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NSE Bitcoin Everdon Bureau De Change FMDQ Close Foreign Exchange Treasury bills fgn bonds - $43.9bn Foreign Reserve Market Spot ($/N) 3M 6M 5 Y 10 Y 20 Y Biggest Gainer Biggest Loser Buy Sell Cross Rates - GBP-$:1.31 YUANY-N52.77 ₦2,346,859.67 +0.79 pc -0.02 -0.12 Nestle Unilever $-N 358.00 361.00 I&E FX Window 364.27 -0.04 -0.30 -0.08 N1405 0.36 pc N42 -6.67 pc Commodities Powered by £-N 470.00 478.00 CBN Official Rate 306.45 12.75 13.13 14.97 15.17 15.07 Cocoa Gold Crude Oil 32,417.70 €-N 407.50 415.50 Currency Futures NGUS DEC 26 2018 NGUS MAR 27 2019 NGUS SEP 18 2019 US $2,102.00 $1,191.10 $84.58 ($/N) 364.27 364.72 365.62 FG to lose 29% of October earnings as subsidy overshadows oil rally Property prices LOLADE AKINMURELE & DAVID IBIDAPO seen dropping as igeria’s Federal politicians seek Government could lose as much as N67 billion to de- election funds fending a retail CHUKA UROKO petrolN price of N145 per litre in October, according to Business- n the run up to Nigeria’s Day estimates. general elections in the first That is 29 percent of the Iquarter of 2019, property estimated N233.4 billion oil prices will go down further from earnings for all of October, the present levels, as it is expect- an unnecessary expense for a ed that the market will be receiv- country with a budget deficit ing more assets from politicians of N2 trillion. seeking quick funds to contest Oil’s march beyond $80 per barrel holds a mixed bag for Ni- Continues on page 38 geria. On the one hand, it boosts government revenue but on the other hand, it increases the cost Inside of subsidising petrol for busi- nesses and households. BusinessDay holds 2018 Continues on page 38 edition of CEO Forum P. 2 2 BUSINESS DAY C002D5556 Wednesday 10 October 2018 NEWS BusinessDay holds 2018 edition of CEO Forum MICHEAL ANI & BUNMI BAILEY The second panel features Chiedu Osakwue, Director-General (NOTN); usinessDay, Nigeria’s lead- Segun Osidipe, Director, Economics ing business newspaper is and Statistics, MAN; and Mauricio holding the 9th edition of its Alarcon, MD/CEO Nestle Nigeria. Annual CEO Forum on to- The second panellists will speak on day,B (Wednesday October 10th) at the “Nigexit: Could Nigeria turn its back Civic Centre, Victoria Island, Lagos. on the continent. Dissecting views on The theme of this year’s Summit the African Continental Free Trade is “Leadership in Unfamiliar Terrain”, Area (AFCFTA) Agreement. and will feature top Chief Executive The third panellists will speak Officers in different countries of the on “Fortified Alpha: Recalibrating world and across all sectors within the Nigerian Capital Market for Re- and outside the country. silience and Outperformance”, with More than 25 CEO’s have been members including Isyaku Bala Til- confirmed to grace this year’s edi- de, Acting Executive Commissioner, tion, among whom are Abayomi Operations, Securities and Exchange Awobokun, CEO Enyo Retail and Commission; Mohammed Garuba, Supply, an oil and gas firm that is Partner, Cardinalstone Partners Lim- playing in the downstream sector ited; Mathias Althoff, Partner, Tundra and located in Lagos Nigeria. Founder SE; and will be moderated L-R: Maikanti Baru, group managing director, Nigerian National Petroleum Corporation (NNPC); Abdulsalami Chiedu Osakwe , Director- by Wole Famurewa, Anchor CNBC. Abubakar, former head of state, and Yakubu Gowon, former head of state, at the 2018 NNPC National Science General, Nigerian Office for Trade “Optimising Cost-to-Serve: Ex- Quiz Grand Finale, which Enugu State won in Abuja, yesterday. Ogun was second, followed by Edo. NAN Negotiation(NOTN), Bola Onadele, ecuting a winning retail strategy CEO FMDQ OTC securities, Bolaji amid shrinking customer wallets”, balogun, CEO Chapel Hill Denham, will be the topic that will be discussed Amy Jadesimi, CEO Ladol Free Zone, by the fourth panellist session. This Yemi Osindero, Managing Partner, session will see CEO,s within the R- Focus shifts to Air Peace Uhuru Investment Partners and commerce and retail space provide Georgios Polymenakos, Country insights on the workings in their sec- Manager, Coca-Cola Hellenic Bot- tor. These panellists include Abayomi tling Company to mention but a few. Awobokun, CEO Enyo Retail & Sup- financing, expansion model The 2018 edition CEO forum will ply; Georgios Polymenakos, Country kick-start exactly at 9:30 am, with an Manager, Coca-Cola Hellenic Bot- executive address from Mauricio tling Company; Juliet Anammah, Iheanyi Nwachukwu & Ifeoma Okeke The 737 MAX 8 is part of a family Tayo Ojuri, an industry expert Alarcon, MD/CEO Nestle Nigeria. CEO, Jumia; Kachi Onubogu, GED, of airplanes that offer 130 to 230 seats who spoke to BusinessDay lauded In addition to this address, the tropical General Investments; and ir Peace, one of Nige- and the capacity to fly up to 3,850 the airline for “doing well locally”. conference will also feature educat- will be moderated by Feyi Olubodun, ria’s domestic carriers, nautical miles (7,130 kilometers). Ojuri, who is the Chief Executive ing and informing panel discussions MD/CEO at Insights Publics. is just four years old this With improvements such as the Officer, Aglo Limited, an aviation from CEOs of the leading organisa- The last CEO’s on the panellist will October but the airline’s CFM International LEAP-1B engine support service said, “it is some- tions across strategic sectors of the be Amy Jadesimi, CEO LADOL Free expansion model has be- and Advanced Technology winglets, thing to be happy about, especially economy. Subsequently, the first Zone and Nnaeto Orauike, Group comeA a subject of study in the board the 737 MAX will help Air Peace save succeeding in an industry in which panel of discussants will speak on MD, Genesis. Both will hammer on the rooms of others that are still gasping more than 20 percent on fuel cost, many airlines have failed.” “Plastering the cracks: A conversa- topic “Business legacies that endure: for growth. compared to its current single-aisle He however thinks growth should tion on the state of road infrastruc- Passing the torch across generations”. In addition to sustainable source airplanes. be strategic and well planned. “It is ture in Nigeria’s commercial capital”. Since 2009, BusinessDay Media of financing, passenger safety and Allen Onyema, chairman of Air- good to know that AirPeace is looking These discussants comprise Opuiyo Limited has brought together hun- on-time flights services are key to an Peace said the airline has come for strategic alliances and partner- Oforiokuma, MD/CEO ARM-Harith dreds of Chief Executive Officers airline’s growth. to stay and is ready to compete ships. For the international flights to Infrastructure Investment; Bolaji and Managing Directors, as well as Air Peace recently signed a deal with any international airline. He actually be sustainable, you need to Balogun, CEO, Chapel Hill Denham C-Suite Executives of Multinationals, with a United States-based airline disclosed that the 10 B737 aircraft have that international partnerships and Chief Investment Officer, Nige- Major Companies, Top-tier Organ- manufacturer, Boeing, for the pur- it purchased would be deployed to and alliances. This will make them ria Infrastructural Debt Fund; Kunle isations and SMEs to the Annual chase of 10 new aircraft, an order the Lagos-Paris; Lagos-Frankfurt; codeshare to transfer passengers and Elebute, National Senior Partner CEO Forum. Subsequently, the CEO which on arrival will increase the Lagos-Amsterdam; Lagos-Milan; cargo with other airlines. KPMG Nigeria; and will be moder- airline’s fleet size to 37. The newly -or Abuja-Jeddah; Kano-Dubai and “The other thing that is key is dered 737 MAX is the fastest-selling Enugu-London, adding that the that they have to define what kind of ated by Macaulay Ataisie, Managing Continues on page 38 Partner, Nexton Business services. airplane in Boeing history, accumu- B777 would be used on the London, model they are running. You find out lating more than 4,700 orders from United States, China and Johannes- Turkey, NACCIMA, NIA, 102 customers worldwide. burg routes. C ontinues on page 38 others back BUILDMACEX Coca Cola to complete acquisition of Nigeria’s Chi in Q1 2019 Daniel Obi president of Coca-Cola’s West Africa 100 percent complete acquisition tlantic Exhibition, the or- sector towards international stan- business, told Reuters. three years later is a strategic step ganisers of the annual con- dard practices” – the Chief Executive oca Cola, the global fore- According to sources, the parent to leapfrog into value added dairy, struction trade fair tagged, Officer of Atlantic Exhibition, Mr Paul most beverage brand, is company of the Lagos-based Chi which is an emerging and high “Building, Construction Olugbade, said, “We are passionate likely to complete acquisi- Limited, Tropical General Invest- growth beverage category where andA Machinery Exhibition,” or sim- about resolving today’s building and tion of Nigeria’s Chi Lim- ments (TGI) Group, owned by a Eu- Chi has gained leadership and built ply BUILDMACEX, has partnered construction challenges and believe ited,C a top juice company, early next ropean family, had been considering a strong competitive advantage over with the Turkish government to- this event will be a rallying point for year, BusinessDay gathers. sale of the company for some time. the years. wards bringing innovation to the all stakeholders, including architects, The value of the complete acqui- Apart from Chi, TGI is into agribusi- The planned full acquisition, if Nigerian construction industry. builders, surveyors, developers, sition is still under wraps, but in 2016 ness involving seed multiplication, actualised, will enable Coca-Cola The firm said this in a statement agents, stakeholders, engineers, Coca Cola made initial equity invest- fertilizer distribution, cotton, cocoa reclaim leadership of the Nigerian while preparing to anchor the fifth interior designers, contractors; land ment of 40 percent in the company and vegetable oil milling as well as juice market it lost to Chi Limited a edition of the fair between October 16 owners, distributors, wholesalers estimated to be in the range of $300 healthcare products with Chi Phar- couple of years ago and also build a and 18, 2018, at the Eko Convention and major retailers in the industry.” million to $400 million, as analysts, as maceutical, which owns a WHO ap- strong capability to expand its West Centre, Eko Hotel & Suites, Lagos. Some of the speakers billed to of 2016, put the value of Chi at about proved plant. TGI is also into oil and African portfolio of still beverages. The event is to hold between engage the audience at the plenary $1 billion. gas, industrial chemicals manufac- This investment is clearly aimed at 10.00am and 5.00pm daily. and breakout sessions include - Arc. After the acquisition of 40 per- turing and real estate development. consolidating Coca-Cola’s leader- Stating that the event would Tonye Briade -President of NIA; Bldr. cent equity, Cola-Cola had last two The acquisition, according to ship of the Nigerian beverage market. feature conferences, exhibitions, Kenneth Nduka - President of NIOB; years indicated plans to increase sources, is part of global strategy It is not clear whether Coca-Cola technical sessions and product pre- Prof M.O. Dada - HOD, Department ownership to 100 percent within by Coca Cola, the US company, to will rename Chi Limited after the sentations, the firm said the fair had of Building UNILAG; and Arc. Adobe three years, subject to regulatory diversify from its core business. full acquisition or allow it to operate been endorsed by the National Asso- Njoku - President of Nigeria Institute approvals, while working on other The Coca-Cola Company, whose under the Chi brand name. ciation of Chambers of Commerce, of Architect, among others. long-term commercial structures. flagship brand (Coca-Cola) is the Coca-Cola is showing confidence Industry, Mines and Agriculture The statement added that over Chi, maker of Chivita juice brand world’s most recognised brand with in Nigerian economy. Nigeria with (NACCIMA); the Nigerian Institute the years, the firm had through its and Hollandia yoghurt, is the mar- a brand value of about $84 billion, estimated population of about 180 of Architects; as well as the Nigerian exhibitions brought together over ket leader in juices and value added is the largest player in the Nigerian million (comprising about 90m Institute of Quantity Surveyors. 80 exhibitors and 3,000 visitors from dairy, and its product portfolio in- beverage industry and its brands are youth population), high urbanisa- Speaking on the purpose for the over 20 countries, including Nige- cludes iced teas and snacks. present in almost every home. tion and a growing middle class is trade show – with the theme, “Build- ria, Turkey, Portugal, Lebanon, the “We are still on track to complete The company’s decision to invest certainly a huge market that is hard ing an ecosystem for innovating: United Arab Emirates, the United the acquisition (of Chi Limited) by an undisclosed amount to acquire 40 to ignore, particularly for fast moving Repositioning the Nigerian building Kingdom and China. the end of Q1 2019,” Peter Njonjo, percent of Chi Limited in 2016 with consumer goods companies. Wednesday 10 October 2018 BUSINESS DAY 3 4 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 BUSINESS DAY 5 6 BUSINESS DAY C002D5556 Wednesday 10 October 2018 NEWS AXA Mansard partners Richardson Oil and Gas on the 10th edition of Health, Safety, Security and Environment Forum XA Mansard – a Officer of AXA Mansard, Mr. member of the AXA Kunle Ahmed stated that, ‘As Group, the global a global brand, AXA Mansard leader in insurance is delighted to have been a andA asset management has part of this forum. We see it again partnered with Rich- as an excellent channel for ardson Oil and Gas Limited industry professionals and to organize the PSRG – Rich- experts to come together to ardson Health, Safety, Secu- learn, discuss current trends, rity and Environment (HSSE) brainstorm about industry Forum. challenges and offer practi- The HSSE Forum is a plat- cal solutions to Health, Safety, form for the meeting of major Security and Environment is- players and HSSE practition- sues.’ ers in various sectors to meet, Special Recognition discuss, analyze issues in Awards were presented to Health, Safety, Security and members of the PSRG-Rich- Environment (HSSE) prac- ardson Technical Committee tices in Nigeria and relate and also presented to AXA L-R: Arvind Pathak, chief operating officer, Dangote Cement plc; Odeyeyinwa Kazeem Olayemi, managing director, Kazas these with international best Mansard Insurance plc in ap- Heritage, (One