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NSE Bitcoin Everdon Bureau De Change FMDQ Close FOREIGN EXCHANGE TREASURY BILLS FGN BONDS - $43.19bn Foreign Reserve Market Spot ($/N) 3M 6M 5 Y 10 Y 20 Y Biggest Gainer Biggest Loser BUY SELL Cross Rates - GBP-$:1.28 YUANY-N53.06 ₦1,297,150.35 -3.18 pc 0.29 0.00 Dangcem Stanbic $-N 359.00 362.00 I&E FX Window 364.00 -0.02 -0.01 0.15 N184.8 0.98 pc N47.95 -9.95 pc Commodities Powered by £-N 456.00 464.00 CBN Official Rate 307.00 14.27 13.41 14.57 15.57 15.54 Cocoa Gold Crude Oil 30,962.26 €-N 405.00 413.00 Currency Futures NGUS MAR 27 2019 NGUS JUN 26 2019 NGUS DEC 24 2019 US$2,415.00 $1,283.90 $53.33 ($/N) 364.89 365.34 366.24

NEWS YOU CAN TRUST I **TUESDAY 01 JANUARY 2019 I VOL. 15, NO 214 I N300 g www. g @ g Five things businesses must prepare for in 2019 CCNN tops market gainers in 2018

LOLADE AKINMURELE he New Year is upon us and there are five things Tcorporate boardrooms in Nigeria must critically examine ahead expanded listing from merger in preparing for the year. Naira downside LOLADE AKINMURELE change in 2018, after advancing Approvals came from the Monday. 104 percent. Securities and Exchange Com- With this, the shares of the The first thing and probably ement Company the most important is what the There is optimism going into mission, the Nigerian Stock expanded entity are expected to of Northern Nigeria the New Year for the cement Exchange (NSE), a Federal High be listed on the Nigerian Stock New Year holds for the naira. (CCNN) emerged With the naira set to buckle maker after regulators, share- Court sitting in Lagos, and the Exchange, they said. the top gainer holders and a court gave approv- shareholders, the companies The merger raises the total under the weight of lower oil among listed equi- prices and an OPEC-induced al to a planned merger between said in an emailed statement Cties on the Nigerian Stock Ex- the company and BUA Cement. made available to BusinessDay Continues on page 34 production cut, businesses must put foreign exchange hedging strategies in place. That simply means converting a good chunk of cash currently denominated in naira to dollars. That way, in the event of a naira devaluation or deprecia- tion due to a drop in the supply of foreign exchange into Nigeria on the back of lower oil prices and production, businesses are sufficiently shielded from revalu- ation losses. Brent crude, the benchmark grade for Nigerian oil, ended the year at $53.8 per barrel, the low- est since July 2017. That’s lower than the $60 benchmark price in the 2019 budget. This year has only begun, but this could be an early sign of a bumpy ride for oil Continues on page 34 Inside Nigerian students, business people stranded after US Embassy’s R-L: Akinwunmi Ambode, governor, Lagos State; Hakeem Muri-Okunola, new Head of Service, and Bola Tinubu, national leader, APC, during the indefinite shutdown P. 2 swearing-in ceremony of the new Head of Service, at the Lagos House, Alausa, Ikeja, yesterday. Buhari has a history of smuggling in looted funds – Atiku INNOCENT ODOH, Abuja Muhammadu Buhari that he is history shows that rather than the country. Congress, as saying on October planning to smuggle in looted smuggle in looted cash, the Wa- “Young Nigerians and Mil- 4, 2010, that “in 1984, Buhari al- ormer Vice President and funds into the country just be- ziri Atiku Abubakar has a record lennials who may not be aware lowed 53 suitcases belonging to Presidential candidate fore the February 2019 election. of preventing looted funds from of this incident will do well to his ADC’s father to enter Nigeria of the People’s Demo- Atiku in a statement he per- being smuggled into Nigeria. Google it. Only the guilty are unchecked at a time the country cratic Party (PDP), Atiku sonally signed and made avail- “In 1984, it was Atiku Abuba- afraid. It is President Muham- was exchanging old currency FAbubakar, has said that Presi- able to BusinessDay on Sunday, kar, as head of the Murtala Mo- madu Buhari who has a history for new.” dent Muhammadu Buhari has said this new accusation against hammed International Airport of smuggling in looted funds and The PDP flag bearer noted a history of smuggling in looted him like their previous allega- Command of the Nigerian Cus- not Waziri Atiku Abubakar,” the that only recently, his plane was funds into the country to serve tions, is another infantile out- toms and Excise Department, statement said. searched, his accounts have his nefarious interests. burst that tells more about the that stopped the ADC of the then Atiku quoted Kaduna State been perused and his businesses The former Vice President accuser than Atiku Abubakar. Military Head of State, Muham- governor, Nasir el-Rufai, a fa- have been thoroughly investigat- said this in reaction to the accu- The statement said further madu Buhari, from smuggling in vourite of the President and a ed with a fine tooth and nothing sation against him by President that for the avoidance of doubt, 53 suitcases of looted money into chieftain of the All Progressives Continues on page 34 2 BUSINESS DAY g www. g @ g Tuesday 01 January 2019 NEWS Muster emerges winner of BusinessDay’s Business Idea of the Year Award uster, which de- properties and want to sublet part scribes itself as Af- of it, agents with properties that rica’s first shared can be shared by two or more housing market people, and co-working locations. Mplace, has emerged as Business- With Muster.ng, we are hoping to Day Business Idea of the Year create an ecosystem where shar- 2018. Muster beat two other nomi- ing is enabled and encouraged by nees, Go Kada and Kobo360 in a disrupting the traditional property twitter poll to emerge winner with lettings space”. 50% of more than 2000 votes cast. Muster is a glimmer hope for Muster tackles a unique prob- cities that are being saturated with lem in a fast growing mega city like rising population. In crowded Lagos, especially for millennials African cities it is not unusual to who are faced with rising rent find rent prices to be more than prices, and scarcity of affordable salaries made by young people. accommodation. As a result of this, young people Millennials struggling to find find it very difficult to get afford- their feet in fast growing urban able housing. This is one of the L-R: Abiodun Oshode, zonal head, Zenith Bank plc; Kayode Fayemi, governor, Ekiti State, and Tope Fasoranti, cities, usually do not have the problems that Muster.ng aims to executive director, Zenith Bank, during a courtesy visit by the bank’s management to the governor in Ado-Ekiti. income to rent accommodation in check. It offers a digital platform preferred areas. Besides, increas- that houses a peer-peer shared ingly, because of the instability in housing marketplace that unlocks their incomes, millennials have an available rooms in crowded cities. increasing preference for flexible Muster basically breaks down high NNPC, Total fail to deliver on 200,000 nomadic lifestyles. exorbitant rent prices. As Africa’s first shared hous- With Muster.ng you find verified ing market place, Muster enables people to share rent with so that young people in African megaci- clean, exclusive neighbourhood barrels first target date from Egina field ties to access affordable housing wouldn’t be years down the line. OLUSOLA BELLO budget for 2019 is premised on daily for the training and development of by unlocking available rooms in Muster adds a new flare to the tradi- production of 2.3 million barrels at Nigerians in various domains. these cities through a peer-to-peer tional housing market that is valued otal Upstream has failed an average price of $60 per barrel. The project is being operated shared housing marketplace. at $137b, it makes this market more to deliver on the much- Some industry operators how- by Total Upstream Nigeria Limited Muster is democratising the accessible to young people. expected 200,000 barrels ever told BusinessDay that the first (TUPNI) on behalf of it partners, Ni- housing market by removing fric- It guarantees control, wealth first oil from the $16-bil- production could not have been gerian National Petroleum Corpora- tion, injecting trust and increasing creation, affordability, flexibil- lion Egina, a deep-water achieved because of what they tion (NNPC), Total Upstream Nigeria affordability. By renting rooms ity, bill management and fraud Tfield, which was expected to happen described as some “slight technical Limited, Sapetro and Petrobras. through Muster, verified people prevention within the housing in December 2018. issues” encountered on the field The Egina FPSO is the first of such are able to pay for just the space market. It also opens the market There are possibilities that the shortly after the Floating, Production, projects ever installed in Nigeria and they occupy, thereby saving on to endless possibilities that are first oil would be pumped soon, but Storage and Offloading unit (FPSO) is about 330 metres long. It was an- rent and bills whilst people with beyond its financial value. Muster this could not be confirmed, as there was moved to site from Lagos. chored at the newly built 500-metre They explained there was not FPSO integration quayside at the spare rooms are able to make extra offers social interaction possibili- has been no official explanation from Total Upstream Nigeria the enough pressure to pump crude oil SHI-MCI Yard, LADOL Island, Lagos, income. The platform is built in a ties, bringing together people of operator of the field and the Nigeria and because of this another project where the integration of six locally way that the users have total con- diverse language, religion and National Petroleum Corporation close to the field had to be quickly em- fabricated modules took place over trol of their experience and they tribal identity. These people are (NNPC) with regards to the reason barked upon to raise the pressure high a period of six months in 2018. are part of a Muster community. brought together under the com- for the failure of the field to pump enough to bring forth oil from the field. Nicola Terrez, managing director of Amongst others, Muster solves mon bane of the need to have to first oil by the December deadline. Egina is the deepest offshore Total had at the anchoring of the FPSO the problems of inflexible rental access affordable housing. Emails and phone calls put across development carried out so far in said: “We have taken a unique posi- terms, upfront annual rent pre- “We have been bootstrapping but to officials of the company by Busi- Nigeria, with water depths over 1,500 tion to continue to invest significantly payment requirement as well as are currently in talks with a number nessDay were not responded to. meters, according to the manage- in Nigeria especially when things are not fit for purpose developments. of investors who believe in the po- The implication of this is that ment of the company. Its operations difficult, for example two years when Muster.ng was started by three tentials of Muster.ng and are willing there is a delay in the additional vol- will generate significant activities for oil prices was below $50 per barrel, we local contractors in various sectors were on the few private firm who still young Nigerian visionaries, Ibra- to partner with us as we provide ume of crude oil Nigeria had hoped to get by the end of last year. Nigeria’s and continue to provide avenues remain committed to Nigeria.” heem Babalola, Ugo Okoro and Nigerians with a new way to rent”. Akinola Adeola, with one singular One of the founders Ugo Okoro aim to revolutionise the housing was recently interviewed on Fi- market so that people (especially delity Bank’s SME forum. On the young people) will have undis- show Okoro shared expert insights Staple, export crops may remain stable in 2019 H1 – AFEX rupted access to good, clean and on the ways he and his team have TEMITAYO AYETOTO percent, respectively. Paddy rice modities recorded some improve- affordable housing. managed to a monetize a social lost just 6.24 percent to end the ment in 2018 as the platform ex- According to one of its found- initiative such as Muster.ng; rices of staple and export second half. “There is a lot of supply panded the aggregation and trad- ers Ibrahim Babalola “Muster.ng is “Our fundamental focus at crops such as rice, yam already,” Balogun noted. ing of cocoa, Balogun explained. Nigeria’s first rent-share platform. Muster.ng is to create value and and cocoa beans are likely Generally, Nigeria’s foremost AFEX is poised to ramp up the Muster connects people looking cater to the need of people look- to remain stable within the agricultural commodities e-trading volume of trading under its part- Pfirst half of this year, on high output platform, AFEX Commodities Ex- nership with Binkabi and Sterling for other people to rent proper- Continues on page 34 ties with, people that already have recorded in 2018. change Limited, traded over 40,000 Bank to incorporate blockchain The prices will also be sustained metric tonnes of these produce and technology in solving the challenge by current stability prevailing in the injected inputs worth $3.8 million of financing while facilitating inter- international markets, according to into farming activities across eight national trade. Ayodeji Balogun, country manager states during the 2018 wet season Through it, farmers would now Nigerian students, business people stranded at AFEX Commodities Exchange farming, according to Balogun. be linked directly to consumers Limited, an e-trading platform for The financial support, which and retailers, creating security for after US Embassy’s indefinite shutdown agricultural commodities. came as an offshoot of partner- off-taking and minimising post- The Commodities began last ships with corporate clients in- harvest losses. The blockchain IFEOMA OKEKE “Due to the current US govern- year on low prices, but rose quickly cluding LAPO Microfinance Bank, technology is also expected to solve ment shutdown, the American to peak at about the end of the first Dangote Rice, Thrive Agric and the issue of lack of price transpar- housands of Nigerians, centres located in the embassy, half, and then began to drop, trend Farmcrowdy, among others, en- ency in the supply chain, helping from students to busi- Abuja and Consulate-General, that continued till the end of the abled over 20,000 farmers to access farmers obtain fair prices for their ness people, who need year. For instance, maize and soy- alternative financing to boost their produce and leading to increased Lagos are unfortunately closed. beans started with average prices productivity and yield. income. to obtain visas to travel They will re-open once the US Tto the United States anytime from of N94.67 and N133.31 respectively The AFEX has kicked off input “The platform will bring price government shutdown is resolved. now may find it difficult to do so per kilogramme, but ended the first disbursement for the 2019 dry discovery as buyers and sellers Sorry for any inconvenience to our half higher at N101.95 and N181.78. season input programmme in will be able to trade and settle their after the US Embassy in Abuja and valued patrons,” the Embassy said Paddy rice made an exception Kebbi state, with plans afoot for transactions remotely. It will also its consulate in Lagos were shut in the post. on the AFEX commodity price re- Sokoto, Zamfara, Kano and Jigawa, allow both retail and institutional down with no specific timelines Students who had come back port by ending the first six months according to Balogun. Its target is to investors to be able to invest in for re-opening. to renew their visas are currently lower at N125.88 per kilogramme reach an additional 10,000 farmers Agriculture through the exchange,” The US Embassy in Nigeria stranded in Nigeria over inability after beginning at N133.20. for the dry season to shore up the Balogun said. said in a Facebook post that the to get visa appointment dates. At the end of the second half, total number of recipients for the development was caused by the maize and soybeans had fallen by 2018 period. •Continues online at government shutdown in the US. Continues on page 34 18.9 percent to N82.59 and 30.8 Trading of agricultural com- www.businessday.ng Tuesday 01 January 2019 C002D5556 BUSINESS DAY 3 4 BUSINESS DAY C002D5556 Tuesday 01 January 2019 Tuesday 01 January 2019 C002D5556 BUSINESS DAY 5 6 BUSINESS DAY www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng Tuesday 01 January 2019 NEWS 2019: Okowa urges Edo residents Nigeria to have 25,685 babies on New Year day - UNICEF upbeat for 2019, as MICHEAL ANI UNICEF Nigeria’s acting rep- their members on child spac- firm said. Deltans to remain resentative, said on Monday ing … a measure she said will According to UNICEF, igeria is expected in a statement to the News help curb the country’s esca- about one million babies united, peaceful city wears new look to have an esti- Agency of Nigeria. lating population growth. died the day they were born FRANCIS SADHERE, Warri esidents of Edo State mated 25,685 new “At current life expec- This statement however in 2017 globally, while 2.5 are filled with high born babies add- tancy rate, a child born in sparked up criticisms among million died in just their first overnor Ifeanyi hopes for the New Ned to its existing population Nigeria today is likely to live analysts who spoke with Busi- month of life. Okowa of Delta Year, as churches and on New Year day, the United only to the year 2074, which nessDay, as they claimed that It said that in Nigeria, State has called Rpublic buildings, including Nations Children’s Fund is 55 years of age, while those an increasing population if about 262,000 babies die at on the people of event centres wear new look in (UNICEF) says. born in Denmark are likely checked properly could serve birth each year, the world’s Gthe state to remain united to Benin City, the state capital, to This figure makes up 6.5 to live until the 22nd cen- as a plus to a nation. second highest national total; the cause of developing the usher in 2019. percent of the estimated tury,” Ironside said. “We do not think the ris- while 257 babies die within state, irrespective of ethnic A cross-section of residents 395,072 babies born globally The statement noted also ing population should pose their first month of life. or party differences. who spoke with journalists on New Year day, and about that only children born in a threat to the growth of the “Among these children, Okowa, in a statement in Benin City yesterday said 40 percent and 23 percent of three countries today have economy considering the vast most died from preventable by his Chief Press Secretary, they hope the New Year would those born in West/Central a lower life expectancy than amount of natural and min- causes such as premature Charles Aniagwu, felicitat- usher in new opportunities for Africa, and in sub-Saharan Af- that of Nigerian children, eral resources that the coun- birth, complications during ed with all Deltans as they prosperity, and that managers rica, respectively. including Central African try is endowed with, majority delivery, and infections such stepped into 2019 and ex- of the country would expertly Data from the National Republic, Chad and Sierra of which are still untapped,” as sepsis and pneumonia, a pressed gratitude to God for navigate the numerous eco- Bureau of Statistics (NBS) Leone analysts at CSL Stockbrokers, violation of their basic right to the grace granted Delta and its nomic and political events that put the country’s population In October this year, Nige- a subsidiary of First City Mon- survival”, citizens in 2018. would shape the New Year. at 198 million people. If this ria’s acting finance minister, ument Bank Group, said. However, more could be Praying for the unity and When asked about how he estimate falls through, the Zainab Ahmed had said the “In fact, a growing popu- done to ensure children born peace in the state, which, intends to celebrate the New country’s population may country’s increasing popula- lation provides a nation with in Nigeria survive their first he noted “is the bedrock of Year, John Ojehomon, said, hit over 207 million by year- tion growth is one of the great- robust human capital need- day of life. “In Nigeria today, meaningful development “I will be in my church for the end 2019, according to Busi- est challenges confronting the ed for productive purposes only one out of every three in any given society,” he ex- cross-over service to thank nessDay estimate, depend- successful implementation of as well as a large market for babies is delivered in a health pressed the hope that 2019 God for the blessings and gift ing on the number of deaths the Economic Recovery and goods and services produced. centre, decreasing a newborn will be a year of fulfilling a of life in the year 2018. I am recorded in the year. Growth Plan (ERGP). However, where it is not har- baby’s chance of survival and greater and stronger Delta. happy to be alive and to be cel- “Globally, over half of According to Ahmed, the nessed or utilised effectively, this is just one of the issues He said, “Given our success ebrating 2019 in good health. the world’s births are esti- Federal Government has as is the case of Nigeria, it that need to be addressed in story in the past three and half I believe there is a lot to look mated to take place in just been engaging critical stake- becomes detrimental to the order to improve the chances years in office, I have no doubt forward to in the New Year. eight countries, including holders like traditional and growth and development of of survival of those babies that with the same level of co- We hope that Nigeria will over- Nigeria,” Pernille Ironside, religious leaders to advise the nation,” the stock broking born today and every day”. operation from the good peo- come the numerous hurdles ple of Delta State, our govern- in 2019.” ment will achieve more in all Victor Lax, who operates facets of governance. an event centre, said, “We are “Our optimism is driven by set to host customers who the support we enjoy from our will be visiting the centre to Youths, leaders, the legislature, celebrate cross-over into the the judiciary, the civil service, New Year. We are expecting my team of political appoin- customers after the end of the tees, agencies of government, crossover church service. We both at the federal and the will be open for business all state levels, as well multilateral through the night as fun seek- donor agencies.” ers will be around to celebrate Governor Okowa noted, the New Year. “As one of the first states to sign Joy Idehen said, “The new the 2019 budget, our govern- year celebration is a perfect ment was prepared for the task opportunity to go out with the of governance and provision of children. My husband and I will key infrastructure which made visit an event centre to mark the us to hit the ground running day. As God has blessed us with from day one. life and good health, nothing “I must emphasise that stops us from celebrating to- the consistent early passage gether as a family.” of our state budget has given Pastor Monday Osazee me and indeed the state the said members of his congre- advantage of early starters, gation would be holding a both in the appreciation of thanksgiving crossover service what Deltans expect from to thank God for his blessings L-R: Elisha Attai, founder, African Women in Leadership Organisation; Ezinne Kufre Ekanem, chief executive officer, Rosemary’s, their government and in the and protection in the year The Soft Furnishing Company; Kufre Ekanem, managing director, Philosoville Limited, initiator of Hymnodia, and John Senaya, development of solutions to 2018, and pray for a successful chief executive officer, J S and Associates, during the flag-off of Hymnodia, a reality TV programme, at Ikeja City Mall, Lagos. meet such expectations.” year 2019. Federal, State, LGs shared N788.14bn in November 2018 USPF organises hackathon, incubation event for tech enthusiasts novative solution, usually in solutions that could address ISRAEL ODUBOLA shared N58.19 billion as 13% cies also benefited from the JUMOKE AKIYODE-LAWANSON derivation funds and N70 bil- funds. Nigerians Customs the form of websites, mobile specific challenges, to apply at ederal Allocation lion was kept in Excess Crude Service (NCS) received N4.99 niversal Service apps, IOT and robotics. www.uspfchangemaker18.ng Committee (FAAC) Account. billion as cost of collection, Provision Fund Interested persons below and stand a chance to develop disbursed N788.14 The breakdown of the while Federal Inland Revenue (USPF), an arm 18 years would require their their idea. billion to Federal, gross revenue allocation of Service as well as Department of the Nigerian parents/guardians to fill out “The USPF Changemaker UCommunications Commis- a permission slip and accom- challenge event is the perfect FState and Local Governments Federal Government is as fol- of Petroleum Resources (DPR) in November 2018 from the lows – N284.395 billion from received N7.59 billion and sion (NCC), is organising the pany their ward to the event. place to network and con- revenue generated in October statutory account, N371.663 N5.82 billion, respectively. ‘Change maker challenge,’ a According to the event nect with brilliant, software 2018, according to National million from exchange gain According to the report, hackathon and incubation organisers, the innovative developers, UX designers, Bureau of Statistics (NBS). allocation and N15.144 bil- out of N299.19 billion dis- event where people with ICT solution and entrepre- data scientists, ICT experts, The amount disbursed lion from VAT. For the 36 State bursed to the Federal Gov- technology background and neurship development pro- budding entrepreneurs, strat- comprised N682.16 bil- governments, N144.249 bil- ernment, N243.96 billion was business vision come to- ject would provide an av- egists, angel investors, idea lion from statutory account, lion from statutory account, transferred to the consoli- gether, form teams around enue for self-expression and funders, public policy experts, N105.17 billion from value- N188.512 million from ex- dated revenue account of the a problem or idea, and col- creativity among technology incubation experts and tech- added tax and N806.39 billion change gain allocation and Federal Government, N5.41 laboratively code a unique start-ups, through the use of nology enthusiasts. It will be from exchange gain allocation. N50.482 billion from VAT. billion was shared as share solution from scratch. modern technologies. a weekend of freedom to cre- Allocation to the Federal For the 774 local govern- of derivation and ecology, The competition, sched- The theme for the third edi- ate a new product, learn new Government was N299.19 ments, N111.210 billion from N2.70 billion as stabilisa- uled to hold from January 25 tion of the Changemaker chal- techniques for your future billion. States government statutory account, N145.335 tion fund, N9.08 billion for to 27, 2019, will have bright, lenge is “The Future is here: development, and be part of a received N194.92 billion, and million from exchange gain natural resource develop- creative minds between Disrupting legacy ecosystem community of new ideas and N146.69 billion was shared allocation and N35.337 billion ment and N6.38 billion was ages 18 and 45 years old with technology”, USPF said ventures thus ideas festival, between the 774 local govern- from VAT. allocated to Federal Capital competing to win over N3.5 in a statement, while encour- investors delight,” the organ- ments. Oil producing states Revenue-generating agen- Territory (FCT). million for creating an in- aging Nigerians with relevant isers said in a statement. Tuesday 01 January 2019 C002D5556 BUSINESS DAY 7 8 BUSINESS DAY www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng Tuesday 01 January 2019 NEWS Unreliability besets key economic statistics as different agencies report conflicting data ed that Nigeria’s unemploy- by the EIA. ISRAEL ODUBOLA ment rate was 7.04 percent. The report of NBS disa- Meanwhile, BusinessDay greed with that of World ata on vital analysis of the average un- Bank on the country’s an- economic in- employment rates released nual average inflation rate dices released by the NBS from the first to (consumer prices) for the by differentfourth quarter of 2017, which previous year, 2017. While (national and is equally the annual average the World Bank put Nigeria’s Dinternational) agencies are unemployment rate, settled annual average inflation rate most times inconsistent, at 17.46 percent, a sharp con- at 16.5%, the annual average and users of those data such trast of 10.42 percent. inflation rate of NBS for that as analysts, investors, poli- UNCTAD and World year settled at 16.54%, a pal- cymakers and stakeholders Bank’s data on FDI in- try divergence of 0.04%. are confused, as they do not flows to Nigeria in 2016 “The divergence could know the one to hold true. and 2017 conflicted. While also have emanated from Experts and analysts UNCTAD reported that Ni- the methodologies these sometimes question the geria attracted FDI worth agencies employ to collect authenticity of data on key of $4,487.7 million in 2016, and collate data. Using dif- economic statistics given World Bank’s figure was $4, ferent methodologies to the conflicting figures pub- 445.1 million, indicating a collect and collate data will lished by different statis- variance of $42,600. definitely produce different tical bodies like National FDI inflows to Nigeria results,” Olusola said. Bureau of Statistics (NBS), in 2017 equally differed by To Paul Afolayan, a data World Bank, United Nations $580,000. World Bank put scientist and analyst, dis- Conference on Trade and FDI inflows to Nigeria in parity in data reported by Development (UNCTAD) 2017 at $3,497.2 million, and different agencies is largely and International Labour UNCTAD - $3,503.0 million. connected to the fact that Organisation (ILO), to men- Information on Nigeria’s the sub-indicators used to tion a few. crude oil production for compute these metrics are “Most of them got their first and second quarter of different. data from different sources 2018 reported by the NBS The demand for good- and it is needful for them to and Energy Information Ad- quality statistical data has always disclose the source(s) ministration (EIA) slightly continued to be on the up- where those data are gotten contrasted. According to the ward trend over the years. from,” Olusola Arawomo, NBS, daily oil production av- Reliable data are needed to an economics lecturer at eraged 2.00 million and 1.84 set baselines, identify pri- Obafemi Awolowo Univer- million barrels in first and vate and public actions, set sity, told BusinessDay. second quarter of 2018, dif- goals and targets, monitor The ILO in partnership ferent from 2.11 million and progress and evaluate im- with the World Bank report- 1.92 million barrels reported pacts. Akeredolu proposes N190bn as fiscal estimates for 2019 YOMI AYELESO, Akure Consequently, 2019 Budget revenue consultants to is an offshoot of the 2019- complement the existing ef- overnor of Ondo 2021 MTEF. forts in revenue generation State, Oluwaroti- “We have used the 2018 and to overcome the chal- mi Akeredolu, on Fiscal year to lay the founda- lenges posed by inadequate Monday presented tion of the economic trajec- revenue. Ga total sum of N190.023 bil- tory designed for the State. “I am happy to inform lion budget for the 2019 fis- Most of the programmes you that the effort has been cal year to the Ondo State and projects will crystallise yielding a positive result House of Assembly. in the 2019 Fiscal year. ranging from appreciable BusinessDay reports “In the same vein, most blockade of some revenue that the proposed 2019 of the major MoUs orches- leakages to increase our budget - N190. 023 billion trated through ONDIPA, in- revenue base, a situation exceeded that of 2018 fis- clusive of the Deep Sea Port which has led to the State cal year - N171 billion with are expected to fully blos- generating an average N19 billion in size. som in 2019. It is in view monthly IGR of N1.263 bil- In the 2019 budget, of this that the 2019 Budget lion as against N905 million Governor Akeredolu ear- has been aptly tagged “the monthly average recorded marked N82.179 billion Budget of Advancement.” in 2017. for recurrent expenditure, He affirmed that the “Yes, we are not there yet, representing 43.2 percent budget presentation, the but with the combined ef- and N87.906 for capital second since he assumed forts of the consultants and expenditure representing office in February 2017, the vibrant autonomous 46.3 percent. captured the essence of his Board of Internal Revenue, According to the gov- administration’s blueprint. as well as the various finan- ernor who tagged the pro- “Mr Speaker, you will re- cial reforms being carried posed budget as ‘Budget of call I informed this honour- out by this Administration, Advancement’, the budget able House here last year we shall achieve the desired has been prepared based that we had engaged some result in no distant time. on the projections of the 2019-2021 Medium-Term Expenditure Framework (MTEF). “Mr. Speaker, MTEF is one of the statutory provi- sions of the Ondo State Fis- cal Responsibility Law (FRL) which this Honourable House passed in 2017. “The Law makes it man- datory that every yearly budget must be prepared on the basis of the next three years projections of MTEF. Tuesday 01 January 2019 C002D5556 BUSINESS DAY 9 10 BUSINESS DAY C002D5556 Tuesday 01 January 2019 comment is free comment Send 800word comments to [email protected] 2019: Nigeria’s true year of destiny

give more thanks for surviving perdition. It was widely predicted from reality. I will like to believe 2018. It was a bloody year from that Nigeria would split. But that Nigerians can predict what the first week of January starting I truly believe‘ that Nigeria disappointed the world. a politician can do in the future in Benue State and concluding That was essentially because the from what he did in the past. If in the last week of December in Nigerians have church prayed. Is the church pray- you promise buoyant economy, is Mazi Sam Ohuabunwa OFR, FPSN Zamfara State. never had a better ing for 2019? True, the church is there evidence that the economy [email protected] praying hard. In addition, 2019 was buoyant when last you were Importantly also, we must opportunity to make elections is not between the North in power? If you promise a secure continue to pray, first for the and South, neither is it a contest and safe nation, what was the comfort of the family of the rational decisions as to between Islam and Christianity. situation last time you influenced bereaved. Except you have been For the real first time in Nigerian national security. If you promise through similar experience, it is who governs them at political history, religion and re- employment, how much jobs did difficult to truly understand how state and federal levels gion will play very minimal role you create at the last opportu- it feels to lose a family member influencing voting preferences nity. If you promise democratic through brutal human violence. this time than they ever at national level. And for me that freedom, how much freedom did elcome to 2019. It is extremely distressing to is a good thing. For instance, the we see at your last opportunity? Let us thank God go to sleep and wake up in the did in the past two principal contestants for the If you promise a nation free from for granting us morning to see your home ablaze presidency are from the North corruption, what was the situa- the grace of en- and sometimes watch family and they are both Muslims. Thus tion the last time? If you promise tering into the members who are running away ’ other critical criteria will play peace and unity, how peaceful newW year. Thank God we are not from danger being cut down deep pains in the hearts of these significant roles in determining and how united was Nigeria when in the statistics of those killed by with guns and knives as hap- victims. Secondly we need to pray who wins. The first criterion in my last you were in position to influ- Boko Haram insurgents, militant pened in several parts of the with greater intensity for the mercy view is believability. Which of the ence both? cattle herdsmen, kidnappers, middle belt during the outgoing of God on Nigeria and its leaders. principal candidates do Nigerians I truly believe that Nigerians armed robbers, police/ military year. What is worse, is when no The blood of the innocent shed all believe most? Making promises is have never had a better opportu- stray bullets and sundry ma- meaningful effort is made by the over Nigeria continues to cry for the forte of politicians, but living nity to make rational decisions as rauders who combined to turn authorities to arrest and punish judgement, justice and appease- up to promises is what differenti- to who governs them at state and Nigeria into a killing field in 2018 the perpetrators of the heinous ment. Unless God shows mercy, ates one politician from another. I federal levels this time than they particularly. We thank God that crimes. Then some busybodies there will neither be sleep nor rest am persuaded that most Nigerians ever did in the past. That is what we did not die on the road, on the arrive to preach peace to you for the perpetrators of the crime, can differentiate between facts gives me hope that 2019 will be sea, or in the air. We really must asking you to live at peace with their agents, collaborators or those and propaganda. Luckily both truly a year of destiny. My prayer thank God that there was no fatal your neighbors, only for them to who failed to exercise the duty of leading candidates have been in therefore is that Nigerians must air crash, despite several reported depart and the attackers return, protection over the innocent. the public space and Nigerians take the opportunity and respon- near misses, including air craft sometimes under the watch Thus we arrive 2019, a year that can assess who is best able to fulfil sibility with both arms. If we miss doors opening in mid flight or of security agents, to kill and is already pregnant. What shall promises or political campaign it, then we must blame ourselves cabins being decompressed in destroy what was left from the it deliver? A child of destiny or a manifestos. I believe that Nigeri- not ethnicity or religion. 2019 flight. I am starting this way, be- earlier attack. That is the burden, child of perdition? Me I think a ans have been disappointed too is our year of manifest destiny. cause it is normally necessary to some of our country men and child of destiny, though the signs many times that they must be wise Happy New Year Nigerians! thank God for crossing from one women are carrying today and indicate it will be otherwise. In enough to interrogate all political year to another but every Nige- largely everyone else gets on 2015, the world predicted that Ni- promises. They must now be wise Send reactions to: rian, including the military must with their lives, oblivious of the geria would walk down the road of enough to separate propaganda [email protected]

