, citing Section spectrum licenses issued by skills achieving stated objec- to extend membership to not go into lengthy details • Legal expertise: any person 30(2) of the Act to buttress the Council from its inception tives involving a diverse set of competent and qualified of what a DPO does or what with expert knowledge of his point. to date. stakeholders and managing persons or organisations to companies should look out data protection and law prac- According to the section: This according to the varied projects; assist in the discharge of its for when hiring one. Should tices is good as it will assist “The Council should be po- meeting is to determine • Have excellent negotiation duties. a company get an in-house the controller in achieving, sitioned properly as an au- amount paid and to know skills to interface with NDPR News Agency of Nigeria individual or should the role from a strictly legal perspec- tonomous body with the if spectrum licenses issues on behalf of the company (NAN) reports that the meet- be outsourced? tive to meet data protection secretariat serviced by offi- were being issued for the pur- represented. ing, which was Pantami’s first The Data Protection Of- requirements both locally cials of the Federal Ministry of poses they were assigned. • Demonstrated client re- as NFMC Chairman, was the ficer function overlooks data and internationally. However, Communications and Digital The minister emphasised lationship skills to continu- 48th of the council and the protection compliance in companies are made up of Economy.” the need not reduce the ously coordinate with con- fourth to be held this year. an organisation. She main- various technicalities and It also stipulates that there Council to the status of a de- trollers The minister assured the tains records of processing of the legal expert may not have should be frequent audit of partment within the Ministry, • Communication skills to nation that “under my leader- personal data, takes lead in IT, business analysis, and the Council, to be carried out adding that its independent speak with a wide-ranging ship, national interest must developing data protection managerial skills to comple- on all the spectrum licenses status was clearly spelt out in audience, from the board of supersede sectoral or per- and related policy and pro- ment the DPO function. That issued from its inception till the Act establishing it. directors to data subjects, sonal interests.” cedures. The DPO becomes said, the expert must have date. He noted that NFMC was from managers to IT staff and He described protection of a bridge between related these various skills in his/her This is to determine the established by the Commu- lawyers the consumer as paramount, disciplines, such as data pro- repetoire. DPOs must know amount paid and to deter- nications Act of 2003 which • Experience in dealing adding that the ministry tection, IT, audit, compliance, data protection law to a level mine if spectrum licenses empowered the body to coor- successfully with different would continue to provide legal and security, analysing of expertise based upon the issued were been used for dinate and regulate spectrum business cultures and in- enabling environment for how the results of data protec- type of processing carried out the purposes they have been license allocations across dustries industry players to thrive, tion schemes may impact the by the controller. assigned accordingly. regional and international The decision lies with each ‘within the dictates of the organisation. • Leadership/Broad expo- Suleiman said that the borders. organisation to find these law. ’ The role is made up of sure: the DPO will need to meeting ended with resolu- The minister called on the required DPO skills in either requirements that are not have leadership and project a single person or several peo- part of most Nigerian current management experience, to ple, to locate them internally company’s practice. Most be able to request, marshal, or outsource the role, and to Nigerian companies do not and lead the resources need- manage this function under necessarily have individuals ed to carry out their roles. Softcom empowers 250 the Chief Privacy Officer or vested with the functionality They also must be able to criti- let it operate independently. to manage data protection cally assess themselves for Lagos schools on AI learning It would be optimal to have mechanisms and frame- knowledge gaps and request many skills as possible in a works. This synthesized func- training in those areas. DPO OFTWARE AND demi Olobayo, said Softcom million Artificial Intelligence single individual, for obvi- tion is one that may require should have broad business PROGRAMMING is passionate about educa- talents in 10 years from Ni- ous reasons of cost, com- re-evaluating how the role is experience to know the in- firm, Softcom has tion as it is a catalyst for geria and this Masterclass is munication, productivity, staffed and carried out and dustries of the data controller empowered 250 change in Nigeria. one of our platforms to real- and responsibility. While, of needs a fresh perspective on well enough to understand primary and sec- He said: “To address the ize this vision. We are thank- course, a DPO may rely upon the duties involved and skills how privacy should be imple- ondaryS schools in Lagos challenges in the education ful to our partners, Softcom technical skills of others, they required. mented to integrate smoothly through free distribution of sector, we are doing some for making this happen.” must be sufficiently capable It is noteworthy that the with the way each company copies of a recently launched research around basic edu- During the Masterclass, in all these areas to provide DPO role is not mandatory. designs and markets its prod- Artificial Intelligence (AI) cation and the possibilities participants were taken an independent assessment. The first step for any organisa- ucts and services and earns its textbook. of broad access. We also through the impact and use It is up to each organisation to tion is to analyse whether a revenues. The tech company ex- have the Teachers’ Learning cases of AI, alternative chan- implement its own DPO role DPO is required. A DPO can • Self-Starter/Board-Level: hibited the gesture at an AI Network where we system- nels to learn Python using keeping in mind its obligation be engaged because they are DPOs should be self-start- and Python programming atically upskill teachers. other devices besides a lap- and how a DPO will facilitate required or can be brought on ers, with the competence Masterclass for computer “We are therefore excited top, deep dive into Python the likelihood of full compli- voluntarily, but, in either case, and skills to carry out the science teachers it hosted to partner with Data Science programming and introduc- ance with NDPR. in collaboration with Data Nigeria on this book distri- tion to Machine Learning Science Nigeria (DSN) at bution to various schools and Deep Learning. Lagos State University on across Nigeria.” Participants in the Mas- particularly excited about light the challenges in the in the teaching and learning Thursday. It would be recalled that terclass expressed apprecia- the tools explored – Python education space and how it process with tools to ensure At the Masterclass aimed last month, Data Science tion to the organisers. Ade- in particular. Being able to intends to address this utilis- they can effectively learn, at equipping teachers with Nigeria (DSN), in partner- bowale Adetoun, ICT and access Python for free is of ing technology. document, track, interact the requisite skills and ship with Softcom, published Data Processing Teacher, advantage to low income Olobayo said, “With Ni- and share educational ma- knowledge to transfer to and launched the first AI At-Tanzeel Schools, Ikorodu, countries like Nigeria, and I geria’s population rapidly terials seamlessly; and ‘Koya their students, each teacher textbook for primary and one of the participants, de- look forward to implement- growing year after year, it is for Open learning’, designed received a free copy of the secondary schools. scribed the Masterclass as ing a Data Science & AI cur- necessary for education to to equip individuals with AI textbook for use in their Technical Delivery Lead, informative, educative & riculum in the schools that scale at a similar pace.” skills they need to thrive in respective schools. Data Science Nigeria, Olale- interesting. we partner with”. The solutions highlighted the corporate world, and The Chief Solutions Of- kan Akinsande, says: “we are Okoedoh Abraham, a pri- Meanwhile, Softcom also include ‘Koya for Schools’, solve societal challenges. ficer, Softcom Limited, Sein- committed to building one vate educator, says: “I am used the platform to high- which provides stakeholders 24 BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 business a.m. Which?

