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NSE Bitcoin Everdon Bureau De Change FMDQ Close Foreign Exchange Treasury bills fgn bonds - $42.46bn Foreign Reserve Market Spot ($/N) 3M 6M 5 Y 10 Y 20 Y Biggest Gainer Biggest Loser Buy Sell Cross Rates - GBP-$:1.29 YUANY-N52.28 ₦2,284,871.90 +0.08 pc 0.06 -0.01 Guinness Nestle $-N 359.00 362.00 I&E FX Window 364.01 0.32 0.32 -0.04 N80.5 1.26 pc N1370 -2.14 pc Commodities Powered by £-N 468.00 476.00 CBN Official Rate 306.55 13.21 13.36 15.10 15.39 15.17 Cocoa Gold Crude Oil 32,403.60 €-N 407.50 415.50 Currency Futures NGUS DEC 26 2018 NGUS MAR 27 2019 NGUS SEP 18 2019 US $2,139.00 $1,230.40 $77.17 ($/N) 364.27 364.72 365.62

news you can trust I **THURSDAY 25 OCTOBER 2018 I vol. 15, no 169 I N300 @ g ‘Nigeria’s private sector has no FG to spend N8.73trn in 2019, capacity to fund infrastructure’ Onyinye Nwachukwu, Abuja igeria’s private sector targets 3.01% economic growth has no capacity to fund Nbig ticket infrastructure Tony Ailemen, Abuja projects in the country, Baba- Leaves exchange rate unchanged at N305/$ tunde Fashola Minister of Power, he Federal Execu- Works and Housing, said at a tive Council (FEC), session on infrastructure at the Wednesday ap- Raises crude oil price benchmark to $60/b Nigeria Economic Summit. proved a total of This is despite the belief by N8.73 trillion budget Term Expenditure Framework Correspondents after the weekly sembly for approval. experts that government needs forT 2019, about N400 billion (MTEF) and Fiscal Strategy Pa- Federal Executive Council (FEC) Udoma however disclosed to create mechanisms that allow lower than the N9.2 trillion ap- per (FSP). meeting presided over by Presi- that the Federal Government private investment inflows to proved for 2018. Minister of Budget and Na- dent Muhammadu Buhari, said would borrow at a reduced rate close the over N3 trillion per year This is just as FEC also ap- tional Planning, Udoma Udo the projection would soon be Continues on page 33 infrastructure gap in the country. proved the 2019 to 2021 Medium Udoma, briefing State House submitted to the National As- Fashola was speaking on ‘Ac- celerating Infrastructure Invest- ments’ during one of the break- out sessions at the 24th session of the Nigeria Economic Summit ((NES#24) held in Abuja. “There is this argument or be- lief that the kind of infrastructure we want to build will be funded by the private sector. I think what we need to do is just to put the numbers of the needed infra- structure funding side by side with what the private sector is able to put in and the terms and conditions upon which they will L-R Kingsley Ezen- do so,” the minister stated. wa, communications Continues on page 33 manager, Dana Air; Udoma Udo Udoma, minister of budget Inside and national plan- ning; Vice President Aliko Dangote Yemi Osinbajo, and Olu Tikolo, at the named 6th Dana Air stand, dur- Most Charitable ing the 24th Nigerian Economic Summit in Person in the Abuja. world P. 2 MTN, CBN near truce on $8.1bn refund ... Finance minister says regulatory action against telco was “damaging” LOLADE AKINMURELE repatriated dividends. said to have received new docu- amicably, the decision by MTN told BusinessDay. An October Sources close to both the CBN ments in relation to the case and to go to court was a ‘mistake.’ He 30 hearing date has already been TN Nigeria and and MTN have told BusinessDay is looking at resolving it with all said the issue cannot be resolved fixed for the case but sources say the Central Bank of that results of a meeting held parties amicably. unless MTN withdraws the case it will not be surprising if MTN Nigeria (CBN) are October 9 between both parties Another source close to the from the court. withdraws the case on that date, close to reaching an were positive, despite the fact CBN, however, told BusinessDay “The CBN has very wide pow- when it comes up for hearing, amicableM settlement over the re- that the outcome of the meeting that even though the apex bank ers that you must be careful to to make room for the ongoing fund of US$8.1 billion in illegally was not made public. The CBN is is looking at resolving the issue challenge legally,” the source Continues on page 33 2 BUSINESS DAY C002D5556 Thursday 25 October 2018 NEWS Ex-Afren executives found guilty in $300m oil business deal DIPO OLADEHINDE to justice.” Afren, once a publicly traded London jury at Southwark company with a market cap of $2.6 Crown Court on Wednes- billion, collapsed in 2015 claiming day found two former ex- lower crude oil prices, cooperate ecutives of collapsed oil governance abuses and huge debts. Aand gas firm, Afren plc, guilty of The company appointed adminis- fraud and money laundering, after trators after failing to restructure an a three-year investigation by the outstanding $863 million of bonds. United Kingdom Serious Fraud The criminal investigation into Office. the former CEO and COO of the Ex-Chief Executive Officer, -Os collapsed oil and gas exploration man Shahenshah and former head company began in June 2015 fol- of operations, Shahid Ullah, were lowing a self-report by the company, found guilty of fraud and money with the defendants charged with laundering offences from which four offences in September last year. they personally received more The case centers around $300 than $17million and laundered million, which was transferred from $45million by deceiving the Afren Afren Energy to Oriental Energy Board into agreeing a $300million Resources. Oriental and Afren were Godwin Obaseki, Edo State governor (m); his chief of staff, Taiwo Akerele (2nd r); commissioner for environment and jointly developing the Ebok oilfield business deal. sustainability, Omoua Alonge Oni-Okpaku (r); President of Association Bernadette Strebel World Peace (ABSWP) The prosecuting team led by off the coast of Nigeria and the Nigerian partner wanted to receive in Switzerland, Bermadette Strebel (2nd l), and project manager for the Association, Festus Onogholo, during a John McGuinness of the UK’s Seri- courtesy visit at the Government House in Benin City, yesterday. ous Fraud Office (SFO) alleged that some of the profit share in advance between 2012 and 2014, the two of cost recovery. ex-Afren Energy’s managers abused According to this agreement, their positions to secretly divert once Afren had recovered its invest- some of the millions of dollars the ment, the partners would split the company paid to two Nigerian part- profits 50-50. However, the owner of Aliko Dangote named 6th Most ners for their personal gain, which oriental wanted some of Oriental’s led to the collapse of Afren Energy. profit share before cost recovery was Prosecutors said following a complete and in 2011 struck a deal shareholder revolt, which objected to be paid $100m in advance. Charitable Person in the world to their £6.6million and £3.8million Although there was nothing ille- salary packages, the two men en- gal about this deal, the prosecution he philanthropist attitude later, the Foundation has become million as assistance to victims of the tered a pair of side deals with Afren said, it was just “the first instalment of Aliko Dangote, Presi- the largest private Foundation in sub fire outbreak that occurred recently partners, pocketing more than $17 of what was to be a much larger dent of Dangote group Saharan Africa, with the largest en- in five major markets in Kano. million after the transaction was sum”. A second advance payment was recognized and high- dowment by a single African donor. The Foundation has also been completed. of $300m followed in 2012, paid by lighted by Richtopia, a The primary focus of Aliko Dangote at the forefront of alleviating the The two former bosses of Afren Afren to Oriental in two tranches. Tdigital periodical that covers busi- Foundation is health and nutrition, conditions of people in IDPs. The recommended a transaction to the The prosecution said Sha- ness, economics, and financial news, supported by wrap-around interven- Foundation in 2011, gave the sum Afren Board, who then approved henshah and Ullah did not tell based in the United Kingdom, on tions in education, empowerment, of N364 million to IDPs across Ka- payments of hundreds of millions the board members he was also Wednesday as the richest man in and humanitarian relief. duna, Bauchi and Gombe states after of dollars without knowing that to pay additional 15 per cent of Africa was named as the sixth most Among many others, it would the post-election violence which Shahenshah and Ullah stood to its net cash flow annually to an charitable man in the World. Dan- be recalled that the foundation gave rendered many homeless while the personally benefit, as the transac- offshore vehicle called Ntiti for gote recently endowed his founda- out a whopping N2.5 billion, the sums of N100 million and N60 mil- tion was claimed to be necessary to non-existent consultancy services tion to the tune of $1.25 billion same amount the Federal Govern- lion were respectively donated to maintain the business partnership, which was 49 per cent owned by Warren Buffett, Bill Gates and J.K ment also donated for the purpose victims of flood disaster in Lagos and but the fact that Shahenshah and Ullah and 51 per cent owned by Rowlings occupied the first three of ameliorating the sufferings of Oyo States the same year. Ullah stood to benefit personally Shahenshah’s wife. positions while Oprah Winfrey and the flood victims during President Dangote Foundation donated remained hidden. The men then used the $45m to Elon Musk were in the fourth and Jonathan era. N39.34 million to those IDPs dis- “Greed motivated this crime. Os- purchase luxury properties in Mus- fifth position respectively. The Foundation, in line with its placed by the communal clash in man Shahenshah and Shahid Ullah tique and the British Virgin Islands. Aside Aliko Dangote, Tony Elu- mandate to provide relief in times Benue state in 2014. failed in their duties as company di- A smaller portion of the $45m laun- melu, Chairman of United Bank of disaster, spread its philanthropic While N42.5 million was used rectors, abused their positions and dered was split between Oriental for Africa was 11th on the lists and works beyond the shores of Nigeria in feeding 5000 IDP households lied to their board,” Lisa Osofsky, employees and a close network of these two were the only Nigerians with a donation of $1 million to the across Borno, Yobe and Adamawa Director of the UK’s Serious Fraud Afren staff dubbed ‘The A Team’. on the lists. government of the Federal Demo- states last year, N100 million and Office said on its website. All efforts to get Oriental Energy Aliko Dangote started his founda- cratic Republic of Nepal. The gesture N50 million were respectively con- “Instead of acting in their com- side of the story proved abortive, as tion, Aliko Dangote Foundation in was meant to support the govern- tributed to the Appeal fund raised pany’s best interests, they used all emails sent by BusinessDay to the 1981, with a mission to enhance op- ment’s efforts in providing relief to by Daily Trust to cater for the IDPs Afren like a personal bank account company were without response. portunities for social change through the victims of the earthquakes that in the Northeast and to support to fund an illicit deal, with no regard The two men were found not strategic investments that improve occurred in the country. the Adamawa Peace Initiative all for the consequences.” guilty on a separate charge relating health and wellbeing, promote The Foundation also recently for the IDPs. The sum of N1 billion “Fraud corrodes confidence, to a management buyout of another quality education, and broaden eco- came to the aid of victims of the com- was also recently pledged to Victim undermines trust and damages of Afren’s business partners. Sen- nomic empowerment opportunities. munal clash between Yoruba and Support Fund for IDPs across the the reputation of the UK at home tencing is scheduled at Southwark Aliko Dangote Foundation was Hausa traders and residents in Ile-Ife, Northeast. and abroad. It is our mission to Crown Court for Monday 29 Octo- however incorporated in 1994 as a Osun State with a donation of N50 •Continues online at bring those committing this crime ber at 10.00am. charity in Lagos, Nigeria. 20 years million and also also donated N500 www.businessdayonline.com PIGB, 13 other critical bills at risk as National Assembly goes on recess again OWEDE AGBAJILEKE, Abuja tees will quickly go and do oversight resumption since October 9. However, only the Electoral Act to hold the inaugural meeting since of the MDAs, to see whether previous The bills which Buhari declined (Amendment) Bill was passed by our committee was constituted. fter resuming from an 11- loans have been properly utilised. assent to include; the Petroleum both chambers. While the Senate I think it is all politics. The Senate week recess on October “And also, budget implementa- Industry Governance Bill (PIGB), passed its version on Tuesday, the leadership wanted to be seen to have 9, the National Assembly tion of 2018 and also the social Stamp Duties (Amendment) Bill, In- House of Representatives passed its done something in response to the announced yesterday that intervention programme. All our dustrial Development (Income Tax own on Wednesday. rejected bills, without really doing itA is embarking on another two- committees, during this period, will Relief Amendment) Bill, National Re- Senate President Bukola Saraki, anything”. week suspension of plenary that carry out the necessary oversight and search and Innovation Council (Est.) had on September 10, 2018, an- Of the bills pending, the potential could disrupt the passage of the come back to present their reports Bill, National Institute of Hospitality nounced the setting up of a technical non-passage of the Petroleum Indus- much-awaited Petroleum Industry when we resume plenary.” and Tourism (Est.) Bill and National committee to review 15 bills rejected try Governance Bill (PIGB) under Governance Bill (PIGB) and 13 other The suspension of plenary has Agricultural Seeds Council Bill. by President Buhari. this current administration is seen to critical bills rejected by President raised fears that all the 15 bills rejected Others are the Chattered Insti- The committee chaired by David continue to cost the country heavily. Muhammadu Buhari. by President Buhari, on which much tute of Entrepreneurship (Est.) Bill, Umaru (APC, Niger State) was how- Presenting the 2018 Nigeria Senate President Bukola Saraki legislative work has already been Electoral Act (Amendment) Bill, ever not given a timeframe to submit Banking Sector Report in Abuja on made the announcement of the invested, will no longer be passed. Advance Fee Fraud and Other Re- its report. Monday, Group Managing Director two-week suspension of plenary on Although the President had com- lated Offences (Amendment) Bill, BusinessDay reliably gathered of Afrinvest, Ike Chioke, disclosed Wednesday. municated his decision to withhold Subsidiary Legislation (Legislative that two weeks after the committee that Nigeria has lost over $200 bil- “Because of the expediency and assent to 15 bills when the National Scrutiny) Bill, Nigerian Maritime was announced, it is yet to sit. lion worth of investments in the last demand from the Executive that we Assembly was on its annual recess, Administration and Safety Agency A member of the committee who ten years, due to non-passage of the approve new loans, we did it but with both chambers reconsidered and (Amendment) Bill, as well as five spoke on condition of anonymity, Petroleum Industry Bills, of which the understanding that our commit- passed only one of the bills - upon constitution amendment bills. told BusinessDay that, “We are yet the PIGB is one of them. Thursday 25 October 2018 BUSINESS DAY 3 4 BUSINESS DAY Thursday 25 October 2018 Thursday 25 October 2018 BUSINESS DAY 5 6 BUSINESS DAY C002D5556 Thursday 25 October 2018 NEWS FCTA releases N50m counterpart fund as World Bank earmarks $6,075,258.2 for CSDP, Fadama III JAMES KWEN, Abuja Muhammadu Buhari, to di- Babagana Adams, desk versify the economy through officer, FCTA Community ederal Capital Ter- restoring the priority place of Social Development Projects ritory Administra- agriculture and empowering (CSDP) in a performance re- tion (FCTA) has rural farmers. The initiative port presented at the meeting, concluded plans was hinged on ramping up said the World Bank had ear- to release the production and developing marked $6,075,258.2 towards Ffirst tranche of N50 million value chains in the four se- the execution of various CSDP counterpart fund for the ex- lected staple crops of rice, sor- and Fadama III projects un- ecution of World Bank and ghum, cassava and tomatoes.” der the 2018 project cycle. Fadama III projects envis- aged in 2018 for the Federal Capital Territory (FCT). FCTA in 2017 released N113 million backlogs of counterpart funds for the commencement of the World Bank Fadama III project in the FCT in which over 3,500 farmers were registered. Muhammad Bello, FCT minister, stated this in Abuja while declaring open the World Bank Country Portfolio Performance Review Meeting (CPPR) for the bank’s assisted projects in the Northern re- gion. Bello, who was repre- sented by his chief of staff, Muhammed Mai-Borno, pledged the commitment of the FCT administration to making funds available to- wards the realisation of the goals of the World Bank as- sisted projects in the territory. According to the minister, “This was in keeping with the agenda of the Federal gov- ernment, under President Thursday 25 October 2018 BUSINESS DAY 7 8 BUSINESS DAY Thursday 25 October 2018 Thursday 25 October 2018 C002D5556 BUSINESS DAY 9 10 BUSINESS DAY C002D5556 Thursday 25 October 2018 comment is free COMMENT Send 800word comments to [email protected] Corruption and the environment of accounting and auditing in Africa no single accepted definition of In terms of the level of corrup- through the promotion of trans- corruption, it has many forms tion among these 13 countries, parency. However, the reverse is with serious implications on “the Botswana was found to have the the case in most developed and economy, development, politics, There is no doubt that lowest level of corruption with developing countries. society, institutions and welfare ‘ Nigeria having the highest level Therefore, the attainment of a of citizens in the nations” wher- the presence of strong among the countries investigated quality accounting and auditing ever it exists. using Transparency Internation- environment will go a long way AKINTOLA OWOLABI The severity and persistence institutions in Africa will al’s CPI Index. However, in terms in curtailing corruption. While of bureaucratic corruption has of the observance of standards it is by no means an easy task to Dr Owolabi is a faculty member of continued to engage the atten- enhance the quality of the and codes of accounting using ensure compliance to the dictates the Lagos Business School tion of governments at national, accounting and auditing World Bank’s ROSC, Tunisia is of ethical accounting and audit- international, and inter-govern- ranked high with a score of 64% as ing, however, determination and mental levels. Various develop- environment which will against the score of 18% for Mau- consistency in the quest to curtail mental agencies and institutions ritius which is the lowest among corruption will go a long way. he scourge of corrup- such as the World Bank and the go a long way in reducing the 13 countries. This shows that Imperatively, the quality of tion has in the last cou- International Monetary Fund, corruption, and promoting there is a high level of compli- accounting and auditing envi- ple of decades, gained and non-governmental organi- ance to accounting standards in ronment is a stimulus that could prominence in public sations (NGOs) like Transpar- the attainment of economic Tunisia as compared to Mauritius reduce the impact of corruption. discourse, due to its ency International (TI), have ex- prosperity in Africa and the rest of the other countries Institutions need to be strength- seeminglyT pervasive presence pressed concern on the subject investigated. ened to attain this. The enactment in society and in diverse econo- of corruption by initiating and In addition, a study on the and enforcement of rule, code ob- mies and cultures. This can be funding research focusing on linkage between the World Bank servance, good ethical behaviour, attributed to factors such as lack the extent, causes, consequences ROSC and Transparency Inter- and desire to act in the pursuit of of proper governance and ethi- and cures of corruption. national CPI’s ranking for the the common good are some of the cal challenges inherent in some Scholars have also discussed the US and the’ UK. Accounting thirteen (13) countries within requirements that are needed to corporations and governments. the subject of corruption with was found to be at the forefront of 2001-2007 revealed that there is eradicate corruption. Corruption is a problem that a view to identifying its forms, the perpetuation of corruption in a positive relationship between There is no doubt that the transcends race and geographi- impact and cures. However, these organizations. There is also the quality of the accounting and presence of strong institutions cal boundaries. Therefore, the looking at it from accounting the case of Nigeria, a developing auditing environment and the in Africa will enhance the quality diversity of research on the phe- and auditing perspectives may country, which is being affected by level of corruption discovered of the accounting and auditing nomenon is understandable form the basis for proffering fraudulent auditing and question- among the countries. It was also environment which will go a long with diverse views from different adequate solutions. The general able corporate governance such observed that the World’s poorest way in reducing corruption, and fields such as political science, assumption is that there is an as the cases reported for corporate nations are the most corrupt since promoting the attainment of eco- sociology, ethics, accounting, and inverse connection between ac- organizations like Unilever PLC, corruption seems to thrive in poor nomic prosperity in Africa. general management. The ques- counting practice and the level of Unipetrol PLC and Cadbury PLC. environments. tions that have been asked and corruption. However, the reverse The comparison of the meas- The World Bank ROSC discov- • This article was originally pub- somewhat answered from these may be the case going by the ures of accounting and auditing ered several deficiencies in the lished by Dr Akintola Owolabi in different perspectives include: number of financial scandals at of different African countries us- standard of accounting and audit- the International Journal of Criti- What is corruption? What causes the national and international ing the World Bank’s reports on ing practice in most of the African cal Accounting (2011, Volume 3, corruption? What is its impact and levels which alludes to the fact the Observance of Standards and countries they investigated. The Issue 2/3, pp.220-234), and has how can the menace be cured? that corruption also plagues Codes (ROSC) and that of Trans- same is also true for Transpar- been adapted and updated for you Corruption involves the use of the accounting profession. The parency International (TI) Corrup- ency International’s CPI whose by the Christopher Kolade Centre public property for private gains. financial scandals bother on tion Perception Index (CPI) for 13 result shows that there is a high for Research in Leadership and Like a cankerworm, it has eaten corporate governance chal- African countries show that there level of corruption in Africa when Ethics (CKCRLE) at Lagos Busi- deep into the fabric of various so- lenges and the quality of finan- is a positive link between account- compared to their counterparts ness School. CKCRLE’s vision is cieties in Africa. There is no doubt cial reporting and auditing - all ing practice and corruption. The in developed countries. Thus, creating and sharing knowledge that corruption reduces moral products of a country’s standard countries whose accounting and the correlation of the parameters that improves the way managers values, undermines corporate of accounting and auditing prac- auditing environment were com- of the two reports (ROSC and lead and live in Africa and the social responsibility, creates and tice. Examples of corporate scan- pared with their level of corruption CPI) show that there is a positive World. You can contact CKCRLE nurtures massive socio-political dals in the developed world were are Botswana, Egypt, Ethiopia, relationship even though the rela- at [email protected]. and economic dislocation with found in organizations such as Ghana, Kenya, Malawi, Mauritius, tionship is weak. The expectation its consequential failure of demo- Enron, WorldCom, Adelphia Morocco, Nigeria, South Africa, is that accounting and auditing Send reactions to: cratic governance. While there is Communication and others in Tanzania, Tunisia and Uganda. should help reduce corruption [email protected]

CLEM UGORJI Maternal and infant mortality in West Africa – beyond the numbers Ugorji is a public policy analyst and the Public Affairs, women and 16 babies. In Nigeria, significantly. Unfortunately, in most before their lives are cut short. Un- tainable Development Goals) and Communications & Sustain- the statistics are even higher, at parts of West Africa, these essentials doubtedly, maternal and newborn an NGO, Medshare International ability Director for Coca-Cola 814 women and 34.1 newborns, are available to a small percentage. deaths affect all of us and we cannot Inc. With a focus on promoting West Africa. respectively (UNICEF 2018 Re- In remote areas of the region, begin to quantify their impact. safe birth through strengthening port). In 2016, Nigeria accounted where majority of the births that make This unacceptable situation is one the capacity of our hospitals, the for 9 percent of newborn deaths up these statistics occur, there are of the many societal challenges that safe birth initiative will support the globally, behind only India and limited healthcare facilities and skilled governments alone cannot effec- government in three key areas to he pain of childbirth Pakistan, according to UNICEF. birth attendants. Pregnant women in tively address. It is therefore encour- help doctors and nurses in target has been described as The statistics for maternal mortal- those areas complain about the cost of aging that stakeholders at global and public hospitals to minimize ma- equivalent to 20 bones ity are worse; in 2015, 19 percent treatment, the distance of the health local levels, including many private ternal and newborn deaths: pro- getting fractured at a time, of women who died during child facility and attendant transportation sector players, are standing up to be viding vital maternal and neonatal aT level slightly greater than the 45 birth in the world were in Nigeria, costs, as well as the unavailability of counted in the fight against maternal medical equipment and supplies; del (a subjective measure of pain) with the country being regarded as medical personnel and equipment and newborn deaths. At Coca-Cola, training biomedical technicians/ limit of pain a human can endure. one of the most dangerous coun- during visits. Only slightly above we are fostering partnerships with engineers to improve equipment With this unique experience comes tries in the world for childbirth one-third of births in the country are some governments across the West maintenance and uptime; and inexplicable joy and the pain is (Joint Maternal Mortality Report attended by doctors, nurses, or mid- Africa region to improve the status reactivating abandoned medical momentarily forgotten. But not in by WHO, UNICEF, UNFPA, World wives; the rest takes place at home or quo. The Safe Birth Initiative (SBI), equipment in hospitals which are all cases. The curtains may fall on Bank Group, and the United Na- in traditional birthing centres, where our new community wellbeing wasting away at the expense of the the mother or baby or both, and tions Population Division). complications cannot be managed, programme to support efforts by precious lives of mother and babies the long nine-month wait ends in About 80 percent of the major leaving the statistics on newborn national governments to reduce the for whom they were procured in anguish with a psychological pain causes of newborn deaths – com- deaths uncaptured, in most cases. alarming numbers of women and the first place. that can never be quantified, not in plications related to preterm birth These newborns and women are newborns who die from birth-related Over the next two years, the words or numbers. and low-birth-weight, infections not just statistics. There is value in eve- complications every day, is one more safe birth initiative will focus on Maternal and new-born mortal- such as sepsis or pneumonia and ry human life, but more so children. investment through which we are 10 leading referral institutions ity ratios, that is, the rates at which asphyxia (lack of oxygen at birth) – They add beauty to our world – their determined to make a difference in comprising university teaching women or babies die from birth- are preventable. The same goes for innocence, their hopes and dreams. our communities and help make the hospitals, federal medical centres related complications, in West maternal deaths, which are mostly They form the very foundation on SDGs a reality. and general hospitals across the Africa are among the highest in caused by sepsis, obstetric haemor- which we build our society. They This initiative is being piloted in country. Pregnancy gives life and the world. UNICEF reports that the rhage or bleeding, unsafe abortion, provide the fresh canvas on which we Nigeria and Ivory Coast. In Nigeria, should not take lives. We can all maternal and newborn mortality obstructed labour and pre-eclamp- can repaint the future of our nation. it is implemented as a strategic help to make this a reality in our rates in the West and Central Africa sia complications. In the presence In these neonatal mortality statistics, golden triangle partnership involv- communities, so that our mothers region are 679 women per 100,000 of skilled medical personnel and we could have lost the scientist who ing Coca-Cola, the government and babies come home alive. live births and 31 babies per 1,000 with access to healthcare facilities would invent a cure for cancer, the (the Federal Ministry of Health births, respectively. This is in sharp during pregnancy and at the time president we yearn for, and more; and the office of the senior special Send reactions to: contrast to the global average of 216 of birth, these numbers will reduce individuals with boundless potentials assistant to the President on Sus- [email protected] Thursday 25 October 2018 C002D5556 BUSINESS DAY 11 comment is free COMMENT Send 800word comments to [email protected] What the end of globalization means for Nigeria on the European Union, and so tion that it cannot feed or create to extract a fair deal from such did Marine Lapen, the right wing meaningful employment for – a large economies? Currently, The French politician. text book recipe for unavoidable United States have turned up Of course, the relocation of chaos. To avert this crisis, Africa, the heat on Rwanda for raising factories in the west to coun- Africa, led‘ by Nigeria led by Nigeria must negotiate tariffs on imported used closed tries like China, Indonesia and must negotiate its own its own continental trading and from America (something the India have had serious impact economic system, within Africa, American trade department say AYODELE ADIO on local economies in the West. continental trading that will encourage more trade could cost their economy 40,000 Adio is a public affairs analyst Light manufacturing jobs in their among member states, but more jobs), in move to protect local thousands have undoubtedly and economic system, importantly, to forge a unifying production and encourage in- been lost to china and hence, the within Africa, that will front in major negotiations with dustrialization. President Trump growing resentment towards glo- Europe and Asia. is now taking a pound of flesh by balization. In America, as in the encourage more trade As at today, Africa intra-re- denying the Rwandans certain ex- never knew this day would West, the unemployment crisis is gional trade makes up about 18% port privileges via the AGOA deal. come – when an American real, making easy recruits for the among member states, of all exports, which when com- What is quite intriguing here, is president would signal, ‘globalization must end’ cam- but more importantly, to pared to Asia (59%) and Europe that east African countries like before the whole world, paigners. But should the Leader (69%), is abysmally low. Talks are Kenya and Tanzania, have in re- standing on the platform of the free world, on account of forge a unifying front in however on going among mem- cent past made such bold moves ofI an institution they built, the these hitches, step away from a ber states to raise the percentage to restrict importation and boost end of globalization. “We reject global order that has made the major negotiations with of trade within Africa via the Af- local production of clothes but the ideology of globalism and world a lot more prosperous and Europe and Asia rican free trade and continental had to buckle under the pressure accept the doctrine of patriot- stable? Think of it, in 1979, only agreement (a single continental of the Americans because their ism” Donald Trump said, at the about 31 countries were growing market for goods and services, economies could not survive the recent UN General Assembly, at 3% or more per year but by with free movement of business backlash. Imagine the African while addressing world leaders. 2007, about 124 countries were vision to rejig the global system persons and investments). Even continent as a block negotiating Sad as it may seem, this idea has now growing at that pace. In this and make it work’ for all. though major countries, like Ni- tariff increase on used clothes been long coming. President same period, quality of life has While Trump re-echoed his geria, have hesitated to join the and sharing the risks? Much Trump, as with other right wing improved, absolute poverty has anti-globalism rhetoric, I couldn’t caravan, in a bid to protect local more progress will be achieved populists in Europe, have, in fallen and the level of inequality help but ponder on the conse- production, I firmly believe that in that regard. Africa no doubt recent times, been fiddling with has also declined. quences of a de-globalized world such an agreement is in the long has one of the finest demogra- protectionist ideas, and in the By all accounts, though not for Africa and particularly Nigeria. term strategic interest of African phy in the world today with mil- case of America, a retreat from without flaws, the 1944 Bret- The remarkable growth Africa has countries, because it could see lions of young and working age global affairs. This explains why ton Woods conference, that enjoyed in recent times have been intra-African trade move from people which must be exploited immigration has become a ‘hot established a global system of largely tied to a global system about 18% to 55% by 2022, with via deliberate policies, coopera- button’ in the West, costing financial and monetary manage- that distributes wealth (albeit an estimated combined GDP of tion and planning. We will have several politicians their political ment, to encourage multilateral unequally) and encourages trade 29 trillion dollars by 2050. to move away from a resource career. It goes without saying, trade and economic coopera- (even though deeply flawed). More importantly, there is driven economy where prizes are that globalization has become tion, has lived up to its mandate. Truth be told, the greatest threat a need to negotiate as a bloc determined by the international the punching bag for politicians There is however no doubt that to African development will not to avoid getting beat down by market towards value creation, who have been unable to raise this global system has left sev- just be the surge in technological larger economies with smarter aided by huge investments in living wages or create new jobs eral thousands, if not millions advancement that could poten- bureaucrats. Instructively, Af- human capital development and and for those seeking to ride behind, and hence, due for re- tially eliminate low skill jobs in rica’s combined GDP which is a strong trade policy. on the fears of people to power. forms. The world needs America favor of machines, but the rise of about 1.5 trillion dollars is less Except we show leadership, “Those immigrants are the ones but America also needs the rest nationalism in the West. When that the GDP of Germany, a and now, Africa might end up a taking your jobs”, - they yell at of the world. And so Western Europe shuts it boarders (this is single country in Europe. How carcass for the world to feed on. campaign rallies. The Brexetiers leaders led by the Americans no longer a matter of ‘if’), Africa then would you expect a country blamed the problem of Britain must find the courage and the will be left with a huge popula- like Zambia, Eritrea or Djibouti Send reactions to: [email protected] Ndi Igbo must support Peter Obi vantageous to the Igbo. It makes als and conservatives, conformists politics. However, despite their support of Chuba Okadigbo. The possible the elevation of an Igbo and nonconformists, unionists political hues and bents, they delegation was instructed to stay to an office no Igbo has held and separatists, etc - towards a have a consensus, which is, ac- away from Aso Rock. They were since 1983, and increases the common political goal. The com- cording to SG Ikoku, “Yoruba mandated to go straight to the chances of an Igbo presidency mon political goal of Ndi Igbo Irredentism”. National Assembly, deliver the in 2027. The Igbo cannot let this in the 2019 presidential election On the other hand, the Igbo, Ohaneze directive to the Igbo opportunity slip through their is the election of the Atiku/Obi for long, had no consensus. senators, and return immediately TOCHUKWU EZUKANMA hands. A number of Igbo politi- presidential ticket. However, with the emergency to Enugu. On getting to Abuja, Tochukwu Ezukanma writes from Lagos, cians have raised objection to While there are different po- of Obi as the PDP presidential they could not resist the magnet- Nigeria Atiku’s choice of Obi as his run- litical perspectives and persua- candidate, divergent Igbo politi- ism of Aso Rock; they went to Aso [email protected] ning mates. These individuals sions among the Hausa/Fulani, cal views and interests have coa- Rock, and President Obasanjo are entitled to their opinions. they have a consensus, northern lesced into a consensus: support sweet-talked them and weakened However, as the Igbo as a people hegemony. The political con- for Obi. All Igbo, including the ag- their resolve to rally Igbo senators have resolved to support Peter servatism of Ahmadu Bello, Tafawa grieved politicians, must support in defense of Chuba Okadigbo. Obi, every Igbo must support Belewa and Shehu Shagari was Obi. Any Igbo that, for whatever Subsequently, Obasanjo ousted him. Those that refuse to do so conspicuously at variance with reason, undermines the Igbo pre- Okadigbo. Lamentably, the mem- must be severely punished. the quasi-liberal politics of Aminu ferred presidential ticket, Atiku/ bers of this delegation that be- t is most exhilarating that While I believe in individual Kano, Abubakar Rimi and Baral- Obi, must be severely punished. trayed the trust reposed on them as the Peoples Democratic freedom of thought and expres- abe Musa. However, irrespective A major problem of the Igbo is the by Ohaneze, and by extension, Party (PDP) primaries end- sion, I am also conscious that, of their political strand and af- inability to punish those, who, in Ndi Igbo returned home and were ed, the PDP presidential for the public good, there is filiations, their political lodestar the service of the adversaries or not punished. Icandidate, Atiku Abubakar, chose sometimes the need to rigor- remains the same: northern domi- furthering of personal ambitions It is high time the Igbo institut- Peter Obi as his running mate. ously subordinate the individual nation of political power in Nigeria. undermined the collective good ed stern measures for punishing That choice has been character- to the group. It is a consensus The Yoruba do not speak with of the Igbo. At the PDP conven- errant and recalcitrant Igbo that, ized as a masterstroke by some that strikes the delicate balance one voice. Some of the most tion at Jos in 1998, the Hausa- in pandering to selfish interests, political pundits because Peter between individual freedom of ardent critics of the Obasanjo speaking Jim Nwobodo undercut subverted the collective good of Obi brings so much on board. He choice, thought and expression, presidency were Yoruba. The Gani the Igbo consensus presidential the Igbo. For the 2019 presidential has already distinguished him- on the one hand, and the public Fahimiwimi/Beko Ransome-Kuti candidate, Alex Ekwueme. Or- election, every Igbo must subor- self as a leader. In addition, his good, on the other hand. It is im- political activism was not always dinarily, he should have been dinate their individual interests success in business, demonstrat- portant to note that consensus in conformity with conventional strictly punished. Unfortunately, and ambitions to the collective ed administrative prowess and is not “speaking with one voice”. Yoruba politics. Moshood Abiola after the convention, he returned Igbo political goal: the emergence understanding of the economy Unlike speaking with one voice, and Olusegun Obasanjo were home, and was not penalized. of Peter Obi as the vice president compliments and supplements consensus allows for diversity of protégés of the northern pow- According to a high rank- of Nigeria. Any Igbo that subverts Atiku’s abilities and skills. He is opinions and ideas. It provides erbrokers and not disciples of ing Ohaneze member, during this consensus on support Peter an outstanding vice presidential an overarching ideological/po- Obafemi Awolowo. Their broad the standoff between President Obi must be severely punished: material. litical stance. It gives a people a political outlook contrasted with Olusegun Obasanjo and Sen- banished from Igbo land. Secondly, the choice of Peter unified sense of purpose, thus, Awolowo’s narrow tribal poli- ate-President Chuba Okadigbo, Obi as the PDP vice presidential nudging individuals with differ- tics, and they did not flinch in Ohaneze sent a delegation to Send reactions to: candidate is politically most ad- ent political persuasions - liber- denouncing Awolowo and his Abuja to rally Igbo senators in [email protected] 12 BUSINESS DAY C002D5556 Thursday 25 October 2018 Editorial

