Banks shun meeting with NCC over Etisalat …accuse Etisalat Group of abandoning obligations …as information emerges of a similar exit in Tanzania LOLADE AKINMURELE munications Commission (NCC) According to one of the CEOs only interested in protecting the brought before it and in a man- igerian banks owed by accusing it of pursuing an agenda of the banks, “there was no point debtors at Etisalat.” ner that showed that they at the Etisalat have shunned a aimed to “shield a debtor from attending the meeting because The bank chief said it was unfair NCC have no interest whatsoever meeting with the regu- creditors” which are exposed to we did not want to play into their for the commission to enter into a Nlator, the Nigerian Com- the tune of $1.3 billion. hands. It is clear that the NCC is matter that has not been formally Continues on page 33 MARKETS AND COMMODITIES MONITOR FMDQ Close (Rate & Prices) COMMODITIES EXCHANGE RATE FMDQ Close (Rate & Prices) Oil US $45.57 NSE Close BDC TRAVELEX Foreign Exchange Treasury bills FGN Bonds) $-N366.00 367.00 Market Spot $/N 3M 6M 5Y 10Y 20Y GOLD $1,251.30 -549.45 £-N463.00 465.00 I&E FX Window 363.00 0.46 0.32 0.00 -0.09 -0.07 COCOA $ 1,817.00 32,928.44 €-N410.00 410.00 CBN SMISWindow 320.00 18.99 19.17 16.17 16.29 15.96

NEWS YOU CAN TRUST I **FRIDAY 23 JUNE 2017 I VOL. 14, NO 380 I N300 @ g Inside Outbound Investors target Nigeria’s summer bookings soar on stable fares $1bn medical tourism market P. 4 ISAAC ANYAOGU & ANTHONIA OBOKOHABUJA FG allays nvestors are targeting Ni- … $500 million new 500-bed hospitals underway fears of geria’s estimated $1 billion hospital projects to be located ance Plc are planning hospital Abraaj is billed to spend gridlock over medical tourism market in Lagos state. projects that “will reduce the up to $500 million in start-up as two major investors Dubai-based emerging mar- need to fly abroad for medical capital for a mid-tier hospital Apapa road ket investment fund, Abraaj treatment,” says Doyin Oduban- plan a US$500 million in- Continues on page 4 repairs Ivestment on two new 500-bed Group and AXA Mansard Insur- jo, a public health expert. P. 3 3 Finally, FG to kick-start asset sales as it reconstitutes council on privatisation P. 3 5 Can you lead effectively in Africa? Glory Enyinnaya L-R: Omobolanle Victor-Laniyan, head sustainability, Access Bank Plc; Herbert Wigwe, GMD/CEO, Access Bank Plc and Nicolas Terraz, MD/CEO, Total Exploration and Production Nigeria Limited, during the inaugural board meeting of the Nigerian Business Coalition Against P. 10 AIDS held at the Access Bank Plc in Lagos, yesterday. 2 Friday 23 June 2017 Friday 23 June 2017 3 4 BUSINESS DAY C002D5556 Friday 23 June 2017 NEWS Outbound summer bookings soar on stable fares OBINNA EMELIKE to Durban in South Africa, but the difficulty in getting visa and the ith sustained …threaten gains on domestic front relatively higher airfare made me change my mind because Kenya stability in dol- 80 percent of the bookings so are even cheaper than flying to economy, unlike this time last lar/naira foreign is cheaper and offers even more far, are to destinations that are Gambia and Senegal because of year, when the economy was deep enthralling wildlife experience exchange rates , offering visa on arrival, particu- the difficulty in connecting West into recession. many outbound than South Africa”, Bello said. larly Dubai and Seychelles. Also Africa by air. “This year is better than last Like Bello, Awhana explained tourW operators and travel agents attributing the development to Efetobo Awhana, managing year, the dollar is more stable, that Nigerian visitors are often are beginning to witness impres- cheaper fares, Aniga noted that director, Avantgarde Tours, who rates are much lower, airlines are sive bookings from their Nigerian drawn to destinations such as this time last year, a return ticket has also recorded an impres- fully back to business, as no one is Dubai, Kenya and even Rwanda, clients for the summer holiday to London cost between N700,000 sive increase in summer book- talking of leaving Nigeria, unlike abroad, than was the case this now, because of cost and the visa and N1 million. Today, it has gone ings, attributed the increasing this time last year, when a few left. on arrival policies of these desti- time last year. down to N400,000. The likes of outbound bookings for summer So, Nigerians are back to the air”, The improving performance nations. However, the news of the Dubai, South Africa, according holidays to stable dollar/naira Awhana said. increasing volume of outbound of the naira against the US dollar, to him, cost from N200,000 while rates, settlement of the feud the Mayegun Bello, a telecoms en- has also induced cheaper airfares, tours for summer from Nigeria, Kenya, Rwanda and Seychelles over debts owned airlines and gineer, preferred East African des- is not well-received by some in- competitive accommodation are far cheaper now, compared the subsequent stability in the tinations to South Africa because options and pocket-friendly tour bound tour operators. with the fares last summer. Some airfares across board, as well as of the cheaper flights and visa on Jemi Alade, CEO, Jemi Alade packages, especially for would- of these East African destinations the recent improvement in the arrival. “My wife wanted us to go be holiday makers who booked Tours, noted that domestic tour- ahead, in the fear of the possibil- ism has started picking up and Ni- ity of volatility in exchange rates gerians should in the spirit of buy- during summer. ing made-in-Nigeria goods and Comparing the volume of services, patronise these domestic bookings from clients this time destinations, to further sustain the last year, with this year’s record, gains it made at the peak of dollar major outbound travel and tour volatility last summer. operators note that they have Alade, who recently took 20 recovered over 40 percent of their Chinese tourists to Bida in Niger clients who couldn’t travel last State for Durbar festival, insisted summer, in the wake of the most that Nigeria has enough attrac- astounding dollar volatility in the tions to host her citizens and for- history of their businesses. eigners but that the fad for foreign “I lost over N7 million last destination has not allowed them summer, to cancellations result- to explore these destinations. ing from the inability of clients “About 80 percent of my busi- to buy dollars at N500 then. ness is inbound, and I earn foreign Even those who we thought were exchange doing so. What is miss- super-rich slowed it down and we ing is government inviting people were left at the mercy of partner to come and explore the country’s hotels and airlines that were bent tourism potential and not only on collecting cancellation fees”, business trips”, Alade said. said Magnus Aniga, a Lagos- Ikechi Uko, CEO, Akwaaba based travel agent. African Travel Market, noted As at June 20, 2017, Aniga’s that though outbound tours are Greenhill Tours has received full increasing, the development payment from 62 clients for tours would not impact domestic tour- in Dubai, London, Seychelles, ism, which according to him, has Trinidad and Tobago, among Isma’ila Muhammadu Zakari, president, Institute of Chartered Accountant of Nigeria (ICAN), (r), with Kabir taken off with speed. other destinations for the sum- Mohammed, past president/special guest of honour, at the 46th Association of Accounting Technicians West “I have 20 products that are be- mer holiday. He noted that over Africa (AATWA) induction ceremony for new members in Lagos, yesterday. Pic by Olawale Amoo ing marketed across the country this Sallah holiday and there are Continued from page 1 many young tour operators who Investors target Nigeria’s $1bn medical... are focusing only on domestic business, tapping into demand besides its own cash, Abraaj was for a 20 percent equity stake, from existing buildings, which tours. They are leaving outbound from the continent’s emerging looking to attract a similar sums to support the green-field de- will be demolished. to older tour operators and are middle class. from other investors, meaning velopment, construction and The project sponsor has also getting more Nigerians to travel Sev Vettivetpillai, a partner that the first four target cities operation of the hospital. Also, partnered with Healthshare within the country than ever at Abraaj, said the group was were likely to absorb at least $1 Africa Capital Alliance (ACA), a Health Solutions Ltd, a South before. Domestic tourism is truly well on the way to securing land billion between them in the next private equity fund is consider- African hospital operator with gaining traction”, Uko concluded. for a 350-bed multi-speciality five years, he said. ing investing in the project for a international hospital develop- Ayo Olumoko, CEO, Infogem, hospital in Lagos, Nigeria’s com- Similarly, AXA Mansard In- 40 percent stake. ment and management experi- the marketers of the annual Osun mercial capital, as well as buying surance Plc, is poised to secure The hospital will be built on ence to manage and operate the Osogbo festival and deputy vice several hospitals in Nairobi, Ken- funding for a 150 bed hospital a 20,000 square meter parcel of hospital. president, Federation of Tourism ya, to form a healthcare ‘cluster.’ and two clinics; one within the land purchased by AXA Mansard In addition to Healthshare’s Association of Nigeria (FTAN), “We’re looking to build from mainland and the other on Lagos in Ikate Elegushi, Lekki, along management role, Healthshare’s noted that hoteliers in Osogbo the ground up because the as- Island, serving as feeders, from the Lagos/Epe Expressway, La- parent company, EOH Holding and tour operators are working sets do not exist,” Vettivetpillai its partners, the International gos State. The land was a por- Ltd will invest equity for a five hard to meet the accommodation told Reuters on the side-line of Finance Corporation (IFC) and tion of Bela Vista Estate, which percent stake in the company. target in this year’s edition of the the World Economic Forum on Africa Capital Alliance (ACA). is classified as commercial land. EOH Holding Ltd is a major UNESCO recognised event, as Africa in Rwanda, recently. The proposed IFC financing The clinics will be designed and South African business and tech- over 6,000 Nigerian and African Vettivetpillai further said that, is a US$8.2m equity investment built on either procured land or nology solution provider. Diaspora are expected. Friday 23 June 2017 5 6 BUSINESS DAY C002D5556 Friday 23 June 2017 NEWS Despite cash crunch, Senate plans to create over 80 new federal agencies

OWEDE AGBAJILEKE, ABUJA According to the Abandoned (Est, etc.) Bill, Forestry Research Projects Audit Commission set Institute of Nigeria (Est, etc.) Bill and Institute of Nigeria Air Force t a time Nigeria is battling up by former President Goodluck Jonathan, an estimated 11,886 Technology Bill. severe cash crunch to fund Others are: Nigerians in Di- development and pull it- Federal Government capital A projects have been abandoned aspora Commission (Estab- self out of recession, as well as a lishment) Bill, National Post- bloated recurrent spending, the in over four decades across the country. graduate College of Medical Senate is planning to establish Laboratory Science Bill, Nigeria over 80 additional federal agen- Some of the proposed agen- cies at various stages of legislation Institute of Soil Science (Es- cies, commissions and institutes. tablishment, etc.) Bill, Defence If passed and signed into law, in the eighth Senate, according to investigation include: Senior Space Agency (Establishment, this will increase the number of etc) Bill, Federal Capital Territory federal agencies, departments, Citizens Centre Bill, Complimen- tary and Alternative Medicine Hospitals Management Board commissions and institutes in (Establishment,etc) Bill, Char- Nigeria to 624 from 541 presently. Practice Regulatory Council of Nigeria (Est., etc) Bill, Chartered tered Institute of Human Capital BusinessDay learns that while Development of Nigeria Bill, most of the proposed agencies are Institute of Project Manage- ment of Nigeria (Establishment) Chattered Institute of Export and at various stages of legislation at the Commodity Brokers of Nigeria upper legislative chamber, a few Bill, Environmental Managers Registration Council of Nigeria Bill, Chattered Institute of Public others have passed Third Reading Management of Nigeria Bill, awaiting concurrence from the (Establishment) Bill, National Poverty Eradication Commission National Commission for Peace, House of Representatives. Reconciliation(Establishment There are also concerns over (Est, etc.,) Bill, North East Devel- opment Commission (NEDC) etc) Bill and Chattered Institute duplication of functions by some of Project Managers of Nigeria existing federal agencies, as about (Establishment) Bill, Chartered Institute of Public Management (Establishment etc) Bill, and N2.987 trillion of N7.4 trillion numerous others. 2017 national budget is allocated of Nigeria, Chartered Institute of Financial and Investment Analysts have wondered why to 541 federal agencies, depart- the Federal Government should ments, commissions, institutes Analyst of Nigeria (Est, etc.) Bill, National Child Protection and fund these agencies, some of and other bodies. which are professional bodies, at Only 30 percent of the budget Enforcement Agency Bill, Nige- rian Peace Corps (Est, etc.) Bill, a time most Nigerians are strug- (N2.177trn) is allocated to capital gling to even feed themselves. expenditure. Nigerian Institute of Social Work Political class, not ethnicity, greatest threat to Nigeria - NLC … says good governance panacea to ethnic agitations themselves and their children “These persistent hot ex- JOSHUA BASSEY thereby depriving us of decent changes and attacks tend to living and inflicting on us a scarred threaten the very foundation and rganised labour under the collective psychology that is pre- integrity of our sovereignty and aegis of Nigeria Labour dominantly negative, hostile and unity; and therefore do not repre- OCongress (NLC) has sub- unproductive. sent the true feelings of patriotic mitted that the political class and “We therefore call on all com- Nigerians for one another. not ethnicity constitutes the great- mitted patriots, young and old, to “Rather, they symbolise the est threat to Nigeria’s existence as join the struggle against the myriad intensity of greed, the implacable one indivisible entity. of social and economic injustices arrogance and desperation of the The congress also posited that occasioned the deprivations, elites, some of whom have been that only good governance could which have set our people in dan- funding or sponsoring the hate end the continued ethnic agita- gerous agitations against one anoth- campaigns that can only lead tions and cries of marginalisation er in the social, print and electronic to the disintegration of our dear across ethnic divides, just as it media,” said Wabba. nation. We speak out today as a urged youths and those fanning The NLC, however, cautioned pan-Nigeria organisation that the embers of war to sheath their against the resort to war monger- believes in the sovereignty and swords and embrace one Nigeria. ing and jingoism by agitating indissolubility of one Nigeria,” The congress’ position was youths across ethnic divides, he said. declared by Ayuba Wabba, presi- warning that it was an ill wind According to Wabba, physi- dent, NLC, at a news conference that would blow no one any good. cal conflict will hurt everyone on the state of the nation, in Abuja, “You have been witnesses to especially workers, pensioners on Thursday. the degeneration of the national and their families who will be “Our common enemy, and conversation into threats and the most direct and immediate whom we must all resolve to counter-threats; of pulling down casualties of any war, stressing face, remains the corrupt politi- the federation by disparate and that dialogue remains the most cal class, who instead of utilising desperate forces, all of which tested and result-oriented form the God-endowed wealth of were conveyed in vile and base of conflict resolution mechanism our nation, choose to loot it for language. and should be given full rein. Developers condemn lack of professionalism leading to building collapse … task government on National Building Code Furthermore, any developer, developers to stick strictly to the CHUKA UROKO builder or landlord who is associ- right quantity and quality of build- ated with any of these collapsed ing materials. evelopers under the aegis building should be sanctioned and “The construction and de- of Real Estate Develop- punished accordingly by the gov- velopment business is a serious Ders Association of Nigeria ernment,” Taiwo Ogunbodede, the business and as such the appro- (REDAN), South West Zone, has association’s zonal chairman, said. priate human resources should condemned the action or inaction, Ogunbodede tasked the be deployed. Only professionals negligence, lack of professional- government on coming up with and certified engineers should be ism, etc, that have led to the series a National Building Code that contracted in any building proj- of building collapse incidents in should regulate the conduct and ects,” he said. Nigeria. operations of professionals and He added, “To avoid future col- The country has, in the last six stakeholders in the construction lapse of buildings, we strongly ad- months, witnessed several cases industry. vise that quacks and non-building of building collapse with Lagos “It is believed that the absence professionals should not be used leading the pack having recorded of a National Building Code has in building projects. Contractors about six collapse cases in the last been responsible for the reoccur- should ensure constant and ad- three months. rence of building collapse and equate education and profes- REDAN, in a statement in passing the code into law will sional development of its members Lagos recently, disassociated itself regulate and stop the use of non- which will help them upgrade their from all buildings or develop- professionals and quacks in the skills and knowledge.” ments involved in the collapse and building and construction indus- He advised further that build- advised the government to ensure try,” he reasoned. ing contractors should ensure that that a close and strict monitoring He also advised builders and their designs are reviewed and ap- of all ongoing projects in the state developers to adhere strictly to proved by the appropriate authori- was ensured. rules and norms in development ties before commencing any major “We want to state, for the re- process such as use of quality building project. This is because so cord, that none of our members building materials. He noted that many developers and contractors is involved directly or indirectly one of the major causes of building don’t engage the services of quali- in any of these collapse incidents. collapse is the failure of builders or fied building engineers. Friday 23 June 2017 C002D5556 BUSINESS DAY 7 NEWS Experts say firm govt action needed to mitigate downward crude pricing OLUSOLA BELLO & ISAAC ANYAOGU … as Goldman Sachs advises on lower oil taxes to compete with shale producers Nigeria to lower oil production an annual review of the world’s il and gas in- for their crude oil Wumi Ilebare, a professor West African countries. taxes to remain competitive top energy assets, obtained by Their advice is coming on of energy economics, who He said government must dustry operators in a world where shale pro- BusinessDay. have advised the the heels of the alarm raised is also chairman of the local begin to look at oil not from ducers with 50 percent of The operators say one of by Fereidun Fesharaki, chair- branch of IAEE, told Busi- the revenue generation per- Federal Govern- their projects now short-cycle, the steps that government can ment to start man of consultants FGE, at nessDay that private inves- spective, but for power to drive marked by lower costs and take to mitigate against such the International Association tors should be encouraged the economy. “As I have said Otaking steps to mitigate the fallen break-even costs have adverse effects, is to begin to of Energy Economics (IAEE) to establish refineries, which oftentimes, you get far more adverse effects of a possible ramped production by 190 encourage local refining of downward slide in the price conference, that the price of would refine the crude lo- from oil as source of energy to billion barrels in 17 years. crude oil, rather than focus- the crude oil could slide to $30 cally and then be sent to the drive the economy, than as a of crude oil to about $30 per Shale producers are up- ing on exports. They further barrel next year, on account a barrel by early next year and international market. “There source of direct revenue. setting the global oil market say that if the crude is refined would remain so for two years. should be domestic refineries The final destination of of likely over-supply into the order with speed to market locally, then the country can global market. “The price of oil could fall dedicated primarily to domes- crude oil is the refinery, which advantages and outstanding begin to export the refined to $30/b next year and stay at tic market for energy security we have only 445mbbl/d refin- The price of Brent crude, production volumes expected products, thereby creating the equivalent of Nigeria’s that level for about two years,” purpose and economic output ery capacity leaves much to to peak at 13 million barrels jobs and earning foreign ex- Fesharaki said, but however expansion,” Ilebare said. be desired. The way to go is to Bonny light crude, was $46.21 per day by 2030. Break-even change. as of Wednesday said new supply would out- He however said that there expand Nigeria’s capacity and costs are now at $54 from $90 The danger of having over- strip demand growth in 2018, was no solution in the short focus more on export of excess This is even as Goldman per barrel five years ago, ac- supply in the world market, Sachs, a leading global in- leading to lower prices, if run, beyond export outlet di- petroleum products, rather cording to a Goldman Sachs they say, is that indigenous oil OPEC fails to deepen its cuts. versification that should target than crude”, he said. vestment firm, has called on top projects report, which is operators may not find market Naira stabilises as investors cheer Nigeria currency shift, want more

HOPE MOSES-ASHIKE with agency report counter the effects of the 2014 oil price crash, Reuters report. he naira on Thursday These will take years to un- maintained stability across wind, some analysts fear, while Tforeign exchange market others are concerned the new as Nigeria’s recent tentative steps trading facility could come under to free up its currency, particu- pressure if oil prices were to take larly via a new trading window, another tumble, or trade through have gone down well with some it could slow if Nigeria’s currency adventurous stock and bond reserves run low. investors who are cautiously The much-criticised move returning to the markets they fled starved the economy of dollars, two years ago. throttled foreign investment and Naira gained N2.86k to close plunged Africa’s largest economy at N363.00k per dollar on Thurs- into recession for the first time in day at the investors and exporters more than 25 years. window. This is 0.78 percent But authorities have since higher than N365.86k quoted tried to normalise the currency the previous day according to the market and alleviate dollar short- data from the FMDQ. ages, most recently via the “Inves- The local currency closed sta- tors & Exporters FX Window”, ble at the inter-bank spot foreign which allows investors and trad- exchange market at N305.85k, ers to swap nairas for dollars at while it closed at between N365 market-determined rates. and N367 per dollar at the black The new window adds to a market. confusing array of exchange rates. Once considered one of the But it does seem to be succeeding most promising emerging mar- in luring back some foreign funds, kets, Nigeria was hammered especially as the economy should L-R: Victor Aghahowa, zonal head, North Central zone, Stanbic IBTC; Usman Mohammed, chief executive officer, Mecon Nigeria Limited, when it introduced draconian return to growth soon and infla- and Babatunde Macaulay, executive director, Stanbic IBTC Bank Plc, during the Stanbic IBTC Bank Platinum Banking Exclusive Dinner, foreign exchange restrictions to tion is finally slowing. Themed; Helping You Stay Ahead ‘ in Abuja. CCA showcases African businesses in Washington DC Airline operators call for clear policy to grow orporate Council on dress, encouraging US-Africa ties and potential that exist in Africa (CCA) convened bilateral trade agreements. Mozambique to diversify their aviation, make Nigeria hub Cmore than 800 govern- “The critical question that interventions.” ment and business leaders decision makers in Africa, in- Akinwumi Adesina also Nigeria is not a hub for aviation without safety or have a safe for its 11th Biennial US-Africa cluding many of you, must ask emphasised the importance IFEOMA OKEKE Business Summit hosted in is this: As these upward growth of US-Africa partnerships. Ad- activities on the African con- airline without profit.” Washington DC from June 13- trends continue, with what esina pushed for the US-Africa irline Operators of Nige- tinent. He said some of the major 16, 2017. types of partners do you want business relationship to go ria (AON) has called on Meggison also noted, issues that need to be addressed The 2017 summit focused to collaborate?” said Sec. Ross beyond trade, to investment. the Federal Government “Following the air crashes of to grow the sector include, the on the “US Stake in Africa” and during his keynote remarks, “Africa offers you all ‘The Deal A to come up with a deliberate 2005/06, the Federal Govern- removal of Value Added Tax aimed to shape and promote “I believe that, the more Afri- of the Century’, and America ment came up with a deliberate (VAT), as domestic airlines were effective US-Africa trade and can nations partner with U.S. should not be left behind,” said economic policy to help grow investment policies under the businesses, the better off both Adesina. the aviation subsector of the policy to ensure air safety in the only mode of transport pay- Trump administration. Wilbur the United States and Africa “Think of a continent where economy. Nigeria. As fallout of that sin- ing VAT, the review of 5 percent Ross, US Secretary of Com- will be.” household expenditures will Sequel to a visit by airline gular action, today Nigeria has Ticket Sales Charge (TSC) to a merce, President Filipe Nyusi of Ross stressed the impor- rise to $1.4 trillion in the next chief executives to Yemi Osin- had an excellent safety record flat rate (in line with the global Mozambique, and Akinwunmi tance of bilateral trade agree- three years. Think of the conti- bajo, the acting President, Nogie of 93% between 2006 and 2017. best practices), and the har- Adesina, president of the Afri- ments over larger multilat- nent where business-to-busi- The country also secured the monisation of over 35 Multiple can Development Bank (AfDB), eral agreements and the Trump ness investments will rise to Meggison, the AON chairman, were some of the high-level administration’s stance on $3.5 trillion in the next eight said, “There is an urgent need Category 1 Status and most of Charges, which add huge bur- public sector participants who compliance with eligibility years. Think of the continent for a deliberate economic policy the scheduled airlines are cur- dens on airlines. advocated for greater US-Africa requirements for agreements where the population by 2050 that will eliminate the many rently IOSA certified as a strong Others, he mentioned, are trade and investment. such as AGOA. will be the same as India and challenges that adversely affect testimony of the country’s com- poor navigational and landing CCA hosted a prelude to Other speakers including China taken together today. the sector in a bid to guarantee mitment to air safety. aids that limit operations to day- the 2017 US-Africa Business President Filipe Nyusi called Think of the continent that will “Safety and economic policy light operation for most airports Summit in Washington, DC for greater U.S. investment and brim with huge demand from a survival of domestic airlines in on June 13 on Capitol Hill with partnership in and with Africa, rising youth population that will the country and to make Nigeria go hand-in-hand. Where there (Nigerian airlines fly an average a Congressional Dialogue on but President Nyusi stressed reach 840 million by 2050, all the hub for Africa.” is no financial profit for airlines of only five hours as against the Africa, which featured House the need for diverse investors buying and owning consumer According to Meggison, Ni- safety would be compromised. average of 10 hours worldwide Foreign Affairs Committee in industries such as tourism products.” geria has huge potentials as a A clear economic policy for the per airplane), high cost and Chairman Ed Royce and Rank- and agribusiness. “It easier to As the leading US business country blessed with a natural survival of domestic airlines is epileptic supply of JetA1; obso- ing Member of the House For- enumerate what is not grown in association solely focused on very critical at this time, which lete infrastructure that hampers eign Affairs Subcommittee on my country rather than list what U.S.-Africa trade and invest- God-given geographic location Africa Karen Bass. is produced. Mozambique can ment, the sessions at CCA’s at the centre of Africa (4.30hrs to has resulted over the years in the ease of doing business and Jeffrey Sturchio, CCA’s chair- almost grow everything,” said biennial signature event - the most parts of Africa); with most the death of over 25 airlines in lack of consultations with air- man of the Board and CEO of President Nyusi. U.S.-Africa Business Summit of its airport at approximately 30 years. Safety and Financial lines before introduction of new Rabin Martin, officially opened “We urge and encourage - primarily featured private sea level, being the sixth largest Economic Policy must go hand- charges and policies among and welcomed participants the American business people sector solutions and how public producer of crude oil (JetA1), a in-hand; as airline investors are others, which throws off the to the summit on June 14. US to take advantage of the en- sector actors could support in the business of aviation for feasibility studies of airlines out Secretary of Commerce Wilbur abling business environment, business through an enabling human population of 190 mil- Ross delivered the keynote ad- and investment opportuni- environment. lion, and skilled manpower, yet the profit and can’t make profit the window. 8 Friday 23 June 2017 Friday 23 June 2017 9 10 BUSINESS DAY C002D5556 Friday 23 June 2017 comment is free COMMENT Send 800word comments to [email protected] Executive order: First things first The Executive Order signed While the Executive Order is the rich soil in which corrup- The Acting President will by the Acting President in tion flourishes. Government sure be shocked at the horren- May to ensure prompt cargo is good, its workability lies agencies fall head over heels dous experiences commuters clearance at the Lagos Port in the ability of govern- to be at the port and partake in and truckers contend with daily Complex Apapa and reduce cargo clearance because of the on the severely damaged Ijora- the cost of doing business in ment to urgently address illegitimate financial benefits Wharf and Appa-Oshodi roads. BOLAJI AKINOLA the country, shows Professor the three major issues they derive from the process. The way out? Government Bolaji Akinola, a maritime analyst, Osinbajo, unlike many other highlighted above. Every- Past studies estimate an aver- should implement the Apapa writes from Lagos. Nigerian leaders, possesses a age of 70 signatures on one regeneration plan, which is he zeal and energy working knowledge and good thing else will fall in place clearing document. Each of the expected to gulp a mere N110 with which Nige- understanding of the impor- afterwards. signatures costs money. Once billion. ria’s Acting Presi- tance of the nation’s seaports automation is in place, govern- ‘Mere’ because it is on re- dent, Professor Yemi to the economic well being ment agencies will fizzle out of cord that government realizes Osinbajo, is working of the people. I’m looking have functional scanners at the the port once they realize it is something in the region of two Tand tackling national issues forward to seeing the kind of ports, which means it carries no longer lucrative. billion naira daily through pay- should not come as a surprise genuine and sustainable re- out physical inspection of every The daily order and counter- ment of Customs duties, Nige- to anyone. I’ve always been form he carried out in the La- container arriving or leaving the order sacking and reinstating rian Ports Authority charges awed by how any one person gos judiciary when he served port. This is not only archaic; government agencies at the and dues, Nigerian Maritime could rise to the peak of his as the state’s Commissioner it is backward, expensive and port is unnecessary dissipation Administration and Safety profession, his career and his of Justice from 1999 to 2007, shameful. First is to flood the of energy; simply take away the Agency (NIMASA) levy and religious calling. In academics, replicated in all economic and ports with modern scanners sugar, the ants will disappear. various other taxes and levies he rose to become a professor, governmental sectors at the so that less than 10 per cent of Third is the parlous state of paid by operators. Government which is the summit of schol- national level. imported cargoes are manually the roads in Apapa. should therefore not have any arship; as a lawyer, he rose to Well intentioned as it is, I inspected as it happens in the No matter how strong an issue spending a mere fraction the enviable rank of Senior believe the Executive Order developed ports we glowingly Executive Order is; it will not of its earnings from the nation’s Advocate of Nigeria and as will not produce the desired allude to. At present, manual ease the time and cost of do- gateways to keep its cash cow Annan is the former secretary- a Christian, he pastors a big until certain infrastructural inspection is 100 per cent. One ing business at the port if the alive. general of the United Nations and a branch of the Redeemed Chris- gaps are addressed. is not aware of any port in the roads that lead into and out of While the Executive Order recipient of the Nobel Peace Prize. tian Church of God. For one, how will anyone world where this is done. Apapa are not repaired. Per- is good, its workability lies in Osinbajo is a genius of our be able to clear cargo at the Second, stakeholders have haps His Excellency the Acting the ability of government to time. Just listening to him talk nation’s seaports when the severally drawn government’s President should visit Apapa urgently address the three ma- will leave even the most devi- operations of Nigeria Customs attention to the need for auto- unannounced some day. If he jor issues highlighted above. ous of his critics in admira- Service, which is the principal mation of Customs processes. announces the visit, cosmetic Everything else will fall in place tion. He knows what to say at government agency at the Government must put an end to measures will be put in place afterwards. the right time. His words are port and which is responsible the hand carrying of documents to clear the mess before his ar- always soothing and his steps for clearing cargo, are largely by its officials from one desk to rival and he won’t see the true Send reactions to: ever so sure. manual? Customs does not the other. It is not efficient and it picture. [email protected] Can you lead effectively in Africa? ship skills against these five ideals. they have to plan their own days Such commitment is usually justi- trust. They want to know that the and set agendas for meeting annual fied by expectations of great con- would-be leader is truthful, ethical The visionary leader performance targets, but they also sequences. The assumption is that and principled. According to Manning and have to do the same with each of the great actions that produce great The benefits of honesty cannot Robertson (2002) the ‘’visionary’’ their direct reports. Additionally, they changes in the world are sustained be overstated. For Ian Foo, working model of leadership asserts that participate in planning at the strategic by a belief in their effectiveness. as a consultant with Accenture in the key function of leadership is to business unit, division and corporate A leader who has already tasted Australia, the importance of honesty communicate a compelling vision, level. And they’ve been inundated success is willing to take more risks and trust was demonstrated in the or picture of where the organisa- with tools with which to make those and make more daring decisions. way his most admired leader kept tion is going. By having a clear plans – from daily activity-planning A culture of success stimulates a his word: ‘’Being honest means that GLORY ENYINNAYA and attractive picture of the future, books to electronic Palm Pilots. No culture of exaggerated beliefs in if you make promises to people you Glory Enyinnaya is a change management people transform thought into wonder managers complain of hav- capabilities, and thus an inclination never break them. You are only as consultant and researcher. reality and intention into action. ing to spend too much time planning, toward risk taking. good as your word: If you cannot de- They are energised or empowered with few moments left over to do the Within a consequential logic, liver, do not offer your word.’’ Hon- eadership is one of the most because they have a sense of pur- actual work. where action is motivated by hope esty earns the respect of others and important skills required in pose or direction, combined with With all of this planning frenzy, of favorable consequences, faith in fosters their confidence that leaders business. At the entry-level, an enhanced belief in their ability what new information or tools could these potential consequences has can be trusted to follow through on the young manager needs to achieve their purpose. possibly be of use? Studies of people to be effectively maintained (‘’you their commitments. Lleadership skills to effectively ex- who have improved their emotional CAN make a difference’’) even if The humorous leader The vision itself need not ac- ecute business strategy. At the mid tually come from the leader, al- intelligence reveal several key points this means ignoring the lessons of According to Baldoni (2009), to senior management level, the though he or she is likely to play about what works and what doesn’t. experience and intelligence. It is just as no-one is above the law, middle manager needs leadership a crucial part in formulating and Although some may seem obvious also possible, however, to under- no-one should be above using hu- skills to grow the business success- communicating the vision. The – even common sense – they are take great actions outside a logic of mor in communications. Humor is fully and achieve business goals. actual source of the vision is what not common practice. The findings consequences. An individual can the great leveler; it brings out the At the top management level, the Kanter (1983) has called “kaleido- include the following: be motivated by his or her faith in humanity in all of us. While differ- chief executive needs leadership scope thinking”, drawing together •Goals should build on one’s God (like Joan of Arc) or in the forces ent cultures find different things skills to transform his business and fragments of ideas from a range strengths, not on one’s weaknesses of history or by irrational causes. funny, the single unifying factor is a take it to the next level nationally or of sources. This is based upon a •Goals must be a person’s own Regardless of one’s motivation, desire to laugh. An appreciation of internationally. profound understanding of the – not goals that someone else has commitment is a sine qua non for humor is essential to leadership and While there have been many relationship between the organisa- imposed effective leadership. should be encouraged in the work- books written on leadership in the tion and its environment, as well as •Plans should flexibly allow peo- The honest leader place. Humor in communications West, academia has only recently receptivity to ideas of all interested ple to prepare for the future in dif- According to Kouzes and Posner of leaders can support leadership begun to conduct an empirical parties. ferent ways – a single ‘’planning’’ (2011), in virtually every survey they intentions. It can help build stronger study into the concepts of leader- The “visionary” model of lead- method imposed by an organization have conducted, honesty is selected relationships among people, as well ship in Africa. In 2014, an explorato- ership looks beyond the leader’s will often prove counterproductive more often than any other leader- as help people get along better and, ry study considered an African per- role in communicating a compel- •Plans must be feasible, with ship characteristic. No matter where as a result, get things done. spective on leadership behaviour ling vision and being tuned into manageable steps: Plans that don’t the studies have been conducted – •This article was written by Glory and motivation in Ghana, Egypt, the wider source of such a vision. It fit smoothly into a person’s life and regardless of country, geographical Enyinnaya for the Christopher Kenya, Nigeria, and Uganda with draws upon other theories of lead- work will likely be dropped within a region, or type of organization – the Kolade Centre for Research in a small sample of corporate, com- ership and organisational change, few weeks or months most important leadership attribute Leadership and Ethics (CRLE) at munity, and religious leaders. The highlighting issues at the macro, •Plans that do not suit a person’s has always been honesty. Lagos Business School and edited findings indicated that vision, com- interpersonal and personal level. learning style will prove demotivating Honesty is absolutely essential by Ogechi Obiorah. CRLE’s vision is mitment, honesty, goal-orientation, The goal-oriented leader and quickly lose his attention to leadership. If people are going to creating and sharing knowledge that and humour were descriptors of According to Goleman, Boy- The committed leader follow someone willingly, whether improves the way managers lead effective leadership. In this article, atzis and McKee (2002), manag- According to March and Weil into battle or into the boardroom, and live in Africa and the World. we will provide a framework against ers are all too familiar with goal (2005), heroic leadership demands they first want to assure themselves You can contact CRLE at crle@lbs. which you can measure your leader- setting these days. Not only do great action and great commitment. that the person is worthy of their edu.ng. Friday 23 June 2017 C002D5556 BUSINESS DAY 11 comment is free COMMENT Send 800word comments to [email protected] The most valuable thing you can do as a CEO

