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news you can trust I **wednesDAY 09 may 2018 I vol. 15, no 50 I N300 @ g Oil volatility FG codeine ban, seen as Trump Emzor Pharma withdraws US from closure a knee jerk Iran nuclear deal response – experts DIPO OLADEHINDE, with agency reports … Open season for smuggling and black-market operations ANTHONIA OBOKOH he recent ban on codeine- containing cough syrup Tby the Federal Govern- ment, shutting down Emzor Pharmaceuticals Ind. Ltd., Peace Standard Pharmaceutical Lim- n what marked the most ited and Bioraj Pharmaceutical significant foreign policy Limited is a knee jerk response Imove of his presidency, US to the drug abuse problem ex- President Donald Trump has perts have said. announced the pulling out of the The ban is echoing in the pub- Iran nuclear deal saying he will lic space over the drastic mea- reinstate economic sanctions on sure. Experts want a more logical the Islamic Republic. and comprehensive policy to “If I allowed this deal to stand, Continues on page 38 Continues on page 38 Retraction esterday, we carried a lead story titled ‘Solvency ratio Frequent health travels raise questions Yof 5 insurers below regu- latory threshold. The solvency ratio is a measure of the risk an insurer faces of claims that it Continues on page 38 over Buhari fitness for office Noah’s Ark emerges Political risk, economic uncertainty heighten

Africa’s Ad Agency of Chris Akor & Iniobong Iwok are now questioning his fitness really are. The cloud of uncer- 2015, President Buhari medical to remain in office, his decision tainty over the president’s health trips to the United Kingdom has the Year P. 4 resident Buhari’s to stand for re-election in 2019, puts a cost on both political and become routine. frequent trips to the and the wider implication for business decisions. We are all in On June 6, 2016, Buhari took United Kingdom for effective governance in a chal- dark and that comes at a signifi- ten days leave to go treat an ear Ambode calls for medical treatment is lenging economy. cant cost to the economy,” said infection in London, the United restructuring to rescue raising the country’s “No one is sure of what illness a banker who did not want his Kingdom. In January 2017, he Ppolitical risk and economic the president is suffering from. name mentioned. P. 3 9 uncertainty as economic agents No one is sure how bad things Since coming to power in Continues on page 4 2 Wednesday 09 May 2018 Wednesday 09 May 2018 BUSINESS DAY 3 4 BUSINESS DAY C002D5556 Wednesday 09 May 2018 NEWS Noah’s Ark emerges Africa’s Azura will only add to Nigeria’s Ad Agency of the Year Daniel Obi mitment of the Agency’s team to stranded power challenge – Fashola the 5C’s core values of the Agency igerian creative agencies -Curiosity, Courage, Candour, Ca- are stepping up their maraderie and Compassion. Olusola Bello We need more capital invested is an already existing template on the distribution and trans- that they could work with. game in the global adver- “Indeed, this is a very big ac- mission side of the business, Fashola said the government tising market dominated colade for us as an Agency espe- he expected addition byN Western countries as foremost cially winning against some of so that we can make the whole is doing everything possible to of 459MW of electric- creative advertising agency, Noah’s the biggest Agencies out of Africa ity to the national grid business venture worth the remove transmission bottle- while. If people are producing necks that the country is facing Ark Communications Limited, has including , Morocco from the Azura Power once again proved its mettle in and . This is also like an icing Project will only com- what people cannot sell, then the just as it is also working to see business will struggle.” the problems of distribution is the industry by emerging Africa’s on the cake coming after a back to plicateT the country’s current Agency of the Year at the 2018 back Grand Prix win at the LAIF Despite the success achieved resolved. challenge with stranded power, African Cristal Awards held in Mar- Award,” he said. according to Nigeria’s Minister in delivering the 459MW Azura But industry experts have power project ahead of sched- suggested that what the coun- rakesh, Morocco. Also speaking on the feat of Power Works and Housing Noah’s Ark edged other Adver- achieved by the Agency, the Execu- . ule, the prospect of replicating try needs is sweeping market the model to expand Nigeria’s reforms in the power sector to tising power houses across Africa tive Creative Director, Noah’s Ark Stranded power is generated to win the most coveted accolade Communications Limited, Abolaji power that cannot be distributed. power generation capacity sig- give the electricity industry a nificantly is slim. much-needed face lift. Agency of The Year ranking. Alausa noted that Noah’s Ark is the “Azura would start commer- To lead the ranking as the Agen- first black African Agency to be cial operations sometime in Fashola said that the country They said efforts should be would have to wait a while in or- made to fix the fundamentals cy of the Year at the 2018 edition of named Agency of the year in the June, that is 459MW that would the prestigious award, Noah’s Ark history of the African Cristal Festival. be added to the 2000MW of the der to experience another large of the electricity market so that power project like Azura. This is every megawatt that is generated won a total of 10 medals including Alausa said “To be declared already stranded power in the the Festival Grand Prix (The Grand African Cristal Festival Agency system. In addition to this, Afam because of the challenges that has value by fixing a market- the country is facing in expand- determined tariff, enough to pay Cristal) for ‘Prayer Warrior’ TVC Ad of the Year is no small feat con- is coming with 240MW,” Fashola for Airtel, another Grand Prix in the sidering the fact that at that level told the media while on a visit to ing its transmission and distribu- for power and gas. tion capacity, which is needed to They note that without the African Culture category, 3 Gold, 2 you compete against the best of yesterday to commis- Silver and 3 bronze medals. Agencies across the continent, the sion a transmission substation. evacuate generated power. needed market reforms, Africa’s The early completion of Azura largest economy will continue to Other campaigns that won achievement is not for Noah’s Ark He disclosed that despite the laurels for the agency include; alone, it is indeed for the Nigerian fact the country currently has a had raised hopes that the model build idle power plants. could be replicated to expand Edu Okeke, deputy managing Ruth, a short film, Monitoring Advertising industry” capacity to transmit 7000MW, spirit (Whatchu doing??) for Airtel, The African Cristal Festival is the distribution companies can the country power’s genera- director of Azura Power, who tion capacity which is stuck at spoke to BusinessDay for an Pure Love Challenge for Hypo, an award designed to reward the only absorb 5,000MW leaving a Peak Unstoppables for Friesland best advertising campaigns created balance of 2000MW of electricity 12,000MW nameplate capac- earlier story had noted that one ity even though just about one of the ways Nigeria can build Campina WAMCO, Whatever and broadcasted over the African that is lost. Works Out-Fitness Challenge for continent on any media. “Unfortunately you can’t fourth of that gets to homes more viable projects like Azura, and businesses. Self-generated is that it should be private sector- Three Crowns Milk. The objective of the festival is store power, what is generated Speaking on the award, the Man- to promote the African advertising is lost down the line,” he said. power remains the biggest cost driven. item on the books of many busi- If government insists on driv- aging Director/Chief Creative Of- creativity and showcase a variety What the country needs, he ficer, Noah’s Ark Communications of international and regional work said, is more capacity in the im- nesses in the country, and acts as ing the electricity market, it must one of the biggest hindrances to fully take the responsibility of Limited, Lanre Adisa described the from the industry through the mediate term in the distribution feat as a very bold step forward for meeting of agencies and advertis- and transmission sides of the innovation. financing the projects, he said. Fashola stated that transmis- “What Azura project has done the Agency towards the actualiza- ers in a mixed jury. power value chain. tion of its dream to put Nigeria on The event afforded partici- “So in my view, where in- sion and distribution remain the is to create a template that both biggest inhibitor for investors in local and international lenders the global map of Advertising. pants the opportunity of meeting vestment should go now is into Adisa attributed the achieve- decision-makers who gave them distribution and transmission. developing large projects like can look at and say it is good Azura despite the fact that there enough for them to key into.” ment to the immense support of valuable insights on the African the Clients and the strong com- creativity market. Frequent health travels raise questions over... Continued from page 1 course of the technical stop-over for spent another 50 days in London aircraft maintenance in London on undergoing what his handlers de- his way back from Washington last scribed as “routine medical check- week, the President had a meeting ups,” but which the president, on with his doctor [and] the doctor his return, confessed to be full requested the President to return blown treatment and that he had for a meeting which he agreed to do. never been so sick all his life. The president has since embarked He remained in the country for on the four-day medical trip to the three months, during which time United Kingdom. he hardly stepped out, postponed “It really is a reproach on Ni- and missed several weekly Fed- geria that our president is peren- eral Executive Council meetings, nially in and out of hospital in a and his handlers declared that foreign country, and none of us following the doctor’s prescrip- (Nigerians) know what illness or tion, Buhari will work from home, illnesses afflicts him,” Opeyemi triggering speculation about the Agbaje, political economist and severity of his condition. CEO of RTC Advisory Services Ltd, He eventually returned to the said via phone. UK on May 7 and spent another “It questions our status as a 104 days still tending to his health. democracy in which leaders are Although, he returned to the accountable to the people. And of course, it has political and eco- country last year August in much (m), governor, State, with Oluwatoyin Ogundipe (r), vice chancellor, improved health, there has been nomic costs as it increases uncer- tainty and perceptions of risks.” (UNILAG), and Taiwo Folasade Ipaye, registrar, during the UNILAG 2017 convocation lecture and investiture of speculation that he often punctu- the 12th vice chancellor at J.F Ade Ajayi Auditorium, , Lagos, yesterday. ates his foreign travels with secret Clement Nwankwo, executive visits to see his doctors in the UK director of the Policy and Legal since then. Advocacy Centre, says the presi- In January, former president to Sotola is the public perception shade, said it was obvious that the Last month, the President trav- dent “really needs to take a break Obasanjo, in a strongly-worded that “governance is suffering”. All Progressive Congress, (APC) elled a week earlier for the 25th Com- and attend to his health. For a lot of letter, urged Buhari to honour- Tolani Animasheun, a member Buhari-led administration has monwealth Heads of Government people who are asking the question ably “dismount the horse” and go of the main opposition Peoples failed Nigerians, noting that the fre- Meetings. Also, on his way back from whether he is healthy enough to tend to his failing health in peace. Democratic Party (PDP) berated quent medical trips abroad by the his trip to the United States where run for re-election, this trip further Ex-military president, Ibrahim the president for his constant president did not make any sense he held talks with President Donald reinforces those concerns.” Babangida agreed with Obasanjo, medical trips abroad even at a time in the prevailing circumstances. Trump, Buhari, according his media President Buhari has come saying Nigeria needs a new breed when medical workers were on “I think there is a general con- handlers, made a technical stopover under intense criticism lately for of leaders that are quick and smart strike in the country. cern about the performance of the in London to “refuel and carry out his lethargic style of and and can better handle the complex “The president embarked on Buhari administration.” routine checks.” inability to revamp the economy challenges facing the country. medical trip when medical work- He says the impression is being But the presidency later ac- and prevent or adequately respond Olusegun Sotola, Senior re- ers are on strike [for more than a created that President is not in control knowledged, for the first time, that to the several security crises in searcher at the Lagos-based Ini- month] in the country. Is this how of his government, considering his Buhari actually met his doctor who the country including the killings tiative for Public Policy, says: “The a president is supposed to leave the frequent trips to take care of his health. asked him to return to London for by alleged Fulani herdsmen and president’s health woes will ulti- country when his people cannot Buhari is expected back in the further treatment. bandits over most parts of the mately affect his ability to cam- access medical treatment?” country on May 12 and then pro- As Garba Shehu, the President’s north-central and north-western paign.” Also speaking, a social com- ceed on an official two-day visit to spokesman, explained: “In the states of the country. Much more important however mentator and critic, Femi Abori- Jigawa state. Wednesday 09 May 2018 BUSINESS DAY 5 6 BUSINESS DAY Wednesday 09 May 2018 Wednesday 09 May 2018 BUSINESS DAY 7 8 BUSINESS DAY Wednesday 09 May 2018 Wednesday 09 May 2018 C002D5556 BUSINESS DAY 9 10 BUSINESS DAY C002D5556 Wednesday 09 May 2018 comment is free COMMENT Send 800word comments to [email protected] SMALL BUSINESS HANDBOOK Middle income trap, coordination failure and rising poverty in Nigeria

ject as our father scalling for unity The subjugation of national seems to kill the zeal for research. ernment and invitation to poverty along ethnic lines, rather than party Granted that Nigeria has many and the progressivelyimmiserating EMEKA OSUJI and national lines. I expected APC institution to the whims “home-grown” problems, patently condition of the people witnessed in leaders everywhere to call for unity of the strong men that designed for and peculiar to her, it many developing countries, includ- Dr Emeka Osuji of APC members against PDP and should not preclude the use of other ing Nigeria. School of Management and the other parties, and vice versa. To run them guarantees the peoples’ experiences to resolve our It is no wonder that the rate of Social Sciences call Northerners or Southerners to domestic challenges. poverty, though exacerbated by Pan Atlantic University suboptimal performance Lagos. [email protected] @Emyosuji unite for 2019 against the rest of the So let me share some thought on insurgency and warped reward sys- country was a shock to me. of our institutions and the one economic theory I think is at tem, has continued to rise despite Elections are fought along party work in our national development several policy measures against do not write on politics be- lines while civil wars are fought propagation of incompetence failures. It relates to the performance it. Nigeria is one of the countries cause I do not have special along regional or tribal lines. Is the in the country of institutions and suggests that in- currently struggling in the quag- skills in that field. However, 2019 election a declaration of war competence in one public institution mire called Middle Income Trap. I would like to give an opin- between the regions of Nigeria? tends to breed incompetence in oth- Countries in the Middle Income ion on an issue that I found Granted that politics is about in- been senseless for anyone to call on ers, and ultimately policy failure. It is category have Gross Domestic In- Ideserving of a comment. Therefore, terests and conspiracies, I thought an entire region or tribe or clan to premised on the notion that public come of between $1005 and $12235 before I address the object of my the interest is that of the members drop their ideologies and unite along institutions are often complemen- per capita. Nigeria is not only in the column today, let me by way of an of one party against others. I find it other lines for 2019.Tribe and clan tary to one another, in the sense that lower category of this group (Lower obiter dicta, comment on what I con- improper for otherwise “respect- will surely thrive where there is no the action of one induces action, in Middle Income) it is also caught sider an undistinguished conduct of able national leaders”, especially ideology. I leave it to political science the same direction and not the op- in the Middle Income Trap. This some Nigerian leaders that is sure those who have had the privilege experts to dissect. We should show posite, in other public institutions. is a characterization for countries to further the ethnic and regional of ruling the country to preach more love to Nigeria because that is What this says, in simple terms, is that grew rapidly, as Nigeria did in divides in the country. sectional unity in a country that where our future is. that incompetence or non-perfor- the 1980s, reached middle income Nigeria is facing an election needs harmony and integration Now to the things am comfortable mance in one public institution, for but failed consistently to get past whose outcome at all levels is likely more than any other on earth. to talk about – economics and devel- whatever reason, has the tendency that level. to be on a tinder box with a potential Nigeria has 36 states that should opment. It is common to hear many to induce non-performance in oth- As the search for true national to hurt everyone if handled improp- work together for its development people say, with every vehemence, ers. It proposes that the inability of identity and leadership continues, erly. Clearly, it appears that whatever but what one sees is a concerted that economic theories proven to be economic agents to make optimal Nigeria needs to return to the ideals the results may be, even winners effort by those who ought to know efficacious everywhere else in the choices would invariably lead to of institution building. The subjuga- have to be very careful in picking better, calling for the unity of one world, do not work in Nigeria. They a situation in which all economic tion of national institution to the up their victory. That may sound section against the other as if the say it with a sense of finality that agents gravitate to an equilibrium whims of the strong men that run familiar. The stakes have become election is a contest between parts chokes off any zeal for intellectual position that undermines their them guarantees the suboptimal higher because the opportunity to of the country. It is hypocrisy when discovery and search for solutions capacity – they underperform. This performance of our institutions and steal from the treasury is near; and we do this and turn round to tell to our many problems. That view underperformance then manifests in the propagation of incompetence since nobody gets jailed in Nigeria politicians to put national unity is wide-spread, not just among the the inability of government to meet in the country. Economic theory for stealing public funds, the battle above their personal interest. If we illiterate but even among the well- societal needs. predicts that the result will be mass for political office is not only at- have political parties that cut across educated but not so knowledgeable Ultimately, government, as a poverty of the sort with which we tracting more vicious contenders the country, how then can one call vocal people that usually make the result of the failures dished out currently grapple. Accordingly, but becoming more epic. The signs on one’s clan, region or zone, as if first “expert” comment on every from multiple channels of its ad- policy design and application must are everywhere. Even mere party they all belong to one party, to unite economic issues. That wrong notion ministrative machinery, fails to anticipate and prevent the democ- congresses are now battles. Such against the rest of the country could pass, if it were presented from coordinate its policies or account ratization of incompetence trans- a time calls for caution if truly we Clearly, the call for regional the point of view of Nigeria’s many for the resources utilized. This is mitted by weak institutions run by dislike the travails into which our or ethnic unity to win elections is inherent disabilities. Unfortunately, why incompetence should not be incompetent but very strong men. country has been plunged over the evidence that the absence of party it is not. Those holding that view al- tolerated in any form by a country past several years. I was therefore ideologies is part of our national most always present it as a weakness in a hurry to develop. Doing so is a Send reactions to: shocked to see some of those we pro- problem. Otherwise, it would have of economic theory itself. And that recipe for underperformance of gov- [email protected] Can your emotions ruin your negotiation? But in the recent years, sev- role of either client or supplier and was that the negotiation ended as well as judging properly other eral researchers have examined received confidential information poorly - for example, in litigation parties’ interests. More so, angry how specific emotions such as about company’s finances and or an impasse (no deal). negotiators may seek to harm or anger, sadness, disappointment, politics. Then, she tasked each pair revenge against their counter- anxiety, envy, excitement, and with renegotiating. Of course, this Control your anger when ne- parts, even though a more coop- regret can affect the behavior of is a process that could lead to an gotiating erative approach might increase negotiators. What happens when amended deal, termination of the Anger is a strong feeling of dis- the value that both sides can GODWIN ERONDU these emotions are felt by parties contract, or expensive litigation. pleasure and usually of antago- claim from the negotiation. in negotiation? What happens The interesting thing about this nism: the feeling that makes Building rapport before, dur- Erondu is a business coach and CEO of Wisdom Coach International when they are expressed? For simulation is that one side of each someone want to hurt other ing, and after a negotiation can instance, research shows that pair was given top-secret instruc- people, to shout etc. It is obvi- reduce the odds that the other those prone to anxiety will have tions before the exercise began: ously a negative feeling. If one party will become angry. Smart everal years ago, only to take steps in dealing with this “Please start the negotiation with views negotiation from the per- negotiators engender coopera- a few researchers paid otherwise, they will continually a display of anger. You must display spective of competition and not tion by helping their counter- much attention to the role experience suboptimal negotia- anger for a minimum of 10 minutes collaboration they will probably parts see that they are seeking of emotions in negotia- tion outcomes when brokering at the beginning.” In fact, they were believe that anger is a produc- a win-win solution rather than Stion. How feelings can influence a deal. also given specific tips for showing tive emotion. But successful and trying to get a bigger slice from the way people overcame con- Alison Wood Brooks, an as- anger like interrupt the other party, well experienced negotiators the fixed pie. flicts, reached agreements, and sistant professor at Harvard call her “unfair” or “unreasonable,” concentrate on expanding the In heated negotiations, hit- created value when dealing with Business School, conducted an blame her personally for the disa- pie through collaboration rather ting the pause button can be the another party was virtually the experiment in one of her MBA greement, raise your voice. than quickly high-jacking the smartest play. You may not close least among the things they want- classes. She paired her students, The pairs were spread over the lion share. the deal in one day, so, deciding ed to invest their time to research. each to read a different account building in such a way that they Of course, anger could pro- to take a break might be helpful Rather, they paid more attention, of a (fictitious) troubled relation- can’t see other student’s behavior. duce concession from the other in allowing the tension cool off. particularly, to the ways in which ship between a supplier and a After 30 minutes, she brought party, but you will probably have Moreover, when you feel pleased parties can identify and consider client. The students were told that them back to the class. Guess the damaged a long-term relation- about an outcome, it may be wise alternatives, use leverage, and the two parties signed a detailed outcome of the simulation. ship. If one allows the proceed- to keep it to yourself. This will execute the choreography of of- contract eight months earlier, During the debriefing, the pairs ings to escalate because he is help reduce the odds of stirring fers and counteroffers. In fact, but now they’re at odds over sev- were surveyed to see how angry angry, one will end up bringing up envy, anger, and tension dur- negotiation was more understood eral of the terms (sales volume, they felt and how they fared in the negotiation to an impasse. ing the negotiation. from the perspective of how to get pricing, product reliability, and resolving the problem. It was dis- Anger will make it difficult the most money or profit from the energy efficiency specs). covered that the more anger the for one to be mindful of his own Send reactions to: process. Each student assumed the parties showed, the more likely it interests during the negotiation [email protected] Wednesday 09 May 2018 C002D5556 BUSINESS DAY 11 comment is free COMMENT Send 800word comments to [email protected]

Transparency in recruitment processes and practices in the banking industry and/or poaching of prospects from Most recruitment activities This raises ethical concerns as regards addressing most of the issues high- other organizations giving excuses of the fairness of the whole process. lighted earlier. highly rigorous recruitment process which require rigorous Following selection, most banks Banks need to take background caused by high unemployment and and painstaking process always fail to carry out a thorough and checks beyond just character reference unemployable graduates’ rates. This comprehensive background check on and qualification checks. Other checks has led to the unethical headhunting to attract the right talents the selected applicants before placing like integrity tests, criminal record of talents from competitors and other them on the job. This raises a substan- check, and even a credit history check ZAINAB DERE firms, leaving out many prospective are being jettisoned by tial ethical concern as it contradicts would be necessary to most likely re- talents from the recruitment process. most banks. They prefer the underlying values banks should duce the risk of frauds and safeguard Dere is with the Lagos Another unethical practice among stand for. Background checks are customers’ deposits. There is a need Business School recruiters in the banking industry is to headhunt and poach necessary to investigate the personal- for HR professionals to collaborate the inadequacy of the conceptualisa- candidates who may likely ity, morals and integrity of prospective and share information on erstwhile he recruitment process of tion and design of jobs to be filled. It employees. There have been cases staff beyond just the formal reference any organisation is crucial is not unlikely to find job adverts that end up not performing on where people with fake certificates checks done. It is the moral duty of HR to its overall success. This are shallow in terms of description the job were employed by other banks few practitioners in the banking industry to is because employees help of duties and responsibilities, and months after they were sacked from speak up against unethical practices to actualize the vision and specifications. Some job descriptions their previous jobs. in the recruitment process and also Tmission of the organisation. Hence, advertised are not in tandem with de- investment firms, are also offered huge To address these issues, the Central ensure that ethical and transparent the need for a proper and transparent liverables of the job and/or deliberately bonuses and relocation benefits besides Bank of Nigeria (CBN) came up with recruitment practices are followed recruitment process devoid of unethi- overrated with bogus tasks, duties and the large salary they would receive. This a ‘Competency Framework Policy’ in through to select the right candidates. cal practices. The focus of discourse at responsibilities in order to fascinate amount to double standards and injus- 2012 to ensure that only ‘fit and proper the recently held Social Issues Cluster talents who prefer high and challeng- tice to staff that are recruited locally. A persons’ are approved for appoint- • This article written by Zainab Dere is (SIC) meeting of the Christopher ing job demands. Such individuals number of banks fell on their faces using ment to boards and top management an excerpt of the Social Issues Cluster Kolade Centre for Research in Lead- after being placed would find the jobs this strategy, when the margins started positions. The CBN assigned the Char- Meeting of the Christopher Kolade ership and Ethics (CRLE) at Lagos boring and unchallenging resulting in shrinking and the desired results were tered Institute of Bankers of Nigeria Centre for Research in Leadership and Business School (LBS), titled “Trans- their exit within a short time. not achieved. (CIBN) as the accreditation agency Ethics (CRLE) at Lagos Business School parency in recruitment in the banking Most recruitment activities which Another area that raises transparen- for the policy’s implementation. The (LBS), titled “Transparency in recruit- industry” was to highlight the ethical require rigorous and painstaking cy issues in recruitment is the selection framework was created to define ment in the banking Industry.” Social issues and anomalies involved the process to attract the right talents process. Once the screening process is the minimum knowledge, skills and Issue Clusters (SIC) is a think-tank style recruitment processes of banks in the are being jettisoned by most banks. done, some candidates recommended competencies required for operators event held to brainstorm social issues in country and proffer possible solutions. They prefer to headhunt and poach for employment by the HR officer might and regulators to perform optimally leadership and ethics in the country and The recruitment process in Nige- candidates who may likely end up not get employed due to some form of on their various jobs. The framework proffer solutions to them. CRLE’s vision rian banks has passed through differ- not performing on the job. The banks interference from top management. was also meant to standardize capacity is creating and sharing knowledge that ent phases, from paid advertisements lure most of these “stars” with huge, In some banks, the final decision on and develop competency to nurture improves the way managers lead and live and referrals, to outsourcing with mouth-watering and irresistible offers employment could be in the hands of knowledgeable, skilled and competent in Africa and the World. You can contact assessment centres, and other recent which include profit sharing, allow- the Managing Director even after the workforce for the Nigerian banking CRLE at [email protected]. means. Previously, job vacancies were ances, incentives, and other benefits. rigorous recruitment process. Thus, the industry. A thorough and judicious mostly advertised. However, most Foreign recruits, who are poached names of some qualified candidates alignment of the banks staffing poli- Send reactions to: banks now recruit through referral from renowned international banks or would be substituted for “special ones”. cies with the framework can assist in [email protected]

AKEEM OGUNLADE Banks, judges, Indians and questionable rulings Ogunlade is of the Centre for the Promotion alleged bid to make financial gains.” them, later expelled them again. Their State, Peter Odili, for corruption. Jus- June 2015 to May 2016, indicted “law of Enterprise and Business Best Practice, The bank therefore asked EFCC and alleged offences ranged from criminal tice Buba, in another curious ruling, enforcement agents such as the police Wuse 2, NJC to intervene and investigate the conspiracy, tax evasion, and economic granted a perpetual injunction retain- and judiciary workers such as judges judge, as losing the amount involved sabotage to money laundering. ing Mahtani on the board of Stanbic and magistrates” as the highest takers could affect its fortunes as it is part of Back to Bhagwan Mahtani of IBTC. Also Justice Okon Abang was of bribe in Nigeria. It said 32.3 percent t was the lead story on the front depositors’ and shareholders’ funds. Churchgate Group again. A group once berated by the Court of Appeal of Nigerians had to pay some form page of Thisday newspaper The Churchgate Group report- of minority shareholders of Stanbic for miscarriage of justice after he of bribe to public officials between on Wednesday April 18, 2018. edly denied the allegations in the IBTC Holdings Plc, under the aegis sacked Governor Okezie Ikpeazu of June 2015 and May 2016. A whopping The report, titled, UBN Drags petition, according to Thisday, claim- of Trusted Shareholders Association Abia State when he ruled that Ikpeazu N400 billion was received in bribes by IJudge Before NJC, EFCC over Al- ing instead that Union Bank actually (TSA), had called on the regulators submitted false tax clearance papers public officials within the period in leged Collusion with Churchgate got favourable judgment delivered of the financial services industry to in a pre-election contest. review, NBS stated. Owner, triggered a curiosity that on February 28, 2018 “but was dis- suspend a proposed rights issue. They Without even being a lawyer, December 2015 in neighbouring took me down memory lane. Citing satisfied with the judgment and had alleged that billions of Naira were these doubtful rulings call to ques- , following a diligently executed a 44-page petition, the report stated gone on appeal.” deducted from the gross revenue of tion not just the integrity of the sting operation and expose by Ghana- that Union Bank of Nigeria (UBN) The mention of Mr. Bhagwan the organization and warehoused in a judges but more importantly the role ian investigative journalist, Anas Are- Plc had dragged Justice Ibrahim Mahtani brought back memories of suspense account to be transferred to of the judiciary in compounding the meyaw Anas, 21 judges were sacked by Buba of the Federal High Court curious coincidences and another its offshore holding company as pay- difficulties of doing business in -Ni the country’s Chief Justice, Georgina before the National Judicial Council protracted litigation that almost crip- ment for franchise/ fees, which was geria. For a country that desperately Wood for taking bribes, attempting (NJC), the Economic and Financial pled another major bank some years not approved by Nigeria’s National seeks foreign investment, taking to subvert justice and violating the Crimes Commission (EFCC) and the back. The incident also appears con- Office for Technology Acquisition and actions, whether by the executive, constitution. Department of State Services (DSS) sistent with the sullied reputation of Promotion (NOTAP). judiciary or parliament that provoke Recently, Justice Raliat Adebiyi for alleged professional misconduct. some notorious Indian businessmen As the matter unraveled, it came to unnecessary investor apprehension, of the High Court, Buba, the bank claimed, “col- who exploit gaps in Nigeria’s legal light that TSA was actually a front used capital flight or disincentive to FDI sentenced Dr Joseph Nwobike, a luded with one of its huge debtors, and policy frameworks to engage by the Mahtani brothers, Bhagwan and inflow is condemnable. A recurrent Senior Advocate of Nigeria, to 30 days Mr. Bhagwani Mahtani, a naturalized in unethical conduct, sometimes Ratan, to truncate the fund raising. Into party in these questionable actions, in prison for offering gratification Nigerian businessman of Indian ori- bordering on outright fraud and du- the fray came the Financial Reporting the Churchgate Group has unfortu- to judges and court officials as well gin and chairman of the Churchgate plicity. A few years back, EFCC filed a Council of Nigeria (FRCN), acting more nately developed a reputation for as perverting the course of justice. Group, to defraud the bank and per- three-count criminal charge against like a hatchet man, rather than an un- controversy and noxious activities, Daniel Danladi, a detective with the vert the course of justice.” The judge, it Sandeep Gogia, a Lagos-based In- biased regulator. The matter went to not just in Nigeria, but across Af- Economic and Financial Crimes added, “used his intellectual prowess dian businessman, and his company, court to determine if FRCN and NOTAP rica. An online platform, National Commission (EFCC) had named to bend the rules and use his position Eastern Metal Limited for allegedly had powers to impose the sanctions. Waves, in recounting another scan- four judges allegedly involved in the to the advantage of the debtor by al- swindling a Nigeria company, Boars Curiously, the matter was brought dal claimed that way back in 1986, gratification scam. legedly turning the law upside down Communications Limited. Sandeep before Justice Buba who dismissed the Mathanis were “charged to If insinuations of judges being in in favour of the debtor – Mahtani, Gogia and another accomplice, Arun the proceedings sought by the bank. court by the federal government for the payroll of dubious businessmen the alter ego of First Continental Goswani allegedly obtained $250,000 He described the questions raised by alleged economic sabotage and ex- are proven, believing that NJC and Properties Limited, a subsidiary of from Boars Communications Lim- the organization as hypothetical and change control malpractice and were EFCC would investigate Union Bank’s the Churchgate Group. The petition ited under the pretext that he will academic. The matter went on appeal found guilty, expelled and ordered to allegations, it simply reinforces the alleged that Justice Buba deliberately provide the naira equivalent. It was and was eventually amicably resolved be deported to India from Nigeria.” scathing stance of President Muham- destroyed the legal mortgages that a ruse. The exploits of the Vaswani by the feuding parties. Known then as the Manshaudani madu Buhari that Nigeria’s judiciary were entered into to guarantee repay- brothers, Sunil, Haresh, and Ma- The above details are designed family, they reportedly changed is home to corrupt judges who place ment of a $68 million loan originally hesh, owners of the Stallion Group, to illustrate to what extent these un- names and international passports pecuniary gain above professional granted Mahtani and First Continen- are well-documented. Their alleged scrupulous elements are willing to go and returned to Nigeria in 2002 to ethics and national good. The world is tal Properties in 2011.” fraudulent business activities be- to undermine legitimate institutions continue ‘business as usual’, the patiently watching to see how EFCC, Union Bank described Justice Bu- came so unbearable for Nigeria that and processes. Interestingly, observers medium stated. The Mathanis later DSS and NJC would respond to UBN’s ba’s judgment as “most unreasonable they were deported during the ad- in our political space would recall the refuted the alleged change of names allegations. and difficult to understand, thereby ministration of President Olusegun perpetual injunction granted by Justice and deportation from Nigeria. conferring benefit to the unrighteous Obasanjo. Even the Umaru Yar’Adua Buba barring security agencies from Nigeria’s National Bureau of Sta- Send reactions to: at the expense of the righteous in an administration, which readmitted investigating former governor of Rivers tistics (NBS), in a survey covering [email protected] 12 BUSINESS DAY C002D5556 Wednesday 09 May 2018 EDITORIAL

PUBLISHER/CEO Frank Aigbogun When killers kill without consequence, they kill more t 2.30 pm on Sat- How come these so called bandits his deadly cargo killing over 26 the president knows something EDITOR-IN-CHIEF urday, May 5, in can drive so freely with arms and people instantly. As people fled that we do not know, there is no Prof. Onwuchekwa Jemie Gwaska village in ammunition and kill with such from the first bomb blast, another better rating of the performance EDITOR Birnin Gwari Lo- impunity without any counter ac- suicide bomber detonated his of the heads of security agencies Anthony Osae-Brown cal Government tion from the security agencies? explosives. At the end of both at- than their ability to protect lives Area,A when most men were These questions become even tacks, more than 86 people were and properties of citizens. Going DEPUTY EDITORS still in their farms, a group more relevant because this is not dead. We do not want to talk of the by the ongoing killings across the John Osadolor, Abuja of ‘bandits’ rode into town the first time that Birnin Gwari almost daily killings taking place country, the president and the Bill Okonedo on motorcycles and went on has been attacked. The com- Taraba, Zamfara, Benue, Plateau heads of security agencies have a killing spree. By the time munity has experienced several and other states across the coun- failed. What is the purpose of a NEWS EDITOR Patrick Atuanya they were done with their attacks in the last few months, try. Nigeria, sadly has become a government if it cannot protect evil agenda, over 45 people, yet apparently the police did not killing field, where people wake its own people from unlawful EXECUTIVE DIRECTOR, including men and women deem it fit to have policemen sta- up to the news of mass killings killings? SALES AND MARKETING were dead, killed in cold blood tioned in the community to deter and they hardly flinch because it The killings have continued Kola Garuba on a hot Saturday afternoon. future attacks. This is an obvious happened yesterday too. because there have been no con- EXECUTIVE DIRECTOR, OPERATIONS They were not only killed but failure in the security apparatus While mass killings have sequences. The perpetrators of Fabian Akagha their houses were also burnt. in the state. become common, arrests are the killings have continued be- It looked like the agenda was Sadly, this apparent failure scarce. The killers are killing cause no one is arresting them. EXECUTIVE DIRECTOR, DIGITAL SERVICES Oghenevwoke Ighure to wipe out the community. in the security apparatus in Ka- more and more people because Those who should arrest them Austin Awar, the Police duna state has become the norm there is no consequence for have not done so because no one ADVERT MANAGER Commissioner in state across the country resulting in their action. Nigerians had high is holding them to account for not Adeola Ajewole has since confirmed the inci- unnecessary and random killings hopes when President Buhari doing their jobs. The bulk stops at MANAGER, SYSTEMS & CONTROL dent and the number of causal- of Nigerians almost on a daily was elected in 2015, that the then President Buhari’s desk. Emeka Ifeanyi ities. He claims that the police basis. Between January to date, deteriorating security situation “How can a responsible gov- have since deployed about 150 it is ‘estimated’ that about one in the country would come to ernment allow his people to be HEAD OF SALES, CONFERENCES Rerhe Idonije policemen to protect the vil- thousand (1000) Nigerians have an end considering his military killed in this way” said President lage from further attacks with been killed in random attacks background. Sadly, the secu- Buhari back in 2013 while criticis- SUBSCRIPTIONS MANAGER a plan to further deploy 200 across the country. We are using rity situation has actually gotten ing former president Goodluck Patrick Ijegbai more officers at a later date. As ‘estimate’ here because there is worse. Even more worrisome is Jonathan over attacks by Boko they say in local parlance, the no official agency taking record the fact that the president has not Haram. He had even suggested CIRCULATION MANAGER police are ‘offering medicine of Nigerians being killed daily by offered any clear strategy to put that the then president Jonathan John Okpaire after death.’ these so called ‘bandits.’ There is an end to the killings other than should resign for a more compe- GM, BUSINESS DEVELOPMENT (North) The question is where was an apparent massive failure in the usual platitudes that come tent leader to handle the security Bashir Ibrahim Hassan the police when these villag- the security architecture in the with these killings. situation if he cannot handle the ers were being killed on a hot country. President Buhari has kept the situation. Five years after, per- GM, BUSINESS DEVELOPMENT (South) Saturday afternoon? Bandits Just last week, a suicide bomb- heads of his security agencies de- haps it is time President Buhari Ignatius Chukwu riding on a motorcycle must er walked into a mosque in Mubi, spite the rapid deterioration in se- take a look into the mirror and HEAD, HUMAN RESOURCES have come from a location. Adamawa state and detonated curity across the country. Unless heed his own advice. Adeola Obisesan

EDITORIAL ADVISORY BOARD Dick Kramer - Chairman Imo Itsueli Mohammed Hayatudeen Albert Alos Funke Osibodu Afolabi Oladele Dayo Lawuyi Vincent Maduka Wole Obayomi Maneesh Garg Keith Richards Opeyemi Agbaje Amina Oyagbola Bolanle Onagoruwa Fola Laoye Chuka Mordi Sim Shagaya Mezuo Nwuneli Emeka Emuwa Charles Anudu Tunji Adegbesan Eyo Ekpo

ENQUIRIES NEWS ROOM 08022238495 08034009034} Lagos 08033160837 Abuja ADVERTISING 01-2799110 08116759801 08082496194 SUBSCRIPTIONS MISSION OUR CORE VALUES 01-2799101 STATEMENT BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, 07032496069 Entrepreneurial and Purpose-Driven. 07054563299 To be a diversified provider of superior • The Fourth Estate: We take pride in being guarantors of liberal economic thought www.businessdayonline.com business, financial and • Credible: We believe in the principle of being objective, fair and fact-based The Brook, • Independent: Our quest for liberal economic thought means that we are independent of private and public interests. 6 Point Road, GRA, , management intelligence Lagos, Nigeria. across platforms acces- • Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do 01-2799100 sible to our customers • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share anywhere in the world. our vision, while treating them with respect and fairness. LEGAL ADVISERS The Law Union www.businessdayonline.com Wednesday 09 May 2018 BUSINESS DAY 13

COMPANIES DMO opens May savings bonds offer & MARKETS Pg. 14 Company news analysis and insight Nigeria attracts $30bn foreign investment

he Central Bank feat was achieved through of Nigeria has to the provision of accurate injected 210 market data and informa- million dollars tion about the foreign ex- into the Inter- change market. BankT Foreign Exchange The president said the Market in continuation of its goal of the association, as efforts to sustain liquidity in a strategic partner with the the market. CBN, was to make the Naira The bank said it had of- strong, reliable, and the only fered 100 million dollars to acceptable currency for authorised dealers in the trading in West Africa. wholesale segment of the The Head of European market while Small and Union Delegation to Ni- Medium Scale Enterprises geria and ECOWAS, Amb. Segment received 55 mil- Ketil Karlsen, says the trade lion dollars. Meanwhile, volume between Nigeria The bank captured no and EU reached 25.3 billion fewer than 31 million cus- euros in 2017. tomer accounts in its Bank Karlsen said the figure Verification Number Project was an increase of 27 per aimed at ensuring unique cent over that of 2016 which identifier in the Nigerian was 19.9 billion euros, and banking industry. about 50 per cent of the 2017 It also linked a total of trade value was in favour of 43,959,282 (forty three mil- Nigeria. lion, nine hundred and fifty African Development nine thousand, two hunded Bank in partnership with and eighty two) bank ac- UNIDO has plegded to sup- counts in the BVN project port , Ethiopia, Mor- launched in 2014. rocco, Algeria and Nigeria L-R: Moruf Oseni, executive director retail, Wema Bank Plc.; Wole Ajimisinmi, legal adviser/company secretary, Wema Bank Plc.; The Association of Bu- with industrial policies to Segun Oloketuyi, MD/CEO, Wema Bank Plc.; Folake Sanu, executive director, Lagos, Wema Bank Plc., and Wole Akinleye, executive reaux De Change Operators help boost economic de- director South Bank, Wema Bank Plc. cutting the anniversary cake as they celebrated ALAT’s one-year anniversary in Lagos recently. of Nigeria (ABCON) says it velopment and increase has attracted over 30 billion foreign direct investment. industrial clusters of small Trade Area Agreement and Commission. create accelerated growth dollars to the economy from The bank said the poli- businesses. is making arrangements to The country expressed and integration through the foreign investors. cies would support capi- Kenya has ratified the submit the signed docu- optimism that the conti- free movement of goods and ABCON President, Alha- tal markets, boost market African Continental Free ment to the Africa Union nental trade pact would services. ji Aminu Gwadabe, said the liquidity and encourage