of the 10 winners), and Joseph Makoju, group managing director, Dangote Cement plc, during the presentation practices. preciation of their support to- of GAC GS8 car for top performing distributor of Dangote Cement, in Lagos. The just concluded forum, wards the success of the 10th which held on the 25th & 26th anniversary of the Forum. September, 2018 at The Con- There was also a raffle draw 561,000bpd capacity refineries suffer set back as licences expire vention Centre of the pres- during the forum with all pro- OLUSOLA BELLO tigious Eko Hotel and Suites ceeds donated to the Modupe ... lack of funds put promoter in disarray was its 10th anniversary. It Cole Memorial Child Care aucity of fund has whenever they are ready in technical terms cannot certified its fabrication pro- was chaired by Mr. Tony At- and Treatment Home School. crippled efforts to continue work, but they be called modular refinery, cess units fit, but they could tah, Managing Director, Ni- Mr Ahmed concluded of 15 companies will have to start the pro- while the remaining five are not ship them in-country geria LNG Limited. The event that, ‘The 2018 PSRG- Rich- given licences to cess all over again. conventional refinery be- from the United States of was also graced by dignitaries ardson HSSE Forum was establish refiner- The refineries havecause they planned capaci- America, and was taking from various sectors the Ni- indeed an educative and Pies with combine capacity capacities ranging from ties of 100,000bpd capacities over by AMCON. gerian economy; including eye-opening event. Not only to produce 561,000 barrels 5,000bpd to 107,000bpd, and above. The exposure of banks to Oil and Gas, Marine, Security, were beneficial insights into per day (bpd) of petrole- and they are to produce pe- The licensees have one the oil and gas sector, which Manufacturing, Engineering, HSSE practices offered, inter- um products, and this has troleum products such as major challenge, which is runs into several billion of Finance, Construction, Tele- esting Nigerian content were caused their licences to ex- petrol, Liquefied Petrole- their inability to source fi- naira, is said to be the major communications, Health and also shared. AXA Mansard pire. um Gas (LPG), household nance. Some of them have reason banks are not inter- Insurance sectors. remains dedicated to achieve According to a document Kerosene, Automotive Gas carried out the front-end en- ested to give out loans for Commenting on the ini- excellence and international from the Department of Pe- Oil (AGO) and Low Pour gineering design (FEED) but such projects. tiative, the Chief Executive standards in HSSE practices. troleum Resources (DPR) Fuel oil (LPFO). have not been able to pro- Apart from these 15 com- cited by BusinessDay, li- Of the 15 refineries, 10 ceed beyond this because of panies above, there was one cences to established (LTE) are classified as modular lack of fund. Kainji Resource Limited Abolish death penalty, group urges FG given to some of the com- refinery. But in real sense, For instance, the popular meant to be sited in Oguta, “HURILAWS is of the view; panies in 2015 have expired. about seven of them belong Amakpe Refinery planned Imo State, and which had INIOBONG IWOK that since the Death Sentence to the category called con- for Eket in Akwa Ibom State had it FEED granted approv- The licences have two years group, the Human passed on convicts are never expiration period. ventional refinery because has had it licence for ap- al but the regulatory agency carried out and will never be their capacities are more proval to construct (ATC) said it was still awaiting the Right Law Service Insider sources from (HURILAWS), has carried out; there is no more the DPR say the companies than 10,000bpd and are to revalidated since 2007. The submission of detailed engi- constitutional justification for produce more than petrol. only thing that had hap- neering design, even though advised the Federal still have opportunities to GovernmentA to urgently abol- the Sentence of Death. revalidate their licences Any refinery that has pened after that was that its licence to establish had “The punishment of death above 10,000bpd capacities the DPR went to inspect and expired too. ish death penalty in the coun- try’s Constitution and also is protected under Section 33 upgrade infrastructure in the (1) CFRN 1999 ‘ in the execu- nation’s prisons. tion of the sentence of a court’ Kaduna traders laud FG’s financial inclusion scheme for SMEs HURILAWS in a statement and when those who should it was a very fair process. to newsmen Tuesday in La- sign death warrants are un- KELECHI EWUZIE prosperity of all Nigerians ir- loan of N10, 000; they qualify respective of their educational for higher sums of N15,000, “I have received the mon- gos to mark the World Day willing to, it becomes clear raders at the Abuba- qualifications or background. N20,000, N50,000 and ey and I immediately invest Against The Death Penalty, that the Sentence of Death is kar Gumi Central Cross section of traders N100,000. He said the loan it on my business.” Onne with the theme:’ Dignity for unconstitutional since Sec- Market, Kaduna made this known after the was meant to empower them added. All’, noted that there was no tion 33 (1) covers execution State, has lauded the Vice President Yemi Osinbajo to expand their businesses Jafar Abubakar, a trader in justification for the continue not sentencing in vain keep- TFederal Government for its launched the Federal Govern- and trade. In an interview ginger and garlic admitted his retaining of death penalty in ing the convicts in the Death National Social Investment ment’s programme tagged: with one the beneficiaries, initial scepticism about Tra- the country’s Constitution, Row indefinitely. Programme scheme geared Trader-Moni, in Kaduna State Esther Onne, who was full of derMoni but had a change of when various state governors “HURILAWS therefore towards boosting financial Osinbajo who was accom- praises for the vice president, mind when he was registered. are unwilling to sign death calls on Judges in Nigeria to inclusion for small medium panied by Governor Nasir said the money will go a long He noted with the delight that warrant into law, while also employ activism to declare enterprises. el-Rufai and other dignitar- way to drive her food stuffs the process was very easy and advocating that death penalty this practice unconstitutional. They observed thaties went round the market market. did not require him to provide should be declared illegal. HURILAWS also calls on fed- through the Trader-Moni amidst tight security to ac- She said, “I really appreci- any documents or qualifi- The group urges Judges to eral and state governments in initiative, massive potential in knowledge beneficiaries and ate our vice president for pro- cations. He said the money campaign against the aboli- Nigeria to stop torturing and the informal economy will be encourage them to always moting this initiative. I have will be used in expanding his tion of death penalty in the traumatizing death row in- unlocked which in turn sup- judiciously use the loan. heard about the success of the business. In his words: “I will country, while equally charg- mates by either abolishing the ports government’s agenda on Speaking at the launch, scheme in other parts of the use the N10,000 to buy more ing the Federal Government death penalty or signing into poverty alleviation, job crea- Osinbajo said when the trad- country but I thought it will be ginger and garlic which will to promulgate a death mora- law a death penalty morato- tion, financial inclusion and ers repay the collateral free politicised but to my surprise help me sell more. torium law. rium law. Wednesday 10 October 2018 BUSINESS DAY 7 8 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 BUSINESS DAY 9 10 BUSINESS DAY C002D5556 Wednesday 10 October 2018 comment is free COMMENT Send 800word comments to [email protected] SMALL BUSINESS HANDBOOK The Nigerian Economic Society at 59: Where is the agricultural value chain? in Nigeria. It also caught the bug for our present economic pass. conference theme, which was wo- of agriculture. At 59, every Nigerian At the 2018 annual conference ven around agriculture, echoes worker is expected to ready himself ‘ of the society, which had the theme the current mantra of government for inevitable retirement, so as to We cannot achieve food “optimizing agricultural value – focus on agriculture – optimiz- make way for the younger genera- chain” I had taken advantage of my ing value chain in the agricultural tion of public servants to also serve security when state role as Chairman of one of the break- sector. Although some criticised their fatherland. This makes the out sessions to remind the society the conference theme as not being EMEKA OSUJI number 59 somewhat scary, if not governors have made that if it were a person in Nigerian sharp enough or not speaking to the Dr Emeka Osuji nightmarish; in a certain sense, for public service, it would have been Nigerian condition of the moment, School of Management and all public servants in Nigeria. In it a point of duty to busy winding down its activities valuable issues were raised and Social Sciences fact, for some not-so-obvious rea- in preparation for retirement as it discussed around agricultural value Pan Atlantic University sons, workers in the public sector acquire the best pieces clocks 60 in 2019. chain. However, there were those Lagos. [email protected] @Emyosuji in Nigeria are afraid to retire from But the NES is not a human per- who believe that the problem is not their jobs. of land in their states son or Nigerian worker, and so has whether we maximize or optimize Clearly, the civil service is no nothing to fear about age 59 except the value chain in agriculture but longer as protective of the worker for the private use of one thing – perhaps atrophy; from how to improve productivity and he new buzz word now as it used to be. Gone are the days underutilization. I had suggested increase commercial agriculture. in Nigeria is agriculture. when house officers - young medi- themselves and their that the society faced two options - To them, the problem of agriculture There is something close cal school graduates in the final either to renew itself or retire like its in Nigeria begins with the land ten- to mass hysteria sur- stages of their professional training families human counterparts, when it clocks ure system, which has been com- rounding agriculture – were automatically provided with 60 in 2019. The NES, in my view pounded by the Land Use Act. Truly, amongT our countrymen now. Eve- finance to acquire private cars for should be in a position to remind we need to find the value chain in ryone is talking about it. The recent their use, and senior civil servants ’ Nigeria that we have travelled this Nigerian agriculture before we can oil shocks have forced Nigeria to were also given cars and official road of agriculture mantra before. optimize it. A country that neither once again begin a search for an quarters. At that time, public serv- They used to earn enough to maintain They ought rather to focus on find- has capacity to process raw produce alternative to oil. As usual, the lot ants earned enough to maintain a a certain level of living, which was ing out what we are doing differently nor to extend it to manufactures, fell on agriculture and everyone healthy standard of living, and to relatively reasonable, even across this time around. Truly, the current has no agricultural value chain. has been busy promoting one idea even make some savings. That is no continental space. Currently, it is popular talk about agriculture is Government has the resources to or another in that field. To show his longer the case today. This drastic no longer so. Many years of disas- exactly what it is: talk. I do not be- acquire any amount of land it needs zeal for agriculture, a governor in change in the socio-economic trous socio-economic policy design lieve we can achieve food security for public use. To insist on Gover- the South east has to cut the work- state of workers and their families and application has produced an through this peasant agriculture we nor’s consent and use it to deprive ing days in the civil service to 3 days has led many, especially those in economy that is at best stagnant and are promoting by asking civil serv- citizens of the freedom to use their in a week.Workers are permitted to the civil service, to take measures, at worst substantially shrunken. Years ants, most of whom are landless, land for commercial transaction is stay out of office work on Thursdays ethical and otherwise, to prolong of outstanding economic growth to become emergency farmers. We a disservice. The truth is that many and Fridays, in order to practice their stay in the service, including in the region of ten per cent, over a cannot achieve food security when governors are busy assigning the agriculture. But this is not the first amending their ages. Sometimes, considerable length of time, has not state governors have made it a point best pieces of land to themselves time we preached diversification. this amendment comes by way changed much, having been neutral- of duty to acquire the best pieces of and their families to bother about Remember Obasanjo’s Operation of outright falsification of exist- ized by a ravaging population growth, land in their states for the private the citizens and their needs. In fact, Feed the Nation (1977) and the ing personal records, in order to poor policy choices and pathological use of themselves and their families. the Land Use Act inhibits commer- Green Revolution of Shehu Shagari continue to be in the service. At 59, and compulsive corruption. Al- Without amending the Land Use Act cial agriculture in so many ways. (1980). Very powerful mantras and they begin to feel jittery as they tidy though the country’s main export to give the land back to the people We cannot be talking about value buzz words that rent the air but up and prepare to go home. earner, oil, has witnessed a few price who own it, we motion in vain. chain when productivity and value moved no mountains. For starters, the high rate of glitches, and output has once in a The NES would need to be more addition are very low. The Nigerian Economic Society inflation has overtaken the growth while fallen below projections, there aggressively engaged in the issues (NES) is 59 this year; just one year rate of family earnings, and their has been reasonable stability in the of economic management in the Send reactions to: short of the official retirement age savings have become negative. oil market to absolve it of the blame country. Incidentally, the 2018 [email protected]