The truth is, having employees are deeply committed workplace, your people level of to achieving their organizational commitment to winning the game committed employees who goals regardless of any circum- must be high. are ready to go the extra stance. Going by the Gallup reports Again, the most valuable thing done in more than 140 countries, (and that will also pay the most) mile for their organizations it is sad to know that worldwide, you can do as a CEO in this tough make the difficult journey only about 13% of employees are economy is to urgently and delib- deeply committed and engaged in erately pay attention on how you ased on my expe- ing their organization achieve its easy. These people are their workplace. Something urgent can build the Commitment level rience working and goals regardless of any situation. motivated to be their best needs to be done. of your players (employees) to be interacting with CEOs Worst than recession again - are The truth is, having committed able to win the game in this tur- in the heat of turbulent people who believe that they are regardless of any employees who are ready to go bulent weather. Your employees’ times, I have come to not cut out to “go the extra mile” circumstance the extra mile for their organiza- abilities, skills, experiences and Brealize a big challenge that if not for their organization especially tions make the difficult journey expertise could become dormant tackled has the capacity to bring now that they are needed the easy. These people are motivated if they decide not to be committed down any organization to its knees most. This unfounded belief stem to be their best regardless of any to achieving the desired results. So desired results, will be struggling regardless of the strategies or from the fact that most people are circumstance. They also like focus- this is the time to focus more on and will ultimately be consumed by breakthrough thinking adopted. not psychologically attached to ing more on the things within their people’s commitment than skills. the troubled waters. Worst still, this challenge is being the “welfare” of their organization control as opposed to focusing on Remember your greatest com- So, as a CEO, a defining question accentuated now that organiza- – and are much after what comes the things that are not within their petitive advantage that cannot be you would need to ask is “in this pre- tions are passing through trouble to them. control. This is why most employ- taken away from you no matter sent economic turmoil, what is the waters. Ignoring or making light Beyond doubt, whatever result, ees make so many excuses during how tough the economy is “having most valuable thing I can do in my of this challenge could be to any whatever difference any organiza- hard times, but the committed employees who are psychologi- company?” Some CEOs I have come CEO’s peril. tion would like to make in these ones are usually eager to do all cally committed and who can go in contact with have said things like: Now, what is this big challenge? tough times, whatever growth any they can to ensure a difference is the extra mile to ensure that your set new strategic direction, overhaul It is simply “having employees organization would anticipate will made – no matter how little. organization not only survives but strategic and operating plans, re- who are not deeply committed in never come magically, but will As a CEO, please don’t lose thrives in every situation. duce operating expenses, increase their work place and who don’t only come through and by the sight of the fact that much like Feel free and share your profitability, increase brand aware- care how their organization can people (employees). So what hap- a football coach, providing the thoughts, comments or questions ness etc. To me, I believe the most thrive even in the troubled waters”. pens if the people an organization court, the ball and the players are with me. valuable thing any CEO can do in Shockingly, worst than economic has are not deeply committed to no enough to win the game even his or her organization in the heat of uncertainties are employees who their company success? That or- with the right skills. To win the Send reactions to: these tough times is to ensure that are not deeply committed to help- ganization will never achieve its game both in the field and in the [email protected]

TIJAH BOLTON AKPAN Bolton-Akpan is Head of Programmes at Akwa Ibom state: Fiscal reality check Policy Alert, Uyo. He tweets @Tijahbolt]

n his inaugural address on of citizens. tutionalize transparency and ac- ency. Unfortunately, in his anniver- May 29, 2015, Governor As we mark the second year of countability in the management of One solid milestone the state sary address, the governor missed Udom Emmanuel of Akwa the Emmanuel administration, the state’s resources, chiefly among has recorded in this area is that an important opportunity to Ibom State made an une- the question for us at Policy Alert them the Fiscal Responsibility Law the government has finally started report back to his people on how Iquivocal commitment to running would naturally be: what have and the Public Procurement Law. putting its budget online after a the government was managing a transparent and accountable ad- been the spending priorities of These laws are needed to ensure lot of the people’s resources in the past ministration. Seven months later, the Akwa Ibom State Government that public budgeting, spending push by budget advocates. two years. Apart from mention- exactly the same words used in the and has the current administra- and procurement are no longer Akwa Ibom State becomes the sec- ing that 600 million was naira inaugural address were employed tion been sufficiently open and treated as matters of Executive dis- ond state in the Niger Delta after spent on WAEC fees for indigent in the 2016 budget speech to reit- accountable in line with the fore- cretion as is currently the case but Delta State to publish its budget secondary school students and erate his commitment to “ensur- going commitments? are guided by laws with appropriate online. However effort should reminding listeners that “our ing accountability and transpar- This piece will look at three sanctions. Drafts of both executive be made to ensure that this hap- exchange rate had gone from the ency in government by fighting indices of fiscal governance. First, bills have been ready before the pens early enough in the budget budgeted 195 Naira to a dollar to and tackling corruption in all let’s look at the government’s governor but, for whatever reason, cycle so as not to defeat one of the over 500 Naira to a dollar for the facets of [his] administration.” In spending priorities as seen from there have been delays in purposes of transparency, which most part of 2016”, the governor’s the same budget speech, Gover- Governor Emmanuel’s two budg- pushing the bills to the House. In is to ensure real time tracking by second anniversary speech made nor Emmanuel states as part of the ets. It is highly commendable that the case of the Fiscal Responsibility citizens. Also, in the past two years no other reference to government budget implementation strategies the current administration has Bill, it had to be re-introduced as a we have not seen much action in spending or any other fiscal data. that his administration will “build continued with the trend of pri- private member bill in the House of terms of fiscal accountability. For Of course no one is wishing that a strong fiscal regime” and work oritizing capital spending which Assembly for some progress to be instance, quarterly and annual the speech for that cheery occa- towards “the elimination of wast- saw an all time high during the made. Gladly, the House has just budget implementation reports sioned should have been turned ages and leakages in [the state’s] Akpabio era. last week passed the Bill into law. At (BIRs) are not usually published into some boring account report, expenditure profile.” Again, we see The capital vote tells you how this point, the best way the execu- and the Auditor General’s report but a little more spending and rev- a commitment to strengthening seriously a government takes tive can prove its good faith toward is only available to the House enue data in summary would have the administration’s fiscal gov- development, especially in this the Bill is for the governor to give it Public Accounts Committee, been quite apposite! Needless to ernance mechanisms! As if that period of recession when several its assent without delay. As the Fis- whereas this should be a pub- say, for a state that prides itself in wasn’t enough, the 2017 Budget governments are struggling even cal Responsibility Bill does not work licly available document. Citizens the professional background of its Speech, uses the self-same words, to pay salaries. In Governor Em- in isolation, it would be very helpful have a right to know how their Chief Executive, and for a governor perhaps to further drive home the manuel’s first budget in 2016, to the institutional environment if resources, held in trust for them who has so expressly and repeat- aforementioned commitment. capital expenditure took 57.4 the Public Procurement Bill comes by the government, are being edly committed to transparency From the above, it doesn’t take percent of the total outlay and this before the House for deliberation managed and one of the things and accountability, this must have a policy wonk to conclude that year again we saw over 51 percent very soon. Enactment of a pro- citizens would love to see during been a big letdown on his fans. the Udom Emmanuel adminis- of the total budget appropriated to curement law will ensure fairness, this second year anniversary is The good news here is that the tration does not intend to trifle capital items. competition, transparency, local a mid-term business report for state is making slow but steady with issues of fiscal openness and However, it must be stated that content protection and efficiency the state. In the last one week progress on the fiscal governance accountability. An encouraging the cost of government remains in the state’s public contracting or so, we have seen beautiful front. The bad is that in today’s take-off, you would say! Now, let’s rather high and there have to be system. It must also be noted the pictures and stories of progress world, the slow and steady no do a quick run between two years serious haircuts in this area in biggest corruption in the public sec- over the last two years. This an- longer win the race. Only the fast, of warm words and the reality on subsequent years. My second tor happens through corruption; so niversary ‘narrative report’ will innovative, and maybe the disrup- the ground. This columnist works index is institutional reforms. what better way to eliminate “wast- be incomplete without a state- tive, do! for a non-profit that focuses, For years now, civil society in the ages and leakages”? ment of accounts to compliment among other things, on improving state has been pushing for the Finally, let’s look at the issue of it. Anything short of this begs the Send reactions to: fiscal governance for the benefit enactment of laws that will insti- budget and expenditure transpar- standard. [email protected] 12 BUSINESS DAY C002D5556 Friday 23 June 2017 EDITORIAL

PUBLISHER/CEO Frank Aigbogun Whistle blowing on energy thieves ecently, the min- said that the sum of N375.8 mil- erate far in excess of the revenue Another challenge presented EDITOR-IN-CHIEF Prof. Onwuchekwa Jemie ister of power, lion has been paid to 20 provid- they would have generated from in the application of the whistle- works and hous- ers of information under the customers with pre-paid metres. blower policy in the energy EDITOR ing, Babatunde Whistleblower Policy. Accord- A comparison of the estimated sector is what compensation Anthony Osae-Brown Fashola, called ing to Salisu Dambatta, director bills received by customers with system would be most effective. on Nigerians to extend the of Information, the payment customers with pre-paid metres Whistle blowing in Nigeria is DEPUTY EDITOR R John Osadolor, Abuja whistle blowing policy of the was related to the recovery of show that those without metres seeing a modicum of success federal government to the N11.6 billion. Dambatta said the pay as much as five times what because there is a huge incentive NEWS EDITOR energy sector by exposing payment was only for recovered those with metres pay. of almost 5 percent for any dis- Bill Okonedo electricity consumers within assets that had been declared This removes incentives for closure that yields to recovery their neighborhood, who con- free of legal disputes or litigation many customers to reveal to the of stolen assets. It is not clear EXECUTIVE DIRECTOR, sume power illegally. He said by the Attorney-General of the authorities the identity of those how this will be applied in the SALES AND MARKETING energy theft is unfair to about Federation and taxes have been who consume power illegally. A power sector. Kola Garuba six million Nigerian who pay removed before final payments recent raid carried out in high- Nigerians’ willingness to self- EXECUTIVE DIRECTOR, OPERATIONS their bills to keep the lights to beneficiaries. brow Lekki area of Lagos state generate power and play almost Fabian Akagha on for the illegal consumers. However, application of the showed that highly influential twice the cost of grid connected He said energy theft needs whistle-blower policy in the people were culpable in stealing power indicates that many cus- EXECUTIVE DIRECTOR, DIGITAL SERVICES to be brought under control energy sector is little more nu- power. Many of those involved in tomers would readily pay a fair Oghenevwoke Ighure while energy thieves need to anced and may not produce the the act almost see it as a way of rate for uninterrupted power. CHIEF FINANCE OFFICER be named and shamed. same result as that on corrup- punishing the Discos whose ser- Also, there are smart meters that Folashade Odusanya Obviously, this call follows tion. For one, many customers vices are woeful but who revel in can adequately calculate the the successes recorded in the are dissatisfied with the quality extorting consumers. Unless the exact power consumption. In- MANAGER, SYSTEMS & CONTROL Emeka Ifeanyi use of the policy to expose of service of currently provided Discos improve on their services stead of whipping up sentiments politically connected people by the electricity companies. and unless the power situation and setting Nigerians against HEAD OF SALES, CONFERENCES or former government offi- Worse still, most customers are improves and customers get one another, the focus of the Rerhe Idonije cials who allegedly corruptly aggrieved by the huge estimated value for what they pay, it may ministry should be to provide SUBSCRIPTIONS MANAGER enriched themselves while bills they receive. This billing be difficult to get Nigerians to prepaid meters to all consumers Patrick Ijegbai in public office. Recently, the system, termed crazy billing, is key into the whistle blowing as is standard practice all over Federal Ministry of Finance being used by the Discos to gen- policy in the power sector. the world. CIRCULATION MANAGER John Okpaire

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SUBSCRIPTIONS 01-2799101 MISSION OUR CORE VALUES 07032496069 STATEMENT BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, 07054563299 Entrepreneurial and Purpose-Driven. To be a diversified • The Fourth Estate: We take pride in being guarantors of liberal economic thought www.businessdayonline.com provider of superior The Brook, business, financial and • Credible: We believe in the principle of being objective, fair and fact-based 6 Point Road, GRA, Apapa, management intelligence • Independent: Our quest for liberal economic thought means that we are independent of private and public interests. Lagos, Nigeria. across platforms acces- • Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do 01-2799100 sible to our customers • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share LEGAL ADVISERS anywhere in the world. our vision, while treating them with respect and fairness. The Law Union www.businessdayonline.com Friday 23 June 2017 C002D5556 BUSINESS DAY 13 StarTimes committed to COMPANIES quality sports content & MARKETS says marketing director COMPANY NEWS ANALYSIS AND INSIGHT P15 Bad loan charges hit Nigerian banks in Q1 .....Impairment charges rise 54.83% …..Analysts say write-offs to moderate

BALA AUGIE the way for oil companies and businesses to pay in- igerian larg- terest on borrowings. est banks “As the economy re- have been covers, the impairment hit by higher charges is likely to go impairment down, said Johnson Chuk- Ncharges for loans to strug- wu,” managing director gling oil and gas firms as of Cowry Assets Manage- analysts say an uptick in ment Limited. economic activities could “We are going to see result in subdued write- delinquent debtors be- offs in subsequent quar- ing worked and for that ters. reason, impairment will Impairment charge reduce,” said Chukwu. booked by the 13 largest The International Mon- listed lenders on The Nige- etary Fund forecasts that rian Stock Exchange (NSE) Nigeria’s economy will spiked by N33.83 billion to expand by 0.8 per cent this N96.27 billion as at March year compared to 1.6 per 2017, from N62.39 billion cent contraction in 2016. the previous year. Royal Dutch Shell has Loan loss expense surge resumed crude oil export 125.56 per cent to deal a from its Nigeria’s Forcados hash blow on First Bank as terminal after production net income dropped 22.36 was frustrated by inces- per cent to N16.88 billion. sant militant attacks on The lender’s Non Per- oil facilities. forming Loans (NPLs) of This means oil com- 26.50 per cent, which is one panies will make more of the highest in the indus- money to regain capac- try, exceeds the 5.0 per cent ity repay bank loans and regulatory threshold. reduce their gearing level. Zenith Bank’s impair- “I see an improvement ment charge surged 206 in 2017 because of in- per cent; Access Bank in- creased yields and there- creased by 33.30 per cent; fore interest income on GTBank rose by 12.62 per Companies Financials; BusinessDay Analysis assets will increased,” said cent; UBA spiked 488.80 Ayodeji Ebo, Managing per cent. Director of Afrinvest Se- Nigerian banks are op- 14 per cent as at the end marginally to between restructurings, and the that the possible uptick curities Limited. erating in a volatile op- of 2016. 14 per cent and 16 per strengthening economy in economic activities, “Impairment charges erating environment as Moody’s Investors Ser- cent, but should reach a take effect. fuelled by recovery in oil will remain around cur- industry NPLs stood at vice said NPLs will rise peak as write-offs, loan Analysts are betting production, could pave rent level or moderate.” OPEC seen losing role as global oil market stabiliser ...As Goldman Sachs says shale production added 190bn barrels in 17 years

ple supply chain which can between key development ISAAC ANYAOGU obtained by BusinessDay, break-evens now stabiliz- tions continue to be de- short-cycle projects now be expanded with a 12-24 areas after accounting for ing,” said the report. veloped. il cartel, OPEC, make up 50% of top proj- month lead time. inflation is about $54 un- There have been con- While, Goldman Sachs could lose its role ects, up from only 16% “This effectively ends like about $90/barrel five cerns about the influence admitted that the rest of in balancing supply in 2010, as the industry’s the industry’s great re- years ago, and shale pro- of shale producers on the industry is still lower- O source hunt in increas- ducers currently has 73 and demand in the global capital spend becomes global oil markets, but ing costs through simpli- oil market as shale produc- more cyclical and OPEC ingly complex areas and years’ worth of production, this report presented it in fication, deflation, strong ers cut costs and improve loses its role in balancing re-focuses the industry’s said the firm. its stark, scary reality. Ana- delivery and taxes, it ex- efficiencies to ramp up supply and demand. resources on development “Shale break-evens lysts say shale oil develop- pects shale to substitute production, a move which “On our estimates, shale efficiency, rather than -re fell the most through the ment is now beginning to about 50 complex giant oil is challenging the current has added 190 billion bar- source maximization.” down cycle, thanks to the displace higher-cost al- fields under development. order, a new report by lead- rels of oil resources since “The E&P industry ef- short-term nature of its ternatives including deep “We see deepwater and ing global investment firm, the start of the boom in the fectively shifts from ‘E’ to capital commitments and water exploration and the traditional developments Goldman Sachs has found. late 2000s (more than Iran ‘P’ and in doing so, redis- productivity improve- Canadian Oil Sands. Tech- becoming competitive According to the firm’s or Iraq, and only behind covers tremendous ability ments. However, costs are nological improvements again, with over half of top projects report, which Saudi Arabia or Venezu- to standardize, simplify, now normalizing, with in drilling and completing their developments sitting is an annual review of the ela) that can be developed and reduce costs.” 30% cyclical cost inflation wells are driving these below shale on the cost world’s top energy assets, through a technically sim- Current breakeven cost from the trough, and shale shifts, and new innova- curve,” the document said. 14 BUSINESS DAY C002D5556 Friday 23 June 2017 COMPANIES & MARKETS Discos say awaiting FG approval details for MDAs N40bn electricity debt he Association of Nigerian ment on the earmarked fund for Electricity Distribution the settlement of the debt. TCompany (ANED) says it “We don’t want to join issues is awaiting details of the N40 bil- with the government on this lion approved for the payment matter, what we are doing now, of electricity debts owed DisCos we are waiting for the details and by Ministries, Departments and we shall respond appropriately Agencies (MDAs). as soon as we get the full details. Sunny Oduntan ANED’s He said that the informa- executive director, said in an tion at the ANED’s disposal interview with the News Agency on the approved fund was in of Nigeria (NAN) on Wednesday piecemeal. that the details of the approved According to him, it is too fund became necessary given premature for the association to the initial claims by the DisCos. fully make its intention known The Federal Government on the approval without getting through the Ministry of Budget the details of the earmarked and National Planning at the fund for the DisCos. presentation of budget break- He said that it was wrong down earmarked N40 billion for people to misinterpret the to settle reconciled outstanding directive of NERC on payment electricity debt of Federal Gov- of electricity on estimated meth- L-R: Osagodion Ogie, secretary to Edo State Government, Kayode Pitan, managing director/CEO Bank of Industry; Godwin Obaseki, ernment institutions. odology. governor, Edo State; Betsy Obaseki, first lady, Edo State, and Tobin Jonathan, executive director corporate services and commercial, Bank The DisCos through its as- “For those who are mis- of Industry, during the visit of the management team of BoI to the Edo State governor at the Government House, Benin City, Edo State. sociation had repeatedly said leading the public saying that that it was being owed more people should stop paying bills, than N100 billion for unpaid we know what to do within the Conoil’s profit surges 23.02 % on electricity consumed by MDAs. ambit of the law. In a bid to settle the debt, “I cannot be supplying you government had initiated a my product and you are not reduced finance costs verification process of the claims paying for it.’’ and unpredictable operating made by DisCos to ascertain the When asked the possibility BALA AUGIE AND environment as devaluation genuineness of the debt. of contracting the metering proj- BUNMI BANJO of the currency and delay in President Muhammadu ect to other companies as was subsidy money continues to Buhari had also directed the full being done in other countries onoil Nigeria undermine growth. payment of all electricity debts given the huge capital required Plc.’s full year net Refusal to pay subsidy owed DisCos in the country. for metering, Oduntan said income has in- arrears by the Central Bank Oduntan said that it would that the DisCos would cross the creased by 23.02 of Nigeria (CBN) and foreign not join issues with the govern- bridge when it gets there. per cent, thanks exchange differential of $1.2 Cto a reduction in finance costs billion has hindered oil mar- as the company continues to keters from honouring obliga- Domestic investors, key to Nigeria’s record strong margins amid a tions to banks. Source: Company Financials, BMI volatile and tough operating Analysts say the big com- economic revival- NIPC environment. an overdraft due to delay in to determine how easily a com- panies in the industry can The downstream stream AKINREMI FEYISIPO, Ibadan global population, but only payment of subsidy monies pany can pay interest on its weather the storm on their 2% to global GDP and 4% of oil and gas giant’s profit after by the Federal Government outstanding debt. robust cash flows and supports he Nigerian Investment Global investment flow and tax increased by N530 million on importation/purchase of Conoil has steady dividend from their owners. Promotion Commis- Nigeria attracts 11% of global to N2.83 billion in December product, according to the com- policy. Its directors have rec- Conoil’s cash and cash sion (NIPC), says the flow according to 2015 report.” 2016 as against N2.30 billion pany’s 2016 audited financial ommended the payment of a equivalent increased by 185.83 T the previous period. Sales were statement. dividend of 310 kobo per share per cent in December 2016 country should encourage “Infrastructure is better up by 2.55 per cent to N85.02 Conoil’s ability to pay inter- on the 2016 earnings. This from N11.65 billion the previ- domestic investors to invest developed, infrastructure is billion. est on loans from banks is not translates to a pay-out of 75.83 ous year. The firm’s net mar- in various sectors of the econ- the biggest challenge that The growth in profit was impaired as interest coverage per cent while dividend yield gins, a measure of efficiency, omy instead of relying on for- many investors see as an is- due to 53.06 per cent reduction ratio of 3.3 times is lower than stood at 7.42 per cent as at close moved to 3.37 per cent in eigners to revive the economy. sue and finance, so I will like in interest expense to N1.76 the 1.50 times global standard. of trading on Wednesday. December 2016 from 2.71 per Yewande Sadiku, executive us to work together on this billion as the company booked Interest coverage ratio is used Conoil operates in a tough cent as at December 2015. secretary of the commission, summit on domestic direct said that the only way out of investment. the economic recession is for “In October, we are plan- wealthy Nigerians to invest in ning to have a program on Union Bank’s lethargy to be expunged by Atlas Mara their father’s land than any Direct Investment summit other national who does not to attract Nigerians invest in . . . Planned capital raise boosted by N16.82bn . . . Cheap valuation a major lure for UK investor know the terrain of where they Nigeria. will invest their money on. Group Managing Direc- INNOCENT UNAH billion as at June 19 2017. FBN is one of the investors that seek loans, represented by credit and UBA were valued at xxxxxx to cash in on the banks’ cheap impairments loans spiked to “Direct Domestic in- tor/Chief Executive Officer of nion Bank of Nige- and xxxxx as at the same date. valuation to maximise their N16.5 billion, 67 per cent from vestment is key to Nigeria Odu’a, Adewale Raji, frowned ria Plc (UBN), which “The bank refused to move wealth, a judgement which the 2015 levels. economic growth. We want at 40-50 percent loss of agri- Urecently announced from the old system it was used shareholders of UK investment A series of measures to raise Odu’a to develop a database cultural produce during post- plans to raise N50 billion to before the rave of new gen- firm endorse. the bank’s performance started of wealthy Nigerians on how harvest as he said that the through rights issue, will see eration banks came,” said a “Atlas Mara represents a in 2012 with the appointment of we can get them invest in company was working on its efforts stimulated with banking equity analyst in a lead- unique opportunity to invest Emeka Emuwa, the former Ci- the country,” said Sadiku at massive agricultural produc- N16.8 billion ($50mn) from ing stockbroking firm based in in many profitable banks in tibank’s chief executive officer, a meeting between the com- tion of staple which will be London-based Atlas Mara that Lagos. “The bank has a strong the region at a very attractive as the group managing director. mission and management of processed on site. currently owns 31.10 per cent (staff) union that has held the valuation,” said a major investor The bank’s new chief has since Odu’a Investment Company Raji said this will create of the Nigerian Lender. bank hostage” in Atlas Mara. “Banks are at the introduced new banking prod- Limited and Development more jobs for the teeming UBN is a first-generation Union Bank traded at 64 forefront of economic develop- ucts and innovative channels Agenda for Western Nigeria unemployed, reduce rural- Nigerian Bank which has failed per cent discount to book ment in sub-Saharan Africa.” to boost its competitive capac- (DAWN) in Ibadan, the Oyo urban drift among others. to rise to the challenge of a new value for three consecutive With the fresh capital in- ity, and hopes to use the fresh State capital “Agriculture and value banking regime fostered by a days as at Wednesday and has jection, Atlas Mara will now funds to accelerate the bank’s The NIPC boss who said chain is a key area we are tak- regulatory-induced consoli- been the worst performing control 44.50 per cent of UBN turnaround. federal government is trying ing into consideration. This is dation in 2005. The bank’s old bank in 2016, pummelled by shares and seek to make ma- “While the operating envi- in its own way to invest in the an area you can have direct generation peers, First Bank a recession which hit Africa’s jor strategic and operational ronment remains a challenge, areas of opportunities urged impact on people’s life. Nigeria (FBN) and United Bank biggest economy for the first changes that will position the we are focused on our 2017 states to compete among Acting Director General of for Africa Plc (UBA), have since time in 25 years. bank on the path of improved priorities which include rais- themselves in the areas of in- DAWN, Seye Oyeleye main- the consolidation moved on to Analysts say that the lender, performance. ing Tier 1 capital to execute vestment thus bulk of invest- tained that the commission become top five biggest Nigeria just as other lenders in Africa’s UBN’s group audited fi- our growth agenda across ments lies in the state. has responsibility to ensure lenders by asset size in the tier- biggest oil producer, is cheaply nancial statements for the our retail, commercial and “Nigeria competes with intergration of states and sus- 1 category. priced, presenting allure for for- year ended December 31 2016 corporate businesses, particu- rest part of the world, I think tainable development within The bank is currently a mid- eign investors seeking huge re- showed that earnings dropped larly transaction banking and states should also compete. the South Western Region of sized bank valued at N97.51 turns on investment. Atlas Mara 12 per cent to N15.9 billion. Bad value chain.” Africa contributes 13% to the country. Friday 23 June 2017 C002D5556 BUSINESS DAY 15 COMPANIES & MARKETS StarTimes committed to quality sports Business Event content says marketing director