Nigeria-China Currency-Swap deal: Experts express divergent views

inancial experts in could address shortage of to the near destruction of imbalance in the volume of to the flooding of imported “It is a prelude to make Lagos on Monday dollars for import purposes, Nigeria’s budding industries. imports/exports between the goods from China to Nigeria, the Naira sovereign in the expressed divergent but are worried that if the The experts told the News two countries. thereby killing the few com- West African economies,’’ views on the Nige- volume of exports by Nigeria Agency of Nigeria (NAN) that Prof. Evans Osabouhien, panies struggling to produce. Gwadabe said. Fria-China currency swap does not increase, the deal a substantial increase in the a Senior Economist at Cov- “If we don’t produce, He urged the CBN to deal announced last week. would favour only China. nation’s productive sector enant University, Ota, Ogun what then can we export?” mandate money deposit They argued that the deal They said this could lead was required to reduce the State, said the currency swap Osabouhien asked. banks to open Yuan domicili- between Nigeria and China But Alhaji Aminu Gwad- ary accounts to deepen the was a good development, abe, president, Association agreement. but would have very serious of Bureaux De Change Op- Gwadabe explained that challenges in the long run. erators of Nigeria (ABCON), the volume of Nigeria’s im- Osabouhien said the said the deal was an excellent port from China in 2015 was deal would ease trade be- development in the foreign 2.5 billion dollars, graduated tween the two countries by exchange market. to 12 billion dollars in 2017 minimising currency losses Gwadabe argued that the and now hovers around 18 emanating from the prior currency swap deal would billion dollars. conversion of Naira to dol- also deepen the confidence “This excludes the 6 bil- lars and back to the Yuan, the of foreign investors in the lion dollars China’s invest- Chinese currency. Nigerian economy. ment in our infrastructure “The challenge, however, The ABCON chief said the and 2 billion dollars Dangote is that there is a huge imbal- deal would reduce pressure Industries expansion loan,” ance in the volume of trade in the demand for dollars Gwadabe said. between the two countries. in the market and provide NAN reports that Nigeria “The only solution is that currency options for imports. and China sealed a currency- there must be deliberate Another benefit of the swap deal worth 2.4 billion policies put in place to in- deal, according to Gwadabe, dollars on May 4 in China. crease our exports to China,’’ is the diversification of Nige- According to the CBN, Osabouhien said. ria’s foreign reserves, which the deal would provide local The economist noted he said would make it the currency liquidity between that the imbalance in the clearing house in Africa for Nigerian businessmen and trade volume would lead Yuan transactions. Chinese businessmen. 14 BUSINESS DAY C002D5556 Wednesday 09 May 2018 COMPANIES & MARKETS DMO opens May savings bonds offer

he Federal Gov- The two-year bonds full faith and credit of the ernment on would be due in May 2020, Federal Government, with Monday opened while the three-year bonds quarterly coupon payments its May savings would mature in May 2021. to bondholders. bonds’ offer, the The Debt office, however, NAN reports that savings DebtT Management Office did not state how much was bonds are issued to help (DMO) said. offered, but the maximum finance ’s budget According to the offer cir- subscription was N50 million deficit. They are targeted cular obtained from DMO’s at N1, 000 per unit, subject at encouraging low-income website by the News Agency to minimum subscription earners to save and earn of Nigeria (NAN), it offered of N5, 000 in multiples of more interests than the regu- the two-year bonds at 9.48 N1, 000. lar bank savings. L-R: Badru Shittu, assistant general manager (Procurement), LSDPC; Muni Shonibare, managing director, IO Furniture; Jelili Akinpelu, deputy general manager (Premises and Equipment), per cent and the three-year According to the DMO, The offer closes on Fri- LSDPC; Aminat Oyagbola, chairman, board of directors, IO Furniture, and Kitoyi Ibare-Akinsan, bonds at 10.48 per cent. the bonds are backed by the day. ex-president, Association of Consulting Architects of Nigeria, during the IO Furniture Labour Day Exhibition held in Lagos. Crunchies innovates fast food industry, introduces ‘Roots Restaurant’

“We often hear about dia- good food for people, but also ones, who have just graduated ness of rice and chicken and GODFREY OFURUM, Aba betes and other heart related to provide employment and from college and while we are all that, but right now we have 2002 in Aba, the commercial diseases. Consequently, what inspire others to learn from us doing that, also we mentor added the Chinese variation, hub of Abia State, but opened its runchies Fried Chick- we are trying to do in Roots is to and make Nigeria a better place”. other businesses that they can because we have found out doors to customers in Septem- en Limited, a fast food feed people with the right food He continued, “We decided invest in. that in most areas where we ber 2003, while Crunchies Plus, chain in the South- and reduce the prevalence of to do something different, to As a fast food chain of great play that customers always was inaugurated in December East/South-South heart related diseases. expand our scope in different repute, Nwosu explained that asked for simple things as 2014, with four outlets located regionsC of Nigeria, has estab- “So, Roots Restaurant was States, as it is usual with us. Crunchies, would continue Spring Roll, Chinese Rice and in Asaba, Delta State, Uyo, the lished a new outfit called ‘Roots actually envisioned to provide “It is to show our confidence to provide excellent service so on. So, we decided to bring capital of Akwa Ibom State, Restaurant’ with two outlets in excellent healthy food to our in the economy of those cities and quality products to their it under one umbrella and Calabar in Cross Umuahia and Enugu. teaming customers. “Apart and also to show how grateful numerous customers. make sure that our customers and Onitsha, the commercial Roots Restaurant, a high- from providing good food, we are to our customers, who In his words, “If you look get this service in good time. hub of . end restaurant, brings nature which Crunchies is known in the past years have supported at our slogan, it says “Taste the “I can say thus far that we The fifth outlet located in back to the fast food industry, for, the new facility would also our businesses in those areas, Difference” and with the intro- have been able to establish Umuahia, the capital of Abia Jude Nwosu, managing direc- provide ambiance for family to say thank you and thereby duction of “Crunchies Plus”, we our brand, establish ourselves State, was inaugurated in 2015. tor, Crunchies Fried Chicken recreation.” bring our outlets closer to their have created a new slogan that and I believe that customers The facilities provide a range Limited, says. According to Nwosu, it is our doorsteps, to provide better says “Step it up. in these regions have accepted of dishes, including Chinese Nwosu in an interview with policy to continue to expand, service and quality products to “What we have done is to our services and the confidence cuisine. BusinessDay, at his installation because for every outlet that our numerous customers. provide excellent service and that they have built around us, The firm currently has 16 as the 64th president of Aba we open, we reduce unemploy- The intent of our expansion better quality products and is the reason, why we have been outlets in the South-South and Sports Club 1926, said, “Roots ment and we are happy doing programme is to show our wider range of products to our able to expand in such a fast South-East regions of the coun- is a different kind of restaurant this, even against all odds. confidence in the economies numerous customers. manner,” he stated. try, with Asaba, Calabar, Uyo that serves local dishes in their “Our philosophy in of these areas, to remove from “Before now, we were do- Crunchies Fried Chicken and now Aba, topping with two true nature without additives. Crunchies is not only to provide unemployment line, the young ing the normal fast food busi- Limited, was established in outlets, each.

EY eyes digitalization strategy in boosting operational efficiency ...Holds Breakfast session on digitalization for CP&R layers in the Consumer will hold at EY Nigeria office at in performance. Products and Retail 10th Floor, UBA House, Marina. The event seek to improve (CP&R) industry may Speaking about the event understanding the key chal- be getting some face and the rationale behind it, the lenges and what need to be Plift as Ernst & Young Nigeria Bunmi Akinde EY Consumer done to ensure the Consumer takes a deep-dive into the world Product & Retail lead for West Product and Retail Industry in of digital disruption to take op- Africa says, “The traditional Nigeria keep pace with digital portunities the benefits as they business model is under in- technology navigate through the challenges creasing pressure to deliver Continuing, Akinde says that comes with it. top line growth and increase the organisations within the As part of its plan to drive operating margin. Consumer Sector like other optimum efficiency in the Traditional approaches to sectors are operating in an CP&R space, the firm is put- operational excellence have uncertain world, in which they ting in place preparations to only been partially successful in need to continuously adapt to host its 2018 breakfast session delivering the breakthrough in business disruption taking into in other to brainstorm on av- performance companies need consideration the peculiarities enues in which these goals can to compete in the future. of the industry. be achieved. The new wave of digital dis- Digitisation is forcing L-R: Akinolu Phillips, executive director Young Educators Foundation; Temitope Ashiwaju, group public relations and Events manager, Dufil prima foods Plc; Chigozirim Ude-Ibe, winner of Indomie The Breakfast session with ruptive technologies provides changes to every aspect of our spelling Bee competition; Anwulika Ngene, country manager, Young Educators Foundation, and an agenda ‘Leveraging digitali- the greatest opportunity to fun- lives; it is constantly challeng- Aramide Folorunsho, media relations Indomie noodles, at the national final of Indomie Spelling sation in today’s cost optimiza- damentally reinvent operations ing the way we do things and Bee Competition held in Lagos. tion and operational efficiency’, and deliver this breakthrough offering exciting alternatives. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 15 COMPANIES & MARKETS

Business Event

L-R: Adeyeye Enitan Ogunwusi, The Ooni of Ife; Cecilia Ibru, co-founder/president, Michael and Cecilia Ibru University; Richard Oghenevwogaga Ebelle, Ovie of Agbarha Kingdom, and Idowu Adediwura, Obalufe of Iremo, during the visit of Ooni to the Michael and Cecilia Ibru University (MCIU), at Agbahra-Otor in Delta State.

L-R: Mabel Ndagi (Bank of Industry); Moses Umoru (CCI France-Nigeria), Chief Taiwo Taiwo (Aart of Life Foundation – Representative of the Nigerian Ambassador to France – Mrs Modupe Irele); Carol Bossier (Representative, French Community); Dr Stella Okoli (CEO, Emzor Pharmaceutical Ltd) during the press announcement of The Nigerian Creative Arts Exchange in Paris.

L-R: Segun Senbanjo, regional director (Africa and Middle East) Seymour Energy Consulting; Chef Raphael Duntoye; Segun Agbaje, CEO Plc; Femi Otedola, chairman, Forte Oil, and his daughter, DJ Cuppy, during the GTBank Food and Drink Fair held at Water Corporation Road, Oniru Victoria Island, Lagos.

L-R: Babatunde Majiyagbe, executive director, Stanbic IBTC Nominees Ltd; Abisoye Balogun, Baale of Agbagbo; Otto Orondaam, executive director, Slum2School Africa; Olatunji Maxwell, Baale of Takwa Bay with pupils of Epiphany Anglican Primary School and Peculiar Kids Academy, Takwa Bay; during commemoration of the World Malaria Day in Lagos . 16 BUSINESS DAY C002D5556 Wednesday 09 May 2018 2019: Nigerians Politics are eager to vote President Buhari out- ADP Chair & Policy 19 Wednesday 09 May 2018 C002D5556 BUSINESS DAY 15 2019: How NCP will transform Nigeria - Presidential aspirant

INNOCENT ODOH, Abuja tal development that have long receive it free at state expense. eroded us as a people,” he said. “We reject the argument that the he presidential as- The 10-point agenda include; nation cannot afford free medical pirant of the Nation- Employment Care, Food Care, services for all Nigerians whereas al Conscience Party Health Care, Housing Care and our preventive and curative health (NCP) Tanko Yunusa, Education Care. Others are; Water services and facilities will be con- has reeled out plans Care, Electricity Care, Transporta- stantly upgraded.” andT strategies on how he intends tion Care, Telecommunications On Housing Care, he said to marshal the party’s principles Care and Security Care. “Housing is one of the basic in- and values to bring good fortunes He added that in outlining this alienable rights of every human to Nigeria in 2019, if elected into 10-Care Programme, his party being. But the reality is that many office. shall not lose sight of other respon- Nigerians are homeless. Many Yunusa, made this known in his sibilities of governance, stressing able-bodied but unemployed Ni- declaration statement under the that the programme flows from gerians live day and night, under party’s platform recently in Lagos. assessment of the priority areas bridges and on the streets. “We His policies are encapsulated in dealing with development of in- shall provide homes for our peo- the party’s 10- point agenda even frastructure and enhancement of ple especially the less privileged,” as he condemned the failures the quality of life. he said. of the President Muhammadu “On Employment Care we shall On Education care, he be- Buhari -led All Progressives Con- be committed to people’s needs- moaned that in spite of the cen- gress (APC), which has allegedly driven economy. The alarming trality of education to National unleashed intense hardship on rate of unemployment is disturb- transformation, the nation’s ed- country. ing. We intend to build cottage in- ucational system has virtually Yunusa, who lamented the dustry in all 774 local government collapsed with less than 10% an- increasing hopelessness in the areas. The government will not nually budgeted for in the coun- country, noted that he and party only create jobs, a living minimum try as against the 26% UNESCO will strive hard to reduce the wage will be introduced and it benchmark. tension in the land following the will rise periodically as inflation Only about forty three percent division along ethnic, religious rises,’’ he said. of school age children are in lines largely blamed on the alleged Yunusa On Food Care he said that schools at all levels. The National nepotism of President Buhari. massive investments will be in- literacy rate of 57% lags behind He added that the insecurity in and correct all imbalances through through its gadfly- friend of the jected into food crop and live- the average for underdeveloped the country caused by the Boko engagement with the Nigerian poor, Gani Fawehinmi paid for stock productions pointing out industrial country like ours. Haram insurgents, the ethnic masses as already discussed and with his life, necessitating what that farmers’ cooperative will be On Water Care Yunusa said irredentist movements such as enshrined in our Constitution. In we have today as the only, true encouraged. He also noted that that majority of Nigerians have the Niger Delta militant groups, order words, with the people first ideology to take Nigeria out of the agricultural subsidies in terms no access to clean pipe –borne the Indigenous People of Biafra and agreed engagement, we shall woods- talking about the Almighty of seeds and other agricultural water in spite of official claims (IPOB) the Oodua People’s Con- kick start not just a new Nigeria NCP-10 Care Programme. inputs will be put in place. of enormous resources that had gress (OPC)among others are but a more robust united Nigeria, “I am more than convinced that On Health care he averred that been committed to it. He pledged symptoms of fundamental crisis of meant for greatness and that will these Ten (10) care programme his party will make provision of to commit adequate resources to imbalances in the country which be our starting point. of the National Conscience Party cost- free medical services as a implement an efficient and effec- his party has developed the magic “This has become the social (NCP) will not only add value to fundamental right of all Nigerians tive pipe-borne water programme wand to address. contract and dues this party, our egalitarianism but also em- stressing that any person(s) who to encompass the entire nation “We shall listen to the people the National Conscience Party phasize the missing human capi- requires medical treatment will among other policies.

Saraki to sponsor Kwara pilgrims to Mecca, Jerusalem Ward Congress: Gov Ahmed cautions APC members against Reflecting on the rationale be- ment which used to sponsor about anti -party activities, hails peaceful conduct in Kwara SIKIRAT SHEHU, Ilorin hind his decision, the Saraki said 400 when I was governor of Kwara SIKIRAT SHEHU, Ilorin to the party during the election. resident of the Senate “any good leader must at all times state, we will start with 100. The He also congratulated the lead- Abubakar , listen to the yearnings of his people. coming Umrah( lesser Hajj) shall he Governor, ership of the party for the well on Monday inaugurated “We have our Muslim and Chris- be the starting point.” organised Congress and noted a 10- man committee on tian brothers desirous of observing Responding, the chairman of the Abdulfatah Ahmed has with delight the large turnout, MuslimP and Christian pilgrimages. the pilgrimages, but could not afford committee, Justice Haroon thanked cautioned members of The committee, headed by a the cost. We will help such people Allah for preserving Saraki’s life and the All Progressives Con- peaceful and hitch-free conduct Tgress (APC) in the state against of the congress. former Grand Kadi of Kwara State, with a forum through which they for what he has been able to achieve, Justice Idris Haroon is to coordinate can realise their dreams. We may not only in the state but the entire anti -party activities and not to “I wish to congratulate the pilgrimages’ sponsorship by Saraki. not be able to do like the govern- country. allow themselves to be deceived newly elected party leaders at the Among other duties, the com- He praised the lawmaker for his by the campaign of hatred and various wards and advised them mittee will select and screen those initiative, saying, “this which you calumny by nocturnal politicians to brace up for the task ahead by to be sponsored for Hajj, Umrah have initiated as a true Muslim, is who are hell-bent in causing con- being focused and committed to and Jerusalem pilgrimages by the the first of its kind in this state and fusion in the state. the party”, the governor said. President of the Senate. Ni g e r i a .” He, however, commended Ahmed noted that the outcome Speaking during the inaugura- Haroon, assured that the com- members of the party for the of the exercise had further shown tion of the committee which also mittee members will work assidu- peaceful process in which they the will of the existing political has the secretary of the state’s chap- ously to meet the aspirations of the conducted themselves during the structure in providing quality, ac- ter of the Christians Association of people. “We will do our job with fear weekend’s ward congress across ceptable and all inclusive leader- Nigeria (CAN), Cornelius Fawenu of God and shall ensure that only ship in the state. as a member, Saraki explained that pious people are selected for the the 193 wards in the state. he decided to take over the respon- exercise,” he said. Governor Ahmed, in a state- The governor promised to de- sibility of sponsoring Muslim and Cornelius Fawenu, the CAN sec- ment by his Chief Press Secretary, liver on the party’s electioneering Christian faithful on pilgrimages retary, described the inauguration Abdulwahab Oba, said he was campaign promises, saying that because the government could no of the committee as “a day that has pleased with the conduct of all his government will continue to longer do it due to economic chal- gone into Guinness book of record members throughout the exercise remain focused for an enduring lenges. Saraki as unprecedented.” and praised them for their loyalty development across the state. 18 BUSINESS DAY C002D5556 Wednesday 09 May 2018 Politics & Policy 2019: Melaye returning to PDP?

OWEDE AGBAJILEKE, Abuja raised the alarm about conspiracy Congress (APC) in the forthcom- theory of APC. You know what is ing polls. happening to ; he is Other members of the com- ne of the obvious being framed up.They just give mittee include former governors signs of a general figures and label. It is not going to Babangida Aliyu (Niger), Sule election in this part resolve the problem. Don’t turn Lamido (Jigawa), and Gabriel of the world is the Nigeria to be a police state. Eve- Suswam (Benue). Others are alignment and rea- rybody is living in fear as if we are former Aviation Minister Kema Olignment of political forces. in Abacha regime. Chikwe, her counterpart in De- The 2019 general election in “This government is intimidat- fence Haliru Bello, former Direc- Nigeria billed for February 16 ing our people. But we will resist tor General, National Agency for and March 2 respectively is not it. We will not be afraid. Nothing Food and Drug Administration an exception. Friends become can intimidate us because out and Control (NAFDAC), Paul Orhii foes, allies turn to sworn enemies, leaders and founding fathers amongst others. brothers betray brothers and like wrestled power from the military The PDP also stood behind a dog that goes back to its vomit, and brought this democracy. So, Melaye in the failed recall exercise, some Nigerian politicians are we will maintain it despite all which the Independent National seeking return to their former the harassment, media trial and Electoral Commission (INEC), political parties. all sorts of things that they have revealed, cost it N100 million. A Speaking to journalists at the deployed at their disposal. And day to the exercise, the party’s inauguration of the People’s Dem- of course, they have the instru- National Publicity Secretary, Kola ocratic Party (PDP) Contact and ment of federal might. So they can Ologbondiyan, who coincidentally Mobilisation Committee in Abuja, coerce, intimidate but that will hails from Kogi West, made a pas- National Chairman of the party, eventually be counter-productive sionate appeal to his constituents Uche Secondus, disclosed that the in a democratic system. to save the APC lawmaker. party is ready to receive the embat- “You know what happened Also at the weekend, the Dino Dino tled Chairman, Senate Committee when they came up after Campaign Organisation on Federal Capital Territory (FCT), had been detained? They came asked its supporters to boycott Dino Melaye, back into its fold. Secondus described the trials as He said:”the fear of everybody up with the recall process. And the just-concluded APC Congress Melaye, who represents Kogi politically -motivated, adding that around the globe is that Nigeria that is a referendum and a verdict in the state. West Senatorial District had in the the main opposition party is ready has turned to be a police state on those who are behind it. The In a statement, the campaign past described the People’s Demo- to receive Melaye back to its fold. by the APC government of Mu- people rejected it because Dino organisation accused the Kogi cratic Party (PDP) as a ‘satanic Accussing the Muhammadu hammadu Buhari. And he has was maltreated. All of these things State Governor, Yahaya Bello of party.’ The controversial lawmaker Buhari-led All Progressives Con- introduced some elements when are happening in the country hijacking the process. made the comments via Twitter on gress (APC) government of dicta- he was Head of State: arresting, and leaders are not speaking out. Although the embattled sena- July 6, 2015. torship, he condemned what he coercing, intimidating people. You People should speak out. We are tor is yet to officially move to his It would be recalled that Melaye called ‘persecution’ of critics of the don’t do that in democracy. You in democracy. Anyone that has estranged party, political analysts dumped the PDP for the All Nige- administration, citing the murder allow the rule of law to reign. We opposing view should speak freely. are certain that it is no longer a ria Peoples Party (ANPP) in 2011 case preferred against Shehu Sani, are not in the military era. They should not intimidate them. matter of if but when he will dump before joining the All Progressives another APC lawmaker. “Look at how Dino Melaye, a For 16 years we never intimidated the governing party for PDP or Congress (APC) in 2014. Answering a question from this senator of the Federal Republic anybody. The unity of this country any other political party to seek The serving senator, who re- reporter after he inaugurated the of Nigeria, was treated. He should is very important to us. As we can reelection. cently escaped from being recalled committee, Secondus said: “All be treated with all amount of civil- see, the country is so divided and According to the timetable and by his constituents, is currently Nigerians, not only Dino, are free ity. And we believe that if there is people are really worried”. schedule of activities released by facing trial on charges bordering to come (to PDP)”. anything; let him be taken to court Chaired by the former Cross the Independent National Elec- on alleged gun running, attempted He also decried the alleged har- in a good manner not as if he is a Rivers State Governor, Liyel toral Commission (INEC), con- suicide, criminal conspiracy, assment of the legislator, pointing common criminal. Imoke, the committee is saddled duct of party primaries including causing damage to government out that the failed recall of Mel- “So, more of these things will with the responsibility of initiating resolution of disputes arising from property and escape from lawful aye was a vote of no confidence come even to the opposition. talks with other political parties the primaries would take place custody. against the proponents of the They are treating their own person willing to align forces with it to between August 18 and October Reacting to the development, exercise. like this. You remember when we oust the governing All Progressives 7, 2018. APC congresses of chaos: A foreboding sign of bleak 2019

INNOCENT ODOH, Abuja tests, boycotts and disruptions of unnecessary resort to violence by crisis as boycotts, disruptions, Republic but the politicians re- the exercise especially in Oyo, Imo, contenders, even when there are threats, and intimidation marred mained largely the same with their head of the 2019 general Rivers, Delta, Anambra, Bauchi available channels for the resolu- the 1964 federal elections as results obnoxious aversion to rules and elections there are facts Ebonyi among others. tion of disagreements at various were declared in some places even constitutional order such that by that the average Nigerian One APC chairmanship aspirant levels of engagement. where elections were not con- 1983 the rigging, corruption and politician has from time in Delta State, Jeremiah Oghoveta, “The PDP regrets the violence cluded. The camel that broke the indiscipline of the politicians again immemorialA been the problem at Ward 10, Otu-Jeremi, Ughelli and called on Nigerians, particular- camel’s back came in the Western led to another coup that toppled with the country irrespective of South local government area of ly political stakeholders, to concert region election in 1965 and mas- the Government of Shehu Shagari party inclination. It was the des- the state was reportedly killed by efforts to make the political and sive bloodletting, arson and social by then General Muhammadu Bu- peration of the politicians of the unknown gunmen during the ward electioneering processes across destabilization characterized the hari, who is the current President. First Republic (1960-1966) to grab congress. board free of violence especially, exercise in what was famously Nigeria’s second return to de- power at all cost that rendered the Although the ruling APC through towards the 2019 general elections. dubbed “Operation Wetie.” mocracy in 1999 was a hard fought electoral process nugatory and led its national Publicity Secretary “Our party values the life of every Then on Saturday January 15, battle which has lasted for almost to the first military coup that top- Bolaji Abdullahi has hailed the single Nigerian and we implore 1966, following unrestrained vio- 20 years now. However anxiety is pled the government and ended exercise as “successful”, and called all contenders, including political lence in the region, some middle once again in the air following last that republic. on aggrieved members to seek parties, to eschew desperation for ranking military officers led by the Saturday’s APC congresses, which After much delays and uncer- redress with appeal panels, the power, especially in the face of loss charismatic Major Chukwuma Ka- again brought the negative political tainties, the ruling All Progressives main opposition party, the Peo- of popularity and public support duna Nzeogwu, led a coup against trait of the average Nigerian politi- Congress (APC), organized state ple’s Democratic Party (PDP) due to performance issues. the government of then Prime cian in their desperation either to party wards congresses on Satur- condemned in totality, the violence “Nigeria belongs to all of us and Minister Tafawa Balewa, killing capture power or to cling on it in day, May 5, to elect new leaders and bloodletting that characterized we seek a peaceful environment the Prime Minister and some other the most vicious manner. preparatory to the National Con- last Saturday’s APC ward congress where the citizens are free to vote highly placed political and military These developments have omi- vention of the party later in the in various parts of the country. for candidates of their choice at all leaders of that time. The streak of nous signs that the 2019 elections year. However, news across the PDP through its National Public- levels, particularly the Presidency,” events later led to a second coup may be marred by disruptions, states about the process and the ity Secretary Kola Ologbondiyan the statement said. in July 1966 and subsequently to a violence, rigging, intimidation outcome has not been cheering as on Saturday expressed worries From introspection the dominant bloody 30 months civil war. which could bear unimaginable few instances of peaceful conduct that Nigeria’s electoral processes parties of the First Republic and Nigeria later returned to demo- consequences for Nigeria’s young were overshadowed by deaths, pro- are still very much smudged by their coalitions caused enormous cratic rule in 1979 in the Second democracy. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 19 Politics & Policy 2019: Nigerians are eager to vote President Buhari out- ADP Chair National Chairman of the Action Democratic Party (ADP), Yabagi Sani, declares that Nigerians are waiting anxiously to throw President and his All Progressives Congress (APC) out of office in 2019 over his multiple failures and the unprecedented hardship unleashed on them. In this interview with INNOCENT ODOH, Sani says that his party is positioned as a viable alternative to provide purposeful and pragmatic leadership to the country. Excerpts:

The issue of insecurity has con- party because they just came to- to re-contest in 2019 and is al- tinued despite the promises gether to steal from the country. legedly preparing to realize his that the President Muhammadu That is why the only thing you aim at all costs. Do you think the Buhari made to address it. As hear about is stealing from the elections will be free and fair? a political party preparing for President’s office to the lowest Nigerians are wiser now. Today is the election, how does this issue person, everybody is just stealing. not like those days when you can shape your party as an alterna- Now if you even want a job you rig the process because people are tive vision for Nigeria? have to pay. We are talking about connected now. And the moment believe that what is hap- insecurity, why will there not they rig, they cannot get away with pening in Nigeria is an be insecurity when the recruit- it. That was why it was difficult indication that the govern- ment of the security personnel is for former President Goodluck ment we have in place has based on money. If you don’t pay Jonathan to rig and he lost. So it failed on all scores. The 300,000 or 500,000 you might not would be unfortunate for Buhari indicesI are negative everywhere get a job that is why insecurity is and his team if they rig the election and I believe that Nigerians were pervasive because the process of because they will face the music. taken for a ride by Buhari and the recruiting the leadership is also The international community is APC. Nigerians were sold a dum- corrupt. watching, they are already send- my that they have the panacea to Buhari came from a corrupt ing signals to Buhari that they no all our problems in the person of system. Billions were spent in longer have confidence in him and President Buhari, which is not Lagos before he was voted as the the APC anymore. The report from the case. APC candidate. You think people the US Department of State is to tell And why we are having wanton will contribute those billions and you that they have lost confidence killings, restiveness in the land is Buhari can look straight into their in Nigeria and are not ready to do because the APC that is supposed faces and say don’t do this? That business with this government. to superintend over the institu- is why he cannot sack anybody. tions of government is in total So what is the fuss about corrup- Your party has been making a disconnect with the people and Yabagi tion fight? lot of waves recently, are you this happens because you have a We in ADP have come with a working with other parties to government that has assumed a copters that they stole our money cabinet and since the formation system that will respond to the form a coalition or you will go messianic posture. They believe to buy. It is stealing because if the of the cabinet nothing has been yearnings of Nigerians, and we it all alone in the 2019 election? they are God- sent that is why they National Assembly did not give changed. You don t run a govern- have no delegate system in our Look at the feeling of Nigerians don’t listen to how Nigerians feel. the approval, that is stealing. So it ment like that. There is a ministry party because it’s a corrupt sys- and look at how angry Nigerians They believe that whatever they is a case of failed government that that locked down one department tem. That is why we have direct are against this government. do is the right thing. we are faced with in this country. very important to the economy of primaries for our candidates. Naturally human beings are more That is why they are not both- So the need for a credible alterna- this country. Nigerians should ask Until we reform our leadership excited when they are voting ered whether corruption is going tive cannot be overemphasized. Buhari why it took him three years recruitment process, the secu- against something. Nigerians are up just like the Transparency In- That is why ADP is here to provide to form statutory institutions to rity outfit and even civil service so fed up and they are waiting for ternational has said that Nigeria Nigerians with pragmatic leader- deliver dividend of democracy and stop collecting money from that moment to vote against this has moved up the ladder as one ship that will unite this country to Nigerians. Can you imagine graduates for jobs, then there is government. So it is not so much of the most corrupt countries. and give purposeful leadership an economy like Nigeria the CBN no way out. what resources we have, what you The US Department of State also that will transform Nigeria’s natu- board was just inaugurated after should look at is what the mood released a damning report that ral endowment s for the benefit three years? The Nigerian Senate was recently of Nigerians is. Nigerians are impunity, human right abuses of the people. So what I believe is Buhari is not there at all and to invaded and the perpetrators are just tolerating this government have worsened in Nigeria. Court that we need to have an alterna- worsen the matter you also have yet to be uncovered. The lawmak- because they constitution says orders are not respected; people tive to this government and that a party that is not there and does ers are also grappling with the that they must serve four years are just kept in detention without is why we are here. not worth the name of a political issue of the $496 million dollars otherwise they would have been any regard for their human right. Buhari spent buying fighter jets out long ago. High level of corruption is taking You talk about the ADP as the without appropriation. What is Nigerians have what is needed to place under this government and alternative; do you have all it your take on this? chase out Buhari. Nigerians them- people are not brought to book. takes to unseat the current gov- Buhari’s government has failed selves are the opposition party; they There is double standard in the ernment of President Buhari? Nigerians there is no doubt about that. If a are against this government with application and prosecution of How did the government come government cannot respect the passion. So, all that is required of the war against corruption. If you to power in the first place? It constitution and ensure security us is to bring out a credible platform are in APC you are clean even if was because Nigerians believed are so fed up then what is it doing? So what and a credible individual to give Ni- you have stolen the entire money that they have the solution to is government if hoodlums can gerians what they deserve, which is belonging to the state no body bring positive change to Nigeria and they are invade the National Assembly unity and good governance that will touches you. These are signs of but they deceived Nigerians. So and move the mace out? It is a give everybody a sense of belong- failed government. what I am talking about is that waiting for different thing if the members of ing. This government does not care And since the government has Nigerians hate corruption that is the National Assembly did that about Nigerians, so nobody wants failed of course you will have inse- why they voted Buhari but Buhari themselves but not somebody this kind of government to continue curity become pervasive, poverty and his people have now come that moment from outside and the security for one day. become endemic and you also to compound the corruption. So personnel are not aware. That This government has reduced find a situation where the country Nigerians are waiting to vote them to vote tells you the level of decay in the Nigeria to nothing before the slides at such a dangerous rate out. It was not the question of how system. international community with that laws are not respected and much money that they have. Nige- against this horrendous and unnecessary the President does whatever he rians brought them in through the Another thing that borders Ni- torture. People have started hav- likes and he does not care what ballot box and will vote them out government gerians is that the government ing nostalgia about the Jonathan’s the constitution or the National through same way. seems poised to foist itself on government because this present Assembly is saying. Look at the administration, it Nigerians despite it alleged fail- government is the worst case Look at the issue of the heli- took them six months to form a ures. Buhari declared interest scenario. 20 BUSINESS DAY C002D5556 Wednesday 09 May 2018 Politics & Policy Ajimobi expresses satisfaction with peaceful ward congress in Oyo …As party preaches sustained peace

AKINREMI FEYISIPO, from the House of Repre- discharge of their onerous sentatives from reprisal responsibility to elect new attack from those who executives that would pilot yo State Gov- attempted to assault him. the affairs of the Party for ernor, Abiola APC is one large family. the four years. Ajimobi, has There may be diverse inter- “It gladdens our heart expressed ests, but we are one. that the congress went satisfaction “I will continue to sue smoothly and was very Owith the peaceful conduct for peace among our lead- successful across all the of the rescheduled ward ers and followers, because 351 Wards without any congress of the All Pro- that is the cardinal pro- skirmishes or violence gressives Congress (APC) gramme and achievement against the wish of the held across the state, on of our administration. Our so called Unity forum,” Sunday. party and administration Olaoya said. A statement by the Spe- are known for peace and Olaoya said all the 351 cial Adviser, Communica- that must be sustained.” Wards Congresses were tion and Strategy to the The governor debunked monitored by INEC of- Governor, Bolaji Tunji, some report, which ficials and all the Security quoted the governor as claimed that the incident agents to authenticate the saying that feelers from at the APC secretariat was exercise. the five zones of the state a ‘bloody violence,’ de- The Party Secretary ad- suggested that the exercise scribing it as exaggeration. vised members of the Unity went without hitches. Ajimobi said that none Forum to always embark Ajimobi described Sat- of the security agencies re- on moves that would pro- urday’s disturbances at ported any case of bloody mote the unity of the party the APC state secretariat, violence, advising politi- instead of being divisive. which forced the post- cal leaders to refrain from “It is surprising that they ponement of the congress heating up the polity with could be passing on lies till Sunday, as one of those their utterances. that some aspirants did things expected in a po- Meanwhile, the APC in not pay for nomination litical gathering of highly of such violent conducts. “As the leader of the APC to all, I was able to douse the state has commended and that there were fake placed political leaders The governor said, “The in the state, I’m also father the tension that envel- the Ward Congress Com- nomination forms in cir- with vested interests. reports I have heard so far to all and that informed oped the party secretari- mittee led by Musa Halilu culation. According to him, fol- across the state indicate my conciliatory moves. at on Saturday when our Ahmed for the professional “The claim is spurious lowers and supporters of that the congress went No good father will stand supporters were trying to way it conducted its task. and unfounded. They are such leaders have been peacefully without any aloof while his children are outdo one another. All the In a statement issued by calling the integrity of top known to instigate crisis form of acrimony or ran- at loggerheads. Thank God APC leaders that came for Mojeed Olaoya, the party APC members deployed in their bid to outdo one cour. That is what we have all have been settled now the stakeholders’ meeting secretary, members across in Oyo for the exercise to another and to impress been preaching and I’m and we have had a peace- were well protected. the 351 Wards of the state question. This is not good their principals, who often happy that the players have ful outing today (Sunday). “I even shielded one of were also commended for for the image of our party time were never in support embraced peace. “As the leader and father our honourable members their orderliness in the in ,” he said. Fasehun, OPC warns FG over Melaye Violence in Ekiti APC primaries: What implications for 2019? contested with none of the aspir- of retaining them beyond the INIOBONG IWOK ants agreeing to step down from 2019 general elections. ...Demands his immediate release the race inspite of appeals by Observers however, be- INIOBONG IWOK designed to silence the op- subsequently to Lokoja, he manner in which the national leader of the party, lieved that the fracas that ema- position, stressing that the Kogi State. Senator Dino touts invaded the Asiwaju Bola Ahmed Tinubu. nate from the primaries would country was retrogressing to Melaye must not die!” venue and disrupted However, the outcome of have been avoided if the APC ounder of Oodua the era of the military rule. According to him, “Who- last Saturday’s All the primaries did not come as a had been able to prune down People’s Congress “Transporting Senator ever is maltreating him can ProgressivesT Congress, (APC) surprise, the Ekiti state chapter the number of the governor- (OPC), Freder- Melaye on a stretcher from only hide under the cover of Governorship primaries in of the APC had been engulfed ship aspirants in the primaries. ick Fasehun, has Abuja for arraignment in this regime, but that person Ekiti state came as a rude in internal crisis for several However, the manner the Fkicked against police ar- shock to Nigerians and politi- months, with party chieftains governorship primaries were Lokoja, Kogi State, IGP is will surely account for this being accused of working to disrupted by touts, not only raigning Senator Dino Me- behaving like a Gestapo gross misdeed not only to cal observers at large. favour of some candidates in shows the desperation of our laye on a hospital stretcher, police chief in Adolf Hitler’s Nigerians but the interna- The congress which held at saying it represents a gross the Oluyemi Kayode Stadium, the governorship race. politicians and the cracks Germany. That action is tional community.” It is also instructive to note in the APC, it also portends violation of his human was disrupted by thugs who unacceptable. It is man’s “They just want to cow the Oyegun led national lead- danger towards a peaceful rights by the administration disrupted voting, threating inhumanity against man. everyone into silence. This to beat up the party officials, ership of the party had failed to conduct of the 2019 general of President Muhammadu The Distinguished Senator’s is one more attempt to sti- inspite of the presence of se- resolve several crises in several elections in the country. Buhari. arraignment in a stretcher fle the patriotic voices that curitymen. states across of the country, un- What happens in Ekiti Fasehun accused the is degrading, dehumanis- have tried to hold the PMB They thugs that challenged til recently, when President Bu- could be a signs of what to Inspector-General of Po- ing and draconian, and it regime accountable in the the primaries organising com- hari, mandated the leader of the expect in coming elections. lice, Ibrahim Idris, over the deserves universal condem- National Assembly, in the mitte had allegedly colluded party, Bola Ahmed Tinubu, to However, what is worrying is incident, adding that it was nation by all right-thinking Judiciary, in the social and with some top APC stalwarts head the reconciliation effort. the poor history of punish- contributing to the adminis- persons.” traditional media, in civil to rig the exercise. Perhaps, the outcome of the ment of electoral offenders in tration’s poor human rights “The Senator reportedly society and in opposition The Ekti Governorship APC Ekti primaries was a reflection the country. of the failure in the leadership As the 2019 general elec- record’ while advocating for suffered back injuries as political parties,” the OPC primaries, which had About 30 of the party to manage its inter- tion approaches, it is however, the immediate release of the he tried to escape tear-gas founder said. “It is a throw- aspirants, notably a former gov- Kogi Senator. ernor and chieftain of the APC, nal crisis amicably. instructive to note that similar fumes in a police vehicle back to the era of Decree Until now, the party had occurrences could only be Speaking in a statement Segun Oni; former Speaker, transporting him to Lokoja, 4 of 1984, when as maxi- been engulfed in internal crisis avoided if the Independent in Lagos, Fasehun noted Femi Bamisile; Presidential following which he was ad- mum dictator, General Mu- Adviser on Political Matters, Ba- in several states, namely Ka- National Electoral Commis- that it was clear that the po- mitted in an Abuja hospital, hammadu Buhari made it bafemi Ojudu; former senators duna, Imo, Lagos and Sokoto, sion (INEC) brings electoral lice were mishandling and from where police brought dangerous to exercise your Ayo Arise and Gbenga Aluko; just to mention a few; which if offenders in the country to maltreating the Senator as him to court on a stretcher Freedom of Speech,” Fase- Mojisola Yaya-Kolade, Bimbo not urgently checked, could book, while security agencies part of an on-going script in the Federal capital and hun warned. Daramola, had been fiercely adversely affect its chances live up to their responsibilities. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 21 22 BUSINESS DAY C002D5556 Wednesday 09 May 2018 In association with

[email protected] Nigeria needs to de-risk farmers, improve infrastructure for price stability

Stories by JOSEPHINE OKOJIE development of linkages between farmers and the market, stating that youths can only find agric attractive xperts in the country’s when such linkages are available. agricultural sector have Apart from de-risking farmers called on the Federal and improving infrastructure, experts Government to de-risk also task the Federal Government to farmers, improve on adopt innovation to grow the sector. criticalE infrastructure and adopt Akin Alabi, co-partner, CFI, told technology if it hopes to stabilise BusinessDay that since the country’s food prices, achieve food security for agriculture is becoming more vibrant, its large population and build a virile technology and digitalisation are agric sector. inevitable. Hans-Willem Van Der Waal, “Farmers need mechanisation managing director, Agrofair Europe and innovation to boost productivity BV in his keynote address during if we are to feed ourselves as a nation,” BusinesDay agribusiness summit Alabi said. said that Nigeria can only stabilise Lack of technology has continued its food prices when farmers’ risks to limit the capacity of farmers are stabilised and reduced. to expand their cultivation areas, “In Nigeria it is easy to talk about perform timely farming operations the value chain but it is not easy and achieve economies of scale in to identify them because the value food production, stakeholders say. chains are fragmented,” Van Der Nigeria has an estimated Waal said. population of 190 million who must “A fragmented supply chain be fed with staple foods ranging from increases risk for farmers and with yams, rice, cassava to beans, bananas effective supply chain such risks and communities in Nigeria is the capacity to expand. encourage investments in agric value and tomatoes. But there is still much would be de-risked,” he added. absence of critical infrastructure Abiodun Olorundenro, operation chain. We need proper linkages of demand-supply gap in these staple He said that risks in the sector such as ‘motorable’ roads, storage manager, Aquashoots, said, “A big our roads from the farms to the foods, even as the population growth can be reduced through investment facilities and effective rail system challenge to agricultural productivity market. rate stands at 2.6 percent per annum. in infrastructure to aid reduction of among others. and food security in Nigeria is lack of “This will help address the issue The experts say that for Nigeria wastages in perishable commodities Farmers continue to suffer low adequate infrastructure to support of pricing as farmers production to attain higher levels of food and make agriculture interesting and levels of agricultural productivity food production and distribution.” costs will be reduced when critical sufficiency and reduce dependency more rewarding. due to infrastructural deficit across “The government must provide infrastructure that aid agribusiness on food imports, it has to adopt Indubitably, one of the greatest the country, which reduces their critical infrastructure and create are provided,” Olorundenro said. technology and innovation in its food problems confronting rural farmers profit and impact negatively on their enabling environment that will Olorundenro recommended the production.