ADEWALE OKOYA Customer service in the internet age

Okoya, former Executive Editor, organisation. they will never forget how others Bank and some of them have opened Gone are the days when dissat- Marketing Edge Magazine, writes The first incident involved a tel- make them feel. I bought the SIM accounts with the bank. Interestingly, isfied customers merely organize from Lagos. ecommunications company which card, registered it and left and still the regular credit alert of interest on boycott against businesses that treat is already a multinational but remained a customer of the company my savings account with the bank them shabbily and influence others barely existing as one. In order to not because of that experience but continues to surprise me because to do the same through word-of- avoid overloading my phone after because my earlier encounter with other banks that I do business with mouth. At that time there was very fter decades of doing busi- joining two groups on WhatsApp in the company as a journalist had specialize in sending debit alerts to little awareness and people didn’t ness, the idea of customer a space of two weeks, I decided to been a pleasant one. Otherwise, I me at the end of every month. even know they had rights. Today, service is now entrenched acquire a new SIM card and visited would either have walked out of that Considering the hoopla on social the power in the hands of the cus- in the day to day opera- the service centre of one of the net- centre without buying the SIM card media about bank charges and the tomer is awesome. Offending the tionsA of the typical multinational work service providers in the tel- or buy the SIM card and dump it after seeming inactivity of regulatory customer in today’s economy is a company. But to be sure the mul- ecommunications sector. The lady exhausting the credit on it. authorities in reining in the banks, highly risky proposition given the tinationals did not simply wake up who attended to me informed me In contrast, my encounter with it is heart-warming that Sterling speed with which the news can one day and decided that customer that apart from paying a N100 for officials of Sterling Bank Plc at the Bank continues to place customer spread on social media. The advent service should form an intrinsic the SIM card, I was also expected account opening desk in one of their satisfaction at the core of its business of the social media has given the or fundamental part of everything to pay for recharge card in a certain branches earlier in the year left me and always makes out time for each consumer a voice and an upper they do. They learnt the lesson the amount in order to activate the line with the feeling that this is an institu- customer, irrespective of status. The hand on the fate of businesses that hard way as those that treated the immediately. tion that is walking the talk in terms commendable effort by the bank to do not have a monopoly. customer with disdain or neglected I told her that I had bought the of customer service. The young lady go the extra mile to ensure that cus- Given the array of brands avail- to provide decent customer service recharge card the previous day at the desk treated me with so much tomers get the quality service they able to customers today and the failed spectacularly. Sadly, the in preparation for the eventuality care and tolerance in spite of my deserve awakened my instincts as a awesome power of social media, it business landscape in Nigeria still and that she should just sell the grumpy self that it became clear to journalist and I ventured to do a bit has become evident that any brand parades many players that pay lip SIM card to me and register the me that I needed to be a gentleman of digging on the bank. My findings that fails to build strong affinity with service to the ideals of customer card. Her countenance changed and adjust my behaviour. I was pleas- were no less satisfactory. customers will soon find itself on service. immediately as she insisted that I antly surprised when at the end of Early into my research, I dis- the back foot and out of business. As the global business commu- must buy the recharge card. When the process another official insisted covered that the bank takes pride Brands must remain vigilant in the nity rolls out the drum to celebrate I still said no, she asked me to bring on escorting me to an automated in providing each customer with internet age because the tactics of another customer service week this the N100 for the SIM card. I handed teller machine outside of the bank to exclusive attention and I was sim- yesteryears no longer work. The year – celebrated during the first over a N200 note and she told me ensure that my first transaction with ply a beneficiary of this approach slightest irritation of the consumer full week in October every year – to give way for another customer the bank was seamless. to business. It came as no surprise may turn into a conflagration and two contrasting incidents within because she had no change. As I Officials of the bank at the branch that KPMG’s BICSS for 2018 listed consume the business if not speed- the year came flooding back into stood by the side of her desk, I saw clearly understood that customer ser- the bank among the top five cus- ily addressed. The cliché that the my consciousness. The incidents some N100 notes in her drawer. So, vice does not end at the counter. It is tomer-focused banks in small and customer is king has taken on a which involved two Nigerian owned I called her out and warned that the provision of service to customers medium scale enterprises (SMEs) more prominent role in the survival businesses brought into sharp focus she was jeopardizing a relationship before, during and after a purchase. with an enviable score of 73.6 per- of a business because how the cus- the importance of customer service that had not even started. On reflection, it became clear to me cent. The survey which examined tomer is treated will always have and of the people who serve and Motivational speakers who that Sterling Bank was simply living the performance of banks relative an impact on your business in the support customers on a daily basis. teach their various audiences on up to its name and promise of being to the experiences, preferences and internet age. They highlight the critical role that personal relationships always warn a one-customer bank. Based on this needs of their customers since 2007 customer satisfaction can play in the that people may forget the things experience, I have since introduced reached this conclusion after speak- Send reactions to: continued existence of a business that others say or do to them but many associates and friends to Sterling ing to 3,590 SMEs. [email protected] Wednesday 10 October 2018 C002D5556 BUSINESS DAY 11 comment is free COMMENT Send 800word comments to [email protected] CHARACTER MATTERS WITH DAPS Love is...Part 2 ease. “What is wrong with me?” they that? Unfortunately such ignorance is rently running a PhD program in wonder as frustration precedes de- still so common place in this part of to Port Harcourt, the numbers shoot up pression. Restless greatness hemmed ‘ the world and yet we talk of love. dramatically at public schools with in inside of them because there is no Many dyslexics are It is widely acknowledged that one in three living with this learning guide available to navigate it out. dyslexics possess an uncanny ability handicap. Hear what David Bodies Eventually, under the relentless highly intelligent and to see the big picture as they sift swiftly has to say about the condition he has barrage of insults, demeaning words through the unnecessary. Many ooze had to live with all his life: “Reading DAPO AKANDE and not even a hint of encouragement creative. In fact you find creativity maybe as a result of living has nothing to do with intelligence. Graduate of the University of Surrey, UK, they jettison all ambition and resign day-in day-out with adversity. They It’s just one way of getting information. author of the acclaimed book: “The last themselves to a life of mediocrity. a disproportionately get so used to living with challenges The important thing is how a person fight: A personal journey to discovering After all how can the boy become a that they develop remarkable resil- processes that information, the kind values.” doctor when he gets all his numbers high number of the ience and an uncommon can-do of person we are, the contributions we Contact: [email protected] jumbled up? Simple maths, he can’t spirit. Hear Brett Kopf, the dyslexic make and the kind of utility we have do. How can her dream to become celebrated entrepreneurs CEO of Remind, a teaching resource, for society”. a hotshot lawyer ever materialize in the western world are “I was taught at a young age, by living David Boies, undisputably amongst when she struggles to read a simple with dyslexia, that when things seem the most successful lawyers in the sentence? “Maybe I am as dumb as dyslexic impossible, you just find a way”. United States, could not read until he he appearance of love mummy and daddy say I am after “Infuse your life with action. Don’t was nine years old. He sees dyslexia is not and can never be all” she sighs. This is the stark reality wait for it to happen. Make it happen. as a gift as it led him to develop other a substitute to genuine, of many a dyslexic in Nigeria. Self- Make your own future. Make your own cognitive skills such as in depth un- authentic love. If we agree confidence, self- belief, self esteem, ’ hope. Make your own love. And what- derstanding of issues and a prodigious love wants the best for gone. ever your beliefs, honour your creator, memory which have catapulted him to othersT then there are some vital issues Dyslexia, also known as reading licly acknowledged to be dyslexic and not by passively waiting for grace to the very top of his profession. Needless we should begin to look at instead of disorder is a condition that makes it I can think of two reasons why this is come down from upon high but by do- to say there must be many David Boies pretending they do not exist. Let us very difficult for one to read quickly, so. One, there is a distinctive possibil- ing what you can to make it happen… in this country waiting to be noticed, not bury our heads in the sand like write or spell because the brain’s lan- ity they do not know. Two, our society yourself, right now, right down here on let alone discovered. the proverbial ostrich who foolishly guage processing is wired somewhat is one where appearance takes centre earth” – Bradley Whitford. Not long ago I listened to a radio believes that by doing so no-one can differently to what the majority of stage. The slightest indication that one But of course these are the lucky interview of an official of the Nigeria see him since he can no longer see us call regular. Both alphabets and is different automatically exposes one ones who live in a society where this Dyslexia Foundation and was so anyone. Whether we readily admit numbers look jumbled up which to taunts, mockery or condescending condition is widely acknowledged, moved with compassion that when it or not, many of our children have makes it difficult to make sense of looks at best. Here, different, vulner- where they are diagnosed on time I got home immediately sat my special educational needs. We need what one is reading. Some sufferers able and inferior all wear the same and the right intervention is readily children down to speak to them, to recognize the life destroying role even find it hard to follow what is number shirt and you certainly do not available. That is why it saddens me admonish them and enlighten them dyslexia plays by retarding so many in- being said so a little extra effort may want to appear like the wounded lion to be informed an estimated 20% as I regularly like to do. I am of the nocent lives. Innocent because, sadly, be required to slow down speech or who finds himself at the mercy of the of Nigerians suffer from this condi- school who believe the essence of most people who suffer this condition break it down for them. But do you heckling hyenas. Some will even go as tion that the average Nigerian has both formal and informal education is in Nigeria do not even know they have know the ironic thing? This condi- far telling their children not to sit next never even heard of. Even with the to groom individuals to become func- it as they have never been diagnosed. tion does not in any way compro- to that boy in class as if every condition conservative estimated population tional members of society; developing Instead of producing delicious mise intelligence. Many dyslexics is contagious. of one hundred and seventy million in them character traits that conform figs in abundance as a good fig tree are highly intelligent and creative. Sadly, this reminds me of something people, that is a staggering thirty four to what should be our societal norms, should, they find themselves con- In fact you find a disproportionately heard on the radio. The sister of a friend million dyslexic Nigerians! Only God values and expectations. I see it as my demned to an ineffectual life of bar- high number of the celebrated en- of mine is involved with one of the as- knows how many Steven Spielberg’s, duty to guide them by imparting any renness much like the proverbial trepreneurs in the western world are sociations of the blind in Nigeria and Philip Schultz, the 2008 Pulitzer Prize and every bit of knowledge I feel could fig tree struck dead by Jesus for not dyslexic. I am sure such names as she said she was so disappointed, no winner for poetry or David Boies put them in good stead in life. fulfilling its purpose of producing fruit. Richard Branson, Steve Jobs, Tommy disgusted, when a supposed university have fallen through the cracks in our They stagger miserably through school Hilfiger sound more than vaguely educated music star visited one of their country over the years and are still Note: The rest of this article continues lampooned by teachers and class- familiar. Why did not I mention centres and sternly refused to have any falling through right now. in the online edition of Business Day @ mates alike. Mocked as stupid, dense names closer to home you may ask? form of body contact with any of the According to a survey conducted https://businessdayonline.com and dull, wondering why they strug- To be frank, I cannot point to a single blind children because he did not want for her thesis by an official of the Send reactions to: gle with what others understand with notable Nigerian who has ever pub- blindness “to catch him”. How stupid is Dyslexia Foundation Nigeria, cur- [email protected] Technology and the changing nature of work traditional banking to a digitalized been boosted as software applications workplace, individuals have been • Swap Space, Lagos engineer peo- way of banking to keep ahead of have been upgraded to facilitate faster spurred to take up various Informa- ple to take on developer or designer competition and provide excellent and easier interrelationships between tion Communications Technology roles in top companies across Africa service to its customers. They have customers and their trade partners (ICT) learnings from basic training and beyond. transformed their operations and anywhere in the world. to computer programming and The nation’s government has also become digitalized. Prior to technol- This digitalization has not been software developing and further go showed enthusiasm in ICT training ogy, the traditional way of banking without its attendant cost to the banks. entrepreneurial in tech-startups. as it recently inaugurated the first ONYINYECHUKWU MBIDOM saw bank customers queuing up in Software have been purchased and A lot of private companies have digital classroom in Abuja with a tar- banking halls to pay in and withdraw personnel trained. It has involved a set up outlets to encourage acquisi- get of generating $88bn and creating Mbidom is a banker and holds a B.Sc in cash and wait for minutes or hours holistic reset from the traditional to tion of necessary technological skills. three million jobs within a period of Economics for transactions to be processed a digital mindset, a complete psy- Few of them include: 10 years. It intends to actualize its and beneficiaries receive funds. chological makeover of the entire • Seedspace Global located in dream of a knowledge-based and However, with the advent of technol- workplace. Employees have also had Lagos displays its passion for techno- innovation-driven digital economy. ogy, first came the Automated teller to break established structures, think logical advancement by training ex- It has also invited Google executives machines (ATMs) which enabled outside the box and automate their pertise who will leverage on technol- who are working to provide free In- ‘We must develop a comprehensive individuals to withdraw funds with- work processes from time to time in ogy to advance the economy. It trains ternet to 10 million Nigerians in key and globally shared view of how out having to queue in banking halls. line with evolving technology. entrepreneurs for tech-startups. locations across the country. technology is affecting our lives and The ATMs also enabled individuals With the continued penetration • Andela, Lagos offers training This is a laudable initiative but reshaping our economic, social, to purchase goods online. of technology especially with the rise in software developing and coding. more efforts should be made to take cultural and human environments. Next came the advent of mobile in FinTech companies, the future of • Switch Fellowship, Lagos fo- technology into the most rural and There has never been a time of greater apps. Banks set up their own mobile bank tellers may likely be threatened. cuses on tech talent discovery, ac- remote places as the poor state of promise, or greater peril” (Professor applications for their customer to But as a developing economy, there is celeration and placement. ICT infrastructure in these areas pose Klaus Schwab, Founder and Execu- enjoy banking from the comfort of still quite an amount of manual pro- • Moat Academy, Lagos focuses difficulties to technological advance- tive Chairman of the World Economic their locations. It enabled one to cess involved, and a number of bank on bridging the gap between the ment. Forum.) perform functionalities that were transactions that brings customers to academics and the tech industry by Technology is here to stay, bring- The changing nature of financial not in existence under the traditional the bank. Secondly, some customers making many unemployed persons ing new opportunities for busi- institutions in Nigeria banking. With a smartphone and in- especially in rural areas who do not to become employable applicants. nesses, government and individuals. he pace of technologi- ternet access, one can view account have adequate access to technology • Projaro located in Abuja seeks Whether it brings a greater promise cal change is accelerating, balances real time, transfer funds and the less enlightened populace to train and empower software engi- than peril continues to depend on workplace demographics locally and internationally, activate will be seen coming to the banks to neers to become world class. how fast Nigeria prepares ahead are shifting and financial or deactivate your ATMs cards, pay perform transactions. • Sevocoder located in Jos, Plateau and adapt to its ever evolving nature Tinstitutions have had to align their bills, buy airtime request for bank state targets secondary school stu- without creating any adverse shock. businesses with the dynamic needs products such as cheque books and Individuals and lifelong learning dents with the aim to produce 2,000 of generational stakeholders. Fi- ATMs cards etc. With the advent of technology and developers by teaching children and Send reactions to: nancial institutions shifted from Trade transactions have also the subsequent ‘tech’ edge in the young adults how to code. [email protected] 12 BUSINESS DAY C002D5556 Wednesday 10 October 2018 EDITORIAL