AKOBI UGOCHUKWU It was in 2003 that the In- Alex Gersbach, who has two domitable Lions gave its best caps to his name. tarTimes, Nigeria- performance by reaching The FIFA Confederations based Pay TV com- the stage of the final against Cup 2017 is the tenth edi- pany, has assured France. However by winning tion of the Championship sports Nigerians the CAN 2017, it is once again featuring Germany, Russia, the opportunities to with the status of outsider that Portugal, Mexico, Australia, Swatch the thrills of the on- Cameroon presents itself in New Zealand, Chile and Cam- going Confederation Cup as an international competition eroon. The competition will African Champion, Cameroon hoping to make such a good begin on 17th June and final takes on Australia in Group B course as in 2003. is scheduled for 2nd July 2017 fixtures Cameroon lost its first The Aussies however suf- “Quality sporting content match 0-2 to Chile. fered a setback ahead of the was the reason behind the StarTimes has assured that game when it was announced acquisitions of sporting rights subscribers can enjoy the best that captain Mile Jedinak such as the FIFA World Cup of the World Cup matches and would miss the Confederation in over 48 territories in Af- other thrilling sporting actions Cup in Russia due to a persis- rica and other sporting event L-R: Akamo Olabode, representative of principal, Lagos Island Local Government Vocational Institute; on its World Football Chan- tent groin injury. He would be like the Serie A, Bundesliga, Maureen Nkemchor, a graduate; Joseph Ekhator, assistant pastor in charge of administration, Redeemed nels 244 and 254. replaced by uncapped James French Ligue 1, Chinese Su- Christian Church of God (RCCG), Province 44, Surulere;. Ikara Mercy, graduate; Ajibola Opeoluwa- Speaking on these coming Jeggo, 25, of Austrian team per League and Eredivisie,” Calebs, assistant pastor in charge of corporate social responsibility; Temitope Emovon, wife of the pastor in Confederation Cup matches, Sturm Graz. Qasim said. charge; Amos Emovon, pastor in charge and Bolanle Arikawe Otu, head, Lagos State Vocational Training Acting Brands and Marketing The Aussies also lost Brad- He said StarTimes will be Institute, Surulere, at the graduation ceremony for the 2017 RCCG Lagos Province 44 empowerment Director, StarTimes, Qasim ley Smith during the win over showcasing the best of these programme in Surulere, Lagos. Elegbede, said StarTimes re- Saudi Arabia, with the Bour- football actions live from the mains commitment to deliver- nemouth defender suffering various match centres in Rus- ing quality sporting content to a hamstring injury. His place sia to the living homes of its subscribers. has been taken by 20-year-old subscribers. Etisalat’s loan restructuring talks fail as lenders step in BUNMI BANJO The loan that has proved so generates 3.7 percent of its rev- troubling for Etisalat Nigeria is a enue from the Nigerian business, tisalat has been in- seven-year facility agreed with 13 had questioned the rationale of structed to transfer its local banks in 2013 to refinance investing more in the local unit, E45 percent stake in Eti- a $650 million loan and fund when asked by lenders to recapi- salat Nigeria to a loan trustee. expansion of its network. talise its affiliate as an option. The company has initiated Ibrahim Dikko, vice presi- An Etisalat Nigeria spokes- changes to its shareholding dent for regulatory affairs at man said the company was still structure after talks with lend- Etisalat Nigeria said that man- in discussions with lenders to L-R: Nnamdi Okechukwu , analyst, youth segment, Etisalat Nigeria; Obazu Elizabeth, winner of Cliqfest ers to restructure a $1.2 billion agement was continuing to run find a “non-disruptive” solution. start up grant, HND 2 electrical engineer student , and Owuh Deborah, another winner of Cliqfest start up debt failed, the company said the business after the sharehold- Etisalat said its financial ex- grant , OND 1 economics student, with Martina Ogbebor, specialist, events, Etisalat Nigeria, during the on Tuesday. ing changes and that there were posure to Etisalat Nigeria was Cliqfest campus activation at Auchi Polytechnic , Edo state. According to the Abu Dha- contractual and regulator issues related to operational services bi-listed telecoms giant the to be finalised. worth 191 million UAE dirhams firm had been in talks with Ni- Nigerian regulators had tried ($52 million) and that discus- gerian banks to restructure its to prevent lenders placing the sions were ongoing with lenders loan after missing repayments, telecom firm into receivership regarding the use of the Etisalat but those discussions failed to to avoid a wider debt crisis and brand. produce an agreement. agreed with banks to pursue a Etisalat said its financial ex- Etisalat is the biggest for- default deal. posure to Etisalat Nigeria was eign-owned victim of dollar But lenders under pressure related to operational services shortages plaguing Nigeria’s to avoid loan-loss provisions, worth 191 million UAE dirhams financial system because of have been pushing to finalise ($52 million) and that discus- lower oil prices and economic restructuring before half-yearly sions were on-going with lenders recession, leaving it struggling audits this month. regarding the use of the Etisalat to make the loan repayments. Sources say Etisalat, which brand name. LFTZ hands over processing centre to Nigeria Customs …to build more standard factories as 47 companies active at zone A, where 47 business concerns From left:Felix Igbinosa, Yinka Tiamiyu, Chinwe Basil-Ezegbu; Citibank Head of Audit, Middle East and JOSHUA BASSEY an independent power plant, Africa, David Baldry; ACAEBIN Chairman, Abiodun Aderoju and EMEA Chief Audit Executive, Citigroup, have become active. Some 114 well paved road network, wa- Andy Blight. Other executive members of ACAEBIN, David Isiavwe, Bolaji Ajao, Uduak N. Udoh and he Lekki Free Trade investors with interests in dif- ter supply, investors are in Gboyega Sadiq at the 36th Quarterly General Meeting of ACAEBIN hosted by Citigroup in Lagos Zone (LFTZ) has built ferent sectors of the economy, for a business hub that truly Tand handed over fully including manufacturing, oil compensates. He assured the equipped/ computerised Cus- and gas, estate development, Customs Service of the com- toms Processing Centre (CPC) hotel, tourism, among others mitment of management to to the Nigeria Customs Service have so far registered to do operate within the laws guiding (NCS) to fast-track hitch-free business at the zone. free trade zones, in Nigeria. operations at the zone. Rotimi Ibrahim, deputy Augustine Chidi, deputy The management of the managing director of the Le- comptroller general of Cus- trade zone has disclosed plan kki Free Zone Development toms, who represented Ha- to build more standard facto- Company (LFZDC), who meed Ali, the comptroller ries as the existing four have handed over the CPC to the general, while inspecting the been taken by some of the Customs, on Monday, said processing centre, said it en- investors already engaging amid the challenge of gas hance the operations of the in manufacturing activities supply and offshore banking, Customs within the zone. within the zone. which are being addressed, the He called on the manage- The LFTZ, sitting on 16,500 management, with support ment of the zone and NEPZA, hectares of land, is being de- from Lagos State and Nige- to ensure that the laws are veloped in phases’ It will be rian Export Processing Zone strictly adhered to the laws the biggest free trade zone in Authority (NEPZA), is doing guiding import and export West Africa when completed. everything to make the zone activities. He, however, com- Presently being jointly de- a world class for foreign and mended the management L-R: Oluseye Petphil, social media manager, Goal Nigeria; Oluwatobi Samuel, one of the winners of veloped by a consortium of local investors. for building and equipping ‘UCL Predict and Win’; Oke Umurhohwo, marketing communications manager, itel Mobile, and Adekoya Chinese investors and Lagos According to him, with the centre for the use of the Kazeem, head, digital marketing, Nobel Carpets and Floors, during the prize presentation to winners of State government is the parcel 24-hour electricity, fired by Customs. ‘UCL Predict and Win’ contest jointly sponsored by Nobel Carpets, itel Mobile and Goal.com in Lagos. 16 BUSINESS DAY C002D5556 Friday 23 June 2017 CITYFile Apapa congestion: Police to dismiss officers over bribe eputy Commissioner of Police in charge of Western Ports, Adey- emi Gbola, has warned officers against collecting money from Dtruck drivers to allow them in and out of the ports gate, saying anyone caught would be dismissed. “The task of the police at the ports is to provide maximum security of life and property for the port users to enhance eco- nomic growth. “The police management will treat officers found wanting in this regard with disdain, as many of them have already been dismissed from the force. “We are on the look-out to apprehend any officer involved in this practice; a pa- trol task force has been constituted for that purpose,’’ he said. Gbola added that the presidential order to ensure the ease of doing business in the ports’’ was not for one particular agency or operative but for everybody, who might have something to do in the ports. He noted that the police had under- taken some reforms to forestall crime in Augustine Chidi (2nd l), Deputy Comptroller-General of Customs; Rotimi Ibrahim (4th r), Deputy Managing Director, Lekki Free Zone the ports. He advised the public and port Development Company, and others, during a visit to the Lekki Free Trade Zone (LFTZ), to commission Customs Processing Centre, users in particular to resist the temptation built by the LFTZ management to enhance operations at the zone. of giving the police money at the port. Unemployed man bags 2 years Smugglers forfeit 16 vehicles, other goods to Customs in Oyo, Osun Federal High Court in Lagos has sentenced a 28-year-old unem- AKINREMI FEYISIPO, Ibadan tip-offs from the information network led by He added that “the unbridled use of im- ployed man, Aminu Ali, to two DSC Alajogun Joseph. ported second-hand tyres has continued to years imprisonment for drug peratives of the Nigeria Customs The Customs boss stated that the suspects wreak havoc on the nation’s highway with Atrafficking. Service (NCS) in Oyo and Osun were not arrested as “they eloped into the many lives lost”. The convict was charged by the National have intercepted 15 assorted cars bush as soon as they sighted the eagled-eyed “However, it should be noted that the Ser- Drug Law Enforcement Agency (NDLEA) and MAN diesel truck with paid customs officers” vice is not interested in witch-hunting or victi- on a count charge of dealing in restricted Oduty value put at N28.88 million. “I want to sound a warning to all those mising anyone who is into legitimate business. narcotics. Ali pleaded guilty to the charge. Among the seized cars are Toyota Venza, who are still trapped in the illicit business But the Service will not relent in the pursuit of Before his sentence, he begged the court Lexus, Nissan Pathfinder, Toyota Corolla, of smuggling to change from this obnoxious smugglers and economic saboteurs.” to tamper justice with mercy and give him Honda and Peugeot. business which is detrimental to the nation’s “What they are doing is injurious to the another chance to turn over a new leaf. Emmanuel Udo-Aka, the Customs Comp- economy and life of our people”. economy and the people of Nigeria. Our own Ali promised that he would be a better troller in charge of Oyo/Osun command, ”It is imperative to restate that based industries and economy must grow, so we are person in life, if given the opportunity. who addressed journalists in Ibadan, the on the current fiscal policy of the Federal working to make sure that the economy im- Following his plea, the prosecutor, Jer- Oyo State capital, said in the cars were also Government, no vehicle and rice is to be proves so that people will have places to work” emiah Aernan, had reviewed the facts of the prohibited items, including second-hand imported into Nigeria through the land bor- Fielding questions from journalists, Udo- case before the court. clothing, foreign rice and other contraband ders again. There is no gainsaying that rice Aka alleged that rice smugglers were repack- Aernan tendered a written statement of goods. smuggling stifles domestic rice production in aging contaminated rice from the Republic of the convict, a bulk of exhibit, a request for The NCS boss said that 172 pieces of used the country in addition it is injurious to the Benin with the aim of supplying them to the scientific aid form, a drug analysis form and tyres and 272 pieces of vehicle wheels inside health of our people and to this economy”. Nigerian market. remnants of the restricted substance. The the MAN diesel truck were seized along the “In the same vein, the ban on used tyres He said the seized bags of rice have been court admitted them as exhibits. Lagos-Ibadan Expressway on June 9,2017. is for the safety of our people and local tyre stored in warehouses at the Republic of Delivering judgment, on Wednesday, According to him, the detentions were production industries to grow. It is just too Benin without proper pest control, making Justice Babs Kuewumi, found the accused effected on Saturday June 17,2017 along bad that such contraband find their way into them prone to all manner of diseases saying guilty as charged and accordingly con- Saki axis and this was done in synergy with this country through the nefarious activities that “most of these smuggled products have victed him. Kuewumi said that the convict’s the headquarters compliance team and the of smugglers who in turn sell them to unwary expired and are not safe for consumption, sentence would run from the date of his Customs intelligence unit in Oyo. The opera- members of the public because of their per- yet they are re-bagged and relabelled and arrest. NAN tion, according to Udo-Aka, was based on ceived cheap prices”. dumped in our country”. Obaseki wants police to investigate herdsmen killing in Edo 40-yr-old charged with theft of N1.1m milk attacked and robbed him of the IDRIS MOMOH, with agency report 13,750 hectares of land. 40-year-old truck driv- …as group protests He alleged that two years after the er, Apena-Olabisi Ola- goods. overnor Godwin Obaseki of revocation; the company continued sunkanmi, who alleg- “The accused loaded the car- Edo has directed the Com- them that government was working to defy the order, adding that the edly stole 223 cartons tons of milk from Lekki Free out lasting solutions to the problem. missioner of Police (CP), company had increased its agricultural Aof Dano milk valued at N1.1 Trade Zone, and was to deliver The 68-year-old victim, Margaret Haliru Gwandu, to deepen activities on the land. million, is facing trial at a Tinubu them to Kano and was paid 61 Ginvestigations into the recent killing Odiamehi, was a widow and mother “In the name of development per cent of his charges. He called of six children. The first son of the Magistrate Court, Lagos. in the state, blamed on suspected and job creation, the company has The accused, whose address the company six days after his herdsmen. deceased, Joseph Odiamehi, said his continued to destroy the forest; it departure from the base in Lagos mother went to her farm and never is unknown, is facing a two- Obaseki gave the directive when he has taken away farmlands belong- count charge of conspiracy and that as he waylaid by some armed returned. He said that his late mother ing to over 60,000 farmers in various paid condolence visit to Ukpenu com- theft which he denied. men and was dispossessed of the was later found dead with her throat communities. “The affected com- munity in Esan West local government But the police prosecutor, goods,” Osijiale said. where a widow was found dead on her slit at night by a search party organised munities are Okomu village, Agbede by the community. Philip Osijiale told the court The offences contravened farm on Tuesday. Makilolo, Lemo,Oweike, Avbiosi, Sections 287 and 411 of the This is as a group, Stakeholder- Uhiere, Owan, Ugbobezi,Oke-Ora, that the accused committed the The governor, represented by Criminal Law of Lagos State, 2015 Coalition for Protection of the Envi- Ekpan, Oke, Odiguete Uhonmora and offences on December 12, 2016 Philip Shaibu, his deputy, called on (Revised). vigilance groups and hunters in the ronment, on Wednesday protested Uzebba, among others,’’ he said. at Lekki Free Trade Zone. against alleged displacement of over Ojo appealed to the state govern- He said the accused con- Section 287 stipulates three area to rise up to the challenge and years imprisonment for theft, collaborate with security agencies in 60,000 farmers from their communi- ment to intervene by enforcing the spired with a man still at large while Section 411 states two years providing protection for farmers. ties by Okomu Oil Palm Company revocation order on Okomu Oil Palm to steal 223 cartons of Dano milk He said that the government was Plc. The protest was led by Oyi Ojo to Company Plc. worth N1.1 million, property of imprisonment for conspiracy. already investigating how the sus- Edo House of Assembly. He told the Okonoboh thanked the protesters Sufedo Heritage Ltd. The magistrate, Kazeem Omo- pected killer herdsmen gained entry speaker, Justin Okonoboh, that former for the peaceful manner of their dem- He said that Olasunkanmi, laja, granted the accused N200, into the state. Governor Adams Oshiomhole had onstration and assured them that the who was hired by the company 000 bail with two sureties in like Obaseki also advised the people to revoked the occupancy permit given lawmakers would address the matter. to deliver the cartons of milk sum and adjourned the case until to Okomu Oil Palm Company, over go to their farms in groups and assured (NAN) to Kano, claimed that he was June 30 for hearing. Friday 23 June 2017 C002D5556 BUSINESS DAY 17 MoneyInsight Personal Finance: Investing Retirement Taxes Credit Cards Home Buying Small Business Shopping Financing Five things you need to know before starting your business do it for the passion, fun and STEPHEN ONYEKWELU excitement. Others do it to contribute something valuable he treats and trap- to the world, and to make an pings that come impact. with owning and In the end, money is just running one’s busi- one of the rewards for the risks ness are rewards entrepreneurs take, but it’s not Tworth keeping sleepless nights the ultimate reward. It’s just a for. However, there are five way to keep score. Recognition, things prospective entrepre- impact and self-actualization neurs need to understand. are actually far stronger moti- vators than money. Understand the risks involved You will be broke some- The first thing that strikes times you about the glamour of entre- Many people become entre- preneurship is the overwhelm- preneurs because they want to ing focus on the rewards. We make money. The reality is, you are hardly told the backstory may have to ‘lose’ money first of the pains and risks that came before you make any money. before the rewards. Anybody who’s bootstrapped We are constantly fed tales a business before would know of heroic people who started what I’m talking about. a business from their parent’s need to have the balls to take When you are really com- garage and built it into a multi- This is why most successful about you until you make it. mitted to building a business, it million dollar company. We are risks. The bigger the risks you a heavy dose of distractions. can take, the bigger the rewards entrepreneurs are big believ- Many people just do not re- is natural to give it everything. regaled with stories of employ- ers and perennial optimists. It alise how lonely entrepreneur- Press interviews, invitations to you can make. speak at local and international To pay salaries, keep the lights ees who quit their jobs to take is this unconditional belief in ship can be. Especially in the on and meet all the other ob- on entrepreneurial pursuits. their vision that propels them early days and years, you are in conferences, mentorship and Self-doubt will haunt you coaching requests, and the ligations of your business, the The truth is, if we really to conquer their doubts and the driving seat of the business entrepreneur often has very knew just how much risk en- Entrepreneurs often come pressures of managing your ris- across as visionaries; people achieve success, in spite of and the burden rests squarely little left to live on. But as long trepreneurs expose themselves the odds. on your shoulders. ing public profile are just some who see and act on things that of the distractions success will as their vision is alive, most to, we would admire their guts Things will happen that Except you have a sup- entrepreneurs know that be- more than we envy their suc- others do not. What we often bring into your life. do not realise is that visions are will test your confidence and portive business partner, co- ing broke is only a temporary cess. Entrepreneurs often take make you doubt your vision founder or mentor, the journey condition. not certainties. And things can It is not just about the risks that do not make any sometimes. Disappointments is usually a very lonely experi- Entrepreneurs are like farm- go wrong as we try to bring a money sense at the time, and that is and frustration could push ence for many entrepreneurs. ers; they always look forward to how they are able to reap the vision into reality. While money is certainly a Self-doubt is one of the you to the brink of despair. But Worse still, in spite of every- the harvest. But until harvest big rewards. because they’re big believers, thing you are going through strong motivator for entrepre- most common demons that neurs, to make it through the time comes, they will do ev- The rewards of entrepre- entrepreneurs usually recover you still have to be your own erything they can to keep their neurship are only half the story. haunt entrepreneurs. When- dark and lonely days of build- ever we take risks or take on from these setbacks. therapist. People are drawn crops alive, even if it means The pains, frustrations, risks to success. But until success ing a business, you will need challenges that do not have an something more than just the staying hungry and broke. By and challenges are actually It is a lonely journey until comes, you are largely invisible. assured outcome, it is human “love of money” to keep you the time the harvest comes, all the most important parts of the you make it Success usually comes with nature for doubt to creep in at going. Some entrepreneurs the pain, suffering and sacrifice story. If you want to be on the This is a fact: nobody cares will be long forgotten. cover of Forbes Magazine, you every turn. Stakeholders to converge in Accra to discuss agribusiness opportunities in West Africa is slated for 10-12 July at conference’s main themes presentations, interactive can be improved, how local and support women in agri- CALEB OJEWALE the Movenpick Hotel Ac- of partnership, investment panel discussions, break- government and interna- business,” Brunache said. he emphasis on Agri- cra, comes at a time when and innovation. Also, in out sessions and a site tional suppliers of fertilizer The conference marks business as a key countries within the sub Nigeria, the region’s larg- visit to the Nestle Tema can work in partnership to the second in the continu- Tvariable in Africa’s region are making spirited est economy, agriculture factory,” said Nicola Cos- build strong agribusiness.” ing collaboration between quest for food sufficiency efforts to transform the way has been made a focus of lett, CRU Events CEO in a “The conference will also CRU Events and AFAP. This and economic stability will agriculture is run. In Ghana, the present administration statement. look into how innovation unique partnership, organ- again take centre stage at the host country, the Gha- which has been making Pierre Brunache, Chief in areas of finance or com- iser say will offer unrivalled the West Africa Fertilizer naian fertilizer and agribusi- efforts to support the value Agribusiness Officer at munication can be used in networking opportunities Agribusiness conference ness sector is undergoing chain in many ways. AFAP also remarked that West African agribusiness, with senior decision makers being organised by CRU an incredible boost from “The three-day confer- “Sessions will explore criti- financing tools to enable from the biggest fertilizer Events and the African Fer- the country’s new leader- ence and networking event cal issues such as how the fertilizer trade and invest- buyers and manufactur- tilizer and Agribusiness ship, making it the perfect will attract over 250 at- cost of fertilizer for West ment in the agribusiness ers in some of the world’s Partnership (AFAP). moment to explore the re- tendees and feature spe- African farmers and supply value chain and how to en- fastest growing fertilizer The conference, which gions potential using the cialist workshops, keynote chains of agricultural inputs courage youth participation markets.

Analysts: Frank Eleanya, Stephen Onyekwelu & Caleb Ojewale 18 BUSINESS DAY C002D5556 Friday 23 June 2017 MoneyInsight A pension fund is perhaps a safer bet than ‘starting afresh’

CALEB OJEWALE for the employees’ retirement the world, is what they are now benefits. Pension funds are trying to do in their old age. t is not uncommon to large investment blocks in most “They go into filling station hear people looking for economies and a major fac- business, bakery, real estate and business ideas to invest in tor in the stock market. These all sorts based on friends/fam- right about when they’re funds are managed by profes- ily advice. And in many cases heading for retirement, or sional fund managers and fall gamble away the money,” he Ieven shortly after settling into under the institutional investor explained. retirement phase. The sudden category. Pension funds are Contrary to the notion some interest in “running a business” often exempt from capital gains may have; the money in pension to some people seems plausible, tax, and earnings from their fund is not lying fallow. It is in- but again, why the sudden in- investment portfolio are tax vested according to stipulations terest to “start a new business” exempted. by law, in mostly low risk invest- when a person no longer has the Michael Olafusi, a business ments like Government bonds. advantage of “youthfulness and data analysis expert remarked In the bigger picture, pension time to run around”? that “Till I resigned from paid funds are in the national public in- Perhaps, there is need for employment, I used Stanbic terest and the legislative language people to have more faith in the IBTC Pensions. They send me weeks ago).” complain of how some retirees explicitly defines such funds pension fund system and avoid monthly account statement. “The main idea of govern- think they are smart and re- in various laws. Pension funds subjecting what should be their My money has been growing ment making pension compul- quest for the withdrawal of their perform important economic retirement benefits to the risks despite no new deposits since sory is that too many people pension accumulation upon functions, such as mobilizing of untested businesses. March 2014 when I resigned don’t save for after retirement,” retirement instead of having and managing savings, providing Pension funds are pooled from my last job. It has been said Olafusi. a monthly salary-like payout. income stability, making labour contributions from pension growing even better than my Olafusi further said “In my And the business they didn’t markets more efficient and pro- plans set up by employers and stocks investment (till stocks training classes for some pen- try when they had youthful viding exposure to systemic risk other organizations to provide took off astronomically few sion companies, they often energy and more in sync with in the financial markets. Redefining development of satellite cities in Nigeria

JOSEPHINE OKOJIE calls ‘live-work-play’ environ- Jigna to build an exemplary he Lagos State Govern- ments. “A typical project for us community for Nigeria and ment recently gave itself involves mixed-use develop- Africa,” said Ademola. “The Ta bold target: to emerge ment on around 1,000 hectares outcome will be a thriving as the third biggest economy of land located 20-30 minutes community that will also serve in Africa within the next three away from the city centre, and as a catalyst for economic, years. Infrastructure develop- designed to provide housing cultural and environmental ment is critical to driving this for around 100,000 residents c h a n g e .” economic growth, as well as and facilities for tens of thou- With Nigeria’s huge popula- vital in relieving the pressure sand of day visitors,” said Ade- tion and acute housing short- that will come because of this mola. “Each development has age, experts are unanimous in growth. the potential to create approxi- their belief that such private “There will be pressure on mately 100,000 permanent and urban developers as Rendeav- social infrastructure, but La- 220,000 temporary jobs during our bringing in much needed gos has often risen up to the with Lekki Worldwide Invest- their population and resources. its 20-year project lifetime. FDI, coupled with favourable challenge to meet up people’s ments Limited and separately For a country like Nigeria, with We work in partnership with investment policies by the expectations, and we will con- a similar sized project within an extreme housing shortage, world-class experts, local de- federal and state governments, tinue to deal with it as we have the Federal Capital Territory satellite cities are critical in velopers and governments at provide the panacea to one of often done,” said Steve Ayor- in Abuja. taking some weight off bloated various levels to create these the country’s biggest problems. inde, the state’s Commissioner Both projects, according urban centres. When built as mixed-income satellite cities.” In its ‘2015 Real Estate Outlook for Information and Strategy, to Yomi Ademola, Head of market-led, mixed-use devel- In Lagos, Rendeavour en- in Nigeria’, the National Bureau while announcing the plan West Africa at Rendeavour, opments, satellite cities, espe- tered a joint venture with the of Statistics (NBS) revealed that earlier this month. will emerge as world class cially in developing countries state government to develop a real estate survey done in 2013 A key partner in helping satellite cities that are drivers like Nigeria, increase Foreign 1,000 hectares within the Lekki showed that Nigeria had a hous- the state realise this ambition of economic growth and serve Direct Investment (FDI), intro- Free Trade Zone. There, the ing deficit of 17 million units is Rendeavour, widely hailed as needed catalysts for further duce world class infrastructure, firm plans to establish a satel- and requires 700,000 houses as Africa’s largest urban land investment in logistics, manu- increase employment and lite city that experts agree is to be built annually to keep developer. The firm, which facturing, housing and offices. encourage manufacturing and critical to the zone. In Abuja, up with the demand. The NBS specialises in unique satellite Satellite cities have been industries. In Africa, Rendeav- Rendeavour has embarked on further reveals that less than city concepts, has invested in established by land use experts our has emerged as the leading the master planning of Jigna, 100,000 houses are built annu- an estimated 12,000 hectares as the best ways to accommo- satellite cities developer. a satellite city development ally in Nigeria. With a projected across Kenya, Ghana, Nigeria, date population growth while The firm’s development nestled in the high grounds population of 187 million, ac- Zambia and the Democratic maintaining urban plans and model involves land acquisi- above Katampe’s Diplomatic cording to 2016 data from the Republic of Congo. In Nigeria, preserving green spaces. They tion; re-zoning of the land; Residential Area. “We are in- United Nations (UN), and an it has committed to develop- are usually located adjacent creation of a master plan; in- vesting over $300 million in annual population growth rate ing 1,000 hectares within the to major cities and designed frastructure development; and infrastructure, including roads, of 2.7%, Nigeria is in dire need Lagos Free Zone in partnership to provide a balance between the establishment of what it water sewerage and power at of urgent urban development. Friday 23 June 2017 C002D5556 BUSINESS DAY 19 HealthBusiness & Living