Ogbeh did not shun US/Nigeria FUNAAB reinstates commitment to Nigeria’s food security investment summit, says FMARD he Federal University of to rural integration. he Federal Ministry of DC. Nigeria/US summit, which the Emir Agriculture, Abeokuta In his presentation, Emmanuel Agriculture and Rural This was stated in a statement described as a negative pointer to (FUNAAB) has reinstated Fakoya, director, COBFAS, said Development (FMARD) made available to BusinessDay by potential investors. its commitment to students’ groups are divided into has refute claims widely the Ministry of Agriculture and Rural The statement indicated that facilitateT solutions to agricultural four different divisions representing reportedT in the media that Audu Development. Ogbeh was not invited to the summit development and growth in Nigeria. the four geo-political zones in Ogun Ogbeh, Minister of Agriculture & The media report was attributed by the organisers, which did not Lateef Sanni, deputy vice- State namely Isaga-Orile, Iwoye Ketu, Rural Development failed to attend to Alhaji Lamido Sanusi, Emir of necessitate the minister to be in chancellor-development, said Ode-Lemo and Odogbolu. the recently held Nigeria-US who reportedly berated some attendance and seeking clearance in a statement made available He added that the centre Investment summit in Washington ministers for not attending the from the presidency to attend. to BusinessDay that the higher trains graduates of agriculture in “It is worth reiterating that Ogbeh institution of learning is committed 13 departments from the College was in Nigeria attending to his to offering the best practical training of Agricultural Management and official duties and did not travel to and farming solutions for the sector. Rural Development (COLAMRUD); Washington DC with the Federal Represented by Dorcas Adegbite, College of Animal Science and Government delegation, as he is director, Agricultural Media Livestock Production (COLANIM) not one of the government officials Resources and Extension Centre and College of Plant Science and that statutorily attend International (AMREC), Sanni disclosed that Crop Production (COLPLANT). Monetary Fund IMF meetings,” the the intention of the University in Fakoya disclosed that in order statement signed by Tolu Makinde, assisting the Community Based- to ensure that Farm Practical Year director of information, FMARD Farming Scheme (COBFAS), is Students are exposed to agricultural states. to serve as a voice to the youths, enterprises; the programme has “This explanation is necessary to especially graduates on the need been divided into two components reiterate the determination of the to get involved in agriculture, to of Community-Based and Campus- Ministry to attract foreign investment aid food security while creating Based. into the Nigerian agricultural sector employment. He listed the community-based in order to attain our national The deputy Vice chancellor added activities to include horticulture, agricultural objectives, as well as that farm practical year for students cassava production and Agricultural correct any wrong perception of is meant to expose them to real life Extension Services while the campus- tardiness, lack of seriousness or situations and experiences in farming based activities are livestock, plantain dereliction of duty that the said story communities; to complement the production, maize production, is capable of creating in the minds of various classroom teachings and as well as agrometereology and the public,” Makinde added. trainings as well as, expose students climatology Wednesday 09 May 2018 C002D5556 BUSINESS DAY 23

[email protected] Edo partners Leventis Foundation on development of Weppa Agricultural Management Institute

ISAAC ANYAOGU Weppa farm and the establishment Leventis Foundation of the state of the Institute will provide job government’s commitment towards opportunities for the students who moving the project forward. n a move that will ramp benefit from the standard training Present at the event were up job opportunities programs offered as well as not board members of the Leventis and commercial farming only assist in the development of Foundation Nigeria led by the in Nigeria, the board of commercial farming sector in Edo chairman Ahmed Mantey, Oladele directors of the Leventis state but in the entire country. Fatayi-Williams, the executive IFoundation Nigeria, a subsidiary Mantey expressed the director, Hope Usieta, Phil Hall, of the Leventis Foundation GTE Foundation’s gratitude to Godwin Russell Boddy and the farm director has partnered with the Edo Obaseki, the governor of Edo State, for Simeon Kayode, who were all on State government to develop an his cooperation with private sector hand to receive the governor and agricultural institute to ramp up enterprises, “which coupled with show him around the existing and mechanised farming. the Federal Government’s present proposed facility. The formal ground breaking proactive policies has enabled the Also in attendance along with the ceremony was performed on May Foundation to committedly pursue governor was the chief of staff Taiwo 3 in Agenebode area of Auchi the development of the Weppa Akerele, the Edo state commissioner Local Government Edo state, Agricultural Management Institute for agriculture and community for the official commencement as well as secure investments and chiefs led by Moses Etsu, who of operations at the Leventis needed partnership from relevant delivered a thank you address on Foundation Agricultural stakeholders,” Mantey said. behalf of the Agenebode community Management Institute, Weppa Obaseki laid the first stone on and its neighbouring towns. farm, Agenebode – Edo State. the Weppa Institute foundation, According to the Leventis The Weppa farm which dug and planted the first tree to Foundation Nigeria, this project currently employs 635 workers and mark a formal expansion of the will add to a list of laudable projects 35 students on industrial training is institute. He commended the efforts in the country including already a project the Leventis Foundation of the Leventis Foundation Nigeria existing training institutes in cities Nigeria which commenced in 2006, citing its extraordinary plan to like Kano, Ilesha, Abuja, Gombe to give students the opportunity to further agricultural development, and Kaduna. The group also has gain full exposure to modern mixed rural employment and national a training institute in Ghana. It commercial farming. food security through the local further said that it will continue to Ahmed Mantey, chairman of processing of raw materials in Edo fast track the development of young the Leventis Foundation Nigeria, state and Nigeria at large. agricultural specialists to become in his key note address, said the Goodwin Obaseki, Governor of Edo state laying the foundation for the Weppa Obaseki further assured the the commercial farm managers of continued development of the Agricultural Management Institute in Auchi, Edo state recently. chairman and members of the tomorrow.

Trump eyes Nigerian market for US agric produce How to establish a plantain, banana plantation on the economy by providing job therefore, are based on 10 Acres. BUNMI BAILEY interview. OLUMAKINDE ONI “We are an agricultural economy, opportunities for labourers, the market we should be the one exporting to these he food crisis in Africa and women, the industrial users and help N onald Trump, President of countries not the U.S exporting to us Nigeria in particular is not in improving the economic well being Pre-Investments 100,000 United States of America has except they want to bring in agricultural unconnected with our of the promoters. Land Acquisition and preparation said that the United States machineries that we can use to boost inability to tap the abundantly 2,000,000 is making plans with the production then no problem .But for availableT resources at our disposal to Production technology Suckers (10,000) at N200 each DNigerian government to bring in US them to bring in food produce does not solve our food problems. To embark on this project, there is the 2,000,000 agricultural produce into the country. make any sense,” Olorundenro said. Plantain and bananas are another need for a suitable land that has the Planting 250,000 “Our agricultural products are The Federal Government says it is set of food crops, which can be easily following characteristics: humid low Herbicides and other inputs 250,000 going into Nigeria but we have certain focused on diversifying the economy grown profitably in the country. The land, deep and well drained fertile Employment of farm hands 240,000 barriers that are not allowing that from oil to non-oil which is primarily botany of plantains and Bananas soils, optimum temperature of 27oc Miscellaneous Expenses and other to happen. So, for the good of US agriculture. But their target may not be do not differ except that storage of and well-distributed rainfall of about 250,000 farmers, and for the good of Nigeria, achieved as the new deal with America carbohydrate in the fruit of plantains 2,000mm per annum. Cultural practices ___ and all Africa, it is very important that may affect local production. is in form of starch while it is sugar in It must be noted that site for the TOTAL N5, 090,000 we are able to sell our agricultural Ayodeji Ebo, managing direcror bananas. project should be visited by experts to ======products into Nigeria and this will at Afrinvest, a Lagos-based financial It has been identified that ascertain their suitability or otherwise. happen as we are already working advisory, said, “I will need to know establishment of plantain and banana After land procurement, we do the Revenue projection on it,” President Trump said during what kind of agricultural product plantation is another means of land preparation either mechanically Under good management, one sucker a press conference held in the white because it will be counterproductive if livelihood for Nigerians, hence the or by slashing. This is followed by planted initially will produce one bunch house on 30th of April 2018. it is contrary to government objective need for this write up. purchase of suckers (the planting of plantain and banana per annum. Experts in Nigeria’s agricultural of trying to encourage local production. materials). Planting is done by digging This gives a total of 10,000 bunches per sector, say this is a huge gain for So if you are going to open up your Project justification and marketing holes of about 45cm wide and deep annum. A bunch of plantain will sell for the American farmers as their agric economy to importation of agricultural potential after which the suckers are placed in a minimum of N1, 000. produce will find more market but for products that may not be line with your The establishment of such project the holes. The spacing between crops This gives us total revenue of N10 farmers in the country, it could result objective of trying to encourage local will increase food production in the should be about 3m. million per annum starting from the in a loss as their produce will have to production and a lot of agricultural country. This will help in combating After planting, herbicide can 18th month after planting. Cost of compete with cheaper commodity investments may go bad.” hunger and malnutrition in the country. be applied to control weed growth. maintenance per annum is estimated coming from the US. Africanfarmer Mogaji, CEO, X-Ray It will also help in improving the Cultural practices involve fertilizer at N1,000,000. “It is going to be a good advantage Farms, said “Nigeria should not be livelihoods of rural dwellers through application at six months interval, Promoters will no doubt have over for US than Nigeria. Some of the a dumping ground for US products. the creation of job opportunities. pruning and regular weeding. Pruning N8 million as profit every year. Plantain agricultural goods they bring into America exchanges agricultural The crops have huge consumption involves removal of unwanted suckers plantations can last for a very long time the country such as maize is going products with other countries. What rates and also serve as raw materials to to allow the selected ones to develop if it is well maintained. to be a disadvantage to an average the government should be embracing the food and beverage industry and the well and produce desirable bunches. This is surely a good means of farmer here because it is cheaper to is an exchange not a dumping ground. poultry industry. This shows that the It takes about 18 months for the crops livelihood for Nigerians. The project is produce in the US than in Nigeria If they dump seeds here there is no market is very large both locally and to mature. recommended without any reservation. and this will drive down the prices problem because we have a huge internationally for the crops. Serious minded investors can be guided of the commodities,” Aboidun seed gap. The US should assist us in Establishment of the project will Financial requirements to successfully establish the project. The Olorundenro, operations manager, areas of weakness that will take time on the aggregate improve Nigeria’s To establish the plantation 10 Acre land author can be contacted through,e- Aquashoots Nigeria said in a phone to develop.” economy. It will have multiplier effect can be used for a start. All projections mail: [email protected]. 24 BUSINESS DAY Wednesday 09 May 2018 In Association with ATM dominates transaction volume in banking sector

????? accounting for 79.4 per cent, the corresponding period of Stories by HOPE MOSES-ASHIKE followed by PoS terminal and 2016. The rise was due largely mobile payments, with 12.9 to increased awareness and ac- he National Bureau and 5.2 per cent, respectively. ceptance of internet payment. of Statistics (NBS) The web (internet) was the The number of PoS termi- during the week- least patronised, accounting nals in operation increased by end released its for 2.5 per cent of the total. 3.4 per cent to 125,608 at end of first quarter 2018 In terms of value, the ATM June 2017 above 121,488 in the Treport, which indicated that accounted for 70.9 per cent; corresponding period of 2016. Automated Teller Machine PoS, 14.2 per cent; mobile pay- The PoS transactions increased (ATM) transactions dominat- ments, 12.9 per cent and the significantly both in volume ed the volume of transactions web (internet), 2.0 per cent. and value by 134.8 and 97.8 per in the banking sector. The number of ATMs stood cent to 59.4 million and N610.1 The report showed that at 17,712 at end-June 2017 billion respectively, above 25.3 212,370,853 volume of ATM from 17,083 in the correspond- million and N308.5 billion in transactions valued at N1,568 ing period of 2016, represent- the corresponding period of billion were recorded in the ing a slight increase of 3.7 2016. The rise in PoS transac- first quarter of 2018. per cent. ATM transactions tions in both volume and value A total volume of increased in both volume and was due to increased public 457,226,406 transactions val- value by 40.4 and 38.2 per cent confidence and acceptance of ued at N32.48 trillion were to 366.8 million and N3,046.3 the terminal. recorded in Q1 2018 as data on billion respectively, in the first The volume and value of Electronic Payment Channels half of 2017, above 261.2 mil- mobile payments increased in the Nigeria Banking Sector to encourage customers to courage the use of other cash- 5.8 and 14.1 per cent to 461.8 lion and N2,204.5 billion in the by 6.6 and 83.1 per cent to revealed. use other electronic channels less electronic transaction million and N4,295.9 billion corresponding period of 2016, 24.2 million and N555.8 bil- “It means that the economy like PoS. channels, Ebo said. respectively, in the first half of respectively. lion, respectively, in the first is driven by use of debit cards”, He noted that business The 2017 first half econom- 2017 above 436.5 million and The volume and value half of 2017 above 22.7 million said Ayodeji Ebo, managing owners are discouraged by ic report of the Central Bank N3,764.9 billion in the second of internet transactions in- and N303.5 billion, in the cor- director, Afrinvest Securities high charges on PoS and of Nigeria (CBN) revealed that half of 2016. creased by 113.0 and 44.3 responding period of 2016. The limited. therefor prefer to collect cash the volume and value of elec- A breakdown of e-payment per cent, to 11.5 million and rise was due to continued ac- Ebo said there need for the from customers. There is need tronic payments (comprising channels for the review period N83.7 billion, respectively, in ceptance of mobile payments banking sector to do a lot more to review charges on PoS for ATM, PoS, Mobile payments indicated that the ATM re- the first half of 2017 above 5.4 as an alternative and conveni- enlightenment programmes business owners and to en- and internet) increased by mained the most patronised, million and N58.0 billion in ent mode of payment. Keystone Bank empowers 12-yr-old Ecobank financial inclusion initiatives ICT whiz kid with $4,000 attract Asian Banker awards

eystone Bank Lim- kids but has won numerous nities in which we operate cobank Transnational sophistication of the industry an opportunity to celebrate ited is fast carving a awards in Canada, US and to make a lasting difference Incorporated (ETI) in this region.” He commend- hard work by members of the niche for itself in the UK. She was in Oxford in 2017. through our main pillars: and its two affiliate ed Ecobank for bagging three banking community. He de- financial sector as a Determined not to be left health, education, women countries Nigeria and awards, saying specifically scribed the awards as a wor- Kbank with the best Corporate out of the Yale Young Global & youth empowerment and EGhana recently emerged win- that the Best Transaction thy recognition of Ecobank’s Social Responsibility-respon- Scholars programme, Tomi- employee volunteer scheme.” ners in three strategic catego- Award in Nigeria, West Africa landmark initiatives targeted sive mechanism. sin had in April 2018 written “As a financial institution, ries of The Asian Banker – West won by Ecobank, is a pointer at financial inclusion on the The bank which is loaded to the lender to partner with we make conscious efforts to Africa Awards 2018. that that the bank has re- African continent. He stated with innovative strategies her in her quest and in swift empower the youths as it is The annual awards saw emerged as a strong player that the awards further affirm has again demonstrated its response, Keystone Bank our belief that they hold the ETI emerging the Best Finan- in the Nigeria market owing Ecobank’s leading contribu- commitment to strengthen presented her with the sum future.” Ohiwerei said. cial Inclusion Initiative, Ap- to its digital restructuring and tions to the use of technology educational development of $4000 (Four Thousand Dol- Presenting the cheque to plication or Programme with improved economy. innovations and digital plat- and empowerment of Nige- lars) to attend the program the young girl, Tijjani Aliyu, its innovative Xpress Account, “Ecobank’s aggressive forms for expanding banking rian youths as it promptly slated for July. Chief Risk Officer, Keystone while Ecobank Nigeria carted digital push produced a first frontiers. responded to an appeal by a Brilliant Tomisin, came Bank stressed that beyond away Best Transaction Bank in innovative mobile payments Represented by Korede 12-year-old emerging Nige- into the limelight in 2016 giving back to the commu- Nigeria, West Africa award and solution. Masterpass QR with Demola-Adeniyi, Group Head, rian ICT whiz-kid, Oluwat- when she developed a loca- nities for their support of Ecobank Ghana also won Best MasterCard to push financial Personal Banking, the bank omisin Jasmin Ogunnubi, tion tracking App called ‘My the bank’s activities over Transaction Bank in Ghana, inclusion in Nigeria through managing director stated that to boost her educational Locator’ at the age of 12. the years, Keystone Bank is West Africa. its new, smart, card-less, con- Ecobank Mobile App is a game pursuit. Commenting on the de- embarking on a deliberate Speaking at the award cer- tactless and cashless pay- changer for African banking as Tomisin, a student of Viv- velopment, the Group Man- effort to develop Nigerian emony in Lagos, the Chair- ment solution. This bank also “we using digital technology to ian Fowler Memorial College aging Director/ Chief Execu- youths and empower women man, The Asian Banker, Em- launched an integrated elec- combat many of the financial for Girls in Lagos, was recently tive Officer of Keystone Bank through its sustainability ac- manuel Daniel said, “these tronic banking platform that inclusion barriers faced by accepted by Yale University Limited, Obeahon Ohiwerei, tivities. awards are the most rigorous, has on-boarded four million those on the continent. Our in New Haven, Connecticut, represented by the Chief Risk Yale Young Global prestigious and transpar- customers within a short space app not only removes the USA, to attend the Young Officer, Tijjani Aliyu said: “At Scholars is a highly selec- ent awards programme for of time”. barriers that have financially Global Scholars summer pro- Keystone Bank, our commit- tive academic leadership financial technology, retail In his comment, Charles excluded so many Africans but gram organized for outstand- ment to exceptional services programme for high school banking and transaction Kie, managing director, Eco- offers next generation func- ing high school students. She extends beyond providing sophomores and juniors banking in West Africa today. bank Nigeria thanked the tionality to help them send is the young girl who not only banking services. It includes from around the world aged We recognize the deepening Asian Banker Award Team money, make withdrawals or developed an app for tracking giving back to the commu- between 15 and 17. and increasing maturity and for painstakingly creating pay for goods and services” Wednesday 09 May 2018 C002D5556 BUSINESS DAY 25 Pension Today In Association with New Multi-Fund structure to drive contributor’s choice for PFAs

hen the limits are set for aggregate 50 years and above shall not multi- investments in variable in- be allowed to choose Fund I. fund come securities, for each Also, an active contribu- structure, Fund. tor may switch from one a new The multi-fund struc- Fund type to another Fund initiativeW of the National ture comprises four funds, type within a PFA once in 12 Pension Commission (Pen- which differ from one an- months, without paying any Com), expected to bring other based on overall ex- fees, while Any additional flexibility in the investment posure to variable income switches between Funds of pension funds commenc- instruments, and the differ- within a PFA would attract es on 1st July 2018, contribu- ent Funds’ portfolio mix are a fee, which would be deter- tors will have opportunity designed to fit the ages and mined by the Commission. to make choice of which risk profiles of contributors. According to guideline, Pension Fund Administra- Fund types and the de- there is an investment limit tor (PFA) to remain with. fault mechanism for the which PFAs will have to Though, this is subject to allocation of contributors follow in driving the multi- opening of the transfer win- are as follows:Fund I: For fund structure. For instance, dow as also planned by the young Contributors based not more than 10 percent of industry regulator. on choice; Fund II: For the total value of the RSA The new Multi Fund will young and middle-aged Funds shall be invested in spark up application of ex- Contributors (Ages 49 years securities issued by a cor- pertise in investment of and below); Fund III: For porate entity (equity, money pension funds for effective Pre-Retirees (Ages 50 years market and debt). returns on investment to and above) and Fund IV: For Also, not more than 4.5 contributors. Retirees. percent of any one Fund But the key issue is that The Investment Regu- shall be invested in the or- PFAs would have to think lation allow for contribu- dinary shares of a quoted outside the box, employ tors to make active choices. company, also while not best strategies that ensure However, the following rules more than 10 percent of they create value in terms of shall apply: A contributor in the total value of the RSA returns on investment. Fund II wishing to be as- Funds shall be invested in In other words, while signed to Fund I shall make the issued share capital of a Aisha Dahir-Umar, acting director general of PenCom the PFAs must work within a formal request to the PFA; quoted company. the investment guidelines, A contributor in Fund III Besides, not more than they have to be strategic and become attractive in their active choices) would be Multi-Fund. The Multi-Fund struc- returns on investment to required to make a formal The introduction of the ture would also benefit the There is an retain their customers. request by completing the Multi-Fund investment economy as a whole, as This will be the new necessary forms to be pro- structure for RSA Funds pension assets would be investment limit direction of the indus- vided by the PFA. would address the varying channelled into key areas try, when the multi-fund PFAs on the other hand risk appetite of contribu- of the economy such as structure becomes a real- would be required to pro- tors, as the different funds infrastructure and housing. which PFAs will ity in 1July, analysts have vide contributors with in- are tailored to fit the ages The main objective of the said. formation on the benefits and risk profiles of con- RSA Multi-Fund Investment have to follow in PenCom said during a and risks of the various tributors. structure, is to resolve the seminar for Insurance and funds, prior to approving It will also expand the challenge of asset-liability driving the multi- finance journalist organised any change. scope of allowable invest- risk management experi- by the Commission held Besides, the Commission ment instruments and enced by pension funds and fund structure in Uyo, that effectiveJuly 1, and PFAs would embark on fund classes available to this would be achieved by 2018, all active contributors public enlightenment / sen- contributors and would better aligning the risk and will default to Fund II (for 49 sitization campaign prior also improve returns on return expectations of con- years and below) and Fund to commencement date, pension funds, as mini- tributors as well as better III (for 50 years and above) even as PFAs are currently mal limits have been set matching of pension assets on this date. carrying out the necessary for variable income in- and liabilities; wishing to be assigned to 45 percent of pension assets While contributors that in-house system upgrades struments which gener- It will also lead to diver- Fund II shall also make a managed by a PFA shall be wish to move to a different and processes to ensure ally yielded higher returns sification of pension fund formal request to the PFA; A invested in a sector of the Fund (within the allowable a robust IT system for the over a given period. portfolios, as minimum retiree or active contributor Nigerian economy.

This section is created to increase awarness and deepen knowledge about RC634453 the contributory Diamond Pension Fund Custodian Limited pension scheme. 1A, Tiamiyu Savage Street, Victoria Island, Lagos State. If you have enquiries Tel: 01-4613753, 2713680, 2713954 or contributions, Fax: 01-2713955 send to this e-mail: Email: [email protected] [email protected] Website: www.diamondpfc.com 26 BUSINESS DAY C002D5556 Wednesday 09 May 2018

E-mail: [email protected]

Mohammed Kari, commissioner for Insurance, Nigeria Prisca Soares, executive secretary, AIO African insurance industry set to benefit from economic recovery

Stories by Our industry currently accounts insurers increased their efforts same cake”. to capital and are expected to be Modestus Anaesoronye in Accra Ghana for insurance premiums of US$ to broaden their product offering Insurance rates and profit- acquired or exit the market over 60.7 billion, which in US$ terms and widen distribution. Technol- ability seem to have bottomed time. However, interviewees no represents a decline over the pre- ogy provides new avenues for out Africa’s commercial insur- longer assume that non-African ccording to the 3rd Af- vious year. However, in local cur- innovation, both in commercial ance rates appear to have lev- insurers will outgrow their Afri- rica Insurance Barom- rency premium volume has not and personal lines, and helps to elled-out. A growing number of can counterparts. Protectionism eter, launched today at declined since 2011. In fact, with bridge geographical distances, executives expect rate increases makes it costlier for non-African the 45th Conference & the advent of new technologies increases scale and thus improves in the next 12 months, driven by insurers to grow their footprint in General Assembly of and the ambition of our industry efficiency. stronger economic growth and Africa. As a result of low rates and Athe African Insurance Organisa- to create and deliver tailored Africa’s regulatory framework, the assumption that the regula- rising costs, Africa’s insurance tion (AIO) in Accra, Ghana, the products to clients, our relevance though for the first time in this tor will intervene to maintain markets have become less attrac- Continent’ insurers are slightly as a key sector for the prosperity edition seen by a majority of in- market safety where rates have tive for foreign players. Several more enthusiastic about the cur- and progress of Africa’s econo- terviewees as broadly adequate, deteriorated beyond reason. As global insurers have reallocated rent state and outlook for their mies has greatly improved.” features among market opportu- in past surveys, the profitability their capacity elsewhere, while industry than in the preceding The underlying economic and nities and threats as well. of commercial lines still benefits regional players have been eager two editions. societal fundamentals of Africa’s The introduction or enact- from historically better pricing. to fill the gap. The insurance executives insurance markets remained ment of compulsory insurance In addition, recent claims ex- To increase insurance pen- polled for this year’s survey ex- largely unchanged to last year’s schemes in some markets, as well perience has been low in some etration, African insurers invest pect that the gradual recovery of survey. Abundant natural re- as tighter capital and solvency markets. heavily in marketing to build the continent’s economy from its sources, the young and growing requirements contribute to a Personal lines are considered awareness and overcome a lack deep recession in 2015 and 2016 societies, an expanding middle consolidation and strengthen- to be more stable. Competitive of product understanding or will positively impact on insurers’ class and the advent of new ing of the markets. However, pressure is less pronounced low consumer confidence. In rates and earnings and ease the technologies drive insurance insurers still wish that regulators as brand loyalty is higher than addition, insurers are keen to pressure from excess capacity demand. The recent economic would further promote insur- among commercial clients. In strengthen their talent and skill and fierce competition. recovery – though still fragile in ance awareness and penetration. motor there is some pricing pres- base to take advantage of new “This year’s Africa Insurance some countries – adds further Inconsistencies in enforcement sure due to higher claims, but it product and distribution oppor- Barometer demonstrates that momentum to the continent’s and in certain markets a tendency is unlikely to move rates broadly. tunities. They broaden their offer- confidence is returning to Africa’s insurance outlook. As elsewhere, to overregulate and stall business Profitability has improved slightly ing to tap demand that emerges insurance markets,” says Prisca however, insurance markets initiatives count as weaknesses and is expected to benefit from with the increase of disposable Soares, the secretary general of suffer from excess capacity and while the surge in protectionism economic growth and the po- income and the deeper integra- the African Insurance Organisa- cut-throat competition. As rates seen in many markets remains tential interference of regulators. tion of the African economy into tion. are low, regulators aim to protect a double edge sword to many Africa’s insurance markets the global production chain. As “According to the AIO mem- domestic insurers from foreign insurers. Excessive competition are expected to become more new technology becomes avail- bers polled for this survey, poli- competition with higher barriers has turned into another chal- concentrated. With the intro- able, barriers to market entry cymakers and regulators pay of entry. lenge uniform to Africa’s insur- duction of tighter capital re- have come down. Wider distri- greater attention to our sector The continent’s low insur- ance markets. Many executives quirements, such as Risk Based bution channels provide access while consumers have started ance penetration is one of the regard current market conduct Capital (RBC), larger players are to remote client segments that to realise the benefits insurance market’s largest opportunities. as unethical or irresponsible with better positioned than smaller previously had been too costly or offers in protecting their assets. With the economic rebound, too many players “chasing the players, which have less access inefficient to approach. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 27

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L-R: Kemi Oluwasina, executive director, Business Development & Strategy;Umar Sanda Mairami,managing L-R: Remi Babalola, chair,man of the Company; Jide Orimolade, managing director/CEO and Funmilola director/CEO; Mosun Belo-Olosuga, Independent Director and Kabir Tijani, executive director Business Ekundayo, director at the 49th Annual General Meeting of the Company held in Lagos Development and Investment during Premium Pension Limited 13th Annual General Meeting (AGM) held at the Corporate headquarters of the company in Abuja Insurance penetration gets a boost as Babington-Ashaye Universal brings Nollywood Actors on board reaffirms need for increased awareness to Stories by the National Insurance sense of belonging and has to happen in his time. Modestus Anaesoronye commission(NAICOM) is direction from the current Also asked in affirmative deepen penetration positive to increase pen- team of excos to the mem- what he would do if his etration with a lot of market bers of the body. members fail to comply he efforts to in- development initiatives, Emeka Rollas Ejezie, with the new rule, he as- he president and through Maryland and ter- crease insurance which if keyed in by opera- president of the group sured that after one month chairman of coun- minated at NEM Insurance penetration in tors given a conducive busi- vowed to uphold the tenet of grace those who refused cil of the Char- Plc office on the other side Africa’s most ness environment will make of the AGN in ensuring that to have insurance for their tered Insurance of the road. populated coun- the Nigerian market a major members are safe and in an protection on stage would InstituteT of Nigeria(CIIN), She called on the public Ttry has received a boost player in Africa. event of the unforeseen cir- be barred from appearance. Funmi Babington-Ash- to transfer their risks to in- with signing of partnership The Nollywood Ac- cumstances such a member Explaining the policy aye has reaffirmed com- surance companies, which agreement between Univer- tors have about 150, 000 has something to fall back contents, Ben Ujoatuonu, mitment of the Institute are in business to help sal Insurance Plc and Actors members spread across the on in terms of compensa- managing director/CEO Guild of Nigeria (AGN) for country in its register and tion by insurance service Universal Insurance who and the industry to create them preserve their lives group personal accident provides a good market providers. packaged the policy stated awareness on the impor- and businesses. policy for members of the for selling of insurance for On whether he was sat- that the policy has three tance of insurance for the Babington-Ashaye group. a better benetration. The isfied with a one million features, which include the protection and sustenance noted that the Institute The Group Personal Ac- event, which attracted Who’s naira death or permanent hospitalization, permanent of wealth. places high premium on cident Policy is designed to Who in the Nollywood in- disability benefit per mem- disability, and death bene- She said every effort awareness and education, provide some level of ben- dustry saw the actors ju- ber, he said: “You know fits if the unfortunate occurs put in place to create more adding that, this was why efits to the practitioners for bilating on the unveiling when you are starting to any member of the group. awareness and make the it has continued to donate death, permanent disability of the special package, ac- something there are two I am delighted in the public embrace insurance insurance textbooks to and medical expenses in cording to some of them risks that you are running, sense that we have been as part of their life and schools across the country, the event of a loss occuring. who spoke to the media, the the company is running its able to achieve this by work- Nigeria’s insurance in- development was a dream risk and we are running a ing together with the new a major tool of financial as well as partnered the Na- dustry is pushing to in- come true for actors who risk too. They are not dash- leadership of AGN to ensure planning was a worthwhile tional Youth Service Corps crease insurance penetra- are always exposed to vary- ing us money and we are that we get something that venture. (NYSC) to educate Youth tion, from its less than 1 ing degrees of occupational not dashing them money will add value to them and Babington-Ashaye Corps Members on how percent of the GPD, with a hazards without any form of as well. By the time we give them a reason to be- made the remark during they can build a career in lot of initiatives including compensation. experiment it for one year long to their association, so the 2018 Fitness Walk of the insurance through taking micro insurance, Takaful, They believe that unveil- and see what it looks like, it is encouraging. I am also insurance industry organ- the institute’s examina- agric insurance ad bancas- ing of the insurance cover then we are up it. happy that Universal Insur- ised by the CIIN. tions. surance. for them symbolized unity He said he was delighted ance was able to work this She said the event was She appreciated organi- Industry regulator, of purpose and provided and overwhelmed that this out for the group. also an opportunity to sations for supporting the make insurance practition- fitness/road show and en- ers appreciate the need for joined them to sustain the Law Union and Rock grows profit by 66%, pays dividend physical and mental fitness oneness observed during through exercise. the exercise. “It is an annual event, The Chairman of the nderwriting firm, N1.099billion was achieved N24 million recorded in appointment have been ap- Law Union & In- compared to N659million 2016. In recognition of this proved by the NAICOM. but we want our members event, Ajibola Ogunshola, surance Plc de- recorded in 2016 which performance, the Company The Managing Director to make a daily routine be- who is the Chairman of spite the tough indicates a steady perfor- declared a cash dividend of the Company, Jide Orimo- cause it is good for the body Continental Reinsurance Ubusiness environment in mance improvement of our of 4Kobo per share for the lade in his speech said that and the heart. And given Plc, urged the operators to 2017 grew profit by 66.8 Company. Total assets grew financial year. the Company will not relent the sedentary nature of our regularly observe fitness percent and paid dividend by 16.9 percent to N10.03 Babalola said the compa- in delivery of the best service job, where most a times we exercises and ensure they to shareholders. billion from N8.58 billion ny is stronger, better, bigger to the customers. According sit from morning to night, it eat well. Remi Babalola, chairman posted in 2016 financial and more than ever before; to him, the loyalty of the cus- was important that people Ogunshola, who is 75 of the Company said the year with a 28.6 percent with one of the highest rat- tomers were very instrumen- company recorded good growth in shareholders’ ings in Claim Paying Ability tal to the consistent growth do regular exercises for fit- years old, joined the op- performance in 2017 with funds from N5.03 billion to (CPA) in the industry. of the Company’s topline ness of the body and also erators in the walk which 8 percent growth in its top N6.47bilion. The Chairman also pre- in the past few years which for mental alertness.” commenced from Sterling line, from gross premium The company also re- sented the new Executive Di- has enable the company to The Fitness Walk com- Assurance Limited office, of N3.94 billion in 2016 to corded a giant feat in its gen- rector, Technical/Operations eliminate its accumulated menced from Sterling through Maryland and ter- N4.25 billion at the end of eral reserves with retained Olasupo Sogelola and Kunle loss and able to cross to a Assurance Limited of- minated at NEM Insurance 2017. earnings of N704 million Aluko (non-executive direc- positive retained earnings fice along Ikorodu Road, Plc. The Profit before tax of from accumulated loss of tor) to the shareholders. Both in 2017. 28 BUSINESS DAY C002D5556 Wednesday 09 May 2018

SHIPPING LOGISTICS MARITIME e-COMMERCE Hapag-Lloyd grows market presence in Africa as it opens office in Ghana …Port expansion in Tema leads to further growth in Ghana

