businessday market monitor FMDQ Close Benchmark NTB* & CP* Benchmark Sovereign & Corporate Bonds MTN Nigeria Axxela BDC Exchange Rate Funding 1 NSP-SPV Bitcoin FOREIGN EXCHANGE NTB Communications plc FGN Dangote PowerCorp NSE (Natural Gas) CP (Series 4) Cement plc plc plc Foreign Reserve $34.7bn Market Spot ($/N) 28-Oct-21 17-Dec-21 23-Jul-30 30-Apr-25 20-May-27 27-Feb-34 ₦44,998,577.83 I&E FX Window 0.77 0.56 0.00 0.66 0.58 0.00 Biggest Gainer Biggest Loser Cross Rates GBP-$:1.40 YUANY - 59.15 BUY SELL 410.33 CBN Official Rate as at Commodities 379.00 4.97 9.22 13.31 15.07 15.02 15.45 LINKASSURE NEM -5.03 May 6, 2021 $-N 475.00 482.00 3M N0.63 9.52pc N2.00 -9.50pc Cocoa Gold Crude Oil 1M 2M 6M 12M 36M 60M £-N 663.00 676.00 Currency Futures 26-May-21 30-Jun-21 28-Jul-21 27-Oct-21 27-Apr-22 24-Apr-24 29- Apr-26 US$ 2,463.00 $1,831.30 $68.28 39,198.75 €-N 575.00 587.00 ($/N) 420.43 421.86 423.29 427.59 436.18 517.94 613.33 *NTB - Nigerian Treasury Bills; *CP - Commercial Paper

NEWS YOU CAN TRUST * MONDAY 10 MAY 2021 I VOL. 19, NO 817 I N300 g www. g @ g See what Nigeria’s record low-interest rates end Nigerian banks charge you for as bond yields rise by most in 12yrs borrowing LOLADE AKINMURELE The benchmark 10-year Nige- and marks the fastest uptick in percent. HOPE MOSES-ASHIKE rian government bond yielded government bond yields since Analysts say the rapid rise in igerian banks are charg- he rapid rise in the 13.3 percent as of Friday, May 7, at least 2009. yields is a signal that Nigeria’s ing an average interest yields of Nigerian according to data from trading The yields on one-year Trea- low interest rate policy is being rate of between 4 percent debt signals an end to platform, FMDQ. That is more sury bills, which are short-term phased out as monetary authori- N and 36 percent on loans given to the record low inter- than three times the 4 percent debt, have also gone up from a ties look to make Nigerian debt customers in various sectors of est rate environment return on the same bond only record low of 0.5 percent some the economy, especially agricul- Tthat characterised the year 2020. six months ago in October 2020, six months ago to nearly 10 Continues on page 31 ture and forestry, manufacturing and education. This represents -7.5 percent- age point lower and 24.50 basis point higher than 11.50 percent Monetary Policy Rate (MPR). Apart from that there are other administrative charges, which sometimes are not known to customers. A Lagos businessman, Chris- tian Ezegolo, two years ago, took some loan from one of the banks at 23 percent interest rate and had liquidated the loan, but has not been able to access another loan since that time due to gam- ut of economic realities around the business environment. Such challenges include the cost send time it takes to place order, produce, ship and clear Continues on page 31 INSIDE Mining sector holds L-R: Gbolahan Sanni, marketing director, Coca-Cola Nigeria Limited; Alfred Olajide, vice president/managing director, Coca-Cola Nigeria Limited; opportunities for investors Ogho Okiti, managing director, BusinessDay, and Nwamaka Onyemelukwe, director, public affairs, communications and sustainability, Coca-Cola Nigeria Limited, during a courtesy visit by the BusinessDay team to Coca-Cola, recently. across Nigeria P. 30 2 BUSINESS DAY Monday 10 May 2021

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www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 6 BUSINESS DAY Monday 10 May 2021 NEWS Modesty Signature launches ‘The Lantern Essence Collection’ Nigeria in dire need of data amadan is a time of streets to create a more festive The Lantern is not a symbol spiritual reflection, environment that is in tune of Ramadan, but an addition to self-improvement with the holy month. the festivities. analysts, software engineers and heightened de- The gap in gender par- which are the toughest to ac- Rvotion and worship. During Endurance Okafor ticipation in the industry is quire are mostly technology ca- the period of Ramadan, cities another talent-related chal- pabilities, the report revealed worldwide light up and pre- ne in two Ni- lenge, the Nigeria Fintech that skills such as business pare for the month of fasting gerian finan- Census 2020- Profiling and management, marketing and by decorating their houses and cial technol- Defining the Fintech Sector communication are becoming shops with colourful lanterns ogy (FinTech) report shows that female more essential. creating a beautiful and magi- companies cur- workforce participation in “This gap may continue to cal atmosphere. Orently employs at least one the sector stood at 44 percent widen, as more talents emi- According to Nasif Kayed, international talent. while 56 percent was reported grate or work in other markets,” managing director, Sheikh Mo- While attraction and re- for male. While 55 percent the report projected. hammed Centre for Cultural Un- tention of talent is a top tier of Fintechs have all-male However, 77 percent of derstanding, the concept of the challenge for Nigerian Fintech founders only 12 percent of the industry leaders said they lanterns originated in ancient organisations, skills such as the female are founders. were actively looking at ways Egypt, during the Fatimid dy- data analytics, cybersecurity “The quality and volume of to mitigate the skill dearth nasty, when Caliphate Al-Mu-izz and software engineering are FinTech talent in Nigeria is lim- within their organisations, li-Din Allah arrived on the first among the most difficult to ited and insufficient. Attracting through partnerships with day of Ramadan, the people and find, one of the barriers to the and retaining talent remains other SMEs, suppliers/con- children of Egypt went outside to growth of Fintechs. the biggest challenge faced tractors, constant re-training greet him holding their lanterns. Results of the 2020 survey by FinTechs in Nigeria,” Ade to upskill the current work- Before then, lanterns were by FinTech Association of Ni- Bajomo, president, FinTech force, and collaboration with just used to walk around geria (FintechNGR) recently Association of Nigeria said. academia to develop modern at night, and to walk to the released shows that 54 percent Commissioned to better and relevant digital course mosque. But when the Caliph of Fintech companies said understand the needs of the content including off-taking came, the whole community their businesses were facing an sector and to catalyze the next standout candidates from this went to welcome him with acute shortage of digital skills. steps in the evolution of Nige- process. their lanterns. Since then, it “An area where many believe ria’s FinTech landscape, the Breakdown of the report became that the month of Ra- more support is required,” the report defined Fintechs as shows advanced digital skills madan is more beautiful with report said. organisations combining in- are essential for success as lit-up lanterns everywhere. “Nigerian FinTechs thrive novative business models and agreed by most of the industry In modern-day, with the on recruiting onshore talent technology to enable, enhance, leaders that were engaged in availability of electricity and within the domestic market,” and disrupt financial services the survey. 77 percent of the technology, lanterns are not Dapo Adewole, partner, Tech- EY Definition of FinTech. Fintech leaders pointed to data really needed as a source of nology & FinTech Leader West While the leaders that were analytics as “critical” to strategy light. Instead, it is now used as Africa, EY said in the report that interviewed during the survey and operations, compared to decoration for popular Rama- was jointly published by EY. suggest that the skill areas other digital skills. dan tents, gatherings, and city

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TEMITAYO AYETOTO There was also an increase said Stéphane Bancel, chief a global supply of up to 3 billion with new governments in Asia, was valued at cost, the compa- in grant revenue of $190 mil- executive officer of Moderna. doses by 2022. Middle East, Africa, and Latin ny’s cost of sales for the quarter he bulging bubble lion mainly driven by revenue In November 2020, Mod- Moderna vaccine is one America likely to push its total would have been $377 million from COVID-19 rise from BARDA related to the erna began to push for U.S. of the mRNA-based vaccines advance purchase agreements or 22 percent of product sales. vaccines produc- company’s COVID-19 vaccine and European emergency leading the fight against the for 2022 higher than 2021 Also, the financials put tion has lifted Mod- development. authorisation of its COVID-19 pandemic. Governments Costs of sales for the quarter research and development erna to the largest “In the first quarter, the vaccine on Monday following around the world including in focus were $193 million or expenses at $401 million profitableT quarter ever re- Moderna team delivered on results from a late-stage study the US and UK have inoculated 11 percent of product sales, compared to $115 million corded in its 10-year history. its supply commitments to showing its vaccine was 100 millions of people relying on including third-party royalties for the same period in 2020. The US biotechnology com- many governments and helped percent effective in preventing 94 percent efficacy and variant of $84 million. The growth in spending was pany leading messenger RNA protect more than 100 million severe cases and 94.1 percent boosters to boost. A portion of the inven- mainly due to increases in technology posted $1.9 billion people. This accomplishment on the regular. The company is in talks and tory costs associated with the clinical trial expenses, manu- in total revenue for 2021 first translated into our first profit- Based on the feat and its agreements for 2022 with all of company’s products sales for facturing expenses, personnel- quarter compared to $8 million able quarter in the company’s current manufacturing scale- the governments supplied for the three months ended March related costs, and consulting for the same period in 2020, ac- history, after 10 years of sci- up trajectory, the company has 2021 and secured new partner- was expensed as pre-launch and outside services, largely cording to a recent statement. entific innovation and several again increased its 2021 supply ships, with COVAX for up to 466 inventory costs in 2020. driven by mRNA-1273 clinical The revenue leap came on billion dollars invested to make forecast to between 800 million million doses in 2022. If inventory sold in the three development and increased the heels of a full quarter of our mRNA platform a reality” and 1 billion doses as it projects There are also discussions months ended March 31, 2021 headcount. commercial sales of COVID-19 vaccine in the U.S. and an ini- tial ramp up of international sales. A total of 102 million doses were recognised as revenue as product sales hit $1.7 billion for the three months ended in March.

FG, Lagos partner to train finance managers in LGAs

Joshua Bassey

he Federal Govern- ment through the Of- fice of the Accoun- tant-General of the TFederation has partnered the Lagos State government to train public finance managers across the 20 local govern- ments of the state on the imple- mentation of the International Public Sector Accounting Sys- tem (IPSAS) accrual basis of accounting. Speaking during the train- ing session which kicked-off in Ikeja on Tuesday, the accoun- tant-general of the federation, Idris Ahmed said the training followed the realisation that most states and local council areas were behind schedule in the implementation of IPSAS accrual basis. The nationwide training, according to Ahmed, has been packaged to bring up treasury officers at the sub-national level up to speed on the practi- cal steps in the preparation and presentation of IPSAS accrual compliant General Purpose Financial Statements (GPFS). He expressed the hope that after the training, participants would be fully equipped with the technical knowledge for the preparation and presenta- tion of IPSAS Accrual Basis of Accounting Compliant GPFS of their respective offices. Ahmed, represented at the event by Chris Nyong, Federal Account Allocation Commit- tee (FAAC) sub-committee chairman, commended Lagos State for taking the lead to adopt the use of IPSAS in its accounting processes since 2016, saying that for the new accounting procedure to be all-encompassing, the local councils must also key into the initiative.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 9 comment is free COMMENT Send 800word comments to [email protected] Hinny Umoren and the experience of the young Nigerian away from the Island, but pickings had been obtain a motorcycle taxi via hire-purchase visually almost as soon as they learn how slim that night and I was nowhere near my in hope of a better life. to talk, that Nigeria owes them nothing. If N10,000 nightly target. Taking away the cost It is the story of Itunu Babalola, who left they don’t learn to swim very quickly, they of the fuel I would buy the next morning, Ibadan as a 19 year-old and moved 1,137KM ‘ will sink and die - and the world will keep I was actually in the red for the night, so I to Bondoukou in Cote d’Ivoire in search of You either sit on turning. It really is not an idle threat. needed the money. I agreed and the ride opportunities. All she wanted to do was find Nigeria genuinely has no safety net of any began. 20 minutes later as we went past a way to provide for her aged parents, which at home and kind. It is the country where it is possible to Ogudu, I received a notification on the she actually did against all odds, only for die of (literal) be a billionaire today and a pauper by next DAVID driver app - “Destination Updated.” circumstances to conspire cruelly against year at the stroke of a pen in Aso Rock. You The new destination was “Owode Oni- her and leave her languishing in an Ivorian hunger, or must kill what you want to eat and prove HUNDEYIN rin.” Bear in mind that that was 2016, at the prison for an offense she knows nothing yourself every day. Once you fall off the height of the ‘Badoo Gang’ ritual killing about. In her case, she was fortunate enough you get up wagon, it crushes you mercilessly and keeps years ago, fresh out of NYSC and try- phenomenon in Ikorodu and environs - be- to have her story heard at the highest levels on moving. Being weak and fearful here is ing to find my way in Lagos, I found ing anywhere near Ikorodu after dark was an of government, leading to concerted moves and take the biggest crime one can commit. myself inside the editor’s office at invitation to get seriously hurt. I shook my by the Nigerians in Diaspora Commission This emergency consciousness is in- the Kirikiri Canal headquarters of head and pressed on. I needed the money. (NIDCOM) to get her out. Thousands of the risk culcated in young Nigerians through pri- Vanguard Newspapers, looking for On getting past Mile 12, another destination young Nigerians languishing - forgotten - in mary and secondary school, where they 7a job as a reporter. Despite a glowing recom- change came in - “Agric Bus Stop.” I knew prisons around the world due to accidents that Hinny are ranked not primarily based on objective mendation, the editor at the time was unsure, that this was in the heart of Ikorodu and of circumstance are not so lucky. knowledge and exam scores, but on their and it didn’t quite happen for me. I ended up at that point, I should have ended the trip It is the story of the personal assistant I Umoren took, relative performance against each other. starting a career in Marketing Communica- and demanded payment. I looked at their hired back in 2018 who recently admitted For those who have the luxury of aspiring to tions, eventually taking a roundabout route pleading faces and shook my head again. to me that she at first feared I was a kid- on the off higher education, the process of getting into back to Journalism 5 years later. I pressed on. napper. Here was a 28 year-old man with their desired institution or program - which I used to think that the experience of Finally as we neared Ikorodu, with my earrings in both ears who offered her a job chance that it can determine their entire life prospects - is writing a regular column should always be heart inside my mouth and my foot shaking with his infant business earning a salary she another cage fight scenario. To avoid ending enjoyable. Apart from my eulogy for my dear on the accelerator pedal, one more destina- considered unthinkable, plus a free phone pays off up on the scrap heap, they must be smart, departed friend Binta Bhadmus, I have never tion change came in - Igbogbo. Just the night and mini laptop. He even showed up at her lucky or connected. Or all 3. not enjoyed writing every single one of the before, there had been a gruesome killing in parents’ place in Iyana-Ipaja to take her to Getting through university is the next 100+ BusinessDay columns I have written Igbogbo, and I knew that I would be driving his office for a day of training. Looking back obstacle course. The university system over the past 2 years. Now however, I sit here into the mouth of a tiger, unarmed, unpro- on it now, it is easy to see how the picture itself is designed to impede and destroy writing this on a Friday evening, brooding tected and potentially outnumbered by pas- would have looked from her point of view. their ambitions, and the custodians such darkly over the death of a young Nigerian sengers who had been less than honest. I did And yet, she did not decline. She took the as lecturers are there to exploit them finan- whom I never met or knew. a quick mental calculation of how much the offer. She entered the car. Perhaps fearing I cially and sexually. The existence of violent There is no mitigation for the loss of a hu- ride from Lekki to Igbogbo would be worth might have tampered with the AC if I was confraternities offers the constant and real man life with the celebration of a productive - at least N7,000. If I cancelled the ride and indeed a kidnapper, she requested that the threat of getting an axe to the face or a bullet life well lived. There is only the tragedy of a they refused to pay, I would go home empty windows stay down, and she sat there in to the head over something as mundane as a young life cut short in the most horrifying of handed. My wife’s brother needed to pay silent terror all through the journey, hands love triangle. Finally, after making it through circumstances, before it could even begin. his exam fees at UNILAG the next day, or flattened against her laps. As long as there about 22 years of uninterrupted cage fighting Despite being a few thousand kilometres potentially lose an academic year. If I didn’t was the 50-50 chance that this was a real job to graduate from university, now comes the away from the giant crime scene that is the make it happen, no one else would. There that was going to pay her N85,000 a month ultimate cage fight of the Nigerian job mar- Federal Republic of Nigeria, once again I am was too much riding on this trip. with which she could help herself and her ket, which is a jungle with no rules. writing a column about the country’s evil I fixed them with a hard stare, gritted my family, she was ready to take that chance and Hiny Umoren was at this stage when her habit of eating its young. teeth and pressed on to Igbogbo. I was ut- risk being kidnapped and possibly raped or life was brutally cut short. She had done A story from 2016 terly terrified out of my mind, but I could not murdered. everything the system said she should do. After leaving my marketing job 5 years ago go home without that money. No excuses These are the choices that are given to Despite being an orphan, she had made it and making my first unsuccessful attempt would suffice. I needed the money. anyone under the age of 35 in Nigeria. You through school and university, and she was at entrepreneurship, I found myself driving Iniobong Umoren was just trying to either sit at home and die of (literal) hunger, trying to support herself until the start of her an Uber to pay my bills and keep the lights survive - Like all of us or you get up and take the risk that Hinny NYSC program. The name on her Twitter on at home. I was barely 26, but I had a wife To read the story of Iniobong “Hiny” Umoren took, on the off chance that it pays handle “Iron Lady” tells all there is to know and her little brother as direct dependents. Umoren - who was raped and murdered off. Sometimes it turns out well, such as in about how she saw herself - not as a victim After criss-crossing Lagos during the day after being lured by a fake job interview in the case of my former PA, who is now gain- in search of sympathy, but a protagonist hopping from meeting to fruitless meeting Uyo, Akwa Ibom State - is to read the story fully employed and moving up the career making things happen for herself. Instead trying to close deals, I would pick my wife of the quintessential young Nigerian strug- ladder at a financial institution. A lot of the of becoming yet another addition to Nige- up from work, drop her off at home, have a gling to make something of themselves. time, it ends in tragedy, such as in Hinny’s ria’s many problems, or even sitting down meal and then head out at 9PM for a night It is the story of Uche from Abriba who is case. She knew the risks involved and she to complain about them, she went out and of Uber runs. willing to risk it all to travel 500KM to a city even took due precautions including shar- tried to find her own solution. On one such night in September 2016, he has never been to so he can “hustle” and ing her location with a trusted friend and I got a request from Lekki Phase 1 around find success. It is the story of Josiah from Jos updating her regularly. And yet… Hundeyin is a writer, travel addict and journalist midnight. It was a couple going to Mile who is willing to leave everything he has ever First desperation, then despair, then… majoring in politics, tech and finance. He tweets 12. For security reasons, I didn’t like going known, move to Lagos with his family and Young Nigerians are told verbally and @DavidHundeyin. No room for margin of error (1) t the 50th Annual Conference of our remain steadfast and faithful to the credo, ethics, in accordance with the motto of the Institute Institute held in Abuja from 5th to 9th and ethos of our profession regardless of the rag- of Chartered Accountants of Nigeria [ICAN]. April, 2021 I was literally ambushed by ing storms and the devastation as well as vagaries The lawyers advertise themselves as the several professional colleagues who inflicted by Climate change. learned profession. We prefer to enter the arena wereA mostly from small firms of practising Char- They would not budge or shift ground. I had no as both learned and disciplined. To crown it all, tered Accountants. They were accompanied choice but to remind them that our nation made we profess to be the noble profession. by a posse of journalists much to my surprise. wrong choices along the way. Hence, in spite However, Oscar Wilde (1854 to 1900) the play- Even more startling was that they had swapped of the huge potentials with which the Almighty wright has warned: BASHORUN their white ICAN T-Shirts for a more attention- has endowed us in terms of mineral resources “Self advertisement is the worst form of rec- J.K RANDLE grabbing red version with a poignant message: (ranging from oil and gas to gold, iron ore, coal, ommendation.” “WE CANNOT BREATH”. tin, zinc etc.) we deliberately chose to squander it The public whom we serve are entitled to financial discipline in the critical sectors of our They wasted no time in alerting me that they all. At Independence (1st October 1960), we were believe that we have all read: nation’s economy and financial architecture were under threat of extinction. I assumed in the same economic/development bracket as “Great Expectation” - by Charles Dickens especially the “commanding heights.” that this was largely on account of the raging Singapore and Malaysia. Now, they have out- (1812 to 1870). Alas, at our last Annual Conference, it was the COVID-19 pandemic and I attempted to reassure stripped us and left us far behind. The prospects We cannot now turn round to issue a disclaim- Chairman of the Federal Inland Revenue Service them that they are not the only victims of a virus of catching up with them glow dim with every er that any expectation of greatness is unfounded [FIRS] Alhaji Muhammad Mamman Nami who which does not discriminate between small, passing day and fade completely at night. or misplaced. in his contribution to the discussions on “TAXA- medium and large firms, be they Chartered Ac- It is self-evident that our major handicap is When the Institute of Chartered Accountants TION IN A DIGITAL WORLD: PROSPECTSAND countants or whatever else. It was to no avail. the Trust Deficit further compounded by igno- of Nigeria obtained its Charter on 1st September, CHALLENGES”dropped a bombshell: Before I could proceed on a different tack, they rance, poverty, wickedness and incompetence. 1965 from the then Minister of Education, late “99 per cent of our nation’s revenue is being insisted on delivering their verdict on what they However, all these are no match for the putrid Chief Richard Akinjide S.A.N. it was implied that spent on debt service and payment of salaries described as an overpowering sense of impend- corruption we claim to be fighting. the Institute would be the custodian of enduring and allowances.” ing doom or imminent danger – to our noble The trust deficit is writ large – between those greatness – churning out men and women who Extract of an address delivered on 26th April profession and our nation. who govern and those who are being governed. have been deemed fit in character and learning. 2021 as Guest of Honour at the 19th Conferment Of course we all know that the nation has It does not end there. Even more troubling is The order is important – character must be ac- of Fellowship by the Institute of Chartered Ac- been caught within the whirlwind of insecurity the chasm between Chartered Accountants and corded precedence over learning. countants of Nigeria – kidnapping, banditry, ritual murders, armed those we serve under the aegis of the public inter- According to the website of the Institute of robbery, arson, ethnic tensions, insurgency etc. est which is our sacred duty. Chartered Accountants of Nigeria [ICAN], we J.K. Randle is a former President of the Institute of Char- That prompted me to suggest that we have to We cannot blame the public for placing Char- currently have fifty-two thousand Chartered tered Accountants of Nigeria (ICAN) and former Chair- be focused and objective. What is paramount tered Accountants on a pedestal based on our Accountants – spread between the public and man of KPMG Nigeria and Africa Region. He is currently is to separate the particular from the general. avowed commitment to: private sectors. Hence, the public is entitled the Chairman, J.K. Randle Professional Services. Hence, my plea to them was that they should “Truth, accuracy and integrity” to expect us to play a dominant role in driving Email: [email protected]