Federal neuropsychiatric hospital Aro Abeokuta, named one of the ICD-11 field study centres in Nigeria

work for health information Hospital, Aro in 1954, the were Niegrian soldiers repa- having completed his course KEMI AJUMOBI with wired report and reporting with the aims of hospital has continued to dis- triated from the Burma war of study in psychiatry at the monitoring epidemics/threats charge her tripartite mandate front during the Second World University of Birmingham. ederal Neuropsychi- to public health/disease bur- in Clinical Services delivery, War. Lantoro was a former Lo- The defunct Western Region atric Hospital, Aro, den, assessing progress to- Research and Training &Hu- cal Government Prison which of Nigeria managed the hospi- Abeokuta, a foremost wards meeting public health man Capacity Development in was taken over, first by the tal until 1976, when the region Psychiatric Hospital objectives and also to serve as mental Health services. Military, and later by the then was split into three, namely, in Nigeria has been a basis for guidelines for care The hospital champions Colonial Medical Department. Ogun, Ondo and Oyo States. Fnamed by the World Health and standard of practice” the mental health situation In January 1946, the first The Federal Government took Organisation (WHO) as one of “The Ecological implemen- in Nigeria through different civilian patients were admit- over the hospital and set up a the two (2) sites conducting the tation (clinic-based) field stud- initiatives. These initiatives ted into Lantoro. Later on board to oversee it, along with International Classification of ies will help guide the revision include mental health services in the same year, criminal two other psychiatric hospitals Diseases and Related Health of the chapter on Mental and at the Primary Health Care patients who were adjudged at the time, namely: Psychiatric Problems (ICD-11) field stud- Behavioural Diseases of the (PHC) level across Ogun State to be mentally ill were also Hospital, Yaba, Lagos and Psy- ies in Nigeria. International Classification of in collaboration with Ogun admitted into Lantoro, on the chiatric Hospital, Uselu, Benin Speaking about the pro- Diseases and Related Health State Local Government Ser- order of the courts in accord City. Decree 92 of 1979 was gramme, Adebowale Timo- problems, 10th Revision (ICD- vice Commission and mental with the Lunancy Ordinance. promulgated in October 1979 thy, the Acting Provost and 10) to be incorporated in the health training of Primary The Lantoro Institution soon to back the Board. The same Medical Director said that the 11th Revision of the classifica- Health Care workers across became over populated and a decree formally declared Aro research capacity of the hos- tion, ICD-11,” he added. the twenty (20) Local Govern- decision was taken to establish Complex as an affiliate of the pital has received a boost with The Research project, which ment areas of the state, in and a well-equipped hospital for University College Hospital, her involvement in the WHO will be conducted at treatment out-patient services, Child mental and nervous diseases. the teaching hospital of the International classification of facilities around the world, will and Adolescent mental health In 1948, through an ar- University of Ibadan, Ibadan. Diseases and Related Health examine the clinical consisten- services, Addiction psychia- rangement made by the late This hospital, then known problems (ICD-11) field stud- cy (Inter-rater reliability) and try and other services in the Samuel Manuwa, Deputy Di- as an asylum, was first admin- ies. clinical utility (goodness of fit, hospital. The innovative Aro rector of Medical Services, istered by the late Cameron, Sharing on the develop- ease of use, and adequacy of Primary Care Mental Health Western Provinces of Nigeria, who was designated as the ment, Lucky Onofa, the WHO the diagnostic guidelines of se- Services, is aimed at reducing the present site of Aro Neu- “Hospital Superintendent” Global Mental Health Scholar lected categories of mental and treatment gap in the country. ropsychiatric Hospital, sitting and the Site Coordinator for behavioural disorders chosen In Nigeria, the mental on an expansive 732 acres of Federal Neuropsychiatric Hos- due to their high burden in the health situation has remained land was acquired with the pital, Arosaid that the ICD-11 community. dismally deplorable with only assistance of the then Alake of Field trial is a revision process The project is being super- 1% of the 10-18% of people suf- Egbaland, Abeokuta, the late of ICD-10, a diagnostic tool vised by the National Principal fering from mental illness hav- Oba (Sir) Oladapo Ademola II. used globally by Health profes- Investigator, Oye Gureje, a ing access to Specialist care. Though, as far back as the HBL TEAM sionals to diagnose and classify Professor of the Department of The Neuropsychiatric Hos- late 1930’s, the present site of diseases. Psychiatry, University College pital, Aro, Abeokuta, Nigeria, Aro Neuropsychiatric Hospi- KEMI AJUMOBI According to him, “The pri- Hospital (UCH), Ibadan while came into existence in 1954; tal had been labeled “Site for Head, HBL mary principle guiding the Lucky Onofa would be work- but its progenitor, then an Mental Hospital”, it was not un- [email protected] revision process for ICD-11 is ing alongside with Lola Kola, asylum, now called Lantoro til 1954 that the Aro Complex, to provide more effective sup- a senior research officer of Annex, came into existence the main hospital which is port to countries in reducing the Department of Psychiatry, on the 13th of April, 1944. This about 18 kilometers from Lan- the disease burden associated UCH, Ibadan for the overall was when 13 health attendants toro Annex, was begun by the Reporter with mental, and Neurological success of the field trials in were transferred from the Yaba doyen of psychiatry in Nigeria and substance use disorders; Nigeria. Asylum, Lagos, to open the and Africa, the late Professor ANTHONIA OBOKOH He added. He said further that Since the establishment of Lantoro Institution with five Thomas Adeoye Lambo (OFR), the ICD-11 will be a frame- the Federal Neuropsychiatric mentally ill patients. These upon his return to Nigeria, 20 BUSINESS DAY C002D5556 Friday 23 June 2017 HealthBusiness & Living Debunking myths about sickle cell disease

ANTHONIA OBOKOH

igeria with over 180 million people has the largest burden of Sickle cell disor- der in the world’s Nwith over 150,000 babies born with the serious condition every year, where it causes millions of avoidable deaths and suffering, particularly in children, which some may perceived as a spiri- tual ailment known as “Ogbanje” in Igbo and Yoruba “Abiku”. Sickle Cell Disease (SCD) is a group of inherited blood condi- tions that affect the red blood cells in the blood. Red blood cells contain a protein called haemoglobin that carry oxygen throughout the body. Haemo- globin is normally disc-shaped and flexible, so it can be easily carried by the red blood cells in the blood stream. In sickle cell disease, haemoglobin con- taining red blood cells become shaped like crescent moon or a ‘sickle’ because of an abnormal haemoglobin gene. Hence the name sickle cell disease. cell anaemia (Hb SS)”. with origins in equatorial Africa, why it has been maintained at rians need to be aware of their Sickle cells get stuck in the “However, it is sad, but true, the Mediterranean basin and such high prevalence levels in genotypes before choosing a blood vessels and disrupt or that control of SCD is not ame- Saudi Arabia. tropical Africa. partner because majority of block blood flow, thus, parts of nable to ad hoc and seemingly The Prevalence levels in coun- Those who inherit the gene these children with the most the body where the blood flow is simple interventions. This is tries such as Cameroon, Repub- from both parents do not have severe form of the disease die be- blocked do not get the required because these often lack a clear lic of Congo, Gabon, Ghana and this protection. In addition, they fore the age of five, usually from amount of oxygen. This can understanding of the complexity Nigeria, is between 20% and 30% suffer from severe effects of SCD an infection or severe anaemia. cause intense pain that can last of the problem and of the eth- while in some parts of Uganda it and many die before they reach “Drinking lot of fluids will from hours to a few weeks. This ics and objectives of effective is as high as 45%. reproductive age. help patients suffering sickle is known as sickle cell crisis genetic counselling, he noted. In countries where the trait Adeolu Ogunsanya an Ob- cell so as not to dehydrate and Olu Akinyanju, chairman, According to World Health prevalence is above 20% the stetrics and Gynaecology based wearing appropriate clothing to Sickle Cell Foundation of Ni- Organisation, Sickle Cell Disease disease affects about 2% of the in Lagos said, a child suffering of avoid catching cold will help to geria, said “one in four or over (SCD) is a major genetic disease population. The geographic dis- Sickle cell is affected as well as avoid trigger crisis” 40 million Nigerians are health in most countries in Sub-Saha- tribution of the sickle-cell trait is the family and recurrent sickle- “Nigeria still needs more carriers of the sickle cell gene- ran Africa; trait is now known very similar to that of malaria. cell crises delays the education, awareness, government and Haemoglobin AS (Hb AS) while to be widespread, reaching its The sickle cell trait has a psychological growth of the stakeholders should help pro- 1 in 50 or over 150,000 children highest prevalence in parts of partial protective effect against child. mote the masses”, said Ogun- are born each year with sickle Africa as well as among people malaria, and this may explain He further said, more Nige- sanya. Lifescan takes screening up a notch in Lagos he Reddington Wellness includes diagnostic imaging of Gray’s Cardiology Centre to centre has launched in the head, brain, neck, chest, ab- offer high quality cardiology TLagos recently the Lifescan domen and pelvis”. Each patient care. They also opened the MRI Medical Checkup programme, will get a report on the outcome Centre becoming the first facil- first of its kind in Nigeria. of the screening along with any ity in sub-Saharan Africa to have The launch of the Lifescan findings, said Lalude a Signa Explorer 1.5T MRI with service is a product of the part- Andy Cunliffe, the business ’Silent Suite’ reducing ambient nership between Redding- development director, added noise decibel levels to an abso- ton Healthcare Group and GE “Medical research has consis- lute minimum. Healthcare in advancing qual- tently shown that early detec- However, “Our entire team is ity healthcare in Nigeria using tion increases survival rates. committed to continuously im- state-of-the-art technology. Early diagnosis is the most criti- proving the standards of health- The Lifescan uses advanced cal strategy for avoiding a heart care delivery and access to it. medical scanning technology attack, stroke or advanced can- Full body scans widely available including Nigeria first GE Signa cer diagnosis. We are looking at abroad and Lifescan provides Explorer Digital MRI at the Red- ways to make this accessible to further support to our support dington which has advanced ca- as many people as possible”. patients. Our team has a collec- pabilities to produce the highest He further said, the Red- tive determination to provide quality images suitable for the Group who have a history of be- factors. dington Healthcare Group healthcare services as good as purpose of Lifescan. This is ing in the forefront of pioneer- “We want to promote well- have in the past twelve months any overseas,” said Cunliffe. coupled with a highly versatile, ing breakthrough in healthcare ness as a better alternative to launched the Maxy centre which The Reddington Hospital speedy and low dosage comput- in Nigeria. having to endure expensive provides specialist care in Den- has been in the forefront of pio- erized tomography CT scanner Olutunde Lalude Redding- and lengthy treatment options. tistry, Ear, Nose and Throat, neering many breakthroughs in that produces outstanding im- ton’s group medical director Screening services can provide Ophthalmology and Endos- healthcare in Nigeria including ages for clinician to report. said, this is a total body health early warning of potential prob- copy services, the launch of the the first digital Cardiac Catheri- The Lifescan full body, high screening service providing lems before they are evident Breast and Gynaecology Centre, sation facility in Nigeria and the quality, low dosage, digital im- early detection of critical con- especially for those with risk Nigeria’s first state of the art first closure of a hole in the heart aging scan delivers another first ditions and threatening illness factors. This simple, non-in- medical centre dedicated to in a child using non-surgical for the Reddington Healthcare especially in people with risk vasive and pain free screening women’s health and opened modern technology. Friday 23 June 2017 C002D5556 BUSINESS DAY 21 Hotels Mbadiwes set to unveil Top BusinessDay Partner Hotels

‘King Celia’ Hotels Novotel Port Harcourt Address: 3 Stadium Road Rumuomasi, Port Harcourt Rivers State, Stories by Tel: 0809 713 5734 OBINNA EMELIKE

n his quest to fulfill his parents dreams Transcorp Hilton Abuja and contributing to 1 Aguiyi Ironsi Street Maitama, Abuja the development of Tel: +234-708-060-3000 hospitality industry Iand tourism in Lagos State and Nigeria at large, Greg Ozumba Mbadiwe, former Nigerian Ambassador to Protea Hotel Apo Apart- the Republic of Congo and ments Address: Ahmadu Bello Way, a legal practitioner, with the Apo, Abuja support of the Mbadiwes, Tel: 09 480 1818 have launched KingCelia Hotels and Suites, a luxuri- ous hotel and tourist centre in the heart of Lagos. Hawthorn Suites by The five-star relaxation Wyndham Abuja centre situated at #8 Jibowu 1 Uke St, Garki, Abuja. Street, Yaba, according to the Tel: +234 9 4603900, +234 brains behind it, was part of 805 7522500 his desire to accomplish his parents, especially his fa- ther’s dream. “My venture into hospitality business is to make the dream of my fa- ther a reality. My late father Chida Hotel International wanted to build a hotel in our Address: Plot 224, Solomon hometown before his death, Lar Way, Utako, Abuja but the project is still await- Tel: 0810 871 8882 ing attention right now. Also, having partnered with some Congolese to set up Brassav- Renaissance Lagos Ikeja ille Beach Hotel, a relaxation, lived in this house. I also cating that Yaba was part of tural heritage we showcase grew up in this house. Nigeria’s political history. on our walls. Hotel I felt it is important to boast #38/40 Isaac John St, Ikeja the hospitality and tourism Yaba was the end of West- Speaking on the facili- “Located in two floors GRA100271, Ikeja of my country too with this ern region then and the ties and intending services are 50 luxury rooms rang- Tel: +234-908-780 5555 initiative”. beginning of Lagos. We to be provided for prospec- ing from standard, deluxe, Speaking on the impor- decided to reconstruct the tive customers, Hassan executive rooms and suites tance of the location of the house to a hotel and tour- Fawaz, general manager for guests. Other facilities hotel, Mbadiwe revealed ist centre in memory of our of the hotel, noted that the include well designed park- that the Yaba location is parents, Kingsley and Ce- luxurious edifice is ready ing space, 24hour electric- cilia Mbadiwe and also to to set a new standard in the NAF Conference Centre & historical, stressing that ity and room service, as Suits it was the centre of old complement the efforts of industry and the Nigerian well as, internet facility. For Plot 496, Ahmadu Bello Way, Lagos. “My siblings and I Lagos and Nigeria for hon- market with a distinct hotel recreation, we have swim- Gwarimpa ( near Cash & thought of immortalising ouring our dad.” experience rooted in qual- ming pool, gymnasium, Carry), Kado, Abuja. our parents in our father’s Mbadiwe also noted ity, excellence and culture. onsite bar and restaurant, first house located at Yaba that, the initiative, without “King Celia Hotel is very conference room, standard where he participated fully doubt, would also project unique. We plan to provide event center among oth- in Nigerian politics and the the values and great influ- our guests with an unforget- ers. Also, it is situated only pedigree of this house was ence of the geographical table experience matched five minutes away from the that he donated part of the area, mostly as a silicon val- by our very high standards Ozone Cinemas, and easily building to the national ley of Nigeria and also re- and fully equipped facilities accessible to the business Protea Hotel (GRA Ikeja) party, NPN then in 1979. It mind visitors with various to even challenge those on districts of Lagos such as GRA Ikeja would interest you to know displays of national leaders the Island. Another attrac- Ikeja, Victoria Island and that Alhaji Shehu Shagari and pictorial displays indi- tion is the rich national cul- Lekki,” he added.

Martinez takes over at Le Méridien Ogeyi Place Port Harcourt Protea Hotel (V/Island) Off Ajose Adeogun Street, V/ arriott Interna- cialization; pre-openings, Island tional has an- concept development, hotel nounced the operations, food and bever- appointment of age, luxury hotel and resort MFabien Martinez as the new alongside corporate sales and general manager for Le Me- marketing. ridien Ogeyi Place Hotel, Port Martinez comes with Gombe Jewel Hotel, 22, Nja- mena Street, off Aminu Kano Harcourt, River State. a wealth of experience in crescent Wuse 2, Abuja. In his position, he is re- brands such as Le Meridien sponsible for the day to day (Royal), Sheraton, and the management of the hotel Luxury Collection. and associates. Martinez pre- The team of Le Meri- viously worked as the hotel dien Ogeyi Place proudly manager for Radisson Blu welcomes Martinez and Hotel in the Philippines. congratulates him on his ap- The new general manager pointment besides pledging has over 20 years experience support. His extensive global in international hotel man- experience and positive atti- Radisson Blu Anchorage agement, as well as, extensive tude will be assets to Marriot Hotel 1A,Ozumba Mbadiwe,Victoria knowledge and expertise in International in Nigeria, and Fabien Martinez Island. the following areas of spe- Port Harcourt in particular. 22 BUSINESS DAY C002D5556 Friday 23 June 2017 Entertainment 10 Days in Sun City showcases charm of Sun City resort … as movie premieres nationwide today

Stories by OBINNA EMELIKE manager, Africa Sales and Mar- that caters to every need of the tailor-made experiences that last keting at Sun International, traveller. a lifetime, Raul mentioned”. owners of Sun City Resort, the “We are famously known as However,10 Days in Sun City unCity, South Africa’s 10 days in Sun City movie is an a world within a city because movie gives you a glimpse into best resort home to ideal platform to showcase the Sun City ideally caters to all the world within a city at Sun many thrilling activi- exceptional offerings at Sun the needs of a traveller offering City. ties with something International properties. for everyone to enjoy “Whether your journey takes Sis showcased in the latest Nige- you to Johannesburg, Cape rian movie titled 10 Days in Sun Town, North West or Port Eliza- City produced by award win- beth, all in South Africa, Sun ning comedian and actor, Ayo International has a substantial Makun, popularly known as AY. trip to Jamaica; his existing World presence of iconic properties The movie which has A- Guinness Book of Records movie, that will create the ideal hospi- list Nigerian actors including; urged Nigerians to go see the tality to suit your taste”, Jennifer Richard Mofe-Damijo; Adesua movie which he assured would said. Etomi; AY; Falz The Bad Guy and automatically inform their deci- Speaking further, Jennifer a host of others, is an action- sion to go holiday in the resort. explained, “The Maslow, our comedy which exposes the “Initially this movie was sup- business-friendly hotel in the opulence and grandeur beauty posed to be shot in Paris. How- heart of Johannesburg busi- of Sun City. ever, after my very first visit to ness district; Table Bay in Cape The movie premiere, which Sun City I changed my mind Town’s Victoria and Alfred wa- held at Federal Palace Hotel and recrafted the script to be terfront area; Sun Boardwalk in and Casino Lagos, a Sun In- in tune with what I saw at the Port Elizabeth, birth province of ternational property, brought resort. I bet you, when you see Mandela and of course Sun City together the Who Is Who in this movie which will be in the with the majestic opulence of the entertainment industry in cinemas from June 23 this year, The Palace of The Lost City will Nigeria. Sun City will definitely be the wow Nigerian travellers”. Speaking at the premiere, AY next holidays and celebrations Raul de Lima, general man- who is confident that the movie L-R: Raul de Lima, GM, Sun City Resort; Darkey Africa, South Africa Consul destination for you”, AY said. ager, Sun City, described the General in Lagos and Jennifer Beattie, Group Manager, Africa Sales & would shatter the earnings of A For Jennifer Beattie, group resort as one stop destination Marketing, Sun International at the premiere of the movie recently in Lagos. Red Bull Music Academy berths in Lagos …calls for application

fter conducting success- and Blinky Bill who will give a 22:00, showcasing their various must be submitted by midnight sicians meet a new generation, ful sessions around the fresh perspective on how they styles and representing different June 28, 2017. Selected applicants in a setting where both sides can globe, the Red Bull Music rose through their scenes and genres. will be contacted by July 8, 2017. learn from the other and celebrate Academy touches down the influences that helped shape To apply for the Red Bull Music Music makers are also invited music’s past, present and future. Ain Lagos for its first ever session in them as great artistes. The lectures Academy Lagos 2017, interested to apply for the Red Bull Music The musical styles represented West Africa from July 14-15, 2017. will be hosted by industry shak- artistes are advised to complete Academy which will host the next at the Academy are just as diverse #RBMALAGOS will be hosting a ers EKITI and Osagie Alonge. At the application form at http:// edition of its month-long music as the countries their weekend of lectures, workshops night, Guinness Book Record rbmalagos.com/apply.html and workshop and festival series in protagonists hail from - the mix and collaborations from the music holder, DJ Obi will share a set with send in their music demo and/ Berlin from September 8 to Octo- of sounds, skill sets and cultural community. Ekiti Sound System and Blinky or remix of William Onyeabor’s ber 12, 2018. After touching down backgrounds that make up each The Red Bull Music Academy Bill, for a block party at Bogobiri Fantastic Man (available for in cities across the globe includ- Academy is never quite the same. is a recognized global music in- on July 14th at 20:00 and the After download on the site) to hello@ ing; Tokyo, New York, Melbourne, It’s this unique combination of stitution committed to fostering Party at 1089 on July 15th from rbmalagos.com. Applications Cape Town, Paris, São Paulo and people, perspectives and environ- creativity in music. The world trav- Montréal, the Academy returns to ment that sees new musical ideas elling series of music workshops the place where it all began back take root, and flourish long after and festivals offers an exciting in 1998 to celebrate its 20th an- the Academy ends. Therefore, we platform for those who want to niversary. invite instrumentalists, producers, make a difference in today’s musi- Every Academy is a world of DJs, engineers and vocalists of all cal scene. its own, offering new insights levels of experience to apply. All The weekend will begin with and perspectives on sound as that is required is openness to col- introductory sessions by Nigeria’s artistes representing different laboration and an interest in where own RBMA Alumni, DjKlem and genres, countries and eras come music is heading. Kraftmatiks, as well as, Kenya’s together. 60 up-and-coming mu- As well, application form for Blinky Bill (formerly of Just A sicians are selected for each The Red Bull Academy Berlin Band) who will shed light on what edition and flown to that year’s 2018 can be downloaded from the Academy stands for and the host city, embarking on a creative the Academy website and must role it plays in bringing out prom- journey that many describe as be submitted between June 15 and ising music talent from all corners life-changing. At the Academy, September 4, 2017. of the world into the limelight. The they hear lectures from artists Each applicant must also sub- Academy is intended for anyone who have shaped music history, mit a musical demo, no longer with a passion for music. Whether exchange knowledge in all-night than 30 minutes. This can be up- you are a producer, vocalist, in- sessions in our custom-built stu- loaded at redbullmusicacademy. strumentalist, beat-maker, engi- dios and collaborate with their com/apply or mailed to us on a neer, songwriter or DJ, you have peers from opposite corners of the CD. The Red Bull Music Academy got a chance at being selected. globe, while the Academy simul- jury will announce the selected Over the course of the week- taneously programs a month-long applicants in early 2018. end, you will be able to sit in on series of public concerts and club RBMA has partnered with The lectures delivered by award win- nights across the city. It all makes Dreams Project for #RBMALAGOS ning singer song-writer Nneka for a place where influential mu- and its produced by Eclipse Live. ???

Friday 23 June 2017 C002D5556 BUSINESS DAY 23 Entertainment ISOKEN tops box office Business Etiquette on opening weekend with Janet Adetu

n Friday, June 16,, 2017, Iso- ken, the highly anticipated Nollywood Oblockbuster movie opened ’Business or and sold-out in cinemas nationwide toping the box office over Hollywood block- pleasure’ busters, ‘Wonder Women’, ‘The Mummy’ and ‘Pirates of the Caribbean’.The movie is produced and directed by few years ago I had how important the meeting ix. Remember who you first timer Jadesola Osiberu the opportunity to and how important the per- are addressing, if you do not and was released in Nigeria alike with Ojonugwa Ug- le Olukanni shined along- visit the continent son. Even when handshakes know their status just main- after an unprecedented re- boja of www.sundiatapost. side the more seasoned of Asia specifically are universally acceptable, the tain your politeness lease in 15 cinemas across com call it “Fresh and breath casts like Patrick Doyle, Tina ANew Delhi, India with my strength of your handshake, x. Through in the sur- the UK. of originality. Nothing was Mba and the collective tal- family. Though we had visited the use of one or two hands, prise factor by greeting in the The outstanding and en- forced, which validates the ent and genius of Dakore Singapore earlier India was the length of the shake, your common dialect if away from tertaining romantic com- fact that classy is not only Akande, Funke Akindele an entirely new experience. body language and posture home edy centered on the titular achieved with synthetics. and Joseph Benjamin. The It was interesting to see the are even more important than character, Isoken, played One could feel an African ingenious appeal of this different ways both men and the handshake itself. Basic Greeting Globally by Dakore Akande who has touch to a modern story, sig- movie lies in the serious women would greet every- We do live in a global vil- Nigeria: First name what appears to be a perfect nalling that we are no longer yet hilarious ways the issue where we went. lage which has become hy- basis not appropriate among life: beautiful, successful and in a hurry to lose ourselves of marriage and the pres- At the hotel, the service brid by the day. As an execu- the elderly. surrounded by great family to the fancy of the world – sure to be married in Nige- staff were so courteous, with tive or an individual the onus All Africa: Greetings and friends but is unmarried the western world to be pre- ria was undertaken. Isoken their two hands together and is on you to bear in mind are formal, time is not always at 34 in a culture obsessed cise”. Ayodeji Rotinwa, a cin- captures the way our culture a polite bow, one to say hello the act of making others feel well observed with marriage. Things come ema goer on twitter wrote, “If lays strong emphasis on the and the other to recognize comfortable around you. How United Kingdom: to a head at her younger sis- wedding romcom becomes need for women to be mar- our presence. I wondered you treat others, the way you Acknowledge a formal hand ter’s wedding when her over- its own genre – as is now ried at a particular age, our whether this was just be- conduct and project yourself shake with personal space. bearing mother (Tina Mba) likely in Nigerian cinema - cultural expectations and cause we were guests at the in any situation determines France: thrusts her into an orches- #IsokenTheMovie should be racial stereotypes. hotel; but surprisingly we your level of polish. Every- A kiss on both cheeks is trated matchmaking with the guide for all future films”. The movie which was saw a lot of this everywhere. body is allowed an awkward customary in social settings the ultimate Edo man, Osaze Another cinema goer wrote produced to the highest in- The people were indeed very moment or two, but your best Ghana: In greeting (Joseph Benjamin). on instagram, “Very beauti- ternational standards is a friendly, polite, respectful and judgement of any situation is a group of people start greet- The film is has been re- ful movie, definitely watch- film for all. It is still available considerate. what matters most. You do not ing from your left hand side to ceived widespread praise ing it again”. to all lovers of good movies As it has not been my cus- want to be seen hugging when right side from audiences and critics Movie newcomer, Bolan- in all cinemas nationwide. tom to bow and with my two indeed you should be merely Middle East: Eye con- hands, all I could do was shaking. These are part of the tact is important, Women do smile, show good eye contact and express a clear appre- ciation of these greetings. The Top 10 contestants make GCGT finals question on my mind though was ‘’ should I have done likewise?’’ …Beat 5,000 others to qualify Well, India happens to be a nation of multiple mil- nately he ran out of data. to the Holy Spirit – the rea- MABEL DIMMA lions with hundreds of differ- But as all things work to- son for my confidence.” ing tribes every 200km with gether for God’s Children, This rap artiste who wrote varying languages, food and hen God’s Chil- he decided to give it anoth- his first song at age 5 sees him- lifestyles as well as greeting dren Great Tal- er try this year and today self winning souls for Christ styles. At the Taj Mahal, the ent, Season 7 Damilare is among the top through the ministration of his people of the town of Agra announced 10 finalists contesting for rap songs. were also totally different. Wauditions a few months ago, the top prize. Nengi Jaja As we travel the world, we over 5,000 individual from Emmanuel Osahor Port Harcourt has birthed experience so many styles of different parts of Nigeria ap- Emmanuel, 19 danced a star with Nengi! The 11-year- greeting, be it a hug, a kiss, a plied to show off their talents so well at the regional audi- old’s strong and smooth vo- bow, or the global handshake, with the aim of winning the tions that Kaffy even offered cal range never fails to get they are all governed by the well- honed etiquette finesse not shake hands with men. mouth-watering grand prize to dance with him. The Delta the audience on their feet as culture of the environment. needed to build your powerful China: The longer of N250m management deal, State-born talent has been he effortlessly shines at each Knowing how to greet in such presence in business and in your handshake the better N10m cash prize and a brand dancing professionally since performance. Some even say foreign countries is important your social life. Korea: S h a k e new car. he was 15. When asked what his pitch perfect voice gives a especially where you need to Greeting Guidelines: with both hands After weeks of auditions, dancing meant to him, his re- reverberating thrill. maintain harmony, establish i. Don’t be shy to be Mexico: Smoking intensive sessions in the boot sponse was epic; “Dancing is Esther Benyeogo a business relationship and the first to say hello is generally permitted in busi- camp and keenly contested Emmanuel. I say things I can’t As a child, Esther’s love portray honesty, trustworthi- ii. In introducing your- ness setting . semi-final show, 10 contes- really put into words with for music always got the at- ness and professionalism. self try to acknowledge using Germany: Punctual- tants qualified for the GCGT7 dance.” tention of the neighbours In Africa, depending on your first name first followed ity is very important. Women grand finale holding this Sat- Joseph Odi who could hear her sing and what part of the continent you by our surname are expected to extend their urday, 24th June 2017 at Eko Joseph is excellent and pre- shout from the comfort of would kiss both cheeks once iii. Be clear on your hand first. Convention Centre, Eko Hotel cise on the drums; not missing their homes. Since discover- or twice for instance in Ghana honorific if it is considered Japan: The bow is tradi- & Suites, Lagos, and viewed a beat even with blindfolds. ing her talent at 13 there has or Kenya maybe a kiss on ei- important tional, hands flat against the live. Though still working on his ad- been no stopping her. The ther cheek upto three moves, iv. Don’t be the weak- thighs with low eye gaze. Meet the finalists as they mission into a higher institute 19-year-old undergraduate while in Nigeria depending est link, use positive body Australia: Solid continue to compete for pub- of learning, the Port Harcourt– of the University of Benin on the specific social setting language to express your style handshake with good eye lic votes to win the title. born drummer says winning takes on a very different per- you may just hug once, or of- v. Be vigilant of your contact Damilare Bafunso: the competition will mean the sonality when she graces the fer a courtesy bow if an older environment and follow suit. United States: A l w a y s Born in Lagos, 19-year- world to him. stage. person. vi. In a business setting have your business cards at old Dami who’s currently Goodluck Enoch Other top 10 contes- The advent of global busi- extend your hand to complete any meeting in his 3rd year, studying 9-year-old Goodluck tants include; Olawonuola ness makes it even more per- the greeting Canada: Larger Urban & Regional Plan- from Abuja has the com- Kehinde, a primary 4 pupil; tinent to know the business vii. In a social setting personal space when greet- ning at University of Lagos bined confidence of 10 su- 10-year old Sophia Alber; culture and greeting styles render a contagious smile it ing. Cultural etiquette is con- is a whiz kid on the saxo- perstars as his stage pres- Deborah Oladipupo, the only of the host country. Some- will take you far sidered important. phone. ence belies his young age. female drummer to come this times you may get away with viii. Do not blow away Italy: No business done In the last edition, he He says, “While preparing far in the competition and An- formality and the universal your greeting to the wind, add between middle of July to had tried entering himself for the semi-finals, I had derson Peter, an 8 year old Pri- handshake depending on direct eye and stay focused middle of August. and his sister but unfortu- committed all the activities mary 4 pupil. 24 BUSINESS DAY C002D5556 Friday 23 June 2017 Harvard Business Review ManagementDigest

