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BEN EGUZOZIE, Nigeria’s Financial & Business Newspaper IN PORT HARCOURT Experts, analysts weigh in Monday, June 7 - Sunday, June 13, 2021 www.businessamlive.com A X E X P E R T S, ANALYSTS AND on Nigeria’s plan to chase LEGAL practitio- ners are now seri- taxpayers to bank accounts ously weighing in onT the planned deduction of taxes from potential pay- Pro-tax reformers say model from US ers’ bank accounts by the capitalist-oriented tax system Nigerian government through its Federal Inland Revenue Challenge is lack of tech to drive it through Service (FIRS), with varied responses to this newspaper’s Over 40m Nigerians unbanked business series of inquiries across the Country’s low fintech a major setback country. The system is one of the FG targeting to clear N4trn budget deficit portions of the Tax Reforms audit and financial advisory firm, in open and operate a business bank Act 2020, signed into law by a January 2020 note: The new law account. President Muhammadu Bu- contains over 90 changes to 7 differ- But some tax experts and re- hari last December which took ent tax laws including: an increase in formers have called the planned effect January 2021. the rate of VAT from 5% to 7.5%; 0% move disingenuous, describing the According to Pricewater- CIT rate for small businesses; and a impending tax recouping model, houseCoopers (PwC), the tax, lower rate of 20% for medium-sized a.m.TOWARDS MORE EFFICIENT MARKETS companies; requirement of TIN to Page 2 CBN sees light as Nigeria gradually unifies FX rates Summary Apex bank embraces market fundamentals Africa needs $16bn for oil refining AFRICA’S OIL SECTOR DOWNSTREAM organisation, the African Refiners and Dis- FSDH analysts say move could build investor tributors Association (ARDA), says Nigeria confidence, improve capital inflows and other African countries would require $15.7 billion to upgrade the 42 oil refineries in the continent in the years ahead... As economy navigates through tides of uncertainties CHARLES ABUEDE the FMDQ independently and objectively de- which could, in turn, improve forex inflows Page 3 termined NAFEX rate, has received endorse- into the economy. FINANCE & INVESTMENT HE RECENT ACTION BY THE ments by high ranking members of Business Nigeria’s exchange rate has remained un- CENTRAL BANK OF NIGERIA A.M.’s universe of analysts’ communities who der pressure despite a consecutive two-quar- Nigeria’s reserves still pressured (CBN) to shift towards a more described the move as a positive one for Nige- ters’ gross domestic product (GDP) expansion DESPITE A 36 PER CENT INCREASE in comprehensive, unified and mar- ria’s economy. In particular, they said the apex in Q4 2020 and Q1 2021. But a slowdown in crude oil price from January to May 2021, ket-driven foreign exchange rates bank has taken a bold step towards ensuring output growth in the Q1 2021 data is seen as regime by adjusting its official rate to reflect clarity and improving market confidence Nigeria’s external reserves have remained T Page 2 around the $34 billion band, below pre-CO- VID-19 levels. For the Nigerian govern... Page 10 ENERGY, POWER & REVEWABLE NNPC equity chase mimics Aramco The new position taken by the Ni- gerian National Petroleum Cor- poration (NNPC) to acquire stakes in privately owned inde- pendent re ner- ies in the country appears to position to state-owned oil company to... Page 22 INSURANCE & PENSION Insurers, drivers & motor insurance WHILE MANY ROAD DRIVERS are quite confident about their driving skill, there is al- ways a need to have a plan in place to take care of unforeseen eventualities... Page 14 TRANSPORT BUSINESS New K5: Sport, safety, luxury The K5 luxury sedan since its launch in Ni- geria has continued to wow and creates head- turning experiences to people across L-R: Dan Okeke, executive director, Heirs Holdings and chairman, Heirs Life Assurance; Niyi Onifade, managing director/CEO, Heirs Life As- the country. Its wide acceptance and awe... surance Limited; Tony Elumelu, chairman, Heirs Holdings and Heirs Insurance Limited; Babajide Sanwo-Olu, governor, Lagos State; Sunday Page 29 Thomas, commissioner for insurance/chief executive officer, National Insurance Commission (NAICOM), and Adaobi Nwakuche, Ag. managing director/CEO, Heirs Insurance Limited, during the official launch of Heirs Insurance Limited and Heirs Life Assurance Limited and the commis- COMMODITIES & AGRICULTURE sioning of Heirs Towers in Victoria Island, Lagos recently. Goldmine in timber reformation VISIONARY VOICES EXECUTIVE KNOWLEDGE SERIES Global forestry and logging market, ac- cording to re- ports by the Food and Agricul- Investing in Data Saves Lives Breaking Bad: Humanitarians Who Went Corporate ture Organ- isation (FAO), reached a val- ue NEW YORK – When the COVID-19 HOW THREE PROFESSIONALS who started of nearly $535.96 billion in 2020... pandemic began in March 2020, Af- in purpose-driven organisations continued to do Page 24 ghanistan had only 300 ventilators and good after migrating to “the other side”. two intensive-care units. Early epide- When we began to write this, we thought it For subscription call: miological models predicted that the might be a mirror reflection of an article we wrote about for-profit executives moving into purpose- 07039371360 country, with a population of about 38 million, would experience a peak of up driven roles. We had the somewhat naïve... to 520,000 cases and 3,900 deaths.. ... N250 Page 10 Page 15 No 174 News: 2 & 5 Comment: 6 Finance & Investment: 11 Technology: 30 Commodities & Agriculture: 24 BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 2 NEWS CBN sees light... Page 1 indicative and reflection of a fragile economic recovery for Nigeria as the non-oil sector grew marginally to 0.8 per cent from 1.7 per cent in the last quarter of 2020 while Nigeria’s trade sector, which is key to her economy, continued its contraction as a result of shortages of foreign exchange and weak aggregate demand. The move towards a single ex- change-rate system for the local currency is becoming a reality as the apex bank has before now, de- valued the the domestic currency, the naira, by 7.6 per cent against the dollar; and by further replacing the fixed rate of N379 to the dollar for official transactions with N410 as contained on its website after the currency defied all interventions to retain its value. Godwin Emefiele, governor of the CBN, had said that the drop in crude oil earnings and the decline in foreign portfolio in- flows (FPIs) had a significant impact on the supply of foreign exchange in Nigeria. Goodluck Ebele Jonathan, former president, and Sijibomi Ogundele, managing director, Sujimoto Construction Limited, at the official opening and launch With the foreign exchange situa- event of Lagos Marriott Hotel, Ikeja, Lagos recently. tion in the currency market and the level of illiquidity in the FX segment, fiscal, monetary and industrial poli- SMIS operators to N380 per dollar; tions. If sustained, perhaps, this a setback for real sector investment analysts have projected the naira to cies to improve liquidity in the forex and the inclusion of maize in the signals a breakaway from the heavy in Nigeria; (d) movement in external trade at N460 to a dollar in 2021 in market. list of imported goods banned from interventionist role of the apex bank. reserves and also in interest rates on a worst-case scenario and to trade Comparatively, over a 10-year official forex access in Nigeria. This could improve reserves posi- government securities, which will at N430 per dollar in a moderate period, the local currency has sig- Furthermore, the second half of tion and boost market confidence. now be dependent on forex liquidity case, as the economy recovers and nificantly been devalued relative to the year 2020 saw another adjust- To get inflows into the window to and capital restriction policies and embraces the new normal on the some comparable countries as the ment of the rate to N379 from N360 pre-pandemic level, a fresh injec- (e) the performance of the real sec- back of covid-19, oil price move- official rate depreciated by almost per dollar as the apex bank resumed tion of a huge amount of forex, tor following the gradual economic ment and a possible disruption in 163 per cent to N412 to the dollar forex sales to BDCs in August after particularly from private sources recovery and the opening of the land the local economy. as of May 2021, from N156.7 in 2011. the initial halt due to COVID-19; would be needed.” border which is expected to trigger But since the first quarter of 2020, This, according to experts familiar the final two months in 2020 then Factors shaping exchange rate improved non-oil export; albeit the naira has depreciated across the with the matter, is unimpressive came with an amendment by the movement in 2021 below pre-pandemic levels. different foreign exchange (forex) when compared with performances apex bank to the rules for diaspora With experts predicting that On top of these is the expecta- markets while the existing gap be- of large economies such as Indone- remittances which was to allow for the naira will settle around N430 to tion that Nigeria’s trade deficit will tween the apex bank rate and rates sia (58.3%), Malaysia (30.6%), Egypt recipients to receive foreign cur- the dollar in the latter part of 2021, narrow in the coming quarters with in the Importers’ & Exporters’ (I&E) (158.8%) and South Africa (72.8%), rency in cash while it instructed more inflows of forex are anticipated reduced pressure on the exchange window and parallel market has during the same period. banks to transfer all diaspora remit- to also improve, especially when rate. expanded due to forex shortage. In recent times, the largest econ- tances to beneficiaries. However, Nigeria issues its Eurobond; but As economic experts have put Recall that in 2020, the apex omy in sub-Saharan Africa by gross after introducing the Naira-4-Dollar increasing demand pressures from it, Nigeria can also unlock funding bank adjusted the official exchange domestic product has grappled with scheme to encourage diaspora re- imports and other payments is ex- from several multilateral organisa- rate twice following a wide spread a high frequency of policy shifts mittances in March 2021, the CBN pected to continue exerting pressure tions such as the IMF and World between the official rate and the in foreign exchange management further adopted the NAFEX rate as on the rate. Bank in order to ease the pressure rate in the I&E window. Meanwhile, between January 2020 and May the official exchange rate. However, Meanwhile, it is projected that in on the exchange rate in the medium having multiple exchange rates has 2021. Thus, the time-span has seen between January and April of 2021, 2021, the movement in the exchange term. However, exchange rate unifi- been a key factor that has limited the inclusion of fertilizer in the list inflows from the CBN intervention rate will be shaped by several factors cation is not seen as a sufficient fac- the inflow of foreign exchange into of items restricted from foreign in the I&E window totalled $226.6 such as (a) Persistent OPEC cuts and tor in attracting significant capital the Nigerian economy. Although exchange (January 2020), followed billion, indicating a significant drop compliance among member coun- into the country. What should follow the inflows into the I&E window are by another move to restrict forex of $2.27 billion from the last four tries, which could mean that Nigeria the CBN’s recent actions are a set of yet to return to the pre-COVID-19 supply to authorised milk and dairy months of 2020. may not reap the benefits of higher consistent forex policies that seek levels, they stood at $564 billion in product dealers (February 2020); According to FSDH analysts, crude oil price, implying lower pet- to improve market liquidity and April 2021. This is despite CBN’s the apex bank then went ahead to “In the first quarter of 2021, there rodollar inflows in the short term; prevent every form of forex arbitrage efforts, such as the diaspora remit- devalue the official rate to N360 was a change in the scale of CBN’s (b) that forex management will and unnecessary forex subsidies. tance incentive, to improve liquidity per dollar from N307 in March. The intervention in the I&E window. be crucial in regaining investors’ The CBN will also need to work across the forex markets. However, period between April and July last We observe the limited inflow from confidence in the economy and assiduously to clear forex backlogs economic analysts at FSDH Capital year saw an adjustment of the of- the CBN in the I&E window. The in turn, attract the much-needed to further instill confidence in the Research have opined that what the ficial rate for import duty payment decline in overall inflow into the inflow of foreign exchange; (c) the market. In February 2021, the IMF CBN needs to do is the alignment from N326 to N361 per dollar; an market was largely driven by over a ease of doing business reforms and estimated backlogs at $2 billion. of forex management policies with increase of forex bidding price for 90 per cent drop in CBN interven- the situation which could serve as Experts, analysts weigh... ter in which the court lampooned chord with Section XII of the Finance The only exception is if I want to go does FIRS have tech to drive it this arm-twisting tactic by the FIRS. Act which deals with Personal In- to the Federal High Court or per- through? Page 1 Funny enough, there are easier and come Tax Act (PITA); the Act states: haps TAT [tax tribunal] for strategic “While it’s easy to roll out policies if implemented, as “tantamount better recovery processes recognised “Where a non-resident individual, purposes.” of this sort, the question begging to stealing,” and that government by the law such as distrain. Why not executor or trustee carries on a trade for an answer is: does FIRS have should follow the laid-down pro- adopt that?” or business involving the provision of Act empowers FIRS to ensure the technology to go through with cess for paying tax and penalty for Another yet said: “Deduction of technical, management, consultancy total compliance it? What about the over 40 million default; and also, that “government tax from payers’ bank account is like or professional services to a person George Iwuagwu, an economist, unbanked Nigerians? It’s relatively cannot deduct tax from payers’ bank dipping your hand into the pockets resident in Nigeria, the profits/gains independent wealth advisor and easy to tax e-commerce platforms, accounts.” of your debtors to take the money accruing from such trade or busi- blogger explained to Business A.M. but if the drive to increase revenue, However, some pro-tax reform- they are owing you or forcefully go- ness shall be deemed to be derived in Port Harcourt, Rivers State, some increase tax net and close the budget ers among our respondents say the ing to the house of your debtors to from, and taxable in Nigeria, to the reasons why the Federal Govern- deficit gap of over N4 trillion…then system draws strength from the US take your money. See (US) State of extent that the individual, executor ment intends to go after the tax- more needs to be done.” capitalist-oriented tax model which Nevada vs Oriental James Simpson or trustee has significant economic payer’s bank account deduction empowers the Internal Revenue and others. The courts see it as theft, presence (“SEP”) in Nigeria. The model. “The Tax Reform Act 2020 Court injunctions to access cus- Service (IRS) to deploy tax-recouping stealing, armed robbery, trespassing, Minister of Finance may determine empowers FIRS to strategically en- tomer’s details methods, including following the arm-twisting and abuse of privilege. what constitutes significant eco- sure total compliance to the citizens Definitely, banks can’t give fi- money trail, where the customer’s It is also un-progressive for any bank nomic presence of an individual, duty of paying taxes. Now, like their nancial details of customers except banker is expected to play a role by to allow a third-party to take money executor or trustee, by issuing a SEP counterparts in the US, they (FIRS) authorities get court injunctions, or divulging its customers bank account that does not belong to it from a cus- Order specifying same. Where a non- can deploy methods like following can establish that the individual or information to the IRS authorities. tomer’s account without court judge- resident recipient of an income does money trail; that’s where your banks organisation is being investigated for Anti-reformers who are against ment”. “This Act is barbaric, and will not fall within the scope of the SEP play a role…well because the banks flaunting tax requirements, which is this model, were vociferous in their deter foreign investors from investing provisions, the WHT applicable to in Nigeria, like abroad, are strictly a very serious crime. comments: “I don’t know why the Ni- in the country, because it means they the received income under the PITA regulated…they must follow guide- How far the Federal Government gerian Federal Government usually are not protected,” another analyst shall be the final tax payable.” lines set by the CBN or SEC as the through the FIRS can go with driv- resorts to unlawful ‘violence’ in every told business a.m. One analyst’s opposition was case may be. ing through the tax deduction from matter, including taxation. There Perhaps, this comment strikes thus: “I won’t even bother myself customers’ bank accounts would be are judicial decisions on this mat- with the FIRS. I will go after the bank. Easier to roll out policies: But the true test of the Act. ???

BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 NEWS 3 Ben Eguzozie, in Port Harcourt Nigeria, other African nations need $15.7bn AFRICA’S OIL SEC- TOR DOWNSTREAM NEWS organisation, the Af- to upgrade oil refining capacities rican Refiners and Distributors Associa- tion (ARDA), says Nigeria and other Continent has 42 refineries, nameplate refining capacity of 3,217,600 bpd African countries would require $15.7 billion to upgrade the 42 oil West & Central Africa plus Nigeria, with 12 refineries require $6.28bn refineries in the continent in the years ahead. North Africa, with 17 refineries need $5.95bn for upgrade There are a total of 42 refineries in Africa, with a total nameplate capacity of 3,217,600 barrels per day (bpd). Anibor Kragha, ARDA’s execu- tive secretary, who was quoted at a workshop, said, West and Central Africa (Nigeria inclusive) with 12 refineries would need $6.28 billion capital expenditure for refineries’ upgrade; while $5.95bn would be required to upgrade 17 refineries in North Africa. The association’s executive sec- retary added that East and South- ern Africa with seven refineries would need $3.42 billion to imple- ment a similar refining capacity upgrade. According to the ARDA scribe, the funds are particularly needed for the engineering, procurement and construction (EPC) processes for the improvement of the facili- ties. “Cleaner, harmonised, pan- L-R: Samuel Oluronmbi, secretary, Ginners Association; Elenwor Ihua of development finance department, Central Bank of Nigeria; Mansur Ahmed, presi- African fuels specifications are re- dent, Manufacturers Association of Nigeria; Edward Adamu, deputy governor, corporate services, Central Bank of Nigeria; Adenike Ogunlesi, founder, Ruff quired; and there has been uneven & Tumble; Chika Nwanja, representative of the director, DFiD; Anthony Ifeachukwu, special adviser to the governor on developments finance, and Anibe progress in tightening fuel speci- Achimugu, president, NACOTAN, at the stakeholders engagement on the resuscitation of the cotton, textile and garment sector in Abuja, recently fications across the continent,” Kragha said. Some oil industry watchers The country’s total nameplate Unmaintained refineries lead to implemented standards,” said Flor- So orderly, sustainable transition to maintain that the higher amount of capacity of 445,000 bpd is clearly dirty fuel thereby increasing pol- ence Kayemba, SDN’s programme cleaner fuels remained imperative funds required by West and Central dwarfed by Egypt’s 814,000 bpd, by lution. manager. to address potential public health Africa countries, though with fewer far the continent’s biggest refining According to a 2020 report pub- ARDA was founded in 2006, issues. Targeted financing is need- refineries (12) compared to North capacity; Algeria’s 657,000 bpd, and lished by Stakeholder Democracy comprising African oil refiners, ed for projects to upgrade refineries Africa with 17 refining plants, is South Africa’s 520,000 bpd. Network (SDN), an international importers, terminal operators, and infrastructure to produce and indicative of the region’s poor Nigeria only leads war-ravaged resource watchdog group, it was major marketers, distributors and transport cleaner fuels,” the ARDA maintenance culture of its refining Libya with 380,000 bpd refining; found that on average, the fuel sold regulators executive secretary said. plants. Angola, with 80,000 bpd, Gabon, in Nigeria exceeded EU pollution Kragha said the African Union SDN’s Kayemba said in the Only a month back, Nigeria, a with 24,000 bpd, and Congo, with limits by as much as 204 times, and and ARDA are collaborating on report that Nigeria’s situation is so key oil producer in the West, Cen- 21,000 bpd. by 43 times the level for gasoline. adoption of AFRI fuels roadmap bad that the average diesel sampled tral African region, announced $1.5 Targeted financing is needed “Our research suggests that Ni- with new process units required to were of even lower quality than billion for the rehabilitation of only for upgrade of refineries, as well geria is having dirty fuel dumped improve key fuel specifications. that produced by artisanal refining one of its four refineries, the first in as necessary infrastructure to pro- on it that cannot be sold to other “Major urban population growth camps in the creeks of the Niger 20 years. duce and transport cleaner fuels. countries with higher and better would result in increased pollution. Delta. Persianas Group outlines growth strategy Dikachi Franklin, in Owerri Imo state- GODDY ESOM owned Adapalm after 100% Shoprite’s acquisition OBODO, general NEWS Charles Abuede thrilled to complete the acquisition total interest in RSNL which it said manager, Adapalm revitalisation of Shoprite, ensuring the continued is part of its strategic review process Nigeria Limited, FOLLOWING operations of one of the biggest to evaluate its capital allocation to owned and managed suffers setback THE INITIAL OPER- by Imo State government repre- NEWS retail success stories in Nigeria. We its non-Republic of South Africa on lack of funds ATIONAL and volun- look forward to building an even operations. sentatives and located at Ohaji/ tary trade announce- stronger company following our ac- The deal, as completed by Ket- Egbema local government area, funding as a major and topmost ment on August the quisition and are excited about the ron Investment, was advised on by has disclosed that the state gov- challenge already bedevilling the 3rd, 2020 by Shoprite Holdings greater impact we will achieve to the KPMG Advisory, as the lead profes- ernment was yet to inject funds to success of the industry, Obodo also where it advised its shareholders benefit of our customers and other sional advisory firm, alongside MBO reinvegorate the oil palm milling harped on the need for the firm to about the potential disposal of its Ni- stakeholders now and well into Capital Management Limited and industry in the state. establish a new mill that has the gerian operations, the company has the future. It is our vision to create Banwo & Ighodalo. Obodo, a former member of required production capacity of officially disclosed that the transac- fundamental change for the better Meanwhile, Jide Ogundare, CEO, the Imo State House of Assermbly, 30 tonnes and above per hour. tion has been effected through its within Nigeria, With benefits from MBO Capital stated that the deal who was appointed in May 2020 He said the package for a new wholly-owned subsidiary, Shoprite our knowledge of the ever-evolving signals an opportunity for Ketron to oversee the affairs of Adapalm, mill has already been completed, International Limited, disposing Nigerian retail marketplace, well- to uphold a thriving business, “It said that he has neither received but they were looking forward of its 100 per cent shareholding in grounded social and economic will be hard work, but with the any allocation nor subvention from for the funds to actualize it in the Retail Supermarkets Nigeria Lim- research, and hands-on experience plans we have in place and with the Imo State government to run end. ited (RSNL) to Ketron Investment from our team, we are confident that the support of the larger Shoprite the affairs of the company except The general manager asserted Limited, a wholly-owned subsidiary this acquisition will foster a robust family in Nigeria including our funds for the payment of salaries that for Adapalm, which was of property group, Persianas Invest- and sustainable business model for staff and every Nigerian shopper of the staff. established in 1963 by the late ment Limited. the ultimate benefit of all stakehold- that walks through our doors, we The Adapalm boss told mem- Michael Okpara, the then premier According to the announcement ers,” he said. are confident of success,” he said. bers of Niger Delta Media Forum of the Eastern Region, to come back by the company, the divestment The terms of the transaction Since its launch in Lagos in Decem- (NDMF) during an interaction in to life and thrive as expected, as by Shoprite International is in line further include both a franchise ber 2005, Shoprite has expanded to his office that the funds gener- another major source of revenue with its strategy to change from an agreement which secures RSNL’s 25 outlets across eleven states and ated from the industry have always for government to beef up the in- ownership model to a franchise right to continue to use the Shoprite Abuja, FCT. According to the terms been used for the day-to-day main- ternally genersted revenue(IGR) , model, as the change in ownership brand as well as an administration of this acquisition, Ketron acquired tenance of the establishment. the plantation and the mill should has also received the approval of and services agreement that pro- 100 per cent ownership of Shoprite The former commissioner for be looked into properly . the Nigerian regulator, the Federal vides RSNL with administration in Nigeria and will continue opera- commerce and industry, disclosed Obodo informed that the man- Competition and Consumer Protec- and technical support from the tions across all existing outlets. It that the industry had entered into agement was planning to uproot all tion Commission (FCCPC). Shoprite Group for a 5-year period. also plans to open additional stores partnership with some agencies the abandoned palms trees planted Tayo Amusan, chairman, Ketron Accordingly, Shoprite Holdings has and introduce more Nigerian-made for the purpose of actualizing its by the expatriates who were the for- Investment Limited, while speak- taken a decision to dispose of its products in the stores. targets .While he was specific on mer managers of the industry. ing on the acquisition said, “We are BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 4 NEWS

Ben Eguzozie, in Port Harcourt THE NIGERIA NEXIM, Afreximbank boost maritime with EXPORT-IMPORT NEWS BANK (NEXIM) and African Export-Im- $750,000 grant to chart Niger-Benue channel port Bank (Afrex- imbank) are providing a grant of $750,000 to support the charting Support part of ECOWAS Regional Sealink project of the main channel of the Niger- Benue River in Nigeria, as part of the Regional Sealink Project, which aims to bridge the gap in maritime transport infrastructure and improve trade connectivity in West Africa. Afreximbank provided a grant of $350,000 to supplement the $450,000 made available by NEX- IM, thus completing the financing of the bathymetric survey and hydrographic and hydrological studies of the lower Niger-Benue River. The studies will be under- taken under a joint collaboration framework between the Nigerian Navy Hydrography Department, Nigeria’s National Inland Wa- terways Authority (NIWA) and Sealink Consortium Partners. The completion of the studies will support the early commence- ment of the inland waterways operations planned under the Re- gional Sealink Project, by enabling the development of the inland waterways navigation chart, as well as river ports and anchorage plans that will facilitate both bulk commodities and general cargo Zainab Ahmed (4th from left) minister of finance, budget and national planning, poses for a group photograph with the board of the Nigeria Deposit Insurance shipping, thereby boosting Nige- Corporation (NDIC) led by Ronke Sokefun (5th from left) the chairman, along with Bello Hassan (4th from right), NDIC managing director/chief executive, ria’s bulk commodities trade and during the NDIC board’s courtesy visit to the ministry in Abuja recently. exports. The Regional Sealink Project the growth of cross-border trade, which will facilitate regional tran- also foster regional integration support for the development of is a trade facilitation initiative especially trade in large volumes sit, is timely given the recent com- and trade in the ECOWAS region. trade facilitating and enabling designed to address the critical lo- of bulk commodities. mencement of trading under the In addition, it will facilitate the infrastructure that will deepen gistics infrastructure gap towards Inland waterways are a key African Continental Free Trade reduction of the level of infor- the partnership engagements of facilitating and deepening inland transport mode that play a vital Agreement (AfCFTA). The grant mal trade, thereby promoting both institutions to foster trade and intra-coastal waterways oper- role in facilitating the efficient from Afreximbank and NEXIM industrialisation and financial connectivity, especially under the ations. It was adopted by the Eco- and cost-effective movement of will allow for the development of inclusion for Micro, Small, and AfCFTA.” nomic Community of West African goods and providing a competitive infrastructure that will eventu- Medium Enterprises (MSMEs),” He said the partnership will States (ECOWAS) Commission as alternative to rail and road trans- ally relieve road congestion and said Oramah. also facilitate the implementation one of its seven priority projects port, while ensuring integration enable some bulky commodities Abubakar Abba Bello, manag- of the Regional Sealink project, under the ECOWAS Community into the country’s international and solid minerals to move by ing director, NEXIM, said: “The thereby promoting hinterland, Development Programmes. Its logistics chain. the river. execution of the grant agreement coastal and transit trade as well as implementation is expected to According to Benedict Ora- “The project will not only en- strongly aligns with the strategic the broadening of Nigeria’s export mitigate some of the main bar- mah, president of Afreximbank, hance Nigeria’s attractiveness as objectives of Afreximbank and basket with bulk commodities like riers to regional integration and the charting of the main channel an investment destination, but NEXIM in trade promotion and solid minerals and agricultural of the Niger-Benue River project, products.

that the forecast situation is more WMO forecasts 90% chance Earth to so, due to the casually-monitored TotalEnergies’ $3bn clean polar regions. be hotter by end-2025 than Paris goal “It’s a warning that we need to energy investments benefitting take strong action,” Hermanson Ben Eguzozie, told Associated Press. Nigeria, says CEO in Port Harcourt If the forecasts manifest, then A NEW WORLD Africa, a continent though the METEOROLOGICAL least Greenhouse Gas (GHG) Providing 500,000 solar lamps NEWS ORGANISATION emitter, will be potentially worse services in Nigeria (WMO) forecast pre- off than all other regions of the Ben Eguzozie, in Port Harcourt es oil, acknowledging that oil will dicts that for the next world. be utilised yet globally for years several years there is a 90 percent The continent is already hit by TOTAL ENER- to come, Sangster noted that the warmer from now. $15 billion climate cost annually, GIES SAYS it is in- chance that the world will set yet NEWS company has begun to pivot to another record for the hottest by The report said there is a 40 according to the African Develop- vesting $3 billion an- cleaner energy sources like LNG the end of 2025, with the Atlantic percent chance that at least one ment Bank (AfDB) evaluations; nually in renewable and renewables. Ocean to continue to brew more of the next five years will be 1.5 with the International Monetary energy across all of He noted that the company has potentially dangerous hurricanes degrees Celsius (2.7 degrees Fahr- Fund (IMF) predicting that the its business units, as the French already begun to provide solar than it used to. enheit) higher than pre-industrial cost would increase to $50 billion energy company intends to be- services in Nigeria as it has sold Additionally, meteorologists times — the more stringent of two by 2040. come a world-class player in the about 500,000 solar lamps across have said there is a 40 percent Paris goals. Meanwhile, Michael Mann, energy transition initiative. the country. chance that the world will get so Already, the world is 1.2 de- Pennsylvania State University The company also says it is set About 75% of its 570 service hot in the next five years that it will grees Celsius (2.2 degrees Fahren- climate scientist, who wasn’t part to achieving net-zero emissions by stations have been fitted with so- temporarily push past the tem- heit) warmer than pre-industrial of the new meteorological report, 2050. lar power to reduce emissions. perature limit the Paris Climate times. said he is “almost certain” that the Formerly Total E&P, the oil gi- He said the group’s low carbon Agreement is trying to prevent. Last year, the same meteo- world will exceed the Paris warm- ant recently declared its commit- emission strategies would ensure For this year, the meteorolo- rological group forecasted a 20 ing threshold at least once in the ment to continue doing its oil and that all of TotalEnergies’ new de- gists say large parts of land in percent chance of warmness hap- next few years. gas and energy business in Nige- velopments are zero flaring. the Northern Hemisphere will be pening. But Mann said one or two years ria, where it has been since 1962. The French oil giant adopted 1.4 degrees (0.8 degrees Celsius) Analysts add that the doubling above 1.5 degrees Celsius (2.7 Mike Sangster, managing direc- the new brand identity, ‘TotalEn- warmer than recent decades and of the odds is due to improvements degrees Fahrenheit) isn’t as wor- tor, TotalEnergies Nigeria Limited, ergies’, with the ambition to be a that the U.S. Southwest’s drought in technology that show the world risome as when the overall trend noted that the group had devel- world-class player in the energy will continue, the Associated Press has “actually warmed more than of temperatures stays above that oped a novel business model for transition. The company states reported. we thought already.” level. growing natural gas and renew- that it is now committed to pro- The 2015 Paris Climate Agree- Leon Hermanson, a climate “That won’t happen probably ables such as solar power, wind ducing and providing affordable, ment set a goal of keeping warm- scientist at the United Kingdom’s for decades and could still be pre- power, and biofuels. reliable, and clean energies. ing to a few tenths of a degree Meteorological Centre explained vented,” Mann said. It said, although it still produc-

Fund will enhance telecom giant’s operations in its respective markets ???

BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 NEWS 5

Zainab Iwayemi

W H A T W A S Recapitalisation ONCE A MATTER NEWS OF INTELLIGENCE IEI gets NAICOM’s nod for M&A deal, filtering out con- cerning goings on at International Energy Insurance but is Verod Capital still on the prowl? (IEI) regarding its recapitalisa- tion moves has now come out in the open. The company is going on the mergers and acquisition (M&A) route. But the fact that it has been troubled for a while and had been under the management supervi- sion of industry regulators means that it can only be that a suitor is around to acquire it. The question analysts are asking though is, do the suitors include the elephant in the room, which has been bullish on the acquisition journey since 2019 to beef up its insurance assets portfolio? For a long time, intelligence available to Business A.M. was that private equity firm, Verod Capital Management, had been in some long drawn discussions with IEI with a view to taking a chunk of the company, if not an outright take over of the insurer. Discus- sions were hush hush, but we un- derstand that Verod Capital’s due Godswill Akpabio, minister, Niger Delta Affairs, visited Emmanuel Uduaghan, immediate past governor of Delta State, as part of his rapprochement and diligence raised some questions consultation, following a 7-day ultimatum issued by former militant leader, Government Ekpemupolo (popularly known as Tompolo), demanding the immediate needing a lot of clarifications. re-constitution of the board of the Niger Delta Development Commission (NDDC). The minister visited in the company of Akwa Effiong, sole administrator Now that IEI has gone public of the NDDC to say it is discussing with suitors 17:17 of the issuers’ rules, IEI here- or, perhaps, one suitor, it would be ARM Life is one piece of the puzzle and obtained the approval of the towards actualizing our vision for regulator to engage in a business by announces the commencement nice to dig up the intelligence trail of a closed period for the trading to see if Verod Capital Manage- Tangerine Life,” he added. combination transaction to meet Mark that statement from Idi- up the fast approaching second of the company’s shares from 31st ment is still on the prowl looking May 2021. During the closed peri- for insurance assets such as IEI to ahi, “one piece of the puzzle” sug- tranche of the recapitalization gesting that there are other pieces deadline scheduled for 30th Sep- od, no director, persons discharg- add to its portfolio. ing managerial responsibilities The firm has been quite bullish of the puzzle to come. Could an IEI tember 2021. deal be part of the puzzle? In addition, IEI said sales of the and advisers of the company and in the insurance space. It acquired their connected persons shall deal Metropolitan Life Insurance in IEI is trying to meet the target company’s shares were being sus- date set by regulator, National In- pended until the transactions are in securities of the company. The 2019 for $115 million and changed closed period will remain in force its name to Tangerine Life Insur- surance Commission (NAICOM), concluded on the deal. The state- to meet recapitalisation. In its ef- ment read in part, “International until 24 hours after the details of ance. Both Tangerine Life and Eric Idiahi, partner, forts to do so the underwriter says Energy Insurance Company Plc the transaction are released to the Verod Capital Management then Verod Capital Management public” moved and acquired a majority it has opted for an acquisition deal. wishes to notify the Nigerian Ex- “The acquisition not only cre- This is contained in a corporate change Limited and the investing The recapitalization exercise stake in ARM Life Insurance, to requires life insurance, general underscore its appetite for insur- ates a stronger player, but provides disclosure filed to the Nigerian public that in its efforts to meet the a superior platform for sustained Exchange Group and signed by capitalization requirement as di- insurance and composite firms to ance assets and its desire to grow have up to N8 billion, N10 billion its portfolio in that space. growth given strong synergies Michael and Co., its company rected by the National Insurance within the two businesses. The secretary. Commission, the company has and N18 billion against the respec- On that particular acquisition, tive N2 billion, N3 billion and N5 Eric Idiahi, partner at Verod Capi- greater story about Tangerine will The insurance firm, according sought and obtained the approval be about innovation, transforma- to the disclosure titled, recapital- of NAICOM to engage a proposed billion threshold. Similarly, rein- tal said: “This acquisition is in line surance firms are required to have with our broader strategy towards tion, technology – all of which ization/acquisition of majority eq- acquirer for a business combina- will be applied towards a superior uity stake in International Energy tion transaction. a minimum capital of N20 billion capturing the opportunities we from a previous N10 billion see within the sector. customer experience, acquiring Insurance Plc, said it has sought Furthermore, pursuant to rule StanChart joins top banks in crypto play with launch of exchange, brokerage service AT A TIME MA- the tech firm’s Hong Kong-based stocks of companies with ties to clear for crypto in the future. assured Nigerians that the trading JOR central banks digital asset platform. crypto investment, it also means However, in February this year, NEWS of digital currencies will have a sure across the globe are “The project’s team will be build- that the bank has joined a budding the banking sector regulator in and safe haven in the country. acting hawkish on the ing the exchange platform for cor- list of top banks around the world Russia stated that the legal status “We have carried out our in- trade and exchange porate and institutional clients in that have embraced the virtual of cryptocurrency is uncertain in vestigation and we found out that of cryptocurrencies and other the UK and Europe. The leaders of asset. Some of the banks include the country after it passed a cryp- a substantial percentage of our digital assets, a top banking cor- the venture have been appointed. DBS, Morgan Stanley, Citigroup, tocurrency law on digital financial people are getting involved in cryp- poration, Standard Chartered, has SC Ventures’ Nick Philpott will be and Goldman Sachs. assets the previous month. How- tocurrency which is not the best. announced plans to give access to the chief operating officer of the Elsewhere in Russia, Tinkoff, the ever, while the Russian apex bank Don’t get me wrong, some may be the digital currency to its clients exchange while Usman Ahmad of largest digital bank in the country has banned using crypto assets as legitimate but most are illegitimate. by launching a crypto exchange BC Group will be its chief executive has begun considering offering a means of payment, local regula- Under cryptocurrency and Bitcoin, platform and brokerage service. officer. We are constructing the cryptocurrency services, but says tors are looking for ways to initiate Nigeria comes 2nd while on the The bank stated that SC Ven- building blocks for a safe and reli- the stringent policies of the coun- a temporary lift on the ban. Mean- global side of the economy, Nigeria tures, its innovative arm, will be able investment infrastructure,” he try’s central bank on digital assets while, the country’s regulatory comes 27th. We are still conduct- responsible for the platform set reiterated while further stating that remains a constraint to its plans. body’s stance on digital assets does ing our investigation and we will up while it collaborates with BC both firms believe that the virtual Oliver Hughes, Tinkoff’s chief not affect CBDCs, as the country is make our data available,” the CBN Technology Group to make the asset industry will be adopted im- executive officer, while speaking at planning to launch its digital ruble boss said. plan a reality. This move by the mensely by the institutional market the Saint Petersburg International that can be used to make payments Meanwhile, efforts are still un- banking group is another evidence as the new platform will connect Economic Forum, said the bank has in the same way the traditional derway between the Central Bank Bitcoin and other cryptocurren- institutional investors with coun- a long desire to expose its clients to ruble fiat currency is used. of Nigeria and the Securities and cies are gradually but successfully terparties trading Bitcoin, Etherum, cryptocurrencies, as a result of the And in Nigeria, after the Central Exchange Commission (SEC) on penetrating into the mainstream and other digital currencies. growing demand for digital cur- Bank of Nigeria (CBN) in February the framework for the trading and market. Meanwhile, it can be said that rency by clients. The CEO, however, placed a ban on the trading and ex- regulation of virtual currencies in Alex Manson, head of SC Ven- the announcement by Standard revealed that the Russian central change of the digital asset as a way Nigeria. However, a recent survey tures, while commenting on the lat- Chartered, though, coming after bank is still showing concerns of ensuring the safety of Nigerians, by Statista stated that about 32 est development from the financial Noel Quinn, HSBC chief executive about the high volatility and money Godwin Emefiele, the apex bank percent of Nigerians use the virtual institution, revealed that the bank- officer, stated that his bank will laundering risks in the industry. As chief, disclosed last month that af- asset as the report further revealed ing group will be bringing its expe- not be launching any crypto-based a result, the policy in place now is ter a careful investigation, it is now that Nigeria ranked third, in terms rience and global network while BC services which also saw the bank not favourable for such business. certain as to what percentage of Ni- of Bitcoin trade volumes, just be- Technology Group will provide the recently updating its policies and However, he remains optimistic gerians are involved in the trading hind the United States and Russia necessary technology used in OSL, barring clients from trading in that the environment may become of cryptocurrency as the bank has in 2020. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 6 COMMENT

Dismantling of the illegal or illicit refineries operating within Downstream productivity profiling: the Niger Delta region with mili- tary force will not solve the social Panacea for successful economy and economic problems attached to such operation; rather, it will be ited in return with these recorded be certified by the Department of should be seriously addressed, with counter productive. The best ap- ‘dirty’ refined petroleum products, Petroleum Resources, through su- a view to boosting the financials, are proach to it involves the application full of higher percentage of sulphur, pervisions of government approved measures to plug revenue leakages of sound academic exposures to imported from European countries petroleum training institutes (from by drastically reducing the crude oil such entrepreneurs who engage in by our indigenous oil marketers, designated tertiary institutions theft to the barest minimum, once the unconventional ways of heating who did not give a hoot nor cared around the Niger Delta region; the this legalization initiative of the un- and distillation process of crude oil about the poor quality refined fuel likes of the Petroleum Training conventional refining activities in (cracking the hydrocarbon chains SUNNY CHUBA being brought into the country! Institute (PTI), Efurun, Warri or the the Niger Delta creeks are formally into various grades of refined pe- NWACHUKWU The negative impact and side effect Emerald Energy Institute, Univer- streamlined and implemented. troleum products); and capacity constantly resulted in the high risk sity of Port Harcourt). Citing the losses of about $2.8 training for full professional ap- IGERIA’S OIL IN- of the general environmental pol- This is strategic for many rea- billion in revenue incurred in the preciation of the characteristics DUSTRY HAS SUF- lution; from combustion engines sons. The productivity in the na- 2017 report, this singular measure of the products being refined. The FERED a lot of set- of mobile vehicles and stationary tion’s economic sustainability can will not only protect against such full positive impact of the Research backs. As an oil rich mechanical engines for factory op- only be meaningful from the angle losses but, will tremendously im- and Development of the training economy, the coun- erations and home equipment. of downstream operations and its prove the productivity profile of institutes (as earlier suggested) tryN is still being tagged the world’s Part of the drastic changes that value chain of economic activities the downstream accruals through will heavily cut down on the cost of poverty capital. Sovereign remedy, must take place towards profiling if the three critical dimensions of value addition, job employments, entry into local refining operations, therefore, is a feasible option for productivity in the nation’s eco- sustainability economic pillars (the commercial activities within the if it is then scientifically approved the needed economic emancipa- nomic arm of the oil downstream triple Ps, namely, Profit/Financial economy and its exports, among and endorsed, as the indigenous tion of the Nigerian state. Over the oil sector is the legalisation of il- benefits, Place/Environmental numerous others. technology for the downstream past decades crude oil business licit refineries, which the federal protection, and People/Social The other aspect of the mea- oil sector in the country. This will has significantly contributed far government has already thought responsibilities) are adequately sures to be taken in improving the make the achieved indigenous more than 70 percent of the entire about. This initiative should be covered, fully protected and sub- economy equally has its environ- technology a unique and peculiar foreign exchange earnings (annu- packaged with detailed legal frame- stantially met in the host commu- mental protection dimensions (as economic success for the nation’s ally) in the economy, through crude work, through stringent scientifi- nities in particular and the society a two-pronged approach), once oil industry. Government ought to exports to the nation’s business cally-proven requirements; as may in general. the import substitution differential encourage the implementation of partners in the upstream sectoral Profiling productivity at a time is actualized through stoppage of this initiative, and the application operations. Dismantling of the like this in our economic climate the imports of high sulphur con- of this package. Things, of course, have not illegal or illicit refiner- requires drastic measures and tent refined fuels from Europe by reasonably fared well as it ought changes that could change the tide oil marketers. Its negative impacts ies operating within from the presently social image on counting the costs include both Nwachukwu, a graduate of pure to be in the oil sector. A diligent and applied chemistry with an MBA optimization of the available op- the Niger Delta region and economic status of ‘world’s the environmental pollution and poverty capital’, especially when the health hazard created for humans in management, is an Onitsha based portunities was not properly taken with military force will industrialist, a fellow of ICCON, advantage of in the oil operations, potentials for a paradigm shift and with pollutants from the release not solve the social and the capacity to improve on the poor of high sulphur content into the and vice president, finance, Onitsha along its entire value chain. Inad- economic problems Chamber of Commerce. vertently, sluggardness stole the performances are richly endowed atmosphere. In addition, costs of place of productivity in the down- attached to such opera- with the needed natural resources heavy mentenance on machinery Sunny Chuba Nwachukwu (FIC- stream oil sector hence, cases of ex- tion; rather, it will be and the attached comparative ad- running on the poor quality fuels CON, LS) ports of low sulphur content crude counter productive vantages that are at play. are significant (as a drawback to Onitsha, +2348033182105 oil (Nigeria’s sweet crude) were vis- Two important aspects that the economy). WhatsApp privacy policy update: Double standards and erosion of Africa’s sovereignty launched its own secure govern- a large pool of diaspora technical ment-only chat app called Tchap in talent is a key to building a flourish- April. It built its app based on open- ing technology ecosystem. Yet, the source messaging client Riot, and lack of talent is one of the biggest made it available for Android, iOS, barriers to building such a power- CAESAR and the web. It encrypts private ful infrastructure like WhatsApp; conversations end-to-end, screens and the technical skills required KELURO all attachments using antivirus to sustain it are in rare supply con- sidering the hyper-competition for INCE INDEPENDENCE, software, and stores all data gener- global talent in this space. This has SUB-SAHARAN African ated by the platform in data centers only worsened as the geopolitical countries have struggled located within France. A welcome benefits of leading in technology to meet a key demand of shot at technology sovereignty. and science continue to acceler- their freedom: national ate at a crazy pace. Today, we can development. This has led to the The double standards for dif- S address our skills shortage in three interventions of donor agencies, ferent countries altering our political views, mud- economic innovation. We should ways: overhaul our educational leading to broken policymaking Yet Facebook-owned WhatsApp dling our emotional state, targeting aim for a regulatory environment in infrastructure, upskilling our do- functions and implementation has become the most ubiquitous our location with hyper-accurate which local tech startups and tech- mestic population and reforming quagmire. The rise of digital plat- means of communication across ads, and magnifying geopolitical nology adopters can thrive. For us our immigration to attract digital forms is undermining democracy Africa. African governments face infractions. to accomplish this, we have to put natives globally. and national sovereignty. They credibility issues in their request together resilience infrastructure to In all, although the causes of have further eroded Africa’s sov- for backdoor access to Whatsapp, Africa’s technology sover- enable venture scaling up, reduce Africa’s lack of technology progress ereignty as the recent WhatsApp to monitor the platform for mis- eignty hurdles as much as possible, to en- are complex; this is the best time policy update shows. The Nigerian information and hate speech as Africa has to think thoroughly able us compete globally. We must to start building the foundations government is responding with that could likely worsen privacy about technology/digital sover- embrace pro-competitive policies to harnessing the vast productivity plans to build its own WhatsApp- concerns. WhatsApp’s request for eignty. COVID-19 has exposed and craft incentives for research gains that the next generation of like chat platform just like France accept-the-terms-or-leave-the- the urgent need for us to embrace and investment. technologies will enable by design- did; and India is pressing to do platform stance for users in Africa digitalization, especially to ad- ing ambitious science and technol- same. The end goal is to facilitate and other parts of the world while dress our inequality, and curtail Meeting the demands of the ogy programmes targeting African secure communications for gov- deferring to the rules of UK and social tensions that we saw during times youths. Most excitedly, the upcom- ernment agencies and its teeming European regulators has shown the lockdown. To continue to use Looking at 30 largest internet ing wave of technologies like AI can population. a clear disdain for the rights and foreign technology wholesomely is companies in the world by mar- be especially impactful for African WhatsApp’s recent policy up- interests of African users. Thereby, to sustain existing global technol- ket cap, none is African. African society and help us compete with date has led to countries chasing it is gingering countries globally to ogy dominance order. It is time for nascent technology startups hold the world, sprouting forth cham- communication insularity. Like pursue technology protectionism us to invest in economic innova- great potential. But African gov- pion technology firms who will be Nigeria and India, the argument for by replacing digital platforms like tion rather than spending scarce ernments must prioritize, gradu- shaping the next decades. building your own WhatsApp stems Whatsapp. taxpayer’s money on replacing ally, investments in technology and from fears about digital platforms WhatsApp massive user base in existing world-class technology most especially, market-friendly like WhatsApp taking instructions Africa and its mining of aggregate solutions. environment for us to be able to sensitive information exposes Also, the resources to drive build proprietary technology sys- from their government to slow • Caesar Keluro is co-founder/CEO, Africans to information security technology protectionism are huge tems like WhatsApp. down networks or even bring the Nanocentric Technologies Limited. whole country to a standstill in a risk and vulnerabilities. Over the and we cannot sustain it without That would be possible if condi- years, WhatsApp has consolidated He leads ‘Make In West Africa’, a re- faceoff. overhauling our educational in- tions are present to enable mas- gional Think-tank. He tweets https:// its platform, exposing everyone Recall that France moved away frastructure. We have to shift our sive scale beyond touting African twitter.com/KCaesar, https://www. from popular apps. It recently to being chased around with ads, conversations from regulations to population numbers. Attracting linkedin.com/in/caesarkeluro/ BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 COMMENT 7 THE TEAM Insecurity and civil society response EXECUTIVE EDITOR Government security organizations Many civil society organiza- the sincerity of many civil society Phillip Isakpa Tel.: 0809 400 0025 still dominate with glaringly unsat- tions actively collect and analyze organizations is suspect. Many al- [email protected] isfactory results begging for the en- relevant security data, conduct lege that some of them are covers hanced role of nonstate actors. predictive early warning analysis, for terrorists and their financiers. BUSINESS & TRANSPORT EDITOR But there is always a place for and monitor actual developments Therefore, as much as civil society Mike Ochonma everyone, including the civil so- on the ground. Yet, social media organizations in Nigeria play fo- Tel: 07037704280, 08099400166 Security, Conflicts [email protected] & ciety, in the security management appears to be introducing signifi- cused roles in strengthening demo- chain comprising conflict pre- cant noises to the process. From a cratic institutions, they should PORT HARCOURT BUREAU Development vention, peacebuilding, conflict positive perspective, digital tech- also pay attention to organizations Ben Eguzozie with management, and post-conflict nologies in the public hands have under the same umbrella whose ac- Tel: 07034888186 NNANYELUGO IKE-MUONSO peace and security restoration. massively improved the ease of tivities are destroying these institu- [email protected] While actual conflict execution and data collection. However, since the tions. Some political parties belong control may be substantially within speed of broadcast of privately col- to this category, being members of JOURNALISTS the civil society cluster. Yet some Charles Abuede the jurisdiction of trained security lected but publicly shared security Onome Amuge professionals such as the police data outpaces the rate of external- hibernate persons, structures and and the soldiers, there is undoubt- ization of properly conducted data processes that end up as canker- GRAPHICS edly enough space for civil society analysis for early warning, noisy worms on the subsisting demo- Christopher Ikosa organizations to support. In many and misleading data threatens cratic systems. Civil society groups ______countries, CSO’s have done excep- the integrity of the predictions. should actively interrogate what tionally well in conflict analysis and It becomes challenging for deci- goes on within many frontline po- Businessnewscorp Limited early warning, holding the security sion-makers to determine which litical parties and other sister-CSOs Phillip Isakpa Prof Ike-Muonso is MD/ sector accountable, raising aware- information source and analysis to determine whether their opera- Adedotun Akande CEO, ValueFronteira Ltd, ness of the public and policymakers to predicate their actions. For tions are consistent with authentic Tiamiyu Adio and a Visiting Professor at the for sound security management instance, the public would expect norms that build democracy rather decisions. They have also played national security agencies to act than destroy it. Isaac Jayeola Institute for Peace, Conflict and notable roles in strengthening quickly on security data broadcast Again, whereas the Nigerian Development Studies of Enugu OFFICE ADDRESS: democratic institutions and the on social media without consider- CSOs have done reasonably well 10B Stella Osholanke Street, Off State University of Science and rule of law and participating in able time lag. However, given nu- in their public watchdog role, those Internationnal Airport Road, Ajao Technology actual conflict resolution. CSO’s merous pieces of evidence on the efforts are mainly in favour of the also serve as a platform facilitating ease of falsification of such data, supply side of governance. The Estate, Isolo Lagos. Tel.: +234 (0)803 5555 568 HE COMPLEX DIMEN- the involvement of the public in the intelligence professionals may commonly deployed citizen-driven SIONS of insecurity in Email: [email protected] governance of security, the provi- need additional time to validate accountability monitoring tools Website: www.businessamlive.com Nigeria suggest that its sion of advice and capacity building the integrity of such social media comprise checks and balances, au- management is beyond for security sector personnel and transmitted security data. But such dits and administrative procedures the narrow precincts humanitarian supports to victims delays and any action that follows and rules. While this approach is But awareness does not crystallize mannedT by security professionals of insecurity. Unfortunately, the are often considered unaccept- acceptable, they have not yielded into impactful actions. Civil society alone. Everyone is affected by it CSO operating environment in ably reactive by the public, who, exceptional results consistent with organizations are neglecting to mo- and should be involved. Conse- Nigeria has been challenging. overwhelmed by emotions, expect public expectations in very recent bilize the public to actively demand quently, from the parental counsels Decades of military rule brought instant results. Therefore, beyond times. The people in government that those in authority do what is at various homes to the religious tremendous levels of suppression conflict analysis and early warn- have over the years found a nest right about Nigeria’s insecurity situ- exhortations in multiple churches of CSOs, leaving a solid hangover ing is the additional challenge of in the gross absence of the rule of ation. Practical civil disobedience and mosques and the actual pulling on their capacity to challenge the quickly sifting through the noisy law through which they success- has worked wonders in the past, of the trigger by soldiers, every per- status quo as should be expected. security data provided publicly by fully evade the consequences of ac- dating back to the extraordinarily son has a role in the security value The small-size and narrowly fo- private collectors through social countability assessment outcomes. successful 1929 Aba women’s riot. chain. However, apart from the gov- cused structures and difficulty media and delivering high-quality Impunity, corruption, human We have also recently had the ernment on whose authority most in collaboratively mobilizing at a predictive security intelligence at a rights abuses, injustices, and fraud 2012 fuel subsidy protest, the 2015 of the security agencies operate and national scale against the military suitable time. Civil society organi- still abound and increase within the #Bringbackourgirls movement, and the entrepreneurs whose interests regimes made them exceedingly zations need to step in to improve public sector, particularly in the se- the 2020 #Endsars campaign. The in the security value chain seems to vulnerable. Military decrees came the integrity of privately collected curity sector. But the demand-side Nigerian public will undoubtedly be well defined, it becomes some- into force to intimidate and cripple and volunteered security data. of good governance through which be grateful if the civil society groups what nebulous to precisely isolate their power. Consequently, several Concerning the strengthening Nigerians won the current democ- can mobilize them to achieve in the roles of other stakeholders in of their members suffered impris- of democratic institutions by civil racy suffers significant neglect. All the security front similar successes the process correctly. But since onment and death. The military society organizations, a significant over the world, large-scale demon- recorded in taming governments security is everyone’s business, the government also proscribed sev- matter of concern is the less atten- strations threatening and affecting fuel hike addictions over the years. public expects structured civil soci- eral newspapers and magazines tion paid to the dysfunctional roles the government ability to function For instance, the public staged ety organizations to play definable and thoroughly persecuted the of many of them who are merely consistently deliver substantial extraordinarily successful protests roles in managing it. Unfortunately, media. The repression resulted in fronts for political power-seekers. positive impacts. A revamp of that against the 614%, 361%, and 227% civil society groups in Nigeria the detention of several political Increasingly, many civil society spirit seemed to have resurged fuel price increases for 1993, 1994, still suffer the dizziness of several opponents, trade union leaders, organizations lack the indepen- during the recent #endSARS pro- and 1998 and achieved significant frustrating decades of repression journalists, and furtive killings of dence they require to monitor and test organized by the youth. Since N3.25, N11, and N20 price reduc- by the military, which it eventu- perceived enemies of the state. demand government account- then, many expected a follow-up, tions, respectively for those years. ally brought down. Yet subsequent CSOs persevered, and through an ability genuinely. Many of these but it appears that the govern- Similar resistance greeted the year democratic governments still con- avalanche of protestation following groups are intolerant of groups ment has weakened the structure 2000, 50% fuel price increase. The sider them enemies and rarely offer the annulment of the 1993 election, that disagree with their views and that brought and sustained that 2012 protest was full-scale and them the headroom they statutorily forced the then President Ibrahim members who profess contrary protest. Increasingly strengthening across the country, forcing the gov- require to contribute to the coun- Babangida to step aside. The atten- opinions. In many instances, such the voices and capacity of citizens ernment to reduce the proposed try’s insecurity cutback. dant relief in that demonstration CSOs undermine the collective to consistently hold the public price increase to N97 instead of the It is an undebatable historical of powerfulness was short-lived as strength of similar organizations by security sector to account in ways N141 initially proposed. Whether truth that civil society organiza- General Abacha, who succeeded aligning with unpopular political like the recent #end SARS protest the current core of civil society tions exude positive influences Babangida after toppling the in- views while maintaining the statu- should be a more productive direc- organizations cannot deliver this on every country’s development, terim government, was a horrific tory posture of a civic society. Even tion for civil society organizations opposition magnitude on the inse- including security management. nightmare to human rights and in the seemingly positive instances in Nigeria. For instance, it is long curity arena is one puzzle begging Fortuitously, such organizations, pro-democracy activists. However, where such organizations preten- overdue to amplify citizens voices for an urgent answer. by definition, are in abundance. the socio-political climate has im- tiously commit to working to limit further and escalate civic disobedi- Finally, Nigeria and the world All non-government, non-profit proved considerably today, yet the the powers of the state, the intents ence against governments seeming are watching how the civil society making organizations focused CSOs seem to be underperforming are usually to gain enough popu- docility and slow response to the groups respond to the insecu- on improving society’s quality of on the security front. larity for political power. Today, terrorism, banditry and kidnap- rity that is slowly swallowing the life belong to this category. The ping that is fast gaining ground country. The Nigerian civil society membership becomes more pre- across the country. Civil society has, over the years, demonstrated cise with such organizations being organizations have all it takes to resoluteness and successfully legal entity. Therefore, this criterion Whereas the Nigerian CSOs have done mobilize nationwide and pressure dismantled military dictatorships. qualifies myriads of communities reasonably well in their public watchdog the government to act speedily and Yet, within its ranks are many or- and organizations such as market decisively to arrest the situation. ganizations conducting activities women, the academia, religious role, those efforts are mainly in favour of the Luckily, civil societies’ public that are antithetical to the goal of organizations, political parties, the supply side of governance. The commonly awareness-raising responsibil- democracy and public welfare. media, labour union, village asso- deployed citizen-driven accountability ity receives a considerable boost Suppose the civil society com- ciations and town unions, student monitoring tools comprise checks and bal- from the Internet and social media munity successfully mobilize and unions, think tanks, etc. While it technology. Additionally, because resurrect the tremendous capac- is evident that these categories of ances, audits and administrative procedures of the nature of security, public ity they deployed in challenging organizations have been highly and rules. While this approach is acceptable, awareness circulates at a reason- fuel price hikes. In that case, they active and delivering outstanding they have not yielded exceptional results ably higher velocity than in other can successfully bring the current results in many other spheres of consistent with public expectations in very areas of civil society focus. Virtually government to act speedily and de- our socioeconomic life, there is everybody in Nigeria today is on cisively in containing the insecurity hardly corresponding impacts on recent times the lookout for information and in the country. the insecurity management side. intelligence necessary for safety. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 8 COMMENT

the administration of ridiculous I was, therefore not surprised at oaths of allegiance, not in mutual fra- the yawning gaps that emerged in The ogre of impunity ternal responsibility, but in Mafiosi the team building, when what was style, grand puppeteering. Whether wished for, became reality in 2015. North, East, West or South, this Filling of the team positions fell to model has consistently fallen flat on the whims and caprices of the Sov- Cancer in our body politic ereign. He also, was beside himself, nial masters could ever muster. The leadership impunity, is actually an its face, because the human will, is as he who couldn’t understand the shout of the new elite all over the land elite preserve and that all that has difficulty to appropriate by another ridiculous demands from erstwhile was, “we are now in-charge” That “in- been going on, are visage changes individual, no matter how apparently trench partners. Whereas many charge” came with no responsibility from flowing Agbada, or Boubou to powerful he is. CHARLES were earlier bonded by the discipline it seems, but absolute right to do as starched uniforms. And so ultimately, impunity nei- of shared doubts and fears in the IYORE you wish. ther leaves the perpetrator exempt from punishment, nor does it free trenches, fresh victory brought out Wives of politicians would shut This my friends, is our reality! HE OGRE OF IMPUNITY a narrow desire for the debauched out lowly women in groceries’ mar- The Anatomy of impunity. him from its injurious consequences HAS taken on a more vi- sharing of spoils. Those false starts kets by paying prices over and above For impunity to thrive, you must of action. cious life of its own and is are, in my view, the reasons for the the odds for goods. Arriving on first destroy free expression. The free threatening to consume fluxed state of affairs that we are in market days in coordinated colour expression of the Egba and Aba mar- Effects of silencing free expres- us as a nation. Beginning today. Meritocracy, pragmatism, dressing in chauffer driven cars. ket women, natural to these climes, sion withT early roots in sentiments of tribe How come an adult university and the honesty of war execution Politicians would announce their which the many colonial punitive ex- tongue and creed, this cancer in (opposition), were thrown out of the arrivals in ridiculously large Ameri- peditions curtailed, has been under lady undergraduate cannot make our body politic, has destroyed our window, at victory. can cars, with trumpet fanfare sound different kinds of attack, ever since her friendship choices freely without capacity for rational and construc- This for me, was a return to the horns. Our brow beaten commoners the colonizers left. threat from the cultist? Cultists who tive thought. This is evident in our “we are now in-charge mentality” withdrew in fear, but soon realized The attack in its current presen- hold territories for the institutions’ collective acquiescence to glaring and only wise b half. that the only game in town was tation, is by infiltrating the student contesting leaderships. miscarriages of justice, now reaching A way out? politics. unions, stopping the professional For how do we explain the fact monumental heights. We need to return to those initial Such was the attraction, that groupings from unionizing freely, that the very same arguments of Its capacity to drill away, at the elite conversations, but now broad- the noble profession of “politics for traditional rulers becoming authori- marginalization are played out at depths of our construction foun- ened and with institutional focus, to service” (oselu), became the draw of tarian and our leaders of institutions, all levels of public administration dations and weaken our nation reverse the “we are now in-charge” most scallywags. Many were to boast universities and MDAs becoming from Federal through States to Lo- building efforts, is not treated with assumptions of 60 years ago, and later, that you couldn’t get a better emperors. The leaders of the faith cal governments, and I dare say the the seriousness it deserves, -ask the replace it with the mantra “how can return from any other profession groups are not too far behind, in the wards? Chinese about dealing with anti-trust we make a difference together”. than in politics. mix of the new lordships. If you throw That tampering of free expression, conduct. These conversations can be en- They believed they had to be in into all that, the lack of a clear under- is what makes true democratic repre- Impunity according to the Web- riched by the new trend of virtual it at all cost, including eliminating standing of the concept of money sentation difficult. The use of social ster’s dictionary means one’s ex- meetings and social media. We need people who stood in their way, and and the a la carte approach, to using media, and the strong opinions of emption from punishment, or the to break the chains of those wrong once in office, you are advised to -as free market economic principles for gadflies, (otherwise called activists) freedom from the injurious conse- initial assumptions and begin to sume all ownership rights with scant national production, it is easy to see cannot match the effect of popular quences of one’s action. tolerate each other’s foibles and regard for the responsibilities. This why we are in such a sorry state. student union actions, or measured The colonial masters carried on we all have them. This time, these was the model in the North, East, Those who demonstrate impunity professional positions, the likes of with such impunity backed by the conversations should include clear West and South, moderated only in exercise of authorities they hold in which made the Tafawa Balewa barrel of the gun, in their violent policy presentations and choices. by the often imperial control of the trust, whether by documentation or government, reverse Nigeria’s foreign sackings of Benin, Kano and Ijebu- They should not just be about regional Premiers, most of whom by other agreements, are very often policy position or the “Ali must go” Ode and in other smaller punitive power grab and a dash for the trea- had to vet education scholarship lists deluded in their judgment of time protests. The desire to keep the ma- expeditions. The native struggle for sury keys. and land allocation to check abuse. and chance. jority silent, is what drives the push home rule, against that background, These conversations must find Such an elite conduct, lacking in Impunity as in my earlier anal- for press curtailment as with decree 4 was therefore not difficult to sell. ways of restoring free expression in any modicum of self-regulation and ogy is a cancer. Cancer cells and the and the other administrative moves, The minimum expectation at youths, trade unions and associa- constantly seeking to compromise cells they infect by spreading will all always in the works. independence was that the yoke of tions. They must find ways of using all trade and exchange arrangements die, sooner rather than later. So it is It was against this background of an uncaring leadership, answerable policing to close ungoverned spaces was not sustainable. not uncommon for the new elite to disorder fueled by impunity that one to a remote monarch, had been lifted and offer the leadership that we are There my friends, laid the rub! complain about ward’s ingratitude, was opportune to be at a leadership and that our new leaders with whom so capable of providing for Africa. It was against that background partner insincerity, and to frequently studio vetting of the ascetic general we struggled, would treat us with We must not fail to plan this that the populace welcomed the accuse each other of selling-out. by a broad group of patriots in 2011. a measure of decency and strive to time, or we would be condemned military intervention, which sold These mutual suspicions are the un- I was impressed by the painstaking defend the public good rather than fielding of questions, but also taken to repeat it. protect remote foreign interests. But itself as corrective and found the best derlying sentiments unsettling our speech writers to deliver winning na- national discourse and obfuscating aback by the total lack of discussions alas! that was not to be, as selfish regarding development programmes groupings quickly emerged, using tional addresses. Very many “musical the ideological clarity, needed for • Charles Iyore chairs dance sessions” thereafter, policy formulation. and the shape of the economy after whatever veil of subtle aggregation electoral victory. The retorts were Partner, DNA Capital they could find, to foist an even more to the staccato of bullet fire, it has Attempts at controlling outcomes [email protected] become clear that the malaise of by some leaders, is what has led to always, let’s win the elections first. violent administration than the colo- Politics has primacy. Darenth Kent England IMO, energy efficiency, international shipping and world trade ing and consequently keep world’s shipping industry is time alone. From the earliest Organization (IMO) resolu- diverted to fire a certain tur- the cargo moving. However, responsible for the largest times, there have been coun- tion A.963 (23) took the bull bine onboard the same ship the concept of Energy Ef- greenhouse gas emission tries whose major foreign by the horns to address the in order to provide power to ficiency came on board as a after those of various indus- exchange earnings are situ- growing rate of GreenHouse the generators, which in turn means to reduce emissions trialised countries have been ated in maritime trade. The Gas (GHG) emissions from leads to lighting onboard the from ships. These emissions quantified. The gospel truth various waters of the world vessels . A work plan with a ship. This will significantly include carbon dioxide and is shipping will continue to have served as a huge source specific timeline to erect the reduce the cost of fuel and other classes of Greenhouse impact the world’s climate. of livelihood to different spe- needed measures to address other factors that go to run- ADEKUNLE gases (GHG). These gases In fact, we can empirically cies of mother nature, it has GHG was birthed. Though ning the auxiliary machines SEGUN have become a very serious conclude that human activi- also accommodated various this is quite pronounced onboard. A typical ship can source of worry to various lo- ties will continue to impact man-made structures which when we compare the same be regarded as a moving HILE SHIP- cal and international organ- the world’s environment; have seen her concept of with shipping practice, it has house or community based PING RE- isations engaged in ensuring however, man can only slow civilization spread across become more than signifi- on the size and dimensions MAINS a sustainable and habitable down the rate of impacts the world. However, man cant to put this into opera- and moving such an edifice the mito- maritime environment. or effects with every means needs to actively take up tion and save our precious requires a lot of energy. The chondron What is Energy Efficiency available. This is what energy responsibility and business marine environment. Like I energy efficiency drive seeks ofW world trade and various on ships? Energy Efficiency efficiency in shipping seeks of protecting the world’s stated previously, the world to reduce and maximize the tonnes of cargo and light- is the comparative ration of to address. waters from abuse due to may not be able to totally amount of energy consump- weight are being transported carbon dioxide a vessel dis- Shipping and, by exten- the fact that the waters are eradicate GHG; however, we tion being used by these to different parts of the world charges into the atmosphere sion, international shipping, also one of the major sources have the pressing responsi- vessels. Energy Efficiency on a daily basis, it will be very calibrated in tonnes. Energy is a major factor in world of survival on planet earth. bility to reduce it to the low- cannot be predicated on the erroneous to say that there Efficiency is based on the trade. In fact, global trade The world’s waters house a est levels. There is the need operations of the maritime have been no adverse im- mile of work done by the and commerce is dead on ar- huge source of nutrition to to see how various forms industry alone. There is the pacts or significant depletion subject vessel out of which rival without incorporating man which if not effectively of CO2 emissions released need to make it attractive of the marine environment we can then establish if the the maritime arm of trade. protected through conscious into the atmosphere can be and profitable in order to due to the activities of these vessel is effectively utilizing Global trade and commerce legislations and responsible converted to other uses on make the various maritime sea steel giants. For the pur- her energy or otherwise. depend on major interna- actions we may not have board; which will in turn pose of our discourse, which The concept of Energy Ef- tional shipping line traders a life sustaining maritime benefit not only the climate is ‘Energy Efficiency’, we can ficiency management has to continue to be relevant environment in the nearest and atmosphere but the ves- continues on page 11 say that a ship is a bundle of been at the fore of climate to humanity. In this regard, future. sel owners, managers and various forms of energies. change and global warming all over the world, huge rev- With continuous increase operators. Let us imagine a • Adekunle Segun is a mari- These energies are required discussion for a very long enues are being generated in the world shipping fleet situation where gases from time professional...He writes to keep the vessel function- period. It is said that the from shipping and mari- the International Maritime the exhaust of a ship are from Lagos; Nigeria... BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 9