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Continues online @ www.businessday.ng 10 BUSINESS DAY Monday 10 May 2021 comment is free COMMENT Send 800word comments to [email protected] Nigeria languishes at the bottom of global rankings. What’s it really good at? So, the CGGI findings shouldn’t nomic Freedom, which measured Like me, you may ask: So, what’s GLOBAL indices such as rule of law, regulatory PERSPECTIVES surprise any Nigerian, except those Nigeria really good at? Well, everyone who are part of the problem and efficiency and market openness, -Ni ‘ talks about Nigeria’s human talent those in utter denial about the rut geria is “mostly unfree”, with a score Nigeria’s base and natural resources, particu- this country is stuck in. As the CGGI of 58.7 out of 100 and ranked 105th larly oil and gas, solid minerals and rightly points out: “Good govern- out of 178 countries. Of course, being leaders and agriculture. But these are nothing if ment is a deciding factor in whether mostly unfree, Nigeria is also uncom- some of they are not productively harnessed. nations succeed.” But Nigeria is so petitive. It’s ranked 115th out of 141 Indeed, as Dr Ngozi Okonjo-Iweala, OLU badly governed that it stands no in the 2020 World Economic Forum’s its citizens former Finance Minister and now FASAN chance, if the misrule continues, of Global Competitiveness Report. Un- Director-General of the World Trade ever becoming a flourishing, pros- surprisingly, it’s also one of the least deceive Organisation, points out in her book, perous nation, of ever succeeding innovative, ranked 114th out of 129 Reforming the Unreformable, oil as a country! countries in the 2019 Global Innova- themselves resulted in the “Dutch Disease” in n the book titled, “Ranking Of course, Nigeria’s leaders and tion Index. Despite some progress by saying Nigeria, distorting the economy the world: Grading states as some of its citizens deceive them- in recent years, Nigeria still ranked and turning attention away from a tool of global governance”, selves by saying that Nigeria is the 131st out of 190 countries in the 2020 that Nigeria other sectors, notably agriculture and Professor Alexander Cooley of largest economy in Africa and one World Bank’s Ease of Doing Business manufacturing. Columbia University says that of the largest in the world. That’s Index. So, on economic governance, is the largest According to one index, Nigeria I“rankings appeal to our notion of true. But the gross domestic product, Nigeria is at, or near, the bottom of is the world’s best in three things: who’s top, who’s below.” Indeed, they i.e., GDP, on which the size of an world league tables. economy in the world’s largest producers of yam, do. But not if your country is perpetu- economy is based, can simply be a What about social or human Africa and cassava and taro. But this is just about ally “below”. Sadly, Nigeria is either at, function of a country’s population development? Well, here again, production, not export. Nigeria is not or near, the bottom of global rankings rather than its productivity. Thus, as Nigeria’s global rankings are appall- one of the a major, let alone the world’s best, ex- of country performance on such indi- the saying goes: “GDP is not destiny.” ing. Take the United Nations Human porter of any of these products. Thus, ces as economic management, social For instance, with 206m peo- Development Index. Nigeria ranked largest in the Nigeria remains an undiversified, progress and good governance. ple, Nigeria is the world’s 7th most 161st out of 189 countries in 2020 oil-based, monoculture economy. The latest global index is the in- populous country and, with a GDP index. The World Bank ranked Nige- world So, why does all this matter? Well, augural Chandler Good Government of $375.7bn, it’s the world’s 30th ria the 7th worst country in its 2020 proximately, it matters because the Index (CGGI), published two weeks largest economy. Yet, judged by Human Capital Index. Nigeria was world is watching. The indexes influ- ago. The index ranked countries ac- GDP per capita, the real measure 136th out of 163 countries in the 2020 ence the perceptions of foreign inves- cording to government capabilities of how well-off people are, Nigeria, Social Progress Index, and 144th out tors, governments and media about and effectiveness. So, how did Nige- with a paltry per capita income of of 167 countries in the 2020 Legatum a country. But, more importantly, ria perform? Well, woefully! Out of $2,230, is 136th in the world. What’s Prosperity Index. it matters because Nigeria cannot the 104 countries assessed, Nigeria more, as this piece shows, Nigeria Of course, we already know that succeed with bad government, inept ranked 102nd, only outperforming languishes at the bottom of virtually Nigeria is the “poverty capital of leaders and dysfunctional institu- Zimbabwe and Venezuela. In other all world league tables of govern- the world”, according to the Brook- tions. When you add insecurity and words, according to the index, Nigeria ment performance across virtually ings Institution’s Global Poverty political instability, this could make is the third worst nation in the world! all key indices. report, and the third country most a country not only a fragile state, but If you are wondering why, well, So, Nigeria’s population size and impacted by terrorism according a failed one. Sadly, according to the just take a look at the seven indicators the size of its economy have had to the 2020 Global Terrorism Index, 2020 Fragile States Index, Nigeria is the index assessed. They are leader- no positive bearing on its progress. thanks to Boko Haram and the killer already the world’s 14th most fragile ship and foresight; robust laws and Indeed, one can say, rather colloqui- herdsmen, the world’s third and fifth nation. policies; strong institutions; financial ally, that Nigeria is a big-for-nothing deadliest terrorist groups, which Professor Cooley says that global stewardship; attractive marketplace; country. Think of it: how can a coun- have made Nigeria one of the least rankings “generate competition” global influence and reputation; and try like Nigeria be stuck at the bottom safe countries in the world. and can “name and shame countries helping people rise. Now, would you of international rankings, wallowing Now, all of this adds up to give into trying to do better.” Well, not in say, with hand on heart, that Nigeria in the mud of underdevelopment, Nigeria a terrible global image. In Nigeria. The utter fragility exposed has shown even the basic levels of poverty and misery with Fourth the 2019 Country Brand Index, which by Nigeria’s woeful global rank- capability and effectiveness in any World countries like Afghanistan measured the strength of perception ings should shame its leaders into of them? and Haiti? of countries around the world and radically transforming the country’s I mean: Does Nigeria have a vi- As I said earlier, the Chandler focused on the 75 largest countries structure, institutions and govern- sionary leader with imaginative Good Government Index is just the (by GDP), Nigeria was in 68th place ance. But they care not a jot about ideas on how to tackle the country’s latest to expose Nigeria’s utter fra- out of the 75 countries. The 2017 Nigeria’s future. For if they do, they problems? Is Nigeria a rule-of-law gility. Other international indexes, Good Country Index, which used will know that Nigeria is too fragile country? Are Nigerian institutions using robust metrics, have pointed to a composite of statistics of 35 data and that unless its decline is reversed, working? Is Nigeria financially pru- the same evidence, namely, that Ni- points mostly generated by the UN, it could become a failed state! dent? Is the environment for private geria is too poorly run and too poorly put Nigeria at 126th out of 163 coun- investment attractive? Is the Nigerian performing that it risks becoming a tries. Even worse, Nigeria didn’t even make it into the US News 2020 Best brand reputable globally? And does broken state. Let’s consider a few of Dr. Fasan, a London-based lawyer and Nigeria look after its citizens, ensur- the global rankings across some key Countries Index, which ranked 73 political economist, is a Visiting Fellow ing their prosperity and security? I’m indicators. countries, although South Africa, at at the London School of Economics. sure your answer to each of these Take economy governance. Ac- 39th, Kenya (53rd) and Ghana (67th) e-mail: [email protected], questions is a resounding no! cording to the 2020 Index of Eco- are on the list! twitter account: @olu_fasan Tenure limits for directors – Any demerits?

here are arguments in favour of term rate Governance Codes. These limits relate to institutional knowledge on the Board. Accord- limits for Directors. By establishing cover Executive, Non-Executive and Independ- ing to Hillman and Dalziel, “Firms ending in Director tenure limits, organizations ent Directors. The Nigerian Code of Corporate financial distress are likely to have Boards with make room for rejuvenation and the Governance 2018 however leaves the issue of shorter tenures compared to those with longer Ton boarding of Directors with new skill set and term limits for Executive and Non-Executive tenure. More so, the expertise hypothesis is relevant experience. Boards also set tenure limits Directors to the discretion of the Board, based used to argue that longer tenure is associated BISI to allow for membership to be refreshed periodi- on the peculiarities of the Company. It however with improved Director performance, because ADEYEMI cally. As businesses evolve, the skill sets required sets term limits for Independent Directors at Directors develop more expertise over time and Management – this is not very healthy for the for Board effectiveness change. Tenure limits nine years. become more willing to criticize Management.” enterprise. It is thus important to strike a balance thus enable the Board to respond to change and Those who argue against tenure limits note Setting tenure limits also impacts the Board’s as contemplated by the Companies and Allied be refreshed periodically. This is more so in the the cost of recruiting new directors as a major ability to replace non-performing or dysfunc- Matters Act which requires one third of Direc- age of disruption where technology is rapidly demerit of limiting the tenure of Directors on tional Directors as there is a tendency to allow tors to retire periodically. The Board can use changing the nature of business operations. the Board. Good Directors don’t grow on trees them run out such fixed tenure. this to refresh the Board, whilst retaining those Also, in favour of tenure limits is the need and an effective Board will typically undergo a Bringing it all together, while there are Directors that have institutional knowledge and to safeguard the independence and sound- rigorous Director Selection process to replace immense advantages that accrue from set- experience required to create the right balance judgement of Directors. When Directors stay on exiting Directors. Beyond cost, recruiting a direc- ting tenure limits, one cannot wish away the for Board effectiveness. the Board for too long, there is the tendency to tor with the right fit can be time consuming and demerits of such tenure limits. According to develop an allegiance towards Management, en- sometimes the Board ends up with a less than Kennedy Mwengei and David Kosgei, the Board gendered by familiarity, which could reduce the optimal choice where it does not have luxury of that is long tenured without any limit will breed motivation to criticize Management proposals. time or the patience required. Management friendliness and allegiance and Bisi Adeyemi is the Managing Director, DCSL Corporate In Nigeria, term limits have been typically set Another argument against tenure limit is given this atmosphere, the Board might lack the Services Limited. Kindly forward comments and reactions by industry regulators via the respective Corpo- the propensity to impact on the presence of effrontery to carry out its oversight function over to [email protected]. www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Uwaoma is a start-up, corporate restructuring and strategy consultant. [email protected]

Monday 10 May 2021 EIZU BUSINESS DAY 11 UWAOMA comment is free COMMENT Send 800word comments to [email protected] Why the state, not Nigeria, could fail OLA failings at the helm of Nigeria. a thankfully lower hanging fruit than an a purpose can see Nigeria emerge to truly BELLO Cheeseman and Aina essentially re- out-rightly tricking down economy, dif- lead Africa. One irony is that a failing state formulate what I have always regarded ficult to engineer from this abyss. ‘ may counter-intuitively strengthen a as Nigeria the two speeds nation. One Anyone might share my relative san- Nigeria is national identity, framed by non-ethnic, n article in the Foreign Af- in which the well-off and owners of guineness if they feel all of the youthful not yet a exclusivist-regional or religious goals, fairs journal has just set off significant stakes will defend the Nige- entrepreneurial energy around me here but based narrowly on class (mostly heated debates online about ria project as a pan-national class, not in Lagos, which is relatively better or- failed state economic) interests. whether Nigeria is a failed as representatives of their individual ganised. This should not be too difficult Recent reflections have also led me to state. Professor Nick Chess- ethnic groups. They will be enabled by to upscale when progressively emulated but can consider how our time horizon affects manA who’s an associate from the years I a dependable army of the less-well-off, upcountry by purposeful elected repre- our notion of success or failure as well fail. There consulted and wrote on EU-Kenya devel- hanger-ons who even at this dire eco- sentatives, like Governors for Ekiti, Kadu- as the benchmark of identity. So, ‘fail- opment cooperation more than a decade nomic times largely survive on big-men’s na and Edo states are showing glimpses exist still, ing’, ‘being a failure’ and ‘failed’ are all ago co-authored this article with Fola hand-outs. of the Lagos-led reforming spirit. It might subjective categories for this reason and Aina, a doctoral fellow at King’s College So the co-authors’ view on inclusive- take a whole generation but doable. several depend on the magnitude, duration and London. Their article is provocatively ness at macro political level, I totally I admit that I have somewhat argued what comes next. The state in Nigeria is titled, “Don’t call Nigeria a failed state”. concur with. The worry for me has always against the Obama Africa admonition recourses failed or failing as I wrote above. Still, To be transparent, I’ve given more been the other Nigeria - slow-speed, not to trust strongmen but institutions. that can looking through history, some identi- than five public addresses in the past 14 mostly in reverse, the world of the in- Our power brokers at all levels are ties have survived although states have months since Covid-19 reached Nigeria creasingly left behind - now being sucked those strongmen. Their role in rallying dramatically failed- the Gauls, Catalans, the Nubians in March 2020. I found myself on each almost inexorably into a governance together at crucial moments is largely and Peul (Fulani). occasion offering this disclaimer: that I vacuum with the dramatic explosion unheralded and has been part of Ni- reverse the Also, failure of a state may not herald have spent much of my two decades plus this year of assorted insecurity actors fill- geria’s saving grace through the several the doomsday as widely held. In some working on African Security, Develop- ing that vacuum. They include bandits, political turbulence. If they grasp the net- current rot sense, it is a part of the evolutionary pro- ment and Governance arguing spiritedly kidnappers, terror groups and ethnic tle, pushed by the current deterioration, cess on the journey towards a more stable with academic colleagues and others to militias. These needs to be tackled with I am backing them to be able to count equilibrium, like the cobweb equilibrium dispel the notion that Nigeria is a failed both burning urgency and a laser focus. stronger institutions on their side as a theory. In this sense, much of the recent state. More recently, however, I have More specifically, it is the broadly veritable ally in resetting the Nigerian dialogue on nationhood and Nigeria been somewhat shifting position, seeing optimistic tone of the co-authored ar- project. Also, there is that growing trend have been both necessary and at times the amplifying effect of the coronavirus ticle that most persuades me. Sensible of few technocrats leaving roles in busi- alarmist. Failure of one state may be part pandemic on Nigeria’s worst vulner- security and economic reform to address ness and elsewhere to enter politics in of the process towards the actualisation abilities whilst niggling away at some of the underlying desperation will put Ni- order to role-model for the archetypal of successful nation-states. its once vaunted resilience factors. geria in far better stead and perhaps a lot deals-making but zero-innovation politi- Let Nigerians keep the national iden- So no bonus marks for guessing which quicker than many think. Also, a capable cians that dominate Nigeria. tity together, agonise less about a state side of the state failure argument I woke aspirant emerging Nigeria’s presidency So, my take is that Nigeria is not yet a that has always existed mostly in its up on this day when I read the Chess- can set a similar tone down the lower failed state but can fail. There exist still, absence and only in parts. What is more man-Aina take on Nigeria in Foreign political levels. Focused reform can be several recourses that can dramatically important than the discussion about Affairs and thereby provoked to scribble spurred to life. reverse the current rot. Whatever readers characterizing failure or success is how this piece. I ended up agreeing largely To capture all of this, something I make of my rosy take, be reassured at we organise and what comes next. with their central thesis that Nigeria, heard from a successful businessman least that even I have revised my position Whether or not what we contrive rein- rather than failing, may have become friend - who would not have written a almost daily to both support and oppose forces the Nigerian identity or fragments more inclusive and stronger over the past PhD if he got another eight lives, or even different sides of the Nigeria state failure is the big question. twenty-two years of democratic rule. And considered engaging in the largely arm- debate. truly, we have seen in these past seven chair philosophizing about state failure So, some concluding philosophical months both the power of Nigerian - is cogent and succinct. “Nigeria won’t thoughts. As long as a Nigerian identity implode because what the ordinary peo- exists, which I insist is real at least among youth everywhere demanding more civil Dr Bello is Executive Director, Good policing, spurred by the ENDSARS cam- ple want is just the simple things in life the elites, Nigeria is not yet a failed state. Governance Africa. He holds a doctorate paign. Less edifying, the unfortunately and the feel good factor that comes with Nevertheless, the Nigerian state is argu- from the University of Cambridge and ethnically-framed agitations in some a fairly growing economy that is dripping ably a failure. The glue that keeps people advises the AU, UNECA and AfDB on parts against President Buhari’s clear resources down”. The ‘dripping’ for me is together is the identity, and coupled with the African Mining Vision Pulling back for growth - Why and how to have a retreat

ulling it backwards can only shoot In my years of developing teams and follow these step by step processes for or- an arrow forward. This overly busy, organizations, having interacted with tens ganizing a retreat: brash and confrontational busi- of thousands of executives, I can say that 1. Define why you want to have a retreat ness world creates a false mirage of the spark of newness that leads to true and for a period. Pproductivity. So when it gets too much and long lasting growth occurs after retreats and 2. State in clear terms your desired out- EIZU when we are faced with stress, uncertainties regrouping. This is powered by the newly come for the retreat. UWAOMA and difficulties, whether life or business, enhanced relationships and strategies of 3. Decide the facilitators. retreat! connected people. 4. Create a retreat committee (these guys A retreat is the act of temporarily with- Even as a core HR function, massive or will be in charge of organizing the logistics, a great time out. Corporate retreats can be drawing from the usual or a time away in strategic hires should happen just before a management and outcomes) customized to fit the company’s needs and a quiet and secluded place where you can retreat. Then you can invite key prospects 5. Create a checklist even budget. We can always help you out relax and strategize. It can be personal or being considered. While they are there, 7. Create an agenda at Hexavia! corporate. As a management or corporate watch their true colours to see if they be- 8. Decide who should attend Beyond retreat as a management practice, unit, a retreat is a getaway session or sets haviourally make a good strategic fit for 8. Communicate the purpose and expec- once in a while on a personal level learn to of sessions that are typically designed and your firm. tations of the retreat to attendees. retreat. Explore, travel; getaway, enjoy the organized to facilitate the ability of a group While it seems easier than said to get 9. Choose a location here and the now. It’s not all the time that a to step back from their day-to-day demands people to jump on, most times to drive a 10. Create ground rules that will guide vacation must be in the popular and busy and activities to progress better. It is a period retreat agenda, it must have the natural every activity. cities of Dubai and London. How about you of mindfulness and concentrated discus- buy-in of the people. To achieve this and to 11.Ensure you have a methodology and visit other green lands and country homes sion. It delivers meaningful team bonding make it more interesting, announce it not as structure to document key resolutions or you just take out time to explore the activities, dialogues and strategic thinking an extension of work, but as a reward. Give 12. Implement the retreat. world’s greatest mysteries and wonder; surf towards the organization’s future. them a chance to define their expectations, A corporate retreat is incomplete without on bluer waters, dive the depths of the Mari- Corporate retreats can be of any type, be democratic and participative. If man- relaxation, mind tasking and enough fun ana Trench. Visit the Phantom Islands of from sports styled retreat filled with fun agement can afford a serene and magical activities. Some fun activities can include Bermeja, the Vile Vortices or the vortexes of activities to a seminar-style retreat filled location, that will be great. Back it up with dancing, campfire setups, sports and Bermuda, you can never consider yourself with discussion or even both. Whatever the an informal announcement of a bonus workouts, board games, river rafting, rock wise until you voyage. From there you’d find case is, it should help everyone relax and or an incentive alongside it. And during climbing, mountain climbing. You can even peace and insights, you’d unlock secrets and mentally reboot. And on the other hand it, management can show their gratitude be more adventurous. Take for example, maybe even understand love and the extent while in a group, it should promote a feeling and appreciation towards their employees imagine everyone hiking blindfolded while of even human stupidity. of teamwork. Corporate retreats can also through many recreational activities, award holding on the same rope. Imagine team help employees gain some problem-solving nights and a party. scavenger hunts, or even friendly competi- Uwaoma is a start-up, corporate restructuring and strat- skills that lead to better cohesiveness and To plan a retreat requires a set of inten- tions between company departments, etc. egy consultant. [email protected] productivity. tional steps. To achieve an optimized time, You don’t have to break a bank to achieve

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PUBLISHER/EDITOR-IN-CHIEF Frank Aigbogun NERC, listen to electricity customers’ complaints EDITOR e are seeing sector. Customers spend their money ineffectual. Enforcing customer’s NERC is compelling customers to Tayo Fagbule an avalanche to buy or repair transformers, power rights should be a priority for a pay a higher tariff rate for electricity DEPUTY EDITORS of unresolved cables, meters, and other power serious regulator. based on the hours of power they Lolade Akinmurele customer com- infrastructure that should have been According to the 2019 annual re- supply daily. Yet, DisCos are not John Osadolor, Abuja plaints in the provided by their DisCos. port of the Federal Competition and meeting their obligation to supply electricityW sector and the Distri- NERC recently published a dis- Consumer Protection Commission, the full contracted hours. They NEWS EDITOR bution Companies (DisCos) are pute complaint resolution process the bulk of complaints received was should be sanctioned. Osa Victor Obayagbona either unwilling or incapable to mapping and put it up on Twitter, from the power sector. Electricity supply is worse in the resolve them while the regulator, which allowed dozens of customers “Some of the recurring con- southeastern parts of the country if NEWS EDITOR (Online) the Nigerian Electricity Regula- to complain under the tweet. The sumer complaints handled by the you leave the main cities such as Chuks Oluigbo tory Commission appears clue- regulator kept referring the custom- Commission in the electricity sec- Owerri, Umuahia, Onitsha, due to less. This is unbecoming and it is ers back to their DisCos as if it was tor were wrong, estimated billing, atrocious service by Enugu DisCo now time to prioritise customers’ not the incompetence of the DisCos non-provision of prepaid meters, who continues to fight to keep its MANAGING DIRECTOR Dr. Ogho Okiti needs after ramming through a 50 that drove them to complain to the unlawful disconnection, harass- franchise area intact when it is percent hike in tariffs. regulator in the first place. The ment by DisCos, no provision abysmally serving them. In parts of EXECUTIVE DIRECTOR, OPERATIONS Electricity customers feel process of resolving customer com- of infrastructure (electric poles, Northern Nigerian served by Kano Fabian Akagha helpless when their meters mal- plaints is slow, time-consuming, transformers, and accessories) and and Kaduna DisCos, millions do not function and they have to deal and stress-inducing. It should not be poor customer service,” the Com- get power supply for weeks. Lack of GM ADVERT with the unwieldy customer this way if the regulator was alive mission said. electricity in the rural areas is one Ijeoma Ude complaints resolution process to its duties. DisCos make a show We urge the regulator to be re- important reason for rural-urban at the DisCos, or when the next of their swanky IT-led customer sponsive to the challenges facing migration and lack of development GM CONFERENCES estimated bill arrives and they complaints resolution systems but the electricity customer. The gov- outside major cities. Obiora Onyeaso know that it is ridiculously far they fail to address the most basic ernment’s National Mass Metering It is shameful that complaints GM BUSINESS DEVELOPMENT (North) higher than what they actually complaints. Programme (NMMP) is failing are not reducing significantly in Bashir Ibrahim Hassan consumed. The next recourse is NERC usually invites dissatis- despite claims by government of- a sector supposedly undergoing to complain to the regulator and fied customers to complain to their ficials touting its progress. It was reforms. During the second quarter GM BUSINESS DEVELOPMENT (South) more often than not, they are left DisCos and if it is not resolved, absurd to try to replace the Meter of 2020, the eleven DisCos received Ignatius Chukwu even more frustrated. escalate it to the forum offices - a Asset Providers regulation, backed 203,116 complaints from consum- Over seven years after the quasi court where the regulator ad- by regulation with a programme ers, indicating 0.68 percent fewer GM DIGITAL SUBSCRIPTION SALES power sector was privatised, less judicates. But customers say cases without any legal backing. After complaints than those received Rerhe Idonije than half of the over 10million taken there are not addressed fairly months of promising customers during the first quarter of 2020 electricity customers have meters or timeously. Many are ignored 1million meters, the government according to NERC’s report. The BUSINESS DEVELOPMENT MANAGER and of these, 3million customers altogether. When a DisCo takes has only delivered around 30,000 regulator cannot continue to acqui- (South East, South South) months to address a customer’s con- despite all the fanfare. Patrick Ijegbai have defective meters. This is esce to the demands of the DisCos despite the fact that estimated bill- cern, then regardless of how great The Service-based tariff system while ignoring customers. This is COPY SALES MANAGER ing is the most vexing issue in the the process mapping may look, it is introduced in November 2020 by how to fail, abysmally. Florence Kadiri

DIGITAL ADVERT SALES MANAGER Linda Ochugbua

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In Association With

??????ropeThe rise of e-money The digital currencies that matter Get ready for Fedcoin and the e-euro

ECHNOLOGICAL sources of funding with which to CHANGE is upend- back their loans. ing finance. Bitcoin If retail banks were sucked dry has gone from being of funding, someone else would an obsession of anar- have to do the lending that fuels chists to a $1trn asset class that business creation. This raises the T queasy prospect of bureaucrats many fund managers insist be- longs in any balanced portfolio. influencing credit allocation. In a Swarms of digital day-traders crisis, a digital stampede of savers have become a force on Wall to the central bank could cause Street. PayPal has 392m users, a bank runs. sign that America is catching up Once ascendant, govcoins with China’s digital-payments could become panopticons for giants. Yet, as our special report the state to control citizens: think explains, the least noticed dis- of instant e-fines for bad behav- ruption on the frontier between iour. They could alter geopoli- technology and finance may end tics, too, by providing a conduit up as the most revolutionary: for cross-border payments and the creation of government digi- alternatives to the dollar, the tal currencies, which typically world’s reserve currency and a aim to let people deposit funds linchpin of American influence. directly with a central bank, The greenback’s reign is based bypassing conventional lenders. partly on America’s open capital These “govcoins” are a new markets and property rights, incarnation of money. They Silicon Valley wannabes such as senting the bulk of global GDP, bitcoin is not widely accepted which China cannot rival. But promise to make finance work Facebook. are exploring digital currencies. and credit cards are expensive. it also relies on old payments better but also to shift power Government or central-bank The Bahamas has issued digital Government e-currencies would systems, invoicing conventions from individuals to the state, al- digital currencies are the next money. China has rolled out its e- score highly, since they are state- and inertia—making it ripe for ter geopolitics and change how step but they come with a twist, yuan pilot to over 500,000 people. guaranteed and use a cheap, disruption. Small countries fear capital is allocated. They are to because they would centralise The EU wants a virtual euro by central payments hub. that, instead of using local mon- be treated with optimism, and power in the state rather than 2025, Britain has launched a task- As a result, govcoins could ey, people might switch to foreign humility. spread it through networks or force, and America, the world’s cut the operating expenses of e-currencies, causing chaos at A decade or so ago, amid the give it to private monopolies. financial hegemon, is building a the global financial industry, home. wreckage of Lehman Brothers, The idea behind them is simple. hypothetical e-dollar. which amount to over $350 a year Such a vast spectrum of op- Paul Volcker, a former head of Instead of holding an account One motivation for govern- for every person on Earth. That portunities and dangers is daunt- the Federal Reserve, grumbled with a retail bank, you would ments and central banks is a fear could make finance accessible for ing. It is revealing that China’s that banking’s last useful inno- do so direct with a central bank of losing control. Today central the 1.7bn people who lack bank autocrats, who value control vation was the ATM. Since the through an interface resembling banks harness the banking sys- accounts. Government digital above all else, are limiting the crisis, the industry has raised its apps such as Alipay or Venmo. tem to amplify monetary policy. currencies could also expand size of the e-yuan and clamping game. Banks have modernised Rather than writing cheques or If payments, deposits and loans governments’ toolkits by letting down on private platforms such their creaking IT systems. En- paying online with a card, you migrate from banks into privately them make instant payments as Ant. Open societies should also trepreneurs have built an ex- could use the central bank’s run digital realms, central banks to citizens and cut interest rates proceed cautiously by, say, cap- perimental world of “decentral- cheap plumbing. And your mon- will struggle to manage the eco- below zero. For ordinary users, ping digital-currency accounts. ised finance”, of which bitcoin ey would be guaranteed by the nomic cycle and inject funds into the appeal of a free, safe, instant, Governments and financial is the most famous part and full faith of the state, not a fallible the system during a crisis. Unsu- universal means of payment is firms need to prepare for a long- which contains a riot of tokens, bank. Want to buy a pizza or help pervised private networks could obvious. term shift in how money works, as databases and conduits that a broke sibling? No need to deal become a Wild West of fraud and It is this appeal, though, that momentous as the leap to metal- interact to varying degrees with with Citigroup’s call centre or pay privacy abuses. creates dangers. Unconstrained, lic coins or payment cards. That traditional finance. Meanwhile, Mastercard’s fees: the Bank of The other motivation is the govcoins could fast become a means beefing up privacy laws, financial “platform” firms now England and the Fed are at your promise of a better financial dominant force in finance, par- reforming how central banks are have over 3bn customers who service. system. Ideally money provides ticularly if network effects made run and preparing retail banks for use e-wallets and payments This metamorphosis of central a reliable store of value, a stable it hard for people to opt out. They a more peripheral role. State digi- apps. Alongside PayPal are other banks from the aristocrats of fi- unit of account and an efficient could destabilise banks, because tal currencies are the next great specialists such as Ant Group, nance to its labourers sounds far- means of payment. Today’s mon- if most people and firms stashed experiment in finance, and they Grab and Mercado Pago, estab- fetched, but it is under way. Over ey gets mixed marks. Uninsured their cash at the central banks, promise to be a lot more conse- lished firms such as Visa, and 50 monetary authorities, repre- depositors can suffer if banks fail, lenders would have to find other quential than the humble ATM.