PUBLISHER/CEO Frank Aigbogun Apapa ports and economic carnage EDITOR lthough the ac- The rates shows that the Apapa between 100 to 250 tons. build up at the Apapa ports, the Anthony Osae-Brown cess roads to port from New York is the most On the import circle, only 10 government later developed Apapa and Tin expensive destination among percent of cargoes are cleared the Tin Can Island port, still DEPUTY EDITORS Can ports were the countries included in the within the set timeline of 48 within the Apapa axis to cope John Osadolor, Abuja Bill Okonedo originally pro- template. For instance, it costs hours while the majority of with the pressure on Apapa. Ajected to give access to 1,500 about $4, 982 to ship a 20 feet cargoes take between five to 20 Of course, the pressures NEWS EDITOR trucks, now about 5,000 container from New York to days to clear. increased and the Lagos ports Patrick Atuanya trucks seek access to the Apapa, which is about twice A clear sign of how ineffi- could no longer cope. To make ports every day, according to the amount to ship a container cient and expensive the ports matters worse, the eastern EXECUTIVE DIRECTOR, OPERATIONS reports by the Lagos Cham- of the same size to Cape Town, are, the number of government ports, due to abandonment, Fabian Akagha ber of Commerce and Indus- South Africa (at $2, 542). This is agencies at the ports has risen had silted and become shallow try (LCCI). The report says despite the fact that New York to twelve instead of eight, with and unable to admit big ship EXECUTIVE DIRECTOR, DIGITAL SERVICES Nigeria loses N600 billion in to Lagos is just 6,516 nautical each demanding inspection increasing the dependency on Oghenevwoke Ighure customs revenue, $10 billion miles and takes approximately and associated fees. the Apapa ports. (N3.6trn) in non-oil export 27 days for a ship to sail the Sadly the solution to the Therefore, any solution to GENERAL MANAGER, ADVERT Adeola Ajewole sector and N2.5 trillion in distance while New York to problem of inefficiency and the ports that does not include corporate earnings across Cape Town is 9,097 nautical congestion in the ports is well the complete revitalisation and ADVERT MANAGER various sectors on annual miles and takes approximately known – the complete revitali- repositioning of the eastern Ijeoma Ude basis due to the poor state of 38 days to sail. sation of the sea, air and land ports will amount to shadow Nigerian ports. Also, the average turn- ports in eastern Nigeria. These boxing. FINANCE MANAGER The Nigerian ports are also around time for ships at Apapa were viable ports in pre-inde- Thankfully, the Lagos state Emeka Ifeanyi being listed as one of the most is estimated in excess of 30 days pendence Nigeria. However, government has also made this MANAGER, CONFERENCES & EVENTS inefficient and expensive as against just two days for the post-independence Nigeria point to the federal government Obiora Onyeaso ports in the world by global most efficient ports globally. governments and subsequently and Nigerian Ports Authority reports. One of such reports The LCCI report also reveals government agencies discour- (NPA). Once that is done, the SUBSCRIPTIONS MANAGER is the moverdb.com 2018 that 25 percent of cashew nuts aged the use of the eastern NPA and the federal govern- Patrick Ijegbai Overseas Cargo and Freight exported from Lagos to Viet- ports and concentrated virtu- ment can now concentrate Costs template that shows nam in 2017 either went bad ally all shipments into and out- on efforts to streamline ports CIRCULATION MANAGER side Nigeria at the Apapa port John Okpaire that freight costs from the or were downgraded because operations to drastically cut United States (Los Angeles & of delays at Lagos ports. From forcing all Nigerian importers down turnaround time to posi- DIGITAL SALES MANAGER New York) to different port exporting up to 1,700 tons per and exporters into the Apapa tion Nigeria as a global business Linda Ochugbua destinations of the world. day, an exporter now exports port. When pressures began to destination.

GM, BUSINESS DEVELOPMENT (North) Bashir Ibrahim Hassan

GM, BUSINESS DEVELOPMENT (South) Ignatius Chukwu

HEAD, HUMAN RESOURCES Adeola Obisesan

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

ENQUIRIES NEWS ROOM 08023165438 08169609331} Lagos 08033160837 Abuja ADVERTISING 01-2799108 08034743892 08033225506 SUBSCRIPTIONS 01-2799101 07032496069 07054563299 MISSION OUR CORE VALUES STATEMENT BusinessDay avidly thrives on the mainstay of our core values of being The Fourth Estate, Credible, Independent, DIGITAL SERVICES Entrepreneurial and Purpose-Driven. 08026011296 To be a diversified provider of superior • The Fourth Estate: We take pride in being guarantors of liberal economic thought www.businessdayonline.com • Credible: We believe in the principle of being objective, fair and fact-based The Brook, business, financial and 6 Point Road, GRA, Apapa, Lagos, management intelligence • Independent: Our quest for liberal economic thought means that we are independent of private and public interests. Nigeria. across platforms acces- • Entrepreneurial: We constantly search for new opportunities, maintaining the highest ethical standards in all we do 01-2799100 sible to our customers • Purpose-Driven: We are committed to assembling a team of highly talented and motivated people that share LEGAL ADVISERS anywhere in the world. our vision, while treating them with respect and fairness. The Law Union www.businessdayonline.com Wednesday 10 October 2018 BUSINESS DAY 13

Korean firm to establish shoe COMPANIES factory in Aba & MARKETS Pg. 14 COMPANY NEWS ANALYSIS AND INSIGHT C & I Leasing lists N7bn fixed rate bond on FMDQ

tives; and other parties to the issue. SEYI JOHN SALAU Bukola Oluyadi, divisional head, Marketing Communications, FMDQ, during her welcome orporate institutions address, congratulated the issuer have continued to suc- and sponsor of the issue on the cessfully tap into the success achieved in the DCM and Nigerian Debt Capital expressed the OTC Exchange’s MarketsC (DCM) to access stable gratitude for the issuer’s deci- long-term finance to fund their sion to list the bond on FMDQ, key activities that ultimately trans- According to her, being listed on late to the development of the FMDQ will avail the bond a host economy at large, some of which of benefits including, unprec- include, but are not limited to, edented transparency, efficient funding pressing development price formation and improved needs and supporting capital global visibility, among others. investments. She further reiterated the OTC The most recent of these cor- Exchange’s commitment to con- porate institutions is C & I Leasing tinually align its strategies and PLC, which, following the approv- innovation to serve and provide al granted by the FMDQ Board the much-needed support to Listings, Markets and Technology the players in the DCM. Andrew Committee, listed the C & I Leas- Otike –Odibi, managing director/ ing PLC N7.00bn Series 1 Fixed CEO, C & I Leasing PLC, during Rate Bond under its N20.00bn the issuer’s special address, stated, Bond Issuance Programme (the “We are grateful to everyone who C & I Leasing PLC Bond) on the contributed tremendously to OTC Exchange. the process of the issue from the To commemorate the listing beginning to this point. The ex- of the bond, a ceremony was pansion plans for which we raised L-R: Richard Borokini, director-general, Chartered Insurance Institute of Nigeria (CIIN); Mary Adeyanju, executive director, operations, Consolidated held at the FMDQ offices on the bond are already successfully Hallmark Insurance (CHI) Plc; Eddie Efekoha, MD/CEO, CHI plc/president, CIIN; Olumodeji Damilola, 1st prize winner CHI plc annual essay Friday, October 5, 2018, where on course with our complete ac- competition; Yetunde Ilori, director-general, Nigeria Insurers Association, and Babatunde Daramola, executive director, finance, system and the OTC Exchange played host quisition of C & I Petrotech taking investment, CHI plc, during the CHI plc annual essay award ceremony in Lagos. Pic by Olawale Amoo to the issuer, represented by An- full ownership of six boats in the drew Otike- Odibi, managing process, as well as the recent director/CEO, C & I Leasing PLC to replace some expensive debts indicative of investors’ confidence Tumi Sekoni, associate executive ing the success of the issuance. acquisition of some new vessels with the bond proceeds. Overall, in the C & I Leasing Bond. Indeed, Director, FMDQ, in her closing She further reiterated that through (“C & I Leasing”), alongside other to take advantage of the increas- senior executives of C & I Leasing; the funds have already been put Planet Capital is very delighted to remarks, applauded the issuer, consistent collaboration with its ing opportunities in the marine to use and we guarantee sub- lead the group of issuing houses C & I Leasing, for achieving this stakeholders, FMDQ will continue the co-sponsors to the issue on business. Also, we have invested in FMDQ, Planet Capital Limited, scribers value and returns in due in this capital raising exercise. milestone and commended the to deepen and effectively position brand new vehicles to upgrade the course.” Delivering the Registra- This listing creates liquidity for sponsor to the issue and Registra- the Nigerian DCM for growth, represented by their Executive Di- travel experience for our car rental rectors/Co-CEOs, Tony Anonyai tion Member (Listings) remarks, the instrument and improves the tion Member (Listings) of FMDQ, in support of the realisation of a and fleet management clients. Tony Anonyai highlighted, “The price discovery process for sub- Planet Capital Limited, for its globally competitive and vibrant and Efe Akhigbe, alongside Planet In addition to these, we are able Capital Limited’s senior execu- oversubscription of the offer is sequent issues by the company.” concerted efforts towards ensur- economy. Niola Cancer Care Foundation set to hold USNC pledges to mobilise capital for Nigerian annual wellness & dance event start-ups in technology, innovation iola Cancer Care Care Foundation said the annual wo, a consultant, Laparoscopic Foundation, the first event IJOYA is meant to bring General Surgeon at the Lagos tential investees to mobilise exceptional stature of the ‘se- colorectal cancer people together across different University Teaching Hospital ODINAKA ANUDU capital for Nigerian start-ups rial entrepreneur’ members NGO in West Africa ages and health statuses through (LUTH) and companies. of USNC, adding “if you are isN set to host its second an- a commonly shared act of dance The event will hold on Satur- he United States According to him, the looking for courage in busi- nual wellness and dance event and aerobics in an atmosphere day, October 13, 2018 at the Na- Nigeria Council event brought together a ness, it’s found in this room.” in Lagos. of fun and preventive cancer tional Stadium, Surulere, Lagos. (USNC) says it is range of ecosystem players The breakfast meeting was The convener and founder screenings. It is a flagship platform from ready to connect to discuss innovation and en- hosted by Terence McCulley, of Niola Cancer, Eniola S. Akin- The event will also feature Niola Cancer Care foundation Tinvestors with potential in- trepreneurial partnerships in an ambassador and chairman tunde, who shared how her an enlightening session which will feature prominently, exer- vestees and mobilise capital technology, including over 45 of USNC; John Coumantaros pains and the loss of her beloved will be held by the head of Medi- cise, screenings and dance with for Nigerian start-ups and leading Nigerian and Ameri- of Flour Mills of Nigeria, co- spouse to colon cancer led her cals at the Niola Cancer Care popular DJ, DJ COOL on the companies in a bid to develop can business executives and chair, and Eliot Pence, execu- to founding the Niola Cancer Foundation, Adedapo Osino- wheels of steel. the country’s technology and high-level public officials. tive director. innovation ecosystem. Pence further said the The commitment of USNC Blockchain creating trust protocol across industries USNC also pledged com- council wanted to bring in- members was represented by mitment to develop Nigeria’s fluential entrepreneurs to the participation of Herbert one would understand that it offers plication of smart contract technology technology and innovation combat market challenges in Wigwe of Access Bank Plc; ABIMBOLA HASSAN more and many major industries are could have considerable impact in ecosystem by bringing in the ICT sector. Wale Tinubu of Oando; Kola to be affected for the good. The social the area of Intellectual Property (IP), influential entrepreneurs to “Capital is one barrier, Aina of Ventures Platform; he chief commodity of block- impacts of the technology are not particularly for creative industries combat market challenges chain is not all about mak- market access is another. Tunde Folawiyo of Yinka only stupendous but also necessary where artists aren’t always rewarded being experienced in the ing money or crypto trading according to Andrew Nevin. for their original content. By using a USNC bridges that gap,” he Folawiyo Group; John Negro- T industry. rather using its smart contracts to Taking a dive into the impact smart contract, ownership of a par- said. ponte of McLarty Associates; create a, “Trust protocol” which blockchain has on key sectors while ticular song, piece of art or writing etc Speaking at the round- In his address, Okey En- Christina Sass of Andela; cut-off third party/ intermediary and discussing the advantage it has on will be recorded on the blockchain. table breakfast meeting of the elamah, minister of indus- Femi Akinware of Exchange simplify operations across various healthcare, Andrew Nervin identi- Anytime that work is used for com- 73rd United Nations General try, trade and investment, , Telecommunications Ltd; industries. fied that its benefits lies in that it can mercial purposes, royalties could be Assembly in New York City, told the US investors about and Mamadou Beye of Chev- Blockchain offers people a way aid with medical research because automatically paid to the artist. USA, Eliot Pence, executive of working together that is open and the crucial need to leverage ron. it provides researchers with more Although blockchain is all too director of USNC, stated that technology to address local Other notable attendees where information is shared giving us accurate data from their clinical often associated with financial trans- the council’s mission was to a more level playing field, allowing us challenges as well as efforts included Kayode Pitan, CEO trials. Blockchain timestamps and actions, the potential application of promote bilateral business to trace ideas and resources to their logs every step of the process, creates smart contract technology to the arts by the Federal Government of Bank of Industry of Nigeria; originator while individual detail still additional legitimacy and integrity in and creative industries is consider- partnership and growth in to strengthen the enabling Yewande Sadiku, executive remain anonymous. This could be clinical trials. Additionally, storing able. How creative content owner- Nigeria, focusing on entre- environment for businesses secretary of the Nigerian In- the dawn of a better world for us all. research data in blockchain would ship is recorded, monetised and dis- preneurial investment in the to operate in Nigeria. vestment Promotion Com- Blockchain most times is mis- grant access to healthcare profes- tributed could be upended through technology and innovation Enelamah commended mission; Festus Ezeli, Nigeri- conceived with its underlying tech- sionals and doctors around the world the use of blockchain technology ecosystem. the council for its work, stat- an NBA star, and executives of nology, cryptocurrencies, but it goes which would therefore allow speedy disrupting the established studio Pence explained that the more than just be a form of digital ing “Nigeria stands to benefit Renaissance Capital, Lateral diagnosing and better treatment. systems, recording and publishing council’s breakfast meeting from your effort.” Capital, Bechtel International money but rather a system to disrupt As well as in intellectual property houses as we currently know them. served as a forum for con- the way we work and if dug more, protection and monetization, the ap- He also spoke on the pow- Inc., Zephyr Management, necting investors with po- er of partnership and the and Lori Systems. 14 BUSINESS DAY C002D5556 Wednesday 10 May 2018 COMPANIES & MARKETS Business Event Korean firm to establish shoe factory in Aba …as Gada Africa launches online shop