SO Klin is a product of Eko 7. SO Klin Supreme Resource Nigeria Which powder detergent is best? Limited. Detergent (900g) 4. Zip Detergent Powder (1kg) Strengths Zip detergent powder is a • It is one of the cheapest product of PZ Nigeria Ltd. brands in the market, with the 900g selling for N650 Strengths • It has a good stain remov- • It is very good on white al effect, particularly tough clothing and linens and stains achieves a brilliant result in • It is gentle on the skin and very effective for killing bac- a single wash • It is packaged in a fasci- teria is corrosive on coloured Weaknesses • It is a well-known brand, clothes nated light-blue dominated • It is a bleaching deter- sachet and has a nice fra- available virtually every- • It is not so suitable as a gent, mainly suitable for only where, and has been in the Washing Machine Deter- grance white fabrics • At N560 per 1kg, it is one of market for many years. gent 1. Ariel Detergent (1kg) • It is more suitable as a • It does not have a unique the most affordable brands washing machine detergent Ariel is a product of Procter powder) variants for consum- in the market and is avail- Weaknesses characteristic appealing fra- and Gamble (P&G) Nigeria ers to choose from because it is no so mild on • Only best suited for white grance like many other deter- able in many stores nation- the skin/hand. Limited. It is available in both • It is gentle on the skin and wide. clothes, as it bleaches and gents in circulation. Hand Wash and Machine has a nice fragrance Wash variants across major • It is easily available in stores in Nigeria. stores and retail shops na- tionwide 5. OMO Detergent Powder (1kg) 8. WAW Multi-Use Detergent (900g) Strengths (OMO auto WAW Multi-Use Detergent is a • It contains unique en- Weaknesses washing ma- product of Expand Global In- zymes and polymers that • It is not suitable for co- chine powder) dustries Limited. It comes in a help remove tough stains in loured cotton fabrics as it variants unique black colour sachet one wash and keep clothes bleaches it • It is gentle on sparkling clean • It contains some coloured the hand and Strengths • It does not require one to particles which if not properly can also be used • It works well for both white scrub clothes to get results, as dissolved in water can caused in the washing and coloured garments it allows for soaking stains on the clothe of toilets, mop- • It is one of the most afford- • It is available in both Hand • At N950 per 1kg, it is rela- ping, cleaning, able brands, with the 900g Wash (Ariel brilliant cleaning tively more expensive than etc. sachet selling for N610 1 wash) and Machine Wash many other brands of the • It is packaged in a unique (Ariel automatic washing same size. OMO is one of the pioneering Weaknesses black colour sachet and avail- detergent brands in the Ni- • It is one of the most expen- able in stores and retail outlets the water gerian market. It is produced sive brands, as the 1kg Hand across the country. • A session of consumers 2. Sunlight by Unilever Nigeria Plc. The Wash variant presently sells believes the detergent cause product is available in both at N720 and the Machine Weaknesses 2-in-1 Detergent visible whitish skin reac- Hand Wash and Machine Wash variants at N1,025 in • It does not foam or pro- tions/marks. (900g/1kg) Wash variants (Same as Ariel Shoprite, Spar outlets, and duces lather well enough in Detergent Powder), and it Supermarkets Sunlight powder deter- is available in every major • It is best suited for only Nittol Multi-Use Detergent gent is a product of Unilever store and retail outlets na- 9. Nittol Multi- white clothes as it is known is also a product of Expand Nigeria Plc. It comes in 3 tionwide. to be bleaching coloured Global Industries Limited Use Detergent variants namely: Sunlight clothes (maker of WAW Multi-Use Spring Sensation (Yellow • It is one of the most afford- Strengths • It also contained some Detergent). (900g) Pack), Sunlight Tropical able brands in the market as • It one of the pioneer brands coloured particles which Sensation (Pink Pack), and the 900g pack goes for just in Nigeria with effective stain can leave stains on clothes Strengths Sunlight Paradise Sensation N610 removal quality if care is not taken • It has a good stain remov- for auto-wash. • It is one of the fastest mov- • It is highly water-soluble • Popularity seems to have ing brands in the market and and has a nice fragrance that al effect, particularly tough declined as it is a bit dif- stains Strengths is available in virtually every is retained after wash ficult to find in many retail • It is gentle on the skin/ • It is gentle on the skin and supermarket, traditional mar- • It is available in both Hand shops/stores. hands retains its rich fragrance kets, and retails shops across Wash (OMO multi-active de- • It is very economical as even after wash Nigeria. tergent) and Machine Wash the 900g sachet sells for just • It has a lifespan (produc- N500 tion to expiry) of 2 years, Weaknesses • It has antiseptic content which is rare for deter- - It is not ideal for colour 6. Persil Colour Detergent effective for killing bacteria gents fabrics as it bleaches curds that can be re-depos- (850g and 1.495kg) and germs. ited on fabric Persil powder detergent • It is common in malls, but Weaknesses scarce in retail shops and is an imported brand, pro- • It reacts in water to form 3. Viva Plus Detergent Powder (900g) duced by Unilever UK Lim- traditional markets Viva Plus Detergent is a ited. It comes in a unique Good Mama cleaning de- product of Aspira Nigeria paper package for easy han- tergent is a product of Eko 10. Good Limited dling by the consumer. Supreme Resource Nigeria Mama Cleaning Limited. It is packaged in an Strengths Strengths attractive yellow sachet and Detergent (1kg) • It is best for cleaning co- • It is gentle on the skin and comes in two variants – Flora loured clothes has a nice fragrance fresh and Lemon fresh. • It has a life span of about 2 • It removes tough stains, years (same as Sunlight de- and there are bio and non- fabrics and is highly recom- Strengths tergent), which is rare among bio forms of the product mended by dry cleaners for • It dissolves easily and forms detergents • It does not have a unique • It dissolves instantly in wa- washing all kinds of fabrics. lather well enough in the • It is quite common among characteristic appealing ter and does not leave par- Weaknesses water detergent dealers and in fragrance like many com- ticle or stain on clothes • It is not so economical as the • It has floral fresh and lemon shops. peting brands • It has a wash booster tech- 1.495kg variant goes N4,000 fresh variant – each having a • It requires long hours of nology in its makeup which • It is only best used as machine unique fragrance Weaknesses soaking clothes in its water makes it effective for remov- wash detergent • It is quite popular among • It does not form lather well before stains could be prop- ing oily and greasy stains • It can only be found in malls powder detergents dealers in enough in the water erly removed. • It preserves the colour on and online stores. the country Weaknesses • It is very affordable - Being a non-bleaching for any income class as the [email protected] detergent, it is not so suitable 1kg sachet goes for N500. for washing whites. For further enquiries kindly contact: or call +2349083475417 BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 NIGERIA FRONTIER MARKETS 25 HIS is a season when some peo- R ple would want Xmas season: Benchmark a quiet place to n irntelligencep spend the Yule- tideT with their families or Hotels ready to receive friends, could you share with us some of the preparations 11. Canoe Extra Care Detergent (900g) you have made for the com- guests, saysnwr aOgunyemip Canoe Extra Care Detergent is fort of your customers and a product of PZ Nigeria Plc. It guests? is a non-bleaching detergent As we all know, in Igbo OGUNYEMI ODUNAYO, the general manager of Owerri- and is best suitable for wash- land, we don’t joke with based Benchmark Hotels Limited, speaks to business ing coloured fabrics. Christmas, we celebrate Christmas. Those that are a.m.’s DIKACHI FRANKLIN on the readiness of the hotel Strengths far away from the East will • It is effective in killing bacte- come home to celebrate to receivenw a wholer p lot of guests and customers during ria on fabrics Christmas with their families the Yuletide. • It is one of the cheapest and friends. So, we in the brands in the market with the hospitality industry are al- 900g sachet selling at N600 ways here, to welcome them • As a non-bleaching deter- and our guests from outside gent, it is very suitable for the state and beyond. washing coloured fabrics of Definitely some of them any sort may not have a quiet place variant (Canoe bar soap) to stay or a place of comfort than the detergents Weaknesses because the house may not • Its fragrance is not as at- be ready for their use or for • Many customers are more tractive as that of many other familiar with the bar soap their comfort or they may brands need a good environment to transact some businesses or have some meetings. It is most likely that everything 12. Magik Multi-Purpose they need for their comfort Detergent Powder (900g) has been provided at Bench- Magik Multi-Purpose Deter- mark Hotels limited. gent is a product of Nourdm We have been making a Global Company Limited. lot of arrangements for their coming so that they will have a pleasant stay. Strengths • It is an all-purpose deter- Normally, during ember gent, and can also be used for months (September – De- scrubbing, cleaning, washing cember) or season like this, in place? to welcome our guests in dishes, etc. you see a lot of renovations LOOK, we work hand-in- this particular season other Christmas as we all know • It is economical, as the 900g going on, upgrading of your hand with the government hotels are doing the same. is a period when people and sachet goes for just N500 in facilities so that it will en- and the government of this And it may be in a different corporate organisations retail stores able you meet up with the state is doing a lot to ensure way but we are doing a lot to give and receive gift items. • It has a nice fragrance and demands for the Christmas. that there is always protec- satisfy our guests and make Do you have any such plan appears to be bigger than So a lot of activities have tion of lives and property, so them comfortable because to appreciate your custom- many of the competing been going on in this hotel, the safety of our guests and this is our peak period. And ers for all their patronage in • It sometimes causes whit- making sure that the gen- brands ish skin reactions/marks customers is assured. And if you are in business and the year 2019? erators, the rooms other we in the hospitality industry you see that the demand Yes, there is always need after using facilities are kept in order. So Weaknesses • It is only good for wash- make our own internal ar- for goods or services are to appreciate your customers • It is not so mild on the we are ready to receive our rangements; you hardly see rising and you don’t make for patronizing your business ing whites as it bleaches guests and costumers for the hands/skin coloured fabrics. any hotel operating without arrangements to meet up because in this business, it is Christmas. armed security men. So we with the demands of your very, very competitive. You are always ready to ensure customers you miss it and have to keep your custom- COULD you also tell us the safety of our guests and you will lose. ers happy, for patronizing how prepared your F & B customers. the business, by preparing 13. SO Easy Multi-Use (food and beverage) de- WILL the rising demand some gifts in appreciation. Detergent Powder (1kg) partment for the festive BENCHMARK Hotels we of your services increase It is very good to do that, it influx of people? know is always a busy hotel the prices of your goods is one of the things we do in SO Easy Multi-Purpose De- In terms of foods and tergent is a product of Ex- where customers come and services? Benchmark Hotels. drinks we are always there, in and go out. In a festive Yes, when the demand treme Manufacturing Nigeria definitely when they come limited. period like this, it is envis- rises, actually the prices of FINALLY, do you have to patronize our business, aged that there is going to goods and services will be any other message for the foods and drinks are always affected alongside with the Strengths be influx of guests, do you public for the Christmas part of the things they are have enough rooms to ac- demand, this is the law of and the New Year? • It is suitable for both white going to enjoy and enough and coloured clothes commodate the expected demand and vice versa. Or- Yes, I have a lot but I want of drinks, food items and guests? dinarily we don’t intend to to tell them that at Bench- • It forms lather well enough foods are in stuck. in the water We have about 40 rooms increase our rate but some mark Hotels, we are always MANY people fear to here and they are tastefully of the items we use to service ready to receive you and • It is affordable for any in- visit home because they come class as the 1kg sachet furnished and with internet our facilities we get them make your stay a memorable do not want to risk their facilities because the system from the markets and when one. Whenever you come to sells for just N500 lives, families or friends • It packaged in an attrac- is going digital. their prices in the markets Owerri, ask of Benchmark they would want to travel increase they will invariably hotels. We have varieties of tive black colour dominated characteristic appealing with. They fear that they sachet CAN you say that Bench- affect the prices of our own items, products and above fragrance are not protected and more mark’s offering are supe- products and services. We all, we will give you the best • It is only suitable as Hand so that hotels are public rior to others operating sell based on what we buy, services that you will not Weaknesses Wash and not as Machine places even criminals visit, • It does not have a unique around here? so the market price of what forget and you will never Wash detergent. could you tell us how much I want to believe that as we buy is the determinant of remain the same. security arrangements are we are making arrangements what we are going to sell. Customs invade markets seize 400 bags of foreign rice in Owerri By Dikachi Franklin, Owerri, Imo State capital houses and stores where the stores located around the in Owerri and seized over 400 bags of contraband foreign bags of demolished Owerri Main For your classified different brands of foreign rice were stored and sold to market said “ Our shops EN OF THE rice. rice retailers and also to the have remained closed since NIGERIAN adverts Call: It was alleged that few final consumers. this week, the Customs have CUSTOMS traders whose goods were A member of the rice been coming, harassing SERVICE confiscated and passionately dealers of association under and entering forcefully into 08035555568 (NCS), pleaded with the Customs so the umbrella of the Grain suspected warehouses and Federal Operations Unit M that their goods would not be Distributors Association stores seizing bags of for- 08034246024 (FUO) Zone C, Owerri, Imo taken away were asked to of Nigeria Imo State Chap- eign rice. State, under the Command cough out N500,000 each. ter in Owerri, who spoke “My neighbour had to 07082256051 of Comptroller Kayode This however, has result- on condition of anonymity pay N500,000 to prevent Olusemire recently swooped ed to the big dealers in for- to some journalists during them from carrying away 07039371360 on traders at markets in eign rice closing their ware- the investigations at some his goods. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 26 NIGERIA FRONTIER MARKETS Abia Shoe factory, multi-million-naira investment, seeks alternative power source from Shell Stories by Ben Eguzozie, industry which is worth over been tested and confirmed to in Port-court N130 billion, producing ap- be in good condition for the proximately 52 million pairs job, saying that various kinds HE MULTI-MIL- of shoes annually. of shoes could be produced at LION-NAIRA Over the years produc- the factory. Abia Automated tion by mainly small-scale Governor Ikpeazu, after Shoe factory, lo- shoemakers at Aba had been an inspection visit to the shoe cated in Umuo- undertaken by manual la- factory, said, he was satisfied kahia,T Obingwa local gov- bour, using crudely fabricated with the progress made so ernment area of Abia State is machines. With soaring de- far at the shoe factory. He seeking an alternative power mands from across West and praised the technical team supply source from Shell Pe- Central Africa in recent years, from China and coordina- troleum Development Com- the Aba shoe industry has tors of the project for doing a pany (SPDC) to enhance been experiencing business good job. maximum production at the boom. He said that the decision factory. Sam Hart, the coordina- to establish the shoe factory Currently, most of the tor of the Shoe factory and in the state was a product of machines imported from Chinenye Nwogu, special one of his visits to China. China by the state govern- assistant to Governor Okezie He confirmed that efforts ment that have been installed Ikpeazu on Social Invest- were in top gear to provide at the factory site, are being ment and Job Creation said alternative source of power the power talks have almost to the factory. He charged the tested. The shoe production and allied industry, as well as the factory is planned for The Abia Automated Shoe machines are set to produce reached conclusion levels. Chinese contractors install- increase product quantity. Q1 of 2020, according to the factory is coming as an addi- Hart and Nwogu said ing the machines to ensure modern shoes from Aba, with First rollout of shoes from owner state government. tion to the booming Aba shoe a booming shoe, bags, leather some of the machines had to meet up the deadline.