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In Association With

Serfing the web The new rules of the “creator economy” Social-media platforms used to get most of their content for free. That dynamic is changing

OOK AT YOU down now testing a Cameo-like feature share of subscription revenues to there, trying to run for called “Super”, a Substack-esque its top streamers; Substack offers your life,” jeers Summer newsletter platform, and is paying advances to writers it believes will Solesis, peering down at gamers big bucks to join Facebook be a hit. The share of revenue that the camera. “You don’t Gaming, its tribute to Twitch. In creators can earn seems to depend Lstand a chance against my giant, all, it says, the number of content- on how easily they could leave. size 11 feet!” Standing over her makers earning over $1,000 a Moving one’s email list away from phone, she pretends to stamp month on the platform almost Substack is simple, so the firm lets on the viewer, who gets the ef- doubled in 2020. writers keep 90% of their revenues. fect—sort of—that Ms Solesis is “In developing all of these Game-makers on Roblox, who are a “giantess with dirty feet getting things, we’re actually really fo- basically stuck there, keep about rid of the tiny men infesting my cused on the creator side, even 25%. house”, as one video is captioned. more than on the consumption The dancers of TikTok and The production quality is low-fi, side,” said Mark Zuckerberg, Face- pranksters of YouTube, whose but viewers seem not to mind. book’s boss, in a recent interview popularity rises or falls on the “Unforgettable sweet crushing,” with Casey Newton, author of the tweak of a recommendation al- swoons one fan, Sven, in the com- Platformer newsletter. In an ef- gorithm, may seem easily replace- ments below. are increasingly finding that their it. “There’s an arms race to acquire fort to attract more of them, it is able. In reality, the opportunities The pseudonymous Ms Solesis, output can command a price, with creators,” says Li Jin, founder of offering creators not just money for interaction with online stars a personable 26-year-old Floridi- the effect that some of the inter- Atelier Ventures, a venture-capital but power: newsletter authors may make their audiences more an, reinvented herself as an online net’s most successful companies firm. Startups are developing new will own their recipient list and be loyal than those of other celebri- “foot goddess” last March after are being forced to adapt their ways for creators to monetise able to take it to another platform, ties, Mr Kemp points out. Jennifer covid-19 did for her restaurant business model. New platforms their work. Substack gives writers the equivalent of being allowed to Aniston and her buddies were in job. “My mom’s just always told are offering creators ways to cap- 90% of the subscription fees they move one’s Facebook friends over people’s sitting rooms for half an me I had pretty feet,” she says. So ture the value of their output for charge for newsletters; together to Twitter. hour a week. Charli D’Amelio, “I was just like, well, let’s see if the themselves, as Ms Solesis did its top ten authors earn more YouTube, which has long given TikTok’s top bopper, is in their internet thinks I have pretty feet.” when she moved from Instagram than $15m a year. Twitch gives its regular video-posters a 55% cut of pockets all day. “After a decade of It did. On Instagram she gained to OnlyFans. Bloggers and tweet- game streamers more than half of ad revenue, is developing new fea- building their audiences, a class 20,000 followers. Some offered ers are moving their musings its subscription fees, plus a cut of tures including tips in the form of of Super Creators have emerged money for personalised photos to paid newsletter services like ad revenue and the money paid paid “applause”. It says the number that have leverage over their ag- and videos. A few months later she Substack; amateur video-game to “cheer” their performance. of channels joining its paid “part- gregators,” wrote Rameez Tase, joined OnlyFans, a London-based makers are selling their pixelated Cameo, a platform on which ner programme” in 2020 was more head of Antenna, an audience- subscription platform. About 50 creations on platforms like Rob- 40,000 celebrities sell person- than double that in 2019. In all it measurement company, in a re- people around the world pay $10 lox; viewers are paying to watch alised videos to fans, passes 75% has paid contributors $30bn in cent blog post. “They simply built a month for Ms Solesis’s newsfeed, experts play them on streaming of the spoils to contributors. Brian ad-revenue shares and subscrip- such large, engaged audiences adding up to around $5,000 a year services like Twitch, owned by Baumgartner, an actor in “The Of- tion fees in the past three years, far that those audiences would follow after OnlyFans takes its 20% cut. Amazon. fice”, an American sitcom, was its more than any other social plat- them anywhere.” She roughly doubles that with tips The upstarts are forcing in- top earner last year, making over form. Last year TikTok, a short-vid- Yet what of those creators with and merchandise, including un- cumbents such as Facebook to $1m. Clubhouse, a social-audio eo app, launched a “creator fund” more modest followings? A few washed socks ($10 per day worn). compensate users for the unpaid app, allows tips and has an “accel- which it says will dispense more online stars earn megabucks, but In the past decade anyone with work they may not have realised erator programme” for promising than $2bn to users in its first three the tail is long (see charts). Spotify a phone has become a potential they were doing. And they are hosts. It plans to test features such years. Douyin, its Chinese twin, is says it wants to give “a million cre- content creator. Cameras have got helping professional creators, who as tickets and subscriptions. investing $1.5bn with the aim of ative artists the opportunity to live sharper, processors more pow- once relied on middlemen, reach In response, platforms that doubling its creators’ revenues. off their art”. But only about 0.2% erful and networks faster. Apps their audience directly. once paid little or nothing to cre- Snapchat, another social-video of the 7m-plus musicians on the can improve even the shoddiest The abundance of content in ators are ponying up. Companies app, last year launched Spotlight, platform make more than $50,000 content. Instagram, launched in the internet age has meant that the “need to either offer some way a sharing feature through which it a year in royalties; just 3% make 2010, provided filters that made success of online media platforms to monetise that content on- is paying $1m a day to the creators more than $1,000. There are 20m ordinary photos look cool. Tik- has depended on their ability to platform, or…they’ll become just of its most popular clips. gaming “experiences” on Roblox, Tok has made it as simple to edit help users discover it. Rather than a promotional hub, where people Newer types of media are join- but nearly 15% of all play takes video. In April Facebook unveiled commissioning videos or articles, essentially advertise the content ing in. Douyu and Huya, China’s place on one game, “Brookhaven recording tools that aim to do for they have focused on building al- that they’re monetising on other largest game-streaming platforms, RP”, according to analysis by Ran amateur podcasters what Insta- gorithms or content-management platforms,” says Josh Constine each paid out 7.1bn yuan ($1.1bn) Mo of Electronic Arts, a game de- gram did for bad photographers. systems which serve users the best of SignalFire, another venture- to streamers last year, 31% more veloper. On Patreon, where people The internet’s limitless, free distri- of others’ creations. capital firm. than in 2019. Spotify and Apple, can subscribe to creative services bution and searchability has made One consequence of the inter- Twitter was in danger of be- the two biggest podcast platforms, of all sorts, 200,000 creators earn a it possible for this output—videos, net is that “value has shifted away coming a promotional tool for are wooing amateur broadcasters. total of $1bn a year. The top earner music, jokes, rants and all manner from companies that control the Substack writers and Clubhouse Last month Apple announced that makes around $2m, but about of things that defy categorisa- distribution of scarce resources broadcasters. It is now trying to it would let podcasters charge sub- 98% make less than the federal tion—to find an audience, how- to those that control demand beat both at their own game. In scription fees, of which it would minimum wage of $1,257 a month. ever niche. for abundant ones,” writes Ben January it bought Revue, a news- take a 30% cut for the first year, Yet apart from a few megastar Thompson, author of the tech letter firm, and cut its commission then dropping to 15%; days later “influencers”, most creators receive newsletter, Stratechery, who calls to 5%, half Substack’s. On May 3rd Spotify followed suit—but said no reward beyond the thrill of notch- such firms “aggregators”. Because it added Spaces, a Clubhouse-like creators could keep the lot (from ing up “likes”. Facebook, the world’s the platform sets the conditions audio feature; soon it will let users 2023 it will take 5%). largest social network, has built a for a piece of content’s success, sell tickets to chats they host. The As platforms fight over the $92bn-per-year advertising business via its algorithm, suppliers have ability to sign up for a newsletter or most popular content, bargaining by selling space alongside posts by its to adapt to its rules, thus com- join an audio room directly from power is being transferred to the 2.8bn happily unpaid user-suppliers. moditising themselves. In this Twitter, without the friction of people who make it. Simon Kemp Twitter makes $3.4bn a year flogging world of abundant supply, content moving apps, gives the company of Kepios, an internet research ads among the free editorial typed by providers become as interchange- an edge over its startup rivals, firm, compares platforms’ nego- its 350m contributors. Being on the able, and have as little bargaining says Mark Shmulik of Bernstein, a tiations with top creators to TV platform can feel like “the greatest power, as Uber drivers. research firm. networks’ wrangling with the cast unpaid internship of all”, Samhita Yet something in this model is Facebook is also trying to make of “Friends” over each season’s Mukhopadhyay, an American jour- changing. Though there is more creators stick around. Last year it contracts. Many offer better terms nalist, recently tweeted. content than ever, platforms are made paid subscriptions widely to their most successful creators: But the serfs tilling the internet competing harder than ever to get available and enabled tips. It is Twitch reportedly pays a higher

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 18 BUSINESS DAY Monday 10 May 2021 MARKETS INTELLIGENCE Supported by Asset Management Corporation Stocks Currencies Commodities Rates + Bonds Economics Funds Week Ahead Watchlist P.E

Nigerian mutual fund industry shed N123bn in four months SHORT TAKES …as money market, equities funds drag AUM to N1.37trn in April $750 million

BALA AUGIE Funds Jan’21 Apr’21 Difference ENDURANCE OKAFOR 182-day was oversubscribed by In a sign of robust global N3.1 billion but the 92-day bill was ampened investors’ undersubscribed by N860 million. investor interest in the appetite for low yield- While the CBN planned to raise continent, Africa Finance ing mutual fund in- N11.39 billion for the shorter 91- Corporation, a multilateral struments has cost the day bill, investors were willing to industry N123.64 bil- subscribe with N10.53 million. The development financial Dlion in asset in the first four months apex bank was eventually able to institution dedicated to of 2021. allot N7.19 billion, N4.2 billion less Total asset managed by Nigeria’s than its initial offer. infrastructure financing in mutual fund industry dropped by for 38.33 percent of the total mutual this year. fund asset, a few points more than As the interest rate is trying to Investors were willing to bid with Africa, successfully issued 8.05 percent to N1.37 trillion in N9.1billion for the N6.0 billion of- April from N1.49 trillion in January, the 35.10 percent share reported for play catch up, inflation is moving a $750 million Eurobond the fixed-income funds, the share upward too, Ademuwagun, said. fered for the 182-day bill. The apex as analyzed from the data by the bank eventually raised the initial 6.0 Securities and Exchange Commis- increased from 29.10 percent in “The real return is still clearly at 2.88 percent, its lowest January. negative because inflation is rising billion it offered to investors. sion (SEC). While the CBN offered to raise yield to date. While the net asset value (NAV) In search for high yields amid faster. If inflation was still at, say, Nigeria’s low-interest-rate environ- the 11 percent that reported before N71.07 billion through the longer of bond and fixed-income funds re- 364-day Treasury bill, investors said ported an increase of 14.59 percent ment, investors increased their the border closure last year, then we appetite for fixed income funds would have been fine,” he explained. they were willing to invest N223.35 $8.4bn and 9.5 percent, respectively, inves- billion. The apex bank later raised tors redirected and reduced their due to its relatively high return on However, the recent uptick in the investment, analysts said. yields on the short term government N116.27 billion, N45.2 billion more Pledges by domestic investments in the money market, than its initial offer. equities and mixed/balanced funds The net asset value reported for instrument is helping to comfort and foreign investors to the fixed income funds appreciated investors against the rate at which Though the recent uptick in T- by 28.23 percent, 2.05 percent and bills rate to more than one year-high projects in Nigeria rose 75 2.35 percent, respectively. by N41.77 billion. From N439.12 bil- the high inflation rate is impacting lion in January to N480.89billion at their returns. is good news for fixed income inves- percent year-on-year to “It was due to the low-interest- tors whose real return appreciated rate environment which was wors- the end of April. “While the rising inflation has March 2021, the Nigerian Even though there has been a broadened negative real return, it’s to -8.42 percent in April from -9.33 ened by the high inflation rate,” percent in March, the expected high Investment Promotion Henry Ogbuaku, a Lagos-based gradual uptick in the yields on the comforting to know that yield on less risky federal government short fixed income instruments is also on inflation rate remains a challenge. Council (NIPC) has said. investment analyst said. Even though a BusinessDay poll Bonds, fixed income, equity, term Treasury bills, the yield on the the rise which will bridge this gap,” Proposed investments instrument is still low and gives a Ayodeji Ebo, Head, Retail Invest- of five market analysts expect the money market, real estate, mixed rates on the less risky government by the investors rose to and ethical funds are all types of negative real return when adjusted ment, Chapel Hill Denham, said. against Nigeria’s rising inflation. After hitting a four year-low of Nigerian treasury bills to reach $8.41 billion in the first Mutual funds. 14 percent this year, the country’s A Mutual fund is a professionally Further analysis of the SEC data near-zero percent in 2020, yields quarter of this year from shows that ethical and real estate on the federal government risk-free inflation rate, which is expected to managed investment scheme, usu- maintain an upward trend, means $4.81 billion reported in ally run by an asset management funds also caught the eyes of inves- treasury bills climbed to more than tors as they both reported a NAV 16 month-high, as compiled from investors are unlikely to get a real the comparable quarter of firm that pools funds from a group positive return this year. of people and invests their money in appreciation in the review period. Nigerian Treasury bills primary mar- 2020, NIPC said in a report Ethical funds added N1.95 billion ket auction results for April 28, 2021. Ebo said he expects inflation to securities such as bonds, short-term rise further in the coming months released on Thursday. debt and stocks. in four months, from N13.06 billion Market analysts linked the in- in January; it was up 14.93 percent to crease in the stop rates to the hike in as the downside risk of fuel subsidy In the case of bond funds, the removal remained. “This follows the gradual fund manager only invests in bonds N14.99 billion. Real estate funds on CBN’s OMO rates some weeks ago. the other hand added N7.17 billion Investors are bidding at higher rates “The question is, as annual infla- return of investors’ while an equity fund invests solely in tion moves above 18 percent, can one equities/stocks of listed companies to its NAV to settle at N50.04 billion and the Debt Management Office confidence globally after in April from N42.32billino reported (DMO) also needs to raise the cut- year (364-day) T-bills go as high 18-19 and a money market fund invests percent?” Ademuwagun asked. the COVID-induced in short-term debt instruments like at the beginning of the year. off rate to fill some of the orders, an “It was the low-interest-rate en- analyst noted. Nigeria’s rising cost of goods and decline,” it said. Treasury Bills. Fixed income funds services, which does not have relief mostly invest in government and vironment that spurred investors to Weeks after the CBN shocked redirect their investments to these the market with a 10.10 percent stop in sight, puts the country’s local corporate bonds. investors investing in government The relative attractiveness of funds. The money market is now rate for the 362-day OMO bill, the $10 billion seen as a savings account, where highest levels seen in almost a year, instrument at a disadvantage when bond funds in the review period compared with their African peers. Lagos state and its stems from the higher yields they you can just put your money,” Yinka fixed-income investors demanded Ademuwagun, Yinka Ademuwagun, higher rates for T-bills. With 9.213 percent T-bill rates in partners have committed offer compared to other types of Kenya, fixed-income investors in the mutual funds. investment management analyst at While investors bid at a rate as to raising $10 billion ValuAlliance Asset Mg, said. high as 10 percent for the 91-day bill, country are enjoying a real return The Net Asset Value of bond of 3.31 percent. March inflation in investment in the funds, a measure of the level of With Nigeria’s 18.17 inflation 12 percent and 15 percent for the rate in March, the highest in four 182-day and 364-day bills, respec- East Africa’s largest economy stood agriculture sector in the investment in the asset, grew to a at 5.9 percent. record-high of N255.07 billion as of years, the real return on the fed- tively, the Central Bank of Nigeria next five years. eral government less risky short (CBN) settled at 2 percent, 3.5 per- With an inflation rate of 10.3 April 2021 from N222.59billion in percent in March, the real return According to the state the first month of this year. term debt instrument depreciated cent and 9.75 percent, respectively. further when compared to March Analysis of the T-bills auction on Ghana’s 16.45 percent interest Although the 10-year bond fund rate on 364-day Treasury bill stood governor, the effect of was below the inflation rate, which 2020 when the inflation rate stood result for April 28, 2021, shows that at 12.26 percent. the CBN raised a total of N129.46 at 6.15, over 10 times more than the COVID-19 pandemic on quickened to a four year high of inflation-adjusted -8.42 percent food security necessitated 18.17 percent in March 2021, it still While inflation-adjusted return billion from the 91-day, 184-day on the shorter 91-day and 182-day and 384-day bills, N40.98 billion reported for a similar bill in Nigeria offers higher yields than any other While interest rates in Nigeria the action. He explained mutual fund and that has caught the bills were -9.77 percent and -8.48 more than the initial N88.48 billion percent, respectively in April 2020, the apex bank offered to raise in this have always been high due to the the government is eye of investors. monetary system in vogue since The money market funds whose the real return on the bills dropped week’s auction. revamping the Agricultural further to -16.17 percent and -14.67 Investors were less interested in 2009, which sought to use FGN return is largely dependent on the bonds/T-bills and OMO bills as a Land Holding Authority performance of the less risky Trea- percent in the comparable month of the shorter 91-day and 182-day bills 2021, thanks to Nigeria record-high as they attracted a lower interest means of attracting US dollars into (ALHA) to drive investment sury bill shed N206.53billion. From the country to stabilise the naira, recording a NAV of N731.63 billion 18.17 inflation rate. rate but were willing to subscribe to into agriculture. The trend was the same for the the longer 364-day bill, which rose but October 23, 2019, OMO policy in January, the mutual instrument by the central bank, which prevents “We will strengthen that accounted for 49.26 percent longer 364-day bill. From a -6.96 by 75bps. percent real return on investment While the 364-day with a much domestic investors from participat- the coconut belt with of the entire mutual fund asset at ing in the auction, drove rates to its the beginning of the year decline to last year, the bill gave investors higher interest rate was oversub- increased private sector -8.42 percent in the same period of scribed by N107.08 billion, the record low levels. N525.09billion in April. It accounted involvement.”

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 19

START-UP DIGEST In association with How Taiwo Oloyede is building a unique community for Nigerian creatives

JOSEPHINE OKOJIE Since its inception, the acad- exchange their skills for value,” the He notes that the low patron- emy has adopted both online and young entrepreneur says. age of artworks, books, souvenirs, offline to equip participants with He says the Nigerian creative and materials of creatives among aiwo Oloyede is a poet, the required resources that will industry is obtuse and largely Nigerians remains the biggest spoken word artist, enable them to birth their ideas biased towards certain interest challenge to the industry. producer, scriptwriter, and build their brands. groups of easy stardom based on He calls on the government to and the founder of La- Today the academy has partici- numbers. set up strategic endowment funds gos Poetrython Acad- pants from Ghana, South Africa, “It lacks structure and direc- for people with special talents and Temy, an oratory development Canada, United Kingdom, and tion and plan. The government should create a department for training institute. Norway among others. needs to be intentional about the documenting creative inputs and Taiwo was inspired to build a “The academy has grown be- creative industry and make avail- outputs as well as a serial identi- community for Nigerian creatives yond the time of inception; we able grants which can be accessed fication number for tracking the through his Poetrython Academy have a swelling number of partici- by anyone based on reasonable economic pull of such input. out of a personal desire to promote pants from Ghana, South Africa, criteria without connections or a Similarly, he says more art cen- arts in its most agile form. Canada, United Kingdom, and group of vultures just furnishing tres should be opened across vari- “I was inspired by my desire to Norway to mention but a few,” their selfish ambition with what is ous local governments to promote have a community where creatives he says. supposed to be a commonwealth,” the creative industry. and other performing acts can “The participants are tasked to he explains. On his advice to young poets, dialogue, share stories of divergent replicate something of the same He urges the government to he says “stay on the grind. No themes and hold honest conversa- nature in their own countries too, sponsor individuals overseas to excuses. Sweat rules over inspira- tions about the socio-political cum to enable them to own their space get first-hand experience on how tion. Keep honing your craft and economic trends in the society,” and perhaps have an exchange it is being managed. stay diligent at the threshing floor; he says. program when they are fully grown “Every operator in that space someday, you will receive beauty “Also, to promote arts in its and have mustered the capacity to must be seen to be of a social or for ashes – and let hope rise in you most agile form and create an host people from other nations,” Taiwo Oloyede economic value and a harbinger like dust.” ambiance that would foster unity he further says. of eclectic resonance to the cre- “Stay clean, say no to drugs. amongst creatives and a level Speaking on how the Academy He states that the online classes ative space. The creative industry Dream outrageous dreams for playing ground for young creatives was impacted by the outbreak of have been tedious for those in is still a mythical wipe of fanfares they are the seedlings of your where they can bond and take on the COVID-19 pandemic, he says areas with poor network connec- and a circus of riotous simpletons greatness. Row your boat and projects based on available op- it prevented them from running tions. “During the periods of the driven more by superfluities than wait on no handouts. Awake your portunities under the auspices of their onsite Master Class but notes lockdown, we were able to con- legacy and hybrid sustainable volcano. Prosper beyond measure. experienced mentors and other that the school was able to quickly nect participants to writings gigs development plan for the creative Then follow @lagospoetrython established acts,” he adds. switch to online classes. and competitions where they can economy,” he says. across platforms,” he adds. Lagos trains, empowers 31,781 youths, women in agric

JOSEPHINE OKOJIE She notes that if Lagos was to introduction of the Eko Schools’ agricultural value chains in order Lagos land mass. succeed in her goal of attaining food Agric Comic and Agric App. It is to build skills and secure fulfilling Olusanya further says that the he Lagos state govern- security status of 40percent by 2023, believed that this will stir up the work opportunities within the agri- cage fishing system was also an ment says it has trained the need to train more youths who interest of youths and teenagers in culture sector. environmental friendly way of no fewer than 12,574 and would readily take over from the the agriculture sector,” she explains. She stated that the collabora- increasing fish supply in the state, empowered 19,207 youths aging farming population cannot She notes that an additional tion was a strategic approach to increasing foreign exchange which Tand women in key agricultural value be over emphasized. 1,577 residents of the state similarly agribusiness training to arouse the is spent on fish importation as well chains such as fisheries, poultry, “The Sanwo-Olu’s administra- benefited indirectly from various interest of youths and teenagers in as creating employment opportu- rice and horticulture in two years. tion is overtly committed to growing value chain empowerment pro- the agricultural space to enable nities both directly and indirectly. Abisola Olusanya, Commission- the state agricultural sector and en- gramme, while she adds that it has them make a decent living out of it. The commissioner explains er for Agriculture, Lagos who made suring that Lagos is less dependent also helped to increase opportuni- The commissioner notes that in that the 32 metric tons per hour the disclosure at a press briefing on other states for the production ties for wealth creation, jobs and same vein, no fewer than 90 youth capacity integrated Rice Mill commemorating the second year of food,” she says. livelihood sustenance towards the have been trained and empowered presently being constructed by in office of the administration of the As a result of this, she further attainment of goals 1,2, 3, 8 and 14 in the cage fishing culture systems the State Government at Imota in Sanwo-Olu’s administration in the says the state has continued with of the United Nations Sustainable in Badagry. She adds that the cage Ikorodu is the biggest in Nigeria state explains that the training was the empowerment, training and Development Goals. culture system of fish farming and in West Africa and at full informed by the need to encourage capacity development of the youth Olusanya discloses that the state was one of the ways being cham- capacity is capable of producing more youth and women participa- and women especially in selected also partnered with Mastercard pioned by the state government approximately 2.4 million (50kg) tion in agriculture as well as to curb key value chains such as fisheries, and the International Institute of to maximize the benefits of the bags of rice for the over 22 mil- the high rate of unemployment. poultry, rice and horticulture. Tropical Agriculture (IITA) to train abundance of water resources that lion people in Lagos State and for “One of such initiatives is the additional 192 youth in various accounts for about 22 percent of Nigerians as a whole.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 20 BUSINESS DAY Monday 10 May 2021 COMPANIES&MARKETS TF Nigeria expands learning opportunity for Harith launches $200m capital youths through fellowship programme (Cand M)