When an economist of his The Deeper Anxieties stature makes such specious Investing in Data Saves Lives claims, one can only wonder a peak in cases and deaths on the contributions of oth- if there isn’t something else that proved to be flatter and ers. of the Inflation Hawks on his mind. So far as I know, no econo- later than other models So, as governments, de- To be sure, there are some mist has ever before sug- were projecting. Accurately velopment banks, and ma- actual price risks. A big one gested that savings, as such, predicting needs enables a jor humanitarian and de- is financial speculation – in cause inflation. more effective humanitar- velopment agencies reflect oil, metals, timber for home Likewise, while it’s true ian response. on the first year of the pan- construction, and so forth. It that when the Fed buys up But models are only as demic response, as well as is not uncommon for finan- unwanted private debts, good as the data on which on discussions at the recent cial players to bid up prices mostly from banks, the sell- MARK they rely. And, to prepare World Bank Spring Meet- by taking these goods off ers get cash, shielding them for the next crisis, the world ings, they must recognize the market early in a boom. LOWCOCK JAMES K. from losses they might oth- needs to obtain and share the crucial role data will (The Chinese know this and erwise have suffered, this better data. play in recovering from this GALBRAITH are duly cracking down on protection has no direct The guiding principle crisis and preventing future the hoarding of copper and James K. Galbraith connection to their lend- behind our model, which ones. Filling gaps in critical other metals.) is Professor of ing habits. As the economist we developed with the data should be a top prior- Another risk would Hyman Minsky pointed out, Johns Hopkins University ity for all humanitarian and Government emerge if the Fed took the banks make loans when they Applied Physics Labora- development actors. and Chair in advice of inflation hawks. For have creditworthy custom- tory, was to support short- Governments, humani- most businesses, interest is Government/ ers. They neither lend their term operational decision- tarian organizations, and a cost like any other, and an Business Relations reserves, nor do they need RAJ making to protect and save regional development increase in that cost would at the Lyndon B. reserves in order to lend. more lives in humanitar- banks thus need to invest in be passed through, in part, to SHAH Next is the claim that the ian crises. In addition to data collection, data-shar- Johnson School of consumer prices. It is inter- Fed’s forecasts of future low Mark Lowcock Afghanistan, we used the ing infrastructure, and the Public Affairs at the esting that Summers doesn’t interest rates are inflationary. model in the Democratic people who manage these mention either of these, is UN Under- University of Texas at Actually, the Fed’s interest- Republic of the Congo, processes. Likewise, these which could be mitigated Secretary-General Austin. From 1993- rate forecast is contingent Iraq, Somalia, South Su- stakeholders must become with tough financial-sector on its inflation forecast, and for Humanitarian dan, and Sudan. We in- more adept at responsibly 97, he served as chief regulation – and, of course, its current position is that it Affairs. Raj Shah cluded COVID-19-related sharing their data through technical adviser by not raising interest rates. expects price pressures to be data adjusted for underre- open data platforms and But deeper worries may is President of for macroeconomic transitory, and will react by porting, as well as data on that maintain rigorous in- be lurking beneath the sur- The Rockefeller reform to China’s raising rates if that turns out mobility patterns, health- teroperability standards. face of Summers’s essay. One to be wrong. If the Fed agreed Foundation. care infrastructure, and Where data are not State Planning concerns that $2 trillion in with Summers about future underlying vulnerabilities available, the private sector Commission. He is the savings. Through direct pay- EW YORK inflation, it would have said of the population result- should develop new sourc- ments and expanded unem- – When the author, most recently, so in its inflation forecast; ing from food insecurity es of information through ployment insurance, a fair COVID-19 of Inequality: What the interest-rate forecast has or medical comorbidities innovative methods such as amount of that sum went to pandemic be- no independent role. such as diabetes. using anonymized social- Everyone Needs to working-class households – gan in March Summers then points Our experience of build- media data or call records Know. the first big chunk of change N2020, Afghanistan had only to the $3 trillion of fiscal ing a predictive model, and to understand population for many such families in 300 ventilators and two stimulus already enacted. its use by public-health of- movement patterns. Data decades. Having some cash intensive-care units. Early But some $2 trillion of this is ficials in these countries, sharing, of course, depends could make them less likely epidemiological models USTIN – In a stored in private savings for showed that this approach on trust. The world must to borrow – and thus less de- predicted that the country, recent com- now, so this point is redun- could lead to better hu- therefore heed the World pendent on banks. Workers with a population of about mentary for dant with the first one. Fi- manitarian outcomes. But Bank’s recent call for a new might even hold out for high- 38 million, would experi- The Washing- nally, he mentions “soaring it was also a reminder that social contract for data er wages, creating the “labor ence a peak of up to 520,000 ton Post, former stock and real estate prices.” significant data challenges, based on shared social and shortage” of which Summers cases and 3,900 deaths per USA Secretary of the Trea- Yet we heard no such warn- regarding both gaps and economic value, equitable speaks (at least temporarily). day by the beginning of sury Lawrence H. Summers ings from him in the late quality, limit the viability benefit, and fostering con- More generally, when people summer. Facing the pros- stated that “the consumer 1990s, when he was Treasury and accuracy of such mod- fidence that data will not be have a bit of a financial cush- pect of ten million cases price index rose at a 7.5 per- secretary during a massive els for the world’s most misused by those who col- ion, they are harder to boss within a matter of months, cent annual rate” in the first stock boom. And rightly so: vulnerable countries. For lect it. around. aid workers and govern- quarter of 2021. I could not the boom did not cause an example, data on the prev- The global humanitar- A second source of anxiety ment officials braced for a reproduce this number from increase in inflation. alence of cardiovascular ian system is highly effec- may be spotted in Summers’s public-health catastrophe. the Bureau of Labor Statistics What is really at work diseases was 4-7 years old tive, but today’s needs are call for “clear statements that To help decision-makers CPI-U website, which re- here? Summers may simply in several poorer countries, unprecedented. A record the United States desires a understand where to focus ports a year-on-year increase be attempting to revive the and not available at all for 235 million people world- strong dollar.” This is the se- their limited resources, the (April 2020-April 2021) of old Phillips curve concept, Sudan and South Sudan. wide, up nearly 40% from cret angst of the hard-money United Nations Office for 4.2%, driven largely by a which states that, as unem- Globally, we are still 2020, are expected to need men, an insecure lot who the Coordination of Hu- sharp 49.6% rebound in gas- ployment falls, wages – and missing about 50% of the humanitarian assistance fret that their position on manitarian Affairs (OCHA) oline prices from their pan- therefore prices – rise. But data needed to respond and protection this year. the global totem pole might and The Rockefeller Foun- demic crash. When food and if this pattern ever existed, effectively in countries ex- Hunger is on the rise, in- not be entirely secure. Per- dation used actual data for energy prices are excluded, it disappeared 50 years ago, periencing humanitarian ternal displacement is at haps they are right. Today’s Afghanistan – including the inflation rate over the and even the slowest-think- emergencies. OCHA and its highest level in decades, dollar-centered world re- COVID-19 infection rates past year comes to just 3%. ing economists largely aban- The Rockefeller Founda- severe weather events are flects the power alignments and locations of health- Odder still is Summers’s doned the Phillips curve by tion are cooperating to pro- more common, and dis- of the period between the care facilities – to project rationale for projecting fu- the mid-1990s. Since then, vide early insight into cri- ease outbreaks are increas- end of World War II and the the number of cases, hos- ture inflation risks: almost all new US jobs have ses, during and beyond the ing. Meanwhile, the gap be- end of the Cold War in 1989. pitalizations, and deaths “Inflationary pressuresbeen created in the services COVID-19 pandemic. But tween humanitarian needs US power has since eroded, over a four-week period. are mounting from the boost sectors, where “tight” labor realizing the full potential and the financing available opening the possibility that This more realistic forecast in demand created by the $2 markets have little effect on of our approach depends to address them is growing the world’s monetary system helped officials prepare for trillion-plus in savings that wages and none on consum- wider. could one day flip. Americans have accumu- er prices. High-quality data en- That may not happen So, as governments, lated during the pandemic; Moreover, today’s US able policymakers fac- anytime soon. But if and from large-scale Federal Re- labor markets aren’t even development banks, and ing crises to align limited when the moment comes, it serve debt purchases, along close to tight. The ratio of resources with greatest will follow from decades of major humanitarian and with Fed forecasts of essen- employment to population is need, and the COVID-19 decline, from better strate- tially zero interest rates into still at least four percentage development agencies reflect pandemic has highlighted gies pursued elsewhere, from 2024; from roughly $3 trillion points below where it was a the need for more of it. The the self-inflicted wounds on the first year of the pandemic in fiscal stimulus passed by year ago, and it seems to be world must take that lesson of the Reagan, Clinton, and Congress; and from soaring flattening after a sharp re- response, as well as on to heart by investing in the Bush eras, from the sacri- stock and real estate prices.” bound. That means there are discussions at the recent World data infrastructure and hu- fice of America’s industrial This is odd logic, begin- still about five million people man capacity required to base in the 1980s, from the Bank Spring Meetings, they ning with the conjecture that who were working in 2019 get ahead of crises, predict fragility of the global order savings cause inflation. John but are not working today. must recognize the crucial role future needs, and trigger that emerged in the 1990s, Maynard Keynes argued The reasons are unknown. responses earlier. The re- and from the military over- data will play in recovering from the reverse: excess savings Perhaps employers haven’t turn in lives saved would be reach of the 2000s. Against all are withheld from demand, wanted them back, or the this crisis and preventing future enormous. that, a few “clear statements” causing unemployment. And jobs on offer aren’t very won’t mean much. ones. Filling gaps in critical data Summers’s own neoclassi- good. Maybe they will return cal school normally holds later – this year or beyond – should be a top priority for all that high savings are a good when the buffer provided by humanitarian and development thing, because they sustain all those savings runs low. actors low interest rates and lead to What, then, is driving more business investment. Copyright: Project Syndicate, 2020. Copyright: Project Syndicate, 2020. Summers’s inflation fear? www.project-syndicate.org www.project-syndicate.org BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 10 FINANCE & INVESTMENT

STOCKS MARKET COMMODITIES NSE NSE 30 FTSE 100 DOW JONES S & P 500 FTSE/JSE NASDAQ SYMBOL PRICE CHANGE %CHANGE VOLUME OIL 69.52 0.71 1.032 293,843 38,726.10 1,573.18 7,069.04 34,737.94 4,228.07 67,825.02 13,808.11 BRENT 71.79 0.48 0.67 211,840 0.05 108,552 CURRENT +0.45% 1.00 0.07% 0.47% 0.84% 0.05% 1.42% NAT GAS 3.091 1.64 RBOB GAS 2.21 0.008 0.38 29,968 YEAR TO DATE -3.84% 4.08 9.42% 13.50% 12.57% 14.17% 7.14% GOLD 1,893.90 20.6 1.1 220,693 SILVER 27.895 0.418 1.52 73,318 4.4 17,418 COPPER 1,166.90 0.38 4.524 0.061 1.37 85,818 TOP TRADERS TOP GAINERS TOP LOSSERS PALLADIUM Company Volume Value No Equity Opening Closing %Change No Equity Opening Closing %Change 2,841 14.4 0.51 963 WHEAT 685 8.75 1.29 53,516 SOVRENINS 31785047 8347338.63 1 MORISON N 1.03 N 1.13 9.71% 1 CWG N 1.69 N 1.53 -9.47% SOYBEAN 1,582.50 33.25 2.15 73,876 FCMB 28265936 90526599.72 2 VERITASKAP N 0.22 N 0.24 9.09% 2 REGALINS N 0.55 N 0.50 -9.09% CORN 681 19 2.87 128,748 SUGAR 0.26 47,188 3 17.69 1.49 ROYALEX 10846300 7750346 UPL N 1.54 N 1.68 9.09% 3 ROYALEX N 0.78 N 0.72 -7.69% COFFEE 161.55 3.95 2.51 26,473 FIDELITYBK 10291467 23119369.29 4 NPFMCRFBK N 1.67 N 1.78 6.59% 4 LASACO N 1.49 N 1.39 -6.71% COTTON 85.85 1.64 1.95 17,819 REGALINS 9697259 4974912.89 5 HONYFLOUR N 1.16 N 1.23 6.03% 5 AFRIPRUD N 6.20 N 5.90 -4.84% ROUGH RICE 13.285 -0.01 -0.08 212 COCOA 2,449 -6 -0.24 17,558 5-months’ oil price rises fail to ease pressure on Nigeria’s external reserves at $34bn Charles Abuede nomic scenario by econom- ic analysts at FSDH Capital DESPITE A FSDH, United Capital analysts say 2021 Eurobond Research contained in a re- 36 PER CENT search note made available INCREASE in issuance could spur reserves accretion to Business A.M., forecast crude oil price that in 2021: from January to May 2021, “Nigeria’s external re- Nigeria’s external reserves serves will average $34.0 bil- have remained around the lion as the exchange rate is $34 billion band, below pre- quoted at N430 to the green- COVID-19 levels. For the back and positive growth in Nigerian government, ac- the national output by 1.3 tual revenue performance per cent as the economy in the first quarter of 2021 is recovers moderately and expected to receive a boost embraces the new normal from the recovery in oil while the price of crude oil prices. So far, oil prices have averaged $45 per barrel. averaged $68 per barrel, That said, as the economy reaching $72 per barrel at opens up and the govern- the start of June and above ment fully implements in- the 2021 budget benchmark terventions to stimulate the of $40 per barrel. This im- economy, the external re- plies an inflow into the ex- serves will climb to $38 bil- cess crude account. lion on a best-case scenario Nigeria’s economic re- if the exchange rate stays at covery is yet to relieve pres- N380 to the dollar, oil price sure on its gross external rises significantly above $53 reserves and exchange rate per barrel and the demand on the back of the coronavi- for Nigerian crude improves rus pandemic which led to a L-R ; Mbanugo Udenze, partner, Mbanugo Udenze and Co. [ Mbanugo Udenze and Company ]; Babatunde Olakunle, director, C and as economies recover while I Leasing Plc; Andrew Otike-Odibi, managing director/CEO, C and I Leasing Plc; Femi Ademola, director, Cordros Capital Limited contraction in the country’s Nigeria produces 1.9 mil- ; Chukwuemeka Ndu, vice chairman, C and I Leasing Plc, after the signing ceremony for the 10billion Naira corporate bond in C lion barrels per day. real gross domestic prod- and I Leasing Plc, in Lagos recently Image by Pius Okeosisi. ucts (GDP) by 1.92 per cent “On the worst-case sce- year on year in 2020 and reserves and exchange rate. gaining 28.5 percent on a at United Capital Research announced plans to borrow nario for the reserves, it also caused both demand Year to date, Nigeria’s gross year to date basis. As ana- have asserted that the at- N2.1 trillion (estimated at will average at $28 billion if and supply shocks for Ni- external reserves have lost lysts have highlighted, the tempt of the federal govern- $5.5 billion using the official the gross domestic product geria, as the price of crude 3.9 percent of its value from rally in the crude oil mar- ment to borrow from the in- exchange rate) from the in- growth contracts to -2 per oil declined 24 per cent in $35.65 billion in January to ket had not filtered into the ternational debt market and ternational debt market. cent year on year with the the same year due to lower $34.3 billion at the start of nation’s external reserves sustained positive momen- “While we do not antici- oil price plunging below demand and supply glut. June 2021. as the market is a futures tum of oil prices in the mar- pate Eurobond issuance of $30 per barrel as a result Consequently, Nigeria’s ex- A glimmer of hope was market. Thus, the improved ket could further strengthen this magnitude, we expect of rapidly increasing death ternal reserves declined by witnessed in the reserves dollar inflows are just be- Nigeria’s gross reserves in the FG to attempt rais- toll from covid-19 and weak 8.2 per cent in 2020 while after it surged to $36.1 bil- ginning to trickle into the the third quarter of 2021. ing a similar $3.3 billion it implementation of business the foreign capital inflows lion in January following reserves. Also, it is maintained by planned to raise last year support initiatives,” they fell by 60 per cent from $24 the reopening of the na- Nevertheless, economic analysts that the apex bank while funding the rest via concluded. billion in 2019 to $9.7 billion tional borders, continuous experts have projected that is likely to stay reluctant in multilateral sources. In our In conclusion, as eco- in 2020, the country record- positive rally in the price of the reserves, which current- its significant forex market opinion, it could further nomic activities resume ed its largest trade deficit Brent crude in the global ly hovers around the $34 bil- interventions pending the strengthen gross reserves in across several activity sec- of N7.4 trillion in the same market and several efforts lion mark, are expected to period the external reserves the third quarter of 2021. tors, there is an anticipation year. by the apex bank to defend slow down in the short term cross the $40 billion mark. “Lastly, we think this of improved economic re- Although the GDP has the local currency which due to lower than anticipat- “Going forward, we ex- bodes well for the FX mar- covery in subsequent quar- recorded two consecutive has seen immense pressure ed foreign investment and pect the impact of higher ket, thus improving FX li- ters. However, the need to expansions in the final three from increased demand oil inflows. Meanwhile, the crude prices to continue quidity conditions. That continue attracting capital months in 2020 and the first for the greenback over the planned issuance of Euro- over the coming months. said, we believe the CBN will inflows to boost foreign re- quarter of 2021, external re- past months. The rebound bond by the government is In addition, we expect this remain reluctant in resum- serves, support the budget serves and exchange rate re- in external reserves to $35.2 expected, according to ana- to be further aided by the ing significant interventions and ensure exchange rate main under pressure. High- billion from $34.9 billion at lysts, to provide some relief federal government’s plan in the FX market until the stability would motivate the er crude oil price in the first the start of March 2021 re- in the market and boost ex- to issue Eurobonds as part external reserves cross the MPC to keep interest rates five months of 2021 was not flects the impact of the rally ternal reserves in the short of its debt programne for $40 billion mark,” United high in subsequent meet- enough to eliminate pres- in crude oil prices in recent term. 2021. We recall that as part Capital analysts concluded. ings. sure on Nigeria’s external months, with Brent crude Consequently, analysts of the 2021 budget, the FG Furthermore, a macroeco-

IMO, energy... concept market friendly. If the part of owners and op- process, vessels owners and process constantly modi- the governments of various the energy produced from a erators of various maritime crew still need to guarantee fied to suit the purpose for countries and states are do- continued from page 9 ship’s main engine is chan- fleets. Another area where unfettered access to their fa- which it is created. However ing to reduce CO2 emissions gladiators embrace and see neled to other needs like energy efficiency needs to cilities to ensure compliance a lot more needs to be done; amongst others. it as a means of reducing the powering the cooling sys- be closely observed is the with this all important drive. like incorporating how well operational, technical and tem, workshop machinery, area of compliance on the Successful audits have so a government or subregion Thank you very much for financial burden of maritime amongst others, there will part of the owners, crew and far been recorded and more fleet is performing on the your time. business. The IMO has the be a lot of energy and re- the vessel. Though IMO has audits are still needed to be energy efficiency chart. This responsibility to make this sources conservation on released a thorough audit carried out with the audit is expected to include what ????

BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 FINANCE & INVESTMENT 11 CAPITAL MARKETS securities by volume with NASD OTC a total of 8.2 million units. Domestic Equities Market Also, Lighthouse Financial investors gain Services (3.4m units), Cen- tral Securities and Clear- Bulls reign opens June on capital N15bn on ing System (0.46m units), positive price FrieslandCampina Wamco (0.11m units) and NIPCO appreciations in small-cap stocks movements (0.1m units) followed in that THE NASD order to the fifth most traded Stories by Charles Abuede Market analysts expect profit-taking, mixed OTC SECURI- stock by volume traded in the INVESTOR TIES Exchange week. SENTIMENT bargain hunting to drive activities this week Index closed the On the other side of the is now thread- first trading week in June on top traders, the week closed ing on a posi- a positive note with the NSI with Nigerian Exchange tive path as the local equi- return increasing by 2.78 per Group (N164.9m) ranking ties market rebounded last cent to close at 773.22 points top among the five most week with trading closing against 752.3 points, while traded securities by value, in the green following con- NASD Security Index year followed by Niger Delta Ex- secutive positive sessions to date returns increased by ploration and Production and some capital appre- 4.25 per cent. (N26.2m), FrieslandCampi- ciation, especially among In addition, NASD inves- na Wamco (N13.1m), Central the small-cap stocks. As a tors gained N14.87 billion in Securities and Clearing Sys- result, the All-Share index value while the market capi- tem (N8.4m), while NIPCO rose 1.2 percent week on talisation closed at N549.61 (N7.4m) stood as the fifth week to 38,726.10 points, billion compared to N534.74 most traded security by value while the market capitali- billion as of the previous for the week. sation increased to N20.19 week resulting from a posi- Leading the gainers’ pack, trillion and the market year traded stocks by volume geria (+2.5%). el of investor sentiment tive movement in prices. NIPCO closed the week at to date return improved to were Zenith Bank (74.2m Similarly, the insur- strengthened to 1.9x from On the other hand, N73.70, representing a 10 -3.8 per cent. units), Sovereign Trust ance and banking indices 1.0x last week as 32 stocks the level of trading activ- percent increase from the Although market inves- Insurance (56.7m units) advanced, up 1.2 per cent gained against the 17 that ity dipped as there was a 70.2 previous close of N67. Also, tors made a profit of N244.5 and Fidelity Bank (52.8m and 4 basis points week on declined. University Press percent decrease in the total FrieslandCampina Wamco billion last week, analysts units); while Zenith Bank week respectively as Wapic Limited (+43.6%), Mori- value traded during the week closed the week at N128.50 expect trading sessions to (N1.7bn), Seplat Petroleum Plc (+9.3%), Cornerstone son Industry (+20.2%) and to N221.89 million com- representing a 5.99 per cent be a mix of bargain hunting (N909.5m) and GTBank Insurance (+3.7%) and GT- Vita Foam (+10.9%) led the pared to the previous week’s increase from the previous and profit-taking activities (N507.8m) led by value. Bank (+2.3%) gained. On top gainers while CWG Plc N744.31 million, while the close of N121.23. Central Se- this week without ruling Total performance the other hand, the con- (-26.1%), Royal Exchange volume of total trade also re- curities and Clearing System out the possibility of some across the sectoral fronts sumer goods and oil & gas (-11.1%) and CAP Plc corded a 26.3 decline to 12.5 closed the week at N18.56 profit-taking. was bullish as 4 indices indices declined by 0.4 (-10.1%) led the decliners. million units compared to representing a 5.97 per cent In a similar vein, the closed in the green with the per cent and 0.8 per cent The NSE 30 Index in- 24.8 million units in the pre- increase from the previous level of market activity im- industrial goods and ICT from the last week’s perfor- creased by 1 per cent to vious week. close of N17.53 and the Niger proved slightly as the aver- indices leading the gains mance, respectively; due to close at 1,573.18 points A look at the top traded Delta Exploration and Pro- age volume and value trad- with 2.6 percent and 1.3 price declines in Champion from 1,552.29 points as on securities for the week saw duction closed the week at ed increased 3.9 percent percent week on week, re- Breweries (-9.9%), Nason the previous week’s close. the week close with Nigerian N300 representing a 2.57 per- and 0.5 percent to 215.5 spectively, reflecting price (-8.8%) and Seplat Petro- Market turnover closed Exchange Group ranking top cent increase from the previ- million units and N1.9 bil- increases in Dangote Ce- leum (-1.2%). with a traded volume of among the five most traded ous close of N292.48. lion respectively. The most ment (+3.5%) and MTN Ni- Meanwhile, the lev- 75.65 million units.

DOMESTIC total volume and value of se- 40,270.72 points at the start INVESTORS curities traded rose by 26.90 of the year. HAVE continued Tight FX fails to halt local investors’ per cent and 8.46 per cent, Nonetheless, all equity to dominate ac- respectively. There was a market indexes, except the tivities on the local bourse FPIs reign on NGX with N132bn 10.18 per cent increase in the NGX ASEM index, posted in spite of the situation in average daily value traded positive one-year returns. the currency market, with from N4.89 billion or $12.69 A cursory look into the its attendant illiquidity level million in Q1 2020 to N5.39 sectoral fronts by perfor- in the FX segment, as their billion or $13.19 million in mance during the review pe- total share of transactions the period under review. In riod gave the snapshot that printed 82 per cent in April the same vein, the average the ICT sector was the best 2021, compared to 82.2 per daily volume of securities performing sector during the cent in March, while foreign traded grew by 28.91 per quarter as it recorded a 127.7 investors accounted for 18 cent to 499.52 million units per cent 52-week change and per cent of the total transac- in Q1 2021, from 387.50 mil- a market capitalisation of tion, and higher by 20 per- lion units in Q1 2020. At the $16.58 billion or N6.8 trillion. centage points from 17.8 end of the quarter, the aver- It was followed by the indus- percent recorded in the pre- age price-earnings (PE) ratio trial goods sector with $16.3 vious month, as contained in of the NGX’s listed equities billion or N6.7 trillion; finan- market performance data re- stood at 87.25 while equity cial services and consumer turnover velocity was 6.05 leased by Nigerian Exchange tions reflects increased buy- lion in April 2021. However, per cent from N3.6 trillion in goods sectors, with $9.3 bil- per cent. (NGX). ing enthusiasm as investors the institutional composi- 2007 to N1.4 trillion in 2020, lion or N3.8 trillion and $5.5 Consequently, the total The overall data are, how- sought to take advantage of tion of the domestic market whilst foreign transactions billion or N2.23 trillion in value of foreign transactions ever, an indication of a gen- market dips to gain exposure increased by 20.32 per cent increased by 18.45 per cent capitalisations, respectively. on the exchange stood at eral bearish condition at play to high dividend yield stocks. from N79.30 billion in March from N616 billion to N729 Performing from the bottom N150.23 billion or $370 mil- in the local bourse as aggre- In April 2021, the total value 2021 to N95.41 billion in billion over the same period. was the natural resources lion between January and gate transactions still points of transactions executed by April 2021. However, total domestic sector with $20.5 million or March 2021; though, foreign to a decline. domestic investors outper- Furthermore, a break- transactions accounted for N8.4 billion in market cap, transactions accounted for According to the data formed transactions execut- down of the total transac- about 74 per cent of the total as well as the healthcare 22.21 per cent while domes- polled by the Nigerian Ex- ed by foreign investors by 64 tions executed on a month transactions carried out in and conglomerates sectors tic transactions accounted change Group (NGX) from percent. on month basis showed that 2020, whilst foreign transac- that recorded $85 million or for 77.79 per cent of the total market operators on their do- In line with projection between March and April tions accounted for about 26 N34.7 billion and $152.3 mil- transaction during the first mestic and foreign portfolio by market analysts that do- this year, the total domestic per cent of the total transac- lion or N62.23 billion in mar- quarter of 2021. investment (FPI) inflows for mestic investors will remain transactions decreased by tions in the same period. ket cap between January and The NGX began the 2021 the month of April 2021, total dominant players in the eq- 29.78 per cent from N187.85 Though the transaction data March 2021. trading year on a high note transaction decreased 30.01 uities market until the FX sit- billion in March to N131.91 for 2021 shows that total for- Meanwhile, the large-cap following the bullish run ex- per cent to N159.9 billion or uation is remedied, the insti- billion in April 2021. Similar- eign transactions stand at firms on the exchange per- perienced in the last quarter $389.9 million from N228.49 tutional investors in the local ly, total foreign transactions N178.25 billion, whilst total formed largely and recorded of 2020. Although, the opti- billion or about $560.55 mil- bourse outperformed retail decreased by 31.05 per cent domestic transactions are $39.74 billion or N16.24 tril- mism that shaped the capi- lion transacted in March investors by 44 per cent. from N40.64 billion or about N658.21 billion. lion in total market cap while tal market at the beginning 2021. The performance of the A comparison of domes- $99.7 million to N28.02 bil- In other parts of the data the mid-cap and small-cap of the year declined towards reviewed month when com- tic transactions in April and lion or about $68.31million reported by the Nigerian Ex- companies’ performances the end of Q1 2021. This can pared to the performance prior month (March 2021) between March and April change Group (NGX), for the were noticeable as they re- be seen in the return posted in April 2020, which stood revealed that retail transac- 2021. first three months in 2021, corded about $7.7 billion or by NGX All-Share Index (ASI) at N128.67 billion, shows tions decreased by 66.37 per Meanwhile, over a 14- trading activities recorded N3.14 trillion and $2.57 bil- which closed the quarter at that total transactions in- cent from N108.55 billion in year period, domestic trans- an advancement when com- lion or N1.05 billion during 39,045.13 points, signifying creased by 24.29 per cent. March 2021 to N36.50 bil- actions decreased by 59.54 pared with Q1 2020 as the the review period. The growth in total transac- a 3.04 percent decrease from ?????

BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 12 FINANCE & INVESTMENT FIXED INCOME & MONEY MARKETS Stories by Charles Abuede SENTI- Investors focus on next T-bills auction despite MENTS ACROSS THE FIXED in- come space were mixed sentiments in fixed income space largely mixed last week as ly, performance was positive bond participants were at the long-end as the 364- buy-side driven and Open day instruments’ yield fell by Market Operations (OMO) Naira fell N7 w/w to trade at N502/$1 8 basis points to 9.5 per cent. participants were sell-side driven with Nigerian Trea- on the street; appreciates at NAFEX Bonds Market sury Bills (NTB) participants Performance in the local largely on the sidelines. Ana- bond market was bullish last lysts anticipate the market week as a result of buying in- to trade in a similar fashion terest associated with attrac- this week as investors’ focus tive yields. Consequently, shifts to the upcoming NTB the average yield declined 30 auctions. Meanwhile, tepid basis points week on week trading across the bonds and to 12.1 per cent. There were OMO segments of the mar- buying interests across ten- ket is also expected as in- ors with the short-end of the vestors continue to monitor curve advancing the most market developments. as yield inched higher by 38 basis points week on week. Currency Market Also, yields on the medium At the parallel market, and long-end of the curve rates opened at N495 to the rose 28 basis points and 27 greenback and closed at basis points week on week N502 to the dollar, depreci- respectively. ating by N7, week on week. Performance in the sub- At the Investors’ & Export- Saharan Sovereign Euro- ers’ (I&E) window, the NA- bonds market was bullish FEX rate opened the week at as average yield fell 7 basis N412 per dollar and closed points week on week to 7.2 at N410.75 to a dollar on per cent due to buying inter- Friday, thus appreciating by L-R; Olubukola Olonade-Agege, company secretary; Edo Ukpong, chairman, and James Ogungbemi, managing director/CEO, all of est in the Zambian 2022 and N1.25 week on week. How- RAK Unity Petroleum Company Plc, at the 18th annual general meeting of the company in Lagos at the weekend. 2024 instruments as yields ever, the level of activity in Image by Pius Okeosisi contracted by 37 basis points the I&E window reduced by and 30 basis points week 30.2 per cent to $695.5 mil- price of N436.48 received the Thursday conducted an billion; Subscription: N4.0 on week respectively. Con- lion from $996.6 million re- most buying interest during Treasury Bills and Mon- OMO auction worth N20 billion; Sale: N4.0 billion) versely, the Ghanaian 2022 corded in the prior week. the week with an additional ey Market billion. The demand for the was undersubscribed 0.8x instrument saw sell-offs as Reporting from the subscription of $299.4 mil- In the money market, 348-day instrument auction with a stop rate of 7.0 per yield rose 43 basis points. FMDQ Securities Exchange lion and up by 684.3 per the Open Buy Back (OBB) was the highest (Offer: N10.0 cent. Meanwhile, the Afri- (SE) FX Futures Contract cent week on week; which rate fell 3.7 percent points billion; Subscription: N49.0 Performance was bearish can Corporate Eurobonds Market, the total value of took the total value to $343.1 to 15.0 percent from 18.7 per billion; Sale: N10.0 billion) in the treasury bills second- market closed positive for open contracts settled at $4.3 million. However, the JUN cent from the previous week, as it was oversubscribed by ary market, as the average the week as average yield billion, up by 7.7per cent 2022 instrument with a con- while the Overnight (OVN) 4.9x with stop rate at 10.1 yield rose by 2 basis points declined by 15 basis points or $303.4 million from the tract price of N439.13 was fell by 3.9 percent points to percent. Similarly, the 180- week on week to close at 6.8 week on week to 4.2 per prior week. This was due to the least subscribed, with 15.3 percent from 19.2 per- day instrument (Offer: N5.0 percent. Consequently, the cent following buying inter- the new subscription in the an additional subscription cent respectively. System li- billion; Subscription: N8.8 91-day and 182-day instru- est in Access Bank 2021 and MAY 2022 (contract price: of $4 million and up by 11.8 quidity rose to N130.9 billion billion; Sale: N4.3 billion) ments saw sell-offs as yields United Bank for Africa 2022 N436.48) and JUN 2022 per cent week on week for a week on week from N87.8 was oversubscribed by 1.8x rose by 7 basis points and 5 with yields declining 145 ba- (contract price: N439.13) total value of $38.1 million, billion, due to the N55.5 bil- with a stop rate of 8.5 per basis points week on week sis points and 45 basis points instruments. The MAY 2022 while the other instruments lion OMO repayment. cent. Alternatively, the 89- respectively to 4.7 per cent week on week respectively. instrument with a contract remained flat for the week. Elsewhere, the CBN, on day instrument (Offer: N5.0 and 6.2 per cent. Alternative-

PRESIDENT OF THE ASSO- ABCON warns speculators Europe’s largest banks see market NEWS CIATION of Bu- capitalizing on state of forex to sell reaux De Change above CBN margin cap up 30% to $438bn in 6 months Operators of Ni- AS ECONO- However, in the first three year. The financial institution geria (ABCON), Aminu Gwad- speculators and ensure ex- the BDCs at the rate of 393 to MIES OF THE months of 2021, the market reported revenue that was change rate stability, while the dollar as of Friday”. A bank NEWS abe has said that parallel mar- WORLD begin capitalisation of the global nearly $13 billion, 5 per cent ket activities have for years denying the claim that the official, who spoke on condi- to heal from the banking industry rose 48 per- less than what it announced in become major drivers of the operators bought dollars at tion of anonymity, said: “We covid-19 crisis cent year on year to €7.3 tril- the same period last year and exchange rates and control N393 to the dollar and sold at are still giving them $10,000 that crashed several busi- lion. Also, their shares were reflecting the low-interest-rate over such transactions have N494 to a dollar, representing per BDC twice a week. As of nesses in 2020, the last few not left out on the recovery environment. become burdensome as forex N101 margin. today, we are giving them at months in 2021 (January to pace as they made up for the Elsewhere, PNB Paribas, speculators are capitalizing “ABCON was constrained the rate of N393 per dollar”. May) have seen significant re- 2020 losses. Thus, the total the second-largest bank in on the state of the foreign ex- to bring to the attention of The ABCON executive covery across economies and shareholder return of the Europe, witnessed a 27 per change market and the naira the Nigerian Press Council to council, therefore, reiterated sectors with the combined global top 100 banks outper- cent market cap increase in to sell dollars above CBN ap- advise those misleading the that while its members com- market capitalisation of Eu- formed the market, growing this period. In December, the proved margin. public to diligently observe in ply rigorously with the CBN’s rope’s largest banks climbing 16.8 percent on a quarter combined value of shares of Gwadabe said in a state- whatever they published the regulatory requirement of a by almost 30 per cent in the on quarter comparison, and the French financial giant ment that only CBN-licenced professional ethic of accuracy, predetermined weekly trans- last six months to $438.6 bil- signifying to be the best to- stood at $66.4 billion. Statis- BDCs operate with regula- truthfulness and the right of action margin, it has failed to lion in May 2021 and almost tal shareholder return (TSR) tics show this figure jumped tory guidelines, are regulatory- every individual and organisa- see what informed the news- reaching their pre-pandemic across all industry sectors after to $84.8 billion by the close compliant and operate within tion to a fair hearing. Punch paper’s spurious claim of an levels, official data made avail- western European banks saw of May. international best practices had in a report published on imaginary selling margin. able to business a.m show. their TSR rise by 18.2 per cent Furthermore, the com- and therefore advised foreign Saturday, 29th May 2021, titled It said that while BDCs are 2020 was a challenging year on year. bined value of the shares of exchange users and the gen- “Naira Devaluation: BDCs licensed to offer retail, across year for the European bank- According to official sta- UBS, Europe’s number three eral public to patronize only Get dollars at N393, Sells For the counter foreign exchange ing sector, with some of the tistics, the positive trend con- largest bank by assets and the Central Bank of Nigeria (CBN)- N494” attributed a report to transactions, they, however, continent’s largest financial tinued in April and May as the largest financial institution in licenced bureaux de change an anonymous commercial play critical roles in the econ- institutions finding ways to market cap of the largest bank Switzerland, rose 12 per cent (BDCs) operators to get dollars source. The report is factu- omy and have contributed to cope with the crisis than their in Europe, HSBC, rose 20 per since the start of the year, at the approved rate. ally inaccurate assertions as the economic development United States peers. As the cent since December, and to growing from $50.1 billion Gwadabe alongside the neither do commercial banks of the country like ensuring economic recovery from the $128.7 billion in the last week to $56.3 billion in the last six body’s executive council said fund BDCs nor do BDCs col- order and confidence in the covid-19 accelerated in the in May from $107.2 billion. months. Also, Banco Santand- that CBN-licenced BDCs are lect dollars from the banks,” forex market, providing data first half of the year, global Also, the London-based fi- er SA, the largest Spanish not selling dollars to end- ABCON executive council for monetary policy, acting as banks’ market capitalisation nancial giant reported $5.8 bil- bank, witnessed a much more users above the N2 per dollar stated. channels for CBN Interven- has almost recovered com- lion in its pre-tax profit in the significant increase with its margin set by the financial The report read: “Sources tion in Retail forex market and pletely, reaching their pre- first quarter of 2021, indicating market cap growing by 36 per sector regulator to protect the from some commercial banks creation of over 15,000 jobs pandemic levels. a 79 percent increase year on cent during the period. naira against foreign exchange told our correspondent that among others. the banks were asked to fund ????

BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 FINANCE & INVESTMENT 13 Banking & Finance Charles Abuede NIGE- RIA’S BANK- UBA, Ecobank, Sterling, Crowdyvest ING HEAVY- WEIGHTS, United Bank for Africa in line for top innovation awards (UBA), Ecobank Trans- national, Sterling Bank, investment and savings platform, Crowdyvest, and Wigwe of Access Bank; Uzoka of UBA; Adeyemi of developmental financial institution, Bank of Indus- try (BoI), have been lined Ecobank, in hot race for African Banker of mercialthe International Year Bank up for the highly coveted (CIB), Banque Centrale most innovative finan- Zenith Bank, only Nigerian bank in Populaire, and Attijariwafa cial services firm prize at Bank. the 2021 African Banker Still, within the bank- Awards. The event is held African Bank of Year nomination list ing sector, African Banker annually to celebrate the of the Year will be exam- African banking industry. ining how these banking The innovation in finan- institutions’ chief execu- cial services award is one tive officers and manag- that Nigeria institutions ing directors changed the dominate in the nomina- banking landscape through tion categories that the Af- the offering of top-notched rican Banker released. But and sophisticated services the two big elephants on to grow customer deposits June 23 when the winners and the gross loan book. are expected to emerge Hence, Nigerian bankers will have to be the African such as Herbert Wigwe, Banker and the African Ade Adeyemi and Kennedy Bank of the Year awards. Kennedy Uzoka Ade Adeyemi Ebenezer Onyeagwu Herbert Wigwe Uzoka, who are at the helm The latter has Zenith Bank of affairs at Access Bank, plc as the only Nigerian Ecobank and United Bank bank nominated to slug it for Africa (UBA) join their out among other top banks African counterparts in the across the continent. contest for the best banker For the African Banker on the continent. Other of the Year award, three members in the category top Nigerian bank CEOs, include Admassu Tadesse namely Herbert Wigwe of of Trade and Develop- Access Bank, Kennedy Uzo- ment Bank, Brehima Ama- ka of United Bank for Africa dou Haidara of Banque de (UBA) and Ade Adeyemi of Développement du Mali Ecobank Transnational In- (the Development Bank corporation are in the short of Mali), James Mwangi of list of just seven CEOs to Equity Group Holdings Plc, battle it out for the coveted and João Figueiredo of the title later in the month. MozaBanco. But as growth and com- Commenting on the petition in the financial awards and categories, services industry get thick- Omar Ben Yedder, group er by the minute, the birth- publisher, African Banker ing of innovative services to said: “This year we received ensure seamless banking a record number of entries experiences for customers across all categories and and the sector at large has the awards committee de- become sacrosanct. Hence, Abubakar Suleiman Olukayode A. Pitan Yemisi Edun Nneka Onyeali-Ikpe bated at length to select the identification of finan- the shortlist. Common cial needs and innovatively themes throughout were developing products that the rise of digitisation, the are tailored to meeting the work the banks have done growing demand for these to support businesses of all services has given most fi- sizes during the pandemic nancial services firms the and the importance of in- topmost edge among their novation. All the entries peers. received demonstrated the With over 70 years of incredible resilience of the superior financial ser- banking and financial ser- ing services to customers result of its products offer- Mortgage market. Access Bank. vices provided to small vices industry during these is the pathway to ensuring ings. Crowdyvest is a busi- However, nominees for In the category of in- businesses, corporations, challenging times and how the development of finan- ness entity offering invest- the SME focused bank of vestment bankers, Nige- governments as well as in- important the industry is to cial products suitable to ment and savings products the year, according to the ria’s FBNQuest Merchant dividuals, Africa’s global help soften the economic meet the needs of small with the Central bank of Ni- African Banker, includes Bank joins the likes of bank, the United Bank for impact of the pandemic businesses, corporate or- geria (CBN) as licenced by Nigeria’s leading lenders, EFG Hermes, South Af- Africa (UBA) led the pack and support growth whilst ganisations, groups and the Security and Exchange Access Bank Plc, Ecobank rica’s ABSA, Misr Capital as one of the most innova- leading on innovation to private individuals with Commission (SEC). International, First City S.A.E, and Standard Bank tive financial services firms provide solutions to our their wide range of services Furthermore, the Bank Monument Bank (FCMB), of South Africa as a result on the continent. Also, businesses and communi- and the adoption of a tech- of Industry (BoI), a provid- Fidelity Bank and Nairobi- of the successful privati- the bank has continued ties.” nological mode of banking er of funds access for start- based 4G Capital Limited, sation of Afam Power Plc its dominance as a tier-1 Meanwhile, the Afri- in the face of the coronavi- ups, small and large corpo- a provider of financial lit- and Afam Three Fast Power lending financial institu- can Banker ceremony, rus pandemic which earlier rate businesses joined the eracy training with working Limited, which the mer- tion in Nigeria with a large which has now become a disrupted economic activi- league of most innovative capital loans to help small chant facilitated, as well as footprint across the globe respected and recognised ties, the organisers said in institutions. BOI has over businesses grow sustain- its role in the completion of including in over 20 African industry event celebrating a descriptive note to Busi- the years developed sev- ably. the Dangote Cement’s $208 nations. African banking achieve- ness A.M. eral banking products for With respect to sustain- million or N100 billion Se- Also, Ecobank, the pan ments and held during the Crowdyvest, an impact- large and budding indus- ability, Nigeria’s Access ries 1 Bond. African bank with opera- yearly meetings of the Af- driven cooperative society tries, nations to give unique Bank leads the table in no As stated earlier, the tions in over 36 countries of rican Development Bank, that creates financial solu- and cutting edge technol- particular order. Similarly, African Bank of the year the world, joined the party will include special recog- tions for a community of ogy services which range the likes of Banque Ouest will see Zenith Bank Plc go alongside Sterling Bank nitions including the Life- individuals and businesses from the loan application Africaine de Développe- head to head with the Af- among the most innovative time Achievement Award, to achieve short or long process with the use of ment (BOAD), Commercial rican Export-Import Bank financial services compa- Banker Icon Award, Min- term goals while facilitat- technology to the stage of International Bank (CIB), (Afreximbank), Standard nies on the continent. The ister of Finance of the Year ing impactful growth in line financial processing while Nedbank and the Trade Bank Group, Equity Group use of innovative technol- Award and Regional Bank- with the United Nations others on the list include and Development Bank Holdings Plc, Trade and ogy in the offering of bank- ing Awards. SDGs also joins the list as a the Ubuntu Tribe and the (TDB) will slug it out with Development Bank, Com- BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 14 INSURANCE & PENSION BUSINESS

Security P/Close Open High Low Close %Change Volume Value Allco 1.29 1.2 1.3 1.29 1.29 0.00% 1,645,716 2,141,459 Wapic 0.5 0.5 0.53 0.5 0.53 6.00% 3,256,392 1,654,940 Mansard 0.92 0.92 0.94 0.9 0.93 1.09% 3,177,524 2,933,417 Cornerst 0.53 0.53 0.53 0.53 0.53 0.00% 40,786 21,627 NEM 2 2 2.03 2.03 2.03 1.50% 3,117,750 6,332,456 Custodian 5.8 5.8 5.8 5.8 5.8 0.00% 40,786 2,82,206 Linkassure 0.92 0.92 0.9 0.83 0.85 -7.61% 12,287,367 10,276,879 Quoted Insurers Quoted

...INSURANCE ...PENSION ...BROKER ...RISK MGT ...SPECIALTY ...COMPANY ...PEOPLE ...REGULATION Stories by Zainab Iwayemi Why motor vehicle in- surance? HILE Auto Insurance According to the motor MANY vehicles (third party insur- R O A D ance) act, it is imperative that DRIVERS The ‘hit clause’ is constant: car owners purchase motor are quite insurance prior to taking ve- confidentW about their driving hicles out on the roads. In the skill, there is always a need to How prepared are drivers? view of experts, having a ve- have a plan in place to take hicle covered against future care of unforeseen eventu- events avails vehicle owners alities. Even the most profes- a host of benefits. sional drivers in the world are In a conversation with prone to ‘hit clause’. Pius Apere, CEO of Anchor In this context, the hit Actuarial Service Limited, he clause is the tendency of a asserted that insuring motor driver being hit by a vehicle vehicles is highly significant or the tendency of hitting to vehicle owners. another’s vehicle. Situations He said, “It is imperative such as this are best prepared that vehicle owners purchase for by opting for motor vehi- motor insurance prior to tak- cle insurance. ing vehicles out on the roads. What if an accident the users of motor vehicles doesn’t occur? This is a ques- must be insured against tion that insurance sales third-party risks.” people are often asked by While many buyers be- prospective buyers who feel lieve that motor insurance is insurance shouldn’t be their a waste of money, not very top priority especially con- many understand that mo- sidering that so many bills tor insurance policy, over the have to be paid. But a quick long run, has become a very response to that would be a L-R, Kingsley Chikezie, national president Importers Association of Nigeria, Obong Patrick Udoh, board of trustee IMAN and important investment. contradicting question; what Obinna Ekwegu, national coordinator IMAN, during the stakeholders meeting with the states chapter of Importers Association of Nigeria in Abuja. recently Today, motor insurance if it occurs? has gone beyond just bodily Simply put, motor insur- able, the amount of premium ance firms across the country vehicles, as well as to one’s of ₦100,000.00 in the event of injury, covering up to medi- ance is an insurance policy paid depends largely on the offer packaged motor insur- own vehicle while the Lead- a hospitalization due to ac- cal expenses as part of the that protects the policyholder type of products and policy ance products in an interest- way comprehensive motor cident. policy. What is even more in- against financial losses re- of insurance firms. These ing cover to attract members insurance covers against Other insurance com- teresting is that these policies sulting in the event of an ac- days, innovative products are of the public. fire, theft and other damages panies, such as Linkage As- are designed to match the cident or other damages sus- continuously introduced in In addition to the third caused to vehicles. These surance, NEM Insurance, size of buyer’s pocket tained by the insured vehicle. line with the growing pace of party motor insurance poli- damages include death, Allianz, AXA Mansard and One thing all drivers on Its primary use is to provide technology and digitization. cies which cover damages to bodily injury and damages others provide similar servic- the road need to bear in mind financial protection against Today, there are motor in- the other person’s vehicle or to the vehicle or property of es but with a tweak in service is, accidents could be caused physical damage or bodily surance products that allow property up to N1 million, third parties caused by the provision. by anyone, as long as vehicles injury resulting from a traffic policyholders to enjoy health Leadway Insurance for in- insured vehicle(s) as well as With as little as N5,000 continue to wheel across the collision, fire, burglary, theft, benefits as part of the policy stance, offers the third party accidental total and perma- these products have been earth, there is a tendency to etc. rider to the comprehensive plus (autobase) insurance for nent disability to the insured planned for vehicle owners hit or be hit by other vehicles. Motor insurance prod- motor insurance policy. private vehicles. With an ex- to a limit of ₦1 million and to enjoy the protection of the But a motor insurance policy ucts With the basic category cess of N50,000 or 10 percent, insured medical expense hit clause which could come would be there to provide in- While private or com- being third party and com- this insurance covers acci- including that of other ve- anytime without knocking. surance coverage against the mercial vehicles are insur- prehensive insurance, insur- dental damage to third party hicle’s passenger(s) to a limit hit clause. ITH STRAT- Federal civil servants EGIES Heirs’ entry promises shake up in HINGED get group life cover with ON SIM- Nigeria’s insurance industry N9.23bn premium payment PLICITY, come full circle. And I want tradition, a strong track re- private sector as he regarded accessibilityW and affordabil- to thank NAICOM for that. It cord not just of governance the private sector as the en- EDERAL CIVIL madu Buhari at the State ity, and directed at excellent is good when our policymak- but of business success and gine of business and GDP SERVANTS in House, Abuja. and superior service delivery ers, regulators and private business turnaround and growth. According to him, the country now The approved sum for as well as digitally-driven sector leaders begin to un- most importantly, wealth the previous year had been have group life insurance premium will insurance that is customer- derstand that for us to create creation for all. We believe tough owing to the pandem- insurance cover run for a 12 months period centric, Heirs Holdings, employment that our people that prosperity should be de- ic, hence the need to encour- forF the 2021-2022 insur- in the year 2021-2022 and it licensed by the National need and eradicate poverty, mocratized. We believe that age businesses and start-ups. able year following the will be solely for the govern- Insurance Commission (NA- all parts must work together. success for us would not just Sunday Thomas, the com- approval of payment of ment’s welfare programme ICOM) last year to operate “The license we have be about the profit we make missioner for insurance com- N9.23 billion premium by for its employees. as an insurance underwriter, looked for over years, you for shareholders. It will be the mended Elumelu for his re- the federal government for “On behalf of the Head has launched its general came and did it for us and impact we create and how silience, doggedness, and the this purpose. of Civil Service of the Fed- (Heirs Insurance) and life four other companies. You we help to develop the com- determination to add value It comes as part of efforts eration, I will like to report insurance (Heirs Life Assur- have helped to create more munity and create jobs for and to join the rest in build- aimed at the improvement that council today approved ance) arms. The official event job employment in this coun- the people, our own role in ing an insurance sector that of the welfare benefits of the award of contract for the coincided with the commis- try and add to our tax rev- helping to eradicate poverty will lift other sectors of the public service employees appointment of insurance sioning of the company’s enue in this country and add and how we define success. economy. in Nigeria as the Federal companies for group life new building in Lagos. further to overall economic These are things we are used “The timing could not Executive Council (FEC) assurance for federal gov- Entrepreneur and banker, activities,” Elumelu said. to in all our corporate life. We have been more auspicious approved the N9.23 billion ernment employees, public Tony Elumelu, the chairman, Lamenting on the huge have always taken businesses in view of the fact that NAI- as premium for insurance servants paramilitary and Heirs Holdings, expressed GDP and population size that to the next level. “I assure the COM has been rolling out companies responsible for the intelligence community his appreciation of the pres- is underutilized, Elumelu Nigerian public that we will various developmental ini- the management of the for the year 2021-2022 in the ent NAICOM leadership for spoke on the need to work work with NAICOM and our tiatives aimed at deepening group life insurance for sum of N9, 248. 995, 907 and its role in ensuring that the with regulator, finance minis- fellow in the insurance sec- insurance penetration in the federal civil servants in the this premium is for a period insurance arm of the hold- ter and others to ensure that tor and the larger Nigerian country. With the level of country. of 12 months. “This is part ing company got licensed, insurance to GDP ratio get private sector to make sure capitalization of this com- Lai Mohammed, minis- of the government’s welfare assuring that the develop- better whilst also assuring that we change the insurance pany (Heirs Holding) I have ter of information and cul- programme for our public ment would go a long way that leveraging on Heirs track landscape in Nigeria,” Elu- no doubt that the Nigerian ture, made the disclosure employees so that in case of in creating opportunities for record, the insurance group melu assured. insurance market is poised to following a recent meeting death, they are assured that Nigerians. would deliver to the public as Babajide Sanwo-Olu, gov- ride big-ticket risk,” Thomas of cabinet that was presided there would be compensa- “The journey that started expected. ernor of Lagos State, on his said. over by President Muham- tion,” he said. seven years ago has finally “We come with a strong part, pledged support for the BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 EXECUTIVE 15 KNOWLEDGE SERIES In Association with CAREER Claire Harbour side? We struggled to find a story totally devoid of light. Of OW THREE Breaking Bad: Humanitarians course, we did not interview PROFESSION- leaders of companies using ALS who started child labour in Asia or bosses of in purpose-driv- blood diamond mines in Africa, Hen organisations Who Went Corporate who probably never set out to continued to do good after communications and social re- African medic in thirty years, Despite Derek’s repeated Fortunately, recruiters allayed do good as part of their careers. migrating to “the other side”. sponsibility initiatives opened it Derek soon got involved in a assertion that the foundation’s his fears by placing value on It is also worth mentioning When we began to write up to the public and increased host of anti-smoking projects. funds are firewalled as required his transferable skills, such as that we received a pushback this, we thought it might be accountability. She also estab- He was part of the group be- by US law, the WHO has banned his command of many lan- from some professionals who a mirror reflection of an ar- lished a foundation, which still hind the world’s first interna- him from its conferences. Yet, guages, as well as his extensive were perhaps less proud of ticle we wrote about for-profit does important work for society tional health treaty, which led he remains convinced that a network. their career trajectory. What executives moving into pur- and the environment. to sports stadia across over 180 tobacco harm reduction strat- Jean-Marc had a fortuitous is certain is that it is quite pos- pose-driven roles. We had the It became abundantly clear countries to become smoke egy could reduce adult mortal- lunch with a JDC donor, who sible to weave a positive path somewhat naïve and possibly to her that the resources of free. ity rates faster than campaigns wanted to include him in his through industries and sectors judgmental hypothesis that a profit-driven organisations Tired of UN bureaucracy, limited to educating children plan for a venture capital fund perceived to be “bad”, without transition the other way around provided unparalleled oppor- Derek left for a stint at Yale, not to start smoking or vaping. in Israel. Again, he was puzzled compromising one’s values. involved some sort of selling tunities to do more good. This where he discovered the value Based on his calculations, scal- by the offer, but the donor ex- out. Through the diverse stories persuaded Tanja to join Mi- of working with – instead of ing up this strategy could save 3 plained that he trusted him and Nine tips for making the that follow, we discovered some crosoft eight years ago. As she against – the “bad guys” in to 4 million lives per year for the saw his potential as an interface move illuminating advice on how to says, when “you take money the food and pharmaceutical next three decades. between the fund and investors thrive in a career that takes on from the for-profit and donate industries. He participated in Throughout his journey, across the world. 1. Be clear about your true a chiaroscuro quality – a study it to purpose-driven parts … the creation of a private-public Derek stuck to his convictions Over the next few months, purpose and personal values of deep contrasts in light and the feeling is completely Robin- partnership including Novo and avoided taking criticism the offer from the venture before switching. dark. Hoodish!” Nordisk, McDonald’s, PepsiCo, too personally. His advice to fund, called Crescendo, rolled 2. See the move as one that al- She admits that learning to Nestlé and others committed to those who want to change around in Jean-Marc’s mind. lows you to explore new ways of The provocative Serbian be a diplomat has been hard, gradual change “for the better”. the world is “Do the research, As he negotiated terms, such doing good. journalist who enlightened and she still asks those “ques- He felt more and more com- know more than the others, as having the scope to seek 3. Appreciate that resources energy and tech sectors tions that not everyone is ready fortable straddling ideological and explore things far beyond impact investment deals over – money, knowledge or tech- Tanja’s quest for justice and to answer”. She now measures bridges if it meant speeding up your specialised subject.” He pure profit ventures, it occurred nology – are the key to greater human rights started in early her success by whether she has progress towards the preven- also stressed the importance of to him how this looked like a impact. childhood. At 6, she was tak- achieved one positive thing a tion of chronic diseases. delayed gratification, as change move to the “dark side”. But 4. Be prepared to negotiate ing karate lessons “to fight week, by teaching someone That is when PepsiCo per- “takes a long time”. he realised that he loved the your terms and defend your bullies and protect the weak” something, improving a small suaded Derek to head new privilege of being the agent who boundaries. and was soon circulating peti- business function, or helping initiatives aimed at accelerat- A serendipitous path from brings meaning to the donor 5. Know your transferable skill- tions. Pursuing a childhood an organisation. ing the transformation of its public service to venture capi- and that there wasn’t a large sets and be open-minded about dream, she became a journal- While she misses her days portfolio. Backed by CEO Indra tal difference between a donor and using them in novel ways. ist, even though it involved as a journalist, Tanja is also Nooyi, these initiatives focused The son and grandson of an investor. 6. Get ready to have your ego being beaten over the head at lucid about the current state of on creating healthier products Holocaust survivors, Jean-Marc When he started at Crescen- and personal identity tested. student protests by the police, journalism and wonders if she and changing consumer behav- grew up in a socially engaged, do, Jean-Marc was dumbstruck 7. Stay true to your moral com- under the autocratic regime would thrive in that environ- iour. But many in public health expatriate environment. Din- by the contrast between the pass. of Slobodan Milosevic in her ment. Her advice to aspiring accused Derek of turning to ner conversations, whether sleek space full of glass walls, 8. Don’t hesitate to keep a native Serbia. Robin Hoods: “Make the starry the dark side. The fact is, in the in Geneva, Paris or Brussels, fine art and beautiful people, broad mix of activities if it cre- However, after publishing sky together and light your nearly six years he spent at Pep- often focused on human rights. and his previous offices in run- ates a balance. an article criticising police way. A lone star can never give siCo, he helped remove palm After attending boarding school down, often makeshift accom- 9. Spot the links and connec- corruption in one of the few enough light, and so it usually oil from the group’s products in Israel, Jean-Marc went to modation. He soon discovered tions between both worlds and opposition-led newspapers in just burns out on its own.” in Mexico and, alongside other Sciences-Po in Paris, which that he had a special role to be ready to walk that space. the country, Tanja was sub- food giants, trimmed a collec- deepened his sense of civic play. He could be the link to jected to a heavy interrogation The South African doctor tive 6 trillion calories from the responsibility. the real people needing help and forced to leave her career. in corporate America to ad- diet of Americans. Returning to Israel, Jean- on “the field” as well as that of She then worked in schools on vance global health Derek later joined the Vi- Marc entered a yeshiva, or infusing conscience or heart. Claire Harbour is a global digitalisation projects which Growing up in an open- tality Group, a company that religious seminary, before un- An ideological realist, or a real- talent expert, offering services led to a post as the right hand to minded and privileged house- incentivises people to adopt a dertaking law studies. But un- ist dreamer, he brings impact as a coach, adviser, speaker the Minister of Finance. Having hold in South Africa during healthy lifestyle. Although the like his classmates who joined opportunities to the group, and writer on topics related to heard that “other earning op- apartheid, Derek questioned firm had its own, clearly lucra- well-heeled law firms, he took and continues his NGO work people, talent and culture. portunities were significant”, why suffering, physical or oth- tive agenda, engaging with in- roles with the Ministry of Justice alongside. she left a few days later, disil- erwise, was so unfairly dis- surance companies for mutual and the Prime Minister’s Office, Jean-Marc’s advice to any- Antoine Tirard is a talent lusioned. tributed. He chose to pursue profit, evidence-based reports which enabled him to influence one wanting to work at the management advisor and the After further studies, Tanja medicine, a profession where and papers show that the tools human rights, welfare and dias- intersection of the wealthy and founder of NexTalent. He is the landed a role heading a team he could have an impact. he helped develop genuinely pora issues. the field: “Do anything and ev- former head of talent manage- of PR professionals in the Ser- Early on, Derek chose to increased life expectancy. He next joined the United erything when you are starting ment of Novartis and LVMH. bian judicial system. This was a work in epidemiology, at the The latest part of his jour- Nations High Commissioner out. Enrich your horizons and potentially “dark” place, but her frontier of research into how ney to the “dark side” began for Refugees as a legal advisor. thinking. You can see great or Antoine and Claire are the work increasing transparency health was affected by class, after Derek wrote an article Seeing people’s despair as well terrible leadership in the small- co-authors of Disrupt Your resulted in an international ethnicity and education in on “tobacco harm reduction”, as their hopes, he fell in love est of restaurants as well as in Career: How to Navigate Un- prize. She began to understand this deeply divided society. As a public health strategy that with the cause, which led him glass skyscrapers.” With a sense charted Career Transitions and that “good” and “bad” could apartheid faded, the academic seeks to lower the health risks to do volunteer work in NGOs. of curiosity and an open heart, Thrive. meet at interesting crossroads, boycott of South African doc- of classic tobacco products by He was then approached by discover what inspires you. And and that there was potential for tors started to lift, opening up substituting them with e-cig- the JDC, a Jewish relief organ- remember that sometimes the more light. an international horizon. After arettes and other less harmful isation known as “The Joint”, less direct path to your destina- Tanja then chose to use researching HIV and tuber- nicotine products. It attracted to do fundraising work. While tion is the one you are supposed “This article is repub- her vision, conviction and de- culosis, he became interested the attention of the CEO of the causes embraced by JDC to be on. lished courtesy of INSEAD termination to enlighten the in reducing tobacco smoking Philip Morris International, resonated with Jean-Marc, petrochemicals sector. She was Knowledge(http://knowl- around the world. who invited Derek to set up he wondered how he could Bringing light to the dark- edge.insead.edu). Copy- working in one of the “darkest” Joining the World Health an arm’s-length foundation, be of use as he did not know ness industries, but her corporate Organization as their first South Smoke Free World. the first thing about finance. Is there, indeed, a true dark right INSEAD 2020 BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 16 EXECUTIVE KNOWLEDGE SERIES In Association with RESPONSIBILITY Jasjit Singh the financial viability and ef- fectiveness of its approach. It AKING A hopes to serve as a role mod- REAL DIF- el for other preschools to FERENCE increase their efforts towards requires more inclusivity. Alnoor combining Ebrahim similarly describes M the strategy reformulation at your passion with a problem- solving mindset and a rigor- Miriam’s Kitchen as a transi- ous approach. tion from an independent The non-profit Miriam’s “niche strategy” (i.e. provid- Kitchen used to focus on ing meals) to a collaborative serving meals to homeless “ecosystem strategy” that people in Washington, D.C. enabled more fundamental in an atmosphere of dignity change by considering the and respect. Homelessness entire system. itself was seen as an issue it could do little about, so it Mainstreaming social just tried to make the lives of sector expertise the homeless a bit better. But Numerous efforts are un- that changed in 2012, when derway to extend objective its mission was ambitiously consideration of impact be- redefined as “ending chronic yond social sector experts. homelessness in Washing- New digital platforms are ton, D.C.” promising to help ordinary Miriam’s Kitchen joined cating similar projects and donors make effective giv- other regional organisa- designing funding solutions ing decisions based on hard tions targeting the root From Band-Aid to Deep like social impact bonds. data. An example is Impact- causes of chronic homeless- How do you continuously Matters, which employs pub- ness through an interven- Impact: Building Effective learn and improve over time? licly available impact and fi- tion called “Housing First”, Your measurement strategy nancial data from thousands wherein the homeless were needs to be an integral part of charities to estimate their provided their own apart- Social Sector Organisations of your overall strategy, not relative effectiveness within ments without preconditions just a reporting exercise. their intended cause. Charity like first fixing mental health based on an “impact first” measured primarily on how test and what you take for Ensuring this allows your or- Navigator, a leading charity issues or substance abuse business model, or whether well it cut its R&D or train- granted as either obvious ganisation to not only ensure evaluator that used to only habits: The beneficiaries we need to abandon the ing costs? Similarly, non- or beyond your account- its continued effectiveness focus on transparency, gov- could choose how much market completely and go all profits and social enterprises ability. but also build credibility ernance and financial sus- other support they wanted the way to pure charity. The should be asked to focus What is the right mea- among your stakeholders. tainability, recently acquired and when. The approach to- right answer is context-de- not on blind cost reduction, surement strategy for you? Despite a careful needs as- ImpactMatters in order to wards homelessness violated pendent: While being closer but on cost effectiveness in Although purists consider sessment and review of exist- incorporate impact ratings traditional wisdom but was to the market end of the delivering real outcomes. rigorous evaluation methods ing evidence, the first version into its own work. backed by evidence. Rigor- “intentionality spectrum” Do you have a clear and like “randomised control tri- of any impact model is rarely GiveWell is a platform ous research had recently makes financial sustainabil- credible “impact model”? als” the gold standard, many perfect. It is therefore critical that directs philanthropy established that the housing ity and scaling easier, this Once you have clarified your practitioners find them cost- to adopt a problem-solving towards poor-country in- first model was more effec- sometimes comes at the ex- target segment and its real ly, time-consuming and dis- mindset, stay humble and terventions best backed by tive and efficient than tradi- pense of depth. For example, need, the next step is to ruptive. Even so, it is useful curious, and use monitor- evidence, using metrics like tional methods of addressing it is well documented that figure out the logical way to understand such meth- ing and evaluation as tools the number of lives saved homelessness. microfinance’s transition to of realising the outcomes. odologies, as this skill helps to continually refine your per dollar. This is not to say Miriam’s Kitchen exem- a profit-driven sector, while This requires having a ro- you interpret relevant impact model over time. that the developed world is plifies how more and more increasing reach, can lead bust “impact model” (also evaluations carried out else- What kind of funding devoid of opportunities to social sector organisations to serious compromises. called “theory of change”), where, and to understand should you seek? While ad make a difference. Mount- are pivoting from treating What specific segment involving a series of hypoth- the strengths and limitations hoc fundraising campaigns ing concerns about poverty, symptoms of societal ills (e.g. and need are you serving? eses that clarify the path of any approach you adopt like the “ice bucket chal- inequality and inequities as- hunger among homeless Just like we debate the com- from resource deployment for yourself. The delicate bal- lenge” have their place, over- sociated with race, ethnicity people) to the ills themselves petitive advantage of a busi- to outcome realisation. Get- ance, as Mary Kay Gugerty relying on these to attract re- and gender are proof that (e.g. homelessness). Com- ness in strategy courses, we ting clarity on the model is and Dean Karlan put it, is in tail donors can often distract there is very much a place petition for donor dollars need to get more critical a pre-requisite for appro- figuring out what is the “just from pursuing deep impact. for the social sector even in that are being increasingly in asking why a particular priately tracking progress. right” approach best suited The ideal scenario is one more developed countries allocated based on tangible non-profit is best suited to Operational monitoring then for your context. Even if you where a significant fraction like Singapore. It is cheering evidence of impact has also serve a particular need. It helps you track how well do not carry out comprehen- of your resources comes to see that the Singapore accelerated the shift towards is not good enough to ar- you execute on the model. sive evaluations, you could at from long-term funders fo- government and its agencies focusing on outcomes that gue that doing something is Lastly, impact evaluation least use your impact model cused on outcomes, while are not only aware of this matter most. better than doing nothing. can demonstrate the final as a guide to have metrics ensuring alignment of expec- but also committed to sup- But, for most non-profits, There is always an oppor- achievement of the desired in place and monitoring to tations between the funders porting the sector’s vision of achieving meaningful im- tunity cost: The resources outcomes. ensure you are on the right and your organisation to “every person empowered to pact often entails a funda- deployed, such as funding What are your key as- track. avoid future conflicts or mis- live with dignity and in a car- mental re-examination of or staff time, could go into sumptions and account- What evidence and sion drift. Funding agencies ing and inclusive society”. the organisation as it stands. alternative uses. Nobody can ability? In formulating your knowledge already exist? also have much to learn In my recent leadership pro- be the best at everything, so impact model, you should Rather than reinventing the from venture capitalists that gramme “Impact Strategy, a non-profit must focus the make your assumptions ex- wheel every time, we need fund Silicon Valley start-ups. Evaluation and Manage- scope of its work on things it plicit. If you provide so- to get better as consumers Pursuing innovation towards ment for Non-Profits” (run excels at rather than just tak- lar home lighting kits to of external evidence and effective solutions requires in collaboration with Singa- ing on every project coming households without electric- knowledge. For example, in encouraging experimenta- Jasjit Singh is a Professor pore’s National Council of its way. ity in the hope of improving the context of minority kids tion and tolerating inevitable of Strategy and the Paul Du- Social Service), ten themes Are you focusing more on educational outcomes, you from poor households in the failures in the process. brule Chaired Professor of emerged around transition- costs than value creation? are assuming that children US, decades of research has Should you use collabora- Sustainable Development at ing from a “Band-Aid” mind- Social sector organisations will use the lamps to study established that high-quality tion to multiply your impact? INSEAD. He also co-directs set of curing symptoms to are typically under pressure more, and that these ex- preschools lead to better Growing your impact is not the INSEAD Social Entre- maximising long-term out- to minimise costs, especially tra study hours will help outcomes related not just to the same as growing your preneurship Programme comes. ensuring that their overhead their learning. How sure are school performance but also organisation: A multitude (ISEP). What market failure are costs are kept to a bare mini- you that these assumptions employment and crime-free of other “end game” op- you addressing? The first key mum. But this can lead to are valid? Would you hold life. Their cost effectiveness tions can help. Consider the question is why the societal underinvestment in critical yourself accountable for just is also well documented: “Kindle Garden” inclusive need an organisation focuses things like technology, sys- delivery of the kits or actual Each dollar spent can pay pre-school project of AWWA, on cannot be met using a tems and talent, preventing improvement in educational back tenfold in the form of a Singapore-based charity. “This article is repub- purely business approach. them from realising their outcomes? Your answer to future cost saving for gov- Instead of rapidly scaling lished courtesy of INSEAD The next question is whether full potential in terms of such questions should shape ernment budgets. Knowing up, AWWA has chosen to Knowledge(http://knowl- it is feasible to employ a scale and impact. When your measurement strat- such evidence helps make keep the project small and edge.insead.edu). Copy- social enterprise approach was the last time Apple was egy – what assumptions you a “business case” for repli- focused on demonstrating right INSEAD 2020 more than banking BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 EXECUTIVE KNOWLEDGE SERIES In Association with 17 LEADERSHIP ing some numbers on his LinkedIn page early in the pandemic that documented the disproportionately high death rate among Blacks and Hispanics. He immediately got push-back from a few people who criticized him for talking about race. Yet no one challenged the con- versation when data showed how the disease was ravaging the elderly. “As soon as we saw data… on the Black and African American community, then part of the narrative be- came, ‘Well, why are we talking about race?’ Where did that hesitation come from? Where did that push- back come from?” Casey said. “Making sure that eq- uity is being thought about at the outset, not as an af- terthought, is a challenge. It was a challenge for us in the beginning, and it’s a chal- lenge for all of us involved in health care to think about S CHIEF OF going forward.” THE DIVI- SION OF Gen- Creating Equity in COVID-19 ‘Food for My Soul’ eral Obstetrics Through the Mercy/Penn Aand Gynecol- Medicine & The Community ogy for Penn Medicine, Dr. Testing and Vaccine Distribution Vaccine Collaborative, Polite Florencia Greer Polite has Health, also joined the con- high exposure to the public sons why the doctors were Casey said that CVS Health volunteered to administer spent many satisfying work COVID-19 vaccines. She days delivering babies and versation, which was part of and no personal protective vaccinated and encouraged knew it couldn’t get the job Creary’s Leading Diversity@ equipment, and they may the employees to do the done alone. That’s why the remembers vaccinating 80 taking care of her female pa- people in one day, and 70 tients. But it was something Work podcast series. (Listen live in multigenerational same. It was an important company has continuing to the podcast above.) homes — all factors that step, Polite said, because partnerships with nonprof- of them were Black. The out of her regular routine experience was gratifying in that recently became a defin- Part of Casey’s job in- increase the risk of con- most of Penn’s information its, community centers, free cludes figuring out how his tracting and dying from the was being disseminated by and charitable clinics, faith- ways she did not expect, even ing moment in her career. for a doctor used to helping When the COVID-19 company can reach minority disease. email, and many of those based organizations, civic populations to help them The second head is vac- employees are outsourced leaders — just about anyone people. Hesitancy and advo- vaccine rollout began at cacy work is exhausting, she the Hospital of the Univer- get access to health care, cine access. Broadly, that’s and thus, do not have access that can help spread the including COVID-19 test- about how states are getting to Penn email. health care message to those said, but this was “icing on sity of Pennsylvania, Polite the cake.” was worried about the lack ing and vaccines. Since the the doses to cities, towns, The team worked with the who need it most. pandemic began in early villages, and hamlets. More public relations department Borrowing a phrase he “At the end of the day, it of compliance, especially was like food for my soul,” among minority staffers. As 2020, numerous studies have specifically, how are authori- to develop informational heard from local partners, documented the dispropor- ties and health care leaders screen savers that were dis- Casey said that to deliver she said. “It was one of the a Black woman, she under- best days. I came home, and stood vaccine hesitancy; as a tionate toll that it is taking on making sure that the most played across the hospital, vaccines effectively into Black, Hispanic and Native vulnerable people get the especially in break rooms Black and brown commu- my kids were like, ‘You were physician, she felt compelled super tired when you went, to do something about it. American communities. injections with as few barri- where the targeted employ- nities, “You have to have “We’ve all heard the say- ers as possible? ees clock in and out. The trusted faces and trusted and you look way less tired “What was literally keep- now.’” ing me up at night were these ing that your ZIP code mat- The third head of the screen savers specifically places.” issues of hesitancy,” Polite ters more than your genetic beast is vaccine hesitancy, addressed myths about the “Where are the places said. “I made the personal code when it comes to health which Polite pinpointed as vaccine by providing the people typically go, that decision to get vaccinat- care,” Casey said. “You can a problem stemming from facts, Polite said. they’re used to going, that ed on the first day at Penn literally go less than a mile, America’s legacy of systemic The targeted employee they may still be going to Medicine, despite my own and the health care experi- racism and inequality. groups commonly hold during COVID?” he said. personal hesitancy. I’m not ences of the individuals in “We got [to this point] “huddles” with their super- “Is it a community free an early adopter of anything, that part of the community over 400 years. We’re not visors across shifts. Black clinic? Is it their church? Is but I felt like this was an op- can be vastly different than going to turn around in two and non-Black physicians it the grocery store? Where portunity for me to get vac- they are just a mile down weeks or a month,” she said. attended the huddles to is it that people are going, cinated, to be public about the road.” “It’s going to take a lot of very answer any questions about and how can we offer vac- what that experience was Polite agreed, noting that intentional small steps over a the vaccines. These meet- cines there, as opposed like, and to hopefully edu- health care disparities are long time. But we have many, ings were unscripted and to our store? We wanted cate my family, my friends, about racism — not race. many, many people to bring informal, giving employ- to take health care to the and my community and my “There’s nothing inherently along who, quite frankly, are ees a chance to voice their community, not just where patients.” different about a Black or often in leadership positions, concerns and talk comfort- people live, but how they Polite took her advocacy Latinx patient that makes which might make this a ably. live.” a step further, helping to them more likely to die of more challenging burden to These steps, along with COVID, but there are a num- overcome.” others designed to give em- Casey and Polite urged CHINA create Operation CAVEAT at LEBANON ber of systemic factors that Through Operation CA- ployees easy, on-site access others who are in lead- the hospital — an acronym UNITED ARAB EMIRATES that stands for Covid Ac- affect that mortality or that VEAT, Polite and her col- to the vaccines, helped the ership positions to find death rate,” she said. leagues tackled these issues hospital make a measurable and evaluate the racial ceptance Vaccine Education DR CONGO in three steps: improvement in vaccine disparities within their and Adoption Taskforce. RWANDA She spoke recently to Whar- ‘A Three-headed Black physicians who compliance, Polite said. organizations, create a were vaccinated created collaborative plan with ton management professors Beast’ UNITED KINGDOM Polite said she thinks a one-page information ‘Trusted Faces and realistic solutions, deploy Stephanie Creary and Aline GAMBIA about COVID-19 as “a three- sheet that was distributed Trusted Places’ the plan, then measure SIERRA LEONE Gatignon about the initiative GHANA ZAMBIA and the broader issue of eq- headed beast” for communi- to departments with the The hospital’s experience the outcomes. Recognize NIGERIA uity in COVID-19 testing and ties of color. First, there is highest number of minority in reaching minority em- the difference between vaccine distribution. David the increased mortality of employees, including envi- ployees was a microcosm equity and equality, and Casey, chief diversity officer minority populations due ronmental services, dietary of the work Casey does to never stop talking about and senior vice president of to COVID-19. Many work- services, patient transport reach out to minority com- it — even when it makes workforce strategies at CVS ing-class Black and His- and materials management. munities across the U.S. people uncomfortable. panic people have jobs with The sheet outlined the rea- Even with 10,000 stores, Casey recalled post- more than banking BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 18 EXECUTIVE KNOWLEDGE SERIES In Association with LEADERSHIP