to assist. logistics handling companies, to GODFREY OFURUM, Aba In his words, “If Gada Africa ensure that people get every prod- is filling the e-commerce gap, we uct that they order. ada Africa, a wholly Ni- need someone, who can fill the “But, the capacity will be built gerian online marketing automation process gap. Gada over time, but for now, the capacity and logistics firm, says it is also going to fill the packaging that we have developed is that effec- is discussing with a Ko- and logistics gaps, to ensure that tive from December 1, 2019, if you Grean firm interested in establishing a L-R: Daniel Kamau, managing director, Royal Askoning, DHV; Nonny Ugboma, executive secretary, MTN products from Aba are shipped to place any order from our platform shoe factory in Aba, the commercial customers within and outside the that order must get to you, if you live Foundation, and Kamar Bakrin, founding partner VIOS Equity Partners following a Panel Discussion moderated hub of Abia State. by Nonny Ugboma, the Executive Secretary MTN Foundation at Lagos Business School’s Africa Responsible country. in Lagos or Abuja. The idea is to see This is also as the firm launched Business Forum in Lagos. Apart from creating an online that products that are made-in-Aba an online marketing outlet, to show- platform for the goods, Gada also are pushed from this end. case and market Aba-Made goods, promised to provide logistics servic- “If an order is placed on our site particularly garments, arts and craft es, to ensure that goods purchased for a product that is made in Aba, and finished leather goods, namely on its site gets to the customers all that the manufacturer need to shoes, belts and bags. on time. do, is to drop it in our office and we Ben Chiobi, a retired air vice According to Chiobi, “That is will ensure that whoever placed the marshall and founder, Gada Africa, what we call logistics value chain order, will get it and in good time. in an exclusive interview with Busi- services. It will not be enough for us, “Overtime, we will be able to nessday in Aba, explained that it as an e-commerce company that is share with our customers the tim- is the intention of his firm to bring running an online-mall, to just sale ings for other destinations. We in people with different kinds of without bothering about how the have built a structure and we will machines in shoe production, to products would get to the end user. be unveiling them as time permits. help automate shoemaking process He stated that his firm would es- And that is why I said that we have in Aba. tablish a logistics hub for made-in- the capacity, however we do not He explained that Gada, has the Aba goods, to be known as ‘Made have the capacity to send products intention of inviting officials of the in Aba Logistics Hub” or “Gada to everywhere in the world, as I Korean firm and other interested Africa Hub”, which would serve speak with you now, but we want investors, from outside Nigeria, as a showroom and distribution to see that structure overtime is to participate in the forthcoming point for finished goods for local developed. But what I am assuring Aba Economic Summit, being consumption and export. you now, is that if you live in Abuja organized, by the Aba Chamber To ensure that it serve its cus- or Lagos and you place order for L-R: Omolara Banjoko, senior brand manager, Three Crowns Milk; Jennifer Michael, star winner prize; Pauline of Commerce, Industry, Mines Pambolo, star winner; Adaobi Okonkwo, star winner, and Chris Wulff Caesar, marketing director, Friesland tomers well, the Gada Africa boss, any product made-in-Aba on our and Agriculture (ACCIMA), to see Campina Wamco, at the 2018 Three crowns Mum of the year grand finale in Lagos. noted that his has built partnership site, give it a maximum of four days, exactly where they can come in with local and some international you’ll get the product, “he stated. Stanbic IBTC Bank deploys robots to enhance service delivery ens the growing application were designed and deployed HOPE MOSES-ASHIKE of artificial intelligence by the to reduce manual intervention, tanbic IBTC Bank, a mem- bank with the earlier deploy- eliminate errors and reduce ber of Stanbic IBTC Hold- ment of the Stanbic IBTC Bank cost of processing in reconcili- ings Plc, has taken another Chatbot, christened Sami, an ation processes, with reconcili- S artificial intelligence-powered ation turnaround time reduced bold step towards service effi- ciency and enhanced customer conversational and transac- significantly. The project was experience with the deploy- tional channel for rendering delivered at zero cost, which is ment of robots to drive various banking services to customers. a first in the Nigerian banking dimensions of its operations. Speaking in Lagos, Chief industry. Deployed about three Executive, Stanbic IBTC Bank, “We wanted something new. months ago, the Stanbic IBTC Dr Demola Sogunle, said given We wanted to increase speed. BlueBots, as the robots are the rapid manner technology We wanted to boost efficiency called, manage middle and back is evolving and the disruption and accuracy. Constantly rais- office activities. At the opera- this can trigger, it is impera- ing the bar is a key value for us tional center at Ilupeju, Lagos, tive to tap into such evolving at Stanbic IBTC and leading the the robots facilitate Account trends and technology to ad- implementation of all the pos- Origination and Servicing for dress the changing needs of sible applications of Artificial customers. Intelligence (AI) in Nigeria was L-R: Auwal Abdullahi, head, enterprise business (North), MTN Nigeria; Bridget Enuma, manager, enterprise Anti-Money Laundering (AML) business, MTN Nigeria; Nwajagu Lotanna, facilitator, MTN–Google Training; and Nkechi Chimezie, beneficiary, transactions and Processing “The Stanbic IBTC robot a good way to raise the bar” deployment speaks to our de- Sogunle added. MTN–Google Training, at the Digital Skills training for SMEs, organised on Friday by MTN Nigeria, in collaboration and Clearing for inward cheque with Google, in Abuja. confirmation. At the Idejo, La- termination to consistently ap- Elaborating further, Head, gos office, the Credit Risk Man- ply innovation and technology Business Transformation Pro- agement System robots handle to provide bespoke financial grammes, Stanbic IBTC Bank, Personal Banking Credit assess- solutions to our clients. The Wole Adesiyan, attributed the ments while at the bank’s head- special features of the Stanbic deployments to the ingenuity quarters in Lagos, the robots IBTC BlueBots ensure that our and creativity of Stanbic IBTC are deployed in Global Market customers are availed seamless personnel as the feat was a Operations (GMO) to manage banking solutions consistently strictly in-house project with T-Bills processing. and conveniently,” Sogunle support from Standard Bank Thedevelopment height- said. South Africa, parent company of He added that the robots the Stanbic IBTC Group. Eliezer Workplace receives quality award for proficiency

liezer Workplace Manage- up to world standard in service Eliezer Workplace Management ment, one of the leading delivery. This was put together was one of the night’s biggest facility management com- by the Africa Quality Institute, in winners as it received the qual- E collaboration with World Quality ity award in proficiency for the panies in Africa was recognised as the most proficient facility Alliance and the Chartered Qual- year 2018. management company in the ity Institute (UK), a global quality Receiving the award on be- 2018 edition of the African Quali- organisation consulting Firm. half of the company, David ty Achievement Awards (AQAA). The sixth edition of the AQAA Korede, the executive director The award which gives qual- which was held at Sheraton of Eliezer Workplace Manage- ity and utmost consideration in Hotel in Lagos on 28th of Sep- ment said the company is truly management, products delivery tember 2018 saw individuals, honoured for being recognized L-R: Chidi Egwu, brand manager, Life Continental Lager Beer, NB Plc; Maduabuchi Ogun, Life Progress and inter-personal relationship, products and companies going in the category of quality and Booster Grant Beneficiary, and Michael Ndubuisi, member of customary court, Enugu, at the presentation of encourages companies to live home with various awards and proficiency. cheque to the beneficiaries of Life Progress Booster 2018 in Asaba, Delta State. Wednesday 10 October 2018 BUSINESS DAY 15 CityFile Ambode urges residents to embrace waste-to-wealth initiative overnor Akinwunmi Ambode of Lagos State on Monday urged residents to Gsubscribe to waste-to-wealth pro- grammes in the state to drive effective solid waste management and hygienic environment. Ambode, who was represented by his deputy, Idiat Adebule, made the call at the 2018 World Habitat Day programme organised by the ministry of physical planning and urban development in Lagos. The United Nations (UN) designates first Monday of October of every year as World Habi- tat Day, to reflect on the state of towns and cities, and on the basic right of all to adequate shelter. The governor said that with a population of over 21 million generating an estimated 13, 000 metric tonnes of waste daily, there was the need to adopt global best practice such as subscription to reuse products. He said that the adoption of modern and globally acknowledged best practices would ensure effective and efficient waste manage- ment in a mega city like Lagos. “I commend previous administrations for their efforts in waste management. However, continued population growth necessitated Suspected trans-border robbers nabbed by the police in Lagos, after robbing a warehouse in Ogun State, on Monday. a refocus, and hence, the establishment of Cleaner Lagos Initiative. “I need to emphasise that the best possible ways of managing solid waste are to reuse, reduce and recycle them. “The waste-to-wealth programmes are of utmost importance in the state. As critical Cameroonian led trans-border stakeholders, every resident should subscribe to reuse products in our households and sensitise other people to do so. We cannot afford the con- tinuous generation of ‘one-time’ use and dump products given it’s negative consequences. robbery gang smashed in Lagos FCT residents raise alarm JOSHUA BASSEY refused to stop before they later halted at one fence, thinking that I was dead. Meiran Junction, Lagos. They looted the company’s store and ix suspected trans-border armed Apart from Ahmed Ibrahim, four other were set to go when I woke up. I hung over high rate of car theft robbers have been arrested by members of the gang equally arrested on to the back of the truck from Dalemo, esidents of Federal Capital Territory the police in Lagos. include, Kelechi Nebu (30), Ndueso Sun- Sango Ogun State to toll gate, where I saw (FCT) have raised alarm over the men- The 9-man robbery gang was day (45), Tochukwu Egemuka (33) and RRS team. I alerted them and they chased Race of car theft and bus robbery in the led by a Cameroonian born, Obinna Oforkaja (30). the truck to Meiran Junction, where they city and urged the police to rise to the situation. AhmedS Ibrahim, 33 and one Obinna, who Items recovered from the robbers in- were forced to stop. Four of them fled Some of the residents, who spoke on Mon- along with three others are now at large. cluded: One Volvo truck with registration while five were arrested.” day lamented that their lives were in danger The suspects were arrested by the over the activities of bandits who steal cars and number KRD 515 XR, 13 truck tyres, one According to sources within the com- operatives of the Lagos police command refrigerator, 26 gallons of 4-litre engine oil, pany, the leader of the gang, Ahmed rob at gun points. early Monday morning. They were said to Ayo Akogun, whose car a Toyota Camry 24 gallons of 25-litre engine oil, two batteries, Ibrahim, was the brother of the haulage was stolen while he was purchasing an item have escaped from neighbouring Ogun assorted charms, one cutlass and two knives. firm’s former security guard, who, in a at a shop in FHA Lugbe, described situation State where they robbed a haulage com- According to the haulage company’s similar operation stole about 100 truck as “disturbing’’. pany’s warehouse. security guard, Kenny Peters, “I was doing tyres from the company in August 2018. He said that car theft had become rampant Imohimi Edgal, Commissioner of the rounds when they held me from the The leader of the gang confessed to in the FCT, adding that there had been a deluge Police (CP) in charge of Lagos State, who back. They wanted to shoot me first but have recruited one Obinna, who mo- of complaints at the FHA Police Station where paraded the suspects said they were in- one of them cautioned against hurting bilised seven more robbers for the op- he went to report the case of his stolen car. tercepted at the toll gate border of Lagos me. They macheted me in the forehead eration. The police said they have also “I quickly reported the case at the Lugbe and Ogun by a patrol team of Rapid Re- and beat me with all manners of rods arrested the driver of the truck, Kudus Police Station, but I was shocked to meet some sponse Squad (RRS) stationed in the area. including truck wheel spanners. They tied Adebayo (33), while investigations are on- people with same case of stolen car at the sta- They were chased by the team when they tion while some of them had already written my hands to the back and carried me to going to arrest other members of the gang. their statements. “I parked my car within the FHA Lugbe in front of the shop where I went to buy provisions at about 8:00 p.m. for my family and by the time I came out, I could not find my car,’’ he said. Accident: LASAMBUS lauds “none should die” scheme Felicia Obafemi, another resident, said her he Lagos State Ambulance Ser- noble gesture and our relationship with death as result of money,’’ he said. car, also a Toyota Camry was stolen around vice (LASAMBUS) has lauded the the organisation has been fruitful in sav- He disclosed that over 300 indigent 10:30 p.m. on October 4. She said that she had to park the car close “None Should Die” programme, ing lives,’’ he said. patients and accidents victims had ben- to a shop and went to pick certain items, but launched by Health Emergency Paschal Achunine, the CEO of HEI, a efited, while over 80 vulnerable children TInitiative (HEI) to ensure many critically nongovernmental organisation said during and women had also received succour was jolted when she discovered the car was no longer where it was parked. injured accident victims received early the launch of the scheme that the organisa- from HEI intervention. According to her, my car is a Toyota Camry phase emergency care. tion was focusing on how no victims would He appealed to the public and corpo- with plate number YAB 579 BK with silver co- Kola Korolo, a director with LASAM- die as a result of lack of medical care. rate organisations to contribute toward lour and other valuables like laptop, food items, BUS, gave the commendation, saying Achunine said that the programme the progress of the initiatives to prevent and my purse were all in the car. such emergency care would curb the would ensure none died as a result of many people from untimely deaths as a Another problem threatening the security of number of deaths as a result of accidents. road accidents due to quick emergency result of road accidents. the FCT is the rate of robbery popularly called Korolo said that hospital care would response by the organisation. “HEI is funded from contributions ‘one-chance’ and perpetrated by unscrupulous resuscitate and bring stabilisation to ac- “The organisation stands in the gap for of members and the generosity of the people to trap passengers in taxis either to rob or capture them for rituals or ransom. cident victims before the arrival of their the indigent and vulnerable in the society public who make periodic, quarterly and Tina Dauda, a nurse in one of the FCT family members. to ensure they access basic medical care. monthly donations to the organisation. hospitals said she was a victim of a gang of “The HEI programme is quite com- “The HEI None Should Die programme “You can make a financial donation no ‘one-chance’ while returning from work in the mendable, we have 25 ambulance points will ensure prompt treatment of accident matter how small, the life you are saving early hour of September 27. in Lagos State, what we do is purely victims to stabilise them before the family today may be yours tomorrow,” he said. Dauda said that immediately she entered emergency. members arrive. Achunine also appealed to motorists the vehicle, she became suspicious as there “And seven out of 10 people we pick are “Many victims have died because of to drive safely during the Ember months were only men in the car, adding that her fear indigent persons, for HEI to give succour N5,000 treatment or less, our organisation and shun reckless and dangerous driving later materialised when she was asked to open to accident victims in an emergency is a stands for emergency treatment to avoid to avoid accidents. her bag and bring all the money inside. 16 BUSINESS DAY Wednesday 10 October 2018 Politics & Policy Wednesday 10 October 2018 C002D5556 BUSINESS DAY 17 2019: YPP bemoans Nigeria’s backwardness, urges citizens to vote Moghalu