What does whole foods get from Amazon? Alexa, for starters

ll the talk about Ama- zon.com’s acquisition of Whole Foods Maket has been about how the deal will benefit AAmazon’s “sell everything” strat- egy. But what if we turn the ques- tion around? What does this deal do to Whole Foods’ “sell at a high price” strategy? Whole Foods has tremendous brand equity and a socially re- sponsible supply chain. It has been struggling with its physi- cal footprint — experimenting with smaller stores, reordering its spaces and inventory, and competing with the organic food lines introduced by much larger supermarket chains. That sounds like a losing battle, which has been reflected in its stock performance. Enter Amazon’s Alexa. People who have it, love it. But ask them what it does for them, and you get a grab bag of decidedly non- killer apps. Weather. Traffic. Music. News bits. Yesterday I heard the latest: Using Alexa as a kitchen timer. But yes, it is cool. And, more important, it sits at your beck and call, usually in your kitchen. If you are Whole Foods, you want to own Alexa. Buying grocer- But isn’t Amazon the acquirer sales than Amazon does.) Whole Foods’ inventory? Can the an interesting challenger, though ies sight unseen from Alexa might and Whole Foods the target? Yes, From the target’s point of view, stores be transformed into cashier- still nascent. not sound immediately appealing but that’s just on the bankers’ led- the logic of this deal depends on less, wireless purchasing markets? That leaves Google and Apple ... — but Whole Foods’ brand engen- ger. When two companies merge, whether Whole Foods can present Can Whole Foods’ own supply and whichever grocer they decide ders trust in the products it sells. I’d regardless of who technically its offerings attractively through chain be made more efficient with to buy, if they do. When a deal like order pretty much any kind of food acquires whom, their assets are Alexa, integrate its stores and sup- Amazon’s logistics chops? How this one shakes up an industry, it from Alexa sight unseen if I knew bundled together and their capa- ply chain with Amazon’s growing long will all this take? is common to see rivals jump into it was coming from Whole Foods. bilities can be remixed, much like logistics business and, down the Another way to evaluate the the fray to form their own combi- This could be a solution to the how music tracks are combined to road, put to use Amazon’s powerful most promising formula is to ask nations. But although Google and challenges posed to the grocery produce a new song. This means data analytics engine. what it will take for rivals to match Apple both have their own versions retail business by millennials. that you can look at an acquisi- One way to evaluate which the new asset bundle just cre- of Alexa, they haven’t signaled These lovers of good food aren’t tion from the point of view of the formula for remixing these assets ated. The Walmart-Jet.com pairing much interest in selling nondigital as likely to have cars, and they target just as well as from that of is most promising is to ask what it would probably not be in direct stuff, let alone stuff with expiration spend most of their time working the acquirer. will take to integrate them in the competition with an eventual dates. And if they did want to enter or playing rather than shopping or Looked at from the acquirer’s merger. Before synergies can be Whole Foods-Alexa collaboration, now, would Costco Wholesale or housekeeping. They trust the Ama- point of view, the logic of the Ama- realized (the proverbial 1+1=3), even if the press likes the sumo Kroger really be a good match? My zon brand not because it sells stuff zon-Whole Foods merger depends the entities have to act as one and wrestling between Walmart and bet is that the Whole Foods-Alexa cheaply (it doesn’t) but because it on whether Amazon can dominate govern their joint activities well Amazon. These pairs have different deal is in a unique competitive sells reliable quality with minimal groceries, use Whole Foods real (1+1=1 is the management equa- markets, different brand profiles position and will stay that way hassle, and because, of course, it estate to deliver or offer goods of tion, you might say). and different online skills. Peapod for now. is a digital native. None of the es- all sorts or perhaps add some real What assets need to be com- is a closer rival, but how can it tablished supermarket chains can profits to the bottom line. (For all bined in this new bundle, or what earn the cachet of Whole Foods (Benjamin Gomes-Casseres is a claim these millennial benefits. its troubles, Whole Foods still de- needs to be coordinated tightly or Alexa’s perch in the kitchen? professor at the International Busi- Now Whole Foods can. livers higher returns on assets and within the bundle? Can Alexa sell The new German entrant Lidl is ness School, Brandeis University.)

c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate Friday 23 June 2017 C002D5556 BUSINESS DAY 25 Leading Woman Divine Ndhlukula, soaring without fear in a male dominated industry ivine Ndhlukula it to grow. founded SECU- “I have never really been a RICO Security half-measure kind of person Services from and this period of my life was humble begin- characterised by me trying to Dnings in Zimbabwe in 1998. take on everything, all at once Divine identified a need in the even when this meant swimming market for a quality oriented against the stream” she says. security company and she has Back then, the company fo- driven SECURICO to become the cused on offering uniformed market leader in Zimbabwe. She guarding services, eventually has tackled a previously male- growing to the point where it dominated industry head on could also offer cash and as- and her business success story sets–in–transit services by 2002. is nothing short of remarkable Today, SECURICO has grown - marking her as one of Africa’s exponentially and is now the most tenacious and inspiring market leader in this service in women entrepreneurs. She has Zimbabwe with a fleet of numer- gained Africa-wide recognition ous armoured vehicles. for her entrepreneurial skills, The year 1992 saw her foray having built an over 4,000 strong into bigger business when she employee base from the humble used funds she had accumulated beginning of her garage. to save her late father’s land, SECURICO today provides its Zvikomborero Farms, from be- clients with a complete security ing auctioned off. As custom solution - uniformed armed of- dictated, after her father’s death, ficers, armoured vehicles for her brother had inherited the transportation of valuables, on- farm by virtue of him being male, site banking, trained guard dogs, but he was unable to service the and electronic security systems. loan on it. When Ndhlukula suc- The company also does private cessfully saved it, it became hers. investigations, employee vetting, The timing for her farming and security consulting. career was not favourable, how- In 2012, Forbes magazine ever, as at the time there was recognised her business prow- a drought and her maize crop ess, naming her as one of Africa’s failed. In 1995 she had to return most successful women. to her previous company in the Born in 1960 in a rural Gutu, insurance industry. But over Divine has multiple qualifica- the need to create a decent and were not living up to the needs ensure the services provided the years Divine Ndhlukula has tions, her first being an ac- secure livelihood for her family. of the clients. The industry was were of the highest professional managed to grow Zvikomborero countancy diploma. She went Her quest to start and run her renowned for wild cat strikes standard, all despite being a Farms into a profitable, diverse on to receive an MBA from own business stayed with her and guards generally were per- woman herself, and employing farming business that today is Midlands State University and throughout her formative years ceived as the lowly-paid in any women as security guards in involved in cattle, goats, eggs, in the 1980s worked in indus- when she was studying and sector. I wanted to change the the business. Initially, clients crops and foraging, and have tries spanning broadcasting (at working to build her career. She perceptions and create a niche needed a considerable amount started integration along the the Zimbabwean Broadcasting set out to learn all the critical ele- in which people could carve out of persuasion to accept her whole value chain. In light of Corporation), investment (Old ments needed to run a success- a career and I knew I needed to business model and approach, climate change and environ- Mutual Group) and insurance ful business, undertaking vari- go in with a different approach particularly when it came to hir- ment awareness, the farm busi- (Intermarket Insurance). As ous development programmes and that approach was going to ing women guards to provide key ness has incorporated climate early as in high school, Divine along the way, enrolling on an make the difference, the people security services to their busi- resilience strategies by harness- was already thinking about her Entrepreneurial Development had to be key or central feature nesses and industry interests. ing water wherever there is own business. She started by Programme in 1995. At the same of the vision.” However, she persisted and to- runoff, by reinforcing cultivated buying clothing from factories time, she started researching Divine started up her new day, women are widely accepted legumes and forage plants. In and selling to her colleagues at and tracking various entrepre- business venture, SECURICO in in the security services industry. addition, there is an ecosystem work and later bought a truck neurial opportunities in the local December 1998, using a small Her other challenge was her lack that brings down the cost of and rented it out to a construc- marketplace, eventually in 1998 cottage on her property as an of specific industry knowledge production where chicken waste tion company. She also cut her seeing a potential business op- office, equipped with one desk, on running a business in the is fed to cattle and goats whose teeth in a catering business. portunity in the security services and staffed by three security highly specialized security ser- manure feed crop produce that As a woman who has con- sector. Divine had identified operatives and one administra- vices industry, but she learned feed the chickens. quered a male-dominated in- what she saw as glaring service tor in addition to herself. She practically on the job, innovat- It’s Divine’s experience in the dustry, Ndhlukula wants other delivery and professionalism did all the office administrative ing as she went and making early days of running Zvikombo- women to succeed and fulfill gaps in the private security sec- work, the financial accounting, significant changes to the way rero Farms that prompted her to their potential, whether in their tor, inspiring her to create and training, supervising and de- the business was traditionally add an education component to career goals, home life or com- build a new type of security ploying her security guards us- run, as a result out-performing the business. The School of Farm- munity service. As a prominent company with a difference. She ing her one vehicle. In the early the competition along the way. ing Excellence offers education figure in business on the Afri- was also motivated by a desire to days, her business encountered Her final challenge was launch- and skills for those looking to can continent, her insights are empower previously disadvan- a number of major challenges, ing a new security services brand pursue farming as a business. sought-after. To date, she has taged women in Zimbabwe who the first being that the security in a marketplace that had been “I always say there is no easy presented over a hundred papers were not able to access opportu- sector in Zimbabwe was histori- dominated by a small number road to anywhere worth going. to SMEs and top executives. nities for formal employment, cally very male dominated, and of big name players for so many One’s got to apply themselves. From a young age, Divine had recognizing that the security there was a general perception years. Funding in the early years One’s got to put in that extra ef- always told herself and everyone sector had the potential to be a that security was not a job for was also an issue, but Divine fort. One’s got to have the disci- around her that she would be an large-scale employer. women. Divine’s first challenge took a decision to make do with pline to be able to say: Look, I’ve entrepreneur and run her own According to her, “I thought was to convince potential clients the small amount of funding she made a bit of money, invest back large business in the future. This there was a gap in the industry. that she could successfully run a had, and ploughing back all the the money into the business so was driven by her recognition of Companies that were there security services business, and profits into the business to help that it grows.” Says Divine. 26 BUSINESS DAY Friday 23 June 2017 Family A moment that changed me VICTORIA ANDERSON David Cameron got me and my dad together he British pub- it was positive. Thanks to A moment that changed lic tends, as a the Daily Mail and, by logi- me – listening to David rule, to dislike cal extension, our prime Bowie’s Hunky Dory toffs. It is why minister, I was finally able But despite this gradual foxhunting, be- to meet my male progeni- disintegration, there re- Ting symbolic of a deeply tor. And there aren’t many mains a magma-grade entrenched class antago- people who can make that core of strength and a reli- nism, occasionally esca- particular claim. gious certitude that would lates to a national crisis. David Cameron ​has shake the archbishop of And it’s why tales of David been outlining his plans Canterbury right down to Cameron’s alleged antics to enrol Muslim women his socks. The name of that during his Oxford days on compulsory English community? Peckham, have not gone down at all language learning pro- Jamaica. And I do believe well with a stony-faced grammes or face deporta- Del Boy would approve. public. tion. There is also renewed After all, he’s another self- “Pig-gate”, ​last Septem- talk of the soon-to-be im- made man. ber, was only the most plemented bill that will Nowadays my father recent of these stories. set a pay threshold for and I retain a more regu- But despite my sympathy non-EU migrants, where lar relationship with each for both pigs and foxes I anyone earning under other than he does with feel myself inescapably, £35,000 could be forcibly David Cameron – although even umbilically connect- repatriated. should DC ever feel like ed to the “Dave” stories Of course, none of this dropping in again, he’d be that have continued to Victoria Anderson, with her father Hugh, left. has any direct bearing on made ever so welcome. drip from his time spent my dad, who makes a point Thirty years on, wealthy around Oxford’s dreaming of reading the Daily Mail ex-public school students demonstrated how “cool” Until this Daily Mail ar- “South American” and re- even when he isn’t in it. still gravitate to my father’s spires. Cameron was, and how he ticle, I had never even seen fusing to be drawn further. In the run-up to the Like so many immigrants, bar. I could suggest that, could hold his own in any a picture of my hitherto But it was she who duly he had no money when he for some, it’s just an exotic 2010 election, a less sen- conversation about the abstract father. I knew his confirmed, looking some- sational story of Dave’s came to this country; he form of “slumming it” – but endlessly complex poly- name; my mother had told what paler than usual, that came from a remote rural that would only make me glory days emerged, first rhythms of jazz and reg- me that much. But until David Cameron’s chum in via Channel 4 and then community in Jamaica that sound cynical. gae music, were no doubt I was in my mid-teens, I the newspaper was, as a to this day has little access By the way, Dave – and from the Daily Mail. This intended to paint Call-Me- didn’t even know he was matter of fact, my father. was the story of Dave’s to any of the opportuni- the Daily Mail – should Dave in a friendlier, more Jamaican, let alone that he You will imagine this ties or amenities that we know that my father is not, so-called Rasta friend, inclusive light. Maybe it had friends in such high came as a shock; but things Hugh “Andy” Anderson, take for granted, such as in fact, a Rasta. He smokes even helped him win the places. could have been worse. running water, transport Cuban cigars, not ganja, in whose Oxford bar Dave election. Who knows? In those days, there was Imagine finding out that, and his Bullingdon chums links, healthcare or even and he is a licensed bar- For me, though, there still some shame attached say, George Osborne was free education. The com- owner; Rastafarians do not spent quality time during was a more personal to racially mixed relation- your father. For me, that the 1980s. munity is depleted further consume alcohol – or pork, impact. Because Hugh ships. My (Welsh) mother really would be horrific. by the continual drain of come to that. Accounts of this un- “Andy” Anderson is my was vague on the topic, cit- And, in the end it was fine. likely pairing, which young people leaving to Courtesy of Guardian dad. ing my father’s origins as It was good; it was great; seek a better life. UK

Parenting in the 21st century Nigeria’s destiny lies in our hands with Sola Oguche – Agudah rowing up, I was glad ally wanted to give them Their parents of course! deliberate attempt to com- Website: www.solaagudah.org; Email: [email protected] to be a Nigerian. I Hebrew names, which are Children pick up what pletely erase our culture Facebook: solaogucheagudah; Instagram: solaogucheagudah Gdo not know why, their second names by the they see around them; the and heritage from our chil- Twitter: solaogucheagudah but it was just natural for way. My husband told me constant complaints, the dren. me to love my country and something that has stayed rude behavior, the constant People can never apply be proud of my heritage. with me ever since. He Nigeria for a reason. Think ness? What are your work Something sad is happen- said: “The names of our about this: Do you disown ethics? Do you clean your ing though. As I look around children reflect their heri- your child because he has gutters? Do you treat others and talk to people, I real- tage. When my children’s gone wayward? No, you fairly? My children know ize that our patriotism has names are called, I want pull him towards you. The that we do not litter. They dwindled; our sense of loy- them to remember where same way, do we give up know that they ought to alty is nonexistent. Nigeria they are from.”It is impor- on our heritage and all we greet others. My son knows is no longer important to us. tant to note though that believe in because a group that he should let the lady The saddest thing is that this Nigeria will grow worse of people have made it their go first. They do not always attitude has been passed on if we do not correct the personal money making get it right but I am not giv- to our children. malady that has eroded business? No! ing up. A part of me under- our system. Our children are the fu- When you try to protect stands the reason for our This is my school of ture of our nation. One way the integrity of your nation disillusionment. Things thought. I agree that things of rebuilding this nation is by your actions, it sends a are not the way they should are not the way they should by helping our children see message to your children be. People in government be in Nigeria, but what are that it is their responsibility that Nigeria is important are not interested in the we as individuals doing to to contribute to the well- and worth fighting for. I am people they serve and life, change the way things are? being of Nigeria. not saying it is easy, but it as we know it, has become The whole government How do we achieve takes strength to do what the survival of the stron- makes up for less than 2% this? First things first, is right no matter how dif- gest. We have a country of our whole population. build your own part of the ficult. where things have gone What are you doing in your fence. Not everyone can be Secondly, it is time to systematically wrong. To sector to improve things a politician but you can do teach the values again. protect ourselves, more and make sure that your your part where you are. I What defines a nation, people are giving birth to own sphere of influence is like the story of a young are the values that they their children abroad to protected? man called Nehemiah in subscribe to. Teach the provide them with more I had reason to worry bickering, all these do not themselves to something the Bible. He wanted to value of hard work and options; more children when I started taking my escape your children’s at- they do not believe in. If rebuild the walls of Jeru- respect for elders. Teach are being sent abroad from Sunday school class in tention. children think that Nigeria salem so he came up with them to do things right. secondary school to give church a while ago. The How many of our chil- is crap, then they do not a fantastic strategy. He Teach them to be on time. them an edge. People have age group was (10-12). I was dren know Nigerian his- want to be a part of it. This asked everyone to build It is our responsibility to lost faith in a country that teaching a group of children tory? How many of our is another school of thought their own part of the wall. reignite in the hearts of they once believed in. who hated and disliked children can speak their I have. God put us in Nigeria Everyone was expected our children, the love of a I remember when their country. There was no dialects? How many of our for a reason. We could have to build their own sector. country long lost. my children were to be sense of loyalty or patrio- children can eat our meals? been born in any part of the That is our responsibility. The future of Nigeria is in named after birth. I re- tism. Who put that there? It is almost like there is a world but we were born in How do you run your busi- our hands. Friday 23 June 2017 C002D5556 BUSINESS DAY 27 Sports GTBank- Ogun State Principal’s Cup Season 5 reaches remarkable final …As teams battle for the coveted trophy SuperSport gets broadcast rights ANTHONY NLEBEM & HEZRON ATUNDE for UEFA Euro his fifth season of the GTBank’s spon- sored Ogun State football actions Principal’s cup, has produced an excit- uperSport has scored Ting array of football skills and broadcast rights on all talent, beyond the expectations Splatforms (including tele- of fans and spectators. vision, internet and mobile) to After incredible matches an array of major international and varying reactions - upsets, football, including the UEFA surprises, fantastic goals and excitement that came from the Euro 2020 Championship as well 8 matches played at the Ogun as the UEFA Euro 2020 Qualifiers State Principals Cup (Season and the European qualifiers 5) quarter finals in MKO Abiola for the 2022 FIFA World Cup in Stadium Abeokuta last week Qatar. Monday 12th & Tuesday 13th In addition, there’s anoth- June, 2017, to produce the 8 er jewel in the football crown teams that played in the semi- finals. with the all-new UEFA Nations From results of the semi- League, a new competition to finals that were played Tuesday be contested by the national 20th June 2017 the tournament of Apostles, Ijebu Ode after Ipara Community Grammar opment of life skills and this teams of the 55 member asso- is set for the grand finale in the playing a very competitive 90 School, Ipara dispatched Ijebu competition paves the way ciations of UEFA, also signed by both categories. minutes, leaving Muslim High Ode Grammar School, Ijebu for youths to cultivate their School, Isolu and the Iko Gate- Ode 2-0 to book ticket to the sporting talents and aptitudes, SuperSport. The female matches that These acquisitions guarantee were played in the semifinals, way Grammar School girls in finals. while fostering and building a were Makun High School, the battle for the much coveted With results from the semifi- healthier lifestyle at a critical major European football for Sagamu versus Muslim High trophy. nals games, Pakoto High School, stage in their lives.” He further each season from 2018 through School, Isolu. The game ended In the first game in the male Ifo will battle Ipara Community stated that, “We are thrilled by to 2022. in a goalless draw and lead to category boys from Pakoto High Grammar School, Ipara in final the outstanding performances “UEFA is happy to continue penalty shot out, where Muslim School, ifo stormed the MKO game for the coveted trophy in in the competition thus far and and further strengthen its rela- High won on penalties with a Abiola Stadium in Abeokuta to the male category. remain committed to providing take their ticket to the finals in Commenting on the com- an avenue for students to show- tionship with Supersport,’’ said single goal margin of 4-3. Guy-Laurent Epstein, Manag- In the second game, Iko a highly contested game where petition, Segun Agbaje, the case their talents and passion Gateway Grammar School they had a slim victory of 2-1 Managing Director of Guar- for the game of football even as ing Director Marketing at UEFA had a single goal victory over over the boys form Anglican anty Trust Bank plc, said; “Sport they remain committed to their Events SA. “Supersport is a long- Catholic girls from Our Ladies Grammar School, Ota. plays a major role in the devel- academics.” standing UEFA partner and we are confident SuperSport will deliver great coverage and pro- motion of the UEFA 2018-2022 Rohr’s trip to Russia will help Nigeria cage Cameroun- NFF national team football portfo- lio to fans across Sub-Saharan he Nigeria Football is that Cameroun played a Africa.” Federation (NFF) is compact game. I will watch UEFA Euro 2020, in particular, confident that its de- them in their remaining two cision of dispatching matches against Australia and is shaping as a milestone event TSuper Eagles Technical Adviser, Germany, but from the look of given that it will celebrate the Gernot Rohr, to Russia to spy things, I don’t see Cameroun 60th birthday of the European on the Indomitable Lions of stopping the Eagles. Our defeat championship and will, unusu- Cameroun at the ongoing FIFA to South Africa has thought us ally, be held in 13 cities in 13 Confederation Cup would pay a big lesson.” different European countries. off in a big way in their 2018 Meanwhile, Rohr is expect- The European qualifiers will FIFA World Cup qualifier in ed back in Nigeria to help August. prepare the home-based play- also offer high-quality action as The Eagles are in a double ers in their CHAN qualifiers 55 teams chase down 24 spots header World Cup qualifier against the winner of the match available for the championship. against the African champions, between Togo/Benin Republic This will be played from March Cameroun, on August 28 and on August 10 and 17. 2019 to March 2020. September 5 in Port Harcourt Super Eagles’ Media Officer, “These are tremendous ac- and Limbe respectively. Toyin Ibitoye revealed that quisitions,” said Gideon Kho- The Chairman, NFF Techni- Rohr had promised to return cal and Development Commit- soon after his spy-mission in bane, chief executive of SuperS- tee, Chris Green confirmed this Russia because he wants to be port. “The European champion- newsmen that the committee part of the home-based Eagles’ ship traditionally energises our decided to apply to the NFF for preparation for the CHAN viewers who thrive on watching Rohr to go to Russia the same qualifiers. the superstars in unrelenting way it did during the AFCON Gernot Rohr, Super Eagles Technical Adviser. “The home-based Eagles competition. The UEFA Nations championship in Gabon so will be handled by coach Sal- League is bound to develop an that the Franco-German Coach isu Yusuf, but Rohr is eager can gather enough first hand on Sunday in their first match. travel down to Port Harcourt to be part of the preparation avid following, too, and Super- information about the African Green said that Cameroo- on August 28 saying: “I watched because he wants to use the Sport looks forward to adding champions. nians would find the Eagles a their match against Chile and opportunity to see the players,” this to our already substantial Cameroun lost 0-2 to Chile tough nut to crack when they my assessment of the match Ibitoye said. football offering.” 28 BUSINESS DAY C002D5556 Friday 23 June 2017 GOVERNMENT

Managing BUSINESS Interview with Public Sector Leaders We are consciously investing in infrastructure to make Akwa Ibom investors’ haven Governor UDOM EMMANUEL of Akwa Ibom State recently presented his midterm report as it were when he marked his second anniversary. Charles Udoh, commissioner for information and strategy in this interview with JOHN OSADOLOR and ANIEFIOK UDONQUAK gives a highlight of the major achievements of the state government in the last two years. Excerpts.