Stories by On why the choose Ghana to Europe through what are UZOAMAKA ANAGOR-EWUZIE ahead of other West African now two services: the West economies to situate the head Africa Express (WAX: Ham- office, he said that the GDP of burg – Casablanca – Tangier apag-Lloyd, a West Africa has grown signifi- – Dakar – Tema – Abidjan multinational cantly in the last two years, ris- – Tangier – Antwerp – Ham- German-based ing by an average of 6 percent burg) and the Mediterranean shipping com- but Ghana numbers among West Africa Express (MWX: pany, has ex- the fastest-growing econo- Tangier – Algeciras – Coto- Hpanded its market presence in mies in the region. nou – Lagos (Apapa & Pipan) Africa as it recently celebrated “This growth is primarily – Tema – Tangier). the official opening of its new driven by the trade in gold, but Both services will call office in Tema, the most -im also in oil and gas products. at the port city of Tema, portant port city in Ghana. Among Ghana’s most impor- which is not far from Ghana’s Beginning immediately, West Africa is showing initial ing with extraordinary success have entered another new tant export goods are cocoa, capital, Accra. Plans call for the management of Hapag- signs of success,” Anthony for several years and is very trade. As a result, we are ty- timber products and cashew the port’s annual handling Lloyd said the company will Firmin, chief operating officer well received by customers. ing Africa even more closely nuts,” he pointed. capacity to be tripled by manage most of its opera- (COO) of Hapag-Lloyd, said. “With our new East Af- to our global network while Hapag-Lloyd has mas- mid-2019, from 1 million to 3 tional activities in West Africa According to him, Hapag- rica Service (EAS), connect- benefiting at the same time sively expanded its presence million TEU. Hapag-Lloyd is from the new office in Ghana. Lloyd’s West Africa Express ing all major trades globally from positive economic de- in Africa over the last two expecting additional growth “We are very pleased that (WAX) service from and to via our hub in Saudi Arabia velopments in large parts of years and established a fast opportunities from this ca- our enhanced presence in West Africa has been operat- with Kenya and , we Africa,” he added. connection from West Africa pacity expansion. APM Terminals reiterates commitment to workplace safety INTELS builds ICT capacity, gives out computers PM Terminals Apa- ty is the license to operate. reaffirmed the company’s pa Limited, Nigeria’s This year, we have decided to commitment to the safety of to less privileged children leading container hold the safety day in com- its employees, adding that s part of its Cor- port operator, has mon with our other brands everyone across the shipping porate Social Re- Areiterated its commitment to portray our new theme, and logistics value chain have sponsibility (CSR), to enhancing safety at work- which is “Stronger and Safer vital roles to play in avoiding INTELS Nigeria place, as it celebrated the 2018 Together”. unsafe behaviors. ALimited, Nigeria’s oil and gas Global Safety Day. “We want all the people “We are all responsible for logistics giant, has reached The Global Safety Day is an that come to our premises the safety of ourselves and our out to the less privileged annual international aware- to be safe and for them to go colleagues at sea, shore, In- children in the society. ness-raising campaign geared back same. So, we would con- land Container Depot (ICD), INTELS has also given 12 towards promoting safe and tinue to focus on developing terminals and onboard ves- fully operational computer secure working environment our safety standards as well sels. For us at Maersk, con- systems with access to broad- for workers. as training and educating our stant care is one of our core band internet to the children Ngozi Kingsley-Opara (5th r), INTELS ICT training specialist; Speaking at the event, people, including truck driv- values, as well as making sure of the Compassion Centre, Ugochi Chukwu (r), coordinator, child welfare unit of the Martin Jacob, managing di- ers. Having truck drivers out- that our colleagues are safe. Port Harcourt in Rivers State. Compassion Centre and some children of the Compassion Centre rector of APM Terminal Apa- side their cabin is a big issue Tohouo said that global The children are also be- undertaking ICT training, recently. pa, said that safety has been because globally, that is where safety day enables the compa- ing trained on Information the company’s watchword you have more fatalities when ny to reaffirm its commitment Communication Technology a sure way of preparing the and learning packages avail- over the years and assured you have people outside their and remind its staff about the (ICT), sponoured by INTELS less privileged children for a able to students to aid their that APMT would continue safe working zones,” he said. very important values around to prepare them for a well- brighter future. study. Our desire is to bring to focus on enhancing safety Also speaking, Gildas safety. rounded future. According to her, INTELS online libraries and other standards. Tohouo, managing director “We do not joke with safe- The Centre, which has has also provided internet global learning resources at “For APM Terminals, safe- of Maersk Nigeria, equally ty. It is at the centre of our received series of support services at the Centre be- the disposal of the children. It operations. If you do not tell from INTELS in more than cause “the internet today is our belief that their physical people about it, then you do three decades, was estab- has undoubtedly become a challenges or humble back- not make them think about lished and managed by the huge part of our lives and we grounds should not deprive it. We hold ourselves account- Religious Sisters of Charity. cannot afford to leave these them of readily available learn- able to it and every member of It was set up as a home to precious children behind”. ing resources. They should not our staff goes through train- support, educate and reha- She said that the children be deprived, by any means, of ing on safety to highlight the bilitate physically challenged stand to benefit tremendous- the opportunity to belong to importance of safety to our children in the society. ly from the new computer the future,” she explained. operations,” Sesan Ibitoye, “We have successfully centre and the knowledge Kingsley-Opara noted country manager of Damco, started the ICT training at of ICT in the course of their that INTELS is holding the said. the Compassion Centre. The studies because the world of ICT training twice a month to Other stakeholders, who management of the home computers is packed full of cover all classes and children attended the event, com- has commended Intels for useful information and new at the home. mended APM Terminals the social services rendered knowledge. “We run two sessions of Apapa for maintaining a high and promised to ensure that ICT, Kingsley-Opara stat- training, morning and after- level of safety and security in all their pupils take full ad- ed, is important in a child’s noon, each training day to be its operations. vantage of this unique oppor- educational pursuit because able to cover much ground. Remi Ogungbemi, chair- tunity,” Ngozi Kingsley-Opa- studies have shown that it The primary six pupils have man, Association of Maritime ra, ICT Training Specialist at enables children gain knowl- only this term remaining to Truck Owners (AMATO), said INTELS Training Academy, edge faster and attain learn- stay in the Centre. So, we have that since inception, APM said. ing independence. decided to pay more atten- L- R: Martin Jacob, managing director, APM Terminals Apapa; “Students now use com- tion to them to enable them Gildas Tohouo, managing director, Maersk Nigeria and Sesan Terminals has been at the Kingsley-Opara further Ibitoye, country manager of Damco, cutting the cake to mark the of promoting safety, said that the latest donation puters and the internet as gain more computer skills 2018 Global Safety Day organised by APM Terminals Apapa in which has helped reduce the of computers and free ICT source of education. There are before they finish,” Kingsley- Lagos recently. rate of accidents at the port. training by the company is several online programmes Opara added. BUSINESS DAY C002D5556 Wednesday 09 May 2018 29 NRC committed to resolving ticket racketeering Page 31

5th-generation Sportage overtakes Accent tests B-segment Rio as MEA markets brand’s best seller Page 30 Page 30

Dealership takes ABRO auto care to buying public …As Ford Escape makes local debut n its quest to deliver the ultimate automotive showcase, Coscharis IMotors, owners of the Ford brand franchise in Nigeria is joining other stakeholders at this year’s edition of the Lagos Motor fair which holds from Monday, May 7 to this Saturday May 12, 2018 at the , Victoria Island, Lagos. The franchisee’s participation in this year’s edition will be in three folds; by showcasing her entire ABRO auto care products, the Ford brand portfolio and particularly reveal the all new Escape 2018/19 model, which currently defines the Ford design di- rection. Abiona Babarinde, general man- Service centers must deepen technology interface ager, marketing & corporate com- munications, Coscharis Group, said Coscharis is not only showcasing the …To protect car owners from undue extortion current Ford product lines, but more level. The reason is simple and un- ecommunications provider. and the customer can get in touch importantly keen to reveal the lat- Stories by MIKE OCHONMA derstable as cars are getting smarter These cards are used to relay with a mechanic straight away. est model of the Ford Escape, which every year. technical information which can For some dealer workshops for is presently receiving great reviews In some parts of the world, con- even include the number of occu- instance, whenever a car comes in globally’. here are very strong in- nected cars in some parts are already pants in a car, while sensors detect for repair, replacement components dications that many fleet communicating with dealer networks how many airbags are inflated if the are already in stock. “This enables operators and individual and these days, a mechanic is more vehicle is involved in a road accident. the entire workflow in the workshop car owners are being likely to use a laptop to search for mal- Data can flow automatically, but to be streamlined and the customer short-changed by both function codes than pull out the dip- only if a car is equipped with e-Call, can expect a detailed cost estimate theT road side mechanics and even stick to check the oil level in the engine. a feature which allows the vehicle to over the phone before the car arrives. the so-called established and pur- During a car inspection, techni- call the nearest emergency centre The technology in modern cars portedly well-equipped auto work- cians regularly gain access to the after a crash, even if no passenger is are so advanced these days that shops. various vehicle subsystems by plug- able to speak. some components makers like Con- “Featuring about 10 Ford variants It is even more worrisome these ging into the on-board diagnostic For instance, the e-Call system is tinental predicts that cars will be able in our stable, we will use this auto fair days and times when the cost of used interface. In future, drivers will have due to debut in Europe from 2018. In to warn about impending faults, be- to reward our ever loyal customers and new car ownership in terms of access to more detailed information every other case, the car owner must fore they happen. and prospects with price discounts; parts replacement and services is about faults without having to go give his or her permission for the use In contemporary cars, warning special aftersales Ford Protect service climbing the roof-top without any pos- straight to the repair shop. of data transmitted or received via a lights indicate malfunctions that and maintenance packages, which sible sign or prospects of reduction. Volkswagen for instance was SIM card. have already occurred and must offers up to 8 years manufacturer Experiences of vehicle owners the first carmaker to introduce an The umbrella term for all this data prompt owners to seek the nearest warranty on Ford cars; and other Af- have also shown that that almost of on-board scanning system in 1968 trickery is telematics and if a driver garage for an immediate repair. tersales offerings to ensure that own- regularly basis, they don’t get satis- and the current standard is OBD II. agrees to the exchange, the car and Both locally and internationally ership comes with peace of mind.” faction for services paid for. It is ei- Many modern cars now have their its periphery can enter into a useful at present, there is no standardised Abiona went further, “The Escape ther that proper and comprehensive own SIM card - like the one used dialogue. BMW already sends out telematics platform which every ga- is available in S, SE and range-topping checks have not been carried out on by mobile telephones. This means online updates for its navigation sys- rage is permitted to use, so owners Titanium specification levels, with these vehicles to the most critical that they can communicate with the tems instead of using hard storage are usually forced to approach an of- 1.5-litre EcoBoost engine and choice details or that, the necessary tools re- workshop. such as a DVD. ficial dealership of their brand. of FWD manual or AWD automatic quired auto dealerships workshops “These are often SIM cards which Cars can send their malfunction “The work done on cars in garag- designed to be the market leader in are not there. are not suitable for speech commu- codes to the local workshop which es will not change a lot in future, but its segment. Despite serious com- These days, modern workshops nication, but rather for transporting helps diagnose on-board faults more there is much scope for the develop- petition from several other brands, are supposed to be more likely to large amounts of data,” said Nicolaus quickly. If particular codes are given ment of tools and services,” said Ul- our target will be to position it as the search for malfunction codes than Gollwitzer, head of the global tele- priority, the car can then transmit rich Koester of Germany’s ZDK car benchmark, as quite a bit of work has pull out the dipstick to check the oil matics division at the Vodafone tel- these to a workshop automatically repair shop federation. been done on the car to upgrade it.” ABC Transport plc takes stock at 25 years and boasts of staff strength of more than 2000 while …Pays N836.15 million to shareholders its business holding spans across passenger opera- t was a day of stock taking by the Nneji, managing director and chief tions, consolidated cargo and haulage services, shareholders, employees, cus- executive of ABC Transport plc. hospitality and tourism. tomers, financiers, suppliers, He described the journey of the As part of its business diversification and using I its technical and financial team, ABC Transport partners and business associates transport company a s astory of inno- of ABC Transport plc last weekend vation and a true testimony of what plc was able to revive the erstwhile moribund An- when the only publicly quoted com- a group of people can achieve when ambra Motor Manufacturing Company (ANAM- pany on the Nigerian Stock Exchange they decide to improve on their way MCO), Enugu, where it produces heavy duty trucks rolled out the drums in Owerri, the of doing things. and buses through its Transit Support Services capital to celebrate its 25 Nneji recalled that having com- Company Limited subsidiary. years of transportation business. menced operations on February 13, Apart from the corporate achievenments men- On hand to take a nostalgic look 1993, ABC Transport operates from tioned above, Frank Nneji disclosed that, ABC at the company’s scorecard before an more than 35 locations and travels to Transport plc have also impacted very positively on assemblage of guests drawn from the over 100 locations daily within and the community in many ways. Since 2006, the com- the government, business communi- outside Nigeria with not less than 500 pany have paid a total dividend of N836.15million ty, the academia and the private sec- vehicles in its fleet. to shareholders. L-r:FRSC Corp Marshal representative with Frank Nneji, MD/CEO, ABC Transport Plc tor was no other person than Frank The ABC group has 3 subsidiaries during the Silver jubilee celebration of the company in Owerri, the Imo State capital Continues on page 34 30 BUSINESS DAY C002D5556 Wednesday 09 May 2018

Toyota target future without mass-market cars …Tests next-generation vehicles early 2020s. oyota, one of the which can be used as buses, world’s largest au- mobile shops or moving of- Ttomakers which for fices. years has focused on building Meanwhile, the ability reliable, fun to drive cars, is for cars to drive themselves now also looking beyond per- in the future, along with sonal-use vehicles to survive the development of electric in an industry which is being cars, will be a game-chang- transformed by the onslaught er for vehicle design, Hum- of electrification, automation phries said, as it will elimi- and other new technologies. nate the need for steering As sharing services change wheels, engines, petrol car use and ownership, Si- tanks and other traditional mon Humphries, Toyota Mo- parts, enabling more flex- tor Corporations’ new design ibility to design vehicles chief have faith that vehicles which are more fit-for-pur- 5th-generation Accent tests MEA markets will shift towards either ge- pose. neric boxes on wheels for “At the moment every- MIKE OCHONMA including an increased distance el is laid out in a horizontal design between the front and rear wheels, with buttons and controls logi- everyday use or ultra-luxury thing in a car from a design uilding on the giving occupants more leg and cally grouped by function. Other cars, wiping out the need for point of view is based on a strengths of the pre- shoulder room. convenience features available vious models with The design exhibits confidence include a proximity key with push Hyundai’s latest de- and sophistication, delivering a button start, dual USB charging, sign and engineering new interpretation of the brand’s and auxiliary input jacks. Binnovations while also maintain- design language. This includes Standard safety features in- ing Accent’s unbeatable value Hyundai’s signature cascading clude electronic stability control, proposition for buyers, Hyundai grille with a design element that is traction control and anti-lock has removed the veil off the fifth being introduced across the prod- brakes, as well as emergency generation of its popular Accent uct range. stop signal, which automatically small car in Africa and Middle Accent’s grille is flanked by flash the brake lights when the East markets. wraparound headlights and op- driver brakes heavily. Available Highlights of the new model tional LED signature daytime options include a six-airbag sys- include a completely new ex- running lights, while sharp char- tem, static bending headlights terior design and comfortable acter lines run the length of the to provide better illumination of high-tech interior. More efficient car to the slim LED wraparound the road through corners, and powertrains deliver an outstand- tail lights. auto cruise control. ing combination of performance The interior continues the Comparatively, the body is mass-market models. 100-year old package of en- and fuel economy, with a choice modern, confident, sophisticated stronger than the previous mod- Humphries, responsible for gine in the front, and a driver of 1.4-liter or 1.6-liter engines, in- theme of the exterior, blended el, with torsional rigidity im- design at the Toyota and Lexus holding a steering wheel be- cluding a diesel available in some with a driver-oriented layout, in- proved through the increased use brands, said that fleets of elec- hind. When you don’t have markets, matched to a six-speed tuitive controls combines with im- of advanced high strength steel tric, self-driving shuttle bus- to hold a steering wheel, the transmission in either manual or proved interior roominess, high- and structural adhesives. The car like vehicles could one day world is your oyster’’. automatic. quality materials and premium features several improvements to eliminate the need for people For Humphries, Toyota is Other advances include re- technology features. Premium, the front side members and inner to drive themselves around on going going to see this op- duced cabin noise and remarka- soft-touch materials in key points side sill for improved collision a daily basis. This could one timized (transport) system, create an inviting and comfortable protection. bly improved driving dynamics, day make some of its models but on the other side, will be both helped by a stronger body- environment for the driver and The front crumple zones have shell and a selection of the latest passengers. been increased, front side airbags obsolete down the line. a pure race car. “There will be safety and convenience features A wide instrument panel have been upgraded, and rein- As automakers compete to an emotional solution, and a offered either as standard or as prominently features a standard forcements have been added to come up with new, profitable practical solution. So maybe options. backup camera system via the improve the car’s collision energy transport services, Toyota last the story is that the middle It is also slightly longer and touchscreen LCD display. Be- management performance, espe- month showed a self-driv- ground is increasingly going wider than the previous model, neath the screen, the control pan- cially in small overlap crashes. ing electric concept vehicle to disappear.” He stated.

ABC plc takes stock... Sportage overtakes B-segment Rio as brand’s best seller Continued from page 34 ia Motors is celebrating The fourth and current one With a job creation profile of over five million cumulative features a bold, progressive de- 2000 employees out of which 1000 of Ksales of its global best-sell- sign, while offering greater prac- them are from Imo State, ABC Trans- ing Kia Sportage compact SUV. ticality and an array of comfort, port plc have built classroom blocks Launched in 1993, and span- convenience and safety tech- in various local communities of Imo ning four generations since, the nologies. Its engine and trans- State, sponsored automobile depart- mission line-up also provides ments of Trade College, Owerri and model achieved this milestone Ahaiara Technical School with dona- on its 25th anniversary. The latest enhanced efficiency and perfor- mance to address a broad range tion of automobile engines and other model, launched in 2016, is more resources. popular than ever, with average of customer needs. Few years ago, the transport global sales of 38,000 units per Sportage has historically been company donated luxury buses for month in 2017. acknowledged for the strength of technical teaching in mechanical en- In 2016 and 2017, the Sportage its design, having been awarded gineering departments of Imo State surpassed the B-segment Rio ‘iF Design’ and ‘red dot’ design Univeristy, University of Nigeria, as the brand’s global best-sell- prizes in both its third and fourth Nsukka, Federal Polytechnic Nek- ing model. Strong sales of the generations. ede, and . According to the company CEO, Sportage in January and Feb- was introduced to consumers for tion Sportage totalled 1,223,776 Since 1993, the Sportage has become a benchmark car in the a logistics training through its Driver ruary 2018 posting 36,632 and the first time. It set the blueprint units globally after seven years of Training Academy have been pro- 32,930 units respectively which for a compact, practical SUV, production. The third-generation compact SUV segment, and its vided, with a strong work force of lo- contributed to the model’s pro- suitable for use in a variety of en- model surpassed one million success has also led to the crea- gistics personnel from Imo State, and duction landmark. vironments. First generation was sales in just four years, helping tion of a diverse and comprehen- have continued to provide over 50 Its first appearance was at the an instant hit, recording total life- the Sportage reach two million sive range of SUVs and crossovers industrial training placements yearly 1991 Tokyo Motor Show, when time sales of over 500,000 units. cumulative sales during its sixth from Kia with other new models for students in universities and poly- the concept of the ‘Urban SUV’ Sales of the second-genera- year in production. to follow in future. technics over the years. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 31

Local and global rail news as it breaks

Bechtel to support Texas NRC committed to resolving ticket racketeering high-speed project exas Central announced …Moves to narrow shortlisted firms to two last week that it has ap- pointed Bechtel to pro- Stories by MIKE OCHONMA T vide project management ser- ith the failure of the vices for its scheme to develop March 2018 proposed a privately-funded high-speed Wtake-off of the e-ticketing line linking Dallas and Hou- system by the Nigerian Railway ston. Corporation (NRC), authorities at It would be recalled that in the corporation said, it is commit- August 2017, Texas Central se- ted looking for the best consultants as ticketing agents. lected Fluor Enterprises and Only recently, Ben Iloanusi, The Lane Construction Cor- head of procurement, Nigeria Rail- poration, a subsidiary of Sa- way Corporation disclosed that lini Impregilo, to support the out of the total of 12 shortlisted planning and implementation companies that submitted pro- of the scheme. WSP is also posals, those with the best pro- providing engineering sup- posals would be selected for com- port. mercials. He said the process was Texas Central says it is transparent from the beginning working with the three com- and it would continue throughout. R-L; Fidet Okhira, managing director, NRC, Rotimi Amaechi, minister of transportation and an official of the Chinese panies to refine and update However, there are very strong Civil Engineering & Construction Company (CCECC) at the Idu Railway Station, Abuja, Nigeria’s federal capital. indications that only two compa- construction planning and nies may be selected at the end of sequencing, scheduling, cost The transport minister added the day in line with the scope of the “We want to get a secured back- and defend them. After this we will estimates, and other design that, sacking all officials would put railway services cutting across the bone to be handled by secured now do an evaluation based on our a stop to workers nonchalant at- entire country. company. I understand the need scope of service and their defence. titude toward work and stop ticket It would be recalled that the for cyber security, so latest by end Worried by the embarrassing racketeering in the stations. NRC had in August last year adver- of March it will commence nation- report of ticket racketeering, Roti- Currently, the NRC runs train tised for companies to apply for the wide, and we are presently doing mi Amaechi, minister of transpor- services across the country includ- ticketing contract following which presentations’’. He stated. tation ordered the removal of sta- ing the hugely patronized Abuja- over 1000 companies applied. When completed, it is expected tion managers, porters, and ticket Kaduna standard gauge service, According to the advertorial, that the secure ticketing solutions officials at Idu and Rigasa rail sta- the Lagos-Kano express train, pas- the contractors were to express would boost the revenue genera- tions over alleged ticket racketeer- senger services within Lagos and interest for “Designing, Develop- tion drive of the corporation and ing. Ogun axis, among others. ment, Deployment and Manage- guard against any form of leakages Amaechi said that the directive Few years ago, there are fears and engineering activities un- ment of Secure Ticketing Solution while giving room for ample invest- has become imperative follow- that the federal government’s ef- der the guidance of the Fed- on an investment basis for the NRC ment in the sector, an employee of ing complaints of passengers over fort towards rehabilitating the rail- eral Railroad Administration’s Rail Services”. NRC said. racketeering of VIP tickets at the way sector may not yield any posi- At the beginning of this year, With the process still on-going, stations. recently-released Draft Envi- tive result as a result of poor service Fidet Okhiria, managing direc- what the NRC has done so far is He told reporters during his ronmental Impact Statement delivery. tor, Nigerian Railway Corporation to have shortlisted or prequalified visit at the Idu station that, “I am on the project. Investigations revealed that (NRC) said the organisation would companies that met our original removing the station managers in The 390km line will link poor service delivery by staff of the commence web-based ticketing prequalification criteria. Idu and Rigasa. The porters and the Dallas/Fort Worth area Nigeria Railway Corporation, in nationwide to solve the challenge Now, the next stage is that the 12 ticket officials will be removed let’s addition to inadequacy of coaches with Houston in around 90 of racketeering in stations. companies selected have written see if it will resolve the complaints to meet demands, poor manage- minutes, with a single inter- The managing director was to submit their detailed proposals of passengers using the rail. ment issues like inability to control mediate station in the Brazos quoted as saying that, “NRC have tailored to NRC solutions and that “Some of them have com- the crowd and allowing touts to valley. The project will be im- advertised for people to submit closed last April 30. plained on social media, I believe infiltrate the ticketing process are plemented without federal or their interest and we have gotten so “What they are doing now is that if any system fails, it is because hampering federal government’s many companies showing interest, they are coming one by one to pre- the leaders allow it to fail and I will state support for construction, rehabilitation efforts. so we can have many vendors’’. sent their detailed solutions to us not allow that. operation or maintenance. British Steel builds new rail mill First train for Dakar TER on test ritish Steel has started ynamic testing of the around 115,000 passengers a day, construction of a new rail first Coradia Polyvalent with a 46-minute journey time mill in Scunthorpe, Brit- Dbi-mode (diesel/25kV ac between the terminus stations. B electric) multiple unit for the Da- Each 72m-long four-car will ain, to produce Zinoco-coated rails up to 108m long and welded kar Express Regional Rail (TER) accommodate around 400 pas- rails with a maximum length of project has begun at Alstom’s sengers. The trains are equipped 216m. This follows approval by Reichshoffen plant in eastern with D2676 LE264 diesel engines Network Rail (NR) of its Zinoco- France. supplied by MAN. coated long rails. The fleet of 15 160km/h trains The single-stage turbocharged British Steel says its Zinoco- will be used on the 57km stand- and common-rail engines have coated rails are designed to ard-gauge line from Dakar city a maximum output of 353kW withstand installation in highly centre to Diamniadio and the at 1800rpm. Alstom says it will corrosive areas such as coast- new Blaise Diagne International carry out around 6000 serial tests al railways, wet tunnels, level Airport (AIBD) near Ndiass. The and 50 validation tests before the crossings, mineral lines and salt 14-station line is forecast to carry train is shipped to Senegal. pans. “Zinoco offers superior cor- rosion protection compared with all current rail coating tech- nologies on the market, so we’re delighted NR has given it full product approval up to lengths facturing.” give them greater integrity as well of 216m,” says Peter Smith, Brit- British Steel designed Zinoco as accelerating installation. ish Steel’s managing director rail. in cooperation with NR and ini- Over the last 18 months long- “We’re the only supplier in the tially produced the rails in 18m er rails have been installed in world able to deliver corrosion- lengths before trials were con- tunnels near Bristol and in Fife, protected rail at this long length, ducted with longer lengths. Brit- Scotland, culminating in NR ap- so this is a great success story, not ish Steel says the reduced num- proval. The new mill will be com- only for us but for British manu- ber of welds in the longer rails missioned this autumn. 32 BUSINESS DAY Wednesday 09 May 2018 Leadership SHAPING PEOPLE INTO A TEAM What marketers should know about personality - Based marketing

ance on transparency. And, of course, CHRISTOPHER GRAVES businesses must comply with the law. ommunicators and mar- keters can now adopt a PUTTING PERSONALITY MAR- more personalized ap- KETING IN ACTION proach to their work, ide- Given the promise and accessibil- ally one based on behav- ity of this new form of communication, Cioral science. But the execution lags how should marketers get started? behind the science, while the claims In our experience, the first step is of some marketers as to what per- to understand the challenge or goal sonality marketing can do far exceed you’re trying to achieve. Is it to align it. Moreover, public controversies employees with corporate goals, or like the Facebook and Cambridge to promote smoking cessation, or to Analytica stories threaten personal- increase uptake of vaccinations, or to ity marketing’s potential before it has change consumer behavior, or better really matured. segment consumers by what really For marketers, communicators, motivates them (which they cannot and even public health agencies look- articulate)? ing to promote healthier behaviors Next, identify the cognitive biases in large populations (diet, nutrition, and heuristics that serve as barriers exercise, quitting smoking), the po- or drivers along the way to achiev- tential payoff of using personality test takers. If insights about people’s in 2012), computer algorithms were successful in the context of health care ing the goal. (The Ogilvy Center for science is to better match how you psychological makeup could only be better at judging a person’s personal- and health communication. We know Behavioral Science has built a tool to engage individuals by their personal- gleaned at relatively small scale, how ity than their co-workers, friends, and that people show higher compliance navigate thousands of studies in order ity profile, and to predict behaviors by could marketers and communicators even family members. rates when receiving messages that are to surface the relevant biases.) Map personality traits. No marketer wants leverage such insights on millions and customized to their individual moti- the biases to steps along the consumer to present a message that is off-key or millions of potential customers? WHY USE PERSONALITY MAR- vations, and we also know that such (or patient) journey. Doing so will help even irrelevant; personality science Only about five years ago, the KETING? messages help in changing a number you identify steps along that journey offers the chance to empathize with newly established field of compu- Again, the theory is that if you can of cancer-related behaviors, includ- where creative communications or individuals, and engage them with the tational social science provided an match the tone and framing of the ing smoking, dieting, exercising and content can help consumers over- message, advertisement, or content in answer: digital psychometrics. Instead communications or marketing with regular cancer screenings. What if we come specific biases or other hurdles a way that is more likely to resonate. of relying only on people’s responses the personality profiles and thinking could not only increase the chances to a decision or new behavior. to self-reported questionnaires, sci- styles of potential customers, patients, that a customer buys a handbag, but Once you have a strong under- HOW DO YOU TEST CONSUM- entists started using people’s digital voters, or those whose behavior you’d improve their quality of health or the standing of the customer journey, ERS FOR THEIR PERSONALITY footprints — their Facebook “likes,” like to change, you can boost effec- uptake of flu shots or vaccinations by you can run a personality test and PROFILES? tweets, browsing histories and more tiveness. tailoring the messaging to different combine it with other data to reveal Until very recently, the assessment — to make inferences about their per- For example, look at retail shop- personalities and cognitive styles? correlations between personality traits of psychological traits (also known as sonality (with their consent). Studies pers. Some do not particularly like and certain behaviors, preferences or psychometrics) was almost insepara- compared large groups of individuals’ shopping. They take a functional THE ETHICS OF PERSONALITY mindsets. bly tied to the use of questionnaires. traditional personality questionnaire approach. It’s a chore. They are not MARKETING The final step — and the “art” of Ranging from just 10 to more than responses with those same people’s wedded to brands and are motivated The essentials of gathering and personality marketing — is to craft 300 questions, these questionnaires social media behavior to see if their by price. Psychologists call them using personality traits ethically the messaging, advertising or content ask respondents about the extent to personalities could be accurately in- “utilitarian” shoppers. Meanwhile, should follow the general guidelines to match different personality profiles which they agree to statements such ferred merely by decoding their digital “hedonic” shoppers enjoy shopping of other behavioral science research while also considering the stage of the as “I am the life of a party” (Extrover- footprints. and love brands and join loyalty pro- regarding consumers, employees or customer journey at which you plan to sion) or “I get chores done right away” Based on large data sets containing grams. They identify with brands and patients. They include: transparency engage. This isn’t easy, by any means. (Conscientiousness). While such both people’s responses to traditional may use them to signal who they are of intent and usage; abiding by privacy But it offers the opportunity to create questionnaires provide researchers psychometric questionnaires and the and what they stand for. They may laws and regulations; and aligning the most effective and empathetic with an easy and pragmatic way information captured on their Face- look identical when viewed through researcher/marketer interests with messaging with different groups of to measure people’s psychological book profiles, researchers were able traditional demographic data, but those of respondents (in other words, customers. profiles, they are prone to uninten- to identify empirical relationships you would be sorely mistaken to treat helping them rather than exploiting tional misrepresentation, especially between specific digital footprints and them the same way. Certain personal- them). in certain contexts outside of the specific psychological traits. For exam- ity profiles correlate with utilitarian That last principle is the right lab. For example, no job candidate ple, certain correlations arose between versus hedonic shoppers. So, if you starting point for marketers: is your (Christopher Graves is the founder in their right mind would indicate liking a certain kind of music or food can know shoppers’ personalities, you use of personality research actually and president of the Ogilvy Center for “strongly agree” to the statement “I and specific personality traits. The can customize how you engage them. making your customers better off, or Behavioral Science. Sandra Matz is make a mess of things.” Plus, these more content, the more accurate the But these findings are not limited just helping you? As the field evolves, a computational social scientist and questionnaires were difficult to scale assessment. Using Facebook “likes” of to retail shopping. In fact, tailored marketers should look to the research an assistant professor at Columbia up beyond a few hundred or thousand Americans (around 250, on average, communication has proved highly community for inspiration and guid- Business School.) c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate Wednesday 09 May 2018 C002D5556 BUSINESS DAY 33

CITN20th Annual Tax Conference Live coverage of the 20th Annual Tax Conference of The Chartered Institute of Taxation of Nigeria ‘Our focus is to develop tax paying culture among Nigerians’ Nigeria’s is at crossroads in its revenue generating drives: oil prices are unsustainable but Africa’s largest economy has a weak tax system. In this interview, OKOROR JUSTINA ADAKU, chairperson, organising committee of the 20th Annual Tax Conference of the Chartered Institute of Nigeria (CITN) promises participants insight into tax practice. She spoke to IHEANYI NWACHUKWU and STEPHEN ONYEKWELU. Excerpts:

he forth coming 20th Tax How about security, what arrange- of this size, how are you dealing Conference is the larg- ments do you have to ensure with it? We are not collecting money for ac- est tax event in Nigeria. participants are safe? Well, we do not have security chal- commodation. We have asked every- What should we expect, lenges in Abuja for now. Meanwhile, one to make their own arrangements. any new features? It is still a gathering of tax profes- in Nigeria anything you do you have You know, because of the economy, the sionalsT but this year we will have many to make arrangements for security. So, standard of hotel we will want to use as in attendance who are not tax profes- we have made arrangements. We will an institute, some members might not sionals. They want to come and learn have security personnel on ground and be able to afford it. Some might want a because tax is becoming front burner other provisions. place of N5, 000 per night. Some might issue in Nigeria. want a place of N6, 000, others N10, There will be some new features, BusinessDay as your media part- 000 or more. evidently. For example, we are going ner has noticed increase in the What we have done is to collect to have stakeholders’ forum. This is number of participants at your vital information on these locations to help people who have been having annual tax conferences, what do and put them on our website. Each challenges in their practice as tax pro- you think is driving this? one decides where he/she wants to fessionals. They will come with their I think it is straightforward, when a stay. There are hotels everywhere in problems and there will be people professional institute like the CITN Abuja, so accommodation should not who are knowledgeable on ground, organises conferences such as this for be an issue, at all. If anyone wants a who own and run tax firms to help its members, obviously, they would place of N20, 000 and above, they will mentor the younger firms. want to attend, to learn and network. find one, if they want Sheraton of N80, We will also have a forum for tax For many of the members, it is the only 000 it is there, if you want N200, 000 at opportunity for them to meet. Some Transcorps, it is available. administrators, because engagements Justina Adaku with administrators show that many have not seen themselves for many of them do not understand the nitty- years. It is a place where many come What impact have these confer- gritty of tax administration. When economy. This is actually the theme River, Akwa-Ibom and Abeokuta. For to learn and better their professional ences had? you go to their offices they are one- of this year’s conference. This implies security reasons, we are not taking it practice. The impact might not be directly meas- sided. They follow instructions rigidly coming to a point when Nigerians will- to the North-East yet. We know in the These are some of the driving urable but each participant has their without understanding principles. So, ingly want to pay their taxes. How do future, we will take it to the North-East forces. People have also benefitted testimony. For this particular edition, this gathering will help them learn we achieve this? These are the issues and North-West. from previous years. So, they know the theme alone speaks volumes – from modern administrators who that will come up at the conference. However, because of logistics, we that attending the conference adds “Institutionalising Tax-Paying Culture have expertise in their field. These are What are the inhibitors to paying taxes, decided to centralise it, so as to at- significant and measurable value that in a Developing Economy.” some of the features of this year’s tax how can they be overcome, and what tract people from the North, South, can translate into improved revenue This is what Nigeria needs at this conference. is the way forward? West and from all over Nigeria. Again, generation. point in time. Many chairmen of board We also expect Vice-President because it is about tax, we need to In addition, the CITN member- of internal revenue services are com- Yemi Osinbajo to be in attendance. He Why did you choose Abuja as approach it from the centre and those ship is steadily increasing, at our last ing, because they need to know how is an erudite scholar in the area of law venue for this event? in the centre will also be able to con- induction; over 400 new members they can in their various states, insti- and tax laws. His keynote address will Abuja happens to be at the centre, it tribute and join in the conversation, were added. This means additional 200 tutionalise tax-paying culture within deal with some fundamental issues, is the Federal Capital Territory (FCT). to understand what the issues and or 300 members will likely attend this their state, within the local government which would form another topic on For instance, if you are coming from concerns of taxpayers and tax pro- year. This is an organic increase in itself. areas in their states. This is one of the its own for people. Maiduguri, you travel eight hours, if fessionals are. Besides, the Federal Another element is that people like biggest differences this particular edi- The conference will focus on de- you are coming from Lagos, you travel Government has a significant role to the technical side of the conference. tion is making. Every internal revenue veloping a tax paying attitude and eight hours, if you are coming from the play if we are to achieve the aim of the This is why this year; we will devote two service wants to understand how culture among Nigerians in lay man’s east, you travel seven or eight hours, so, conference, which is institutionalising days to the technical aspects. to best manage revenue generation language – that is, institutionalising it is really at the centre. tax paying culture. through taxes. They will learn how to tax paying culture in a developing Over the years, we had it in Cross- Accommodation is often a chal- make people interested in contributing lenge in putting together events to the purse of the state. CITN lauds extension of VAIDS to June 30 he Federal Inland Rev- 38th Induction Ceremony of the ries of taxpayers to voluntarily customers account details. cluding income from government pliance among high net-worth enue Services (FIRS) Institute. regularise their tax liabilities. On those with offshore tax contracts and overseas trading. individuals and a large informal Textended deadline for As the new deadline ap- However, prior to the expira- connections, government also re- Others also include collec- sector. The relative success of the Voluntary Assets and Income proaches, taxpayers have approxi- tion of the deadline, various cat- ceived tremendous support from tion of Value Added Tax (VAT) not Voluntary Asset and Income Dec- Declaration Scheme (VAIDS) mately 52 days to take advantage egories of persons and groups, foreign countries which pro- duly remitted to the Federal In- laration Scheme (VAIDS) bears till June 30 which The Chartered of this amnesty window which including some state govern- vided data under the exchange land Revenue Service; charging of witness to this. Institute of Taxation of Nigeria was opened by Federal Govern- ments and private sector op- of information protocols. The non-allowable personal expenses VAIDS is expected to help Ni- (CITN) has declared as helpful. ment since 2017. Federal Govern- erators, requested an extension data includes bank records and to company accounts, particu- geria improve its low tax-to-GDP “With this extension, taxpay- ment launched VAIDS to shore up of the deadline to enable them financial filings for tax purposes larly with reference to overseas ratio from the current 6 percent ers now have up till June 30, 2018 non-oil revenue by growing the comply. Government data min- in various jurisdictions around in school fees, and Inconsistency to between 12 percent and 15 to make their declaration. It is ex- tax base and ensuring tax compli- ing unit in the Federal Ministry the world. between income declared for percent in the first instance. So pected that taxpayers would seize ance. of Finance, Project Lighthouse, Common violations by non- tax purposes and value of assets far, N17 billion has been realised this window of opportunity to Before the recent extension, had compiled data of taxpay- compliant taxpayers identified owned. from the scheme, according to regularise their tax affairs” Cyril the phase of the programme of- ers from land registries from 36 by Project Lighthouse included Nigeria’s 6 percent tax-to- Tunde Fowler, executive chair- Ikemefuna, President and Chair- fered a nine-month opportunity states and the Federal Capital under-declaration and non-dec- GDP ratio is among the lowest man, Federal Inland Revenue man of Council, CITN said at the till March 31, 2018 for all catego- Territory, Abuja as well as bank laration of income earned, in- in the world, due to low tax com- Service (FIRS). 34 BUSINESS DAY Wednesday 09 May 2018