AMAKA ANAGOR-EWUZIE fight for equity and we are mobilis- ing the country’s most dynamic, raise for infrastructure boost etermined to expand passionate and resilient leaders to educational oppor- join in this fight,” Omikunle said. MODESTUS ANAESORONYE folio company expansion op- PAIDF 2 Top-Up Fund provides of the best portfolio companies tunities for the next Omikunle said the pro- portunities as well as in selected investors with immediate expo- in the PAIDF Portfolios.” generation of leaders, gramme will also bridge the un- key new pipeline deals and stra- sure to established, world-class Harith General Partners is arith General TeachD For Nigeria is out to recruit employment gap by providing tegic infrastructure investment assets that are generating re- one of the largest investors in Partners, one of another set of young Nigerians youths with an opportunity to opportunities. These opportu- turns today and an experienced African Infrastructure, with a the largest inves- into the 5th cohort of its fellowship develop skills and experiences tors in African nities are both pre-determined management team that has long track record of value cre- programme. that will be use during the fellow- Infrastructure, and existing. been together for more than a ation across the continent in the The candidates for the Young ship programme and beyond. has announced a $200 million Since 2007, PAIDF 1 has decade, making investments five core infrastructure sectors H Professionals Fellowship pro- Olubankole Wellington, capital raise in a follow-up fund recorded a 36 percent increase in some of the most difficult of energy, transport, telecom- to its Pan African Infrastructure in the USD amount invested. environments on the continent. munications, health and water. gramme will undergo a rigorous popularly known as Banky W, Development Fund (PAIDF) 2, The fund had a Portfolio Valu- “Harith is therefore uniquely Led by CEO Sipho selection process and training to Ambassador of Teach For Nige- that is open to existing and new ation of $742,9 million at 31 positioned to capitalise upon the Makhubela, Harith’s experi- equip them to teach in over 150 ria, described himself as a prod- investors. December 2020. PAIDF 2 has critical infrastructure require- enced fund management team under-resourced primary schools uct of hard work of his parents The PAIDF 2 Infrastructure recorded an 84 percent increase ments presented by the African has been working together for in low-income communities. and concerned teacher, who Top Up Fund is a shorter term in the USD amount invested Continental Free Trade Area more than a decade. Harith The fellowship is open to out- believed in him and pushed him vehicle (5-to-6 years) that is and had a portfolio valuation (AfCFTA). The PAIDF 2 Top-Up has combined Assets Under standing young professionals in- to explore his talents. being established to take ad- of US$471,8 million at 31 De- fund will further invest in up to Management (AUM) in excess cluding non-teachers and existing “We need to understand vantage of very near-term ex- cember 2020. eight core strategic transactions of $1.2 billion from its man- teachers interested in being part of that when it comes to fixing the pansion opportunities in some SiphoMakhubela, CEO that will strengthen capacity to agement of two private equity the movement to end educational problems in Nigeria, no one of the best performing PAIDF 2 HarithGeneral Partners leverage large-scale future proj- infrastructure funds, the Pan inequity in Nigeria. can do it all. We need to do it portfolio companies and realise said:“Rather than just investing ects and allow Harith to scale African Infrastructure Devel- Folawe Omikunle, chief ex- together. We need to exercise a mature pipeline of high-quality in potential future projects, our up its existing position in some opment Fund(PAIDF) 1 and 2. ecutive officer, Teach For Nigeria collective efforts to rebuild our infrastructure opportunities for said at the virtual launch in Lagos own parts of the world, rebuild- investors. that Covid-19 pandemic showed ing Nigeria- one child, one Harith’s PAIDF 1 & PAIDF the important role played by every community, and one mind at a 2 portfolio companies include individual and stakeholder. time,” he said. Aldwych Holdings Limited, “We saw how the power of Continuing, he said: “Educa- one of the largest Independent collective efforts played out in the tion plays a major role in deter- Power Provider’s on the con- educational sectors as parents, mining the future outcome of any tinent; leading South African private sector organisations and individual as it positions them to telecommunications infrastruc- government agreed to ensure con- access opportunities to make a ture group CIVH; MainOne, an tinued learning. We recognise that living and improve their personal undersea cable company and everyone’s voice is required in the economies and the world at large.” leading provider of innovative telecom services and network solutions for businesses in West; GText Homes unveils plans to aid job creation Lanseria International Airport, …set to empower 100,000 brokers South Africa’s only privately L-R: Oluwatoyin Asaju, director, spectrum administration, Nigerian Communications Commission owned international airport; the (NCC); Hadi Muhammad, executive director, finance and accounts, Nigerian Communications JOSEPHINE OKOJIE we empowered another 12,000 busiest border post in Southern Satellite Limited (NIGCOMSAT); Adeleke Adewolu, executive commissioner, stakeholder man- people, 10,000 online and 2,000 Africa, Beitbridge Border Post, agement (NCC); Umar Garba Danbatta, executive vice chairman/CEO, NCC; Uche Onwude, text Homes, a leading physically, so we are happy at among others. member, NCC board of commissioners; Abimbola Alale, MD/CEO, NIGCOMSAT; Abdu Bambale, brokers’ company in the success, we are happy at The capital raised will be executive director, technical, NIGCOMSAT, and Ubale Maska, executive commissioner, technical Africa has unveiled the turnout and if not for the invested in existing PAIDF port- services, NCC, during the signing of Memorandum of Understanding (MoU) between NCC and its plans to empower COVID-19 pandemic, probably NIGCOMSAT for the use of C-Band Spectrum for 5G Services in Nigeria in Abuja. aboutG 100,000 potential brokers we would have had more than to create jobs in Africa’s most 10,000 people here,” he said. populous country. Akintayo explained that the Navigate Group launches immigration consulting firm in Nigeria Stephen Akintayo, manag- motive of the conference is to and Navigate Entrepreneurship can help our clients put together migrate to Canada under various ing director and chief executive, empower youths and also tackle IFEOMA OKEKE with immigration however being their application so that they get a immigration pathways. In her Gtext Homes said the aim of the issues limiting growth in the real the company’s first leg out in the successful result in their applica- words, “we do this so that people Global Property Brokers Confer- estate sector as well as drive n immigration con- country. tions,” she said. wouldn’t have to invest if they do ence is to tackle issues of security more investors into the industry. sulting firm with over Speaking on the real estate The president, Davids added not qualify.” by ensuring job creation, thereby “The opportunity is that we 30 years of experience, industry of the brand, Davids that the panel with their years of She further stated that at Navi- hosting over 10,000 participants can expand the sector, we have Navigate Group has explained that the industry as experience in the global immigra- gate to Canada, once clients’ ap- all over the world virtually and the population, people equal launchedA an immigration firm physically at Landmark event money. Nigeria has no business handled by the firm encompasses tion field, help clients with Cana- plications are approved, they in Nigeria called ‘Navigate to all aspects such as real estate dian citizenship, express entry, are given the option of receiv- centre, Lagos Nigeria recently. with poverty, the labour is there, Canada.’ development, international real the Provincial Nominee Program ing further integration services “If you want to end insecurity the market is there because we The brand which offers clients estate in Canada which guar- (PNP), religious immigration, such as where to live in Canada, issue you must empower the have the population and you can with the opportunity to grow their antees investment opportunity work permits, family sponsorship, through the Navigate Real Estate, youths. You don’t give them tap into Nigerians in the diaspora businesses in one of the most between the Nigerian market and and study permits. a subsidiary of the Navigate Group fish, you show them how to fish, but somebody has to do the link, enterprising economies and the the Canadian market. He also said The panel in his words, “are in order to help them get settled in show them how they can start that’s where brokers come in.” world’s second largest country, that the firm is also well detailed also partners with Toronto Real the country. a business without capital and “The banks and the govern- Canada, was founded on the need in indigenous technological ma- Estate Board and Ontario Real With security being a major gradually, and then what broker- ment has a lot to do, and they to help many elite Nigerians fulfill chines production. Estate Association to help clients factor in a foreign country, she age does if you can partner with should do it, I don’t know why their immigration goals within the The Vice President, Navigate get settled in Canada.” mentioned that the company is a credible real estate company, they are not doing it, I have been shortest possible time. Group, Rebecca Bible Davids, Rebecca Bible Davids, further particular about the safety of their anything you sell you get the frustrated about how people keep Navigate to Canada which mentioned that Navigate to Can- pointed out that the company clients and therefore, establishes a commission and that’s what we talking about affordable housing sees to the acquisition of clients’ ada was set up to provide a seam- works to create a personalised good relationship with clients so are doing,” Akintayo said. and people keep talking and they permanent residence; holds the less immigration experience. She immigration approach to fulfill as to guide them as much as pos- “We are committed to think it is the job of the developer, promise of authenticity, trust, and also stated that as an Immigration each clients need. sible, providing them with every 100,000 and through the event, it is not the job of the developer. reliability in handling current and Consulting firm, Navigate to Can- “We look at you and we per- information details and helping future clients’ immigration ap- ada has a distinguished panel of sonalise what particularly suits them navigate their way through plication process to enable them immigration consultants who are your profile and we are able to their stay in Canada. to move to an environment that is registered with the Immigration help you to present that in an Speaking on the importance of safe to provide a better future for Consultants of Canada Regulatory acceptable way to the Canadian paying attention to the intricacies them and their loved ones. Council (ICCRC). immigration centre,” she said. of Canadian Immigration applica- Speaking during the launch According to her, the panel With regards to affordability, tions, President, Navigate Group, in Lagos, the President, Navigate is made up of experts who are she said that compared to other Davids advise Nigerians when Group, Bible Davids said that the schooled in immigration laws, and competitors, the company offers planning to migrate to Canada brand, ‘Navigate to Canada,’ is a with a cumulative experience of a more affordable fee. In a bid to to avoid the ‘do-it-yourself’ ap- huge brand that covers three other 30 years in handling immigration enable applicants save cost, she proach to immigration or the use industries other than immigra- matters. explained that the company gives of quack agents that is prevalent in tion that are subsidiaries of the “These people are equipped interested applicants a free assess- the country in order to avoid mis- Navigate Group such as Navigate with wealth of knowledge and in- ment form to fill which indicates takes in the application process Real Estate; Navigate Technology; formation about immigration that if they are indeed eligible to im- and get rejected when they apply. www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 21 COMPANIES&MARKETS LASG, Del -York launch Creative Lagos to equip 1,000 talented Nigerians AMAKA ANAGOR-EWUZIE the creative industry and young the high expectations the state people as a strategic weapon,” had reposed in them by spon- he Lagos State Gov- the Governor said. soring them to the Del York ernment has in part- While highlighting his vi- Creative Academy. nership with Del -York sion to make Lagos the creative These beneficiaries are from Creative Academy, industry capital of Africa by across the 20 Local Government launchedT the Creative Lagos 2025, the governor charged Areas (LGASs), and the 57 Local Initiative aimed at equipping participants to take cognizance Council Development Areas about 1,000 talented Nigerians of their role and importance in (LCDAs) of the state. with the needed creative skills. the evolving Lagos story. Linus Idahosa, President Speaking at the recent He further pledged his gov- of Del York Creative Academy, launch, which held both virtu- ernment’s continued support for said that the Governor’s vi- ally and physically in Victoria the continuity of the programme sion to develop young people Island, Governor Babajide San- and his commitment to taking through the creative industry wo-Olu vowed to make Lagos a hands-on approach in the will reap bountifully in the not- the creative industry capital for programme by intermittently too-distant future. Africa by 2025. interacting with the participants He further commended the Sanwo-Olu described the to assess their progress. Lagos State Government for its Creative Lagos project as one Uzamat Akinbile Yussuf, unflinching commitment to that he is passionate about, as commissioner for Tourism and training even more young tal- it involves certain pillars of the Culture, commended the Gov- ents in successive programmes, ‘Lagos THEMES’ development ernor for his overwhelming especially those who could not agenda that includes educa- support to the Lagos State Cre- secure admission into the first tion, technology, tourism, and ative Industry Initiative (LACI), cohort of Creative Lagos. entertainment. Creative Lagos, and her ministry. Creative Lagos is a special “We believe this can improve Meanwhile, the commis- creative industry capacity build- the fortunes of the state at the in- sioner spurred the beneficiaries ing programme sponsored by dividual and macro levels using of the programme, explaining the state government to equip Recyclan partners Empower to supply traceable, blockchain secured feedstock of PET ecyclan, the market for European buyers while energy, reduce air and water leader in sustainable creating jobs for people that pollution, reduce greenhouse recycled PET supply need it the most. gases, and conserve natural from Africa, has an- Harold Okonoboh, CEO, resources. Rnounced a partnership deal Recyclan Africa, said its recov- Recyclan is operational in with Empower to set new stan- ery and recycling projection for 14 African countries and in dard in transparent and trace- the year 2021 is 40,000 tons, as the UK. With this partnership, able supply of certified post- it aim to scale to 120,000 tons Recyclan has added state-of- consumer and post-industrial in FY 2022. the-art transparency and trace- PET plastic from Africa. “This ties to our strive to ability in its supply chain al- Empower, a blockchain-en- “plastic responsibly”. We are lowing for plastic that not only abled platform generates value excited to bring transparency cleans up the environment and from plastic waste by enabling and data tracing as a core value reduces carbon emissions, but collectors, recyclers, brands proposition to our customers also has a direct social impact. and consumers to make real and clients, in partnership with The Empower platform impact on the environment. Empower,” said Okonoboh. ensures immutable data points “Our ultimate aim is to cre- Founded in 2018, Recyclan and transparency as well as ate a disruptive and circular is a social enterprise that re- direct and measurable social global plastic waste ecosystem processes PET plastic products impact. Empower tracks ma- that enables a cost-efficient that have been discarded as terials from the point/place of and reliable sourcing of re- waste and turns them into the collection to conversion to new cycled plastics,” said Wilhelm highest-grade recycled PET products, giving plastic waste a Myrer, founder and CEO of product that is reused in the higher value and turning it into Empower. food and beverage industry. new packaging, while making According to Myrer, work- This is done by the process the unique journey of the prod- ing with Recyclan will ensure of hot washing, sanitising, and uct available for its customers transparency in supply chains extrusion; ensuring it conserve with full transparency.

L-R: Rebecca Bible Davids, vice president, Navigate Group; Bible Davids, president, Navi- gate Group; Vanessa Nankissoor, human resource head, Navigate Group, and Amarachukwu Chimuanya, media coordinator, Navigate Group; at the Official Launch of Navigate to Canada

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 22 BUSINESS DAY Monday 10 May 2021 INTERVIEW ‘We invested more in Nigeria in 2020 than any year since 2013’ JEAN GUYONNET-DUPERAT, country director for PROPARCO in Nigeria, in this interview with CALEB OJEWALE, speaks about the French Development Finance Institution’s investments since 2013, how it has managed to record zero default on loans, the unprecedented increase in investments last year, and the desire to invest in more projects across the country. Excerpts:

an we get an insight funding for the SMEs and then projects in Nigeria, especially in into your project the bank would attest that these the areas of transportation and in Nigeria and how 50 million dollars have been used it would be fantastic if we could much funding has for the SMEs and this is the phi- achieve something there. been committed losophy of Choose Africa. sinceC it took off? We cannot do everything on What do you think small busi- Proparco has been actively pre- our own and we don’t want to, we nesses need to do for them to be sent in Nigeria since 2013. Since want to do intermediate financing able to attract more investments it took off, most of the busi- because we want to play with the like yours? nesses that we finance have local players. When we look at projects es- been through the local financial pecially at big projects like infra- institutions. Can you give an estimate of how structures, sometimes there is a If we calculate how much has much has gone directly to banks lack of structuring. We need struc- come to Nigeria since 2013, it is out of the 800 million disbursed tured projects, structured teams roughly 800 million euro, which so far? and documentation. A project is around 80 to 90 million euro It is about 75%. We have done has to be structured on the legal a year on the average. Looking more of intermediate financing. aspect and not only on the finan- specifically at Choose Africa We work with almost all the major cial aspects. So we need to know initiative, which started in 2018, banks in Nigeria, including UBA, who’s doing what, who’s taking then about 100 million euro has Access Bank, FCMB, GTB, Zenith, responsibility for what. Structure so far been invested in Nigeria. Fidelity, Stanbic. is key for us.

Are there certain sectors that It appears you give some sort of As a business leader if that’s an can be said to be of priority to incentive for microfinance in- accurate description, can you you? stitutions to lend to businesses. share what lessons you took One of the key sectors we are Can you give some context into away from 2020 being the pan- focusing on is the health sector. exactly how that happens? demic year? The reason for that is not only With microfinance institutions, 2020 has demonstrated the re- the COVID. Sure, the COVID has we do more or less the same as silience of the people, definitely. put emphasis on the health sec- what we do with banks. We grant And it is very interesting to note tor, but even before COVID it has them credit lines that they would that by the end of March, we been a top priority sector for us. use for their own clients. The had a pipeline of operations that Even before COVID, in Nigeria, credit lines that we grant to them had not been done. However, by we have always tried to finance might be at a better interest rate the end of 2020, we made other the health care sector and it is not than they would get elsewhere. Jean Guyonnet-Duperat transactions that we thought we easy, but I am confident that we They would then use this money wouldn’t make. would manage to do at least one for the benefits of their own The due diligence that we perform isting players, which are the Ni- So it means in the end, 2020 major operation soon. clients. was a very successful year for us. Second would be renewable are really important because we gerian commercial banks is key and this is what we have done We invested more than ever since energy, because we know the pow- want to check many aspects, not What kind of guarantee system from the very beginning. You we opened the office in 2013. So er challenge in Nigeria. We want only the financial aspects, but do you put in place for those know we are very different from it shows that there is really resil- to address that. There are other also the social aspects, the gov- banks that are lending to the them, they have a network, they ience, Nigerians especially are important sectors for us, such as ernance aspects, the Eco aspects MFIs? of our targets and of our clients. know the country, and they are resilient. Agribusiness and education. What I forgot to mention is that I think that 2020 has taught us Before entering into business everywhere. They can reach out we can provide credit lines but to almost every Nigeria, and these how to be resilient and to keep our Can you share some of the relationship with someone, we also guarantees. We can provide banks are our clients, and also our commitment even though things impact made through these would really check if the company a grantee line to a bank and the meets our requirements and if partners. With our funding and are not happening as we would investments? bank then can use this guarantee have expected. I think a good example of an the strategy of the company is finances, we want to reach out to line to finance other businesses compatible with our strategy. And people, to small entrepreneurs, to impact that we have made is the such as MFI. The mechanism is How did you come about invest- story of Rensource, one of the I think this explains why we have people from the north, from the that once we provide a guaranty the low default rate. south from all over the country, ing more in 2020 than previous beneficiary companies. They line through a bank, like a five years? develop mini-grids especially in Sometimes people say to us and we cannot reach out to them million dollars guarantee line, that it takes a bit of time to get on our own. We’ve committed about 180 mil- rural areas, and it is a very good the bank would use that facility to lion euros of financing last year example of what we want to funding, not only from Proparco This is the reason why a big cover a certain portfolio of its bal- but also generally from all the amount of our investments goes compared to an average of 80 to achieve, which is contributing to ance sheet. And every time there 90 every year since 2013. finance projects that would have DFIs. While it is true that most through the local commercial Banks, is a default it would be covered direct impact on the population, of the time, the development fi- so that the banks can use these fund- by the guaranty. So in the end we nancial institutions take time to ing to reach out to their clients, which Any other thoughts you’d like even remote populations. would take part of the risk and part to share. assess their clients, in the end, I we otherwise don’t know personally, of the default. think the result is there. I mean, but whom they know. We’ve been around Nigeria for I understand the funding from more than eight years, this is defi- Proparco is given in loan form, we experienced a low default What other success stories are rate because we know our clients So you provide funding to the nitely a place that we very much what has been the default rate you anticipating in the future like, and Proparco wants to do Actually, we have not experienced very well. banks, and the banks lend to based on all the interventions their customers? more in Nigeria. We are confident any default so far. you have done? that we can bring more to the de- What role do the traditional Exactly. And we strategize with It is my hope that we would be Banks and financial institutions these Banks to tell them that the velopment of the nation and our Did you have to make a de- able to finance within the months goal is to do more than we already liberate plan to ensure that play in your interventions? type of customers that we want to come, a major project in the Local banks are the key players of to reach are for instance SMEs, have. We can always do more and there was no default or it just healthcare sector. Another thing it is just a matter of finding the happened on its own? the real economy. We are just pro- and then the bank tells us, ‘okay that I would like to achieve is to viding additional services that the I have a certain portfolio of SMEs, good people, the good projects. We put a lot of emphasis on the finance major infrastructure based If the projects are well structured, due diligence parts of our work. local players are not offering now. so give me or lend me 50 million projects. There are many oppor- For us, working with the ex- dollars for that’. So we provide the we are still willing to take risks and tunities for major infrastructure make more commitments. www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 23 COMMENTARY GBB and Nigeria’s digital transformation

BASHIR IBRAHIM HASSAN to ensure stakeholders, customers more funding for Galaxy Backbone and young Nigerians looking at to meet with its operations and growing their digital skills are well expansion of its network so that it combination of factors equipped with technical & digital can favourably as an enabler within played out in the last transformation tools that will help the public and private sector space. two years to enhance them contribute valuably to their The whole idea of a digitally the success of Nigeria’s organizations and by extension transforming a nation goes way journey in digital trans- deepen the digital implementation beyond the infrastructure and ap- Aformation. These factors include development of the nation. Courses plication. What we have seen in natural occurrences and the vision from, Cyber & Information Security, Galaxy Backbone in the last couple and industry of a number of people. Mobile Applications Development, of months has been a direct and While the COVID-19 pandemic Network Connectivity & Infrastruc- intentional attempt at building the has traumatized the world’s popu- ture to Emerging Technologies, skills of people to ensure this digital lation and ravaged economics at Business Process Management, infrastructure is managed properly, all levels, it has had its silver lin- Information Technology Systems & enhanced and consistently delivers ing in the ways it has challenged Networks, IT Architecture Manage- on its promise which hinges more human intellect, buttressing the ment & Governance and a lot more on people. truism in the adage that “necessity have been put together by Galaxy Now, with the ongoing deploy- is the mother of invention”. Well, Backbone and its team of Local & In- ment of Fibre Optics across the COVID-19 wasn’t the trigger of ternational Partners to ensure those nation and the building of more Zoom, the video/audio conferenc- trained by Galaxy Backbone receive Datacenters across the six geopoliti- ing technology that has enlisted the very best and are certified in cal zones of the country to expand about 20 billion users since it was their identified areas of specialty. its provision of cloud services under developed by Eric Yuan and came One of the most profound values the National Information Commu- to blossom in 2020. GBB brings to these trainings as the nications Technology Infrastructure But Nigeria has been one coun- digital Infrastructure & shared ser- Backbone (NICTIB) Project, GBB is try where its success story has been vice provider to public and private deepening broadband penetration most eloquent, thanks to the vision Muhammad Bello Abubakar, MD/CEO of Nigeria’s Galaxy Backbone (GBB) organization is its hands on experi- and creating more opportunities to of Muhammad Bello Abubakar, the ence in these identified courses. So, Small and Medium size businesses Chief Executive of Nigeria’s Galaxy real life scenarios will be shared dur- to take advantage of its platform in securing and protecting its data. properly, enhanced and consistently Backbone (GBB). When the Nige- ing these trainings so that attendees the provision of its services to their Prof. Abubakar has an even more delivers on its promise which hinges rian system in all its ramifications are not just equipped theoretically, customers. As part of the expansion ambitious vision of taking the GBB more on people. – economic, political and social – but get to have firsthand experience of its services, Galaxy Backbone is to a higher level; the level where the The Research, Digital Innovation was on the verge of total collapse as from Technical Experts who have currently providing Network Con- GBB can be the primary enabler & Skills Development Department a result of the lockdown compelled implemented those services locally nectivity, Colocation and Hosting to all ICT providers in Nigeria and is an outstanding development by the pandemic, Abubakar came to and internationally. services in the South South & South Africa, especially West Africa, in the brought into Galaxy Backbone by the nation’s recue by deploying his GBB is looking to partner with Eastern Regions where GBB has long term. the current Managing Director & skills and those of his team at GBB organizations and other training its Fibre cables. GBB currently has The direction of where GBB is Chief Executive, Professor Muham- to virtually get back to sessions of platforms to ensure Nigerians get fibre deployment across 17 cities headed under Prof. can be dis- mad Bello Abubakar. It is a visionary the Federal Executive Council (FEC) the best of learning during these within 13 states in the country from cerned from the transformation that attempt at ensuring that GBB attains meetings to take crucial decisions. training activities. The team at Abuja all the way to Lagos. With the took root since he assumed office its vision; ‘To be the leading enabler This is more remarkable consid- GBB dedicated to this includes deployment of these services, orga- through re-branding the agency. of digital inclusion in Africa’. Profes- ering that the man only assumed of- Experienced Network Engineers, nizations are trained on the proper The Gombe-born and alumnus of sor Abubakar identified that a deep- fice in January 2020 as the Managing Project Management Experts, IT use of the infrastructure to ensure Abubakar Tafawa Balewa University, er focus must be given to Research Director/Chief Executive Officer of Consultants & Technical Experts maximum output. The 2nd phase Bauchi, achieved this by establish- and Innovation if GBB can attain this Galaxy Backbone, Nigeria’s digital who have implemented high end of this fibre deployment will focus ing new departments that focused desired height. The result of creating infrastructure and shared services projects and consulted at differ- on the northern and South Western more sharply on implementing the this department is gradually yielding provider, an agency of the Federal ent levels. GBB has a world class part of the country. mandate of the agency. measurable results as Galaxy Back- Ministry of Communications and Network Operations Centre, the Digitalization of the economy Three such departments stand bone recently published its first ever Digital Economy. The professor of only Uptime Certified Tier III Data has brought tremendous changes in out. First is the Research, Digital Training Brochure for the year in the Petroleum Geosciences with over Centre, in the Federal Capital Ter- the way we work, conduct business Innovation and Skills Department history of the organization. two decades of working experience ritory and for business continuity and socialize. From all indications, introduced to fast-track the research Training and Skills development spanning academia, oil and gas ex- purposes, a Disaster Recovery Data these changes are bound to posi- innovation and also skill aspects of both contribute towards Capacity ploration research, development and Centre situated in Enugu. This entire tively impact the nation’s economy the digital economy policy. This is development that is essential for innovation institutions is a veritable Infrastructure is open to private and for a very long time. in line with the 8 pillars of digital digital transformation in any na- strategic thinker with strong leader- public corporations. Significant credit for leading the economy policy document. The sec- tion and in the context of Nigeria, ship and management skills. He has At the start of the year, Galaxy process goes to Muhammad Bello ond pillar of that policy addresses strengthens Pillar two of the Na- an impressive exposure to global best Backbone held its Annual Manage- Abubakar, Chief Executive of GBB; digital literacy and skills issues. tional Digital Economy Policy & practice in the field of energy. ment Retreat in Gombe State and for in the short period under which Second one is the Enterprise Busi- Strategy for A Digital Nigeria being He has been working assidu- had the Honourable Minister of he has been saddled with running ness Group, which focuses mainly championed by the Honorable Min- ously to implement the two policy Communications & Digital Econo- the GBB, Abubakar has become a on the private sector to make sure ister of the Federal Ministry of Com- frameworks guiding the mandate my, challenge the leadership of GBB household name as one of the best that they are provided the necessary munications & Digital Economy, Dr. of his agency — the National Digital to be innovative, adopt long-term performing CEOs of parastatals in platform that will make their turn- Isa Ali Ibrahim Pantami. This pillar Economy Policy and Strategy (2020- thinking and have a clear focus on Nigeria. Also worthy of honourable over continue to strive better and of speaks to the need to grow Digital 2030) and Nigeria National Broad- being customer centric in its ap- mention is the Honourable Minister course generate handsome revenue Literacy and Skills amongst its citi- band Plan (2020-2025) launched proach to business going forward. of the Federal Ministry of Commu- for the Federal Government. Third zens with the clear conviction that in in November 2019 and March 2020 “I would like to encourage you to nications & Digital Economy, Dr. one is National Policy, Strategic and this journey of developing a digital respectively for the Federal Ministry ensure that the customer is placed Isa Ali Ibrahim Pantami, himself Mandate Project Unit, which specifi- nation, people are the greatest asset of Communications and Digital at the core of your business. If the the former Director-General of the cally looks at the policies and how to so it’s important to develop a large Economy by Mr. President. The twin customer is satisfied, you will win National Information Technology translate them into what GBB can pool of digitally literate and skilled policies were coupled to accelerate more business”; Dr. Pantami said. Development Agency (NITDA), to offer by way of services. citizens. growth and modernization of the Galaxy Backbone has continued whom the GBB CEO remains copi- The journey towards digitally In the same vain, the creation of Nigerian economy. to play a pivotal role in the evolu- ously obliged as a mentor. transforming a nation goes way this first ever GBB Training Calen- The two policies provided the tion of Nigeria’s Digital Economy Indeed, although a public sector beyond the Infrastructure and ap- dar addresses; Improved capabil- framework for digital-led growth and would need the support of outfit with enormous social respon- plication. What we have seen in ity & capacity which is one of the strategy for the Nigerian economy. stakeholders from different levels sibilities, GBB has been positioned Galaxy Backbone in the last couple six Pillars of Galaxy Backbone’s GBB is currently preoccupied with of government. This was intensified to generate revenue to the Federal of months has been a direct and five year(2021 -2025) growth plan operating an IT-based network that when members of the Joint ICT Government. That is one vision of intentional attempt at building designed under the leadership of provides network connectivity to Committees from the Senate and GBB that Abubakar makes no se- the skills of people to ensure these Prof. M.B. Abubakar. The designing MDAs of government, saving gov- House of Representatives called for cret of. ernment cost of maintenance and Digital Infrastructure is managed of this training document is meant