the Federal Government Massive mulled an idea of diversi- Etche, another Rivers oil community, asks fying the country’s export gains for earnings and alter its eco- state to take over their OML 17 as it did OML 11 nomic growth strategy. The Niger Delta project has two main com- TCHE IS AN OIL- Nigeria National Petroleum host. ponents: enhancement of RICH community Corporation (NNPC) and Nwodim, Ogbakor pres- youths, economic opportunities for in Rivers State is National Petroleum Invest- ident-general praised the rural youth and women, and asking the state ment Management Services Rivers Government for ac- women project management and government to (NAPIMS); and even Shell quiring the oil facility where coordination. immediatelyE take over their indicated absolute ignorance they (Etche) are part own- Joi Nunieh, the acting oilfield, Oil Mineral Lease about how the acquisition ers. “Etche Ethnic Nation- as IFAD managing director of NDDC, (OML) 17, as it did with OML was carried out. ality views the action as a said the now launched proj- 11, which has Ejama Ebubu But leaders of Ejama Ebu- welcome development,” he launches ect is anchored on a strategic and part of Ogoni, Etche, bu welcomed the acquisi- said. framework that addresses Bonny, Oyigbo, Ogu/Bolo tion, saying as a principal For Governor Wike, ac- $129m agric the large and growing num- and Okrika as host com- host of the oil block, they quisition of OML 11 was ber of restless unemployed munities. were primarily hit by heavy aimed at promoting the in- scheme youths, particularly in rural For Machy Nwodim, the spill 29 years ago which terest of host stakeholder president-general of Ogba- ment’s action, saying it was forced them to engage Shell communities, and ensure EVERAL THOU- areas. carried out “without the “LIFE-ND is planned with kor Etche, the acquisition (SPDC) in a long legal battle, peace for the operation of SANDS OF young of their OML 17 by Rivers slightest consultation with to the extent of rejecting the the oil facility. “What Rivers people and women a financing gap of six years. the Ogoni people or their It has both a first phase of government would guaran- oil giant’s N7 billion reach- State Government wants is in the oil region tee the community a sense free, prior and informed out to placate them against for the interest of our state to of Niger Delta are six years, with parallel fi- consent.” nance from NDDC to the of belonging than what they continuing with the litiga- be protected. Whoever that setS to become off takers had received from Shell The Ogoni pressure group tion. is coming to take over will tune of US$30 million, and of a $129.17 million agric Petroleum Development said the purported acquisi- Now Etche, another of have the interest of the com- enterprise scheme formally an additional six years to tion was shrouded in “se- be financed in the future by Company (SPDC) in over a the six host communities munities protected. When launched last week by the In- quarter of a century. crecy and inconsistencies” of OML 11, has come out the communities are part ternational Fund for Agricul- other partners or additional without consultations with IFAD loan. The total project OML 17 is a large onshore to ask Governor Wike to owners of OML 11, there will tural Development (IFAD) set of oilfields licence within the Department of Petro- equally acquire their OML 17 be peace,” the governor said for the oil-rich region but cost to be incurred during leum Resources (DPR), Min- the 12-year implementa- the NNPC/Shell JV. The block where they are the principal last week. which reels in poverty. has 15 oil and gas fields, six of istry of Petroleum Resources, The project, which runs tion period, including price and physical contingencies, which are currently produc- for 12 years, targeting poor ing. It extends from the low- and vulnerable youths and duties and taxes, are esti- mated at US$129.17 million.” lying swamp northwards women in mainly rural areas (of Port Harcourt) into drier of the oil communities, was Nunieh said. She said the project is terrain where the operating unveiled in Port Harcourt by conditions are easier. Crude the IFAD in conjunction with meant for the Niger Delta region, and the essence of from the OML is exported the Niger Delta Develop- through the Trans-Niger ment Commission (NDDC) the launch (last week) is to create more awareness about Pipeline (TNP) to the Shell- and Federal Ministry of Ag- operated Bonny oil and gas riculture and Rural Develop- the project and to make the people realize how much terminal. The largest produc- ment (FMARD). er of OML 17 is Agabada. The organisers said the the government of the day cares about their welfare In early last October, project aims to transform the Governor Nyesom Wike an- rural economy of nine states in the area of job creation, food security and improved nounced a Rivers State gov- in the Niger Delta region. ernment’s unilateral acqui- They are: Abia, Akwa Ibom, standard of living. The region needs to take it more seri- sition of 45 percent in OML Bayelsa, Cross River, Delta, 11, being Shell’s stake in the Edo, Imo, Ondo and Rivers, ously and harness maximally the expected benefits of this oil block which has been a being oil producing states. source of litigation for over Current surveys put most project.” She said NDDC is quite 30 years between Shell, its of these states as running operator, and Ejama one of very high on the unemploy- committed to continuously partner with development its host communities. ment and underemployment Since the acquisition, ranking on a geopolitical organisations like IFAD in bringing the best to the peo- mixed reactions from some zonal aggregation. of the host communities The Livelihood Improve- ple of the Niger Delta region, adding: “We look forward to have trailed the move. ment Family Enterprises MOSOP (Movement for the – Niger Delta (LIFE-ND) an impactful project imple- mentation in the region.” Survival of Ogoni People) programme was initially resented the state govern- inaugurated in 2010 when BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 MANUFACTURING & INDUSTRY 27 business a.m. quarter 2019 as against the submersible drilling plat- value recorded in the second form, vessels and other float- HE NATIONAL Nigeria imports decreased quarter, 2019 but decreased ing structures. BUREAU OF STA- by 3.48 per cent when com- The report, however, in- TISTICS (NBS), pared to the third quarter dicated that the value of ag- said total imports in 3rd quarter — NBS 2018. ricultural exports decreased into the country “The value of other oil by 42.69 per cent in the third inT the third quarter of 2019 products imported decreased quarter 2019 compared to decreased by 2.70 per cent, by 41.85 per cent in the third second quarter exports which while exports of other oil quarter 2019 against the level was 14.66 per cent. products rose by 6.14 per recorded in second quarter, NBS noted that the value cent. 2019.’’ of raw material goods exports The Bureau made this Meanwhile, NBS said the decreased by 5.74 per cent known in a report made avail- value of total exports in the while the value of solid min- able to newsmen in Abuja on third quarter, 2019 increased erals exports also decreased Friday. by 15.02 per cent compared to by 17.08 per cent within the Specifically, NBS said the the level recorded in second same period. value of percentage of im- quarter 2019 which increased “The exports of energy ports decreased by 2.70 com- by 1.34 per cent. goods decreased in value by pared to the second quarter 40.06 per cent in the third in the year with a total rise by “The value of other oil quarter 2019 compared to 8.20 per cent. products exported rose by second quarter, 2019 and 45 It explained that the val- 6.14 per cent in the third per cent when compared with ue of imported agricultural quarter 2019 against second the third quarter 2018. products was 4.01 per cent quarter, 2019 but fell by 15.19 “The value of crude oil lower than in the second per cent relative to the third exports in the third quarter of quarter which was 5.79 per quarter 2018.’ 2019 was 4.79 per cent lower cent. “The value of manu- than in second quarter 2019 Similarly, the NBS said factured goods exports in- and 9.62 per cent lower than the value of raw material creased by 839.44 per cent in the third quarter 2018,’’ NBS imports decreased by 4.64 the third quarter, 2019 when said. per cent in the third quarter compared to the value re- The bureau put the value of the year. corded in second quarter, and of Nigeria’s total trade in the The bureau further said recorded in the third quarter period. other wood charcoal, electri- over 1,000 per cent compared third quarter, 2019 at N9.1 that the value of solid min- 2018. It explained that the cal energy and charcoal of to the third quarter 2018. billon representing 6.8 per erals imports was 31.73 per The bureau, however, dis- 286.91 per cent increase in bamboo. “The notable increase re- cent compared to the second cent lower than the value of closed that value of energy energy goods imports was “The value of imported corded was due to the re- quarter which grew by 4.42 second quarter 2019 but 7.05 goods imports increased by relative to third quarter 2018 manufactured goods grew exports of high value Cable per cent. per cent higher than the value 243.92 per cent in the same due to increased import of by 12.46 per cent in the third Sheaths of Iron, as well as