HEN best out of the people that WHAR- you’re working with.” T O N Want to Become a Better Leader? Grant responded by say- MAN- ing that James’ point was AGE- a good example of how to W rethink an assumption. MENT professor Adam Question Your Assumptions Grant sat down to write “That is brilliant. I have his new book, Think Again: never work here,’” Grant of view. the Covid-19 pandemic, and I wish I had paid atten- to change now how I talk The Power of Knowing said. He said, “I didn’t really Grant said he had strongly tion to [building leadership about this because for What You Don’t Know, he “The big moment for realize that that was a mis- resisted Wharton mov- skills] earlier.’ And my goal years, I have told students, wanted to make the case me was winter of 2018. I take until I had a student ing to an online teaching when somebody finishes ‘What I am going to do is for why executives should went to a bunch of Fortune call me a ‘logic bully.’ I environment, believing a class of mine is that they bring you hard data on reconsider their approach- 500 CEOs and unicorn remember I was in the that the energy of an in- never have that thought soft skills.’ And what you es to how to manage people startup founders. I said, middle of a conversation person classroom would again — that they invest just made me realize is I’m in a modern workplace and ‘Look, we already have with a student making a be lost. in building the leadership still implicitly endorsing embrace new ideas, based good evidence that as long big career decision, and I “I just resisted every skills that are going to be the idea that these skills on systematic evidence. as people are in the office thought that she was very single form of online ed- relevant to amplifying their are soft,” he said. “I think Grant is an internation- half the week, you can get clearly leaning in one di- ucation we were doing, impact.” it actually captures in a ally recognized thought more productivity, more rection, and I was worried but I have completely re- He added, “No matter much more meaningful leader in management satisfaction, higher reten- that she might have some thought that. I had the rich- how high you climb in way, both the importance and workplace dynamics, tion, and no cost to collab- blind spots, so I gave the est conversations that I’ve your career, you cannot and the difficulty of prac- best-selling author, and oration by letting people most passionate argument ever had in a classroom, succeed alone. In fact, the ticing the kinds of skills we the co-director of Wharton work from anywhere the I could in the opposite di- teaching over Zoom,” he higher you climb, the more teach as psychologists…. People Analytics. In an Ivy other half of the week,” rection. said. “For the first time your success depends on There’s no more hard data Exec webinar called “In- he said. “But I’d love to try “She pushed back, in my career, instead of the ability to make other for soft skills. The skills are side the Mind of Professor something smaller. Let’s and I pushed back again. calling on a random hand people successful. And if hard.” Adam Grant” sponsored just run a remote Friday ex- Eventually she said, ‘Adam, that’s up — usually from an you don’t invest with the by the Wharton MBA for periment, give people one you’re a logic bully.’… You extroverted white man by same discipline and the Executives Program, Grant day a week to work from just keep bombarding me default — I could see what same analytical rigor in sat down with Wharton wherever they want. Ev- with data and with facts perspectives were coming figuring out what effec- Dean Erika James, an or- ery single leader I pitched and with reasons, and I into the conversation, and tive leadership skills look ganizational psychologist turned me down.” don’t agree, but I don’t feel then I could choreograph like as you did in opera- herself. The two discussed With the start of the like I can fight back.’” a discussion where people tions or in finance, then the importance of ques- COVID-19 pandemic, This tactic isn’t an effec- built on each other, where you’re actually limiting tioning your assumptions those same companies tive way to communicate they challenged each other, your ability to succeed regarding how to engage have since pivoted to per- because it leaves the other and there was so much in your career.” and communicate in the manent remote work or a person to defend, to attack, depth and so much in- workplace, in order to hybrid model. or to withdraw. clusion of diverse voices 5. Leadership is not become a more evolved “Now I like to come into because I was able to see a “soft skill.” In fact, leader. “If [they] had rethought a disagreement, and as what different people were it’s one of the hardest [their] resistance in 2018, soon as I realize that some- thinking. I want to bring things to master. Following are five key [they] could have had all body has a different point that back into the live class- Dean James chal- takeaways from their dis- of 2018 and 2019 to figure of view, I acknowledge my room.” lenged an assumption CHINA LEBANON cussion: out how to make remote own shortcomings…. It she’s frequently heard — UNITED ARAB work work, before we were invites the other person 4. Success depends on that leadership skill sets EMIRATES 1. Resistance to new going through a global to commit to openness, your ability to make other are “soft skills.” ideas is a common work- pandemic,” he added. too. And then we’re both people successful. That’s In fact, mastering DR CONGO place problem. But em- agreeing to learn some- why investing time into leadership is hard pre- RWANDA 2. Don’t be a “logic bul- thing from each other. It learning effective leader- cisely “because there’s bracing data-driven ap- UNITED KINGDOM proaches can leave you ly.” Instead, acknowledge completely changes the ship skills is so impor- no equation,” she said. GAMBIA better prepared for the your own shortcomings way that I have debates,” tant. “You can’t plug in some SIERRA LEONE GHANA ZAMBIA future. and ask questions to learn Grant said. Grant said, “One of the numbers and get an NIGERIA “I’ve spent most of my about the other person’s things I hear pretty fre- answer. Every circum- life frustrated that I come perspective. 3. Let go of knowledge quently, especially when I stance is different and into workplaces with sys- Grant spoke about a and opinions that are no work with executive MBA it requires your own tematic evidence, and lead- personality quirk of his, in longer serving you well. students, is they’re at a level of emotional intel- ers say things like, ‘Well, which he “doubles down Grant recalled a time point in their careers where ligence, intellect, and that’s not the way we’ve al- and argues harder” when when he had to challenge they say, ‘I did an under- interpersonal savviness ways done it,’ or, ‘That will someone resists his point his assumptions. Before graduate business degree to be able to get the more than banking >>>> ???

BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 INSURANCE & PENSION BUSINESS 19

Security P/Close Open High Low Close %Change Volume Value Allco 1.29 1.2 1.3 1.29 1.29 0.00% 1,645,716 2,141,459 Wapic 0.5 0.5 0.53 0.5 0.53 6.00% 3,256,392 1,654,940 Mansard 0.92 0.92 0.94 0.9 0.93 1.09% 3,177,524 2,933,417 Cornerst 0.53 0.53 0.53 0.53 0.53 0.00% 40,786 21,627 NEM 2 2 2.03 2.03 2.03 1.50% 3,117,750 6,332,456 Custodian 5.8 5.8 5.8 5.8 5.8 0.00% 40,786 2,82,206 Linkassure 0.92 0.92 0.9 0.83 0.85 -7.61% 12,287,367 10,276,879 Quoted Insurers Quoted

...INSURANCE ...PENSION ...BROKER ...RISK MGT ...SPECIALTY ...COMPANY ...PEOPLE ...REGULATION Expert tells engineers value trumps all in buying insurance products Says also necessary to fuel industry growth Stories by Zainab Iwayemi for three reasons: by virtue of being constrained by law, NSURANCE AS A because they have an idea of VALUE PLAYS a sig- what it is and because of the L-R: Segun Odejobi, regional trade marketing manager, Nnewi Region, Nigerian Breweries Plc; Clementina Otabor, channel mar- nificant role in terms value derived in buying an keting manager, traditional mainstream, Nigerian Breweries Plc; Mgbechi Vincent, one of the beneficiaries of Progress Booster; of driving growth in insurance product. Austin Aka, regional business manager, Nnewi Region, Nigerian Breweries Plc, at the presentation of prizes t beneficiaries of Life the insurance industry But he, however, stressed Lager’s Progress Booster, recently andI it should also trump all on the need to see insurance in the decision to purchase as something of value rather an insurance product, an than for any other reasons. so common risk easily wears about risk while fewer people the emphasis on taking per- your business is incapable”. industry expert said during According to him, igno- and tears away at these re- were impacted. sonal responsibility have led He also advised that stake- a virtual webinar by the Pe- rance more than culture is the sources and talent.” He add- “Our unpreparedness and many to listen and take more holders get educated and en- troleum Upstream Sectoral major factor weighing down ed. poor risk management ap- serious personal discussions lightened continuously on Group of the Nigerian Society the acceleration of insurance Highlighting the changes proach exposed us to a wors- with insurers, especially the subject matter. of Chemical Engineers. growth in Nigeria. “The slow that has stricken the post- ening state of poverty and health insurance providers. “A lot of information is While making a presen- pace of insurance growth in pandemic period, the insur- insecurities,” Gam-Ikon said. Imploring engineers to ongoing. I implore you to tation on the theme, ‘Insur- this part of the world is not ance expert said dealing with He added that the advent seek insurance cover for tap into some of these op- ance Requirement Amid because of culture, it is be- risk before COVID-19 was of the COVID-19 has led to personal self first, he said, portunities. Ask questions, COVID-19: Implications for cause we are ignorant. majorly characterized by ig- changes in a few things as it “Your business is, first of all, get answers and don’t get Business’, Ekerete Ola Gam- “Nigeria is an endowed noring, self-managing and has taught all that we no lon- yourself! Know yourself com- into insurance because your Ikon, an insurance industry nation of predominantly transferring them to formal ger have to ignore risks and pletely, protect yourself and family member works for an management and strategy poor people because our re- and informal insurers as the do more of self-managing share the risk of any unfortu- insurance firm,” Gam-Ikon consultant, noted that peo- sources and talents are not focus was on what organisa- and transferring them to for- nate and unexpected occur- admonished. ple basically buy insurance well protected and shared, tions and government did mal and informal insurers as rence. When you are unwell, Nigerian governors’ wives canvass NHIS cover for cancer HE WIVES OF of healthcare in Nigeria ment. joint creation of awareness disease whilst also noting cancer easy and possible. We NIGERIAN GOV- would not suffice to man- “We have to incorporate amongst women about the that the event aims to walk want patients to know where ERNORS have age the treatment of cancer. cancer care into the health importance of vaccination, clients through their jour- to go when they are being di- canvassed for the As a result, a reserve source insurance scheme as a way screening and treatment. ney, create awareness about agnosed to get specific treat- inclusion of can- of funds is needed to man- to encompass the cost of She said, “We call on gov- the National Cancer Control ments because cancer is not cerT treatment cover under age the cost incurred in the managing the disease,” she ernment and other stake- Plan which needs support, a one size fits all ailment. the National Health Insur- course of treatment. said. Amina Abubakar Bello, holders alike to join us in demystify the disease, edu- Several kinds of cancer re- ance Scheme (NHIS) as a Bemoaning the poor at- the wife of the governor of meeting the objective of 90 cate the public on modern quire different methods of strategy to limit the econom- titude of Nigerians towards Niger State, on her part, out- percent of girls to be vac- cancer care as well as point treatment. ic burden of the disease on insurance, she said that the lined the importance of early cinated against HPV by members of the public to “Through educational patients and their families. Nigerian society is averse to detection of cervical cancer 2030, 70 percent of women right procedures and inform activities, we hope to bring The first ladies of Nigerian the health insurance scheme as well as financial assess- screened for HPV by the age the public to access treat- healthcare providers up to states made this call during a and as such, they are los- ment, which are part of the of 35 and then again at 45 ment. speed with modern knowl- virtual conference organised ing out on the opportunity FLAC objective. years of age, and lastly, that “If a patient is able to edge in cancer care, optimiz- by an international health- to key into the system that According to her, the 90 percent of women diag- detect early, the treatment ing the healthcare system, care and pharmaceutical can help reduce the cost of partnership with Roche nosed with cervical cancer would be much cheaper, and providing the right diag- brand, Roche in collabora- healthcare. aims to serve this purpose are able to access treatment,” which would be around nosis so that patients do not tion with First Ladies Against “The average cost of man- and dates back to 2016. Also speaking at the hundreds of thousands un- have to go out of the coun- Cancer (FLAC). aging the disease is N600,000 Roche has specifically paved event, Ladi Hameed, the like when it has gotten to try for these services. At the Zainab Shinkafi-Bagu- per treatment of six cycles. the way to provide breast country manager for Roche more complicated stages. end of the day, we can turn du, wife of the governor of You need to have a pool of cancer treatment to women in Nigeria, explained that We hope to walk with the pa- what is known as a terminal Kebbi State noted that even resources that the hospital in some states across Nigeria the cost of the ailment is de- tient through his/her jour- disease to a chronic disease”, though subsidized, the cost can use to start off the treat- as we work together in the pendent on the stage of the ney and make treatment of he said.

????? BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 20 FINANCE & INVESTMENT

MARKET COMMENTARY FOR THE WEEK ENDED 4TH JUNE, 2021 CAPITAL MANAGEMENT LIMITED May review: Vetiva Research Conviction Stocks What shaped the past and Banking sectors clos- tor ease 37bps w/w. For the limited interest during the expect a mixed close to start The ASI went through a week? ing higher, while the Oil week, volume traded in- week saw yields across the the week. mixed period in May, clos- and Gas and Consumer creased 4.35% while traded NTB space rise 1bp w/w on Fixed Income: Next ing 3.5% lower m/m. How- Global: Glob- Goods sectors closed lower value decreased 75.75% w/w average. week, we expect the market ever, many of our stock picks al markets traded w/w. The industrial Goods respectively. Currency: The Naira de- to trade in a similar fashion made recoveries during in a mixed man- sector rose 260bps w/w, preciated N0.55 w/w at the as investors’ focus shifts this period, as investors ner this week, driven by buy-side interest Fixed Income: Senti- I&E FX Window to close at to the upcoming NTB auc- bought up names that had with investors’ focus cen- in DANGCEM (+353bps ment across the fixed in- ₦412.55 and while closing tions. Meanwhile, we expect suffered losses earlier on tered on the health and pace w/w) and BUACEMENT come space was largely depreciating ₦12.00 w/w at tepid trading across the in the year. The ASI’s YTD of the global economic re- (+278bps w/w). Meanwhile, mixed this week, as bond ₦495.00 against the dollar in bonds and OMO segments losses worsened to -4.6%, covery. Key economic data gains in GUARANTY was participants were buy-side the parallel market. as investors continue to while our conviction stocks releases from major econo- enough to see the banking driven, while OMO partici- monitor market develop- have returned 10.7%, out- mies around the world also space rise 4bps w/w, amid pants were sell-side driven, What will shape markets ments. performing the broad index guided investors’ perspec- sell-side pressure across while NTB participants were in the coming week? by 15.2ppts. tive on economic recovery select counters in the sec- largely on the sidelines this Equity Market: Follow- Currency: We expect The Consumer Goods and drove sentiment across tor. On the other hand, the week. Yields across bench- ing consecutive positive the naira to remain largely sector was the worst per- the global space this week. Oil & Gas sector ended the mark bonds eased 33bps sessions and some capi- stable across the various former m/m, with a com- In Asia, the Japanese Nik- week as the worst perform- w/w, due to buy-side activ- tal appreciation especially windows of the currency bined weighted loss of -1.4%. kei-225 and Chinese Shang- er, sinking 79bps w/w due to ity at the long-end of the among the small-cap stocks, space as the CBN main- A slight gain in DANGSUG- hai Composite Index eased sell-side pressure in SEPLAT bond curve. Meanwhile, we believe that investor sen- tains interventions in the AR was overshadowed by a 25bps and 71bps respec- (-116bps w/w). Finally, in in the OMO space average timent is on a positive path. FX market. 10% m/m loss on FLOUR- tively w/w. On the macro the Consumer Goods space, yield rose 22bps w/w due However, we do not rule MILL amid heightened in- front, manufacturing activ- losses in GLAXOSMITH to sell-side pressure at the out the possibility of some Focus for the week security, weaker local cur- ity witnessed an uptick in (-242bps w/w) and CAP long-end of the OMO curve. profit taking at the start of May review: Vetiva Re- rency, and raw material May according to the latest (-10.14% w/w) saw the sec- Finally, in the NTB space, next week’s trading, thus we search conviction stocks supply concerns. Caixin/Markit manufactur- The Banking sector re- ing Purchasers’ Manufactur- ` turned 0.8% m/m, thanks ers Index (PMI) reading of to rises in ZENITHBANK, 52 for May, which came in Indicators WK CLS WK OPEN WTD(%) YTD (%) ACCESS and FCMB, while higher than expectations. EQUITIES GUARANTY was the sole However, investors remain loser. However, sentiment concerned about pent-up NSE 30 1,573.18 1,557.65 1.00 (4.08) in the sector has recently consumer demand amid the NSE All-Share Index 38,726.10 38,324.07 1.05 (3.84) improved amid expecta- pandemic and short-term tions of a rebound from Market Cap (NGN bn) 20,184.96 19,940.43 1.23 55.77 inflation which would hin- their weak Q1’21 financial der gradual and sustained FEDERAL GOVERNMENT SECURITIES (%) performances. economic growth. Moving 91-Day T-Bill 4.44 4.64 (0.19) 4.09 Our Industrial Goods to Europe positive senti- 182-Day T-Bill 4.84 4.97 (0.14) 4.46 pick, WAPCO contributed ment in the region caused a loss of 0.6% m/m despite 364-Day T-Bill 9.50 9.57 (0.08) 8.77 the German Dax and British renewed interest in the con- FTSE-100 to inch up higher 2-Year FGN Bonds 11.42 11.81 (0.38) 8.96 struction space following in- w/w, as investors expressed 3-Year FGN Bonds 11.66 12.20 (0.54) 9.20 dications of increased infra- optimism over the health 5-Year FGN Bonds 12.16 12.62 (0.46) 8.62 structure spend across both and pace of the region’s state and federal levels. 7-Year FGN Bonds 12.87 13.15 (0.28) 7.42 recovery. Manufacturing Our Oil and Gas picks activity also witnessed an 10-Year FGN Bonds 12.94 13.21 (0.27) 6.44 were the best performers uptick as well, with the Final 20-Year FGN Bonds 13.66 14.06 (0.40) 6.40 overall, returning 3.7% m/m, Manufacturing PMI printing INTERBANK MARKET RATES (%) with Upstream counter, SE- at 63.1 in May, the highest NIBOR OBB 15.00 18.67 (3.67) (4.00) PLAT, the biggest contribu- level in 24 years. Finally, tor at 3.5%, while TOTAL in the U.S., markets traded NGN EXCHANGE RATES (N) and ARDOVA contributed in a mixed manner, with 0.2% gains amid persist- the NASADQ easing 20bps USD/NGN 412.55 412.83 0.07 (34.38) ing weak sentiment in the w/w, while the Dow Jones GBP/NGN 584.69 585.93 0.21 (20.08) downstream sector. and S&P 500 recorded tepid In the banking space, gains w/w, rising 31bps and EUR/NGN 502.16 503.63 0.29 (16.28) we expect the continued 25bps w/w respectively. uptick in yields to improve CNY/NGN 64.51 64.82 0.48 (16.70) banks’ earnings, while the Domestic Economy: ZAR/NGN 30.66 30.03 (2.10) (5.40) ongoing economic recovery Since the adoption of the should boost overall per- Nigerian Autonomous For- USD/NGN F ORWARDS formance. This also applies eign Exchange (NAFEX) rate 1M 413.54 413.71 0.04 (12.42) to Consumer Goods and as the official exchange rate, 3M 420.30 420.39 0.02 (12.22) Industrials, which we expect the Naira has been running to continue improving as the out of steam in the parallel 6M 429.34 429.40 0.01 (11.68) year progresses. Meanwhile, market. While controversies 1Y 448.02 447.56 (0.10) (8.43) we maintain our expecta- on huge spread enjoyed by Source: NSE, FMDQ OTC, Bloomberg, Vetiva Research tion that the revived subsidy Bureau De Change opera- regime in the downstream tors were debunked, news space will result in weaker reports show BDC operators margins and consequently imposed a ban on street SECTOR INDEX VALUE WoW ∆ YTD ∆ lead to weaker earnings. hawking to stem the slide BANKING 355.45 0.04% -9.56% in the exchange rate. In our view, we believe the free fall CONSUMER GOODS 561.00 -0.37% -2.15% Whilst reasonable care has been taken in prepar- in the parallel market rate INDUSTRIAL GOODS can be attributed to pent-up 1,907.40 2.60% -7.06% ing this document to ensure demand for dollars by both OIL & GAS 306.75 -0.79% 35.61% the accuracy of facts stated legitimate users and specu- herein and that the ratings, lators. Should the Naira fall INSURANCE 207.99 1.25% 9.76% forecasts, estimates and beyond ₦500, we could see opinions also contained the CBN unleash some FX herein are objective, reason- policies to check arbitrage Weekly Top 5 Gainers Weekly Top 5 Losers able and fair, no responsibil- and stem the falling tide Stock Closing Price (N) % Change Stock Closing Price (N) % Change ity or liability is accepted ei- in the Naira, even as the ther by Vetiva Capital Man- Bank aims at unifying the MORISON 1.13 20.21% CWG 1.53 -26.09% agement Limited or any of exchange rates. VITAFOAM 11.20 10.89% ROYALEX 0.72 -11.11% its employees for any error Equities: The local eq- of fact or opinion expressed uities market rebounded BERGER 6.70 9.84% CAP 19.95 -10.14% herein. this week, as the index FTNCOCOA 0.39 5.41% CHAMPION 1.91 -9.91% rose 123bps w/w to close at 38,726.10pts. Interest COURTVILLE 0.21 5.00% IKEJAHOTEL 1.00 -9.09% across the sectors was Source: Vetiva Research mixed, with the Industrial BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 MARKET DATA 21 Share Price List as @ Friday 4 June 2021: The Nigerian Stock Exchange BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 22 ENERGY, POWER & RENEWABLE