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 24 BUSINESS DAY Monday 10 May 2021 Live @ The Exchanges Top Gainers/Losers as at Friday 07 May 2021 Market Statistics as at Global market indicators Friday 07 May 2021 GAINERS LOSERS FTSE 100 Index Nikkei 225 7,129.71GBP 29,357.82JPY Company Opening Closing Change Company Opening Closing Change ASI (Points) 39,198.75 +53.54+0.76% +26.45+0.09%

LINKASSURE 0.63 0.69 0.06 NEM 2 1.81 -0.19 DEALS (Numbers) 3,947.00 S&P 500 INDEX Deutsche Boerse AG JOHNHOLT 0.54 0.59 0.05 COURTVILLE 0.22 0.2 -0.02 4,227.17USD German Stock Index DAX VOLUME 238,937,530.00 +25.55+0.61% 15,399.65EUR UBN [BLS] 4.95 5.4 0.45 SUNUASSUR 0.59 0.54 -0.05 (Numbers) +202.91+1.34% Generic 1st ‘DM’ Future ROYALEX [MRF] 0.6 0.65 0.05 INITSPLC 0.43 0.4 -0.03 VALUE (N billion) 2.952 34,592.00USD Shanghai Stock Exchange +150.00+0.44% Composite Index CHIPLC 0.36 0.39 0.03 ETERNA 6.24 5.81 -0.43 MARKET CAP 20.431 3,418.87CNY (N Trn) -22.41-0.65% Cardinalstone, Morgan Capital, Meristem, 7 others OMEGA launches its newest timepieces for 2021 enowned for de- Also introduced were account for 44.7% of equities 4 months trade signing revolution- the newly enhanced CON- ary timepieces, the STELLATION SMALL Iheanyi Nwachukwu Morgan Capital Securities Capital Limited (2.160billion could not stop the week’s OMEGA brand is SECONDS pieces, DE onceR again setting the pace VILLE TRÉSOR POWER Limited (4.908billion or or 2.93percent), Greenwich negative close. Equities value 6.65percent), and Meristem Trust Limited (1.992billion or printed lower at N20.431billion with the launch of its new- RESERVE, SEAMASTER n four months to April 30, Stockbrokers Limited 2.70percent), WSTC Securities from week open high of est collection of timepieces AQUA TERRA, SEA- 2021, about 32.9billion (4.120billion or 5.58percent). Limited (1.666 percent or N20.847trillion, representing a for the year. The launch, MASTER DIVER 300M units of equities were In the review four months 2.26percent), while Inter State loss of about N416billion. which was held virtually BLACK BLACK and traded on the Nigerian period to April 30, Stanbic Securities Limited (1.555billion Barely one week into the on the 23rd of March 2021, SPEEDMASTER MOON- Exchange (NGX) Limited IBTC Stockbrokers Limited or 2.11percent). month of May, the record was an opportunity for WATCH VELCRO® STRAPS. byI only ten stockbroking firms. exchanged 4.041billion units The market had picked up three-day negative closes on the brand to showcase the Each new collection fol- This volume of stocks which represent 5.48percent in the last trading week in April the Nigerian Bourse which latest advancement of its lows the spirit of its original exchanged represents of the total volume of stocks following the bullish reaction triggered the 1.61 percent dip timepiece series and de- models with unique fea- signs. 44.68percent of the equities exchanged in the market to the series of first-quarter month-to-date and 2.66percent tures, enhanced outfits and The high point of the upgraded designs tailored exchanged on the Bourse in that period; while Atlass (Q1) earnings reported by listed decline this year implies that the review period, according event was the unveiling to suit its exclusive audi- Portfolios Limited accounted companies. Disappointingly, market participants against of the brand’s new SEA- ence. to Exchange’s Broker for 3.533billion units or in the holiday shortened week some analysts’ expectations Performance Report. MASTER 300 series, of- In his remarks, Raynald 4.79percent. ended May 7, the market’s All have not bought the dip on fered in Bronze Gold as Aeschlimann, President Top on the list is The broker performance Share Index (ASI) decreased attractive counters seen trading Cardinalstone Securities well as stainless steel. The and CEO, OMEGA, ex- report also shows that by 1.61percent from 39,834.42 at discounted valuations as exclusive Bronze Gold was pressed his pleasure pre- Limited which traded GTI Securities Limited points to 39,198.75 points amid rising fixed income (FI) yields 5.966billion units or specifically developed to senting the newest OMEGA traded 3.031billion units three (3) days of losses as only continue to weigh on investor produce a pleasing aes- 8.08percent, followed by timepieces which have or 4.11percent, Lighthouse Friday’s gain (+0.21percent) sentiment. thetic and hue, while also been specially upgraded offering a bronze alloy that and created exclusively for could be worn with direct its customers. contact on the skin due He stated that “Re- to its distinctive composi- cently, time has never felt tion. The watch represents more important. We’ve the very first OMEGA to all learned to cherish and be created in this patent- appreciate the hours we pending alloy. have, and really make each The classic stainless one count. That’s why the Modestus Anaesoronye steel is designed with thin- values of quality, authen- ner bezels crafted from an ticity and craftsmanship oxalic anodized treated really matter. Increas- aluminum for increased ingly, people are embrac- hardness. The bracelet is ing the idea of well-made also in stainless steel and products that not only feel now comes with improved meaningful, but also have fit and finishing. For the a genuine human touch leather strap design, a new and this is exactly what an buckle has been included. OMEGA watch offers.” Lagos Commodities and Futures Exchange set to list first Gold he Lagos Commod- journalists at the Pre-Listing ities and Futures Media Interactive Session in Exchange (LCFE), Lagos today, the Dukia Gold’s the fIrst Commodi- Chairman, Tunde Fagbemi L-R: Iheanyi Anyahara, outgoing acting executive secretary/CEO; Adamu Shuaibu Ahmed, the new executive secretary/CEO, Financial Tties Exchange to be licenced who applauded the Ministry Reporting Council of Nigeria (FRC); Maria Yalwaji Katagum, honourable minister, State, Federal Ministry of Industry Trade and Investment (FMITI); Richard Adeniyi Adebayo, CON, honourable minister FMITI and Nasir Sani Gwazo, mni, NPOM, permanent secretary, FMITI to trade gold in Nigeria by of Mines and Steel Develop- during the inauguration of the new executive secretary/CEO of FRC. the Securities and Exchange ment and SEC for supporting Commission (SEC), is set to trading of gold in Nigeria not- admit Dukia Gold‘s diversi- ed that this remained one of fied financial instruments, the ways to diversify Nigeria’s backed by gold as the under- sources of foreign exchange Shareholders laud Sterling Bank’s improved performance lying assets in a sector worth at this critical period of Nige- over N300 trillion. ria’s economy. hareholders of Ster- directors, remuneration of striction on large gatherings another successful year. As a prelude to the list- “We are proud to be the ling Bank Plc have auditors, and the election of to prevent further spread of She applauded the Board ing very soon, Dukia Gold first Gold Company whose commended the shareholders’ representa- the COVID-19 pandemic. and Management for the explained that the instru- products would be listed board and manage- tives on the statutory audit Commenting on the significant growth in total ments which would be in on the Lagos Futures and mentS of the bank for the committee. bank’s performance, Mat- assets and deposit base, form of Exchange Traded Commodities Exchange. remarkable display of resil- The shareholders gave thew Akinlade, Presi- improved retained earn- Notes (ETN), Commercial The listing shall enable us ience, improved financial the commendation and ap- dent of Nigeria Solidarity ings, increased profitPapers (CP) and other gold- facilitate our infrastructure performance and returns proved recommendations Shareholders Association before tax and reduced backed securities would en- development, expand ca- on investment in 2020 de- at the 59th Annual General (NSSA), commended the operating costs and non- able the company deepen pacity and create fungible spite the adverse impact of Meeting (AGM) of the bank bank for consistently im- performing loans. the commodities market in products. This has potential UDOKA AGWU, Umuahia the Covid-19 pandemic on held by proxy in Lagos last proving on its earnings per Boniface Okezie, Na- Nigeria, increase capacity, to shore up Nigeria’s foreign the global and local eco- Thursday and streamed live share in the last five years. tional Chairman of Pro- generate foreign exchange reserve and create an al- nomic environment. across digital platforms. The In her comments, Bisi gressive Shareholders for the government to di- ternative window for pres- They also approved res- Corporate Affairs Commis- Bakare, National Coordi- Association, also com- versify external reserve and ervation of pension funds. olutions for the declaration sion (CAC) had approved nator of Pragmatic Share- mended the bank for its create massive employment A gold-backed security is a of a dividend of five kobo attendance at the AGM to holders Association, con- achievement in a pandem- across the metal produc- hedge against inflation and per share, the election of be by proxy only due to re- gratulated the bank for ic year. tion value chain. convenient preservation of Addressing the financial capital. www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 25 TECHTALK Innovation Apps Start-up Gadgets Ecommerce IOTs Broadband Infrastructure Bank IT Security Paystack eyes African commerce as it opens South Africa office

FRANK ELEANYA billion visits in 2019. Ten countries ing by the COVID-19 lockdowns. are responsible for 94 percent of Flutterwave, Remita, GTBank, and hen it was acquired all online business in Africa. South OPay had all jumped into the fray six by Stripe in 2020, Africa, Egypt, Nigeria, Algeria, and months earlier with ambitious plans Paystack served a Kenya together account for 78 per- to transform the market. notice on the pay- cent of total marketplace traffic. Fast forward to October and ment market in Af- Paystack already has a semblance Paystack has signed the dotted lines ricaW that it was ready to play in the of a continental player with teams with Stripe boosting its confidence big league on the continent. It just spread across the continent. The that it can take on any competition. did not say how much of the slice it company is currently 100 percent The company now sees beyond Ni- was going for then. remote and a growing team of over geria and West Africa but the entire On Wednesday, the payment 160 friends distributed across 12 continent transacting with the rest gateway provider would finally open countries (including Nigeria, South of the world. its doors to businesses in South Af- Africa, Kenya, Ghana, Côte D’Ivoire, “Over time, we are going to ex- rica, after three months of intently UK, US, Senegal, UAE, France, and pand to more countries across Africa focusing on the market and studying Turkey) and more than 16 nation- to make it easier for trade to happen its strategic importance to Paystack’s alities. within African countries, across ambition for the rest of Africa. Throughout the continent, over African countries, and between The office is just a symbol of a 60,000 organisations of all sizes — Africa and the rest of the world,” grander plan for the online com- from technology startups to corpo- Jogbojogobo said. merce market in Africa. rates and global brands such as MTN, By shifting its focus to the con- SPAR, and UPS — use the company’s tinent’s commerce space, Paystack “South Africa is one of the con- impressionable people with not Jumia shut down offices in about four tinent’s most important markets, software to collect online payments has the opportunity to untangle the enough spending income. The older African countries. securely from anyone, anywhere in mess that is trading between one and our launch here is a significant generation who mostly controlled With the COVID-19 pandemic milestone in our mission to ac- the world. African country and another (intra- the spending power mostly stayed pushing businesses and individuals Since 2020, Paystack has been African). celerate commerce across Africa,” away leaving operators very frus- online, shopping online is no longer a says Paystack CEO, Shola Akinlade. building out its commerce busi- The African Union says that the trated. There was also logistics, the vogue phrase. It is part of survival for ness. The Paystack Commerce was volume of intra-African trade stands “We’re excited to continue build- proliferation of social businesses, many people. The main driver of the ing the financial infrastructure that launched on June 23 as a “toolkit at around 13 percent compared to and poor customer experiences. surge in online commerce is growth that helps African creators bring approximately 60 percent, 40 per- empowers ambitious businesses in In Nigeria, platforms and inves- in mobile connectivity. While Nigeria Africa, helps them scale, and con- ideas to market, beautifully.” cent, and 30 percent intra-regional tors who couldn’t take it anymore accounts for the largest number of Then, the company said the com- trade that has been achieved by Eu- nects them to global markets.” packed their bags and exited the people in Africa with mobile con- E-commerce is enjoying a time merce business was born because rope, North America, and ASEAN re- market. Some notable ones include nectivity, countries like South Africa of the need and urgency for a new spectively. According to the Union, of its life thanks to the COVID-19 OLX, DealDey, Gloo.ng, Effritin.com, have seen over 90 percent broadband pandemic. generation of tools to help African even if allowance is made for Africa’s Buyright Africa, Gingerbox, Buyam. penetration. brands sell online. unrecorded informal cross-border Before the pandemic struck, e- com.ng, and Cribpark. Konga and A January 2021 report by the commerce on the continent had a At the time, Paystack was not trade, the total of intra-African trade Jumia were not spared the chal- International Trade Centre (ITC) the only company that felt it could is not likely to be more than 20 per- series of challenges some of which lenges. While Konga got acquired showed that Africa has 631 online include being dominated by young address the challenges e-commerce cent, which is still lower than that by Zinox after a run of poor revenue, marketplaces, which recorded 2.2 was facing which were left glar- of other major regions of the world. IBM new nanometer chip to extend cell phone battery life, speed up internet FRANK ELEANYA printed circuit boards. while Samsung’s 5nm chips feature means processor designers have footprint of data centers, which Demand for increased chip per- about 127 MTr. more options to infuse core-level account for one percent of global ell phone users would be formance and energy efficiency con- A transistor is a semiconductor innovations to improve capabilities energy use. Data centres that change able to use their cell phone tinues to rise, especially in the era of device used to amplify or switch for leading edge workloads like AI all of their servers to 2 nm-based for four days before need- hybrid cloud, AI, and the Internet of electronic signals and electrical and cloud computing, as well as new processors could potentially reduce ing a recharge once the new Things. IBM’s new 2 nm chip technol- power. Increasing the number of pathways for hardware-enforced that number significantly. CIBM 2 nanometer chip is integrated. ogy helps advance the state-of-the- transistors per chip can make them security and encryption. The invention could also drasti- Unveiled on Thursday, the inno- art in the semiconductor industry, smaller, faster, more reliable, and “The IBM innovation reflected in cally speed up a laptop’s functions, vation is the first chip in the world addressing this growing demand. It more efficient. this new 2 nm chip is essential to the ranging from quicker processing in with 2 nanometer (nm) nanosheet is projected to achieve 45 percent The 2 nm design demonstrates entire semiconductor and IT indus- applications, to assisting in language technology. higher performance, or 75 percent the advanced scaling of semiconduc- try,” said Darío Gil, SVP and Director translation more easily, to faster in- Computer chip, also called a chip, lower energy use, than today’s most tors using IBM’s nanosheet technol- of IBM Research. “It is the product ternet access. It can also contribute is a small piece of semiconducting advanced 7 nm node chips. ogy. Its architecture is an industry of IBM’s approach of taking on hard to faster object detection and reac- material (usually silicon) on which The 2nm chip features about first. Developed less than four years tech challenges and a demonstration tion time in autonomous vehicles an integrated circuit is embedded. 333 million transistors per square after IBM announced its milestone 5 of how breakthroughs can result from like self-driving cars. A typical chip is less than square millimeter (MTr/mm2). For com- nm design, this latest breakthrough sustained investments and a collab- But it’s important to remember inches and can contain millions of parison, TSMC’s most advanced will allow the 2 nm chip to fit up to 50 orative R&D ecosystem approach.” that IBM’s 2nm chip is largely just a electronic components (transistors). chips, built using its 5nm process, billion transistors on a chip the size Apart from quadrupling cell proof of concept and that processors Computers consist of many chips feature about 173 million transistors of a fingernail. phone battery life, the 2 nm chip has built on the 2nm node are still likely placed on electronic boards called per square millimeter (MTr/mm2), More transistors on a chip also the potential of slashing the carbon years away.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 26 BUSINESS DAY Monday 10 May 2021

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 27 Live @ The STOCK Exchanges Prices for Securities Traded as of Friday 07 May 2021

Company Market cap(nm) Price (N) Change Trades Volume Company Market cap(nm) Price (N) Change Trades Volume

PRICES FOR MAIN BOARD SECURITIES (Equities)

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 28 BUSINESS DAY Monday 10 May 2021 REAL SECTOR WATCH Funding, poor value addition, low quality flagged as constraints to Nigeria’s export boom

GBEMI FAMINU finance request are client before exportation,” she said. creditworthiness and insuf- Mabogunje who was repre- ficient collateral,” he said. sented by Abimbola Olas- nadequate funding, Highlighting available hore, treasurer, LCCI noted poor value addition funding programs for export- that beyond the country’s practices and low ers to tap from, Awolowo poor value addition culture, quality of products mentioned the Export De- Nigerian non-oil products have been identified velopment Fund which is a often face high risk of rejec- Ias major obstacles, con- N5 billion fund under the tion in the export market due straining Nigeria’s plan to Nigeria economic sustain- to the inability to meet global have a thriving and diversi- ability plan which will sup- requirement which is taking fied export industry. port and prepare exporters a toll on the performance of This was discussed at for the global market while non-oil exports. an Exporters funding we- facilitating trade activities. She added that without binar hosted by the Lagos He also mentioned the addressing these major chal- Chamber of Commerce and Export Expansion Facility lenges, it will be increasingly Industry (LCCI) themed Program (EEFP), a one year difficult for the economy funding support initiative for program under the economic to leverage the recent ex- exporters by the federal gov- sustainability plan managed change rate depreciation of ernment through the NEPC. by the NEPC and the minis- the naira to enhance global Olusegun Awolowo, chief try of trade and investment. competitiveness and correct executive officer, Nigerian “It is designed to alleviate its external imbalance. Exports Promotion Council the impact of the COVID-19 “We need to target spe- (NEPC) said that providing pandemic on export busi- cific industries in the non- funding for exporters over nesses and accelerate the oil sector, preferably com- of producers. He said part of been working towards di- larly when the products are the years has been very chal- growth of the sector through modities where Nigeria has the organization’s program versifying the export base of processed. lenging especially for small market development, capac- comparative advantage, to boost non-oil export is the economy from crude oil, “Nigeria is blessed with and medium players in the ity building, trade facilitation support players with incen- the Zero oil plan which aims however the efforts have not vast raw materials in the industry, adding that the and cost reduction through tives to help them achieve to diversify the country’s produced desired outcomes non-oil sector which can be average size of trade finance export aggregation,” he said. economies of scale, while export portfolio and such as over 85 percent of its for- leveraged to increase our gap in Africa is estimated to Awolowo said that the ensuring those products are that 20 percent of the GDP is eign exchange earnings still exports and improve our be $81 billion. NEPC tries to support export- competitive in terms of cost attributed to non-oil exports come from crude oil. trade balance, however, the “Participation of banks ers beyond funding through and quality, with targets to attain $30 bil- She added that the non- non-oil export is dominated in trade finance decreased various programs like train- Fiscal and monetary lion by 2025. oil export sector has poten- by raw material and primary by 21 percent, while SME ings and enabling policies, policy authorities need to Toki Mabogunje, presi- tials to generate adequate product, we can generate trade finance applications he revealed that plans are provide a supportive operat- dent, LCCI in her address foreign exchange earn- much more in foreign ex- being rejected by banks have underway to establish an ing environment for non-oil noted that over the years the ings for the economy and change earnings if those raw increased by 20 percent from export trading company that exporters to boost export and Nigerian government and all strengthen the naira against materials are processed into 2013 to 2019, the main rea- will purchase items in large value-adding activities,” She relevant stakeholders have major currencies, particu- value-added commodities son for the declined trade quantity to ease the burden advised. Manufacturing businesses on FrieslandCampina records 23% recovery path as PMI improves revenue increase in 2020

…credit access, stable power remain challenges GBEMI FAMINU its profit before tax decreased na WAMCO remains positive by 20.3 percent moving from about the future of its business GBEMI FAMINU weakened. Beyond the con- rolled out by the Central Bank of riesland Campina N18.8 billion in 2019 to N14.9 in Nigeria, as the brands con- strained profitability, a number Nigeria (CBN) is yet to fully im- WAMCO Nigeria Plc, billion in 2020 as a result of tinue to grow on the back of usinesses in Nigeria’s of challenges also affect the pact businesses after one year. an affiliate of Royal high input costs and the im- strong business fundamentals manufacturing sec- productivity of the manufactur- Despite the existence of Friesland Campina in pact of Naira devaluation,” he and unique route-to-market tor have positioned ing sector. over 250 businesses in Nigeria’s theF Netherlands and one of explained. strategies” He said. for recovery after the According to the report, af- manufacturing sector, a total the largest dairy cooperatives Following the increase in Highlighting the firm’s suc- Bdisruption experienced in the fordable credit is still, a major of N803 billion was disbursed in the world, achieved a rev- revenue, a dividend payout cessful moments during the local and global economy, as challenge for manufacturers to 228 projects across various enue increase of 23 percent of N6.74 per N0.50 share was year under review, the MD the manufacturing Purchasing although the sector was the segments in agro-allied, mining, in 2020 amid disruptions and approved during the meeting. noted the establishment of Managers’ Index (PMI), a gauge second largest recipient of loans steel production, and packag- challenges in the business Ben Langat, Managing Di- the Center for Nigerian Dutch for manufacturing sentiments in the fourth quarter of 2020, ing industries among others, as environment. rector while speaking on the Dairy Development, Nigeria’s improved in April. accounting for 16 percent of the such not all the businesses are This was announced at its company’s performance said first national expertise Center The PMI moved from 51.4 N20.37 trillion loan disbursed by beneficiaries. 48th Annual General Meet- despite the headwinds, 2020 for dairy, committed to boost- points in March to 53 points Deposit Money Banks (DMB) According to the Manufac- ing held recently in Lagos, was shaped by the Company’s ing homegrown dairy expertise in April with improvement Over the years, credit acces- turers Association of Nigeria where Moyo Ajekigbe, Chair- continued focus on sustainable across the value chain. recorded for four out of the sibility and affordability have (MAN), access the N1 trillion man, Board of Directors, business processes, while put- Furthermore was the five sub-indices examined, ac- troubled Nigerian manufactur- COVID-19 stimulus for manu- FrieslandCampina Nigeria ting customer satisfaction and establishment of the Value- cording to data by FBN Quest ers, with data showing that the facturing requires a working said despite the challenging quality at the fore. 4Dairy Consortium, consist- and NOI. interest rate in the sector hovers capital of N2 billion per obliga- operating environment in 2020, “We leveraged our brands ing of a partnership between The growth recorded was between 14.8 percent and 22 tor, with a refinancing facility the Company’s commercial and superior commercial ex- FrieslandCampina, URUS, driven by the slightly improved percent. Presently Nigeria has N15 billion per obligator. and financial performance for pertise to deliver impressive Barenbrug and Agrifirm, com- access to raw materials, the one of the highest lending rates In addition to this, the loans the year showed considerable volumes during the year, our mitted to accelerate self-suffi- gradual easing of the COVID-19 in Sub Saharan Africa with 11.50 have an interest rate of five per- improvement compared to the Board and Management will ciency in Nigeria’s dairy sector. restrictions and an uptick in percent leaving deposit money cent which will revert to nine previous year. continue to take necessary Langat also highlighted demand driven by the Easter banks to lend as high as 25 to percent by February 2021, and This he said was due to a steps to ensure that the growth major activities of the company celebration. 35 percent interest loans while cannot exceed N10 billion. combined effect of organic and momentum is sustained,” he in response to the COVID-19 Despite the increase in de- other countries like Rwanda has MAN said most of the as- inorganic growth following the said. Giving an outlook for outbreak which includes a mand, the report notes that 4.5 percent, South Africa and sociation members who ap- acquisition of Nutricima’s dairy 2021, Langat said “A look at donation of N500 million made Nigeria’s current inflationary Cameroon has 3.5 percent and plied for the loan could not get business. first quarter of 2021 activities to the COVID-19 Relief Fund conditions adversely affected Namibia has 3.75 percent. adding that only 30 percent of “The company’s revenue indicates continued economic and over N100 million worth the profitability of the manu- The report also reveals that the loan was disbursed in one increased by 23percent in headwinds in a volatile and un- of products donated to low facturing sector as consumer’s the impact of the N1 trillion year according to the financial 2020 to N199.5billion from certain business environment, income communities during purchasing power was further COVID-19 intervention fund regulator. N161.8billion in 2019, however However, FrieslandCampi- the lockdown.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 29