INNOCENT ODOH, Abuja APC muscled the will of Osun peo- the APC wants us to believe that ple through vote buying, intimida- Nigerians massively voted against tion and violence. The APC has the PDP in 2015 on account of he Young Progressive succeeded in not only replicating non- performance yet propagate Party (YPP) has called the undemocratic actions widely a contrary narrative by wanting on Nigerians to vote for condemned during the dark reign us to believe that they would be the party’s candidate of the PDP but has further raised embraced despite an obviously ter- Kingsley Moghalu in the the bar of impunity in a desperate rible performance since taking over 2019T general elections, stressing bid to remain in power at all cost.’’ the mantle of leadership. that the former Deputy Governor The party noted that the killings, “Having pauperized Nigerians of Central Bank of Nigeria, has the maiming cum disenfranchisement under the joint administration intellectual and managerial capac- of voters through intimidation, of the PDP and APC in the last ity to redeem the country which harassment of journalists and 19years in the worst democratic has regrettably remained backward civil society observers in a rerun period ever witnessed by mankind after 58 years of independence of not more than seven polling with the PDP laying a foundation despite its enormous human and units and less than three thousand for impunity and the hypocritical material resources. eligible voters shows how far the APC building on same, both parties A statement issued by the Na- APC government is willing to go to have now devised the vote buying tional Publicity Secretary of the crush anybody and anything that approach invented by PDP and Party, Egbeola Olawale Martins, stands in the way of their ruthless improved upon by APC to take the entitled “58 Independence An- Moghalu ambition. option of choice in a democratic niversary: The needfor Visionary “We condemn the Osun rerun process away from the hands of the Leadership in 2019.” The party said election because it was not a cred- poor masses,” the statement said. Nigeria started a journey of nation- out of school children coupled with us for so long by supporting and ible, free and fair contest and could The YPP lamented that while hood with selfless and visionary the record of having the highest voting for all candidates on our not have reflected what the good PDP lacked the moral justification leaders in the mould of Abubakar rate of maternal mortality in the platform with Kingsley Moghalu, people of Osun wanted especially to cry foul because that which they Tafawa Balewa, Nnamdi Azikiwe, world,” the statement said. the Presidential candidate of our on the backdrop of irredeemable allowed to fester while in power Obafemi Awolowo and Ahmadu The party also said that it is great party as the epitome of this poor performance of the incum- is now hunting them, it is how- Bello in years that heralded our however, motivated by the fact that new breed of bold leadership bent Governor who has placed ever no justification for the APC independence and all through the Nigerians are now beginning to get without greed so that the people of the entire workforce of the State to continue this reign of impunity. first republic, but regretted that more involved in order to ensure Nigeria can begin to get the kind of of Osun on half salaries in the past “We are amazed that the APC has the path of democratic progress that charlatans no longer find their leaders they truly deserve.” three and half years and also suc- learnt nothing both as opposition was truncated 1966 by the military. way to positions of leadership, On the just concluded gover- ceeded in dragging this once com- in recent past and currently as a “Our greatest calamity as a na- which he said gives hope that it is norship election in Osun state, petitive State in terms of Education ruling party but let us assure the tion has been lack of visionary not too late to rewrite the wrongs the party said that after careful and all round development 20years powermongers in APC that just leaders with capacity to think done by past myopic, self-centred assessment of the Osun governor- backward. like the voting masses revolted from the future, which explains and visionless leaders. ship election with emphasis on the “There is nowhere in the world against the PDP in 2015, same fate why almost six decades after inde- It added that the “Young Pro- rerun, which took place in some except under the failed leadership awaits them in 2019 as the time for pendence, Nigeria is currently the gressives Party offers to Nigerians selected polling units, “it is now of the APC that re-election has been honouring themselves through this poverty capital of the world, the an opportunity to solve the leader- clear that democracy like never a reward for non -performance. It tyrannical reign of terror will soon nation with the highest number of ship conundrum that has plagued before is in grave danger after the contradicts logical reasoning that come to an end. How Adebola emerged SPD governorship candidate in Kwara one aspirant for the post. belongs to the country.The reason Global Rights promotes SIKIRAT SHEHU, Ilorin Adebola, in his acceptance speech for our backwardness as a nation democracy in Nigeria thanked all the delegates for the con- is that there is no more love in the lajide Adebola, a Medical fidence reposed in him and affirmed country.” Doctor, has emerged the devolved the center of its opera- his candidature. While lamenting that Kwara peo- JAMES KWEN, Abuja governorship candidate tion to its country office in Nige- The governorship candidate ple were suffering, battered, buf- lobal Rights, an inter- of the Social Democratic promised not to disappoint mem- feted, beaten and down trodden ria, from where the organization OParty (SDP), in Kwara State for 2019 national human rights bers of the party and the state in as a result of over 18 years of bad has continued to work with local elections. and governance or- general if elected as governor in 2019. governanceimposed on the people, activists in Africa to promote and Adebola, who was the sole can- He said he was very positive that the guber hopeful declared that he ganisation has restated protect the rights of marginalized didate, was affirmed by all the del- God chosen SDP to liberate Kwara was in the race to the Government commitmentG towards deepening populations” egates for the primary at the party and its people of the shackle of bond- House to redeem the integrity of democracy in Nigeria to guarantee She noted that, “the Organisa- secretariat, Ilorin. age of close to two decades. Kwara and bring back the lost glory of citizen’s rights. tion has stood for the equality The primary which was conduct- Adebola lamented that Nigeria at the state and revamped the decaying Global Rights gave this indica- and dignity of all human beings. ed by four officials from the national 58 is in a pathetic situation because infrastructure. tion at a colloquium to mark its We have worked in the most op- headquarters of the party in Abuja of misplaced priority of the past Adebola, a thorough and bred son 40th Anniversary in Abuja. pressive countries around the led by Godwin Anasowe Esq. was leasers and promised to implement of Kwara, added that he has traversed Executive Director, Global world, including Nigeria, working equally witnessed by two officials SDP programmes that centered on the length and breadth of the state Rights Country Office, Abiodun on issues of ensuring access to from the Independent National welfare of the people if elected. and understood the suffering of the Baiyewu-Teru said the organiza- justice to remedy the dignity of a Electoral Commission (INEC), led While calling on all Nigerians to people. by Ayodeji Akerele from the legal tion was founded in Washington human person and ensuring the love each other and the country as “You are poor and in pain when Department of the Commission, DC in 1998 with the name Inter- effective governance of our natural a whole as Nigeria marked 58 years you can’t pay your children school national Human Rights Law Group Ilorin office. of independent, he said : “We have fee, you are poor when you can’t resources and human rights”. Addressing the delegates, SPD na- and later changed its name to misplaced our values, let us have a access good healthcare, when you Baiyewu-Teru added that Glob- tional delegate, Anasowe said elect- Global Right Partners for Justice rethink of our value and stop chasing lack good water and your roads are al Rights will always ensure that ing a governorship candidate was money for Nigeria to be great. in deplorable conditions. in 2003 on the occasion of its 25th citizens have a voice and their not an easy task as the responsibility “We should grow in love, love for “We are ready to liberate the peo- anniversary. voices are amplified and that of the state rests on his shoulders for one another and the country is the ple of Kwara, that is why I termed According to Baiyewu-Teru, people are able to speak for them- at least four years, as he even told the solution to our problem. my campaign slogan ‘Liberation “in 2014, the organization shut selves and stand to be citizens in delegates that they were free to make “The one you love, you will not 2019’ and I will not disappoint you,” its Washington headquarters and their own country. their choice even if there was only steal his money and the money that he said. 18 BUSINESS DAY C002D5556 Wednesday 10 October 2018 Politics & Policy 2019 Presidency: Real ‘war’ begins as Buhari, Atiku, Duke, others emerge INNOCENT ODOH, Abuja