Adopting Sustainable Development Goals (SDGs) as political party manifesto Thursday December 13, 2018, “the maps for localizing, implementing and (OSSAP) on SDGs, has ‘formulated’ It would appear that those charged main challengers for the presiden- monitoring developments around the and ‘adopted’ a number of policies with implementing and monitoring cy, Muhammadu Buhari and Atiku goals because of the enormous poten- aimed at achieving the goals. But it is the SDGs need more knowledge of Abubakar have continued, like in tial to transform all aspects of national claimed that a number of challenges the targets and indicators and thus, the past, to make bogus promises endeavours. The 17 SDGs and 169 including paucity of and late release the government needs to redefine its of creating millions of jobs in their targets present opportunities for the of funds, Lack of legal framework to understanding of the SDGs. manifestoes and policy documents political parties to take advantage of to institutionalize SDGs, lack of politi- Though the challenges identified Francis Iyoha without going into specifics of ex- create significant value in the political, cal will at some government levels, are acknowledged but what is lack- Professor Iyoha is of the Department of actly how those jobs are going to be economic, social and cultural order securities issues, ownership issues ing is insights into the targets that Accounting, Covenant University and provided and by whom.” in Nigeria. We must take a cue from around the SDGs, data collection make up each of the goals. If the Research Fellow, the Institute of Chartered This is not surprising because many African countries where SDGs and integrity of same, among oth- whole national budget is released Accountants of Nigeria (ICAN). He wrote the main presidential candidates have become a flagship issue and ers, are constraining the efforts of and the activities are off the targets, [email protected] do not know what they should be serious steps articulated and taken the government in achieving the no goals would be achieved. If the talking about. All that we hear about to ensure maximum delivery by 2030. required mileage on the goals. presidential candidates at a loss in the next four years is a bunch of This is evident from the African SDG In spite of the challenges, how- terms of what to do in the next four hat Nigeria failed lamen- razzmatazz. Instead of properly Index Report of 2018. The report was ever, the government says it has years, let them adopt or adapt the tably in all aspects of the articulating their party manifestoes, prepared and presented by the Sus- achieved a lot on the platform of the Road Map for localizing SDGs which Millennium Development they are busy throwing tantrums tainable Development Goals Centre SDGs and wants to convince us that was drawn up by the Global Task- Goals (MDGs) is now his- here and there. They seem unaware for Africa and Sustainable Develop- the feats are evident in the follow- force of Local and Regional Govern- toryT whose sad melody lingers on. As that we are tired of moderating our ment Solution Network and provides ing- construction of minor irrigation ments, UNDP and UN Habitat to has been noted by a commentator, displeasure. Because they don’t a snapshot of the progress made so system, building of VIP latrines in support cities and regions to deliver the implementation of the MDGs in know what they are expected to far by African countries ranked on schools and hospitals, training of the 2030 agenda. The road map is Nigeria “lacked the high-minded- do in the next four years, the SDGs the SDGs. The result of the ranking health workers, provision of insecti- non-prescriptive but a portfolio of ness of the Millennium Declaration provide a ‘soft landing.’ They should indicates that the ‘giant of Africa’ with cide treatment nets, maternal /child strategies that could be adapted to and the ambitiousness of some simply adopt the SDGs as their party a score of 48 is only ahead of some ten health centres, classroom blocks, the specific contexts and needs of leaders because despite the avail- manifestoes. The goals are clear and impoverished countries in Africa while school desks, benches, including different environments. Time is of ability of funds the required political the indicators well defined. There is Morocco, Tunisia, Mauritius, Algeria, health advocacy. Others include the essence. Let’s pursue the 2030 commitment never arrived.” I guess no issue or programme of essence Cape Verde, Ghana, and Egypt are construction of teachers’ quarters, agenda in the truest sense of politi- the country cannot afford a repeat of that they would want to pursue blazing the trail. Besides, some coun- fencing of schools, and provision of cal responsibility and commitment. that sordid performance in the con- and implement in the next four tries have fully achieved at least one of First Aid Boxes among others. These The time for government to hide text of the Sustainable Development years and beyond in their wisdom the goals such as: The Gambia and Sao are no mean achievements anyway; and the citizens to bide is over and Goals (SDGs) in which Nigeria is or lack of it that is not embedded Tome and Principe (SDG 12, Respon- but how significant are they in the no matter how slow we are in our already three years in arrears of any in the SDGs. sible consumption and Production); context of the SDGs? To which of political development, let us never tangible commitment. The quality Issues around the Sustainable Comoros, DRC, Guinea, South Sudan the targets do these activities relate? walk back. The SDGs represent the of the current electoral campaigns Development Goals (SDGs) have and Uganda (SDG 13, Climate action); Have we not been fencing schools, strength, direction and commitment does not suggest that issues of SDGs become extremely critical in Ni- and Burundi, Gabon and Sierra Leone providing VIP toilets and so on? required never to disown the poor are known to the political parties geria and no political party should (SDG 15, Life on land). What difference do these make in or bend the rules for the insolent and their flag bearers. As opined by pretend about it. The issues require While these countries are making the context of the SDGs that we are political profiteers. Chris Akor in his article “why Buhari, a synergy of uncommon kind and progress, the Federal government of prematurely celebrating? In-spite Atiku’s job promises are unrealistic” political commitment to tackle. Nigeria through the Office of the Sen- of the ‘feat’, Nigeria still lags behind Send reactions to: published in the Business Day of Many countries have devised road ior Special Assistant to the President many less endowed Africa countries. comment@businessdayonline. Tuesday 01 January 2019 C002D5556 BUSINESS DAY 11 comment is free comment Send 800word comments to [email protected] The experience of female Uber drivers in Lagos

female drivers in Lagos says. (there are many) on Whatsapp she line, she blocks the errant male call- “I was actually the first female was a member of. Something caught ers. Ironically, it is the female riders Uber [driver] that went for the ex- her attention: a driver announced that tend to be more problematic. “I ams…there were more than hundred ‘ he had just made a huge sum from don’t talk to drivers”, goes one. And guys and I was the only lady…they I have been harrassed, a trip. She stood up and left for the when making requests, some do so actually thought I was one of the they blocked me. door.“I just told him I’m coming I at the top of their voice, barely hiding Rafiq Raji officials.”A few years ago, having want to use the restroom”. She did not their disdain. “Transferred aggres- “Dr Raji is chief economist at Mac- just arrived from Abuja, after be- But they didn’t take go to the bathroom. Blessing went sion” is what Blessing calls it. Cash roafricaintel. He was previously an ing let go at a government job over back to work. Of course, she lost the in hand afterwards, Blessing could Africa Economist at Standard Char- there, Blessing took an interest in anything because I gentleman. Like her male colleagues, care less. It is a hustle. It must be a tered Bank, London, UK. (Twitter: @ being an Uber driver after taking a fought back. I lost a she has mouths to feed, school fees lucrative venture, then. Not as much DrRafiqRaji)” ride with one. She applied, did the to pay for siblings and so on. And as before, she admits. Uber used to training and eventually got a car. fingernail…We got to like everybody else, her fixation on take a lower cut of their earnings be- That last bit did not come about her economic goals have come at a fore. But yes, it still pays the bills. In a he odds that you would easily. Many of the car owners she Yaba, an isolated area, personal cost. But how safe is it for a good week, she could earn as much happen on a female approached turned her down for no female Uber driver in Lagos? Has she as 100 thousand naira. A bad week Uber driver in Lagos are other reason than she was a woman. so I told him the price, been attacked before? “I have been is when she earns half as much. Out slim. Still, Nigeria is not “Women have issues”, was the typical 2000 something, he harrassed, they blocked me. But they of that amount, she makes a weekly Saudi Arabia; women refrain. As Blessing herself admits, didn’t take anything because I fought payment of 30 thousand naira to areT free to do whatever they like many potential riders would cancel was like ‘give me your back. I lost a fingernail…We got to fulfil her hire purchase agreement here. Well, mostly. And if you make their trips the moment they see her Yaba, an isolated area, so I told him obligations. The car would be hers the error of thinking they could not picture. When asked how she knew phone,’ I laughed, I the price, 2000 something, he was after she completes the payments. drive any better than their male this, she says since she is able to tell thought maybe now, like ‘give me your phone,’ I laughed, Any future plans? Wouldn’t she counterparts, kindly try fighting for from the app if she is the only driver I thought maybe now, maybe he is rather do something else? Does she right of way with a woman in Lagos in an area, if a potential rider cancels maybe he is trying to trying to crack me up or scare me”. not want to settle down? And clearly traffic. Needless to say, you may a trip persistently, there could be No, he was not. Her friends told her there are not many Nigerian men, if hesitate to do so next time. There are only one reason why. Turns out a crack me up or scare me she should give up her phone next any, that would allow her continue probably as many women as there couple of those who did choose to time. Blessing insists “anything that as an Uber driver after taking their are men on Lagos roads. Women take a ride with her sometimes did has to do with my money, I have to vows. Most female Uber drivers are at the wheel of public transport ve- so for mischievous reasons. One ’ fight for it.” single or divorced with kids. She hicles are not as many. It is not the was “laughing and touching my lap” the offer. Apart from driving for Uber, would not mind being a housewife norm. So even as there are many of during a trip, she vouchsafes. Even as But surely she must have liked Blessing also drives clients to loca- if she finds a good husband, Bless- them driving all sorts of vehicles in she stood firm against his advances, some of the riders who made ad- tions outside Lagos. Asked if she is ing admits. As the retail business their private capacity, from those he persisted. Eventually, she stopped vances at her, and perhaps dated one? ever worried about the risks. She interests her, a supermarket might with little engines to the ubiquitous the car and confronted him. He got After a while, she admits to having takes precautions, working only be something she would try her sport utility vehicles (SUVs), it is still the message. Even then, the male dated one. He was not like the others with people she has known for hands on. She could also buy cars for a novelty to find female chauffeurs. rider was furious. He wondered how who would say “come to my house!” a while or referred to by trusted drivers to make payments to her, be- If there are, they would certainly be she could be indifferent to the “dol- at the slightest chance, she says with acquaintances. And at the destina- come a “partner”, that is. Does Uber reluctant to work for men. And their lars” he was flashing, his long custom a chuckle.“That ‘come to my house’ is tion, she lodges at a different hotel provide any support for its female fellow women are not likely to hire that day already and so on.“If you so annoying”, she adds. Let us just say from the client. As many females drivers? There is a “Woman week”, them. Wives would certainly shud- don’t want it, you say you don’t want she thought this one was a gentleman would admit, most men in Lagos Blessing says. But she believes they der at the thought in these parts. it”, was his final remonstration. Turns and was vindicated afterwards by would make advances at women could do much more. And even Uber itself found out all out male drivers also get sexually how he treated her; going on inter- they find attractive; especially one too quickly how difficult it was to se- harrassed. Some female riders, upon esting dates and so on. It did not last, whose details they already have • An edited version was published by cure cars from “partners” (car own- reaching their destinations, would though. What happened?“I did not via the Uber app. Harassment is New African magazine in December ers) for their few female drivers. That instead of paying the fare, offer to pay have time for that relationship” On a rare, however. But with their phone 2018 is, when the firm used to facilitate in kind, Blessing reveals, confirming date one time, while watching a movie numbers in hand, Blessing and the the connection. Now, it does not. views from an earlier interview with at the cinema, Blessing glanced at her other few female drivers get a bar- At least, that is what Blessing Onuh, one of her male colleagues, who says phone and understandably, perused rage of calls. Solution? She keeps Send reactions to: one of the ride-sharing firm’s first he never took anyone of them up on an ongoing chat in the Uber group two phones. And for the business [email protected] China’s 2019 growth outlook Recently, New York Times re- slowing cyclical growth, and other likely to prefer gradual deceleration, lus and debt-fueled growth toward ported that China was amid “a steep environmental, debt and real estate which fosters stability, over more structural reforms, higher-quality downturn.” Indeed, since the U.S. market issues abrupt slowing growth, which is growth and the rebalancing of Chi- trade wars last spring, there has been Overall, such deceleration is nor- perceived as disruptive. nese economy from investment and much chatter in the West about the mal after years of rapid industrializa- Finally, China’s potential growth exports toward consumption and “China’s economic slowdown.” tion and growth acceleration, however. continues to indicate that a growth innovation by 2030. Once again, the not-so-informed Decelerating growth, but rising rate that exceeds 6.0% is achievable Elusive international headwinds observers have focused on quarterly incomes and viable, though certainly not an If, in the course of 2019, U.S. trade DAN STEINBOCK growth, at the expense of annualized If Chinese government would easy task in the current international wars broaden disruptively from ex- Steinbock is the founder of Differ- growth. In this regard, 2018 was ignore its commitment to poverty environment. ports to investment and intellectual ence Group and has served at the an exceptional year in China and eradication, higher living standards Fiscal, monetary accommoda- property, international environment India, China and America Institute elsewhere. In the first half, global and sustainability, it could achieve tion, and rebalancing may require substantial downgrading (US), Shanghai Institute for Interna- recovery was still gaining ground. more rapid growth, but only at the cost The government is likely to prefer of economic prospects in many major tional Studies (China) and the EU In the second half, Trump’s trade of people’s livelihood, living standards supportive fiscal policy as the prima- economies. Center (Singapore). For more, see wars caused substantial collateral and environment. ry tool to ensure stable growth. In this Even in a benign scenario, the http://www.differencegroup.net/ damage that will be felt even more in On the other hand, policymakers quest, fixed investment, particularly global recovery that began in the 2019, in the absence of a constructive cannot accept too much deceleration infrastructure, is expected to play a advanced West in the aftermath of mid the Christmas melt- reconciliation. either. While the country’s economic key role as consumption and export the global crisis of 2008, thanks in down, the Dow Jones Yet, China’s growth forecast for growth is decelerating, Chinese living growth are likely to slow – the former great part to China’s dramatic growth plunged to less than 22,000, 2018 remains 6.5- 6.6%, after a strong standards should continue to rise. The due to increasing consumer caution, through those years, is set to slow the lowest since Septem- first half. Moderation will ensue in effort to double average incomes – as the latter due to the trade wars. down in 2019-20. berA 2017. Thereafter, it soared over the second half and especially in measured by GDP per capita, with pur- China’s monetary stance is likely The major advanced economies 1,000 points; the biggest single-day 2019, depending on U.S. tariffs and chasing power parity – between 2010 to remain accommodative, which are heading toward a complicated, point gain ever. Nevertheless, it has slower demand worldwide. and 2020 requires growth to remain implies mild, but manageable rise in economically challenging and po- declined 4,000 points in two months. For 2019, Chinese GDP growth around 6.1% in 2019-2020. inflation (closer to 2.5% rather than litically divisive stagnation. Unfortu- It is this historical market volatility could eventually achieve around In international comparison, Chi- 2.2% in 2018). Consequently, Chinese nately, much of these downside risks associated with the Trump adminis- 6.2% in full-year growth, assuming nese growth rate is currently posi- yuan is likely to soften against the U.S. remain under-valued in the West. tration that now overshadows world policymakers succeed in the chal- tioned to decelerate from 9.6% to 5.6% dollar up to 7.0, as long as the current The greater the gap between mis- economy and China. In recent weeks, lenging balancing act to sustain between 2008 and 2023. Despite this tensions overshadow the bilateral guided perceptions and economic the U.S. economy has become in- higher-quality growth while sup- deceleration, living standards will al- U.S.-Sino relations. realities, the more challenging will be creasingly exposed to policy mistakes pressing faster debt accumulation. most double. In 2008, Chinese GDP per While Washington is pushing for the awakening. and drastic market fluctuations. The government’s GDP growth capita was less than $7,900. By 2023, it abrupt changes in Chinese economic In 2019, Chinese economy will target, which may be formally an- could increase to more than $21,200. policies, Beijing will stay the course, • The original briefing was published have to cope with great international nounced only next March, is likely to That would indicate that Chinese liv- as President Xi Jinping said in the re- by Chinaorg - China’s official govern- uncertainty and even more extraor- reflect steady deceleration, due to in- ing standards would almost double cent 40-year anniversary of Chinese ment portal - on December 28, 2018. dinary market volatility. ternational headwinds, particularly in 2010-20. economic reforms. Short-term fluctuations versus the trade wars, and more secular Furthermore, since current growth In practice, policy focus will con- Send reactions to: longer-term trends pressures, such as demographics, is around 6.5%, policy authorities are tinue to shift from cyclical stimu- [email protected] 12 BUSINESS DAY C002D5556 Tuesday 01 January 2019 Editorial

P ublis her/CEO Frank Aigbogun Hoping for a better year in 2019 editor 018 is a year to for- the tactics of a reinvigorated groups grow stronger, the Nige- now grappling with unemploy- Anthony Osae-Brown get for many Nigeri- and determined foe singularly rian military grows weaker and ment in such a scale that the ans. The year began committed to winning the war. beset by morale collapse. number of its unemployed and DEPUTY EDITORS with punishing fuel Sadly, the Nigerian govern- Like we all suspect, the re- hopeless citizens is more than John Osadolor, Abuja queues and grue- ment and military authorities port avers that the top brass of the populations of many coun- Bill Okonedo 2some killings by herdsmen took so much delight in the the military is more interested tries on the African continent. NEWS EDITOR and cult gangs that are yet to early successes against the in- in stopping the leakage of infor- This is a waiting and ticking Patrick Atuanya be identified and brought to surgent groups and thought all mation about massive corrup- time bomb the government has justice. If Nigerians thought was over and returned to busi- tion in the military in the name no clue as to how to handle. the authorities will act to ness as usual. Although billions of fighting Boko Haram than On the final piece of policy EXECUTIVE DIRECTOR, OPERATIONS stop the killings, they were of dollars were allocated to actually fighting the insurgent so dear to the heart of the presi- Fabian Akagha wrong. One senior member security both in the budget and group. dent – fighting corruption, of the government after an- via special request by the presi- On the economy, nothing has we have seen how the whole EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure other weighed in on the side dency, stories from the fronts really changed. Although the concept has been turned into of the killer herdsmen with show a dispirited, confused, economy exited recession, it is a joke and the anti-corruption GENERAL MANAGER, ADVERT one advising those being badly equipped and under-fed still growing far below popula- agencies, especially the EFCC Adeola Ajewole killed that it was better for army taking a beating from a tion growth meaning Nigerians being turned into an agency them to surrender their lands determined, highly equipped are still getting poorer by the of the All Progressives Party ADVERT MANAGER to the killers rather than be and mobile insurgent group(s). day. It is no wonder the World (APC) harassing and persecut- Ijeoma Ude killed. Sadly, the year is end- As we suspected, a Defence Poverty Clock ranks Nigeria as ing only opposition politicians ing with a resurgence of the and Foreign Affairs report pub- the country with the most peo- while APC stalwarts credibly FINANCE MANAGER Boko Haram and ISIS attacks lished by the International ple living in extreme poverty in accused of corruption with Emeka Ifeanyi in Borno state putting a lie Strategic Studies Association the world; and that the figure ample evidences continue to MANAGER, CONFERENCES & EVENTS to the often repeated claim (ISSA) – a Washington-based will continue to rise as 8, 000 exercise untrammelled powers Obiora Onyeaso by the government that the non government organiza- people slide into the extreme and bestrides the polity as great Boko Haram insurgency has tion - have identified massive poverty hole in a day. political colossus. The names SUBSCRIPTIONS MANAGER been technically defeated. corruption among the military No doubt, the policies of of former Secretary to the Gov- Patrick Ijegbai Many brave Nigerian soldiers chiefs as one of the reasons Ni- the administration are largely ernment of the Federation, in their thousands have lost geria is losing the war against to blame. Haven inherited an Babachir Lawal, Kano state CIRCULATION MANAGER their lives in recent months to the insurgent group(s). The economy in danger due to fall- governor, Abdullahi Ganduje John Okpaire bold attacks of the insurgents. ISSA report was categorical ing oil prices, the administra- readily comes to mind. Rather than concentrating that the government has lost tion wrongly decided on a raft We hope this year, the gov- DIGITAL SALES MANAGER their attacks on soft targets, control of the engagement with of policies meant to shrink ernance of the country will ex- Linda Ochugbua the insurgents have taken the Boko Haram and could show the private sector and restore perience a rebirth and whoever GM, BUSINESS DEVELOPMENT (North) initiative and are on a major no instance when the govern- the primacy of the state in the wins the forthcoming elections Bashir Ibrahim Hassan offensive against Nigerian ment presently had tactical, economy. This had the effect of will put machinery in motion to troops across the various ar- theatre, strategic, or informa- crowding out the private sector, rebuild trust and begin to tackle GM, BUSINESS DEVELOPMENT (South) eas of operations. That is not tion dominance of any aspect resulting in huge job loses and the myriad problems bedevil- Ignatius Chukwu the tactics of a defeated or of the conflict. According to its de-industrialisation in such ling the country. We wish you even weakened enemy. It is assessment, while the insurgent massive scale that Nigeria is all a happy new year! HEAD, HUMAN RESOURCES Adeola Obisesan

EDITORIAL ADVISORY BOARD Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Afolabi Oladele Vincent Maduka Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Mezuo Nwuneli Charles Anudu Tunji Adegbesan Eyo Ekpo

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9mobile gains Marketers’ body says Ease-of-Doing business under second highest threat over harassment of companies by NLRC on ‘Top 50 Brands Nigeria’ Ranking established for the sole purpose of Bank Plc underscored the turbulent afford. For instance, a consumer Stories by Daniel Obi lotteries . “Our corporate member environment occasioned by chang- does not need a cow to drink milk, Media Business Editor companies are not established for ing consumer needs and expecta- therefore a marketer can give con- mobile, Nigeria’s youth-fo- lottery purposes and their memo- tions and therefore said marketers sumers milk without compelling cused telecommunication randum and Articles of Association need to understand this and adjust them to buy cow. company, has emerged one ational Institute of of the highest year-on-year Marketing of Nigeria do not cover such activities” accordingly. On what is limiting marketers to gainers9 on the list of ‘Top 50 Brands has assessed the al- He said the marketing and invest- “Even where consumer disposa- move ahead, Ogbechie said it de- Nigeria’ 2018 ranking. ready low level of Ease ment world is watching the drama ble income is dropping, can market- pends on creativity to achieve a rea- According to the ‘Top 50 Brands of Doing business in being enacted by NRLC in shutting ers give them what they can afford sonable course. “The bottom line is NNigeria and believes that the hos- down a very serious and responsible to pay. That affordability becomes that if a marketer cannot get custom- Nigeria’ 2018 report, also code- tile engagement by National Lottery organisation like Nigerian Breweries important. If consumers don’t buy, ers to buy his products, then the cre- named #IAMBRANDNIGERIA, Regulatory Commission, NLRC with that has been doing business in Ni- that means manufacturers are not ativity is not working. For instance, which was unveiled in Lagos re- some corporate organisations can geria for over 70 years. selling. If consumers are not buying how come many people are not buy- cently, the telco moved 12 spots up compound the situation and dis- The body therefore implored the what we are selling now, what else ing insurance products, if you make this year, a significant leap from the suade investors from Nigeria. Vice President and Minister of trade can we produce for them” insurance simple, build trust, then position it occupied in 2017. The Institute said the Commis- and investment to call NRLC to or- Ogbechie who is also on the there will be market” The report also stated that 9mo- sion has been engaging corporate der before the Commission creates board of other private and public He said what grows any busi- bile was ranked among the top 50 organisations demanding for pay- negative image for the achievement companies including Red Star Ex- ness are customers and if marketers brands for its innovation, custom- ment in the ease of doing business in Ni- press Plc and National Salt Compa- cannot bring customers to buy the er-centricity, youth empowerment of certain percentage of their geria. ny of Nigeria Plc further challenged products, then the business will not and impactful Corporate Social budgets on consumer and sales pro- Also speaking at the forum, Chris marketers and manufacturers to grow. The rule therefore is how to Responsibility (CSR). motion to the commission because Ogbechie, immediate past chair- be more creative and innovative understand the customer and serve Speaking at the ceremony, the of the Commission’s understanding man, Board of Directors, Diamond to give consumers what they can him or her. Editor in Chief of Brand Nigeria, that consumer and sales promotions Taiwo Oluboyede, said, “9mobile are in relation to its roles in the man- is also a socially responsible brand, agement of lotteries in Nigeria. and its CSR is based on platforms According to the Institute, no- of Education, Health and the En- where else in the world are consum- vironment. er and sales promotions defined and classified as lottery. It clarified that Apple exudes luxury, consumer and sales promotions are recognised globally as integral part affordability, launches of the marketing function designed to offer additional incentives of a iPhone XR in Lagos temporary nature to consumers. It therefore said that “the harass- ment of our corporate members by BATA JEREMIAH the Commission is not helping the nation’s business environment; par- utting luxury and afford- ticularly now that the federal govern- ability at the front burner, ment is promoting the ‘ease of doing Apple, the world’s leading business’ campaign to ensure that smart phone maker, has, Nigeria is the preferred destination unveiledP its largest smart phone for investors”. device, iPhone XR at it’s store in Ikeja Stating the Institute’s position at City Mall, Lagos. its fellows forum in Lagos recently, The iPhone XR, which is now its President Tony Agenmonmen available in all iPone outlets, is said said NIMN has examined the regula- to be brilliant in every way as it pos- tions setting up the Commission and sesses an A12 bionic shape which believes that it was patently clear L -R: Mayokun Fadeyibi, head, commercial operations Cars45; Mohammed Iyamu, VP Trading Cars45; Etop Ikpe, allows processing to be very fast. that it was set up to regulate the ac- Ceo/ co-founder Cars45; Julius Lawal Adenuga, national chairman, Nata and Adebayo Rasheed at the signing of the It also has a Liquid Retina Screen Cars45 - Nata Partnership Deal. tivities of companies that have been Display, making it one of the best screen every done by Apple on an Nigeria’s re-branding responsibility rests on citizens