PUBLISHER/CEO Frank Aigbogun The threat of poor labour relations at PENCOM he news from even more disturbing. Weeks Federal Character Commis- onus is on the management of EDITOR and around some after demonstrations by hun- sion in a newspaper report of 5 PENCOM to ensure transparen- Anthony Osae-Brown vital government dreds of people, including staff, September 2018 contravening cy in all its operations, including agencies has against the alleged unfair sus- the suspension of appointment. in particular the management DEPUTY EDITORS been less than pension of the appointment of Mr Abdullahi Idris of the FCC of its human capital. Best prac- John Osadolor, Abuja salutary.T They speak to chal- 43 employees of the pension stated, “The FCC had no reason tice in organisation manage- Bill Okonedo lenges with management, fund administrator, there has to order the cancellation of a ment proclaims the need to poor industrial relations and been no formal response by legitimate recruitment process; manage the human resource NEWS EDITOR even impunity in the man- the management. The work- FCC frowns at organisations in such a manner as to make it Patrick Atuanya agement of matters that re- ers allege that the Acting Di- which, after being duly issued a contributor and enabler of or- quire careful and consider- rector General Hajia Aisha with Certificate of Compliance, ganisational mission and vision ate handling. It is disturbing. Dahir-Umar suspended staff on will turn around to cancel same rather than a stumbling block. EXECUTIVE DIRECTOR, OPERATIONS Two agencies in the news wrongful grounds. without genuine reason”. PENCOM’s recent notice Fabian Akagha have been the National The Acting DG reportedly Allegations that the issue affirming that its Management Health Insurance Scheme claims to have acted based at PENCOM is merely a witch- and staff do not accept or re- EXECUTIVE DIRECTOR, DIGITAL SERVICES and the National Pension on a 19 April 2017 letter from hunt to undo the appoint- ceive inducements and alerting Oghenevwoke Ighure Commission (PENCOM). the Chairman of the House of ments of a predecessor are stakeholders to the possibility Rumblings in the NHIS al- Representatives Committee on disturbing. Statistics of the of breaches is alarming. It at GENERAL MANAGER, ADVERT lege corruption against the Federal Character, Hon Ahmed appointments, as argued by best points to a chink in the Adeola Ajewole Executive Secretary, high Idris, directing PENCOM to the distressed young people armour. PENCOM stated, “The handedness and impunity. suspend any employment. She now in limbo, point to geopo- members of the public, particu- ADVERT MANAGER The Chief Executive scoffed alleged that the previous man- litical balance. Even the Fed- larly pensioners and pension Ijeoma Ude at his supervising Minister agement of PENCOM engaged eral Character Commission contributors are, therefore, and now scoffs at the Board. staff without obtaining the Cer- frowns at the action. reminded that no financial FINANCE MANAGER He reportedly affirms that tificate of Compliance from PENCOM is one of the suc- or other form of inducement Emeka Ifeanyi only the President who ap- the Federal Character Com- cesses of governance reforms in should be given to anybody pointed him can discipline mission (FCC). The FCC, in Nigeria. The reforms established to facilitate payment of retire- MANAGER, CONFERENCES & EVENTS him. consequence, did not approve “robust legal and institutional ment benefits, issuance of Obiora Onyeaso At least on his part, the the appointments. frameworks for the administra- Compliance Certificate or en- management of NHIS has The protesters disagree. They tion of pensions in Nigeria.”. As gagement as vendor or service SUBSCRIPTIONS MANAGER now offered a response to point to the fact that PENCOM PENCOM asserted in a recent provider. Indeed, members Patrick Ijegbai the traducers of Prof Usman carried out aptitude tests and statement, “The reform has in- of the public are earnestly re- Yusuf. NHIS management interviews in December 2016 stituted transparent processes quested to immediately report CIRCULATION MANAGER claims that rather than cor- and issued employment letters in the operations of the National to the Commission, anyone John Okpaire ruption, Prof Yusuf is a victim to successful employees only in Pension Commission (the Com- who makes any demand for any of calumny by persons whose March 2017 after receiving the mission) and the Pension Fund form of inducement in what- DIGITAL SALES MANAGER route to unearned income he Certificate of Compliance from Administrators (PFAs) in the ever form or disguise.” Linda Ochugbua has successfully blocked. They FCC. The letter from the House retirement benefits payment PENCOM should do every- allege that this includes the of Representatives came one process, enforcement of com- thing possible to ensure har- GM, BUSINESS DEVELOPMENT (North) chairman and some members month later. Furthermore, they pliance with the provisions of monious industrial relations Bashir Ibrahim Hassan of the Board and health man- point out, no one has queried the Pension Reform Act (PRA) to remove room for the little agement organisations the the issuing authority of the ap- 2014 as well as other operations foxes that spoil the vine. One of GM, BUSINESS DEVELOPMENT (South) NHIS supervises. The NHIS is pointments. Instead, manage- of the industry.” the routes there is to urgently Ignatius Chukwu a riddle that government and ment descended on the workers All stakeholders must ensure tackle the challenge of matters the media need to unravel for and suspended their appoint- that PENCOM continues to at- arising with the suspended 43 HEAD, HUMAN RESOURCES the benefit of Nigerians. ments. They cite the statement tract positive testimonials as a staff and other labour rela- Adeola Obisesan The matter of PENCOM is by the spokesperson of the fruit of reform in Nigeria. The tions matters.

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

ENQUIRIES NEWS ROOM 08023165438 08169609331} Lagos 08033160837 Abuja ADVERTISING 01-2799108 08034743892 08033225506 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 MISSION OUR CORE VALUES STATEMENT BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, DIGITAL SERVICES Entrepreneurial and Purpose-Driven. 08026011296 To be a diversified provider of superior • The Fourth Estate: We take pride in being guarantors of liberal economic thought www.businessdayonline.com • Credible: We believe in the principle of being objective, fair and fact-based The Brook, business, financial and 6 Point Road, GRA, Apapa, Lagos, management intelligence • Independent: Our quest for liberal economic thought means that we are independent of private and public interests. Nigeria. across platforms acces- • Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do 01-2799100 sible to our customers • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share LEGAL ADVISERS anywhere in the world. our vision, while treating them with respect and fairness. The Law Union www.businessdayonline.com Thursday 25 October 2018 BUSINESS DAY 13 CityFile

Governor of Edo Unrest: NSCDC arrest fake State, Godwin Obaseki (2nd r), soldier in Kaduna supported by rep. peratives of the Nigerian Se- of Governor of Lagos State, Idiat curity and Civil Defence Corps Oluranti Adebule, O(NSCDC), Kaduna State com- Deputy Governor mand has arrested a fake soldier with (r), and wife of Nigerian Army uniforms and police beret Governor of Lagos in Kaduna metropolis. State, Bolanle Orndiir Terzungwe, the com- Ambode (2nd l), to mand’s spokesperson disclosed this present the Inspi- in a statement in Kaduna. According rational Woman of to Terzungwe, the suspect who gave the Year award to his name as James Abelagi Tersoo, 25, Toyin Sokefun-Bel- was apprehended during a stop and lo, aka TY Bello, search operations along Jos Road in during the opening Kaduna. ceremony of the The suspect who claimed to be work- 18th National ing with a private guard (name withheld), Women’s Confer- was heading to Kakuri area of the me- ence of the Com- tropolis when he was arrest. mittee of Wives of “When searched, his bag contained Lagos State Of- one pair of Nigerian Army Camouflage, ficials (COWLSO), black boot, one green beret with police with the theme, “Strengthening Our crest and two belts (black and white). Collective Impact”, “The operatives who escorted the sus- held in Lagos. pect to his residence located at Jos Road during investigation, also recovered an- other pair of army camouflage uniform, two camouflage jungle hats, one pair of army uniform, one army winter cap, one army neck muffler, two army knee Ambode, Obaseki want women to guards, one army cardigan, two army crested T-shirts and a pair of private guard uniform.” Terzungwe said the commandant of add value to humanity the corps, Madu Bunu, had on Sunday, ordered full deployment of officers and JOSHUA BASSEY for unity of purpose and action”. and socially. men of the command to ensure law and Expressing the optimism that this year’s On activities of COWLSO in the last three conference would be impactful as usual, years, Bolanle said the association had ex- order and enforcement of 24hour curfew agos State governor, Akinwunmi Ambode said going by the quality of speakers ecuted many health-related projects, which imposed on Kaduna town and environs. Ambode and Godwin Obaseki of assembled by the organisers of the event, it had recorded impressive impact on the health The curfew followed upsurge of vio- Edo State, have charged women to was evident that the programme had been de- of babies, children, youths, women and the lence in some parts of Kajuru, Chikun, continue to engage in tasks that will signed to add value to women and the society. aged ones, including the upgrade of the Ear, Kaduna-North and South and Igabi local help add more value to humanity. On his part, Obaseki, who declared the Nose and Throat (ENT) Department of the government areas. LBoth governors spoke at the opening of conference open, said the event over the years Lagos Island General Hospital, Odan while also the 18th edition of the national women’s con- had helped in connecting the family with gov- sponsoring goiter operation for some women ference at the Eko Hotel & Suites in Victoria ernment, as wives of government officials had two years ago and donating Portable Otoread Killings: Group wants security Island, Lagos. The annual event is organised always rallied support for their husbands in OAEs equipment to four general hospitals - by the Committee of Wives Lagos State Officials the smooth running of government. Badagry, Ifako-Ijaiye, Ikorodu and Gbagada beefed up on Numan-Jalingo road (COWLSO). “This is a powerful network. It is powerful General Hospital last year. Ambode who was represented by Idiat Ade- because it serves as opportunity for govern- She said last year, the committee also damawa Chapter of Muslim Coun- bule, his deputy, said although women have ment to reach its people in another perspective donated an Intensive Care Unit (ICU) to the cil has called for the deployment been working to complement their spouses, of what is going on across the state.” Lagos Island Maternity, while this year, it has such cooperation and collaboration, nonethe- of adequate security personnel Obaseki commended COWLSO for its donated portable Otoread OAEs equipment to A less, needed to be scaled up to have positive intervention in the health sector through Shomolu and Alimosho General Hospitals, as along Numan-Jalingo road in Taraba and impact on the larger society. Adamawa States to check the incessant donations of health equipment to hospitals well as two Transport Incubator Ambulance, He said: “COWLSO has worked ceaselessly as well as making significant contributions for to Gbagada General Hospital and Lagos Island killings of innocent travelers. to complement the efforts of their spouses on the health being of the less privileged in the Maternity Hospital. Abubakar Sahabo, chairman of the government. We are proud of your achieve- society, adding that the committee served as “These facilities aptly described as ‘womb council who briefed newsmen, said cer- ments particularly in the area of giving hope inspiration to many states, as such ideas had on wheels’, are to be deployed to convey preterm tain youth had continued to hunt and kill and succour to the less privileged through been replicated in many states. babies, also known as ‘premature babies’, to gov- people on transit. donations both in cash and in kind. Bolanle Ambode, wife of Lagos State gov- ernment facilities equipped with neo-natal ICU, Sahabo lamented that many travelers “The knowledge and good spiritedness ernor and chairman of COWLSO, described to save their lives. The ‘Transport Incubator’ is fully had lost their lives along the road, the exhibited in the last three editions of the con- women as pillars of growth and development equipped with life-support gadgets and other con- latest incident occurring on October 15 ference are values that I cherish always. The of their countries and have in many ways veniences, making it a womb-like environment for theme for this year’s conference: ‘Strengthen- played different roles to facilitate the progress the baby, to enhance its chances of survival while where four travelers were killed, four ing our collective impact,’ is very apt and a call injured, and five still missing. of their countries economically, politically, being evacuated to the ICU,” she said. “This is a federal road, which is sup- posedly under rehabilitation. Unfortu- nately, armed militia group have taken Monarchs task Buhari on Lagos-Seme Expressway over the place, attacking and killing in- nocent travelers at will.” Buhari on the repair of the road and I’m hope- coming from Lagos to Badagry, which is sup- He called for more practical steps by JOSHUA BASSEY with agency report ful that he will read it. posed to be 45minutes. government to secure the road for free raditional rulers in Badagry com- “We are happy about the commissioning “We are pleading that our President should and safe movement by travelers. munities have appealed to President and hand-over ceremony of the ECOWAS look into major roads leading to the gigantic The group also demanded an investi- Muhammadu Buhari to give a direc- building post. This will facilitate easy move- building. This road is our major concern now,” gation into the killings and the arrest of tive on reconstruction of Lagos-Seme ment of people and trade expansion in he said. TExpressway to facilitate movement of people. ECOWAS countries,’’ the monarch said. The Ajagun of Imeke Kingdom, Abraham perpetrators, adding that there was need Also speaking, the Aholu of Kweme King- Olatunji, urged the president to treat the road for urgent mopping of illegal firearms They made the plea at the official handover of the new Economic Community of West Afri- dom, Badagry, Sejiro Olalekan, said the pres- reconstruction as a matter of urgency. from individuals and groups in the area ence of the president was well appreciated by “The country is generating a lot of revenue as well as the disbanding of local vigilante can States (ECOWAS) Border Post by President Buhari, at Seme-Krake and Neope-Akanu in the communities. here so we should be compensated with the groups terrorising people in the name of Badagry on Tuesday. Olalekan said that it would have been more road. We the host communities are not benefit- providing security. Akran of Badagry, Aholu Menu Toyi 1, said appreciated if the President had come through ting without the road,” he said. Meanwhile, the Adamawa police that the road had become an embarrassment the road to see what Badagry indigenes were The Oniworo of Iworo, Oba Olajide Kosoko, command through its spokesman, Oth- to the entire Badagry communities. passing through on the Lagos-Seme Expressway. said that having spent a lot of money to build man Abubakar, has confirmed the latest “We are appealing to our amiable President “You cannot build this kind of gigantic the building, government should also start the incident along the Numan-Jalingo road to as a matter of urgency start reconstruction of building here and our roads will not be in order. reconstruction of the expressway. where four people were killed and four the road. As a father of all traditional rulers in “Seme is the most lucrative border we have “The President should help us to fix the Badagry, I have written a request to President but the road leading to Badagry and Seme is road. We are happy to see our number one others injured. bad. We spent more than four to five hours citizen here today,’’ Kosoko said. 14 BUSINESS DAY C002D5556 Thursday 25 October 2018 BUSINESSTRAVEL UBA, IATA partner to train travel agencies, airlines on NewGen ISS commended UBA for their support Stories by IFEOMA OKEKE and value added so far. Bankole said, “The partnership nited Bank of Africa with UBA has been one that has plc ( UBA), has or- been waxing strong, the bank can ganized a workshop improve on what it has done so far and training program and take it to another level. So far for travel agents and they’ve been supportive and have airlinesU in partnership with the been adding value to us.” International Air Transport As- “BSP was introduced into the sociation ( IATA) on the New Gen- market, this is 10 years after and we eration of IATA Settlement Systems are having a reintroduction of BSP (NewGen ISS). on another level, that why it’s called The NewGen ISS which is slated New Gen ISS New Generation of to come online December 1st, 2018 IATA Settlement Systems. This will is meant to be an improvement on address a lot of issues affecting we, the current Billing Settlement Plan travel agents over the years. One of ( BSP) system that UBA has oper- it is that we said, we don’t want it to ated for IATA for 10 years. be one side eat all, categorise travel The NewGen ISS is said to come agents, they said it was not possible, with various advantages that will but in this new era it is possible. create ease for both travel agents, “We said put multiple payment airlines and the bank providing a solution, they said it was not possible tripartite symbiotic partnership but now, it is possible. With that, that would grow all the parties. of payment because the landscape going forward from December 1st you can use your easy pay card or every travel agent will operate within Bode Aregbesola, head of UBA has changed. they would be able to participate your wallet to make payment and their own limited capacity and they Aviation Desk, who spoke at the “Before now, what you have is actively in the new process.“ you now begin to sell. will do their business successfully, event said, ”As you all know UBA is a situation where the agents make On the benefits of the new sys- “What we are saying is that the unlike before where everybody is try- the BSP Bank, that is the settlement payments bi-monthly through IATA tem, Aregbesola said, “Let me start new dispensation is of immense ing to be what they are not, which has bank for IATA and this is a very and this payment is always settled from the travel agents, the current benefits because for the travel created a lot of problems for the travel great thing the bank has achieved. by IATA. Now, with the NewGen ISS process that will expire on the 30th agents because they can sell ticket agency and the industry. So this is a “What has happened here is that what it means is that the airlines can of November, you have a situation more than they currently can in the new step in the right direction.” because of the partnership with actually receive their monies on a where you can sell tickets on behalf present dispensation and the same The sensitization lecture at the IATA, UBA has now sponsored this daily basis and UBA can settle pay- of the airlines and once you reach a thing for the banks, the bank will be workshop was delivered by Samson program which is the NewGen ISS ments for the airlines on a daily basis. particular threshold, IATA will stop able to settle more for the airlines. Fatokun, regional director, IATA program which is a new process “For the agents to be aware you from selling tickets because you The bank has also created some who said the NewGen ISS is a pro- that is happening in the industry of this process, there is need for would have reached your guarantee products and it is an opportunity for gram launched by IATA to deliver and will kick off December 1, 2018 enlightenment and that is why the threshold, but with the new pro- the bank to offer these products to faster, safer and more cost effective and there is a need for the general bank has now partnered with IATA cess, what it does is that the agent the agents so everybody is happy.” and relevant financial settlement public to be enlightened, there is to sponsor a workshop where the will continue to sell tickets seam- Bernard Bankole, National As- services and solutions to airlines a need for the travel agents to be airlines, travel agents are informed lessly because when you reach your sociation Travel Agents (NANTA) and travel agents that rely on the aware of the processes, the mode of all the new processes so that threshold, once you receive cash President, who spoke at the event IATA Settlement Systems (ISS). Turkish Airlines’ load factor reached to 83.4% in September Virgin Atlantic partners Donal Skehan urkish Airlines has recently creased by two points to 87 percent tember 2018 Traffic Results; there announced the passenger approximately. International-to- was an increase in demand and total to transform airline dining and cargo traffic results international transfer passengers number of passengers was 10per- irgin Atlantic has unveiled vegetables - building on Virgin for September and a high (transit passengers) also went up by cent and 12 percent, respectively, a partnership with award Atlantic’s industry leading sustain- loadT factor with 83.4percent perfor- three percent approximately. over the same period of last year. winning food writer & ability work. The British airline has mance. On top of the strong base Furthermore in September, Total number of passengers TV host Donal Skehan to worked in partnership with the effect of September 2017, growth in cargo/mail volume continued the reached to 58 million. The total load reinventV their dining experience Sustainable Restaurant Associa- the number of passengers, revenue double digit growth trend and in- factor improved by three points up at 38,000ft. tion (SRA) to introduce the world’s per kilometer and load factor, is an creased by 22 percent, compared to 82 percent. While international Irish native, and now LA based first framework to address the important indicator of the continued to the same period of 2017. Main load factor increased by approxi- Donal Skehan has been working challenges of sustainable inflight growing interest in Turkey and Turk- contributors to the growth in cargo/ mately three points exceeding 81 with Virgin Atlantic for 12 months catering such as: Fair Farming, ish Airlines. mail volume are Domestic Lines percent, domestic Load Factor to develop a completely new ap- Sustainable Fish & Seafood, De- According to September 2018 with 48 percent, N. America with went up by three points exceeding proach to in-flight dining. This forestation & Biodiversity, Animal Traffic Results; the total number 32 percent increase, Africa with 23 85 percent. includes a range of delicious dishes Welfare, Transparency and Waste. of passengers carried went up by percent increase and Far East with Excluding international-to-in- inspired by global destinations Donal Skehan said: “It’s such one percent reaching about seven 20 percent increase. ternational transfer passengers and focuses on sustainable, fresh a pleasure working with Virgin million passengers, and load factor Africa showed load factor growth (transit passengers), number of ingredients which bring restaurant Atlantic, as I can’t imagine another went up to 83.4 percent. of seven points, while Europe, Do- international passengers went up standard food to the skies. airline that has such a right to win in Also, Total Load Factor improved mestic Lines and Far East showed significantly by 13 percent. Cargo/ This month new “dine with this space. Together, we’re turning by 2 points, while international Load load factor growth of about two mail carried during the nine months Donal” dishes will debut in the air- the industry upside down by creat- Factor increased by two points to 83 points. also increased by 25 percent and line’s Upper Class cabins and airport ing stunning, delicious and healthy percent, domestic Load Factor in- According to the January-Sep- reached to one million tons. Clubhouses, followed by Premium food at 38,000 ft.” and Economy cabins next year. Daniel Kerzner, VP Customer Ex- Akure airport records growth in passengers’ traffic This is Donal’s first airline col- perience at Virgin Atlantic said: “We laboration and the dishes take continue to raise the bar by looking he Akure airport manager, having ten, twenty but right now we budget to get the contractors back inspiration from his best-selling outside our industry for the latest Cecilia Oguama, says pas- are having passengers in thousands, to site. cookery books, and experience trends and innovation. Donal is the sengers’ traffic has tremen- and four thousand, five thousand “We have suppliers coming to travelling the world. He is a regu- perfect partner to help us bring game dously improved with the per month” make enquiries about the cargo air- Tcommencement of flight by Air Peace On the new terminal building port, this is a known for agriculture lar host on BBC One’s Saturday changing food to the skies, and give following a partnership arrangement which was put into use about two and most of their produce are taken Kitchen and also presents; “Meals our customers an elevated experi- between the airline and the Ondo months ago, Oguama explained by road. So they come to the airport In Minutes” on RTE One and Good ence they won’t find anywhere else.” State government. that, with the sitting capacity of 100, for enquiries on the transportation of Food Channel, and hosted “Junior Earlier this year Virgin Atlan- Oguama, explained that before airports users find the terminal more their goods”, Oguama said. MasterChef” on BBC One, “Grand- tic introduced a “Mile High Tea” now, the airport recorded low traf- comfortable now. With category 06 fire tender at ma’s Boy” on FOX International and designed exclusively by master fic of about 20 passengers but was She said interest in the trans- the airport, she said the airport has “Follow Donal” on Food Network patisserie Eric Landlard for their excited that passengers’ traffic has portation of perishable goods has been able to attend to fire incidents UK & US, he also regularly appears clubhouses, and all cabins on increased. increased in the area and expressed in the state which has attracted com- on The TODAY Show on NBC. board. The latest partnership builds She said “it has increased tremen- the hope that the abandoned cargo mendations from the Ondo State The new menu items feature on Virgin’s aim to be the airline that dously, there was a time we were airport will be included in next year’s government. sustainably sourced fish, meat and doesn’t serve airline food. Thursday 25 October 2018 BUSINESS DAY 15

Huawei partners Nigerian COMPANIES universities to foster local ICT talents & MARKETS Pg. 16 COMPANY NEWS ANALYSIS AND INSIGHT Afri-invest says Nigeria must target annual growth of 7% to upscale economy

HARRISON EDEH, Abuja through the Central Bank of Ni- geria and the Federal Govern- fri-invest wants ment, there is still need to move the Federal and pricing to a more efficient sub-national gov- level wherein investors could ernments to tar- recover their investments.” get annual Gross “We have also seen the ADomestic Production growth problems in the transport sec- of 7 percent ‎per annum to tor. Inefficient transport tracks advance its economic develop- and railways, the ports conges- ment and lift millions of people tions. Non tariff challenges, out of poverty. the Apapa congestions among Ike Chioke, group manag- others.” ing director, Afri-invest West According to the economic Africa Limited made the sub- expert, “Another aspect of the mission ‎at its 2018 Nigeria infrastructure deficiency is Banking Sector Report launch the broadband penetrations‎, which had the title: An Eco- and some of the issues we nomic Agenda for the New are seeing in education and Government. healthcare. Speaking on the report, He raised further concern Chioke said, “There is growth noting that, “Human capital in revenue and profitability, development is still an issue, but there is shrinkage in loans and here Nigeria is behind being advanced to different its peers like Ghana, South sectors of the economy. In fact, Africa, Kenya, Morroco, and a if you look at the distribution of lot could be done to train our the loans, it is more on the oil L-R: Eze Daniel Okoise, chairman, Block Maker Association, River State; Adeyemi Fajobi, national sales and distribution director, Dangote human capital to be valuable, and gas sector.” Cement Plc; Funmi Sanni, route to the marketing director, Dangote Cement Plc; Ugbaja Joseph, group head, civil and building engineering, and impact on us.” He further said, “We de- Standards Organisation of Nigeria (SON), and Oare Ojeikere, group chief marketing officer, Dangote Cement Plc, during the Launch of Dangote In his earlier remarks at cided to choose this topic, be- BlocMaster Cement in Port Harcourt the event, Godwin Obaseki, cause even where we are in the the governor of Edo State said political calendar, and as the the economy is growing at a While speaking through the exchange earnings.” rate of about N360 per dollar” at the event that, “By the ac- election draws closer, it could lesser rate of about 2 percent, components of the report, he ”The Oil and Gas sector is In the power sector also, tions of the National Economic impact negatively on critical the population is growing at said, “Our reports had high- also playing in the downstream he said there are endemic is- Management, many things are economic reforms.” about 3 percent, he noted is lighted seven critical areas that side, where we are subsidizing sues there waiting for serious being addressed because there According to Ike, “This ur- unhealthy for the economy. urgently needs reforms” the petrol running into trillions reforms. You have the power are several things competing gent reform is driven by the de- He pointed out that, “For He said, “First, in the oil of naira, and this is a country sector that is unfunded; there for demands. tails explained in the economic Nigeria to transform itself, and Gas, we talked about hav- where we are not finding it is no cost-reflective tariff, there “The challenges of insecu- recovery and growth plan we need a growth of about 7 ing not passed the Petroleum easy to invest in the refineries is issue with bad infrastructure, rity, the youth bulge, the invest- of the Federal government, percent or even 10 or 11 per- Industry Bill, we have not been and yet subsidizing at our own pricing inefficiencies between ments in critical infrastructure which has laid out what the cent growth .At that point, we able to attract massive invest- expense.” the GENCOS, the TRANCOS and the heavy financial burden government needs to do, to get would witness more transfor- ment into that sector, and this The Petroleum subsidy for and the DISCOs. of the recurrent expenditure. back to the growth it requires” mative impact on the overall is a sector that accounts for this year would run as much While the World Bank is “he said. He pointed out that while economy.” up to 0 percent of our foreign as N1.6 trillion at the exchange trying to intervene with funds Lifemate marks one year Sollatek emphasises consumer safety, weeds anniversary for Warri showroom out counterfeits n line with its ‘Buy According to him, the investments, their homes ifemate Nigeria Limited, a room at Warri and customers will in terms of product selection as Original Campaign’, company owes it a duty and their lives with original leading furniture company be given 50 percent discount on the showroom which has been Sollatek products only”, he in Nigeria has celebrated its home furniture, sanitary wares, recently stocked with brand new Sollatek Ltd, a UK- to help protect the safety L furniture products with unique said. based company and of lives and properties of one year anniversary for one of outdoor furniture products and Polet further explained the furniture showroom branch- 20 percent discount on Royal designs that will make your home Ithe world’s leading manu- its customers hence the that Sollatek has been es located in Warri Delta State, furniture products. She added the envy of your neighborhood. facturer of power protec- reason for carrying out the giving customer’s fantastic price that the discount sales are a way “The new products, which re- tion devices, has embarked massive raid. established for over thirty slash in all their unique Furniture of thanking our customers for ally represent a host of offerings, on a massive consumer “Our primary focus years in the United King- cut across all our core categories products for the month of Octo- their ongoing loyalty and support sensitisation and anti- is the safety of life and of dom with a world-class ber to mark this special occasion. of the Warri showroom branch. such as Royal furniture, home pedigree for manufactur- furniture, office furniture, kitchen counterfeiting programme property. We achieve this Orebayo Ejiemhen, he com- As part of the celebration, across various markets in through the protection of ing innovative products in pany’s public relation officer Lifemate Furniture customers cabinet, Outdoor furniture, sani- the power control, energy tary wares, massage chair, Light- Nigeria. electrical and electronic who stated this anniversary press will be treated to free gifts furni- saving, temperature control briefing, said the unbeatable ture items, food and beverages, ing and Accessories. The nationwide mop-up, equipment from unreli- “Since the company’s incep- executed through a court able power, which can and solar energy sectors, price slash was to appreciate live entertainment, special pric- with products distributed customers for the continuous ing and much more. tion in 2006, the mission has order, has led to the confis- lead – and has led to – fires patronage. To top this, customer who always been to be the foremost cation of several substan- and even death. Original to 190 countries around the She advised customers to purchase furniture products provider of super quality prod- dard and counterfeit power Sollatek devices protect world. ucts and to create higher level make the 1 year anniversary of the worth N500,000.00 will get free protection products. your appliances, and your He said genuine and Warri showroom a memorable gifts of throw pillows, furniture of living through tech – enabled patented Sollatek UK innovation and offer an exten- Speaking on the back- homes from over-voltage, one with innovation for excel- purchase worth one million and ground behind the exercise, under-voltage, surge power surge protectors lence with value added furniture five hundred thousand naira sive selection of home furnish- the IP & Trademarks Rights protection and spikes are available at authorised products. will get free gifts of 2 units single ings with outstanding value. She retailers and dealers stores added that as a full-line furniture Manager, Sollatek (UK) Ltd, in electricity. The fake According to her, as part of chairs, two million furniture nationwide, noting that putting smiles in the faces of loyal purchase will get a free cabinet manufacturing company, our Thierry Polet, stated that the products, often available at goal is to provide products for exercise is in line with the much cheaper prices – do each Sollatek UK product customers, there will be a two and customer who purchased now has an ‘authentication days promotional discount sales furniture products worth more every room in every home at company’s buy original global nothing. By the time the in this month of October. The than three million will get a free multiple price points with the campaign which would help customer finds out – it’s too verification process’ where two-day discount promotional gift of furniture cabinet. ultimate goal of providing retail- customers identify genuine late. We always encourage customers can send a code ers and the consumers with more sales, is set to run from October She also added that custom- Sollatek products. customers to protect their to 38353 (Toll Free) to con- 25th -27th at the furniture show- ers should have no problems value for affordable prices. firm authenticity. 16 BUSINESS DAY C002D5556 Thursday 25 October 2018 COMPANIES & MARKETS Business Event Huawei partners Nigerian universities to foster local ICT talents