cation scheme put in place “It is pertinent to reiter- 12 companies receive to ensure all locally manu- Over 7000 farmers in dairy ate that FrieslandCampina factured products conform WAMCO is a responsible SON MANCAP certification to the requirements of the development programme corporate entity in Nigeria Nigerian Industrial Standard and does not condone any business a.m. the requirements of relevant (NIS) before such products form of undue commercial Nigerian Industrial Stan- are presented for sale in the exploitation in any of its HE STANDARDS dards. market or exported. processes. The company is ORGANISA- Aboloma, who stated The DG, who was repre- fully committed to prevent- TION of Nigeria, this at the MANCAP certi- sented by Ololade Ayoola, ing and eliminating any form Rivers/Bayelsa fication award ceremony, the state coordinator, Riv- of child labour in its supply State Office, Port held in Port Harcourt by ers/Bayelsa, stated that the chain. It continually works Harcourt,T has awarded 12 SON recently, encouraged programme started in 2006 with stakeholders to develop companies Mandatory Con- manufacturers to embrace and aims at ensuring com- and implement meaning- formity Assessment Pro- the product certification pliance of made-in Nigeria ful solutions, in line with gramme (MANCAP) Certifi- schemes SON offers as this products to minimum re- the UN Guiding Principles cation (10 in Rivers and 2 in will strategically position quirements of Nigerian In- on Business and Human Bayelsa) for compliance. Nigerian products for export dustrial Standards, thereby Rights and with the OECD Osita Aboloma, the direc- and the AfCTA. promoting fair competition FRIESLANDCAMPINA and entrepreneurial train- guidelines for multinational tor general of SON, com- He said the mandatory at both domestic and in- WAMCO NIGERIA LIMITED ing, thus safeguarding food enterprises. mended the companies for conformity assessment pro- ternational markets as well is working with over 700 security and nutrition. “This ethos consistently their quality consciousness gramme (MANCAP) is a as safeguarding the lives of dairy farmers in the country Ore Famurewa, the ex- forms part of its engage- and efforts in complying to compulsory product certifi- consumers. under its Dairy Develop- ecutive director, corporate ment with the pastoralist He stated that by stimu- ment Programme (DDP) in affairs, FrieslandCampina and smallholder farmers. lating productivity and inno- rural communities which WAMCO, explained that “At Additional review will be vation, standards becomes is expected to improve the FrieslandCampina WAMCO, done to ensure all practices an essential driver for eco- livelihood of farmers and we are proud of the over remain in line with the Oyo nomic growth. He noted that improve their contributions 7,000 farmers including fe- State Child Rights Law 2006 a number of studies carried to the economy. male dairy farmers who have in particular and the Laws of out in developed countries According to the compa- been empowered under our Nigeria in general”. such as Denmark, Germany, ny, the deployment of DDP Dairy Development Pro- The firm noted that an -in UK, France and Canada have aligns with its ambition to gramme, across Oyo, Ogun ternational non-profit orga- investigated the connec- improve the standard of liv- and Osun States respectively. nization, Partner Africa, has tion between standards and ing of dairy farmers and their We are particularly happy been engaged to conduct an economic growth and they families in Nigeria, where it with the increased access independent investigation of show that standards account operates its Programme. they have to a better life its Dairy Development sites, for one to four percent of the The firm added that farm- as they are able to support after which the results of the growth of the gross domestic ers are given the opportunity themselves and send their investigation will be made product (GDP). to participate in technical children to school. public.

natural resources and a pro- Statistics (NBS) reveals that LCCI worried about rising poverty triggered by high inflation ductive population. economic growth slowed to ITH INFLA- most likely trend higher in tunde Ruwase, stressed that “As a chamber, we have 1.94 per cent in second quar- mand, traffic gridlock on remained resolute in promot- TION RATE coming months. the increasing inflation may Lagos port roads, border ter of 2019 from 2.1 per cent AVERAG- The chamber attributed further worsen the poverty ing polices that support pri- in the first quarter, bringing closure, forex exclusion list vate sector development and ING 11.25 the outlook to the continued status of many which call for and insecurity in some parts half-year growth for 2019 to per cent closure of the land borders, urgent concerns. the progress of the economy. 2.02 per cent. of the country, among oth- We were consistent in our betweenW January and Sep- implementation of new mini- Ruwase at its 131st yearly ers. The economy was able According to him, Nige- tember 2019, above Central mum wage, proposed a hike meeting stated that the out- policy advocacy and kept our ria’s economic growth has not to maintain a positive growth promise of providing busi- Bank of Nigeria’s (CBN’s) in VAT rate, festive-related going year was characterized trajectory driven by the re- grown fast enough to create preferred 6-9 per cent target consumer spending and re- by numerous opportuni- ness development services to opportunities for its populace covery of oil price for the most our members and the larger and the 9.8 per cent target in cent flooding incidences ties, achievements and chal- part of the year which gave a growing at 2.6 per cent, saying the 2019 budget, the Lagos which might have affected lenges. business community”, he that it is a cause for concern boost to the macroeconomic added. Chamber of Commerce and harvesting of food crops. “There were issues of fundamentals. Nigeria re- given its attendant impact Industry (LCCI) has pre- The immediate past presi- high-interest rate, weak GDP He highlighted that data on poverty and unemploy- mains a robust economy with from the National Bureau of dicted that inflation rate will dent of the chamber, Baba- Growth, weak consumer de- a large market, abundant ment. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 28 ENERGY, POWER & RENEWABLES Nigeria’s oil earnings slide by 2.6% to N3.97trn in 9 months – CBN business a.m. crude oil and gas sales.” The report further stated IGERIA’S that Nigeria’s crude oil pro- EARNINGS duction, including conden- FROM the oil sates and natural gas liquids, DPR aligns deliverables and gas indus- averaged 1.89 million bar- try declined by rels per day, MBD, in the with ministerial mandate 2.62N per cent to N3.973 tril- review quarter, representing lion in the first nine months an increase of 1.6 per cent, for oil and gas sector of the year, from January to compared with 1.86 mbd September 2019, according produced in the preceding business a.m. the passage of the petro- to data obtained from the quarter. leum industry bill, increase The report attributed the HE DEPART- Central Bank of Nigeria, domestic refining capac- increase in production to the MENT OF PE- CBN. ity, create jobs for Nigerian re-opening of some major TROLEUM Re- The CBN, in its Economic youths. oil installations earlier shut- sources (DPR) Report for the Third Quar- Shakur said that the stra- down, including the contri- has aligned its ter of 2019, disclosed that tegic management retreat butions from the start-up of deliverables with the min- gross oil revenue in the nine- T will further assist the DPR to the new Total Egina field. isterial mandate for the oil month period dipped slight- sustain the tempo of ongo- “The average spot price of and gas sector in Nigeria. ly by N107 billion, compared ing reforms in the Agency Nigeria’s reference crude oil, Ahmad Rufai Shakur, to N4.08 trillion recorded in which is geared towards N2.682 trillion and N1.086 trillion, federally-collected the Bonny Light (37° API) fell the acting director of the the same period in 2018. aligning with the Agency’s trillion gotten from crude revenue in the third quarter from $71.32 per barrel in the Department of Petroleum Giving a breakdown of vision of being a world- oil and gas exports, PPT/ of 2019 was lower than the second quarter of 2019, to Resources, stated this at the gross oil revenue this year, class regulatory agency. He Royalties and others, respec- quarterly budget of N3.759 $65.21 per barrel in the third opening ceremony of the the CBN report noted in the tasked the top management tively, in the same period in trillion by 28.2 per cent. It, quarter of 2019. DPR Strategic Management first, second and third quar- of the agency to ensure total 2018. however, rose by 18.3 per This represented a de- Retreat which took place in ters, N1.41 trillion, N1.219 alignment of their divisions Irrespective of the decline cent above receipts in the crease of 8.6 per cent and Abuja. trillion and N1.34 trillion and zones to the ministerial in oil revenue components, preceding quarter. 14.7 per cent below the levels He emphasized that the oil earnings were recorded, deliverables as it has been the CBN report noted that “The decline in federally- in the preceding quarter and objective of the retreat was respectively, compared to embedded into the DPR’s gross total federally-collect- collected revenue (gross), the corresponding period of to cascade down the Minis- N1.288 trillion, N1.398 tril- corporate strategy. ed revenue appreciated by relative to the quarterly bud- 2018, respectively. terial mandate to all the staff lion and N1.394 trillion re- Timipre Sylva, the minister 5.3 per cent from N1.086 tril- get, was attributed largely to “The development was of the Agency to enable DPR corded in the same periods, of state, petroleum resources, lion in the first nine months shortfalls in receipts from oil due, largely, to tightened provide the necessary regu- respectively, in 2018. who was the special guest of of 2018 to N1.109 trillion in revenue in the review period. crude oil supply in the global latory oversight for the oil Furthermore, gross oil honor commended DPR for the period under review. “Gross oil revenue at N1.34 oil market, majorly to high and gas sector and achieve revenue in the nine-month the retreat initiative. Non-oil revenue, accord- trillion or 49.6 per cent of U.S crude stockpiles in the the next level agenda of period of 2019, according He stated that there must ing to the report, also rose the total receipts was be- period and worries over Government. to the report, comprised be a shared vision by all significantly by 16.62 per low the quarterly budget by escalating US-China trade He listed the ministerial crude oil and gas exports players in the industry for cent to N3.319 trillion in the 44.6 per cent but was above dispute. deliverables as, eradication earnings of N281.35 billion, progress to be achieved. first nine months of 2019, the receipt in the preceding The UK Brent at $63.42 of smuggling of PMS across Petroleum Profit Tax/Royal- Chief Sylva emphasized that compared to N2.846 tril- quarter by 9.9 per cent. per barrel, Forcados at $65.28 Nigerian borders, complete ties of N2.582 trillion and the ministerial deliverables lion in the same period in The decline in oil revenue per barrel and WTI at $57.25 gas flare commercialization other oil earnings of N1.109 must cascade down to all 2018. relative to the quarterly bud- per barrel exhibited similar programme, Increase crude trillion. staff as it was the duty of ev- In its analysis of third- get was due, largely, to short- trends as the Bonny Light,” oil production to three mil- This was in comparison to eryone to ensure the success quarter figures, the CBN falls in all the components of the CBN added. lion barrels, Reduce the cost of the mandate. revenue of N312.02 billion, report stated that; “At N2.7 oil revenue, except domestic of oil extraction, Promote