oth federal and state country continues to stand on 50 Brands Nigeria, the initiator of sellable value too. We are using this governments in Nigeria poor image rating in the global the project. positive attribute as a better narra- have over the years not market with its socio-economic “It is a private sector driven ini- tive and how we should be perceived paid serious attention to consequences. tiative towards enhancing the value by people”. nationB re-branding efforts. Some With government lethargy in of the Nigeria brand, a clarion call According to him, one of the of the initiatives in this direction this course, the private sector which to 190 million stakeholders of the main activities in the project is the were not enduring and did not deeply understands the significance brand for open endorsement and annual #IAMBRANIGERIA Award yield measurable impact as the of branding among comity of na- enhanced association as we use the where the project will specially tions, is taking the responsibility of stories of tenacity, resilience and recognise and celebrate certain image building to the citizens. This the entrepreneurial spirit of many individual and corporate brands iPhone. is because the value of the Nigeria individuals and corporate brands who have become proponents of Speaking to Businessday, Kola- brand directly affects Nigerians that have been able to achieve suc- value addition to the Nigeria brand wole Ogunwumi, the assistant mar- personally. cess against all odds as a positive through their endeavour, putting keting manager Redington Nigeria, A project, IAMBRANDNIGRIA and better narrative to enhance the brand on the global map for the said that the iPhone is beautiful in focusing on Nigerians has therefore the brand Nigeria. This is called the right reasons. every way as it possesses features begun with the aim of devising vari- Nigeria spirit” The award is recognising Nigeri- that are amazing. ous means of getting the attention of Taiwo said Nigerians have com- ans and Nigerian brands in Humani- the critical mass and “getting them pelling stories of achieving success tarian, Journalism, Entertainment, He also expounded on the afford- to see the need for us to protect, pro- against all odds. “We are a very te- Academic, Political Office, Govern- ability of the product. “The product mote and jealously guide our most nacious people, we are aspirational. ance, Sport, youth influencing, New is more affordable than some other valuable asset, our national brand”, These are undeniable qualities that Initiative, Innovative Product among iPhone products which include the says Taiwo Oluboyede, CEO of Top always differentiate a Nigerian and a others. iPhone 10x and 10x Max. 14 BUSINESS DAY www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng Tuesday 01 January 2019 BRANDING PR practitioners tasked to be innovative, BD Brand Talk Why are integrated media professional to grow, survive competition campaigns so challenging? moves the risk of failure as Stories by Daniel Obi ideas progress. grown from last year, less According to him, great Mike Umogun than half of advertisers are men like Steve Jobs, co-found- sure of their ability to create ublic Relations er of Apple; Elon Musk, Chief he latest Getting insights from data. Even professionals in Executive Officer of Tesla Mo- Media Right finds within agencies and media the country have tors; and Jeff Bezos, founder of that marketers companies, fewer than 20 been urged to be Amazon who have all made globally continue percent are very confident, awake to innova- global impact in their various toT struggle to assess their indicating the industry is tive ideas that could resolve P endeavours were driven by marketing performance issues relating to the profes- struggling to manage all the creative ideas. due to disconnects in strat- sion and their clients in order data that is available. “It is time we sit down and egies for reaching consum- to attain the needed growth Creating insights is de- say to ourselves, what do we ers. So why are integrated pendent upon pulling to- required as well as respect- really do? If you do not know able position among their media campaigns so chal- gether the right informa- you are an ideapreneur, you lenging tion and tools to monitor counterparts. will let yourself down. So let’s This was the submission of Now in its fifth year, Get- and optimize campaigns, change the way we do our ting Media Right examines yet marketers are strug- the Chief Consultant of TPT business, as we need to con- the current state of market- gling to connect the dots International, Adetokunbo quer our fears,” Modupe chal- ing in a connected world on performance across Modupe, who was guest lenges his fellow practitioners. speaker at the December trained ideapreneur with entrepreneurs but there is and it is based on input channels. 78 percent He noted that the PR in- from 468 senior market- 2018 edition of the Lagos PR over two decades experience nothing wrong in thinking dustry is hardly recognised, strongly or somewhat ers spanning advertiser Clinic of the state chapter of in PR, affirmed that since the about wealth” he explained. and it is partly responsible agree that it is difficult to brands, media companies the Nigerian Institute of Pub- profession is dynamic, prac- Modupe described idea- for the way clients rate prac- assess how well brands and agencies globally. It lic Relations (NIPR) under the titioners should re-examine preneurs as deep thinkers titioners.One of the reasons perform across channels. theme: Ideapreneurship: The their business modules as who create jobs, have a mind he identified as responsible reveals an industry that An even greater 84 per- Nature of our Trade. ideapreneurs, think and de- of their own; explore alterna- for this is the proliferation of continues to diversify its cent say a contributing He postulated that PR velop ideas that would in- tives to the norms by fostering quacks, which is fallout of the media usage and increas- factor is the blind spots practitioners are ideapre- variably translate to income ideas and are not motivated porous entry barrier into the ingly requires better un- in digital measurement. neurs who should be driven generation. by pedestrian or temporary profession. “This has earned derstanding of how ideas, Advertiser confidence in by intellectual ideas that are “Don’t let the world drive success but enduring legacies. the profession a depressing content, and media need their media mix has grown well tailored towards clients’ you, drive the world with your He further stated that PR image,” he added. to be activated in tandem slightly from last year, but 45 needs and their target publics ideas. This keeps us in a more is about thinking and man- The TPT boss however to create holistic marketing percent are still not confi- for desired results, and not respectable position before aging thought processes for called on the NIPR to take that drives brand growth. dent that their organization be inundated with business our clients who should not the benefit of other people’s bold steps in checkmating the Disconnects between has the optimal media mix, gains in the manner of entre- think that we are in the busi- reputation, and likened it activities of these quacks in growth strategies mean of which only 13 percent say preneurs. ness just to make money. We to innovation pentathlon, a order to attain development that many marketers are they have very integrated Modupe, a Harvard- should not see ourselves as structured process that re- in the industry. missing opportunities for media strategies. growth, with 40 percent 82 percent of marketers still using ROI measure- believe they have inte- ment approaches that grated marketing strategies, are primarily focused on but the ir efforts are not Marketing expert gives Nigerian short-term sales. This, translating fully to con- despite an overwhelming sumers. Conversely, our states brand positioning strategies majority of respondents, recent AdReaction: The Art 85 percent, saying that of Integration study found the most important ap- only 58 percent of consum- t is estimated that more suggested for an ad hoc involvement”. Brand Lagos through the eyes proach to ROI is a blend of than US$2 billion is committee made up of sea- Lolu further said that for of all its stakeholders” ers see campaigns as being both short and long-term spent every day on in- soned professionals and reasons of probity and ac- However, Lolu, former integrated. ternational tourism and experienced civil servants countability, and to assure chairman of Advertising measures. Michael. Umogun @kan- Ithis figure is increasing. Many to determine the strategy prospective sponsors and the Practitioners Council how- Key findings include: tarmillwardbrown.com nations and cities including and scope of the branding Nigerian public, “we propose ever said the government While confidence has some African countries such project. “On approval of its the setting up of the Lagos needs to “live the brand”. as Rwanda are seriously recommendation, the com- State Branding Project Fund “What you are saying must embarking on destination mittee will hand over to a (LBPF) which will be man- not be any different from branding and marketing as a special purpose vehicle set aged under the supervision what you are projecting”. “33” Export rewards 33 friends lucrative product to tap into up by the government to be of whomever the governor During the panel dis- the opportunities this offers known as the Lagos Brand- designates, the CEO and the cussion, Mary Ikoku, a with Boxing Day gifts as next industry. ing Project Business Support LBPBSG Advisory Board. The media expert encouraged Recently, Lolu Akinwun- Group (LBPBSG). LBPF will be independent of marketing professionals to “33” Export last week nominate a special friend mi, the CEO of Prima Garnet “The mandate of the direct government control help states by projecting rewarded 33 friends with they would like to gift a Box- therefore offered some sug- group would be to imple- and be open to regular audit positive aspects of Nigeria. Boxing Day gifts. ing Day surprise. gestions to sleepy Nigerian ment the agreed strategy of from a properly appointed Shola Fajobi of Brooks and This initiative was borne The selected 33 winners states, using Lagos as a case the Committee by putting independent audit firm. The Blake PR, challenged gov- out of the desire to remind were so delighted, taking to study to shirk off lethargy, in- a structure and strategy in board and management will ernment to put infrastruc- its consumers on the reason social media to share their duced by easy oil money and place to run the project. It also ensure that quarterly ture in place and citizens for the season and the true excitement, whilst thanking key into international tourist will also generate the funds reports are generated which will be the first marketers essence of Boxing Day. the beer brand for making destinations with the objec- and goodwill needed for the will be made available to all of Nigeria. The beer brand took to the festive season extra spe- tive to generate sufficient implementation through sponsors and donors and Odion Olebua, a PR expert its Facebook page to an- cial and rewarding. earnings to ensure economic the agreed PPP process, but all stakeholders to the Fund. regretted that the state of in- nounce the competition on One of the lucky win- growth. especially from the private We expect this to further ternational airport in Lagos, Christmas Eve, Facebook ners who preferred to re- Recognising that there is sector, showing them op- engender believability and first entry point of most for- users were asked to simply main anonymous spoke of no perfect brand, as nations portunities and benefits for trust from stake holders. The eigners is not in good condi- his excitement.“I felt really and cities have their strengths state government should tion and should be addressed and weaknesses, Lolu who be prepared to add its own by the government, while Joe special. Knowing that my spoke at Brand Journalists counterpart fund for every Onuorah of APCON called for friend nominated me to get Association of Nigeria an- Naira generated through this the strengthening of law and a Boxing Day gift makes me nual lecture in Lagos strongly source”. order as a strategy to achieve feel really proud and thank- advised Lagos State in addi- He said what states like state branding. ful. “33” Export has really tion to other states to set up Lagos need is a strategic Speaking earlier, former put a smile on my face this a structure as part of PPP brand management plan chairman of BJAN, Goddie season.” arrangement for their brand- which goes beyond the tradi- Ofose said the discussion “33” Export is a qual- ing project, a trending global tional approach of brand pro- on destination branding was ity lager beer brewed to the scenario. motion. “This way, the start- aimed at eliciting stakehold- highest standards for a crisp Under the structure, he up point is a holistic audit of ers’ awareness on tourism. and refreshing taste. Tuesday 01 January 2019 www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng @Businessdayng BUSINESS DAY 15 Leadway Pensure looks COMPANIES to 2019 with new Lagos branch & MARKETS Pg. 16 COMPANY NEWS ANALYSIS AND INSIGHT OIL & GAS What to expect, as Otedola divests holdings in Forte Oil

GUEST WRITER ing and petroleum chemicals, Limited raises concern over with short-term investment announced 75% divestment. A re-entry at a lower price, hence, the question therefore the proposed transaction, as horizon as the current rally For investors seeking long possibly between NGN21.00 remains why this option was we are not able to further ac- on the stock is temporary be- term value, we do not fore- - NGN25.00, with an exit orte Oil Plc, a ma- not explored. Also, the dearth cess the strength of the stated cause it is neither supported see the price staying above range between NGN35.00 – jor downstream oil of information on the Prudent firms. by the current state of opera- NGN40.00, hence, we also NGN41.00 should however and gas player has Energy Team and Ignite In- On the back of this, we tions of the company nor the advise a SELL for investors yield more benefit over the taken major deci- vestments and Commodities advise a SELL for investors outlook based on the recently that currently have the stock. long-term. sions in 2018 that Fwill change the structure, operations and management of the company in 2019. In May 2018, the company announced plans to divest from its power generating (Amperion Power Distribu- tion Company), upstream servicing (Forte Upstream Services Limited, FUS) busi- nesses, along with its down- stream operations in Ghana (AP Oil & Gas Ghana), to focus its core operations around the marketing and distribution of petroleum products and lubricants. This was approved by shareholders at the Annual General Meeting held during the year. On the 24th of December 2018, the management also notified the public of the de- cision by the majority share- holder, Mr Femi Otedola, to divest his entire holdings, of 75%, in order to focus on opportunities in refinery and petrochemicals. This includes his 186.26mn units of direct shares and 838.47mn shares in indirect holdings. The hold- ings are to be sold to the Pru- dent Energy Team, through Ignite Investments and Com- modities Limited. Due to the liquidity is- sues in the power sector, the company’s decision to focus on the downstream segment can be a good strategy to fully harness the opportuni- ties within the downstream value chain. The company’s effort in expanding its retail footprint alongside the intro- duction of new higher margin products, like Havoline and Solar, should support the company’s bottom-line going forward. Asides the positive long term performance of the company, the corporate governance of FO might also be strengthened further given the institutional ownership of majority of the shares, in the aftermath of the divestment. However, the major down- side is the sentiment sur- rounding the proposed exit of the majority shareholder, as this decision raises varying questions as to the long term outlook of the company. We believe the company could have expanded its portfolio by raising capital to go into refin-

Edited by LOLADE AKINMURELE ([email protected]) Graphics: CHINEDUM ONYEMA 16 BUSINESS DAY www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng @Businessdayng Tuesday 01 January 2019 COMPANIES & MARKETS PENSION FUNDS Leadway Pensure looks to 2019 with new Lagos branch

FRANK ELEANYA If you look around I am certain you will agree we are in the process of creating an s 2019 beckons, ambience which will Leadway Pen- be welcoming to both A sure has expand- clients and staff.” ed its services to cus- The branch unveil- tomers living within ing event which brings Victoria Island, a the total to 13 branch- major business hub for es across Nigeria, also Nigeria’s commercial provided an opportu- capital. The new branch nity for attendees to which the company network and celebrate unveiled in December the new milestone with has a mandate to offer the organization. unparalleled customer Adedeji described experience. the clients as “the rea- “We have come a son we exist and the long way from where reason we will never we began in 2005 and cease to innovate and we are determined to expand our delivery of continually grow with value. On behalf of our our customers who board, management have entrusted us with and members of staff, I their financial future,” say thank you for shar- Ronke Adedeji, manag- ing our dream, for giv- L-R: Tajudeen Quadri, senior special assistant to the Lagos State governor on community affairs; Akeem Omoyele Sulaimon, special adviser to ing director, Leadway ing us the opportunity the Lagos State governor oncommunities and communication; Fola Padonu, permanent secretary, Lagos State Ministry of local government and Pensure PFA said at to serve you and for communication affairs, and Sherifat Ewumi-Dosumu, director, community development department, Lagos State Ministry of local government and communication affairs, during the 2018 community day celebration and end of the year Get-Together by the ministry in Lagos. Pic by Olawale Amoo the launch cocktail joining us in celebrat- that took place at the ing the opening of our new branch’s vicinity. new branch office. ment from the company commitment to providing is one of Nigeria’s most ges financial groups with “This branch has been Aside 13 branches, sent to BusinessDay noted customers with memorable capitalized Pensions Funds investments in insurance, put together with care Leadway Pensure also that this is in response to and excellent services. Administrator and a mem- pensions, asset manage- and attention fit for a has 20 service centers clients’ needs and a step in “It is worthy of note ber of the Leadway Group, ment amongst others,” the branch such as ours. nationwide. A state- furtherance of the brand’s that Leadway Pensure PFA one of the country’s big- statement noted.

BANKING INSURANCE CONSUMER GOODS HEALTHCARE Unity emerges best performing NEM is top dog Fidson beats for third year Vitafoam emerges sole gainer Neimeth, bank stock in 2018 Morison to top ers’ end was Access bank running he consumer International Brew- he banking space has eries (-44.04%), Dan- spot been active, flooded by (-34.93%), Union bank he sector underper- goods start- material trading infor- (-28.21%), United Bank of formed this year with the ed the year gote Flour (-43.62%) T Africa (-23.79%), Jaiz bank 9.62% YoY decline in the and Nigerian Brewer- mation; delisting, retirement T on the back idson (+33.78%) emerged NSEINS10 Index. Five (5) gain- of board members, divest- (-19.05%) and Fidelity bank of bullish in- ies (-39.21%) were the as the top gainer in 2018, (-18.70%). ers and twenty (20) losers settled closing at NGN4.95. Nei- ments and even mergers. It the sector breadth at 0.25x. vestor sentiments, but other laggards for the F At the end of the year, the T meth Pharmaceuticals and Mori- is little wonder why the stocks year. sector closes with seven (7) NEM Insurance closed the at the close of the year son were also gainers in the year, from the sector continued year at the top of the gainers’ With stiff competi- gainers and nine (9) losers the sector closed in the with respective price advance- to rank on the top traded chart for the third consecutive red zone. tion among brewer- ments of 14.67% and 3.77%. volume chart week on week. with the top gainers being the year. The stock gained 54.22% Tier 2 banks and penny stocks The year-to-date re- ies and declining sales In contrast, Union Dac Market tensions and po- YoY to close at NGN2.56. (-46.00%) was the top laggard in in the sector. With the Tier 2 The counter was followed by turn as indicated by revenue across board, litical uncertainties, however, unimpressive earnings the year. Other losers were Phar- weighed as the sector’s per- banks holding more poten- Continental Reinsurance, Cus- the NSEFBT10 stood at madeko Plc (-36.44%), Glaxo- formance. tial for stronger gains, given todian, AIICO, and PRESTIGE, -24.35%, as the sector triggered sell-offs lead- smithKline (-32.90%), Meyer their relatively low prices, we which gained 36.43%, 34.96%, ing to lower valuations (-15.71%) and May & Baker Similarly, the sector 32.69% and 2.00%. breadth for the year breadth at 0.78x, was in fa- saw bargain hunting activities stood at 0.06x, reflect- save for sector heavy (-5.77%). However, AFRINSURE, Cor- Healthcare stocks under the vour of the laggards, as nine pervade these counters. weight like NESTLE However, all gains were nerstone Insurance , SUNU ing one (1) gainer and coverage of Meristem closed the (9) bears outpaced seven (7) Assuarnce, Mutual Benefits, and UNILEVER. offset by the losses on the Seventeen (17) losers. year in the negative zone, as the bulls apiece. REGALINS, STDINSURE, UNIC, Vitafoam Plc was the Analysts at Lagos- index shed -18.83% in the year. Unity Bank ranked as the heavyweight counters in the and UNIVINSURE were the sector. only gainer this year, based Meristem do not With three (3) gainers and five (5) top performing counter this worst performing stocks in the losers, the sector breadth settled In the coming year, expec- sector, with a loss of 60.00% each. with its share price envisage an upturn in year with a share price in- the near term consid- at 0.60x. crease of 84.91% to close at tations are thatTier 1 banking The price of most coun- advancing 33.33%, to The unimpressive perfor- stocks will improve, support- ters slid this year, following close at NGN4.00. ering the inflation- mance of many counters in the NGN0.98. the implementation of the par Trailing the counter were ing the expected gains on Tier On the other hand, ary risks due to the sector affected investor senti- 2 banking stocks. value rule in January 2018. The ment. In the coming year, there Sterling bank(+71.30%), de- performance of the sector also Dunlop shed -60.00% forthcoming election However, the possibility of spending which may are expectations for a modest funct Skye bank (+54.00%), reflected the bearish trend in of its share price to improvement in earnings per- Diamond bank (+32.67%), political uncertainties, emerg- the market for the most parts dampen cost inputs ing market tensions and strong top the losers’ chart, formance. The relatively low and First City Monument of the year. However, stocks like closing at NGN0.20. thereby putting pres- valuations of the counters should capital outflows, could snuff NEM, CUSTODIAN, and AIICO Bank (+31.08%). PZ Cussons (-44.42%), sure on earnings. also drive the share price perfor- However, on the los- out any gains. had impressive outings in 2018. mance of the players in the sector. Tuesday 01 January 2019 www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng @Businessdayng BUSINESS DAY 17 COMPANIES & MARKETS Business Event INDUSTRIAL GOODS CCNN advances by 110.00% he industrial goods NGN19.95. mance can be attributed to the sector closed the Beta Glass (33.11%), Port- decline in the prices of heavy- year in the red zone, land Paint (14.55%), CAP weights; Dangote Cement and in line with the gen- (2.50%) and Berger (1.30%) WAPCO, which was largely eral market. also featured on the top gainers’ driven by unimpressive earnings TThe sector index has re- chart for the year. and debt burden on WAPCO. turned -37.73% this year. How- On the other hand, Lafarge Although the Company has ever, seven (7) gainers and four WAPCO emerged as the year’s since proposed a rights issue (4) losers emerged, pegging the worse performing counter, shed- of NGN89.21 billion, analysts sector breadth at 1.75x. ding -72.15%, to close the year still hold a bleak outlook on its Cement Company of North- at NG12.50. First Aluminium performance. The market will be ern Nigeria (CCNN) emerged as (-28.00%), Dangote Cement on hand for impressive financial the year’s top gainer, following (-20.43%) and CUTIX (-11.44%) scorecards from Dangote Ce- L-R: Friday Momoh, area sales manager, NB Plc, Owerr; Austine Okweni, regional trade marketing manager, a 110.00% advancement of its were the other losers in the sector. ment and CCNN that have the NB Plc; Flavour Nabania, Life Continental Lager Beer brand ambassador; Chidi Egwu, brand manager, Life share price to close the year at The sector’s weak perfor- potential to drive prices north. Continental Lager Beer, NB Plc, and Idowu Adeshina, regional business manager, NB Plc, at the recently concluded Bridge Of Progress Party in Owerri, Imo State. OIL AND GAS Oil companies endure bearish year disruptions in Libya, Angola negative investor mood to- n the course of 2018, and Venezuela and improved wards counters in the space. bearish sentiment pre- demand supported crude The better performance of vailed in the oil & gas prices in most parts of 2018; companies in the upstream sector as the NSEOILG5 thus, driving the Brent crude sector was evident in the up- Iindex declined by 11.89%. oil price to a 4-year high of ward movement of SEPLAT’s One (1) gainer and eight USD84pb in October 2018. price at the beginning of the (8) losers settled the sector The increased shale oil year. breadth at 0.13x. production, rising US crude The general market mood, ETERNA emerged as the inventories, higher produc- however, dragged investor’s only gainer in the sector tion data from major oil appetite, hence the price this year, after advancing by producing countries, along- decline and there may be no 15.76% to close at NGN4.70. side the temporary waivers major improvement in senti- On the losers’ list were granted on some Iranian ment surrounding the sector. JAPAULOIL (-60.00%), exports dragged prices below Operations of most down- FO (-26.75%), OANDO USD60.00pb towards the end stream players may generally (-18.20%), CONOIL (-16.96%) L-R: Bemigho Awala, consultant, XLR8; Calixthus Okoruwa, chief executive officer, XLR8, and Mukhtar Sirajo, of the year. Brent crude price remain the same, hence no president/Chairman of Council, Nigerian Institute of Public Relations, NIPR, during the award presentation to and TOTAL (-14.76) to close settled at USD52.03pb as at enticing news to significantly XLR8 as PR Consultancy of the year, at the LaPRIGA Hattrick edition in Lagos at NGN0.20, NGN31.85, Friday, the 28th of December drive prices. NGN4.90, NGN23.25, 2018. Analysts however expect NGN196.00 respectively. The current downstream improved investor sentiment Geopolitical tensions such cost structure which impact- on counters like SEPLAT and as the withdrawal of US from ed margins of most down- MOBIL to drive the sector’s Iran’s nuclear deal, supply stream players fueled the performance in 2019.

SERVICES Weak investor sentiment pulls sector underwater he services sector NGN1.36. Other counters (-42.00%), RTBRISCOE moved in tandem featured on the gainers’ (-24.00%) and DAAR- T with the general list include CAVERTON COMM (-20.00%). market, getting dominated (+47.29%), CILEASING The performance of by the bears this year. This (+37.98%), AIRSERVICE the sector was charac- performance was reflected (+21.85%), and MED- terised by negative sen- by the 5.59% decline in the VIEWAIR (+0.50%). In timent, in line with the MERISER U index this year. contrast, NSLTECH bearish mood of the eq- Five (5) counters gained alongside TANTALIZER uities market in general. while fourteen (14) others was the worst perform- In the coming year, the declined to settle the sec- ing stock in the sector, as sentiment towards the L-R: Uaboi Agbebaku, company secretary/legal adviser, NB Plc.; Onyebuchi Nwangwu, Brand Manager, Star tor breadth at 0.36x. they shed 60.00% each to sector will continue to be Lager Beer, and Emmanuel Oriakhi, marketing director NB Plc., at Warri again concert powered By Star Lager LEARNAFRCA outper- close at NGN0.20. reflective of the earnings Beer. formed other counters, Other laggards in the performance of players in gaining 54.55% to close at year include ABCTRANS the sector.

AGRICULTURE Okomu emerges sole gainer

here was only to close the year at the other under-per- one gainer and NGN76.20. formers in the sector. three losers FTNCOCOA on the The performance in the agri- other hand was the of the counters in the Tcultural sector for the worst performing stock sector was driven by year. Hence, the sector in the sector, having corporate earnings breadth closed at 0.33x. lost 60.00% of its price performance during Okomu was the to close at NGN0.20. the year, with inves- sole gainer in the LIVESTOCK and PRES- tors penalizing players sector this year, hav- CO lost 39.76% and with unimpressive out- L-R: Grace Omo-Lamai, human resource director, Nigerian Breweries; Aniekwe Onyinye Jessica, winner, Star You Too Can Shine Competition, and Oludare Olateju, senior brand manager, Star Lager Beer, at the One ing gained by 12.57% 6.57%, prevailing as ings. Lagos Fiesta sponsored by Star Lager. 18 BUSINESS DAY C002D5556 Tuesday 01 January 2019 AVIATION GUIDE in association with How Ethiopian Airlines is connecting Africa to the world - Nakasone Ethiopian Airline (ET) recently commenced its inaugural flight through Lome to Los Angeles. This is after the carrier had flown from Addis Ababa via Dublin to Los Angeles since 2015. Lome has therefore become the only and first to connect non-stop the West Coast of USA with West Africa. Connections to major West Africa cities: Lagos, Abuja, Accra, Dakar, Abidjan. This therefore implies that Los Angeles Airport (LAX) is only one of two airports in the world to service six continents with nonstop flights and the only U.S. West Coast gateway airport with nonstop service to Africa. This new air service is part of ET’s plans to connect more African countries to the United States of America and the rest of the world. Los Angeles no doubt is one of the most visited cities across the world, little wonder why ET is helping make travel experience seamless for passengers who would love to visit the city. In this interview with Ifeoma Okeke, Stephanie Nakasone, senior director, Tourism for Los Angeles Tourism and Convention Board speaks on the Board’s partnership with ET and how this partnership will benefit passengers.