JUMOKE AKIYODE-LAWANSON which features learning of various and this will be the first time for subjects including cloud comput- Huawei to bring the program to ing, artificial intelligence, mobile Nigeria. ore than 10,000 stu- networks and big data. Tank Li, managing director of dents from 15 differ- The company has revealed Huawei Enterprise Nigeria, said ent Nigerian Univer- that at the ‘Nigeria ICT Talents these programs are in line with sities will benefit from Development Summit and Hua- Huawei’s sustainability strategy in Mdeveloping their basic Information wei ICT Competition Launch bridging digital divide, promoting and Communication Technol- Ceremony’ which will be held on skill transfer and developing a ogy (ICT) knowledge through a October 26, 2018, at the Hilton win-win situation with local com- competition organised by Huawei, Convention Center in Abuja, select munity. a global leading ICT solutions universities will also sign a Memo- “As an international ICT inno- provider in partnership with the randum of Understanding (MOU) vator, we are committed to working tertiary institutions. with Huawei to launch Huawei with our academic and industrial The competition is aimed to Authorised Information and Net- partners in Nigeria to create more cultivate local ICT talents, promote work Academy (HAINA) program opportunities for individuals, and L-R: Omojolaibi Olayinka, senior research economist; ‎ Soji Adeleye, chief executive officer, Alfc City a greater understanding of ICT, in these universities. HAINA is a businesses in the country. Through Institution; Olusola Teniola, president, Association of Telecoms Companies of Nigeria (ATCON); Iwegbu increase interest and develop a nonprofit ICT career certification programs like the ICT competition Onyebuchi, lecturer, department of economies, faculty of social sciences, University of Lagos, and healthy ecosystem for the sustain- program which aims to increase and HAINA, Huawei will continu- Segun Adeleye, president, World Stage Limited, at the WorldStage Economic Summit at the Stock able growth of the sector. employment opportunities for ously contribute to local ICT talents Exchange, Lagos Students from University of young people by exposing them cultivation and practitioners up Nigeria, Ahmadu Bello Univer- to more ICT knowledge and skills skilling, to lay a solid foundation for sity, Lead City University, America required in the job market. a healthier sectorial growth, fulfill- University of Nigeria and Federal Huawei has now extended its ment of government’s digitisation University Technology are expect- HAINA program to more than 150 strategies and stronger national ed to participate in the contest leading universities worldwide, ICT competitiveness.” Li said. Uber launches Safety Toolkit for riders and drivers ber has announced the new toolkit, include: reminds drivers and delivery partners Safety Toolkit which, over the Emergency button - With the to maintain a safe speed within the Unext few weeks, will be rolled push of a button in the app, riders, posted speed limits. These new safety out to the millions of riders, drivers drivers and delivery-partners can features will be a phased rollout, not all and delivery-partners using the app connect directly to private emergency riders, drivers and delivery partners across Europe, Middle East and Africa services and security response when will have access to the features im- The toolkit will introduce new needed through a third party private mediately. innovative features which aim to raise security supplier “With more than 15 million trips the bar on safety, and increase trans- Trusted Contacts - riders can now on the Uber app every day, there is parency, accountability and peace of easily designate five friends or family nothing more important than the mind for all users. members as “trusted contacts” and, safety of riders, drivers and couri- Since launching the app, Uber with a single tap, share their trip infor- ers. Over the last year we’ve been L-R: Femi Adesina, analyst, youth segment, MTN Nigeria; Debo Agun, senior manager, mass market has provided millions of people with mation which are easily customizable working to develop innovative segment, marketing, MTN Nigeria; Emmanuel O. Adeleye, registrar, Moshood Abiola Polytechnic, Abeokuta technology that allows them to get a in their trip sharing preferences. products that increase transpar- (MAPOLY), and Precious Minimah, analyst, Go-To-Market, Youth Segment, MTN Nigeria, at the MTN ride at the push of a button, track every Safety Centre - A new app-housed ency, accountability and peace of Pulse Campus invasion in Abeokuta recently trip with GPS technology and report safety information hub where users mind for all users. The rollout of our any issues 24/7 with a dedicated can find information on some of the new Safety Toolkit features across safety team. With the introduction key existing safety tools in the app, Europe, Middle East and Africa is of new safety features, the company including our 24/7 team, information the next step in making sure that aims to double down on safety and on the driver and the car, trip GPS- we’re helping everyone stay safe help make the Uber community safer. tracking and our rating and feedback and connected, wherever you might Features that will be introduced as system. be,” says Sachin Kansal, Uber’s part of the new rider and driver safety Speed alerts - A feature which Global Head of Safety Product. BEDC electricity restates commitment to consumer needs

IDRIS UMAR MOMOH, Benin The BEDC electricity Plc pel the management of the , boss who assured consum- company to rescheduled its he management of Be- ers of the ultimate desire of power distribution with a bid nin Electricity Distribu- the company to light up the to ensure that customers get Ttion Company (BEDC) four states with constant and power supply. has restated its commitment regularly power, opined that According to him, recently to meet the power need of the current power outage was we had some challenges in customers under its jurisdic- occasioned by the faulting power system flow in Benin- tion, in spite of the current transformers of transmission City. We had before now pride L-R: Allan Olufade, zonal director (North), Leadway Assurance; Emeka Ene, MD, Xenergi Limited; Uche Orji, MD, low power generation by the companies. ourselves that we have cus- Nigeria Sovereign Investment Authority, and Konyinsola Ajayi, managing partner, Olaniwun Ajayi LP, during the transmission companies. He said, the Transmission tomers who are already used panel discussion on Financing Gas Projects at the 2018 NGA International Gas Conference and Exhibition held Fidelis Obishai, Edo State Company of Nigeria on Sep- to our power flow because we in Abuja head of the power distri- tember 24, 2018 lost 60 MVA came up with what we called bution company made the transformer which is feed- “the power predictable load pledged during a press brief- ing 33 KVA feeder at Ikpoba shedding plans” to enable ing against the backdrop of Dam injection substation, customers predict when they the epileptic power supply 33KVA feeding Evbotubu / will have light or not. in the Edo state on Friday in Egor axis and transformer “ That was the system and Benin-City. serving Sapele road to Koko we were very proud about it. Obishai, who said the elec- feeders in Delta State. But now the reverse is the tricity company is in partner- He also added that there case when we recently have ship with three transmission was a cable explosion of the challenges. The challenges companies in the state noted 150 MVA transformer at Ihov- are not from BEDC but from that it currently have access bor Power plant /TCN substa- Transmission Company of to about 360 mega watts as tion on October 8, 2018 that Nigeria (TCN). against 800 mega watts need- resulted to power outage in “The best option we im- ed to services about 900,000 Ikpoba hill,Ugbowo, UNIBEN mediately adopted was to customers in four states of , UBTH, Okada axis among re-arrange our power distri- Edo, Delta, Ondo and Ekiti. others. bution. Before now we only He listed the transmis- He noted that since the have two transformers feed- sion companies to include, September 24 and October 8, ing the Sapele road axis. One Transmission Company of 2018 incidents, the transmis- of the transformers is feeding Nigeria (TCN), Sapele road, sion companies are yet to government reservation areas Benin-City, Independent put their faulty transformers and Etete axis while the other Power Plant (IPP) Ihovbor in order. transformer is feeding Guin- L-R: Toyin Adeniji, executive director, micro enterprise, Bank of Industry; Chairman, Bauchi State Market and transmission company Obishai, said the faulty ness and Idogbo axis. Association, Ibrahim ; Bauchi State Governor, Mohammed Abubakar; Vice President Yemi Osinbajo, during the located at Okada. transformers, however com- launch of TraderMoni, in Bauchi, recently. Pic by BoI Thursday 25 Octoer 2018 C002D5556 BUSINESS DAY 17 RESEARCH & INSIGHT In association with A WEEKLY PUBLICATION OF BUSINESSDAY RESEARCH & INTELLIGENCE UNIT(BRIU) [email protected] 08098710024 Analysing the spending habits of Nigerian millennials reveal that most of the respondents level. To corroborate this assertion, OMOBOLA ADU spend close to 10 percent of their we compared two categories of mil- income on shopping. The survey in- lennials based on their income and igerian millennials are dicates that about 43 percent of mil- saving pattern. In the first category, not actively investing lennials spend 1 to 1o percent of their we examined the number of mil- in financial securities income on shopping and 37 percent lennials that earn between N50,000 as up to 63 percent of do not spend any part of their income to N200,000 and also save below 10 millennials don’t own on shopping monthly. Although, 13 percent of their income. The second Nstocks and 71 percent do not invest percent of millennials acknowledged category comprised of those millen- in treasury bills or bonds. This is that they spend between 11 to 20 nials earning below N50,000 and also according to the data compiled by percent of their income on shopping. saving below 10 percent of their in- BusinessDay Research and Intelli- Going to the mall: 49 per- come. We found out that the number gence Unit (BRIU). The million naira cent of millennials indicated that of millennials in the second category question is: what are they doing with they spend close to 20 percent of was by far larger than the first by 70 their income? their income going to the mall on a percent. This provides evidence that If you’re thinking most of their monthly basis. The findings further the higher the income, the higher the income goes into savings then you reveal that 36 percent spend less than propensity to save. might have to think again. BRIU 10 percent, while 13 percent spend Monthly expenses on transporta- conducted a survey on the income between 11 to 20 percent of their tion dominate other expenses of mil- and spending habits of Nigerian mil- income on going to the mall. On the lennials in Nigeria. This finding is not lennials and it was found out that the majority of millennials barely save up to 10 percent of their income; instead most of their income goes towards covering transportation cost.

Survey highlights The survey focuses on millen- nials under the age bracket of 18 to 38 reflecting individuals born in the early 1980s to the early 2000s. An online questionnaire was sent per month: transportation, going to respondents assert that they spend out and the findings are based on restaurants, data bundle (internet), up to 21 to 30 percent of their income the responses received. The survey foodstuff, shopping/online shop- on restaurants per month. Similarly, results indicated that 62 percent of ping, education/professional certifi- 60 percent of the millennials spend the respondents were female and cates and going to the mall (leisure). between 1 and 20 percent of their the male respondents accounted Transportation: When asked income in restaurants. for 38 percent. The age group of the about the proportion of income spent Data bundle (internet): Ex- respondents reveals that most of the on transportation, 34 percent of the amining expenses on data bundle, an respondents are between the age respondents indicated that they astonishing 60 percent of millennials brackets of 23 and 27 years. spend between 11 and 20 percent indicated that they spend less than 10 In terms of the monthly income of their income on transportation percent on data bundle per month. range, the survey findings revealed during the month, 32 percent of the The highest proportion of income that at the lower band, 44 percent respondents spend up to 10 percent spent on data bundle by millennials in of millennials earn below N50,000 of their income and 15 percent of mil- Nigeria ranges from 11 to 20 percent per month, while at the upper band, lennials spend between 21 to 30 per- according to the survey findings. just 13 percent earn above N200,000 cent. On the other hand, 10 percent of Foodstuff: Spending on food- per month. Examining how much of the respondents indicated that they stuff does not seem to be priority for their income is saved, 38 percent of do not spend on transportation during majority of millennials. The survey millennials indicated they save 1 to the month. This implies that 66 per- reveals that 28 percent do not spend other hand, 51 percent of millennials surprising as bad road network and 10 percent of their income and as cent of the millennials spend between on foodstuff and another 28 percent revealed that they do not spend on traffic have prompted most public much as 14 percent suggested that 1 and 20 percent of their incomes on indicate that they spend between 1 going to the mall. transport drivers to raise transport they don’t save at all. This finding transportation every month. to 10 percent on foodstuff per month. cost. Considering those with private implies that on the average, Nigerian Restaurants: The survey indi- This implies that majority of millen- Survey insights cars, the cost of re-fuelling their cars millennials barely save up to 10 per- cated that most of the respondents nials (about 56 percent) spend less Comparing the monthly income tends to increase as they consume cent of their income. spend barely 10 percent of their than 10 percent of their income on of millennials and the proportion more fuel in traffic daily. Spending income going to restaurants per foodstuff per month. However, 21 they save, the data provides evidence on foodstuff is also seen to not be The Breakdown of the month. About 43 percent of millen- percent and 13 percent of millen- that majority of the millennials that of priority to millennials. This could monthly spending habits of nials indicated that they spend 1 to 10 nials spend up to 20 percent and 30 earn below N50,000 per month are suggest that most Nigerian millenni- millennials percent of their income on restaurants percent of their income on foodstuff, those who save below 10 percent of als are still living with their parents; The respondents were asked to and even 19 percent of millennials respectively. their income. This suggests that the hence spending on foodstuff does estimate how much of their income noted that they do not spend on res- Shopping/online shopping: low savings behaviour of Nigerian mil- not take up majority of their monthly they spend on the following items taurants. Although, 12 percent of the Monthly expenses on shopping lennials can be related to their income expenses. 12734BDN

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RMB Nigeria. Solutionist Thinking. Rand Merchant Bank Nigeria Limited is an Authorised Financial Services Provider www.rmb.com.ng 18 BUSINESS DAY C002D5556 Thursday 25 October 2018 Thursday 25 October 2018 C002D5556 BUSINESS DAY 19 CEO ABDULRAZAQ ISA INTERVIEW Chairman/chief executive officer, Waltersmith Petroman Oil Limited

Interview with Private Sector Leaders ‘When you have a diversified portfolio as an oil company, you can mitigate risks’

money producing crude oil and of us are over-emphasising ABDULRAZAQ ISA is chairman/chief executive officer, Waltersmith Petroman Oil Limited, an exploration and production company. In an exclusive interview exporting but we do not want to the place of PIB in the sector? be part of that narrative. We want Well, PIB is very important for the with FRANK UZUEGBUNAM, editor, BusinessDay (West Africa Energy Intelligence), Isa talks about his new modular refinery pet project and the vision to to be part of the change process in energy industry, especially for inter- the industry. national investors. It should provide transform Waltersmith into an integrated energy company. Excerpts: When we went into the marginal clear fiscal terms and certainty, and you set up a modular refinery fields business, people told us it was especially in the deep offshore ith the ground making us to position our company space, that is where I see the real breaking cer- properly in the market. somewhere, you will have these a waste of time; that it was not an challenges you are talking about. easy thing to do. We have become impact of the PIB. This is where the emony of International Oil Companies (IOCs) your 5,000 Critiques of modular refiner- Once we get this going, we will one of the most successful marginal then improve on it by increasing the field’s operators in Nigeria today. and the government will have to barrels per ies point its limitations. How arrive at a consensus of what is fair day modular refinery, does optimistic are you given that modules to about 30, 000 barrels a We want to leverage on that. We W day and when we are able to do that, have been producing and exporting for taxes and other things. These that signify a transition for you might be restricted to two then the whole economics will be- oil for 10 years, then what? Once you are some of the things constraining Waltersmith into an inte- or three products instead of investment in that space. For us, grated energy company? the entire derivatives from gin to actually be more positive. We begin to add value, set up a refinery, see this as a starting point despite a power or petrochemical plant, onshore players, we think there are We are in the business of explora- crude oil? opportunities especially if you are a tion and production (E&P). Essen- Our modular refinery is going to the inefficiency that people claim then you are talking about creating exists in it. We have started and are jobs and impact on the economy. Nigerian company. tially, exploration is looking for oil make available diesel and kerosene The existing fiscal terms that we and gas; production is producing which is currently being imported positioning ourselves to be one of An entrepreneur is a risk taker. the pioneers of privately owned have for onshore assets are decent the oil and gas. These are basically into the country. No matter what for us to be able generate revenue feedstock for the energy industry. people say about the inefficiency refineries in Nigeria. Despite the What level of investment are skepticism, I believe we have a busi- you looking at in the next 10 and invest. If you are just focusing The oil and gas are usually in their of modular refinery, we are utilising on oil production and export, I think crude or primary form. For a Nige- what is available in this country and ness case. We are helping to solve years? some of Nigeria’s energy needs. In the next 10 years we plan to there is still opportunity for us to rian company, the natural way to go adding value to it to provide diesel, invest and make decent revenue is to see how you can add value to kerosene and HFO which some increase our oil production to 100, Are you going to be solely 000 barrels per day. Now, the size based on the existing fiscal terms. this whole process. industries utilise. Nigeria needs Yes, it can be improved upon. We have been producing oil for products, refined products. Despite dependent on your OPL 2004 of the investment that will enable asset for the feedstock for you achieve this entails a number However, all of us in this space the past 50 years as a nation and the existence of 4 large scale refiner- are comfortable to just produce oil nobody seems to be thinking of the ies, we depend almost 100 percent your refinery? of things. You have to get the re- Not at all. We are looking at other serves, you have to buy the oil, buy and export. That gives you dollar value addition angle. It is really a on imported products. revenues and some are satisfied missed opportunity. This should There is no other modular refin- third party crude oil producers the concession - we are looking at not too far from us. Our location anywhere around $500 million dol- with that. I come with a different form part of the benefits you get ery that is operating successfully in mind-set, may be because I am not from producing crude oil. The de- Nigeria, today apart from NDPR. . is close to about 300 million bar- lars or more. This will give you the rels of oil in reserves sitting 30 km level of reserve you need for that size traditionally part of the industry. rivatives of crude oil are so many That modular refinery does not Some of my colleagues in the in- that they can impact other sectors make money? I do not hear that. I radius of where we are. This is our of production. Given this range, in estimate. For most of this oil, the the next 10 years we are talking of dustry think I am crazy to be doing of the economy. do not see it. I have gone to a global what I am doing. But I am passion- We see a big opportunity for a financial institution like African current strategy is to produce them, investment to the tune of $2 billion put them in pipelines for export. to cover upstream, refining and ate about this. country that has a population of Finance Corporation (AFC) and I want to make money and be- close to 200 million people, today. convinced them to give us money In the process, a number of things petrochemicals and power. Our power plant is strategic too. ing ahead of the opportunity. The happen, you lose over 90 days due The next question, how are you Again, you see the benefit of an in- opportunity must come. It is like lieve me there is money to be made Our objective is producing and re- to fund our project. in Nigeria and if we invest in the fining crude oil for the benefit of this With our modular refinery proj- to the vandalisation of oil pipelines, going to fund this? It is not easy to tegrated oil and gas company here this country, it has no option than to so you are not able to produce and find funds but you can find money - we have the feedstock and we are deregulate petroleum products. We right sectors, we still have oppor- huge population. We have a bulging ect, Nigeria is going to have a private tunity to make money. We are not population, we have crude oil and sector-owned refinery by an oil export that oil due the vandalisation when you have good quality project. putting the power plant next to the are thinking long term and strategi- of oil pipelines. Secondly, you have I believe so. Getting funds for our feedstock. So, we take the feedstock cally too. going to stop. We will continue to the only missing links is inability to producing company that is provid- look for new assets to buy and ac- harness and process this crude oil. ing its own feedstock and operating a fixed transportation cost. The cost modular refinery was tough be- and put it in the power plant. Our For our power plant we want to of transporting it from that area to cause we had to approach interna- numbers look good. start with 300 MW. By March 2019, quire. If we see a good asset today, This is a huge investment opportu- it as efficiently as it has operated we go for it, especially now that we nity. This in itself is an advantage. its upstream business. Apart from Bonny terminal for export is $5 per tional development finance institu- However, there are issues out we will have a bankable 300MW barrel. On top of that you are going tions and were subjected to rigorous there that needs to be solved. Gov- project. Once the issues in that sec- are building a refinery; we need as- Remember, when you look at the NDPR no other company in Nigeria sets that will serve as feedstock for Nigerian market, it does not com- is currently doing that. For us, our to have 10 to 15 percent loss of oil financial evaluations. Once this is ernment has no option than to tor are resolved, tariff and liquidity due to crude oil theft. up and running, it opens doors for solve these problem. It might take issues; once we know that if we put our refinery. prise Nigeria alone - we are looking motivation is to add value to the first remove $8. So by putting that be a problem solving and value adding associated with our E&P business and for The PIB will improve it for us for at all of these activities benefitting crude oil we produce and this is a When we run the numbers, we similar projects. People are already one year, two years or ten years. power in the national grid we will see an opportunity to build refining refinery right in the field, where we refinery for the country. This will save other E&P companies around us. That is talking to us about wanting to do Our population is growing at 3 per- get paid, then we will go ahead and sure. However, an absence of it does the entire West African sub-region. critical motivation for us and we are produce the oil from or take oil from Nigeria a lot of money too. The money that the whole idea. not constrain us from acquiring So, when you measure the op- going to do this in a very efficient capacity of about 30, 000 barrels a one deal or the other. cent annually and you do not have make the investment. That is the day. When we do 30, 000 barrels a nearby fields, we have eliminated would have just gone away if you paid $8 You must invest money in the enough electricity, to provide jobs way we are going systematically. onshore assets. I always go back to portunities that are available to us, way. Our aspiration, which is why that $8 cost. This is a huge margin for per barrel to move your crude and some- Oil is heading back to $100 per the main reason for wanting to do we are looking at Nigeria and the we have gone modular, is to add and day we can access feedstock from development of the project. This and create employment opportu- all these oil assets around us and us, before we even do the refining. body is putting infrastructure in place to barrel. Let us look at it from two is risk capital; it does not give you nities. If you do nothing, you have You keep making investment what we are doing. It was to keep entire West African sub-region. progressively grow capacity. It means that our refinery will say instead of paying $8 per barrel, you scenarios; one as an E&P company our upstream business running Whatever we do with the oil and We have started with 5, 000 bar- we will be a clear option for the anything. This enables you to de- a big problem on your hands. So, decisions despite non-pas- producers instead of taking the oil buy crude unlike its competition, pay $4 per barrel. We then go ahead, take and secondly as someone going risk the project and make it attrac- those issues impeding the genera- sage of Petroleum Industry efficiently without losing about 15 gas we produce and add value to it rels a day and we are going to add that is, the refineries that are out the crude, refine it and put it in the mar- into refining. Which scenario fa- percent to crude oil theft. through refining and petrochemical more modules that will take it to to Bonny for export. We are going to tive to investors, both local and tion and distribution of power must Bill (PIB). Does it mean some target other sources of crude oil and there buying at market price. Thus, ket. This reduces the pressure on foreign vours you more? international. For us, it is a mark be resolved and indeed they can be products, we know there is a huge about 25,000 to 30,000 barrels a day. we will negotiate with a number of exchange also. Our model is strategic and It is just that we are operating an inef- market awaiting us. As a company, Our strategy is to take crude oil that third party producers who are close of faith in our country and a way of resolved. to us; we take the crude from them, crude oil producers around us. We will benefit all the parties involved. ficient system, so to speak because of the giving back by adding value. For a We will develop a bankable the opportunity is the motivation for we produce, that is close to us, put can say to them, if you are spending Our refinery is going to operate effi- subsidy issues in the market. Otherwise, us by the virtue of the market we see. the plants very close to the source of refine it and put the products in the power plant, for instance, you need project and will not wait for the Profile: domestic market. Of course we will $8 per barrel to export your crude, ciently, with targeted uptime of over 300 product prices are a reflection of crude development capital of between Nigerian government. Now, as an When you have a diversified the crude oil, refine it and distribute we can buy it at less $8 or $5. You days per annum, because it is privately- oil prices in an ideal market. Diesel that Abdulrazaq Isa is an entrepreneur and former banker with exten- portfolio as an oil company, you are it within our area of operation. So, have to negotiate the price. $7 – 10 million that you spend and entrepreneur, you do not wait for sive local and international experience in both private and public are still keeping $3 in your pocket. owned. We will save all the oil producers is deregulated today tracks the price of all the problems to be solved before able to mitigate risks. For example, the critical issues that people refer all you have are just papers. This is sectors. For over 15 years, Abdulrazaq was a banker with African So I am a viable option to you by the in our area of operations the problems of crude oil. It is only in PMS that you are not because at the end of the day all you you can act. If you do, you lose the if oil price goes down, with your to, we would have eliminated some Some experts say low refining virtue of my location. constant shut-in due to pipeline vandal- paying more because government con- International Bank Nigeria Ltd, Chartered Bank Nigeria Plc. (now capacity means really low re- would have are reports from various opportunity. You must prepare diversified portfolio of refining and of them. Our model is not premised on ism, crude oil theft is eliminated, because tinues to subsidise it. So, at this stage, we Stanbic IBTC) and co-founded Safetrust Savings and Loans Limited petrochemical activities, you will Refining margins are big issues, fining margins. At 5,000bpd, consultants, feasibility, market and ahead of the opportunity. The op- buying crude at the market price, we are taking the oil where we are. do not have any concerns as such about environmental studies etc. Mind portunities are big drivers for us; a (now a subsidiary of Sterling Bank Plc.). cushion the effect in the downward transportation cost is a big issue and what is your strategy to main- because if we do that where we are, This is why we believe we can continue oil price going up or down significantly. pressure on oil price. If it goes up, we have eliminated this through the tain profitability? you, you are engaging international big growing population, the second In the course of his professional career, he was involved in the struc- You see, that is why we started with we will have significant pressure to expand our module, notwithstanding Diesel and kerosene is what we are mostly consultants that you have to pay. biggest economy on the continent. well it is good for you. But we have location of our plants to a large ex- on our margins. We are a strategic the low volume and margins we are start- going to be putting out there. Their prices turing and financing of several multi-million dollar transactions in had situations in the country where tent. This is because the plant itself the location of our modular refinery. This is the documentation you As a country, we are struggling to the upstream and oil service segments of the oil and gas industry. refinery that is meeting two objec- ing out with. We are confident that we will are in line with the market price. require to approach international meet up to 10, 000 MW of electric- a downturn in oil price negatively is located right where the crude oil Let us look at the cost structure for He also has diverse industry experience as Chairman/CEO of Wal- producing and exporting oil from tives: first is ensuring that crude break even. One reason we started this is We see Nigeria as an opportunity de- development finance institutions. ity and we are going to need about impacts everything in the economy. is produced, which improves our producers get value for their crude due to constant pipeline vandalisation spite all the issues that are abound and we tersmith & Associate Ltd, an investment company with international This is part of our reason to build project economics. Our market is where we are. Just the cost of pro- 50, 000 MW. ducing the oil, putting it in the line production, they get real value. and crude oil theft. The overall goal initial- are not going to shy away from investing What informed your decision It takes an average of two to three and local strategic interests in Oil and Gas, Telecommunication, an integrated oil and gas company. just about 30 kilometres away from Second, through the refining itself, ly was to support our upstream business. in Nigeria. We have the critical ingredients Down the line, we plan to build where we are. and exporting it is almost $8 per bar- to go in power generation? years to put 1 MW of gas power plant Manufacturing and Finance. rel. This is the transportation cost we make products available in the This is what informed our investment required, which is oil and gas. We have Most of our investment decisions into the system. We are taking on a power plant that will be serviced We know that as a standalone market. decision. As we continued to refine the been producing oil in the last 10 years He is a member of several professional bodies including the Society by the gas we produce. Once you modular refinery, the margins are alone. This cost has been growing. today; modular refining and power this challenge as entrepreneurs. We of Petroleum Engineers (SPE), Energy Institute (EI) and the Institute We take advantage of our loca- strategy, it became clear to us that there as a company and we do not want to fall have the gas. A diversified portfolio can make power available, you can very thin. We are not oblivious of We probably started at about $5 per are based on our forecast that in the of Directors (IOD). barrel. So, if I produce crude and it tion to solve a problem for crude is a business opportunity here. We will into the same narrative of producing and next year and a half, the Nigerian of assets is good for us. We are just also energise industries. It is just the the criticism of modular refinery. producers to improve our own grow our refining capacity and profit- exporting oil. Abdulrazaq is involved in philanthropic activities aimed at support- sheer size of the opportunity that is If you are not in our own situation is sold at $50 per barrel, you have to economy will change. For us, timing looking for the right opportunity to refining margins. Ours is going to ability as we solve operational problems Do not get me wrong, people make is of the essence. put it in the market. We are prepar- ing the improvement of Science education in Nigeria. Thursday 25 October 2018 20 BUSINESS DAY C002D5556 Thursday 25 October 2018 C002D5556 BUSINESS DAY 21

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NSE Premium Index The NSE-Main Board NSE Lotus II NSE Ind. Goods Index NSE All Share Index Market capitalisation NSE ASeM Index NSE 30 Index NSE Banking Index NSE Insurance Index NSE Consumer Goods Index NSE Oil/Gas Index NSE Pension Index 475.44 976.10 2,560.39 1,975.59 1,379.74 Year Open 38,243.19 N13.609 trillion 2,564.13 1,713.69 1,087.32 1,746.68 139.37 330.69 Week open (12 – 10–18) 32,456.98 N11.849 trillion 2,328.43 1,450.66 787.68 1,461.89 411.93 121.89 750.49 288.37 2,248.85 1,528.38 1,226.69 Week close (19– 10–18) 32,841.69 N11.990 trillion 2,403.05 1,442.39 792.33 1,474.26 416.20 124.29 745.76 285.87 2,264.56 1,520.01 1,219.48 Percentage change (WoW) 1.19 3.20 -­0.57 0.59 0.85 1.04 1.97 -­0.63 -­0.87 0.70 -­0.55 -­0.59 Percentage change (YTD) 14.12 -­6.28 -­15.83 -­27.13 15.60 -­12.46 -­10.82 -­23.60 -­13.55 -­11.55 -­23.06 -­11.62 Nigerian stock investors book N1.5trn loss year-to-date … Foreign inflows into stocks down by 56% in 9 months IHEANYI NWACHUKWU by 2.79percent from N133.84 billion recorded in August 2018 igerian stock to N130.20 billion (about $425.6 buyers are carrying million) in September 2018. The a huge loss of cumulative transactions from approximately January to September increased N1.5trillion as by 21.23percent from N1.655 Nevidenced in the value of listed trillion recorded in 2017 to N2.007 equities as at Monday October trillion in 2018. 22, 2018. Foreign investors This record loss which outperformed domestic investors represents year-to-date negative by 29.54percent in September return of about 14 percent comes 2018. Total foreign transactions on the heels over 56percent increased by 18.82percent from decline in the level of foreign N70.97 billion in August to N84.33 portfolio inflows into the stock billion in September 2018. market. Analysis of transactions for the Also, FBNQuest Capital period ended September 30, 2018 Research in their October 18 note shows foreign outflows increased to investors acknowledged the by 27.60percent from N34.31 build-up to elections can bring billion to N43.78 billion whilst the flight of the offshore investor. foreign inflows increased by “In our search for macro 10.58percent from N36.66 billion slippage in the run-up to Nigerian to N40.54 billion over the same elections, we devote the third has created bargain opportunities “Our outlook for equities developments in the political period. There was a significant of our daily notes to foreign/ in value counters. Bargain in the short to medium term space. The value of listed stocks decrease of 27.03percent in total offshore trading patterns on the investors had last week moved remains conservative, amidst also declined from January high of domestic transactions from NSE before the polls on March into Custom Street in search of brewing political concerns, N13.609trillion to N12.110trillion N62.87 billion in August 2018 to 2015. (We cannot locate the series these stocks which helped push and the absence of a one-off as at Monday. N45.87billion in September 2018. to cover the elections of April stocks value high by N141billion positive trigger. However, stable “As events in the political The institutional composition 2007 and April 2011.) in the trading week to Friday macroeconomic fundamentals space remain on the foreground, of the domestic market increased “The data show steady gross October 19. remain supportive of recovery we expect the spate of nine by 52.65percent from N16.98 offshore inflows from October Though the much expected in the long term,” said Cordros months 2018 earnings to guide billion in August to N25.92 billion 2014 through to April 2015, along third-quarter (Q3) earnings Capital research analysts in their sentiments this week”, according in September 2018 whilst the with net outflows of varying sizes season has take-off lately, note for the week ended October to Lagos-based United Capital retail composition reduced for each month other than the investors are seemingly not 19, 2018. Research in their recent weekly by 33.59percent from N30.03 last. This does not represent a too excited about most of the Foreign inflows into the investment views. billion to N19.94 billion within rush for the door marked exit, scorecards of some of the stock market declined from Total transactions at the the same period. This indicates rather a steady trickle out of the largely capitalised companies –a N91.75billion as at January 31 nation’s bourse continue to a higher participation by the NSE,” FBNQuest research stated. development which might not to N40.54billion as at September reduce institutional investors’ over their The record N1.5trillion loss help to halt movement along the 30. Most of these investors pulled The total transactions at retail counterparts in September seen this year in the stock market loss path. back and are carefully watching the nation’s bourse reduced 2018. 22 BUSINESS DAY C002D5556 Thursday 25 October 2018 WEEKLY REPORT