Stories by Ben Eguzozie, energy security and stimu- in Port Harcourt late economic growth with he new position NNPC looks to Saudi Aramco’s limited resources requires it taken by the Ni- to consider strategic partner- gerian National ships with competent inves- Petroleum Cor- strategy in refining capacity acquisition tors in sectors of the oil and poration (NNPC) gas value chain, especially toT acquire stakes in privately Dangote, BUA, Waltersmith, others to shed equity stakes to NOC where it currently operates owned independent refiner- on a sole risk basis. ies in the country appears to Oil industry structure shifts from supply tightness to supply surplus “The oil refining sector is position to state-owned oil further structural shifts as one of such segments where company to beginning mir- the world embarks on an NNPC is revisiting its strat- roring what some success- energy transition away from egy in order to strengthen ful national oil companies oil in order to reduce carbon domestic refining capacity (NOCs) such as Aramco of emissions. With this demand and guarantee National En- Saudi Arabia has done over shift, it is increasingly vital ergy Security. The new vision the years, a few analysts have for oil producers to have a is to grow domestic refining suggested over the week- guaranteed buyer for their capacity, improve petroleum end. crude; and this is where the products supply from our lo- Although most of the suc- refineries come in. In peri- cal refineries, and become a cessful global NOCs in ques- ods of stress, oil producers net exporter of petroleum tion had sought to acquire can be left with stranded products,” said Obateru. stakes in refineries outside cargoes looking for buyers as He assured that the cor- their boundaries, and NNPC happened in 2020. poration’s move to seek is moving to do the same In the case of Aramco, equity participation in the domestically, analysts say they argued that, “With a private refineries would not it is a good starting point. refining capacity of 10 mil- undercut its commitment to Specifically, Saudi Arabia’s lion barrels across the world, the rehabilitation of its own Saudi Aramco has been buy- Saudi Aramco is assured of a refineries and strengthening ing up stakes in refineries recently restarted. When it happens – at least for the benefit of all Nige- buyer for their crude oil pro- of the domestic refining sec- outside its shores as part of In 2017, Rosneft, an oil six indigenous refineries, rians and other stakehold- duction. With an acquisition tor, stressing that the overall its plan to boost its refining company controlled by the five of which are at develop- ers. These roles enable it to of a 20% stake in the Dangote goal was to boost the nation’s capacity to up to 10 million Russian Government, ac- ment stage, with the Dangote achieve twin objectives of refinery, NNPC is embarking refining capacity with a view barrels per day (bpd) in the quired a 49 per cent stake in Refinery’s 650,000 bpd, by providing energy security for on a similar journey”. to becoming a net exporter long term, from around 5 India’s Essar Refinery. The far the world’s largest sin- the country, and stimulating Another point being of petroleum products in million now. Essar refinery has a capacity gle refining capacity; BUA’s the nation’s economic devel- pushed forward is that in the the soonest possible time, The Saudi national oil of 400,000 barrels per day. 200,000 bpd integrated mega opment and growth. event of the much awaited thereby boost the nation’s company currently owns and Specifically, NNPC an- refinery; and Waltersmith, Those who might wonder passage of the Petroleum economy. has stakes in four refineries nounced it was considering whose capacity would later why such leading NOCs are Industry Bill (PIB), NNPC Analysts in support of outside its shores with a total equity participation in a rise to 50,000 in its second embarking on acquisition will transition from a para- the move interpret this to be refining capacity exceeding number of privately-oper- expansion effort – would of refining capacity across statal to a private company forward thinking from the two million bpd. ated refineries in Nigeria in shed off equity participation the world would get the an- owned by Nigerians, add- NNPC management to get In 2019, Saudi Aramco line with a federal govern- to the NNPC. swer from the shifting in the ing that the new NNPC will in early and acquire a stake started talks to acquire a 20% ment directive stipulating Kennie Obateru, NNPC’s structure of the oil industry go to the capital market to in a very attractive invest- stake in Mukesh Ambani mandatory participation spokesman, said the cor- in 2014, from supply tight- source for capital to fund its ment opportunity like the group’s oil refining unit (Reli- of the corporation in any poration, a national oil ness to supply surplus. This investments; and will have Dangote Refinery, among ance). Reliance has a refining privately-owned refinery company (NOC), primarily was due to the boom in the to deliver adequate returns others, even though they capacity of 1.2 million bar- that exceeds 50,000 bpd has a dual role of providing production of shale oil in the to sustain its operations. say this should have been a rels per day. The deal was capacity, with its statutory stewardship for the nation’s US, say some analysts. But a bullish Obateru in move taken long ago, espe- delayed due to the fallout of role of safeguarding national hydrocarbon resources and According to these ana- his statement said NNPC’s cially in refineries outside the pandemic, but talks have energy security. adding value to the resources lysts, the industry is facing strategic objective to ensure the country.

ments around funding for impose. The projection and fossil fuels and these are demand for gas to generate Nigeria needs $40bn direct investments some of the things we have electricity in the country will to look at as we go forward consume between 60 to 70% to drive ‘Decade of Gas’ plan – NNPC and we need to figure out of the entire commodity pro- the announcement vis-a-vis duced, with the ongoing plan the foreign estimate that we to generate 45,000MW. gas-based industries; 39 thermal power plants required expect. Usman however, says the benefits include: 45,000 MW power, massive jobs, import substitutio NNPC has a supply plan other challenge is the liquid- he Nigerian Na- He was speaking at a vir- to deliver up to 4.5 bcf of ity in the power sector, and tional Petroleum tual forum organised by gas into the market, while there’s a lot of work going on Corporation the Association of Local going forward, the country because it is a very huge mar- (NNPC) says the Distributors of Gas (ALDG), expects 7.4 bcf of gas. He in- ket. If you see the demand country’s oil and with the theme: “The Decade formed that there are urgent projections that we have gasT industry will require of Gas: Unlocking Opportu- plans to complete ongoing done, it is going to consume at least $40 billion in di- nities in the Domestic Gas gas projects in the country, 60 to 70% of the gas that we rect investments in basic Market.” including the AKK project, have. infrastructure to achieve “In terms of benefits, we which he described as one of Not only that; without the federal government’s will generate 45,000 mega- the most aggressive and big- power, all the development ambitious ‘Decade of Gas’ watts of power in terms of gas gest pipeline infrastructure programmes we are think- programme. use, creating massive em- ever embarked upon by the ing of will be a mirage. It is Nigeria, Africa’s top oil ployment and import substi- country. The pipeline spans an inevitable equation that producer, is awash with huge tution. There are changes we 614 km. we have to solve to move gas deposits making it more need to look at to actualise According to him, all towards development and of a gas nation than oil. Lat- the decade of gas. We see the the gas activities going on issues around it have to be est surveys put the coun- is clearly targeting to reach a dustries as it works towards huge amount of investment, around the country were resolved”. try’s proven gas reserves in supply capacity of between the 10-year target; add- both Foreign Direct Invest- being handled by local con- Policy makers would have excess of 203 trillion cubic 7.4 billion cubic feet to 10 ing that the figure on the ments (FDIs) that will come struction companies and lo- to answer the questions sur- feet (tcf). billion cubic feet of gas in quantum of funds needed into the country upward of cal providers of services due rounding gas pricing, since Experts believe that if the next couple of years, from is based on the submis- $40 billion or much more to the COVID-19 restrictions. Nigeria is interested in using Nigeria will achieve the de- its current 1.6 bcf supply sions the corporation has than that in order to achieve “Going forward into 10 years, gas as a source of revenue as cade of gas, it must transit capacity. received from potential all the aggressive plans that we expect to do another big well as balancing between to a willing-buyer willing- According to NNPC’s investors. that are outlined in the de- pipeline that will take up investment and local content seller market. Besides, there chief operating officer, Gas About 39 thermal power cade of gas,” the NNPC chief gas from south, all the way drive. must be a document with and Power, Yusuf Usman, a plants were being targeted operating officer, gas and into Ajaokuta and possibly For Usman, all the FDI timelines as well as defined major constraint in achiev- as opposed to the current power, said. we extend it all the way to come with conditionality investment strategies on the ing local content through the 33. Usman said by the end of He added that, the in- Maiduguri,” he said. before taking the money. announcement that is being programme is the difficult this year, NNPC is projecting vestment will come in the NNPC hopes that the Pe- That will put a limit to our made about the restriction conditions placed by foreign an added gas sales of about upstream, midstream and troleum Industry Bill (PIB) local content drive. As you for fossil fuel to achieve the lenders. 600 mmscfd, compared to its downstream amid challeng- will be passed this year, as all know, the restrictions by decade of gas. He said NNPC expects to current 1.6 bcf to hit 2.2 bcf es as well, because there it is ready to adjust to the itself affect the kind of pro- Meanwhile, NNPC says it grow about 10 gas-based in- by the end of 2021. have been a lot of announce- changes that the law will jections that we look at. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 COMPANY & BUSINESS 23

Ben Eguzozie, state government to ensure in Port Harcourt that in no distant future. Dangote, VDMA Euros-7m skills centres ‘’We can replicate and Euros-7 mil- bring a full arm of the Dan- lion skills cen- to address vocational, technical skills gap gote Academy to state. We tres that will use do not want government leading-edge many; and as a matter of bureaucracy to stall this, if equipment in- project vital to economic well-being, growth key levers fact, I have no objection to it is to raise finance that is Astalled in five workshops inviting Nigerian specialists required, I can assure you purpose-built to train Nige- to help me in Germany and that Lagos state is ready to ria’s youths in technical skills vice versa.” do that; and that’s why we’re to significantly address the Meanwhile governor Ba- making this commitment. skill deficit in all key sectors bajide Sanwo-Olu of Lagos The Lagos governor not- of the nation’s economy, has state has enjoined both the ed, “It is because of where been launched in Nigeria by Aliko Dangote Foundation we see Lagos… the amount the Aliko Dangote Founda- and VDMA to consider citing of the teeming youth that we tion (ADF) in partnership the second training work- have in our country and our with Germany’s Association shop in Lagos, with a prom- state. Lagos has continued for Mechanical and Plant ise to make funds available to be the biggest economy in Engineering (VDMA) and its for the take-off of the laud- our country and even in Af- Foundation for Young Talent able program. rica, and what this present to in Mechanical Engineering “I am truly excited to be us is an opportunity to bridge (NWS). part of this epoch and na- that will help to significantly Aliko Dangote, president, tion changing event. For reduce the unemployment Dangote group said, the us in Lagos, I am happy to level in the state’’. initiative is a landmark pro- announce that we have six Dangote congratulated gram out of which a large well maintained vocational the trainees, saying: “I un- percentage is for the special- economy, as key levers for fessionals. In addition to the be achieved. training schools. We are go- derstand that we chose only ized, leading-edge equip- growth, specifically in the technical training, they will VDMA’s past president, ing to not just talk here today, 120 of you out of over 4,000 ment that has been shipped manufacturing sector, Dan- also get personal effective- Reinhold Fostge expressed we are going to be making applicants. This means you from Germany, and installed gote said significant skills ness trainings of same qual- delight that, the project has a public commitment that are smart; you are the best in five workshops purpose- gaps exist in Nigeria, which ity as our staff.” become reality eventually given what I have listened and the brightest, we believe built for the program at the is what the program seeks to Germany’s minister for in Nigeria. ‘’We started six to now, we are not going to in you, and expect great Dangote Academy in Oba- address. economic cooperation and years ago. Four years ago, leave this to Dangote Foun- things from you. I urge you jana. “This program is the first development, Gerd Muller, we signed a memorandum dation alone, we have to to make use of this wonder- He said the beneficiaries of its kind in Nigeria, and lauded the Aliko Dangote of understanding to establish upscale our commitment,” ful opportunity and become will be trained, using these will be replicated in all the Foundation and VDMA for a Nigerian German training Sanwo-Olu said. productive for the well-being machines, so they can learn six geo-political zones of the the enviable program that project. This program is to He said the state won’t of our country.” practical skills that will be country,” Dangote said at the can transform and develop raise the skill level of work- wait for Dangote to rep- He also promised that transferable as they enter the launching of the program. the economy of Nigeria. He ers, and make the youth licate the program in the more youth will be admit- work force. According to him: “The said his ministry has sup- employable. Our vision in six-geographical zones of ted and very soon, all the Noting that vocational trainees that successfully ported the initiative with VDMA is that, in future, we the country. Lagos state will six geo-political zones of the and technical skills are vi- pass through the full voca- €3.6million and will not should be able to exchange work with him and ask the country will witness massive tal to the well-being of any tional training will be pre- hesitate to do more for the highly skilled professionals VDMA what level of com- development through the pared as well-rounded pro- purpose of the initiatives to between Nigeria and Ger- mitment is required from the scheme.

ome lucky children ite Foods Lim- Rite Foods, born in 14 Nige- ited, makers of Mouka gifts Children’s Day Bigi carbonat- rian state hospi- Bigi, Fearless tals in nine states ed soft drinks across the country babies in state hospitals (CSD), Fearless drinks Son Children’s Day, were the energyR drinks, and vari- beneficiaries of free Dream- To celebrate this year’s state, as well as Obafemi Nigerians across all age ants of sausage brands, makers, win time baby mattresses and children’s day each child Awolowo University Teach- segments. The CCO also has been named brand of mats courtesy of foam mak- born on May 27 in Lagos, ing Hospital (OAUTH) in spoke about the unique the year. awards ers, Mouka. Oyo, Osun, Edo, Rivers, Ile-Ife. qualities of the Dreamtime The awards organised It was part of its advocacy Kano, Kaduna, Enugu, Pla- Others are Edo Special- mattresses, which were spe- by Champion News Media, for a healthy sleep culture teau and Gombe benefitted ist Hospital in Benin City, cially designed with chil- publishers of Champion with the vision of becom- from the cradle. Mouka has from the gifts. Prime Medical Consultant dren in mind. In addition newspapers, was conceived ing the industry’s foremost been raising awareness on Nigeria’s leading manu- and Ultimate Specialist to the water-resistant and to honour the best of human conglomerate by 2030, Rite the importance of quality facturer of mattresses, pil- Hospital in Port Harcourt, breathable quality of the resources and institutions sausage brands became the sleep, especially in children, lows and other bedding Aminu Kano Hospital Kano Dreamtime mattress, it is in Nigeria. Rite Foods was most innovative sausage as this is necessary for sound products partnered with the (AKTH), Barau Dikko Gen- made with he right density adjudged the best from a roll, number one sausage physical and mental devel- Nigeria Society of Physio- eral Hospital in Kaduna, Jos of foam to guarantee the plethora of multinational roll in Nigeria with the in- opment. therapy (NSP), with whom University Teaching Hos- child’s comfort. organisations that are in the novative Rite Spicy Sausage, Mouka had launched its it enjoys an exclusive en- pital (JUTH), and ECWA Commending the laud- fast moving consumer goods and dominated the sausage Dreamtime range of chil- dorsement for this initia- Hospital, Jan-kwano, in Jos, able initiative, Oyegoke (FMCG) category. market with a variety of sau- dren’s mattresses to bolster tive. The presentations were University of Nigeria Teach- Adeduntan, director of According to Ugo Amadi, sage rolls. its stance on the impor- made to the mothers of the ing Hospital, Enugu, as well nursing services, who spoke editor, Champion News- Also, it introduced the tance of quality sleep for new births by Mouka’s mar- as Federal Medical Centre on behalf of Chris Bode, papers, the awards are also Bigi and Fearless Energy children. Dreamtime mat- keting and commercial team in Gombe. chief medical officer, LUTH, targeted at acknowledging drinks in 2017. Since then, tresses are water-resistant and the NSP at the Lagos Dimeji Osingunwa, affirmed that the families the contributions of some of the brands have set the pace yet breathable, thereby Island Maternity Hospital Mouka’s chief commercial well appreciated the gifts. the outstanding individuals, for others to follow, as the keeping a child’s body cool (LIMH),Lagos University officer, said the company She stated that the Mouka organisations, agencies, and most preferred products and comfortable through Teaching Hospital (LUTH), remains committed to add- brand indeed cares for its institutions of both state and by families nationwide, as the night. Adeoyo Hospital in Oyo ing comfort to the life of consumers, which is evident federal governments to the well as addressing the mar- in the gesture. “On behalf development of Nigeria in ket need of young pupils in of the management of this particular and humanity in schools. hospital, I deeply appreciate general in the areas of busi- Rite Foods Limited be- Mouka for these gifts and ness, politics, culture, social gan production in March l pray for the continuous and infrastructural develop- 2008 with sausages and has growth of the company,” she ments. since become a major player; stated. Rite Foods Limited was where it also set the pace in Olufemi Omololu, medi- honoured along with First 2016 with products com- cal director, Lagos Island Bank of Nigeria Limited, prising of a wide range of Maternity Hospital, repre- African Alliance Insurance, Bigi variety of soft drinks. sented by Cole Adebukola, Innoson Motors, Access its inventiveness has earned apex Nnrse and assistant Bank, NSIA Insurance, Ni- it high recognition in the director, nursing, also sang gerian Liquefied Natural energy drinks market with praises of the organisation Gas (NLNG), and Dangote the first-ever packaged poly- as this was the second time Foundation. ethylene terephthalate (PET) Mouka was making such a Unarguably, the fastest- bottle brands for the Fear- donation to their hospital on growing foods and bever- less Red Berry and Fearless children’s day. ages company in West Africa, Classic. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 24 COMMODITIES & AGRICULTURE

Stories by Onome Amuge panel and judicial commis- sion of inquiry should be set lobal forestry Abandoned timber industry: up in all the affected states and logging to identify, punish and sanc- market, ac- tion all the foreign interests cording to re- and their collaborators in- A goldmine seeking reformation volved in the illegal timber ports by the FoodG and Agriculture Organ- business. isation (FAO), reached a val- matters are handled by state Orimoloye Faleyimu, For- ue of nearly $535.96 billion governments because they estry Management lecturer in 2020, having increased at own all the forestry estates in and researcher at the Ondo a compound annual growth the country, logging of tim- State University of Science rate (CAGR) of 0.8 per cent ber, including rosewood, is and Technology, said the since 2015. banned or allowed only un- practice of accepting for- The Business Research der license, but traders have estry as a public venture Company, an international a free reign in the forests is not ideal. He asserted market intelligence organ- across the country because that the private firms and isation, forecast that the of poor regulations, moni- industries that derive their market is expected to grow toring and local corruption,” raw materials from the for- from $535.96 billion in 2020 it said. est should be made to pay to $726.51 billion in 2025 at The report also disclosed back some of their huge a rate of 6.3 per cent. The that, despite various laws profits to forest regeneration growth, it explained, is main- prohibiting logging except programmes. He also recom- ly due to the demand for with the possession of a mended that 25 per cent of forestry and logging prod- license obtained from the the gross profit should be ucts especially in countries forestry department, offi- backwardly integrated to- including; China, U.S, Ger- centrated across many states (UNIDO), Nigeria was a ma- on Economy, Human Rights cial channels have been wards forest regeneration or many, Canada, Sweden, such as; Bayelsa, Cross Riv- jor producer of timber in the and Sustainable Develop- often ignored while trees re-afforestation. Brazil and Russia, which is er, Delta, Edo, Ekiti, Ondo, world market as far back as ment in Nigeria” revealed are freely harvested albeit He also pointed out that expected to drive the growth Osun, Rivers, and Taraba, the 1960s and 1970s. that Nigerian forests and its illegally without any official reforming laws and regula- of the market. with the capacity to provide John Isemede, former di- resources are exploited by il- sanction. tions will have limited im- Going forward, increas- ready sources of valuable rector-general of the Nigerian legal Chinese, Lebanese and Faced with these chal- pact unless one also reforms ing construction of wooden timber for the export market, Association of Chambers of Korean loggers, spurred by lenges, analysts opine that the institutions in charge of buildings, adoption of auto- Nigeria’s timber resource Commerce,Industry,Mines the connivance of residents Nigeria’s timber productiv- implementing them. These mated forestry management, has in recent years, been and Agriculture (NACCIMA), in some of the local com- ity has failed to live up to its institutions, he said, must rising demand for wooden inflicted by many drawbacks the African Timber and Ply- munities where the forests potential in the world market have to become more effi- furniture are expected to and records by the FAO re- wood (AT&P), a factory lo- are located. and the country will con- cient, outcome oriented, less drive the market in future, ported that between 2000 cated in Sapele, was once “What we are seeing tinue to lose opportunities corrupt and more transpar- making timber one of the and 2005, an estimated 55.7 reputed as one of the largest across Nigeria is a blatant to make huge revenue from ent for any meaningful de- most sought-after woods in per cent of the country’s timber manufacturing com- rape of our environment by its forestry commodities and velopment to take place. the world and a dominant primary forests consisting plexes in the world and the a combined dubious synergy bolster its economic diversi- John Isemede suggested commodity in the global for- timber were lost to illicit largest timber producer in of local and international fication plans. that increased planting of estry and logging market. timber trade, unconstrained Africa. conspirators. Our forest re- Reviving Nigeria’s tim- trees/afforestation should The Food and Agriculture deforestation and felling of But due to poor manage- serves, wood species and ber industry. be made a legacy invest- Organization Corporate Sta- trees without a significant ment and the country’s oil economic trees are being In its call for a solution to ment in which the present tistical Database (FAOSTAT) simultaneous replanting to dependency, timber produc- mauled down in despera- Nigeria’s timber challenges, generation can plant trees ranked China as the world’s boost economic sustenance. tion for export has become a tion. As we speak, Nigeria the NHRC demanded that to sustain the next genera- largest timber and wood Worse still, the country’s for- negligible venture while il- is hub to the largest illegal all foreigners and local per- tion. He added that timber products importer and with est cover also falls below the legal timber harvesters have exportation of illegal wood in petrators involved in illegal is a major commodity in the rapid development of United Nations’ 26 per cent devastated a large percent- Africa,” the group stated. exportation of Nigerians’ the global market whose China’s economy; there is a recommendation age of forest areas. An investigative report precious wood resources value increases with time growing demand for timber Commenting on the The Nigerian Human published in International should be sanctioned and and should be prioritised as from industries of construc- country’s timber industry, Rights Community (NHRC), Centre for Investigative Re- banned while forest control an avenue to bolster Nigeria’s tion, papermaking and furni- John Isemede, national ex- in a recent press confer- porting (ICIR), blamed the policies and laws should be economic diversification ture manufacturing. pert on value chain at the ence titled “Illegal Wood country’s poor attention thoroughly enforced. within the agricultural value Despite the presence of United Nations Industrial Export in Nigeria and the to its forest commodities. It further recommended chain via timber farming/ forest vegetation belt con- Development Organization Far-reaching Consequences “In Nigeria, where forestry that a presidential probe afforestation.

he federal gov- across the country with a Azubike Nwokoye, Ac- ernment is con- target to revive the grazing tionAid Nigeria’s Food and sidering bringing reserves. Government mulls revival of Agriculture Programme back to life, un- Work is presently ongoing coordinator, called for in- dermined grazing with a monitoring team su- creased government funding reservesT in 21 out of the 36 pervising progress of works grazing reserves in 21 states of agriculture especially the states of the federation, a at various centres, adding livestock industry due to the measure aimed at curbing that the federal government current national security the farmer/herder crisis per- is committed to providing in- challenges and noted that vading the country and in- frastructures that will make adequate funding is neces- creasing the country’s dairy the reserves suitable for pas- sary to realise the goal of production. toralists thereby increas- ranching and grazing re- Nigeria’s minister of ing local dairy production serves, noting that, without agriculture, Sabo Nanono capacity. funding, it will be difficult made the disclosure dur- She further noted that to stop open grazing. “Cows ing a webinar on Nigeria government is collaborating rearing demands lots of wa- Dairy Industry organised by with local and international ter therefore, we suggest the Policy Centre of Abuja partners to improve rela- that solar power boreholes Chamber of Commerce and tionship between farmer/ should be widely provided Industry (ACCI) to mark the herder through revitalisa- to meet the needs of pas- 2021 World Milk Day themed tion of the grazing reserves, toralists and cows,” he sug- “Sustainability in the Dairy urging Nigerians to support gested. Sector”. government efforts in this Victoria Akai, director The declaration is com- direction. general, ACCI, advised the the ACCI-Policy brief on the system, establishment of a made to increase local ing as the Policy Centre is- On his part, Al-Mujtaba governments at all levels to dairy sub-sector as present- National dairy board, train- production of milk to save sued a brief on the Nigeria Abubakar,ACCI President, put the private sector in the ed in its statement include: ing and capacity building of the nation from blowing dairy sector with far reaching officially released the ACCI driver seat on implementa- continuation and expansion pastoralists and deployment up her foreign reserve on policy recommendations policy brief on dairy sector tion of national livestock of the backward integration of modern technology to milk importation. He be- to deepen and expand the in Nigeria, calling for inten- transformation plan. The currently supported by the every segment of the dairy lieved that ending open sector. sive backward integration question of public, private Central Bank of Nigeria, business. grazing is in the collective The minister, represented within the dairy sector as partnership, he stressed, private-sector-driven imple- At the event, Kolawole interest of northerners by Mercy Otiteh, a princi- currently championed by is at the heart of the ACCI mentation of the National Owoka, vice president and and southerners, urging pal officer of the agricul- the Central Bank of Nigeria policy brief, which will be livestock transformation chairman, Agric Trade governments to fast track ture ministry, disclosed that (CBN) and the ministry of widely circulated to govern- plan, creation of the pri- Group, advised that con- the ongoing works on the the ministry has mobilised agriculture. ments and stakeholders for vate sector driven ranching certed efforts should be grazing reserves. contractors to various sites The major policy thrust of actions. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 COMMODITIES & AGRICULTURE 25

Stories by Onome Amuge ture officer, National Agricul- ture Seed Council, described he Plant Variety Plant Variety Protection Law PVP as an instrument that Protection (PVP) allows breeders to benefit bill recently from the work of their intel- signed into law will earn $2bn in 5 years, NESG says lect and gives confidence to will facilitate breeders. Tprotection of the right of Okolo Samson, zonal busi- ownership of seedlings and tion in Africa (AGRA), United ness development manager, plant varieties, enhance agri- States Agency for Interna- Value Seeds Limited, stated business in the country and tional Development (USAID), that conducting researches in most importantly, create Rockefeller Foundation under plant varieties costs a lot and an opportunity for Nigeria the Partnership for Inclusive when a plant researcher does to generate revenue worth Agricultural Transformation a work and is not rewarded, over $2billion within five in Africa (PIATA) initiated or sees no future benefits, it years. the Plant Variety Protection discourages investments but Nigerian Economic Sum- as an avenue where plant when the protection is there mit Group (NESG) made the breeders are granted an intel- and the assurance of generat- assertion in a recent state- lectual property right over ing revenue out of breeding ment signed by Yinka Iyino- their planting materials to comes up, breeders and re- lakan, head, corporate com- encourage further innovation searchers will be encouraged munication, in response to and diversity of breeding and to work. the approval of the PVP bill increase investment in plant According to market re- by the senate in March 2021, breeding. ports, Netherlands generate following several months of Making a case for the pas- $2.6billion from seeds export deliberation. velopment. in ensuring the passage of as a whole,” the statement sage of the bill into law in annually while Kenya earns According to the seed It added that, the PVP the PVP bill, NESG urged read in part. Nigeria, Rose Gidado, coun- $1.8 billion from flower ex- council, passage of the will encourage in-country the executive arm to urgently Prior to the passage of try director, Open Forum on ports annually because of the bill into law will give plant breeding activities as well ensure that the legislation is the bill by the legislature, the Agricultural Biotechnology implementation of the PVP breeders intellectual prop- as introduce the exportation signed into law to regain the National Agricultural Seeds (OFAB), noted that the PVP law adopted in the various erty over a new plant variety, of high quality improved confidence of plant breeders Council (NASC) and apex bill is a legal designation and countries. with exclusive rights to com- varieties developed by Ni- across the country. regulatory body for the Nige- document meant to protect Nigeria’s failure to pass the mercialise seed and propa- gerian researchers to other “We believe that the mea- rian Seed Industry, had been plant breeders, help them PVP into law over the years, gate material of the variety countries with the knowl- sures set out in the PVP bill the driving force for the co-or- exercise their rights and mo- has led to a loss in revenue while also promoting the edge that these countries will create a more appro- dination and implementation tivate them to do more be- opportunities worth millions marketing of new varieties, are not authorised to copy or priate system that meets of the national seed sector and cause it give them intellectual of dollars and also, lowered enabling breeders to earn reproduce the crop varieties today’s realities, improve the the protection of plant breed- property right and patent to the recognition of local plant back the considerable costs without consent. business environment and ers in the country. whatever variety of crop being breeders and researchers involved in the long process Commending the na- general agricultural perfor- NASC in partnership with developed. in the global agricultural and duration of variety de- tional assembly for its role mance across the economy the Alliance for Green Revolu- Charles Onwuka, agricul- community,NESG said.