he 2019 Presidential race is now set to be- gin in earnest as heavy weight candidates have been thrown up by the politicalT parties in a contest that will unarguable be fierce with each candidate already beating their chests and sounding optimistic of winning the coveted presidential crown and occupy Nigeria’s politi- Buhari Atiku Duke Moghalu cal power pinnacle. In the Early hours of Sunday, respective of tribe, gender or belief October 7 at the Eagle Square in saying “Enough is now enough; Abuja, the ruling All Progressives we have decided that Nigeria will Congress (APC) in a special con- no longer accept a leadership of vention for the party’s primaries, mediocres, which has kept it down simply affirmed President Muham- and allowed wanton and senseless madu Buhari as its flag bearer in waste of innocent lives. the race. The Returning Officer in “I bring a message of hope to you the presidential primaries, Kayode that I and millions of supporters Fayemi said Buhari polled 14, 842, will march in solidarity to ensure 072 million votes. that Nigeria gets a new and focused According to him, “that gives leadership in 2019.” you a pointer to what we are going Ezekwesili Sani Gbor Also on Sunday, the National to have in the 2019 elections. This Chairman of the Action Demo- is the registered votes of the regis- cratic Party (ADP), Yabagi Sani, tered members of our party. We are Turaki, ex-Minister of Special Du- while Delta state- born clergy man by a worldview that determines was elected as the presidential not talking about other Nigerians ties garnered 65 votes. Attahiru Felix Osakwe got 10 votes to come everything else. flag bearer of the party during its who will vote for the president in Bafarawa, David Mark and Datti behind. “Up till about 40 years ago, national convention in Abuja on the general elections”, he said. Baba-Ahmed finished last after Duke had in a remark said that China was viewed as a basket case; Sunday. The trained Engineer was Shortly after he was declared they got48, 35 and 5 votes respec- he will work to redeem Nigeria overpopulated, unproductive and affirmed as the party’s candidate as the APC candidate, President tively. 68 votes were void. from the shackles of poor leader- ruined economically by policies of after over 5 million delegate votes Buhari gave assurance to members Atiku in his acceptance speech ship and initiate policies that will the decades prior to that. adopted him as the candidate. of the party and Nigerians that he lauded the delegates and the lead- transform the nation and put it “Today, they snap their fingers In his acceptance speech, Yabagi will not disappoint them if he is re- ership for choosing him promis- on a path of progress, justice and and nearly every single African said the condition of the country is elected as President in 2019. ingto work with the 11 other aspir- sustainable development. Head of state shows up in China terrible such that only a proactive “I thank you deeply for your sup- ants to work for the victory of the Addressing party faithful before with their hands out, eager for Chi- and visionary leader can change port and confidence in me. I will party in 2019. the commencement of the pri- nese largesse. That’s what a country the fortunes of the country for the not let you or the people of Nigeria “Today, we are witnessing a mary, National Chairman of the driven by a worldview can achieve. better. He promised that the ADP down. “Fellow party members, it is landmark event because the re- SDP, Olu Falae, urged politicians to “In accepting the presidential is the credible alternative. “My vi- with a deep sense of humility that branding of the PDP and the return focus on the welfare of the masses ticket of this great party, I stand sion is to transform the economy I stand before you today to accept of democratic governance in this and stop the disgraceful spread here before you to say that Nigeria through massive investment in the nomination of our party, the country, we are witnessing the of political monetisation in our is fully capable of achieving great- agriculture, industry, manufactur- APC to be its candidate and flag- most credible, transparent and country. ness at home and abroad in our ing, and food processing by the bearer in the 2019 presidential fairest primaries. He lamented that Nigerians had lifetimes. But this cannot happen establishment of cottage industries elections. “I am prepared to listen to you, helplessly watched their leaders with the normal way of doing across the 774 local governments in “As I stand today before you, to take your advice so that together degenerate in recent years with things, the so-called Nigerian way.” the country to provide jobs for the there is no honour greater than the we can be part of the success. “I widespread neglect of the inter- He solicited support from all Ni- unemployed. This is the only way confidence given to me by all of you believe we have learnt our lessons est of the masses. He regretted gerians irrespective of their ethnic the country can change and the when you affirmed my nomination. and we shall continue to improve the ineffective and incompetent or religious background adding issue of insecurity ravaging parts “I accept this honour as a tribute on this,” he said. leadership, in the country, stress- that he has developed the right vi- of country can be easily curtailed,” and mark of confidence to carry Atiku said further the PDP “can- ing that it had resulted to what he sion, character and competence to he said. the responsibility as we all join not afford to fail Nigerians who called “social and food insecurity, lead Nigeria out of economic back- The All Progressives Grand Al- hands to continue the good work having seen the failure of the All lawlessness, impunity, insurgency, wardness and political instability. liance (APGA) conducted their of the APC government to 2023 and Progressives Congress, APC, are widespread corruption, nepotism Former Vice President of World Presidential primaries on Sunday beyond,” he said. now prepared to return the PDP and poverty.” Bank and Co-founder of Bring Back October 7 Abuja and elected John On the same Sunday morning, back to power. “It is not just enough In September, former Deputy Our Girls, BBOG, movement, Oby Gbor, a retired Major General in the the main opposition party, the to say APC has failed but the PDP Governor of the Central Bank of Ezekwesili, on Sunday October 7, Nigerian Army as its flag bearer, by People’s Democratic Party (PDP), must be able to offer solutions to Nigeria, Moghalu emerged presi- won the presidential ticket of Allied a unanimous decision in the exer- in keenly contested presidential the challenges affecting this nation. dential candidate of Young Pro- Congress Party of Nigeria, (ACPN) cise conducted by the chairman of primaries during the party’s con- That is the only way to take over gressives Party (YPP) during the during that party’s the national the National Planning committee vention held at the Adokie Amasie- power from this clueless govern- party’s national convention held convention in Abuja. Joe Anyinka. meka Stadium Port Harcourt, ment. ” in Abuja. In her acceptance speech, Ezek- In his acceptance speech, Gbor elected former Vice President On Saturday October 6 at the The 55-year-old public intel- wesili regretted that Nigeria under said “my government will be com- Atiku Abubakar as its Presidential Old Parade Ground in Abuja, the lectual and a former officer of the the President Muhammadu Buhari mitted to a strong, united and pros- Candidate. Social Democratic Party (SDP) United Nations was unanimously Government remains in “unsus- perous Nigeria where no one and Atiku polled a total of 1,532 votes also elected former Governor of voted by delegates from all the tainable failure” adding that 2019 is no place is left behind. He said that to beat his closest rival, Governor Cross River state, Donald Duke states of the federation through the a defining moment which provides Nigeria urgently needs restructur- Aminu Tambuwal of Sokoto who as its flag bearer during a special Option A4 voting system adopted opportunity to unite and galvanise ing to enable the constituent units polled total votes of 693 votes, convention. Out of 1,726 valid by the party for its presidential pri- the potentials of the Nigerians to explore its full potentials instead Senate President, Bukola Saraki delegates of the party across the mary, which was monitored by of- build a great nation.” of the current system that breeds who came third with 317 votes nation and the FCT, Duke clinched ficials of the Independent National The former education minister indolence, greed and laziness. and former governor of Kano state the SDP ticket by polling a total of Electoral Commission (INEC). said her campaign slogan “Project Now the stage is set for contes- Rabiu Kwankwaso, who garnered 812 votes to beat former Minister of Moghalu, who polled 243 votes Rescue Nigeria” was apt for the tation of votes ahead of the elec- a total of 158 votes to finish fourth. Information and National Orienta- out of 253 accredited delegates, moment even as she lamented that tion possibly on the fundamental Gombe state governor, Ibrahim tion, Professor Jerry Gana, who got stressed that Nigeria desperately it was a great tragedy that Nigeria issued troubling the nation. Alli- Dankwambo secured 111 votes total of 612. needs a leader of international instead of making progress is rather ances are also looming as some of while former Jigawa state governor, Niger Delta activist, John Dara, repute, not politicians that had derailing and moving towards total the parties that do not have wide Sule Lamido polled 96 votes. For- came third with 104 votes. Erudite failed the country. He said “more economic collapse. reach and with less formidable mer Kaduna state governor, Ahmed scholar Iyorwuese Hagher, came than ever before, Nigeria needs She promised to offer equal opponents are already poised for Makarfi had 74 votes while Tanimu fourth having secured 72 votes, to be driven by a vision, informed opportunities to all Nigerians ir- the alliance. Wednesday 10 October 2018 C002D5556 BUSINESS DAY 19 Politics & Policy How I will provide adequate representation for Edo South Senatorial District - Owie Candidate of the Action Democratic Party (ADP) for the Edo South Senatorial District of Edo State in the 2019 generation elections, Ese Owie (PhD) is brimming with fresh ideas and determination to change the fortunes of his zone. The erudite scholar, lawyer and entrepreneur, believes he will use the power of legislative appropriation to bring infrastructure development to his people. In this interview with JOHN OSADOLOR and INNOCENT ODOH, he also advocated for the restructuring of the federation as the panacea to the myriad of crises rocking the nation. Excerpts: You have emerged as the Senatorial other people to see, let them bring out because what we have today is a fraud. candidate of the ADP to for the Edo the other people and let us evaluate So I am for restructuring 100percent South Senatorial District. Why did and let the people vote. but the restructuring that will be done you choose the ADP? properly with a vibrant and effective am a lawyer by training, an In term of ideas is there a possibility and efficient National Assembly. entrepreneur by calling and that what the APC lacked in ideas is a public intellectual, so at ev- what you have found in the ADP? If you will take one issue to the ery point in my life I have sat My service to the APC government was National Assembly, what will that down and decided the route I out of my commitment to my personal issue be? Iwill take. Thankfully I was part of the friend and mentor Adams Oshiohm- If I am elected senator today, I will fo- process that brought the two leading ole. So I am not in the position to cus on infrastructure. Like I said earlier, political parties today into being. interrogate what happened in his gov- the former Mid- West seats in the neck I was a founding member of PDP, ernment or interrogate the manifesto between the north and south, there is a founding member of the A.C.N of the APC. That I served in the APC no road between Lagos and the east that became APC. So there is really government was out of my personal and every year we do appropriation. nothing anybody can tell me about respect for former Governor Oshiom- Legislators go to Abuja and literarily go the PDP or the APC. For me I am hole and his visionary leadership. You to sleep. So for me the main thing that I not running on the issue of political notice that since I left I have not made will do is to ensure that there is a proper platform, I am running on just one a statement against his government or appropriation for infrastructure. issue- competence. made a state against the APC. And whoever is senator for Edo We must change the negative nar- I am in a platform that gives room South, must represent the collective rative about Nigeria. For instance, in to interrogate the current system. Why interest of the entire Mid- west and those days parents did not send chil- should the Lagos-Benin road not be must build linkages between Edo and dren to private schools. We were sent complete? Why should Oloibiri where Delta that is why I said as Senator for to federal government institutionsso Nigeria first struck oil 60 years ago in Edo South I will ensure that the Auchi my key interest is in interrogating the Owie Bayelsa not have a functional health Polytechnic is properly funded as a current public governance structure system? There are structural issues centre for development for technical and ask whether or not the current I have an aversion for tokenisms, norship election was decided by 50,000 we must interrogate whether we like education. I will ensure that the Abuja- legislature has done their job. So it is you cannot in this modern stage say plus votes, it has never happen before. it or not. It is not just the issue of APC Lokoja-Okene-Auchi –Benin Road is not about power it is about service. you are commissioning sole apple So there are undercurrents that people or PDP but the current structure of fully completed in my four years of light of 150,000, that is not the job of are not reading, they are being naïve. governance in Nigeria. Is this structure office by way of appropriation. I will What do you see in Nigeria and Edo a senator. You cannot be s senator That the APC moved the Edo election sustainable? If it is not then we must put enough pressure on the Minister state of today that motivated you to and be giving grinding machines or was an indication of a problem. Even restructure the federation and actively of Works to do it. I will ensure that the seek this office? tricycles (Keke NAPEP). The power is in Osun look at what has happened in do a proper devolution of powers. Benin- Lagos road is fully funded and In all modesty I have been blessed by over ways and means of appropriation, Osun, the dynamics are changing. I completed; I will ensure that the Benin God and there are structural issues in and God willing when I am elected, I am running on just one platform, the What is your own definition of re- Airport is upgraded to a full interna- Edo that we must fix. I am not scared will challenge all my contemporaries issue of credibility and an addendum structuring? The Vice President sees tional airport so that the people of the to say the truth. A lot of people lie. I tell to a proper debate. to that is competence because a system it as geographical demarcation. If then Mid-west will no longer need to people that Edo (former mid- west) that breeds incompetence cannot be you were to be in the Senate, how go to Abuja or Lagos to travel abroad. was the only region post- indepen- The challenge however is that Edo is a system. will you pursue the issue of restruc- For health care, I will ensure that dence that was created via constitu- APC dominated and you are running turing? the UBTH is properly funded to play tional means through a referendum. under a relatively new party- the You said that you are a founding Anybody in the executive that is talking its parts as the centre for health care So, one of the fallacies in our historical ADP. Do you believe that this new member of the APC, so why do you about restructuring is either talking excellence not just on paper. So for discourse is that Nigeria stood on a party will help you realise your have to abandon the APC for the out of ignorance or mischief because me it is about ways and means I will tripod post-independence that was dreams? ADP? at the heart of restructuring is a funda- play the right politics to ensure that not true. It was true for just 2 and half I come from by far the most cosmopoli- I did not abandon the APC, there are mental constitutional amendment. So between my colleagues and I what years and Edo was the fourth one. Edo tan senatorial district in this country. legacy issues. I worked for an APC the restructuring can only be done by we need expenditure wise is covered was conceived as the epicenter of sub Edo South is home to every ethnic government, I was a cabinet com- the National Assembly and the state and the people of Edo will get what regional development so the reason group in this country. So one thing missioner under the APC but the way assemblies, because in the absence of they desire. Enough of mediocrity, why the Binis did not take any key is for certain, election rigging in my government works not everything that the amendment of the 1999Constitu- enough of tokenism, we have gone position in the post premiership posi- district is not possible. I have worked happened that you make public. There tion you cannot change the current past the stage of sharing grinding tion was that they wanted the capital for government, I have a track record are a few things that happened while governance structure. stone, Keke NAPEP. and we wanted the capital because we in the private sector; I am Ivy League I was commissioner under the APC So Presidential candidates that tell wanted to drive development. trained, so Edo will decide. I will take government but my relationships with I will restructure Nigeria in six months In specific areas of youth empower- So, whoever emerges senator on the establishment head on and all I the people with the APC government are either joking, lying or are being ment what will you propagate in for Edo South, must represent the am asking for is free, and fair election. remains. They are still my brothers, sis- ignorant. The most important thing Edo south? collective aspirations of every mid- Thanks to social media, voters are a lot ters and friends. There are also reasons is having a competent legislature. In I have worked in multi-jurisdictions westerner, be it Ijaw, Itshekiri, be it more intelligent today; the lies people I am not running under the APC, those normal systems the legislature is the and I have lived in about 7 countries Ishan, be it Urhobo, be it Benin. So the told 20 years ago cannot hold water are personal issues. most important arm of government and one thing that is clear is that only thing driving me is that we must today. So this level of incompetence I believe the APC is still good but because the executive can only work we have the wrong approach to have development. Fifteen years after must stop and the reason people like what I want to do I don’t think the where the legislature makes proper empowerment. What we call youth we still cannot explain why the Benin us are joining the field is that we want current epoch is the right place to go. laws. That is why the US Congress is empowerment in Nigeria is a euphe- Bye pass is not complete. Phase one to stop incompetence. So when you While I respect the party as a political the most powerful arm of government. mism for thuggery. The politicians was completed in 2003 fifteen after say that Edo is an APC or PDP state it party of means I also have my personal So for restructuring the first thing don’t do anything for the youth but not a dime has been put on the Benin is not true. political ambitions so I will not do we must do is to elect competent six months to election they will buy bye pass. The University of Benin The Edo voters are extremely APC. It is the reasons for the PDP. I legislators in 2019 and sit down and motorcycles (Okada), and share for Teaching Hospital (UBTH) was the enlightened they will vote according believe I have the pedigree, the net- review our constitution and agree on them. For me we must have a struc- second largest tertiary hospital in this to their collective consciences and I work, the experience, the track record our governance structure and in the tured approach to trade policy sub- country with over 900 beds, but today believe I am the best man in the race to win in a general election. So I am absence of that we will continue to sidization. The current level of state it has no functional dialysis machine. and by the grace of God and the will of doing a new party and I am asking the have no country. A situation where aid is not sustainable. We cannot The Benin-Lagos road is not complete. the people, come February 2019, I shall Edo people to come and vote regard- by a state from the North West gets have 25 development finance insti- The power of the legislature is in ap- emerge as the Senator for Edo South. less of party. I have been tried and I more money because it has 44 local tutions. You have SMEDAN, Bank of propriation. A legislator that cannot There was a reason the govern- have been tested. I grew revenue for governments than a state in the South Industry; you have NEFRON and so convince his colleagues to appropriate ment postponed the Edo governorship over 300percent in six months, I was west does not make sense. We must on. We must have a way of pooling money for projects he has an interest election for those who know. For the a commissioner that served without have a proper system for accounting these funds together and a have a in is a failed legislator. first time in our history the Edo gover- blemish , my track record is there for for revenues, for sharing revenues rule based system for state support. 20 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 BUSINESS DAY 21 22 BUSINESS DAY C002D5556 Wednesday 10 October 2018 In association with