project was in line with its Nigeria lost corporate vision of ”helping Nigeria LNG, partners sign to build a better Nigeria”. N4bn as The construction after Train 7 gas supply agreements FID will last approximately a result of four to five years. HE NIGERIA signals the commencement value chain, thereby boost- The NLNG is owned by electricity LNG LIMITED of the project expected to ing the much needed For- the Federal Government (NLNG) and its increase the company’s pro- eign Direct Investment (FDI) of Nigeria, represented by workers joint venture duction capacity by 35 per profile of Nigeria. NNPC (49 per cent), Shell partners, includ- cent as well as improve com- The Project is anticipat- Gas B.V. (25.6 per cent), To- strike ingT the Nigerian National petitiveness in the global ed to create over 10,000 new tal Gaz Electricite Holdings Petroleum Corporation LNG market upon comple- jobs during its construction France (15 per cent), and Eni HE INDUSTRIAL (NNPC), on Friday moved tion. phase, and on completion; International N.A. N. V. S.àr. l ACTION UN- a step closer to constructing Eyono Fatayi-Williams, help to further mop up (10.4 per cent). DERTAKEN by Train 7 of the multi-billion the general manager, exter- more gas that would have The actualisation of the members of the across major power genera- gas project. nal relations of the NLNG, been flared, and diver- Train 7 project comes as National Union tion stations, transmission The company signed the said the milestone is coming sify the revenue portfolio NLNG is celebrating 30 years ofT Electricity Employees stations and the distribution first basic 20-year term Gas after the issuance of a Letter of the Federal Government, of its incorporation and 20 (NUEE) on Wednesday may stations. Supply Agreements (GSAs) of Intent for the Engineering, thereby increasing its tax years since exporting its first have cost the country over Experts in the power with joint ventures (JVs) for Procurement and Construc- base. LNG cargo in 1999. N4 billion with nationwide sector said the losses were the supply of feedstock-gas tion (EPC) Contract to SCD The company said the outages. unquantifiable but could to Train 7. JV Consortium in September NUEE called off the strike be over N4bn just for the The second basic 10-year 2019. yesterday after meeting with electricity industry alone. term GSAs for its Trains 1, SCD JV Consortium is the Federal Government. As at Tuesday before the 2 and 3 were also signed, made up of Saipem of Italy, At least N1.9bn is lost on strike action commenced, fulfilling another important Japan’s Chiyoda and Dae- a normal daily basis when the peak power generation condition necessary to clear woo of South Korea. power generation is at an was 4,047.2MW but dropped the way for the Final Invest- In March, the company average 3,850 megawatts to abysmally lower figures ment Decision (FID) for the also signed the Nigeria Con- (MW), according to the re- on Wednesday due to non- project. tent (NC) plan with Nigerian cord of daily Energy Report operation of the plants. The JVs include Shell Content Development Moni- by the Advisory Power Team, NUEE said it protested Petroleum Development toring Board (NCDMB). Office of the Vice President the non-payment of salaries, Company of Nigeria Limited The Train 7 Project will for September 2019 indi- pensions and other entitle- (SPDC), Total Exploration & ramp up NLNG’s produc- cates. ments across the privatised Production Nigeria (TEPNG) tion capacity from 22 mil- However, in the case of power firms. and Nigerian Agip Oil Com- lion metric tonnes per an- Wednesday’s strike, the na- NUEE had earlier given pany Limited (NAOC), which num (MTPA) to around 30 tional grid was said to have a 21-day notice in a letter are operators of their respec- MTPA. fallen lower than 1,000MW written to the Minister of tive joint ventures with the The Project will form part and at some point to a com- Power, Engr. Sale Mamman NNPC. of the investment of over plete shutdown as the union to intervene in the issue. The GSAs bring NLNG $10 billion, including the locked out electricity workers closer to taking FID, which upstream scope of the LNG BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 COMPANY & BUSINESS 29 business a.m.

onye Cole, the Cole, former Sahara Energy chief, wants co-founder and former group executive direc- regulators to be collaborators with businesses tor of indigenous Tenergy conglomerate, Sa- shift from ‘policing’ to one hara Group, has advised of enabling and fostering. regulators to become col- And speaking with jour- laborators with businesses nalists on the sidelines of rather than become ob- the AGM, Bukola Ifemade, stacles to them chairman of the Lagos Area Cole made the call at the Committee, said that what 16th annual general meet- the executives of the LAC ing (AGM) and 2019 Annual are doing, having been re- Lecture of the Lagos Area turned unopposed, is “to Committee (LAC) of the promote our council as a Nigerian Council of Reg- body and members’ busi- istered Insurance Brokers nesses because it is when (NCRIB) held at Sheraton their businesses are doing Hotel, Ikeja, Lagos. well that we will have a In a keynote address, healthy council. which was centred on the “This year, we did a lot theme: ‘Management of of things, bringing external Regulatory Issues as a Busi- people to facilitate different ness Owner in Nigeria,’ Cole areas, to promote members’ noted that Africans by na- businesses. In the coming ture are traders, as the trade year, we are going to inter- mind-set is evident across nalise it more, where all the the continent of Africa. things we have done this While informing insur- year will be built on. Take ance brokers at the AGM for instance, this year, we had training on preparing that the informal economy L-R: Prince Feyisayo Soyewo, past president, Nigerian Council of Registered Insurance Brokers (NCRIB); Bukola Ifemade, forms the heartbeat of the budgets for our different chairman, Lagos Area Committee (LAC) of NCRIB; and Bola Onigbogi, president, NCRIB, at the annual general meeting companies, but not many African market, he lamented of LAC in Lagos recently that it remained largely have been able to do that. unregulated, under-docu- So in the coming year, for of those employed in the informal sector is such an the continent?” regulators to be partners example, it is now to engage mented, understated and informal sector are women, inbred and pervasive part of He decried the fact that with businesses and make underestimated. He added members to enable them while 80 per cent of youth African daily life, should we among hurdles faced by themselves easily accessible have budgets for their com- that 66 percent of unem- transitioning from school-to not be thinking smarter and business owners in Nige- to them and help them solve ployment in Sub-Saharan pany and plan effectively for work are in this sector. more innovatively about ria, regulators constitute a their problem as well as help the year, ” she said. Africa is in this sector. While In calling for innovation how to harness its potential part, where they are more facilitate capabilities. He reeling out dire statistics, in tapping into the business and make it a much more of competitors than collabo- also advised that the focus he noted that 74 per cent sector, he queried, “If the potent force for the good of rators. He therefore urged for regulators must begin to