per cent from April and 36.6 Global food price index soars to new highs per cent higher year-on- Gold ends week below $1,900 year. International maize nternational food along with firmer meat and est level since March 2017. prices recorded the high- despite bullish expectations commodity pric- dairy prices, even as cereal The rise attributed to har- est gain among the major es continued their price index was up 6 per vest delays and concerns cereals, reaching 89.3 per relentless climb in cent compared to April and over reduced crop yields cent above their value in May, increasing for 36.6 per cent higher year- in Brazil, world’s largest the same period last year Ithe 12th consecutive month on-year. exporter of the sweet com- and their highest level since and hitting their highest Vegetable oil price index modity. January 2013. Global barley level since September 2011, climbed 7.8 per cent, buoyed Dairy prices were 1.8 per and sorghum prices by 3.6 the Food and Agriculture by rising palm, soyoil and cent higher on a monthly per cent month-on-month, Organisation of the United rapeseed oil quotations. basis and 28 per cent higher while wheat prices soared Nations (FAO) showed in its Market watchers said that compared to figures re- 6.8 per cent higher above latest report. slow production growth corded a year prior. The April prices. old prices re- cluding higher job growths, The FAO food price in- in Southeast Asia boosted increase, market watchers Meanwhile, FAO has pre- bounded from a broader recovery in China, dex, which monitors month- palm oil prices while expec- said, was led by strength- dicted record cereal output a more than the U.S and parts of Europe. ly international prices of tations of increased global ened demand for whole this year supported by a pro- two-week low Christian added that the pre- the most commonly traded demand, especially from milk powders. On the other jected 3.7 per cent annual to reverse the cious metal which is often food commodities averaged the biodiesel sector, raised hand, butter prices plunged growth in maize production, previousG session’s slide at viewed as a hedge against 127.1 points in May, 4.8 per soyoil prices. for the first time in almost a while global wheat output is the close of the week after the inflation is likely to continue cent higher than in April and Sugar index averaged year as top producer, New also expected to rise 1.4 per dollar reversed its upward to trade between $1,855 and as much as 39 per cent year- 106.7 points, 6.8 per cent Zealand, recorded a surge cent year-on-year, while rice movement while U.S. yields $1,920 an ounce the follow- on-year. The sharp increase higher compared to April, in export supplies. production was forecast to also suffered a decline to ing week. reflected a surge in prices recording its second month- Cereal Price Index aver- grow 1.0 per cent. whet investors’ appetite for On the other hand, mar- for oils, sugar and cereals ly rise in a row and the high- aged 133.1 points, up 6.0 gold. ket analysts at Capital Eco- The yellow metal was nomics averred that despite Supporting the metals however unable to record a rising inflation pressures, Copper rebounds amid market was a weaker dollar second consecutive weekly labour market weakness will index, which gave up earlier close above $1,900 despite force the U.S Federal Reserve gains after the US jobs data, rising expectations across to maintain its ultra-loose weakened U.S economic data making commodities priced markets about price pres- monetary policies and as opper prices in the US currency cheaper sures. they continue to spend, it rebounded and for buyers using other cur- The front-month gold fu- will be more difficult for cen- held tightly to rencies. tures contract on New York’s tral banks to tighten interest gains at the On the other hand, LME Comex was up one per cent rates. close of the tin was up 2.7 per cent to to settle at $1,892 per ounce “The recent rise in the Cweek,after fears that strong $30,805 a tonne after Ma- while U.S gold futures gained gold price has been far larg- U.S economic data could laysia Smelting Corp, the 1.2 per cent at $1,896.50. er than is implied by the spur tighter monetary policy world’s third-largest tin pro- According to some ana- fall in real yields, and we resulted in heavy losses a ducer, said it would tem- lysts, financial markets are think that the gold price session earlier which saw porarily close due to a new currently in a goldilocks will come under renewed markets after US jobs data the increasing production of investors scoop up material Covid-19 lockdown, accord- environment where condi- downward pressure in the came in weaker than ex- electric vehicles. at lower prices. ing to the International Tin tions are neither too hot nor months ahead as real yields pected, easing fears that the Carsten Menke, analyst at Three-month copper on Association. too cold, which has been de- start to creep higher,” the Federal Reserve would with- Julius Baerh, said the overall the London Metal Exchange For other metals, LME scribed as a perfect environ- analysts said. draw stimulus measures. attitude for industrial metals (LME) was up 1.9 per cent at aluminium rose 2.2 per ment for the gold market. For other precious metals, Copper hit a record high and commodities in general $9,972.50 a tonne, having lost cent to $2,457.50 a tonne, Jeffrey Christian, manag- silver was up 1.2 per cent of $10,747.50 in May, trig- is still bullish but expecta- as much as 3.8 per cent in the zinc climbed 0.8 per cent to ing partner of CPM Group, at $27.78 per ounce, plati- gered by optimism over tions have been excessive previous session. $3,007.50, lead shed 1.3 per asserted that gold’s strength num gained 0.7 per cent at global economic recovery as to where prices should be Market watchers ob- cent to $2,144 and nickel is backed by expectations $1,164.88 while palladium and new demand from a based on the fundamental served that the red metal was 0.8 per cent higher at that are partly based on the stumbled 0.2 per cent to green revolution, especially backdrop. made gains along with stock $18,030. stronger economic data in- $2,834.74. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 26

Why concession these ised labour who are a critical airports? stakeholder group and sup- he delivery of this Concession will address challenges portive of this process. project helps Ni- geria achieve its Has the National Council objective in terms confronting Nigeria’s airports - Sirika on Privatisation approved of air transport this programme or Is there valueT chain growth by devel- Hadi Sirika, Nigeria’s aviation minister in this snippets made available to SADE overlapping jurisdiction oping and profitably, manag- with BPE? ing customer-centric airport WILLIAMS/Business AM, from the Ministry of Aviation, provides insights into the The National Council facilities for safe, secure and current plan by government to concession four international airports, saying it is on Privatisation, which is efficient carriage of passen- chaired by Vice-President gers and goods at world-class in the overall interest of the natio Experts: ness and within the Govern- Yemi Osinbajo, is a policy standards. independent concession pro- ments jurisdiction, subject to making and advisory council Nigeria is Africa’s largest grammes and as such, we are certain terms that are agreed enabled by the Public Enter- economy and most populous not at liberty to comment or upon by both parties during prise (Privatisation and Com- nation, with a broad range of join issues. We do however the negotiation and contract- mercialisation) Act of 1999. It investment and tourism op- hope that all stakeholders ap- ing phase. It is thus a form of operates through a secretariat portunities. Investing in and preciate that the concession Public-Private Partnership – the Bureau of Public Enter- continuously, developing programme we are focused whereby there is no transfer prise (BPE). BPE’s function is the asset up for concession on right now operates in an of equity between the con- thus to implement the NCP’s is key to unlocking these environment of enhanced tracting parties. policies on privatisation and opportunities. Our airports Governance with enabling commercialisation. have huge potential, but they structures and processes. At This programme is a con- Is there a conflict be- are currently operating at the time the MM2 Conces- cession programme that fol- tween this concession pro- a suboptimal level due to a sion programme was initi- lows the principles of public- gramme and the terms of myriad of factors that will ated on there was no ICRC. private-partnerships (PPP). the EXIM Bank loan agree- be addressed through their We are now operating in This model will see conces- ment entered into between concession. a much more evolved and sionaires sign contracts for the FG and the China which mature environment as re- the management, develop- has seen CCECC build new Why are you not conces- gards governance related to ment, operation and main- passenger terminals in sioning all the airports? infrastructure concession tenance of these airports Lagos, Abuja, Kano, Port Infrastructure conces- programmes. with the Federal Government Harcourt and Enugu Air- sions are very complex and of Nigeria. There will be no port? sensitive programmes. They How much does the FG There is no conflict. China change in the ownership often requiring years of plan- intend to generate through Civil Engineering Construc- structure of the assets to be ning and preparation to se- this process? tion Corporation (CCECC) concessioned. cure the requisite inputs and A typical airport conces- was contracted to deliver ICRC and BPE share infor- approvals from the relevant sion transaction might rely on a number of infrastructure mation and collaborate regu- regulatory bodies. We are a deal structure comprised of projects throughout Nigeria larly (The Director-General, starting with the strategic an investment commitment in 2013. The Passenger Ter- ICRC, is a member of the assets because successful by the concessionaire for a minal development works NCP’s Technical Committee). delivery of this concession minimum duration, an annu- are a small part of this, and Infrastructure concession programme will give all al concession fee and a share the Federal Government has programmes are complex stakeholders the confidence of net operating income. every intention to service its transactions involving sev- required to consider other HADI SIRIKA These are prized aviation obligation. eral stakeholders. In this possibilities in the sector. assets and as such we ex- particular case there is no cession Regulatory Commis- qualification process. Only pect to generate a significant overlapping jurisdiction with Why are you concession- What parts or sections of sion (ICRC) – the institution Pre-qualified parties will amount of direct investment the BPE. ing as opposed to selling the ‘airport’ are to be con- that oversees all concession be invited to respond to a in what we intend to be an The BPE implements the or fully privatising these cessioned? and Public-Private-Partner- Request for Proposal (RFP), equitable deal for all parties. privatisation and commer- facilities? The concession applies ships in Nigeria has clearly which will also be published That said, the initial or short- The passenger and cargo cialisation policies of the Na- to the non-aeronautic as- laid out processes governing as per ICRC guidelines and term objective is to deliver terminals of each airport, tional Council on Privatisa- sets of the airports located a transaction like this. general best practice in Pub- significant cost savings to although separated for the tion. This is not a privatisation in the Passenger and Cargo The Transaction Advi- lic Procurement. the Federal Government. purpose of the concession project because we are not terminals. They are thus com- sors made up of a coalition Will do you invite foreign FAAN will no longer be solely programme, are within the transferring any ownership of prised of the assets from the of independent and repu- firms to participate? responsible for maintenance, various federal airport com- equity in these airports. The entry door of the airport to table organisation have been We are looking for part- investments and day-to-day plexes and as such, are of mandate is to deliver private the point of embarking a mandated by the ministry ners who have the financial, management into these air- tremendous national impor- sector participation in the plane, and from deplaning of aviation (having received technical and operational ports. tance from an economic and management, development, to the exit doors. This space approval from the Bureau capabilities to manage these security perspective. operation and maintenance commonly referred to as of Public Procurement for assets profitably and respon- Is this concession pro- We believe it remains of the Passenger and Cargo the Passenger terminal is their appointment) to drive sibly. We envisage a competi- gramme legal? in Nigeria’s best interest to terminals of airports that will comprised of retail spaces, this process transparently, tive process and as such, we The concession pro- maintain ownership for this remain under the ownership waiting and seating areas, ensuring that regulations laid will be advertising broadly. gramme, its stakeholders reason. Furthermore, as is and overall management of airport and airline lounges, out by the ICRC are followed All qualified companies or and the Transaction advisors often the case with large, the Federal Airports Author- baggage collection, check-in whilst also ensuring that Ni- consortiums shall be allowed appointed to deliver it have multifaceted infrastructure ity of Nigeria. counters as well as adminis- geria gets the best partner(s) to submit proof of relevant followed all relevant laws developments, the scale of The Infrastructure Con- trative offices. The Cargo ter- and deal possible given the qualifications once we have and procedures. The Infra- investment required to build cession Regulatory Com- minals are comprised of the unique attributes of the assets published a request for quali- structure Concession Regu- the airport complexes envis- mission (ICRC) Act 2005 facilities between the point of to be concessioned. fications (RFQ). latory Commission (ICRC), aged in the aviation sector is the Act of law governing entry and up to loading and which is the institution that roadmap will require the sup- Public-Private-Partnerships offloading points, including When will the public What is the tenor of the regulates all infrastructure port of the Sovereign Wealth involving infrastructure in administrative offices within procurement process go concession? concession programmes and Fund in a way that an outright Nigeria. ICRC’s enabling act said facilities. live? Infrastructure conces- public-private-partnerships permits ministries, depart- privatisation will not allow at We now have OBC Certifi- sions of this nature come in Nigeria, has clearly laid this time. ments and agencies, under Are you selling the air- cates of Compliance from the with a significant financial out processes governing a the guidance of the ICRC, to ports? Infrastructure Concession obligation which any respon- transaction like this. engage private sector organ- Why concession only the No, there shall be no Regulatory Commission. We sible concessionaire will no The Transaction Advisors; isations for the development, passenger terminals and change in the ownership are currently finalizing the doubt be keen to recoup. To a coalition of independent financing and operation of who are the ideal conces- structure of the airports in- documents required for the this end, we envisage a mini- and reputable organisation infrastructure assets. This Act, sionaires/partners? volved in this programme. procurement phase, after mum of 20 to 30 years for the have been mandated by the We are not. The cargo being a more recent and spe- What the Federal Executive which we will commence programme, which may be Ministry of Aviation (having terminals for all the four cific law created especially Council has mandated is the next stage of the process, extended depending on per- received approval from the airports will also be part of for regulating infrastructure a Concession programme. i.e. publishing a Request formance and Nigeria’s best Bureau of Public Procure- the programme. We are look- concessions, supersedes the A concession is governed for Qualifications (RFQ); a interests. That said, the dura- ment for their appointment) ing for partners who have Public Enterprise (Privatisa- by a concession agreement critical phase of the public tion is not set in stone and to drive this process trans- the financial, technical and tion and Commercialisation) whereby two parties whereby procurement process. will be subject to negotiation parently, ensuring that pro- operational capabilities to Act of 1999. a private sector investor and The RFQ will give inter- and then final approval by the cedures prescribed out by manage these assets profit- the ICRC are followed to the a public sector owner of an ested parties, local and in- federal executive council. Have there been broad- ably and responsibly. letter. The Ministry of Avia- asset enter into an agreement ternational, ample time to based stakeholder consul- that gives the private sector prepare their submissions. How might issues related tion has also supported the How will you select the tations? investor the right to operate Once the deadline for sub- to the MM2 concession af- process by consulting widely The Ministry has from the successful bidders? said asset for a specific busi- mission has been crossed, fect this process? with all stakeholders, paying The infrastructure Con- very start worked in partner- we will then begin the pre- These are two entirely particular attention to organ- ship with all relevant stake- BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 27

holders within and outside of be responsible for the day- the Transaction advisors, Sade Williams /Business AM government. ICRC’s process to-day management of the comprised of independent Stakeholders urge African CAAs allows the ministry some airport passenger and cargo and reputable private sector layers in the global discretion as regards partici- terminals. The FGN, as the companies. BPP’s laid down aviation indus- to lead infrastructure renewal in pation of external stakehold- owner and partner to the process for good governance try have decried continent through technology ers and this was exercised at concessionaires will make in public procurement is the infrastructure the ministers’ request when strategic investments in these available on their website. gaps in most of the he invited organised labour assets alongside others from All members of the Trans- PAfrican aviation countries, to participate in the Project the private sector and devel- action advisory team have but posited that new tech- Delivery Team. The deci- opment finance sector. Any a proven track record of de- nology, if embraced by the sion to bring Labour into the investment contributions livering positive outcomes continent’s governments, Project Delivery Team came made by the FGN will be in complex infrastructure especially through the Civil about because of a deep ap- based on robust medium to projects. Their credentials Aviation Authorities (CAAs), preciation of role Labour has long-term investment and were rigorously interrogated would help to address the to play in delivering the best expenditure plans to be de- by the Ministry of Aviation, challenges. possible outcome for the Na- veloped by the concession- BPP, ICRC and the FEC. The This is as Capt. Musa Nuhu, tion. The Ministry continues aires with oversight from the international partners who the Director-General of the to engage proactively with all Ministry of Aviation. form a core part of the team Nigerian Civil Aviation Au- relevant stakeholders in spite have deep aviation sector thority (NCAA) said that the of the challenges caused by What are the implica- experience spanning several Nigerian aviation industry change, global economic lent Future,’ said that climate the ongoing COVID-19 global tions of this process for countries was faced with challenges power shift, demographic change would affect the Afri- pandemic. national security? pre-Covid-19 era, but said the changes, new technology can aviation industry. There are no national se- Why is Federal Mnisstry outbreak of the pandemic had and global connectedness as Trottier, explained that the Is the federal ministry curity implications. The Fed- of Aviation (FMA) working finally exposed the problems some of the current global outbreak of Covid-19 pan- of aviation handling the eral Airports Authority, Nige- with foreign transaction in the sector in Nigeria. megatrends that may define demic would make investors process? rian Civil Aviation Authority, advisors? Participants at the one-day the future of the industry. and lenders to view aviation The Transaction advisor Nigerian Aerospace Manage- The international partners workshop organised by NCAA He added: “There are more investments through a dif- who are comprised of inde- ment Agency and all other who form a core part of the in conjunction with the Avia- networks and communica- ferent lens. Besides, Nuhu in pendent drives the process public authorities tasked transaction advisory team tion Strategies International tions, which seek to connect his address observed that the and reputable private sector with collaborating with the have deep aviation sector (ASI) Institute and Egis with the world than in the past. This outbreak of Covid-19 pan- companies appointed by the Nations security apparatus experience spanning several the theme: ‘Global Mega- leads to things happening so demic had created the need to Ministry of Aviation, having will continue to perform their countries. Their vast network trends and Impact on Aviation fast in the world. According urgently accelerate growth in gone through a rigorous pro- duties in close collaboration of relationships is comprised Workshop,’ yesterday noted to IBM 2016 Study, 90 per cent the industry globally and en- cess as laid out by the Bureau with the concessionaires. All of some of the most credible that infrastructure gaps on of data in the world had been sure the needed changes. of Public Procurement (BPP). relevant agencies have been investors and operators of the continent needed urgent created in the previous two Nuhu explained that it had The Transaction advisor has carried along including the major infrastructure assets, address. years alone. become paramount for play- been mandated to manage National Security Advisor. which includes airports, any- They said that for the chal- “Scientists say frequencies ers in the industry to develop the technical aspects of the where in the world. lenges to be properly ad- of pandemic might increase in strategies that would lead to process – working with key What are the timelines dressed, Civil Aviation Au- the future. Covid-19 pandem- development. He noted that stakeholders such as ICRC, for completion of this pro- How does the FMA aim to thorities (CAAs) in Africa ic was not the first pandemic technology was an ongoing FAAN and the Ministry of cess? demonstrate transparency needed to drive the change ever. Aviation organisations issue, which many of the air- Aviation to design and deliver From the date of publica- and good governance? through technology. Pierre need to plan to reduce such lines had keyed into, but noted the concession programme. tion of the Request for Quali- The FMA has thus far Coutu, President of ASI In- impacts in the sector in the that for the agencies, such The Transaction advisor will fications (RFQ) we envisage demonstrated that it places stitute in his paper: ‘‘Global future.” changes would be a bit diffi- continue to work indepen- 6 – 8 months to transaction great emphasis in transpar- Megatrends in Aviation,’ said For the sector to succeed cult because of regulations. dently with oversight from close. ency and good governance. that the aviation industry faces another pandemic, Coutu He emphasised that unlike the Ministry of Aviation and FMA widely publicised its one of the stringent periods canvassed for scenario plan- in some CAAs on the conti- ICRC. Their recommenda- Will the Government intention to seek approval in the world, courtesy of the ning, adoption of future- nent, NCAA does not receive tions will then be submitted bundle Tier 2 airports into to concession these airports outbreak of Covid-19 pan- wise strategic management, subvention from the Federal to ICRC and the Ministry of this deal at any stage? as far back as 2017. It also demic. competency-based human Government, stating that 80 Aviation before being for- ICRC has issued OBC went through BPP’s rigorous Coutu stated that players in capital, data analysis, risk per cent of its revenues are warded for review and final Certificates of Compliance public procurement process the sector needed to bring out analysis, partnership-based from the Ticket Sales Charge approval by the Federal Ex- for four assets only. These that culminated in the ap- the businesses in the industry organisation and agile organ- (TSC). “We can’t go back to ecutive Council. airports are Murtala Moham- pointment of the Transaction to be ready for the future and isation culture, stressing that the way the aviation industry med International Airport advisors. FMA’s intention to called on the stakeholders to in this era, no rganization was being run before the ad- Will preference be given – Lagos, Nnamdi Azikiwe deliver the most transparent develop some areas to en- could stand alone without the vent of Covid-19 pandemic. to indigenous investors? Airport – Abuja (International infrastructure concession sure compliance with global supports of the others. Covid-19 has given us the op- We are focused on driving & Domestic), Port Harcourt programme to date is also practices. Jean-Marc Trottier, in his portunity to reset the sector,” a transparent and competi- Airport (International & Do- evidenced by the extensive Coutu mentioned climate paper, ‘Planning for a Turbu- he added. tive process that will deliv- mestic) and Mallam Aminu stakeholder engagement er the very best long-term Kano Airport (International carried out prior to making partner(s) and outcomes & Domestic). Our scope is its OBC submission to ICRC. NAHCO clinches United, Qatar Airways for Nigeria. There are not thus limited to these specific FMA also publicised the is- many companies with the airports. suance and handover of the handling contracts, renews others qualifications, experience OBC Compliance Certificates or its records of ac- we are ever ready to provide the respected airliner. and financial resources re- Who are the transac- to the Ministry by the ICRC. complishment of the airline quality handling Also, NAHCO has renewed quired to run assets like the tion advisors for this pro- FMA is briefing you right now service excellence, at all times, as being currently its contracts with Egypt Air ones up for concession so gramme? and will continue to brief you Nigeria’s foremost provided to our numerous and Royal Air Maroc for an- whilst we do expect Nigerian Transaction advisors as we approach and achieve and leading ground client airlines’’. other three years. The new companies, or consortiums (TAs) is comprised of a team key milestones. handlingF service provider, In the same vein, the signings and renewals signal comprised of groups of Nige- of seasoned executives put Nigerian Aviation Handling company recently signed a NAHCO’s commitment to rian investors, we expect the forward by Dentons (a multi- How much does the Company, NAHCO Plc, has five-year contract with Qatar service excellence and reaf- process to receive significant national law firm with global FG think it can generate clinched the handling con- Airways in Abuja, as well as re- firm its leadership position in attention from the interna- operations), Infrata (a global through this process? tract for United State based newed the Lagos contract for the nation’s ground handling tional community, perhaps infrastructure investment ad- We expect to generate sig- United Airlines for the next another five years. And in the business. in partnership with qualified visory firm), Proserve Energy nificant cost savings and oper- three years. word of Prince Lasisi, ‘’with NAHCO Plc is a Nigerian and capable local companies and Infrastructure Consult- ating income over the period United Airlines, having the new contracts, which run diversified enterprise with and investors. ing Services (an indigenous of the concession. Airports voluntarily exited the Lagos for five years and coupled interests in aviation cargo, advisory firm focusing on continue to be prized assets airspace since 2016, is making with the additional frequen- aircraft handling, passenger What role will FAAN play energy and infrastructure in the global logistics sector, a return in November, with cies of Qatar flights to Nigeria facilitation, crew transporta- once the assets are handed projects), Templars (a lead- which is projected to grow. NAHCO as its preferred part- and Ghana, we are glad to go tion and aviation training. over to Private sector man- ing law firm headquartered ner, providing passenger and even further to provide the top The company currently serves agement? in Nigeria) and Rebel Group Will the Central Bank ground handling services. -notch services for which we several airlines across the ma- The Federal Airport Au- (a global leader in infrastruc- give these new investors as- According to NAHCO’s are known and have offered jor functional airports within thority of Nigeria (FAAN) ture, transportation and mo- surances for capital impor- group executive director, busi- the airline for the past nine Nigeria, and handles the larg- remains responsible for over- bility advisory services). tation and repatriation? ness development and com- years’’. est chunk of domestic, foreign seeing the management of The Federal Government mercial, Prince Saheed Lasisi, The newly renewed con- and cargo airlines. Nigeria’s airports. FAAN will How were the transac- of Nigeria will work closely who expressed excitement on tracts cover all service areas, In 2005, NAHCO was continue to play this role tion advisors recruited? with the successful bidders the feat while making the an- as it will see NAHCO provide privatized and listed on the broadly. The Ministry of Aviation, to ensure that they have ac- nouncement, described it as a passenger, cargo, and ground Nigerian Stock Exchange in having gone through a rigor- cess to whatever resources boost for the industry, ‘’NAH- handling services to Qatar Air- 2006. The Company is now Will the FG continue to ous process as laid out by and support required to suc- CO is excited to be the chosen ways. It also includes the pro- owned by over 80, 000 share- invest in these airports? the Bureau of Public Pro- cessfully run these assets on one, we welcome United Air- vision of crew transportation holders, as well as local and The concessionaires will curement (BPP), appointed behalf of Nigeria. lines back to our airspace, and and other ancillary services to institutional investors. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 28 NIGERIA FRONTIER MARKETS

Dikachi Franklin, Owerri expressed worry over the worsen- ing security challenges facing the mo state is facing serious Imo faces insecurity-induced state. dwindling economic activi- “We are in the hotel and hos- ties caused by the prevailing pitality sector, 70 percent of our security challenges where economic downturn guests come from other states in the fear, abductions, kidnap- federation and some outside the Ipings, maim, extra judicial killings country, because they see Owerri as and unrestrained movements of a peaceful town .But since the start security agents, all have combined of the collapse of security situation, to cripple business activities . resulting to arson, abductions and In the Owerri metropolitan killings, patronage has declined council, businesses are facing as a lot of guests have stopped downward movement as shops coming, room bookings, halls for and stores have been partially meetings and conferences have closed due to fear. The big markets been cancelled”, he added. in the metropolis like the former In a telephone phone chat with main market at Douglas road Ow- Anthony Okolie, the general man- erri which was demolished by the Governor Hope Uzodinma ager of Regisgate Hotel limited, former administration of governor Owerri, who is also the general Rochas Okorocha, now a Sena- secretary, Imo State Hoteliers As- tor representing Imo West in the sociation (ISHA), said the hotel national assembly, where there sector has been badly affected be- are still large number of traders is cause of the security challenges as almost empty as sellers and buyers bookings for conferences, meetings of clothings, food items, cosmetics purchase in bulk and come back to now, this is the worst situation that buy food stuffs come back and etc have all been cancelled and put and other business seldomly come offload and sell their their goods to Imo people have faced since the resell”. on hold. out because of fear of being hit by other semi bulk buyers. end of the civil war. It is becom- Also the hotel and hospitality Nigerian Export Promotion flying bullets. At Aboh Mbaise local govern- ing unbearable, and we have not sector of the Imo state economy Council, (NEPC) in Owerri, in The Imo Alaba International ment area, a neigbouring local gov- recorded deaths of our youths like appears to be the sector badly hit conjunction with the National Root market, along Aba road, Naze, a ernment to Owerri metropolitan the number we are recording these as many of the managers have Crops Research Council Institute semi-urban town in Owerri North council, economic activities in the days. Our economy has been badly continued to decry the loss of rev- (NRCRI) Umudike in Umuahia, local government area is partially big, markets like Afor-Enyiogugu, hit and we have not had it so bad enue, investigations by Business Abia state cancelled a planned fuctioning. Selling, buying and Eke-Nguru, Afor-Ogbe, Orie-Uvuru like this”, he told Business A.M. A.M. reveal. sensitization-training event on cas- other economic activities are at a have dwindled. Sellers and buyers Also at Eke-Isu Obiangwu near In a chat with Chima Chukwu- sava value chain scheduled for last low ebb at the time of writing this rarely come out because of fear of the Sam Mbakwe International nyere, chairman of the Imo State Tuesday June 1, 2021 in Owerri. story. Business A.M’s investiga- being hit by bullets. Cargo Airport in Ngor-Okpala lo- Hoteliers Association (ISHA) and Meanwhile, Senator Samuel tions reveal that over 70 percent Those who trade on perishable cal government area, some trad- managing director of Domino Nnaemeka Anyanwu who repre- of the Alaba International market items like vegetables, frozen fish, ers who were seen in pockets of Paramount Hotel Owerri, said the sented Imo East (Owerri zone) in is empty, shops and stalls locked meat, cucumber, watermelon, car- groups, especially women decried security challenges have further the national assembly has urged down. rot etc are the worst hit. Anthony the conditions of Imo state and crippled the already wobbling Imo the All Progressives Congress (APC) The situation is the same at the Opara , a trader at Afor-Enyiogugu blamed the situation on the politi- State economy. led government in Imo state to do Relief market along Egbu road in market near the Sam Mbakwe cal class. He stated that the hotel and everything possible to reduce the Owerri North local government International Cargo Airport, has According to Ogechi Njoku hospitality industry bears much height of panic created in the state area where food stuff dealers from bemoaned the prevailing urgly situ- “hunger is the order of the day, of the problem, as much revenue to enable the people move freely the villages and hinterlands buy ation in the state that has crippled when we see we eat, but when we have been lost through cancella- without fear. He said that due to and sell in bulk and also retail rice, the economic condition of Imo do not see, we sleep with empty tion of conferences, weddings and the current security challenges, beans, groundnuts , onions, pota- state. stomach, our businesses are not many events. In one of the standard businesses are collapsing thereby toes, yams etc. The Relief market “I have been in Imo state, do- going and fear does not allow us hotels, a lady general manager who making the people unable to meet is also where traders who go to the ing my business for over 30 years to travel to other states to go and did not want her name in print, up their financial obligations. Northern part of the country to

Rivers State projects shows prudent Dikachi Franklin, Owerri NAFDAC resources management - Nsirim n order to create a bet- ter understanding of the opens up to Ben Eguzozie, in Port Harcourt sion of academic programmes with functions of the National new satellite campuses of the State Agency for Food and Drug he rash of commissioning University (RSU) in Emohua, Ogoni, Administration and Con- MAN on its of projects and flagging Etche, among others. trolI (NAFDAC) in the minds of off of new ones by Gover- Late last year, Nsirim had said the the manufacturers, the Manu- nor Nyesom Wike in Riv- vast projects, including the flyover facturers Association of Nigeria activities ers State within the last bridges being erected across the oil- (MAN) held a virtual /public Tsix years demonstrate prudent man- rich state by the governor were aimed Governor Wike enlightenment forum with NAF- MAN and NAFDAC. It also served agement of resources and visionary at attracting investors into the state, naira projects as more ‘impres- DAC at which platform Mojisola leadership, said Paulinus Nsirim, thereby grow its GDP. The multi- Adeyeye, director-general of as a means to intimate MAN sionistic’, and lacking ingredients for members, particularly those in state commissioner for information billion-naira infrastructure develop- inclusive economic growth. NAFDAC spoke on issues that and communication. ment in the state attracted couple of concerned the activities as well the chemical and pharmaceuti- APC quickly pointed to the gover- cal as well as food and beverage “Given the economic downturn, investments into the state. nor’s neglect or discontinuing of pre- as the functions of the agency as others of his contemporaries are Last week, Shell Petroleum De- they effected the manufacturers’ sectoral groups, of the policies of vious large-scale agriculture projects NAFDAC to guide them properly complaining of the downturn, (but) velopment Company (SPDC) in such as: the Songhai Farms in Ogoni, businesses and operations. She Governor Wike is commissioning collaboration with the state govern- clarified some regulatory issues on compliance. Buguma and Ubima Fish Farms, The forum further served as projects and flagging off new ones; it ment, inaugurated a $12 million Banana Farm, and then popular Riv- that affected MAN members. is a demonstration that he is a vision- integrated cassava processing plant. The NAFDAC disclosed to another opportunity for manufac- ers State Sustainable Development turers to increase their knowledge ary leader, and prudent manager of Months earlier, Julius Berger’s sub- Agency (RSSDA) which had gener- them that, a lot of changes had resources,” Nsirim said while receiv- sidiary, Abuja Furniture Production taken place with regards to the and better understanding of the ated several employment-generating workings and roles of NAFDAC. ing an award in Abuja on behalf of (AFP) opened a showroom in Port projects, including academic schol- mode of operations of NAFDAC, his boss. Harcourt. arships. specifically the process of port in- At a thanksgiving to mark his Rivers, an oil-rich state with a The APC also recalled Gover- spection as well as clearance but administration’s sixth anniversary, GDP in excess of $33.69 billion as of nor Wike’s termination of sale by she enjoined them to regularly Wike announced the approval to 2016, currently runs among Nigerian Amaechi administration of four state make it a point to visit NAFDAC construct the tenth flyover bridge sub-nationals with high unemploy- gas-powered electricity plants with a portal for new updates. in Port Harcourt, the state capital. ment rates. Data from the National combined 541 megawatts (MW) ca- To enhance communications There are a number of other roads, Bureau of Statistics (NBS) show that pacity valued at over $302 million. between the agency and manu- including the historic first landfall in quarter four of last year, its unem- The plants were sold to NG Power facturers, and for proper and swift at Bonny Island, home to Nigeria’s ployment rate was 41.59 per cent and HPS, an affiliate of Sahara Energy resolution of issues, it was agreed multi-billion-dollar LNG plant. The underemployment of 17.63 per cent. Limited owned by billionaire busi- that manufacturers should submit road leads to Bodo, heart of oil-rich With a population of 5.35 million, the nessman, Tonye Cole. The three gas details of their representatives Ogoni land. state has a labour force of 3.94 mil- turbine power plants are the Omoku for NAFDAC related issues to the Others are the Bori-Sakpenwa- lion, with 1.64 million of this number (150 megawatts), Trans Amadi (136 secretariat of MAN. In appreciation, Mansur Ahmed, Kono road, roads in Etche, Ishiokpo, going without employment. megawatts), Afam (180 megawatts) According to the report from president of MAN commended Emohua, Abua Odual, among others. Meanwhile, the main opposition and Eleme (75 megawatts). To- Prince Henry Cyprain, execu- Mojisola Adeyeye, the director The governor had also built edu- party in the state, All Progressives day, the plants lay in freeze mode, tive secretary, MAN Imo/Abia general of NAFDAC and urged cational, healthcare and judiciary Congress (APC) had severally criti- bringing no revenue into the state branch, the meeting offered a that such forum be made a yearly infrastructure, including the expan- cised the governor’s multi-billion- economy. good opportunity for collabora- event and NAFDAC boss accepted tion and partnership between it. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 TRANSPORT BUSINESS 29

MOTORING AVIATION RAIL ROADS MARITIME Stories by Mike Ochonma get, making it the preferred option Motoring/Business Editor for car buyers in the country,” said, All-new K5: Delivering sport, Olawale. he K5 luxury sedan “Kia has a longstanding com- since its launch in Ni- mitment to innovation, quality and geria has continued to safety, luxury on value driver satisfaction, and we’re hon- wow and creates head- ored that the Nigerian market and turning experiences car owners appreciate these values to people across the in our vehicles,” said Debanja Paul, Tcountry. Its wide acceptance and awe assistant vice president Sales, Kia are a testament to Kia’s commitment Nigeria. to design, quality, and the owner- The all-new K5 is a fastback ship experience and shows that the evolution of Kia’s global best- brand’s dedicated philosophy of selling sedan, combining a striking building forward-thinking sporty new design with a driver-focused sedans is resonating with customers interior, cutting-edge technolo- and car enthusiasts. gies, and all-new powertrain op- K5’s aesthetically beautiful ex- tions. Almost a decade on from its terior and fresh new look are cited game-changing predecessor, it also as reasons the premium midsize represents the latest milestone in sedan remains appealing to all. The Kia’s transformation into a creator eye-catching design amongst other of desirable, world-class cars.” technologically innovative features Lauded for roomy, high-tech put it atop the premium mid-size interior, sharp handling and fresh sedan segment in Nigeria and across new look, it pleasantly surprised the globe. the market with emotional design The impressive number of test and luxurious ride quality. Greater drives K5 continues to reel in proves levels of cabin, high-tech safety that the premium sedan holds an Kia Nigeria. premium materials, sporty driving ing it the best option for car buyers. features, and revised chassis char- important place in a crossover- Customers’ experience after tak- manners, and outstanding safety K5 has continued to give enthusiasts acteristics mean the K5 is more dominated market and has created ing the new K5 for a spin, proved technology. something to lust over at an afford- relaxing, confidence inspiring a niche in the Nigeria market,” said that they are impressed with its “The K5 offers the best blend of able price point as it offers the best and engaging to drive than ever Olawale Jimoh, marketing manager, unique style, well-organized interior, features and fun on a budget, mak- blend of features and fun on a bud- before.