HelpingInvestor you to build wealth & make wise decisions STOCK MARKET REPORT FOR OCTOBER 19TH 2018 United Capital investment views Investor’s Square A total turnover of 1.380 billion shares worth N15.149 billion in 13,478 deals were traded this week •Have you been shabbily treated by your registrar, Domestic equitiesby investors on the floor stay of the Exchange bullish,in contrast to a total of 915.856 million shares valued at N9.835 billion that exchanged hands last week in 14,033 deals. stockbroke r or other capital market operators? NSEASI up 1.2% week-on-week Let us know and investor will help you investigate and The Financial Services Industry (measured by volume) led the activity chart with 1.237 billion shares hilst the local bourse to 3.3x in the previous auction rate traded flat at N360.5/$1, report back. opened the trading vwithalued at the N9.725 365-day billion traded bill in 7,404 mostly deals; thuswhile contributing rates 89.62 %at an thed 64.19 Interbank% to the total week to October equitydemanded turnover volume (bid-to-cover and value respectively. ratio The Consumerand Investors’ Goods Industry & followedExporters’ with 62.505 FX E-mail: [email protected] 19 on a bearish of 1.5x). window depreciated marginally Wfooting, the NSEASI maintained millionThe shares auction worth N1.689 was billioncarried in 2,560 out d ealsat .Theby third 2bps place wasand Oil and6bps Gas Industryto finish with a the upbeat sentiment from the turnoverthe following of 26.341 m illionstop shares rates: worth 91-day 2.447 billion inat 1,213 N306.5/$1 deals. and N364.3/$1 preceding week. The NSEASI (10.96percent versus 10.9percent respectively. Looking ahead, FMDQ, FSD Africa, CBI execute maiden investors closed in green territory on 3 of at the last auction), 182-day we expect the sustained weekly 5 trading days, inching higher by (12.69percent vs. 12.1percent FX intervention by the CBN to 1.2percent week-on-week (w/w) Tradingat the in last the Topauction) Three Equities and n364-dayamely ( Sunu continueAssurances Nigeria to support Plc, Zenith the Bank local Plc unit and capacity building, training session on Green Bond to finish at 32,841.7 points. Guaranty(13.449percent Trust Bank Plc vs., (me 13.33percentasured by volume) accountedas demand for 772.902 pressures million shares persist. worth N7.841 Market capitalisation accreted at the last auction). Distinctly, Global equities mixed on urther to the launch and environmental friendly investments and thus building by N140.5billion to N11.9trillion btheillion inCBN 2,050 hikeddeals, contributi OMOng stop 55.99 %rates and 51.76 %positive to the total equityQ3-18 turnover earnings volume and andvalue of the Nigerian projects. the green economy of Nigeria. while year-to-date (YtD) return respectively.by 25bps on the 105-day and 182- rising geopolitical concerns Green Bond Market Further discussions led by We hope that other African improved to -14.6percent. day bills and 50bps on its 329-day Major equity indices were Activity level improved as average bill, during the week. mixed in the prior week. In the Development Victor Nkiiri, Capital Markets markets will soon learn from volume and value traded were up Subsequently, yields on US markets, the onset of the ProgrammeF into the Nigerian Specialist at FSD Africa, and Nigeria’s example and follow 50.7percent w/w and 54percent Equitybenchmark Turnover - LastNigerian 5 days Treasury Q3-18 earnings season doused debt capital markets in June Olumide Lala, Programme suit to enable attractive green w/w to 276.1million units and Bill (NTB) papers rose 28bps on the earlier volatility from rising 2018, the parties – FMDQ OTC Manager, Africa Markets investments that will drive N3.1billion respectively. average to close at 13.8percent: yields. Big names like Goldman, Performance across sector 91-day (up 25bps to 12.9percent), Morgan Stanley and Netflix Securities Exchange, Financial at CBI delved into the state sustainable green growth.” indices was mixed with a bearish 182-day (up 60bps toTurnover 13.6percent) Turnover publishedTraded Advancedtheir 9M-18 Declined earnings Unchanged Sector Deepening Africa (FSD of the global green bonds Justine Leigh-Bell, Director, tilt. Three of the six sector andDate 364-day Deals (upVolume 48bps Value to (N) scorecard.Stocks Stocks Stocks Stocks Africa) and Climate Bonds market and the investment Market Development at CBI indices we track closed in red 15.7percent). In the week ahead, Elsewhere, the minutes of Initiative (CBI) –have executed opportunities open to went on to comment that territory, including; the Oil & maturities15-­‐Oct-­‐18 2,529worth 91,405,750 N284.1bn 960,906 is ,550 Fed’s 99 Sept-18 16meeting 17signaled a66 Gas (-0.9percent), Consumer expected to hit the system. With continuation of the Fed’s hawkish the maiden Investors Capacity investors. Challenges to green “This roundtable is another Goods (-0.6percent) and the16 -­‐OctCBN-­‐18 likely3,025 to662,021,347 maintain 5,312,119,195 the stance 106 while the16 US Department23 67 Building and Training Session bonds investment including step towards a robust Nigerian Industrial Goods (-0.5percent) spate17-­‐Oct of-­‐18 its 2,974OMO 240,764,583interventions, 3,659,040,879 of Labor105 reported11 22that the72 in line with the provisions and the requisite documentation green finance market. The indices, as price depreciation we expect the tempo of this number of job openings reached objectives of the Programme. and the technical capability early involvement of investors in SEPLAT (-2.4percent), event18-­‐Oct to-­‐18 guide 2,565 trading 173,625,961 sentiments 3,760,072,418 an all-time104 high13 of 7.1mn22 in Aug-69 FO (-0.5percent), NESTLE through the week. 18. Consequently, the S&P 500, The Session which held on required to grow and nurture is a vital component of the (-2.1percent), PZ (-1.6percent) 19Bond-­‐Oct-­‐18 Market:2,385 212,649,910 Bond yields1,456,551,437 DJIA 100 and NASDAQ18 rose19 1percent, 63 Monday, October 22, 2018 at green investments were also broad stakeholder support and WAPCO (-8.7percent) reprice amid OMO hike 0.8percent and 0.6percent w/w the FMDQ Offices, Exchange discussed. required to develop initial outpaced the gains recorded In the bond market, trading respectively. Place, provided a platform to In appreciating the market green issuances. The event in OANDO (+2.9percent), sentiments were guided by the In Europe, ongoing DANGCEM (+5percent) and NB softer than expected uptick in conversations on the nature of build the required technical participants and varied green demonstrated the momentum (+0.6percent). capabilities within the investor finance stakeholder groups is there amongst all major On the other hand, the community to drive green gathered for this maiden players for successful market Insurance (+2percent) and bond investment decisions. Investors’ Roundtable, Tumi development.” Banking (+1percent) indices closed the week unscathed as The session, which Sekoni, Associate Executive Formed via a Cooperation gains in MANSARD (+10percent), commenced with a review and Director at FMDQ, expressed Agreement between FMDQ, CONTINSURE (+6.7percent), activity update of the recently her delight in the formidable FSD Africa and CBI, the ZENITH (+3.2percent), launched Programme had partnership between FMDQ, Nigerian Green Programme GUARANTY (+0.8percent) and UBA (+0.6percent) buoyed in attendance, the Minister FSD Africa and CBI; noting is an offshoot of this the indices. Put differently, of State for Environment, that investors are a critical part partnership, spanning a performance across sectors Ibrahim Usman Jibril, ably of our markets and in no small 3-year period. The objectives reflects investors reaction to represented by Peter Tarfa, measure, play a defining role in of the Programme include, a series of corporate earnings submitted during the week. Director of Climate Change green investments. amongst others, to: Facilitate Notably, WAPCO reported at the Ministry; Chairman, According to Sekoni, the the establishment and yet another negative PAT Steering Committee of the importance of stakeholder development of a Green (N10.4billion loss) for the FMDQ Debt Capital Markets Bond market in Nigeria; 9 Month period despite a engagement across the revenue growth of 4.8percent to Development Project 2025, sustainable and green finance support the development N234.3billion amid pressure from Bolaji Balogun, amongst value chain cannot be over- of guidelines and listing finance charges. ZENITH (PBT: others. Whilst welcoming emphasised, even as the requirements for Green up 9.5percent y/y to 167.3billion), the guests to the Session, the Bonds in Nigeria; develop GUARANTY (PBT: up 9.5percent Nigerian financial market y/y to N164.2billion) and Minister noted that the tenets sets to tap the development a pool of Nigeria-based UBA (PBT: up 1.0percent y/y of sustainable finance and opportunities availed in this licensed verifiers to support to N79.1billion) all submitted indeed, green bonds issuances space. issuers; develop a pipeline massive Pre-Tax Profit numbers have come to stay, and that According to Evans of green investments and for the 9month period despite inflation (which stoked some a BREXIT deal and the Italian Nigeria should leverage the facilitate engagement divergent Gross Earnings bullishness), expectations of a budget stood in the limelight. Osano, Director Financial performances. hike in OMO rates, as well as some The Italian budget was signed opportunities provided by markets at FSD Africa, “We with extant and potential Investors’ sentiment cautiousness from market players off by the country’s parliament this formidable partnership are delighted to be part of this investors; and support remained lukewarm as market in anticipation of the forthcoming earlier in the week despite the which is geared to build a pool partnership which will enable broader debt capital markets breadth closed the week at 0.5x bond auction. Overall, FGN bond deficit target of 2.4percent of of green bond demonstration reforms that have an impact (previously 0.9x); 19 stocks yields edged higher marginally GDP, which violates E.U’s fiscal investors – the driving force advanced while 38 stocks issues that will be used to of green growth – to be better on the non-government by 12bps on average to close at rules. Thus, the Pan-EuropeanPage 1 declined w/w. As events in For15.1percent, Further Inquiries Contact: driven Market by Operations increases Department STOXX (+0.8percent), UK’s FTSE finance key infrastructure equipped to evaluate green bond market in Nigeria. the political space remain on in the FGN2021 (+44bps) and (+0.9percent) and Germany’s the foreground, we expect the FGN 2022 (+30bps) issues. DAX (+0.4percent) rose w/w spate of 9M-18 earnings to guide Also, average yield for while Italy’s MIB (-0.7percent) SEC sees vibrant commodities exchange sentiments this week. FGN Eurobond remained at index declined w/w. Money Market: Tacit CBN 7.2percent while average yield In Emerging markets, China’s tightening moves spurs bearish in corporate Eurobonds edged slower GDP growth for Q3- aiding economic development outing higher marginally to 8.9percent 18 dominated the headlines. At the short end, markets from 8.8percent. Looking ahead, The country’s GDP expanded he Securities and She further stated that there recommendations of the report opened the week sparsely further upticks in yields remain in 6.5percent in Q3-18, lower than liquid, reflecting funding for Exchange Commission is a lot of benefits in promoting of the Technical Committee view amid renewed bond supply, 6.7percent recorded in Q2-18 commodity exchanges and on Commodities Trading the wholesale FX auction by inflationary pressures, weaker and the weakest since 2009 as T(SEC) has said that a the CBN. Accordingly, system GDP growth, rising US treasury the impact of the ongoing trade more organised Commodities the ecosystem in general as Ecosystem. liquidity indicators (Open Buy yields and political tensions in war between the US and China Exchange Market in the country they provide a transparent Daisy Ekineh who led the Back/Overnight rates) opened the local market. continued to take its toll. would enhance efficiency and pricing mechanism, promote team, gave an update of the the week around 40-45percent, Foreign Exchange: Reserves Consequently, China’s while remaining above 20percent deplete further amid mounting SCHOMP index declined lead to economic growth and attractiveness of agribusiness, Committee’s activities to the until Thursday, when system pressures on the naira -2.2percent w/w as the governor development. foster financial inclusion and SEC team. Ekineh commended liquidity was bolstered by bond In the Foreign exchange of the People’s Bank of China The acting Director General improve quality of agricultural the SEC on its efforts towards coupon payments (N33billion), market, the narrative remained moved to ease concerns on the output and profitability as well ensuring a vibrant Commodities as well as net OMO repayments the same as naira weakened state of the economy by pledging of the SEC Mary Uduk stated this (N72billion) – as the CBN took against the US dollar during the to boost lending to the private when she received members as government revenue. It also Ecosystem in Nigeria. out just N275.3bn, relative to week amid sustained capital sector while highlighting that of the Commodities Trading enhances the wellbeing of the The Committee developed N347.1billion maturities. Overall, outflow. The CBN sustained its stock valuations do not reflect Ecosystem Implementation farming communities and help a roadmap for educating and money market rates averaged weekly FX intervention in the economic fundamentals. reduce rural - urban drift. enlightening all stakeholders 23.6percent (compared to wholesale and retail FX market, Elsewhere, the political Committee in her office in 11.7percent in the preceding affirming its commitment to climate in Brazil remained tense Abuja, weekend. The Commodities Trading to enable them understand week). support the naira amid growing ahead of the election re-run. Uduk said the Commodities Ecosystem Implementation the responsibility of each In the primary market, the demand for FX. Thus, Brazil’s IBOV index closed market is an integral part of the Committee has NEXIM, stakeholder and is planning apex bank conducted its bi- Accordingly, FX reserves fell +1.4percent w/w while other NIRSAL, CBN, NCX, FSS2020, an International Stakeholders monthly NTB auction, wherein 1percent w/w to $42.8billion, emerging market indices trended economy whose potentials it successfully re-financed as at Wednesday. Relatedly, southwards w/w; Russia’s RTSI have not yet be fully harnessed CIS, FMDQ and AFEX as conference chaired by NIRSAL N147.6billion. Demand was Brent price traded marginally (-1percent), India’s SENSEX for the country to enjoy the members that have been with people from all over the moderate with an average bid- below the $80/b mark during the (-1.2percent) and South Africa’s benefits therein. mandated to implement world scheduled to attend. to-cover ratio of 1.4x compared week. Overall, parallel market JALSH (-2.8percent). Thursday 25 October 2018 C002D5556 BUSINESS DAY 23

InvestorHelping you to build wealth & make wise decisions Vetiva Research GTBank: Another decent quarter sees earnings track estimates …‘We maintain our Buy rating on GUARANTY’ uaranty expect the bank to stay Trust Bank cautious, we raise our released its Non-Interest estimate nine months marginally higher to reflect 2018 results, the outperformance from Gposting another set of 9M’18. Similarly, we revise impressive numbers. our loan loss provision Although third-quarter downward (albeit still faster (Q3) 2018 standalone than 9M run-rate) to reflect performance was improving asset quality. relatively weaker quarter- We however maintain on-quarter (q/q), bottom our Operating Expense line for the nine months estimate and retain our (9M) period still came in tax assumption for the full impressive, up 13percent year. Overall, we estimate year-on-year (y/y) and a PAT of N184 billion for 2percent better than our FY’18 – translating to y/y estimate. growth of 8percent. While top line came Despite being the in mildly below our highest priced banking estimate –N337 billion name in the Nigerian versus Vetiva’s N340billion banking sector, we estimate – lower than believe that the bank expected expenses and remains significantly provisions kept bottom undervalued –particularly line in check. We note period came in 4percent estimate. More positively our N268 billion estimate. GUARANTY’s earnings. when compared to that the bank’s risk lower y/y at N238 billion, however, asset quality However, with Operating The bank continues to regional peers. Following appetite remained low missing our N245 billion remained strong within Expense coming just in set the benchmark our model update, we within the quarter as loan estimate. the quarter with loan line with our estimate within the banking sector revise our target price on book moderated another Furthermore, with loss expense coming in amidst a lower than with industry leading GUARANTY to N51.53. 2percent - taking year- Customer deposits up at a modest N1.7 billion expected effective tax rate, profitability. We note that With our expected to-date (ytd) loan growth 9percent ytd, Interest versus Vetiva estimate of PAT rose 13percent y/y to at the current earnings Return on Assets (ROA) to -12percent. Amidst Expense rose 14percent N5.9 billion –following N142 billion – 2percent run rate, GUARANTY is and Return on Equity this, Interest Income y/y to N67billion, coming a net N295 million write better than our N140 on-track to set another (ROE) of 5.4percent and moderated 7percent q/q in flat q/q and much in line back within the quarter. billion estimate. record year of profitability. 30.3percent respectively despite a relatively stronger with our estimate. With Consequently, Operating Target Price revised to Whilst we cut our Interest for FY’18 and a market yield environment within this, Net Interest Income Income was up 11percent N51.53 (Previous: N51.58) Income forecast lower to pricing of N36.80, we the period. Hence, the was down 10percent y/y y/y to N266 billion – We are quite impressed N317 billion (Previous: maintain our BUY rating income line for the 9M and 4percent behind our marginally lower than with the persistence of N326 billion) as we on GUARANTY. Access Bank: Q3 scorecard to trigger ‘buy’ decisions

2018 and it is far below as at September our cost containment IHEANYI NWACHUKWU recorded during the Loans and Advances corresponding period in totaled N2.08 trillion target price (TP) of 2018 compared plan, as we strive to N13.32 set by equity to 4.8percent in balance operational espite 2017. as at September 2018 Though the bank’s (December 2017: N2.06 research analysts at December 2017. Cost efficiency with concerns Vetiva Capital in their of risk decreased to earnings growth that the Profit Before Tax trillion). (PBT) at N70.26billion Stock price offers August 30 note to 0.5percent in 9 months in a constrained investors. to September 2018 environment,” said Dcommencement of in Q3’18 against value for bargain N72.91billion in Q3’17 hunters Still on third- from 0.9percent in 2017 Herbert Wigwe, Group election cycle poses quarter performance on the back of prudent Managing Director/ risk to returns from represents 3.6percent, Access Bank Plc stock its Profit After Tax (PAT) which yields negative Customer deposits risk management CEO said, Nigerian equities, one increased by 10percent practices during the “The Bank will of the nation’s tier-1 increased by 12percent return of 23.4percent to N62.9 billion from has underperformed to N2.48 trillion in period. remain resilient in lenders Access Bank Plc September 2018, up Management speaks the achievement of its remains in the basket of N56.4 billion of which the NSE All Share subsidiary contribution Index (ASI) at minus from N2.25trillion “Our capital and strategic imperatives; analysts’ stock-picks. recorded in December liquidity position maximizing our strong Impressive Q3 increased to 32percent, 14 percent but it offers from 15percent from the buy opportunities 2017. Capital Adequacy remained adequately market position and scorecard of 20.3percent and above regulatory solid capital base, Access Bank Plc has corresponding period. for long term value The asset base of hunters in line with liquidity ratios of levels, as we continued while leveraging digital released its scorecards 44.2percent remained to implement a innovation to improve for the nine months Access Bank remained analysts rating. strong and robust with Access Bank stock consistently above the disciplined capital service touch points as ended September 30, regulatory minimum plan, ensuring we sharpen our retail 2018 which shows growth of 11percent price had reached 52- Year to Date (YtD) in week high of N11.35 requirement. sufficient levels of play with emphasis top-line earnings Further analysis profit retention to on cheaper funding of N375.2billion, total assets to N4.55 and a 52-week low of trillion in September N7.50. The bank stock of the results showed support our growth. We sources,” Wigwe said. up 3percent from Non-performing loans remain committed to N365.1billion 2018 from N4.10 trillion was priced N8 as at in December 2017. Monday October 22, stood at 4.7percent 23

24 BUSINESS DAY C002D5556 Thursday 25 October 2018

‘We are taking online shopping to the grassroots’ - Ojo Olumuyiwa Ojo is the chief executive officer of Synergimart Digital Marketing Limited. In this Interview, Ojo spoke extensively with Chinwe Agbeze on the e-commerce industry and plans to take online shopping to the grassroots. Talk to us about Syner- How does this work? as N120,000 for a year de- ity in that process? gimart Digital Marketing In our everyday life, do a lot pending on the size of their All merchants and agents Limited of referrals and don’t earn products and what they want sign an agreement. If a mer- Synergimart is a new infor- money for doing so. People to do, merchants can get a chant violates it, he/she is mation technology driven ask us where we purchase space on our platform. shown the door. At Syner- and global marketing com- goods and services, we tell For now, all merchants gimart, there is no second pany. Synergimart has four them without being reward- have a free trial period of chance if a merchant vio- core services to offer to Nige- ed. So, at Synergimart, we three months. So, if any mer- lates any of our laws. If we rians and the world at large. decided to monetise refer- chant comes on board now, get consistent report that a The first is Synergitrust. rals by developing a solu- the merchant will enjoy free merchant is supplies inferior Synergitrust is our flagship tion that is peculiar to our three months without paying products, we will blacklist product which is a global environment. anything. that merchant. marketing company where We built a system where- buyers meet sellers in a so- by if someone refers four How do you handle issues How do you intend to man- cial, friendly environment. people to our company, the where a customer places age security issues since The second is E-procure- person gets paid. The person an order but receives an transactions are done on- ment which will be released is not only paid from the four entirely different or infe- line? next year, and the third is E- people he/she referred but rior product? We have built a lot of security distribution. Channel mar- from as many that will come Once a buyer places order, in our system. We hardly use keting which is the fourth through them. To be a paid the money does not get to cards to buy anything on service is more of physically member, the person has to the merchant until the cus- our platform. A member based products. In all these be signed up by an agent tomer confirms that he/she makes purchases using his/ businesses, information and pay a token of N4,000 for Olumuyiwa Ojo has received the product and her inbuilt wallet but in technology is going to be life. Once the person pays, is satisfied with the profit. If cases where the money is not the driving force. he/she becomes a member the customer is dissatisfied, enough to make a purchase, Our flagship product, and will have access to our part of the club and once you of education and money the merchant bears the cost money can be moved from Synergitrust, is the first so- financial empowerment are a member of the club, were the major reasons why of delivery and not the buyer. the account into the wallet. cial marketing network. We programme and amazing you stand to earn referral industry leaders are avoiding If buyer receives the We don’t collect or re- have seen a lot of social our synergy services. income on the site. The ma- the grassroots. We looked product and fails to confirm quest for anyone’s account media networks such as jor target of Synergitrust is to into the problem and came after 7 days, the money will details. If a buyer must pay, Facebook and the rest. But, Tell us more. take online shopping to the up with solutions so as to go to the merchant because he/she pays to Interswitch. the world is yet to really ex- We have the Synergitrust busi- grassroots. This is the major meet the needs of those at we are protecting the inter- We have integrated nicely perience the first ever social ness club where all the mem- focus of Synergitrust. the grassroots. ests of both the merchant with Interswitch and our marketing network that is bers form a community of So far, we noticed that in At Synergimart, we are and the buyer. The buyer can system is secured. going to be an environment buyers on the platform. To be- all the businesses we have recruiting and empower- decide if he/she wants the We know identity theft is where everything there is come a member, the person seen are focused more on ing agents. There are expe- product delivered or he/she common. Knowing a mem- all about buying, selling has to pay a fee after which he/ the elite. Looking at the glob- rienced business centres wants to opt for pickup. ber’s password and user- and making money. Buyers, she enjoys all the privileges of al population, we discovered but Synergimart is charging It will take a maximum name on our platform is sellers and agents all make being a member as it is com- that majority of the people in business centres to E-busi- of 7 days to have a product not enough for the system money. mon in clubs like Ikoyi Club the world are totally cutoff. ness centres. Those at the delivered to any location in to open. On Synergimart platform, and Lagos Country Club. Synergitrust have come to grassroots can walk in and Nigeria. Although our deliv- it is a win-win situation for However, Synergitrust target and capture the mar- enjoy the amazing services. ery partner, FedEx, said it will Where do you see Syner- everybody because the com- business club is an online ket that has been neglected We also have the mer- take between two or three gimart in twenty years? pany focussed on solving club which is a replica of all over the years by the in- chants who are those who days to have goods delivered We are not going to have problems and putting smiles these clubs on the internet dustry leaders who focused have products or servic- depending on the location. structures only in Nigeria on people’s faces. whereby all we do is to bring more on the elite. es to sell. With as low as but in all the countries across in our own members to be We discovered that lack low as N6,000 or as high Are you checking for qual- the globe. Living under poverty line How Nigerians are struggling to survive If you want to contact the writer of this story call: +234(0) 803 889 1567, +234(0) 8155184838 [email protected] Food vendor needs help to revive business Name: Faith Emma Ijioma and I offered to shelter her pay their school fees. State of Origin: Delta until she put to bed. She told House rent: They have Age: 23 me she left her sister’s house not asked us to pay yet. The Dependents: Two siblings because the husband. Naval Officer said we can Occupation: I deal in cooked She delivered safely stay in the abandoned room foodstuffs. My mother was in through a caesarean op- for now. the food business before she eration and I had to pay the How have you coped so died in 2015. Business has bills from my pocket and far? My siblings and I have been lucrative until recently with little assistance from been doing well until my when my kindness rendered my loyal customers. Few kindness rendered me bank- me bankrupt. days after delivery, she ran rupt. With the proceeds from mad. I caught her trying to the business, I catered for How did that happen? strangle her baby and when myself and my siblings. When our rent at Rando I stopped her, she tore her where we lived expired clothes and ran out of the A plea for help and I couldn’t afford to re- house naked. My father died in 2009 and in new the rent, my landlord I got her elder sister’s 2015, I lost my mother. Since told us to leave. With the number from her phone and then, I have been taking care help of a Naval Officer, my called but the elder sister ac- of my siblings without any siblings and I got a small cused me of trying to use her assistance from relatives. It neglected room in the for ritual. She said I would be has not been easy but it has Navy quarters. held responsible if anything took just the two of us to the leave. During that period, and in JSS2 while my younger never been this tough. One day, my sister needed happened to her sister. She village because passengers the little money I had on me sister who 12-years-old is This business is all we to make her hair and we were sent me their house address refused boarding the same was exhausted. I barely have in JSS1. I have been paying have but it is dying because directed to a young pregnant in the village and asked me to bus with us. I was with her in money for my business. their school fees for three I have exhausted my capital. woman who did the hair so take her younger sister there the village until August 2018, School fees: I have two years now but they have I need help to grow my food nicely. I was touched when I which I did. when she got better because younger siblings. My young- been at home since this term business and be able to cater heard she lived on the streets I paid for a bus which her family wouldn’t let me er brother is 14-years-old because I could not afford to for my siblings. Analyst: Chinwe Agbeze, Graphics: Joel Samson Thursday 25 October 2018 C002D5556 BUSINESS DAY 25 BDLegalBusiness Business Law Industry Report Practice Intelligence Partnerships NBA-SBL Chairman, others inaugurated into AfCFTA committee for impact and readiness assessment

TONY AILEMEN, Abuja set up to advice government on Ni- geria’s membership of the AFCFTA. He noted that Nigeria’s vision he Chairman of the Ni- for intra-Africa trade is for the free gerian Bar Association movement of ‘made-in-Africa’ Section of Business Law goods, stating that such “goods (NBA-SBL), Seni Adio, and services must have significant SAN alongside other criti- African content in terms of raw Tcal stakeholders, were on Monday materials and value addition to the October 22, 2018 inaugurated into production and service processes.” the Presidential Committee for Im- “Therefore, the African Conti- pact and Readiness Assessment of nental Free Trade Area Agreement the Africa Continental Free Trade must be packaged and implemented Area (AfCFTA), by President Mu- to achieve this vision. This is the only hammadu Buhari. way the majority of Africans will The committee is charged with positively benefit from it.” the responsibility of addressing risks It would be recalled that the associated with signing the agree- recent annual business law confer- ment. Its terms of reference include, ence of the NBA-SBL provided a the assessment of the potential costs platform for stakeholder consulta- and impact of the AfCFTA for Nigeria tion on the endorsement of the in relation to the benefits, identify African Continental Free Trade the short, medium and long-term Agreement (AfCFTA). The confer- measures to prepare Nigerian busi- ence had touched on the potential nesses for the take-off of the AfCFTA of accelerated economic growth trading bloc and a back-up plan of Africa in the light of the march that covers selected scenarios; and, towards continental free trade and review the trade remedy options to the role that the legal profession can safeguard the Nigerian economy play in this. from predatory and other unfair The conference resolved that bar trade practices associations and large law firms in The scope of its impact assess- Africa with the support of their gov- ment would include, inter alia, the ernments, must position the legal in favour of imports. Nigeria was potential impact on government profession to maximize the benefits using its hard-earned oil revenues revenue (for weighted and non- of free trade by seizing the initiative to create jobs offshore instead of trade weighted revenue), coherence to reorganize the profession and developing the manufacturing po- between fiscal policy, structural and guide the inevitable disruption to tential of our very vibrant, young and monetary policies. The assessment the profession that will be enabled dynamic population. would also include impact on Nige- by the AfCFTA, artificial intelligence “Many of our challenges today, rian businesses, domestically and and local competition by global law whether relating to security, unem- regionally, for both trade in goods firms. ployment or corruption are rooted and trade in services. It was also agreed that the Sec- in the fact that we have not been The committees inaugurated by tion on Business Law should deepen able to domesticate the production the President include the Steering the understanding of trade law of our most basic requirements. committee and the Support Tech- within Nigeria by establishing a spe- The recent recession, which was as nical Committee work group. There cialist Trade Law Committee within a result of our over dependence on was a seven months period of prepa- its organisation and facilitate train- external factors, is a clear case of ration to the event culminating into ing seminars on international trade why Nigerians must now aspire to the committee’s inauguration. law and negotiations for public and self-sufficiency The President while inaugurating private sector lawyers. The country is now prepared to the committee on Monday, at the nationwide sensitization programs of signing the AfCFTA President Buhari also identified breakaway from signing agreement, Council Chambers of the Presiden- on the AFCFTA. The team’s work was to also help many years of import dependency that will not provide maximum tial Villa, Abuja, charged members BusinessDay recalls that the gov- government understand the true as the bane of the country’s present benefits for its citizens, added that to address issues raised by the na- ernment had inaugurated a nation- impact of the agreement on Nigeria predicament. “You are to address issues raised tionwide sensitisation committee wide stakeholder sensitization team “For too long, our domestic pro- and address any arising from the to engage them on the implications ductive capabilities were neglected Continues on page 27