CITN20th Annual Tax Conference Live coverage of the 20th Annual Tax Conference of The Chartered Institute of Taxation of Nigeria

average of 50 speeches and presentations within Nigeria and around the world annu- ally in the past few years. Profile of speakers He is the Head of PwC Tax Academy, Dean of the Direct Taxation Faculty of the Chartered Institute of Taxation of Nigeria, member of the Nigerian Taxation Standards Revenue Service and Chairman Joint Tax Board Board and a member of the Taxation and by His Excellency, President Muhammadu Bu- Fiscal Policy Management Faculty Board of hari, on 18th August, 2015 to drive the change ICAN. He is a Fellow of the Nigeria Leader- agenda of the new administration in the tax ship Initiative and a member of the Corpo- sector. Since his appointment as the Executive rate Governance Society Nigeria. Chairman, his leadership of the FIRS has begun Oyedele is the author of the “Top 50 Tax to show positive results with an increase of over Issues in Nigeria” and a contributor to the 800,000 new registered (corporate) taxpayers, and as Chairman of the Joint Tax Board, he has annual “Doing Business” report of the World increased the number of tax payers in the States Bank, and PwC “Paying Taxes” publication, of the federation by 4,000,000 from 10,000,000 to as well as Worldwide Tax Summaries. In his 14,000,000 in 12 months. TAIWO OYEDELE, FCTI roles on these projects, Oyedele examines Fowler amongst many other new initia- Head of Tax and Regulatory the various areas requiring reforms in the tives, has introduced and deployed several ICT Services at PwC Nigeria tax legislation, administration, policy and driven initiatives which is revolutionizing tax practice in Nigeria compared to over 180 administration in Nigeria and serving to ease aiwo Oyedele is the Head of Tax and countries around the globe. He also runs a taxpayers compliance, such as the Integrated Tax blog on tax matters with thousands of fol- Administration System (enables on-line filing of Regulatory Services at PwC Nigeria. WILLIAM BABATUNDE He is a thought leader and prominent lowers from over 20 countries worldwide tax returns), VAT-Collect system (automation of T (www.pwc.com/nigeriataxblog). FOWLER, FCTI collection and remittance to government coffers speaker on key economic, accounting and Executive Chairman, Federal Inland Revenue tax issues such as the Adoption of Interna- He is a member of the ACCA Global of VAT due from Airlines), e-Stamp Duty (on-line Governing Council, a Fellow of the Institute Service (FIRS); Chairman, Joint Tax Board (JTB); stamping of documents and stamp duty pay- tional Financial Reporting Standards and and Chairman, African Tax Administration Forum. ments), e-Tax receipt (enables instantaneous Transfer Pricing. He is an ardent advocate of Chartered Accountants of Nigeria (FCA), issuance of receipts for taxes paid), e-Tax Clear- of tax reforms with particular emphasis on Fellow of the Chartered Institute of Taxation illiam Babatunde Fowler is a seasoned ance Certificate system (on-line issuance and tax simplification and transparency. He of Nigeria (FCTI), Fellow of the Association tax administrator. He studied in the verification of TCC), etc. represented the Manufacturers Association of Certified Chartered Accountants (FCCA) WUnited States of America at the Univer- In spite of the dire economic situation expe- of Nigeria in 2013 at the National Economic and a Certified Information Systems Audi- sity of Wisconsin, Whitewater, where he obtained rienced in Nigeria during the year 2016, Fowler Council to successfully make a case for re- tor (CISA). his first Degree with a Bachelor of Science in succeeded in mobilizing the FIRS work force to forms to address multiplicity of taxes. Taiwo is a mentor to many young people Economics and a minor in Political Science in achieve a collection of taxes to the tune of N3.3 Oyedele writes articles in leading na- and patron to a number of youth organisa- trillion in 2016 (taxes collectible at the Federal 1978. He completed a second Bachelors’ Degree tional newspapers, professional journals, tions such as the JCI, Reformed Ambas- in Business Administration at California State level only). sadors Network, Unilag Tax Club, and University, Los Angeles and also a Master of In recognition of his exemplary performance international magazines and newsletters. He runs a regular column called “Tax Bites” Students’ Associations in various tertiary Business Administration degree programme as a Tax administrator, Fowler’s colleagues institutions such as at California State University, Dominguez Hills (Heads of Revenue Authorities) from across in BusinessDay and “Tax Watch” in newspaper. He provides insights University, University of Lagos, and Yaba both in 1981. Africa, voted overwhelmingly at the 4th ATAF College of Technology. He is the Founder General Assembly in Durban, South Africa in on contemporary issues through the media His working career started in the United and President of Impact Africa Founda- States with Avon Products Inc in New York and October 2016, to elect him as the Chairman of including press releases and TV interviews thereafter Johnson and Johnson in New Jersey the African Tax Administration Forum. He is the with Channels TV, NTA, and CNBC among tion, a non-profit organisation established from where he transferred to Johnson and first Nigerian to lead this Africa’s foremost Tax others. He is a regular presenter and a highly to support the education of less privileged Johnson Nigeria. He made a career change from body comprising Revenue Authorities from 38 sought after public speaker delivering an students across Africa. International Finance and Marketing to Banking African countries. where he had a distinguished banking career of Fowler is a recipient of several awards and over 20 years, first with Commercial Bank (Credit recognitions, which include Honorary Senior Business Development (Multinational Lyonnais Nigeria Limited) and thereafter with Member of the Chartered Institute of Bankers Expert Ltd) – He was responsible for the Chartered Bank, where he rose to the position of Nigeria and a Fellowship ‘Honoris Causa’ by strategic planning and development of of General Manager before resigning in 2004 the Certified Board of Administrators of Nigeria. new business line which resulted in the to take up his first public sector appointment He is a Fellow of both the Chartered Institute of formation of a Joint Venture Company as the pioneer Permanent Secretary/Executive Taxation of Nigeria and the Chartered Institute – Multinational Craig Energy Services Chairman of the Lagos State Internal Revenue of Taxation of Ghana. He also holds a Fellowship Limited with a major UK energy sup- Service (LIRS). of the Business Management Association of the plies group providing oilfield supplies Fowler reformed the LIRS and led it to United Kingdom. and support to major exploration and achieve an increase in internally generated reve- Due to his commitment and performance production operators in the Nigerian Oil in tax administration, the United Nation ap- nue from an average of N3.6billion monthly as at and Gas industry: January 2006 to an average of N23billion monthly pointed him as one of the 25 members of the OSENI SALAWE ELAMAH, mni, FCTI He was the pioneer Managing Direc- as at June, 2015 (the highest by any State in the International Experts Committee on Tax Matters Executive Secretary Joint Tax Board country). In recognition of his impressive per- on the 10th August, 2017, and elected the 1st tor of MCES; Executive Director (Nigeria formance as Executive Chairman, LIRS, he was Vice Chairman of the International Tax Experts Social Insurance Trust Fund – Where he appointed Executive Chairman, Federal Inland Committee on the 17th October, 2017. seni Salawe Elamah, is the pio- worked closely with the Executive Man- neer Executive Secretary of Joint agement to design and implement a Tax Board (JTB) and the immedi- robust investment policy guideline that Nigerian Red Cross Society (NRCS). He O ate past Executive Chairman of Edo State helped grow the investment asset by a was Chairman – West African Sub-Region Internal Revenue Service. A Chartered factor of over 400percent within three of International Federation of the Red Accountant, an administrator par excel- years); Managing Director (TrustFund Cross and Red Crescent Societies. He was lent, a great achiever and the Okaoivbi- Pensions PLC – As the pioneer Manag- Pioneer Vice-President, Chartered Institute ore of Benin Kingdom. ing Director/CEO, he was able to quickly of Taxation (CITN). He was Chairman, Elamah, mni attended the famous establish the company as a leader in the Value Added Tax Committee. The Com- Eghosa Grammer School in Benin City, emerging pension industry in Nigeria. mittee that created VAT in Nigeria. He was the Federal Polytechnic Auchi and John His tenure at TrustFund Pensions PLC Chairman, Agriculture and Food Security Moore University, Liverpool, United not only created a solid foundation for Commission, (NESG). He was Chairman, Kingdom. Elamah became an associate the growth of the company but was also Emmanuel IJEWERE, FCTI Community of Agricultural Stakeholders Member of the Institute of Chartered able to grow the pension assets to over Founding Partner, Ijewere & Co of Nigeria (CASON). He was Chairman, Accountants of Nigeria (ICAN) in 1987 N120billion). Extractive Industries – Sub-Committee of and bagged a fellowship of the Institute At the inception of the Adams Os- e is a Chartered Accountant and National Council on Privatization. He was in 1997. hiomhole’s led administration in Edo Tax Consultant as well as Farmer. member, Technical Committee on Privatiza- He has worked as an auditor, a Char- State, Elamah was the first to be ap- HHe is the chairman in the follow- tion of Federal Government Companies and tered Accountant with S.S Afemikhe pointed Chairman of a committee to ing companies: Best Foods Group; Apel Parastatals. He was member, Honourary & Co; Financial Controller (Geomsaf help chart a roadmap for the take-off of Capital & Trust Limited; Drum Resources International Investment Council (under Group Limited); Director of Finance and the administration when he chaired the (Nigeria) Limited; Citadel Business School; Barones Lynda Chalker). He was member, Administration (Sheltercare Mortgage Edo State Asset Verification Committee Cold Chain Supply Systems Limited; and Agricultural Transformation Implementa- Finance Ltd); Executive Director of Fi- to establish the assets and liabilities of Globe Crest (VFM) Nigeria Limited. He tion Council (ATIC) under past President nance and Administration (TRW Stock- the State, to enable the administration is a director in the following companies: Goodluck Ebele Jonathan Chairmanship. brokers Limited); Special Assistant to the put in place a governance structure to Computer Warehouse Group Plc; Pinehill He served as Resource person on Agriculture Head of State in the office of the Special ensure transparency, accountability and Leasing Company Limited; and Rosaab to the Buhari Transition Committee. He is Adviser to the Presidency (Petroleum); value for money for public expenditure. International Limited. He is past President currently the Vice President of Nigerian Agri- Managing Partner (Patriot Consultants); He was also the Special Adviser to the of Institute of Chartered Accountants of business Group – NABG (the umbrella body Executive Director (Haslyn Oil and Gas Governor on Fiscal Governance and Nigeria (ICAN). He is past President – Ac- for Agribusiness in Nigeria). He was Past Services Ltd – As the Business Devel- Project Monitoring. Besides being a counting Bodies of West Africa (ABWA). He PTA Chairman, Lagos State Model College, opment and Logistics Director, Elamah workaholic, Elamah finds joy in hobbies is past President of Institute of Directors Badore. He was Chairman, Longman Nigeria was able to secure a major contract to such as – working out, golf, philanthropic construct the Oredo/Ozibigie Oil and Nigeria (IoD). He is past National President, Plc (Book Publishing) now Learn Africa Plc. activities and mentoring young profes- Gas Flow Station); Executive Director of sionals. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 35

CITN20th Annual Tax Conference Live coverage of the 20th Annual Tax Conference of The Chartered Institute of Taxation of Nigeria

respectively and doctorate degree from University of Lagos in 2010. He is Fulbright Fellow, life member of the Nigerian Society Profile of speakers of International Law, Fellow of the Char- tered Institute of Arbitration Nigeria and Fellow of the Chartered Institute of Taxation of Nigeria (CITN). He is currently serving the CITN in differ- geria as Cabinet minister in four different ent capacities as a Dean of the Indirect Tax positions: Culture and Tourism; Labour, Faculty, Legal Adviser and a member of the Employment and Productivity; Federal At- Taxation Standard Board. Sanni served as torney General and Hon Minister of Justice the Chairman of the National Committee on and as Minister of Defence. He chairs the the Review of the Nigerian Tax Policy in 2016 Peace and Security Committee of the Pan and is the current Chairman of the National African Lawyers Union, Daresallam. ABIOLA SANNI, FCTI Tax Policy Implementation Committee. Kayode has business interests in ag- Professor of Commercial Law He is also the Coordinator of The Tax riculture, power and mining. He is on with Specialty in Tax Law, Club, a vibrant student tax advocacy the board of the National Associations of University group, a Trustee and the first Chairman of Chambers of Commerce, Industry Mines “Tax Academician Association of Nigeria” and Agriculture of Nigeria, Nigerian (TaxAAN) a corporate platform for teachers , Chamber of Mines, Nigeria Association biola Sanni is a Professor of Com- of taxation in Faculties of law, Departments CON, SAN, FCIArb, FCTI of Investment Promotion Agencies while mercial Law with specialty in Tax Law of Accounting and Economics in tertiary President, Abuja Chamber of he Chairs the Boards of the Gemological at the University of Lagos where he institutions in Nigeria. Institute of Nigeria, Gems Miners and A Commerce & Industry teaches Law of Taxation at the undergradu- Sanni is a member, Advisory Group of the Marketers Association of Nigeria as well ate and post graduate levels. He is a Solici- International Centre for Tax and Develop- as the Board of Trustees of the National tor and Advocate of the Supreme Court of ment. He had served as a Consultant to the ayode is a commercial law expert, Association of Small Scale Industrialists Nigeria with 28 years post call experience. House of Representatives (Sixth Parliament) tax Consultant and an international responsible for small and medium enter- He bagged his Bachelor and Master on passage of series of 2007 Tax Laws and arbitrator and mediator. He is a prises development (SMEs) in Nigeria. He of Laws Degrees from Obafemi Awolowo leading consulting firms including Ernest K represents the Nigeria Organised Private Senior Advocate of Nigeria (SAN), and a University (OAU), Ile-Ife in 1989 and 1992 & Young (EY). Life Bencher, respectively the highest rank Sector (OPS) on Nig and the highest honor a practicing lawyer may attain in Nigeria. He is a Fellow of the kinyosoye studied Political Science at the Univer- of Strategy, Planning and Evaluation (SPE) Chartered Institute of Arbitration, UK; Fel- sity of Ife now Obafemi Awolowo University, Ile- in the Planning Division at Department of low of the Chartered Institute of Mediators AIfe. He obtained a Master of Public Administration Petroleum Resources. and Conciliators of Nigeria; and Chartered from University of Lagos, Akoka Lagos, specialising in Sequel to the promulgation of the Ni- Institute of Taxation of Nigeria. Public Policy Management. He also studied Petroleum gerian Content law in 2010, Akinyosoye He undertook training law at the Uni- Administration and Policy Management at PETRAD, the was briefly moved to the newly established versity of Lagos, Strategic Leadership at the Norwegian Petroleum Institute at Stavanger, Norway. Nigerian Content Development & Monitor- Oxford and Cambridge Universities, Media In his career, spanning more than two decades in ing Board (NCDMB) where he served until Strategy and Public Communications at DPR, he variously worked as Technical Assistant to 2014 as the pioneer General Manager of the World Bank/ Annenberg Program of WOLE AKINYOSOYE Director of Petroleum Resources, Coordinator DPR -- Planning, Research & Strategy. the University of Southern California, as DPR Zonal Operations Controller, Norwegian Petroleum Directorate (NPD) Institutional He is presently the DPR Zonal Opera- well as Strategic Negotiations Training at Lagos; superintending operations Cooperation, Country-Secretary to Gas Exporting tions Controller, Lagos; superintending op- the Harvard University. of DPR in Lagos, Ogun, Oyo, Osun Countries Forum (GECF) and Head of Nigerian Con- erations of DPR in Lagos, Ogun, Oyo, Osun He has served the Government of Ni- and Kwara States tent and Community Relations. He also served as Head and Kwara States. Table of events Export Credit Certificate administered by the Nigerian Export Promotion Council, which was used to settle Federal Gov- ernment Taxes. He also assisted various companies to obtain Pioneer Status Incentives from the Nigerian Investment Promotion Commission. In addition, Temitope assisted a number of compa- nies to review their eligibility for the claim of Employment Tax Relief, Work Experi- ence Acquisition Programme Relief and Infrastructure Tax Relief under the Presi- dential order of 27 April 2012, conferring TEMITOPE SAMAGBEYI,FCTI certain tax incentives on companies do- Tax Partner at EY in Nigeria ing business in Nigeria. Temitope was also involved with the emitope joined EY as the Tax Part- training of FIRS staff during the second- ner responsible for the Business ment period. Amongst others, he has Tax Services on 1st March 2016. He spoken at so many fora which include T the 5th Annual Tax Conference of West leads the provision of services to compa- nies engaged in services to EY’s clients African union of Tax inspectors (WAUTI), that engage in Construction, Oil and Gas, Nigerian Governor’s Forum, ECOWAS / Power & Utilities, Maritime, Aviation and GIZ capacity development programs held logistics businesses. He currently heads in Abuja, Nigeria and Accra, Ghana. the Business Tax Services for EY opera- In addition to the above, Temitope tions in West Africa. Temitope has over had managed and currently manages 17 years of professional tax experience. various corporate restructuring exercises His areas of experience in the tax of companies operations and businesses practice include corporate tax planning, in various industries. He had advised on tax advisory and compliance work for Foreign Exchange issues and its implica- Nigerian and multinational companies. tion on businesses operating in Nigeria. He has led negotiations with the various Temitope has been a very active mem- tax authorities on the resolution of tax ber of various faculties of the CITN. Until disputes. He has built strong relation- 29 February 2016, he was the Interim ships with the Nigerian tax authorities Registrar of the CITN Tax Academy. having been on secondment to the Temitope bagged a B.Eng. Degree in Federal Inland Revenue Service in 2006, Civil Engineering from the where he assisted the agency on various University, Ado Ekiti. He is a Fellow of projects including but not limited to the the prestigious Chartered Institute of development of draft National tax policy Taxation of Nigeria and the Institute of document, FIRS code of ethics document Chartered Accountants of Nigeria and and FIRS training school materials for Tax an Associate of the Nigeria Institute of Inspectors’ cadre. Management. Temitope led the team that which processed the Export Expansion Grant / • To be continued tomorrow 36 BUSINESS DAY C002D5556 Wednesday 09 May 2018 Wednesday 09 May 2018 C002D5556 BUSINESS DAY 37

CITN20th Annual Tax Conference

Arrival of Cyril Ede, president, The Chartered Arrival of Olateju Somorin, immediate past Arrival of participants. Institute of Taxation of Nigeria (CITN). president, CITN.

Registration of participants. Arrival of participants. Arrival of participants.

Arrival of participants. Registration of participants. Registration of participants. Registration of participants.

L-R: Titilayo Fowokan, council member, CITN; Olasunkanmi Lanre, Godwin Oyedokun, council member, CITN (r), with Arrival of participants. assistant director, finance, CITN; Samuel Agbeluyi, council member, Nnamdi Nwakama, member CITN. CITN, and Kola Babarinde, council member, CITN.

L-R: Ronke Ojo; Lizzy Adebanjo; Christy Adeyemi, and Adeniji L-R: Samuel Agbeluyi, council member, CITN; Christy Adeyemi of Tina Nnachi, manager, FIRS, (l), with Helen Otete-Disi, assistant Adekola, all of CITN. CITN, and Ilo Austin, committee member, CITN manager, FIRS. Pictures by Olawale Amoo 38 BUSINESS DAY C002D5556 Wednesday 09 May 2018 NEWS

strength of insurance companies. surance has a solvency margin of Retraction NAICOM indicates that in- 404%, above the 76% ratio which FG codeine ban, Emzor Pharma closure a... Continued from page 1 surers maintain a minimum was used in the article. AIICO Continued from page 1 wa said. solvency margin of 100%, and Insurance also has a solvency cannot absorb. We have since tackle the incomprehensible According to him, the Fed- through the insurance act of margin (195%) that is also above eral Government would end found out that the formulae we 2003 defines the solvency mar- the regulatory threshold. and remote causes of this weird used to calculate solvency ratio and worsening addiction in the up creating a grey market and gin as the difference between the The figures given for FBNIn- people will start smuggling and which is net assets ÷ net premium admissible assets and liabilities, surance Plc, NEM Insurance country. written expressed as a percent- which shall not be less than 15% Plc and Continental Re Insur- Cheta Nwanze , Partner at importing from other coun- age, which is a globally accepted of the net premium income, or ance Plc are also likely to be SBM intelligence said the ban tries. method, is different from the the minimum capital base (N5 understated. We apologise to the “Nigeria cannot even stop solvency model margin NAICOM is sending a very poor signal billion), whichever is higher. companies mentioned and also about the government and the smuggling of AK 47 coming into the Nigerian Industry regulator Using this formulae we have to our esteemed readers. the border, is it now codeine? uses to measure the financial regulatory agencies. since found out that Leadway As- Editor. “Codeine is an opiod but FG ought to withdraw it on a not necessarily an essential gradual basis, giving them time ingredient but it very effective,” and companies can change Nwanze said. their formulations, but sud- “Has there been a study den withdrawal will create a for medical evidence, does grey market, black market and the country know how many that will worsen it, the end people who depend on medi- problem will be worse than cine with codeine, the knee jerk what the country started with,” banning is just an action which Ohuabunwa added. if carried out sends a very poor Codeine syrup addiction is signal to businesses anytime a problem across Africa, with that anything can be at risk.” reports of addiction in Kenya, The Nigerian senate in Octo- Ghana, Niger, and Chad. In ber 2017 estimated that about 2016, India banned multiple 3 million bottles of codeine is brands of codeine cough syrup consumed daily in Kano and following reports of addition. Jigawa States alone. Millions Many Nigerians have raised of bottles are consumed all concern over the rising menace over the country which is ris- of drug abuse among youths ing to epidemic proportions fuelling the future threat in the with grave consequences for families and society at large. the youths. However, the Senate is pro- L-R: Kudirat Abdulhamid, 1st national vice chairperson, The Society of Women in Taxation (SWIT); Gladys Drug abuse is now a national posing a Mental Health and Simplice, vice president, The Charetred Institute of Taxation of Nigeria (CITN)/chairperson of occasion; Amina tragedy, that a significant per- Substance Abuse Bill, as part Salihu, founder, Hadis Foundation; Mary-Helen Nnadi, independent John Maxwll (USA) certified trainer, and centage of the populace is ad- of a legislative framework to Ezinwa Okoroafor, national president, SWIT, during the 2018 SWIT annual seminar, with the theme ‘Tax dicted to illicit substances includ- combat use of dangerous psy- Compliance Enterpreneurship and national Development’ in Abuja, yesterday. Pic by Olawale Amoo ing cannabis, cocaine, marijuana, choneurotic substances, across codeine and the likes. the country, especially in the sanctions already in place. This The fact that these addicts, Northern Nigeria. Oil volatility seen as Trump withdraws US from... could force Tehran to violate first The active ingredient in or make the deal redundant. particularly youths, also inhale Continued from page 1 Taliban and al-Qaida. They have toxic gas from gum, cow dung, Codeine drug is to be replaced murdered hundreds of American In January, he reluctantly with dextromethorphan, a less there would soon be a nuclear service members and kidnapped waived a raft of sanctions against sewage tanks, refuse dumps, arms race in the Middle East,​” Iran as required by Congress and other noxious substances addictive agent. The move and tortured American citizens,” came on the heels of the BBC Trump said​. Trump said. every 120 days, but said “this is calls for an urgent national “The deal lifted crippling Ecobank Energy Report expects a last chance” and asked “Euro- response. documentary tagged ‘Sweet economic sanctions on Iran, in crude oil price volatility to surge pean countries to join with the However, many Nigerians Sweet Codeine,’ reiterating the exchange for very weak limits during the week. United States in fixing significant popular notion that ‘Cough flaws in the deal”. say the directive by the Federal on the regime’s nuclear activities,” “The higher price is likely to trig- Government is reactive and not syrup is killing a generation. ’ ger profit taking by speculators in- In Vienna 2015 after nearly two Trump said, adding that the​ deal well thought out. Lanre Yusuf, a medical prac- “should have never been made. cluding hedge funds that has taken years of intensive talks, Iran and a six-nation negotiating group Sam Ohuabunwa, former titioner based in Lagos said, “It is clear to me that we cannot a bet on the US decision resulting “The federal government of in higher crude price,” Ecobank reached a landmark agreement in Chairman/CEO of Neimeth, prevent an Iranian nuclear bomb Nigeria placing a ban on the under the decaying and rotten Energy report said on May 8. July 2015 known as the Joint Com- former President, Nigeria Eco- structure of the current agree- “With our expectation of US prehensive Plan of Action (JCPOA) nomic Summit Group (NESG) production and importation ment,” Trump said from the White government failing to recertify the which imposes strict restrictions is not enough, there should on Iran’s nuclear capabilities, in said “the ban by the Federal House Diplomatic Room. “The deal in mind, we expect price to Government is too sudden; you be a strict enforcement follow trade within $72 to $80 range during exchange for sanctions relief. Iran deal is defective at its core. If do not ban a thing that way. up on licenced companies so we do nothing we know exactly the week,”Ecobank Energy report. Under the deal which was signed by five permanent UN Se- Codeine is not poison, it is a as to avoid open market and what will happen.” Ahead of Trumps announce- other illegal smuggling into the ment senior UK diplomats said curity Council members (Russia, medicine that has therapeutic “Today, we have definitive proof country,” Yusuf said. that this Iranian promise was a they are deeply pessimistic that China, the US, UK, France) and effects that has been used for lie. Last week, Israel published Donald Trump will stick with the Germany allows Iran unplugged many years. Richard Adebayo, con- intelligence documents long con- Iran nuclear deal when he makes an two-thirds of its centrifuges, sultant Psychiatrist/clinical shipped out 98 percent of its “Codeine is still sold in Unit- cealed by Iran conclusively show- announcement at the White House. ed Kingdom; they made the Psychologist at Federal Neu- Trump who is also now sur- enriched uranium and filled its ing the Iranian regime and its his- report but have not banned ropsychiatric Hospital Yaba, tory of pursuing nuclear weapons,” rounded by opponents of the 2015 plutonium production reactor with concrete. codeine, so I think it is a knee- Lagos said codeine is a very Trump noted. deal; including John Bolton, his new serious concern in the country national security adviser, and Mike Tehran also accepted extensive jerk response with the way In announcing his decision, and abuse of it is prevalent in Trump said he would initiate new Pompeo, the new US secretary of monitoring by the International the government went about it. sanctions on the regime, crippling the state has been a vocal opponent of Atomic Energy Agency (IAEA), My belief is that the products northern part of country threat- agreement negotiated by his prede- the nuclear deal, a policy stance that which has verified 10 times since ening peer groups, married or the agreement, and as recently as could be withdrawn after the cessor. Trump said any country that has been praised by Israel but met adequate medical evidence. unmarried women and men in with disapproval among Washing- February, that Tehran has com- helps Iran obtain nuclear weapons “So people may be abusing the country. would also be “strongly sanctioned.” ton’s European allies. plied with its terms. In return, all nuclear-related sanctions were the drugs but that does not “Banning codeine is not the Trump added, “In the mean- In recent weeks a succession of solution; it will make people European leaders including presi- lifted in January 2016, reconnecting make it like poison. We need time, powerful sanction also go shift to illegal production and into full effect. If the regime con- dent of France Emmanuel Macron, Iran to global markets. to have appropriate medical tinues its nuclear aspirations, it will German chancellor Angela Merkel Tehran said on Tuesday that its importation. Drug abuse isn’t response to Trump’s announce- research and if we come to the have bigger problems than it has and British foreign secretary, Boris conclusion that the product has peculiar to Nigeria alone, it is ever had before.” Johnson had flown to Washing- ment will be dictated by what all over the world. When you ton warning that tearing up the would best safeguard its own na- to be withdrawn either because “This was a horrible one-sided of successes, or adversity, or it’s abuse drugs, you will be harm- deal that should have never, ever deal with no substitute strategy to tional interests. “Iran is monitoring US and being abused and the coun- ing yourself,” Adebayo said. been made,” the President said. “It contain Iran’s nuclear programme According to Adebayo, the didn’t bring calm, it didn’t bring risks undermining diplomacy and European stance closely, and will try cannot control the abuse, peace, and it never will.” strengthening hardliners in Tehran. react to U.S. decision based on its then it will be withdrawn in a abuse of these drugs has the “The Iranian regime is the lead- Before his elections, Trump own national interests,” Iran’s dep- gradual process because some effect of altering the brain func- ing state sponsor of terror. It ex- promised to dismantle the di- uty foreign minister Abbas Araqchi tion. “Gone are the day’s people said after a meeting with envoys pharmaceutical companies ports dangerous missiles fuels sastrous deal with Iran, although manufacturing these product look at cannabis and other conflicts across the Middle East, analysts believed he might instead from France, Britain, Germany and substances alone, codeine is a and supports terrorists’ proxies adopt a more rigorous implemen- the European Union in Brussels as have put a lot of orders and quoted by Iranian media. have invested in it,” Ohuabun- big problem and it should be such as Hezbollah, Hamas, the tation of the agreement and tighten tackled effectively.” Tuesday 08 May 2018 C002D5556 BUSINESS DAY 39 NEWS Ambode calls for restructuring to rescue Nigeria Julius Berger sees 5% rise in revenue … says current power structure inhibiting national growth Airport, Abuja, which was ac- and implementing it for the of inclusion as being practiced federalism the best chance to OLALEKAN IPELE complished against all odds in rehabilitation of the Abuja- JOSHUA BASSEY in Lagos, where anybody irre- work. Until we do this, calls to only six weeks. Kaduna-Zaria-Kano Road, spective of race or creed could abandon the current system The same feat, he pointed shorter construction times he current power ulius Berger, a leading rise to the pinnacle of their serve not to fix the underlying out, was recorded at the Azura- are achieved, resources are and political struc- construction company, re- chosen career, first needed to problem,” he said. Edo Independent Power Plant conserved, cost efficiencies ture of Nigeria is corded a 5 percent increase be applied to the division of “There is widespread con- - a 450mw open cycle gas power are realised, environmental such that attain- in revenue to N125.7 billion power between the federal and sensus that too much power inJ 2017 from N119.8 billion, the plant in Edo State and Nigeria’s impact is reduced, road safety ment of national sits in the centre. We can cor- state governments. previous year, amid increased first Independent Power Plant. is improved, roads lifespan Tgrowth will be difficult, Lagos rect this imbalance by real- “There recently has been From ongoing projects such is extended, and the roads’ State governor, Akinwunmi engineering and construction clamour for devolution of locating power and respon- as the Dangote Jetty in Apapa capacity to bear heavy traffic is Ambode has observed. activities in Nigeria. power and true federalism. sibilities between the states Lagos, the Port Harcourt town increased, Goetsch said, saying, Against this background, In the same vein, profit be- While much of this talk is good and Federal government by roads rehabilitation, the central “It is by all means a winning Ambode said the way to go and fore income tax was recorded intentioned, I believe it misses amending the list of exclusive area of Abuja, including the B6/ solution.” grow was for Nigeria to em- from a loss of (N1.2bn) in 2016 the crucial point. The linchpin and concurrent powers and B12 Boulevard road system, to While he looks forward to brace and implement a federal to N1.2 billion in the year under of good governance is not duties of these governments other projects across Nigeria, strengthening the JB Group system as originally intended review. Dividend of subscrip- found in the system deployed to reflect current realities in the technical capability to de- to offer clients a full range of in the constitution. tion of rights to buy additional but in the quality of its admin- the nation. liver on client’s requirements construction-related services He believed that doing this securities in the company may istration. “These changes will have remains bold and definitive of under one roof, the company, would rescue the country from be made available to the com- “We must implement the beneficial impact visible within the company’s strength. he said remained optimistic its retrogressive path and the pany’s existing shareholders in federal system as it was in- a short amount of time. The im- For the Abuja-Kaduna- regarding future developments myriad of challenges currently the coming months, as they are tended to be. Heretofore, too pact of these changes, though Kano Road project, according in Nigeria. plaguing it. also expected to pay dividend to much power has resided in the political in origin, will be eco- to the managing director, the According to Goetsch, “We Ambode made the observa- shareholders. national government. This has nomic in nature and it is in firm had introduced an innova- are hopeful that the Federal tion in a paper he delivered at According to a statement been to the detriment of the our economic life where the tive methodology, whereby the Government’s strong focus on the University of Lagos Con- released Tuesday, Wolfgang authority and efficiency of both nation needs the most help,” milled pavement was recycled reform to ease the complexities vocation Lecture and investi- Goetsch, managing director, state and local governments. the governor said. and improved for reuse, via a of doing business will continue ture of Oluwatoyin Ogundipe, Julius Berger Nigeria (JBN), “This has caused a gover- Earlier, Ogundipe lauded precisely metered process to to find success, in order to fur- a professor, as the 12th vice celebrating the ability of the nance vacuum of sorts. The Ambode for his commitment produce a homogenous mix ther stimulate development chancellor of the institution. company to operationally Federal Government is bur- to the education sector, say- of bitumen-stabilised material opportunities.” According to Ambode, the achieve seemingly impossible dened with tasks beyond the ing the institution (UNILAG), used for paving the base layer While Goetsch looks for- Federal Government is at the project delivery schedules, reach of its best competencies. where the governor himself of the road. ward to strengthening the Julius moment burdened with tasks pointed at the critical emer- The states and local govern- graduated from, was proud By introducing this new Berger Group to offer clients beyond the reach of its best gency rehabilitation of the run- ment are dissuaded from treat- to associate with his achieve- highly efficient and state-of- a full range of construction- competencies to the detriment way and main taxiways at the ing many matters of a local ments. the-art methodology to Nigeria related services under one roof, of states, which are the federat- Nnamdi Azikiwe International nature that are better left in He particularly thanked the Company, he says, “We ing units. their hands due to their greater Lagos State for granting 75 are hopeful that the Federal Nigeria’s present political knowledge of local conditions. percent waiver on revenue CBN boosts liquidity in forex market with $210m Government’s strong focus on structure was seriously af- “We need to shift some payable by the institution to reform to ease the complexities fecting the efficiency of both HOPE MOSES-ASHIKE & N360.83k on Monday. functions/responsibilities from the state, saying the gesture, of doing business will continue state and local governments, ONYINYE NWACHUKWU The bank again offered the the national government to among others, showed Am- to find success, in order to fur- he said, submitting that for sum of $100 million to autho- place more of it in the hands of bode’s passion for the develop- entral Bank of Nigeria ther stimulate development states to give optimal service rised dealers in the wholesale the States. This is how we give ment of the education sector. (CBN), on Tuesday, segment of the market. The opportunities.” to their citizens, the principle boosted the interbank Small and Medium Scale Enter- Foreign Exchange prises (SMEs) segment received Cmarket with another sum of the sum of $55 million while $210 million. the sum of $55 million was ap- Consequently, naira value portioned to invisibles such as was lifted against the dollar as tuition fees, medical payments it closed at N360.64k per dollar and Basic Travel Allowance on Tuesday, compared with (BTA). N360.91k traded the previous A statement from the bank’s day at the investors and export- acting director, corporate com- ers forex wind, data from FMDQ munications department, Isaac indicated. Okorafor, confirmed the figures At the Nigerian Autonomous and reiterated CBN’s capacity to Foreign Exchange Fixing (NA- continue to sustain the foreign FEX), the local currency gained exchange intervention. marginally by N0.06k to close Okorafor urged authorised at N360.77k on Tuesday from dealers to help sustain the con- fidence in the foreign exchange CHANGE OF NAME market by continuing to honour I, formerly known and ad- requests from customers with dressed as Anthony Carine genuine needs. Oluchi now wish to be known It would be recalled that the and addressed as Anthony CBN last Friday, May 4, 2018, in- Irene Onyinyechi. All former tervened in the Secondary Mar- documents remain valid. Gen- ket Intervention Sales (SMIS) to eral Public please take note. the tune of $349.34 million.