hat would you con- directly and the families whose lives a back-up plan so that at any given sider to be the ma- would be touched. That is a massive time we have two runways and we jor achievements opportunity for our people. Today we are currently expanding the terminal of the Akwa Ibom are talking about the meter produc- building to accommodate more pas- State Government tion factory. We are proactive, we are sengers. All this is geared towards in the last two years? building a meter production factory opening up the investment window, WLet me start from the basic ones, in Akwa Ibom State because we know making the environment conducive today Akwa Ibom State stands as that there is a gap, all these things we for investors who graciously see Akwa one of the pinnacles of foreign direct are doing we know that there are gaps Ibom State as a potential destination investments into Nigeria, the National and we are trying to bridge those gaps. for investment. Bureau of Statistics lends credence We are producing pencils today, if you to this in their publication that rated check, you can see how much Nigeria In what particular sectors is Akwa Ibom only second behind Lagos spends importing pencils and tooth- the state government seeking State. But I always choose to leave pick. What does it take to produce investors? Lagos State aside because Lagos State these things? Today we have a cottage The opportunities are enormous is in a class of its own; it is a mini Ni- industry that produces pencils and and I would not want to be limited to geria. If you take Lagos State out of the toothpick and the question is that a particular sector. Take agriculture equation, Akwa Ibom State attracted what are doing with cottage indus- for instance, few years ago, not many the highest volume of Foreign Direct tries? We are trying to ensure that we would believe that cucumber could Investment in Nigeria in 2016 and if set up those industries where they thrive in Akwa Ibom, that you could you also consider that our revenue have shared services which would be have tomatoes planted here. That is inflow has dwindling drastically, our cheaper to run. The pencil and the the beauty of Akwa Ibom State. Our Internally Generated Revenue (IGR) toothpick factory is housed under one land, our weather, our climate is has also been impacted and you also building, so they share cost of electric- such that food crops can grow all year you know that the main source of ity and other services. It is cheaper round. It is an enormous field that income for the state comes from oil to run them as such. Today we are you can tap into. From agriculture, revenue which continuously in the supplying pencils to some states of industrial development to power few years has been on the decrease, oil the federation and the pencils are pro- and education, in fact every sector of production has decreased, the price of duced from old newspapers. Look at the economy is suitable for investors oil has decreased, that has ultimately the value chain, for instance, it means to come in, even tourism. Today we affected earnings from crude oil. This that the vendor who sells newspaper, talk about medical tourism but we means that the economy of Akwa at the end of the day instead of going do have educational tourism here Ibom State has taken a direct hit but home frustrated; he has where to sell where children from neighbouring despite that Akwa Ibom State stands the leftovers. We are using recycled states come here for the free and tall as one of the few states in Nigeria nature which makes it environment- compulsory education scheme of that is up to date in terms of payment friendly. That factory might be cottage the state government. As a state, we of salaries. Akwa Ibom state stands tall today but by the time we are moving would not chase them out because in terms of providing basic amenities. step by step, we will expand and the if you train your children but you do In Akwa Ibom we preach the gospel capacity will grow. We start small and not train your neighbors’ children , of people oriented government, we grow big. One of the major challenges your children are in danger. So we are preach the gospel of sustainable de- Udom Emmanuel that industrialisation has faced in allowing children from neighbouring velopment. Education is still free at Nigeria has been when you start you states to benefit from free education in basic level and compulsory too. The rural areas to allow people to produce industries die. Today, we are build- want to run without crawling. When Akwa Ibom State. Also look at medical State government spends N600 mil- and evacuate them to the commercial ing industries that are 100 percent you have those teething problems and tourism, we have a specialist hospital , lion every year to pay the WAEC fees centres of the state. We are building a owned by private investors who bring you cannot solve them, the industries the best equipped around here. Many for indigenes of the state and Medi- power plant which produces over 191 millions of dollars to invest in Akwa go under. We are starting small but Nigerians travel abroad for Medicare; care for certain category of people MW of electricity. People may say why Ibom State,that shows some level of we shall increase capacity in the long some of the hospitals are not as good is still free. If you add this to the fact are you investing in power, is that your confidence in the government of the run and expand those industries to as what we have here. The facilities that we are focusing on industrialisa- business and we say look, we have to day. Talking about the Syringe factory, optimum capacity. We also building and personnel that we have at Ibom tion, But for you to attain the height of drive industrialisation, we need to it is the biggest in Africa, when it finally flour mills, we all know the value of Specialist Hospital is one of the best. industrialisation, your need to provide create that enabling environment. comes on stream that will be the num- flour mills. We have a coconut planta- Somebody who needs specialist treat- the enabling environment, you need The Nigeria police recently indicated ber syringe factory in Africa. We are tion spanning three local government ment, you do not need to go abroad, to provide access roads, you need to that Akwa Ibom State has the lowest building a syringe factory that would areas and right now we have flagged come to Akwa Ibom State and get the provide security, and power has a crime index in Nigeria and that is not produce 400 million syringes annually off the coconut refinery. Remember same result. So the opportunities are major role to play. something that happens by mistake. with a capacity to expand it to one that coconut oil is being seen as next so enormous. When it comes to recre- This is something that happens by billion syringes per annum without to crude oil. We have planted over 2 ation, we have a five star hotel and the In what specific sectors would design because we have consciously building additional structures. Right million coconut seedlings. When the second one in Ikot Ekpene is going to you think the achievements have invested time, energy and resources now we have eight production lines coconut trees begin to mature, we begin operations soon. The idea is to been very visible? into providing security for the state installed ready to roll. need to begin the refinery and that is open up the state; there is peace and Today we have constructed over to make it safe for investors. All this another huge opportunity. It means serenity here; you can come here for 700 kilometres of roads and these is geared towards attracting invest- What is unique about the sy- that Akwa Ibom will be earning more your holidays. We also have a fantastic are not just roads for the fancy of it; ment to the state. Nobody will come ringe factory and why is the state in terms of Internally Generated Rev- beach, one of the cleanest along the these are economic roads linking the to the local environment to invest if government going into partner- enue. Today we struggle because the West coast of Africa, the Ibeno Beach. major economic nerve centres of the he does not trust you and if he does ship to build factories? major economic activities are centred We want to drive tourism traffic. state with the major agricultural nerve not have confidence in the leadership We are a country that is approach- on government but we want this to centres of the state. Opening up access of the place. The National Bureau of ing may be about 200 million people change. We want the private sector to Where would you like to see roads to the rural areas. The governor Statistics is the major pointer to the in population and we consume six provide the major economic activity Akwa Ibom state in the next has continuously preached that devel- level of confidence that the world billion syringes per annum. Do not in the state. We have also realised that couple of years? opment should be taken from the hin- economic community has in Akwa forget that syringes are disposable; Akwa Ibom is surrounded by other Six years from now, I dream of an terland to the urban centres and this Ibom State. They believe in the lead- we use up to 6 billion yearly, so it is states and then we have the Atlantic Akwa Ibom that is investors’ destina- is the reason why we are opening up ership of Akwa Ibom State and are a huge market. Image if Akwa Ibom Ocean and accessibility to Akwa tion of first choice in Nigeria. If an those roads. People are asking ‘why building industries in the state. For State were to take the inflow for the Ibom from those states is by road. We investor is coming to Nigeria, the first are you still building roads when the instance, the Syringe factory is 100 first year, 400 million syringes, it realised that those roads are federal place that he would want to go should previous administration had spent so percent privately owned. Unlike the means that we are going to employ government roads and there are in be Akwa Ibom State. I also dream much money building roads,’ we are normal practice in the country in the the value chain that is going to come a state of disrepair. If we depend on of Akwa Ibom where tourists would preaching that people should go back past whereby industries are initiated with that syringe factory. It is an enor- those roads, our economic life would come from far and wide to savour to the farms, now if the man in the hin- by government and are run as a gov- mous market, from the distributors be affected. We also have an airport the hospitality and goodwill of the terland produces tomatoes and does ernment entity, when the government to workers to the local communities. but recent experience tells us that people of Akwa Ibom State. I dream not have access to evacuate them, it of the day leaves, those industries die It is a huge opportunity that we are if anything happens to the airport, of Akwa Ibom State that Nigerians is going to get rotten and he will get and even when the government of the creating. Do not forget the number of our economy would crumble; we set would no longer need to go to India discouraged. So we are opening up the day lives, if they shift attention, those people that are going to be employed sight to building a second runway as for Medicare. Friday 23 June 2017 C002D5556 BUSINESS DAY 29

Read Ambitiously ECB to build eurozone instant payment system TOM FAIRLESS such as Estonia to Greece and Spain. It will ensure “that the demand for he European Central Bank instant payments is met at Euro- said it would build an in- pean level and further facilitate the stant-payment system span- integration of the euro area,” the ning the entire eurozone ECB said. Tthat allows firms and citizens to Instant payments are already transfer money in seconds, in an available within several eurozone effort to boost financial integration countries but banks haven’t yet across the 19-nation currency bloc. sought to join up the whole bloc. The system, scheduled to start The ECB has already done part operating in November next year, of the work, by building a pan- will reduce the time needed for pay- eurozone system, known as TAR- ments between bank accounts from GET2, that quickly processes large up to one day to mere seconds, the transactions between banks and ECB said Thursday. It will be avail- central banks. able around the clock, 365 days a The new system, known as TAR- year. As such, it could pose a serious GET instant payment settlement or challenge to existing payment sys- TIPS, would allow citizens to pay tems such as debit cards. a restaurant bill directly from their The move by the ECB aims to bank account, for instance—or to address the absence of a rapid-pay- split the bill by transferring money ments system that spans the entire immediately to a friend’s bank ac- region, from tiny Baltic countries count. Yale dean out after being placed on leave

MELISSA KORN Ms. Chu, who taught psychol- per, while another implied that an ogy and Asian-American studies ice cream treat would be good for une Chu, a Yale University and was dean of the residential a white person “who has no idea dean who was put on leave Pierson College, apologized in what mochi is.” last month after being tied to mid-May for two reviews that Mr. Davis wrote in an email last a string of racially insensitive were deemed offensive and as- month, at the time Ms. Chu was Jreviews on Yelp , has formally left sured administrators and students put on leave, that “No one, espe- the school. those were the only such posts. But cially those in trusted positions of Head of Pierson College Ste- the Yale Daily News, the student educating young people, should phen Davis wrote in a letter Tues- newspaper, published more posts denigrate or stereotype others, day that Ms. Chu left her position by her. and that extends to any form of at the school “and wishes the best The posts, about area restau- discrimination based on class, to the students.” rants, movie theaters and gyms, race, religion, age, disability, gen- Ms. Chu didn’t immediately have since been removed from der identity, or sexual orientation.” respond to an email inquiry, or the online review website. One re- He said in the note to students to a message left on a cellphone view of an Asian restaurant said it this week that he is initiating a number listed under her name. would be perfect for “white trash,” search for a new dean, and one Beijing is investigating some of china’s according to the student newspa- should be in place by the fall. top overseas deal makers The economy needs Amazons, but it mostly has GEs LINGLING WEI clined to comment on the reported capital spending—hovered around order to banks, but said big com- zero. Mr. Bezos approaches new hina’s banking regulator panies are naturally a focus of the products like a venture capital- has ordered the country’s regulator when it comes to systemic ist. Many will flop (like the Fire commercial banks to in- risk. He said the regulator usually smartphone), but some will be vestigate loans made to leaves it up to banks to assess their home runs (such as Amazon Web Ca group of companies that have risk exposure rather than issuing Services, its cloud computing arm). aggressively invested overseas in orders on specific actions to banks. Amazon launched Prime, recent years, according to people The share prices of some of the which offers free delivery in ex- with knowledge of the matter. companies started to drop precipi- change for an annual fee, in 2005. The companies in question in- tously on Thursday after some of the John Blackledge, an analyst at clude Anbang Insurance Group Co., banks started selling down bonds Cowen & Co., notes Amazon has HNA Group, Fosun International tied to the firms following the direc- repeatedly innovated in ways that Ltd. and Wanda Group, the people tive on internal checks. make Prime even more valuable said, referring to a list issued to Shenzhen-listed shares of Wan- to subscribers: the Kindle e-book banks by the China Banking Regula- da, the real estate and entertain- reader lending library, stream- tory Commission. ment giant owned by billionaire ing video and music, discounted “The goal of the examination is Wang Jianlin, were suspended in the access to FreeTime, which offers to examine those companies’ lever- early afternoon after falling nearly children’s books, games and me- age situations and risks,” one of the 10%. Wanda in a statement around dia content, and Amazon Family, people said. midday cited internet rumors that which offers discounts on baby Liu Zhiqing, a China Banking banks issued a notice to dump products. Innovation is also ex- Regulatory Commission official, de- Wanda’s bonds. ceptionally rapid. Mr. Blackledge says Prime Now, which offers same-day delivery, launched in GREG IP Yet there is another, potentially more troubling explanation: stag- New York in less than four months after conception without so much hen Amazon.com Inc. nation. Muted markets may be the inevitable product of steady, as a focus group. announced Friday Amazon is now profitable, yet it was buying Whole sluggish growth, low and pre- dictable interest rates, declining cash retention remains secondary Foods, the stock mar- to retaining customers. Asked by ketW got a taste of something long business startups and failures, and an analyst in April whether Alexa, missing: volatility. decreased competition. In other words, the problem is, there aren’t a voice-activated assistant, was The turmoil, however, was boosting sales, the company’s confined to retail. While the two enough Amazons disrupting the stock market and the economy. finance chief, Brian Olsavsky companies’ stocks rose sharply responded: “The monetization, and their competitors’ tanked, the Since Jeffrey Bezos founded Amazon in 1994, he has put ex- as you might call it, is…not our rest of the market remained plac- primary issue right now. It’s about id. Indeed, months of historically pansion and innovation ahead of profit. In its early years, free cash building great products and de- low market volatility has begun to lighting customers.” look like dangerous complacency. flow—cash from operations minus 30 BUSINESS DAY C002D5556 Friday 23 June 2017

Read Ambitiously Cable operator altice delivers biggest U.S. Telecom IPO in 17 years NICK KOSTOV & CORRIE DRIEBUSCH tice NV, formed through the merger of New York-based Cablevision he IPO of cable company Systems Corp. and Suddenlink Altice USA raised more Communications, is expected to money than any other U.S.- start trading on the New York Stock listed telecom since 2000, Exchange on Thursday. The deal Tan encouraging sign for the belea- values Altice USA at more than guered sector. $20 billion. Altice shares were priced at Investors who bought shares in $30 apiece, according to a person the offering will be making a bet familiar with the offering, raising that the U.S.’s fourth-largest cable $1.9 billion in the deal. In a sign of operator by revenue will be able solid demand for the IPO, Altice to leverage the money raised and and its selling stakeholders sold expand in an environment in which more shares than anticipated. competition is stiff. At that price, it is the biggest U.S. telecom stocks have U.S.-listed telecom IPO in roughly slumped this year. Altice competi- 17 years, according to data provider tors AT&T Inc. and Verizon Com- Dealogic, when the tech boom ush- munications Inc. are down 10% In the new bond market, bigger is better ered in a wave of cable and wireless and 15%, respectively, in 2017. JON SINDREU operators. at Brown Brothers Harriman & Co., serve and the Securities Industry European-listed shares of Altice which oversees $54 billion, and this and Financial Markets Associa- The U.S. subsidiary of European NV are up roughly 20% over the iant bond firms increas- “has shifted the relative importance tion. This change has made trading telecommunications company Al- same period. ingly are taking on a price- of players in the market.” choppier, research published by the setting role in global debt What’s happening in bond mar- Fed last month suggested. markets, elbowing aside kets would be similar to a retail It is also shifting the balance of Gbig banks facing tighter postcrisis sector in which wholesalers—a power away from banks and small regulation and generating con- role played by banks in financial funds, investors say, and into the cerns about the toll paid by smaller markets—were scaling back their hands of the largest asset managers. investors. business. Small retailers would In recent years, whenever Mr. The bond funds, which tradi- struggle to stock up, but big-box Sommariva wanted to sell a bond, tionally turned to banks for prices, stores with their mega warehouses banks would normally only buy it if are usurping the role as banks face and access to international produc- they had someone lined up to sell pressure to reduce risk. Banks still ers would get by fine. it to, he said. Big funds say that this act as middlemen in bond trading, Before the financial crisis, Jay someone is them. but what trading they do is directed Sommariva, portfolio manager at “They’ll call us, Pimco, Black- at bigger funds, say bankers and Fort Pitt Capital Group, a Pittsburgh Rock, and ask ‘Can you take that fund managers. Smaller funds have firm that manages $1.5 billion, on?’” said Gregory Peters, a senior less service and higher costs in trad- would call a few banks to sell a bond fund manager at PGIM Fixed In- ing, say many money managers who and it would be snatched up within come, part of PGIM Inc., an asset work for them. While bigger bond hours, he says. Now, he says, it takes manager that oversees $1 trillion. Wall Street Journal reporter is fired after dealings with source investors have long had advantages, at least a couple of days, and the cut “It’s really Darwinian when it the differences have become more the two men that it said showed Mr. that the bank takes is much greater. comes to size.” LUKAS I. ALPERT pronounced. For every billion dollars of bonds This approach wasn’t as com- Azima had offered Mr. Solomon a “There’s no question that bank outstanding in U.S. markets, dealer mon pre-2008, when banks could he Wall Street Journal has 10% stake in a company he was try- balance sheets are much more banks held only $8 million in stock buy the bond on the spot and wait fired veteran foreign-affairs ing to create. The AP said it had also constrained than they used to be,” in 2016, one-third the amount in to sell it when a buyer was willing reporter Jay Solomon for seen a document that listed an ap- said Scott Clemons, chief strategist 2008, according to the Federal Re- to meet their price. violating the paper’s ethical parent stake in the company, Denx Tstandards, stemming from his deal- LLC, in Mr. Solomon’s name. ings with an aviation tycoon whom In a statement, the Journal said: he had cultivated as a source. “We are dismayed by the actions and How Uber backers orches- The connections between Mr. poor judgment of Jay Solomon. The GREG BENSINGER AND MAUREEN FARRELL the pugnacious Solomon and Farhad Azima, a Kan- allegations raised by this reporting Mr. Kalanick for sas City, Mo.-based businessman, are serious. While our own investiga- ravis Kalanick’s decision to snubbing conven- were reported Wednesday by the tion continues, we have concluded tion and prioritiz- Associated Press, which discovered that Mr. Solomon violated his ethical step down as chief execu- tive of Uber Technologies ing winning at all them as part of an investigation obligations as a reporter, as well as costs, and inves- into Mr. Azima’s broader dealings. our standards. Inc. stunned his more than T12,000 employees and rippled tors hailed him as The AP reported that Mr. Azima has “He has not been forthcoming the model for a done secret work for the U.S. govern- with us about his actions or his through Silicon Valley, but it was the culmination of weeks of maneuver- founder. ment and won lucrative government reporting practices, and he has Mr. Kalanick, contracts. forfeited our trust,” the statement ing by some of the firm’s biggest backers to oust the nearly $70 billion who is expected to The AP reported it obtained continued. “Mr. Solomon is no remain an influen- emails and text messages between longer employed by The Wall Street company’s co-founder. Mr. Kalanick was in Chicago on tial presence at the Journal.” ride-hailing com- The AP said it wasn’t clear Tuesday to interview a candidate for his top deputy position when he pany: He will keep if Mr. Solomon had ever re- a seat on Uber’s ceived any money or accepted received unexpected news about his future, according to people familiar board of directors the stake in the company. and he retains Lawyers for Mr. Azima, an with the matter. Matt Cohler and Peter Fenton, control of a major- American citizen who was ity of Uber’s voting born in Iran, told the AP the two partners at venture-capital firm Benchmark, one of Uber’s biggest shares. messages had been stolen by “I never hackers. investors, flew out to Chicago to confront Mr. Kalanick, presenting thought I would Mr. Solomon couldn’t be be writing this,” Mr. reached for comment. In a him with a letter signed by five major shareholders. The letter Kalanick emailed statement to the AP, he said, to employees on “I clearly made mistakes in demanded the 40-year-old CEO immediately resign after a series of Tuesday evening, my reporting and entered into some 2,000 miles a world I didn’t understand.” scandals consumed the company, these people said. from Uber’s head- He added, “I never entered quarters in San into any business with Farhad After hours of deliberating, Mr. Kalanick capitulated and informed Francisco. “As you Azima, nor did I ever intend Even in the midst of a number all know, I love Uber more than to. But I understand why the the board he would resign, the of controversies, Mr. Kalanick’s people said, ending a seven-year anything in the world, but at this emails and the conversations abrupt surrender was a stunning difficult moment in my personal I had with Mr. Azima may look reign at the ride-hailing service he fall for one of the most celebrated built into the world’s most valuable life, I have accepted a group of in- like I was involved in some careers in Silicon Valley in recent vestors’ request to step aside.” seriously troubling activities. private company. years. Tech entrepreneurs idolized Friday 23 June 2017 C002D5556 BUSINESS DAY 31 32 BUSINESS DAY C002D5556 Friday 23 June 2017 LIVE @ THE STOCK EXCHANGE Top Gainers/Losers as at Thursday 22 June 2017 Market Statistics as at Thursday 22 June 2017