‘learning to be’ and ‘learning to do’, Lagos Judges, magistrates inducted as scouts the adult leader should confine himself/herself to merely facilitat- eventeen judges and nine other way of helping to build the ing and educating as credited to magistrates of the Lagos State society, especially the young ones. the founder – Lord Robert Baden SJudiciary were yesterday, in- She also promised to set up a Powell who said: “here then lies ducted as members of the Lagos committee, which will ensure that the most important aim of scout State Scout Council. despite their busy schedule as training”, he stated. The investiture ceremony was judges and magistrates, they find The judges and magistrates, held at the High Court foyer, Ig- time to contribute to the education who were inducted include Justice bosere, as part of activities marking of young people through a value Babajide Candide-Johnson, Justice the 2018/2019 new legal year. system based on the Scouts laws. Morenike Obadina, Justice Jose- Speaking at the induction cer- Lagos Scout Council Commis- phine Oyefeso, Justice Oluwatoyin emony, Lagos State Chief Judge, sioner, Chief Jonathan Tawose in Taiwo, Justice Sybil Nwaka, Justice Justice Opeyemi Oke admonished his short address described the Ayisat Opesanwo, Justice Olaide the new scout members to see them- investiture as epoch making one, Olayinka, Justice Abidemi Okikiolu- selves as agents of positive change. adding that scout movement is a the opportunity to develop their full communities. Ighile and Justice Olabisi Akinlade. Justice Oke told them, to in ad- voluntary non-political educational emotional, intellectual, physical, “It is important to emphasize that Others are Justice Ibironke Har- dition, see their membership of the movement for young people, which social and spiritual potentials as the role adult leaders play consists of rison, Justice Oyindamola Ogala, Jus- scout council as service to humanity is also open to all without distinction individuals, as responsible global assisting young people in achieving tice Ganiyu Safari, Justice Olamide in another capacity. of gender, origin, race or creed. citizens and as members of their the objectives of scouting. while Akinkugbe, Justice Obafemi Adam- She said their induction is an- “Scouting offers young people local, national and international the boy or girls is ‘learning to know’, son and Justice Abisola Soladoye. 26 BUSINESS DAY C002D5556 Thursday 25 October 2018 RIGHTSWATCH LegalBusiness GREYMATTER SERAP gets leave to seek relief compelling Taxation of Offshore Assets: Highlights of the Fashola to account for power spending Presidential Executive Order No. 8 of 2018 he Federal High Court in at the Federal High Court seeking Ikoyi, Lagos on Tuesday “an order for leave to apply for granted leave to Socio- judicial review and an order of Economic Rights and mandamus directing and/or com- Accountability Project pelling Fashola to provide specific (SERAP)T to seek its reliefs to com- details on the privatization of the pel the Minister of Power, Works electricity sector, the names of all and Housing Babatunde Fashola, the companies and individuals pparently, the Executive Order on their residual offshore assets SAN to account for the spending. involved; and to publish widely No. 8 of 2018 was on Monday, after accessing the Scheme by pay- Hon. Justice C.J. Aneke grant- including on a dedicated website AOctober 8, 2018, signed by ing taxes on income earned thereon ed SERAP leave as prayed to seek any such information.” President Muhammadu Buhari in to the FGN, and avoid and stop tax judicial review and order of man- The suit followed SERAP’s Free- furtherance of the current admin- evasion. damus to compel Fashola over dom of Information request dated istration’s resolve to increase tax However, in order to use the the “failure to account for the 7 May 2018 to Fashola giving him revenues and stem the tide of tax Scheme, eligible taxpayers are re- spending on the privatisation of 14 days to provide “information evasion and money laundering by quired to establish a Swiss nexus for the electricity sector and the ex- on the status of implementation Nigerian citizens in and outside the their offshore assets held anywhere act amount of post-privatisation hearing of an argument in court of the 25-year national energy country. The Executive Order essen- in the world or arrange for their spending on generation com- on exparte motion by SERAP development plan, and whether tially creates a window for owners management either in Switzerland panies (GENCOS), distribution counsel Bamisope Adeyanju. the Code of Ethics of the privatiza- of taxable offshore assets, who have or through the Swiss financial sys- companies (DISCOS) and Trans- The Court also ruled that Fashola tion process which bars staff of the defaulted in their tax payment in the tem and institutions. mission Company of Nigeria be put on notice and adjourned Bureau of Public Enterprises (BPE) past, to regularize their positions. to date, and to explain if such the matter to Tuesday 20th No- and members of the National Tagged Presidential Executive VALID DECLARATION Order on the Voluntary Offshore spending came from budgetary vember 2018 for mention. Council on Privatization (NCP) UNDER THE SCHEME Assets Regularization Scheme For an offshore assets declara- allocations or other sources.” from buying shares in companies It would be recalled that (“VOARS” or “EO8” or “the Order”), tion to be valid under the Scheme, Justice Aneke granted the SERAP had in June sued Fashola being privatized were deliberately the Order directed the Office of the the disclosure made by the con- order for leave following the in suit number FHC/L/CS/972/18 flouted.” Attorney General of the Federation cerned eligible taxpayers must: and Minister of Justice (“OAGF”) to be made voluntarily, full, honest, set up in Switzerland a Voluntary complete and verifiable in all mate- CSNAC Petitions disciplinary committee over Offshore Assets Regularization rial respects; Scheme (“the Scheme”). The pur- be made through the Facility (the alleged gross misconduct of Uzodinma’s lawyer pose of the Scheme is to encourage qualified intermediary); and provide opportunity for all be made in accordance with he Civil Society Network Against Halilu’s court on the 17th September, a letter date the 25th September, 2018 categories of eligible taxpayers who compliance procedures required by Corruption (CSNAC), which is 2018, following which an application stating that he was most unsettled by hold offshore assets and incomes Swiss authorities through the pro- Ta coalition of over 150 anti-cor- for leave vide motion exparte was the said development and as such will to, within a period of twelve (12) cesses established by the Facility or ruption organisations and individuals, moved and granted, then the sub- not be able to handle the matter, thus months beginning from October 8, in any other form or manner as may has urged the Legal Practitioners Disci- stantive matter adjourned to the 24th requesting that same be reassigned to 2018, voluntarily declare those as- be prescribed by the Regulations plinary Committee (LPDC) to institute September, 2018 for hearing. another judge. Kindly find attached to sets; pay taxes on them; and obtain governing the Scheme; investigation and disciplinary action “In a flagrant display of improper this petition, a copy of the letter to the compliance certificate under the consent to payment to the FGN against counsel to Senator Hope Uzod- and unfit conduct, unbecoming of a Chief judge. Order shielding them from the legal of the 35% one-time levy on the inma in a suit no FCT/HC/M/8767/18. legal practitioner, the said Mr. Dike “The judge also stated that the said consequences of tax evasion in re- offshore assets declared under the In a petition forwarded to the chair- Esq. allegedly went to town with the ill- Mr. Dike Esq. had admitted to the at- spect of the declared offshore assets. Scheme; and man of the Disciplinary Committee fated news that the procedural interim tempt to give money to the judge’s legal According to the EO8, offshore consent to assessment of future and signed by CSNAC’s chairman, order earlier granted by the Honour- assistant and pleaded for the court’s assets include liquid assets (bank taxes payable on income earned Olanrewaju Suraju, the Network al- able Justice Halilu was procured using forgiveness. balances), stocks and bonds held on residual offshore assets by the leged that Uzodinma’s lawyer, known monetary inducement and further However, we believe as a civil in portfolios, insurance policies, relevant Tax Authority. as Dike exhibited flagrant display of bragging boastfully that the Honour- society organization that lawyers like shares in listed or unlisted offshore improper and unfit conduct, unbe- able Justice Halilu was his boy.” Mr. Dike Esq. need to be appropriately companies, property assets and ELIGIBLE TAXPAYERS coming of a legal practitioner. CSNAC noted further that the disciplined and reprimanded for his all manners of assets held directly According to the Order, all per- The petition read: “We write to court’s attention was drawn to the said reprehensible conduct in other to or indirectly through corporate sons, entities and their intermediar- humbly urge you to use your good of- misconduct by the learned counsel for protect the sanctity and integrity of the entities, trust structures and non- ies holding offshore assets and are in fice to carry out an investigation of one the respondent, Mr. Oluwatosin Esq. legal profession and the judiciary and Nigerian resident companies and default of their tax liabilities in any intermediaries. way whatsoever are eligible to par- Mr. Dike Esq., the Applicant’s Counsel and the court’s Legal Assistant; Mr. to also serve as a deterrent to lawyers This piece reviews the provisions ticipate in the Scheme. Particularly in SENATOR HOPE UZODINMA & Affiku Kuje also confirmed that the said of his ilk. of the EO8 and the implications of owners of offshore assets who: 2 ORS AND HON. ABDULWAHAB Mr. Dike Esq. called him and wanted “The above request is necessary in the Order on affected owners of are yet to declare them to the MOHAMMED ESQ. & 2 ORS SUIT to give him money for the Honourable line with the glamour for legal profes- offshore assets. relevant authorities or have not been NO. FCT/HC/M/8767/18’ Judge, an attempt which was resisted sion to stamp out corruption of all making full declaration of their tax- “The said counsel who represents by the said Mr. Kuje. forms from the legal profession and WHAT THE ORDER IS SET TO able income/assets; Senator Hope Uzodinma and 2 ors in “The Honourable Judge reacting most importantly the judiciary, which ACHIEVE have been underpaying or un- the aforestated matter which bothers to the said development wrote to the is the much-hyped last resort of the For the duration of the Scheme, eli- der-remitting the taxes due; on Certiorari assigned to Justice Y. Chief Judge of the FCT High Court in common man,” the petition said gible taxpayers will be encouraged though registered with relevant and given opportunity to: tax authorities, have additional dis- voluntarily elect to access the closures to make or need to amend TAXLAW Voluntary Offshore Assets Regulari- prior disclosures or have not been zation Facility in Switzerland (“the filing returns as appropriate; New transfer pricing regulations, guidelines and circular Facility”) and obtain an Eligibility are under a process of tax audit Certificate to declare offshore as- or investigation with the relevant Tax OSEROGHO & ASSOCIATES their transactions sets through the Scheme. However, Authority but are prepared to settle Other key objectives of the TP Reg- payment of a two percent (2%) fa- the tax dispute out of court; he Federal Inland Revenue ulations 2018 include the reduction of double taxation and the provision of cility access fee and submission to have applied for and received Service (“FIRS”) with the ap- compliance procedures required by FGN Special Clearance to access proval of the Federal Minister of a level playing field for both national T Swiss authorities are preconditions to the Scheme; Finance, have published the gazetted and multi-national enterprises. version of the Income Tax (Transfer The commencement date for the doing this. It should be noted that the are not already under investiga- Pricing) Regulations 2018 (“TP Regu- TP Regulations 2018 is retrospectively Facility is the qualified intermediary tion by law enforcement agencies lations 2018”). 12th March 2018; though FIRS has by a of the Federal Government of Nigeria in Nigeria or any other country and Also published by FIRS are the October 2018 Public Notice extended (“FGN”) rendering sovereign advi- have not been charged with any Guidelines on Transfer Pricing Reg- the compliance commencement start sory services for the Scheme; crimes including theft of public ulations and a Public Notice on Regulations 2018 is to provide a legal date for the administrative penal- regularize their offshore assets funds or obtaining offshore assets amongst other things, the set date for framework for the implementation ties for non-compliance with the TP held anywhere in the world by through corrupt practices; and the enforcement of the TP Regulations of Transfer Pricing Regulations. This Regulations 2018 to now be 31st paying the taxes due on them, or have been determined to be in- 2018 Administrative Penalties for key objective is expected to ultimately December 2018. voluntarily elect to regularize their nocent after investigations or legal non-compliance with the TP Regula- reduce tax evasion; and tax eva- tax status for all the relevant years by proceedings. tions 2018. sion commonly occurs through the Arm’s Length Principle paying a one-time levy of thirty-five CONSEQUENCES OF NON- The TP Regulations 2018 has there- under-pricing or the over-pricing of The TP Regulations 2018 treats a percent (35%) of the value of their COMPLIANCE fore now replaced the Income Tax transactions between related or con- company’s Head or parent office as offshore assets to the FGN in lieu of As stated in the Order, any defaulting (Transfer Pricing) Regulations 2012. nected parties who infringe the arm’s all outstanding taxes, penalties and One of the key objectives of the TP length principle when undertaking Continues on page 28 interest; ensure full tax compliance Continues on page 27 Thursday 25 October 2018 C002D5556 BUSINESS DAY 27 GREYMATTER BDLegalBusiness Taxation of Offshore Assets: Highlights... NBA-SBL Chairman, others inaugurated into AfCFTA... Continued from page 26 to make use of the information it has Continues on page 25 Community of West African States establishing a coordinating, imple- obtained on all Nigeria-related off- , ECOWAS, currently being chaired mentation and monitoring body for eligible taxpayer who fails to take shore incomes and assets through and Nigerians, based the existing by Nigeria, are Signatories to the Trade Policy, that would cover the advantage of the Scheme shall, after automatic exchange of informa- domestic and regional policies as it AfCFTA. AfCFTA, the Commonwealth and the expiry of the 12-month grace tion (“AEI”) with other countries to relates to trade. “The ECOWAS Commission the WTO. period, face the legal consequences prosecute tax offenders who fail to Results of the consultations, (that is the Executive Secretariat) “While the stakeholder engage- of tax evasion, including: investi- regularize their tax status in respect show that the stakeholders raised is moving ahead with ECOWAS ment was constructive, going for- gation, charges and enforcement of offshore assets under the Scheme. key issues including need to check Members to prepare the AfCFTA ward, strategic trade stakeholder procedures concerning offshore It would be recalled that Nigeria abuse of rules of origin, Smuggling Market Access Offer for Trade in engagement shall not be one-off. assets held by them anywhere in the is a signatory to the Treaty on AEI arising from difficulties in border Goods; and, a Market Access Offer The stakeholder engagements, for Trade in Services. world, as well as prosecution for tax (an initiative of The Global Forum controls, un-quantified impacts as undertaken for the AfCFTA, Because ECOWAS is a Customs offences under relevant extant laws; on Transparency and Exchange of legacy preferential trade agree- shall be sustained as regular work. Union (CU), these offers shall be Thank you to all who supported the loss of right to plea bargain; of Information for Tax Purposes) ments. He listed the issues to include, deemed binding on all ECOWAS stakeholder engagement. Reward liability to pay in full the principal which, as at December 2017, had abuse of rule of origin, low capac- Members, including Nigeria, as the for work is more work. been signed by over 95 countries for sum due together with one-hun- ity to conduct international trade,” ECOWAS Market Access Offer shall The Minister revealed that the dred-percent (100%) of all interest the purpose of global exchange of amongst others be submitted to the AfCFTA process terms of Reference for the Presiden- and penalties arising therefrom; information on illicit financial flows Other issues raised include Low at the 13th Meeting of the Negotiat- tial Committee on AfCFTA Impact liability to undergo comprehensive and tax evasion. capacity and capabilities of local ing Forum in Addis in November. Assessment and Readiness include tax audit; withdrawal of any reliefs Similar instruments to VOARS business to conduct international AfCFTA Stakeholder Sensitiza- the assessment of the potential previously granted to the defaulting have been used by many coun- trade, cost of finance, insufficient tion and Consultations were under- costs and impact of the AfCFTA for taxpayer; and the possible appropri- tries of the world. Since the 2016 energy; and taken from March to October 2018. Nigeria in relation to the benefits, ation of any sum paid in relation to revelations from the Panama Pa- Transport logistics infrastruc- In the exercise, approximately, no identify the short, medium and the Scheme as part-payment of any pers, many countries have shown ture, to mention a few. fewer than 34 groups and asso- long-term measures to prepare further outstanding tax in respect of renewed interest in, and beamed The President however, said ciations were sensitised and con- Nigerian businesses for the take-off undisclosed information. searchlight on, the activities of their these issues are being addressed by sulted, while approximately 3,017 of the AfCFTA trading bloc and a citizens which have the effect of tax the ERGP, even as he said govern- natural persons were engaged in back-up plan that covers selected WHAT DO PARTICIPANTS evasion through investments hid- ment is “determined to break away the various sessions and meetings. scenarios; and, review the trade The engagement produced 6 STAND TO GAIN UNDER THE den in offshore tax havens. They from the past practice of committing remedy options to safeguard the are increasingly relying on global Nigeria to treaties without a definite Communiques, which were adopt- Nigerian economy from predatory SCHEME? ed and signed in 5 geopolitical platforms/initiatives, such as the implementation plan to actualize and other unfair trade practices The VOARS offers various reliefs to zones, while the South West Geo- eligible taxpayers who take advan- AEI, to curb the incidence and seek the expected benefits while mitigat- More specifically, the scope of political Zone summary was issued impact assessment would include, tage of the Scheme while it subsists. recovery and repatriation of evaded ing the risks” “We cannot go back to the days in Lagos. inter alia, the potential impact on As provided in the Order, the ben- taxes. As reported by the Organisa- of signing agreements without un- During the engagement, 12 government revenue (for weighted tion for Economic Cooperation and efits to be derived by eligible persons derstanding and planning for the private sector groups submitted and non-trade weighted revenue), and entities who truthfully and Development (OECD), Australia consequences of such actions. And inputs, conveying their group posi- coherence between fiscal policy, voluntarily make appropriate decla- recovered about 326 million EUR in our country being the worse-off. tions on the AfCFTA in response to structural and monetary policies. rations, pay the required taxes/one- 2013 due to exchange of informa- “Your task as members of the the nation-wide call for inputs on The assessment would also include time levy and comply with all the tion. Sweden recovered 130 million AfCFTA Impact and Readiness As- all media platforms. impact on Nigerian businesses, do- regulations governing the Scheme, EUR due to AEI requests and 200 sessment Committee is to address The sensitisation witnessed the mestically and regionally, for both include the following: permanent million EUR due to voluntary dis- the issues raised during the nation- emergence of diverse opinions with trade in goods and trade in services. waiver of criminal prosecution for closures between 2010 and 2014. wide stakeholder consultations on many stakeholders supporting the The assessment team is ex- tax offences in relation to offshore France recovered about 1.85 billion the AfCFTA. AFCFTA. pected to review smuggling trends, assets, waiver of penalties and inter- EUR as at September 2014 under “You are expected to develop Some pointed to the market op- including the potential escalation est on the declared and regularized its voluntary disclosure program short, medium and long-term meas- portunities for growth for Nigerian of smuggling and abuse of the rules offshore assets; immunity from tax while the total amount received by ures that will address any challenges exporters of goods and services; of origin and address specific ques- audit of the declared and regularized countries in unplanned additional arising therefrom. scope for industrialization through tions such as how AfCFTA provi- offshore assets; receipt of Offshore revenue as a result of voluntary The Steering committee, headed economies of scale in a single mar- sions interact with legacy bilateral/ ket; the mechanism for resolving Assets Regularization Compliance disclosure programmes and other by Minister of Industry, Trade and multilateral trade agreements. trade disputes; cooperative mecha- Certificate from the FGN on the similar initiatives (in the lead-up to Investment, Okechukwu Enelama Also to be considered is the nisms for regulating and promot- national security implications of declared and regularized offshore the first exchanges done pursuant and Chief of Staff to the President ing intra-African trade; and, the AfCFTA especially with the move- assets; and to the AEI Treaty) stood at circa 80 , Abba Kyari as co-chairman, is expected to submit its reports in 12 AfCFTA as a platform for Nigeria’s ment of persons. freedom to use or invest their billion EUR as at March 2017. weeks, designing a clear roadmap continued leadership in Africa as In assessing Nigeria’s readi- We note that the EO8 is silent on duly regularized residual offshore for Nigeria as it relates to the AfCFTA Africa remains the centerpiece of ness for AfCFTA, the Committee assets in any manner in Nigeria or the status of offshore incomes and The Agreement Establishing the Nigeria’s foreign policy. is required to evaluate specific overseas, and thereafter be subject assets whose owners have partici- African Continental Free Trade Stakeholders who support the measures to prepare Nigerian busi- only to payment to the FGN of an- pated and obtained amnesty previ- Area (AfCFTA) was signed in Ki- AfCFTA were specific in pointing nesses for export trade, taking into nual tax on income earned on the ously under the VAIDS. It is however gali, Rwanda, at the 10th Extraordi- to policy sectors where comple- consideration, ongoing programs residual offshore assets. presumed that amnesty granted in nary Summit of the African Union mentary action is required by the and reforms. However, it should be noted respect of offshore incomes and (AU), on 21st March 2018, while Federal Government, as Nigeria The measures include critical that the stated reliefs/benefits are assets already declared and regu- 49 Signatories and 7 Ratifications, prepares for the AfCFTA. trade enhancing projects, policies, not guaranteed in all situations. larized under VAIDS, should have have been witnessed so far. They identified specific areas laws, regulatory reforms and com- Specifically, eligible taxpayers who equal effect as a compliance cer- Since then, African Union (AU), requiring intervention and comple- pliance actions to be implemented participate under the Scheme are tificate granted under VOARS for in partnership with the United menting action include, predictable over the next 5- 10 years. The meas- only qualified to receive the waivers the same set of offshore assets. It Nations Economic Commission cost effective power supply; cost of ures would include non-tariff and and benefits, where such will not is suggested that the Regulations for Africa (UN-ECA), had engaged energy as accounting for the major other non-technical barriers and prejudicially affect or invalidate any should clearly exempt owners of in serious drive to sensitize stake- cost of doing business in Nigeria. transitional arrangements that if Others include reducing the court order or judgement already such assets from the ambit of VOARS holders on AfCFTA. not addressed, will impede export cost of money (interest rates) and obtained, in respect of any default or expressly state that clearance cer- Minister of Industries, Trade of Nigerian Goods and Services and expanding trade finance/micro- erode the expected benefits from in payment of tax for which interest tificate issued under VAIDS suffices and Investment, Okechukwu credits and finance for MSMEs, AfCFTA. for the purposes of VOARS to avoid Enelama who is co- Chairing the and/or penalty have already accrued. fostering an Enabling Environment The Presidential Committee will cases where persons cleared under Presidential Steering Committee, said African Union Commission for Business that eliminates, mul- also explore actions to improve and VAIDS become subjects of tax audits REMARKS (AUC), United Nations Economic tiple taxation by government and enforce the provisions of ECOWAS The key objectives of the EO8 remain and prosecution for failing to comply Commission for Africa (UN-ECA) highway tolls, internal checkpoints; and other trade treaties with a view largely the same with that of the EO4 with VOARS. At any rate, owners of and the Rockefeller Foundation, and, reduces the level of insecu- to assessing practical and policy- which was effected between July offshore assets are advised to seek in collaboration with private and rity, as well as investing in trade relevant aspects of implementing 2017 and March 2018 on the Volun- professional advice on their tax public sector stakeholders in Ni- Infrastructure (seaports, inland dry the AfCFTA, and recommend a tary Assets and Income Declaration compliance status and in appropriate geria are organising the “Africa ports, road and railway networks); framework to mainstream trade Scheme (“VAIDS”). As was the case cases, take necessary steps to comply Trade Forum” (ATF), as a major They also called for the re- into national development plans with VAIDS, the FGN, in addition to with the Scheme. stakeholder engagement and sen- opening historic Trade Corridors and programmes to assure coordi- curbing corruption and illicit finan- sitisation FORUM, for Lagos on the in the North East, South-South and nated and sustained implementa- cial flows, intends to boost its rev- 2nd and 3rd November, 2018, as South West for trade and invest- tion. enues by expanding the country’s tax The Grey Matter Concept is an part of move to gather the twenty- ment facilitation, mainstreaming The Committee is made up of base and encouraging compliance initiative of the law firm, Banwo two ratifications required for the informal unrecorded trade into the Steering Committee Members and a among taxpayers through VOARS. & Ighodalo AFCFTA to come into force. formal economy and developing a Technical Work Group. The Steering Notably, every taxable person/entity DISCLAIMER: This article is only The Forum will focus on how programme for Micro- Small and Committee Members will provide Medium Enterprises, addressing in Nigeria is under statutory obliga- intended to provide general infor- the implementation of the AfCFTA steer and approve the work of Com- the long-standing problem of trans- tion to voluntarily declare income mation on the subject matter and can be positioned to provide a plat- mittee. The Steering Committee shipment and dumping, piracy, Members include core members earned and assets acquired from all does not by itself create a client/at- form for addressing Africa’s devel- smuggling and other injurious trade to provide general oversight and sources, including offshore assets, torney relationship between read- opment challenges to industrialise, grow African economies, create practices by non-African trading support members to be consulted file appropriate tax returns annually ers and our Law Firm. Specialist jobs and reduce, if not eradicate partners, operating through Nige- on specific areas such as infrastruc- and pay the tax due to the relevant legal advice should be sought about poverty completely. ria’s neighbours in complicity with ture, economic sectors, fiscal and Tax Authority. the readers’ specific circumstances Thirteen (13) of the fifteen (15) individual Nigerians, empowering monetary policies, and trade rules The FGN has indicated its resolve when they arise. Members state of the Economic women in international trade; and enforcement. 28 BUSINESS DAY C002D5556 Thursday 25 October 2018 INDUSTRY FILE BDLegalBusiness 2018 CIArb conference expected to host Justice Dipeolu sworn in as new Ogun chief judge after retirement of Justice Olopade international arbitrators across Africa ...pledges robust adminstration of criminal justice RAZAQ AYINLA, Abeokuta ew Chief Judge of Ogun State, Justice Mosunmola NArinola Dipeolu has pledged to continue from where the retired Chief Judge, Justice Olatokunbo Olopade stopped, saying robust administration of criminal justice, speedy hearing and adjudication on cases, among other judicial func- tions will be the vocal points of her adminstration on the bench. Justice Dipeolu, who was sworn in at Ogun State Executive Council Chamber in Abeokuta on Monday, declared that there must be concerted judicial efforts to deploy sound admin- Justice Mosunmola Dipeolu, new Chief Judge of Ogun State being congratulated by stration of criminal justice to ensure Governor Ibikunle Amosun that cases are speedily heard and ad- judicated upon in order to decongest prisons located across the State. While soliciting for the contin- Adedoyin Rhodes, Vivour ued support of government and the judicial body in the State, after the he Chartered Institute of point qualified and experienced Ni- taking of usual oath of office, secrecy Arbitrators (CIArb) is an gerian/African arbitrators? Are we and allegiance, she pledged that , international organisa- building up our arbitral institutions? “I will not disappoint the State, our tion established in 1915, Is there enough cooperation be- forebears, my colleagues. I will not over a hundred years tween African Arbitral institutions? drop the ball and I will always keep ago.T The CIArb is a charitable body What further actions do we need to the flag flying”. whose main object is the promotion take to ensure we have a qualified Speaking after the swearing in, and facilitation of dispute resolution and experienced crop of African Governor Ibikunle Amosun of Ogun by arbitration and other alternative Arbitrators and alternative dispute State described Justice Dipeolu’s means of dispute resolution, other resolvers and good representation new office, as a great one in the legal Justice Mosunmola Dipeolu, new Chief Judge of Ogun State pixs by Razaq Ayinla than resolution by the courts. The in the international arbitration profession and the State with much land, attended the Nigerian Law Institute’s membership is multi- arena? Are we effectively utilizing expectation and therefore, she should School, Lagos and was called to disciplinary, composed of over mediation in settling disputes?” perform her duty as Chief Judge of the the Nigerian Bar in July 1981. 15,000 members located across 133 Speaking further on the role State without fear or favour. She started her career as a Pu- countries of the world. of arbitral institutions, the CIArb The governor said, This swear- pil State Counsel at the Lagos State Ahead of its 2018 Annual Confer- Chair said, ing-in comes with a lot of huge Ministry of Justice in August 1981. ence and Gala Nite, which opens “Arbitral institutions are private responsibilities and more is de- In January 1985, she was ap- today in Abuja, the Chairman of the organizations which play a pivotal manded of you, knowing the status pointed to the Bench as a Magis- institute, Adedoyin Rhodes-Vivour role in the development of arbitra- of Ogun State in the comity of States trate in the Lagos State Judiciary has said that the conference which tion law and practice. The primary in Nigeria”. and rose to the position of a Senior is slated to hold at the Transcorp function of an arbitral institution is The Governor however enjoined Magistrate in 1991. Hilton Abuja, would seek to address to promote arbitration as the primary Justice Dipeolu to provide the right Justice Dipeolu left the Lagos challenges and factors militating tool for the resolution of disputes. leadership to complement the other State Judiciary in December 1991 against the use of ADR as a tool for According to her, they were two arms of government, assuring of and was engaged in private prac- economic development in Africa. neutral bodies, created to facili- judicial independence from his suc- tice until November, 1995 when Cross section of members of the bench in She said, “The conference gives tate and support the arbitration cessor, who would key into what the she was appointed as a Chief us the opportunity to ask ourselves Ogun state with Justice Kolawole Mabekoje Magistrate 1 in the Ogun State process, through the provision present administration has done. sitting in the front row at the swearing in of questions, to learn from the experi- of flexible arbitration services to the new Chief Judge. Judiciary where she rose through ence of other climes and to assess disputing parties. Such services Short Profile of New Ogun the ranks to become a High Court our capability and capacity in the include the provision of arbitration State Chief Judge Judge in May, 1999. field of international dispute resolu- rules which parties can incorporate Justice Mosunmola Dipeolu was Justice Olatokunbo Olopade. The Head of Ogun State’s tion. We have delegates and speak- into their contracts, registrar ser- first appointed as the acting Chief The new Chief Judge holds a Bench has attended several na- ers from different regions of the vices, administering/supervising Judge of the State on Tuesday 28th Bachelor of Law Degree (LL.B) from tional and international seminars world and the event is expected to the process and lending support to August, 2018 after the retirement of the University of Buckingham, Eng- and workshops. be a great learning and networking arbitral tribunals, appointment or experience.” recommendation of arbitrators and Disclosing this year’s theme: generally providing procedural and “Arbitration and ADR in Africa: logistical frameworks for the resolu- New transfer pricing regulations, guidelines and circular... Challenges, Gains and Lessons for tion of disputes. Where connected persons fail to the degree of comparability between the Future,” Rhodes-Vivour stated “Arbitral Institutions also provide Continued from page 26 that the focus was on contemporary adhere to the Arm’s Length Principle the controlled transaction and un- training to ensure a crop of suitably a separate and connected entity to its frontline issues in Arbitration and in their transactions, FIRS is permit- controlled transactions. qualified arbitrators as well as put- subsidiary Permanent Establishment ted to make necessary tax adjust- ADR in Africa and is expected to ting in place rules of ethics which office or entity (“PE”), with regard to ments to ensure that the appropriate Advance Pricing Agreements throw up issues bordering Arbitra- arbitrators are obliged to comply any commercial transaction under- taxable profits from the connected A connected person can, as an ef- tion and ADR across Africa, Arbitral with,” Rhodes-Vivour added. taken between the parent/head office transactions are collected, ficient tax strategic plan, approach institutions, amongst other things. The Nigeria Branch is composed and its subsidiary office, being treated FIRS to execute a Advance Pricing “The topics have been carefully of 1,173 members from different as controlled transactions that must Transfer Pricing Methods Agreement (“APA”) which Agreement chosen to give insight into the chal- parts of Nigeria. The Secretariat is comply with the TP Regulations 2018. In determining whether a transaction will provide some set criteria and cer- lenges facing the development of located in Lagos and we have Chap- Persons are also deemed con- or a series of transactions are consist- tainty for determining the connected arbitration in Africa, the gains we ters in Abuja and Port - Harcourt. nected where one of them has the ent with the arm’s length principle, person’s future transfer pricing com- have achieved and the way forward The Chairperson revealed that the ability to control or influence an- one of the following Transfer Pricing pliance obligations. The duration of for arbitration in Africa,” she said. purpose of the Chapters is to pro- other or other connected persons methods will be applied:- the Com- a first APA must not however exceed Rhodes-Vivour added that diver- mote and represent the Institute, in making financial, commercial or parable Uncontrolled Price (“UP”) three (3) years. sity was key to longevity and legiti- its services, arbitration and ADR operational decisions. Method; the Resale Price Method; the All APAs must adhere to the provi- macy of international arbitration. in its locality and provide localized The Arm’s Length Tax Principle Costs Plus Method; the transactional sions of the TP Regulations 2018. Diversity connotes the inclusion networking and socializing op- simply requires that the conditions Net Margin Method; the Transaction- Mandatory TP Declaration of a controlled transaction, between of all including on generational, portunities for members within the al Profit Split Method; or any other All connected persons are now re- geographical and gender basis. connected persons, whether resident method which FIRS may prescribe. quired to, within six (6) months of the Chapter’s geographical area. or non-resident, must not differ from The preferred TP method to be end of their accounting year, declare Highlighting some practical issues The 2017 Conference was held in to be discussed, she said, the conditions that would have ap- adopted will depend on various any relationship that they might have Lagos; the 2016 conference was held plied where the connected persons “What proactive steps are being factors including the strength or with any other person or persons, in Port - Harcourt, Rivers State, and are separate, independent and neu- weakness of such a TP method whether or not the connected persons taken to ensure that diversity con- this year Abuja, the Centre of Unity tral parties, undertaking comparable considered; the appropriateness of are resident or non-resident. cerns are receiving attention? When - would play host to members of the transactions under comparable such a method; the availability of called upon to appoint arbitrators CIArb and its guests from across the circumstances. reliable TP data or information and To be continued next week are Nigerian parties willing to ap- country. Thursday 25 October 2018 C002D5556 BUSINESS DAY 29 GARDEN CITY BUSINESS DIGEST PH still bubbles as Ikwerre council revenue summit sets UN, AU, continue in girl-child elevation new path on fiscal viability strategies mittee, which organised a two-day ...Investors, council, reach understanding to boost revenue revenue summit. There, Ikwerre LGA INNOCENT ETENG & FAVOUR ICHEMATI and investors reached a formidable ... Building permit to be intensified as taxes to be harmonised agreement. We, in accordance to the or some international orga- law, established a revenue committee. nizations, the International IGNATIUS CHUKWU & FAVOUR ICHEMATI “We are also working towards Day of the Girl Child ought putting an end to the issue of double to be celebrated everyday, thoughF it is only for October 11 kwerre local council area of taxes. The Rivers State House of Rivers State which controls the Assembly has shown us the way every year, a global day dedicated largest chunk of the Ikwerre forward on that. A monitoring to celebrate the girl child, highlight ethnic nationality, the largest committee has been constituted. the challenges she faces in society ethnicity in the oil-rich state, The committee will go from door to and drum support for her empow- Ihas concluded a revenue summit that door and insist that every building erment and education. has high hopes of launching the area in Ikwerre LGA, from May 29, 2015 To celebrate her this year, under to high fiscal viability. till date, moving forward; we want the theme; “Empower Girls: Before, This is many resolutions were to see the appropriate building ap- During and After Conflict”, the youth reached in a meeting with investors proval as done by law in the council. division of the African Union - African in the council area that may facilitate Government is a continuum and Youth Union Commission (AYUC) - faster revenue collection and compli- whether it is done by previous lo- gathered delegates from the United ance in the vast area that covers many cal government or now, it is still Nations (UN), government, human sensitive economic installations. Ikwerre Local Government that has right groups, security agencies, me- The new move is spearheaded by done it. We are aware from the intel- dia organizations, professionals and the new council chairman, Samuel ligence we have gathered that a lot others to enlightened school girls Nwanosike, who revealed that many of criminals have gone to construct on how to overcome their everyday rots plaguing the council were un- fake stamps and sit in the comfort of gender-based challenges. covered when he took over since June their bedrooms to issue building ap- “In our own way, we are trying to 28, 2018. provals to unsuspecting developers.” push out enlightenment to ensure Some of the sterling resolutions Saying there is only one place that parents and everyone in soci- at the revenue summit include the where building approvals are done; ety takes care of the girl child,” says setting up of a revenue court to take that being the office of the Director Ataisi Ntene, coordinator of AYUC issues of revenue to the front burner. of Works in Ikwerre LGA. “Every other in Rivers State. Top on the agenda would be issue thing done outside there is illegal. We Girl child activists and pro- of building permit by the council are mandating this committee to go fessionals took turns educating expected to generate huge revenue. ahead, investigate, and fish out these participating school girls on how There is the fear however that syndi- culprits. We have also agreed with to bury old traditions that say girls cates have been issuing fake building the judicial arm of government at are inferior to men. Even more, approvals to investors. the local government level to set up a Atte Oloruntoba Timothy, who revenue court where these defaulters represented the UN at the event, Speaking after the summit, Samuel Nwanosike, Ikwerre LGA chairman Nwanosike, a staunch believer in the would be brought to book because we told the school girls to square up as scientific research has shown that vision and supporter of the Nyesom ernment council to generate revenue allocation that comes in. do not have the right to take the laws the girl child could be smarter than Wike administration in Rivers State, so as to cushion the financial burden He said: “We decided to follow the into our hands.” the boy child. said the law allowed every local gov- of the council alongside the federal part of honour by constituting a com- The revelation in a London apartment: they may know salvation and ... Is what your ancestors did to others holding both families down? receive Christ. Pray that their lives should change right away out in solitude to meditate Your victim’s grief will surely by your say-so. Pray, pray, and and seek communion with bring you grief. pray; from your heart and be- God/Holy Spirit. This is what So, the Holy Spirit revealed lieve it. The old order required Lara Joseph; area pastor at the to Mummy Lara that atone- seven men to be sacrificed to Redemption Model Parish in ment is important in certain atone. Now, Jesus has done Elelenwo, PH, did two months offences, even to born again that, but you must draw from ago. She took off for London on believers, even if Christ had your account by connecting vacation. She is the fire-fire type paid with His Blood. His blood to salvation and sending it to Port Harcourt by Boat and rest is important for her has only made salvation avail- the descendants of those your With age and type of work. While in able but you must draw it down ancestors harmed or crushed her daughter’s apartment in a in the case of grievous evil IGNATIUS CHUKWU without just cause. That is what part of London, she rested and done to people. Since that evil the Holy Spirit revealed. The ou have been strug- later decided to take days off in sentenced that family and their sins of the father must be visited gling all your life but solitude to inquire and insist descendants to pain and suf- on the sons up to fourth gen- limited success or on getting answers to some- fering, the descendants of the eration. You must address this none at all continues thing that had bothered her for evil-doer will also suffer same particular spiritual clause; you toY hold you down. You do years: Why do true born again fate, even if both descendants alone, not your pastor, not any all the fasting (if you are the believers still suffer from lack know or do not know each intercessor. When you restore believing church person) or of breakthroughs despite the other or know their sufferings. them through prayers, you too all the strategies that experts efforts of their intercessors? She Solution? It was revealed to will be restored. Simple! recommended but you are still kept asking in prayers. Later, Mummy Lara that atonement Soon, they would get break- held down. Now, your spiritual she was led to realising that Lara Joseph would require the descendants throughs because you have mentor discerns that it could be often, it is from ancestral curse. of the offender to pray out the them. The Gibeonites thereafter the Gibeonites. David pleaded atoned. Soon, too, you begin ancestral curses or things from That, she already knew. But, is descendants of the victim out mourned for long, wondering for how to atone but the men to experience breakthroughs your family lineage holding you the blood of Jesus not enough of suffering, first. They alone what they did wrong, and if of Gibeon said nothing, except because the Holy Spirit who down. They call you out to pour to wipe off all old things? She hold the power to restitute covenants through Jehovah’s seven men from the house of alone knows both families and prayers and break the yoke, kept banging at the door of and to rescue the victim’s de- name were no longer reliable. the man who ordered the mas- their situations must show you but, you are still down. Now, heaven for direct answers. Now, scendants. How? You stand Soon, famine broke out in sacre, that they may be hanged that something has changed the solution has been revealed the revelation came on how to out and stand in the gap and Israel, and it went on for three and tortured till death at their on the other side by changing by the Holy Spirit, for those escape from this curse; 2 Sam- begin to pour out your heart of years. David was now on the public square. This would heal your own situation. That is the that believe. This took place to uel, 21:1 down. The children of prayers, asking that God bless throne and he inquired of the their grieving hearts and only evidence you need. When you a certain woman of God in a Israel had a covenant with God and restore breakthrough to Lord through Samuel. An- then would the famished land begin to get breakthroughs, certain apartment in London. not to attack the Gibeonites. the descendants of those your swers came, it always comes. of Israel be healed, too. This know that they too have been It’s always good to take time Later, Saul led his army to attack ancestors ruined. Pray that It was traced to the killing of was done, and relief came. See? rescued. 30 BUSINESS DAY C002D5556 Thursday 25 October 2018 INVESTING IN RIVERS STATE