CHANGE OF NAME CHANGE OF NAME L-R: Abdulaziz Kaita, management staff, Julius Berger Nigeria (JBN); Wolfgang Goetsch, MD, JBN; Jafaru Damulak, director, JBN; Gladys Talabi, director, I, formerly known and addressed I, formerly known and addressed JBN; Sunny Nwosu, shareholder, JBN; Cecilia MaduekeJBN company secretary, and Martin Brack, finance director, JBN, at the company›s investors forum as Ishola Betty Kudirat now as Ogundiran Adamo now wish in Lagos, Tuesday. wish to be known and addressed to be known and addressed as Kolawole Betty Kudirat. All as Basiru Adamo. All former GE begins interim phase narrow gauge rehabilitation in June former documents remain valid. documents remain valid. Gen- … freight haulage to increase from 50 tons to 500,000 tons General Public please take note. eral Public please take note. spection of Lagos-Ibadan stan- the conglomerate would also quency of passenger and freight CHANGE OF NAME CHANGE OF NAME MIKE OCHONMA dard gauge rail project. rehabilitate the Port Harcourt to rail services. In addition, freight I, formerly known and ad- I, formerly known and addressed Amaechi said the conces- Maiduguri corridor, which would haulage capacity by the end ederal Government has dressed as Chiagozie Priscal as Ayanwuyi Oluwatosin Taiwo sion of rehabilitating the narrow require additional $50 million. of the first 12 months of the disclosed that General Okwubido now wish to be now wish to be known and ad- gauge lines to GE would greatly He assured that while the interim phase is expected to Electric (GE) will com- known and addressed as dressed as Eboade Oluwatosin F increase the number of kilo- GE narrow gauge rail tracks increase roughly ten-fold, from mence partial rehabilitation of metres on the existing narrow rehabilitation was ongoing, the its current less than 50,000 Chiagozie Priscal Ojukwu. All Taiwo. All former documents the Lagos-Kano narrow gauge gauge lines from the abysmal 15 government would also carry metric tons per annum to about former documents remain valid. remain valid. NSCDC, Gen- rail lines next month. to 18 per hour to an estimated on with the ongoing construc- 500,000 metric tons per annum. eral Public please take note. This new development is General Public please take note. 40 kilometres per hour with its tion of the standard rail project Lazarus Angbazo, CEO of coming on the heels of last associated positive economic so that the economic and politi- GE Nigeria, said in the US, ADDITION OF NAME CHANGE OF NAME week’s signing of a $2.8 billion spin-off effects in terms of trade cal pressure being suffered by while signing the MoU, “GE is I, formerly known and ad- I, formerly known and addressed concession agreement between and commerce. the people, the travelling public committed to the sustainable dressed as Abdulazeez as Bokoh Ademola Philip GE, in consortium with Trans- Under the new MoU, GE and the business community development of Nigeria and as Sakiru but now am add- now wish to be known and ad- net and other foreign firms and will also carry out rehabilitation would be reduced. such we are delighted to have ing Babatunde. And i now the Nigerian government. wish to be known and ad- dressed as Bokoh Ademola work on the narrow gauge rail This programme is expected reached this crucial stage of the Rotimi Amaechi, minister dressed as Abdulazeez Philip Akoteyon. All former lines from Lagos-Kano to Funtua, to deliver an increase in the project to revamp and revitalise of transportation, disclosed this Babatunde Sakiru. Gen- documents remain valid. Gen- extending to Kaura Namoda, number of available locomo- the country’s legacy rail infra- Tuesday at Papalanto, Ogun ral public please take note. eral Public please take note. the minister said, adding that tives, thus increasing the fre- structure system. State, during the monthly in- Wednesday 09 May 2018 BUSINESS DAY A1 A2 BUSINESS DAY C002D5556 Wednesday 09 May 2018 NEWS LAPO says fire outbreak in ‘Nigeria may begin mass exportation of office caused by power surge Nigeria, Togo, others’ poor power IDRIS UMAR MOMOH, Benin fertilizer within next two years’ had a situation where there were anagement of Lift Above DANIEL OBI situation blamed for low technology 32 fertilizer blending plants in Poverty Organisation (LAPO) M She said, “Nigeria, Togo on Tuesday said the fire outbreak MODESTUS ANAESORONYE insurance outfits to embrace hairman of Fertilizer Nigeria that were moribund. Out and some West African coun- that occurred in its head office in in Accra, Ghana the latest technologies to fas- Producers and Suppli- of this number, only five blending tries are the most affected,” Benin City, the Edo State capital, was ten claims process, noting ers Association of Nigeria plants were functional and even stating that not much was that, policyholders must be C caused by power surge. he poor power situa- (FEPSAN), Thomas Etuh, says then, they were producing at 10 being done by their respective James Wisdom Abhulimen, tion in Nigeria, Togo served through latest technol- Nigeria will be in good position percent capacity on the average, governments to address these communication officer of the or- and some other African ogy that would make claims to export fertilizer within the next and that was because of excessive T challenges. ganisation, in a post in the financial countries has been blamed for process seamless and timely. emphases on importation. Ray Ankra, board chair- two years if current gains of the institution’s Twitter handle, who low impact of technology in According to her, “With the “This also meant, by its very man, National Insurance Presidential Fertilizer Initiative confirmed the fire outbreak, said the driving insurance penetration latest technology, you should implication, that we were export- Commission (NIC), Ghana, (PFI) are sustained. incident occurred within the eleva- in the continent. have records of claims and be ing our jobs even when we can- who moderated the session Already, Etuh says the country tor at 9am. This is believed to under- able to track it.” on ‘Pay As You Go Insurance,’ is currently selling the important not provide jobs here in Nigeria. Abhulimen, who said the fire mine investment in technolo- On his part, Doug Lacey, said the insurance industry agro input to some of Nigeria’s Foreign Exchange that is scarce was quickly put off by a team of gy by insurance companies, as special advisor, LeapFrog must embrace technology to neighbours like Benin Republic, is spent building other people’s dedicated staff and security person- majority of potential consum- Strategic African Investments entrench and deepen pen- Chad, Cameroon and Niger Re- economies,” he states. nel on duty, said no life was lost in ers are either not connected or (LSAI), said customers remain etration. public, a development that will Nigerians must make concert- the inferno, and no property was poorly connected as a result of the most asset of any business, Ankra however observed help restore the country’s position ed efforts to show commitment damaged. poor power situation. charging African underwriters the need for needed infra- towards solving the employment According to the Twitter mes- Experts, who spoke at the to cement a better relation- as the food basket of the West structure to enable technology challenges that have been mount- sage, “fire outbreak was averted at ongoing 45th African Insur- ship with policyholders to the African sub-region. work effectively in different ing in the country over the past the LAPO Head Office in Benin City ance Organisation (AIO) Con- extent of understanding their The export opportunity from parts of Africa, stating that decades, he says, and is sure that by 9am today. The fire was ignited ference and General Assembly personal life. fertilizer, he says, will be made insurers must push on gov- by power surge within the elevator taking place in Accra, Ghana, He stated that products possible by the increased local one of the critical planks of revers- ernments for infrastructure and was quickly quelled by a team of believe this is impacting nega- should be tailored towards production of fertilizer that has ing the trend is a sustained invest- development. dedicated staff and security person- tively on the cost of operations meeting the needs of indi- ramped up from a mere 500,000 ment in agriculture in a creative “Technology is the way of nel on duty. of insurance companies. vidual customers, rather than metric tons pre-2015 to close to way, not to create losses to both life and whether you like it “We are happy and very grateful According to them, this a stereotype approach of as- 2 million metric tons currently. the government and the people. or not, it has come to stay,” to God that there was no casualty and development is discouraging suming what the customers He commends the President he said. Etuh, who made this known damage of any kind. We appreciate more investments in insure- need. for showing the “political will” According to Ankra, cus- in a statement, commends Presi- the goodwill and solidarity of mem- techs. “For effective service de- that has made it possible for the tomers of today are technol- dent Muhammadu Buhari for bers of the public and the press in Delphine Traore Maidou livery to customers, insurers initiative to become a huge suc- ogy savvy, and so have got initiating the PFI, which has particular. Thank you and God bless.” of Allianze Global Corporate must adopt human-centric choice to make when it comes helped farmers access the input cess, expressing his optimism Also speaking, Sabina Idowu Os- and Speciality, South Africa, approach rather than product- to buying of insurance, as “we at affordable prices thereby re- that the journey towards food ehobor, executive director of LAPO, said a lot could be achieved centric approach in product live in a world of choice; we ducing their overheads, boosting security for Nigeria may well have allayed customers and members with technology in deepen- delivery. The human aspect is have rainbow of choices and yield and encouraging more begun on a sound footing with the of the general public fears that the ing penetration, if the neces- very important to the industry. the customer is key.” players to invest in the agriculture huge impact the PFI programme incident caused some damages or sary infrastructure could be We must be ambitious to pro- Inga Beale, CEO of the value chain. has made on the volume of food affected activities in the company. put in place in most African vide the best services to our countries. Lloyds of London, had urged customers,” he said. “Before the conceptualisa- production in Nigeria within only tion and activation of the PFI, we two years. Ogun to reduce post- Provost urges Senate harvest losses, shops for to speed up bill on produce processors immortalising Ikoku rovost of the Abia State RAZAQ AYINLA, Abeokuta College of Education oing by incessant post- P(Technical), Arochuk- harvest losses recorded wu, Philips Nto, has urged L-R: David on perishable farm pro- the Senate Committee on Collett, group G Education to double its ef- duce by farmers and investors chairman, Catch operating in , the forts geared towards im- Energy; Juliet state government is focusing mortalising one of Nigeria’s Ehimuan-Chiazor, foremost educationist and country director, on preservation and effective processing of farm produce. nationalist, Dr Alvan Ikoku. Google; Wale Nto made the assertion Omole, chairman, Although, Ogun is consid- ered as emerging industrial while making a presenta- TellCo Europe tion at the public hearing in Nigeria, and hub in Nigeria, hosting hun- Rudolph Fielder, dreds of manufacturing and support of a bill sponsored CEO, Europe service-based firms, it however by Mao Ohuabunwa, sena- TellCo, during the fails to convert its huge agricul- tor representing Abia North inauguration and tural production potentials and Federal Constituency for the official unveiling capacity into sustainable in- establishment of a Federal of TellCo Sol off- vestment, creating wealth and College of Education (Tech- grid solar power desired employment oppor- nical), in Arochukwu. system in Lagos, tunities for the youth through He said embossing the yesterday. effective processing of produce picture of Ikoku in the Ni- Pic by Pius Okeosisi harvested in various farms. gerian currency was not Consequently, the state enough honour for a man Osinbajo, Fashola lead discussion at public, private sector policy dialogue on infrastructure government has requested who did so much for Nigeria. local and foreign investors to The Provost made his presentation in the presence tinent, invested only 2.1 percent. platform for all concerned to consider investment in pro- CHUKA UROKO ‘wise men’ were assembled to cessing and preservation of of members of the Senate work out a National Infrastruc- The reason frequently given seek solution to this nagging by managers of the country for agricultural produce in order Committee on Education, ture Master Plan (NIMP), which national problem. saying the governing council, ice President Yemi Osin- this under-investing in this very The forum, which anticipates to reduce post-harvest losses came out with a 30-year plan and create wealth and desired management, staff and stu- bajo and Babatunde that required N30 billion spend important part of the economy other top-level government Fashola, minister for pow- is that the tax revenue of gov- employment opportunities, dents of the Abia State Col- V every year to execute. functionaries and experts from lege of Education (Techni- which will in return, boost the er, works and housing, will lead Since 1960, when the coun- ernment is too low. The non-oil in and outside the country has discussion when both public tax as a percentage of national state’s economy. cal), Arochukwu, already in try’s population was just 46 as theme ‘Effective Maintenance support of the bill favoured and private sector stakeholders income in Nigeria, they say, is as a tool for National Devel- Speaking at the clos- million to today when it is over ing ceremony of the ninth takeover of the existing col- gather in Lagos next week to 170 million, investment in infra- about 4 percent which contrasts opment’ and will be focusing discuss infrastructure challenges sharply with Angola’s 9 percent, Gateway Trade Fair held at lege for the purpose. structure has been quite mini- on Education, Healthcare and Given reasons for the and maintenance in Nigeria. Ivory Coast, 15 percent, Ghana, Technology. the MKO Abiola Trade Fair mal and maintenance of existing Complex, Oke-Mosan, Abeo- Federal Government take- This is the first time in recent ones almost zero, hence the 16 percent and Kenya, 17 per- “One of the biggest challeng- history public and private sector cent. kuta, on Monday, Governor over of the institution, Nto huge deficit, Emmanuel May- es of our economy has been our posited that the location operators are coming together But it is argued that the gov- persistent inability to articulate Ibikunle Amosun said, “Al- owa, an infrastructure expert, though Ogun State is now of the institution formerly, to talk about the country’s poor says requires about $1 trillion ernment, acting alone, is un- a sustainable national and sub- infrastructure base and the way able to make the investments known to be the industrial Agrey Memorial Technical to bridge. national policy and framework College, founded by the late forward for the maintenance of required in this sector, which that will ensure the regular and hub of the country, there Records show that during the must be cogent efforts to at- Dr Alvan Ikoku, was a good the existing ones, many of which five years ended 2016, Ghana, makes the policy dialogue being effective maintenance of our are in deplorable conditions. organised by experts in the facili- tract adequate investment gesture. “It is this reason Ivory Coast and Kenya invested public assets, buildings, utilities that the governing council, The last time Nigerians gath- ties management industry led by infrastructure and facilities”, in effective processing and 5.3 percent, 6.5 percent and 7.5 preservation of agricultural staff and management of ered at public sector level to percent respectively of their na- Klinserv Solutions Limited, a noted Tunde Ayeye, the lead proffer solution to infrastructure provider of Asset & FM Technol- produce that serves as raw ASCETA is recommending tional income in infrastructure, convener and executive chair- the school to immortalise challenge was 2013, when some ogy support services, a veritable man of Klinserv Solutions. materials for manufacturing but Nigeria, the giant of the con- activities.” Ikoku,” he said. Wednesday 09 May 2018 C002D5556 BUSINESS DAY A3 NEWS World Bank officials Fighting Corruption is Dangerous to meet Osinbajo, Nigerians export 45.462MTs of agric, governors, Adeosun by Ngozi Okonjo-Iweala over projects in Nigeria manufactured products from Tin-Can port •••describes plugging the leaks in a graft-ridden state … as Customs records N29.15bn FoB value from export in Q1 WILLIAM WALLIS, FT fraudulent subsidy claims World Bank Mission, com- the minister had blocked. prising of 10 executive direc- started yielding result as many in revenue collection to the es- here is a telling Their ransom demand was tors, is expected in Nigeria AMAKA ANAGOR-EWUZIE A farmers and manufacturers now tablishment of standard operat- anecdote in the that she resign on televi- on Wednesday to hold high-level igerian farmers and earn foreign exchange by taking ing produce (SOP) and strong epilogue of Ngozi sion. discussions with Vice President their produce to the international manufacturers export- revenue drive achieved through Okonjo-Iweala ’s She did not. Soon after, Yemi Osinbajo; Kemi Adeosun, markets. blocking of areas of revenue leak- finance minister, and some gov- ed agric produce and accountT of her second stint she was warned of a plot to He listed the most popular ages. ernors over the bank’s projects in manufactured goods presiding over the mer- attack her personally. She Nmeasuring about 45.462 metric agric produce being exported Continuing, he said: “TICP Nigeria. recalls one meeting that tons through the Tin-Can Island through Tin-Can Port to include is committed to transforming its curial finances of Africa’s In the World Bank Mission are cashew nut, rubber, hibiscus revenue collection and reporting largest economy. After she the president asked her to the bank’s executive directors for Port in the first quarter of the year - January to March -, Tin-Can flower, cocoa butter, sesame seed, system with the implementation had left Nigeria and office, attend with a group of busi- Switzerland, France, Italy, Nor- processed wood, frozen shrimps, of the Nigeria Integrated Customs police acting on the tip of nessmen from Abu Dhabi, dic, Peru, Germany, South Africa Island Port Customs Command (TICP), says. and processed leather. Information System (NICIS 11), a supposed whistleblower who promised $2bn in (representing Angola, Nigeria and According to Musa, Nigerian which has an additional function- South Africa), Burkina Faso (repre- The command also recorded raided her house in Abuja loans dressed up as an in- a total Free on Board (FoB) value manufacturers also export fin- ality compared to NICIS 1. We are in search of cash hoards. vestment in ship building. senting Francophone sub-Saharan ished products such as empty of N29.146 billion on the exported also introducing one-stop-shop “The presidential adviser Africa), Zimbabwe (representing bottles, biscuit, cigarette, polyeth- system that will enable the treat- When they found some Anglophone sub-Saharan Africa), goods within the period under bags in the basement, they had the I-told-you-so look, review. ylene, billets, soap, hair cream and ment of declarations with valua- UK and Indonesia. tissue paper to other countries. tions, classification and other re- thought they had hit the as though once you get this The delegation will discuss “This represents an appre- ciable improvement of 558.46 On the revenue generated lated clearance issues and queries.” jackpot. woman involved, then this ongoing World Bank projects and from payment of import duties On anti-smuggling, the com- Only the bags turned out won’t work.” The adviser the country’s development priori- percent in volume of the export trade through Tin-Can port, when and levies within the period under mand also intercepted one by 40- to contain four years’ worth was right. She blocked what ties with the Nigerian team. review, he said the command foot and one by 20-foot containers of newspaper clippings. No looked to her like an at- The officials will also meet the compared with 8,140.6 metric tons of goods with FoB value of collected the sum of N104.5 bil- of Tramadol Hydrochloride, de- money. One of the most tempt to replicate a 2013 fi- organised private sector in Lagos as lion against projected revenue of clared as electrical static convert- well as undertake a tour of LAPO N7.246 billion, exported through insidious tactics deployed asco that had seen the state TICP the same period in 2017,” N116 billion. ers, and ciprofloxacin; three by of Mozambique saddled Microfinance project in Lagos and “This sum represents growth by vested interests against Abdullahi Musa, Customs area 40-foot containers of electronic with hundreds of millions Azura Power Plant in Edo State. in revenue profile of the com- waste considered as toxic to health those obstructing corrup- The visit is expected to provide controller of TICP, said on Tues- tion is to spread malicious of dollars of odious debt day in Lagos. mand compared to the sum of and environment; five by 40-foot a first-hand impression of the chal- N82.154 billion collected in 2017, containers of second-hand cloth- rumours that cast doubts in return for a redundant lenges that both the federal and Musa, who gave the com- mand’s first quarter report to which shows a difference of about ing and one by 40-foot container on the integrity of their tuna fishing fleet. The book state governments face in imple- N22.68 billion, equivalent to 27.61 of used tyres, all contained in the target. may be a self-defence, but menting development projects as newsmen, said the Federal Gov- ernment initiative on export, espe- percent growth,” he explained. import prohibition list and have Long before US presi- it is not self-congratulatory. well as ensuring good governance He attributed the increased duty paid value of N124 million. overall. cially the agric commodities had dent Donald Trump had Much of it describes the popularised the terms “fake relentless task reformers news” and “alternative take on when they seek to facts”, Nigeria’s gangster plug the leaks springing politicians and profiteers from the state. had honed that dark art. There are ghost workers Mrs Okonjo-Iweala, a for- and pension scams, collu- mer managing director of sion between contractors the World Bank who paved and civil servants in bogus the way for the writedown debt, and near constant of Nigeria’s historic debts arm wrestling with legisla- as finance minister be- tors and state governors to tween 2003 and 2006 — and prevent waste. All the time, served again under the income to the Treasury, hapless administration of most of which comes from be- oil, was being squeezed tween 2011 and 2015 — has — on one side, by indus- been relentlessly targeted: trial scale theft from pipe- a sure sign that she trod on lines and state company powerful toes. accounts; on the other, by Her second book is multibillion-dollar fraud partly a bid to set the re- in the allocation of fuel cord straight in the wake subsidies. As a result, one L-R: Olayinka Oni, chief information officer, Sterling Bank plc; Dapo Martins, chief marketing officer, Sterling Bank plc; Tinuke Awe, executive director, of venomous allegations of the world’s foremost Nigerian Stock Exchange (NSE); Abubakar Suleiman, chief executive officer, Sterling Bank plc; Justina Lewa, company secretary, Sterling Bank plc, and that trailed her out of of- development experts spent Adebimpe Olambiwonnu, group head, finance/performance management, Sterling Bank plc, during the closing bell ringing at the stock exchange yesterday, fice when Mr Jonathan lost most of her time mounting elections in 2015 and the rearguard actions to pre- government changed hands. vent Africa’s leading crude Senate summons telcos, NCC, others Moghalu’s TBAN movement gets It is also a courageous ac- producer going bankrupt in count of the battle against an oil boom. over unsolicited adverts Jide Akintunde as spokesman graft in Nigeria. Between the “The government’s OWEDE AGBAJILEKE, Abuja mensurate quality of services from lines, the book also serves as stance against corruption them. anaging editor/ Diaspora, and the interna- a diagnosis of what is wrong delivered mixed messages,” The lawmaker expressed enate has mandated its Com- CEO of Finan- tional community annually. and a prescription for how it she writes with consid- concern that with high tariffs and cial Nigeria As a writer, colum- mittee on Communications M could be put right. There are erable understatement. to invite the four leading an estimated 150 million sub- International Limited, nist and editor, he has S scribers in the country, the four Jide Akintunde, has been interviewed high-level tragicomic moments. One Friends warned her not telecoms firms and the Nigerian is when Mrs Okonjo-Iwea- to work for Mr Jonathan, Communications Commission operators within the industry, announced as the official policymakers and business (NCC) to seek ways of addressing namely: MTN, (53.4m, or 39%), spokesman for ‘To Build A leaders across the world. la puts paid to a duplicate fearing she would lend unsolicited adverts by telcos and Airtel (38.3m, or 26%), Globacom Nation’ (TBAN), the trans- He has been published in cargo tracking system at the credibility to a government service providers. (38.2m, or 26%) and 9Mobile formation movement for several national and inter- ports tailored to line pockets. that did not merit it and Also summoned to appear (16.8m, or 12%), were yet to 2019 presidential candidate national media platforms, This act rebounds on sacrifice her own hard-won before the -led com- fully integrate themselves into the and former deputy gover- successfully developing her when she finds she can reputation. She still has her mittee are representatives of the larger Nigerian economy, in ways nor of the Central Bank of Financial Nigeria magazine no longer enter the presi- own misgivings, mostly that could provide opportunities Nigeria (CBN), Kingsley into a useful tool in policy Consumer Protection Council as dent’s residence via the about the dangers faced by well as the Association of Advertis- for Nigerians to benefit from their Moghalu. management, corporate operations. A graduate of the Uni- communications, and mar- VIP entrances. Even in the her family. Nevertheless ing Practitioners of Nigeria (AAPN). company of the visiting IMF she believes it was worth it. This followed a motion moved He decried the increased in- versity of Lagos, Akintunde ket entry strategies. by Yahaya Abdullahi at Tuesday’s cidences of dropped calls, unac- is also the director of With the vision to chief, Christine Lagarde, Billions went missing. But plenary. counted ‘disappearance’ of airtime Nigeria Development and transform Nigeria through she is forced to make de- by her own estimation, fi- The four leading telcos to ap- from devices, weak signals across Finance Forum (NDFF), action and a collective tours through the gardens. nance ministry interventions pear before the panel are MTN, networks and false report of un- a platform to directly voice, TBAN, a grassroots Often, the counter-attacks saved the country around Airtel, Globacom and 9Mobile. available call destinations, frequent provide country policy and arm of Moghalu’s presiden- were far more sinister. $9bn directly. As another Moving the motion, Abdullahi unsolicited calls, product and financial market briefings tial campaign, is centred Mrs Okonjo-Iweala’s Nigerian reformer put it to programme promos, instances of lamented that even though service to government representa- on mobilising support and 83-year-old mother was me once: “Had she not been tricking Nigerians to subscribe to tives, private sector leaders, advancing the candidate’s providers had been reaping huge kidnapped and bound for there, it would have been revenues from their investments, riddles and jokes and indiscrimi- members of chambers of policies and priorities nate religious contents. commerce, Nigerians in the among Nigerians. days at the suspected be- much, much worse.” Nigerians had not enjoyed com- hest of oil marketers, whose PRIVATEEQUITY &FUNDRAISING People & Perspectives A4 Wednesday 09 May 2018 C002D5556 BUSINESS DAY

Global M&A trend shows up in Nigeria activity

LOLADE AKINMURELE dollar liquidity and the country’s tains draw on a period of policy during the week,”Ecobank Energy In a signal of investors’ ap- exit from economic recession. uncertainty which saw Mergers report released on May 7. proval of the new window, called igeria is not get- They say the trend is likely to and Acquisitions (M&A) shrink “Any time oil prices go up, in- the Investors’ and Exporters’ ting left behind in a continue. since 2016. vestor sentiments about Nigeria window, close to $40 billion worth global tide that has “We have observed a surge M&A transactions in Nigeria gets a boost and that will translate of transactions have been made seen Mergers and in private equity firms looking were valued at US$ 1.2 billion in to increased M & A activity,” said on the window since inception in Acquisitions (M & to acquire Nigerian assets,” said 2016, according to data compiled Egie Akpata, a director at Union April 2017, according to data pro- NA) rise to an eleven-year high of Adekunle Adebiyi, the vice presi- by McKenzie, and the latter fore- Capital markets. vided by trading platform, FMDQ. $US1.7 trillion in 2018. dent at Lagos-based financial casts a 67.8 percent decline to “Currency stability will also Other Nigeria deals this year in- Mergers and acquisitions is a advisory firm, MBO capital. US$ 716.4 million in 2017. play a crucial role in driving in- clude the $25 million (N9 billion) general term that refers to the con- “Improved dollar liquidity and Nigeria is however tipped to creased activity,” Akpata added. acquisition of Nigerian medical solidation of companies or assets. the country’s economic recovery pick up the pieces of a disap- Meanwhile oil exports have diagnostics business, Echo Scan Nigeria recorded some $225 are encouraging global investors pointing outing this year, with also inched up, following the by London-listed Integrated Di- million (N68.9 billion) in M&A and that is powering the rapid a 455 percent increase in M & conclusion of repairs to damaged agnostics Holdings (IDH) which deals between January and April growth we are seeing,” Adebiyi A deals to USD$3.977 billion in oil pipelines. created a joint venture with Man 2018, the best start to a year since told BusinessDay. 2018, before declining marginally Africa’s largest oil producer Capital, the investment arm of the 2008, when Business Day started “The impending 2019 elec- by 1.5 percent to US$3.936 billion pumped some 1.861 million bar- billionaire Mansour family. tracking deal data. tions has also got private eq- in 2019. rels of crude oil per day in April, IDH and Man Capital part- The latest deal was the N775 uity investors scrambling to close Wildu du Plessis, head of Af- according to most recent data nered with the World Bank’s Inter- million paid by DE United Foods deals as early as possible,” Ade- rica at Baker McKenzie, attributes from OPEC. That’s 20 percent national Finance Corporation to Industries Limited (DUFIL), biyi added. the expected uptick in deals in the higher than the 1.557 million bar- invest in Echo-Scan, which is one owners of Indomie noodles, in Some of the major deals this two years after 2017, to improved rels daily pumped in 2016. of the biggest medical diagnostics April, to May & Baker Nigeria, for year include the N21.45 billion oil production and foreign ex- Off the back of acute dollar players in sub-Saharan Africa. The the 100 percent acquisition of its or 26.8 per cent acquisition of soft change liquidity. shortages that sent the naira spi- deal was announced January 23. food production line which cov- drink bottling company, Seven- “We note that in Nigeria, pol- ralling to an all-time low of $520 ​In 2018, Atlas Mara was also in- ers its noodles business- Mimee Up, by majority shareholder, icy and economic uncertainties, per dollar at the black market last volved in a deal worth N6.6 billion Noodles. Affelka SA. had contributed to stalled deal year, the embattled currency has for the acquisition of a 3.5 per cent There is however a feeling Another is the $35 million making in 2017,” du Plessis told stabilised since the central bank stake in Union bank on January 15. in the investor community that (N12.6 billion) acquisition of e- BusinessDay. created a market-driven window The transaction increased Atlas deals could be much higher with commerce firm, Konga by Zinox “As these conditions ease in (I&E) in April 2017 and oil prices Maras ‘​ ​stake in the​ lender to 48 per the right government reforms in on February 2. Konga struggled the final months of 2017 and and production recovered. cent worth N91.4 billion. Union some sectors. since an 81 per cent slide in the into 2018, a rebound in M&A to The naira has traded fairly sta- bank has a market cap of N190.498 The average deal value in the naira saw its initial valuation of around US$4 billion in both 2018 ble at N360 per dollar at the I&E billion. four month period between 2008 $USD200 million take a haircut. and 2019 is forecasted,” said du window since its April introduc- Rensource, a Lagos-based and 2017 was $215 million. Deal making in Africa’s biggest Plessis. tion. At Tuesday’s trading then distributed energy provider also Financial and legal advisers economy will stage a comeback Brent oil currently sits at a naira exchanged for N360.64 per secured N1.2 billion ($3.5 mil- said the rising activity in the Nige- in 2018 and 2019, according to four-year high of $76 per bar- US dollar according to FMDQ lion) in bridge financing to grow ria M & A space, after a dull 2016 Chicago-based multinational law rel, and US President Donald data. It exchanged for N361 per its power-as-a-service renewable and 2017, was due to improved firm, Baker McKenzie, as cur- Trump’s decision Tuesday to dollar at the black market. energy business by expanding withdraw from the Iran Nuclear Improved currency stability across Nigeria​ this year​. deal bodes well for a further surge partly contributed to the country’s The round was led by Amaya PE WORD OF THE WEEK in oil prices. exit from recession in the second Capital Partners; however, 0ther Staple financing “With our expectation of US quarter of 2017, with the IMF key investors included the Omid- This means a pre-arranged financing package offered to potential government failing to recertify projecting growth of 2 percent this yar Network and CRE Venture acquirers that includes all the details of a lending package. The name the deal in mind, we expect price year on the back of a 0.8 percent Capital. The deal was announced comes from the fact that the financing details are stapled to the back to trade within $72 to $80 range growth in 2017. January 31. of the acquisition term sheet.

BusinessDay PRIVATE EQUITY & FUNDRAISING (Team lead: LOLADE AKINMURELE - Analysts: MICHEAL ANI, DIPO OLADEHINDE, ENDURANCE OKAFOR, DAVID IBEMERE ... Graphics: DAVID OGAR ) Businessday’s Private Equity and Fundraising section is a weekly publication that provides in-depth analysis on private equity trends and tracks deal activity in Nigeria. Email the PE & F team [email protected] Continues on page 34 Wednesday 09 May 2018 C002D5556 BUSINESS DAY A5 PRIVATEEQUITY &FUNDRAISING People & Perspectives AVCA expects increased PE investment in Consumer products, PE exit trends in Africa Health care, Energy

ENDURANCE OKAFOR

frican Private Eq- uity and Venture Capital (AVCA), the pan-African industry body whichA promotes and enables private investment in Africa, in its sixth annual survey analysis revealed the sectors in Africa where it expects Echo Scan and this deal was to believe that 2018 will be increased private equity in- closed in January 23 2018. better. vestment in 2018. This was followed by N6.4 In 2017, Nigeria recorded The London-based or- million invested by Alta Sem- the highest private equity ganisation expects to see up- per Capital in in consumer deals in five years in the Af- ward trajectory investments healthcare sector, Health rica continent. in; Consumer products & Plus Limited in March of Nigeria outperformed services, Health care, Energy, this year. South Africa and Kenya to FinTech and Education sec- In the Energy sector, Ama- record a total of 112.14 deals tors. ya Capital Partners Com- amounting to $7.8 billion in “One of the reasons we pany made an investment the five year period of 2012 are particularly optimistic for of N1.2billion in Resources, and 2017, with South Africa this year is the demand for which was closed in January recording $2.8 billion while new and large infrastructure 31 of the year under review. East Africa’s largest economy projects. Across the conti- In February 2018, African raked in $1.17 billion. nent, there is a burning need Infrastructure Investment “After the sharp slowdown for new roads, railway lines, Manager closed a deal with of 2016, economic growth in modern ports, airports, pow- Starsight Power Utility, a deal sub-Saharan Africa rebound- er generation, mass housing, that was worth N10 billion. ed last year on the back of new schools, and hospitals,” There was also an invest- firmer commodity prices AVCA said in a statement. ment in Kanji Power Holding and a general improvement The sectors AVCA expect Limited by Reservior Capital in the world economy, par- to record more private equity Corportion, a 60 percent ticularly recoveries in the investments in 2018, aligns stake deal, transacted in Feb- US, Japan, and the EU. The with some sectors that have ruary 2018. second strongest growth already attracted private While in April, De United rate in almost two years was equity investments in Nige- Foods Industries Limited recorded in the third quarter ria in the past four months made a N775 million invest- of 2017,” Paul Boynton, Chief into 2018, as compiled from ment in Mimee Noodles, a Executive Officer, Old Mu- BusinessDay private equity consumer goods sector. tual Alternative Investments deal tracker. Last year, African private said in a statement. For the health sector, two equity produced a strong all- “We expect continued private equity deals have round performance in terms commodity price rises and been transacted so far and of funds raised, successful an improvement in oil prices they include; exits completed, and the to drive further economic Integrated diagnostics number and variety of pro- growth across the region holdings & Man Capital in- jects that were set in motion. next year,” AVCA said in a vestment of N9 billion into Thus, there is every reason publication.

UPCOMING CONFERENCE The Africa trade and investment global summit he 2018 Africa Trade & mote and facilitate international investors. Investment Global Summit trade between Americas, Asia, The event will cover 16 eco- T(ATIGS), is scheduled on Caribbean, Europe, UAE, with nomic sectors, particularly manu- June 24 to 26, 2018 at the World Africa; to facilitate foreign direct facturing, agribusiness, power, Trade Center Washington D.C, investment in Africa, and to pro- construction, transportation, IT, under the main theme “Driving vide a platform for businesses to health, fintech, tourism, telecoms, Trade, Unleashing Investment expand into new markets. and natural resources sectors. and Enhancing Economic Devel- ATIGS 2018 edition will gather ATIGS has a well-structured for- opment: the Gateway to African key economic players from more mat for facilitating direct peer Markets”. than 70 countries including gov- engagement, for more advanced ATIGS is a prestigious biennial ernment delegations, high-profile deal-making, co-investments, business conference and exhibi- African business leaders, project strategic partnerships, and busi- tion designed specifically to pro- developers and international ness networking. Source: AVCA data A6 BUSINESS DAY C002D5556 Wednesday 09 May 2018 Financial Inclusion & INNOVATION Supported by: 5 Highlights from the 2017 Global Findex Report

IBUKUN TAIWO & accounts grew from 38 to 81 our benchmark series, we percent between 2011 and examined the Indian finan- OLAYINKA DAVID-WEST 2017, largely thanks to the cial inclusion ecosystem ubiquity of mobile money. and noted the significant he build up to and hands-on role the In- the launch of 5. The persistent gender dian government plays in the 2017 Global gap in account ownership driving financial access for Findex Report in Last week, we wrote about its citizens. These efforts are April generated the need to prioritise finan- most likely responsible for Ta significant level of buzz cial inclusion for women. the reduced gender gap from within the development This was based on the Fin- 20 to 6 percentage points. community. And for good dex Report highlighting that From 2014 to 2017, women’s reason - with time series women were losing access access to bank accounts in- data now available from 2011 to financial services twice creased from 43 percent in to 2017, the Findex Report as fast as men. However, this 2014 to 77 percent. presents a useful estimate of problem of female exclusion However, there is also an our financial access journey is not unique to Nigeria. In important lesson embedded so far - the progress made spite of the recorded and in this finding - access does globally and, in Nigeria’s much welcome progress not automatically result in case, the lack thereof. globally, the global gender activity. The report revealed The report itself is a com- gap remained at 9 percent- that India has a large num- pendium of insights which age points for developing ber of inactive accounts. needs to be uncovered and countries. This goes to show that analysed to unearth even from seven countries, one to 44 percent in 2017. such as Burkina Faso, Ga- While more men and financial inclusion goes more useful information of which includes Nigeria bon, Ghana, and Senegal — more women own financial beyond bringing access to especially on the ways we (other countries include 3. In sub-Saharan Africa, there were large increases in accounts than ever before, excluded adults, but also can enhance access to finan- Bangladesh, China, India, mobile money is driving the share of adults with only the gender gap remains involves figuring out ways to cial services for even more Indonesia, Mexico, and Paki- financial inclusion a mobile money account as unchanged for developing encourage continuous use. people. stan). Since 2014, sub-Saharan well as in the share with both countries at 9 percentage Nevertheless, this is a good And that’s what we’re Africa (SSA) has experienced types of accounts. points. Between 2014 to problem to have as hav- doing this week. Let’s begin: 2. DFS is driving financial a burst of mobile money Unfortunately, large mar- 2017, men’s account owner- ing increased access, India activity account users as the in- kets such as Ethiopia and ship increased from 60 to 67 can now channel resources 1. Good news: Global Fi- Digital financial services novation moved across the Nigeria, are yet to see im- percent in these countries, towards encouraging and nancial Inclusion is on have been critical in driving region from East Africa to portant gains from mobile while women’s ownership deepening usage. On the the rise financial access and activity West Africa and beyond. money. The report attributes grew from 51 to 59 percent. other hand, Nigeria still We’ll start off with the good for millions as there was sig- This was possible due to the this failure to the absence of However, there are out- has to crack the code on news. Financial inclusion nificant increase in the use subsequent tweaks made to an enabling environment lier countries where notable increasing access and then is on the rise globally. 69 of mobile phones and the create an enabling environ- for digital financial services. improvements were made in usage. percent of adults worldwide internet to conduct financial ment in these markets. closing the gender gap. For What are your thoughts – 3.8 billion people – now transactions. Between 2014 While the percentage of 4. Rural access is on the up example, in India the gender and observations on the have an account at a bank and 2017, there was a signifi- adults with a bank account and up gap plummeted from 20 to 6 2017 Global Findex Report? or mobile money provider. cant increase in the percent- has remained the same, the Progress has also been made percentage points between We would appreciate your This is up from 62 percent age of account owners who share with a mobile money in rural areas. The percent- 2014 and 2017. Also, Indo- feedback. Reach us by email: in 2014 and just 51 percent send or receive payments accounts almost doubled, age of rural households with nesia now has more women [email protected] in 2011. On the other hand, digitally - in the developing to 21 percent. In fact, SSA an account increased from (51 percent) having access or Twitter: @sustainabledfs. about 1.7 billion adults re- world, it went from 57 per- is home to eight countries 19 to 39 percent in sub-Sa- to financial accounts than main unbanked — without cent to 70 percent. Digital where more than 20 percent haran Africa. Nevertheless, men (46 percent). The data an account at a financial payments are also on the of adults use only a mobile there is still much more to from these outlier countries Olayinka David-West and institution or through a mo- rise as the number of people money account: Burkina do, as roughly 75 percent of is fascinating and warrants Ibukun Taiwo are members bile money provider. Vir- in developing countries who Faso, Côte d’Ivoire, Gabon, the population in SSA lives in further exploration in order of the Sustainable and tually all these unbanked made or received a digital Kenya, Senegal, Tanzania, rural areas. Unsurprisingly, to reveal how they were able Inclusive Digital Financial adults live in the developing payment in the past year , and Zimbabwe. Kenya leads the way. Rural to achieve these. Services initiative of the world and half of them come grew from 32 percent in 2014 In some economies — Kenyan households with Earlier this year, during Lagos Business School How effective financial inclusion impacts poverty level in Nigeria

ENDURANCE OKAFOR Akinwumi, Head of Research economic growth in Nigeria,” to be up 18.8 percent in Q3 However, access to financial constrained by access of credit FSDH, Merchant Bank, told a Lecturer at University of 2017 from 13.9 percent from services by many Nigerians to firms and individuals; high BusinessDay by phone. Lagos who preferred not to be a year earlier, and the low will inevitably accelerate inflation which discouraged inancial inclusion, Analysts who spoke on quoted, said. minimum wage of N18000 economic prosperity; mobi- savings; poor physical and a tool for poverty al- how financial inclusion can “Without inclusive finan- per month is another issue lize financial resources for institutional infrastructure; leviation and income help ease poverty in Africa’s cial systems, poor people that has made the standard increased investment which inaccessibility by most poor redistribution in de- largest economy recom- only rely on their own lim- of living of the citizens to be invariably lead to overall people due to lack of collateral velopingF countries, is seen by mended financial service ited savings to invest in their much lower than its other macroeconomic growth and or credit records as well as lack analysts to be a major drive providers to design commu- education or become entre- developing peers. development,” an analyst of national credit which deter to easing poverty in Nigeria. nity-based financial educa- preneurs. Likewise, small This has however, led to who asked for his identity to lending. As inclusive financial sys- tion and marketing to suit enterprises must rely on their the exclusion of about 41.6 be withheld said. Financial inclusion or tems are of great benefit to any given environment and limited earnings to pursue percent of the Nigeria popu- Whereas, in other de- inclusive financing is the poor people and other disad- also for policymakers in the promising growth opportuni- lace from the financial circle, veloped countries, where delivery of financial services vantaged groups, facilitating country to provide successful ties,” he added. reported by EFINA, a finan- there are complex and at affordable cost to section broad access to financial ser- innovations that can facilitate Nigeria, the most popu- cial research organization. multi-dimensional factors of disadvantage and low in- vices, with-out price or non- the benefits of financial in- lous nation in the African This is following the World that contribute to financial come segments of society, in price barriers to their use. clusion in safe ways. continent, with about 3.2 Bank’s report which revealed exclusion; hence, variety of contrast to financial exclu- “Financial inclusion will “Financial service provid- percent annual growth rate, that 59 percent out of the 2 providers, products and tech- sion where those services be able to ease the level of ers should design financial is projected by the United billion adults worldwide, do nologies that best suits the are not affordable or avail- poverty in Nigeria, in the products to suit level of educa- Nation (UN) to be the world’s not have access to a bank ac- socio-economic, political, able. Conversely, financial sense that, when people and tion in any given environment third most populous nation count owing to lack of fund as cultural and geographical exclusion refers to a process small businesses are finan- which bothers on documen- by the year 2050. financial services and prod- conditions peculiar to them whereby people encounter cially included, they can have tations as regards account Although, over millions of ucts remains too expensive are introduced, a developing difficulties accessing or -us access to credit, which will opening, bearable service the citizens of Africa’s largest for low income earners. country like Nigeria, access ing financial services and enable them to expand oper- charge, less cumbersome loan exporter of crude oil subsist “The major reasons for to formal financial services products in the mainstream ations, employ more people, processing with affordable on less than $2 a day, and financial exclusion are hard- by the majority poor popula- market that are appropriate and achieve what they would interest rates so as to promote this is as a result of high un- core poverty and illiteracy tion remains limited due to to their needs and enable have not been able to achieve more participation and inclu- employment rate which was which invariably makes fi- inadequate available financial them to live a normal social prior to when they were not sive financial system, hence reported by the National nancial exclusion both social services which include high life in the society in which financially included,” Ayo alleviate poverty and spur Bureau of Statistics (NBS) and financial phenomena. levels of government debt they belong. Wednesday 09 May 2018 C002D5556 BUSINESS DAY A7 FT

FINANCIALLeaders of China and Allianz openTIMES to North Korea hold ‘merger of equals’, second meeting says chief executive Page A7 Page A9 World Business Newspaper NY attorney-general Schneiderman quits after misconduct claims #MeToo movement supporter resigns after 4 women accuse him of physical abuse