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng 30 BUSINESS DAY Monday 10 May 2021 NEWS COMMENTARY Mining sector holds opportunities Thorns have roses KAYODE SOREMEKUN late Zimbabwean leader. In for investors across Nigeria that country, however, the hrough training external realm is also very ISAAC ANYAOGU change and the effect of are aluminum, cobalt, cop- to determine the economic and sheer instinct, hostile as in Caracas. greenhouse gas emissions are per, nickel, lead, manganese, viability of these resources. the Columnist has This cannot but be so he race for criti- fuelling the rise of renewable bauxite, and lithium,” notes This provides the first step been conditioned in the light of what Robert cal minerals that energy sources and electric Habeeb Jaiyeola, associate course of action to unlocking toT search for utopia. He/she Mugabe did to the white will power clean vehicles across the world and director at PwC Nigeria. investment into the sector. To is in the perpetual quest for settler farmers. He seized energy technolo- in turn, the minerals required While there are deposits incentivise investment into a better society. This is more their lands and distributed gies like electric to make some of their most of some of these minerals in- the energy sector in the early so in a social formation like same to the black comrades Tvehicles and wind turbines important parts. cluding iron ore, copper, man- 1900s, the government gave ours, where things are, what and other cadres. The con- is heating up and in Nigeria, “Based on this, there are ganese, graphite, bauxite (the the investors a nationwide they are not supposed to be. sequence has been some where deposits of some of certain metals that will rise in main source of aluminum), exploration licence as well as demand in a bid to deliver a cobalt (a by-product of nickel generous concessions that en- Even then, and in the more form of unremitting hostil- these minerals are, the right policy can give the country carbon-constrained future. and copper ores), there has abled them to turn the focus settled societies, there is still ity from external forces that We term these as the minerals not been extensive research a role for the Columnist. He can be likened to what ob- an edge. Continues on page 31 Concerns about climate of the future, some of which is still to be found pointing tained in Venezuela. Luckily out pitfalls and downsides for us, such external forces in his own society. After all, are largely absent in Nigeria. there is no perfect society. Perhaps the only feature However, this fault-find- which comes close to that ing posture of the Colum- has to do with French pres- nist carries with it, its own ence in countries proximate danger. And the danger is to us. And in view of our that, there is the tenden- status in the region, the pos- cy to see only the thorns. ture of Paris has necessarily Whereas in real life, though alternated between hostility there may be thorns, yet a and amity, depending on closer look will reveal that, the circumstances. But back there are in fact also roses. to Zimbabwe and Nigeria. A cursory look at Nigerian Recently in the course newspapers and their Col- of my monthly health care umnists reveals some stark regimen, (massage and the realities which point to the rest of it) I got talking with a fact that Nigeria is headed masseur from Zimbabwe. for the dustbin. Indeed, I asked her why she was in a recent report contends Nigeria, when she could L-R: Saidu Ahmed Alkali, senator representing Gombe North Constituency; Adeniyi Adebayo, minister of industry, trade and invest- that Nigeria is in the same have plied her trade in any ment; Mansur Ahmed, president, Manufacturers Association of Nigeria (MAN); Muhammad Musa Bello, FCT minister, and Fatima league as countries like Ven- other country apart from Hayatu, director of technical services, Federal Ministry of Finance, at the 50th anniversary ceremony of MAN in Abuja, at the weekend. ezuela and Zimbabwe as far Zimbabwe and Nigeria. Her as governance credentials reply took me aback. Ac- BD CONFERENCE are concerned. cording to her, Zimbabwe As a student of com- is a country where, when parative politics, I know you work, there is no guar- Value creation, customer satisfaction key to business success one or two things about antee that you will lead a these countries. As regards comfortable life. Whereas in GBEMI FAMINU & MERCY AYODELE challenges as opportunities According to Oke Mad- which continues to be a major Caracas for instance, there Nigeria, she was of the view and treat success and failure uewesi, CEO, Zaron Cosmet- challenge for businesses, was was a strong man who in his that, when you work, the he pandemic has as the same. ics, in building a business, en- addressed but this could be quest to forge a strong link- rewards are there. I had to changed how most Okere also explained that trepreneurs need to acquire navigated by being innovative. age between oil and social do a reality check, as regards businesses operate customer intimacy was im- some level of experience in Folusho Ogunwale, justice, virtually brought what I was hearing. For this in Nigeria but ex- portant to ensure business business operations from founder, I-Fitness Centre, Tperts say creating value and survival. structured organisation. said for every Nigerian busi- the country to its knees. was something being said Moreover, big brother up about my country by an building relationships with Customer Intimacy refers “It is also necessary to ness, infrastructure was a there also poured oil into outsider, and it happens to customers will continue to to the art of getting to know acquire formal education major challenge that might the fire. And the situation be positive. It then occurred be factors that drive business the Customer’s business and to expand your knowledge disrupt initial plans, he add- was such that even attempts to me that, the way in which growth. problems better, and being horizon as an entrepreneur. ed that the first shock for were made on the life of the we see ourselves, may not “Value preposition, which able to provide solutions This will provide a platform entrepreneurs is when they Venezuelan strong man. be consistent with the way is the act of solving problems, that alleviate the customer’s for diverse learning and in- have to provide everything The ensuing outcome was outsiders see us. At least, it is something customers can- problems rather than just sell spiration to churn out great for themselves hyperinflation, in which is worth noting that as bad not ignore, when you meet one’s product or service to the ideas, it will also help you “There will always be trou- the Venezuelan currency as we think things are, still people’s needs, they will lis- customer. avoid mistakes,” she said ble starting a business but the began to look like a virtual here was a foreigner who ten,” Chika Ikenga, founder, According to Okere, build- Running a successful fundamentals of running the phenomenon. was of the view that an or- Eunisell, Recare and owner ing customer intimacy can business goes beyond the business successfully is when Luckily for us, we are yet ganic linkage can be drawn of Natures Gentle Touch, said be achieved by increasing benefits and financial gains, you can be consistent, innova- to get to this point. Which between industry and the at BusinessDay 2021 confer- customer touchpoints. This as such passion comes in as a tive and determined. You will is why, for whatever it is good life in Nigeria. ence themed Founders’ Fur- can be through customer driving force most especially also be required to take a lot of worth, the startling revela- Incidentally, very much nace, small beginnings and service, direct mails, emails, when things are not going as proactive action and adapt to tions by the Edo State Gov- the same thing can be said big ending, last week. apps, packaging and mobile planned, she said. a lot of things,” he said. ernor Godwin Obaseki are about another lady from Ikenga also pointed out messaging. She mentioned the im- He advised entrepreneurs worthy of commendation. Namibia who had noth- that a business must also He further explained that portance of technology and to break new grounds and Unknown to him, perhaps, ing but good things to say have systems and a strong service excellence was a key innovation in building a suc- explore untapped markets as the technocrat in him has about Nigeria and Nigeri- brand image to maintain competitive strategy for busi- cessful business as she noted long as it addressed a need. blown an early warning ans. According to her, her long-term growth. ness success. that the system as well as con- Giving key elements for a whistle which would stem high school education was Building systems help “Businesses must learn to sumer’s preference changes successful business, he said, Nigeria’s slide into the hy- in Warri, Nigeria, where in businesses achieve their deliver their services better regularly. “for a business that wants perinflation which contin- her own testimony, she had goals. A business system is than any other person can do “Innovation is key to busi- to scale you need the right ues to hallmark Caracas a wonderful time by way of a combination of policies, it,” he said. ness growth as consumer’s people in the right places and Harare. As regards the generosity from the Nige- personnel, equipment and This ensures delivering preference changes regu- and these include investors, latter, it is worth stressing rian government on one computer facilities to co- consistent and quality ser- larly, you have to be informed customers, staff, suppliers, here that the conditions hand, and Nigerians on the ordinate the activities of a vice, quick response times, about new trends and dis- partners, etc. in that Southern African other. Such indeed was her business organisation. and open channels of com- cover diverse ways to address “Also, you have to ensure country are not exactly the love for the country that this Austin Okere, founder of munication, which results in the needs in your market,” that you are working with the same here. Perhaps the has been rendered in more CWG Plc, during the confer- better customer experiences she said. right systems and processes most obvious is that we do ence also mentioned that and potential increases in During the webinar, the in place to avoid placing pres- not have strong men like the Continues on page 31 businesses must learn to see sales. absence of infrastructure, sure on your business.” www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY 31 NEWS See what Nigerian banks charge... Continued from page 1 5 percent of the total in Q4; it grew by 12.5 percent q/q and the goods. Other consider- 36 percent y/y. ations include the viability of “We expected 2020 to be a the product as well as profit- challenging year for Nigerian ability. banks due to changes in the A breakdown of the depos- operating environment. Some it money banks’ (DMBs) lend- challenges banks had faced ing rates as published by the were: increased regulatory over- Central Bank of Nigeria (CBN) sight, low market interest rates, shows two different classes of reinvestment risk as investment loan pricing, which are prime portfolios mature, and down- lending rates, charged credit ward pressure on non-interest worthy customers and maxi- income arising from regulatory- mum lending rates, charged induced fee cuts on a few bank perceived risky customers. charges, including electronic Consequently, banks banking transactions,” analysts charge customers lower inter- at FBNQuest say. est rates of between 4 percent Godwin Emefiele, gov- and 27 percent in the prime ernor of the CBN, at the last Apapa on lockdown, Friday, as government fails to enforce measures to ease gridlock. Pic by Olawale Amoo lending rate category. Monetary Policy Committee Applicable rates for each of (MPC) meeting, attributed Nigeria’s record low-interest rates... However, because the Pa- most (50%) among emerging the DMBs as of April 9, 2021, the robust growth in credit to tience Oniha-led Debt Man- and frontier markets tracked showed that Stanbic IBTC Bank private sector to some of the Continued from page 1 into a second recession in agement Office (DMO) has by Bloomberg. The All-Share charged the lowest rate on loans administrative actions around five years last year as the smartly raised nearly half of Index declined by 1.61 per- at 4 percent, followed by GT- the cash reserve requirement assets attractive for domes- pandemic took a toll on eco- the 2021 borrowing target cent last week, according to Bank, Polaris Bank, and Unity (CRR) as well as the loan-to- tic and foreign investors amid nomic activity. The economy for the year while the rates data tracked by BusinessDay. Bank at 5 percent each, Fidelity deposit ratio (LDR) policy. rising inflation. however limped out of the re- were lower earlier this year Stocks had benefitted from Bank 6 percent, Rand Merchant The CBN in October 2019 “The CBN is repricing the cession in the fourth quarter than they are currently, the the low interest rate environ- Bank 6.08 percent, FBN Mer- raised the Loan to Deposit Ratio one year treasury bill due to the but the growth rate remains impact is likely to be less on ment, which forced inves- chant Bank and UBA 7 percent of banks to 65 percent, after the need to get local and particu- below the rate at which the government borrowing this tors to park cash in mostly each, Coronation Merchant September 30, 2019 deadline larly foreign investors to roll- population is growing, leav- year. It will be different next dividend-paying stocks. Bank 8 percen, and Wema Bank given to the banks to meet its 60 over,” said Wale Okunrinboye, ing little to cheer for long year, piling pressure on the Nigeria’s runaway infla- 9 percent, among others. percent directive. However, the head of investment research at suffering Nigerians. government’s already high tion was always going to The banks that charge regulator extended the dead- local pension fund manager, While rising yields is posi- interest payment to revenue make it impossible for the higher in the prime lending line of the 65 percent LDR to Sigma Pensions Limited. tive for investors, who will ratio, which was over 60 per- country to maintain a low in- category include Heritage March 31, 2020. “The Q1 GDP numbers now get a higher return for cent in 2020. terest rate policy for too long, Bank 27 percent, Wema Bank Aisha Ahmad, CBN deputy may tell us just how much parking cash with the govern- The stock market is also with investors constantly 25 percent , Ecobank 23 per- governor, said maintaining the CBN is willing to bid rates ment, it could cause corpo- likely to see some investment seeking yield elsewhere and cent, First Bank of Nigeria 22 the positive trajectory of credit higher, if the numbers are rate debt issuance to shrivel reversals due to rising yields in dumping the country’s debt percent, Keystone Bank 21 growth, especially in critical good, they are likely to tighten as the era of cheap debt draws the bond market. assets. percent, and UBA 20 percent. sectors (manufacturing, retail & which could see yields rise to a close. “As bond yields rise, it will Although the 10-year Banks total credit to the SMEs) would be instrumental even higher than current lev- Nigerian corporates raised start to make sense for some benchmark bond still yields private sector rose by 2.56 per- to accelerating output growth els,” Okunrinboye said. more debt than ever before investors to park cash in gov- well below inflation, the grad- cent to N20.37 trillion in the in the short to medium term. Nigeria’s slow economic in 2020, thanks to the low-in- ernment bonds rather than ual uptick in interest rates is fourth quarter (Q4) of 2020, In the maximum lend- growth coupled with rising terest-rate environment with stocks,” said Egie Akpata, also expected to attract port- according to the National Bu- ing category, banks charge inflation and high unemploy- data obtained from the Se- a director at Lgaos-based folio investment. reau of Statistics (NBS). between 9.00 percent and 36 ment rate - what economists curities and Exchange Com- investment bank, UCML Inflation rate in Nigeria is The NBS banking sector percent. For instance, Sun- call stagflation - have been mission (SEC) and FMDQ Capital. at a four-year high of 18.17 report showed that total value trust Bank charges as low a conundrum for the CBN, showing that corporate debt The rise in bond yields percent. That was as at March of credit allocated by the bank as 9.00 percent, followed by which seeks to balance its issuance hit N1.114 trillion in this year could help explain 2021, according to the Nigeri- stood at N20.37 trillion as of Globus Bank 14 percent and primary responsibility of 2020, the highest on record. why the stock market has not an Bureau of Statistics (NBS). Q4 2020. Oil & Gas and Manu- Coronation 17 percent. maintaining price stability However, with yields on maintained its rally from last Attracting foreign portfolio facturing sectors got credit Fidelity Bank and Union with stimulating economic government debt rising, it year, according to Akpata. investors will also depend allocation of N3.93 trillion Bank charge as high as 36 growth. When economic now means corporates will Nigerian stocks are down on the availability of foreign and N3.19 trillion to record percent per annum, followed growth is weak, the CBN is have to pay more to raise debt. by 2.66 percent this year after exchange, according to some the highest credit allocation by Heritage Bank 35 percent, reluctant to raise rates. The government will also a blockbuster 2020 that saw foreigners who spoke with as of the period under review. Keystone Bank 34 percent, The economy slipped pay more for raising debt. the same stocks rally by the BusinessDay. The manufacturing sector and Sterling Bank 33 percent, accounted for 15.7 percent of among others. economy, revealing that other produced the highest tons the total. The sector has benefit- To ensure transparency Mining sector holds opportunities... salt and limestone facilities of solid minerals producing ted from increased credit exten- and full disclosure, the CBN would be a needed boost for 16,497,405.35 tons of solid sion by the banking industry. makes public weekly, lending Continued from page 30 Besides these minerals of Loans extended to the ag- the future, Nigeria has about fertilizer operations. minerals representing 30 per- rates obtained in all DMBs to on finding oil. Other mineral resource cent of the total tons of solid riculture sector accounted for guide business decisions. 44 different types of minerals, Lawmakers are currently which have been identified clusters he mentioned in- minerals produced in the year considering the Nigerian in more than 500 locations clude a Barite development under review. Thorns have roses... Metallurgical Industrial Bill, across the country according area in Cross River State for Analysts say there are cer- Continued from page 30 even via the Sahara desert; which seeks to provide for to the Ministry of Mines and export and for oil and gas tain institutional, legislative, where people are voting the regulation and effective Steel Development. production. and operational bottlenecks personal terms. She is now monitoring of metallurgical with their feet to Canada, Out of these different min- The pandemic has slowed that need to be addressed to married to a Nigerian who activities in the mines and economic activities in the almost on a daily basis, yet erals, the government has ensure the smooth operation is Namibian based. But her steel sector and raw materials mining sector, however, the of the key players in the sector. we have this kind of roseate identified seven namely, Coal, rosy story did not stop there. development in Nigeria with Bitumen, Limestone, Iron price of gold surged as it is This includes blocking She is currently engaged narrative. Hell, certainly is the goal of catalysing develop- largely seen as a reliable store revenue leakages and aligning not here yet. And for us to Ore, Barites, Gold, and Lead/ in selling Nigerian foods to ment in the Nigerian mining Zinc for priority development of value leading to a surge in scarce human and financial the increasing Nigerian na- stave it off, there is a lot of industry. gold smuggling and illegal resources to priority projects, work to be done. Hence, till 2025, which it considers tionals in her country. In Analysts say Nigeria strategic and of economic mining. involving more private opera- saying this, she was almost the need for the constant should review its priority According to the National tors, and fostering transpar- interventions of the Col- importance in Nigeria. salivating about the pleasure list to include some of these Okechukwu Ogah, minis- Bureau of Statistics, mining ency and frequent engage- embedded in Nigerian vict- umnist. But still, and in the minerals of the future and ter of state, Ministry of Mines and quarrying make up 0.17 ment between relevant bodies uals. As if to crown her sweet process, the Columnist and deliberately drive investments and Steel Development percent of employment in to improve organisational into them. story, her next plans were to other critics, should also (MMSD), in a recent interview Nigeria. Artisanal and small- efficiency. appreciate from much of Minerals of the future said the Federal Government scale miners who make up The government also relocate to Nigeria. On this and location about 85 percent of miners in needs to ramp up efforts at platform, she is hoping to the foregoing that; thorns, had started the development as prickly as they are, still Manganese - Katsina, Ka- of lead/zinc processing cluster Nigeria cannot continue with formalising artisanal min- give the competition here a duna, Niger, Kebbi; Graphite - their regular activities as a ing groups, gathering data good run for its money by have roses. in Ebonyi; and other mineral Kaduna, Bauchi, Gombe and resources development in the result of the pandemic. across the value chain, secure investing heavily in the busi- Adamawa; Bauxite - Benue, Prof Soremekun, the im- region. The States Disaggregat- mining areas prone to secu- ness of Nigerian foodstuff Delta and Ekiti; Iron ore - ed Mining and Quarrying rity challenges and encour- sales. mediate past Vice Chan- He added that the govern- cellor of Federal University, Adamawa, Bauchi, Bornu, ment would exploit compara- Data for 2018 by the NBS age safer mining practices, Now can you beat that? Oye Ekiti, is the chairman, Enugu, Oyo, Jigawa, Katsina, tive advantage and provide showed Nigeria produced and strengthen local content In a country where individ- Editorial Board, Business- Anambra, Kebbi, Kogi, Niger, support to other production 55,850,075.43 tons of solid efforts to spur domestic pro- uals are heading to Europe, Day Newspapers. Yobe. value chains in the nation’s minerals and Ogun State duction.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY A1

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng A2 BUSINESS DAY Monday 10 May 2021

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY A3 NEWS Fitch affirms FBN Holdings ratings Insurers settle N4.5bn claims on #EndSARS protest losses Modestus Anaesoronye rent insurance legislation is and telephones. So far, we Hope Moses-Ashike long-standing and problematic due to high capital and liquid- out-dated and has made it are seeing a lot of traction on related-party exposures, and ity fungibility within the group, impossible to do things that the platform across the states itch Ratings, a failure to comply with regula- and low double leverage (at nsurance operators need to be done. of the Federation and we are leading provider of tory directives. 95% at end-1H20) at the hold- in the country have On the African Insurance hopeful that other states will credit ratings, has “We have assessed the near- ing company level. paid out N4.5 billion Organisation Conference, AIO key into the project before the affirmed the Long- term financial impact of these FBNH’s IDR is driven by as claims to over 2000 2021, Musa said: “Originally end of the year.” Term Issuer Default actions on FBNH and FBN and its intrinsic creditworthiness, businesses and indi- planned for year 2020, CO- On the Marine Module, RatingsF (IDRs) of FBN Hold- believe this is tolerable at the as defined by its ‘b-’ Viability Ividuals that encountered VID-19 was a force majeure he said: “As you are probably ings plc (FBNH) and its pri- rating level, even though the Rating (VR). The rating con- losses as a result of the #End- due to health protocols and aware, the Central Bank of mary operating subsidiary, final outcome is uncertain. In siders the group’s exposure SARS protests across the travel restrictions. With avail- Nigeria has since integrated First Bank of Nigeria Limited our view, any remedial actions to Nigeria’s volatile operating country in 2020. ability of vaccines, reduction the NIA Marine Module into (FBN), at ‘B-’ with a Negative imposed by the CBN, including environment and also factors More are still being ex- in infection rate coupled with the National Trade Portal and Outlook. a potential reclassification of in vulnerability in its capi- pected as victims and benefi- relaxation of travel restrictions all insurance certificates re- The affirmation reflects related-party exposures as im- tal position in the context of ciaries continue to file claims and other protocols around quired for import and export its view that the impact of paired, will not have a material moderate earnings generation on the losses, Ganiyu Musa, the coronavirus disease, the are generated from the portal. the Central Bank of Nigeria’s effect on the group’s asset qual- and asset-quality pressures, chairman of Nigerian Insurers AIO Executive Committee and This, no doubt, signals the (CBN) replacement of FBNH ity, profitability and capitalisa- where headroom above the Association (NIA) revealed the NIA have agreed to hold it end of fake marine insurance and FBN’s boards, the iden- tion,” the Fitch report says. minimum regulatory capital during an interactive session from 4 – 8 September 2021. A certificates at the ports.” tification of corporate gover- However, this does not con- requirements is also moderate. with journalists in Lagos. hybrid conference has been Musa, who became chair- nance failings and the impo- sider any possible additional Capitalisation is a factor of high “Insurance operators are agreed and we solicit your man of the Council of Bu- sition of corrective measures actions by the CBN, especially importance to the VR. still collating claims and every support in hosting the best reaux of the ECOWAS Brown are tolerable at the rating level. if FBN fails to implement the The new boards appointed genuine claim will be settled, conference ever.” Card Scheme at its 37th ordi- On April 29, 2021, the CBN regulator’s corrective measures to FBNH and FBN comprise in- Musa assured. Speaking on the Nigerian nary session in January this removed the non-executive or if there were any further dividuals with sufficient expe- The association is on top Insurance Industry Database year, said a major issue for directors on the boards of uncovering of corporate gov- rience and expertise. However, of developments in the af- /Nigerian Insurance Industry the bureau is domestication FBNH and FBN - a domestic ernance irregularities. the rating agency views such termath of the protests and Portal (NIID/NIIP), Musa of compulsory brown card in systemically important bank - The Outlook remains Nega- major change as hugely dis- will continue to encourage said: “The Nigerian Insurance the country. and replaced them with its own tive, reflecting FBNH’s pre- ruptive. There are no changes members to pay all genuine Industry database was estab- “We are hopeful that when appointees. The CBN said its existing asset quality and capi- in FBNH and FBN’s executive claims in line with the extant lished to reduce soft market all the fine details have been actions were in the interest of talisation weaknesses as well management team. policies, Musa stated. practices and eliminate fake sorted, it will be implemented financial stability and minority as the group’s corporate gover- “We believe the governance On the Consolidated In- insurance policies. The as- in Nigeria,” he said. shareholders. nance weaknesses highlighted shortcomings cited by the surance Bill 2020, Musa said: sociation has taken a step fur- On the initiatives on com- It said it acted because FBN by the CBN. These could put CBN reflect poorly on FBNH’s “NIA welcomes the review as ther by creating the Nigerian pulsory insurance, he said: “We had made significant executive pressure on the ratings. reputation and on the group’s it will align the Act with global insurance industry platform have commenced discussions management changes, includ- FBNH is the non-oper- governance and control prac- best practice and promote the to enable vehicle owners pur- with Lagos State Building Con- ing replacing the CEO, without ating holding company that tices. As a result, we have re- business of insurance in the chase their third-party motor trol Agency as part of engage- prior notice or approval of owns FBN. FBNH’s ratings vised down our assessment country.” vehicle insurance cover from ments on the implementation the regulator. The CBN also are aligned with those of FBN, of FBNH’s Management and According to him, the cur- the comfort of their homes of Lagos State building law. highlighted corporate gover- which represents around 90% Strategy score to ‘b-’ from ‘b’,” nance failings pertaining to of consolidated group assets) Fitch says. Harmful product packaging threaten Nigeria’s environmental sustainability