What are the benefits of ment and growth is con- we want to showcase Los key experience in the destina- this new air service by Ethio- cerned, obviously, the more Angeles as a destination so tion. So Los Angeles World pian Airlines through Lome new air service we get, the that when you go back to Airport in the tourism board to Los Angeles? more increase in visitations your cities, you can pass the perspective also wants to pro- e are very we get. Right now what is key information of Los Angeles vide the most perfect passen- excited that with Ethiopian Airlines as a as a destination and how ger experience upon arrival or Ethiopian partner with Los Angeles is attractive it is that everyone departure, whether it means Airlines has that it connects Africa to LAX. should visit. We also work getting them through security commenced The numbers may be smaller with Ethiopian airline on a quickly, providing amazing Wservice from Lome to Los compared to our other key travel trade side. So, we are dining or shopping and not Angeles Airport (LAX) and markets but that is where we hoping to operate with them just the regular average air- this does not just include this find a challenge for us into on more travel trade busi- port retail shop or restaurant. new air service but it goes making sure that there is ness. On the travel trade side, So, what we are looking at back to 2015 when they first respectable growth from this we will be welcoming tour is bringing Los Angeles as a started their service from area of the world. operators and travel agents city and a destination to the Addis Ababa via Dublin. This What is your projection who have the potentials to overall experience of LAX particular new air service is on passenger movement for sell our destinations and are as well. So, a lot of our local of interest to us too because it the next ten years? also supporters of Ethiopian restaurants have set up shops actually connects West Africa It is difficult to project but airlines. We try to match all of at LAX. So, we are also looking to LAX. We feel there are a lot it is also a matter of supply it together and work together at LAX and working with them of potentials because there is and demand. I think working as one team. On a broader in making LAX a destination as well. a large Ethiopian community with Ethiopian Airlines and Stephanie Nakasone, senior director, Tourism for Los Angeles perspective, we also work from the perspective of Ethio- working very closely with Tourism and Convention Board with the state tourism board In terms of passenger fa- pia but there is also a large the travel trade in providing in California as well as our cilitation, how do you com- Nigerian community from Los online training capabilities, so What do you think will make one, whether from a small national tourism in USA. We pare LAX and other major Angeles. So I think there are a as to train them and give them an average African prefer budget all the way up to the work collectively as a tourism airports across the world? lot of opportunities for growth additional information about coming to Los Angeles, than most luxurious visitor to Los component to ensure we are Each airport is different for Ethiopian Airlines and we Los Angeles as a destination other places? Angeles. Whether you want successful in what we do. We and unique. For us, in work- are so excited to be working will increase the numbers. We From an international to do a helicopter tour or a are all interested in increas- ing with our partners at LAX, with them. Like I said, we have tell them things like how we visitation perspective, Los bike tour of Los Angeles and ing the numbers no matter we ensure that the passenger had this relationship since sell it, what we have to offer, Angeles is a diverse city and everything in between, there where in the world. We find experience is a very positive 2015 and at the same time, we what to see, what to do and community. For visitations is something for everyone this particular new air service one. We have got programmes work very closely with LAX in how to get around, amongst all over the world and glob- here in Los Angeles and we interesting and we are excited where we have volunteers encouraging new air services others. Once we are not there ally, we are very fortunate. are very welcoming. So, that about it. with dogs and puppies for especially from parts of the physically, we have our very We are very active in promot- is our mantra and we look You said the propose passengers who may be a world where there is not a lot large online presence where ing tourism to Los Angeles forward to welcoming more modernisation of LAX will little bit on edge, to also help of services at this particular we can make up for not being with all of our partners and visitors from Africa. cost about 14billion dollars. put a smile on your face when time. present at any location. from that perspective; we are In your partnership with What does this modernisa- you are working with dogs. It In terms of figures, from Nigeria, which as a very the entertainment capital of Ethiopian airline, what are tion entails and how do you helps also with families travel- 2015 till now, have you ob- big market has some colo- the world. We have a large you both doing together to think other airports can ling with children. Just little served growth in passenger nial attachments with Brit- arts and cultural scene, we make LA a tourism destina- emulate from this? things like these that we hope movement through Ethio- ain. In Egypt and Ethiopia, have things to see and do tion you desire? This is modernising the is really big in these small little pian Airlines to Los Angeles? there are lots of artefacts from every budget level. We Sponsoring a familiarisa- passenger experience. So, ways I just mentioned helps As far as passenger move- and historical locations. have something for every- tion trip like this shows that upon arrival, that is your first ease the travel experience. Tuesday 01 January 2019 BUSINESS DAY 19 BD In association with 9mobile TECH plans to break new grounds in IoT, data services, mobile money in 2019 services that support your every- express our deepest gratitude to Stories by day needs such as our 9Pay pay- you all our stakeholders, for keep- Jumoke Akiyode Lawanson ment service, we are set to break ing faith with us in the globally fallow grounds in emerging areas challenging and a uniquely blus- mobile, has expressed like Internet of Things (IoT) and tery year. We have come this far gratitude to its custom- Machine Learning capabilities to only because we had you stand- ers and indeed all Nige- drive superior customer experi- ing strong with us every bit of the rians for their steadfast ence,” Beuvelet said. way; and it is not just this year, but support and loyalty in He assured further that 9mo- indeed, since our inception”, he 92018, and assured them of contin- bile would continue “to expand said. uous delivery of excellent services our 3G and 4G networks to bridge Beuvelet added that 9mobile in the New Year. mobile broadband service gap, management sincerely appreciates Stephane Beuvelet, acting deliver cloud-enabled services to both the commitment of its inter- managing director of 9mobile, in support SMEs and financial inclu- nal stakeholders and encourage- an end-of-year message, said the sion capabilities, and deploy an ment from external stakeholders. new management of the telecom- array of innovative brand loyalty “Our key stakeholders in one munications company is deeply reward programmes.” way or the other provided the grateful to customers and other He said the successful recapi- critical lifeline that we needed to stakeholders for their unwavering talisation of the company which thrive. Most importantly, as our support and confidence 9mobile outcome includes a seamless valued customers, you stayed with amidst the operating challenges change in shareholding structure us, demonstrating unalloyed loy- in the outgoing year. and the inauguration of a new alty and confidence in 9mobile. The acting MD said, in further- board and management, was ded- As a result, today, we are here ance of its commitment to deliver- initiatives that guarantee opti- voice and video/data services, icated to the customers, employ- standing, and we are grateful”, he ing superior customer experience, mum value to customers. LTE network coverage expansion ees and other stakeholders for be- asserted. 9mobile is set to break many new “From an aggressive enhance- to 15 new cities, more innovative lieving in the 9mobile brand. Buevelet urged all Nigerians to grounds in 2019 by kick-starting a ment of network capacity and data offerings including triple play “In the spirit of the season, I enjoy the holidays and wished ev- new strategic direction with bold innovative features to boost HD and streaming service, to digital would like to take a moment to eryone a Happy New Year! Western Digital expands product range in Nigeria estern Digital Corpo- capacity and high-quality storage in 32, 64, 128, 256 GB capacities. video on the card without worrying per sec and 405 MB per sec respec- ration, a global data solutions to fit theincreasingly dig- Dual Drive– The SanDisk Ultra about running out of space for the tively while using ultra-low power technology compa- ital lifestyles of consumers. More Dual Drive m3.0 is for Android™ videos, photos, music, movies and draw mode. ny, has expanded its and more Nigerians are capturing devices and enables the movement other files you want to shoot, save WD Blue™ SSD– It is the best Wportfolio of data storage devices in moments and creating and sharing of content from your OTG-enabled and share. option for those who are looking Nigeria. The expansion will allow memories with their smartphones, Android smartphones to your SanDisk external SSDs for a performance that excels in Nigerian consumers to access a high-resolution cameras, drones computer. Quickly free up space SanDisk Extreme Portable SSD SATA standards and reaches read wide range of WD®- and SanDisk®- and action cams. We want every- on your Android smartphone or – This ruggedized portable SSD and write speeds of up to 545 MB brand products. one to know that Western Digital tablet so you can take more pic- delivers high-speed transfers of per sec and 525 MB per sec respec- As part of the expansion, West- and its consumer brands have the tures and videos. It comes in 16, 32, up to 550MB/s making it perfect tively. ern Digital has introduced prod- right storage solutions for their 64, 128, 256 GB capacities. for saving and editing hi-res pho- WD Black™ PCIe SSD - WD ucts catered to mobile storage needs.” 400GB micro SD card –The tos and videos. With an IP55 rating Black PCIe SSDs are equipped solutions, which includes the iX- SanDisk Mobile Storage Solutions SanDisk Ultra microSDXC UHS-I and a solid state core, it also stands with sequential read speeds up to pand™ flash drive, SanDisk Ultra™ iXpand– The iXpand flash drive is card is perfect for recording and up to rain, spills, dust and drops. It 2050MB/s, unlocking a new level Dual Drive m3.0, microSD™ and ideal for the iPhone or iPad that en- watching Full HD video, with comes in 250 GB, 500 GB, 1 TB and of performance for high-perfor- SD™ cards (SanDisk Extreme™ and ables you to free up space, back up space for hours of video. Ideal for 2 TB capacities. mance PC users. SanDisk Extreme PRO™); in ad- your camera roll and even watch Android based smartphones and Western Digital internal SSDs WD external hard drives dition to SanDisk external SSDs; videos straight from the drive. iX- tablets, this card’s A1 rating means A wide range of Western Digital My Passport™ - The My Passport WD internal SSDs, and a range of pand flash drives are equipped that you can load apps faster too. internal SSDs which bolster your portable drive is trusted to store the internal and external hard drives, with a lightning connector and a This card racks up transfer speeds PC with upgraded speed and reli- massive amounts of photos, videos while offering after-sales support USB 3.0 connector so users can of 100MB/s and can move 1,200 ability. and music you love. Available in an for consumers across Nigeria. move files between iPhone, iPad, photos per minute. It meets the WD Green™ SSD - The WD array of vibrant, fun colours, the Speaking on the and Mac or PC computers. Users A1 App Performance Class speci- Green SSDs are meant for a quint- sleek style fits comfortably in the expansion,Ghassan Azzi, Senior can also set the iXpand mobile fication which allows it to load essential level of performance. palm of your hand, so you can eas- Sales Manager for Africa Western app to automatically back up their apps faster. With a breakthrough These can be best suited for day- ily take your treasured content ev- Digital said, “At Western Digital iPhone or iPad camera roll anytime capacity of up to 400GB, you can to-day functionality and can reach erywhere you go. It comes in 1TB, we offer high-performance, high- the product is connected. It comes store even more hours of Full HD read and write speeds of 540 MB 2TB, 3TB and 4TB capacities. 20 BUSINESS DAY Tuesday 01 January 2019 BD E-mail: [email protected] MTN Nigeria We need to save Nigeria Computer Society launches business survey tool from extinction - Austin Okere t has been estimated that by 2023 govern- ust 17 years ago, Kodak nothing more seems to have rapidly changing times. ments will begin to ex- had 170,000 employ- changed. Are we in touch with Is our foundation vision plore replacing census ees and sold 85% of all our millennials today? robust enough to stand the Iwith big-data technologies. photo paper worldwide. Do we have any connec- test of this fourth industrial That is the rate at which Within just a few years, tion with Government tech- revolution? We used to be a technology is constantly theirJ business model disap- nology Agencies such as very large association and changing our realities and peared, and they were bank- NITDA and NIGCOMSAT? Do found comfort in our num- forcing more organisations rupt. we make any inputs or con- bers. Things have changed, - start-ups or establish- This may happen to the tribution into Government neither age nor size guaran- ments- to get on board, le- Computer Society of Nigeria technology strategy policy? I tees relevance; in those days veraging data to drive rev- in the next 10 years - even if ask these questions because we used to say that the big fish enue growth. we don’t see it coming. Ko- it seems that a myriad of other will eat the small fish. Today, Leading this technol- dak was not the only casualty. groups has emerged that are it is the fast fish that eats the ogy charge in Nigeria, tele- There were also Sony and Fuji filling out relevant vacancies. slow fish. communications company, who made tons of money Take for instance a What- Perhaps some of the ad- MTN Nigeria in partnership selling Cameras and films; sApp Group called Fintech vocacy that could make the with Communication and especially films. We have al- 1000, to which I belong. They NCS more relevant would be Marketing Research Group ways loved our pictures ask have a crisp and clear vision championing the campaign Limited (CMRG) launched Facebook and Instagram and purpose. It seems that all for Original Equipment Man- a first of its kind business what their successful business the leading technology lead- ufacturer (OEM) Partners of tool for customer insight, model is based upon. ers are on that platform be- our local companies to shoul- focusing on delivering a Indeed, who is not excited Austin Okere cause they identify with the der their own tax burden than better business experience. by the flash of the camera vision and want to contribute leaving it all onto the local Called MTN Smart Sur- lights in their faces? Today to achieving it. They have very partner, even though the ma- vey, the service offers sur- you are sure that the flash of who would eat not only their significant disruption is cer- meaningful interaction, and jor part of the deal goes to vey delivery through the the mobile phone signals a breakfast but also their lunch tainly coming by way of Artifi- some of their initiatives and the OEM. The local Partner USSD channel to MTN picture, but in those days the and dinner as well. cial Intelligence, Big Data and input into Fintech policy doc- is therefore left with a huge subscribers that have been photographer just continued The likes of Apple and Cognitive Computing. uments will make us green withholding tax burden on his profiled based on specific flashing away even when he Samsung who neither used Think of all the drivers that with envy. meagre margin and is chroni- attributes, such as age, gen- ran out of a film, just to keep paper films nor Polaroid pa- will lose their jobs to driver- Her members include the cally cash-strapped, leading der, location, etc. The tool the crowd happy. per. Just seamlessly click away less cars and many of us that CEOs of budding young in- to anaemic growth if at all. has also been designed in It is rather ironic that the and take as many pictures as may lose our jobs to IBM’s novative companies such as Another advocacy point a way that rewards custom- geometric growth in photog- you like, and you can even Watson. Our beloved NCS is Paystack, Paga, flutterwave could be campaigning for the ers with N100 MTN airtime raphy was negatively corre- customize the pictures to look in danger of becoming irrel- and established ones such OEMs to accept their portion upon completion of ques- lated to the fortunes of these much more beautiful or hand- evant... as CWG, Interswitch, Chams of payments in local currency, tions administered through photography giants. As we some. Sometimes you have to Did Mark Zuckerberg visit etc. Many banks and telecoms as currently happens in Ke- the survey. tend more towards a knowl- disrupt yourself to emerge a or even acknowledge us when leaders across Africa regularly nya; so that the local company Speaking at the launch edge-based economy led by better and more effective you. he visited Nigeria? When Vice make contributions. People is not left alone to bear the ex- event, Lynda Saint- Nwa- technology, the fortunes of We have to learn to unlearn President Yemi Osinbajo on join an Organization because change risk. for, Chief Enterprise Busi- the NCS seem ironical to be and relearn. June 11, 2017, named 28 Tech they identify with the vision, I charge us to recommit ness Officer, MTN Nigeria, negatively correlated. The is- What worked perfectly Entrepreneurs into the Ad- which should be inspirational and re-imagine our beloved explained that businesses sue seems to be an ardent many years ago may not work visory Group on Technology and aspirational enough to at- Association, the NCS. Poster- and organisations who sub- aversion to embracing change today and certainly not to- and Creativity, was NCS con- tract them. ity will judge us harshly if the scribe to the service are pro- and innovation. morrow; that is the inevitabil- sulted? They want their presence NCS becomes extinct under vided with analysis, reports When the destructive Po- ity of innovation and change. I remember as a student and contribution to meaning- our watch. The best time to and recommendations laroid technology was invent- The camera and paper film being a very proud Student fully impact their society... act was 10 years ago. The next based on the feedback of ed to bypass the paper film, industry is by no means the member of the Computer As- How many people still best time is now. the respondents through an these industry leaders en- only casualty of disruption. sociation of Nigeria and at- remember the vision of the accredited research agency. sured its swift death by studi- Look no further than Uber tending many insightful con- NCS? It is possible that the old Lynda also reiterated ously ignoring the innovation. and AirBnB to see how the ferences. While we have gone vision has run its course and Austin Okere is the Founder of MTN’s commitment to pro- What they did not see com- taxi and hotel industries have through two name changes we need to craft a new direc- CWG Plc and the Ausso Lead- viding tailor made solutions ing were the tech companies been disrupted. And more from CAN to COAN to NCS, tion for ourselves, in these ership Academy. for everyday business chal- lenges. “We are excited to know how this platform will help Olufuye steps down as AfICTA Chairman, Elgamal takes position in sharpening business ideas and directions in the Jumoke Akiyode- national corporations, com- Personality Awards, setting and governments across Af- oon, Gabon and Lesotho. Nigerian market and MTN Lawanson panies, organisations and up of a self-sustaining AfIC- rica, boosting intra-African In his acceptance Nigeria remains committed individuals in the ICT sec- TA secretariat with 2 staff, Business Match-making for speech, Elgamal thanked in providing platforms to fter founding and tor in Africa. unbroken organisation of trade and wealth creation Olufuye for all the good provide seamless business successfully stir- Olufuye, who has been the Alliance summit for the across Africa, initiating the works he had done and flow, the MTN Smart Survey ring the affairs of in the vanguard of African past 6 years, among others. “1m Jobs Initiative by 2025” promised to take the Alli- is not just a tool but a strate- the Africa Infor- digital inclusion in his fare- Olufuye listed other powered by EITESAL, con- ance to greater heights in gic driver and a real enabler mationA and Communica- well speech while narrating achievements to include, tinuous engagement with collaboration with his col- of business performance.” tion Technologies Alliance his success story outlined signing of memorandum the African Union especial- leagues on the board and Guests in attendance (AfICTA) for six years run- seventeen achievements of understandings (MoUs) ly on IGF and the growth of members in general. from different business sec- ning, Jimson Olufuye has recorded during his tenure. with Software Engineer- member countries from six AfICTA says its vision is tors in Nigeria were oppor- stepped down as its found- Some of his achieve- ing Competency Centre to thirty with twenty four Af- to fulfil the promise of the tune to test the survey plat- ing Chairman. ments included the articu- (SECC), IT Industry Devel- rican countries to go. digital age for everyone in form beforehand to know This is as AfICTA at its lation of the constitution of opment Agency (ITIDA), Meanwhile, current Africa while its mission is to how this business tool can 6th Annual General Meet- the Alliance. Development Egypt, National IT Devel- members are from Nigeria, encourage multi-stakehold- interest their customers and ing held in Nairobi, Kenya of the AfICTA strategy doc- opment Agency (NITDA) South Africa, Egypt, Kenya, er dialogue fostering ac- business at large. recently and in line with its ument; development and Nigeria and Asian-Oceania Namibia, Cote d’Ivore, Gha- celerated and ICT enabled MTN says it is commit- constitution, elected its sec- hosting of the website and Computing Industry Organ- na, Tunisia, The Gambia, development in Africa and ted to continuously seek ond Chairman, Hossam El- successful migration from isation (ASOCIO), World Niger, Mali, Ethiopia, Bu- the use of cutting-edge in- ways to contribute to the gamal of the Arab Republic .org to .africa, registration Information Technology rundi, Rwanda, Botswana, novative technologies in- Nigerian economy by ex- of Egypt. of the alliance in Nigeria, and Services Alliance (WIT- Zimbabwe, Tanzania, Zam- cluding mobile, computing tending its partnership ca- AfICTA is a concerned registration in Nigeria of SA), Alliance for Affordable bia, Sudan, Somalia, Libya, and satellite technologies to pabilities to brighten the private sector led alliance the trademarks: Africa ICT Internet (A4AI), enhanc- Chad, Benin, DRC, Senegal, achieve an Information so- lives of small business own- of ICT Associations, multi- Champion and Africa ICT ing links between business Uganda, Mauritius, Camer- ciety in Africa. ers within the country. Tuesday 01 January 2019 www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng BUSINESS DAY 21 EDUCATION Weekly insight on current and future trends in education Primary/Secondary Higher Human Capital ‘Policy implementation to drive investment in education sector in 2019’ meaningful lives”. when each policy should be KELECHI EWUZIE “Our education system achieved. They need to moni- should equip students with tor the implementation of overnment’s foundational cognitive skills as these policies. When this is early resolution well as higher-order cognitive done, I think we will see an ap- of issues such skills such as reasoning, cre- preciable improvement in the as funding, high ativity and problem-solving”. education sector in the coming rate of out of “Our education system years. But we got to have com- schoolG children, teacher qual- should equip students with mitment from government by ity, Academic Staff Union of socio-emotional skills, some- all of the stakeholders”, Adey- Universities (ASUU) strike times called soft or non-cog- emi said. among others challenges that nitive skills such as conscien- Peter Okebukola, former bedeviled the education sector tiousness, perseverance and executive secretary, National in 2018 would bring the much the ability to work on teams Universities Commission needed investments, industry that help them acquire and ap- (NUC) told BusinessDay that watchers in education say. ply the foundational and other the National Policy on Educa- Also there is the need for skills”, he said. tion in Nigeria is one of the government to address the Isaac Adeyemi, former vice finest documents on educa- current situation where the chancellor, Bells University, tion in Africa. Nations education system Ota Ogun State observes that According to him, “It virtu- struggles to meet all the four- Nigeria has never had a good ally covers all angles in the key school-level ingredients recommended 26 percent. abroad. Subair says that to get out of history when it comes to policy delivery of education. It is not for learning: prepared learners, The fallout is that lecturers Assessing the performance the education crisis, manag- implementation. working as envisioned in some effective teaching, learning demand higher pay on a regu- of the education sector in 2018, ers of the education system “I would advocate that in areas because many are satis- focused inputs, and the skilled lar basis and grind academic Hakeem Subair, founder/ not only need to increase 2019 there should be a policy fied with flouting its provisions management and governance activities to a halt with strikes, CEO, 1 Million Teachers said enrolment and access, but implementation monitoring since the penalty for transgres- that pulls them all together. most tertiary institutions are although there were pockets of need to go beyond schooling committee of some sort which sion is weak”. Educationists observe that dilapidated, libraries are poor- excellence across the country, to prioritise learning because should consist of industry Pai Obanya, Emeritus Pro- in 2018 as in previous years, ly stocked with relevant mate- especially among the high-end schooling is not the same as professional, government and fessor in the Institute of Educa- budgetary allocation to the rials, examinations like WAEC, private schools that represent learning. ministry personnel to follow tion, University of Ibadan said sector has consistently fallen NECO and JAMB record mass less than 0.5% of students, but To him, “Our education up on these policies”. strategic planning of Educa- short of the United Nations failures and the best brains the majority are falling behind, system should equip students “These policies have time tion is an antidote to most of Educational, Scientific and Cul- in academia are constrained and no society thrives where with the skills they need to table which is a good intent. the ills we have experienced tural Organisation’s (UNESCO) to look for greener pastures the majority are falling behind. lead healthy, productive, and It should show the time frame in recent times with the sector.

Bridge Schools among the best in Kenyan National Primary Exams POISE NIGERIA deepens Nigerian graduates employability ridge International lently well in the Kenya Prima- Bridge pupils increases for prospect with certification programme relaunch Academies, leader ry school exit (KPCE) exams, each year they study in the in the provision of and shown significant learning school. Pupils who have spent DIPO OLADEHINDE analysis and human resources “They don’t have essential affordable education gains in Nigeria, Uganda and the majority of their primary which will significantly im- skills which is employ-ability Bthrough cutting edge technol- Liberia. We are delighted that education at Bridge (five or hrough its transfor- prove the performance of the skills or competency that are ogy in underserved communi- the evidence of learning gains more years) averaged almost mational curriculum young executive in the work essential in every work place. ties have achieved impressive Bridge provides gets stronger 30 points higher than the called Poise Gradu- place.” Such as problems solving success in the Kenya Cer- each year. At Bridge Nigeria, national average and are 43% ate Finishing Acad- “All this sections will be skills, self management, ini- tificate of Primary Education Equity is the buzzword. Re- more likely to score at least emyT (PGFA), Poise Nigeria, facilitated through experiential tiatives and other soft skills that (KCPE) exams; for the fourth gardless of parental income, 250 marks than the average an etiquette training firm, has learning exercise,” Adeniyi said are required in the work place,” consecutive year. education background or lan- Kenyan pupil. at the event. CallyBechi said. This is following the pub- guage ability, our students Bridge pupils are often relaunch the PSENSE certifi- cation programme structured Adeniyi noted that one Deborah Ameh, business lication of a DFID report in perform above level in Literacy the first in their families to of the root problems of Ni- development manager at Lagos by the UK Government, and Numeracy.” complete primary school or not only to make the Nigerian graduates employable in the geria’s high unemployment Poise Nigeria said beyond revealing equity of learning in For the fourth consec- have access to secondary ed- rate is lack of technical skills. the training, we also link Bridge schools. utive year, Bridge pupils ucation, demonstrating how labour market but also more globally competitive. “Although an average young young executive actively to Bridge runs over 60 schools have outperformed their Bridge is a springboard for Nigeria graduates are willing job opportunities through job in Lagos and Osun, but has yet peers; cementing the trend social mobility. The results Asher Adeniyi, chief mar- keting officer at Poise Nigeria to work, however they lack the fairs, recruitment methods to sit the National Common that Bridge pupils do better. have proved, once again, that required technical skills to ex- and employer engagement Entrance Exams. As such, Thousands of Bridge pupils said the decision to re-launch poverty isn’t destiny. It has cel in the work environment.” programs so they can have education stakeholders are sat the exam and excelled, demonstrated that children the programme was as a result “Our previous success rate the desired job in the labour closely watching the learning despite coming from disad- from impoverished com- of the firm desires to transfer was 87 percent right now we market. outcomes being achieved in vantaged communities. munities can successfully knowledge that will not only have even we have take a step At its last graduation cer- other countries across Africa The performance of girls compete with the wealthiest enhance the soft skills of young closer to 90 percent,” Adeniyi emony, over 20 graduates were where the social enterprise is in Bridge schools is also note- sections of Kenyan society; executives but also improve working. worthy. The individual perfor- all they need is opportunity. their dexterity, knowledge said. offered immediate employ- In Kenya, over a million mances of top scorers Stacy This is not only true in Ke- and attitude to excel in the Nonye CallyBechi, chief ment and are currently making children took the KCPE exam Linda Achieng from Bridge nya but, as has been seen work place. operating officer at Poise Ni- good progress in their careers. this year and for the first time Getembe (409 marks) and through the DFID study, it is Adeniyi explained that geria said the firm remains The Project Lead, EkoBits & there was no passing or failing. Victoria Juarez from Bridge true in Lagos. PSENSE advance certifica- committed in helping young EdoBits, Innih Ikhide stated Following sweeping policy Lamu (403 marks) have paved As the Nigerian Govern- tion will now be run for 10 executive better which is why that the management of Poise changes, all children are now the way for local and national ment remains focused on weeks. “The first five weeks they are increasing passionate Nigeria took conscious steps eligible to attend secondary celebration. Group results improving education out- will be basically be targeted at about training people from all to monitor the progress of its school. The KCPE score sim- are also promising. For the comes across the country they developing soft skills program works of life in technical and young executives to ensure ply determines which type of fourth consecutive year, girls should look at results being while the remaining five weeks soft skills. that they are making signifi- secondary school. attending Bridge for five or achieved in other countries will be use to develop other “Eight years ago we identi- cant impact in their place of Rhoda Odigboh, Academic more years were the highest across Africa and ensure that global skills that are targeted fied a gap, we noticed although work and would do the same director at Bridge, said, “In performing cohort, averaging these approaches are effec- at employment such as ICT, there are so many graduates for graduates that will gain four consecutive years, Bridge 281 marks. tively adopted for the benefit sales and management, busi- around however majority of employment through the ini- pupils have performed excel- The average score for of Nigerian children. ness development, business them are not employable,” tiative. 22 BUSINESS DAY www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng Tuesday 01 January 2019 EDUCATION Focus on special education: Inclusive classrooms based upon the challenges is characterized as good and special educator’s role mastery and accomplish- general considerations of created by the disability at teaching. Here, teachers use and responsibilities shift ment: This would mean that inclusive classrooms as hand. A knowledgeable ap- more hands-on- activities in inclusive setting. These teachers would ensure that highlighted in this article, proach and positive attitude through blended learn- teachers are responsible students learn and master there will be much growth toward inclusion begins by ing with fewer worksheets, to assess and accommo- lesson objectives. Quality in adopting inclusive class- understanding the concept more oral interaction, re- date individual academic, of each student’s different rooms where every child, and the theory behind it. teaching of critical skills behavior and emotional educational experience: both typical and atypical Why integrate children with using computer technology needs. Special education The classroom should be a can coexist in the same special needs into a general supports as students need teachers are facilitators and place where activities are classroom using technology education classroom? Who them for desirable results. collaborators. Both gen- designed for the benefit of and co-teaching strategies benefits? What results? How different are inclusive eral and special educators all students. from the special educa- Inclusion is important classrooms from the tradi- need to clarify their roles, Inclusive classrooms tion and regular education because through our diver- tional classrooms in gen- responsibilities and beliefs build normalisation; this teachers to enhance all stu- Isaac Osae-Brown sity we certainly add to our eral? The essential assump- about the inclusion of stu- means that a person with dents’ learning. Implemen- creativity. If you don’t have tion is that all children can dents with disabilities with a disability has the oppor- tation of inclusive class- he term inclu- a diverse classroom or a di- learn and can be successful a stance of purpose and tunity to live as similarly to rooms in Nigeria schools sion according verse world, you don’t have in the traditional general commitment. Flexibility al- others as possible. In this will no doubt breed normal- to education re- the same creative levels and classrooms but research lows interactions between case, everyone is welcome ization, self-determination searchers cap- I think our strength lies in reveals that in inclusive teachers and students and at assemblies, presenta- and self-esteem for all chil- tures, in one our diversity. classrooms, expectations provides the opportunity to tions and extracurricular dren. When this is achieved, word,T an all-embracing If inclusive classrooms for all students are high. participate within the social activities like community added behavioral problems societal ideology. Inclusion are going to be successful, Students with disabilities context of the classroom in field trips. Many challenges that confront our children secures opportunities for there must be changes in have the opportunities to many different ways. Re- confront teachers striving like bullying, physical and students with disabilities to the traditional general edu- be exposed to much of the search describes the princi- for inclusive classrooms emotional abuse will be learn alongside with their cation classroom of students materials and academic ples that clarify the general for their students in Nigeria obliterated from our school non-disabled peers in gen- in rolls sitting quietly, read- and functional resources considerations of inclusive and other African countries. sites and communities. eral education classrooms. ing and taking notes with presented in the classroom. classrooms as follows: De- Classroom composition, An inclusive classroom their tablets. Research re- In short, teachers in suc- velopment of foundational lesson planning, teacher is a general education envi- veals that students with dis- cessful inclusive classrooms skills: This includes suc- collaboration and assis- Isaac Osae-Brown works ronment in which students abilities could benefit from assume that every child cessful interaction with all tive technology needed to for the Compton Unified with and without disabili- the classroom if two basic should be there and that students, solving and con- implement blended learn- School District in California ties learns together. It is changes in the classroom every child can be success- tributing to the classroom ing remain a task. School as an Education Specialist essentially the opposite of practice are made: Modify- ful in the classroom. Teach- activities. Individualisation: principals tend to place and a beginning Teacher a special education class- ing the school curriculum ers in inclusive classrooms This means that the priori- students who are challeng- Mentor. He is a resource room, where students with to enhance relevance for are responsible for creat- ties for every student in the ing with teachers who are person, an advocate and a disabilities learn with only each student and modifying ing learning opportunities classroom may not be the incapable to attend to the speaker for Special Educa- other students with disabili- instructional techniques. and removing barriers to same since there is a reason needs of these students. If tion services in the United ties. Honestly establishing a These modifications of in- learning and participation one student is participating our school leaders and all States and abroad. www. successful inclusive class- structional techniques are in their classrooms. Here, in an activity from another. stakeholders embrace the facebook.com/inclusive- room varies in complexity, often in keeping with what both the general educator’s Opportunity to experience principles that clarify the mindset/ Greensprings deepens extra-curricular LAUTECH alumni hail appointment of new vice chancellor designate aspect of learning for students he Ladoke Akintola to also be confident in rep- University of Tech- resenting the institution. We nology (LAUTECH) want to urge the state govern- display of several months very proud of my students been deliberate towards de- KELECHI EWUZIE Alumni Association ments and the VC-Designate of hard work and prepara- for delivering such an livering well-rounded edu- TAbuja Chapter has congratu- to evolve strategies that will tion on stage, which ended amazing performance. cation to its students, with lated the new vice chancellor put an end to the perennial ust when we thought we with the much anticipated They worked super hard a strong focus on sports, designate, Michael Olufisayo strikes that the institution has had seen it all, the sec- fireworks! and therefore deserve all music and performing arts Ologunde of the Department been lately renowned for,” ondary school students “I think this epic perfor- the accolades” alongside ensuring aca- of Food Science and Engi- they added. at Greensprings School mance should be re-staged The other campuses of demic excellence. Over the neering in the University who They also commended LekkiJ astonished the audi- for a fee at Muson centre, Greensprings School in An- years Greensprings has pro- will succeed the incumbent Isiaka Ajimobi and Gboyega ence with their breathtaking Royal arts academy or Terra- thony and Ikoyi also deliv- duced superstars like of Dayo Vice Chancellor, Adeniyi Su- Oyetola governors of Oyo and performance of the “Afri- culture”; said Captain Fred, ered incredible Christmas Okeniyi who featured the leiman Gbadegesin. Osun States and the Govern- canized’ version of Shake- CEO PGK Studios and par- show stage performances. world-acclaimed Hunger The Chapter represented ing Council for the transpar- speare’s “Romeo and Juliet”. ent of Greensprings School This consistency across all 3 Games movie and Jimi Odu- by Toyin Ajenifujah-Solebo, ent way in which the new The students also per- student, who witnessed the campuses is an indication of koya who played a major the Chairperson, and the Sec- officers were selected. formed a memorable Zulu performance. the high number of talented role in Nollywood’s Okafor’s retary, Kunle Adigun made it Ologunde born in 1954 dance to the epic song ‘vu- Feyisara Ojugo, Sec- students in Greensprings Law, amongst other alumni known that it is a new dawn hails from Ajagunlase-Iwo lindlela’ by Brenda Fassie. ondary School Principal, School. engaged in performing arts for the University as a new in Ola-Oluwa local govern- One would have thought Lekki Campus said “I am Greensprings has always around the world. Vice Chancellor Designate ment, Osun state. He had they were professional danc- alongside other Principal his first degree from the Uni- ers from South Africa. Officers that have been se- versity of Nsukka; his Mas- The show took place at lected to lead the affairs of the ters’ degree at the Obafemi the soon to be completed institution. Awolowo University, Ile-Ife centre for performing arts According the duo, “Being and his PhD at the Ladoke theatre in the Lekki campus, a foundation member of staff Akintola University of Tech- a venue that will serve as of the institution, we believe nology. He is a fellow of the a world-class location for that the new vice chancellor Nigerian Institute of Food training upcoming music designate have a full under- Science and Technology and performing artists in the standing of the institution and a member of the World near future. and he will reposition the in- Academy of Nutrition and Over 400 attendees, com- stitution to an enviable status Dietetics. prising parents, teachers which it belonged to in the Other appointments that and students couldn’t stop comity of tertiary institutions have been made are Kayode clapping at the end of almost in the country.” Ogunleye as the new Reg- every drama scene, unable “We are proud alumni of istrar and Abayomi Okediji to hold back their cheers LAUTECH and we have gladly as the new Bursar. All these because of the excellent de- represented the institution new officers are expected to livery of this classic master- across the globe. We would assume office on February piece. It was a phenomenal want the younger generation 14, 2019. Tuesday 01 January 2019 C002D5556 BUSINESS DAY 23 Energy Report Oil & Gas Power Renewables Environment Power sector: little achievement after so much noise in 2018 who want to weaponise elec- work and that is part of the put the distribution compa- OLUSOLA BELLO tricity, face the businessmen real problem”, he said. nies at loggerhead with the who have taken it up. The federal government government. The Discos “My role is regulatory, inability to takes urgent mea- feared that their custom- n what looks like ad- oversight and policy, but I sures to stem the tide of illi- ers, some of which form mission of failure have a problem which is the quidity currently confronting the bulk of their revenues the Minster of Power fact that I can’t see a prob- the electricity distribution are being taking away from Works and Housing, lem and turn my back; so I companies, has deemed the them through this policy. Babtunde Raji Fashola ’m getting involved. So the hope of a stable power sup- Then the Embedded Power Ipublicly told Nigerians to people you should be talking ply in the near future . which some of the discos hold the private sector re- to about transformers is not The Nigerian power sec- had also keyed into earlier sponsible for not getting ad- me, the ministry doesn’t sup- tor has been plagued with but became stunted because equate supply of electricity. ply transformers anymore.” structural issues in all key ar- most of the promoters don’t The minister said, busi- Really, the power sector eas that include generation, have the financial muscle to nessmen operating in the has made very little impact gas supply, transmission, do because the bank’s ex- sector should be blamed for on the socio economic lives and distribution. posure to the sector is huge the poor state of electricity of Nigerians from where the Sadly, the operational ca- and the banks are not ready supply to Nigerians. last administration of Presi- pacity of the country’s power to finance their projects to He made the declaration dent Goodluck left it. plants is less than a third of the bank. while speaking at the Nextier Inspite the huge hues their installed capacity. The launch of Energiz- and cries about the efforts Transmission Expan- ing Economic Programme Power Dialogue on recently Babatunde Fashola in Abuja. the current government has sion and Rehabilitation Pro- aimed at bringing reli- The minister argued that put in place to improving the gramme has resulted in a 50 able and efficient power to since the sector had been power sector the impact has anteeing payments to gen- he said say that it was the percent expansion in Grid economic clusters / mar- privatised, it was not the Ni- not been much. erating companies and gas generating companies that Capacity since 2015, from kets around the country. gerian government’s fault if The present administra- suppliers. But this has made are not picking gas instead. 5,000MW to 7,125MW as at Again,the Discos have been citizens fail to enjoy to stable tion met the power sector little impact as gas suppliers Also Chukwueloka December 2017. hit below the belly as their electricity supply. that was hugely deficient in maintain that they are being Umeh, managing director This is yet to be tested market shares are being re- “There are problems with- terms of generations, distri- owed huge amount of debt of Century Power some of as the generating capaci- duced. out a doubt and we must deal bution and transmission. All by generating companies. the challenges in the power ties have not gone beyond Even though these are with them,” the minister said. these it promised to address The generating companies sector have to do with ac- 4000mw. parts of the efforts at making “But let me remind you, when it came to power. The on the other hand are saying cessing funds. The government claimed power get to critical areas all of the assets that the Min- generation level when it that the Discos are not paying “The people, the banks it would have added more of the economy but imple- istry of Power used to control assumed power was about them for the electricity they and investors that we are than 2,000MW to power gen- mentation is seen in some were sold by the last admin- 3,000 megawatts while the supply. going to borrow money from erating capacity by the end of quarters as attempt by the istration before I came. And transmission capacity was The worse thing that has wants to know how much we 2018. Nigerians are waiting federal government to frus- so if you don’t have power, 5,000megawatts. This has ever happened to the priva- are making and the percent- for that to happen – some of trate serious investment in it is not the government’s however been increased tised power sector in Nigeria age return and what is the it via publicly owned plants the sector. Despite the fact problem. Let us be honest,” to7, 000 megawatts. The dis- is the inability of the govern- guarantee that when the (Afam Fast Power, 240MW); that the sector is privatised. he was quoted by the media tribution networks which ment to implement reflective power is produced and sold others through private sec- The worse of them all is as saying. were already in the hands of cost tariff regime which was the investors would get paid tor investment supported the inability of the govern- “The people who are op- private investors before the one of the cardinal points for it. That is a big problem, is by the Federal Government. ment to implement reflective erating the power sector, advent of this government both government and inves- a big lacuna, that question is Nigerians are waiting for that tariff regime which was one generation and distribution have also been faced by sun- tors agreed upon before the not been answered but when to happen. of the cardinal points for the are now privately owned dry challenges which have exercise. This coupled with we talk to NBET, it expresses investors that bought the companies. I am here be- incapacitated them. the capping of investments real concern. we produce Policy in consistency con- power assets, this coupled cause I am concerned. If your However it must be men- that each of the distribution power we sell to NBET and fused investors with the capping of invest- telephone is not working, it tioned that significant in- companies has messed up they buy it and sell to the Under this administration ments that each of the distri- is not the minister of com- vestments have been made the power sector. Discos, the Discos are not there has been series of poli- bution companies can make. munication that you go to. but this has had very little While the government able to collect the money cy inconsistencies which has The government also in- Let us be very clear.” impact on power supply as is attributing the current for the power that they sell left investors more confused. troduced Meter Asset Pro- The minister explained it still remains largely un- epileptic power supply to to people. Number one, the They are seen as dis -in- vider (MAP) regulations to that in other sectors of the steady. For instance, there lack of gas supply, Austin Tariff is too low. Number two, centive by the Discos and which it has even deployed economy, the blame of poor was the launch of the N701 Avuru, managing director of the ATC&T losses are way too other major stakeholders a fund of N37 billion toward services do not necessarily billionPayment Assurance Seplat Petroleum Develop- high, so they are collecting that want to invest in the supplying meters through go to the government but Programme designed to re- ment Company, at a recently about 35percent money for sector. private sector. Nigeria is those operating in the sector. solve the liquidity challenges held conference in Lagos the power that they distrib- The eligible customer’s yet to see the result of this He said, “For those of you in the Power Sector by guar- debunked this claim when ute. That’s never going to policy was one thing that has development. Eko Disco opens customers complaints unit at Lekki ko Electricity Dis- by Godwin Idemudia, the He said: Residents in ment to our customers and director who unveiled the centric utility company in tribution Company company’s general man- the area often complained to the improvement of our office as saying that the Africa, we plan to use this (EKEDC) in a bid to ager, Corporate Commu- about the proximity of the services. company plans to open initiative to get closer to meet its strategic nications, he said the new Lekki district office and how The EkEDC’s spokes- nine customer complaints customers and listen to Edirection of ensuring quality customer complaint unit is it discourages them from man said the office was un- unit’s in 2019 with the next all their complaints. Be it customer satisfaction com- part of several efforts made laying complaints. veiled by Adeoye Fadeyibi, one scheduled for Parkview outrageous billing or faulty missioned a new customer by the company to improve “Our reaction to this was managing director of the Estate, Ikoyi, Lagos State. equipment. Feedback is complaint unit at Lekki in its services and accomplish to bring our services closer company. The EKDC boss said: important to us because it Lagos. 100 per cent customer reso- to them, so this New CCU Idemudia quoted Ad- “The goal remains the same, is needed for us to improve In a statement issued lution. is a symbol of our commit- eoye Fadeyibi, managing to be the leading customer the quality of our services.”