to be featured include; Short Access Films like Black Monday by Adetola Films, Blast by Tosin Julius Berger appoints Ebi, Hensel Bank holds Ibitoye, Last by Olabisi Akin- binu, and Scars by Miriam Dera. The festival will be con- as non-executive directors second cluded with a music concert Kenneth Afor Hensel, until his appoint- ment, has served as chief ex- featuring Africa’s biggest mu- ULIUS BERGER NI- edition of sic talents. ecutive officer of Julius Berger GERIA PLC. has ap- International GmbH in 2018 “The music concert will pointed Ernest C. Ebi art festival feature an impressive lineup and has handled various and Karsten Hensel projects on-site in Nigeria, HE STAGE IS ALL of the biggest talents in the into its board as non- SET FOR THE re- African creative industry. Af- Berlin, China and Qatar. executiveJ directors with effect Julius Berger Nigeria turn of Africa’s art rica’s finest music artists such from December 7, 2019. Plc. is the country’s largest and culture festi- as Burna Boy, Tiwa Savage, Both were appointed to val, ‘Born in Africa’ Niniola, Patoranking, MI, 9ice, construction giant and has replace Nwoke Anugwu who been providing world-class Ebi (BAFEST),T a one-day event Ice Prince, Naira Marley, Sheyi was the independent director Hensel construction solutions in created to showcase Africa’s Shay and Fireboy as well as and Heinz Stockhausen. talent and creativity in music, other phenomenal acts will be the country’s infrastructure and Hensel into the board, jective in carrying out qual- Ebi, with 40 years in bank- sector for more than five with their wealth of experi- ity, reliable, innovative and film, fashion and art. gracing the stage. Not leaving ing experience, has served in The festival, which is the out other facets of the creative decades. ence would help sustain and sustainable projects to its many leadership capacities The appointment of Ebi navigate the company’s ob- clients. brainchild of Access Bank industry, some of Africa’s in the country’s financial Plc, kicked off in Lagos on most prolific models, fashion sector. He is a former deputy Sunday. designers and filmmakers will governor of the country’s reward staff for professionalism, loyalty also be present, exhibiting This year’s BAFEST edition apex financial institution, Nigeria’s construction gi- He said, “They highlight ful without the unwavering their works,” the statement themed “More for Culture” the Central Bank of Nigeria ant, Julius Berger Nigeria Plc the strength of our corporate dedicating of its workers who added. combines all elements of art (CBN). He is also former has honoured 1,015 of its staff culture. They reflect the com- painstakingly ensured that Commenting on the up- (Music, Film, Fashion and chairman of Fidelity Bank for their excellent and show of mitment of our staff and also projects are professionally coming festival, the Group Creative Art) and is aimed at Plc and UNIC Insurance Plc. professionalism in their vari- the reciprocal commitment executed meeting the satisfac- Head, Communications & projecting and celebrating His pedigree in marketing ous capacities for sustaining of the company towards the tion of clients. External Affairs at Access Bank the true unbreakable African has earned him the privilege the company’s integrity in staff. With this outstanding per- Plc, Amaechi Okobi explained spirit, while shining a positive to sit on the boards of several the country’s infrastructure “The ceremony which has formances from the staff that that, “Access Bank is proud light on the richness of the Af- blue-chip companies in the sector. become a tradition of this were honoured Richter said to be projecting the best of rican culture and unparalleled country. The awards were made at great company is indeed a true they make the bedrock of the African creativity through dynamism of her creativity. Karsten Hensel is an as- the company’s annual Long reflection and celebration of company’s achievement. BAFEST. This crowns all our According to a statement, tute civil engineer and an Service Awards event which, the diverse nature of not only “Starting from the com- efforts aimed at changing the the day-long event would architect with special focus according to Zubair Ibrahim our staff but also the vari- pany’s first project in Nigeria, negative narrative associated kick off with the fashion, art on urban planning and struc- Bayi, was aimed at “reward- ous professions which they the men and women of Julius with Nigeria and Africa. and film park, where various tural design. ing workers’ true reflection practice and have excellently Berger’s workforce has been “Our line of events partner- artists, fashion designers and Hensel, a pioneer mem- and celebrating their diverse mastered over the years,” said the fuel to our success. And on ships such as the Access Bank filmmakers will showcase ber who introduced the 3D/ and masterly contributions Richter. the eve of our 50th anniversary Lagos City Marathon, Art X La- their works. CAD, a computer software to the company’s excellent Over the years, Julius Berg- of incorporation in Nigeria, gos, The Africa International “The Nigerian Film indus- programme that enables and brand.” er Nigeria has distinguished which we will celebrate next Film Festival (AFRIFF), and try will also be adequately enhances structural and civil Also, Lars Richter, manag- itself in successfully executing year, we can proudly state the likes all aim to showcase represented, as short films, engineers to conceptualize ing director, attested to the gigantic construction projects that the people that form the continent in good light feature-length films and Ac- and map out how actual fact that the workers who were either awarded by the state, our organisation remain the as well as to project it as a celerate Filmmaker project physical structure on paper honoured have undoubtedly the federal government or foundation from which our hub for entertainment and films will be screened during before embarking on con- displayed the company’s long- corporate entities and that achievements are realised,” creativity.” the festival. Some of the films struction. standing objectives. could not have been success- Richter said. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 30 business a.m. Traveller & Hospitality

Stories by Samson Echenim

OST AIRLINES Nigerian airlines, hotels develop thick AND HOTELS in Lagos, Nige- ria’s commercial skin against promo sales despite yuletide nerve centre are notM doing promo sales despite the yuletide. yuletide, checks by Traveller & The story is the same for hotels. Hospitality have revealed. All the hotels checked by Traveller All the airlines that responded & Hospitality had no committed to our inquiries on yuletide promo promo sales for the Christmas answered in the negative, while ho- period. tels remain unwilling for planned “We are not doing any promo discount rates for a night stay. now, but we do have weekend dis- Arik Air, Air Peace and Dana count and we offer some discount Air responded to Traveller & Hos- to guests who stay for multiple pitality’s inquiries but said there nights,” said a manager at Ibis were no promo fares sales. Arik Royale Hotel on Murtala Mo- said the airline is not into the busi- hammed International Airport ness of doing promo sales, even at Road. Christmas. Hospitality consultant and Other airlines simply said there general supervisor at Banex Ho- were no promos without further tels & Suites, Anthony Village, elaborations. Dana Air however Olalemi Olalekan said, hotel said its miles royalty keeps running occupancies in major cities have for those guests who have them. been found not to have any raise ‘We are not doing any promo with promo sales during yuletide sales for fares, but those with miles in recent time. can use their miles to get benefits,” He said, “Promo sales do not the airline said on Friday night necessarily increase occupancy. “If you have enough miles big We have carried out a research into enough to pay for excess baggage our sales from five years down to or exchange for ticket, you must three years ago when we were not send a mail and request your miles doing promo, compared to the to be used to issue you a ticket, last two years when we had some or the passenger can log into his planned discounted rates during account and do it himself,” Dana Christmas. We found out that there Air’s spokesman, Kingsley Ezenwa was no significant change. There explained. was no significant increase in sales. The airline runs a loyalty pro- So, we have decided that instead of that are not in major cities do tels in those places raise their rates not change anything. Promo will gramme that allows loyal travel- selling at a discounted rate without actually raise their rates around because they have more guests not stop a businessman who plans lers accumulate miles over a fairly commensurate increase in oc- Christmas. There is a reality that during Christmas, while hotels in to spend his Christmas holiday long time of flying the airline, but cupancy, there is no point doing people who live in the cities go the cities, such as Lagos, Port Har- in his village. So, as a consultant, that is not a discounted fix for the promo.” home to their villages and native court and Abuja lose guests. Now, if I believe this could still apply to “Again, we realise that hotels towns to celebrate Christmas. Ho- we run a promo at this time, it will many hotels.”