KADHIM SHUBBER backed securities in the run-up to the financial crisis. ric Schneiderman, the New York Andrew Cuomo, New York state gov- attorney-general who has been ernor, said on Monday he would ask for Ea prominent supporter of the an investigation into Mr Schneiderman #MeToo movement, resigned late on by a New York district attorney. He called Monday after four women accused on the attorney-general to resign for the him of physical abuse in a New Yorker “good of the office”. On Monday evening, shortly before Eric Schneiderman: ‘In the privacy of intimate relationships, I have engaged in role-playing and other consensual sexual article. activity. I have not assaulted anyone’ © Bloomberg The allegations came from women Mr Schneiderman announced his who had relationships with Mr Schnei- resignation, Kellyanne Conway, a close derman, who denied assault and non- adviser of Mr Trump, referred to a 2017 Investors drop Italian assets as political doubts reach markets consensual sex but said the claims tweet by the attorney-general in which would prevent him from continuing he told Mr Trump that “No one is above Heavy fall for Milan stocks led by financials; sovereign debt yields at 2-month high in his job. the law”. “Gotcha,” she tweeted. Bunds of the same maturity, seen as ing they would stabilise. “In the privacy of intimate relation- MICHAEL HUNTER AND KATE ALLEN ships, I have engaged in role-playing Michelle Manning Barish, a political Europe’s safest sovereign debt, is up Richard McGuire, head of rates and other consensual sexual activity. I activist who dated Mr Schneiderman talian assets are being hit by a 1.4bp at 0.542 per cent, its highest strategy at Rabobank, said: have not assaulted anyone. I have never periodically from 2013 to 2015, told the since late March. Trading BTPs has been less about New Yorker he repeatedly hit her across brisk sell-off, with the growing engaged in non-consensual sex, which prospect of a second general Peter Schaffrik, global macro gauging political risk premia and is a line I would not cross,” he said in an the face without her consent during sex. I strategist at RBC Capital Markets, more about estimating the market’s However, the first time he hit her, election within months leaving initial statement on Monday. Milan stocks looking distinctly out said the market moves indicated reaction function; spreads narrowed Later, after the New York state gover- they were fully clothed, the New Yorker of fashion with investors and the “a bit of a correction” but “I don’t after the election as investors looked nor called for his resignation, Mr Schnei- reported. “This was under no circum- see the narrative changing”. Any through the political risk premia and derman said he “strongly” contested the stances a sex game gone wrong. This did country’s bond yields rising. not happen while we were having sex. Italy’s main stocks benchmark, fresh election was likely to produce the lure of positive carry was too at- allegations but would step down by the a similar outcome to the previous tractive to resist. end of business on Tuesday. I was fully dressed and remained that the FTSE Mib, is down 2.2 per way,” she told the magazine. cent, a significantly sharper fall one, he said. Investors have been happy to Mr Schneiderman — who brought a Referring to the recent tightening trade Italy because of the cyclical civil lawsuit against Harvey Weinstein, Ms Manning Barish said on Twitter than the 0.2 per cent slip on the the disgraced film producer, after sexual on Monday she had spoken up “after the Europe-wide Stoxx 600. Financial of the spread between Italian and tailwinds, which until recently have assault allegations were made by dozens most difficult month of my life”. “I could stocks are taking the biggest toll German bond yields, Mr Schaffrik been very reassuring, and the posi- of women — is accused of hitting and not remain silent and encourage other on the Milan index. UniCredit is added: tive carry is attractive. The cyclical choking romantic partners without their women to be brave for me,” she said. down by more than 3 per cent, Carry still counts and Italy is one backdrop is still positive in the short consent. The claims were made by four Tanya Selvaratnam, an author, gave with Intesa Sanpaolo weaker by of the carry countries, that’s not go- term, and the prospect of another women, two of whom spoke to the New a similar account to the magazine. She almost 2 per cent. ing to change, certainly not in the election could be positive in that it Yorker on the record. was romantically involved with Mr Investors are also selling Italian near term. will take several months to materi- The New York attorney-general is the Schneiderman in 2016 and 2017. government debt, known as BTPs, Although the spread has blown alise, maintaining the status quo for latest person to be accused of improper Ms Selvaratnam told the New Yorker sending yields higher. The yield on out from a low of 111 basis points a while longer. the slaps were not consensual and said: behaviour as the #MeToo movement has the benchmark 10-year govern- on 10-year debt yields last month to Inconclusive elections are hardly encouraged women to speak out about “This wasn’t sexual playacting. This top 131 bps on Tuesday, Mr Schaffrik unusual for the highly indebted na- was abusive, demeaning, threatening ment paper is up 8.6 basis points to alleged wrongdoing by powerful men in 1.848 per cent. The yield on German said he did not expect that to widen tion, but a repeat poll so soon would business and government. behaviour. significantly more, instead anticipat- be unprecedented in postwar Italy. He has been a frequent critic of “After I found out that other women Donald Trump, leading a charge by had been abused by attorney-general attorneys-general to block the Trump Schneiderman in a similar manner Dollar hits renewed 2018 highs after Powell comments administration’s policies in the courts, many years before me, I wondered, Italian gridlock hits stocks, euro sliding while oil prices poised for Trump’s Iran decision and a thorn in the side of Wall Street who’s next, and knew something needed banks. Since 2010, the New York attor- to be done,” Ms Selvaratnam said in ney-general has secured $4bn in settle- a statement provided by her spokes- MICHAEL HUNTER AND Research. Street opens weaker with the S&P ments over the mis-selling of mortgage- person. STEPHEN SMITH “Given President Trump’s con- 500 down 0.2 per cent while Euro- tinued criticism of the deal, the pean stocks are being weighed by hat you need to know personnel changes in his foreign renewed jitters surrounding political Shire board recommends £46bn • Dollar extends highs for policy team and a revitalised US al- instability in Italy. W2018 after Fed chair points liance with Israel and Saudi Arabia, Mr Powell’s remarks came with to tighter policy US policy has become more con- sentiment already cautious ahead takeover by Takeda • US crude trades around $70 ahead of frontational.” of an announcement from the White Pharma group backs offer from Japanese rival after rejecting four previous bids White House statement on Iran deal Hot topics House on the international nuclear • Wall Street opens weaker with the There are renewed year-highs for deal with Iran. The prospect of a SARAH NEVILLE AND represents a 59.6 per cent premium S&P 500 down 0.2% the dollar — most notably at the ex- US withdrawal from the accord has KANA INAGAKI to Shire’s closing price of £30.70 on • Global stocks soft as Europe slips pense of the euro as it fell to its lowest brought geopolitical risk back to in- March 27, before the Japanese group hire, the rare diseases specialist, amid Italy election jitters; FTSE Mib level in 2018 — after a hawkish- vestors’ attention and left oil prices revealed its interest in the company. down 1.8% has unanimously recommended Takeda is offering $30.33 (£22.35) sounding signal from the chairman trading near multiyear highs. • Euro hits fresh low for the year; Sits shareholders accept a take- in cash and 0.839 Takeda shares for of the Federal Reserve coincided But US marker West Texas In- over offer from Japanese group Takeda each Shire share, which would lead to sterling also below $1.35 with a rise in geopolitical risk. termediate is down 0.8 per cent to that values the company at about Shire shareholders owning approxi- • EM forex weakness extends as Jay Powell warned that markets $70.18 a barrel as traders reassess £46bn and adds to a wave of M&A ac- mately 50 per cent of the combined Turkish lira hits new record low should not be surprised by further the odds on President Trump’s an- tivity in the pharmaceuticals industry. group. Leading quote policy tightening from the US central nouncement, due later today. The Dublin-based company has Shire shares opened up 4.9 per cent “The geopolitical consequences bank in a speech in Zurich. The index It rose above $70 for the first time spent two weeks conducting due at £40.40 after the news on Tuesday of a possible dismantling of the [Iran tracking the dollar touched 93.139, in more than three years on Monday diligence on the offer of just over £49 morning. nuclear deal] would likely play a up 0.4 per cent on the session and as the White House prepared to a share, after rejecting four previous Susan Kilsby, chairman of Shire, larger and long-lasting role in push- marking a rebound of more than 5 make a decision on whether it would offers from Takeda due to concerns not said: “We firmly believe that this com- ing oil prices higher than short-term per cent from its February intraday withdraw from the Iranian nuclear only about the price, but also the high bination recognises the strong growth policy uncertainty,” said Michael low. pact. International benchmark Brent proportion of stock compared to cash. Cohen of Barclays’ Commodities The offer now being recommended Continues on page A8 Global equities are softer as Wall crude is 0.6 per cent lower at $75.72. A8 BUSINESS DAY C002D5556 Wednesday 09 May 2018 FT NATIONAL

US to drop its opposition to it being China’s vice-premier DC-bound for trade talks treated as a market economy in the World Trade Organization, something Liu He visit renews cautious optimism of resolution to trade impasse The US demanded a $200bn reduc- Beijing has long insisted it became suggested — despite their hardline for China and Globalization, a Beijing tion in two years of America’s $337bn entitled to on the 15th anniversary of EMILY FENG AND SHAWN DONNAN rhetoric — that both Beijing and Wash- think-tank. trade deficit with China by 2020. It also its entry into the WTO in 2016. Mar- eijing’s top economic adviser is ington were eager to avoid triggering a “We are working on something that wants Beijing to halve subsidies under ket economy status would make it to visit Washington next week, trade war. we think will be great for everybody,” its Made in China 2025 plan, a key eco- more difficult for the US to defend its Brekindling cautious optimism “It will be the second leg of the high- Sarah Sanders, White House press nomic policy that supports domestic anti-dumping rulings against Chinese that China and the US can negotiate level consultation, showing that both secretary, told reporters. industrial sectors at the expense of companies. their way out of a trade impasse. sides hope to keep on the momentum The continuation of talks came foreign businesses, according to the US. China views the US request to effec- The White House on Monday con- of consultation,” said He Weiwen, a after the two nations dug their heels US-China tech wars threaten ‘eco- tively abandon its key industrial policy firmed the visit of Liu He, China’s vice- former commerce ministry official during last week’s first round of trade nomic carnage’ as unacceptable, stalling last week’s premier, with experts saying the move and now a senior fellow at the Center negotiations. In return, China has called for the talks. Shire board recommends £46bn takeover... Comcast prepares rival bid to crash Walt Continued from page A7 potential of our leading products and Disney-Fox deal innovative pipeline and is in the best US cable company in talks to secure interests of our shareholders, our pa- up to $60bn for all-cash offer tients and the communities we serve.” Under UK takeover rules, Take- JAMES FONTANELLA-KHAN da had to make a statement on its intentions towards Shire no later omcast has held talks with US than Tuesday. It said the deal would banks to secure up to $60bn strengthen Takeda’s core therapeutic Cin financing to gatecrash Walt areas, “bringing together complemen- Disney’s $52bn acquisition of 21st tary positions in gastroenterology and Century Fox’s entertainment business neuroscience, and provide leading and global assets, said people briefed positions in rare diseases and plasma- about the US cable company’s strategy. derived therapies”. Brian Roberts, chief executive of Christophe Weber, Takeda’s chief Comcast, is getting ready to make an executive, said he expected the tie- all-cash offer for Fox’s assets in the up to deliver cost savings of at least event that a US judge approves AT&T’s $1.4bn, which may include a 6 to 7 agreed $108bn takeover of Time War- per cent cut in the combined 52,000 ner, which the US Department of Jus- workforce. tice is trying to block, two people said. Including the value of Shire’s debt, The preparatory steps taken by the deal is worth £59bn, according to Leaders of China and North Korea hold second meeting Comcast to acquire Fox come as the US data from Dealogic, and would be the Kim travels to northern Chinese port city of Dalian for summit with Xi cable group has been trying to intrude largest foreign acquisition by a Japa- on Rupert Murdoch’s deal to buy 61 nese company. EMILY FENG The two leaders exchanged views to Beijing in March during which per cent of Sky, which would give the However, there are questions on nuclear disarmament and the he met with Mr Xi as well as Wang founder of Fox the ownership of the about whether the deal will be con- orth Korean leader Kim Jong Korean peninsula “in a cordial and Huning, a top Communist party entire European media company. summated. Un has travelled to China for friendly atmosphere” with Presi- official. Comcast has offered to buy Sky Takeda’s shares have already fallen a second time to meet Chi- dent Xi affirming close Sino-North Rumours that a high level North for £12.50 a share, valuing the pay-TV nearly 18 per cent since it revealed its N group at £22bn — almost £4bn more nese President Xi Jinping ahead of Korean ties, “an unshakeable pol- Korean government official was interest in Shire. Some analysts believe a planned summit between North icy”, according to Xinhua, China’s visiting the northern port city of than Mr Murdoch’s bid. another bidder could yet emerge and Korea and the US. state news agency. Dalian began swirling around early Disney agreed to buy Fox’s assets, potentially buy Shire for a lower sum, The meeting was confirmed both This is the second visit to China Tuesday after it appeared an aero- including the existing 39 per cent stake provided the cash component was by Chinese and North Korean state by North Korea’s Mr Kim, who also plane with North Korean markings it has in Sky, last December after Mr higher, given that some Shire inves- Murdoch turned down a higher bid news agencies on Tuesday evening. first travelled by armoured train landed there under heavy security. tors are concerned about holding from Comcast on grounds that it had significant amounts of Takeda paper. a lower chance of winning US regula- Another potential risk to the deal is tory approval. Under the terms Mr that Takeda could fail to secure a green Hedge fund raises complaint about UniCredit capital Murdoch agreed with his Disney coun- light from its shareholders. Caius Capital writes to European regulator over complex instruments issued by Italian bank terpart Bob Iger, the company behind In order to issue new shares to Mickey Mouse and Captain America acquire Shire, Takeda needs to secure will also assume Fox’s $13.7bn of net MARTIN ARNOLD der question at UniCredit and it is in conversion is likely to give investors a two-thirds approval from sharehold- the process of converting them into ordinary shares worth only about 6 debt. ers holding one-third or more of the hedge fund has told European ordinary shares. per cent of their face value. A wave of media deals have been voting rights. authorities that two-thirds of Shares in UniCredit were 2.8 Caius is likely to profit from such a struck in recent years as traditional Investor sentiment towards the UniCredit’s equity capital is per cent lower in early trading on conversion as it has taken a position players are facing growing competition deal has also been chilled by the fact A from a new generation of digital play- invalid under EU rules unless the Tuesday. betting against the Cashes. The fund that Takeda would have to take on debt ers with deep pockets, ranging from Italian bank converts almost €3bn of Caius has called on the EBA to succeeded with a similar bet on secu- equal to nearly five times its earnings open an investigation into “incorrect rities issued by West Bromwich Build- Netflix to Amazon and Apple. before interest, tax, depreciation and complex instruments into ordinary regulatory capital treatment derived ing Society, which last year swapped US president Donald Trump has amortisation. shares, imposing heavy losses on threatened to break up Comcast, by UniCredit” from its 2008 issue of them for other instruments designed But Takeda said on Tuesday that some investors. which owns NBCUniversal, the media the substantial cash flow generation Caius Capital, a London-based €2.98bn in convertible and subordi- to address the concerns Caius raised group with assets that include Univer- expected from the deal would enable distressed credit fund launched two nated hybrid equity-linked securities with regulators about their eligibility sal Studios and the NBC broadcast net- the combined group “to de-lever years ago, has written to the European (Cashes). as CET1 capital. work, arguing it has too much power quickly following completion”. Mr We- Banking Authority complaining that Caius says the Cashes should “Whilst we do not deny that we over US TV viewers. It is unclear how ber said the company aimed to reduce UniCredit has misclassified a chunk not count towards UniCredit’s CET1 are a commercially motivated invest- Mr Trump would be able to enforce the debt to two times ebitda in three to five of its common equity tier one (CET1) because they are not on the EBA’s list ment firm, by flagging these issues break-up of NBCUniversal from Com- years, protecting its investment grade — a key benchmark of banking of approved instruments, they are be- pre-emptively we are ensuring that cast, although it is technically possible. credit rating. strength — for the past decade. ing counted both as CET1 and Tier 2 investors can have confidence in the AT&T’s proposed acquisition of Analysts say the key to winning If the regulator backs the com- capital and they create a restriction capital of banks,” said Toby Dodson, Time Warner is being challenged on shareholder approval depends on plaint, the move could leave holders on cancelling dividend payments on a partner at Caius. similar grounds but several antitrust whether Mr Weber can convince scep- of the instruments nursing more the bank’s ordinary shares. “CET1 capital is sacrosanct and experts have said that the likelihood is tical investors that the risk of taking than €2bn of losses. It would also cast The fund said the Cashes have should not be an obstacle to raising slim that a US judge will back the DoJ’s on more debt can be offset by Shire’s doubt over whether other big Euro- provisions that allow the bank to new capital,” he said. “But because of request to block the merger. lucrative rare diseases portfolio, Shire pean banks have correctly calculated automatically convert them into or- the Cashes, if I put more money into A victory in court for AT&T would has annual operating profits of $6bn the capital buffers that act as the main dinary shares if there is “more than UniCredit, some of that money will be significantly boost Comcast’s chances versus Takeda’s $2bn. firebreak to absorb losses in a crisis. an ‘insubstantial risk’ that UniCredit used to make payments to investors of successfully acquiring Fox’s as- Kazuaki Hashiguchi, analyst at would be subject to a regulatory or who put money in previously.” sets, which include movie studio Daiwa Securities, said Takeda’s share- HSBC last week said its total capital burden or cost under the UniCredit said in an emailed and a portfolio of cable television holders may have shifted from being capital ratio had increased after some transaction”. statement: “The regulatory treat- channels but not Fox News, which passive traditional investors attracted grandfathered Tier 2 securities due will continue to be controlled by the Such a conversion would leave in- ment of the Cashes shares has been to the Japanese group’s stable divi- to be redeemed were instead reclas- Murdoch family. dends and earnings to a more risk- sified as “fully eligible” instruments. vestors in the Cashes facing big losses. fully disclosed to the market and Comcast declined to comment on tolerant group during the one-month Italy’s Monte dei Paschi di Siena The securities are currently trading at confirmed and reviewed by the com- the news, which was first reported by sell-off since late March. issued similar securities to those un- about 75 per cent of face value, but a petent regulators.” Reuters. Wednesday 09 May 2018 C002D5556 BUSINESS DAY A9 FINANCIAL TIMES COMPANIES & MARKETS @ FINANCIAL TIMES LIMITED Allianz open to ‘merger of equals’, says chief executive European insurer warns that high valuations are obstacles to transformative deals from natural disasters and years of OLAF STORBECK AND falling prices have left some compa- OLIVER RALPH nies looking for buyers. Allianz is widely believed to have he chief executive of Allianz been one of the seven companies that has suggested that he is open earlier this year expressed an interest Tto the idea of a “merger of in XL Group, the Bermuda-based equals” with a large rival but said insurer. XL was eventually bought by high stock market valuations and Axa, which offered €12.4bn and will rising acquisition premiums were pay a 54 per cent premium on the big obstacles to transformative target’s pre-deal share price. M&A. That deal was poorly received by Allianz chief executive Oliver Bäte says good acquisition targets are hard to find © AFP “It is very difficult to justify pay- investors, with Axa shares falling 10 ing 30 per cent more on a €30bn per cent in the aftermath of the an- asset than to pay 30 per cent on a nouncement. €5bn asset,” Oliver Bäte told the Mr Bäte said premia seen in recent Wall St marches higher fuelled by energy, Apple gains Financial Times, pointing to higher deals of about 50 per cent on the cost and revenue synergies needed market price were “rather crazy”, and MAMTA BADKAR 1.9 per cent to $187.31 — having Saturday. to recoup such a mark-up, which he stressed the importance of capital closed at a record high on Friday The rally in oil prices also ap- could be marred by significant in- discipline. all Street was on the front and clocking its biggest weekly peared to weigh on shares of tegration risks. “When I was on the way into the foot on Monday, lifted by gain since 2011. Apple shares were airline companies, with United This does not mean that trans- job, many investors told me that [Al- a rally in energy and tech lifted after Warren Buffett’s invest- Continental shares down 1.5 per formative deals are off the agenda, lianz was] very well-respected for W stocks as Apple pushed deeper into ment vehicle last week renewed cent to $67.33, American Airlines the head of Europe’s largest insurer many things but not for protecting record territory. its multibillion-dollar endorse- shares down 0.3 per cent to $42.61, argued, but he said good targets were our capital and managing it very care- The S&P 500 was up 0.5 per ment by snapping up another Delta shares down 1.5 per cent to hard to find: “We’ve decided that we fully,” he said. 75m shares in the company. On $51.55 and shares in the Southwest have not found yet the attractive asset cent to 2,676.02. The Dow Jones Earning more trust among inves- Monday, Mr Buffett told CNBC off 1.3 per cent to $52.12. US car- to make us comfortable to plough out tors in this regard has been a key pri- Industrial Average climbed 0.8 per a lot of money.” ority for the chief executive, who has cent to 24,445.99, while the Nasdaq that he would “love to own 100 per riers last month cautioned that Mr Bäte has made no secret of been in charge since 2015. “I don’t Composite rose 0.7 per cent to cent of it”. higher fuel costs could weigh on his desire to do deals, and in the past want to lose that reputation because 7,260.71. Oil prices were at four-year their profits this year. has pointed to property and casualty of a deal.” Energy led the benchmark S&P highs amid rising tensions be- Elsewhere, Treasuries were insurance as an area where he would Mr Bäte categorically ruled out 500, climbing 2.1 per cent on the tween the US and Iran. Iranian mixed with the yield on the US 10- like to expand. hostile takeovers, arguing that within back of higher oil prices, while oresident Hassan Rouhani warned year down 0.4 basis points to 2.946 Market rumours have linked Al- the financial services sector, large telecoms was the biggest decliner, on Sunday that US President Don- per cent, while that on the 2-year lianz with an offer for its Swiss rival transactions could only be successful down 0.5 per cent following its 4.6 ald Trump would be making a was little changed at 2.497 per cent. Zurich, which has a market capi- if they are supported by both sides. “historic” mistake if the US were Yields move inversely to price. talisation of €40bn, compared with per cent drop last week. “We would never go after anybody to withdraw from its 2015 nuclear The dollar index, a gauge of the Allianz’s €87bn. against their will; never.” The advance in technology Mr Bäte neither confirmed nor Mr Bäte suggested that the high stocks came as Apple pushed deal with Tehran. Mr Trump is buck against a basket of peers, was denied the bid speculation, point- stock market valuations and rising deeper into record territory, rising expected to make his decision by up 0.2 per cent to 92.76. ing to the insurer’s longstanding takeover premia implied that a merg- policy on not commenting on market er of equals would be an attractive rumours. path to a large, transformative deal. Last year Allianz spent £500m on \“However, large companies Macquarie lays off analysts as Mifid bites a 49 per cent stake in UK insurer LV’s need to be ready for mergers, and Equity research regulations spur shake-up at Australian bank’s European arm general insurance business. Earlier we haven’t found many,” he said, this year it paid €1.9bn to buy out adding that executives were not LAURA NOONAN ties, metals and mining, oil and gas, are interested in,” said Shai Hill, Mac- minority investors in Euler Hermes, always driven by what is best for financials, disruptive technology, and quarie’s head of European research. the Paris-based trade credit insurer. shareholders and companies, but acquarie’s European divi- consumer and quantitative research. So far Nomura is the only big It has since been linked with other their own jobs. “We are always sion is laying off a handful The bank would not clarify wheth- global bank to have pulled back en- targets in the rapidly consolidating open for these discussions, and of analysts and reshaping er it would cease research in some tirely from European equities in light property and casualty insurance sec- more so than, I think, other institu- M other areas, or whether there would of the Mifid II reforms. Nomura’s its coverage around six key sectors, tor, where a combination of claims tions.” as EU groups get to grips with regu- be job cuts and would not say how decision to close its European equi- lations forcing investors to explicitly many people it employed in its Eu- ties franchise was taken in 2016. The pay for reports and analysts’ time. ropean equities research division. A company has since said it may pull Elliott makes $7bn takeover offer for Athenahealth The Mifid II regulations intro- person familiar with the plans, how- out of US research as well, as the ever, told the Financial Times that rules begin to have a global impact. LINDSAY FORTADO “has not worked for many years, is duced in January have been hailed as the biggest ever shake-up of Eu- there would be a “handful” of cuts. Banks have tried to differenti- not working today and will not work Announcing the changes, Mac- ate their research offerings with lliott Management, Paul in the future,” Elliott partner and se- ropean equity research. By forcing quarie said it had hired Royal Bank deeper reports and more meaning- Singer’s activist hedge fund, nior portfolio manager Jesse Cohn companies to unbundle research ful engagement with their clients. has made an offer to acquire said in a letter to the company’s from other services, the rules end the of Canada’s Peter Lenardos as its E head of financials research, as well For example UBS’s Question Bank Athenahealth, an American elec- board on Monday. longstanding practice of paying for tronic medical records company, “For many years, despite all of research implicitly through trading as KBW’s Hari Sivakumaran, who asks clients to submit questions for about $7bn in one of its largest its advantages, Athenahealth’s stock commissions and other fees. will cover European banks. they would like to be answered by attempted takeovers to date. price has underperformed because Fund managers have responded Sreedhar Mahamkali and Guy the research team. Elliott said in a letter to Athe- the company has failed to correct by sharply cutting the number of Peddy were named as co-heads of Star analysts have become highly nahealth’s board on Monday that a host of identifiable operational investment banks and brokerages the newly formed disruptive tech- courted as groups try to position its bid for $160 per share offered issues,” he added. they take research from. As a result nology and consumer team, which their offering around the most high- “compelling, premium value to Athenahealth was one of the banks and brokerages are grappling promises to provide “unique insights ly ranked experts in given sectors. shareholders.” At Friday’s market biggest beneficiaries of Obama-era to make their offerings more attrac- on how technology and new dis- Some are experimenting with close, the company had a market rules that required doctors to use tive, while at the same time cutting rupters impact established formats pricing systems, which span every- capitalisation of $5.1bn, and shares electronic medical records rather their costs so research does not across retail, media and telecom- thing from a flat rate for all access were trading at $126.08. than paper files. But many of the make a loss. munications — a fast-moving topic to charging per minute of phone Athenahealth said it had re- systems used to meet those require- On Monday the European arm of that investors are keen to explore”. calls and auctioning analysts’ time. ceived the offer and that the board ments are seen as clunky and im- Australian bank Macquarie became “The latest developments in our Most executives say it is too soon would review it. perfect and vulnerable to disruption the latest to announce changes. team not only reflect our commit- to say how their business models Elliott has had “extensive private from better technologies that use ment to our European research busi- will survive the Mifid II era, since engagement” with the company’s big data and artificial intelligence Macquarie, which is ranked 23rd for European equity research in the ness but most importantly ensuring their investment fund clients are still management and board and that to help guide physicians. that our clients receive the benefits experimenting with what they want Athenahealth shares surged latest benchmark Extel survey, said it the talks have been “constructive,” of Macquarie’s global perspective in and how much they are willing to but the “stark reality” is that as a more than 20 per cent to $152.04 a would focus its efforts around a core the specialist, dynamic sectors they pay for it. public company, Athenahealth share on Monday. of six areas: infrastructure and utili- A10 BUSINESS DAY C002D5556 Wednesday 09 May 2018 & RESEARCHA WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU) [email protected] 08106395676 From which states did telecoms firms make the most revenue in 2017?

75 percent. In other words, 75 out TELIAT SULE of 100 adult Nigerians had an active mobile line as at last December. s at December 2017, the Eleven states beat the national mo- 36 states and FCT Abuja bile penetration rate. Ogun State, accounted for 145 mil- with 176 percent mobile penetra- lion active mobile lines. tion rate, posted the highest mobile In terms of distribution penetration rate in the country. amongA states, Lagos, Nigeria’s com- Abuja FCT had 167 percent while mercial nerve centre, had 19.4 mil- Lagos, Nasarawa and Edo states lion lines, representing 13.4 percent had 155 percent; 132 percent and of the nation’s active mobile lines. 110 percent respectively. Ogun State, the nation’s industrial Kwara State’s mobile penetra- hub, had 9.1 million active lines, tion rate of 101 percent outper- implying that 6.3 percent of Nige- forms the national benchmark of ria’s active lines were domiciled in 75 percent. Other states are Oyo, 99 that state. Oyo, 7.75 million active percent; Niger, 95 percent; Delta, mobile lines (5.3 percent), Kano, 83 percent; Kaduna, 80 percent 7.38 million mobile lines (5.1 per- and Abia, 79 percent. River State’s cent); and , 6.64 mil- mobile penetration of 75 percent lion mobile lines (4.6 percent) are equals the national rate. the five states having highest active Bayelsa, 42 percent; Sokoto, 41 mobile lines in the country. When percent; Ekiti,39 percent; Zamfara, combined, the five aforementioned 38 percent and Jigawa, 30 percent states accounted for 34.7 percent had the lowest mobile penetra- of the nation’s active mobile lines. tion rates in the country as at last Source: NBS, BRIU They are followed by Abuja FCT, December. 5.95 million active mobile lines (4.1 Ogun State topped the internet Day Research and Intelligence Unit and N71.01 in Ekiti State. The state has the highest number percent); Rivers, 5.46 million active penetration rate at 123 percent (BRIU) attempted to provide more Similarly, Abuja, Ogun, Niger, of TV and radio stations majority of mobile lines (3.8 percent); Niger, compared with the national inter- information on the states in Nigeria Lagos and Nasarawa states are which have very active social media 5.26 million lines (3.6 percent); net penetration rate of 51 percent. where the telecoms firms made the topmost on the daily expenditure accounts such as Facebook, Twitter, Delta, 4.69 million active mobile Abuja FCT posted 119 percent most revenue in 2017, through a on internet data usage. An average Instagram and Whatsapp with mil- lines (3.2 percent), and Edo State, internet penetration while Lagos, section dedicated to telecommu- Abuja resident expended N249.93 lions of followership. 4.64 million active mobile lines(3.2 Nasarawa and Edo states had 109 nications in about to be published per day on data in 2017. An average The seat of power, Abuja, shares percent), and together are the top percent; 90 percent and 69 percent State of States Report 2018. By resident of Ogun State expended some similar characteristics with ten states having active mobile internet penetration rates respec- prorating the telecoms sub sector’s N205.57 per day on surfing. It was Lagos. Businesses are booming, a lines. They accounted for 52.7 per- tively. Kwara, 68 percent; Niger, 63 GDP, we found out that 60 percent N187.44 per day by an average development that is attracting more cent of the nation’s active mobile percent; Delta, 57 percent; Kaduna, of the nation’s telecommunications resident in Niger; N184.25 per day Nigerians to it who are in search of lines as at December 2017. 55 percent and Abia, 53 percent had sub sectoral GDP was generated in Lagos and N171.11 per day by an means of livelihood. The spill over Nigeria also had 97.79 million internet penetration rates higher through voice calls, while 40 per- average resident in Nasarawa States. is felt in Nasarawa and Niger States active internet lines and the states than the national average. Osun cent was generated from internet The five states with the least where we have quite a number of with the highest active lines were and Rivers state, having 51 percent services. daily expenditure on data usage are satellite settlements whose resi- the ten aforementioned states. each, equalled the national average We computed the voice calls Taraba, N56.97; Bayelsa, N51.97; dents work in Abuja. Collectively, they had 52.6 million internet penetration rate. GDP per capita, which is another Akwa Ibom, N51.74; Ebonyi, N50.01 Also, reforms in Kano and Ka- lines representing 54 percent of the Ekiti, 27 percent; Sokoto and Eb- way to know how much an indi- and Ekiti, N49.21. duna states are attracting notable entire active lines in the country as onyi, 26 percent each; Zamfara, 23 vidual on the average expended We are not surprised at the global brands as was the case of at December 2017. percent and Jigawa 18 percent had on voice calls in 2017. On this met- emergence of the ten states as Olam Nigeria which set up the larg- Our analysis shows that the the least mobile penetration rates ric, Abuja, Ogun, Niger, Lagos and topmost in voice calls and internet est integrated farms in that state last nation’s mobile penetration rate, in the country by December 2017. Nasarawa states topped the list. data usage. Lagos is the nation’s year. The same firm has rice farms based on December 2017 data is With this background, Business- An average Nigerian resident in commercial centre and the metro- which cover several hectares of land Abuja in 2017 spent N128,505.20 politan nature of the state requires in Nasarawa State. The upgrade of in making calls in 2017, translat- that frequent calls are made to carry Kaduna airport has opened the ing to N352.07 per day. An aver- out different business activities and state to more local and interna- age Nigerian living in Ogun State be in contact with the loved ones. tional business opportunities. spent N106,970.58 on calls in 2017 translating to N293.07 per day. In , an individual on the average expended N102, 116.86 translating to N279.77 per day while in Lagos and Nasarawa states, an average resident spent N95, 794.35 and N91, 863.52 per annum on voice calls represent- ing N262.45 and N251.68 per day respectively. Instead of the population in each state, we adopted labour force to arrive at the voice calls and internet GDP per capita. Agreed that unemployed Nigeri- ans have active mobile and internet lines, the source of the money for the credit cards and internet data of the unemployed Nigerians are their family members, friends and col- leagues who are working. Therefore, we used the labour force in each state to compute the daily spend on voice calls and internet usage. The states with the least daily spend on voice calls are Taraba, Akwa Ibom, Ebonyi, Bayelsa and Ekiti states. Daily voice calls ex- penditure in Taraba State was N91.16 in 2017; Akwa Ibom, N81.44; Source: NBS, BRIU Ebonyi, N81.16; Bayelsa, N72.73 Source: NBS, BRIU Wednesday 09 May 2018 C002D5556 BUSINESS DAY A11 NEWS N11bn for compensation as Lagos tackles infrastructure deficit reconstruction/upgrading JOSHUA BASSEY new ones to cater for the huge of Muritala Muhammed In- population. ternational Airport, among ver N11.8 billion The affected proper- others. has been approved ties, according to Yetunde Onabule, who also gave by Governor Akin- Onabule, special adviser to an insight into the financial wunmi Ambode of Governor Ambode on urban records of the Lagos Lands LagosO State as damages pay- development, who briefed Bureau, an agency saddled ment on properties that have journalists, Tuesday, fell on with the responsibility of land to give way as state intensifies the alignment/right of way for assets, said the bureau gener- effort at bridging its huge construction, reconstruction/ ated over N10.5 billion from infrastructure deficit. dualisation of roads, flyovers land transactions in 2017, The right of occupancy on and ramps the government about 50 percent short of the the affected properties had had to undertake in the last N20.7 billion it generated in earlier been revoked by the one year. 2016, a development she at- governor in exercise of his Among the projects com- tributed to the suspension of powers in line with the provi- pensation had been fully sales of new land schemes by sions of 1978 Land Use Act, in paid are the proposed the government. the overriding public interest. international airport in Epe, The Ambode-led admin- Lagos, Nigeria’s smallest Ilado Igbobo housing estate, istration had put on hold the state by landmass, occupy- Ojokoro specialist hospital, sales of new land schemes ing 3,577 square kilometres, Onikan Randell family land, until all necessary facilities is home to an estimated 21 and the mechanic village at had been completed on such million people, which exerts Gbagada phase one. schemes. enormous pressure on avail- Others for which payment “The major revenue we ex- able infrastructure. of damages are ongoing, ac- pected was from our schemes. The state is said to be in in- cording to Onabule, include However, based on the policy frastructure deficit that would reconstruction/dualisation of the government that the require about $50 billion over of Irede-Abule Osun road infrastructure within that the next five years to bridge. in Ojo; construction of Pen scheme must be completed, And as part of efforts to tackle Cinema flyover in ; con- we had to slow down, that the deficit, the government struction of Freedom road/ would bring a lot of revenue is seen regularly intervening drainage channel in Eti-Osa; to the government, when we by expanding existing infra- construction of modern bus commence sales,” she said. structure and undertaking terminal in Oyingbo, and PAC Holdings officially launches PanAfrican Capital Ghana anAfrican Capital Hold- value chain in the country; we have largely underpinned by economic ings Limited, a Proprietary the capacity to meet the working stability due to strong growth and PInvestment Company for- capital needs as well as Infrastruc- fiscal prudence as well as vibrant mally announced its Business tural and Project Finance demands external factors that have led to a operations in Accra with the of- of our Clients operating within our stable forex regime. ficial launch of PanAfrican Capital focal economic areas, leveraging According to the former Depu- Ghana Limited on Friday, 4th our strong footing in these sectors ty Governor of the Bank of Ghana May, 2018. in the other African countries that (BoG), PanAfrican Capital Ghana This newly launched Invest- we operate,” he indicated. Limited has Strategic Partnerships ment Banking and Advisory ser- He added: “With our core and alliance with multilateral fund- vices firm brings to the Ghanaian product offerings comprising Fixed ing firms to help meet the needs of Capital Market its huge wealth of Income Assets Management, its expanding clientele base in the expertise and knowledge in advi- Mergers and Acquisitions, Private country. sory and fund raising, to cushion Placements, Corporate Restruc- Narh said: “Limited fiscal space businesses in key economic turing and Fund Raising Arrange- remains a constraint to the provi- areas including power, aviation, ments etc. PanAfrican Capital sion of relevant infrastructure to telecommunications as well as Ghana Limited is positioned to drive socio-economic growth oil and gas within the broader play a significant role in growing the and improved livelihoods for the interest of pushing national de- domestic Capital Market. broad masses which will ultimately velopment. Chairman of the Board of Di- reduce poverty. Such hindrances The Managing Director of Pan- rectors, Millison Narh, said that set the agenda for the private sec- African Capital Ghana Limited, the firm’s presence on the local tor, including PanAfrican Capital Wencelav Safrega, in his remarks front will help push the quest for Ghana Limited to act. at the launch event, described quality infrastructure and other Fixing infrastructure helps PanAfrican Capital’s presence on critical economic needs to improve businesses to grow and improves the local scene as a “significant the livelihoods of the broad masses private sector competitiveness. milestone in the Ghanaian Invest- and ultimately reduce poverty. We are here to contribute to the ment Market Sector”. He indicated that the Com- development of the country, the “We are positioned to deliver pany sees numerous opportunities sub-region and the continent as value in the entire financial services in the local capital market which is a whole.” Edo restates commitment to reposition education sector ... urges more stakeholder support do State government has teaching and learning outcomes more chairs, library and labora- restated commitment in the basic education sub-sector. tories for the school. Eto reposition the state’s “This training will be ex- Special adviser to the Edo education sector to deliver better tended to the senior secondary State governor on media and learning outcomes relevant to schools across the state while communication strategy, Crusoe current needs. efforts are ongoing to address the Osagie, said the gesture was com- Emmanuel Agbale, commis- infrastructural challenge in some ing at a time the state government sioner for education, gave the schools.” was partnering all stakeholders assurance while commissioning He commended the 1992 set for the sector’s uplift. chairs and tables donated by of Niger College, for “appreciat- “Governor Obaseki’s ap- the Niger College Old Students ing the concept of giving back proach to issues is holistic. He Association (NICOSA), class of to their alma mater,” adding that does not believe in tokenistic 1992, in Benin City. the Obaseki-led administration approach to problems. In the According to Agbale, “The appreciated contributions from education sector, stakeholders Edo State governor, Mr Godwin old students, parents, host com- are being carried along to play Obaseki, is very passionate about munities and other stakeholders their part. This donation is com- revamping the state’s education in the development of the educa- mendable and we want similar sector and has commenced the tion sector. associations to rise to the occa- training of teachers on the use of He assured that his ministry sion and give back to their old modern technology to improve would attend to the requests for schools,” Osagie said. A12 BUSINESS DAY Wednesday 09 May 2018 BUSINESS DAY NEWS YOU CAN TRUST I WEDNESDAY 09 MAY 2018 C002D5556 Opinion