Olusola Bello, Team lead, Analysts: Isaac Anyaogu, Stephen Onyekwelu, Graphics: Joel Samson. Email: [email protected], Tel: +234-8023020011; +234-7037817378 24 BUSINESS DAY www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng Tuesday 01 January 2019 Energy Report Lagos eyes LNG imports to launch private power plan

megawatts it already takes a 24/7 economy. Though quite a few people Olusola Bello from the national grid. To In a bustling African are on the road at nights, yet achieve this, it wants to mega city like Lagos, there it has been discovered that sanction the construction of are a number of benefits to this period accounts for 30% igeria’s most 10 IPPs at strategic locations be derived from highway/ of most fatal road crashes in economical- around the state, selling on street lightning. For one, it our country. ly successful the power at what will be promotes security as hood- Improved night econo- state wants cost-reflective tariffs, lums and criminals who my is one other major ben- to go it alone, Overtime, other inven- hitherto hide in the dark efit of the Light up project. Nimproving gas feedstock tors have come up with sun- to perpetrate evil would no In most major cities of the supply in a bid to woo pri- dry forms of electric light longer have the leeway to world, socio-economic ac- vate power project investors bulbs which have become operate. tivities take place 24 hours According to Petroleum quite useful in all facets of Street lighting also im- around the clock. Economist, Lagos State is human lives. proves safety for drivers, This is especially true of attempting to rewrite the Today, across the world, commuters, riders and pe- developed countries where rules of Nigeria’s power even in the most concealed destrians. It is a common a 24 hour socio-economic sector by developing an village, electric lights are knowledge that pedestrians system is in operation. A independent power project integral part of human ex- and vulnerable road users 24 hour economy is one in (IPP) programme, based istence. In our clime, one of suffer from decreased vis- which socio-economic ac- on both pipeline gas and the most fundamental ways ibility at nights. For these tivities do not halt at night. liquefied natural gas (LNG), that any government could reason, one sure way of New research from across that would also lead to the actually touch the lives of Akinwunmi Ambode reducing the risk to all road the world has indicated that creation of its own mini the citizenry is through pro- users during the night hours many cities, over the past grid within the national vision of basic light infra- The project is conceived to standard of living as well as is to light up the highways two decades, have deliber- grid structure. The state structure. light up major highways and boost the aesthetics of the and streets. ately put in place a strategy envisages some 3 gigawatts It is this realization that streets in the Lagos metrop- City-State. Research has shown that to run a 24 hour economy. (GW) of new gas-fired pow- prompted the Akinwunmi olis with the ultimate goal The ultimate target of the driving outside of daylight The hospitality and enter- er capacity being deployed Ambode administration in of boosting commercial ac- project is the development hours is more dangerous as tainment industries, in par- in the next three-to-five Lagos State to embark on tivities, enhancing security, of a Lagos that is safe and only very few people could ticular, thrive better in a years, building on the 900 the Light up Lagos project. improving the citizenry’s secured Lagos, that operates actually drive well at nights. 24/7 economy.

$48million pipe coating plants of Solewant Group receives national assembly blessing

he Senate and rian Content compliant and Also speaking during Nigeria line pipes milling House of Represen- not a commissioned agent. the visit, Emmanuel Ekon, and production industry, tatives Committees “With the huge investment Chairman House Commit- Solewant Group, in 2013 on Local Content in modern facilities under tee on Local Content, Fed- acquired 139,000square haveT given their nods to the local content requirement in eral House of Representa- meters of land for the pur- $48 million pipe coating each plant visited and local tives described Solewant pose of building a world plants of Solewant Group as manpower, the assurance as pride of Local Content class pipe coating and pipe standard model under the we are giving to them today in Nigeria. According to milling/production plant Nigerian Content Oil and is that we are with them all him, the delegation is satis- facilities in Nigeria” Gas Industry Content De- the way,” the Local Content fied with what they saw. “I The strategic plan he velopment (NOGICD) Act Committee Chairman as- started something in the said, is to provide end to for domestication of works sured. House of Representatives end Pipeline (manufactur- previously being executed He said the government to amend the Local Content ing, Coating and Protection) outside the country by proj- needs to support Solewant Act to cover other areas such construction services to the ects owners. to sustain service delivery as construction and com- Oil, Gas, Manufacturing, The NOGICD Act is de- considering huge invest- munication. The process Chemical and other Indus- Oil prices will rebound in 2019 signed to enhance the level ment in anti-corrosion plant is on course, so there is no tries in Nigeria. of participation of Nigerians with over 250 Nigerian staff reason why Nigerian Gov- The company he stated ost major U.S. shale is hitting ma- and Nigerian companies fully skilled in their employ- ernment will go to China is strategically positioned investment jor oil exporters from the in the country’s oil and gas ment. to borrow money to fund to provide oil and gas com- banks are Middle East on multiple industry. “We are here today on a Local Content. We shall panies the unique pipes fronts. For one, soaring pro- Highlight of the visit was fact finding visit, to access therefore expand the Act to and pipe coating solutions forecasting a reboundM in oil prices in duction is lowering prices. tour of the facilities of Sole- their competence and with accommodate other sectors that help deliver projects on want Group by the Senate what we have seen, the al- so that the IOCs will not con- schedule and within bud- 2019. Price forecasts vary But also, U.S. shipments of and House of Representa- legations or claims that the tinue to dominate Nigerian gets, stressing further that, widely, but most have both light crude to Asia are un- tives Committee on Local company lacks the capacity Companies,” the lawmaker apart from it state of the art West Texas Intermediary dercutting Saudi exports to Content. The facilities in- to carry out its Local Content explained. pipe coating Laboratory, the (WTI) and Brent above cur- the region. Moreover, U.S. spected by the delegates in- obligation are false.” Earlier in his speech, Sol- Solewant multi-layer pipe rent spot prices. exports of refined gasoline clude, Anti-Corrosion Pipe The Senator promised omon Ewanehi, managing coating plant was designed, Bank of America Merrill and naptha is creating a Coating Plant and Concrete that the Upper Chamber will director/CEO of Solewant produced to also provide Lync, for instance, sees WTI glut of those products in Weight Coating Plant amend the Local Content Group, described Solewant pipe double joint coating averaging $59 per barrel in Asia, forcing prices lower. Others include Solewant Act to accommodate other as a product of Local Con- solution for deep offshore 2019. Citi is at the bearish However, analysts now Field Joint Mobile Coating sectors such as, construc- tent. locations and that the plant end with a $49 price target. believe that oil could expe- Equipment as well as the tion, Information Commu- He said Solewant Group equipment are First class EU For Brent, Barclays says the rience a recovery in 2019. state of the art Laboratory. nication Technology(ICT) business is built on expert 3D manufactured. Fresh production curbs Sen Adeola Olamilekan ,Communication and even knowledge, outstanding “We are determined and benchmark will average Solomon, chairman Senate Technology to the benefit of client service and the high- very focus in provision of the $72, and a half dozen other from OPEC and its allies Committee on Local Con- Nigerians. est quality work for each state of the art pipe/metals investment banks have will begin to have an im- tent, who led the delegation “As far as we are con- client that they serve. He coating solutions to oil and price estimates within a few pact on crude supplies, during a facility visit to the cerned with Solewant, we said that they started with gas industry. Solewant is dollars of that price. aided by Canada. Pipeline company said the National are satisfied with what we the acquisition of mobile work in progress and we are However the volume of bottlenecks are also likely Assembly Committee in the saw today. Even for those coating plants and have moving on as you all will LNG shipments heading to to impede U.S. production. Senate and House of Repre- Nigerian companies who since expanded their scope agree with me today that Northeast Asia hit a record With oil prices on the sentatives are satisfied with cannot meet up with the of services and competen- the high operations and high in December, driven rise heading into 2018, shale the standard of facilities at provision of the Local Con- cies to include, Pipe Coating the speed of our Concrete by demand from China and drillers in the U.S. were on the pipe coating plant of tent Law, they should up- Services; anti-corrossion weight coating plant centre, cold weather. LNG imports pace to generate a signifi- Solewant Group. grade their equipment to pipe coating services, 3LPP is a further testimony of into the region – including cant amount of cash flow. He said with their visita- meet up with the guideline to 5LPP coating solutions our value creation to the Many analysts anticipated tion they have been able to of the NOGIC Act and as for and Conrete weight Coating industry. We are pipe/met- China, South Korea, Japan that they would use this confirm the competencies us in the National Assem- Services. als coating company and we and Taiwan – hit 20.5 million of Solewant Group as an bly, we will continue to give “In order to further build will continue to deliver qual- tonnes so far in December, money to ramp up their indigenous company. The them the needed support,” capacity and take opportu- ity projects to the country or 5 percent higher than the drilling activities and boost company is truly 100% Nige- Solomon said. nity of the existing gap in the and beyond,” he said. previous monthly record. production. Tuesday 01 January 2019 www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng BUSINESS DAY 25 Harvard Business Review Tips & Talking Points

TALKING POINTS When offering your Help Wanted How to manage a boss with a zillion ideas team training is a

23%: Korn Ferry, a consulting firm, found bad idea that about 23% of U.S. retailers were un- able to hire all the temporary workers very good manager wants they sought for the 2017 holiday season. their team to have the skills to Esucceed. So it makes sense to + invest in training, right? Not so fast. Training can be powerful when it Stuck in the Middle addresses an underdeveloped skill or knowledge deficit. But too often 26%: Twenty-six percent of American managers turn to training or formal workers are employed at midsize com- learning when it won’t actually solve panies. the problem it’s meant to. When is + training worth trying? First, be sure your internal systems support the Failure to Launch newly desired behavior. For example, training in proactive decision making One-third: CIO, an American-based won’t help employees if senior lead- magazine, wrote that about one-third of ers make all the decisions in your customer relationship management, or company. Second, there needs to CRM, projects end up failing. be a commitment to change. If your + isionary bosses can be fun to work your boss. If your manager does expect you to take team isn’t willing to address a prob- Automation Forecast for. But they can also be overwhelm- action, shape and contain the idea by asking where lem’s root cause, training won’t have ing if they seem to have an endless it fits into the team’s goals and how your boss wants the intended benefit. Third, the train- 47%: According to a University of Oxford supply of ideas. How can you pos- you to prioritize it. By connecting the idea to other, ing needs to be connected to strategic study, 47% of U.S. jobs are predicted to sibly implement everything they ongoing projects, you can help your boss assess it priorities. If employees can’t see how be automated in the future. come up with? First of all, don’t assume your from a strategic perspective. what they’re learning relates to where + V boss expects you to do something every time the company is headed, you’ll waste your money — and their time. Change in the Air they have a brilliant thought. It’s OK to just lis- ten and respond with a simple, “That’s a great 69%: Duarte’s survey of company execu- (Adapted from “When Companies idea” or “I’ll take a look,” and then wait to see (Adapted from “How to Work for a Boss Who Has Should Invest in Training Their tives found that 69% of respondents are if it comes up again. That way you’ll be able to a New Idea Every 5 Minutes,” by Elizabeth Grace planning organizational change projects. Employees — and When They tell whether the idea is actually important to Saunders.) Shouldn’t,” by Ron Carucci.) Create ways for your employees to learn from each other Covering for a colleague without drowning in work Know your idea, audience and eer to peer objective before giving a speech learning can Pbe a power- ou need to have ful (and free) de- three things clear velopment tool. in your mind be- Research shows Y fore giving a speech: that when people your main idea, your want to learn a audience, and your ob- skill, turning to jective. Start preparing colleagues for help is of- rules around honoring con- hen you’re cov- next. You may need to work by focusing on your ten the first thing they do. fidentiality and accepting ering for a co- further ahead than usual, be- You can encourage this feedback graciously can idea: Why are you the Wworker who is cause there’s a greater chance right person to deliver kind of learning in your help. During sessions, be out of the office, it can be that something unexpected organization by setting sure that learning is tied to difficult to keep up. To will happen, or that multiple this talk? What unique up a formal program for real-world situations and maintain your sanity and deadlines will be clustered perspective can you of- it. Start by appointing a problems so that partici- stay productive, put the together. And you may be fer? Then, consider who facilitator to oversee the pants can apply the skills onus on your colleague tempted to spend extra time will be in your audience program. It’s important to they’ve learned quickly. to do a clear handoff of in the office, but don’t overdo and craft your talk with have a neutral party — who And encourage employees responsibilities. Ask for it. Putting in long hours can them in mind. For ex- is not the team’s manager to network, whether online, a plan with details on the make you resentful and lessen ample, if you’re speaking objective. Maybe you want to get — to organize sessions, at networking events, or status of projects, next your productivity. There’s on a small panel, you can frame the audience to donate to a worthy keep everyone on topic through another method, so steps, deadlines and key only so much you can do each your remarks in more intimate, cause, or spread the word about the contacts. Once the col- day — and that’s OK. and maintain a positive that anyone in the company personal terms. If you’re at a confer- importance of your topic. What- atmosphere. You also need can get involved. league leaves, focus on ever your goal is, it will inform your deadlines and what’s crit- (Adapted from “What to Do ence for professionals, you can use to build a safe environ- technical terms. Speaking the same preparation and delivery. (Adapted from “How to Help ical to accomplish each When You’re Covering for ment so that people feel day; less-urgent tasks will Colleagues — and Can’t Keep language as your listeners increases comfortable sharing their Your Employees Learn From have to wait. But keep an Up,” by Elizabeth Grace Saun- the odds that they will understand (Adapted from “To Give a Great thoughts, experiences and Each Other,” by Kelly Palmer eye on what’s coming up ders.) and be inspired by you. And finally, Presentation, Distill Your Message and David Blake.) questions. Setting ground make sure you’ve pinpointed your to Just 15 Words,” by Tricia Brouk.) c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate 26 BUSINESS DAY www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Tuesday 01 January 2019

Politics, technology to shape real estate Concerns as mortgage industry ends 2018 low investment in 2019, experts say despite FG’s interventions …2019 looks to be another challenging year for landlords igerian mortgage cessibility and the second one Stories By CHUKA UROKO industry in the is clarity. Accessibility is a big last 12 months issue because when a bor- could not rise rower approaches a mortgage esides urbanisation, to impact-level bank for loan, the bank will demographic shifts, Ndespite interventions by the begin to ask for things that he sustainability and federal government in the cannot provide. And these are competition from mortgage and housing sec- things he cannot really pro- emerging markets tor, raising concerns among vide in his life, meaning that, Bwhich will play disruptive role, stakeholders that the industry for such a person, mortgage is politics and technology are two may continue to lag for too not accessible. major factors that will shape real long which leads to mortgage In terms of clarity, there estate investment and develop- being inaccessible and unaf- is no unified system. Paul ment in 2019, experts have said. fordable. Onwuanibe, CEO, Landmark It follows that these are the After the Federal Mortgage Group, explained to Business- two main issues that investors Bank of Nigeria (FMBN) and Day that there is no where would watch as they make the National Housing Fund government has published their investment decisions and (NHF), the next biggest inter- a mortgage rate which the projections into the New Year. vention by the federal govern- mortgage banks have to buy To ignore them may turn out a ment in the mortgage industry into or a mortgage standard or wrong step forward. is the establishment of the process which the banks have Politics is a dominant ac- Nigerian Mortgage Refinance to fit into. tivity in Nigeria today ahead Company (NMRC) with a mis- “I don’t really know. It is of the February 2019 general the way, proptech (property homes within central business dential real estate space who are sion ‘to break down barriers to obvious that there is no clarity elections. The implication of technology) is, increasingly) as- districts to reduce the home-to- already contending with issues home ownership by providing in the mortgage system here this to the various sectors of the suming the new backbone of work commute and child care around policies, fees and costs liquidity, affordability, acces- and if there is any such thing, economy including real estate is real estate transactions. facilities within work metropolis; in Europe and economic down- sibility and stability to the it is not yet published and that investments will have to be The forecast by PwC for whether individually or through turn as in Africa and Nigeria in housing market in Nigeria so people don’t know and if put on hold till after the contest, 2019 in Europe also presents collaborative efforts”, Udo Okon- particular. which has the mandate of people don’t know, it means the result and the emergence of an interesting perspective. Ac- jo, CEO, Fine and Country West “On the face of it, the lettings increasing’. such a process does not exist”, a new government. cording to research carried out, Africa, told BusinessDay. market in the UK has been flat In addition to these, there he posited. It is expected that business there needs to be a widening Udo’s submission responds in 2018 with not much prospect have been other initiatives Besides accessibility and activities will slow down, de- of traditional meanings of real to the changing real estate land- of growth this year with policy such as the Federal Ministry clarity, there is also the prob- mand for new space, especially estate to accommodate real as- scape and PwC’s forecast on changes relating to fees and of Finance and the Nigerian lem of interest rate which is for offices or business premises, set related services businesses the immediate future for Africa costs due to kick in”, notes Prop- Sovereign Investment Author- hard to take because a borrow- will drop significantly while in- going into the future. which shows that by 2020, in- ertyWire, an online platform ity (NSIA) which created the er with low income cannot take vestors will adopt ‘sit-don-look’ For this reason, experts ad- vestable real estate will have which tracks residential housing Family Homes Fund (FHF) a long term mortgage loan with attitude, waiting to see policy di- vise that investing in infrastruc- grown by more than 55 percent markets in over 100 countries of and voted N1 trillion for af- double interest rate. It is simply rection of the new government. ture should go beyond tradi- compared to 2012. By 2025, the world. fordable housing for Nigerians not viable. This is because if the “If Buhari the sitting presi- tional assets such as railways there will be 37 ‘megacities’, up Ray Clancy, the editor of the with potential capacity to gen- loan seeker borrows at 20 per- dent wins, that means the presi- or utilities to include a whole from 23 today, and 12 of these online platform, believes that is erate upto1.5 percent increase cent rate, it means that every dent economic condition slow- new investable asset classes to will be in emerging markets likely to be the case in London in GDP by 2023. year, he owes twice as much, down will persist, but if Atiku or service the digital economy, in- while by 2025, emerging markets with the latest reports suggesting This was followed by the and that is how bad it is. any of the presidential candidate cluding 5G infrastructure, data will host 60 percent of global a slow outlook. The November Federal Integrated Staff Hous- The implication of this is emerges as president, there centres and charging points construction activity. lettings index from Hamptons ing (FISH) programme of that if someone who has taken will be a change of perception, for electric and, increasingly, The potential for not just International shows that rents the federal civil service to a mortgage loan is using it to leading to new investment in autonomous vehicles, all of profit (for the investors) but the increased just 0.1 percent year- enhance affordable mass build a house and he is build- the economy”, argues John- which provide a social return development of the society is on-year in Greater London. housing delivery just as the ing at a slow pace because his son Chukwuma, a structural to consumers through better immense because, as Okonjo Clancy quotes the Associa- Mortgage Warehouse Fund- salary remains the same over engineer, insisting that which- connectivity or the environment explained, at the end of the day, tion of Residential Letting Agents ing Limited (MWFL) also the period, he will be in trou- ever way the result of the election in terms of lowering carbon the efforts are all geared towards (ARLA) as saying it is certain that came on board as a special ble because the rate will be turns, no meaningful activity will emissions. developing a more sophisticated this year will be a challenging purpose vehicle that serves to rising whereas his income is take place in the real estate space “In Africa, for instance, the and well-rounded society that is one for landlords and lettings provide short term funding for static. His salary needs to rise before June next year. private sector has to start think- at par with the rest of the world. agents acknowledge this. Rent financing primary mortgage at the same geometric pro- Technology has been de- ing of the big picture, seeing the Globally, the New Year looks costs in the UK’s private rented originations. gression with the rate for him scribed as the new face and gaps in government infrastruc- another challenging year for sector will rise in line with in- Experts explain that there to be able to cope. This is why future of real estate. Already, ture, step in and invest not only landlords whether it is the ones creased demand from prospec- are problems with the coun- experts advocate a legislation as seen in the financial sector in traditional real estate but in in the commercial and retail tive tenants and the impacts of try’s mortgage industry which, towards this process which, of where Fintect (financial technol- relevant assets related services segments of the market or those the expected tenant fees ban in their view, are fundamental. course, depends on how the ogy) is dictating and pointing such as co-work spaces, studio playing in the up-market resi- in 2019. One of such problems is ac- legislation is applied. What developers do differently providing homes for mid-low income buyers n spite of the lull in the Ni- and income level. We struc- and not many low income dence at Sangotedo where caters for the lower middle the rate on the mortgage sys- gerian real estate market, ture payments for people earners. also we have serviced plots, class where a plot sells for N5 tem they offer is much better Imany developers have according to their cash flow But they have started 2-bedroom, 3-bedroom and million. The Ibeju scheme ca- than what is on offer in the been on the vanguard of pro- and they are always excited offering something for the terraces of 4-bedroom.We ters specifically for the middle market at the moment. He, viding homes for Nigerians to see what we are able to low income. In terms of also have Annapolis Court class. “We expect that in the however, identified a problem and have been doing this in do”, Oladipo Idowu Agida, percentage, the distribution at Ibeju Lekki where we have next 10 years, that area will with the mortgage industry ways that are remarkably CEO, Dradrock Real Estate, is 10 percent for low income, about 1000 serviced plots explode because of the kind in, in his view, was cultural. different from those of other explained to BusinessDay. 40 for the high income and and developments for low of developments coming to “People borrow from micro- developers. Dradrock is a frontline 50 for mid-income earners. income earners”, the CEO that area. But one of the chal- finance banks and don’t pay. For many of them, it has real estate investment and “We have also contributed disclosed. lenges we have in the housing This also happens in mort- been a fulfilling experience development company in to the growth of the economy He explained that the industry is that even when gage banks and that is why helping people achieve one Nigeria. Besides its advisory by providing jobs for people. objective of the Annapolis you cater for the lower class, operators complain of huge of their major dreams of role, Dradrock also offers We have all classes of work- brand is to create a place for they cannot still afford. non-performing loans in their owning homes through their structured payment that ers on our employ—skilled people where they can live “This is why we are coming books”, he said. roles as advisors. This means makes it possible for buy- and unskilled labour, profes- and have the kind of lifestyle up with an initiative where The Nigerian mortgage that home buyers are prop- ers, especially Nigerians in sionals, artisans and others. they desire. This is for all anybody that earns $200 dol- industry is tottering today erly advised on how to buy Diaspora who want to have The company’s Annapo- classes of people including lars will be able to buy our because its huge non-per- property for residential or houses back home, to key lis brand of our products are the upper class, middle class plot. This is why too we are forming loans valued at over investment purposes. into their schemes. located in the burgeoning and the lower class. For the working with a lot of part- N1trillion. This, according “We advise clients on In terms of numbers, Lekki peninsular. “We have Sangotedo scheme, their nerships and creating mort- to the CEO, underscores the how best to buy their homes Dradrock has been able to Annapolis Garden at Lakowe serviced plots are going for gage systems whereby people need for a good credit system or hold property for invest- help about 500 people to own where we have serviced N10million -N20 million per will be able to finance their in the country, arguing that ment purposes. We segment property. These are mainly plots and 30 units of 2-bed- plot. This caters for the upper housing purchase”, the CEO if Nigeria had a good credit the market, look at buyers those in high income class, room apartments. We have middle class. assured. system that captures people’s based on their type of job the mid-income earners another Annapolis Resi- The scheme in Lakowe Idowu Agida assured that credit history, it would help. Tuesday 01 January 2019 www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng BUSINESS DAY 27