Mercy Ayodele at the University of Lagos aged plastic waste in Africa said in a recent BusinessDay by 2025 if drastic measures DISWASTE 2021 conference. are not taken. he increasing pop- According to the Nigeria According to the Federal ulation of small Bureau of Statistics, small and Ministry of the Environment, businesses, entre- medium scale enterprises Nigeria generates some 32 preneurs, and other (SMEs) in Nigeria have con- million tonnes of waste per firmsT involved in production tributed about 48 percent of year, of which 2.5 million are flooding the Nigerian the national GDP in the last tonnes is plastic waste most market with products but us- five years. With a total num- of which (70%) ends up in ing packaging materials that ber of about 17.4 million, they landfills, sewers, beaches, are environmentally harmful. account for about 50 percent and water bodies. From the food stores to of industrial jobs and nearly The World Bank also esti- clothes and drinks, most 90 percent of the manufac- mates that Nigeria discharges businesses package products turing sector, in terms of the around 200,000 tonnes of in plastic bags and bottles, number of enterprises. plastic waste into the ocean which are eventually thrown However, it has also been per year, while its annual away, creating a heap of gar- estimated that Nigeria will plastics production is pro- bage, causing pollution. be the nation producing the jected to grow to 523,000 One major factor that leads largest amount of misman- tonnes by 2022. to poor waste management in Nigeria is the use of single-use plastic products and packag- ing materials. From plastic in waterways causing flooding to the harmful effect on human health, the environmental impact of unsafe packaging is enormous. While SMEs and entre- preneurs play an important role in economic growth, awareness regarding environ- mentally friendly packaging is becoming crucial. “We need to rethink our business models. As we are encouraging SMEs and en- trepreneurs, we need to edu- cate them to understand the effect of their products and businesses on the environ- ment,” said Afolasade Nubi, an Environmental Engineer

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng A4 BUSINESS DAY Monday 10 May 2021 NEWS Harmful product packaging threaten Sanwo-Olu unveils creative Lagos under Del-York Academy While expressing excite- Nigeria’s environmental sustainability Endurance Okafor ment with the partnership with Del-York Academy, Sanwo-Olu Mercy Ayodele “We need to rethink our Nigeria generates some 32 down completely, it takes business models. As we are million tons of waste per year, 500 to 1000 years for a single agos State governor, who joined the event virtually, he increasing encouraging SMEs and en- of which 2.5 million tonnes is plastic bag to degrade. Babajide Sanwo-Olu averred that Del-york Acad- population of trepreneurs, we need to ed- plastic waste most of which According to the Centre has said that his ad- emy, run by Linus Idahosa small businesses, ucate them to understand (70%) ends up in landfills, sew- for International Environ- ministration is giving presented a compelling need entrepreneurs, the effect of their products ers, beaches, and water bodies. mental Law (CIEL), plastic is La cutting-edge opportunity to for the partnership, being a and other firms and businesses on the en- The World Bank also esti- a human health crisis hiding practitioners in the creative serious-minded organisation involvedT in production are vironment,” said Afolasade mates that Nigeria discharges in plain sight. sector to compete favourably that has put together a first- flooding the Nigerian market Nubi, an environmental around 200,000 tons of plastic The devastating element of with their contemporaries class faculty for the students. with good products but using engineer at the University waste into the ocean per year, this pollution is that plastics across the globe in the area “I am convinced that this is packaging materials that are of Lagos said in a recent while its annual plastics pro- getting into the ocean could of directing, cinematography, a journey that all of you will ap- environmentally harmful. BusinessDay DISWASTE duction is projected to grow take a thousand years to decay. acting and in all the processes preciate and a journey that will From the food stores to 2021 conference. to 523,000 tons by 2022. As a result, fish and wildlife of film production from script open up the entire world unto clothes and drinks, most busi- According to the Nigeria While there have been ef- consume them and conse- to screen. your palms, a journey that will nesses package products in Bureau of Statistics, small and forts to recycle plastics in re- quently, the toxins from the The governor who ad- make you a globally competi- plastic bags and bottles which medium scale enterprises cent times, Nigeria must look plastics enter the food chain, dressed a set of creative tive professional in the creative are eventually thrown away (SMEs) in Nigeria have con- towards solving the problem threatening human health. trainees sponsored by his industry,” he said. creating a heap of garbage tributed about 48 percent of from the source. Plastic waste does not only administration with Del-York The governor used the and causing pollution. the national GDP in the last “It is good to recycle but pollute our oceans. Burning Academy in Lagos explained event to inform that the Minis- One major factor that five years. With a total num- it is even greater to solve the plastics in incinerators causes that the investment in hu- try of Tourism, Arts and Culture leads to poor waste manage- ber of about 17.4 million, they problem from the source toxic air emissions, leaving man capacity development would also be launching some ment in Nigeria is single-use account for about 50 percent whereby SMEs businesses people who live close to the of practitioners in the creative other products that will help plastic products and packag- of industrial jobs and nearly understand how to come up incinerators to bear the brunt. sector by his administration the creative, entertainment ing materials. From plastic in 90 percent of the manufac- with better sustainable prod- The Nigerian government is aimed at giving the benefi- and tourism side of the indus- waterways causing flooding turing sector, in terms of the ucts through right packaging,” has made various interven- ciaries world-class exposure try in addition to other ongoing to the harmful effect on hu- number of enterprises. Nubi said. tions to reduce plastic waste in the creative field. support for practitioners in the man health, the environmen- However, it has also been Although plastic bags are pollution. “We will give you the op- sector. tal impact of unsafe packag- estimated that Nigeria will used across many countries In 2012, the Lagos State portunity that will make you Sanwo-Olu assured the ing is enormous. be the nation producing the of the world its use and cir- Waste Management Authority be what you want to be and I trainees that he would be While SMEs and entre- largest amount of misman- culation have grave conse- (LAWMA) introduced a plastic believe this will put Lagos and checking on them to examine preneurs play an important aged plastic waste in Africa quences on the ecosystem. bag buy-back programme to Nigeria in that international the training sessions and be role in economic growth, by 2025 if drastic measures The harmful impacts oc- encourage the sale of used space where even players in assured that the content they awareness regarding environ- are not taken. cur because plastic bags plastic bags to a state agency the international world will are being exposed to will give mentally friendly packaging is According to the Federal could not bio-degrade which for recycling rather than dis- look out for you,” Governor them the space to become a becoming crucial. Ministry of the Environment, means they do not break carding them like trash. Sanwo-Olu said. global player in the world.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY A5 NEWS Emefiele lists steps to robust healthcare infrastructure Police, Vigilante rescue 13 kidnap 76 percent of total healthcare particularly those in our rural genome sequence of the CO- Hope Moses-Ashike expenditure, he said. communities,” he said. VID-19 virus 48 hours after victims in Edo, dislodge abductors “At such levels of health The second vital step he the first case of COVID-19 was combined team proceed with the operations odwin Emefiele, spending, individuals par- mentioned was supporting reported in Nigeria. It is vital of security opera- going forward.” governor of the ticularly those in rural com- research and development that we encourage the works tives in Edo State He reassured that the Central Bank of munities may be denied ac- in healthcare. He noted that of this and other research on Saturday, May command will not relent in cess to healthcare services,” Nigeria (CBN) the CACOVID alliance which centres, by creating an envi- A8, rescued 13 persons from a its quest to rid the state of he said at the Movie Premiere reflected significant collabo- ronment where private sector has listed steps kidnappers den in Ahor axis kidnappers, adding, “We are of “Unmasked”, held in Lagos. ration between the private firms can invest in the works toG be considered in order to of Aduwawa Bypass, along going to carry out general have a robust healthcare in- Represented by Osita and public sector in not only of these research institutions,” Benin-Auchi Expressway, in combing of the area so that frastructure that is accessible Nwanisobi, acting director, improving access to health- Emefiele said. to the majority of Nigerians. corporate communications care services but also in dis- Another aspect he said Uhunmwonde Local Govern- we can identify their camps. One of such steps is the department, the CBN gover- seminating information to the must also be considered was ment Area of Edo State. So far, we have identified up need to expand the insurance nor said this would also help general public on useful mea- a key lesson from the CO- The security team includes to 7 camps and we will make net to capture the pool of Ni- to increase the pool of funds sures that should be taken to VID-19 pandemic the area of men and officers of the Edo State these camps visiting points gerians not covered by existing that could be invested in curb the spread of the virus, the role of improving access Police Command, local hunters so that they will not be able health insurance schemes. building the country’s health- played an instrumental role to information on proper and members of the Edo State to come back.” This, he said, could help to care infrastructure and im- in aiding Nigeria’s response health practices. Vigilante Security Network. Ogbadu urged residents reduce the high out-of-pocket prove existing welfare pack- to the COVID-19 pandemic. Emefiele noted that there The 13 persons rescued in- in communities along Ahor- expenses on healthcare ser- age of healthcare workers. According to him, leverag- is a strong linkage between clude two separate teams that Auchi Road to provide rel- vices by Nigerians. The private sector, he ar- ing capital from the private health care and economic were kidnapped on Thursday, evant information about the A study by the World gued, has a significant role to sector to complement efforts growth as evidenced by the with one set travelling from activities of kidnappers to the Health Organisation (WHO) play in this regard given the by the government in sup- impact of the COVID-19 pan- Lagos to Akwa Ibom State, authorities, noting, “we are says only four percent of Ni- decline in government rev- porting innovations in the demic on Nigeria and indeed and the other comprising going to seek more informa- gerians have access to health enues as occasioned by the healthcare space can bring the world. persons travelling from Lagos tion from these communities insurance. drop in commodity prices. immense benefits to the na- He noted that the CBN has to Onitsha, Anambra State. as these kidnappers come to Besides food, the CBN “Leveraging innovative tion. disbursed over N83.9 billion Addressing journalists the road to buy food and they solutions that can provide “I am aware of some of in loans to pharmaceuti- governor said healthcare after the rescue operation, the interact with the people.” insurance services at rela- the work by a research in- cal companies and health- expenses are a significant Edo State Commissioner of The Police Commissioner component of average Nige- tively cheap prices could stitute; the Africa Centre of care practitioners, which is Police, Philip Ogbadu said the said the command will carry ria’s personal expenditure. significantly help to improve Excellence for Genomics of supporting 26 pharmaceuti- Out-of-pocket expenses on access to healthcare for a Infectious Diseases, in Ede, cal and 56 medical projects command deployed drones out regular patrols and mount healthcare amount to nearly large proportion of Nigerians Osun State, in decoding the across the country. and were assisted by hunters checkpoints along the road. and members of the Vigilante He said the rescued vic- Security Network set up by tims were taken to Magnus the state government. Eweka Police Cottage Hos- According to him, “We pital for thorough medical used information provided examinations before they will to track the kidnappers. We be handed over to the state took courage to enter the government to assist them forest. This is how we would proceed to their destinations. NNPC concludes week with activation of PH refineries rehabilitation resident Oil and It would be recalled that Gas Trainers Asso- Sylva was instrumental to ciation of Nigeria the kick-starting of the Na- (OGTAN), Afe May- tional Gas Expansion Program Powa, and minister of state (NGEP), the Autogas Policy, for petroleum, Timpre Sylva, the 614km Ajaokuta-Kaduna- displaying award received Kano natural gas pipeline from OGTAN as “Gas Decade among other stellar achieve- Personality.” ments. Mayowa and Sylva dis- Within the week in review, playing an award received the Chairman, House of Rep- from OGTAN as “Gas Decade resentatives Committee on Personality.” Gas Resources, Rep. Mutu Eb- Sylva bagged the Gas De- omo, solicited for more funds cade personality award by the to support the operations of the Nigerian Petroleum De- Kayode Fayemi (r), governor, Ekiti State, receiving final report of the state judicial panel of inquiry into allegations of human rights OGTAN, to mark the begin- violations by police officers including operatives of SARS, from CorneliusAkintayo, chairman of the panel, in Ado-Ekiti…on Friday ning of activities for the week velopment Company Limited at the Nigerian National Pe- (NPDC). troleum Corporation (NNPC). Ebomo made the call in The award ceremony Benin during an oversight of Investors commit $159m to revolutionise Nigeria’s cassava, oil palm value chains which took place in Abuja was the Integrated Gas Handling ayus Group, in col- food and agro-allied services Edo, along with other inves- ial opportunities for youths in recognition of the Minister’s Facility (IGHF), the Liquefied laboration with companies, Shine Bridge tors under the `Edo State Oil and women,” Yusufu said. lead role in revolutionalising Petroleum Gas (LPG) and Shine Bridge Global Global (SBG) and Africa Palm Program’ (ESOPP), to Yusufu commended Gov- and opening up the country’s Propane Storage and Dispens- (SBG) and Africa Global Schaffer (AfGS), to establish 46,000 hectares of ernor Godwin Obaseki of gas sector. ing Plants of the company in FGlobal Schaffer (AfGS), are co-invest in the cassava value oil palm plantations over the Edo, describing him as a The President of OGTAN Ologbo, Edo State, with the investing $159 million in Ni- chain in Nigeria. next five years. governor who understands commended Sylva’s dedica- committee members. geria’s oil palm and cassava “Fayus has committed an “This is why at Fayus, the needs of the private sec- tion and innovation towards He commended NPDC value chains over three years. additional $44 million invest- we have partnered with the tor to enable foreign direct the Federal Government’s Gas for producing hydrogen for Chairman of Fayus ment towards the cassava best of the best innovators investments. initiatives and policies. domestic consumption. Group, Fatai Yusufu made industrialisation programme from Malaysia to ensure the He said that Obaseki had “We are here to acknowl- “We are proud of it (NPDC) this known in a statement for a total investment of $159 achievement of 60 tonnes stepped up the underpinning edge what you have done for as an indigenous company. issued on Sunday, after a million in oil palm and cas- per day milling capacity, to enable land acquisition for this country. You have brought The challenge the company virtual meeting to launch the sava value chains over three in addition to refining and Fayus’ oil palm investments sanity to the Petroleum Indus- has is mostly funded, if not, it company’s $159 million oil years,’’ he said. fractionation of crude palm in the state, describing the try; you have also declared has the capacity to do more. palm and cassava industri- Yusufu explained that oil into high-value consumer governor as a real under- Nigeria, on behalf of the Presi- “We pray that it gets the alisation investments. Fayus’ investments in Edo and industrial products. standing professional. dent, a gas-based Nation.” right partners and with the Yusufu said Fayus had include a 200 hectares pilot “By working together, I “We need to continue the Sylva, in his acceptance federal government, I know committed an additional oil palm plantation, two believe we can accomplish collaboration with Federal speech, expressed the govern- that it will do better,” Ebomo $44 million in cassava pro- nurseries, dams, roads, ir- this within three years, as we and State governments to ment’s readiness to continue said. cessing, to bring the total rigation systems, and other are aggregating and integrat- plant 800,000 seedlings in to expand the frontiers of Gas Rep. Yusuf Miga, deputy investment commitment in infrastructure assets totalling ing smallholder farmers into 2021 while we also work on development in the country chairman of the Committee, the sector to $159 million. over $15 million. our plantation establishment the establishment of a new in order to boost the economy reiterated the position of the “Fayus Nigeria Limited He said that Fayus had scheme to not only increase oil palm nursery in the newly and prepare the nation for Committee to enable NPDC and Fayus Inc. (US) are also committed to catalysing an farmers’ income, but to cre- allocated 5,000 hectares in the global energy transition improve and meet its primary working with U.S.-based additional $100 million in ate wealth and entrepreneur- Edo. phase. needs.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng A6 BUSINESS DAY Monday 10 May 2021 news COVID-19: Edo embarks on vaccination campaign FG’s security spend crowds out other for teachers ahead of schools’ reopening he Edo State govern- cination is ongoing in the ment has kicked off state at fixed locations, in- sectors yet delivers little value a coronavirus (CO- cluding the premises of the VID-19) vaccination Edo State Ministry of Health, Bunmi Bailey country could be allocated from the 2021 budget shows “In the 2021 budget, a campaignT for private and the Hospitals Management to the security sector which is that out of a total of N13.08 total of 117 federal agen- public school teachers across Board, Central Hospital, yielding limited value. trillion, security sector was cies received allocations for the state’s 18 local govern- Immigration Office and the he Federal Gov- Yet Nigeria faces serious allocated N1.97 trillion, rep- “Security Votes” worth N24.3 ment areas ahead of schools’ University of Benin Teaching ernment is economic challenges such resenting a 14 percent in- billion, despite many of these reopening on Monday, May Hospital (UBTH), as well as spending 14 per- as high unemployment, infla- crease from N1.78 trillion in agencies already having allo- 10, 2020. other mobile posts. cent more on se- tion, fragile growth, and wide- 2020. While key sectors like cations for “security charges” The Edo State COVID-19 According to him, “Edo curity this year spread poverty and resources education, health, power and to cover each agency’s secu- incident manager, Andrew State Government has com- thanT it did in 2020, thereby needed to stimulate other agriculture were allocated rity needs,” BudgIT stated in Obi, disclosed this while menced the vaccination of all reducing the money avail- key economic sectors get N742.7 billion, N546.9 billion, a press statement. addressing journalists at the teachers in the state ahead able for schools, roads, and diverted to curbing security N204.4 billion and N179.4 It further added that at weekend in Benin City, the of schools’ resumption for other critical infrastructure, challenges. billion respectively. least 316 duplicated capital Edo State capital. Monday, May 10, 2021. With yet insecurity continues to “Several other sectors Damilola Adewale, a La- projects worth N39.5 billion, He explained that the ex- the campaign, the govern- heighten in Africa’s biggest like education and health gos-based economic analyst with 115 of those duplicate ercise is part of efforts by the ment will ensure the com- economy. will definitely suffer but it is said poor funding of these projects occurring in the Min- Governor Godwin Obaseki- pulsory vaccination of all led administration to contain teachers as frontline workers Since December 2020, understandable due to the critical sectors means the istry of Health. “Even worse, hundreds of students have the pandemic and ensure the against COVID-19. increased crime and terror quality of education, health- agencies now receive alloca- health and safety of citizens. “We urge teachers to co- been kidnapped from their across the country. All we are care services, standard of tions for capital projects they schools in the northern re- Obi said the vaccination operate with the staff of the just asking for is that there living and transportation cannot execute.” exercise for the teachers, Ministry of Health who will gion of Nigeria. Also last should be more scrutiny since infrastructure will be weak In order to strike a bal- month, dozens of university which commenced on Satur- be on ground to administer other sectors are suffering,” both at national and subna- ance, Omotola Abimbola, day, May 8, 2021, will end on the vaccines to teachers in students were abducted in Abel Akeni, head of research tional level. a macro and fixed-income May 14, 2021, when the state their schools. Also, Heads of Kaduna State. Some of them and policy at BudgIT, a civic Also, BudgIT noted that analyst at Lagos-based Cha- will round off the first phase schools are to ensure strict were reported to have been tech organisation said. various non-security related pel Hill Denham advised that of the vaccination. compliance to the COVID-19 killed, while most of them Akeni also added that the government agencies now the government should make The Incident Manager protocols, which include were later released. minimum the government request and receive alloca- more revenue-focused re- further urged residents to compulsory use of face mask This fuels concern that can do is make sure that those tions for “Security Votes”, forms that will improve their key into the window for the and regular hand washing with a renewed focus on secu- funds are utilised for security an opaque feature of the ability to generate revenue first phase of vaccination amongst others as non-phar- rity more resources that could and not diverted. Nigerian security ecosystem and free up more resources to and get inoculated against maceutical equipment have deliver better value to the An analysis of the data devoid of accountability. invest in other sectors. the deadly virus. earlier been distributed to all Obi disclosed that vac- schools.” Mavin Records highlight plans for future at 9

BUNMI BAILEY the African music industry. Moving beyond the sound, the Mavin Future Five leadership ine years ago at the project seeks to mentor five inception of Ma- music business enthusiasts vin Records, when and groom them to occupy sa- music icon, phi- lient positions in the industry. lanthropist,N and label founder, Speaking on the pro- Don Jazzy asked us to ‘enjoy gramme, Mavin’s chief oper- the ride,’ only a few would ating officer, Tega Oghenejobo have envisaged just how far states, “No matter how genius and how well the label’s jour- your potential is, everyone has ney would be. 2.3+ Billion to do their 10,000 hours. You Streams later, about $4 mil- need practice. There are young lion in sales, a multimillion- people everywhere in need of dollar investment by Kupanda someone to believe in them. L-R: Ore Famurewa, executive director, corporate affairs; Ben Langat, managing director; Moyo Ajekigbe, chairman board of directors, Holdings, and with a roaster Here at Mavin, we are looking and Marc Galjaard, executive director finance, at the 48th annual general meeting of FrieslandCampina WAMCO Nigeria Plc held in boasting some of Afrobeat’s to build the future of Music in Lagos household names and bright- Africa by building those who est prospects, it suffices to say will be in charge of it.” that the business is enjoying While this anniversary cel- its time. ebrates how far the label has NNPC begins $1.5m PH refinery rehabilitation Regardless of this success, come, it also lays a marker Don Jazzy, Mavin’s chief oper- down for what is to come. …targets return to full operation April 2023 ating officer, Tega Oghenejobo Mavin at nine is rife with am- kick-off meeting for the proj- only 70 expatriates while the fix the old refinery first so that and the rest of the Mavin team, Chika Otuchikere, Abuja bition and the future of African ect which was held at the Port balance would be sourced local refining can resume as remain as inspired as ever. The music will be better for it. Harcourt Refinery Complex, locally in line with the local soon as possible, adding that biggest music label in Africa ‘’I’ve been here for a while he Nigerian National Alesa Eleme, Rivers State, content policy. NNPC management would keeps looking only forward. and so has Mavin Global. I Petroleum Corpo- Yakubu said everything about He expressed gratitude to do everything to support the 2021 has seen the label con- have seen the industry in all ration (NNPC) has the project had been carefully the Federal Government for contractor, Maire Technimont tinue to consolidate on its its phases. One thing remains begun the $1.5 mil- worked out to ensure that the approving $1.5 million for the SPA, to ensure prompt deliv- famed legacy while charting consistent though; the value lionT rehabilitation of the Port target of at least 90 percent project. ery of the project. a new route for the future of placed on talent. At Mavin, Harcourt refinery, assuring refining capacity is achieved Speaking earlier via a mes- “We are happy we have the Afrobeat. our roaster boasts an abun- Nigerians that they cannot when operational. sage delivered on his behalf by contractor onboard. With the Rema stays undeterred dance of this. We have young afford to fail. “It must be hitch-free and the chief financial officer of strong collaboration of all par- on his sonic route to world artistes coming through. They Group general manager, that is why we are engaging the corporation, Umar Ajiya, ties involved, we will achieve domination, Ayra Starr’s rise are bringing with them, a group public affairs division of the host communities appro- the group managing direc- the desired results. We have to superstardom remain un- fresher voice, newer dynam- the NNPC, Kennie Obateru, in priately. 200 million Nigerians tor of NNPC, Mele Kyari as- both government and private daunted, Crayon has found his ics. Also, there is the Ma- a statement on Friday, quoted are looking up to us and we sured Nigerians that the Port sector financing. We have the voice, Ladipoe keeps saving vin Future Five, which is a the NNPC chief operating offi- can’t afford to fail. We’ve been Harcourt Refinery Company finance ministry, NEITI, la- rap, and Johnny Drille is still leadership programme that cer (COO), refineries & petro- on this journey since 2019,” (PHRC) would return to op- bour unions and other stake- in a class of his own. provides mentorship to help chemicals, Mustapha Yakubu, he said. eration on or before April 5, holders on board this project. However, Mavin is not nurture young music industry as saying that everything was The COO disclosed that 2023, when repairs would They want to see transparency stopping here. Besides birth- enthusiasts’’ Don Jazzy says, being done to ensure that the the project would require have been completed on the so they can report same to ing the Afrobeat superstars of noting, ‘’This is what our 9th project is delivered hitch-free 3,000 workers at the peak of old refinery also known as Nigerians and this is one of the the future, the announcement Anniversary celebrates - the and on schedule. activities, stressing that out of Area 5. most transparent processes of the Mavin Future Five ini- limitless potential of the fu- Speaking at the technical that number there would be He said the target was to ever”, he stated tiative is a game-changer for ture of Afrobeat.”