AN Nigeria Limited Higer Nigeria committed to EV revolution, bus has been recognized PAN attributes Higer’s as the best new auto en- cleaner environment-NADDC DG trant in the commercial vehicle category during award to product quality irector-general of the electric vehicle comes with many an award ceremony that formed National Automotive advantages. P part of the activities at this year’s Design and Develop- Other speakers at the event in- annual Transport Day’s Nigeria ment Council (NAD- cluded the corps marshal of the Annual Transport lecture, exhibi- DC), Jelani Aliyu, has Federal Road Safety Corps (FRSC), tion and award themed: “Improving stated that Nigeria is committed to D Nigeria Transportation systems, the electric car revolution and cleaner, way forward” held at the Sheraton sustainable environment. He made Hotel,Ikeja,Lagos state. this assertion whiling delivering a The award was received by the paper virtually at the recently held general manager, planning and Nigeria Transport Lecture at the strategy, Bawo Omagbitse on behalf Sheraton Hotel, Ikeja, Lagos. of the acting managing director, He recalled, “On the 5th of Feb- Taiwo Oluleye, FCIS. ruary, 2021 remarkable history was PAN in strategic partnership with 19-seats and the Ambulance. The cal mattress, silicon resuscitators made, when the honourable minister China’s Higer Bus Company Limited vehicles, which are used for mass with mask, pulse oximeter, digital of industry, trade and investment, Commenced the local production of transit, transportation of schoolchil- thermometer, 2kg fire extinguisher, Niyi Adebayo, unveiled the first two models of the buses in its plant in dren and ambulance services, rolled automatic loading stretcher, scoop Nigerian Assembled electric vehicle Kaduna. PAN Nigeria is the country’s off the company’s assembly lines in stretcher, AC/DC electronic suction in Abuja. Two months later, on April foremost multi-brand automobile Kaduna in December2019. machine, and oxygen regulator, 8th, 2021, incredible history was manufacturer and assemblers with The bus comes with features among others. again made when the National Au- Jelani Aliyu, DG, NADDC Higer Bus Company established in such as charging ports for all pas- In her reaction, Taiwo Oluleye, tomotive Design and Development 1998 is China’s leading exporter of sengers, park assist, rear camera, acting managing director of PAN, Council commissioned Nigeria’s first Boboye Oyeyemi; National President buses and coaches, whose vehicles DVD/15’LCD display for passengers expressed her appreciation for the solar powered EV charging station of the Association of Nigeria Licenced are available in more than 100 coun- as well as spacious leg and head award. She further stated, “This in Sokoto’’. Customs Agents (ANLCA), Tony tries in Asia, Middle East, Africa, room. In addition, the ambulance is award is an affirmation of PAN Ni- With these two bold events, Ni- Nwabunike; chairman, governing Europe, and America. fitted with state-of-the-art medical geria’s commitment to the delivery geria joined the league of nations board of the Nigerian Institute of Higer models produced in Ni- equipment such as suction cath- of reliable vehicles that surpass committed to the Electric Car Revo- Transport Technology among oth- geria are the H5C 16-seats, H6C eters, stretcher belts and anatomi- customer’s expectation”. lution, committed to protecting the ers. environment and ensuring a cleaner and more sustainable future”, add- andalisation of railway ing that the NADDC is excited and facilities in and around Rail tracks criminals to face consequences, warns FG honoured to be championing and Nigerian railway sta- pioneering these developments. “We’ve gone to the National tions will not be taken Assembly to give permission to According to Jelani, the NADDC with levity, as perpe- is not just promoting the local pro- borrow. When the approval comes, tratorsV will be placed in detention then, we start the process of nego- duction of traditional automobiles, until damaged facilities belonging but also seriously committed to the tiation. When we conclude nego- to the Nigerian Railway Corpora- tiation, we start the construction, adoption and production of highly tion (NRC) are fully restored by advanced technological transporta- but for now, we will proceed with violators. Kaduna-Kano because we have tion solutions. Rotimi Amaechi, the minister of In this vein, the NADDC boss made some financial advancement transportation issued the warning vandals. from Apapa to Ibadan have been from our budget, and we still have explained the Council is currently during his final inspection tour of “Nigerian Railway Corporation completed and some of the chal- strategizing with the following initia- money for the budget this year, “he the Lagos-Ibadan dual standard and Nigerian Ports Authority are two lenges encountered during his pre- stressed. tives and programs: Electric Vehicle gauge project. Accompanied by Lai agencies in the ministry of transporta- vious inspection have been resolved Policy Development; NADDC direct He also expressed sympathy for Mohammed, minister of informa- tion that have police. We will deploy in line with the commissioning the communities being ravaged by Research and Development; and tion; Alhassan Musa, chairman, the police to all the railway stations scheduled for June. Promotion and support of stakehold- flooding and erosion as a result of board of directors of Nigerian Rail- and vandals will be put in detention On why the construction of the the railway development activities ers’ production. way Corporation and Fidet Okhiria, until they replace the vandalised fa- Ibadan-Kano railway moderniza- Others include the development that passed through the areas. He managing director, NRC, added cilities,” the minister noted. tion project is yet to commence, pointed out that the management of charging Infrastructure, and col- that the NRC has been equipped Expressing satisfaction on the Amaechi explained there are pro- laboration with academia and re- of Nigerian Railway Corporation with a police unit and security level of work done so far, the trans- cesses being made to accomplish (NRC) has been directed to meet search institutions, both local and equipment to protect railway fa- portation minister said the most the project and one of the processes international. He added that the with the communities with a view cilities, maintain order and arrest critical facilities in all the terminals involved borrowing funds. to solving the problems. BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 30 TECHNOLOGY & INNOVATION

Onome Amuge Zoom’s Q1 profit soars amid Charles Abuede Google launches plan eading video commu- oogle recently kicked to support African nications enterprise, strengthened digital drive off a series of pro- SMEs recover from Zoom, recorded over grammes focused on Covid-19 impact 741 per cent net profit in lending support to the first quarter of 2021, budding businesses, nesses forming the backbone of the Lbolstered by rising adopted hybrid Grolling out throughout the month of economy. While these businesses work models and demand for video June, which will not only support the account for 80 per cent of the re- conferencing by companies and growth and recovery of small and gion’s employment, the COVID-19 organisations across the world. medium-sized businesses (SMBs) pandemic and restricted business According to data released by in Africa’s post-COVID economy activity over the past year have had, the American communications but will help them thrive. This move and continue to have, a significant technology company, net profit to comes less than a year after Google impact on them and the livelihoods shareholders surged to $227 mil- committed to helping more than of millions. lion, from $27m in the same period 500,000 businesses, jobseekers and Some of the said activities year-on-year. vulnerable people with support planned by Google for the Inter- The Nasdaq-listed company packages including free business national Small Business Month further reported that revenue dur- tools, training and grants. include: The launch of a new Google ing the February-April period Mojolaoluwa Aderemi-Makinde, for Small Businesses portal to help increased 191 per cent on an an- Google’s head of brand and repu- small businesses find the solutions nualised basis to $956.2m, beating tation for Africa, while unveiling and guidance they need to get on- analysts’ estimates of $906m. the plans from the technology line and grow Eric Yuan, Zoom founder and giant recently in Lagos, said these A series of SMB skills webinars chief executive officer, said the programmes are an illustration of aimed at helping small businesses company kicked off the fiscal year Zoom serves to empower teams to Zoom raised its revenue outlook Google’s ongoing commitment use digital tools to connect with with a very strong first quarter connect and bring their best ideas for the second quarter ending in to ensuring that small retail busi- and grow their customer base. with strong profitability and cash to life “ he noted. July this year and the 2021-2022 nesses on the continent have the Shop Small Fridays being a social flow. Zoom first quarter revenue financial year. The company’s stock right tools and skills to bounce back media video series highlighting and He added that the company’s growth was underpinned by new has gained over 57 per cent in the from the impact of the pandemic celebrating small businesses across steadfast commitment to empow- customers and expanding across past 12 months and its operating and drive the continent’s economy the continent. ering customers to work and learn existing customers, analysts ob- cash flow was $533.3m for the first once again. Google for Small Business portal from anywhere with its expansive, served. quarter, nearly 274.3m more than “As more consumers start their has been developed as a one-stop- innovative and frictionless video By the end of the first quarter, the same period in 2020. journey looking for products and shop for small businesses to get communications platform has the company had nearly 497,000 Second-quarter revenue was services online, we want to do more started on the web and to grow driven it towards achieving consis- paid customers with more than forecast in the range of $985m to help retail small businesses digi- their digital presence, helping them tent results. 10 employees, up by almost 87 per and $990m while full-year rev- tise and better leverage online tools choose the appropriate tools for “We are pleased to raise our total cent from the same period last fis- enue is expected to be between for growth. One thing we know for online success and the achievement guidance range for the full fiscal cal year. $3.97 billion and $3.99bn – about sure is that when small businesses of their business goals. year and also energised to help The company invested 65.2m in 50 per cent more than its finan- recover, African economies rebound “This portal is all about support- lead the evolution to hybrid work research and development in three cial earnings in the last financial and do well and this benefits every- ing businesses as they get online. that allows greater flexibility, pro- months to April 30, nearly 6.8 per year. one,” Aderemi-Makinde said in a In a competitive business environ- ductivity, and happiness to both in- cent of the total revenue earned Industry experts have said statement made available to busi- ment, digital technology helps to person and virtual connections. We during the quarter. It is reportedly Zoom’s sizable cash reserves will ness a.m. drive economic growth and job have also opened our technology developing an email facility that help it acquire new start-ups and On the African continent, small creation, while delivering valuable portfolio to developers and work is will compete with Google’s Gmail competitors in the space of video and medium businesses account services to people in Africa,” contin- no longer a place but a space where and Microsoft’s Outlook. conferencing. for around 90 per cent of all busi- ues Aderemi-Makinde. Twitter ban and implications for Nigeria’s ease of doing business

Charles Abuede days after Nigeria’s president Muhammdu Buhari’s controver- he Nigerian tech and sial tweet, which is against the business ecosystems platforms tolerance for hate and may have more to threatening tweets, was deleted worry about on the by Twitter and has seen the gen- fact that business ac- eral public labelling the tweet as Ttivities that can thrive using ‘genocidal’. technology-driven platforms to “Many of those misbehaving reach customers are now seeing today are too young to be aware the dark moments of regulatory of the destruction and loss of lives bottlenecks in Nigeria. Conse- that occurred during the Nigeria quently, reactions have trailed the Civil War. Those of us in the fields indefinite ban on the operations for 30 months, who went through of American microblogging and the war, will treat them in the lan- social media platform, Twitter, guage they understand,” the Presi- in Nigeria over what the Nigerian dent’s now-deleted tweet read. President Buhari government cited as the platform Meanwhile, the deleted tweet ter points that the suspension of OTT and social media operations nesses reach out to their clients is being used for activities that has raised widespread reactions Twitter in Nigeria and the manda- in Nigeria,” FG stated. via the platform. are capable of undermining the from citizens who have criticised tory registration for social media On the other hand, a 2020 Also, there could be an at- country’s corporate existence. the president on his use of words companies or platforms operating World Bank report on ease of do- tempt to disrupt the free flow According to an announce- to incite violence and threaten in Nigeria has been described by ing business rank Nigeria 131st of information to Nigerians as ment by the federal ministry of civil war on Nigerians whereas many as an attempt to pass the out of 180 countries of the world. most organisations make public information and culture, through he knew the outcome of the last social media bill using the back- According to the report by the announcements as well as the Segun Adeyemi, the Special As- civil war where lives were lost. door in the drive to regulate social World Bank Group, Nigeria which Nigerian government passing sistant to the President (Media), Although, the faceoff between the media. It could also mean that the is classified as a lower-middle-in- information sounding so vital to Office of the Minister of Infor- Nigerian government and Twit- government could order telecom come group that has ease of doing the public via Twitter. mation and Culture, “The Fed- ter began when Jack Dorsey, the companies to restrict access to business (DB) score of 56.9 which However, this could be send- eral Government has suspended, Co-founder and CEO of Twitter, Twitter if the move is not fought is approximately 57 and out of 190 ing signals to policymakers and indefinitely, the operations of drummed his unrelenting support against. Though, FG has ordered indices to be ranked on, Nigeria the nation at large on seeking the microblogging and social to Nigerian during the #EndSARS the telecoms sector regulator to falls into 105th in starting a busi- ways to salvage the situation and networking service, Twitter, in protest in October 2020. begin licensing process for all ness, 169th and 183rd in the area place Nigeria on the forefront Nigeria. The Minister of Informa- However, fate was positive for over-the-top (OTT) platforms and of getting access to electricity and as an investment destination tion and Culture, Lai Mohammed, the American company, who in operations of social media firms registering a property for the use in Africa while her economic announced the suspension in the prowl for an African head- in Nigeria. of business among other issues. status could be regained by all a statement issued in Abuja on quarter moved the proposed “The minister said the federal The above signifies that the claims on the foreign investment Friday, citing the persistent use of office to Ghana two months ago, government has also directed the rate of unemployment in Nigeria inflows and the increased rate of the platform for activities that are instead of Nigeria on the ground National Broadcasting Commis- may be on the rise beyond what it industrialization so as to create capable of undermining Nigeria’s of insecurity and freedom of sion (NBC) to immediately com- is currently (33 per cent) as most more job opportunities for those corporate existence.” speech. mence the process of licensing all Nigerian micro and small busi- concerned. The ban comes barely three A cursory look into the mat- BUSINESS A.M. MONDAY, JUNE 7 - SUNDAY, JUNE 13, 2021 TECHNOLOGY & INNOVATION In Association with 31

New Google policy will see ICOs ads, DeFi tocurrencies or related prod- serve as a guide. COBIT ucts such as cryptocurrency Data & (Control Objectives for trading protocols banned on platform trading signals, cryptocur- Information and Related rency investment advice, Technologies), for example, Charles Abuede one state as a money trans- aggregators or affiliate sites Information is a framework created by ech and search mitter, or (b) a federal or containing related content Information Systems Audit engine giant, state chartered bank entity. or broker reviews, according Governance and Control Association Google, has un- Also, they will have to comply to Google, is prohibited. MICHAEL (ISACA). The COBIT frame- veiled plans that with relevant legal require- “As a reminder, we expect Insight work ensures the quality, will see it revise ments, including any local all advertisers to comply with IRENE, PhD control, and reliability of itsT financial products ser- legal requirements, whether the local laws for any area Twitter: @moshoke information systems in an vices policies to increase the at a state or federal level and that their ads target. This Email: mike@mireneglo- organisation. scope of its advertisement ensure their ads and landing policy will apply globally to balconsults.com.ng Implementing informa- supervision on crypto ex- pages comply with all Google all accounts that advertise tion security management changes, wallets and related Ads policies. these financial products,” frameworks usually requires businesses and services. The technology giant Google said. Addressing The Information Security specific distinct steps, de- Google revealed this in an went on to specify that adver- However, the new policy pending on what a company official document earlier this tisers must comply with the will be used to substitute the Management Framework Question is trying to achieve. First, relevant legal requirements current policy, which has the company must define June, noting that the changes ompanies can of the implementations of to the policy seek to clarify regardless of if the company been governing crypto ads criteria for implementation, is at the federal, state or local since September 2018. On become more these standards often remain determine requirements for the requirements that cryp- efficient and ef- highly manual, which makes to-related businesses need levels. Google said the firms the other hand, prior to this gap analysis, establish rules must ensure that their ads time, Google had banned fective in com- them expensive. for reviews, and define re- to meet before advertising bating data To implement industry their products on the search and landing pages comply crypto ads altogether af- view completion and docu- with Google Ad policies. ter Facebook implemented breaches,C data misman- standards in cyber and in- mentation protocols. engine. agement, and improving formation management sys- According to the publica- In the publication, Google a similar policy earlier in I also would like to see announced that in the new 2018. The technology giant information security while tems, institutions must pay more standards pushed for- tion by Google, firms seeking building the trust of their attention to gap analysis, risk to showcase crypto exchange policy, initial coin offerings unveiled this news through ward by industry leaders (ICOs), DeFi trading proto- an official document on June customers and employees identification, re-evaluating within Africa regarding in- and wallet services to US by employing globally ac- existing policies, managerial citizens will have to meet cols, cryptocurrency loans, 2, noting that the changes formation security manage- initial DEX offerings, token made will be effective start- cepted information security involvement, risk mitigation, ment standards. There is with the new prerequisites standards. and training. beginning from august 3, liquidity pools, celebrity ing August, this year as all a dearth of such measures crypto endorsements, un- other certifications will ex- This implementation cre- Institutions, therefore, within Africa or created by 2021. A breakdown of these ates a challenge for insti- require a strategic mindset requirements showed that hosted wallets and unregu- pire on August 3. Meanwhile, African institutions. There lated dApps advertisements the company also added tutions who wanted to be and the needed technical is many opportunities to advertisers will have to be looked at, internally and expertise and organisational duly registered with (a) Fin- will be prohibited. Also, ad that it will publish the cer- develop standards that pay destinations that aggregate tificate application form July externally, as a company that capabilities in the imple- attention to the African busi- CEN as a Money Services puts these features of indus- mentation of most industry Business and with at least or compare issuers of cryp- 8, 2020. ness climes. I digress. try standards into extensive frameworks. Proper imple- Assuming companies use in their information sys- mentation of these known perform these industry tems management schemes. standards boost audit ef- standardisations and im- Jack Dorsey mulls bitcoin hardware wallet As such, company executives fectiveness, increases align- plementation correctly, the in various industries pose ment with regulatory obliga- sharing some of our guiding globe are becoming more quality of any company’s Onome Amuge these questions: what in- tions and improves customer information process flows, principles,” he wrote. adapted to dealing in cryp- formation security manage- service. ack Dorsey, chief Hardware wallets are tocurrency and have seen and management can be ment framework should we Most stakeholders rec- improved significantly by executive officer, used by cryptocurrency huge customer demand for implement? Is the Payment ognise the importance of Square Inc. said the investors who want an ex- access to the market. Tesla thirty-eight per cent, experi- Card Industry Data Security these recognisable global ence indicates. digital-payments tra layer of protection from Inc., MicroStrategy Inc., as Standard (PCI DSS) enough? standards. For example, af- company is contem- holding their coins on a well as Square, are among Companies reduce Which International Orga- ter implementing ISO 27001 breaches, and the identifi- Jplating building a bitcoin web-enabled device and leading corporations that nization for Standardization frameworks in an institution, hardware wallet, a device allows crypto users to hold hold Bitcoin on their bal- cation and documentation (ISO) should we opt for? business procedures are of risks are improved, create that holds the digital cur- coins and include a public ance sheets and the surg- Institutions are relying more effective and improved rency but isn’t connected and private key that acts ing purchases of bitcoin new processes, and improve increasingly on industry stan- to meet various local and existing business processes. to the internet. as a blockchain address. have been a major boon for dards as part of ongoing due international standards. Dorsey, who is also CEO It further serves as a pro- Square over the past year More importantly, these diligence in their compliance Industry Standards are institutions can meet regula- of Twitter Inc. and a vo- tection against hackers as more consumers have frameworks. However, some not regulations. They only cal advocate of bitcoin, who have become adept at flocked to the cryptocur- tory targets more quickly and announced the plans in very sophisticated meth- rency. implement known frame- a recent tweet, explain- ods of stealing crypto that Square takes a transac- works to better their overall ing that the programme include taking over some- tion fee when users buy capabilities. would be built entirely in one’s phone to access the or sell the cryptocurrency Implementing any in- the open,from software private keys that are neces- through its Cash App, but dustry-standard security to hardware design, and sary to move bitcoin, ether the profit the company framework is a challenging in collaboration with the and other digital assets. makes on each transaction task requiring considerable community. In recent times, banks, is small compared with the commitment and resources. “We want to kick off this corporations and finan- overall revenue generated, However, institutions ca- thinking the right way: by cial institutions across the it reported. pable of astute decision- The company noted that making and effective imple- adding a hardware wallet mentation have generated to those existing services is significant benefits from the likely to boost customers’ performance of these frame- loyalty. It is however ar- works. After implementing gued that despite increased the ISO 27001 framework, security, hardware wallets a stakeholder said that they can be hacked to reveal the have “have become more PIN code that unlocks the efficient and effective in se- device but in that case, the curing and managing our in- hardware wallet has to be in formation assets, improved the hacker’s possession. our regulatory compliance,

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businessamlive @businessamlive @businessamlive businessamlive Media TOWARDSa.m. MORE EFFICIENT MARKETS Re-assessing Africa’s relevance in global affairs under climate change (3) ent. What they have not been able African-led, with the stated aims to successfully do is to find the of restoring Africa’s degraded OLUKAYODE right balance between economic landscapes and transforming mil- growth, population increase, en- lions of lives in one of the world’s OYELEYE vironmental vulnerability and poorest regions, the Sahel and in- climate crisis, all of which are on tended to cover an 8,000 km natu- Dr. Oyeleye, a the upward trajectories. From the ral wonder of the world stretching consultant, journalist complex interplay of globalisa- across the entire width of Africa. It and policy analyst, tion, wealth creation, technologi- was initially conceived as a way to can be reached via: cal advancements, environmen- combat desertification in the Sa- tal pollution and various forms hel region and hold back expan- oyeson2@yahoo. of politics associated with these, sion of the Sahara, by planting a co.uk Twitter: @ there seems to be greater risks wall of trees stretching across the OlukayodeOyele1 ahead as the UN has chosen the entire Sahel. Although the Great World Environment Day theme Green Wall is now reportedly be- VERY GOOD INTER- around ecosystem restoration. ing implemented in more than 20 VENTION PLAN needs The escalating climate and biodi- countries across Africa and more realistic implementa- versity crises putting the world’s stating that “millions of people Zhenmin, UN Under-Secretary- than eight billion dollars have tion guidelines, time- forest at risk has been recognised have turned to forests for their General for Economic and Social been mobilised and pledged for lines, elaborate de- as potentially risky for the people most essential subsistence needs Affairs, as saying that “investing its support, the 2020 data could Escription of actors, clear pathways who rely on the forests one way or during the COVID-19 pandemic.” in forests is investing in our fu- be taken to mean that there is still for funding, accountability criteria another, directly or indirectly. This statement, credited to the ture” and “we must strengthen our a long way to go in a projected and unambiguous details on im- Arguments about the CO- UN Secretary-General António global efforts to protect and re- originally framed to restore 100 pacts, all of which could be put in VID-19 lockdown have been Guterres, was merely stating the store forests and support the live- million ha of currently degraded proper contexts by outlining the neither here nor there as some obvious and emphasising a linger- lihoods of forest-dependent com- land; sequester 250 million tons monitoring and evaluation (M&E) opined that the global lockdown ing problem. munities. Only then can we realize of carbon and create 10 million mechanisms, key performance helped to restore the environment Before the pandemic, the poor our shared vision for a more just, green jobs by 2030. indicators (KPIs) and comprehen- on one hand while some posited people in developing countries equitable and sustainable world.” The accomplishments thus far, sive impact assessment criteria. that the lockdown forced many have been living off the forests. This statement will be taken se- from 2020 data indicate that not Activities that have led the world people to embark on activities in- One major reason for steady de- riously in Africa if Zhenmin can many the countries involved have to the present extent of environ- imical to the forest on the other forestation in many African coun- look the Chinese government achieved much success along the mental pollution and degradation hand. The validity of either side tries was that government’s pres- straight in the face and advice it to Sahel region from Senegal in the have been mostly motivated by of the arguments could very well ence has not been felt beyond refrain from further exploiting the West to Djibouti in the East of Af- optimism and sense of possibili- be circumstantial, situational and towns and cities in many coun- pristine forests of the Democratic rica. For the 11 countries listed as ties which, in practice, have prov- location-specific: it may not hold tries, as their livelihood practices Republic of Congo (DR Congo) for intervention zones for the Great en to be one-way and presumptu- a universal relevance, and this is have been largely informal, leav- export as timber into China while Green Wall, namely: Burkina Faso, ous thinking that downplayed the the reason why some viewpoints ing the rural people to depend on it protects its own forests. Chad, Djibouti, Eritrea, Ethiopia, intended and unintended conse- may not provide the pictures that nature for subsistence. One of the Halting the deforestation in Mali, Mauritania, Niger, Nigeria, quences. is globally representative. Politi- resources from nature that they developing countries that now Senegal, and Sudan, the results The world has advanced tech- cians will like this, not for the good exploit most is the forest, as many hold significant proportions of have varied very widely, from nologically, scientifically and eco- of all, but for advancing their own cut down trees indiscriminately the world’s forests might remain Senegal that covered 0.8 Mha in- nomically as a result of audacious agenda, no doubt. Those who for timber or charcoal making for a Herculean task as long as the tervention area to Niger that has and innovative thinking, discov- publicly acknowledge that the sale in instances and places where interests behind the massive ex- covered 47.3 Mha, according to eries and inventions. And more various man-made advances are health-friendly, environmentally ploitation cannot be reined in. The the UN Convention to combat de- are still coming. The Malthusian being threatened by the “overall friendly and economically afford- world seems to be on a course that sertification. A total of 156.1 Mha Theory of Population, once criti- worsening state of our natural en- able alternatives of fuel for cook- is most difficult to deviate from, has been covered so far, based on cised and derided by latter day vironment, including land degra- ing are lacking. If the onslaught on and influential politics as well that report. Africa needs to halt pundits as the world economy and dation, pests and invasive species, the forests during the COVID-19 as investments and wealth cre- deforestation and boost refores- population grew exponentially in fires, storms, and droughts” have lockdown was exacerbated, that ation motives will most probably tation. But the continent needs tandem, appears to be back in full strong arguments. But they too are could be understandable, but CO- continue to drive the world fur- to look inwards, reflect over the reckoning. The new thinking and preparing the grounds for those VID-19 lockdown did not neces- ther down that path. The leading peculiarity of the situation, ap- obsession about climate appears “climate smart” politicians, espe- sarily make that a novel practice. voices against deforestation need propriate modalities for achieving to be raising fears about threats to cially those of the order of Green However, this highlights the pro- to come up with the business and these aims and jettison imported the world’s future as ‘sustainabil- New Deal, who grandstand as the tracted failure of governments in economic models to follow, rather models of solutions that would ity’ has now become a buzzword ‘saviours’ of the world from envi- Africa and the lip services paid to than making blanket advocacies not help the continent. The Afri- among those showing concerns ronmental threats. climate commitments, such as the as it is very clear that pecuniary can Union needs to be particular- for the years ahead. Although the This is where Africa needs to Nationally Determined Contribu- interests – under the veneer of ly vigilant, responsive and delib- talk about food has been variously be discreet in what position to take tions signed up to by many coun- various other considerations – is erate in its pursuit of these aims. described and discordant voices and decisive in what actions to tries during the COP 21 meeting at the core of today’s spate of de- Merely writing down the stated are raised about assortments of so- embark upon on climate and en- in France in 2015. Guterres could forestation. Those who acknowl- purpose and sitting back would lutions, the reality of the theory of vironment issues. While the global be right to some extent that “many edge that increasing rural poverty, not help. Just as nature abhors exponential population and arith- north has undergone its era of de- countries were working hard to unemployment and population vacuum, if the African solutions metic food supply growth pro- forestation and now wants to dic- reverse native forest loss and in- growth, combined with greater are not adopted, any other solu- posed by Thomas Robert Malthus tate to others about how to handle crease protected areas designated competition for land with other tion from elsewhere will fill the may be manifesting in some sig- deforestation or remedial affor- for biodiversity conservation,” but sectors, including agriculture space. And Africa’s deforestation nificantly different ways. It could estation, African thought leaders how fast and how far those efforts and urbanisation, are also put- problem will continue unabated. be that a balance between popu- must understand and reckon fully could go in reversing the defores- ting growing pressure on forests Although the politicians are not lation growth and food supply has with the fact that not all the lead- tation that has been accomplished should also come to terms with the most suitable set of people to not been significantly threatened ing voices on environmental is- already is subject to much doubt, this fundamental issue of material lead the charge in terms of ideas, by inadequate production of food, sues are altruistic. It can be argued especially when the remedial ac- gains driving all of these disrup- they are nonetheless needed to but unfolding environmental and that many of the industry-led tors are bogged down by divisive tive forces on the forests. push ideas coming from a rich climate events could still prove voices and those working through politics, funding constraints and The African experience on repertoire of seasoned policy and Malthus right, ultimately. political figures are clearly pursu- sometimes unclear roadmaps to halting deforestation since over strategic studies experts. Politi- Last week, the United Nations ing parochial agendas. Therefore, guide implementation. It is also the past one decade has not been cians should give them the space (UN) launched the Decade on the Western-inspired models may apposite to state that “it is still too reassuring. The grandiose proj- and the boost. What is most im- Ecosystem Restoration as part of not be the best for Africa in tack- early to assess the impact of the ect called the Great Green Wall, portant is to get Africa to over- the World Environment Day com- ling the remedial actions on for- pandemic on the world’s forests.” launched since 2007 by the African come the problem. The thinkers memoration. Earlier in April, a ests and environment. Take this While plausible statements Union as “a symbol of hope in the should be supported to emerge document titled ‘The Global Forest extract from the UN Department come from high places, it is im- face of one of the biggest challeng- with the right strategies while Goals Report 2021’ was released. of Economic and Social Affairs on portant that the stated recogni- es of our time – desertification,” the politicians take the credit for From such a report, the unease of The Global Forest Goals Report tions are matched with appropri- is yet to make any noticeable im- pushing the ideas for implemen- many leading diplomats, thinkers 2021, which emphasised one side ate actions. The same UN report pact after 14 years. It was an initia- tation. It is time for a home-grown and activists has become appar- of a multidimensional problem, that quoted Guterres also cited Liu tive described as game-changing solution to Africa’s deforestation.

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