NMRC boosts liquidity in mortgage market, Now is good time to buy real estate in Nigeria refinances N18bn housing loans Endurance Okafor he Nigeria Mortgage NMRC said it has com- survey by Busi- Refinance Company pleted its N11billion 13.80 per nessDay revealed T(NMRC) has refi- cent Series 2 Bond Issuance that now is a good nanced mortgage loans to- under its N440 billion Me- time to be buying taling N18billion as at De- dium Term Note Programme. home, land, office cember 2018. It said it is part of its primary andA mall from Nigeria’s prop- This is in line with the mandate of providing liquid- erty market as less competi- company’s mandate to pro- ity to the country’s mortgage tion has reduced demand’s mote affordable home own- market. power to influence the price. ership in the country by lever- The net proceeds of the The unattractiveness of aging funding from the capi- exercise will be used to re- the country’s property market tal market to deepen liquidity finance eligible mortgage to investors due to uncertain- in the primary and secondary loans originated by the par- ties of the forthcoming elec- mortgage markets. ticipating mortgage lending tions, declining income on NMRC refinances mort- banks. the part of its citizens, prop- erty glut and the aftershock country’s property market sive property hubs in Lagos, people used to struggle for is gage loan portfolios of its Ogundimu said in a state- of economic recession are the as it reported -2.68 percent not because she planned now left with just one person. member primary mortgage ment that the bond issuance reasons why there is plunge in growth in the quarter under to acquire the property but “With the ability to buy now, lending and commercial reinforces NMRC’s com- property demand. review. Although it was 1.21 “because she heard of a very you can sit down with the banks that comply with its mitment to “encourage and Olurogba Orimalade, percentage point better than attractive deal in the market.” landlord and negotiate to a uniform underwriting stand- promote homeownership in Chairman of the Nigerian the -3.88 percent reported in According to Association very good price,” Stephens ards. Nigeria by linking the capital Institution of Estate Surveyors the previous quarter. of Housing Corporation of mentioned. The deployment of the markets with the housing and Valuers (NIESV) Lagos Ibraheem Babalola, Co- Nigeria (AHCN), more than Nigeria with about 20 mil- N18billion to refinance mort- sector and establishing an State Branch said one cannot Founder/CEO of Muster, a 90 percent of new homes lion units housing deficit has gage loan portfolios of mem- operating and viable second- get property in Nigeria real shared housing marketplace utilise funds from personal one of the lowest mortgage ber lending institutions has ary mortgage market to sup- estate market at a better time said a lot of politicians want savings for incremental con- to Gross Domestic Product helped to boost liquidity in port the primary mortgage than now. to sell their real estate in- struction which as a result of (GDP) rate at about 0.5 per- the Nigerian housing market, market.” vestments to generate funds underdevelopment of Nigeria cent, which obviously lags “It is a good time to buy thus enabling mortgage lend- This is coming after its because, unfortunately, the for campaign and this has Mortgage sector in driving Ghana’s 2 percent, South impacted property prices in home ownership and AHCN Africa’s 30 percent, the U.S ers to provide more housing inaugural N8 billion 14.9 per episode from last two years, loans and encouraging long- cent Series 1 Bond issue in in term of economic reces- the country. says it is “worrisome.” rate at 60 percent and that of “Now is a good time to Yemi Stephens, Partner the UK at 70 percent. term mortgage loan creation. July 2015 – which was fully sion have led to a situation Speaking on the develop- deployed towards refinanc- where a lot of property own- buy properties because prices at Estate Links Limited said Rafiq Raji, chief econo- are actually lower resulting power to negotiate on the side mist at Macroafricaintel ex- ment, the Managing Direc- ing legacy mortgage loan ers and developers are being tor/Chief Executive Officer of portfolios of the participating flexible and are easing up, from the fact that a lot of of the buyer has more than plained that mass housing, as they are ready to just get empty properties owned by doubled. for which there is huge de- NMRC, Kehinde Ogundimu eligible member-mortgage what you can call ‘any profit’,” politicians in major cities like “The property market is mand, is probably not attrac- stated that the company is lending banks. Orimalade said. Lagos, Abuja and Port Har- not buoyant as we speak, as tive because incomes are low working hard to further boost The Series 2 Bonds are Figures by the National court, which were vacant are there are very few buyers. As a and credit is dear. its refinancing operations. unconditionally and irrevo- Bureau of Statistics (NBS) now been be put up for sale buyer, you are able to negoti- “More high-end property, In the quest to providing cably guaranteed by the Fed- showed that Nigeria real es- because they want election ate well now because very few plenty of which are empty liquidity to Nigeria’s mort- eral Government of Nigeria tate sector has been in reces- campaign and they want to people are buying,” Stephens in places like Abuja, have gage industry, NMRC carried (FGN) and thus ascribed an sion for the 11th consecutive quickly turn these properties explained. not enjoyed much custom out Series 2 Bond issuance ‘AAA’ rating by both Global quarter through to Q3 2018 into cash,” Babalola said. He however painted a because the rent economy, at the end of H1 2018. The Credit Rating Co. and Agusto since the first quarter of 2016. He concluded by giving picture of the current state fuelled by political patron- issuance was carried out at & Co. Nigeria’s GDP growth rate an instance that a friend of of the property market and age, has been in dire straits a lower cost compared to the The order book was sub- of 1.81 percent in the review his wants to buy a property he said it is like a situation for the past 3 or more years,” initial issue in 2015. scribed by over 200per cent. in one of the most expen- where a property that four Raji said. quarter could not rub off the Speaking on the impact The bonds were subscribed the issuance will have on the to by domestic investors with country property market, an the Pension Fund Adminis- expert who asked not to be trators (PFAs) representing Nigeria’s real estate performance in 2019 dependent on election outcome quoted said going forward over 70 per cent of the inves- NMRC will be able to lend at tors. …as investors adopt watch and see technique a cheaper cost. Africa’s most populous “Because if they borrow nation however require bout Endurance Okafor Figures by the state funded “If the whole process does The third and fourth quar- at a cheaper cost it means 20 million units to meet its bureau revealed that Nige- not go well and there is unrest ter growth for the property they will be able to refinance housing needs and indus- t a time when Nige- ria real estate sector showed in the system, the recession market under Jonathan fol- mortgage lenders at a cheap- try experts say effectors by ria’s property market pointer of upbeat note for the will are seeing in the real estate lowed in appreciation trajec- er cost, which the ultimate NMRC are directed at bridg- Ashowed signs of re- second consecutive quarter sector will continue,” Ogunl- tory while Buhari’s went in beneficiary are the individu- ing the country’s huge hous- bound, election uncertain- in Q3 2018. eye said by phone. opposite direction. als that are taking the mort- ing gap. Although still in contrac- The real estate perfor- Meanwhile, Jonathan ties morphed into what the gages,” an industry expert The government of Af- industry experts refer to as a tion mood, the sector did mance under different lead- whose primary goal was to better than the -3.88 percent ers showed that the real GDP achieve stable electricity sup- who ask to be quoted on the rica’s largest economy has ‘nightmare’. condition of anonymity said. The country’s real estate growth rate recorded for Q2 by growth recorded in the sec- ply in Nigeria earned the du- however disclosed plans to sector has responded differ- 1.21 percentage points. tor in Q2 of 2011, the same bious distinction of being the The opinion of another inject 500 billion naira ($1.4 ently to the last two presiden- However, Nigeria’s GDP quarter former president, first president in Nigerian his- analyst was not different as billion) to the Federal Mort- tial elections, as such industry growth rate of 1.81 percent in Goodluck Jonathan was sworn tory to lose an election. he said generally, the impact gage Bank of Nigeria (FMBN) experts imagine the forth the third quarter of this year in, stood at 10.48 percent- the The former president con- of the issuance would mean for over the next five years coming general election will could not rub off on the coun- sector positively welcomed ceded the election to chal- that the cost of mortgage in an effort to spur home follow suit. try’s property market. This is the leader. lenger Muhammadu Buhari, lending will come down. ownership that has failed to Jide Ogunleye, CEO of now couple with the fact that This is compared to the who was sworn in to succeed “This means that people take off in Africa’s largest oil Denaro properties Ltd, a busi- the road ahead for the sector 2.97 percent recorded for the him on 29 May 2015. Jonathan that are trying to get mortgage producing nation. ness and investment strategies appears bleak owing to the same quarter in 2015 when said in a statement he issued will be able to access the loan NMRC is a CBN-licensed expert with emphasis on real uncertainty around the 2019 Muhammadu Buhari, the in- on 31 March 2015 that “no- at a lower interest rate,” the mortgage liquidity facility estate said the 2019 general elections. cumbent president was given body’s ambition is worth the analyst said on the condition with the core mandate of election will have a lot of im- “If the 2019 presidential the baton. blood of any Nigerian.” of anonymity. developing the primary and pact in the direction the real election becomes toxic, the The sector didn’t quite Olurogba Orimalade, Meanwhile, the mortgage secondary mortgage markets estate will take. real estate sector is one of smile at the president’s vic- Chairman of the Nigerian interest rates in Nigeria range by raising long-term funds “As a developer, I have al- those that will suffer the most,” tory, as the figure reported was Institution of Estate Surveyors between 7-10 percent for the from the capital market, and ready started getting feedback an industry expert who pre- less than the rate recorded in and Valuers (NIESV) Lagos Federal Mortgage Bank 0f thereby promoting affordable ferred not to be quoted said. the corresponding quarter of as regards the forth coming State Branch said the real Nigeria (NHF) and between home ownership in Nigeria. election. If the election goes Nigeria with about 20 mil- 2014, and marginally lower estate sector is going to drag lion units housing deficit has than growth reported for Q1 because of the political un- 15-25 percent for commercial NMRC was incorporated on peacefully, and regard- mortgage institutions, this on 24th June 2013 and ob- less of the political party that reported 11 consecutive quar- 2015 by 1.98 percentage points certainties. Although he men- wins and there a peaceful ter recession for its property and 0.10 percentages points tioned the sector will eventu- analysts have said is one of tained its final license to op- transition, it is going to hold market since the first quarter respectively, as compiled from ally bounce back regardless of the highest in the world, as erate as a non-deposit taking well for the real estate sector, of 2016 when BusinessDay NBS figures analysed by Busi- whether the present govern- compiled from BusinessDay financial institution from the Ogunleye told BusinessDay. started tracking the data. nessDay. ment remains or not. survey. CBN on 18th February 2015. 28 BUSINESS DAY www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Tuesday 01 January 2019 LegalPerspectives With Odunayo Oyasiji Anti-dumping in international trade Writ of fiery facias Meaning of dumping t is also called the Writ of Fifa. is aware of what the judgement umping is the importation It is often used for the purpose creditor wants to do. Also, the of the products of a coun- of debt recovery. Under this judgement debtor has the right try into another country I D procedure, a sheriff is instructed to file processes opposing the ap- ‘at less than the normal value of to seize and sell the properties of plication. the products.’ Dumping is regard- a judgement debtor in order to sell It must be noted that there is an ed as an unfair practice aimed at and apply the proceeds of the sale established or identified process causing injury to domestic com- to satisfy the debt being owed the of disposing the money realized panies. Therefore, anti-dumping judgement creditor. from sale of the debtor’s property. frowns at the selling of foreign In a situation where the pro- The proceeds of sale is disposed goods in another economy at a ceeds of sale from the moveable as follows- price that will cause injury to a properties that were seized does 1. The sheriff is paid for any domestic industry. Anti-dumping not satisfy the debt, then an appli- amount and expenses due. laws permit the imposition of cation can be brought to levy exe- 2. Payment to the auctioneer temporary duties on goods that cution on the debtor’s immovable (if any) of the prescribed fees and are guilty of dumping. properties too. The application to expenses of sale. Anti-dumping is usually em- court for this is usually by way of 3. Payment to the judgement ployed as a tool to combat the motion on notice supported by creditor of the amount to be levied adverse consequence of trade affidavit evidence. This shows that together with costs (if any). liberalization as local industries the party whose properties are to 4. Payment to the judgement are open to competition from be attached (judgement debtor) debtor. foreign products. Officially, anti- dumping laws are meant to guard The requirement to prove that against “predatory pricing.” Anti- The Criticism a good is being sold at a price be- dumping is the most used trade Anti-dumping as a trade defence low its normal value is a complex defence instrument in modern measure have come under heavy one. There is no straightforward LOCUS CLASSICUS time. criticism based on the ambiguity way to decide what a normal in the wordings of the law which price or normal value is. Often Elements to establish has subjected its implementa- times, normal value means the Cooper v Phibbs (1867) lr 2 hl 149 dumping tion to the discretion of member value of the product in its home When trying to establish that states. Basically, the wordings market. Therefore, a company dumping exists and, as a result, that have introduced complexi- that fixes a lower price for its Fact: Mr Cooper who is the plain- that came up for determination invoke the provisions of anti- ties into anti-dumping law are- product overseas than what it tiff is a nephew to the person that was whether Mr Cooper was the dumping laws, some important ‘normal value’ and ‘material sells locally can be accused of owns Salmon Fishery. He leased owner of the fishery and whether elements/features must be pres- injury’. dumping. the fishery from his uncle. His the lease was void. ent. The elements that must be Due to the lacuna created by Another huge lacuna in the uncle later died before the expi- Judgement: The court held established are – the ambiguity in the wordings of anti-dumping law is in the fact ration of the lease and he had to that the contract and lease that i.That the price of the foreign the law, anti-dumping duties are that the law permits the country renew the lease from his aunt. It existed between Mr Cooper and product is lesser than the normal often imposed on very unreason- alleging dumping not to use the was later discovered in the uncle’s the defendant was voidable. This value. able grounds. In essence, this domestic price of the exporting will that the uncle already granted is because he (Mr Cooper) was ii.Show that material injury is boils down to the fact that the country to determine the normal life tenancy of the fishery to Mr already the beneficial owner of the being inflicted on the domestic success rate of an anti-dumping value of the product. Hence, the Cooper. Therefore, there was no Salmon fishery and there could market. investigation will be high due to country alleging dumping is need to renew the lease with the not be a lease. It was held that the iii.There should be a causal the loopholes in the law. In the free to use the export price of a aunt in the first place. A dispute agreement would be set aside for link between the dumping and United States of America for ex- third country. China is a typical arose when it was time for pay- common mistake by both parties the injury. ample, dumping has a conviction example of a country whose do- ment of the next rent. The issue as to the ownership of the fishery. As simple as these three ele- rate of 96%. To further buttress mestic price is usually not used ments seem to look, they have the foregoing point, most appeal to determine the normal value of been the subject of heavy criti- against anti-dumping duties a product having been classified cism due to their unascertainable before the WTO Dispute Settle- as a non-market economy i.e. nature. More details will be given Legal functions and attributes of money ment Body ends in favour of the the domestic prices of Chinese on the criticisms under a different complainant. products are not true reflections subhead. he phrase ‘your money or your life’ is a language Tcommonly used by men Duties of a customer to a bank of the underworld. This shows the importance attached to ank customers have duties instructions- The bank is under an whatever debt he or she owes the which they need to comply obligation to carry out the instruc- bank. money as some people even Bwith from time to time in tions of a customer. The foregoing It must be noted that a breach put their life at risk to protect it. the course of relating with a bank. places a burden on the customer of any of the above duties will ei- Money is usually the yardstick It is not a one sided relationship, while instructing the bank to al- ther give the bank a good defence to measure wealth. It also in- so there are some duties that the ways give clear instructions that against any accusation of breach of dicates the economic status of relationship imposes on them too. will not mislead the bank. A bank contract or the right to institute an a person or society. Economic Some of the duties a customer owes can only be held liable in a situ- action against the customer. There- a bank are identified below- ation where the customer gives a fore, there is need for a customer to yardsticks like Gross Domestic 1. Duty of care- there is an clear and unambiguous instruction always give clear and unambigu- Product (GDP) and Per Capita implied duty on a customer to to the bank. ous instruction to the bank. Also, Income (PCI) are represented operate his or her account with the 3. Duty to repay- The customer a customer needs to manage the in monetary terms. bank in a way that fraud or loss is owes the bank the duty to repay account in a responsible way. The functions of money can not attributed to such a customer. be inferred from its economic is either borrowed or received. So the customer is to take reason- definition. Money works as a It comes to the holder by way able steps to prevent fraud. In the of gift or in discharge of an case of Salawa v Union Bank (1986) medium of exchange, means of payment, unit of account and obligation 3.money is fully 4 NWLR (Pt 38) 701, 707 the court negotiable 4. Unless otherwise noted that “ a customer has a duty store of value. RM Goode in to take reasonable and ordinary his book on Commercial Law agreed a creditor is not entitled precaution against fraud and if identifies five important char- to demand or obliged to accept as a direct result of the neglect of acteristics of physical money. anything other than money in such precaution loss is sustained, They are- “1. Its value in law is discharge of a debt owed 5. he must bear the loss as between not its intrinsic value as paper Money is a fungible so that any himself and the bank”. The process unit is legally interchangeable of determining whether there has or metal but the sum or unit of been a breach of this duty depends account in which the note or with any other unit or com- on the peculiarities of each case. coin is denominated 2. Money bination of units of the same 2. Duty to give unambiguous is not bought for exchange. It denominated value.” Tuesday 01 January 2019 www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng BUSINESS DAY 29 NEWS Stakeholders list conditions to Nigeria risks weak investor confidence over political uncertainty - Moody boost education sector in 2019 in 2019 by the International OLUWASEGUN OLAKOYENIKAN KELECHI EWUZIE instead of the “society” as a cal achievements that will propriate policy directions Monetary Fund (IMF). centre of development. advance the standard of liv- for the relevant sectors, edu- oody’s investors In spite of these, the rating head 2019 cal- Tolu Odugbemi, former ing of Nigerians. cation inclusive. service, a leading agency sees banks showing endar year, in- vice chancellor, Ondo State “I want to see a country Adeyemi points out that credit rating and strong financial resilience in dustry experts University of Science and with proud and cohesive there are supervisory bodies research agency, 2019 but warned that tight- in the educa- Technology (OSUTECH), people and where appropri- (School Boards, Governing Msaid Nigeria could risk weak ening global financial condi- tion sector have says, “Education is a tool ate values and attention are Councils, Committees on tions are a key downside risk. listed character building, investor and consumer con- A for development if properly placed on key sectors such education, set up to moni- It said although its outlook political will, resolution of fidence over political uncer- handled from childhood to as education, health, human tor growth and development for African banks was stable, bottleneck with Academic tainty and social unrest. adulthood through various rights and security by gov- of education in our schools risks are tilted to the down- Staff Union of Universi- The global rating agency, systems - primary, second- ernment.” and institutions of higher side even though external ties (ASUU), among others, in its 2019 outlook on Africa ary and tertiary levels.” To him, “The investment education. shocks such as falling com- as conditions necessary to - banks and sovereigns, iden- Odugbemi notes that in these key areas and in He is worried that in the modity prices, drought, or boost education sector. tified Nigeria alongside South in 2019 character building particular, the educational past years, some members an escalation of global trade They observe that the ed- Africa and Tanzania as one of must accompany any form sector, will go a long way in of such supervisory bodies wars, could hurt African cor- ucation sector in Nigeria in the African countries bedev- of learning in the various bringing a future and a hope are generally uninformed of porates and their ability to 2018 faced numerous chal- illed with such “an ever-pre- levels of education so that for this generation and fu- their duties, and responsi- repay debt. lenges that affected it gener- sent” challenge. products of these institu- ture generations.” bilities attached to their of- According to the outlook, al performance, adding that As a result, Moody’s said tions will to be relevant to Isaac Adeyemi, an edu- fices. Some work very hard rising US interest rates lead- discipline is very important Nigeria’s growth would be society development. cationist and former vice for excellence while some ing to capital outflows across in attaining any significant more subdued at 2.3 percent He calls on managers of chancellor, Bells University see being in such bodies as emerging markets, in con- achievement in human cap- as “more stable oil prices will the economy to reassess their of Technology, Otta, Ogun opportunities to ‘make it.’ junction with rising govern- ital development. drive economic acceleration” strategies to rebuild our soci- State, observes that the issue “Projects meant to be su- ment debt and currency de- According to them, at in the country. eties by refocusing our val- of leadership in our educa- pervised by their superviso- preciation could significantly the moment, Nigeria is at Nigeria goes to the polls ues on positive and virtuous tion sector needs to be reas- ry bodies become ‘projects’ harm banks’ loan quality and a cross road, instead of our next February to decide its traits, which a robust educa- sessed and reappraised in they execute with nothing to access to foreign currency. present educational system President among ruling Presi- tion sector provides. Nigeria. show for it at the end of the Higher oil prices and helping to propel us forward dent Muhammadu Buhari, According to Odugbemi, He is worried that suc- day. Even the funds for ex- partial liberalisation of the in development, we face a former Vice President, Atiku “In 2019, I desire to see a Ni- cessive governments have ecution of projects are usu- foreign-exchange market gloomy picture of decay be- Abubakar, the presidential geria that is in the forefront failed in providing good and ally thought to be ‘money for have eased pressures on cause of wrong ideas and flag bearer of the opposition of scientific and technologi- effective leadership and ap- sharing,’” he notes. “unhedged” borrowers and teachings that made “self” party and 57 other aspirants. The country is also expected normalised foreign-currency to conduct elections for gov- liquidity, according to the ernors as well as state and credit agency. federal lawmakers. “Capital buffers are strong Growth in Africa’s largest for the bigger banks, but economy stood at 1.81 per- weaker for smaller banks,” cent year-on-year in the third Moody’s forecasted adding quarter of 2018, according to that it expects most rated data by the National Bureau banks to maintain stable prof- of Statistics (NBS) and has itability, build up their capital been projected to hit 1.9 per- buffers and retain ample local cent in 2018 and 2.3 percent currency funding in 2019. ECA hails continental free trade pact as Africa’s milestone policy N Economic Com- expected to change the way mission for Africa Africa does trade and catalyse (ECA) on Monday transformation in a way trade said the African policy has not done before,’’ UContinental Free Trade Area the ECA said in a statement (AfCFTA) agreement was one on Monday. of Africa’s milestone trade Noting the vital signifi- policy. ECA noted that the cance of continental free trade policy would serve as imputes agreement, ECA also urged its toward transforming Africa’s member countries to commit future development. themselves through the inclu- “The AfCFTA is one of the sion of the major pillars of the L-R: Motunrayo Ade-Famoti, CEO, MoneyStewards; Aderemi Banjoko, CEO, dkbMARKETS Limited; Gbenga Shobo, deputy milestone trade policy devel- agreement in their national managing director, FirstBank, and Ibukun Awosika, chairman, FirstBank, at the FirstBank Youth Empowerment Programme in Lagos. opments in Africa which is policies. Ambode swears in new HoS, 6 perm secretaries Amosun assents to N400.3bn Ogun fiscal estimates for 2019 JOSHUA BASSEY gun (ministry of youth and tant for him to lead by example RAZAQ AYINLA, Abeokuta consideration of the whole ‘’throughout the eight years social development); Segun and encourage accountability estimates, slashed the Appro- of our administration, our overnor Akin- Adeniji (Health Service Com- and professionalism. overnor Ibikunle priation Bill to N400.3 billion, budgets have always been wunmi Ambode mission); Abosede Adelaja “Following the swearing Amosun of Ogun taking off a total sum of N2.6 presented and considered of Lagos State on (ministry of tourism, arts and in of the new Head of Service, State on Monday billion as part of fiscal review by the House and signed Monday swore in culture); and Lateef Lawal a new chapter has just been assented to N400.3 made on the total size of the into law on time. This shows Gbillion 2019 Appropriation Bill GHakeem Muri-Okunola as the (Primary Healthcare Board). opened in the history of the fiscal estimates proposed for that we have not taken our 21st Head of Service (HoS) Describing the appoint- Lagos State Public Service. It earlier passed by the Ogun the new year. people for granted.” of the state, with a charge on ments as thoroughly deserv- is a new chapter with high ex- State House of Assembly into After signing the Appro- The governor while re- him to inject fresh ideas that ing, Ambode said a new chap- pectations for the injection of law, making it approved fiscal priation Bill at the confer- viewing how his adminis- will take the public service to ter has been opened in the new energy and vibrancy that estimates for the new year. ence room, Governor’s office, tration had faired in budget new heights as well as make state public service, and par- will move our public service Recall that Governor Abeokuta, Governor Amosun preparation and implemen- Lagos a globally recognised ticularly urged the appoin- to new heights. Amosun, in November 2018 commended the speaker and tation, expressed optimism city-state. tees to justify the elevation by “As the number one civil presented a N402.63 billion the Honourable members of that the next government The governor also swore in working harder to satisfy the servant in Lagos State, you Appropriation Bill before the the House for doing the need- would improve on it. six new permanent secretar- expectations of the people. must demonstrate leader- State House, which was made ful by passing the bill on time. Speaker, Suraju Ishola ies already deployed to vari- While expressing strong ship and lead by example for up of N254.055 billion capi- The governor appreci- Adekunmbi, who had earlier ous Ministries, Departments optimism in the ability of others, including the Body of tal expenditure, representing ated the Ministries of Budget presented the clean copy of the and Agencies (MDAs). Muri-Okunola to effectively Permanent Secretaries, to fol- 63.1 percent and recurrent and Planning and Finance budget to the Governor in the The new permanent sec- take charge on account of his low. You have a responsibility expenditure of N148.5 billion, for a job well done, assuring company of other honoura- retaries, include Titilayo Gon- capacity, knowledge, expo- to provide direction and en- representing 36.9 percent of that the budget would be ad- bles, disclosed that, after taking calves (ministry of health); sure, experience and youthful courage accountability, trans- the total budget. equately funded for the bet- a critical look at the proposed Adeyemi Kosoko (Education energy, Governor Ambode parency, professionalism and But, the State House, af- terment of the people. budget, the House decided to District IV); Sherifat Balo- nonetheless said it was impor- high sense of discipline. ter much deliberation and According to Amosun, approve the sum of N400.3bn. 30 BUSINESS DAY C002D5556 Tuesday 01 January 2019 Tuesday 01 January 2019 C002D5556 BUSINESS DAY 31 32 BUSINESS DAY www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng Tuesday 01 January 2019

Southern Middle-belt leaders allege plans to rig 2019 polls

Iniobong Iwok had come under pressure to “If these reports are true, The group advised INEC to delete the electronic trans- it may just confirm the fears be mindful that the credibil- mission of results from the that the perpetual boast by ity of the conduct of the 2019 igeria’s South- Polling Units (PU) to a cen- the ruling party and its allies elections depended much ern and Mid- tral server and the pasting of of assurance of victory in the with the continued exist- dle-Belt Lead- results at the polling units in 2019 presidential poll even ence of Nigeria as a country ers Forum has the proposed guidelines for before it holds is not based and therefore, must be above raised alarm the 2019 elections. on winning the hearts of the board. over alleged plans to rig the N “Our attention has been people but through under- According to the Forum, 2019 general election, urging drawn to media reports hand means “ “INEC must use form EC 60 E the Independent National on Sunday that the com- The group stressed that which will contain the scores Electoral Commission (INEC) mission has come under rigging often starts with of every candidate at every to resist pressures from those pressure to delete the elec- the changing of results an- Polling Unit (PU) which must bent on sabotaging the poll, tronic transmission of re- nounced by the Polling Of- be pasted at every PU and asking the commission not sults from the Polling Units ficers as party agents are ex- transmitted to a central server to compromise the general (PU) to a central server pected to countersign results by the presiding officer in the election. and the pasting of results but the refusal of any agent to presence of agents.” In a statement to journal- at the polling units in the sign does not invalidate the The group urged Nigerians ists in Lagos, Monday, signed proposed guidelines for results, while often allowing to be on the alert as it may be on behalf of the leaders of the the 2019 elections in sync compromised polling officers possible that some forces are forum, by Yinka Odumakin, with the refusal to sign the to change figures between the already in talks with some for- Bassey Henshaw and Isuwa Electoral Bill passed by the Polling Units and the Ward eign mercenaries to interfere Dogo, the group noted that National Assembly. Collation centres. with next year’s elections. there were reports that INEC Buhari’s ineffective leadership responsible for SDP: Jerry Gana campaign group faults Falae on court judgment

Innocent Odoh, Abuja Court Judgment of 14th De- tional Chairman’s response incessant killings of soldiers - Ezekwesili cember 2018 in favour of Prof. to the letter, our attention was Jerry Gana as the 2019 Presi- drawn to a Press Statement re- he G19, the Presiden- diers on the frontline of battle. way to ensure accuracy of dential Candidate of the SDP, portedly issued by the National Iniobong Iwok tial Campaign team of She added, “The killings the casualty that Nigeria is and in the spirit of our avowed Chairman, Chief OluFalae on former Minister of In- have tragically earned Nigeria commitment to Party Con- the subject matter of our letter, biageli Ezekwesili, suffering as a result of coun- formation, Prof. Jerry stitution, Prof. Gana wrote even to the extent of threat- presidential can- the designation of the 16th ter-terrorism at this stage is Gana,T has faulted the National the National Chairman on ening Party members not to didate of the Allied most dangerous country in the to inaugurate a citizens-led Chairman of the Social Demo- December 17th to inform him attend the events. world, according to the Global independent investigation cratic Party (SDP), Samuel Olu- Congress Party of of the judgment and sought “To say the least, we are NigeriaO (ACPN), has blamed Peace Index. Nigeria is also the panel. Such an initiative would Falae, over his position on the audience on December 19th shocked at the National Chair- 15th most fragile country in go a long way to eliminate the court judgment that declared- incessant killings of Nigerian to brief the National Working man’s sudden shift of position, the 2018 Fragile States Index opaqueness of the counter- Gana as the right presidential soldiers during confrontation Committee (NWC) on the after making commitment by the United States Fund for terrorism war and restore candidate of the party in the with insurgent group, Boko- agenda and roadmap of his to both our Candidate and Peace.” public confidence, as the case 2019 election instead of former Haram in the Northeast on campaign thrust. The Na- other legitimate stakeholders, The presidential candidate, may be. governor of Cross River state, the failure of the President tional Chairman through the that as Social Democrats he expressed concern over reports Donald Duke, earlier picked Muhammadu Buhari’s admin- Ezekwesili further stated Deputy National Chairman and by extension, the Party, by the party. istration. of 700 Nigerian soldiers killed that the constitutional man- South, Prof. Tunde Adeniran are obliged to obey the court The Group in a statement In a statement to journalists in Baga by Boko Haram ter- date of the government to responded on December 18, judgment and orders; and issued at the weekend by its rorists, lamenting that the un- ensure the security of life conveying his inability to be in would expectedly work with in Lagos, Monday, Ezekwesili Director General Dr. Ike Ne- confirmed report also alleged and property of all Nigeri- Abuja as requested. the position of the court,” the frowned at the unabated kill- liaku, noted that the group that over 2,000 of the country’s ans had been poorly han- “On December 19, Prof group said. ings in Zamfara State, saying after numerous enquiries and soldiers are missing. dled, especially within the Gana personally submitted The statement said fur- that the once most peaceful calls from esteemed Party “Although the military and last decade. his nomination form to the ther that for the avoidance of state of the Northwest region supporters and concerned the Presidency have denied “Tackling this will require Party which was received by doubt, the reliefs granted in had been turned into a theatre members of the public from the reports, the serial cred- the Deputy National Chair- consequence of the case by of terrorism. commencing a security dis- within and outside Nigeria, man (North) Dr Abdul Isiaq the FCT High Court are all According to her, the secu- ibility challenges of the Bu- course and planning away was constrained to respond to and other members of the DECLARATORY, which could rity situation in the country hari administration and the from a narrow focus on mil- the Press Statement reportedly NWC on behalf of the Party; ONLY be vitiated by a contrary shows a lack of effective lead- security team he leads as itary responses, to a more issued by the National Chair- for onward transmission to judgment of an appeal court. It Commander-in-Chief of the collective and participative man of SDP, which suggests his ership by President Muham- INEC in line with the court added that it speaks volumes Armed Forces have created conversation of the structure unwillingness to obey the valid madu Buhari, this is demon- Judgment and Order. DrIsiaq that the National Chairman public distrust of any rebuttal of the Nigerian state and our court order. strated in the very troubling announced at the public would prefer an Appeal pro- by government. And that is security architecture. Our Dr. Neliaku stressed in the inertia to decisively confront occasion that the Party will cess, yet to commence and gravely worrisome. ACPN administration would statement that the group had and end the frequent killings of obey the court order. To our determined, in total disregard According to her, “The only without fail prioritise this.” waited for any denial of the our citizens; especially our sol- surprise, we understand that to a subsisting valid judgment authorship of the said state- the National Chairman at and order by a court of compe- ment, especially in the light of the last minute instructed tent jurisdiction. 2019: Okowa urges Deltans to remain united, peaceful earlier directive of the National the Party not to proceed with “We have consulted with Chairman that only Prof Tunde the form to INEC, which is a other leaders of the Party who Francis Sadhere, Warri noted “is the bedrock of mean- both at the federal and the Adeniran is authorised to issue flagrant disobedience to the represent about 90% of both ingful development in any state levels, as well multilateral further statements on the mat- court judgment,” the Director the National Working Com- given society,” he expressed donor agencies.” ter under reference. General said. mittee and National Execu- overnor Ifeanyi the hope that 2019 will be a Governor Okowa noted that, “Following an FCT High Okowa of Delta year of fulfilling a greater and “as one of the first states to sign The group pointed out that tive Committee of the Party, State has called on stronger Delta. the 2019 budget, our govern- after waiting for about 10 days and arrived at the conclusion the people of the He said, “Given our success ment was prepared for the task without any information from that the views of the National stateG to remain united to the the National Chairman on Chairman are not in tandem story in the past three and of governance and provision of moving forward, and being with the majority. cause of developing the state half years in office, I have no key infrastructure which made irrespective of ethnic or party under tremendous pressure to “For record purposes and doubt that with the same level us to hit the ground running commence campaigns in the ensuring that Party members differences. of cooperation from the good from day one“. “I must empha- Okowa, in a statement by his light of limited available time, are well informed of the facts, people of Delta State, our gov- sise that the consistent early Prof Gana wrote a second letter may it be known that up till the Chief Press Secretary, Charles ernment will achieve more in passage of our state budget has dated December 27 notifying last time I checked before issu- Aniagwu, felicitated with all all facets of governance”. given me and indeed the state the National Chairman of his ing this statement, Prof. Jerry Deltans as they stepped into “Our optimism is driven by the advantage of early start- intention to unveil his cam- Gana has not been served of 2019 and expressed gratitude the support we enjoy from our ers, both in the appreciation paign vision to the Media on any Court of Appeal process, to God for the grace granted Youths, leaders, the legislature, of what Deltans expect from December 29 2018 and meet and as such has not engaged Delta and its citizens in 2018. the judiciary, the civil service, their government and in the with Stakeholders on January any counsel to prosecute any Praying for the unity and my team of political appoin- development of solutions to 5, 2019. imaginary appeal on his be- peace in the state, which, he tees, agencies of government, meet such expectations”. Gana “While expecting the Na- half. Tuesday 01 January 2019 www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng BUSINESS DAY 33