NAFEST: Traditional How ‘Commonwealth University’ will set the pace for wrestling, dance drama, tales by affordable but quality education in Niger Delta – bishop moonlight, others, take centre stage as Rivers State is about to witness another form of educational boom. This may be because private schools from nursery to university level in Nigeria are seen as gold which only the rich can afford. The hope of the in PH poor youths hungry for university education especially in the Niger Delta oil is huge. The General Overseer s activities for (GO), Moses Kattey, the archbishop of the Commonwealth Covenant Church Inc in Alode, Nchia – Eleme, the ongoing Na- Rivers State, said that the hope of the poor praying for higher education opportunity is achievable through tional Festival of his pet project, ‘Commonwealth University’, billed to take off from September 2019. In this interview with Arts and Culture, Atagged NAFEST Rivers our correspondent, GODWIN EGBA in Port – Harcourt, the bishop who holds a doctorate degree in Physics 2018 advance in Port Har- unveils plans and preparation for effective take-off of the university. He also expresses personal opinion court, the Rivers State cap- on why a true church should not entice its members with financial empowerment for the sake of retaining ital, the Festival Media/ Publicity Committee has their membership. The bishop says he out to bring quality university education to the poor. Excerpts: released the schedules for events of Wednesday, Oc- A realistic dream sustainable businesses tober 24, 2018 and Thurs- ommon- to be run by the Univer- day, October 25, 2018 re- wealth Cov- sity to generate revenue spectively. enant Univer- to take care of overhead Chairman of the Festi- sity is a sure cost. “God will make a val Media/Publicity Com- dream that way where there seems to mittee, and Rivers State Chas come to stay. It is a be no way”, is a wisdom Commissioner for Infor- God’s intended project to us who believe. We are mation, Emma Okah, in for indigent eligible Ni- not profit-oriented but we a press release said the ger Delta Youths who are shall get there. events would begin with hungry for academic pur- Belief in education for NAFEST Cultural Round- suit. This is the mission the poor especially and table on Entrepreneurship of the university billed how the church can help at the Obi-Wali Interna- to take off by September When we started, we tional Conference Center, 2019. were giving scholarships Port Harcourt by 9am. We are at an advanced to people in our church, ‘Ayo’ Competition will partnership discussion we trained some in some take the centre stage at Rex with some overseas and skills, but where are they Jim-Lawson Cultural Cen- Nigeria universities such now? So far none is in the ter, Port Harcourt at 2 p.m. as the Cyprus University church. We were doing it while spectators would be near Israel and the Uni- to retain our membership thrilled with Traditional versity of Ibadan, Oyo but it didn’t work. Wrestling Competition State, Nigeria, now wait- I don’t advocate the by 4pm at the Sharks Sta- ing for their response. We use of welfare to keep dium, Port Harcourt. are also negotiating with members or people in the Barrister Okah said banks, individuals, and church but the power of spectators would also be other organizations; all God. The kingdom mes- entertained with Dance sage is about power as Drama at 6 p.m. at Obi contained in 1st Corinthi- Wali International Confer- ans 4:20 - “For the king- ence Center, Port Harcourt dom of God is not a matter with the last performance of talk but of power”. Our of the day, Tales by Moon- members with us are by light scheduled for 7 p.m. Poverty is of power of God. Some peo- at the same venue. ple come to the church for Okah also announced the mind and financial help and once programme schedules they are helped they find for Thursday, October 25, I don’t believe their comfort zones. 2018. He said events would poor Nigerian Where the priority kick off with Children’s Es- should be say Writing/Crafts Com- youths are poor Bishop Moses Kattey First, I should be able petition by 10 a.m. at Dr. to pay our ministers who Obi Wali International in mind but are working for God to Conference Center, Port geared towards our take- academic qualifications, academically. Poverty is of they can be moral and spiritual integ- enable His gospel draw Harcourt. off next year. the mind and I don’t be- people to Him. It’s the Lovers of Traditional poor economi- Unique among other rity. We cannot go an inch lieve poor Nigerian youths without the NUC registra- power of God that keeps Cuisines would get a full private universities in are poor in mind but they His people in the church. dose of entertainment as cally and that’s Nigeria tion and so we are dis- can be poor economically cussing with the authori- I stress here that attach- the competition holds at why we are say- The uniqueness of the and that’s why we are say- ing welfare to gospel or Rex Jim-Lawson, Port Har- university is that, it would ties. We are starting with ing that poverty should pre-degree, degree and evangelism is wrong but court by 2 p.m. ing that poverty set a pace in bridging pov- not be a barrier to indi- faith in word and power While wishing all par- erty gap between poor eli- remedial programmes in gent Nigerians who are should not be a different disciplines. of God according to 1st ticipants a fun-filled com- gible Niger Delta youths the resilient, with desirous petition, Barrister Okah Managing costs in re- Corinthians 2:5 - “So that barrier to indi- and the rich in the region. and persevering spirit for also enjoined the good lation to charging low your faith might not rest The Commonwealth Uni- education. on human wisdom, but on people of Rivers State to gent Nigerians versity is built with a pas- fees The lord is our strength We are not unaware Gods power”. avail themselves of the sion to offer affordable and that’s why we are Many churches do a lot rare opportunity provided and qualitative education of the trend of charging discussing with banks, exorbitant school fees to of welfare to their mem- by the fiesta by turning opportunities to the poor. individuals and other or- bers but those that remain out in their numbers in all Curriculum and the remain on course. How- ganizations for financial ever, charging exorbitant are mostly old members. events. NUC partnership that would Others go away because He further enjoined The Commonwealth fees is not a guarantee to guarantee us run the qualitative education, it’s they have got what they them to oblige the august University is not built on school for at least three were looking for based on visitors the usual tradi- mediocrity. Members not a guarantee that the good years without bur- rich men’s children in their mind-set, not on true tional hospitality of Rivers of the governing board den of school fees. We salvation. people. are products of sound such schools can do better are also going into some Politics & Policy Thursday 25 October 2018 C002D5556 BUSINESS DAY 31 Trouble in Kogi SDP over federal constituency ticket …Awoniyi’s daughter says ‘my candidacy a foregone issue’

VICTORIA NNAKAIKE, Lokoja party in the state had mitted to the Party Secre- Awoniyi also said that claimed that Awoniyi’s tariat on 17th October 2018 Adamu Abdullahi, who is name had been removed as instructed for onward a former state chairman of he Social Dem- and replaced with that of submission to INEC on 18th SDP, quoted in an interview ocratic Party Oluwafemi Iselaiye. But October 2018 along with is currently on an indefinite (SDP) in Kogi in her reactions, Awoniyi those of other successful suspension from the party State is in great stated that the claims of candidates of SDP,” she said. since 4th October 2018 crisis over who Iselaiye’s supporters were According to her, “We “He is still laying claims picksT the National Assembly unfounded, describing want to state here that this to the office he no longer ticket, as daughter of former them as mere propaganda is nothing but a figment of occupies. One wonders in Arewa Consultative Fo- and a figment of their im- the imagination of the pro- what capacity or on what rum (ACF) leader, Sunday agination. moters of such propaganda authority Abdullahi (Angu- Awoniyi, claimed that her “In line with the time- with the aim of intimidating lu) is talking when he made name has never been sub- table of the Independent me, to mislead, deceive and the false and misleading stituted for another person. National Electoral Com- confuse the good people statement in respect to the Adebisi Awoniyi, who mission (INEC) and hav- of Yagba constituency who SDP candidate nominated won the primary of the party ing satisfied party require- have kept vigil and faith to INEC,” she said. for the federal constituency ments, I have duly filled and with us. Awoniyi however, called seat, said she had complet- submitted my forms CF001 “We believe the seasoned on all her supporters to ed and submitted the neces- and E.C.4B as required to be executives of our great party remain steadfast and con- sary forms that confirmed given to party candidates. will not field two candidates tinue to sustain their belief her as the candidate of the “The forms were properly for one elective office and in her, saying that anything party for the forthcoming filled and sworn to at the will not issue forms to two ill-gotten can never endure election. High Court Registry Abuja individuals for the same as often expressed by her Some members of the after which they were sub- Sunday Awoniyi elective position.” late father. 2019: We will defeat APC – Kwara PDP C’River APC crisis deepens as Usani’s group accuses Owan-Enoh, others of anti-party activities SIKIRAT SHEHU, Ilorin It described the directive ity of the “Lagos and Abuja given the APC by President cabal”. MIKE ABANG, Calabar Owan-Enoh should within aware that the National Vice he People’s Demo- Buhari to take over the mantle “Also, we hope that the seven days from the date of Chairman South-South, cratic Party (PDP) of leadership in the state as much publicised photo ses- he All Progressives this statement, explain in Huilliard Etta’s scheme to in Kwara State has dream and exercise in futility. sion the aggrieved Kwara APC Congress (APC) in writing why he persistently sponsor the suspension of said it would win The party noted that Presi- governorship aspirants had Cross River State organise anti-party activities Usani Uguru Usani. Such theT 2019 election in the state dent Buhari should be more with the President yesterday has accused the in the state by recognising action will be illegal, non- with ease. worried about the killings go- (Monday) at the Aso Villa will SenatorT representing Cen- Achigbe-led exco,” he said. existent and void before it is The party said this is pos- ing on in different parts of the help in stopping the unrest tral Senatorial district of the “The purported Matthew pronounced,” he said. sible because the PDP under country and other pressing and mayhem unleashed on state, John Owan-Enoh of Achigbe Exco has no author- Apart from Owan-Enoh, the leadership of the Senate issues confronting the nation the peace-loving people of engaging in anti-party activi- ity, neither do they have pow- the Minister’s group sus- President, Abubakar Bukola rather than get fixated on the Kwara State by these desper- ties, asking the national lead- ers to pronounce, enforce pended the chairman of the Saraki has over the years es- tall dream of APC taking over ate politicians since the party ership of the party to take any decision of the party in mainstream faction, Mathew tablished a strong bond with power in Kwara State. primaries held. punitive action against him. Cross River State by virtue of Achigbe and the secretary, the people of the state and The statement reads: “As a “As a party, we are confi- Francis Ekpenyong, state the Abuja High Court order of Victor Ebong for opening a it’s assured of their continued responsible and compassion- dent that with the support secretary of APC, made the 8th of August, 16th of August, parallel office, claiming that support and loyalty. ate party, we enjoin the APC- of the good people of Kwara allegation while address- and 20th of September 2018. the John Etim-led faction The PDP reacted to a pur- led government to urgently State and on the basis of a ing journalists in Calabar. Ekpenyong also alleged was the authentic party. ported order by President address the insecurity in the free, fair and credible elec- He called on the Senator that there were plans by the While appealing for the Muhammadu Buhari ask- country rather dissipating its tion, PDP will emerge vic- to give reasons why he was Mathew Achigbe leader- cooperation of members of ing stakeholders of the All energy to cause unrest in a torious in the governorship fraternising with the Mathew ship to suspend the Minister the public while the issues Progressives Congress who peaceful state like Kwara. The election and other elections Achigbe-led EXCO or face of Niger Delta Affairs, and are being sorted out, Ekpe- visited him on Monday in senseless killings in Kaduna, in the state. disciplinary action. warned that any such ac- nyong said he has filed a case Abuja, to defeat the PDP and Plateau, Benue, Borno and in “We note that the only “We the state executive tion would be declared null against the Achigbe faction dislodge the Senate Presi- other parts of the country are thing the APC is holding on to committee/stakeholders and void “as we have a court and was optimistic that every dent, Bukola Saraki in next unacceptable and must stop is to use the Federal Govern- of APC in Cross River State order in our favour.” issue would be resolved in year’s general election. immediately. ment might at its disposal to also demand that Sen. John “John Etim-led exco is his favour. The party in a statement by “The marching orders by rig the election, like it did in its state publicity secretary, the president to the APC Ekiti and Osun governorship Tunde Ashaolu told President stakeholders to take over elections. ADP senatorial candidate felicitates with Benin Buhari the APC to prepare to Kwara is a reflection of the “We are also aware of plans monarch on 2nd coronation anniversary accept the imminent defeat party’s desperation to take by the APC to import thugs to that await the party in the control of Kwara at all cost disrupt and manipulate the IDRIS UMAR MOMOH, Benin that the monarch’s years of service as Nigeria’s Ambassa- 2019 governorship election. and put the state in captiv- electoral process in Kwara. service were distinguished by dor in the Scandinavian, Af- This was the same method se Owie, Edo South exceeding accomplishments rica and Europe. His years of the party employed during Senatorial District and a blemish-free Foreign service were distinguished by the supplementary governor- candidate on the Service career. exceeding accomplishments ship election in Osun State platform of Action “I, Dr. Ese Owie, the Action and a blemish-free Foreign last month. DemocraticE Party (ADP) in Democratic Party’s Candi- Service Career.” “However, we will never the forthcoming general elec- date for Edo South Senato- He said the traditional allow any form of rigging in tion, has described the Benin rial District, congratulate His ruler has demonstrated an Kwara State, and the good monarch as an intellectual Royal Majesty, Omo N’ Oba abiding faith in unity and people of Kwara will stand to sublime diplomat whose N’ Edo Uku Akpolokpolo Oba greatness of the Great Benin defend their votes. adeptness was consistently Ewuare II, Ogidigan, Oba of Kingdom and the Empire’s “We also reiterate that demonstrated during his ser- Benin Kingdom on the 2nd role in the shaping of con- the PDP under the leader- vice as Nigeria’s Ambassador Anniversary on the Throne temporary global affairs. ship of the Senate President, in the Scandinavia, Africa of His Forebears. He also added that the Abubakar Bukola Saraki has and Europe. “His Royal Majesty is an monarch’s engagement with over the years established a Owie, who made the re- exceptional fecund and an Royal Fathers across the strong bond with the people mark in his congratulatory intellectual sublime diplomat country over the last two of Kwara and is assured of message to mark the second whose adeptness was con- years epitomises the finest their continued support and coronation anniversary of sistently demonstrated dur- genre of traditional states- Saraki loyalty.” the Benin monarch, noted ing his extraordinary years of manship. 32 BUSINESS DAY C002D5556 Thursday 25 October 2018 NEWS Reps probe N60bn looted Nigeria Airways fund, call CBN reels out gains of protecting economy through 41 items implementation for revisit of Justice Obiora commission report HOPE MOSES-ASHIKE economy in order to en- hance domestic production KEHINDE AKINTOLA, Abuja tice Nwazota Commission tion, precisely in 2002, the reportedly dead without re- of Enquiry, which was con- Obasanjo-led Federal Gov- ceiving their entitlements. entral Bank of Ni- and protect local industries geria (CBN) on from undue foreign compe- igeria’s House ducted in 2012. ernment had established “The House is dumb- Wednesday out- tition and take-over. of Repre- He observed that the the Justice Obiora Nwazota founded that despite the re- lined the gains of Citing the success re- sentatives on resolve of Federal Govern- Judicial Commission to lease of the White Paper and Cprotecting the domestic corded in the area of im- Wednesday ment to commence the probe into the operations of the approval given to the economy through the im- port reduction, particularly unveiled plans payment of N22.6 billion the company. Paper as well as the direc- plementation of the restric- in rice, in addition to other to set up an ad-hoc commit- outstanding entitlements “The House is aware that tives to the Federal Ministry N tion of access to foreign ex- policy actions of the bank, tee that will investigate the of ex-workers of Nigeria the commission turned in of Finance and the Police by change on 41 items. he admonished Nigerians N60 billion allegedly looted Airways Limited being first a report, which revealed the Federal Government on Godwin Emefiele, gover- to support the policy on 41 by some political officer tranche instalment pay- the mind-bogging corrup- an entity of this magnitude, nor of the CBN who said this items in order to further re- holders and civil servants in ment should be scrutinised. tion and looting to the tune which affects the entire na- at the ongoing seminar for duce pressure on the naira. Nigeria Airways Limited. “The House notes that of N60 billion. “The White tion, the previous govern- finance correspondents and He also advised that Ni- The resolution wasthe federal government un- paper was approved by the ments have refused to pros- business editors in Lokoja, gerians should see the policy passed sequel to the adop- der President Muhammadu Federal Government and ecute the culprits indicted Kogi State, also urged for as an opportunity to change tion of a motion on ‘Urgent Buhari has commenced further directed the Federal in the report. more policies that would pro- the structure of the economy, need to investigate Justice payment and offsetting 50 Ministry of Finance and the “The House is further tect the domestic economy. resuscitate local manufactur- Obiora Nwazota Commis- percent of the outstanding Police to recover the stone concerned that those who Represented by Moses ing, and expand job creation sion of Enquiry into the entitlements of ex-workers funds and prosecute the in- have been identified to have Tule, director, monetary for Nigerian citizens. activities of the defunct of Nigeria Airways Limited dicted culprits. looted this humongous policy department of CBN, He said the theme of the Nigeria Airways Limited, in total sum of N22.6 billion “The House I worried sum of N60 billion in 2002, he said the implementation Seminar: “Monetary Policy sponsored by James Faleke only being the first tranche that till date, nothing has a sum whose value will no of the 41 items policy had Implementation amidst Glob- (APC-Lagos). instalment payment, while been heard of the report and doubt be in the region of lifted the Nigerian economy al Economic Protectionism” In his lead debate, the other part payment of those indicted in the report about N200 billion in pre- out of recession, which it is relevant, considering the Faleke, who doubles as the balance of 50 percent in are believed to be largely sent day might have been plunged into in 2016. implications of protectionism chairman, House Commit- same amount is expected to visible in the public arena, using the said fund to fight, He gave an instance of the and the challenges it poses to tee on Customs and Excise, be paid in 2019 due to pau- while the ex-workers con- destabilise the government real Gross Domestic Product the effective implementation stressed the need to ensure city of funds. tinue to languish in abject and in some cases, may (GDP), which grew by 1.40 of monetary policy. the release of the White “The House furtherpoverty having been denied have bought their way out percent in the third quarter Defining protectionism, Paper and implement the notes that long before the their rights to their entitle- of prosecution and possible of 2017, up from 0.72 per- he said it is the restriction of recommendations of Jus- advent of this administra- ments, with many of them conviction,” he alleged. cent, and contraction of 0.91 trade between nations, uti- percent in the second and lising means such as tariffs first quarter of 2017, respec- on imported goods, restric- tively. Also, there has been tive quotas, and a variety improved reserve accretion of other inhibitive govern- to the country’s reserve. ment regulations, designed According to Emefiele, to discourage imports and the policy was aimed at prevent the foreign domi- stimulating the domestic nance of local markets. NACCIMA mobilises stakeholders towards successful agric quality excellence awards TELIAT SULE, AMAMCHUKWU OKAFOR cession and so many others. & UJU IKEDIONU “All these incentives are meant to encourage produc- he Nigerian Associa- tion, processing, marketing, tion of Chambers of export and other segments Commerce, Industry, of agribusiness in Nigeria. As Mines and Agriculture a major stakeholder in Nige- T(NACCIMA), working in col- ria’s agricultural sector, we are laboration with Vertical Inspi- of the opinion that the Agri- rations Organisation and the cultural Quality Excellence Federal Ministry of Agricul- Awards has the potential to ture and Rural Development encourage farmers and others (FMARD), has kicked off the in the agric value chain,” Law- mobilisation of all stakehold- son said. ers, sponsors and the general At the press briefing were L-R: Bismarck Rewane, non-executive director of Guinness Nigeria plc; Rotimi Amaechi, minister of transportation, and Babatunde public towards having a be- the project coordinator and Savage, chairman, Guinness, at the Pre-68th annual general meeting of Guinness' cocktail in Abuja. NAN fitting 1st Agricultural Qual- the technical adviser to the ity Excellence Awards in Kano minister of agriculture and State on November 20. rural development on quality Airtel Africa raises $1.25bn from SoftBank, five other global investors Addressing all the stake- control and standardisation, holders at the NACCIMA La- Heather Ronke Akanni; Gov- rica business. in Airtel. Also, the com- Group, said. gos office Tuesday, national CYNTHIA IKWUETOGHU According to Raghu- pany agreed to invest $250 ernor of Kano State, Abdul- “As Airtel continues to ex- president, NACCIMA, Alaba lahi Umar Ganduje, who was nath Mandava, managing million of the $1.25 billion irtel Africa, a sub- ecute on its transformation Lawson, called the attention of represented by Uba Tanko director/CEO, Africa at investment secured from sidiary of Bharti strategy to become a leader the general public to the con- Mijinyawa; a former ambassa- Bharti Airtel, “This prima- the global investors. tributions of agriculture to the Airtel, says six in data and mobile money dor and the director-general of ry equity issuance clearly The company noted nation’s economy before the global investors in Africa, we believe it is in NACCIMA, Ayoola Olukanmi; underlines the confidence further that only a quarter discovery of oil in commer- includingA Warburg Pincus, a strong position to benefit Isaiah Odigie, executive di- of leading global investors (25%) of Africa’s popula- cial quantities, saying that all Temasek, Singtel, SoftBank from increasing smartphone rector, Vertical Inspirations; in Airtel Africa’s successful tion had access to formal hands must be on deck now to Group International are to penetration and mobile Akeredolu Olayinka who rep- business strategy and its banking services. Mobile revamp the sector. invest $1.25 billion through money adoption.” resented Audu Ogbe, the min- potential to sustain growth money has filled the gap She further stated that the primary equity issuance in According to Singtel, the ister of agriculture and rural and profitability. and has become the en- successes recorded in recent the company at a post mon- Airtel African mobile sub- development; Segun Atho, na- “The transaction will gine for financial inclusion times particularly in rice revo- ey value of $4.4 billion. scribers are expected to in- tional deputy president of Rice help us further delever- for both individuals and lution showed that Nigeria was The proceeds from the crease from 420 million at Farmers Association of Nige- age our balance sheet and small businesses. back on the right path. sale of equity will be used the end of 2016 to more than ria; Lolo Kadafa from the Bank boost our capacity to up- “Our investment into “The successes recorded to cut down the company’s half a billion by 2020. of Industry; Tokunbo Habeeb grade networks, expand Airtel Africa reflects our in the agricultural sector such debt from $5 billion and BusinessDay analysis of from the Raw Materials Re- coverage in different mar- confidence in the long-term as the rice revolution among search and Development grow its business ahead of the financial result of Bhartia kets and achieve rapid growth potential of Africa others are evidence that we are Council; Sameera Abubakar, an intended initial public Airtel in first quarter ended growth of Airtel Money with its young and grow- on the right path. We are aware managing director, Guarantee offering (IPO), the company June 2018 showed that India across our operations.” ing population. For many that government has already Impex Global Services Lim- said in a statement. and South Asia generated In addition, a press of Airtel Africa’s customers, put in place several strategies ited, and Muhammad Adamu Bhartia Airtel last about 75 percent of the com- and incentives to incentivise release from Singtel on the mobile phone is the key Muhammad, president and month chose UBS, JP Mor- pany’s revenue while Africa agribusiness, such as the An- Wednesday noted that enabler for digital and finan- chairman board of directors gan, and Citi to coordinate generated 25 percent from a chor Borrowers Scheme, tax Singtel currently held a cial inclusion,” Arthur Lang, Guarantee Impex Global Ser- the London IPO of its Af- total 201 billion Rupees. rebate, tax holidays and con- 39.5 percent effective stake CEO, Singtel’s International vices Limited. Thursday 25 October 2018 C002D5556 BUSINESS DAY 33 NEWS