to commence commercial flights to Arik Air resumes Asaba when the airport was inaugu- ONOMO’s BON Hotels acquisition to services to rated in 2011. “Similarly, Arik Air, in the spirit create mega pan-African hospitality player Asaba, Dec. 18 of the Yuletide season, will be in- ITH THE AN- RIK AIR ON THURS- creasing its frequency from Lagos NOUNCEMENT DAY announced the to Owerri to thrice daily. last Thursday of resumption of flight ser- “The additional flight will oper- the acquisition vices to Asaba Airport in ate at 7:00 a.m. daily in addition to of BON Hotels by Delta. the 1:00 p.m. and 4:30 p.m. depar- ONOMO Hotels, the hospitality Arik Air chief executive officer, tures,” he said. W A industry on the African continent is Capt. Roy Ilegbodu said in a state- Speaking on the latest devel- set for a major shake-up. ONOMO ment in Lagos that starting from opment, Ilegbodu said: “The re- Hotels has acquired a 60, 1 percent December 18, the airline would be sumption of flights to Asaba is a controlling stake in BON Hotels. operating daily flights from Lagos promise kept as we had assured “ONOMO is consolidating the to Asaba. our esteemed customers that we African hospitality market and will Ilegbodu said that the resump- would be back on the route before continue to strengthen its pan- tion of flights to Asaba was coming the Christmas festivities. African presence. The acquisition at a time when people were look- “We once again assure our cus- deal establishes ONOMO as a ing for seamless travel during the tomers of a high operating safety key player in the Nigerian market Yuletide. standard and excellent customer and will reinforce our presence in “Arik Air’s return to Asaba is service during the Yuletide and Southern Africa,” said Julien Rug- nostalgic as the airline was the first beyond.” gieri, ONOMO chairman. “The deal positions ONOMO as the leading pan-African mid-scale British Airways begins scheduled hospitality group with a footprint spanning 15 countries and with flights to San Jose with B747 4,300 rooms and a significant pipe- said the acquisition will have a need for new jobs and skills de- RITISH AIRWAYS IS such, aviation enthusiasts in San line of 3,000 additional rooms. In positive impact on the continent’s velopment. The merger promises SET to operate the first Jose may be able to see BA’s retro addition, the new group now jointly economy. major growth opportunities for the scheduled Boeing 747 liveried 747s before they are all employs some 2,200 people. “Becoming part of ONOMO company and for all stakeholders,” service to San Jose next retired by 2024. “We will benefit from BON Ho- Hotels is good news for BON Ho- said Stehlik. summer, according to British Airways will operate the tels’ extensive experience of offer- tels’ existing and future partners, The strategic partnership reflects theB airline’s booking engine. Boeing 747 to San Jose on a daily ba- ing its services as a hotel manage- giving them access to a bigger their on-going confidence in Africa The service will be sure to excite sis for the duration of the IATA sum- ment company. A new chapter client database, a stronger distri- as the go-to region for economic San Jose based aviation enthusi- mer season. This means that the first lies ahead in which ONOMO will bution platform, and increased opportunities and growth potential, asts. Boeing 747 service will operate to expand through ownership, part- purchasing power. Our clients will particularly in tourism. This deal British Airways operates flights the city from the 29th of March 2020 nership and management services. benefit from the unique presence will bring a greater variety of ac- to San Jose in the San Francisco until the 24th of October 2020. With its unique local knowledge, of ONOMO and BON Hotels across commodation options to both busi- Bay area on a daily basis. The flights From the 25th of October, the investors across the continent can Africa and a wider-reaching loyalty ness and leisure travellers, meaning are currently operated by a Boeing route will revert back to the regularly partner with the new hotel group programme. the continent is able to offer more 787. However, British Airways is set scheduled Boeing 787. Along with in a range of African countries,” “Importantly, more than 3 000 and attract further tourism. This to change things up for the IATA the aircraft change, the timing of said ONOMO Hotels CEO, Cedric new work opportunities are likely consolidation is therefore incred- summer season as the 747 has the flight has been adjusted for the Guilleminot. to be created, which is significant ibly positive for Africa’s economy been scheduled on the route. As summer season. Guy Stehlik, BON Hotels CEO, news for a continent with so much and its people. BUSINESS A.M. MONDAY, DECEMBER 16 - SUNDAY, DECEMBER 22, 2019 business a.m. 31 Traveller & Hospitality

Stories by Samson Echenim URKISH AIRLINE, AS Turkish Airline’s unending affront THE NAME of an airline operating into Nige- ria, is one that quickly against Nigerian travellers comes to mind as “the missingT baggage airline”; and it should not surprise anyone. again after another case of series of Passengers happy with air- The airline is known for arriving flights with missing baggage and it line’s ban Nigerian airports without passen- seems like that is just what fits the Passengers have been com- gers’ baggage and the airline does airline for now. In a letter NCAA/ plaining about issues for a few not seem to care. At least, the miss- DG/12/16/60 directed to the air- weeks now. But it’s not only the ing baggage syndrome is still very line’s country manager, December fact that bags are being left behind. much with the airline. 11, 2019, Captain Abdullahi Sidi, Passengers are also upset with how From the talk table to the court, director-general of the authority the airline has been handling com- the appropriate Nigerian authori- lamented the baggage backlog has plaints from those who have been ties, the Nigerian Civil Aviation been on-going for two weeks. frustratingly left without luggage. Authority and the Federal Airports NCAA noted that the incessant One passenger, upon hearing about Authority of Nigeria (FAAN), have baggage delays had caused crisis the ban, said, “Nice one. I experi- engaged the airline, howbeit, with- followed by mob actions as the enced it on Sunday night. Thank out success. airline arrives without 85 percent God I was able to get my bags on On December 25, 2015, the of passengers’ baggage. Monday night,” Eastern European carrier, flew into “The Nigeria Civil Aviation Au- Lagos Murtala Mohammed Inter- thority (NCAA) wishes to extend Why is baggage being left be- national Airport without baggage its compliments to Turkish Airlines hind? of half of its passengers. Many Ni- and also express its serious dis- According to Simpleflying, Turk- gerians who were coming home to the company of violating the en- tion report on the airline’s alleged pleasure about the recent cases of ish Airlines makes a lot of money mark Christmas, unfortunately did abling law of the Consumer Protec- shoddy treatment of passengers of not bringing passengers’baggage by charging excess and oversize so at the airport, while still waiting tion Council (CPC). Flight 623 from Istanbul to Abuja on into Nigeria together with their baggage fees. Recently, it hasn’t for their luggage. The Nigerian government December 25 and 31, 2015 as well checked-in baggage. been restricting the number of bags About two weeks later, on Janu- claimed that the three accused as January 9, 2016, which prompted “These incidents, which has passengers are allowed to check-in. ary 9, 2016, the airline committed persons between December 20, the council to approach the Justice been going on for two weeks, has This means that its aircraft’s cargo a similar blunder, this time on a 2015 and March 2016, “without Minister for the prosecution of the become so bad that the most recent hold cannot hold all the bags. higher degree, when it flew into sufficient cause, refused to provide airline. flight arrived without 85 percent of Even if the airline is aware that the Nnamdi Azikiwe International the Consumer Protection Council However, the airline has contin- passengers’ baggage onboard. Our the hold is full, it does not restrict Airport (NAIA), Abuja from its documents on Turkish Airlines’ ued suffering the “missing baggage airport authority has been facing anyone from booking extra bags. Istanbul headquarters at about policy on delayed baggage,” thereby syndrome” mostly on its flights to serious crises controlling the pas- Even if the plane is at maximum 12.35am without its passengers’ committing an offence punishable Nigeria, with some cases going sengers at the airport whenever capacity and bags have to be left luggage, and thereby violating the under Section 18 of the CPC Act. unreported. On one recent flight they arrive without their baggage. behind, the airline will continue to rights of its passengers, who were The Federal Government also to Nigeria, the airline left a whop- This issue has made passengers to take money for luggage it knows it largely Nigerians. accused the airline and its two ping 85 percent of passenger bags carry out several mob actions at our cannot transport. This led the Federal Govern- principal officers of violating the in Istanbul. airport and it is a great threat to our ment of Nigeria to drag the airlines same section of the CPC Act by ne- And as it appears, the Nigerian airport facilities Turkish Airlines declines com- before a Federal High Court in glecting, without sufficient cause, government has just about seen ‘In view of all these, and the se- ment Abuja, where it alleged criminal to attend and testify before the enough of the airline’s affront ries of meetings held with Turkish The airline, in its characteristic violation of the rights of some Ni- consumer protection agency on the against citizens of the country who Airlines personnel, which did not manner, would not comment on gerian passengers on its Flight 623 detailed steps taken by the airline have been suffering the carrier’s yield any solution to the problem, the matter. So far, Turkish Airlines from Istanbul to Abuja. to provide redress and compensa- seeming deliberately orchestrated the NCAA is therefore left with has not issued an official statement Attorney General of the federa- tion to passengers aboard its Flight carelessness to cause pain and no option than to direct Turkish or responded to the Nigerian gov- tion and minister of Justice, Abuba- 623 from Istanbul to Abuja on the anguish to Nigerians. Airline to suspend its operations ernment’s statement. Nor have they kar Malami filed a three-count said dates, who were affected by its into Nigeria until such a time when responded to media request for charge against the airline as well untimely delivery of baggage. Turkish Airline suspended the airline is ready to operate with comment. It is unclear what course as chairman of its board, Liker Ayci, The prosecution came on the from Nigeria the right size of aircraft that can of action the airline will now take and commercial manager, Rasak heels of persistent refusal of Turk- Therefore, it came with no shock transport all passengers with their before the ban comes into effect on Shobowale. ish Airlines to respond to lawful that the NCAA moved to ban the baggage at the same.” Monday (Today). The government also accused requests of CPC for a full situa- airline from coming to Nigeria