Nigeria’s next president must unveil new industrial strategy

ODINAKA ANUDU has been taken over by the Asset Management Company of Nigeria (AMCON). ith the 2019 gen- In 2015, the only surviving brake eral elections pads and lining maker, Star Auto In- few weeks away, dustries, collapsed as it was unable anybody who be- to compete with cheap Chinese comes President products and could not pay back mustW unveil a new industrial strat- loan borrowed from the Bank of egy that will determine Nigeria’s Industry. manufacturing trajectory. “It is difficult to compete with Over the years, the country’s Asia, with substandard, cheap industrial strategy has been obfus- brake pads. I am not happy that cating as it is difficult to determine import duty on brake pads fell from whether the country is trending 25 percent to 10 percent. This is the towards import- substitution or situation since 2004 and govern- export- orientation. ment has done nothing about it,” Import-substitution is a strategy CEO of the firm Chidi Ukachukwu, in which local industries are es- told BusinessDay in early 2014. tablished with a view to producing Today, only three textile firms goods that replace imported ones. out of over 120 in the 1980s are in It requires imposition of tariffs, operation. quotas and exchange controls to “What we need is the enabling protect local industries from for- environment. We cannot compete eign competitors and make foreign with the level of smuggling and goods expensive. counterfeiting going on now. We Export- oriented or substitu- used to have about 127 textile firms tion industrialisation, on the other ample with the bright performance Since 1994, successive govern- rian National Paper Manufacturing in Nigeria but that has come down hand, is a strategy of exporting of food and beverage sub-sector ments have claimed that the com- Company (NNPMC) Limited in to two or three now,” said Grace goods for which a country has a which gets most of its inputs locally plex is 98 percent completed, but Ogun State. Adereti, president of the Nigerian comparative advantage. This strat- as a case study. the remaining two percent has Studies show that Nigeria loses Textile Manufacturers Association egy has worked miracles for the Nevertheless, facts on ground become a hard nut to crack for N180 billion annually from non- (NTMA) in Lagos at a Made-in- Asian Tigers. show that the country’s industrial successive administrations. Mu- performance of these paper mills. Nigeria stakeholders’ meeting in Some countries have also adopt- strategy is not clear. hammadu Buhari’s government Nigeria spends N50 billion on the Lagos. ed foreign private investment strat- In 2013, for instance, the Na- budgeted N3.9 billion in 2016 import of papers annually, accord- “We had the revival loans but this egy, whereby incentives are put in tional Automotive Policy imposed and N4.27 billion in 2017 for the ing to a research done by Abimbola didn’t work because our biggest place to attract multinationals and 35 percent levy and 35 percent duty resuscitation of the steel, despite Ogunwusi and Peter Onwualu, di- problem has never been money,” foreign direct investors. A typical on imported vehicles, amounting to an earlier business case in the last rector and former director-general Adereti said. example of a country with this a total of 70 percent. This was meant administration showing that the of the Raw Materials Research and Similarly, public firms such as policy is Ethiopia, even though it to protect local vehicle assemblers. complex could only work if properly Development Council (RMRDC) Federal Superphosphate Fertilizer may be argued that the East African At the same time, importers of privatised. Newspapers and publishing firms Company and National Steel Raw country is export-oriented or a mix damaged or ‘accidented’ vehicles BusinessDay checks show that are struggling to import papers with Materials Exploration Agency are of export-orientation and foreign officially enjoy a rebate of 30 per- Ajaokuta Complex has the capac- limited foreign exchange, leading also moribund and need a blue- private investment strategies. cent. What this has done is to en- ity to produce one million metric to very high cost of paper products. print. Nigeria has adopted what is courage the importation of rickety tonnes of steel, one million metric “The co-investor that bought Fifty-four manufacturing firms called ‘resource-based industri- vehicles, which make up 70 percent tonnes of coal , manganese and the NigeriaPaper Mill (NPM) Lim- closed down 12 months preceding alisation’, whereby firms use locally of imported cars today. limestone, among others. ited did not buy it to help Nigeria,” August 2016 due to their inability to available resources, such as raw “If you want to develop a market Due to lack of operations at said Samson Ololade Ogundele, access dollars to import raw materi- materials, man power and natural for 54 companies that have got li- Ajaokuta Steel, Nigeria today im- ex-senior manager, NigeriaPaper als, according to a survey carried resources, to grow domestic pro- censes with 410,000 capacity plants ports steel valued at $3.3 billion Mill Limited, Jebba, Kwara State in out by NOI Polls and Centre for duction. and you import a huge number of every year. Lagos, said at a stakeholders’ forum Economic Research in late 2016. This has seen some success used vehicles, how are you going to Frank Udemba Jacobs, immedi- in Lagos in 2016. Speaking at last year’s Manufac- with local input sourcing reaching support vehicles being assembled, ate past president of the Manu- “I know it was valued at about turing & Equipment Expo organ- 57 percent in the first half of 2018, since the ones assembled locally facturers Association of Nigeria N30 billion in Nigeria as at 1995, ised by MAN and Clarion Event according to the Manufacturers will be more expensive?” Bambo (MAN), said over 50 percent of raw but this same mill was given to the West Africa, Aliyu Suleiman of the Association of Nigeria (MAN). De- Adebowale, chairman, Auto and materials used in the sector would investor at N334 million in 2008. Dangote Group, said that an indus- spite adopting this strategy, local Allied Sector group of the LCCI, have been locally available had The aim of the government in hand- trial strategy has become important manufacturers remain the heaviest asked in a recent interview with Ajaokuta been working. ing over the mill was to create jobs for Nigeria as new governments importers of inputs, machines and BusinessDay. Similarly, the Aluminium Smelt- and improve the economy. The spend half of their tenures devising packaging materials. This is why A new industrial strategy has er Company, located in Akwa Ibom majority of Nigerians working in plans, with little room for imple- any scarcity of dollars hurts the become imperaitive, as local in- State, is not in operation due to a Nigeria Paper Mill –both junior and mentation. industrial sector most. dustries are increasingly becoming tussle between Bancorp Financial senior—are all casual,” Ogundele “Last year, the United Kingdom Muda Yusuf, director-general of a shadow of themselves. Investment Group Divino Cor- disclosed, adding that the Federal produced a revised manufacturing the Lagos Chamber of Commerce What is happening to Ajaokuta poration (BFIG), a consortium of Government must re-visit the pri- strategy— a definitive roadmap. We and Industry (LCCI), pointed out Steel Complex today? The complex U.S.-based Nigerian investors led vatisation in spite of the fact that can do that in Nigeria and MAN is recently that the country needs a has gulped $8 billion public funds by Reuben Jaja, and the United it is the only paper mill working at in the best position to do this,” he new industrial strategy targeted at without producing one sheet of Company RUSAL, a Russian firm. the moment. stated. shoring up non-oil export. steel. Recently, the Senate ap- Nigeria has three paper mills As of today, many private com- According to him, the industrial He, however, explained that proved $1 billion from public funds that are not working. These include: panies are either shut down or strategy should include the aspira- import- substitution and export to revive Ajaokuta even when there Nigeria Paper Mill (NPM)Limited mired in intractable legal tussles. tion of industry in terms of how promotion could go together, add- is a good case for its privatisation. located in Jebba, Kwara State; Ni- Vita Malt in Agbara, Ogun State, much GDP contribution targeted; ing that resource-based industrial The next President must not waste gerian Newsprint Manufacturing is shut down. Multi Trex, a 65,000 where to play, with regard to areas is more competitive because local the country’s scarce resources on Company (NNMC)Limited, Oku- metric-tonne cocoa processing of priority, and how to win, in terms resources are utilised, citing an ex- this behemoth. Iboku, Akwa Ibom State; and Nige- factory, the largest in the country, of becoming competitive. 34 BUSINESS DAY g www. g @ g Tuesday 01 January 2019 NEWS

Nigeria by consumption, the state- CCNN tops market gainers in 2018 ahead... ment quoted Abdul Samad Rabiu, Five things businesses must prepare for... Continued from page 1 Africa’s most populous nation means Founder/Executive Chairman of Continued from page 1 yields on government securities that there are opportunities for ce- BUA Group, as saying. The company revenues and dollar inflows. higher and make it more expen- installed capacity of the merged ment makers to boost revenues riding will also continue its exploration of sive for the private sector to raise entity to two million metric tonnes Worse still is that Nigeria cant on the expected upsurge in demand. opportunities in the export markets pump more than 1.6 million barrels capital. per annum, according to the state- The merger also brings the total of Niger, Burkina Faso and the west While fixed income investors ment. of oil daily this year, a limit imposed capacity of BUA’s cement operations African region, he Rabiu added. by the Organisation of Petroleum may enjoy higher yields in 2019 CCNN’s expansion heats up to eight million tonnes per annum, fol- “Traditionally, the huge cost of than in 2018, businesses may suffer competition in the cement sector Exporting Countries (OPEC) to rid lowing the group’s recent completion transportation to CCNN’s home the market of a supply glut and lift under rising interest costs. which expanded 8 percent in the of its three million MTP Obu II Cement region from other cement plants in Bearish stock market third quarter of 2018, the highest oil prices. Plant in Okpella, Edo State, it said. Nigeria – the nearest being about Speculative activities will The fourth thing businesses sectorial growth in the period, ac- The expanded CCNN will remain 900 km away – has always given us should prepare for in 2019 is a pos- cording to the National Bureau of also be rife in the New Year, the market leader in its regional a strategic advantage in that region as dollar demand by investors sible bearish stock market. Statistics (NBS). market of North West Nigeria, the over competing cement companies The Nigerian stock market shiv- The dearth of infrastructure in betting on the naira to weaken third largest market for cement in and brands,” Rabiu said. will only add to pressure on the ers when oil prices catch a cold. exchange rate. When oil prices decline, investor Besides, this could also be the sentiments take a hit and appetite year the naira starts to yield to for stocks wane and vice-versa. rising interest rates in the US and After a torrid 2018, where stocks most developed markets, which succumbed to a loss of 18 percent, have hammered emerging market 2019 may hold little bright pros- currencies from the South African pects for one of Africa’s worst- per- rand to the Mexican Peso. forming stock market. The Central Bank of Nigeria For businesses looking to go (CBN) did a good job fighting off public in 2019, there might be any material depreciation in 2018, need for a rethink as it is never a but that was a CBN that had close good time to face investors when to $50 billion in external reserves at sentiments are sour. It could see the peak of its powers. the company undervalued because Given the outlook for oil reve- buyers are scarce. nues, this year holds new prospects In a reflection of how underval- for the apex bank whose constant ued Nigerian stocks currently are, dollar supply last year to defend the the average Price to Earnings ratio, naira cost it as much as $7 billion. which is a measure of listed com- Higher cost of production panies’ valuations, is at a record The second thing businesses low of 9 times, as foreign portfolio must brace for in the new year is outflows and political uncertainty higher cost of production. If the deals a tough blow on stocks. naira weakens, it becomes more At the most recent market peak expensive for businesses to import in 2014, stocks were valued at 15 raw materials and other inputs, times earnings. That means inves- thereby stoking production costs. tors paid N15 for each naira earned Businesses must therefore con- by listed companies. sider looking for local alternatives, Possible petrol price in- where possible, for the raw mate- crease rials needed for their production An increase in retail petrol process. prices cannot be ruled out this They should also limit or out year as the subsidy burden on the government grows. New Year, new wears, new looks... Consumers, doing last minute shopping for New Year celebration in Lagos. Pic by David Apara rightly eliminate foreign debt, par- ticularly if they do not have foreign At N145 per litre, the amount Ni- exchange receivables to mitigate gerians are paying for fuel is heavily ziri Atiku Abubakar who has a history subsidised by the government. Buhari has a history of smuggling in looted... of preventing such from happening. the possible foreign exchange risk. The borrowing burden The political cost of hiking pet- Continued from page 1 led to the recent setbacks in the war “And while they are at it, we urge rol prices has often deterred the them to tell Nigerians those behind Another thing every business on terrorism in the Northeast and must know going into 2019 is that current administration from mov- remotely corrupt or illegal has Etisalat, now 9Mobile and Keystone ing to hike petrol prices like Saudi been found. the heavy loss of lives amongst the borrowing costs will rise. It would Bank, now Polaris and how they sud- Arabia and Mexico have done “In desperation, the Buhari ad- military rank and file. May God save become more difficult to get credit, denly possessed such wealth overnight. recently. ministration released this statement Nigeria from a government that val- at least from the banks, at afford- “Finally, Nigerians should note However, after the election in to cover their shame on a day that ues money over lives. able rates as the government could that the Buhari administration can- February, that excuse fades. the US based International Strategic “We therefore urge Nigerians to be set to crowd out the private sec- not defend their record on jobs and In the event that there is a hike Studies Association reported that note that it is Muhammadu Buhari tor for the third year running. poverty - the things of most concern in petrol prices, it would trigger it is the unprecedented corruption who has a history and a record of The 2019 budget has a deficit smuggling in looted funds and it is Wa- to voters- thus, their only resort is inflation and reduce purchasing around President Buhari that has slander,” the statement said. of N1.859 trillion and the govern- ment plans to borrow about N1.65 power of households. Add the ex- trillion from a mix of foreign and pected naira depreciation this year Since launch in July 2017, the and the picture is worse. Muster emerges winner of BusinessDay... company has facilitated over 600 local creditors. However, the outlook for oil Businesses could begin to soften Continued from page 2 helps agents give property seekers rented rooms and people with the expected blow from reduced rooms on Muster have earned over earnings puts the government’s ing to rent properties in an af- the flexibility to split rent, thereby revenue target of N6.9 trillion at consumer purchasing power to fordable way. Muster.ng does not making the property more afford- N100,000,000 in rental income. risk. create affordable products and services that moderate the strain charge users to create accounts, able and closing the listing faster Muster prioritised going live In the event that revenues un- than on any of the other traditional in Nigeria in H2:2017 over other derperform, as they have done in on consumer wallets. Goods with have a sharer’s contact card or list elastic demand could also suffer properties. However, in a bid to property lettings platforms” African countries due to a larger the last three successive budgets, addressable market (Nigeria is Af- then the government will be forced but those with inelastic demand maintain the integrity and security “A unique challenge for Muster. will be in good stead. of users on the platform, users can ng is the trust deficit in the Nation. rica’s most populous country) and to borrow more which will drive only communicate through the The most frequently asked ques- has continued to make impressive messaging feature on Muster.ng. tion that our 24-hour customer strides, recording a week-on-week We overwhelmingly advise users support team gets is, “I want to surge across measurable metrics. Nigerian students, business people... to keep the conversations on the share but how secured will I be in In December, the Cross River Continued from page 2 be put on hold as a result of this platform and not share phone the property with someone I meet State Ministry of Culture & Tour- development. “I have fulfilled almost ev- numbers or email address till they on Muster.ng”. So whilst people are ism announced Muster as the The travel expert further won- erything needed to process my are “Mustered.” Muster.ng charges open to sharing, they want to be Official Accommodation Partner dered how those with serious admission into the Massachusetts for initiating new conversations. assured that they will have a good for the 2018 Calabar Carnival, health challenges who had been Institute of Technology in Boston There’s a 11% service fee that’s living experience. enabling people in Cross River to referred to hospitals abroad would except my visa. I had been sched- charged on the rent of every room “To address this, we get KYC earn money on the spare rooms in cope with the situation. uled to attend a visa interview on Muster. Seven percent of that documents from every sharer that their houses. BusinessDay’s checks show early next month. However, with fee is paid by the renter and 4% is creates an account on muster. Muster was founded on a belief that some Nigerians who had this recent development, I do not paid by the host (room owner)” ng and use that for background in the possibility of a world with- applied for visas in October 2018 know what to do, especially as How is Muster.ng different checks. We will also keep in contact out homelessness where every were yet to get appointments and school resumes soon,” a graduate other online house hunting plat- with sharers to find out how they young person has access to af- those who had gotten will now be of University of Ibadan, who gave forms you ask? Ibrahim Babalola are getting on. In the unlikely event fordable housing and “The plan is delayed as a result of the indefinite his name simply as Chike, told puts it rightly: that a sharer wants to move out, all to do for African megacities, what shutdown. BusinessDay. “Muster.ng is tailored to a niche the person needs to do is put the AirBnB did for hospitality.” The executive arm of govern- A travel expert who craved market. The reason why the prop- property back up on muster.ng. The company is backed by local ment and the legislative arm have anonymity told BusinessDay that erties on those other platforms Nonetheless, we also have tips on and US investors, with support from been at loggerheads for nearly two the development was not good rarely get rented is that majority of Muster.ng for what to look out for in Amazon Web Services amongst oth- month over President Trump’s for the economy and business them are unaffordable. Muster.ng choosing the perfect sharer”. ers and has been featured on local attempt to build a wall along the and international media. because a lot of businesses would Mexican border. Tuesday 01 January 2019 www.businessday.ng www.facebook.com/businessdayng @businessDayNG @Businessdayng BUSINESS DAY 35 NEWS Dangote Flour re-launches Naira ends year strong helped by CBN, BDCs collaboration Semolina, wheatmeal products between the Central Bank Sterling, N452/N457 and the foreign exchange market. HOPE MOSES-ASHIKE angote Flour Mills tional health. Giving more and ABCON continued to Euro N404/N409.5, respec- The portal has the support of in its desire to put insight into the features of oreign exchange make the naira sovereign in tively. the CBN, commercial banks, tasty meals on the the new products, she said, maintained stability the foreign exchange mar- In Port Harcourt, dollar Economic and Financial tables of Nigeri- ‘Our Dangote Wheatmeal as the local currency ket. The opening market rate buying/selling rates closed Crimes Commission (EFCC), Dans has rolled into the mar- contains 100 per cent wheat ended the year 2018 N360/361 to dollar on the the year were at N359/361; Nigeria Financial Intelligence ket two products, Dangote for 100 per cent nourish- strong against the two-way quote has been sta- Pounds Sterling, N457/N464 Unit, Travelex, over 4,000 Semolina and whole wheat- ment which gives it the ad- FUS dollar, helped by the col- ble. This sustained stability and Euro N405/N408, re- BDC operators among oth- meal. The unveiling of the ditional benefit of being rich laboration between the Cen- made the Bureaux De Change spectively. ers,” he said. two products took place in in fibre for easy digestion.” tral Bank of Nigeria (CBN) (BDCs) to continue to be the In Abuja, dollar buying/ He said the App can now Kano and Ibadan. Adding that delighting and the Bureau De Change potent monetary policy tool selling rates closed last year be downloaded from the Speaking at the unveil- consumers remain the fo- (BDC) operators. of CBN exchange rate man- at N359/360; Pounds Ster- Google Play Store adding ing of both products, execu- cus of the flour miller, she Aminu Gwadabe, presi- agements,” he said. ling, N464/N467 and Euro that being on the Google Play tive director, Dangote Flour said, “Everything we do dent, Association of Bureaux According to Gwadabe, N407/N410 respectively. In puts Niajabdcs.com in front Mills, Halima Aliko Dangote, starts with an understand- De Change Operators of Nige- the market distortions by fo- Kano, dollar buying/selling of people using billions of ac- said the new products come ing of the consumers and ria (ABCON), who disclosed rex speculators, rent seekers, rates for last year were at tive Android devices, in more with ‘a taste to treasure’ as their desires. Here, we en- this to newsmen at the end currency hoarders and frivo- N359/360; Pounds Sterling, than 190 countries and terri- granules are better and forti- gage regularly with the con- of year briefing in Lagos, said lous demand that usually en- N465/N472and Euro N407/ tories around the world. fied with micro granules for sumers, users and potential both the apex bank and AB- dangered naira stability have N411 respectively. Gwadabe said the local superior taste. adopters of our brands to CON worked together in the been successfully checkmat- Gwadabe said that AB- currency stability has also She stated that the two understand and appreciate course of the year to achieve ed. He said it was no longer CON last year created Nai- been achieved in the official products have been forti- their points of view on prod- exchange rate stability, one profitable to attack naira in jabdcs.com, a live rate en- market, where the exchange fied with micronutrients uct needs and aspirations. of the agenda set by the CBN the market. gine room created to provide rate closed the year at N307 to such as Vitamin A, Vitamin This openness has helped in governor, Godwin Emefiele, The foreign exchange uniform rate for all BDCs dollar despite huge campaign B, Niacin, Zinc, Iron, Folic getting good and invaluable at the beginning of his tenure. rates collected across dif- across the country. spendings by political parties. acid and many more, which feedback on product perfor- Gwadabe said the part- ferent markets and re- The Naijabdcs App dis- He disclosed that both makes it beneficial to nutri- mance and improvements.” nership between both institu- leased yesterday by ABCON plays live exchange rates for the CBN and ABCON have tions would continue in the showed that last year’s clos- different currencies against continually ensured that New Year to make the naira ing rates in Lagos were buy- the naira. “It was created by foreign exchange demands Obasanjo urges Nigerians to learn from sovereign in the forex market. ing/selling rates for dollar ABCON to bring about price at the retail end of the mar- late Shagari’s forgiveness spirit, lifestyle “The strategic partnership stood at N358/359.5; Pounds discovery and transparency in ket were met. ormer President “Late Shagari should not Olusegun Obasanjo be mourned, but be cel- has called on Nige- ebrated as a true, honest and rians to imbibe the sincere leader who was a na- Fgood habits of forgiveness, tionalist to the core. Nigerians simplicity and integrity of has lost a gem,” he said, say- late former President Shehu ing, “Shagari is a true friend Shagari. not fair weather friend, his life He made the call on Mon- is embodiment of truths to day when he condoled with celebrate. “If we learn lessons the family of late President from his habits of forgiveness Shagari who died at the age which he taught us, Nigeria of 93 on December 28, at the will be a good country.” National Hospital Abuja. Responding on behalf of Obasanjo, who arrived the family, the late President Shagari’s resident in Sokoto eldest son, Bala Shagari ap- at about 9:50am and was re- preciated Obasanjo for the ceived by Governor Aminu visit and recalled that Oba- Tambuwal of Sokoto State, sanjo assisted his father to described the deceased as an own a house in Abuja. epitome of integrity with deep Meanwhile, the Emir of commitment to Nigeria. Jema’a in Kaduna State, Mu- He recalled that they hammadu Isa, and the Chief both served as Federal Com- Medical Director Usmanu missioners during Yakubu Danfodio University Teach- Gowon regime, noting that ing Hospital Sokoto, Anas L-R: Hassan Gbemisola, managing director, Fatgbems Group; Kabir Gbemisola, chairman; Yomi Kuku, executive director, Search and Groom, and Shamsudeen Gbemisola, executive director, Fatgbems Group, at the presentation of tropy to the the deceased was honest and Sabir, also condoled with the winners of Fatgbems Group Football Competition in Lagos. transparent. Shagari family on Monday. Aviation workers to go on strike over trade dispute Huge debt profile: MFB threatens debtors with EFCC IFEOMA OKEKE tee, NCAA, and chairman, now bossing the people in NUATE, NCAA branch, NCAA, we have told Man- IDRIS UMAR MOMOH, Benin big challenge to the bank; cedure for enforcing repay- ollowing a long made it clear that NCAA agement that we can no Afemai MFB is one of the ment to no avail, which has ranging trade dis- management would be look- longer accept that. orried by its very few successful micro- compelled, as a last resort, pute between the ing for trouble if they do not “We wrote them and told huge debt pro- finance banks in the coun- to take legal and other re- Nigeria Civil Avia- promote the staff of NCAA that within the next three file, the man- try, and, we are very proud covery actions against these Ftion Authority (NCAA) agement of to be able to establish such by the end of this year. weeks if you do not give our customers. These measures and two aviation unions Izebhokun, who said people promotion, we are AfemaiW Microfinance Bank a microfinance bank in our include recourse to EFCC comprising Air Transport the anxiety was so high talking about promotion (AFMB) Limited has threat- community. as non- repayment of bank Services Senior Staff As- while a lot of people had from level 14 to 15 and 16 ened to drag customers to “We have made extra loans which is classified as sociation of Nigeria (ATSS- been highly discouraged in that is senior management the Economic and Financial efforts to support the busi- economic sabotage,” he said. SAN) and National Union the system, said there was cadre, if you don’t promote Crimes Commission (EFCC). nesses and the activities of Akpaibor further added of Air Transport Employees the possibility that the ag- them there will be serious Pius Akpaibor, chairman, people of Uzuaire origin that the management in (NUATE), the unions have grieved workers would pour issues.” board of directors of the fi- or Afemai origin because compliance with the Central vowed to declare a state of out their mind on January 2, He said if the union fails nancial institution, disclosed we believe that this is their Bank of Nigeria (CBN) direc- emergency in the agency by 2019. to curtail this excesses for this at the 23rd annual gen- bank. But unfortunately, tive had set aside the sum of January 2, if their demands Izebhokun said, “Now this senior cadre, it will start eral meeting of the bank that high profile members of N150 million of its profit in for staff promotion are not the Management has so spiralling down to the lower took place at his corporate our community that we the 2017 financial year to re- met. much relegated the staff of cadre, and time may come headquarters at Uzuaire, Et- have supported have failed pay the debts. The unions disclosed NCAA so much so that they when they will be no vacan- sako West Local Government to pay back this money. If He explained that the de- their plans at the weekend will be employing, doing cy for levels 12 and 13. Area of Edo State. they don’t have the means velopment has made it im- in Lagos, claiming that the secondment and transfer of On his own part, Ayo- Akpaibor said about to pay one will appreciate possible for the bank to pay management of NCAA had people from other organi- dele Sofolayan, chairman, 16 high profile debtors of but they have the means to dividend to shareholders. taken them for granted with zations to come and boss ATSSSAN NCAA branch, the bank were leaders and pay and that is why we feel He however, appealed to regards to the issues of pro- us, we have had issues with confirmed that the issue of members of the communi- very bad. the debtors to do everything motion of NCAA staff. people being transferred staff promotion in NCAA is ty, and they owed the bank “They are clear threats possible to repay loans so Speaking on the issue, from NAMA especially, be- already generating a lot of about N150 million. and dangers to our business that the bank will have more Lucky Izebhokun, chair- cause there is no promo- anxiety and that the issue According to Akpaibor, operations. Your bank has fund to disburse to the cus- man, Joint Action Commit- tion in NCAA, you will see has been delayed for long. the huge debt profile is a exhausted the normal pro- tomers. 36 BUSINESS DAY g www. g @ g Tuesday 01 January 2019

The role of security agencies on election day not shutdown. To the contrary, Osun governorship election that deemed to be going against the Speaking at a public forum, Nigeria still uses intimidating was held September 22. These electoral law. This means, even the former Director General of security presence and public personnel included Police Mo- if security personnel are present, Nigerian Institute of Advanced holidays are being declared dur- bile Force, Counter-Terrorism the presiding officer acts as their Legal Studies, Epiphany Azinge, ing elections. Admittedly, this Unit; the Special Protection ‘commanding officer’. a professor, said that the use of notion emanated from years of Unit; the Anti Bomb Squad; According to a police docu- instruments of force to coerce JOSEPH MAURICE OGU military rule in Nigeria where it conventional policemen; the ment detailing the duties of the people against their democratic was almost seen as a norm for Armament Unit, personnel of police during election days, preference is the worst crime huge military presence during the Federal Investigation and made available to BusinessDay, against the rule of law. the junta’s era of unending tran- Intelligence Department, IGP police are to provide security Azinge said, “Another brazen sition programmes. Monitoring, IGP Intelligence of lives and properties, and affront to the concept of the rule As the 2019 elections draw Response teams, the sniffer maintain general peace at the of law is the ignoble role of law closer, people are seriously pay- dogs section and the mounted polling stations during accredi- enforcement agencies to wit, ing attention to the roles of the troop. All these apparatuses of tation, counting and collation police, state security services, rdinarily, Nigeri- security personnel. The cases coercion gave the impression of results. the armed forces in the affairs ans did not have of Ekiti and Osun elections are that something was to go amiss The security agents, particu- of democratic norms and prin- to worry about the always key reference points. during the election. larly the Police, have critical ciples. intimidating pres- In Ekiti state, both All Pro- In a country like Nigeria roles to play to ensure smooth “Law enforcement agencies ence of security gressives Congress (APC) and where elections are still done running of the 2019 elections. continue to be used as veritable Oagencies during elections until People’s Democratic Party (PDP) with bitterness and with a ‘do Having free, fair and credible tools for perpetration of elec- the Ekiti and Osun state elec- accused each other of using se- or die’ mentality, election days elections largely depends on the tion rigging in our polity. It is a tions were held in July 14 and curity personnel to intimidate could be violent. In this regard, roles of the police in the coming notorious fact that has been on September 22 (2018) respec- party members and supporters one could join with the Indepen- elections. The role of the police since independence. However, tively. by giving undue advantage to the dent National Electoral Commis- in championing the rule of law in since 1999, it has now assumed This calls for a re-examination other party. sion (INEC), which has insisted the 2019 electoral process deter- a disturbing dimension. To use of the role of security agencies as In Osun State, the heavy that it needs the presence of se- mines the legitimacy of whoever forces of coercion to undermine general elections approach next presence of the police was curity personnel for the safety of emerges as the president and the wishes of the electorate in year. The heavy presence of se- such that it called to question its staff and ballot materials, and credibility of the police to the an election is simply the high- curity personnel is synonymous the priorities of the police force general peaceful atmosphere public. est form of debasement of the with the era of military juntas in in Nigeria: instituted to fight around polling areas. Instead of allowing itself to be concept of Rule of Law”. Nigeria. crime or to monitor elections. According to the electoral used as a tool to rig elections, the As we match towards 2019 However, the role of security According to reports, the Osun process, the presiding officer of a police has a duty to the Nigerian general elections, the police personnel became a national state election had in presence station is recognised as the chief public to ensure that Nigerian and other security agencies concern after what Nigerians a Deputy Inspector-General of security officer of his station. votes count towards the direc- should adhere strictly to the witnessed during Ekiti and Osun Police, eight Commissioners He/she is empowered to over- tion of the will of the people. rules of engagement, which are elections. of Police and 40,000 person- see the general security of the Participating in electoral fraud to promote peace and security of In advanced democracies nel. The Police hierarchy also station. The security personnel to the advantage of a particular the electorate, electoral officers elections are held almost with- dispatched two helicopters, 30 are answerable to the presid- candidate, is a crime against and electoral materials, which out the presence of security armoured personnel carriers ing officer. Only him/her can democracy, which undermines generally promote free, fair and personnel and the economy is and 300 patrol vehicles for the request for the arrest of anyone the voice of the people. legitimate elections. NEWS Healthy environment, job creation potential seen in waste recycling