GAINERS LOSERS ASI (Points) 32,928.44 Company Opening Closing Change Company Opening Closing Change DEALS (Numbers) 5,321.00 CONOIL 40.42 44.56 4.14 NB 166 158.03 -7.97 VOLUME (Numbers) 509,763,958.00 ASHAKACEM 14.77 16.27 1.5 OKOMUOIL 68.2 64.8 -3.4 VALUE (N billion) 5.034 BERGER 6.47 7.12 0.65 PRESCO 76 73 -3 UBA 8.82 9.2 0.38 MOBIL 250.9 248 -2.9 MARKET CAP (N Trn 11.386 UACN 17.9 18 0.1 JBERGER 43.7 41.52 -2.18 FG curtails borrowing costs Stock market maintains …sells 5, 10, 20-year bond at flat rate of 16.19% n a decision aimed nificantly because of lack at curtailing bor- of interest in the shorter downward trend rowing costs as end of the market, be- inflation declines, cause most investors, IFederal Government especially the pension sold a 5, 10- and 20- funds prefer to lock in on ...as benchmark index dips by 1.64% year debt at a flat rate of the longer tenor paper,” 16.19percent at an auc- one fixed-income trader Stories by tion on Wednesday. told Reuters. IHEANYI NWACHUKWU The Debt Management He added that the Office (DMO) raised a 2037 maturing debt was he Nigerian total of N99.26billion viewed favourably in light stock market ($315.11 million), less of falling inflation in the maintained than the N140 billion it West African country. downward wanted to raise, as it did Nigeria’s annual infla- not want to pay more for tion eased for the fourth trend on the notes. straight month in May, TThursday which result- It sold N4.22 billion of falling to 16.25percent ed to 1.64percent dip the 2021 paper at 16.19 from 17.24percent in in the All Share Index percent, compared with April, while analysts ex- (ASI). Also, the Year- 16.30 percent last month pect further declines in to-Date (Ytd) return wa- and N30.25 billion of the the consumer price index tered-down to 22.53per- 2027 paper at 16.19 per- this month. cent against 16.29 percent Traders said tight li- cent. Only fourteen (14) in May, it said. quidity reduced the de- stocks gained against 45 It also sold N64.79 bil- mand for debt at the auc- losers. lion of the 2037 paper at tion as the central bank Conoil Plc consoli- 16.19 percent, compared sustained its intervention dated its position as the with 16.29 percent last in the foreign exchange top gainer after its share month. market, draining naira price rose from N40.42 “Demand for the five- cash from the banking from N14.77 to N16.27; Actively traded stocks decreased by 21.29per- year bond dropped sig- system. to N44.56, adding N4.14; while Berger Paints Plc on the bourse include: cent from N6.39billion while Nigerian Breweries gained 65kobo, from United Bank for Africa Plc, to N5.03billion in 5,321 recorded highest price N6.47 to N7.12. Diamond Bank Plc, Trans- deals. Standard Alliance Insurance loss of N7.97, from N166 The All Share Index national Corporation Plc, The Financial Ser- to N158.03. closed at 32,928.44 points FBN Holdings Plc, and vices sector led yester- reports N1.3bn full year loss Also on the top losers against the preceding day Zenith Bank Plc. day activity chart with table, Okomu Oil Palm Plc close of 33,477.89 points The volume of 399.57million shares ex- tandard Alliance against N5.426billion in Insurance Plc re- 2015. followed after its shares while Market Capitalisa- stocks traded in- changed for N3.29billion; price declined by N3.4, ported group Loss Net premium income tion closed at N11.387 creased by 0.20percent while Conglomerates After Tax (LAT) of declined to N3.648billion from N68.2 to N64.8; trillion against preced- from 508.73million to followed with 63.63mil- SN1.34billion in the 2016 from N4.572billion in while Presco Plc lost N3, ing day close of N11.577 509.76million, while the lion shares traded for financial year, against 2015; Net underwriting from N76 to N73. Ashaka trillion. total value of stocks traded N151 million. N887.481million profit income in 2016 stood at Cement Plc gained N1.5, in 2015. The Group re- N3.76billion, down from corded a loss before tax N4.91billion in 2015. of N1.2 billion in 2016 as In the financial year Great Nigeria Insurance returns to profitability against a profit before tax of under review, the group re- N819million in 2015. ported underwriting profit he turnaround and spur us to be among position of N60.6 million. N5.9billion in 2015. Standard Alliance In- of N271.847million, down surance Plc and its sub- from N1.233billion in 2015. process em- the top five insurance com- He noted that in the “This achievement is sidiary company audited Management expenses barked upon by panies in Nigeria. face of evident challeng- in congruence with our financial statements for the spiked to N1.515billion, the management Aluko said the year ing operating terrain in plan to grow the com- year ended December 31, from N1.484billion in 2015. Tof Great Nigeria Insurance 2015 saw a reversal of the 2015, the company was pany organically towards 2016 are now at the Nige- The Group is 100per- Plc (GNI) is beginning non-impressive results of able to record Gross pre- reversing negative accu- rian Stock Exchange (NSE). cent fully owned by Ni- to yield fruit as the un- 2014. “The year witnessed mium written of N3.12 bil- mulated reserve carried The company’s share price gerian citizens and In- derwriting company has the beginning of mani- lion in 2015 against N2.79 over from previous years, remains at 50kobo. stitutional investors. come out of the woods, festation of various turn- billion achieved in 2014 Aluko noted. The group Foreign Ex- Its major shareholders recording profit in its 2015 around strategies em- representing 11.8 percent Cecilia Osipitan, change (FX) loss increased are: Gemrock Manage- operations. barked upon by the board growth. managing director/CEO to N385.289million, up ment Company Limited GNI according to the and management of your As at December, 2015 of the company said this from N117.514million in (21.63percent); Standard 2015. Alliance Investments Company chairman, Bade company. We are there- GNI Plc total assets stood growth is attributed to The group also recorded Limited (14.63percent); Aluko has strategically im- fore happy to announce at N10.7billion, represent- ingenuity in product de- a decline in gross premi- First City Monument Bank proved in its financial per- to you that your company ing a 2.1 percent growth velopment deliberately um written which stood (9.34percent); Bode Akin- formance. “We have set the recorded a profit before over the 2014 figure of tailored to the needs of lower at N4.37billion in boye (3.63percent); and platform for a greater future, tax of N249.5Million in N10.48billion while share- her customers and ag- 2016 against N5.23billion Sina Alimi –also a direc- established strong financial, 2015 representing a 510.9 holder’s funds increased gressive marketing of in 2015. Gross pre- tor in Gemrock Manage- technical and operational percent improvement by 11.3 percent from these products leading mium income stood ment Company Limited paths that will challenge over previous year loss N5.3billion in 2014 to to brand acceptability. at N4.34billion in 2016 (3.19percent). Friday 23 June 2017 C002D5556 BUSINESS DAY 33 NEWS FG allays fears of gridlock over Apapa road repairs ..As Contractors, LASTMA, Police meet over traffic control MIKE OCHONMA, JOSHUA BASSEY & records an estimated 3,000 trucks ongoing, but the progress of the job a better outlook, with the use of dent on petroleum products which daily, on the already dilapidated along the corridor is progressing at concrete, even as there was no of- are mostly imported and dis- AMAKA ANAGOR-EWUZIE road through the Ijora and Tin-Can snail speed. Last week, the Minister ficial information on how the road charged in Apapa ports, where Island axis, is a horror. of Works, Babatunde Fashola stated rehabilitation would be phased, as most of the petroleum tank farms ears about possible intrac- As at the time of filing this report, during a stakeholders meeting, that at the time of filing this report. are located. The local refineries in table traffic gridlock taking the Oshodi-Apapa Expressway, that section of the Apapa Wharf According to the minister, the Port Harcourt, Warri and Kaduna, root, as authorities prepare including the overhead bridge, road would be shut down for one- construction is to resolve the chal- remain challenged due to years of to kick-off repairs to the has been turned into a parking year to enable repairs. lenges usually encountered on the corruption, poor maintenance, and access roads to Nigeria’s lot by articulated truck drivers. The minister said this at the of- road. Meanwhile, the Nigerian underperformance. Ftwo busiest sea ports, Apapa and Tin The gridlock is estimated to cost ficial signing of the Memorandum Union of Petroleum and Natural This has been worsened by Can Island, badly damaged by years businesses N140 billion weekly. of Understanding and handing over Gas Workers (NUPENG) has ex- epileptic electricity supply, com- of neglect have been allayed by the From the Coconut bus stop point, of the project to AG Dangote and pressed fears that the one year pelling millions of homes, offices Federal Government and relevant through Tin Can Island to Liverpool Flour Mills; the project financiers, duration announced for the yet to and factories to run on generators, traffic management authorities. roundabout, different sections of in collaboration with the Federal commence reconstruction of the which are powered by either petrol The said repairs will be under- the road on either side of the dual Government. failed section of Ijora-Apapa road, or diesel. taken and financed by the duo of carriageway have been cut off by Explaining the choice of con- if not properly handled, would Tokunbo Korodo, Lagos zonal AG Dangote and Flour Mills of Ni- deep gorges. tractor, the minister explained inhibit fuel supply to power the chairman of NUPENG, who spoke geria Plc, in collaboration with the A contract award for a palliative that the use of AG Dangote for the national economy. with BusinessDay on Wednesday, Nigerian Ports Authority (NPA). The job on the road is purported to be construction, was to give the road The country is heavily depen- said much as the union would project is slated to last one year at a cooperate with the contractor and cost of N4.3billion encourage petroleum tankers to The proposed rehabilitation maintain a single line, a lot more work on the two-kilometre stretch needed to be done to ease move- of road has further heightened ment of trucks in the period the fears that the traffic gridlock that construction work is to last. commuters experience will further Korodo stated that it takes an heighten in the course of the repairs. average of two hours under nor- In a telephone interview with mal circumstances for a truck to BusinessDay, Hyginus Omeje, the load and exit Apapa. But in recent Federal Road Safety Corps (FRSC) months, given the collapsed road Lagos Sector Commander, dis- network, trucks now spend two closed that immediately after the days. “That is why you see a lot Sallah public holidays, all the rel- of tankers on the roads. A depot evant stakeholders, including repre- should load an average of 100 sentatives of the contractors, project trucks a day. But hardly do the de- financiers, Lagos State Traffic Man- pots load 20 trucks since this crisis. agement Authority (LASTMA), the The reason is that loaded trucks Area ‘B’ Police Command, the Fed- can’t find their way out Apapa to eral Roads Safety Commission, the allow others go in. In order not to Nigerian Ports Authority and Apapa aggravate this situation, alternative Local Government, would be meet- routes would be required during ing to discuss a and enduring work the construction work. plan that will mitigate the impact of Remi Ogungbemi, chairman the road repairs on traffic flow. of Association of Maritime Truck Hyginus Omeje stated that all Owners (AMARTO) told our corre- parties concerned in the road re- spondent in a telephone interview habilitation work are deeply con- that the truckers have only one cerned about the possible frustra- plan, which is to rent holding-bay tion that motorists would encounter at Orile Igamu and Kirikiri areas, and are working out an action plan but the association cannot achieve to confront any traffic challenge LR: Alex A. Okoh, director-general of Bureau of Public Enterprises and Abimbola Olashore, director of Lead that without the intervention of the headlong. Capital Consortium at the Kick-off Meeting on Strategic Equity Investment by National Sovereign Investment Federal Government. Accessing the Apapa port which Authority (NSIA) into the Nigeria Commodity Exchange. “The two spaces we have secured run into billions of naira and we cannot pay for them on our own. Continued from page 1 Banks shun meeting with NCC over Etisalat fourth largest Telco at the time, as The minister directed us to secure in protecting the depositors fund told BusinessDay that the action their towers and utilised the entire Etislat Nigeria is, with some 23 mil- holding-bays without considering extended to Etisalat as loan. amounts to abandoning the com- sales proceeds to repay their loans, lion subscribers and a 14 percent the fact that we all have our indi- He added, “the banks have not pany’s monumental obligations Etisalat Nigeria in 2014 sold its market share. vidual garages in our base states and Globacom, owned by Mike none of us can come to Lagos ports said they want to take over Etisalat, in Nigeria which includes: N541 towers and did not apply the sales with our garages. This is why like so it is presumptuous for the NCC billion syndicated and bilateral proceeds to repay its loan, sources Adenuga, Africa’s third richest man serves 37 million subscribers, any modern port, we need a transit to be making pronouncements loans approved by 13 Nigerian in the banking industry have said. park that would be owned by the about how and how not a take banks, which the subsidiary has But information obtained by while Bharti Airtel accounts for government,” he suggested. over can be carried out. We are not been unable to repay and will now BusinessDay shows that Etisalat 34.3 million. MTN, the South-Afri- According to him, directing seeking to transfer shares which be classified as bad debts on the Group’s planned exit from Nigeria can owned Telco, offers services to truckers to vacate the roads for con- we do not hold. books on Nigerian banks. over a loan default is very similar some 60 million Nigerians and is struction to take place will not solve “All we are asking Etisalat to do The Etisalat Group, by its action to what it did in Tanzania three the largest Telco by market share. the problem and if the government is to pay us the money they owe is also abandoning taxes and levies years ago. Etisalat Group which owns 45 is not ready to help us secure the holding-bays, it means that govern- and because they have failed to due to the Federal Government of In 2014, Etisalat’s Tanzania percent ordinary shares and 25 percent preference shares in Eti- ment is not also ready to solve the do this so far, the banks have the Nigeria and regulatory agencies unit, Zanzibar Telecom (Zantel) problem. option to enforce their security.” and other third party creditors defaulted on a $96 million loan, salat Nigeria, announced on June 20 that following a default in facil- Ogungbemi disclosed that truck- BusinessDay learnt that the including; vendors, service pro- which spiralled into a debt crisis ers before now, secured a space that banks seek to appoint a receiver, viders and contractors. resulting in Etisalat Group agree- ity agreement with a consortium was at sand filling stage to be used appoint a new managing direc- Sources have told BusinessDay ing to sell its 65 percent stake in of Nigerian banks and inability to as holding-bay but the Lagos State tor and chief financial officer for that this amounts to ignoring and Zantel to Swedish telecommu- reach a restructuring agreement, it Government recalled the place on Etisalat for the simple reason that disregarding the commercial con- nication and media company, received on July 9 an enforcement the ground that it would be used for the cashflows must be protected. tracts duly entered into in Nigeria Millicom. notice which requires it to transfer ‘low cost housing project,’ and that Meanwhile, the Etisalat Group, by the Etisalat Group. Millicom acquired $32 million 100 percent of its shares to United “was part of the reasons why we are Capital Trustees by June 15 which still on the road today. parent company for Etisalat Ni- Sources from the banks con- in net current liabilities at close “Though, Rotimi Amaechi, the geria, has been accused of aban- firm that the consortium of banks of the deal, Etisalat said in an was later extended to June 23, which is today. Minister of Transport, said the min- doning its obligations to Nigerian has not been involved in the emailed statement at the time. istry has ordered for 200 rail wagons banks and to Nigeria as a country. ownership of Etisalat Nigeria and A similar financial crisis has hit Etisalat has been in talks with for cargo lifting. The question is, is it The Etisalat Group, on June 20 therefore is in no position to trans- Etisalat’s Nigerian Unit, after $1.2 Nigerian banks to restructure the rail that would deliver the goods filed a notice on the Abu Dhabi fer or retain any percentage of Etis- billion in trade loans taken from a $1.2 billion trade facility after to importers’ warehouses? Meaning Securities Exchange of its inten- alat Nigeria shares. The banks also a consortium of 13 banks went missing repayments, but those that, for the rail to operate effec- tion to pull out of their opera- confirmed that the consortium of bad, after a big naira devaluation discussions failed to produce an tively, there is need for the trucks tions in Nigeria without meeting banks have no intention of taking last June caused dollar loans to agreement on restructuring the to complement that effort by lifting the cargo from the rail stations to their obligations. Sources in the over ownership of Etisalat Nigeria. balloon. the importers’ warehouses,” the Nigerian banking industry have While other operators sold Zantel was coincidentally the Continued from page 35 AMATO boss said. 34 BUSINESS DAY C002D5556 Friday 23 June 2017 NEWS Houses for low-income earners coming as Exposure of corrupt US ambassador urges Nigerians to embrace officials ‘ll fasten issuance peace for nation’s development more developers align with FG’s new schemes of C of Os - Amosun SEYI JOHN SALAU In charging the association’s member on the need to embrace CHUKA UROKO of the sum, will come from the the challenge we have in Nige- RAZAQ AYINLA, ABEOKUTA Federal Government while the ria is that you can’t sell 10,000 nited States of America peace, Symington said, “You remaining half will come from houses units. So, even if I can overnor Ibikunle Amosun represent what will change the ore than ever be- Ambassador to Nigeria, private sector partners. build 10,000 units, I can’t find of Ogun State has urged Stuart W. Symington, world, not individually but col- fore, the Nigerian The scheme, which has com- 10,000 buyers,” said Kola Ashiru- landlords and property U lectively as a nation.” The newly property market G has urged Nigerians to embrace menced in some states including Balogun, MD, Mixta Nigeria, in owners who have subscribed to peace as a way of ensuring the inaugurated association is to will, in the next 18- Nasarawa and Kaduna as pilots, an interview. the state’s Homeowners Charter serve as the umbrella body for M24 months, be receiving houses nation’s achieve its potentials has already garnered interest “This is why we have been Scheme for which special dis- priced at purchasing capacity of and fast tract developmental all US government exchange from estate developers. One of advising the federal government counts are placed on certificate of programmes in Nigeria. low-income earners, especially such developers is Mixta Nige- to come up with social hous- occupancy, to expose any corrupt programmes across the six geo- families whose income is at that political zone of the country, However, the association ria—a ‘new’ property investment ing scheme. You are aware of officials that may demand bribes launch witnessed the presenta- level. and development firm based in the Family Home Fund (FHF), outside stipulated official charges amid growing separatist agita- This expectation is hinged on tions by different right groups. tion of awards to some members Lagos with foreign affiliates. which the government is work- for issuance of the C of O and of the various US government the new Federal Government’s The company, which is the ing on. We are one of the de- other title documents. “Nigeria will always be lis- strategic partnership with pri- new face and rebranded ARM velopers on that scheme. We The governor, who was rep- tened to. No such thing as good exchange programme in Ni- vate estate developers on its new Properties, is known for large- are actively working with the resented by Abayomi Sobande, governance, if the people being geria. housing schemes, which include scale housing developments government to roll out housing head of service on Thursday, at govern are not good citizen,” Speaking on behalf of the the Family Home Fund (FHF) and has increased its capac- for the people”, he disclosed. Arcade Ground, Oke Mosan, Symington said at the official awardees, Soni Irabor, a veteran and the Federal Integrated Staff ity having acquired Mixta Af- Ashiru-Balogun hopes that Abeokuta, shortly before present- launch of the US Government broadcaster, in acceptance of Housing (FISH), which have rica, which has both capacity through that scheme people ing another batch of 1,000 C of Os Exchange Programme Alumni the award, said, “with respect commenced in some states. and competence for affordable will be able to get mortgages to beneficiaries, said they should for the rule of law, freedom of The FHF, which is under the Association in Lagos. housing delivery. and credible developers who will forward to the government any According to Symington, speech, and human rights, Ni- purview of the Federal Ministry “With the integration of Mix- deliver the houses, adding that suggestions that could make geria will be placed on the path of Finance, is aimed at raising Nigeria has never had an issue ta Nigeria into our operations, with government’s support they the scheme more effective and with resources, and “never a of progress.” about N1 trillion. About N500 we have now capacity to deliver will be able to get cheaper and ensure better service delivery. He however urged mem- billion, representing 50 percent shortage of resource, but how housing in large numbers, but subsidised mortgages. He said, “We want you to ex- do you deploy the resources for bers of the association to work pose any corrupt official or fraud- national development. Nothing together as one indivisible entity ster who may demand anything to make Nigeria better. outside what is required under profoundly happens alone.” the scheme. We will prosecute any official involved in corrupt BoI plans N1trn to support large industries practice. We will continue to look into the process so as to make it IDRIS UMAR MOMOH, BENIN the bank would work hard to faster. We are here to serve you ensure the viability of the sector. better.” anaging director/CEO, The BoI boss indicated the Also, Ronke Sokefun, Com- Bank of Industry (BoI), financial institution’s interest to missioner for Urban and Physical MPitan Olukayode, says seek more areas of collaborating Planning, said the people should the bank plans to raise between with the Edo State government, report all perceived wrongdo- N500 billion to N1 trillion to sup- and assured of the bank’s readi- ings; bribe and extortion on the port the sustainability of large ness to support the initiative of scheme to government, explain- industries in the country. the Obaseki-led administration ing that out of the over 170,000 Olukayode, who noted that and private investors in the state. applicants, 35,000 had paid for large corporations must be sup- “The bank is interested in their applications and over 12,000 ported to thrive, said most of the partnering with Edo State gov- C of Os and title documents had large corporations in the country ernment at a higher level, and been distributed by the govern- were dead while others were expanding our scope to help ment so far. merely struggling to survive. market women and industrial- But, Adewale Oshinowo, “We are planning on a pack- ists, and to move the state for- Commissioner for Finance, said age to raise between N500 billion ward,” he stated. 77 percent of the of over 140,000 to N1 trillion to support the sus- In his remark, Governor applicants have had their sites tainability of large industries in Obaseki urged the bank to sup- inspected, while the remain- the country. Large corporations port the development of large- ing 23 percent did not show up must be supported because scale industries through invest- during inspection on their sites, most of them are dying and ments in the state’s ventures, adding that out of the 77 percent many are even dead,” he said. and explained that the viability of that had their sites inspected, 23 He said this during a cour- large-scale industries was need- L-R: Felix Matthes, keynote speaker/research coordinator for Energy and Climate Policy; Laoye Jaiyeola, percent could not be involved tesy visit to Edo State Governor ed to serve as enablers for small CEO, Nigerian Economic Summit Group (NESG), and Kyari Bukar, chairman, NESG, at the NESG CEO due to non-conformity with Godwin Obaseki at Govern- and medium scale enterprises to thrive. Breakfast Meeting on Investments in Renewable Energy, held at Eko Hotel and Suit, Lagos, yesterday. preconditions for qualification. ment House in Benin City on Wednessday. He informed the bank on his He added that the bank was administration’s developmental NDDC explores new funding plans, talks with Korean firm mindful of the support that me- agenda, and sought their part- Eleme boss pushes for investor paradise dium and large-scale industries nership in the development of needed for our projects.” … as NPA agrees on quota for host communities provided to micro and small- housing schemes, agribusiness, IGNATIUS CHUKWU The NDDC CEO said both the scale businesses, assuring that mining and other specific areas. Commission’s executive direc- iger Delta Development GODWIN EGBA, PORT HARCOURT source for veritable information tor, finance and administration, about Eleme people, language, Commission (NDDC) Mene Derek, and the executive CBN enlightens Lagos populace on has declared its willing- leme, regarded as the heart tradition and social life and more N director, projects, Samuel Ad- existing investment opportuni- ness to explore new funding pat- jogbe, would interface with the beat of the Nigeria econo- intervention policies to stimulate growth terns to boost the capacity of the my, is now on the path of ag- ties. He added that the linkage Korean company to work out the E more emphasis on non-oil export.” interventionist agency to tackle details of a mutually beneficial gressive drive to boost investment would bring government closer HOPE MOSES-ASHIKE the development challenges of to assume the status of investors’ to the people even as he appealed According to Vincent, there are relationship. various interventions, which the the Niger Delta region. He told his visitors: “We have paradise. to corporate organizations and entral Bank of Nigeria (CBN) Nsima Ekere, managing di- The new drive is by the care- people to take advantage of the on Thursday engaged the CBN has put in place as part of the no problem with the structure proactive measures in stimulating rector of the Commission, said that you propose. We will sit taker chairman of Eleme local enormous benefits there in the Cgeneral public in Lagos on growth of the economy. “What we this when a delegation from a down with you to work out the council area, Obarilomate Ollor, upgrade, which he said would sensitisation programme on its vari- South Korean firm paid him a include e-commerce. He gave ous intervention policies targeted at are doing for now is to let the public details.” who has launched Eleme on a know various policies they can courtesy visit at the Commis- The leader of the delegation first-ever standard website since the website portal as www.eleme. stimulating economic growth and sion’s headquarters in Port Har- wellbeing of the citizens. leverage on for economic growth. and chairman of Kunwon Inter- Rivers State was created in 1967. rv.gov.ng. We have interventions for real sector, court on Wednesday. national Construction Company As chief security officer of This is coming after the apex Ekere reaffirmed the Com- Eleme is host to over 200 com- bank also held a seminar for farm- power sector, aviation sector and Limited in Nigeria, Chris Any- panies. The chief said he was Eleme who is enjoying third ten- agric sector among others,” he said. mission’s resolve to do things dif- iam, said they were interested in ure as CTC boss, Ollor took over ers and Small and Medium scale motivated to the initiative on the Enterprises (SMEs) operators in Benedict Maduagwu, assistant ferently in its drive to fast track the bringing international funding leadership of Eleme when there development of Nigeria’s oil-rich ground that hitherto Eleme as a Abeokuta, Ogun State, on Tuesday. director, currency operations de- to ensure that NDDC projects host community to multinational was a high degree of cultism, but partment, spoke on the need for the region, and told the South Korean were executed promptly and at The programme with the delegation: “What you are offer- companies including the nation’s through the deployment and co- theme, ‘Promoting financial stability public to respect the naira because it record time. operation of security agencies in costs so much to print a single note. ing is slightly different from what According to Anyiam, “the oil and gas free zone in Onne, had and economic development’ also we are used to but we are ready no platform to showcase its rich synergy in the state government, focused on enlightening the public “It is a crime to hawk naira. The current NDDC board is blessed said he has brought the crime CBN stands on hawking naira is to explore the opportunities in that we are bringing a new team culture and economy about their rights and privileges in the new area.” He explained, “Eleme is a scourge to its barest minimum. their customer relationship with that if you hawk naira and you are that will bring their funds to caught abusing it you will pay a fine Ekere thanked leaders of the develop the Niger Delta,” adding household name in the interna- He recalled that three notori- their banks. Korean firm for showing interest tional business community but ous criminals were eliminated Olu Vincent, deputy director, of N50,000 or six months imprison- that “Nigeria should be beyond ment or both,” Maduagwu said. in Nigeria and the Niger Delta, where it is today.” little is known about us. Eleme is and over 300 cultists embraced trade and investment department, noting that the oil-producing the heart beat of Nigeria economy the River State government am- CBN, said, “It is sensitisation of the Speaking at the sensitisation Anyiam noted that South fair, Oludamola Atanda, princi- region was in dire need of world- Korea possessed the technol- and the world is here through the nesty. Thus, he stated, security in general public on what the CBN has class infrastructure. the business community is now been doing over the past two years pal manager, consumer protec- ogy and resources to help in existence of the oil and gas free tion department, informed the He added: “Building infra- developing the Niger Delta, zone.” guaranteed while confidence has to stimulate the economy and pro- structure is an expensive venture duce economic development since participants of their rights and as “They are willing to bring The council boss explained been restored in the companies responsibilities, which include the and our access to fund is limited. in the funds and we are in- operating in the land where busi- the volatility in the oil price market, Yet, we need funds to move faster. that he embarked on the website to galvanise economy from the oil right to demand from their banks terested in bringing positive project to provide investors and ness owners operate without fear of information that would help We are interested in working change to the region.” of threats. to non-oil export which everyone with you to provide the financing the general public a platform to is clamouring for that we should lay them run their accounts. Friday 23 June 2017 C002D5556 BUSINESS DAY 35 NEWS $1.6bn fraud: Court grants permission to tender more evidence against Omokore

SEYI ANJORIN, ABUJA defence to sought for the charge to be dismissed, it was for the de- fendant to sort for more time and ustice Nnmadi Dimgba this was not what the defendant of an Abuja Federal High had asked of the court. Court has granted the Fed- The trial court did however eral Government permis- stroke out the application for Jsion to file additional proof of lacking in merit. evidence against Jide Omokore, Omokore, who had earlier, chairman, Atlantic Energy Drill- for the second time been granted ing Concept Limited, and others permission by Justice Dimgba, is standing trial with him. standing trial alongside Atlantic Having evaluated the argu- Energy Brass Development ments on the application to Limited, Atlantic Energy Drill- provide more evidence, the ing Company Limited, Victor court held that the jurisdiction Briggs, Abiyemembere and of courts to try offences was David Mbanefo, on a nine-count prescribed and dominated by amended charge of criminal statues. diversion of about $1.6 billion Going by the amended alleged to be proceeds of sale of charge filed by the prosecution, petroleum products belonging the court said, “there is no doubt to the Federal Government. L-R: Basheer Oshodi, group head, non-interest banking, Sterling Bank Plc; Eunice Obasohan, chairperson, Lagos chapter, NECA’s Network that they are offences creating The 5th defendant (Abiy- of Entrepreneurial Women (NNEW); Modupe Oyekunle, president, NNEW, and Fayo Williams, managing consultant, Simply Exponential statutes, which gave the court emembere) had filed an applica- Consult Limited, at the NNEW network meeting, themed “Collaboration: Key to Business Growth” in Lagos, yesterday. Pic by Olaale Amoo jurisdiction. tion challenging the jurisdiction Court held that the essence of the court, on the grounds that of practice direction was not in- the prosecution filed additional Finally, FG to kick-start asset sales as it tended to take away jurisdiction proof of evidence, which would of the court even when it had allow the prosecution call more been granted the jurisdictions. evidence. reconstitutes council on privatisation “Section 379 (2) of the ACJA, Counsel representing the ONYINYE NWACHUKWU, ABUJA Osinbajo, who inaugurated enterprises to be privatised as erating employment opportu- the prosecution can at any time 5th defendant averred before the council Thursday in Abuja, well as determine whether the nities, the intervention of the before judgement file additional the court that, with a new proof igerian govern- said the NCP since inception shares of a listed public enter- private sector enhances the evidence, as the law is trite on of evidence being filed before it, ment has finally had successfully concluded the prise should be by public or process of industrialisation, this. That section does not con- there was a need for the defen- inaugurated the privatisation and reform of over private issue or otherwise. delivers critical infrastructure tain any restriction as to admis- dant to approach the court for long awaited Na- 142 public enterprises. “It is also a demonstration of and services the country. To sion of additional evidence, nor interpretation, as the prosecu- tional Council on He pointed out that the in- our administration’s commit- him, the role can only be un- does it say that it is only evidence tion has to proof the need for NPrivatisation (NCP), paving the auguration of the NCP was a ment to public sector reform and leashed when government’s that is placed that can be review,” the additional proof of evidence. way for the commencement critical step in the process of the central role of the National role of regulating and creating the court held. Having allowed the prosecu- of possible sale of additional putting in place part of the in- Council on Privatisation (NCP) an enabling environment is Justice Dimgba averred that tion to file additional proof of evi- government assets to raise extra stitutional framework neces- in this process. Even though the robustly undertaken. where additional evidence was dence, the matter was adjourned cash for budget funding. sary for the actualisation of the public sector has been at the “This will in turn offer the brought by the prosecution, to July 5, 2017 for continuation Faced with tight cash condi- socio-economic agenda of the centre stage in the provision of private sector the required the approach was not for the of trial. tions, Nigeria is hoping to raise administration. critical infrastructure and ser- comfort and assurance to some N35 billion from sale of The NCP is a think tank vices cutting across the whole make investments and ex- Lagos, Emir of Kano, BoI, NEPC stand for its own assets to partly fund the sponsored by the Nigerian gov- spectrum of the nation’s life pect a reasonable return on N7.441 trillion budget for 2017. ernment to determine the politi- since independence, the emerg- thereon,” he said. The NCP, which is being cal, economic and social objec- ing importance and centrality of In his remarks, Alex A. diversification at Lagos leather fair reconstituted over two years tives of the privatisation and the private sector to the actuali- Okoh, DG, Bureau of Public agos State government, some developing countries. after the commencement of the commercialisation of Nigeria’s sation of the economic agenda Enterprises (BPE), noted that the Emir of Kano, the Besides, with long-term in- Buhari-led administration, is public enterprises. of the administration cannot recently a trend had emerged Bank of Industry and vestment, Nigerian stake- the fifth council since the enact- The Council holds the au- be downplayed,” Osinbajo also where certain institutions en- L holders can potentially share ment of the Public Enterprises thority to approve public enter- noted, as he inaugurated the gage in activities that were the Nigerian Export Promo- tion Council, all showed their what could develop into a (Privatisation and Commerciali- prises to be privatised or com- Council. tending to compromise and strong support for the diver- $104 million market for the sation) Act 1999. mercialised, the legal and regu- He stated that apart from conflict with the statutory sification of the economy as country over the next ten Acting President Yemi latory framework for the public playing a dominant role of gen- functions of the Bureau. they endorsed the first ever years. Leather Fair in Nigeria. The fair brought together Banks shun meeting with NCC over Etisalat... The Lagos Leather Fair held all those along the leather Ibadan flooding: Over 300 houses affected on Saturday and Sunday, June value chain including tan- Continued from page 33 a -12 percent, -2 percent and lost. Properties worth millions 3 -4, 2017 at Federal Palace ners, designers, shoemakers -0.3bp impact on our full year AKINREMI FEYISIPO, IBADAN and manufacturers, who dis- of naira have been lost to the Hotel, Victoria Island, Lagos. debt. 2017 forcast net profit, equity flood and we have made note cussed the challenges being ollowing the over five-hour The fair was a private ini- The company initially asked and capital adequacy ratios for of all buildings involved and the faced in the industry, identify downpour on Tuesday, tiative by leather handbag lenders to convert the dollar the banks, respectively. affected families. Soon, NEMA designer, Femi Olayebi, who possible solutions and pin- portions of its loans into naira to “The banks should easily be over 300 houses were af- point ways to improve the F will in his usual way come to believed that a change in the help it overcome the shortage of able to absorb a shock of this fected by flood with properties their aids through the state gov- narrative of leather industry quality and design of finished hard currency on the interbank magnitude,” head of Equities worth millions of naira lost in ernment. was necessary, having stum- leather goods. market but the lenders rejected Financials Research, Rahul Shah Ibadan, the Oyo State capital. “People should stop building bled on a 2014 World Bank The opening ceremony this. and Equity Research Analyst, The National Emergency had in attendance Waheed on floodplains and they should report that placed leather as The Telco went on to pro- Jumai Mohammed, disclosed. Management Agency, led by Olagunju of BoI, Segun endeavour to clear their drain- a potential second biggest pose a five percent equity stake Ibrahim Dikko, vice presi- the zonal coordinator (South- Awolowo, CEO, NEPC, Akodu ages. Most of these buildings earner of foreign exchange to creditor banks, to resolve the dent for regulatory affairs, was West), Yakubu Sulaimon, while Olalekan, permanent secre- did not observe the normal in Nigeria, after oil and gas. debt crisis, but that also col- quoted by Reuters yesterday as on assessment, said the agency tary, Lagos State Ministry of 30meters setback regulation; Nigeria, among other lapsed. saying Etisalat currently owed decided to visit the state capital Commerce and Industry and town-planning laws are not countries in West Africa is The Etislat Group, which banks around $575 million and to gather firsthand information considered as a potential Co-operatives, and Isyaku generates 3.7 percent of its rev- talks with lenders were ongoing. complied with. These are the and see for themselves the havoc source to supply tanned Umar Tofa (Danadalan of enue from Nigeria, is said to The total amount of debt consequences.” wrecked by the flooding in parts leather and finished leather Kano, representative of the have questioned the rationale outstanding was $227 million On his part, the state gov- of the city. products to developed and Emir of Kano). of investing more in Etisalat and 113 billion naira ($359 mil- ernor, Abiola Ajimobi, said all Going by the agency’s assess- Nigeria, when asked by banks lion), he told Reuters in a phone structures on waterways and ment, Yakubu said more than to recapitalise its affiliate as an interview. floodplains obstructing the free Eko Disco announces planned power outage 300 houses were affected dur- option, sources told Reuters. Exotix says Etisalat Nigeria flow of rivers might have to give ing the incident, stressing that However, UK-based frontier had struggled with several years way to forestall loss of lives and OLUSOLA BELLO cording to the release, are the agency had immediately and emerging markets invest- of losses due to low revenue, properties to flooding in Ibadan. the whole of Ikoyi, parts of ment firm, Exotix Capital, has tough competition and more swung into action by providing The governo,r who was rep- ko Electricity Distri- Victoria Island, parts of cen- said the impact of the medium- recently currency losses, adding relief materials to the affected resented by his deputy, Moses bution plc (EKEDP) tral Lagos Island and Yaba/ term seven-year facility secured its second-biggest shareholder people through the State Emer- Adeyemo, said this during an Ehas announced that Akoka axis. by Etisalat Nigeria from the Abu Dhabi state investment gency Management Agency on-the-spot assessment of areas there will be interruption in The routine maintenance consortium of 13 banks is man- fund Mubadala has been trying (OYSEMA). affected by the flood. The places power supply to some areas to be carried out was for ageable on the balance sheet of to divest its stake for some time. He said his assessments visited include Orogun, Shasha within its network between better efficiency of power Nigerian banks. One telecom analyst said had revealed loss of livelihood Alfonso, Egberi and Oki Rivers the hours of 10am and 2pm facilities so as to enhance The firm said the impact Etisalat Nigeria could struggle of many people, as properties in Olodo, and Onipepeye, all on Saturday, June 24, 2017. improved service delivery to of the $1.2bn syndicate loan to find new investors, putting worth millions of naira were lost within Ibadan. A release from the cor- the company’s customers. out of which about 42 per cent lenders in a weak negotiating to the flooding, and advised that ($504m) has been repaid, was position, although the company He used the opportunity to porate communications The company appealed buildings on floodplains should “modest”. could be viable if acquired by admonish residents to desist department of the company to its customers to please be vacated and demolished. “We estimate a modest im- one of its rivals. from bad habits that have been said the planned power bear with it for the incon- According to Yakubu, many pact on banks. At a headline Another option could be to found to cause flooding, noting outage was occasioned by venience the outage might house owners did not observe level, loans to Etisalat Nigeria restructure the loan, pending that the soul of every citizen and routine maintenance work cause, adding that supply the necessary regulations in put- represent 1.9 percent of aggre- any new investors coming along, their property were precious to be carried out on Ajah- would be restored immedi- ting up their structures. gate bank loans. Likewise on our Exotix said. Etisalat Nigeria has and would be protected by the Alagbon 132kv line. ately the maintenance work The NEMA boss said, “We was concluded. sensitivity analysis, the Etisalat initiated changes to its share- government. Areas to be affected, ac- loans would on average have holding structure. have seen means of livelihood Friday 23 June 2017 C002D5556 BUSINESS DAY A1 FT

Mylan investorsFINANCIAL vote against $98m Leadership - To build TIMESor buy the next boss? In association with Coury pay offer after EpiPen uproar Page A4 Page A3