Fashola explained that the road to pay the local contractor who has man Adamu, also announced that FG to spend N8.73trn in 2019, targets 3.01%... is part of the Lagos to Abidjan cor- done 15, to install the remaining 22. Council approved the revised esti- Continued from page 1 Community of West African States ridor, while the Nigeria side of it is “Council approved that at mated total cost for the construction from Eric Moore to Badagry to Seme N121.073m out of the existing con- of the Zobe Regional Water Supply to fund the 2019 budget. (ECOWAS) in 2013. “The African Development Bank border. “Ghana has done theirs, tract. So it is not a new contract. It is Scheme in Katsina State, phases 1 (a) The MTEF / FSP is designed to Cote D’ Ivore has done theirs, Togo so that the contractor can complete and 2, as part of efforts to complete translate the strategic development in 2016, as a follow up, approved the total sum of $13.5m for the whole and Benin have something in place. the work in the next five months.” infrastructure inherited by the Fed- objectives of the Economic Recov- Some of them have to move because Council also approved the Afri- eral Government. ery and Growth Plan (ERGP) into a project to finance both the study in form of a loan, as well as a grant.” of coastal erosion by the Atlantic can trans Sahara high way project The project was first awarded in realistic and implementable budget Ocean, and how to reintegrate all of from Algiers to Lagos. 1992 but was abandoned, with a new framework for the medium term. She disclosed that the entire fund had been distributed among that is part of the study that is being The Nigerian section is the Lagos contractor taking over in 2009, but Key highlights of the 2019 budget funded by the ADB to ensure simple to Katsina border side, traversing who were never paid. include oil price benchmark of $60, the participating countries and that the component for Nigeria is $1.5m. and efficient border controls.” Ibadan, Oyo, Ogbomosho, Ilorin, Adamu stated that the Buhari oil production of 2.3m barrels per day, The ministry also got approval for Katsina, Abuja, Kano and other ma- administration inherited the project exchange rate of N305 to 1USD, Gross “The FEC has approved that we accept this facility, so that the project the construction of the road linking jor towns and cities. at 75% completion in 2015. Domestic Product (GDP) growth rate Gwarzo to Karaie, a 20- kilometre “If you look at what the President “Council approved the augmen- of 3.01 percent and a budget size of study can be commissioned towards the planning and the execution of the highway project in Kano State , at the has done in the last few days, a com- tation of N12.15 billion to bring the N8.73 trillion, about N400 billion less cost of N1.029b , as well as approval mittee on the African Free Trade project to a total of N22.1 billion with than the N9.1 trillion of 2018. highway project itself.” Minister of Power, Works and to terminate and re-award the con- Agreement Protocols, these are the an additional completion period of Minister of Finance, Zainab tract for the 10 megawatts Katsina critical infrastructures that link us. 18 months.” Ahmed, disclosed that FEC also Housing, Babatunde Fashola, dis- closed that the ministry presented wind energy project. So, from South to North, from Lagos He disclosed that the Federal granted approval for a loan of $1.5m The project, with a total of 37 through the West Coast, are the Government recently signed a N10 from the African Development Fund a memorandum for the award of contract for the rehabilitation of turbines, has 15 already completed, interconnections on how we relate billion agreement with the Katsina to finance a feasibility study for the while 22 are in different stages of with other African countries.” government for the completion of multinational Lagos to Abidjan cor- Lagos -Badagry - Seme road project. The road project which is a total completion. The 15 completed are Water Resources Minister, Sulei- the phase 1(b) of the project. ridor highway project. already generating about four mega- The multinational project will of 46 kilometers, excludes the parts from Eric Moore to Okokomaiko watts of electricity and are being used be a dual carriageway highway by the Power Distribution Company. MTN, CBN near truce on $8.1bn refund... with six lanes, that will involve five section in Lagos. “Council approved 46 kilometres He explained that the main con- Continued from page 1 ing in obtaining a genuine CCI. The countries, including Nigeria, Benin tractors were not giving government Republic, Republic of Cote D’Ivoire, from Agbara to Seme border, out discussions to reach an amicable matter sent shock waves across the of which 24 kilometres will be six the kind of cooperation needed from foreign investor community. Ghana and Togo. them. “We found out that the local solution. The minister said the decision lanes, while 22 kilometers will retain There are signs that Federal Gov- “If these banks claim to have the current four lanes to be recon- contractor that they hired is the one followed due process in obtaining was taken at the 42nd meeting of actually doing the job. ernment authorities are ready to the Authorities of Heads of States structed and rehabilitated. soft pedal. CCIs for MTN, yet their claims were “FEC approved the project at the “We have decided to terminate rebuffed, then foreign investors who and Governments of the Economic the contract and use the balance Zainab Ahmed, Nigeria’s acting cost of N63.023 billion” Finance Minister, is the latest public move money with the banks have official to admit that a regulatory every reason to fret,” a local fund clash with the country’s biggest non- manager told Business Day. oil foreign direct investor, MTN Ni- The claim spooked investors who geria, was “damaging” and is being began to question the validity of the quickly “sorted out.” CCIs they had largely obtained from A week before Ahmed’s assertion, three of the affected banks, and the made at the 24th Nigerian Economic spectre of who would be next after MTN Summit Tuesday, Godwin Emefiele, to be accused of peddling illegal CCIs the Central Bank governor, told re- saw them pull the plugs on planned porters in London that the situation capital importation to the country. had taken a “global dimension” that Left with more questions than it didn’t need to and assured inves- answers over the matter, investors tors that an amicable solution was used an Africa-focused Moody’s being worked out with MTN. conference in London this month, to A senior investment banker how- ask questions. Sources who attended ever says it would take more than the conference said the bulk of dis- spoken assurances to fix the damage cussions were about the Nigerian done to the country’s image in the regulatory clash with MTN. “Nigeria eyes of investors. took the shine off other African coun- “It may require the government to tries,” the source said. pass a bill that exempts Certificate of Nigerian Finance Minister, Ahmed, Capital Importation (CCIs) issued in said the situation presented a chal- the past from coming under scrutiny lenge to redeem the country’s image. and publish clear guidelines for how “We have been engaging inves- future CCIs would be issued, so that tors to explain what is happening everyone knows and can ensure they with MTN and can assure investors are compliant,” the investment banker that no company is next, because we L-R: Emeka Emuwa, CEO, Union Bank; Nike Akande, former minister of industry; Adekunle Sonola, head, com- said on condition of anonymity, as he can’t afford to allow these incidences mercial banking, Union Bank, and Lola Cardoso, chief digital and innovation officer, Union Bank, at the opening is not authorised to talk to the press. happen,” Ahmed said. ceremony of the edu360 fair organised by Union Bank, yesterday. Investor confidence was dealt a She added that Emefiele has huge blow when Nigerian regula- assured her that the matter would networks are not low risk and do not tors in late August insinuated that be resolved as soon as possible and ‘Nigeria’s private sector has no capacity to... offer quick returns. This is why investors the local units of the biggest foreign- expressed regret over how the situa- owned banks in the country were tion turned out. Continued from page 1 to me that the smartest thing is for tend to ask for ‘all manner of guarantees’ when called to invest in infrastructure. culpable of illegally repatriating “We need a regulatory philos- He cited two projects that Presi- government to focus its energies and He however admitted that Ni- some $8.1 billion for their client, ophy that understands growth,” dent Buhari’s administration has resources on infrastructure. geria has a huge liquidity gap in MTN, using unapproved certificates advised Doyin Salami, a former essentially negotiated construction “Government must lead that infrastructure funding. of capital importation. member of the Monetary Policy in partnership with the private sec- way,” he stated, noting that “it is “We want a private sector led While MTN was ordered by the Committee (MPC). tor. These are the Apapa, Mile 2, quick. Those of you who have nego- economy because they are the largest CBN to refund the money, the four “Our regulators should not be first Oworoshoki Expressway in Lagos tiated PPPs know how many years creators of wealth and employment, banks accused of aiding the deal on about raising revenue because it makes State, to be undertaken by Dangote it takes to reach financial close. The but it is still government responsibility behalf of the telecommunication little sense if it comes at the expense of Construction, a subsidiary of the question is can we wait?” to provide the social infrastructure.” company were slapped with fines. jobs and even long term revenue itself,” Dangote Group, which will cost He cited the case of Saudi Ara- Fashola expressed joy that the pri- The local unit of London-based Salami said during a panel discussion at N72 billion. He said there was also bia, which over the last decade has vate sector has taken over distribution Standard Chartered and American the 24th NES in Abuja. the Bonny bridge which would be invested $420 billion of oil proceeds and generation of power. He said the lender, Citi Group, were implicated As an indication of the damage partly funded by government and the on their infrastructure. government has put in place payment alongside Standard Bank’s Stanbic done to the country by the MTN NLNG, with each of the financiers “Can we point to a similar amount assurance guarantees to ensure that IBTC and local lender Diamond action, sources in the private equity providing N60 billion each. in the country?” He queried. the power produced is paid for. He Bank, for the alleged illegal transac- investment community told Busi- “How many in Nigeria’s private He also accused the banks of not expressed the view that the country’s tion which happened between 2007 nessDay that they have been receiv- sector have N60 billion to put in in- being ready to fund infrastructure. power sector privatisation “was con- and 2015 and were fined a combined ing calls from their investors abroad frastructure because these are the big He said a similar conversation was ceived in a hurry, implemented in poli- N5.8 billion ($US 16 million) to find out if they should be worried ticket items that we are talking about. held at last year’s economic summit tics and now present huge challenges Standard Chartered, Citi bank and by the CCIs upon which they brought “So let’s be honest with ourselves, but that not much has come into infra- which government is battling to tackle.” Stanbic IBTC alone account for as money into the country and also to instead of just having these talk ses- structure, except Dangote and NLNG He also mentioned that govern- much as 81 percent of foreign capital note that all investments are being sions without really crunching the which have so far shown interest. ment has put in place a policy to brought into the country on average put on hold until there is some level numbers and putting the money on “Where are the real entrepre- open up distribution of meters and over the past decade, which implies of clarity around the CCI issue. the table.” neurs, how many of them can stand that are as a result, now 180 applica- that they are some of the most trusted Some private equity firms have He recalled having supervised the without government support? tions for meter access provision. hands when foreign investors want to also embarked on a review of all the first two road concession arrange- He argued that investors prefer Rotimi Amechi, minister of bring money into Nigeria. CCIs in their possession to ensure ments in Nigeria during the Buhari maximum low risk returns on their Transport, who also spoke, sup- The banks were fined by the CBN they are fully compliant with CBN administration, which did not make investments, hence their preference ported Fashola’s position that it is es- despite publicly stating they had regulations while they are also put- any headway due to strong opposition. for portfolio investments and others sentially government that can handle not flouted any capital importation ting on hold any new fund raising “So this is the climate in which that offer such returns. Nigeria’s huge infrastructure needs. rules, as years of business in Nigeria activity until they get some clarity we have to operate and it seems Fashola said that rail, ports, road seemed to have counted for noth- around the issue. 34 BUSINESS DAY Thursday 25 October 2018 INTERVIEW ‘We are empowering Africans to solve societal problems using science and technology’ According to Brand Finance, a UK Brand Consultancy firm, six out of the top ten most valuable companies in the world today is technology based. It is evident that STEM (Science, Technology, Engineering, and Mathematics) education is non-negotiable for any economy that desires growth. Taking the lead in propagating interest in STEM Education in Africa is Interswitch SPAK, an initiative of the Interswitch group, a Pan-African digital solutions company. The initiative is focused on empowering young Africans to solve societal problems and own the future via the application of science and technology. A Switch-A-Future Project, Interswitch SPAK includes: Qualifying Examinations, the Masterclass, an Innovation Challenge, anda TV Quiz competition, where various levels of University scholarships worth N12.5 million, among other prizes, are at stake. Mitchell Elegbe, the founder and group managing director of Interswitch Group, is confident that every social challenge can be best tackled with the application of technology education. In this interview with KELECHI EWUZIE, he speaks about his passion for driving the project, its different facets and the future. Excerpts: Why is Interswitch Group initiating the volunteer their time to work and guide these Interswitch SPAK Project? students with this challenge. This exercise is In fulfilling our social responsibility as an a testament to the growing volunteer culture organisation, our CSR focus is on education, in the company. And I hope that the students innovation, and leadership. The Interswitch pick up salient traits such as innovative think- SPAK initiative bridges all three at once. ing, collaboration and team work, leadership, When we looked at education, we decided and a host of other qualities while working to focus on STEM subjects because of the on the challenge, under the guidance of our impact of technology in the world, today. staff volunteers. As Africans, we are continually faced by countless societal challenges in the power, The national qualifying examination was education, health and transport sectors, to certainly a huge one, involving tens of name a few. Research has shown that tech- thousands of students. How were you able nology can be employed in tackling these to get the students who participated and issues and technology is a direct offshoot of what are the plans to sustain it? STEM knowledge; hence, our focus on STEM Working with our partners Just Media and education. In addition to that, STEM allows a NECO, and leveraging their experience in person to think in a very structured manner. this sector, we were able to achieve a suc- Even if these students end up not becoming cessful national qualifying examination. engineers or scientists, that structured man- The process began with a nationwide search ner of thinking will help them in any field of for these brilliant students.81 finalists from endeavor. A foundation in STEM which helps different parts of the country emerged from a person think in a very structured manner is over 11,000 students who participated in something every student should have. the national examination. Those 81 finalists To achieve the set objectives of the project, went through the Masterclass and will go the Interswitch SPAK project has been struc- through the TV Quiz show where they will tured quite differently from other academic compete for the prizes at stake. In terms of competitions. We included the Masterclass sustainability, that is not a challenge. This for knowledge sharing; the TV Quiz Show project was carefully thought through. At which will begin soon will also feature an some point, there will be a minimum of five of Innovation Challenge. All these are to ensure these students in universities because every we produce well-rounded future innovators. science course takes at least five years in the Mitchell Elegbe University. We already made provisions for You mentioned the Masterclass, can you all such contingencies. expatiate on that? What do you hope to on DSTV Africa Magic Channel 154, TVC fact, as a nation, if we can address the issues achieve with the Masterclass? Lagos, STV Jos, NTA Kano, EBS Edo, NTA in these key sectors, the country will be the Like many teenagers, a good number of The Masterclass is a key part of the Inter- Port-Harcourt, DBS Asaba and OSRC Akure. better for it. So, we are presenting these chal- these brilliant students are a bit unsure switch SPAK project. There, we shared with It will feature the Innovation Challenge lenges to the students and they are expected about the specific career paths to pursue. the students ideas and skills that traditionally and Quiz Competition. I look forward to an to use the knowledge and application of Do you think that their participation in this are not taught in the classroom. The Master- interesting time, having interacted with the STEM to proffer solutions to them. We an- competition will help shape their choices? class also gives the students an opportunity students during the Masterclass. ticipate very interesting sessions and I look Clearly, this is a good way to start and I see to meet real-life models who prove that suc- During the TV Quiz show the students will forward to hearing the bright ideas that these these youngsters taking this platform as cess is possible in this part of the world, be tested for speed, perseverance, accuracy young ones will put forward. a springboard for greater things in future. regardless of existing challenges. It focused and knowledge, which is what ‘SPAK’ stands Another exciting part of the Innovation Sometimes, all you need to do is ignite on knowledge sharing, as well as motivating for. Beyond the quiz competition, these com- Challenge is to see Interswitch employees something. The passion is there but certain the students on character building and as- ponents are important character traits for the experiences trigger the right spark in the right suming leadership responsibilities in all their student to develop in life– be it in school, at direction. What Interswitch has done is to spheres of contact. work, in business, and even at home. The Our goal is to make ignite that spark and help guide them towards As trailblazers in their various schools, future African problem-solver must be dili- succeeding. As these students, already have who have excelled in the core science sub- gent, resolute, and confident; and these are Interswitch SPAK a many of the skills they need to succeed in any jects – Physics, Chemistry, Biology and Math- some of the qualities you would see in these career path they choose. ematics – it is important that these students students as they compete for the grand prizes. Pan-African initiative, are armed with ‘softer’ skills. Skills like social What is the future of Interswitch SPAK? innovation, leadership, entrepreneurship are An Innovation Challenge is something new we want to make Our goal is to make Interswitch SPAK a all very relevant in today’s world. Like we for a show such as this. What should Nigeri- this possible around Pan-African initiative. We want to make this say “High IQ is necessary, but it is not suf- ans / Africans expect from the Innovation possible around Africa and it is our hope to ficient”. Salient issues like social innovation, Challenge? Africa and it is our extend the initiative to East Africa soon. With emotional intelligence and entrepreneurship The Innovation Challenge is part of the TV the right partnership and support, taking this were the subject matters brought to fore at Quiz show. The students will be grouped hope to extend the initiative around Africa and equipping many this year’s Masterclass. and presented with basic societal challenges. students with the right tools they required Here, they will collaborate on these projects initiative to East succeeding, and tackling Africa’s many chal- The TV Quiz Show is starting soon. How will and collectively come up with solutions. The lenges, is at the heart of our commitment. that pan out? sectors to be addressed are transportation, Africa soon But as the saying goes, every giant step starts The TV Quiz show will debut on October 27 education, and healthcare. As a matter of with one stride. Thursday 25 October 2018 C002D5556 BUSINESS DAY 35 FEATURE How NHF funds, competent developers drive new housing delivery programme Of the numerous reasons frequently given for Nigeria’s housing demand-supply gap, finance and skilled/competent labour feature prominently. Their availability make timely and quality housing delivery a lot easier which is why it is hoped that the new national affordable housing delivery programme being promoted by the country’s apex mortgage bank and the labour unions may not go the way of others before it, writes CHUKA UROKO, Property Editor. igerians have, in with their salaries. The prices are loans through selected Primary the past, seen many to range from N3.1 million to N8 Mortgage Banks (PMBs) to Nige- housing delivery million which marks a departure rian workers that contribute to the programmes initi- from the worrying trend of build- NHF to enable them to purchase ated governments at ing houses that are far beyond the houses and repay over a maxi- stateN and federal levels and their the financial capacity of low- and mum period of 30 years. agencies that ended at conception medium-income earners. Eligible workers whose loan level. Some ended mid-way into The rapid and simultaneous requirements fall below N5 mil- construction and, in some cases, commencement of construction lion will not be expected to make at near-completion level, leaving activities at various sites in five any equity contribution to access behind a pile of wasted efforts and states including Nasarawa, Kogi, the facility while those requiring resources. Abia, Enugu, and Akwa Ibom in- N5 million – N15 million will have In this instance, the Shagari spires hope for the speedy delivery to provide only 10 percent equity Low Cost Housing initiative readily of the projects within the 6-months contribution instead of the old comes to mind. Similarly, Nigeria timeframe as planned. requirement regime of 20 percent has had social housing projects In Nassarawa State, for ex- and 30 percent. which failed, in part, because they ample, the state governor, Tanko The housing delivery pro- were executed without recognis- Al Makura, provided 5 hectares gramme is especially significant ing the concerns and economic of land for the project and at the because of its conceptual focus realities of the Nigerian worker groundbreaking event recently, on delivering cost-effective, safe, and other potential buyers. the governor promised to commit decent, quality and affordable However, the recent launch of an additional 10 hectares for the housing. The direct commission- the National Affordable Housing project. In Kogi State, the gover- ing of the bill of quantities by Delivery Programme for Nigerian nor, Yahayah Bello, provided 37 the FMBN to suppress the profit workers in six locations across hectares of land for the project on motive and the strategic engage- the country by the Federal Mort- the outskirts of Lokoja. In addition ment of state governors for the gage Bank of Nigeria (FMBN) in to the land, most of the governors provision of land at near-zero cost partnership with leading labour have also indicated strong will- has helped greatly to substantially unions in the country is making a ingness to provide access roads, reduce the cost of the building difference. electricity, and other associated and keep the selling prices within There are many reasons to amenities. the reach of Nigerian workers. believe that this affordable social “The launch of the National This combination of quality and housing project will succeed and Housing Delivery Programme is affordability makes the program not go the way of abandoned na- Ahmed Dangiwa a momentous development be- a fit-for-purpose model for social tional projects. Finance is a major cause it marks the first time that housing in Nigeria. drawback in housing delivery but FMBN and the labour unions have The programme demonstrates the availability of funds for the new livery to deserving workers. bedroom, and three-bedroom worked closely with experts and yet another important and impact- programme guarantees that the The active involvement of the units are planned for construction industry stakeholders to develop a ful initiative that the FMBN is driv- delivery is sure. labour unions in the design of the and delivery at 14 sites nationwide. realistic and acceptable framework ing to add zest to Nigeria’s quest for FMBN is leveraging its pool of program is a major plus for the 200 housing units are to be built in for delivering affordable hous- social housing. This is which it has funds from the National Housing project and equally gives hope that each of the six geopolitical zones ing to Nigerian workers”, noted become necessary for the govern- Fund (NHF) to finance the con- it will succeed. The participation of with 100 units in two selected Ahmed Dangiwa, FMBN’s CEO, ment and stakeholders continue to struction work and delivery of the leaders of NLC, TUC and NECA in states while Abuja and Lagos are at the groundbreaking event in support the bank’s initiatives such project. Selection and mobiliza- the development of the framework to be treated as special sites. Nasarawa. as this and upscale it to reach even tion of competent developers is for delivering the project made it A defining feature of the pro- Dangiwa reasoned that the greater numbers. also another guarantee and the possible for them to make con- gramme is the fixing of the selling collaborative spirit which this pro- “If the bank has shown that apex mortgage bank has already structive inputs into the housing prices of the housing units within gramme has fostered gave room for it can achieve this much with a mobilized reputable indigenous designs, selling prices and condi- a range that workers can afford labour leaders, who understand capital base that is just about N5 developers with the capacity to tions for delivering the project. the realities and financial chal- billion, government needs to con- deliver to start construction work This has given them a strong sense lenges that Nigerian workers face, tinue its professed support and on the project. of ownership of the project which Stakeholder to make constructive inputs to the quickly progress its commitment Another basis for hope in this is considered a critical factor for housing designs, pricing range to the re-capitalization of the bank programme is the strategic in- its success. involvement and and other relevant conditions for to the tune of N500 billion in the volvement of state governments as The housing programme, which delivering this project. next five years as planned. critical stakeholders in its imple- is designed in collaboration with contributions The stakeholder involvement With such additional funding, mentation. The selection of the the Nigeria Labour Congress to the project and contributions to the project it is hoped that FMBN will have pilot sites was done based on the (NLC), Trade Union Congress design make the programme a fit- more financial leverage to fund responsiveness of state governors (TUC) and the Nigeria Employers’ design make the for-purpose tool that will deliver and upscale its projects and in- to the conditions of the FMBN for Consultative Association (NECA) houses that workers can afford as deed rise up to the occasion and siting the project. This helped in is a good addition to the efforts of programme a fit- part of the overall national efforts ignite a social housing revolution the speedy acquisition of expan- FMBN as a strategic policy tool of at redressing the huge housing in the country. The current level sive pieces of land for the housing the federal government to increase for-purpose tool deficit that experts now estimate of housing deficit demands im- estates. access to affordable housing by that will deliver to be over 22million housing mediate action by government and It is expected that the support low- and medium-income earners units. all stakeholders. Recapitalizing from state governors whose work- in the country. houses that Dangiwa assured of a plan al- FMBN is a good way to start since ers will benefit directly from the Under the pilot phase of the ready in place to ensure that once it now represents the hope of the scheme will indeed help to ensure project, about 1,400 housing units workers can afford the houses are built and delivered, common man for decent, quality timely project completion and de- comprising one-bedroom, two- the FMBN will provide mortgage and affordable shelter. A5 BUSINESS DAY C002D5556 Thursday 25 October 2018 FT NATIONAL NEWS Deutsche Bank chief Capital key risks appeals for... an Italy dilemma Continued from page A1 for the ECB A recalculation of the capital key comes at most pessimistic analyst expecta- a fraught time for the Italian bond market tion. Deutsche blamed “lower volatility and reduced client vol- KATE ALLEN AND CLAIRE JONES umes” for the poor performance. n obscure statistical calculation Mr Sewing told analysts that that has shaped the European he expected the bank to regain ACentral Bank’s €2.5tn quantita- market share in core businesses, tive easing programme could have re- but acknowledged: “On this percussions for the Italian bond market. topic, we have quite frankly the The central bank plans to stop buy- most work to do.” ing government bonds from the end of December, but next year will continue At €6.2bn, group revenue was to reinvest billions of euros worth of ma- 1.4 per cent below analyst expec- turing debt it currently holds back into tations. A negative surprise was the eurozone’s sovereign bond markets. the performance of Deutsche’s Barclays profit jump powered by strength in trading unit In the first nine months of 2019, €117bn global transaction bank, which of sovereign bonds are set to mature and plays a core role in Mr Sewing’s Upbeat investment bank performance a boost for chief executive Jes Staley be reinvested. As with the QE programme, the strategy to increase the bank’s DAVID CROW happening with our markets fran- soul-searching among European chise really belies the proposition we politicians, who fear that US hege- purchases will be conducted according more stable and less capital in- to the size of each eurozone country’s tensive businesses. Third-quarter arclays launched a staunch can’t compete.” mony in the industry could hurt the defence of its Wall Street ambi- The bullish comments from Mr continent’s prospects. economy and population, using a transaction banking revenue was tions following a strong perfor- Staley set the stage for a tense battle Equity trading revenues at Bar- calculation known as the capital key. B However, next month the ECB updates 5 per cent lower than a year earlier. mance on its trading desks, in a re- with Mr Bramson, who became one clays rose by 35 per cent during the “This is obviously a disap- buke to calls to shrink the investment of Barclays’ largest shareholders this third quarter to £471m, while income that calculation for the first time in five pointing performance compared bank from activist Edward Bramson. year after amassing a stake of 5.2 per in the closely watched fixed-income years, leaving the central bank with a dif- Jes Staley, Barclays chief execu- cent through his vehicle Sherborne trading unit was up 9.7 per cent at ficult decision at a time when relations to our previous expectations,” between Rome and Brussels are fraught. chief financial officer James von tive, has defined his tenure with a Investors. £688m. strategy that involves allocating more In meetings with investors, Mr The strong performance of Bar- Given the eurozone economy has Moltke told analysts, as the busi- capital to the group’s investment Bramson has argued that Barclays clays’ trading desks compared fa- changed shape over the last half decade, ness volume by new GTB clients bank at a time when many European should abandon its ambition to com- vourably with larger investment analysts expect the recalculation would was weaker than anticipated. Last rivals are pulling back. pete with large US investment banks banks like Goldman and Morgan leave the ECB buying less debt from week, Deutsche Bank named The bank published third-quarter like Goldman Sachs and JPMorgan Stanley, although its overall trading periphery countries next year than it would under the current capital key. Stefan Hoops, a close confidant of earnings on Wednesday that provid- and instead shrink or sell its trading revenues are still dwarfed by US ed some vindication for Mr Staley’s operations. rivals. Some of these nations, such as Spain, Mr Sewing, as the new head of the have seen a significant rally in their unit with the task to “reinvigorate plan, with revenues from equities This would free up capital that Mr Staley attributed the growth and fixed-income trading up by could be handed back to sharehold- to his decision to hire more senior bonds in recent years so a marginal the GTB franchise”, according to almost a fifth. ers, according to Mr Bramson, who investment bankers while also in- reduction in ECB reinvestments is un- Mr von Moltke. “There has been a comment that has made his name in the UK by creasing spending on electronic likely to prove notable. The lender said that Septem- European investment banks can’t agitating for changes in strategy at trading systems. For Italy, however, the situation is more contentious. The country’s coali- ber marked the end of the re- compete with the US, and I would financial groups including F&C Asset However, analysts pointed out just point out that four quarters in a Management and Electra, the private that Barclays’ investment bank was tion government has already sought to structuring in CIB, with lay-offs in accuse the central bank of using its bond the front-office and balance sheet row we have gained market share,” equity firm. still markedly less profitable than said Mr Staley. Mr Staley’s focus on investment its credit cards and consumer busi- purchases as a political tool. reductions completed. Since the He added: “The reality of what’s banking also comes at a time of nesses. Frederik Ducrozet, a global strategist second quarter, Deutsche has at Pictet Wealth Management, said that axed 2,300 jobs, with another while the potential sums involved were “peanuts”, there was a risk “that it fuels 1,700 to be shed in the fourth Merkel fights for future as German voters’ mood turns ugly further anti-euro rhetoric from the Ital- quarter to bring total staff to be- Chancellor’s party faces regional election losses that could sap her authority ian government, since Italy will be one low 93,000. By 2019, the lender of those countries penalised with the wants to bring total headcount GUY CHAZAN to vote CDU this time,” said Marius years, all bets are off: the CDU is at just updated capital key”. to below 90,000. Reusch, who is running for mayor. 26 per cent, down 12 percentage points Mr Ducrozet noted that the ECB’s s Christian Democrats gathered “When you ask why, they say: ‘Merkel’.” since the last election in 2013. purchases of Italian debt are already set Mr von Moltke told analysts After 13 years in office, Europe’s Mr Bouffier blamed his party’s that total restructuring costs for beer and speeches in the vil- to be lower than that of other countries Alage of Langgöns last week, an most powerful woman faces a week slump on Ms Merkel’s “grand coali- next year because the ECB holds longer would be roughly a quarter below oompah band broke into “Every Day that could determine her fate. A bad re- tion” in Berlin, which has been em- Italian maturities, on average, than the €800m initially expected by Brings New Hope”, a popular local sult in Hesse, where her CDU has held broiled in arguments practically since in core countries such as Germany, the bank’s management. folk song. But for Germany’s largest power since 1999, could irretrievably it took office in March. There was the “hence [there will be] a lower amount political party, hope is in vanishingly dent her authority and cast doubt on blistering row last June between the Despite the weak top line, her future as CDU leader just six weeks CDU and the CSU, its Bavarian sister of redemptions in 2019”. short supply. The ECB will reveal the new calcula- Deutsche Bank’s profitability in Polls ahead of Sunday’s regional before she has to stand for re-election. party, over asylum policy, followed by the third quarter surprised on In Langgöns Volker Bouffier, the the dispute over Hans-Georg Maaßen, tions for the capital key at its last meeting election in Hesse show the CDU head- of 2018 on December 13, when it will ing for one of its worst ever results in CDU’s local party chief and the state’s who was sacked as head of domestic the upside. While profit before also say whether it intends to adopt the tax was down 46 per cent year- the state. If they are right, Hesse will premier, urged activists to do all they intelligence. throw German politics into disarray — could to get out the vote. “It’s about “When a government gives the new key — or stick with the old — for on-year at €506m, it was still and spell the beginning of the end for nothing more and nothing less than impression that it is just constantly the reinvestments. significantly above the €328m Chancellor Angela Merkel. saving the world!” he said, with just a fighting, then people lose confidence The capital key methodology expected by analysts. Unemployment is low in Langgöns, touch of pre-election hyperbole. in it, and the potential of protest par- originated as a way of balancing the Mr Sewing called the result a village of 11,000 in Hesse’s agricultur- Home to Frankfurt, Germany’s ties just keeps growing,” he told the competing priorities of differing eu- finance capital, Hesse has been ruled Financial Times. “People’s perception “another milestone on our way al heartland, and the economy boom- rozone member countries. ing. But the mood among locals is ugly. for 19 years by the CDU, the last five in of the grand coalition is really very bad When the ECB launched QE in to becoming a sustainably prof- “A lot of voters say they support me as an unusual coalition with the Greens. right now and they make no distinction early 2015, it was forced to design the itable bank” and said it was on a candidate but they really don’t want But when it comes to the next five between Hesse and Berlin.” programme in a way that took into track be profitable in 2018 after account concerns among northern three years of net losses in a row. European member states that large- The bank’s common equity The initiative for equal rights premieres ‘We Don’t Live scale purchases of government bonds tier one ratio — a key measure of would leave their taxpayers on the hook for losses from countries they balance sheet strength — rose 0.3 Here Anymore’ feature film deemed profligate. percentage points to 14 per cent The solution was found in the he Initiative for Equal Rights Nike (Funlola Aofiyebi-Raimi), a ‘We Don’t Live Here Anymore’ and is well above its target of 13 produced by Tope Oshin, Executive capital key, which is used to determine per cent. However, its leverage (TIERS) recently premiered powerful matriarch desperately the proportion of capital each of the ‘We Don’t Live Here Any- pulls all strings to reset the narrative Produced by Olumide Makanjuola ratio was 4 per cent — below its T and The Initiative for Equal Rights national central banks must contribute more’, a feature film directed by – leading to a battle of class and wit. to the ECB, and the portion of the ECB’s 4.5 per cent medium-term tar- Tope Oshin, at the IMAX Cinemas, While speaking at the premiere, (TIERs). It stars Funlola Aofiyebi Raimi, Katherine Obiang, Osas profits they would receive in return. get — which analysts at Citi said Lekki, Lagos. the executive producer, Olumide Thus the QE programme is linked Written by Noni Salma, ‘We Makanjuola said, “The question Ighodaro Ajibade, Francis Sule, represented a capital shortfall of Temidayo Akinboro and Omotunde not to the size of each country’s bond about €6.4bn. Don’t Live Here Anymore’ is about for me is how can we make parents two teenagers, Tolu Bajulaiye (Fran- think and understand better for their ‘Lolo’ Adebowale-David. market, but to the size of its contribu- Deutsche’s return on tangible cis Sule) and Chidi Egwuonwu children. When they do, then they The screening was witnessed tion to the monetary union’s economy shareholder equity in the quarter (TemiDayo Akinboro) in a fictional can create a good atmosphere for by celebrities and movie industry and population. Yet this has created prominence high school who found their children to live, thrive and be players such as Ashionye Raccah, Uti a headache for the region’s central stood at 1.6 per cent, less than Nwachukwu, Denrele Edun, Lata- half the 4 per cent the lender is themselves embroiled in a scandal happy. This is the reality around us bankers by pumping more into super- that completely alters their future. that we have to really think about,” sha Ngwube, Timi Dakolo, Shade safe German debt than, say, Italian targeting for 2019. With a scandal so close to home, he said. Ladipo, among others. debt. Innovation Apps Fin-Tech Start-up Gadgets Ecommerce IOTs Broadband Infrastructure Bank IT Security Thursday 25 October 2018 BUSINESS DAY A3 How Amplify Digital sets new narrative in evolving digital marketing landscape