Honouring Jakande’s service

gos crowd; and then there seeing “Baba Kekere” in some self-respect by en- drives our current crop of but I respect his egalitar- were Alhaji Lateef Kayode our midst. suring the defeat of their politicians!) to donate to ian impulse and I can Jakande, former Governor Jakande is not the old traducers in the conse- the church or hand out to understand that benefi- of Lagos State between LKJ we used to know how- quent governorship elec- the congregants; and he ciaries of his mass edu- OPEYEMI AGBAJE 1979 and 1983 and his still ever! Age has taken its toll. tions of 1992, resulting in has not held any public of- cation approach will ap- very beautiful and charm- Lateef Kayode Jakande at the unexpected victory of fice whatsoever in the last preciate the life changing [email protected] ing wife, Abimbola. 89 years of age is no long- the NRC’s Chief Otedola, two decades. Yet as Lateef opportunity he may have Jakande and Adebanjo er the strong, formidable who became governor. Jakande sat, old, weak and presented; his achieve- go back a long way, being and vibrant politician who By the time civilian poli- shrunken, we all rose and ments in public housing both leading members of walked with authority and ticking resumed in 1999, applauded in the privacy remain unmatched even Chief Obafemi Awolowo’s waved his “irukere” as he Chief had and solemnity of that ru- till today; and his im- n April 15, inner caucus in the old clearly sought to inherit become alienated from ral thanksgiving service. print on health services, 2018, I at- Action Group (AG) and the mantle of Awolowo the Afenifere mainstream Those indeed are the mo- roads and infrastructure tended a Unity Party of Nigeria as his appropriation of and Chief Ganiyu Da- ments people should live in Lagos State remains thanksgiving (UPN), but Jakande had the appellation “Baba wodu was now leader of for! It was his wife who indelible. The valiant at- service in Ije- since been somewhat Kekere” demonstrated, Afenifere and its Alliance rose to acknowledge the tempt by Jakande and his bu-Ogbo,O Ogun State com- alienated from his old Chief Awolowo implic- for Democracy (AD) in cheers, just as she piloted, colleagues in the UPN memorating Chief Ayo Afenifere comrades after itly being the Baba Agba! Lagos State. Jakande has guided and supported the (Bisi Onabanjo, , Adebanjo’s 90th birthday he ran for the presiden- After the battles of the been on the margins of old man throughout the Adekunle Ajasin and Pro- celebrations. I had missed tial candidacy of the then Sarumi-Agbalajobi era partisan politics since ceremony. May God grant fessor Ambrose Alli) to the actual Church Service Social Democratic Party also during the Babangida then! us wives and families who provide free education; on April 10th and went for (SDP) during the Baba- transition, Jakande had Yet nothing can wipe will support and help us free health services; full the more private thanks- ngida transition against been somewhat de-mys- away Lateef Jakande’s ser- when we can no longer employment; and inte- giving to compensate. the wish of the move- tified in Lagos politics. vice in Lagos! At a point help ourselves! grated rural development Unlike the big birthday ment (which had earlier The Chief Dapo Sarumi during the church service I do not necessarily reminds us of an era when celebration, there were agreed on Chief faction of the then SDP in Ogbo, the officiating applaud everything Ja- governance in Western few guests this time-I was while Jakande and others with the support of the Anglican priest acknowl- kande did as governor Nigeria was about service seated between ubiqui- were banned) and then Shehu Yar’adua/Baba- edged the presence of the of Lagos State. As a stu- to the people and not self- tous Afenifere spokesman served in the Abacha cabi- gana Kingibe hold on the former “action governor” dent of Igbobi College aggrandizement! Yinka Odumakin and for- net as Minister of Works national SDP machinery in the auditorium and the between 1976 and 1981, As we all rose to give mer Ondo State Governor and Housing even after tilted power towards their whole congregation-na- I resent the seemingly former Lagos State Gov- Segun Mimiko; and there the group had asked its Peoples Front (PF) al- tives and visitors, rose and deliberate destruction of ernor Lateef Kayode Ja- were few others, outside members to resign. Since lies led by Sarumi/Bola gave a long and enduring educational standards kande a rousing ovation the usual rural Church then it was not often that Tinubu/Yomi Edu in the ovation! It was the type of in the leading schools in in that modest church in congregation-Professor we see “LKJ”(as Jakande governorship primaries moment people should Lagos State (Igbobi, CMS Ogbo-Ijebu, I reflected Banji Akintoye, Dr. Amos was popularly known) in Lagos and in effect live for...Jakande was not Grammar School, Baptist on Jakande’s impressive Akingba, Senator Femi in the company of the ended Jakande’s seem- even a former governor Academy, Methodist Girls service and hoped that Okurounmu, Hon. Oladi- Afenifere elite. For many ingly unbreakable hold of Ogun State in which High School, Raegan Me- we all would honour his po Olaitan and Chief Supo of us in that quiet and on Lagos politics. The the Church was located; morial etc.) in favour of service to the people of Shonibare were promi- serene church service, it Jakande and Afenifere he doesn’t have too much a policy that focused on Lagos State, Yorubaland nent amongst the rare La- was a pleasant surprise group merely extracted money (which is all that numbers and not quality, and Nigeria. The before and after price

before and after price. Ex- gain”. It translates to no good results. Chidi, who the prize available at the itself. amination at all levels of price, no prize. People had earlier begged the co- end for those choices? Are Citizens need to be schooling but particularly intent on managing their ordinator not to disclose the implications clear and more involved from their at higher levels is a good weight vote for fitness her weight, now heart- straightforward? neighbourhoods up in example. The “before” and weight loss by pay- ily called to disclose her There is abroad in our the issues that affect their price is the assiduous- ing a price: they do the current weight as against clime currently a Get Your existence. Wisemen have CHIDO NWAKANMA ness of the student in at- gym round by waking up what it was at the begin- PVC campaign as a clarion affirmed that eternal vigi- Nwakanma is a Visiting Member tending classes, doing his early or going after hours; ning. She is still paying call for political engage- lance is the price of lib- of the BusinessDay Editorial assignments, and reading they learn not to salivate a price, but appreciating ment. The message is for erty. Citizen vigilance Board and serves on the Adjunct recommended as well as at certain foods; they eat the “after” prize of the all adults to fully exercise and engagement are the Faculty at the School of Media extra curricula literature in moderation; they do price. their rights as eligible vot- currencies for sustaining and Communication, Pan Atlantic University, Lagos. Email chidon- on his subjects. As pro- crunches. The after price Price is of course at the ers and participate in the democracy. [email protected]. verbially stated often, is a toned body as well as heart of marketing. Price electoral process. Many issues call for the student “burns the feeling of satisfaction at is the crux of the exchange The PVC campaign is concern across the states midnight oil” and forsakes attaining the goal. that happens between a good and desirable first and the federation. They e pay a all other pursuits for the A young family ac- buyer and seller. Price rep- step in political engage- range from education to price for prize. That prize –success quaintance’s experience resents value to the buyer ment. As it is framed, healthcare, urban plan- every- in his examination – is has been very illustrative. and revenue to the seller. possession of the PVC en- ning to management of thing in the “after price” for the Chidiogo is 24. She has We pay various prices as ables the citizen actively the environment, and life. Most efforts put in. The other just earned her degree in consumers. We pay even participate in the choice much more. Years of mili- Wpeople would readily type of student also pays International Relations more fundamental before of leaders through voting. tary rule meant that citi- agree to the positive as- a before and after price. from one of the state uni- and after prices in the It is a seductive propo- zens were removed from sertion that they paid He wanders aimlessly in versities. She returned various decisions and ac- sition. It is also a correct the grassroots mobiliza- some price for the signifi- relation to the goal by at- home to hearty welcome tions of our lives. There is one. However, voting is tion of ideas that is part cant achievements they tending all parties in and as well as consternation. always a price, before and only but one aspect of of policymaking. Who have recorded in life. They out of campus, being the Chidiogo weighed 120KG, after. Choose wisely, so political engagement. To is your councillor? Who would do so with a smirk school fashionista, the and considered herself you get a desirable prize deepen our democracy, represents your neigh- of satisfaction and self- hottest thing around and unworthy and undesir- for the price you pay. all citizens must commit bourhood and then your adulation. all such. At examination, able. Flab reported all What price are we will- to paying a higher price. local government? What Further reflection his resounding Fs are a over her body. Her wor- ing to pay for the develop- The price would be to issues have you brought to shows that there are two fitting price. ried mother took action ment of our towns, cities, engage even more actively their attention? We must prices for every situa- Take the matter of ex- and placed her on a fit- local governments and than merely securing a find our way back. Pay a tion. They are the “before ercise and wellbeing. The ness programme of diet the Nigerian nation? Are PVC and coming out to price today for the prize and after price”. Various favourite expression in and exercise. Three weeks we aware of the price for vote on election day, even of a democracy that works scenarios exemplify the the gym is “no pain, no after, the fruit diet yielded the choices we make or as that is very important for Nigeria.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana. Tel: +233243226596: email: [email protected] Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590. WEST AFRICA ENERGY intelligence oil gas power Wednesday 09 May 2018 C002D5556 BUSINESS DAY

POLICY

Metering is litmus test for NERC’s new chairman Page 5

finance people appointments

L-R: Rudolph Fielder, CEO, Europe TellCO; David Collett, group chairman, Catch Energy, Wale Omole; chairman , TellCo Europe Nigeria and Omar Fischer, co-founder, TellCo Switzerland at the world press conference preceding official launch of TellCo Europe Nigeria and inauguration of off-grid solar power solutions for MSMES in Nigeria held in Lagos recently . Pic by Pius Okeosisi

Debrief Flashpoints for crude oil Corporate Nigeria partners with price spike intensify Brandzone for share since sanctions were lifted Yemen’s production output of Bashar Assad’s forces setting the FRANK UZUEGBUNAM LightUpNigeria in January 2016, growing 1 million 30,000 b/d is not enough to influ- stage for broader Middle East b/d to hover around 3.83 million ence the market negatively but the tension. Energy conference lashpoints across key b/d, an output which could be country’s Houthis rebels backed Iraq’s production output of 4.46 global energy supply impacted with renewed US sanc- by Iran have attacked oil ship- million b/d could be affected by Page 6 regions have taken tions. ments in local waters raising con- the simmering tensions with semi- new dimension over- Venezuela’s May 20 elections cerns about shipping oil through autonomous Kurdistan in north- shadowing a rising are expected to be a trigger for po- the Red Sea. About 4.8 million ern Iraq. The potential for a new FUS crude oil output with the tential new sanctions, which could b/d of crude/products transited push by Baghdad to take control of OPEC weekly basket price potential to cause fresh price target oil or refined product flows. through the Red Sea in 2016, rep- oil fields in Kurdish areas is also a DAY PRICE volatility, particularly as global The US has said that it may impose resenting nearly 5 percent of glob- risk. spare capacity weakens. It is further sanctions if it believes de- al maritime trade, according to the Libya’s oil production remains 4/5/18 70.75 estimated that about 10 million mocracy is being undermined Energy Information Administra- around 1 million b/d, far below 27/4/18 70.92 barrels of oil per day could be which could worsen the situation. tion (EIA). pre-war levels of 1.6 million b/d. put at risk. Its production of about 1.49 mil- Just like Yemen, Syria’s pro- The lack of a clear legitimate gov- 20/4/18 69.5 Most Iran nuclear deal watch- lion b/d is a drop of around 40 per- duction of 20,000 b/d cannot ernment continues to fuel protests ers expect US President Donald 13/4/18 67.66 cent over the last two years from impact the market but the proxy- and attacks which have caused Trump to re-impose oil sanctions 2.35 million b/d, as lower prices war being fought in Syria is seen major disruptions to producing 6/4/18 65.11 on Tehran. Iran’s oil output has re- and a crippled economy prevent as a direct risk to oil with Russia fields, pipeline and export infra- gained most of its previous market Source: OPEC investment. and Iran supporting President structure. 02 BUSINESS DAY C002D5556 Wednesday 09 May 2018 WEST AFRICA Outlook oil West Africa: Brief Nigerian crude grades struggle against US oil in NWE Egypt: Eni discovers oil in Egyptian espite height- ing ICE WTI-Brent spread, ened compe- which has risen $2.28/b Western Desert tition among since the start of March to the Atlantic $5.31/b spread. Basin sweet As a result, the rela- crudeD grades in the last two tive strength in European months, Nigerian sweet diesel cracks has failed to crude oil grades have drive a substantial appetite struggled to find homes for the Nigerian distillate- in the Northwest Europe rich grades given the ris- (NEW) market. ing competition among Europe is one of the key the Atlantic basin’s sweet consumer markets for Ni- crudes, and have driven gerian crudes, followed by pricing differentials for Ni- India, and distillate-rich gerian sweet crudes lower grades such as Qua Iboe, over the last two months. Forcados and Bonny Light Since the beginning of have met with limited buy- March, Nigeria’s Forca- ing interest from the Eu- dos has fallen by 70 cents ropean refiners, slowing to an 85 cents/b premi- down the sale of cargoes um to Dated Brent and loading over May and June. Qua Iboe’s has fallen to a The whole Nigerian similar extent even with a market had been hit by shorter program for May weak demand, not just were mostly unsold. since the start of March. due to planned mainte- the distillate-rich grades, Refiners in Northwest For the June programs, nance over the first week also affecting the sales of Europe have seen more eight out of the 10 Forca- of May. the light sweet offshore offers of US crudes of late, dos cargoes were still avail- However, if diesel grades, Agbami and Akpo, which are sweet grades able, and around six out of cracks remain high, some sources said. that compete directly with the eight Qua Iboe cargoes traders say they expect These offshore grades Nigerian crudes, contrib- were also unsold, accord- some support for certain would typically be uting to an overhang of Ni- ing to sources. Nigerian crudes to emerge, snapped up early in the gerian crudes and a sharp The influx of compet- and a divergence between trading cycle, with traders drop in pricing differen- ing US sweet crudes has the distillate-rich Nigerian saying that June cargoes tials of these sweet crudes been stoked by the widen- and light-end rich grades. talian energy giant Terminal through existing Eni made an oil dis- pipelines. covery in the Egyptian Eni, through its subsid- South Africa: Western Desert’s Fa- iary IEOC, holds a 100 per- Ighur Basin, 103 kilometers cent stake in the southwest Total to boost exploration efforts in South north of the Siwa oasis, Eni Meleiha license. announced. IEOC through its op- Africa as fuel network grows The oil discovery,erating company AGIBA, which was made in the in which IEOC and the southwest Meleiha li- Egyptian General Petro- rench energy giant output growth to exceed its Total, which is already under Cyril Ramaphosa, cense, started production due to open 20 new retail who replaced Zuma in Feb- leum Corporation (EGPC) Total SA plans to 6 percent target this year and delivers 2,300 barrels have equal share equity, boost oil explora- thanks to acquisitions and outlets this year, is consid- ruary, there is a difference of light oil per day (bpd) ering partnerships to in- in the business community, currently produces 55,000 tion and open more new projects from the Arctic and 0.4 million standard barrels of oil equivalent fuelF stations in South Af- to West Africa. In South Af- crease that number. It faces according to Sachet. cubic feet per day of asso- competition from South “There is more confi- per day, from the Egyptian rica. rica, the company plans to ciated gas. Western Desert. Total pumped a record expand its network of more Africa’s Sasol Ltd., which is dence in the atmosphere, “The well is the first also looking to expand its this is very clear,” said Sa- Eni has been present amount of oil and gas in the than 500 fuel stations and one drilled by Eni to ex- in Egypt since 1954, oper- first quarter and expects finish a deepwater explora- fuel-station network in a chet, who sees growth in plore the deep geological country that currently has the company’s sales of fuel ating through its subsid- tion well started in 2014. sequences of the Faghur iary IEOC. The company “In retail, we clearly about 4,600 outlets. and lubricants to mining Basin,” according to the Total is also interested in companies. is the main producer in want to grow and to grow official statement by the Egypt with 260,000 bpd of by 200 to 300 service sta- supplying liquefied natural Total, which owns 36 company. gas and adding solar proj- percent of the 108,000-bpd equity and production is tions in the coming few The company an- expected to further grow years,” Pierre-Yves Sachet, ects as part of two govern- Natref refinery in a joint nounced, that based on ment programs that faced venture with Sasol, expects within the year, thanks to managing director and the relevant authority’s the ramp up of the Zohr CEO for Total South Africa, delays under former South to resume drilling on South approval, production will African President Jacob Africa’s first deepwater well offshore natural gas field said in Johannesburg. “The potentially link to exist- located in the Egyptian intensity of our footprint Zuma. While there has not by the end of this year or ing nearby infrastructure yet been a marked change first quarter 2019, said Sa- sector of the Mediterra- is not exactly the one we and ship to the El Hamra nean Sea. would like to have yet.” in demand and investment chet. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 03 WEST AFRICA gas ENERGY intelligence Brief Can NNPC really pull off its three- Nigeria: Axxela achieves 4m LTI-free man-hours point strategy on gas flaring?

xxela, sub-Saharan Achieved over six years, KELECHI EWUZIE Africa’s preferred the Four Million LTI-Free fast-growing gas Man-Hours is comprised and power port- of operation time in the n the past three de- Afolio company, achieved 12.15MW Akute Power cades, Nigerians Four Million Man-Hours Plant Project (divested in have consistently without any Lost Time In- 2016); the 12” x 128km watched as succes- jury (LTI) in its operations. Eastern Horizon Gas Com- sive governments The noteworthy achieve- pany (EHGC) pipeline tra- madeI long term plans on ment was reached on Fri- versing Akwa-Ibom and how to end the issue of day, 20th April, 2018. Cross River States (divested gas flaring without the will LTI is a measure of inju- in 2014); the Gas Network power to push such plans ry sustained on the job that Services Limited Com- to its logically conclusion. is capable of preventing a pressed Natural Gas Moth- It is with such pessi- worker from performing or er Station (a 5.3mmscfd mism that they are view- continuing with a task or CNG Plant); the 10.6 MW ing the recent Nigerian resulting in downtime in Alausa Power Plant Project National Petroleum Cor- the operation. (divested in 2017); the 12” poration (NNPC) three- Speaking on the safety x 8.5km GLIV gas pipeline point strategy targeted at landmark, Bolaji Osunsan- project taking gas from bringing to an end to gas ya, Axxela’s Chief Executive Ijora to the Marina in La- flaring come 2020. Officer said: “This signifi- gos State; the 12” x 8.5km Nigeria was previously cant and laudable feat un- Central Horizon Gas Com- the worst gas flaring na- derscores our dedication to pany pipeline expansion tion in the world after Rus- always inculcate an endur- project from Trans-Amadi sia, but a number of Clean ing safety culture amongst through the greater Port Development Mecha- our employees, and our ex- Harcourt area; and the nism, (CDM), projects emplary adherence to best installation of Eight CNG aimed at appropriate gas practices in our day-to-day Daughter stations across business operations.” South-West Nigeria. utilisation have helped the country improve its standing in the global gas LNG Market: flaring chart to the sixth flaring nation in the world Baru also disclosed Nigerian petroleum in- Asia to remain key buyer of US LNG over position. to seventh, it would also that the firm would attract dustry as the largest and According to the strat- signify a major milestone nothing less than $25 bil- the most vibrant in Sub- next decade egy, NNPC would en- in its gas commercialisa- lion investments into the Saharan Africa has lots of sure non-submission of tion prospects. nation’s oil sector in the potentials, especially in NG demand in East lowed by China and South Field Development Plans The environmental ef- next 10 years. the deep water and un- Asia could jump Korea. Even as Japan pur- (FDPs) to the industry fects and the economic Total flares have sig- tapped gas resources. 150 percent from sues more renewables regulator, the Department losses of the gas flaring nificantly reduced to Baru further said the current levels by for power generation and Petroleum Resources have remained a major current levels of about other two strategies are L2030, bolstering prospects brings more nuclear gen- (DPR), without a viable concern and threats to 800mmscfd and in the a steady reduction of for the second wave of US erating facilities back on- and executable gas utili- many lives, particularly in next one to two years, we existing flares through a export developers that are line, LNG is still expected zation plan, a move aimed the Niger Delta region. would have completely combination of targeted trying to finance construc- to account for a significant at ensuring no new gas ensured zero routine policy interventions in tion of their terminals, a share of its energy mix, said flare in current and future flares from all the gas pro- the Gas Master-plan as Japanese government en- the official with the Japa- projects. ducers,” he stated. well as the re-invigora- ergy official said at Offshore nese Ministry of Economy, Snapshot Maikanti Baru, Group As reassuring as the tion of the flare penalty Technology Conference in Trade and Industry’s Agen- Managing Director, strategies are, industry through the 2016 Nige- Houston. cy for Natural Resource and NNPC, said that in the last closer watchers remain to ria Gas Flare Commer- The comments under- Energy. $25bn decade, gas flaring in Ni- be convinced consider- cialization Programme score the importance the geria had reduced signifi- ing the nature of previous (NGFCP) and through region will have in deter- cantly from 25 per cent to plans and the foot-drag- legislation, that is, ban mining the scope of global Estimated 10 per cent adding that the ging approach to imple- on gas flaring via the re- supplies and the trajectory multi-pronged approach mentation. cent Flare Gas (Preven- of market prices in years to taken by the group would investment They opine that there tion of Waste and Pollu- come. ensure a sustainable solu- are huge opportuni- tion) regulations 2018. Across all of Asia, al- tion to the historical prob- prospect for ties in the gas with the According to him, most a dozen countries are lem of flaring. country expecting over NNPC has embarked on currently importing LNG, The development $25 billion investments the most aggressive ex- while several are expected Nigeria’s gas would not only see Nige- anticipated over the pansion of the gas infra- to begin doing so soon. Ja- ria dropping from being next 10 years. structure network aimed pan remains the world’s flare out the second highest gas Those who know in the at creating access to the biggest LNG importer, fol- gas space observe that the market. 04 BUSINESS DAY C002D5556 Wednesday 09 May 2018 WEST AFRICA ENERGY intelligence power South Africa: Renewable energy as viable option South Africa’s Eskom says no to meet West Africa power needs power cuts in 2018 outh African power utility Eskom, which KELECHI EWUZIE is grappling with liquidity problems Shas pledged that it would he West Af- not resort to controlled rica region is power blackouts this year still saddled despite reports that it was with the chal- facing coal shortages. lenge of lack Eskom supplies about Tof power supply as mil- 95 percent of South Africa’s lions of citizens in the electricity, predominantly region still live without by burning coal. The state- electricity even as de- owned utility has been mand for energy is rising forced to introduce na- ($3 billion) to run its opera- rapidly. tionwide electricity cuts in tions since January. ECOWAS Master Plan the past decade, the latest “I can tell you without shows that electricity de- in 2015, denting economic any shadow of doubt that mand is projected to in- output. we are safe,” Hadebe said. “There will not be load- “We are confident that we crease fivefold by 2030. shedding this year,” said Es- This estimate includes are on the right trajectory.” kom’s acting Chief Execu- Eskom appointed a new demand from mines, tive, Phakamani Hadebe, board of directors in Janu- which are accounted for referring to forced inter- ary to resolve a leadership separately in the Master ruptions to power supply. crisis. New President Cyril Plan and in some coun- Hadebe said that six Ramaphosa in February tries are a significant mix, climbing to approx- Analysts pointed out lead capacity additions power plants currently had appointed former finance driver of electricity de- less than the required coal imately 20 percent. that the use of renew- as it has become the minister Pravin Gordhan as mand. supplies, down from seven public enterprises minister, By 2040, it has been able technologies is es- cheapest source of elec- Currently, 87 percent recently, and the company in charge of state compa- estimated that more pecially useful in the tricity generation. of demand comes from has raised 43 billion rand nies such as Eskom. than 25 percent or West further and outlying ar- Most West African urban users, with almost Africa’s total energy will eas as it is easier to in- countries with existing all of the rest from in- originate from geother- stall a more cost-effec- hydro capacity still have Europe: dustry. mal, hydro, solar and tive solution in order to vast untapped hydro Industry close watch- Europe invests N51.2bn in wind wind. be less reliant on trans- potential almost half of ers in the energy space According to the porting electricity from which would be met by energy in 2017 observe that renewable International Energy power plants via trans- renewable technologies energy has the potential Agency (IEA), Africa’s mission lines, which be- under the renewable- urope invested to substantially assist demand for electricity is comes very expensive. promotion scenario. €51.2 billion in West African countries wind energy in expected to increase by Akinwumi Adesina, The IRENA report fur- and their people to have 2017 out of which more than two-thirds as president of Africa De- ther indicated that the newE farms accounted for access to power, essen- more than 60 GW of ad- velopment Bank said ECOWAS Master Plan tial for the reduction of €22.3 billion, WindEurope ditional capacity would the banks new energy identified hydro proj- poverty and to ensure said in a recent report. be needed by 2030. strategy aims to increase ects equivalent to about economic growth. According to the newly energy production and 12GW, including 3GW released WindEurope’s Fi- A report by Interna- access, improve afford- each in Nigeria and nancing and Investment tional Renewable Ener- Snapshot ability, reliability and Guinea, and 1GW in Trends report, the remain- gy Agency indicates that energy efficiency. Cote d’Ivoire. ing investment amount under the renewable- Making case for the On a per-square-me- was designated to refinanc- promotion scenario, adoption of this new en- tre-basis, Gambia and ing of existing wind farms, renewables including 60GW the acquisition of projects The report said that the ergy option those who Guinea-Bissau have the hydro would account and of companies involved know in the industry highest potential for maturity of the wind energy for more than 50 per- in wind, and on public opined that renewable solar CSP. In absolute sector and the competi- cent of generation share Estimated market fundraising. The to- tive pressure of auctions power reduces carbon terms Nigeria and Niger by 2030, rising from the tal investment figure was 9 are changing the way wind electricity emissions, has the po- have the biggest poten- current level of 22 per- percent up on 2016. projects are financed. tential to supply cheap- tial both for solar PV and cent. However, the €22.3 bil- “Power producers still requirement by er electricity, and is be- CSP. High-quality wind According to the re- lion invested in new wind carry projects on balance coming more affordable resources were identi- farms was down on the €28 port, whilst West Africa’s West Africa in sheets through Final Invest- while coal and nuclear fied only in Niger and billion invested in 2016. ment Decisions (FID). But potential in hydropower 2030. are likely to be more ex- Senegal. Burkina Faso, Nonetheless, it covered refinancing and the sale of would remain impor- pensive. Gambia, Nigeria have more capacity – 11.5 giga- minority stakes in projects tant, non-hydro renew- The IEA states that large potential for mid- watts (GW) compared to are coming in much earlier ables would increasingly solar PV is expected to dle-quality wind. 10.3 GW – reflecting the in the process,” the report contribute generation falling costs of wind energy. said. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 05 POLICY Metering is litmus test for NERC’s new chairman According to NERC, Nigeria ISAAC ANYAOGU has a metering gap of 4,740,275. Considering that this is just the ames Momoh, the man population of a quarter of Lagos taking over the reins at residents, indicates how woe- the Nigerian Electricity fully unreliable this data is. Suf- Regulatory Commission fice to say, only about 6 million (NERC) has a profile that customers exist on the DisCos’ willJ make you feel inadequate. database. He bagged a BSEE degree Many challenges will bog (1975) from Howard Univer- the new regulation. Customers sity, MSEE degree (1976) from are required to pay a service Carnegie Mellon University, MS charge along with the energy degree (1980) in Systems Engi- charge. They can also buy meter neering from the University of directly from MAPs. Even if we Pennsylvania and a Ph.D. de- ignore the fact that having cus- gree (1983) in Electrical Engi- tomers buy their own meters is neering from Howard Univer- an aberration, the imposition sity. of a service charge, is a renewal Momoh’s research and pro- of an earlier abolished fixed fessional activities have led to charge and will definitely ruffle over 225 technical papers in feathers. refereed journals, transactions, Following the enactment of proceedings and also produc- MAP regulation, 71 Metering tion of several textbooks in his Service Providers (MSPs) have areas of expertise says his pro- been licensed by NERC but it is file on the College of Engineer- not clear the DisCos are willing ing and Architecture (CEA). to work with any. Two months Interestingly, his career is after MAP regulation, the Dis- the sort you use as reference Cos maintain a deafening si- during a career counselling ses- lence while having constant sion. He was Chair of the Elec- meetings with their lawyers. trical Engineering Department DisCos already have fractious at Howard University and Di- relationship with local meter rector of the Center for Energy manufacturers; it is not clear Systems and Control. buildings and the frequency The mere fact that it took umes. how the new regulation will “In 1987, Momoh received of misdiagnosis in hospitals three years to appoint a NERC For Momoh, how he imple- make them buddies. a National Science Foundation the broken power sector evi- chairman in a country with ments the new Meter Asset Weaning the DisCos off es- (NSF) Presidential Young Inves- dence the disharmony between thousands of engineers both at Provider (MAP) regulations timated billing, which is the tigator Award. He was Program knowledge and performance. home and abroad, speaks vol- 2018 which came into effect on objective of MAPs, is like com- Director of the Power program March 8 will be the first test of ing between an addict and his in the Electrical and Communi- his mettle. fix. Since 2013, dynamic regu- cations Systems (ECS) Division Snapshot “Consumers must under- lation has been the bane of at NSF from 2001-2004. Momoh stand what is going on with the power sector. NERC can- is a Fellow at the Institute of their metering, what are their not enforce sanctions because Electronics and Electrical En- rights and so on and so forth; it lacks the moral courage gineering (IEEE) and a Distin- 6million who do they hold account- to maintain a fair electricity guished Fellow at the Nigerian able, where are the NERC market. Tariff is not cost re- Society of Engineers (NSE). He field offices to which they can flective, DisCos abuse market was inducted as a Fellow Mem- Estimated number of customers complain; what is the process rules and Fashola constantly ber of Nigerian Academy of En- of getting remediation for ser- tells Nigerians that electric- gineering (NAE) in 2004,” says are said to be paying electricity vice that is not in sufficient ity is in the hands of private his profile on CEA website. quantity and of quality?” Ba- business people, yet are not But if there is any lesson bill in Nigeria batunde Fashola, minister of allowed to raise tariff. from the Nigerian experience, it Power, Works and Housing Clearly, Momoh will have his is that competence is not always said at the inauguration of hands full, it remains to be seen a function of academic qualifi- NERC chairman, in Abuja re- if NERC under his watch will cations. The litany of collapsed cently. start behaving like a regulator. 06 BUSINESS DAY C002D5556 Wednesday 09 May 2018 WEST AFRICA ENERGY intelligence finance people appointments Brief Corporate Nigeria partners with Brandzone for Major Marketers laud Navy on LightUpNigeria Energy conference easing Apapa traffic gridlock irst Bank, Techno farge, Africa. ISAAC ANYAOGU were able to comply, a top Oil, Falcon Cor- Executive Director and official of a major market- poration, Rain Co-Founder, Sahara Group, er in the area said they all Oil and Eterna Tonye Cole doubles as the ajor market- made conscious efforts to Plc partner with Conference Chairperson ers, tanker ensure that their trucks are FBrandzone to bring the and the Conference Adviso- owners and housed within the mar- LightUpNigeria Energy ry Board Chairman. Other drivers have shaling yard, their hold- Conference. The theme of Speakers confirmed for the Mextolled the efforts of the ing bay. He said: “That was the 2018 Energy Conference conference include Demola Western Navy Command simply what we did and is “Repositioning the energy Adeyemi-Bero, Managing through the joint Security with the cooperation of sector for growth” It would Director First Exploration Task Force led by the FOC the union, the Petroleum hold on Tuesday May 15th, and Production Company, Western Naval Command Tankers Drivers Union, 2018 at the Oriental Hotel, Gabriel Ogbechie, Manag- of the Nigerian Navy, Rear who also cooperated with Lagos. ing Director CEO, Rainoil Admiral SAG Abbah and us to ensure that their driv- This edition of the Ligh- Nigeria Limited, Nkechi the Commander of NNS ers also listened to us, with tUpNigeria Energy Con- Obi, Vice Chairperson, Beecroft Commodore the trucks in the marshal- ference shall explore opti- Techno Oil Limited, Joe Okon Eyo for their timely ing yards”. mizing natural resources Ezigbo Founder and CEO, intervention in clearing He attributed the suc- to drive energy efficiency Falcon Corporation, Dada the Apapa traffic gridlock cess to series of weekly and sufficiency for national Thomas, President Nige- menace that had hitherto meetings held amongst defied all efforts at remedy. growth and development. ria Gas Association and the stakeholders where The conference shall also Founder/CEO, Frontier Oil With the clearing of the the gridlock clearance was investigate the future of amongst others. traffic gridlock businesses the major point of discus- clean energy, energy digi- are breathing a new sign sion. He further said there The LightUpNigeria- of relief and commuters was engagement with the tization, and the develop- dzone Consulting a glob- guests expected at the con- Conference is designed to have been spared of mind- Nigerian Port Authority to ment of world class energy ally affiliated organisation ference include the Minister draw thought leaders and numbing traffic. Many contain the spill over. infrastructure locally. It reputed for building and of State for Petroleum Re- experts across the vari- played a role including the The major marketers would explore the role of managing some of the best sources, Dr Ibe Kachikwu, ous sub-sectors to share Petroleum Drivers Tankers are seeking permission innovation and branding of Nigerian brands across who shall deliver the con- insights and knowledge Association (PTDA), Nige- from the Navy commander in building strong Nigerian diverse sectors including Oil ference Keynote address, on industry growth topics, rian Association of Road to let their trucks move to energy brands of the future. and Gas, Banking, Automo- Former Minister of Petro- timely and relevant issues Truck Owners (NARTO), the operators holding bay The annual Brand Inno- bile, Hospitality and Tech- leum Resources, HE Odein that would help to unlock Nigerian Union of Petro- because as observed, the vation Conference in its 5th nology. Ajumogobia SAN and Bo- opportunities for growth leum and Natural Gas trucks being on the queue year is organized by Bran- Dignitaries and special laji Balogun, Chairman La- in the energy sector. OVH Energy announces 2nd edition of its creative writing competition VH Energy has ness issues. This initiative rates can positively influ- May 29, 2018. Interested announced the was conceived in line with ence their environment participants should visit commence- the United Nations 2030 through socially respon- www.ovhenergy.com/ ment of its cre- sustainable development sible business processes prodigy to submit their ativeO writing competition agenda and is open to Ni- or actions in the 21st cen- entries. in commemoration of the gerians between the ages tury. Contestants are to Terms and conditions World Creativity and In- of 20-35 years. suggest innovative social for entries include: one en- Workers (NUPENG), and is not too good since their novation week which took Huub Stokman, OVH initiatives that can be cre- try of not more than 1000 the Major Oil marketers. holding bay in the area place from April 15-21, Energy CEO, commenting ated and adopted by cor- words per participant is A visit to the area shows can contain more than 400 2018. This competition on the prodigy series ini- porate organizations to allowed (jointly authored that the gridlock has been trucks. is the 2nd edition of the tiative said: ‘OVH Energy encourage and promote papers are not eligible); completely cleared on Another official of the company’s Prodigy series conceived this idea to en- impactful social change entries must be original the highways leading into major oil marketers said titled “So You Think You courage Nigerian youths in Nigeria.” thoughts of writer (plagia- Apapa, leaving Western they will embrace the call Can Write”. to effectively free up and To be eligible for this rized articles will be dis- Avenue on the card system introduced The Prodigy Series is an deploy their creative en- competition, entrants qualified); entries must be and Orile Iganmu axis as by the Naval authorities intellectually stimulating ergies as thought catalysts must be Nigerian citizens, titled and should include problem spots. Many of but want little adjustment creative writing competi- in suggesting practical residing in the country. author’s full name; entries the trucks parked on the to take care of some un- tion designed to support yet differentiated busi- They must also be aged 20 must be submitted in .pdf road are mainly container foreseen occurrences es- and encourage the art of ness solutions to prevail- - 35 years and have verifi- format with Times New laden trucks causing traffic pecially as regards loading creative writing in Nige- ing business problems. able proof of evidence at- Roman (font size 14) and along the axis. and delivering products ria, whilst proffering prag- This year’s theme focuses tached to the submission. single line; Late entries will On how the marketers around Apapa. matic solutions to busi- on how leading corpo- Submission deadline is not be accepted. Wednesday 09 May 2018 C002D5556 BUSINESS DAY 07 WEST AFRICA marketinsight ENERGY intelligence OPEC Flakes Oil hits highest as the world Russia’s April conformity to OPEC/non- OPEC oil output deal at 95.2 percent waits on Iran sanction looms ussian energy minister Alex- ander Novak il prices rose to withdraw. said Russian about 2 per- Iran resumed its role Rconformity to the OPEC/ cent with US as a major oil exporter in non-OPEC crude oil pro- crude hitting January 2016 when inter- duction cut deal was 95.2 its highest in national sanctions were percent in April. This in- moreO than three years as lifted in return for curbs dicates that the ministry global supplies remained on Tehran’s nuclear pro- estimates April output tight and the market await- gram. was 285,600 b/d below ed news from Washington Surging production in October 2016 which is sia’s compliance was 94 on possible new US sanc- the Permian shale basin the baseline to assess percent, at 282,000 b/d tions against Iran. is outpacing pipeline ca- Russian compliance with below the October 2016 US light crude settled pacity, while local refining the deal. level of 11.247 million up $1.29 at $69.72 a bar- issues have exacerbated “Fluctuations in liq- b/d. Russia commit- rel. It touched a session oversupply. uids output in April were ted to cut production by high of $69.97, its highest The United States now due to increased activ- 300,000 b/d under the since November 2014. It produces more crude oil ity at projects covered deal. was on track to gain just than top exporter Saudi by production sharing Energy ministry fig- ures traditionally show over 2.3 percent on the Arabia, and two weeks of agreements,” Novak said. higher compliance as week. Brent crude oil set- US inventory builds have The Central Dispatch- ing Unit said Russia pro- they are based on indi- tled up $1.25 at $74.87 a limited the oil markets vidual coefficients for barrel. The global bench- upside. US energy com- duced 44.878 million mt unacceptable. Trump has to hand Trump a plan to of liquids in April. This each field when evaluat- mark was set to end the panies added oil rigs for ing the output in barrels, week up 0.3 percent. said European allies must save the Iran nuclear deal a fifth straight week, with is equivalent to around rectify “terrible flaws” in but they have also started 10.965 million b/d, us- while the CDU data is Iran’s foreign minister higher crude prices boost- provided in metric tons, said that US demands to the international accord by work on protecting EU-Ira- ing profits and pushing ing Platts conversion rate May 12. nian business ties if Trump of 7.33 barrels per metric leading to a discrepancy change its 2015 agreement nationwide production to in calculations. with world powers were European powers want makes good on his threat record highs. ton. This indicates Rus- Iran opposes higher oil prices, Iran’s oil exporters have record month prefers $65 per barrel rel to a three-year high before possible sanctions as traders braced for the possible re-imposition of ran’s crude exporters before the possible re-im- OPEC’s third-biggest China and India together US restrictions on Iran. had a banner April, position of US sanctions producer totaled 2.61 took 1.4 million barrels a The Persian Gulf coun- with shipments soar- on their oil sales. million barrels a day, day from Iran in April, ac- try’s regional arch-rival ing to a record right Crude exports by according to the Irani- cording to Shana. Saudi Arabia is said to I an Oil Ministry’s Shana Some oil traders are want crude closer to $80 news service. That beat already unwilling to sign a barrel, in part to sup- the previous high of 2.44 contracts for Iranian port a stake sale in state million barrels a day in crude and refined prod- energy giant Aramco. October 2016, it said. ucts that would be valid The OPEC nations con- Sixty percent of Iranian after May 12, according ran, faced with a tinue to clash in proxy oil products were sold to to recent interviews with possible restora- conflicts from Syria to China, India, South Korea six companies that buy tion of US sanctions, Yemen. and Japan, while China and sell oil in the Middle came out against The Organization Ihigher oil prices. A “suit- of Petroleum Export- and India alone imported East. about 1.4 million bpd. Iran’s crude and con- able price” for crude is ing Countries will meet Meanwhile, US Presi- densate exports in April $60 to $65 a barrel, Amir next month in Vienna. dent Donald Trump will were 2.87 million barrels Hossein Zamaninia, Together with allied decide by May 12 whether a day, Shana reported. deputy oil minister for producers, OPEC began to keep America in an in- Observed shipments of international and com- reducing oil production ternational agreement both rose to 2.83 million mercial affairs, said in last year in a drive to clear that restricts Iran’s nucle- barrels a day from 2.48 Tehran. Oil Minister Bi- a global glut. The curbs ar activities in exchange million barrels in March, jan Namdar Zanganeh have all but eliminated for relief from sanctions according to ship-tracking said earlier that Iran sup- surplus oil inventories. and a restriction on oil data compiled by Bloom- ports “reasonable” oil Even so, Saudi Arabia, sales. Since sanctions berg. Crude volume alone prices and is not an ad- the world’s largest crude were eased as of January rose to 2.48 million barrels vocate of costlier crude. exporter, is urging fellow 2016, Iran’s crude produc- from 2.06 million, the data Brent crude futures members to keep cur- tion has almost doubled. show. surged above $75 a bar- tailing output. 08 BUSINESS DAY C002D5556 Wednesday 09 May 2018 WEST AFRICA ENERGY intelligence In association with talking points Can Nigeria harness opportunities in commercialising gas flares?

ISAAC ANYAOGU

igeria is targeting investments of about $5 billion which could potentially add $1 bil- lion to the country’s GDP from commercialising gas flares in 89N locations around the country through the Nigerian Gas Flare Commercialization Pro- gramme (NGFCP), an initiative of the Federal Ministry of Petroleum Resources. The NGFCP seeks to attract investments and develop a transparent market mecha- nism through a competitive procurement process for allocating gas flares, under clear and transparent criteria, to competent third party investors using proven technologies in commercial application globally. Justice Derefaka Program Manager NG- FCP, at a conference in Lagos said under the NGFCP, the Federal Government shall exercise its ownership rights of all gas flared in Nigeria. Paragraph 35(b)(i) of the 1st Schedule to the Petroleum Act CAP P10, LFN 2004 provides that the Minister of Petroleum may, in the public interest, impose terms and conditions applying to any natural gas Pay Agreement between the offtaker and the flaring, annually, for many years, the country will be issued by the Ministry of Petroleum discovered, including the right of the FGN to Flare Gas Producer. losses close to $1.15 billion. The challenge it Resources. The regulations is made persuant take any associated gas that would have been The licensees will then be required to use seems, is the presence of political will. to relevant sections of the Petroleum Act and flared either free of cost at the flare or at an necessary technology to set up the facilities The NGFCP value proposition is that as- Associated Gas Re-Injection Act. agreed cost,” says. for the delivery and collection of gas at the suming around 65 percent of the flared gas Key provisions in the new regulation is As a result of this, the Federal Government flare points. Under the NGFCP, all identified volume meets a minimum monetisation mandatory reporting and access to gas flare will, grant licences to third parties (i.e. licens- gas flare points are part of the programme investment threshold, it could lead to overall data, increased flaring fines, new flaring ees) to access and collect such gas on behalf and compliance with the programme will investment of $3-5 billion. standards, metering requirements, reporting of the government from the flare points of be a licence condition for the award and At an average project size of $40m, the obligations which include monthly gas flare oil producing companies. They would have renewal of all Oil Mining Leases and Mar- NGFCP could trigger 89 projects. Over a 2 logs and annual reporting and issuance of a necessary permits and approvals, and also ginal Fields. year period, the NGFCP could generate ap- certificate for any gas flaring at all. enter into a series of agreements with the Nigeria currently flares 700 MMscf/d of proximately 26,000 direct jobs, with an aver- However this is not the first programme government and the Flare Gas Producer. gas at 178 flare sites which is equivalent of the age labour force of 300 per project and ap- to end gas flaring and lack of political will These include the Gas Supply Agreement total volume of gas used in power production. proximately 300,000 direct and indirect jobs. continues to dog this proposition but the and the Milestone Development Agreement This results in 20 million tons of CO2 emis- To give legal teeth to this programme, A benefits are clearly numerous including the between the offtaker and the government, sions per year. Flare Gas (Prevention of Waste and Pollu- reduction of carbon emissions and conflict the Connection Agreement and Deliver-or- In 2016, Nigeria lost $800 million to gas tion) Regulations, 2018 is being finalised and in the Niger Delta.