World Business Newspaper Qatar Airways makes unsolicited bid for 10% stake in American Airlines PATTI WALDMEIR & CHICAGO TANYA A 10 per cent stake would make Qatar Airways one of American’s merican Airlines says largest shareholders, but American Qatar Airways, a Middle said in a statement that such a hold- Eastern rival criticised ing would not change its position for unfair competition, on its unfair competition claim. has made an unsolic- The plan had emerged in a Aited bid for 10 per cent of the US conversation between the chief carrier. executives of the two companies, The Doha-based airline intend- American said, without providing ed to take a stake of at least $808m, further details. American said the American said in a regulatory filing approach had been verbal and yesterday. that it had not yet received written It came as Qatar is embroiled in notice from Qatar Airways. a bitter dispute with Saudi Arabia, “American Airlines continues which has led a blockade of its to believe that the president and neighbour with three other Arab his administration will stand up to foreign governments to end mas- allies, including the United Arab Cecilia Malmström, EU trade commissioner Emirates. sive carrier subsidies that threaten Donald Trump, the US presi- the US aviation industry and that dent, has backed Saudi accusations threaten American jobs,” American that Qatar, which hosts the biggest said in the filing. US risks hitting allies as it moves to raise US military base in the region, American said anyone seeking sponsors terrorism. to acquire at least 4.75 per cent of The unsolicited approach also its stock was required to receive drawbridge on steel imports puts a new twist on the long-run- approval from its board after giv- a broad tariff on all imports or to set behalf. SHAWN DONNAN ning battle between American and ing written notice. Qatar Airways’ up a system of quotas and tariffs It also could provoke a messy other big US airlines and Middle investment would also trigger a that would in effect freeze imports trade war with other countries fter two years of lobbing Eastern rivals, including Emirates review by the antitrust division of from particular countries at exist- feeling compelled either to im- threats at the global econ- and Etihad of the UAE, as well as the US justice department. ing levels and charge tariffs on any pose their own national security omy as both candidate Qatar. Qatar Airways said it intended imports above those levels. restrictions on steel imports or to and then president, Don- American has accused the three to build a “passive position” in the Why is that contentious? retaliate against the US. company. It has been expanding Aald Trump is preparing to deliver - all subject to a US ban on laptops Firstly, in the trade realm, in- Cecilia Malmström, EU trade his first big protectionist action carried in the cabin of flights to the its global reach in recent years by voking national security to erect commissioner, has warned the bloc and potentially trigger a trade war. US - of receiving state subsidies that buying stakes in other airlines. It barriers is considered a nuclear would have to respond. So too, in Within days the Trump admin- give them an unfair advantage in is the biggest shareholder in IAG, option. World Trade Organisation all likelihood, would China and istration is set to announce the competing with US carriers. owner of British Airways. rules include a national security countries such as Brazil, South Ko- result of a special investigation into exemption designed to be used rea and Turkey that are significant whether US steel imports pose a in times of war. But experts be- sources of US steel imports. danger to the country’s national lieve the forthcoming steel move ‘System risk’ alert rocks Chinese security. The president and ad- would flout those rules and would ministration officials have left little thus be challenged by other WTO doubt about what their conclusion companies that gorged overseas members. will be, promising “bold” action to Such a challenge could be dan- protect the US steel industry. LUCY HORNBY & GABRIEL WILDAU said the China Banking Regu- gerous. It would be the first test of But what exactly does that latory Commission had in- the WTO’s national security excep- mean? And, for all the criticism structed banks to examine tion. Were the WTO to find against hina’s banking reg- pouring in, might the US actually their exposure to those three the US and the Trump adminis- ulator has ordered have a point? companies and Anbang, the tration to ignore that decision, it domestic lenders to What is Trump doing? unlisted insurer. would be a huge blow to the WTO’s check the “systemic The US in April launched a spe- Crisk” presented by “some large The companies are affiliated credibility. Were the WTO to find cial investigation into steel imports with a range of political factions, in the US’s favour, experts fear enterprises” involved in over- under a little-used provision of suggesting a broad crackdown it could give carte blanche to all seas buying sprees, sending a 1962 law that hands presidents by Beijing and underlining the WTO members to invoke national stock prices of some of the broad powers to limit imports if Communist party’s resolve to security more often, leading to a country’s most acquisitive pri- they are determined to be a threat tackle stability risks posed by protectionist free-for-all. vate-sector companies sharply to the country’s security. the use of unconventional fi- Secondly, the US is the world’s lower. Significantly, the provision nancing tactics. largest steel importer and a broad Shares in listed companies allows presidents to take action “This is a game changer for move would probably hit US allies controlled by Dalian Wanda, without Congress. That means Chinese M&A and could pretty such as Canada, Germany, South the property-to- entertainment Mr Trump has a largely free hand much stop all outbound deal- Korea and Mexico far more than giant, Fosun International, the to crack down on imports as he making in its tracks,” said Keith China, its intended target. In an consumer group, and conglom- chooses. Pogson, EY’s senior partner for unusual move, it has prompted erate HNA all fell as news of the In the case of steel, the adminis- financial services in Asia. Nato allies to complain and try to order spread through markets. tration appears set to either impose A senior banker in Beijing Continues on page A2 have the Pentagon lobby on their A2 BUSINESS DAY C002D5556 Friday 23 June 2017 FT NATIONAL NEWS In association with Bank regulators back plans for looser Wall Street rules BARNEY JOPSON top regulatory roles since Donald deregulatory proposals unveiled by in charge of financial regulation, also viewed in financial markets Trump’s election told lawmakers the Treasury last week, a response said: “We should assess whether we as a long-shot contender to replace ank regulators have en- they supported revamping the to Mr Trump’s call to dismantle the can adjust regulation in common Janet Yellen as Fed chair. On the dorsed several recom- Volcker rule ban on banks gam- Dodd-Frank post-crisis reforms. sense ways that will simplify rules Volcker rule, which banks com- mendations of a Trump bling with their own money and Congress is unlikely to pass and reduce unnecessary regula- plain inhibits their ability to do administration blueprint reducing the burden of annual wholesale changes to the 2010 tory burden without compromising legitimate market making, Powell Bfor loosening financial rules, in- bank “stress tests”. Dodd-Frank Act soon, but the safety and soundness.” said: “In our view, there is room for creasing the chances of Wall Street The comments from the Fed- regulator’s views matter because Mr Powell, a Republican, is eliminating or relaxing aspects of winning a reprieve that does not eral Reserve and the Office of the they have considerable scope to likely to be replaced as the Fed’s the implementing regulation that depend on action by Congress. Comptroller of the Currency of- water down existing rules. regulatory chief by a Trump ap- do not directly bear on the Volcker Two officials who have taken on fered the clearest support yet for Jay Powell, the Fed governor pointee later this year, but he is rule’s main policy goals.” ‘System risk’ alert rocks... ECB to shed Continued from page A3 Among other foreign assets light on its acquired by the companies, Da- lian Wanda bought Legendary bond buying Entertainment, the Hollywood movie studio, Fosun owns travel CLAIRE JONES group Club Med and HNA is Deutsche Bank’s largest share- he European Central holder, with a 10 per cent stake. Bank is to reveal more An official confirmed that details about its corpo- regulators were engaged in rate bond purchases af- “fact finding” but would not Tter demands for more transpar- discuss companies involved. In ency from European Parliament an email seen by the Financial members and campaigners. Times, a risk management ex- The decision is the latest move ecutive at Industrial and Com- by the bank to address concerns mercial Bank of China told col- that its officials are too secretive leagues to gather information about the way in which they con- on credit exposures to the four duct monetary policy. companies. The ECB is buying billions of The ICBC email also men- euros of corporate bonds as part tioned Zhejiang Rossoneri In- of its economic stimulus, known vestment, the vehicle used to Dieter Zetsche as quantitative easing, to pro- buy AC Milan, the Italian foot- mote growth and inflation. From ball club. Germany struggles to find employment for refugees next week it will list the corporate Shares in Fosun and its debt held by the national central healthcare unit Shanghai Fosun banks operating under the ECB’s it will absorb the 1.3m migrants gineers, but they were succeeded Pharmaceutical fell 5.8 per cent GUY CHAZAN wing, revealing details including and 6.2 per cent respectively in who have arrived here is still one by “many, many more who lacked the debt’s issuer, maturity and the Hong Kong, while HNA Group p to three-quarters of of voters’ key concerns. skills”. amount it pays in interest. ended 7.5 per cent lower. Germany’s refugees That explains the continuing A recent report by the Institute The ECB held just under €90bn In Shenzhen, Wanda Film will still be unem- popularity of the Alternative for for Employment Research (IAB) in corporate debt as of May and Holdings - Dalian Wanda’s only ployed in five years’ Germany, an anti-immigrant found that only 45 per cent of Syr- has faced accusations of with- Utime, according to a government party that is now represented in ian refugees in Germany have a listed unit - was off 9.9 per cent holding important information when it suspended trading in minister, in a stark admission 12 of Germany’s 16 regional par- school-leaving certificate and 23 about the purchases. While the late morning. The bonds of Fo- of the challenges the country liaments. The AfD’s poll ratings per cent a college degree. purchases are a small amount of sun and Wanda, both of which faces in integrating its migrant have fallen in recent months but Statistics from the Federal the €1.9tn the bank has spent on have borrowed internationally, population. the party is still expected to pick Labour Agency show the employ- QE, they have been among the were also hit. Aydan Ozoguz, commissioner up seats in the Bundestag for the ment rate among refugees stands most controversial aspects of the Regulators have been con- for immigration, refugees and first time in this year’s election. at just 17 per cent. It said 484,000 programme. cerned by the use of risky fi- integration, told the Financial Initially, the influx of so many of the refugees are looking for More than 40 MEPs have cam- nancing methods, including Times that only a quarter to a working-age, highly-motivated work, up from 322,000 last July - an paigned for the ECB and the raising cash by issuing high- third of the newcomers would immigrants spurred optimism increase of 50 per cent. national central banks to reveal interest financial products to enter the labour market during that they would plug Germany’s Of those, 178,500 are officially the names of the companies retail investors. Those products the next five years, and “for many acute skills shortage and solve unemployed, meaning they not benefiting from the purchases - to present companies with poten- others we will need up to 10”. the demographic crisis posed by only have no work but are not en- see whether certain companies tial short-term liabilities, since The admission could prove its dangerously low birth rate. rolled in any training programmes or economic sectors were be- investors can sell them in the awkward for Angela Merkel as Dieter Zetsche, chief executive or language courses - up 27 per ing favoured - and the amounts near future, that could be mis- she seeks a fourth term as chan- of carmaker Daimler, said the cent on last July. bought. matched against longer-term cellor in Bundestag elections this refugees could lay the foundation Researchers are noting a slight Some of that information is revenue streams gained from September. for the “next German economic improvement in the refugees’ available from central banks but acquisition targets. Ms Merkel saw her poll rat- miracle”. employment prospects. A study by a central list from the ECB would “The template was that if ings plummet in 2015 when she But those hopes have faded the Ifo Institute found 22 per cent provide much easier access to the you did one deal and regulators responded to Europe’s gathering as a new realism about the mi- of companies had hired a refugee data. The ECB will still withhold grants’ lack of qualifications and in the past year compared with didn’t like it, they told you and refugee crisis by throwing open details of the amount of each

language skills sinks in. “There just 7 per cent at the end of 2015. Germany’s borders. The issue bond that it has purchased. you stopped using that format. But if you didn’t get into trouble, no longer dominates the coun- has been a shift in perceptions,” However, they were mainly being Ramon Tremosa, a Catalan then everyone would copy that try’s nightly news bulletins, but Ms Ozoguz told the FT. Many of employed as interns, support member of the European parlia- structure,” Pogson said. pollsters say the question of how the first Syrian refugees to arrive staff and apprentices, with only 8 ment, hailed the move. in Germany were doctors and en- per cent hired as skilled workers.

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SECURE FAST AVAILABLE 24/7 Friday 23 June 2017 C002D5556 BUSINESS DAY A3 FINANCIAL TIMES In association with COMPANIES & MARKETS @ FINANCIAL TIMES LIMITED 2015 Mylan investors Boeing racks up $75bn in aircraft deals PEGGY HOLLINGER “It can take a long time for pre- sharp decline as airlines begin to liminary agreements to convert into integrate the new generation aircraft vote against $98m oeing claimed a rare tri- firm orders, which is the factual data they have ordered in a near-decade- umph over Airbusyesterday point that investors tend to track,” he long spending spree. as the US aerospace group said. “Given this, we would not be But according to FlightGlobal’s Coury pay offer wrapped up the Paris Air reading too much into the ‘record’ air show order tracker, total new BShow with aircraft orders and com- all-in tally from 2017.” business in Paris outstripped last mitments worth $75bn at list prices, Nevertheless John Leahy, Airbus’s year in Farnborough and was “roughly significantly more than its European outgoing head of sales who has made on a par” with the Paris show in 2016. after EpiPen uproar arch-rival. a name baiting his US competitor, At a combined 897, orders and It is the first time since 2012 that conceded defeat in the annual battle commitments won in Paris by the SIMON MUNDY paid Coury roughly $230m, ac- the US group has finished the four- between the two companies over world’s two biggest aircraft manufac- cording to company filings. The day frenzy of dealmaking in the lead, headline orders during the trade turers trumped those they secured ylan investors have EpiPen uproar hurt Mylan’s shares, announcing its highest level of net show. “Every dog gets his day and it at both the 2015 and 2016 summer voted against the which fell almost 30 per cent dur- orders and commitments for at least a looks like they won,” he said. air shows. drugmaker’s bum- ing 2016. But a campaign by some decade at 571 aircraft against Airbus’s Ihssane Mounir, Boeing’s recently Boeing’s decision to launch the per executive pay investors to oust Mr Coury and 346, valued at $42bn at catalogue appointed head of sales, savoured 737 Max 10 - 66 inches longer in the packets for 2016, Heather Bresch, Mylan’s chief ex- prices. the moment before revealing the fuselage than its older sibling the Max Ma year when the company sparked ecutive, was unsuccessful, while However, within hours of the final final count. “We have never done 9 - gave a big boost to reported orders public outcry over the price of its the “say on pay” vote was merely count, aerospace analysts were rais- a wrap up like this in the past,” he at the start of the week. EpiPen allergy medicine. advisory. ing questions over the quality of the said. “I am feeling the weight of do- The new aircraft was the best sell- Shareholder unrest at the com- The company did not disclose total. Excluding memoranda of un- ing that. This is probably one of our er of the show, with 361 orders and pany’s annual meeting yesterday the vote totals, but said: “We appre- derstanding, firm orders came to just busiest shows.” commitments from 16 customers. centred on a $98m pay package ciate our shareholders’ continuing 144 for Airbus, while Boeing refused Boosted by Boeing’s launch on Boeing launched the narrow-body for Robert Coury, chairman, which support of the Mylan board, which to quantify their number. Monday of a stretch version of its in a bid to recoup some of the mar- included a $20m cash bonus and has overseen the development of The proportion of these prelimi- 737 single-aisle family, the tally of ket share it has lost to Airbus, whose $51m of stock. a . . . strategy that has created sus- nary agreements was far higher than orders and commitments appeared popular A320neo family of single- The package made Mr Coury tained long-term growth and value expected, said Rob Stallard, analyst at to defy expectations. Most industry aisle aircraft has garnered close to 60 the highest paid US pharma- for shareholders, while also serving Vertical Research. forecasters had been predicting a per cent of the market. ceuticals executive in 2016: his the interests of other stakeholders.” remuneration was almost four Noting the defeat on the “say times higher than that of Alex on pay” proposal, Mylan added: Gorsky, the Johnson & Johnson “The compensation committee chief executive, even though J&J’s and board of directors will care- market value is 18 times larger fully consider these results, as well than Mylan’s. Mylan handed Mr as future shareholder input . . . in Coury the package for a year designing our compensation pro- during which the company came grammes going forward.” under intense criticism for raising Although the vote on remunera- the price of the EpiPen injector by tion is not binding, it represents an almost 500 per cent over a decade. escalation in Mylan’s stand-off with Over the same 10 years, Mylan some of its shareholders. Bank regulators back plans for looser Wall Street rules

BARNEY JOPSON “We should assess whether we can adjust regulation in common sense ank regulators have en- ways that will simplify rules and dorsed several recom- reduce unnecessary regulatory bur- mendations of a Trump den without compromising safety administration blueprint and soundness.” Bfor loosening financial rules, in- Mr Powell, a Republican, is likely creasing the chances of Wall Street to be replaced as the Fed’s regula- Igor Sechin, chief executive officer of OAO Rosneft. winning a reprieve that does not tory chief by a Trump appointee depend on action by Congress. later this year, but he is also viewed Two officials who have taken on in financial markets as a long-shot Rosneft clears last hurdle for Essar takeover top regulatory roles since Donald contender to replace Janet Yellen Trump’s election told lawmakers as Fed chair. On the Volcker rule, HENRY FOY & SOCHI SIMON MUNDY investment in India. cent each, leaving Essar Global they supported revamping the which banks complain inhibits In a deal agreed last October, with a stake of just 1 per cent. Volcker rule ban on banks gam- their ability to do legitimate market he delayed $13bn take- a consortium led by Rosneft, the People close to the deal say bling with their own money and making, Mr Powell said: “In our over of India’s Essar Oil world’s largest listed oil pro- it has been delayed by several reducing the burden of annual view, there is room for eliminating by a consortium led by ducer, agreed to buy a majority Indian banks with large expo- bank “stress tests”. or relaxing aspects of the imple- Rosneft has cleared its stake in Essar Oil from Essar sure to both Essar Oil and its Tlast serious obstacle, according Global, the holding company struggling sister company Essar The comments from the Fed- menting regulation that do not eral Reserve and the Office of the directly bear on the Volcker rule’s to the Russian oil group’s chief of the conglomerate, which Steel. Comptroller of the Currency of- main policy goals.” executive, Igor Sechin. has been struggling under a The lenders withdrew their fered the clearest support yet for On stress tests, which deter- Shareholders at the compa- heavy debt burden. Mr Sechin opposition to the transaction deregulatory proposals unveiled by mine how much capital banks can ny’s annual general meeting in says the deal will allow state- after assurances of a capital the Treasury last week, a response return to investors and have been Sochi were told yesterday by Mr controlled Rosneft to increase injection into Essar Steel, likely to Mr Trump’s call to dismantle the criticised for perceived opacity, Mr Sechin that “the legal decision its oil refining output by 20 per to amount to about Rs16bn Dodd-Frank post-crisis reforms. Powell said: “The Federal Reserve was received, which guarantees cent this year. ($267m), the person close to Congress is unlikely to pass is committed to increasing the the entry of the company in Es- Rosneft will take a 49 per cent Essar said. wholesale changes to the 2010 transparency of the stress testing sar Oil’s capital”. Mr Sechin was stake in Essar’s most profitable The terms give Essar Oil an Dodd-Frank Act soon, but the [process]. We will soon seek pub- referring to a notice given by business, which controls India’s enterprise value of $10.9bn, and regulator’s views matter because lic feedback concerning possible lenders to Essar Oil on Wednes- second-largest oil refinery and investors will pay a further $2bn they have considerable scope to forms of enhanced disclosure.” day, according to a person close 2,700 petrol stations. Russian to acquire a deepwater port on water down existing rules. Later yesterday the Fed was due to Essar, stating that they would investment group United Capi- India’s western coast from Essar Jay Powell, the Fed governor in to release the first in a two-part set withdraw their objections to tal Partners and commodities Ports, which will be folded into charge of financial regulation, said: of results from this year’s stress tests. the biggest ever foreign direct trader Trafigura will take 24 per Essar Oil. A4 BUSINESS DAY C002D5556 Friday 23 June 2017 FT ANALYSIS In association with Leadership - To build or buy the next boss?

ANDREW HILL These pressures have created tension between “build” and “buy” E has always been one models of executive develop- of the most meticu- ment. Peter Cappelli, director of lous companies when the Center for Human Resources it comes to grooming at University of Pennsylvania’s its leaders. But in an Wharton School, says he has seen Gera of looser networks and fre- a long decline in the number of quent job-hopping, its painstaking companies that wish to invest in method is becoming the exception. intensive, GE-style leadership de- General Electric’s newest prod- velopment plans. uct is a balding 55-year-old Ameri- “[The companies’] argument is can executive with a background that if we develop you, we’re just in finance and an international going to lose you, so why should pedigree. we do that?” he says. John Flannery rolled out of GE’s It is hard to put a figure on the factory for corporate leaders last amount spent on creating the week, ready to succeed Jeff Immelt next corporate leaders. Barbara in August as only the 10th chief Kellerman, a lecturer in leader- executive in the multinational’s ship at Harvard’s Kennedy School, 125-year history. His annuncia- estimated in 2012 that more than tion is the outcome of a process $50bn was expended on leader- as meticulous and intensive as the ship development annually in the manufacture of a composite fan US, including on business school blade for one of its aircraft engines. courses. Deloitte reckoned that in The news came in the wake 2013 US companies spent $15.5bn of recent pressure on Mr Immelt training future leaders. from investors, but GE says it began No more managers for life planning the succession in detail But many large companies in 2011 - when 10 candidates were prefer to spend money on hiring under consideration - and that ready-made senior executives the board identified this summer than on developing them, bidding Travis Kalanick as the ideal time to move to a new up executive pay in bloodier and leader as long ago as 2013. bloodier phases of the “war for tal- FutureNow. ferent platforms, how they lead,” suggests younger staff are clinging Mr Flannery, who runs GE ent” first identified by McKinsey, It includes talks by thinkers, she says. GE even structured the to career certainty amid political Healthcare, is a 30-year GE veteran, another consultancy, in the late entrepreneurs and sportspeople, job of country head in India for Mr upheaval. The findings raise the forged on its leadership produc- 1990s. workshops and an annual retreat. Flannery to give him experience in possibility that they may rediscover tion line and polished by carefully One private investment report, The executives are also linked to an running industrial activities. the virtues of traditional leadership selected assignments in the US prepared in 2013 to identify future online application, Sky Hive, that Unilever is another multina- training, in the same way they have and abroad. trends in spending on human allows them to tional with sufficient weight and woken up to the attractions of vinyl GE has always been among resources technology, estimated share ideas and watch devel- breadth to provide different as- records or hardback books. the most punctilious preparers of the total available market for job opment videos about wellbeing signments for promising managers. Realistically, though, some future leaders, drawing on best advertising and recruiting systems or emotional intelligence. The Leena Nair, the consumer products companies have to let their tal- practice from the Chinese Com- at $30bn. That was 10 times the size aim is not to provide technical or company’s chief HR officer, says it ented executives move in order to munist party’s central school to the of the future market for technology management training, which Sky designates some of them as “big bet develop, if they cannot offer them Boston Celtics basketball team. The to manage and develop existing also offers, but to encourage the talents” when they have completed opportunities within the organisa- GE way, though, is starting to look staff - a sign of where the priorities right culture and spark innovative five or six years. She says the long- tion. The HR head of a big Euro- like an expensive, even anachro- may lie. thinking. term benefits of “build versus buy” pean group says she keeps track of nistic, exception to the methods At the chief executive end of GE has long offered 650 of its far outweigh the costs of develop- a network of alumni, waiting for the used by many companies to shape the pipeline, the supply of leaders senior executives intensive lead- ing leaders within the group. “It’s moment she may be able to attract their future leaders - if they bother still looks healthy. Spencer Stuart, ership training at Crotonville, its much cleverer economically to them back. shaping them at all. the headhunting group, says only a training hub in the Hudson valley build your talent,” she says. Reid Hoffman, founder of The leadership meltdown at tenth of new chief executives at S&P north of Manhattan, or its satel- But, like Ms Peters at GE, she LinkedIn, has developed the idea of Uber, whose founder-chief execu- 500 companies were appointed lites abroad. It also sends the most add that such programmes need “tours of duty”, according to which tive Travis Kalanick resigned this from another company last year, senior on two or three-day visits to to be constantly updated to adapt companies set finite two- to four- week, has focused attention on the lowest level since 2004. places such as the D-Day landing to new requirements for leaders: year missions for staff, after which what can happen to organisations Problems can arise, though, beaches in Normandy, or to the “Every year we look at each other either party can decide whether that fail to develop their leaders. when companies do not have a bridge in Selma, Alabama, where and say, oh my god, we need to enough is enough. Big companies have long recog- deep enough pool of potential civil rights marchers clashed with do more.” nised that they can no longer turn replacements. Michael Birshan, armed police over voting rights for Tours of duty out leaders using a fixed template. a partner at McKinsey, says: “At African Americans in 1965. “They’re Younger managers fret, mean- As Mr Immelt said last week, his least some of the clients that I’ve meant to be moments of learning while, that they are not being successor was chosen not “for observed have been pulling in and reflection that people take offered the same opportunities what he knows [but] for how fast more leaders from outside. There back to their [work] environments,” as the generations above them. we think he can learn”. aren’t jobs for life and employees says Susan Peters, GE’s senior vice- A 2016 survey of millennials by Apart from the inevitable pres- don’t want jobs for life.” president for HR. Deloitte found that 63 per cent of sure on training budgets, the shift As a result, he says, “there are In the category of bespoke pro- employees born since 1982 said from corporate hierarchies to going to be fewer companies over grammes, Johnson & Johnson their leadership skills were not be- looser networks and the devolution the whole economy that build their has given seven of its most senior ing fully developed. of power to self-managed teams own”, and it will become more im- executives a team of specialists, Ms Nair says properly struc- mean companies can no longer portant for companies to be able to including a dietitian and a perfor- tured development plans attract be run by command-and-control integrate talented executives from mance coach, to shield them from and keep younger managers, de- leaders taught from management other organisations. burnout. The healthcare company spite their often-cited desire to flit manuals. Boardswant to pick from Companies that run deeper this year launched the $100,000 between jobs. “If you say [to them] a more diverse and international leadership development initiatives programme for other companies, you’re going to be doing this job cohort of future leaders - a range swear by their usefulness, but rec- too. for five years and it’s going to be that may not be available inter- ognise that the way in which they Ms Peters recognises that GE has broadly the same, of course you’re nally. choose, train and retain their future the advantage over smaller compa- not going to keep them. At the same time, promising leaders has to change, in part to de- nies, in that it can tailor training for “But if you say you can shape younger employees, whom or- velop softer skills, such as empathy its high-potential executives, and this and, by the way, maybe you’d ganisations used to count on to or creativity. rotate its future leaders between also like to take part in this project stay for decades, expect to move For its 130 senior executives, different jobs. “All of the candidates about something that excites you, more frequently, or break out as Sky, the UK-based broadcaster, [for chief executive] were given then they’re going to stay.” entrepreneurs in their own right. organises a programme called moves, to demonstrate, from dif- The latest Deloitte report also BUSINESS DAY NEWS YOU CAN TRUST I FRIDAY 23 JUNE 2017 C002D5556 Heard ON THE Street What is a brand?

brand in its simplest form is the name of a product or service. So you have a tooth paste called “Close up” or a company that offers a financial service called “GTbank” or a provider of financial news called “Bu- AsisnessDay.” Just by calling the name, you are able to identify the product. This can even by personalised when we say that your name is your own brand. It is just that you normally do not get to choose your name. Your parents choose it for you but most of the time, many families want their names to represent a brand. Right now imagine if the person sitting next to you intro- duces himself as “Evans.” I am sure, you will smile. That is the power of a brand albeit a brand that has been destroyed by just one single act of a misguided individual. So let us go into the wider meaning of a brand. David Ogilvy, a marketing guru defined brand as the “intangible sum of a product’s attributes.” But as we say in street parlance, that is too much grammar. In ordinary terms, a brand is what people think of you when they hear the name of your product or service. So what comes to your mind when you here Coca Cola or GTBank or BusinessDay? What comes to your mind when you here “Evans” or Etisalat or MTN? Please note that what people perceive may not necessarily align with reality. It could be totally wrong or true, it does not matter. What matters is that that, it is their perception of your brand. Why brands matter? Why do you choose a bottle Fanta over Mirinda or Bournvita over Milo or Peak Milk over Coast Milk? The unforeseen hand that makes you make these decisions that you take as your own

Telecom firms deep troubles

t is no secret that has lost more than 50 subsidiary is unable to they have to ensure that decisions is the very reason why brand matters. a major telecom percent of its value com- pay the debts, the parent the company does not People unconsciously make decisions based on their firm is in trouble pared to when the tel- company, with a deep just abscond easily from perception of a brand. That perception could be positive or with its bankers. ecom firm took the loan. pocket, was expected to the shores of the coun- negative. When it is positive, people will chose that product After advancing Now the parent com- step in and bailout the try. or service, when it is negative, people will avoid that product more than a billion dol- pany of the telecom firm Nigerian subsidiary but There is the fear that or service. I Please note that a positive or negative experience does not lar to the firm about three has given notice that it instead of doing that, it the action of the telecom is absconding from its firm will significantly have to come necessarily from a personal contact with a brand. years ago, the telecom is transferring its share- It most of the time comes from secondary sources experience is now unable to repay holding in the company. responsibilities, leaving also raise the cost of bor- the Nigerian subsidiary, rowing for other telecom with a brand. even after the banks have Bank see this as a A brand gains traction from several individual positive creditors, vendors and firms operating in the looked for ways to ac- clever attempt to dodge experiences which soon becomes a positive perception that commodate a restructur- liability since most banks even the Nigerian gov- country. The action has drives the brand acceptance. On the other hand, a negative ing plan. got the guarantee of the ernment dry. changed the risk per- brand perception can come from just a single experience that The telecom company parent company before The banks are not ception in the industry, soon spreads. basically says that it can- agreeing to advance to happy about the action which will impact nega- People love brands, because it simplifies their choices. So not repay the loans based its Nigerian subsidiary of the parent company tively on existing play- there are about 10 to sausage brands in the market. You defi- on the current exchange the loans. and are already consid- ers, banking sources tell nitely do not have time to sample all the brands of sausages in rate of the naira, which Now that the Nigerian ering what other options “Heard on the Street.” the market so you simply ask for “gala” and move on. Brands also can be a thing of class. You here brand names like Nike shoes. There are those who say they do not wear anything but a Nike shoe or wear a shirt except it is Hugo Boss. The silent oil workers strike The truth is that if you take the label from that product, it is likely not be much different from a competing product with less brand recognition. here is indi- up at work yesterday planned staff ration- early. So what makes a brand stand out? cation that the morning. This forced alisation exercise. They The strike action is There are several things that can make your brand stand out. workers of an senior staff of the oil claim that they have not coming at a time Nige- The first is originality. Do not name your brand Guzzi in a bid to Oil Major, one company to step in and been carried along in ria’s crude oil produc- look like Gucci. That is not making you original. Even if you are Tof Nigeria’s Joint Ven- keep production run- the planned exercise. tion is expected to rise not sued, you have already downgraded your brand to a second ture partners downed ning. There is fear that to more than two million hand brand forever. their tools yesterday The staff are said the strike action could barrels per day in August. Also be sincere and honest with your brand promise. If you but surprisingly, as at to have downed tools spread to other oil ma- Even though at the same promise to do nothing but quality shoes that will last a lifetime, yesterday (June 22) in a protest against a jors if its not resolved time, crude oil prices be quick to replace a customer’s shoe that goes bad in six months. evening not even the have been falling in the Be relevant to your market. Do not go and sell water near Ikogosi unions were ready to international markets. spring unless you can colour the water. Consistency also matters. admit that they were The strike action Do not make good shoes today and bad shoes tomorrow. If you are The strike action could impact negatively a tailor and you promise to deliver your clothes in two weeks, be on strike. could impact negatively consistent with your delivery time and the quality of your product. However, sources on Nigeria’s production but also lead to on Nigeria’s production Another key to having a strong brand is to be visible. In public in the oil and gas sec- spike in the prices of crude oil in the but also lead to spike relations, we say do not blink in the dark or no one will see tor have confirmed to in the prices of crude you. Finally, be sure you are offering value. If what you offer is “Heard on the Street” international markets, which Nigeria oil in the international not valuable, people will soon find you out and abandon you. that staff of the oil com- markets, which Nigeria Value is the glue that keeps your customers coming back and pany refused to show would not benefit from. would not benefit from. spreading the word about your brand.

Published by BusinessDAY Media Ltd., The Brook, 6 Point Road, GRA, Apapa, Lagos. Ghana Office: Business Day Ghana Ltd; ABC Junction, near Guinness Ghana Limited, Achimota – Accra, Ghana. Tel: +233243226596: email: [email protected] Advert Hotline: 08116759801, 08082496194. Subscriptions 01-2950687, 07045792677. Newsroom: 08022238495 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590.