FRANK ELEANYA of almost every tech startup. up, they should be able to see “I tell people that mar- where the trends are going arketing is keting is one of the fastest and know that it is not a flash one of the growing industry verticals,” in the pan,” Edem says. “It industries he said. “This is because the was the narrative that most that tech- rate of technology that is be- of the C-Suite executives had nology has ing brought into the market when digital technology was Mand continues to upturn; is huge. So today’s marketing starting out. Many believed old methods of selling to is significantly different from that this was going to fade. It consumers are giving way to marketing of five years ago. is here to stay. The key thing technology-driven strategies. The deciding factor today is to be able to see what areas From face to face marketing is the technology. Technol- digital technology can add to email campaigns, digital ogy has revolutionized how value to the business. When advertisements, basic social we communicate with our- we started out, it was with media management and selves, with brands, and a social media management. blog publishing, strategies whole lot more. Having this Banks were saying why do are turning towards digital at the back of our minds, you want to manage our marketing 4.0 – incorporat- digital marketing for us is the social media platforms, what ing a hybrid strategy. For ability to be able to take full happens there?” businesses in the space it is advantage of all the digital Taking that into consid- innovate with the trend or platforms available today to eration, Amplify prides itself burst. be able to effectively mar- as an organization that is Amplify Digital; a B2B ket a client’s products and performance driven and de- digital marketing company services.” livering on its promise. founded in 2014 is one of Amplify Digital is not and how they can make them It goes on to another stage their social media presence “The major challenge those that are choosing to channel specific, mean- work together. where you are including stra- having seen the potential of for a lot of the brands that innovate. Alexander Edem, ing it can serve its clients To decide what channel to tegic thinking into the mix influencing the bottom line we work with is finding the founder and chief executive across multiple channels. be on, Edem says it is impor- to see how you can get the through engaging directly agency that delivers what officer of the company tells It is a strategy that keeps it tant to pay attention to the most value for your business with them on the various they promise. There has been BusinessDay in an inter- flexible and ready to adapt defining strategy which ulti- from what is going on. Then platforms. that persistent narrative from view that proper innovation new strategies in a changing mately determines the level you have the transformation “But we are not where we the brands. It is a refresh- should begin with a new landscape. Clients’ needs are of results derived. Process stage where you are thinking need to be,” Edem notes. ing thing when you meet definition of digital market- evolving alongside their cus- also plays a significant role. of how to use the insights C-Suite involvement is an agency that does what ing for Amplify Digital and tomers. Like the customer, “If you look critically at derived to transform your at most perfunctory, done it says it would do in terms the clients it serves. today’s digital marketer’s social media today in Nige- productive development.” out of convenience and with of driving performance and One of the biggest threats clients have different needs. ria, you will see that there Apart from barrier to en- little interest. This eventually results. I tell people that our to digital marketers is the One social media tool alone are different stages of social try, Edem considers C-Suite influences their budgetary key selling people is that we barrier to entry. It is very no longer save the day nei- media management,” Edem adoption of digital market- decisions to digital market- are obsessed with results. low. With a good laptop and ther will one customer rela- tells BusinessDay. “There is ing as a big elephant in the ing. Budget allocation to Once we take you as our cli- internet connection and a tions management (CRM) the awareness stage where C- room. However, it is becom- digital marketing unit has ent we want to understand barely passable knowledge tool be the only solution to Suite just begins to get aware ing better than what it used increasingly been on the your business almost better of social media, anyone can a client’s challenge. Thus, that it is there and there is a to be five to ten years ago evi- downward trend. than you so we can very ef- become a digital marketer today’s digital marketers lot of conversations going dently. Most Nigerian bank “We feel that the boss fectively help you market in Nigeria. It is also the story have to consider the full stack on they should be a part of. executives are increasing should not be playing catch your product,” Edem says. Dropque emerges best start-up at Seedstars, proceeds to represent Nigeria Dell EMC unveils cyber recovery CALEB OJEWALE Seedstars Summit, taking one million dollars in equity The other startups invited place in Switzerland in April investment. to pitch were Aspire Power service, ransomware protection 2019. It is a weeklong train- Apart from Dropque, oth- Solutions, Biyabot, Beat- ell EMC has an- organisations have strong cy- ropque, a start-up ing program, which includes er finalists in the top three Drone, Bridgebooks, Chekkit nounced the re- ber security and anti-malware using a combina- the opportunity to meet the include MyMedicines, which Technologies, Insight Africa, lease of its cyber detection capabilities in place, tion of one way other 65 winners from other came second with its cu- NextCounsel and Termii. recovery software the impact of not being able unassisted video Dand recovery services, which to recover business processes fast growing economies, as rated medication-ordering The 11 startups pitched in Dinterviews and a powerful it says, are designed to help and data in the event of a well as investors and men- platform. It leverages 837 front of a jury which included AI assessment assistant to tors from around the world. pharmacies and blockchain Obong Idiong, CEO, Africa provide a last line of data successful ransomware or de- get companies the best can- The final day of the Summit technology to crowd source Prudential Plc; Chike Asiodu, protection defence against structive cyber attack can be didate, has been selected as is dedicated to pitching in medicines. In third position managing director, Text Ni- ransom ware, and destructive devastating. the best technology startup front of an audience of more was Natterbase, which is in- geria; Ahmed Umar, COO, cyber attacks. “Malicious insiders and in Nigeria for its innovative than 1000 attendees, with the creasing the speed and qual- Wennovation Hub; Henry The new software includes sophisticated cyber attack- sustainable solution. possibility of winning up to ity of software development. Okoede, senior manager, In- innovative automation, work- ers, especially those that The start-up emerged novation at MTN; and Mim- flow and security analytics employ ransomware, are winner at the Lagos edition shach Obioha, director, Inno- tools to ensure gold copies of known to deliberately target of Seedstars World, which vation and Entrepreneurship critical data are isolated yet data protection and backup organisers describe as the at Ventures Platform. available so business process- infrastructure,” said Beth global seed-stage start-up The Seedstars Lagos event es can be resumed as quickly Phalen, president, Data Pro- competition for emerging also featured as speaker, as possible in the event of a tection, Dell EMC. “We take markets and fast-growing Vivian Nwakah of Medsaf, destructive cyber attack. a layered approach to data start-up scenes. The event who won the last edition of Cyber attacks have be- protection within the port- had 11 selected start-ups Seedstars World Lagos and come a common occurrence, folio and with our Dell EMC invited to present their com- represented the country at the worst of which often result Cyber Recovery software and panies in front of the local Switzerland. The event was in extended downtime that Services, helping ensure true jury panel. organized with support from can bring business operations data isolation and a last line Dropque which emerged Cisco Systems, The Swiss to a standstill for days and of data protection defence for winner, will as part of the Embassy and Happy Coffee even weeks – costing millions business-critical data from a prize, participate at the Nigeria. of dollars. While many large variety cyber threats.” Team: Frank Eleanya, [email protected]; Caleb Ojewale, [email protected] A4 BUSINESS DAY Thursday 25 October 2018 Thursday 25 October 2018 BUSINESS DAY A5 A6 BUSINESS DAY C002D5556 Thursday 25 October 2018 NEWS FG targets 200,000 small businesses with improved power in energising economies initiative ISAAC ANYAOGU san, head of operations at Solad Power Holdings who ver 200,000 small built the project, said the businesses will project include a 1mw back- enjoy 24 hours up so that even if the Island power delivery in IPP goes off, the complex Othe Federal Government’s would still be powered. Energising Economies Ini- “The intention is to build tiative (EEI) implemented our power plant here, but by the Rural Electrification there is no gas supply in this Agency (REA), starting with area so we built a transmis- the completion of one of sion line from the Island the pilot projects, the Sura IPP, which has 12mw,” Has- Shopping Market Complex, san said. BusinessDay learns. “We just have a bulk The complex, which power purchase agreement has 1,047 shops, has been with them, we take bulk metered and energised for power from them, break it 70 days since the project and supply to customers kicked-off, leading to the here, Sura has a willing buy- decommissioning of over er and willing seller agree- 700 generators and a 15 per- ment with us,” Hassan said. cent increase in occupancy The EEI aims to support the rate, the government agen- rapid deployment of off-grid cy said in a release. electricity solutions to MS- While conducting jour- MEs within economic clusters L-R: Laoye Jaiyeola, CEO, NESG; Obiageli Ezekwesili, senior Economic Advisory, African Economic Development Policy Initiative nalists round the 1.5mw ca- (such as markets, shopping (AEDP); Karim El-Aynaoul, MD, OPC Policy Centre, and Mohamed Loulichki, senior fellow OPC Policy Centre, during the strategic pacity Independent Power complexes and agricultural/ dialogue of Morocco-Nigeria Relations: Enhancing Opportunities for Growth and Development held in Abuja. Project facility in Lagos industrial clusters) through picture by TUNDE ADENIY Tuesday, Omotunde Has- private sector developers. Senate suspends plenary for Terminal operators bemoan closure of Ijora oversight on 2018 budget OWEDE AGBAJILEKE, Abuja funds, we did it but with the understanding that our com- Bridge, say it worsens Apapa gridlock tention and repair, it is wrong enate has suspended mittees will quickly go and AMAKA ANAGOR-EWUZIE bridge within the shortest led to astronomical hike in plenary for two weeks do oversight of the MDAs to shut a section of it down possible time. the cost of haulage. “Less to allow its commit- to see that those loans have he closure of a without any visible work be- According to Haastrup, than a year ago, it cost about tees carry out over- been properly utilised. section of the Ijora ing carried out. The Ijora “When there is no free flow N80,000 to transport a con- Ssight function on implemen- “And also budget im- Bridge, outbound Bridge is the only way out of of traffic, cargoes are held tainer from Apapa to other tation of the N9.120 trillion plementation of 2018 and Apapa, is worsen- Apapa now and to close it up in the port and when parts of the Lagos metropo- 2018 budget. also the social intervention ing the already down is nothing but a recipe this happens, it impacts lis but today it is more than The period will also give programme that we raised Tchaotic traffic situation in for chaos,” Haastrup said. negatively on economic ac- N800,000 because of the di- the committees time to over- to allow all our committees Lagos State, says Seaport Ter- Continuing, she said: tivities in the country. lapidated roads in Apapa. see Ministries, Departments during this period to carry minal Operators Association “What has happened is the “Having backlog of cargo She added that Nigeri- and Agencies (MDAs) on the out the necessary oversight of Nigeria (STOAN). avoidable reinforcement at the port, inevitably leads ans bear the brunt of these implementation of the $2.78 so that you can report when Vicky Haastrup, STOAN of the Apapa chaos. The to port congestion and ves- astronomical charges by billion Eurobonds recently we do resume plenary. So, chairman, who stated this Apapa-Oshodi Expressway sel queue. This is why you see truckers, therefore advised approved by the National As- the committees will still be in Lagos on Tuesday, said at the Tin-Can Island Port some shipping lines impos- that the authorities should sembly. To this end, the Sen- met no during this period till the closure of the bridge, end is no longer motor- ing congestion surcharge to not compound this prob- ate will resume plenary on Tuesday, 6th of November.” which links Apapa to other able while the Ijora-Wharf make up for lost time. lem with the prolonged clo- November 6. The two chambers of parts of the Lagos metropolis end, which is where every “Port congestion will also sure of the Ijora Bridge. Senate president, Bukola the National Assembly had through the Wharf Road, was truck and other motor- mean that importers and “Government should has- Saraki, made the announce- passed the budget on May carried out by officials of the ists squeeze themselves agents will have to pay more ten work on the Wharf Road ment at the end of plenary on 16, raising the budget figure Federal Ministry of Power, through, has been under to clear their cargoes from repair and also repair work Wednesday. by N500 billion, from N8.6 to Works and Housing several repair for more than a year.” the port, the cost of which on the closed section of the Explaining, Saraki said: N9.1 trillion. months ago without carrying She called on the minister will eventually be borne by Ijora Bridge. They should “Because of the expediency However, the President out any visible activity on it. of power, works and hous- the masses.” also fix alternative roads in and demand from the Execu- signed the budget into law on “While one understands ing, Babatunde Fashola, to She said the poor condi- Apapa to allow free flow of tive that we approve those June 20, 2018. that the Ijora Bridge needs at- ensure quick repair of the tion of the roads had also traffic,” added. Electoral Bill: Sacked political office holder to Edo revises 2018 budget upward on Paris Club, other enjoy all benefits until conclusion of appeal receipts, proposes N16.2bn supplementary spending KEHINDE AKINTOLA, Abuja the Federal Republic of Nige- both. do State governor, tal and create wealth for the plication of a portion of this ria 1999 (as amended). The House had during the Godwin Obaseki state and the people. refund to clear the arrears oing by the provi- It also provides for the debate on the motion spon- has proposed a Noting that the revision of State Government’s cash sions of the new use of card readers and other sored by Emmanuel Orker- N16.2 billion Sup- is a demonstration of the contribution for Universal Electoral Bill passed technological devices in elec- Jev (PDP-Benue) resolved to Eplementary Budget for 2018 state’s commitment to open Basic Education Commis- by the House of tions and political party, to rescind its earlier decision fiscal year, a 10.79 percent governance and transpar- sion (UBEC) Grants, result- GRepresentatives on Wednes- ency, he said, “The revised/ ing in a N3bn UBEC grant in provide a timeline for the sub- on clauses 1 to 26 of the bill, increase to the N150.093bn day, any elective political of- mission of list of candidates, which was considered on budget for the year. supplementary 2018 Budget favour of Edo State. fice holder sacked by Election criteria for substitution of Wednesday, October 17, 2018 The governor, who dis- shows a budget seize of “The Central Bank of Ni- Tribunal shall remain in office candidates as well as limit of and deferred further con- closed this after the Weekly N166.293bn from the ini- geria (CBN) in the course and enjoy all accrued benefits campaign expenses. sideration of the remaining State Executive Council tial size of N150.093bn. This of this fiscal year, approved until the determination of ap- Similarly, the bill address- clauses of the bill. (EXCO) meeting held at the represents a 10.79 percent the disbursement of con- peal and finally determined es issues bothering on omis- The motion was adopted Government House, in Be- increase.” cessional loans (under the by the Supreme Court. The sion of names of candidates in pursuant to Order One, nin City, said that the Sup- According to him, “In Commercial Agriculture amendment was contained or logo of political parties dur- Rule 1(2) and Order Nine Rule plementary Budget would the course of the 2018 fiscal Credit Scheme, CAC), to in Section 143 of the bill. ing election. 1(6) of the Standing Order of be forwarded to the Edo year, Mr. President approved qualifying states. Edo State According to the explana- The bill also provides in the House. State House of Assembly for the disbursement of the fi- met all qualifying criteria tory memorandum of bill, the Section 140 that any elec- According to Orker-Jev, passage. nal tranche of refunds from and thus received N5bn legislation seeks to amend the toral officer who omits party certain new matters consid- The SupplementaryParis/London club of bor- from the CBN under CACs. Electoral Act No. 6, 2010 to names or logo, leading to ered by the House are perti- budget will be channelled rowers to States and Local The foregoing developments make provisions for restric- postponement of election, nent to the electoral process to education, agriculture, Governments (Edo State’s were not anticipated at the tion of the qualification for shall be liable to an offence on to be captured in the bill to among others, which is ex- share of this refund amounts time the 2018 budget pro- elective office to relevant pro- conviction to a N2 million fine ensure transparent and cred- pected to build human capi- to N5bn). Mr. President posal was approved by Ex- visions of the Constitution of or two years imprisonment or ible 2019 elections. further approved the ap- ecutive Council in 2017”. Thursday 25 October 2018 C002D5556 BUSINESS DAY A7 NEWS $110bn lost yearly to food related illnesses in 2019: Pundits speculate Tinubu’s next political move low, middle income countries – World Bank ered in the incumbent Presi- cordial, while Tinubu have anything can happen. I can INIOBONG IWOK CONRAD OMODIAGBE measures in food produc- dent Muhammadu Buhari also openly declared his sup- tell you that, when it comes tion and delivery, as proper s the 2019 gener- However, the relationship port for Buhari’s re-election to politics, there is no perma- he World Bank in management and safety of al elections draw between Tinubu and Presi- bid. Tinubu also success- nent friend and enemy, it is a new study has food could assist in achiev- closer, the politi- dent Buhari nosedived after fully installed his associate about your interest. revealed that low- ing multiple Sustainable cal move of the Buhari assumed office in and former governor of Edo “So, if Tinubu dumps Bu- and middle-in- Development Goals relat- national leader 2015 as President. State, Adam Oshiomhole, as hari at the last minute and Tcome countries across the ing to poverty, well-being ofA the ruling All Progressives Close associates and loy- the national chairman of the give his support to Atiku world lose approximately and hunger. Congress (APC) appears to alists of Tinubu had accused party. don’t be surprise, because it $110 billion in productivity Drawing the govern- be uncertain. President Buhari of sidelin- Buhari recent emergence is obvious that forces within and medical expenses year- ment’s attention to the need Tinubu is perhaps regard- ing Tinubu in appointments as the consensus Presidential the APC and close loyalists ly, as a result of illnesses re- for greater investment, bet- ed as the one of the greatest into his cabinet and several candidate of the APC, elected of the President were not sulting from unsafe food. ter regulatory frameworks politicians and political strat- other positions across the in a direct primary by party comfortable working with According to the report, and measures that promote egies of his generation. country, in spite of Tinubu’s members across the state Tinubu. the global epidemic of food- behavioural change, is The Since leaving office as contribution to Buhari’s chapters in the country. “Look at what happened borne diseases is unequally Safe Food Imperative: Accel- governor of Lagos State in emergence as the President In spite of this, as the to him, after 2015 election distributed in countries erating Progress in Low and 2007, Tinubu has continued of the country. build up to the 2019 general they sidelined him, after within the low- and middle- Middle Income Countries, to maintain his influence Tinubu’s disagreement elections gathers momen- he supported Buhari. If I income bracket in the sub- which provides data to aide and dominance on Lagos with the Buhari’s govern- tum, analysts have ques- were he, I would not back Saharan Africa region, South in policy creation and imple- and Southwest politics, while ment and the leadership of tioned Tinubu’s support for his re-election bid. But it Asia, and South East Asia mentation. also gaining more national APC became public knowl- Buhari’s re-election bid, this seems what we are seeing is bearing the major burden. “Food safety receives rel- prominent in recent years. edge when he wrote an open is amid recent photography more than this, Tinubu may While accounting for 41 per- atively little policy attention Perhaps, his greatest po- letter criticising the then na- of Tinubu and Atiku Abuba- be afraid of his shadows,” cent of global population, and is under resourced. Ac- litical geniuses could be lead- tional chairman of the party, kar public embrace. Kusamotu says. they also account for 53 per- tion is normally reactive to ing four major opposition John Odigie-Oyegun, who Political analyst, Ayo Analysts have further pre- cent of food related illnesses major food-borne disease parties into a merger that was then backed by Buhari, Kusamotu, notes he will not dicted that since its was now and 75 percent of deaths. outbreak or trade interrup- metamorphosed into the predicting doom for the par- be surprise if Tinubu dumps obvious that Buhari could Further breakdown of tions, rather than preven- APC, which resulted in the ty if Oyegun continued to re- Buhari at the last minute, not be trusted Tinubu may the report shows that total tative,” Juergen Voegele, defeating of the then ruling main in office. stressing that there is no per- ditched him for Atiku, fear- productivity loss associated senior director of Food and People’s Democratic Party However, in recent time manent friend in politics, but ing that he may be victimised with food-borne illnesses in Agriculture Global Practice, (PDP) in a historic general the relationship between the permanent interest. by Buhari if he wins a second these countries is estimated World Bank, says. elections in 2015, which ush- two leaders appears to be “Of course, this is politics, term. at $95.2 billion, while cost of The study, which trans- medical attention dedicate lates the aforementioned to these illnesses is estimat- statistics, also schematically L-R: Biodun ed at about $15 billion. Oth- describes the alignment or er unquantifiable costs in- the lack thereof between food Omoniyi, MD/ clude loss of trade income, safety risks and the capac- CEO, VDT companies and farmlands, ity to manage them as coun- Communications, and also the environmental tries develop economically with president of burden of food waste. and food systems and diets ATCON, Olusola However, majority of change. It also reveals that the Teniola, at NTITA these costs could be avoided gap is most pronounced in according to the report, by the middle of the pack, which Award 2018, adopting certain preventive are lower income countries. where VDT won Corporate Internet Provider of the Year Award and FCTA, Shippers’ Council to establish $150m the MD/CEO dry port, truck transit terminal won the ICT Personality of the JAMES KWEN, Abuja Western lines, while reveal- Year Award. ing that there was also a he Federal Capital spur rail line from Minna in Territory Admin- Niger State, to Abuja, envis- istration (FCTA) aged to connect to the Baru and the Nigerian Port. TShippers Council (NSC) are He urged the manage- to establish $150 million ment of the Shippers Coun- worth dry port and truck cil to factor in these pro- transit terminal in Abuja. visions in the project and This was the outcome investment plan, saying of a working visit by the there was already a bus ter- executive secretary of the minal under construction Why it is difficult to grow from small to big business in Nigeria Nigerian Shippers Council, in Abuja, and FCT could Hassan Bello, and his man- leverage the network of the employ a lot more people; family and friends who can people, you do badly. We at CHUKA UROKO agement team to the FCT Council in attracting inves- drive innovation and com- help,” Paul Onwuabibe, Landmark have been very minister, Muhammad Bello. tors and partners for the hough it is difficult petition in many economic CEO, Landmark Group, told fortunate to have gotten the The FCT minister, while project. to know exactly the sectors, and are also the BusinessDay. right set of people to drive speaking on the develop- He stressed that FCT number of small highest employer of labour Onwuanibe is of the view our ambition and execute ment, said the Abuja Mas- already had a policy gov- businesses in Nige- when aggregated, many of that for everybody who runs a our dreams. Training, nur- ter-Plan envisaged a dry erning the operations of Tria, it is estimated that en- these businesses find it dif- business in Nigeria, the chal- turing, rewarding and mo- port and truck transit termi- articulated vehicles regard- terprises in this class, which ficult to grow to become big. lenges are similar. What dif- tivating them remains a fine nals in the territory, noting ing when and where they operate independently with Experts explain that fers, he reasoned, is the size balancing act in a very com- that the current growth and could ply, and disclosed fewer than 300 employees, apart from the harsh oper- of the challenge and what petitive marketplace.” development being experi- that FCTA was working to make up 97 percent of busi- ating environment, these resources and personnel the The state of Nigeria’s enced in the FCT was indic- strengthen the institutional nesses in Nigeria. businesses have many other firm has to tackle them. economy is another limit- ative that Abuja was ripe for framework for the enforce- This means that in spite of challenges that limit their He added, “The big- ing factor for the growth of all the necessary comple- ment of the regulations. all the challenges on their way growth into large compa- gest challenge I see in the businesses in the country ments of a mega city. He congratulated the NSC to growth, these businesses nies and corporations. country is people. Getting and this captures what the The minister, who an- team on the passage of the strive to exist, underscoring “A major challenge for the right set of people to Landmark Group CEO de- nounced that a joint team Bill transforming them into the entrepreneurial spirit of these businesses, which work with is a big challenge; scribed as scourge of an would be constituted to the National Transport Com- those behind their establish- cuts across board, is access you need people who are emerging economy. “This work out the modalities for mission and appealed to the ment. They dominate the to long-term sustainable well-trained, well-educated is a place where you have the implementation of the Council to do something on country’s business landscape finance. I believe the finan- with high moral and ethical huge regulatory limits, very projects, informed the del- illegal reconstruction of truck with each, like human beings, cial system is unkind to both standards. It is very difficult little enabling yet major egation that the Idu Station to carry loads above their struggling to survive and grow. big and small businesses. to get people in this class. unplanned expenses on ba- was Abuja’s transportation required tonnage, resulting But, event though they To grow from a small busi- “If you get the right peo- sic infrastructure expected hub, ensuring connectivity in so much carnage on the outnumber large compa- ness to a large one is very ple, you do extremely well, from the municipal, state or by road, air and rail link- roads and causing severe nies by a wide margin and difficult if you don’t have and if you get the wrong federal authorities. ing Eastern, Northern and damages on roads. A8 BUSINESS DAY C002D5556 Thursday 25 October 2018 Leadership SHAPING PEOPLE INTO A TEAM AI’s potential to diagnose and treat mental illness

PARIE GARG AND SAM GLICK computer programs that simu- late human conversation, either he United States faces a through text or a voice-enabled AI mental health epidemic. interface. In mental health, these Nearly 1 in 5 American bots are being pressed into service adults suffers from a by employers and health insurers form of mental illness. to root out individuals who might TSuicide rates are at an all-time be struggling with substance high and 1 in 8 Americans over 12 abuse, depression or anxiety and years old take an antidepressant provide them with access to con- every day. The economic burden of venient and cost-effective care. depression alone is estimated to be — THE NEXT GENERATION: at least $210 billion annually, with Today’s mental health AI solutions more than half of that cost com- may be just the beginning. The ing from increased absenteeism University of Southern California’s and reduced productivity in the Institute for Creative Technologies workplace. has developed a virtual therapist In a crisis that has become named Ellie that hints at what’s progressively dire over the past ahead. Ellie is far more than the decade, digital solutions — many usual chatbot — she can also de- with artificial intelligence at their tect nonverbal cues and respond core — offer hope for reversing the accordingly. For instance, she has decline in mental wellness. Tech learned when to nod approvingly companies and universities are or perhaps utter a well-placed developing new tools with potent “hmmm” to encourage patients diagnostic and treatment capabili- versus seeing a psychiatrist or using speech samples only from AI solutions help mental health to be more forthcoming. ties that can be used to serve large psychologist is another plus. These one demographic group, working professionals do their jobs bet- Ellie, an avatar rendered in 3D populations at reasonable costs. advantages help AI tools ferret out with patients from outside that ter. They collect and analyze data on a television screen, functions AI solutions are arriving at an undiagnosed patients, speed up group might result in false alerts and suggest effective ways to treat by using different algorithms that opportune time. The nation is needed treatment and improve the and incorrect diagnoses. Similarly, patients much more quickly than determine her questions, mo- facing a critical shortage of psy- odds of positive outcomes. a virtual therapist trained primar- humans can. tions and gestures. The program chiatrists and other mental health Like all digitization efforts in ily on the faces of tech company Ginger.io’s virtual mental health observes 66 points on the patient’s specialists that is exacerbating the health care and other industries, employees may be less effective at services — including video and face and notes the patient’s rate of crisis. Nearly 40% of Americans live these new tools pose risks, espe- reading nonverbal cues from wom- text-based therapy and coach- speech and the length of pauses in areas designated by the federal cially to patient privacy. Health en, people of color or seniors — few ing sessions — provide a good before answering questions. El- government as having a shortage of care has already become a prime of whom work in tech. To avoid this example. Through analyzing past lie’s actions, motions and speech mental health professionals. Those target of hackers as more and more risk, AI vendors must recognize the assessments and real-time data mimic those of a real therapist fortunate enough to live in areas information has been digitized. But tendency and develop AI tools us- collected using mobile devices, — but not entirely, which is an with sufficient access to mental hacking claims data is one thing; ing the same rigorous standards as the Ginger.io app can help spe- advantage with patients who are health services often can’t afford getting access to each patient’s research clinicians who diligently cialists track patients’ progress, fearful of therapy. them because many therapists most intimate details presents a seek test groups representative of identify times of crisis and develop In a research project with sol- don’t accept insurance. whole new type of risk — particu- the whole community. individualized care plans. diers recently returned from Af- Instead, the countless undiag- larly when those details are linked More broadly, AI’s scale can be — ANTICIPATING PROBLEMS: ghanistan, Ellie uncovered more nosed suffer or look to emergency to consumer data and social media both a blessing and a curse. With Mental health diagnosis is also evidence of post-traumatic stress rooms and primary care physicians logins. Providers should design AI, one poor programming choice being supplemented by machine disorder than the postdeploy- for treatment. For this reason, their solutions to employ mitiga- carries the risk of harming millions learning tools, which automatical- ment health assessment admin- mental health treatment is linked tion techniques such as storing of patients. Just as in drug develop- ly expand their capabilities based istered by the U.S. military. Ellie to nearly a quarter of employer minimal personally identifiable ment, we’re going to need careful on experience and new data. One was even able to identify certain health costs even though it appears data, regularly deleting session regulation to make sure that large- example is Quartet Health, which “tells” common to individuals to account for only 4% of them transcripts following analysis and scale treatment protocols remain screens patient medical histories suffering from PTSD. With up to While some may consider the encrypting data on the server itself safe and effective. and behavioral patterns to un- 20% of returning veterans coping digitization of mental health ser- (not just encrypting communica- But as long as appropriate safe- cover undiagnosed mental health with PTSD and a staggering suicide vices to be impersonal, the inher- tions data). guards are in place, there are problems. For instance, Quartet rate among that population, the ent anonymity of AI can be a posi- AI vendors also must deal with concrete signs that AI could offer a can flag possible anxiety based potential impact of a solution like tive in some instances. Patients, the acknowledged limitations of powerful diagnostic and therapeu- on whether someone has been Ellie is significant. who are often embarrassed to AI, such as a tendency for machine tic tool in the battle against mental repeatedly tested for a nonexistent reveal problems to a therapist learning to discriminate based on illness. Below, we examine four ap- cardiac problem. Parie Garg and Sam Glick are they’ve never met before, let down race, gender or age. For instance, if proaches with the greatest promise: — DR. BOT: So-called “chatbot partners in Oliver Wyman’s Health an AI tool that uses speech patterns — MAKING HUMANS BET- counseling” is another AI tool their guard with AI-powered tools. and Life Sciences practice. The lower cost of AI treatments to detect mental illness is trained TER: At their most basic level, producing results. Chatbots are

c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate BUSINESS DAY NEWS YOU CAN TRUST I THURSDAY 25 OCTOBER 2018 C002D5556 Opinion THE PUBLIC SPHERE The politics of the Igbo (2) include issues of citizenship, the movement. He added, “Chukwu Nigeria. I can only come to the ity for execution of those of the them to the ballot or will they go structure of the federation, the OkikeAbiama has assured me court with UN supervision.” first and second republics. They the other way? It is a significant constitutional basis of Nigeria, that Biafra shall come. All collab- The “Biafran with British vend to the people vacuity and test of how well they have served powers and roles of the federat- orators will feel the full weight of nationality” curiously wants hopelessness. and how the people regard ing units, resource generation, his followers with only Nige- Ndigbo now stand at a cross- them. Are the office holders in allocation and management. rian identity and nationality to roads that Kanu has helped to South East Nigeria people who As the region continued the Ndigbo now stand at renounce their citizenship of signpost. The dominant tenden- command the loyalty of their CHIDO NWAKANMA in-house debate stirred by the a crossroads that Kanu the only country they know and cy in Igbo land, being the elected electorate or will we have a Nwakanma is a Visiting Member nomination of former Gover- ‘ avoid participation in citizen leaders and the elite organised reprise called Warrant Chiefs2? of the BusinessDay Editorial nor Peter Obi as running mate has helped to signpost. roles and obligations. Similarly, in several socio-political groups The countdown begins. Board and serves on the Adjunct to Alhaji Atiku Abubakar, enter The dominant tendency he expects Nigeria to conduct a led by Ohanaeze, prefer to re- South East at the Nigerian Faculty at the School of Media Nnamdi Kanu in a cameo at in Igbo land, being the referendum so that citizens can main and engage Nigeria while Economic Summit and Communication, Pan Atlantic the Western Wall of Jerusalem, decide whether to remain here pursuing restructuring. Others The annual Nigerian Eco- University, Lagos. Email chidon- Israel. It was an exemplifica- elected leaders and the or prefer Biafra. canvass boycott of elections nomic Summit kicked off on [email protected]. tion of politics as high drama elite organised in several Like or despise him, Nnamdi and other civic engagements Monday, October 22. For most and symbolism. He followed socio-political groups led Kanu has emerged as an authen- until there is a referendum or a of this week, public and private with a broadcast to the people by Ohanaeze, prefer to tic Igbo leader with a massive review of the “fraudulent 1999 sector players would canvass he re-emergence of of Biafra the next day that has following that commands atten- constitution”. ideas, get insights and perspec- Nnamdi Kanu has now dominated discussion and remain and engage Nigeria tion. There are many willing to IPOB’s call for a boycott of tives and seek collaborations as added to the fixation conversation in the region and while pursuing restructur- go wherever he leads. He causes elections did not work in the input to policy in the Nigerian on and allure of South around it across Nigeria. strong division in the land be- gubernatorial race in Anambra budgets and national plans go- East Nigeria as the ing. Others canvass boycott Kanu wore his imperial at- of elections and other civic tween those who believe him in 2017. The failure showed that ing forward. This 24th edition of Tpivot of the coming elections. tributes and “decreed” that the wholly and many who dismiss the Igbo would do what they the Nigerian Economic Summit More importantly, Nnamdi South East and South South engagements until there is him as an uncouth and impolitic consider to be rational and in focuses on “Poverty to Prosper- Kanu and his moves will bring no longer exist but are now a referendum or a review rabble-rouser out to deceive the their best interest. They are ca- ity: Making Governance and matters to a head concerning Biafraland, asked the people of people with fanciful notions. pable of holding two conflicting Institutions Work”. It will look influence and leadership in the of the “fraudulent 1999 the Benue to join Biafra, and or- constitution” His followers do not care, and ideas at once, supporting Kanu at how to make the Economic South East between the elected dered a boycott of the elections. they number in millions among on some matters and doing the Recovery and Growth Plan of leaders (ndinzenaozo) and the He was expansive and confident the young mostly as well as the exact opposite on some others. the Federal Government work. unelected leaders, ndiEzeahu- in his assertions. , not-so-young exasperated with Conspiracy theorists already Missing are the Governors of rukwe. The plot unfolds daily “Without a referendum, the anger of the Biafran people. Nigeria and sold on the romance see in Kanu’s sudden appear- the South East. They are peren- and would, if the players man- nothing will happen in Nigeria. “I am coming back to Biafra of Biafra. The fact that Biafra was ance in the wake of the emer- nially absent. Months and years age it well, redound to the ben- IPOB will not participate in land soon,and I will bring hell a failed project does not faze gence of Peter Obi a plot to cre- after failing to participate or lead efit of governance in the region. any election,and that position with me, the way it has never them in the light of the many ate confusion and undermine the discourse on the emergent The first part of this essay will never change.IPOB is the been seen before.” injustices of Nigeria against the the possibility of block voting by issues, they will raise the futile ended on the note that the South largest mass movement in the In what amounts to a Freud- people. the Igbo through the distraction and deceitful cry of “margin- East would be central and con- whole world. We will not stop ian slip, Kanu renounced any Kanu draws on the angst in of no referendum no voting. alisation” to their people. It is tributory to the determination of until Biafra is fully restored”, Mr links with Nigeria. Said he: “I the land and the hopelessness of The real challenge is for the difficult to comprehend how Nigeria 2019 General Elections. Kanu boasted. am not a Nigerian. I already a vast army of unemployed and Igbo political class. Do they have these “leaders” fail to lead a The South East electorate is at The leader of the Independ- renounced Nigeria in 2015. I am underemployed young people. enough credibility and deposits region that was in the forefront the centre of the discourse on ent Peoples of Biafra (IPOB) a Biafran of British nationality. I There are few opportunities in in the emotional bank accounts in many areas in the past.Is the many of the issues in contention declared the support of Israel cannot be tried by a court I do the South East with governors of citizens to command their cutlass not sharp or is it the fault for the future of Nigeria. They and the United States for his not recognise. I do not recognise lacking in the vision and capac- loyalty and allegiance to follow of the wielder? Government by ambuscade and insubordination of chop-and-clean mouth and for from who he received the goods? rules, as only the president could process and admonished nobody procedural correspondence to the Umaru Yar’adua, it was neither ( me, I no know law!). Interestingly, suspend him, an act which the in particular on the need to do the president. Of course, the matter here nor there, though he laid the Obanikoro and Omisore (the board refers to as hiding under right thing always! The young man was a still-birth and there were foundations of political integrity. Osun match-maker) have just re- the cover of the presidency. On engaged the Minister in a battle of reports that Ibe Kachikwu later Jonathan ran a government of trieved their passports from EFCC. Monday (23/10/18), he upped the supremacy and won and now the presented some of these contracts appeasement and without bit- The ambuscade is not just an ante, by triumphantly marching board will soon kiss the dust. for FEC (retroactive?) approval. terness. Abuja affair; all the satellite cam- into the NHIS, led by a battalion The NHIS affair compares -fa May be, that was the terms of the In this second coming of PMB, puses of Abuja are also involved. of policemen (The police authori- vourably with the NNPC fiasco in ‘out of court’ settlement. IK MUO it has been government by body Thus immediately Emir Sanusi’s ties as usual declared that it was which Kanti Baru (GMD, NNPC), There have been other embar- language, political mathematics talkativeness got out of hand, an accidental operation, as they openly defied his ‘employer’, the rassing acts of insubordination. Ik Muo, PhD. Department of (5% votes yielding 5% dividends), Kano state started investigating never assigned the policemen to Minister of State (MOS) for Petro- The Inspector General of Police Business administration, OOU, nepotism, phariseesm and most the emirate finances (and fearing him). He had been suspended leum and NNPC Chairman, Ibe refused to relocate to Benue State Ago_Iwoye important, government by am- a recurrence of what happened to earlier by the Minister of Health Kachikwu. The MOS had cried as ordered by the President, re- 08033026625, muoigbo@yahoo. buscade and insubordination. In his grandfather, he soft pedalled); (2017) and he defied the Ministers foul that contracts worth $25bn fused to respond to the invitation com, muo.ik@oouagoiweye. terms of ambuscade, this govern- the Olubadan faced a threat of order, giving 5 reasons why he (circa, N9trn,) were awarded uni- by the Senate (just like his customs edu.ng ment ambushes anybody who deposition once the chieftaincy was above suspension by a mere laterally by Baru, whom he also counterpart), telling them he owed falls out of favour or who crosses brouhaha started; Jibrin was sus- minister and he was supported by accused of gross insubordination, them no apology and has been have been around long the red-line. Thus in 2015, Atiku pended once he started singing the presidency. This time around, sidelining the board and torpe- accused of disregarding the guide- enough to observe how our led the rebel governors, birthed padding, padding like a parrot the government has intervened, doing his reforms. The amount lines of the Police Service Com- affairs have been managed the nPDP, campaigned for PMB and when Senator Misau accused with a view to finding a lasting in question was more than the mission. The PAC (Permanent in the past few decades. Each and all was well. But as soon as the Inspector General of Police solution, though the government 2017 Nigerian budget and about Acting Chairman) of EFCC has Iruler (surely, we have not had he saw the light and redirected of some unholy practices, 1001 spokesman has openly asked 1000% of the famed Dasuki loot. defied his boss and AGF, Abubakar leaders) has an operational philos- his steps to PDP, he became the charges were filed against him by whether the board followed due The GMD fired back that he got Malami, refusing to report to him ophy, to which everybody keys in. most corrupt Nigerian, dead or the government and suddenly, presidential approval (at a time as par the EFCC guidelines, just Murtala Mohammed was govern- alive. It even started before now the police authorities suddenly re- PMB was in medical detention as he has continued to stay in of- ment by action; or talk and do, ac- because once his political signals membered that he was on AWOL and handed over to VP!) that the fice despite his non-confirmation cording to one man in my village. became clearer and that was when from the police force. MOS was ignorant of the rules and by the senate. It was the same During Obasanjo’s first coming, it his company was accused of tax But where the present govern- that in any case, he (MOS) also matter with the Chairman of the was a government of figurehead, evasion, its pilotage arrangement ment has scored a distinction is in But where the present recommended nine of the firms Presidential Special Panel on because fearing what happened with the NPA was cancelled and governance by insubordination. government has scored a (ambuscade) and in effect, that the Recovery of Public Property, to his boss, he left Shehu Yar’adua, the residence permit of some of This is a situation in which a sub- ‘ his claims were fabricated. Then, Obono-Obla, who was suspended distinction is in govern- in charge. In his second coming, it the staff were withdrawn. Ortom, ordinate would look the superior the story got messier when the VP, by the presidency are retorted: I was government of do or die and who succeded Sam Mbakwe as in the face and tell him or her to ance by insubordination. Pastor Osinbajo admitted that he am going nowhere! Similarly. Of democracy without democratic a weeping governor, suffered a go to hell and the government This is a situation in which approved some of the contracts, course, Abubakar Magaji, a mere ethos. During General Buhari’s similar fate as his canonization will support such a subordinate a subordinate would look denied signing any contracts permanent secretary had the guts first tenure, it was governance by was withdrawn once he parted directly or via the infamous body though he approved some loans to address his boss and Head of terror and retroactive decrees. For ways with APC. Obanikoro gave language. And the case of Prof the superior in the face and and finally declared that the con- Service, Mrs Oyo-Ita as that per- IBB, it was government by settle- stolen property to Ayo Fayose, for Usman of the National Health tell him or her to go to hell tracts were a figment of Kachik- son, in the full glare of the global ment and for Abacha, government which the EFCC sought him with a Insurance Scheme is the star in and the government will wu’s imagination. Eventually, the audience during the NASS inquest by taciturnity. IBB and Abacha vigour that extended to his family. this matter. The NHIS govern- support such a subordinate big masquerade, and Minister of into the Maina Saga (By the way, also ran government by secret Then, he saw the light, retraced his ing board announced his in- Petroleum, President Buhari or- what happened to Maina? Has all dossiers, in which people with steps and now, he that received definite suspension on Thursday, directly or via the infamous dered the bickering parties (MOS things become anew for him?). contrary spirits were confronted the money is a witness against 18/10/18 but the fellow ignored body language & GMD are at the same level) to Surprisingly, the ‘presidency’ with implicating documents and his friend turned fiend, Fayose. the meddlesome board and con- shut up! Even the MOS started has been involved in all these cases then asked to do the right thing. If Fayose received stolen goods, tinued going to work, accusing speaking in tongues, stressing that of insubordination. How can a For Abubakar, it was a government how about the known person the board of ignorance of the , the letter was merely a normal government sabotage itself?

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