CHUKA UROKO Limited, “plastic collection in phthalate (PET) bottles which to achieving tangible results healthy environment, recycling Lagos State as of 2015 was at 40 can further be recycled to other along with our partners,” he said. roles, among others. ecycling, which is one percent; 1kilogram of plastic useful products. The stakeholders’ forum, The FBRA vice chairman ex- of the many ways of flakes sells for N187; Lagos gen- Olusuyi, who spoke at the which had the theme, ‘Circular plained further that in a circular disposing waste, has erates about 1,048.7 tons daily two-day 12th National Stake- Economy and Environmental economy, proper waste manage- the potential to cre- and this has economic value of holders’ Forum of the National Governance’, provided a plat- ment, which involves different Rate jobs, wealth and healthy about N71.6 billion annually.” Environmental Standards and form for an in-depth discussion stages, leads to job and wealth environment, environmental Oresanya, who is a former Regulations Enforcement Agency and array of issues focusing creation along the value chain. activists say. managing director of Lagos State (NESREA) in Abuja, explained on the theme as well as critical He pointed out that recent In Nigeria, waste manage- Waste management Agency that FBRA’s participation in the factors in attaining sustainable survey indicates that the volume ment is still not effective due, (LAWMA), says waste manage- summit was in line with its com- development in the national of post-consumer PET waste largely, to inadequate invest- ment in Nigeria needs not just mitment to the Extended Pro- development plan. was over 800,000 tons, requiring ment and lack of capacity. Again, investment but also enlighten- ducer Responsibility (EPR) policy It also enabled stakeholders participation of all stakeholders at local, state and federal govern- ment and awareness creation. of government, to help build a to highlight waste-to-wealth at the different stages to drive a ment levels, institutions that are This is exactly what Food and sustainable healthy environment initiatives, review progress in robust circular economy. specifically established for waste Beverage Recycling Alliance that leads to business growth. the implementation of the EPR “The various roles in waste management are still lacking. (FBRA) has been doing since its “We are looking at the entire programme, strengthen policies management start from waste Unknown to many, wastes are creation a couple of years ago. packaging lifecycle – from how and regulations to enable the separation, collection which our a huge economic resource, es- Adekunle Olusuyi, FBRA vice bottles and cans are designed recycling of food grade packag- partner, RecyclePoints, takes care pecially the plastic waste, which chairman, disclosed recently and made, to how they are re- ing waste materials by estab- of, to separation, transportation, is scattered all over the place. that the alliance has been inten- cycled and repurposed. We want lishing a national standards for shredding at the recycling plants, This has a huge economic value sifying awareness on separation to reduce the waste we generate recycled PET and determine production of other products and and income potential. Accord- of waste and environmental as much as possible, encourage how Producer Responsibility re-use. At these stages, different ing to Ola Oresanya, managing pollution, especially on post- recycling, and our initiatives in Organisations (PRO) can sup- jobs are created, whether directly director, Globetech Remedial consumer polyethylene tere- this regard has been well tailored port waste management for a or indirectly,” Olusuyi said. Tuesday 01 January 2019 www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng BUSINESS DAY 37 FT FINANCIAL TIMES World Business Newspaper Stock market rout in 2018 leaves investors bruised and wary Nervous sentiment after worst annual sell-off since 2008 financial crisis

Emma Dunkley China’s CSI 300 index has lost about a quarter of its value lobal stock mar- after plunging into bear market kets suffered the territory in the first half of 2018, worst annual sell- as the trade tension with the US off in 2018 since took root. The fall marks China the financial crisis, as the worst-performing equity Gleaving investors bruised and market of the year. The sell-off braced for further volatility in comes despite a landmark the coming months. move to include mainland-list- The equity market rout of ed stocks — called A-shares — the past year has been stoked into the flagship MSCI Emerg- by concerns of a slowing global ing Markets index. economy, tightening monetary Elsewhere, sleepy trading policy, and a string of weak- conditions on the last trading er-than-expected corporate day of the year on Monday earnings in the US. Mounting delivered a small lift to mar- geopolitical tensions, from the kets, but 2018 remains on track escalating trade war between to be the worst year for the the US and China to Brexit, benchmark US, London and have also rattled investors and European indices since 2008. weighed heavily on equities. Uncertainty over Britain’s China’s CSI 300 index has lost about a quarter of its value after plunging into bear market territory © AFP The widespread nervous exit from the EU has cast a sentiment has dragged the cloud over sterling and the UK’s to raise rates and as Europe particularly pronounced, in investors must “tread carefully”. FTSE All World index down 12 stock market, with the FTSE 100 ends its post-crisis monetary part because of the strong US “Asian equities in aggregate per cent, representing its worst finishing the year down more stimulus. dollar that has drawn money now trade close to the levels annual performance since the than 12 per cent. Europe has “For the first time in many out of riskier emerging markets, seen during the last period crisis of 2008. not been immune to the weak years, markets are now pricing and as investors take profits when regional markets experi- Although most markets in sentiment, with the Euro Stoxx in pessimism instead of opti- from a stellar run in 2017. enced a downdraft in late 2015 Asia were closed on Monday, 50 index lower by 15 per cent. mism,” said Michael Cembalest, Fund managers at Schroders and early 2016,” said Matthew and Hong Kong’s Hang Seng Investors are bracing for chairman of market and invest- said that although “a tumultu- Dobbs, an Asian equities fund index was up 1.3 per cent, the headwinds in 2019 from geopo- ment strategy at JPMorgan As- ous 2018 has left Asian equities manager at Schroders. “At this region has had a torrid year, litical risks and tighter financial set Management. significantly cheaper and pre- level, they are beginning to of- with China faring the worst. conditions as the US continues The sell-off in Asia has been senting selective opportunities”, fer some value.” US banks to cut London-EU commuting The Federal Reserve versus the markets: who has it wrong? support for staff after Brexit Central bank optimism about the global economy stands in contrast to investor outlook Employees must cover own costs if they want to keep London connections across Europe, Canada and now would be lost by 2020. Sam Fleming and Chris Giles the US. Laura Noonan below the tens of thousands of jobs some had warned would be he message sent by investors Growth could be set to slow “The uncertainties have re- in stormy financial markets is simultaneously in the US, China, Eu- duced investment pace,” said Lau- our big US banks have lost from the City, though banks clear: the global economic ex- rope and Japan next year compared rence Boone, chief economist at warned staff that commut- are prepared to move more people T with this year. the OECD. “This transition is also later, depending on the terms of pansion could be in trouble. But the Fing from London to Euro- Federal Reserve remains optimistic, In the US, where the economy is coming at a time of political risks in Brexit and clients’ reaction. pean cities is “not a long-term publishing strong growth forecasts on course for a 3 per cent expansion many countries and at a time when option” after Brexit and that finan- A person familiar with Mor- for the US and plotting out more in 2018, corporate executives are the normalisation of US monetary cial support for travel and accom- gan Stanley’s plans said the bank interest rate rises. getting nervous. policy is starting to have more sig- modation costs will be withdrawn would offer “short-term support” So are investors right to be wor- A total of 48.6 per cent of US chief nificant impact.” within months of their jobs being for those who wanted to com- ried? World output growth for this financial officers surveyed by Duke Whether the declining confi- transferred. mute “but we want them to live year was projected at a healthy 3.7 University now believe the US will dence in markets accelerates, feed- International banks are plan- in Frankfurt, Paris etc”. Staff would per cent by the IMF in October, but be in recession by the end of 2019, ing into economic outcomes, will ning to move thousands of people be able to commute for longer “if the fund’s outgoing chief econo- and 82 per cent think a recession depend in part on how deftly central from London to Paris, Frankfurt, they’re paying for it”, he added. mist Maurice Obstfeld acknowl- will have started by the end of 2020. banks respond. Dublin and other locations in the A second person said the policy edged more recently that there is Erik Nielsen, chief economist at Stephen King, economic adviser first quarter of 2019 so they can was aligned with EU regulators’ now “some air coming out of the Italy’s UniCredit bank, said he was to HSBC, noted that the Fed was “not continue to service EU clients after desire that the individuals in con- balloon”. picking up signs of anxiety in Europe great at delivering soft landings” in the UK leaves the bloc. trol of large EU entities would be Five advanced economies — as well, as global trade tensions the US economy. “Things have a Daunted by the prospect of fully present in those countries. Japan, Germany, Italy, Sweden damaged companies’ willingness to habit of going wrong, particularly quitting London’s cultural and Financial support for short- and Switzerland — all experienced invest. “I worry more and more every when the economic cycle looks rela- shopping attractions, many bank- term commuters is intended to contractions in the third quarter of day,” he said. tively mature,” he said. According to data compiled by The Fed has lifted rates nine ers, traders and executives had help people who do not want to this year. move their children in the middle While the declines were spurred UniCredit, global trade has slowed times in three years, and is set on a hoped they could keep their fami- sharply, down to 2.25 per cent of the school year, or have other in part by one-off factors, includ- balance sheet reduction programme lies in the UK capital and com- growth compared with a long-term that will contract its asset holdings logistical reasons for not being ing more stringent car emissions mute weekly to wherever their job standards in Europe, together the average of 4.5 per cent. by hundreds of billions of dollars able to move immediately. was moved. economies affected represent a Mr Nielsen is particularly con- next year. “It’s dawning on people that At JPMorgan, these benefits, hefty 15 per cent of world gross cerned by the slowdown in China, This will combine with a waning commuting isn’t a long-term which include smoothing tax dif- domestic product, according to where retail sales grew at the slowest US fiscal stimulus in the second half option,” said one executive at a ferences between two countries, Oxford Economics. pace in 15 years in November and of next year. Mark Zandi of Moody’s large US bank, adding that his col- and housing and travel, would Many economists expect stron- factory output was the weakest in Analytics expects the stimulus from leagues had been told they would typically be phased out six months ger growth in the fourth quarter, but nearly three years. US tax cuts and public spending in- only receive support to commute after an employee transfers, two worries remain significant enough A renewed escalation of the creases to have evaporated entirely for a maximum of six months. people familiar with the plans for Mario Draghi, the president trade battles between the US and by 2020. Morgan Stanley, Goldman said. of the European Central Bank, to Beijing would do further damage to But US inflation is quiescent Sachs, Citigroup, JPMorgan and Citi is taking a tougher line; speak of “downside risks” to the growth and investment in China and despite unemployment hovering Bank of America — which are set one person with knowledge of eurozone at this month’s monetary elsewhere. at half-century lows, meaning that to relocate up to several hundred the bank’s planning said there policy meeting. The IMF estimates that, if all of the Fed can afford to be patient with staff each in the first phase of would be no commuting support Leading indicators have turned the tariffs threatened to date were policy — and that is a message the Brexit — all declined to comment. downwards, with the OECD this actually imposed, as much as three- central bank is likely to hammer The numbers moving are well Continues on page 38 month noting “easing momentum” quarters of 1 per cent of global GDP home in the coming weeks. 38 BUSINESS DAY www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Tuesday 01 January 2019 FT NATIONAL NEWS US banks to cut London-EU commuting support... Tokyo court extends Carlos Ghosn’s Continued from page 37 detention again for the 63 people who are due to move in the first quarter, though Former Nissan chairman to remain they would receive the standard in jail until at least January 11 relocation package to cover the cost of moving their belongings Leo Lewis and setting up home. arlos Ghosn will spend at At Goldman, executives want least 10 more days impris- staff who are moving to under- Coned and under interroga- stand that once they go “they’re tion without the presence of his gone for good” and not on a tem- lawyers after a Tokyo court ap- porary or commuter assignment, proved a further extension of his one person familiar with the plans detention. said. To that end, commuter sup- The former Nissan chairman ports would be limited. A second and current Renault chief execu- tive will now be detained until at person said Goldman’s plans were From left, Adam Schiff, Jerrold Nadler and Elijah Cummings are likely to press the Trump administration on a range of issues © Reuters/Getty still “in flux”. least January 11, and could remain behind bars even longer if prosecu- A person familiar with Bank of tors re-arrest him a second time. America’s plans said the bank had The US Democrats preparing to wield power in the House Monday’s extension, which was not decided to discourage com- New committee chairs poised to have a big impact on Trump’s remaining time in office largely a routine decision by the muting. BofA has already moved court, was requested ahead of the House Judiciary Committee, Mr 100 staff from London to Dublin Courtney Weaver Mr Cummings plans to investigate January 1 deadline — which is a for its main EU banking entity. It is Nadler, a 71-year-old trained lawyer whether certain Trump administra- national holiday — by prosecutors and life-long politician, will have also moving traders to Paris. tion officials used government ser- who are investigating allegations of n January 3 Democrats will the power to launch impeachment vices and personnel for non-official financial misconduct by Mr Ghosn. officially take control of the proceedings against Mr Trump. business. He will also probe cabinet US House of Representa- So far, Mr Nadler has given little members’ travel spending habits; and The extension of Mr Ghosn’s O detention came as Nissan has wid- tives, giving them authority over hint over whether the committee is whether any officials, including Mr Life continental beer the chamber’s committees and the considering looking at impeachment Trump’s daughter, Ivanka, have used ened its own internal investigation power of subpoena — a new tool articles, insisting that the discussion personal email accounts to conduct into his financial affairs. The probe, ends year with a bang in their quest to take on Donald is premature. That could change, official business. say people familiar with the details, Trump. however, in the coming months. In He also plans to look into the is now examining Mr Ghosn’s ife Lager is ending the year The new Democratic committee the meantime, Mr Nadler has said Trump Organization’s business deal- dealings with business associ- with a bang following its suc- chairs are likely to press the Trump he will focus on immigration — drill- ings and how much business has ates in India, the Middle East and cessful yuletide festivities in administration on issues ranging ing down into the administration’s come in from foreign governments to Latin America and could provide L from the personal behaviour of ad- Owerri on the 28 December, after policy of separating families that Trump hotels and properties since the prosecutors with fresh lines of successfully hosting the “Bridge ministration officials, to the actions arrive illegally in the US and taking president took office. Like Mr Nadler, investigation in coming months. of Progress” party in Ekwulobia, of the president — both during his a tough questioning line against Mr Cummings has been concerned Mr Ghosn was first arrested on Anambra state. time in office and before. Ultimately, Kirstjen Nielsen, the Department of about the family separation policy, November 19 over his alleged role Headlining the Ekwulobia the Democratic-controlled House Homeland Security secretary. Expect and said he would demand further de- in submitting financial statements could have the power to impeach edition of the party was Life Beer him to also keep a close eye on Robert tails from government agencies about that understated the true scale of Mr Trump, a path many in the party Mueller’s special counsel investiga- the remaining separated children. his salary at Nissan — charges that ambassador, Phyno who thrilled would prefer not to take at the mo- tion, particularly with regards to For the past two years, Adam Schiff have also been brought against the audience with his signature ment, but one that exists within the the Justice Department and its new has railed against his Republican Greg Kelly, Mr Ghosn’s close aide, indigenous rap verses. Also per- realm of possibility. acting attorney-general, Matthew colleagues on the House Intelligence and which the Japanese company forming on the night were the Below are the three incom- Whitaker. Committee, alleging that they had likes of Obiligbo Brothers, HiLife ing Democratic House committee A 67-year-old lawyer from Balti- worked in co-ordination with the itself will also face. Fest King 2018, Dons Ifeanyi, and chairs who are likely to have the more, Elijah Cummings has served White House to prevent a real con- After more than 20 days in Indigenous upcoming acts. biggest impact on the White House in the House of Representatives for gressional investigation into Rus- detention and a court ruling Flavour was on ground to grace and the president’s future in office. more than two decades as a member, sian interference in the presidential that his arrest on suspicion of the stage at Owerri with less than A Democratic congressman and former chair, of the Congressional 2016 election and any possible links violating securities law could 72 hours between both parties, representing Manhattan’s West Side, Black Caucus. In January, Mr Cum- between Mr Trump and Moscow. not be extended further on the consumers in the East are loving Jerrold Nadler has been a foe of the mings will take over as chair of the In January, Mr Schiff will have the original charges, Mr Ghosn was every bit of the non-stop enter- president’s since the 1980s and 1990s House Oversight Committee. authority to drive the investigation, as re-arrested on new allegations tainment being provided by Life when the two locked horns over the In the run-up to his appointment, the committee’s new chair. of aggravated breach of trust. The beer. then-property developer’s plans for the longtime congressman has sent It is a big moment for him. A back-to-back arrests and seem- Omotunde Adenusi, the portfo- multiple high-rise buildings in Mr dozens of letters to government agen- 58-year-old Harvard-educated ingly indefinite period of detention lio manager, mainstream brands, Nadler’s congressional district. While cies, officials, as well as the Trump prosecutor, Mr Schiff has served in available to prosecutors have spot- Nigerian Breweries Plc, said since Mr Trump prevailed back then, this Organization, asking for more details Congress since 2001, representing lighted a tactic that, while standard its emergence in the local market, time Mr Nadler has the upper hand. on a number controversies that have the California district just north of practice in Japan, has attracted As the incoming chairman of the Life Continental Beer has taken dogged the administration. Los Angeles. both domestic and international pride in being firmly rooted in the criticism. culture and tradition of the Igbo Angela Merkel vows more German international ‘responsibility’ Mr Kelly was released on bail on people. “We at Life Beer have had Christmas Day after five weeks in a very strong connection with our Chancellor takes on Trump isolationism in New Year message with focus on co-operation detention, and said in a statement consumers in Anambra, Owerri that he believed he would be found Germany would fight to make the EU these issues and we can only do that and other parts of Eastern Nigeria. Guy Chazan innocent in court. We wanted to celebrate the year’s more robust and would also strive when we take into account the inter- The breach of trust investiga- for a “close partnership” with the UK, end with our ever loyal consumers ests of others,” she said. tion is looking at two strands of ngela Merkel promised that even after it leaves the EU. Ms Merkel acknowledged that and also give them a taste of the Germany would “take on more allegations: the transfer to Nissan Germany emerged this year as 2018 had been an “extremely difficult of a derivatives contract struck things to expect from Life Beer in Aresponsibility” internationally Mr Trump’s favourite punch bag, fre- year politically”. It had taken nearly six between Mr Ghosn’s personal as- the New Year,” said Adenusi. in 2019, after a year in which Donald quently coming under attack over its months to form a government, fol- After an eventful year that has Trump’s vocal demands that Berlin large current account surplus with the lowing inconclusive elections to the set management company and seen the beer brand engage in two spend more on defence have badly US, its relatively low defence spend- Bundestag in 2017, and her “grand Shinsei Bank; and the background remarkable initiatives; the HiLife strained US-German relations. ing and its support for a gas pipeline coalition” with the Social Democrats to a series of $14.7m in payments to fest and Life Progress booster, Life In her New Year’s address, the that Washington says will increase had been plagued by infighting. “We Khaled al-Juffali, a prominent Saudi Continental appears to be pulling chancellor said, without mentioning Europe’s dependence on Russian argued a lot and were too preoccupied businessman, that were made after no stops in giving its consumers an Mr Trump by name, that old certain- energy exports. with ourselves,” she said. that person provided Mr Ghosn with exciting festive season celebration. ties on the importance of international Germany, whose export success After a dismal performance by letters of credit. After the party in Owerri, Life co-operation had “come under pres- has been built on open borders and her conservative bloc in two regional A person familiar with Mr Ghosn will also be sponsoring the Flavour s u r e ”. free trade, has also observed Mr elections in the autumn, Ms Merkel and his family said they did not be- of Africa concert as the beer brand “In such a situation, we must once Trump’s embrace of protectionist shocked the nation by announcing lieve there was anything suspicious again stand up, argue and fight for our “America First” trade policies with she was standing down as leader of or incriminating about the alleged seeks to end the year in style. convictions — more than we have in “Bridge of Progress” party, Ow- increasing alarm. the Christian Democratic Union, a payments to Mr Juffali. the past,” she said. “And we must — But in her address, Ms Merkel party she has led for 18 years. Mr Ghosn’s lawyers could not erri edition, was held at Shoprite, in our own interests — take on more stressed her continued commitment That triggered a succession race immediately be reached for com- featuring acts like HiLife Fest King responsibility.” 2017, Chibest David and others. to the kind of multilateralism now that pitted the CDU’s secretary-gen- ment but according to a person She said Germany would take up scorned by the White House, saying Life Continental Lager Beer is eral Annegret Kramp-Karrenbauer, a familiar with Mr Ghosn’s legal de- a temporary seat on the UN Security only international co-operation could moderate who was widely seen as Ms the fine quality lager beer from the Council in 2019, and also increase its fence, he maintains his innocence solve the global problems of climate Merkel’s favoured successor, against on both the charges related to the stables of Nigerian Breweries Plc., spending on humanitarian aid and change, migration and international two conservatives, Friedrich Merz, understatement of pay and to the made from the choicest grains, defence. terrorism. an old rival of Ms Merkel, and Jens allegations of breach of trust. hops and the purest of waters. In addition, the chancellor said “It’s in our own interests to resolve Spahn, the federal health minister. Tuesday 01 January 2019 C002D5556 BUSINESS DAY 29 BUSINESS DAY NEWS YOU CAN TRUST I TUESDAY 01 JANUARY 2019 www.businessday.ng facebook.com/businessdayng @Businessdayng @Businessdayng INSIGHT/INNOVATION PROPHYLAXIS Should we be happy about 2018?

we be happy? Despite all that has been said, in our typical I read a report published by The World resilience and happy go lucky nature, Nigeri- Poverty Clock as at June 2018 that shows Ni- ans look forward to 2019 with new hope and geria has overtaken India as the country with Whilst I wish us all a renewed vigour. As a people who never give the most extreme poor people in the world. ‘ up and as a deeply religious people we always India has a population seven times larger than happy new year, I must say look to God in faith that tomorrow will be better. Nigeria’s but has 71 million people living in ex- that 2019 is a defining mo- Nigerians often say that God loves Nigeria and treme poverty. Nigeria according to this report we believe it firmly. It is not all dark and gloomy now has 86.9 Million people living in extreme ment for Nigeria and the and some good things happened in Nigeria in poverty. Should we be happy? pen is actually held by the year 2018 that should help to renew our hope. The Nigerian Bureau of Statistics shows that One of them and perhaps the most important AYULI JEMIDE our unemployment data (whether by new en- 84,271,832 Nigerians who is the civic consciousness that as enveloped Ni- trants in the job marketor existing unemployed gerians in 2018. People are now more than ever Ayuli Jemide is Founder and Lead Partner of persons) headed south in 2018. The country’s hold their voters card. interested in the 2019 elections. How do I know Detail Commercial Solicitors. An entrepre- unemployment rate worsened in the third These citizens are the ones this? We currently have 84,271,832 Nigerians neur, public speaker and writer. quarter of 2018 (Q3,2018), rising from 18.8 per registered to cast their votes in the upcoming Email: [email protected] cent in Q3 2017 to 23.1 per cent in the third ready to write or rewrite 2019 general elections. This is 14,551,482 more Twitter: @JemideAyuli quarter of 2018. Should we be happy? our history as a country. I registered voters from the total of 67,422,005 in 2018 brought news of a fair number of 2015. In 2015 there were 14 Presidential candi- suicides. Some reports state that as at June urge everyone to come out dates, in 2018 October INEC announced that 79 2018 there were 80 suicides for the 12 months and vote Presidential candidates filed their papers for s 2018 closed its curtains and 2019 preceding. World Health Organization has the 2019 elections. In my view, 79 Presidential opened what we hope will be new placed Nigeria as 15th highest suicide rate in candidates shows the audacity of hope that beginnings in many ways, it is typical , the world. Should we be happy? Nigerians are known for. Interestingly, some for people to look at the events of 2018 Displaced population tracked by DTM in this shows that cost of living has grown higher of the candidates are in their 30’s and 40’s, and andA ask if there is reason to be happy. We ask Nigeria shows that 1,702,680 were displaced month on month in 2018. Should we be happy? that increases the audacity. ourselves if 2018 was a good year! As a nation it as of December 2017. The same Displaced Quartz Africa produced a report that shows Whilst I wish us all a happy new year, I must also behooves us to do the same and this is my population tracked as at October 2018 shows that in 2016 about 1500 Nigerians sought asy- say that 2019 is a defining moment for Nigeri- own little contribution to that process. that the figure is now 2,026,602. This means lum in Canada based on alleged persecution. aand the pen is actually held by the 84,271,832 On the 2nd of December 2018 I read an in 10 months Nigerian displaced population By the end of 2017 this number has increased Nigerians who hold their voters card. These citi- article published by the Vanguard Newspapers increased by 323922 – approximately 32,000 to over 5000. Interestingly, around 60% of Ni- zens are the ones ready to write or rewrite our written by Clifford Ndujihe titled ‘’Nigeria’s per month. Should we be happy? gerians seeking asylum claimed to be bisexual history as a country. I urge everyone to come killing fields’’ where the author tried to track According to TradingEconomic.com, the and persecuted on the basis of their sexual out and vote – voting is a very simple process the number of reported deaths caused by Boko Nigerian Consumer Price Index (CPI) moved orientation. By 2018, the Canadian Govern- that has far reaching consequences. Voting is Haram insurgency, herdsmen and farmers’ from 246.4 in January 2018 to 272.6 Index ment is working on how to reduce the number not optional, it is a civic responsibility. Many clashes, cult clashes, sectarian and communal Points as at November 2018. In Nigeria, the of Nigerian illegal immigrants into Canada. things in life you cannot control, however the clashes, kidnapping, ritual killings, and armed Consumer Price Index or CPI measures chang- Canada believes that most of them get US visa voting system allows you to control who rules robbery and the toll came to 6,562 deaths in 11 es in the prices paid by consumers for a basket and then head to Quebec through a forest trail and governs you for the next 4 years. I urge you months ( January to November 2018). Should of goods and services on a periodic basis. So, from New York. Should we be happy? not to take this responsibility lightly! 2019 budget: concerns, nuts and bolts fest in sub-optimal implementation of the capital Besides the concern which the delayed budget gressively reduce deficit and borrowings over the component. For instance, by the President’s own process raises, there are equally other weighty medium term”. For the 2019 budget not to run into admission, capital releases with respect to the issues. The 2019 budget is predicated on a bench- a major hitch, it is important that, as much as pos- 2018 budget only commenced after the signing mark oil price of US$60 per barrel, oil production sible, all claims on public financial resources are of the 2018 budget on 20th June 2018 and ‘’of the estimate of 2.3 million barrels per day and an identified and reconciled within the framework of total appropriation of N9.12 trillion, only N4.59 exchange rate of N305 to one US dollar. Based on the budget possibly incorporating tax proposals to trillion had been spent by 30th September 2018 these assumptions, total revenue of N6.97 trillion fund such claims in the event that the oil revenue against the prorated expenditure target of N6.84 is projected to fund aggregate expenditure of projections do not materialize. It should equally trillion’’. This adverse variance fell more on capi- N8.83 trillion. The oil price benchmark, seen as entail obtaining approvals for the plan to borrow tal spending in view of the fact that debt service too optimistic, is a source of worry. The President N1.649 trillion for the purpose of financing the and the implementation of non-debt recurrent had justified this by stating that ‘’notwithstanding budget deficit. This is vital in the light of the 2018 UCHE UWALEKE expenditure notably payment of workers’ salaries the recent softening in international oil prices, the budget experience where the implementation of and pensions were largely met. It is not an accident considered view of most reputable analysts is that the capital component of the budget did not com- Uche Uwaleke of Nasarawa State Uni- that annual budget performances were a lot bet- the downward trend in oil prices in recent months mence nearly two months after the signing of the versity Keffi is Nigeria’s first Professor of ter when the country ran a predictable January to is not necessarily reflective of the outlook for 2019’’. Appropriation Bill by the President chiefly because Capital Market and the President of the December financial year. Much as the federal gov- It will be recalled however, that the sudden col- the government’s borrowing plan did not receive Association of Capital Market Academics ernment’s budget represents less than 10 per cent lapse of oil price in 2014 caught many reputable timely approval by the National Assembly. of aggregate expenditures in the economy, it has a energy analysts gaping. Therefore, it is important The budget breakdown is meant to provide of Nigeria very significant accelerator effect on the financial to approach the oil revenue projection with cau- the nuts and bolts that will facilitate budget im- plans of sub-national governments including the tion bearing in mind that the international crude plementation and control. With respect to capital egarding the 2019 budget proposals private sector. It goes without saying therefore that oil market is highly volatile. As a corollary, the spending, the breakdown lists some projects as recently presented by President Muham- the present slow pace of economic growth is due, 2019 budget appears to lean more on oil revenue ‘’ongoing’’ but fails to state the completion targets madu Buhari to a joint session of the Na- in part, to avoidable delays in the budget process. projected at N3.73 trillion than non-oil revenue es- expected in 2019. For example, under ‘Transport’, tional Assembly, a major concern stems timated at N1.39 trillion. This leaves the economy it says N80.22 billion counterpart funding has Rfrom the fact that it is already running behind vulnerable to external shocks and poses a major been provisioned for railway projects including schedule. Given the preoccupation of the Law- budget risk. ‘’Lagos-Kano (ongoing), Calabar-Lagos (ongoing), makers with political activities, it is unlikely that To see the shortcomings in this Further, there is the concern that the 2019 Ajaokuta-Itakpe-Aladja (Warri) (ongoing)’’ while the proposals will receive urgent attention despite budget will most likely witness a high level of N13 billion has been earmarked for construction of ‘ off-budget funds masking the true picture of second run-way at Nnamdi Azikiwe International the President’s plea to members of the National presentation, these same pro- Assembly to ‘’commit to an early passage of this jects also featured in the 2018 government fiscal position. Although recurrent Airport Abuja. budget in the larger interest of our people and (non-debt) spending of N4.72 trillion has made To see the shortcomings in this presentation, the national economy’’. This would not be the first budget breakdown where a provision for the implementation of a new mini- these same projects also featured in the 2018 time. Tabling the 2018 budget proposals to a joint mum wage, it is doubtful if this amount will be suf- budget breakdown where a provision of N162 session of the National Assembly on 7th November provision of N162 billion coun- ficient to accommodate the attendant bail-outs to billion counterpart funding was made. Even the state governments by the federal government in PortHarcourt-Maiduguri railway listed as a ‘new’ 2017, the President had also appealed for a swift terpart funding was made. Even passage of the Appropriation Bill. Unfortunately, it support of the implementation of not only the new project in 2018 budget is also appearing as ‘new’ was not passed until 16th May 2018, seven months the PortHarcourt-Maiduguri national wage floor but also agreements with vari- in the 2019 budget. This sort of narrative does not after it was submitted for legislative review. ous labour unions including those of Universities allow for a correct assessment of progress made In recent times, the performance of the capital railway listed as a ‘new’ project and Polytechnics given the paltry balance in the in the execution of these projects. The same pres- Excess Crude account. Not a few also think that entation flaw is observed with respect to projects component of annual budgets has been severely in 2018 budget is also appearing constrained due to several factors ranging from the conduct of the general elections in 2019 and listed under ‘works’ in the 2019 budget where shortfall in expected revenue to cumbersome as ‘new’ in the 2019 budget the oil subsidy regime (in respect of which US$1 about N280 billion is meant for the construction procurement process. These challenges were ag- billion has been earmarked as under-recovery and rehabilitation of roads including counterpart gravated by late passage of Appropriation Bills into by the NNPC) represent a source of off-budget funding for the dualization of Makurdi-Enugu law. The negative effect of late passage of the 2019 spending in 2019. These potential off budget road, Akwanga–Jos-Bauchi-Gombe road among budget will, like the previous budget cycles, mani- funds will undermine government’s plan to ‘’pro- others. , Continues online: @www.businessday.ng

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