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng Monday 10 May 2021 BUSINESS DAY A7 Across the State NEWS FG, Lagos partner to train Ogun nominated for 3 agric pilot programmes finance managers in LGAs residential areas for farmers would not sit back and watch RAZAQ AYINLA, Abeokuta Farm Estate, Garri Packag- ing Plant, a training pro- inside the integrated Farm the state improve the worth Joshua Bassey chairman, commended Lagos State for taking the lead to gramme on soil testing and Estate. of agriculture alone, “the adopt the use of IPSAS in its he Federal Gov- extension services for 200 “Knowing that Ogun has authority would also be re- he Federal Govern- accounting processes since ernment has young graduates with sci- the highest capacity in cas- activating the 700 hectares ment through the Of- 2016, saying that for the new confirmed Ogun ence and agriculture related sava production, our Garri of land at Joga-Orile imme- fice of the Accoun- accounting procedure to be State’s ingenuity degrees. Packaging Plant will be lo- diately, with the hope that tant-General of the all-encompassing, the local on agriculture and The executive secretary cated in the state, thereby the reactivation will increase FederationT has partnered councils must also key into agribusinessT following the added that the Integrated NALDA will be the off-taker the status of the state in food the Lagos State government the initiative. empowerment of thousands Farm Estate would be sited in from the farmers, we process production”. to train public finance man- While recalling that 2016 of youths in both crop and the three senatorial districts it, package it accordingly and Responding, Governor agers across the 20 local was the initial deadline given livestock production in the of the state, stressing estate move it into the market. Abiodun attributed the suc- governments of the state on for migration from the cash- state. would involve everything “We are training young cess of his administration’s the implementation of the based system of accounting to This also confirms Busi- from production to process- Nigerians based on the Presi- agriculture project to the International Public Sector IPSAS, the accountant-general nessDay’s earlier award on ing, packaging and market- dent’s directives on soil test- support of the President Mu- Accounting System (IPSAS) decried the low level of com- Ogun as the Most Improved ing. ing and extension services, hammad Buhari-led govern- accrual basis of accounting. pliance by States across the State on Agriculture and Eco- Ikonne explained that the so Ogun State is expected to ment, adding that his admin- Speaking during the recent country. nomic Empowerment for Garri Processing Plant would nominate 200 people in the istration holds agriculture as training session in Ikeja on “It is not cheering news 2020. give farmers the opportunity first phase. Again, Ogun is a “triple barrel pillar” that Tuesday, the accountant- to report that only 13 states Consequently, the state of farming with the belief that one of the states in the pilot allows the state to feed its general of the federation, have so far complied with the government has been nomi- their efforts will not go to stage of this programme, it people, create employment, Idris Ahmed said the training directives of the government nated to benefit from three waste. will nominate young gradu- as well as generate revenue followed the realisation that on migration to IPSAS method Federal Government’s agri- “We are running pro- ates that have agric or sci- for the state. most states and local council of accounting and this is why cultural pilot programmes grammes and projects which ence related degrees that will Abiodun, who also noted areas were behind schedule in the Federal Government has aimed at further positioning Ogun State has been slated undertake this intensive two that his administration re- the implementation of IPSAS mandated this training pro- the state as the food basket of to be one of the pilot states. week training. cently started the construc- accrual basis. gramme across the country”, the country. NALDA’s Integrated Farm “They will be empowered tion of its International Cargo The nationwide training, Idris stated. Paul Ikonne, executive Estate is going to be cited by NALDA with soil test kits Airport to boost the agric according to Ahmed, has been Speaking also, the Lagos secretary, National Agri- in Ogun State in the three and implements to collect sector, said that the state also packaged to bring up treasury State Accountant-General, cultural Land Development senatorial districts of the soil samples after the training won a bid to become a special officers at the sub-national Abiodun Muritala, advised Authority (NALDA), said state. The Integrated Farm and they will begin to gener- agric processing zone, with level up to speed on the prac- the local government officials this during a working visit to Estate is a concept that takes ate money for themselves, the state using the advantage tical steps in the preparation to embrace the IPSAS method Governor Dapo Abiodun, in in everything from produc- thereby making a living from of the cargo airport that seats and presentation of IPSAS of accounting, considering Abeokuta. The state would tion to processing, packaging the programme,” he said. on 5,000 hectares of land to its accrual compliant General its numerous benefits over benefit from the Integrated and marketing, we also have He disclosed that NALDA advantage. Purpose Financial Statements the cash-based accounting (GPFS). method. He expressed the hope that He maintained that the after the training, participants current position of the state’s would be fully equipped with revenue and its status in ob- the technical knowledge for taining foreign grants and the preparation and presenta- loans are a result of the robust tion of IPSAS Accrual Basis of accounting system being used Accounting Compliant GPFS at the State-level, stressing of their respective offices. that if the government bor- Ahmed, represented at the rows money, it has a strong event by Chris Nyong, Federal accounting system that shows Account Allocation Commit- that the money would be paid tee (FAAC) sub-committee back.

‘Lagos Free Zone is special for furthering Indian investments in Nigeria’ GBEMI FAMINU seen here today and I com- mend Tolaram Group for hav- ing put together such a defin- he Indian High Com- ing Project in Nigeria. I would missioner to Nigeria, urge all the Indian companies L-R: Louis Mbanefo, former president, Nigerian Maritime Law Association (NMLA); Vicky Haastrup, chairman, Sea Port Terminal Operators Abhay Thakur has globally to seriously consider in Nigeria; Dan Agbor, senior partner, Udo Udoma & Belo-Osagie; Funke Agbor, senior partner, Dentons ACAS-LAW/incoming NMLA remarked that the president; Jimi Oduba, and Chidi Ilogu, senior partner, Foundation Chambers/ immediate past president, NMLA, during the cocktail party the possibilities at Lagos Free LagosT Free Zone (LFZ) pro- hosted by Foundation Chambers, to welcome the new executive committee members of the NMLA and induct a new partner, Kashimana Zone because it is difficult vides a unique and special Tsumba, in Lagos. to find a better investment ecosystem that all the In- destination in Nigeria today,” dian companies with growth he said. aspirations must seriously He assured the LFZ team consider for their businesses 10,000 to benefit as Kwara launches input subsidy scheme that the Indian High Com- at a visit to the LFZ. “This subsidy scheme last year with COVID-19. So, that and we are talking in that mission in Nigeria would SIKIRAT SHEHU, Ilorin The High Commissioner gives our farmers easy access we needed to step in to en- direction to have an MOU. do all within its means to gave this advice when he to certified seeds, assorted able them to get fertilisers, “And then, the federal help promote and attract the led a cross-section of top wara State gov- fertilisers and herbicides for improved seedlings and her- government is working with much-needed investment executives of Indian compa- ernor, Abdulrah- the 2021 planting season at bicides to boost production. us. We are working on the into Nigeria. nies operating in Nigeria at man Abdulrazaq 50 percent market price. “It is not just about food special agroprocessing zone “As you may already be the weekend to the LFZ, an has launched an “This initiative is part of security in Kwara State but in to be located in Lata which aware, Nigeria remains the industrial zone developed by Kagricultural input subsidy the administration’s sus- Nigeria as a whole. Farmers will see the investment of largest trading partner of Tolaram Group. scheme that would give at tained efforts to use agri- are farming largely without about N10billion going to India in Africa with total Thakur described the LFZ, least 10,000 farmers access to culture to drive economic any problem in Kwara. We agriculture in Edu and Patigi trade volume of about $14b especially with its integra- various inputs at 50 percent growth and food security only need to support them. local governments alone in in 2020 and is also one of the tion of the Lekki Deep Sea market price, a step he said, in the post COVID-19 pan- The aim is to achieve food the next two to four years; so leading investors in Nigeria Port, as a defining project for aligns with the state’s strate- demic era. I assure you that security in Nigeria, not just we need to scale up what we with a cumulative invest- Nigeria that would impact gic plan for food security and mechanisms have been put Kwara; from animal hus- are doing in those areas,” the ment base of about $20b the economy positively and sustainable development. in place, especially reliable bandry to all other facets of governor said. in Nigeria. We are trying to further open the country The governor told farmers data, to ensure that these in- agriculture. He urged the farmers to play a bigger role in Nigeria’s to the world as a preferred in Ilorin, the state capital, puts get only to the intended “We have the land. We are make good use of the oppor- growth story by creating a destination for foreign direct that the intervention became farmers. negotiating with some states, tunity to have a more reward- win-win relationship. In this investment (FDI). necessary to compensate for “This programme is basi- especially Lagos state. Lagos ing farming experience this context, Lagos Free Zone has “I have been very im- their loss to the COVID-19 cally to improve productivity. has arguably the biggest rice year, adding that the efforts a special place in furthering pressed with the scale, size pandemic in the last farming We have to bring this subsidy mill in Nigeria today, but will lead to better outcomes India-Nigeria collabora- and potential of the Lagos season, and to boost food because our farmers went they don’t have land. We and improved livelihood tion,” he said. Free Zone project that I have production in the state. through a lot of hardship want to take advantage of across the state.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng A8 BUSINESS DAY Monday 10 May 2021

Access Bank Rateswatch KEY MACROECONOMIC INDICATORS Market Analysis and Outlook: May 7 – May 14, 2021 Indicators Current Figures Comments GDP Growth (%) 0.11 Q4 2020 — higher by 3.73% compared to –3.62% in Q3 2020 Global Economy Broad Money Supply (N’ trillion) 38.46 Decreased by 0.71% in March’ 2021 from N38.73 trillion in February’ 2021 China's trade surplus was reported at $42.8 12.57% and 13.87% the prior week. This Credit to Private Sector (N’ trillion) 31.25 Increased by 2.43% in March’ 2021 from N30.50 trillion in February’ 2021 billion in April 2021 compared with a surplus of week, retail Secondary Market Intervention Currency in Circulation (N’ trillion) 2.81 Increased by 1.04% in March’ 2021 from N2.78 trillion in February’ 2021 $45 billion in the same month a year earlier Sales might lead to an increase in borrowing Inflation rate (%) (y-o-y) 18.17 Increased to 18.17% in March 2021 from 17.33% in February 2021 according to the General Administration of costs. Monetary Policy Rate (%) 11.5 Adjusted to 11.5% in September 2020 from 12.5% Customs. This is amid an improving global Interest Rate (Asymmetrical Corridor) 11.5 (+1/-7) Lending rate changed to 12.5% & Deposit rate 4.5% demand and higher commodity prices. Foreign Exchange Market External Reserves (US$ million) 34.76 May 5, 2021 figure — a decrease of 0.25% from April start Exports jumped 32.3% and imports surged The naira appreciated against the greenback Oil Price (US$/Barrel) 67.11 May 6, 2021 figure— an increase of 1.42% from the prior week 43.1%. The country's trade surplus with the US across all market segments last week. The increased to $28.11 billion in April from $21.37 Nigerian Autonomous Foreign Exchange Oil Production mbpd (OPEC) 1.48 March 2021, figure — an increase of 0.47% from February 2021 figure billion in March. In a separate development, the (NAFEX) gained 28 kobo to close at

NSE ASI & Bond FX Market N/US$ Us Bureau of Labour Statistics revealed that N409.96/US$ from N410.24/US$ as the CBN the unemployment rate climbed to 6.1% in extended its dollar for naira scheme April 2021, from 6% in the previous month as indefinitely. The parallel market settled at more workers began looking for work and re- N483/US$ from N485/US$, appreciating by entered the labour market. The number of N2. The CBN official window was unchanged unemployed people increased by 102,000 to at N379/US$ from preceding week figures. We 9.81 million and the number of employed was expect rates to trade around current levels

External Reserves & Oil price up by 328,000 to 151.2 million, while the this week supported by the apex bank Inflation Rate activity rate rose to 61.7% from 61.5% in intervention in the FX market. March. Unemployment levels were down considerably from their recent highs in April Bond Market 2020 but remained well above their levels prior Average bond yields rose last week following to the coronavirus pandemic. improved offers on the mid to long tenored maturities. Firm yields for the 2027 and 2045 STOCK MARKET COMMODITIES MARKET Domestic Economy securities were quoted at 13.00% and 14.20% Indicators Last Week 2 Weeks Change Indicators 7/5/21 1-week YTD Change The Central Bank of Nigeria (CBN) has levels. Yields on the 7-, 10-, 15-, 20-, 25-, and Ago (%) Change (%) 7/5/21 30/4/21 (%) extended the Naira for dollar scheme till 30-year debt papers closed higher at 12.22%, Energy further notice. This was disclosed in a circular 10.62%, 14.12%, 13.53%, 14.29% and NSE ASI 39,198.75 39,832.61 (1.59) Crude Oil $/bbl) 67.11 1.42 4.11 to all deposit money banks, International 14.14% from 11.47%, 10.10%, 13.48%, Natural Gas ($/MMBtu) 2.95 0.68 (3.47) Market Cap(N’tr) 20.43 20.85 (1.99) Money Transfers Operators (IMTOs) and the 13.02%, 14.14%, and 14.01%respectively. Agriculture Volume (bn) 0.24 0.32 (24.78) general public dated May 5, 2021, and signed The Access Bank Government Bond index Cocoa ($/MT) 2,397.00 0.63 23.81 by the director, trade, and exchange declined by 61.35 points to settle at 3,593.06 Value (N’bn) 2.39 2.98 (19.78) Coffee ($/lb.) 152.50 7.81 17.13 department, CBN. The Naira for dollar scheme points last week. This week, bearish Cotton ($/lb.) 90.34 2.57 16.57 MONEY MARKET was originally scheduled to end on May 8, 2021. sentiments may persist owing to the thin NIBOR Sugar ($/lb.) 17.45 2.77 13.83 “We hereby announce the continuation of the market liquidity and weak investors' appetite Tenor Last Week 2 Weeks Ago Change Wheat ($/bu.) 758.50 3.23 74.97 Rate (%) Rate (%) (Basis Metals scheme until further notice,” the circular for bonds. Point) Gold ($/t oz.) 1,819.96 2.87 38.13 stated. On March 6, 2021, the CBN introduced 7/5/21 30/4/21 Silver ($/t oz.) 27.35 5.52 59.10 the Naira for dollar scheme as an incentive to Commodities OBB 14.7500 27.5000 (1275) Copper ($/lb.) 471.70 5.57 43.90 boost inflows of diaspora remittances into the Oil prices climbed last week boosted by O/N 15.2500 27.7500 (1250) optimism over restrictions easing in the US CALL 14.7000 21.1667 (647) NIGERIA INTERBANK TREASURY BILLS TRUE country. The new policy on remittances flows 30 Days 9.2342 12.5669 (333) YIELDS by the lender of last resort, which offers to and Europe, strong economic data out of Tenor Last Week 2 Weeks Ago Change 90 Days 10.1971 13.8668 (367) Rate (%) Rate (%) (Basis Point) reward recipients of diaspora remittances is China and as US crude stocks fell the most in expected to reduce costs and check three months last week. Bonny light, Nigeria's FOREIGN EXCHANGE MARKET 7/5/21 30/4/21 roundtripping, according to the regulator. benchmark crude rose 1.42% to close at Market Last Week 2 Weeks 1 Month Ago $67.11 per barrel. Precious metal prices Rate (N/$) Ago Rate (N/Rate (N/$) 1 Mnth 2.21 2.09 12 $) Stock Market surged in reaction to a disappointing payroll 7/5/21 30/4/21 7/4/21 3 Mnths 3.08 2.78 31 The bears took hold of the Nigerian stock report which also spooked investors away Official (N) 379.00 379.00 379.00 6 Mnths 4.42 4.29 14 exchange last week as indicators worsened. from the dollar and pushed Treasury yields Inter-Bank (N) 409.96 410.24 408.92 9 Mnths 6.76 7.05 (29) The downward trend was led by stocks in the sharply lower. Consequently, gold prices BDC (N) 0.00 0.00 0.00 12 Mnths 8.90 8.81 9 waste management, information technology, notched upwards 2.87% or $50.83 to finish at

Parallel (N) 483.00 485.00 485.00 oil and financial sectors. Consequently, the All- $1,819.96 per ounce from $1,769.13 per

ACCESS BANK NIGERIAN GOV’T BOND INDEX Share Index (ASI) and market capitalization ounce. Silver settled at $27.35 per ounce, a BOND MARKET closed lower at 39,198.75 points and N20.43 5.52% jump from previous week. This week, AVERAGE YIELDS Indicators Last 2 Weeks Change trillion from 39,832.61 points and N20.85 concerns about the impact of soaring COVID- Tenor Last Week 2 Weeks Ago Change Week Ago (Basis Point) Rate (%) Rate (%) (Basis Point) trillion, respectively the preceding week. This 19 cases in India, the world's third-biggest oil Indicators 7/5/21 30/4/21 importer and weak US jobs report might 7/5/21 30/4/21 week, we expect market performance to be

Index 3,593.06 3,654.41 (1.68) influenced by Q1 corporate earnings release. pressure oil prices. Bullions might continue to 5-Year 5.25 5.26 (1) benefit from safe-haven demand stemming 7-Year 12.22 11.47 75 Mkt Cap Gross (N'tr) 11.81 11.98 (1.44) Money Market from the ongoing coronavirus crises as 10-Year 10.62 10.10 52 Mkt Cap Net (N'tr) 7.90 7.98 (1.11) The debt market improved following Open infection rates continue to accelerate in India 15-Year 14.12 13.48 64 Market Operations (OMO) maturity of N30 and Japan. YTD return (%) 46.27 48.77 (2.50)

20-Year billion. The credit led to a decline in rates as 13.53 13.02 50 YTD return (%)(US $) -46.11 -43.62 (2.49) short-term lender's charge such as the Open 25-Year 14.29 14.14 15 TREASURY BILLS PMA AUCTION Monthly Macro Economic Forecast Buy Back (OBB) and Overnight (O/N) rates 30-Year 14.14 14.01 13 Tenor Amount (N’ Rate (%) Date Variables May’21 Jun’21 Jul’21 Disclaimer million) tapered to 14.75% and 15.25% from 27.50% This report is based on information obtained from various sources 91 Day 2,878.85 2 31-Mar-2021 Exchange Rate believed to be reliable and no representation is made that it is accu- and 27.75% the previous week. The slightly 408 408 410 rate or complete. Reasonable care has been taken in preparing this 182 Day 3,240.39 3.5 31-Mar-2021 (NAFEX) (N/$) document. Access Bank Plc shall not accept responsibility or liabil- longer dated instruments such as 30-day and Inflation Rate (%) 18.5 18.9 19.77 ity for errors of fact or any opinion expressed herein. This document 8 364 Day 138,711.88 31-Mar-2021 90-day Nigerian Interbank Offered Rate Crude Oil Price is for information purposes and private circulation only and may not 66 67 69 be reproduced, distributed or published by any recipient for any (US$/Barrel) purpose without prior written consent of Access Bank Plc. (NIBOR) settled at 9.23% and 10.2% from

Sources: CBN, Financial Market Dealers Quotation, NSE, NBS, Energy Information Agency, Oilprice, Bloomberg and Access Bank Economic Intelligence Group computation. For enquiries, contact: Rotimi Peters (Team Lead, Economic Intelligence) (01) 2712123 [email protected] * Crude oil (Bonny Light) is as at the previous day.

www.businessday.ng https://www.facebook.com/businessdayng @Businessdayng BUSINESS DAY Monday 10 May 2021 Insight www.businessday.ng Nigeria’s 2021 Q1 review: Sustained recovery on the cards

TOCHUWKU OKAFOR Monthly yields for the benchmark marginally temper a monthly rise. securities monitored expanded Nevertheless, the insufficiency he year 2020 was an across all maturities on a month-on- and disruptions to food supply will unprecedented year, no month basis, as average yields of the continue to have a notable effect on thanks to the coronavirus sovereign bonds with 3-year, 5-year, prices, as well as the pass-through outbreak, as the global 10-year and 20-year maturities rose effect of increased energy and PMS economy was suspended by 55 bps, 117 bps, 38 bps and 87 prices on the production cost of Tin the second quarter and most of bps, respectively. businesses and the pockets of in- Q3-2020 to safeguard human health. The Bond auction, which held on dividual consumers. However, all Oil prices plummeted to levels never 24th March 2021, closed relatively things being equal, if the economy seen before, airlines were grounded, strong with a bid-to-cover ratio of continues in its current trajectory, hotels shut down, and all forms of 2.2x and stop rates for the 7-year, 15- inflation rates are expected to begin congregational economic activity year and 25-year maturities printing to dip from the second half of the halted. This triggered a global re- at 10.50%, 11.50% and 12.00% re- year (H2), and probably conclude cession across advanced and low- spectively. Compared to the previous the year at a 12%-14% threshold. income countries, as GDP growth auction, 7-year, 15-year and 25-year While the monetary and fiscal numbers printed negative amid Source: Nigerian Bureau of Statistics (NBS) maturities closed higher by 25 bps, authorities have maintained a dov- demand and supply shocks. 25 bps, and 20 bps, respectively. The ish tone in a bid to stimulate growth, Economic recovery is however, to value and increasing regulatory has seen improved expectations for bond auction calendar for Q2 2021 we believe that inflation has now gaining momentum globally. For- pressure. Concerns over credit tight- 2021. A recently released report by which was released during the period risen to levels that cannot be ignored ward-looking composite purchasing ening weighed on Chinese equity the International Monetary Fund signaled an increase in offer size. anymore. Hence, we anticipate de- manager indices for major regions markets in general. (IMF) pointed to an improved out- The Central Bank of Nigeria left liberate responses particularly from are indicating a strong ongoing NIGERIA’S Q1 REVIEW look for the Nigerian economy, as its monetary policy rate unchanged the fiscal side, to cap the upsurge. expansion with manufacturing still On the home front, the Monetary the Bretton Wood establishment in- at 11.5% during its March 2021 We also anticipate a knee-jerk reac- offsetting weak services. Labour Policy Committee (MPC) met for the creased the GDP growth forecast for meeting, to help to consolidate the tion in the fixed income market as markets are also healing gradually second time this year, and commit- 2021 from 1.5% in its January 2021’s country’s recovery process despite participants re-price their risks. in the US, UK and Australia and are tee members casted a 6/3 ballot to forecast to 2.5%. The IMF however intensifying inflationary pressures. We expect the MPC to keep play- stabilizing in Europe. However, keep the Monetary Policy Rate and expects growth to moderate in 2022, Headline inflation hit a four-year ing down the current inflationary strong goods demand is putting other policy parameters unchanged. ticking up by just 2.3%. high of 17.33% in February, due to pressure, which to a great extent, pressure on global supply chains As intimated by Godwin Emefiele, Nigeria’s revised growth rests the persistent insecurity coupled remains supply-side driven, since with worldwide shortages and bot- Chairman of the Committee and against a backdrop of improved with the upward foreign exchange tightening would expand the costs tlenecks across a range of industries. Governor of the Central Bank of global outlook, as the IMF increased adjustments. of capital and hinder venture and Also, weather disruptions earlier in Nigeria (CBN), the committee ar- its global economic growth forecast EXPECTATIONS FOR SUBSE- individual investments expected the year, port backlogs, a fire in a rived at this choice in the wake of to 6.0% from a 5.2% projection QUENT QUARTERS to support recuperation of the de- major Japanese chip factory, and a the different macroeconomic factors embedded in the October 2020 Nigeria’s path to recovery may bilitated economy. Additionally, we large vessel blocking Suez Canal for like the high rate of unemployment IMF World Economic Outlook. not be far off as the quicker than consider a dovish decision both un- almost a week, exacerbated sup- (33%), upward inflationary pressure Likewise, the IMF lifted its earlier expected availability of Covid-19 realistic and far-fetched in the short ply problems. The Baltic Dry Index (18.17%), and the sluggish economic Sub-Saharan Africa growth forecast vaccines in Nigeria, as well as the to medium term as this might be which measures global shipping growth (0.11%) the country recorded for 2021 by 0.2% to 3.4%. Neverthe- sustained uptick in oil prices, has terrible for the country’s currency. rates reached a two-year high in the in Q4 2020. less, the anticipated growth across brightened the GDP growth out- We however do not totally preclude month of March 2021. Finally, the National Bureau of Sub-Saharan Africa masks various look for 2021. We expect to see real tightening in the short to medium Overall, the OECD has upgraded Statistics (NBS) released its for- contours, as recovery in tourism- GDP grow by roughly 1% in Q1 2021 term as any hit to the exchange rate its forecast for global growth for eign and domestic debt report for reliant economies is expected to based on in-house macroeconomic could lead to a frantic move to draw 2021 by a significant degree, but the Q4 2020, noting that the nation’s be slower. Downside risks to recov- models; GDP in Q1 2021 could grow in more greenback. recovery remains uneven. Global gross public debt stood at N32.92 ery in commodity-export reliant between +0.98% and +1.3% depend- We also expect yields to trend growth is projected by the IMF to trillion as of 31st December 2020. economies like Nigeria are equally ing on the size of fiscal policy stimu- further upward this month on the rebound by 5.2% in 2021, buoyed Contrasted with the N27.40 trillion predominant, hence, rationalising a lus in the first quarter. However, back of the low liquidity expectation by recoveries in emerging markets figure as of 31st December, 2019, this lower growth projection for Nigeria the 2.5% growth projection by the coupled with the increase in bond (+6.0%) and advanced economies nation’s total debt size grew by 20.1% relative to that of the Sub-Saharan IMF sits slightly above our earlier offering. (+3.9%). Recovery will be aided by over the year. The overall domestic African region. posited GDP growth range of 1.5% In the near term, we may see a bold economic stimulus packages debt represented 61.40% of the OPEC, in its monthly oil market and 2.4%, but remains shy of the 3% further devaluation of the Naira at and a massive accommodative poli- total public debt (in contrast to the report noted that Nigeria’s oil pro- growth target embedded in the 2021 the I&E FX window till more flows cy stance by central banks. Similarly, 67.10% recorded in 2019). The gross duction improved slightly by 4.63% Appropriation Act. Nevertheless, we come in to further stabilize the oil prices are expected to continue public debt is projected to extend in February 2021 to 1.42mbpd from maintain tepid expectations on Ni- reserves. northwards but may be stuck within to N37.61 trillion by 31st December 1.36mbpd in January 2020. This gerian’s economic growth for 2021, The earnings season has come the $65-$70/b range if demand fails 2021 after considering the estimated evidenced the positive impact from as we foresee a shift in policy posture to an end and it is difficult to pin- to keep up with supply. borrowings of N4.69 trillion needed the ease of the local production limit to curb inflation, and we also remain point what could propel positive In developed markets, the US to finance the deficiency in Nigeria’s following the additional output cuts concerned about the pre-existing sentiments in the market in the outperformed most major countries 2021 budget. implemented in the past months to structural issues. near term. A key factor to watch will except Germany and Italy in March. MACROECONOMIC OVER- compensate for non-compliance in Inflation is expected to main- be the trend of the 1-year bill as we Emerging markets were the weakest VIEW the earlier months of 2020. In addi- tain a northward trajectory, as the know there is an inverse relationship region, returning -1.5% in March GDP Growth & Oil Production tion, OPEC marginally improved its drivers remain active. Food supply between fixed income yields and which was driven by the ongoing Following a narrow recovery world oil demand forecast for 2021 remains a key concern, but the re- equity prices. We expect positive market correction in China. China’s from the second economic recession by 0.20mbpd to average 96.30mbpd duced tension between the northern macros and corporate disclosures to tech stocks were hit by the rotation in 4 years, Nigeria’s growth trajectory relative to the preceding month’s and south-western traders should steer the sentiments in the market. estimate, on the back of improved economic expectations for the sec- ond quarter of the year, as the world records improvements in Covid-19 inoculation. On the supply side, OPEC revised its world oil supply estimate for 2021 up by 0.50mbpd to average 63.30mbpd relative to the preceding month’s estimate, buoyed by improved production in Canada, the US, Norway, Brazil and Russia. FINANCIAL MARKETS Fixed Income Market The fixed income market halted its bullish run in Q1 2021 as weak liquidity expectation coupled with the rise in rates at the NTB auc- Sources: OPEC, NBS tions, dampened investors’ appetite. Source: FMDQ

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