HEAD ARRIVAL OF ITS newly acquired cargo SAHCO renews Nigerian, among African airlines facing handling equipment, Skyway Aviation Han- contract with another $200m losses in 2020 dling Company Public Arik, await IRLINES IN NIGERIA gion has been relatively good and million tonnes carried in 2019, LiabilityA Company (SAHCO) has delivery of new AND OTHER African is expected to rise in 2020, but which was the lowest figure in three renewed its ground handling con- countries are projected markets are extremely fragmented years. tract with Arik Air. cargo handling to lose a whopping $200 and inefficiently served in the ab- Stronger economic growth The new ground handling equip- equipment million in 2020, accord- sence, so far, of a Single African Air should support passenger traffic ment, the company said, would en- ingA to the International Air Trans- Transport Market. As a result, they (RPKs) growth of 4.1 per cent simi- able it deliver quality and improved company over the years. port Association (IATA) forecast for are projected to show a loss of $200 lar to 2019 (4.2 per cent) but below services Arik Air and other clients “We are happy that the new the year 2020, which was released million, similar to 2019,” the report historical trends. across the nation’s airports. management has established the on Thursday. read in part. Findings show that the economic Commenting on the renewed airline on the right path. Arik Air The gloomy outlook, for the On the global industry, the return performance in 2019 was weaker SAHCO, Arik pact, Basil Agboarumi, is a good company to do business second year on the bounce, is not on invested capital is forecast to be than had been anticipated at the managing director, said the contin- with. We are very proud to associ- unconnected with the state of the 6.0 per cent; an improvement from time of the June forecast. This aligns ued contract points to a clear con- ate with the airline. Wherever Arik aviation industry and the economy 5.7 per cent expected in 2019. with weaker global GDP growth of fidence the airline has on the cargo Air is mentioned, we will stand up in leading countries like Nigeria and The net profit margin is forecast 2.5 per cent (versus 2.7 per cent fore- handling company. for you. We have new equipment South Africa. at 3.4 per cent; up from 3.1 per cent cast in June) and world trade growth He noted that since the com- coming in. Some of them are on However, the global airline in- for 2019. of just 0.9 per cent (down from 2.5 pany was acquired by Sifax Group the high seas, while others are with dustry will produce a net profit of Overall industry revenues are per cent forecast in June). of Companies nine years ago, the us here already in the country. $29.3 billion in 2020, an improve- forecast to reach $872 billion; a These negative developments board had strived to improve the “We have warehouses in Port ment over a net profit of $25.9 bil- plus 4.0 per cent on $838 billion contributed to softer passenger and quality of services to its clients, Harcourt, Kano, Lagos and Abuja lion expected in 2019. If achieved, in 2019. cargo demand and corresponding stressing it would continue to grow and we are ready to build ware- 2020 will mark the industry’s 11th Industry operating expenses weaker revenue growth, as pas- its services especially as the com- houses wherever they are needed. consecutive year in the black. are projected to climb 3.5 per cent senger yields fell 3.0 per cent and pany is listed on the Nigerian Stock You have to understand that we IATA, the clearing house for to $823 billion from $796 billion cargo yields dropped 5.0 per cent Exchange (NSE). are business people. If there is over 280 major airlines worldwide, in 2019. compared to 2018. He said: “Today is unique for need for business expansion to observed that African carriers con- Passenger numbers are expected Operating expenses did not rise SAHCO. The Initial Public Offering any airport in the country, we will tinued to suffer structural problems to reach 4.72 billion; up 4.0 per cent as much as anticipated (3.8 per cent (IPO) for SAHCO began on Monday not hesitate to do that. Not just of high costs – in large part owing to from 4.54 billion in 2019. vs. 7.4 per cent June forecast) largely and we are signing this contract in Enugu, but across Nigeria. As government taxes and fees – and low Freight tonnes carried are ex- owing to lower-than-expected fuel with Arik Air. Arik Air has been with long as business is expanding to load factors. pected to recover to 62.4 million, costs; but this was not enough to SAHCO for several years and we those sides, you will see SAHCO “Economic growth in the re- a 2.0 per cent increase over 61.2 offset the softness in revenue. have witnessed the growth of the there.” Monday, December 16 - Sunday, December 22, 2019 business Follow us

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AGS CONTRIBUTORS Bongo Adi, PhD Benonia Aryee, PhD Ndidi Nnoli, PhD Kenneth Amaeshi, PhD Africap talism Nicholas Allo, PhD Innocent Okwuosa, PhD Judy Muthuri, PhD Emmanuel Adegbite, PhD Governance & George Ferns, PhD Uwafiokun Idemudia, PhD Amon Chizema, PhD Susta nability

AGS: The Column by African Global Experts on Africapitalism, Governance, Sustainability, Policy, Finance and Economics

JEFFREY D. SACHS Sachs, Professor of Sustainable Development and Professor of Health Policy and Manage- ment at Columbia University, is Direc- tor of Columbia’s Europe’s Green Rebirth Center for Sustain- able Development EW YORK – Europe has done small increase in metro fares. Both Macron ist, commercially or pre-commercially, and the UN Sustain- it. The European Green Deal and Piñera are exemplary environmental- to create a zero-carbon, resource-saving, able Development announced by the European ists. Both have committed their countries to environmentally sustainable advanced Solutions Net- Commission is the first com- climate neutrality by 2050. Both are urgently economy. By combining renewable energy, work. prehensive plan to achieve searching for a path of public consultations, digital technologies, advanced materials, Nsustainable development in any major but after the fact. and a sharing economy in transport and world region. As such, it becomes a global American neoliberals will scoff, too, argu- other infrastructure, we can decarbonize the benchmark – a “how-to” guide for planning ing that the “market” will sort out climate energy system, move to a circular economy, the transformation to a prosperous, socially change. Yet look at the United States today. and dramatically reduce the flow of primary inclusive, and environmentally sustainable If neoliberalism does for the planet what it’s resources. economy. done for America’s infrastructure, we’re all Yet three big challenges must be ad- To be sure, the tasks confronting the Eu- in big trouble. Arriving at a US airport means dressed. The first is to overcome status quo country is extremely vulnerable to climate ropean Union are daunting. Even reading facing elevators, escalators, and people mov- interests. Big Oil will have to absorb the change and at risk of becoming diplomati- the new document is daunting: a seeming ers that don’t work, taxis that don’t arrive, losses, but workers and coal regions should cally isolated if it fails to decarbonize. On the welter of plans, consultations, frameworks, rail links that don’t exist, and highways with be compensated, with income support, re- other hand, they are confronting the dangers laws, budgets, and diplomacy, and many broken lanes and overpasses. training, and other public services. Europe’s of America’s misguided cold war. Govern- interconnected themes, ranging from energy The reason for this dysfunction is obvious: plans rightly call for a “just transition.” ment hardliners and China’s coal lobby are to transport to food to industry. corruption. Each US election cycle now costs The second challenge is financing. Eu- resisting decarbonization in the midst of US Critics will scoff at the European bureau- $8 billion or more, financed by billionaires, rope, and indeed every region of the world, pressures, especially since Trump himself is cracy. But this is bureaucracy in the finest Big Oil, the military-industrial complex, will have to direct an incremental 1-2% of rejecting decarbonization. Weberian sense: it is rational. The goals of the private health-care lobby, and vested annual output toward the green economy, European diplomacy can make the differ- sustainable development are spelled out interests intent on tax breaks and protect- including new infrastructure, public pro- ence if it refuses to go along with America’s clearly; targets are based on the time-bound ing the status quo. Market-based solutions curement, R&D, industrial retooling, and insidious efforts to contain China, and in- goals; and processes and procedures are are a sham when politics is subordinated other needs. Much of this will be financed by stead offers China a clear and positive part- established in line with the targets. The to lobbying, as it is in the US. The European the private sector, but much must go through nership: working together on sustainable overarching objectives are to reach “climate Green Deal shows government as it should government budgets. Europe will need to Eurasian infrastructure, development, and neutrality” (net-zero greenhouse-gas emis- be, not government subordinated to corpo- face down the ideologues who oppose more technology, in the context of a Chinese Green sions) by 2050; a circular economy that ends rate interests. EU spending. Facts will need to matter. Deal alongside Europe’s. Such a partnership the destructive pollution caused by plastics Europe’s Green Deal is in fact a dem- The last big challenge is diplomatic. would hugely benefit Europe, China, and the and other petrochemicals, pesticides, and onstration of successful European social Europe accounts for around 9.1% of global dozens of Eurasian countries in between, other waste and toxic substances; and a democracy (in an operational rather than a carbon dioxide emissions, compared with and indeed the entire world. “farm-to-fork” food system that neither kills narrow partisan sense). A mixed economy, 30% for China and 14% for the US. Even if Europe has made a historic breakthrough people with an overly processed diet nor combining markets, government regula- Europe fully implements the Green Deal, it with its ambitious, challenging, and feasible kills the land with unsustainable agricultural tion, the public sector, and civil society, will will be for naught if China, the US, and other plan. The Green Deal is a powerful beacon practices. pursue a mixed strategy: public goals, public regions fail to match its efforts. European of hope in a world of confusion and insta- And the European Commission under- investments in infrastructure, private invest- leaders therefore rightly treat diplomacy as bility. stands that this must be a citizen-based ments in industrial transformation, public- crucial to the Green Deal’s success. approach. Again, the critics will regard the private research and development missions, Consider China. After decades of rapid talk of public consultations as naive fluff. and an informed population. In fact, it is growth that has eliminated mass poverty, But tell that to French President Emmanuel industrial policy at its most sophisticated. (I China has become the world’s leading emit- Macron, who has faced street riots for more recently outlined such a social-democratic ter of CO2 (though only half of America’s than a year; or Chilean President Sebastián Green New Deal strategy for the US.) emissions per person). China by itself will Piñera, whose country suddenly erupted There are reasons for optimism. Most determine the world’s climate future. On in riots this fall after the introduction of a important, the advanced technologies ex- one hand, Chinese leaders know that their Copyright: Project Syndicate, 2019. www.project-syndicate.org

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