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Nigeria’s cocoa mold level rises to 7% as rainfall persists …main-crop harvest commences …N600 per kg at farm-gate

JOSEPHINE OKOJIE constant rainfall it takes an average of nine and 10 days to dry the cocoa ersistent rainfall and beans,” Akinmulure says. damp weather in major Nigeria is the world’s fifth largest cocoa growing regions of cocoa producer alongside Cameroun the country has induced after Ivory Coast, Ghana and a 7 percent rise of mold Indonesia with estimated output of levelsP in Nigeria’s cocoa beans, as 240,000 tons in the 2017- 18 season, main crop harvest commences, according to ICCO data. cocoa farmers association says. Nigeria has two cocoa harvests Sayina Rima, national president, which includes the smaller midcrop Cocoa Association of Nigeria (CAN) from April to June, and the main crop tells BusinessDay that the mold level from October to December. which is caused by persistent rainfall The main crop normally accounts might affect the crop quality and for about 70 percent of Nigeria’s cocoa lead to lower pricing of the country’s output while the midcrop accounts cocoa beans. for the remaining percentage. “The persistent rainfall in major Despite cocoa being major foreign cocoa growing states is making it exchange earner for the country after difficult for farmers to dry their cocoa oil, Nigeria has failed to steadily beans since the main crop harvest increase its cocoa production. commences,” Rima says. Apart from bad weather “Some of the cocoa beans are now L-R: Terence McCulley, chairman, United States Nigeria Council; Kayode Pitan, chief executive officer, Bank of conditions, lack of improved having mold and the levels is as high Industry, and Wale Tinubu, chief executive of Oando Plc, during a discussion at the roundtable breakfast meeting seedlings, low investments in as seven percent,” he says. of the 73rd United Nations General Assembly in New York City, USA recently. the industry, high numbers of Currently, a kg of cocoa at the un-rehabilitated cocoa trees and farm-gate sells for N600, while a Cocoa Organisation (ICCO) daily in Ondo state and farmers have been Omioliyan village in Ondo state. aging farmers among others, are metric ton goes for N600,000. At the prices of cocoa beans as at the time sacrificing a lot to ensure that their “With adequate sunshine, it takes major reasons for Nigeria’s loss of international market, a metric ton of writing. cocoa beans get dried,” says Ademola four to five days to dry our cocoa to ‘cocoa power’ in the global market, sells for $2,019 on the International “It has been raining extensively Akinmulure, a cocoa farmer in the required standards but with the BusinessDay investigation found. Maize production receives boost Cade Creek International launches $25m agric project in Osun as Oyo cultivates 24 hectares …to create 6,000 jobs

AKINREMI FEYISIPO, Ibadan material resources in the state. BOLADALE BAMIGBOLA, Osogbo source for corn from the farm. soil experts certified the soil good for He said the vision of Governor He further explained that the farming,” Nyere said. Ajimobi in launching the AgricOyo primary purpose of Cade Creek “We have gotten the assurances aize production in the in 2016 has made people appreciate ade Creek International, Farming is to provide effective and from government and the country has received the importance of mechanised an american company environmental friendly agribusiness community that our investment here a boost as the Oyo agric, saying that this is contrary based in Colorda, in in Africa, utilising it vast experience is save. The community is friendly. State Government has to insinuation that the programme partnership with Youth to help the people of Africa in the $25million will be invested by an cultivatedM 24 hectares of the grain is a waste as it has started yielding OffC The Streets Initiatives (YOTSI), farming sector. American investor. The community under the Oyo Agricultural Initiative results. a non-governmental organisation, Alley noted that the intention is giving the group the land to farm. (AgricOyo) in the late 2018 planting Oyewumi commended is setting up a $25 million farm in is to teach the local labour forces Resources will come from US and season. Iseyin Local Government for Ifon Orolu local government area how to use the equipment and give our group. Oyewole Oyewumi, the state complementing the efforts of the of Osun state. them knowledge of commercial “Youth Off the Street Initiative commissioner for Agriculture, state government in achieving its Announcing the partnership farming. conceived the project and we Natural Resources and Rural vision for AgricOyo, enjoining other during the presentation of the Also part of the initiative, Alley brought in other partners. Olufon Development, during his agrarian local governments and the Memorandum of Understanding opined that Cade Creek would also of Ifon was invited to the US for the inspection at maize farms in Paapo general public to imbibe the spirit of (MoU), at the palace of Olufon of Ifon contribute funds for housing the meeting we had with the investor village, Iseyin made this known farming as agriculture is the bedrock Orolu, Patrick Alley, chief executive employees and for the medical and and an agreement was reached,” to journalists, while adding that of the nation. officer, Case Creek International school. he adds. the state has adopted modern In his address, Yekini Akanni, said when fully operational, the farm “I had the vision to come to In his remarks, Olufon of Ifon, technology for the production of chairman, Iseyin Local Government, would create over 6,000 direct jobs. Africa and help in empowering Oba Almaroof Magbagbeola, said maize. speaking through Adeniyi Adekunle, Alley told newsmen that he people in year 2008 while praying. commended Patrick Alley, whom Oyewumi explained that vice chairman, appreciated received spiritual directive to come The vision kept on coming. Our he described a good man with efforts of the government in the Governor Ajimobi for launching the to Africa to help provide jobs and goal is to make Africa independent vast experience in agriculture, for agricultural sector cannot be AgricOyo in his Local Government, add improve the livelihood of of any food that is needed in the investing in the town. visible within the short period saying that he has been working millions of people while praying in continent and to help the poor,” The royal father said he met Alley of time like the construction of earnestly to ensure that the initiative his house in 2008. Alley said. and others involved in the project roads, saying that the AgricOyo yielded positive results. To ensure maximum yield, In his remarks, Kennedy Nyere, in United States and worked out initiative is a systematic approach Earlier in his welcome remarks, the American said an irrigation the president of Youth Off The Street the modalities and assured that the which has started yielding positive Taiwo Adewale, head of Iseyin specialist would be brought from the Initiative (YOTSI), the initiator investment would be protected by results with the cultivation of the 24 Local Government Administration, US, adding that besides providing of the project, said his NGO has the indigenes of the community. hectares of maize. (HLA), pointed out that Paago was jobs, the farm would also train agriculture and food security as Corroborating the views The commissioner, who was the root of AgricOyo in 2016 which people of the state in different new one of its five cardinal programmes, expressed by the monarch, Benson represented by Victor Atilola, has assisted the development of innovations of modern method stressing that empowerment of the Adekunle, chairman, Orolu local permanent secretary of the state Iseyin Local Government. farming. unemployed remains the main government, Ifon Osun, said Ministry of Agric said that the He therefore commended the He added that different crops motive behind the establishment arrangement for security of the initiative is aimed at creating state, local government and his team would be planted, and emphasised of the farm. investment have been concluded jobs, ensuring food security and for a job well-done in the realization on a new cornflakes company that “The farm has taken off since and called for cooperation of all improving livelihoods through of this landmark among the agrarian would be opening in the country May. A team visited the site of the stakeholders to ensure security of massive engagement of human and local governments in the state. soon, adding the company would farm and conducted soil test and our the farm. Wednesday 10 October 2018 C002D5556 BUSINESS DAY 23

[email protected] Livestock: Stakeholders call for more diagnostic laboratories be achieved through efficient and JOSEPHINE OKOJIE accurate animal disease diagnosis. “It is worthy to note that animal takeholders in the livestock disease diagnosis is an important industry have called on component of veterinary services the Federal Government and that Nigeria has quite a number to create more diagnostic of laboratories that is carrying out laboratories for animal care animal disease diagnosis such Sand livestock disease treatment in as National Veterinary Research the country Institute, VOM and eleven (11No) Iruka Okeke, a professor of Veterinary Teaching Hospitals (VTHs) Pharmaceutical Microbiology at as well as few private veterinary the University of Ibadan recently laboratories that are operating at lamented the limited diagnostic below their optimal levels thereby capacity in many African countries leading to huge gap in veterinary and its impact on global health diagnostic services” security, according to a statement The Minister expressed hope made available to BusinessDay. that more animal health diagnosis “We cannot have a secure world centers like the newly established if we cannot have pathogens and City Laboratory will help the Federal diseases diagnosed in the areas where Government’s vision of ensuring they emerge,” Okeke said during Ezekiel Ibrahim, national president, Poultry Association of Nigeria (PAN) exchanging pleasantries with Matin Middernacht, profitability for farmers. the annual conference organised managing director of Chi Farms Ltd, at the official commissioning of Chi Farm’s City Laboratory in Ibadan, Oyo state recently. The laboratory which was by the Nigeria Centre for Disease established by Chi Farms, a subsidiary Control (NCDC) and the Nigeria of Tropical General Investment (TGI) Field Epidemiology and Laboratory disease present both economic Nigeria’s livestock industry as farmers livestock farmers. Group and Zoetis, a global animal Training Programme (NFELTP). and health dangers to developing are often frustrated and dejected after Commenting on the state of the health company under its African She emphasised the need for the countries like Nigeria. recording huge loses. poultry industry in Nigeria, Audu Livestock Productivity and Health establishment of more diagnostic “Wealthy countries are effectively Contagious Bovine Ogbeh, Minister of Agriculture and Advancement (A.L.P.H.A.) initiative, laboratories with skilled professionals dealing with livestock diseases, but Pleuropneumonia (CBPP), Peste Rural Development, while speaking will go a long way in complementing in African countries where tests and in Africa and Asia, the capacity of des Petits Ruminant (PPR) Foot during the commissioning of Chi the effort of the National Veterinary pre-emptive diagnosis can be carried veterinary services to track and control and Mouth Disease (FMD), Avian Farm’s City Laboratory in Ibadan, Research Institute (NVRI) in reducing out to prevent further outbreak of outbreaks is lagging dangerously Influenza (HPAI) African Swine and Oyo recently, noted that for a the chances of animal disease animal diseases. behind livestock intensification,” the Fever (ASF) are some of the diseases livestock business to be profitable, outbreak in the country through Also, a 2011 report by the report said. that have bedeviled and crippled the it is imperative that diseases are quality diagnosis and research for International Livestock Research Diseases outbreaks have growth of the sector, causing huge effectively controlled and eradicated. pre-emptive mitigation against Institute (ILRI) states that livestock continued to limit the growth of financial loss and indebtedness to He pointed out that, this can only production loses, according to Ogbeh. Oyo, IITA collaborate to boost agric How to establish moringa tea bag processing factory productivity with Investment summit OLUMAKINDE ONI It is a detoxifying agent, it Financial Implication is effective against snake and A sum of N8.75 million will be AKINREMI FEYISIPO, Ibadan finance and investment companies, oringa is a food, Infrastructure expert, fund managers, scorpion bites. With all the health required to set up this project. The medicine and forage he Oyo State Government International Development Banks, benefits of Moringa listed above, a breakdown is given below: crop. Moringa in collaboration with potential agriculture investors, agro- Moringa tea produced in Nigeria, International Institute of allied industry and all stakeholders in cultivation is gaining well packaged with aggressive • Pre-Investments - N250, 000 Mpopularity in Nigeria in recent Tropical Agriculture (IITA) is the agribusiness. marketing strategies will sell setT to hold an agriculture investment He said that the summit, which times. Many Nigerians are now like hot cake. A moringa-tea • Accommodation - N2, 500,000 summit to boost agricultural is supported by private equity establishing Moringa plantations production factory is nothing but productivity in the state. firms, commercial banks, leading and consuming a lot of the a goldmine that will definitely • Plant and Machinery - The summit with the theme: agribusiness companies, investment products. turn around the fortunes of the N3, 000,000 ‘Transforming Oyo State’s Agriculture and finance companies, international The health benefits of moringa promoters. and Agro –Allied Industry: Private aid organisations, insurers and are limitless. Moringa has a strong • Utilities - 2,000,000 Sector Participation’ is expected to government agencies, will also seek antioxidant effective against Technical Information have over 10 keynotes speakers and to address key agricultural issues like prostrate and skin cancers. It is Moringa plantations are springing • Take-off Working Capital - access to finance, market, research nd panellists, 35 exhibitors, 300 delegates an anti-tumor and an anti-aging up in Nigeria and it has been well 1,000,000 and over 2000 visitors in attendance. mechanisation among others. substance. It modulate anemia, established that Nigeria has the TOTAL N8, 750,000 According to Oyewole Oyewumi disclosed that the high blood pressure, diabetes, keynote speakers include Governor potentials to grow millions of ======Oyewusummit, Oyo state high serum or blood cholesterol, commissioner for Agriculture, Natural Abiola Ajimobi of Oyo State, hectares of Moringa, hence the A well packaged feasibility report/ thyroid, liver and kidney problems. Resources and Rural Development, Kola Jamodu, chairman of BAT raw materials supply can never Business plan is a pre-requisite the which is schedule to take place at Foundation, Abubakar Suleiman, It also has strong anti – pose any problem. Not only this, to project take-off and finance the Conference Centre, International MD and CEO of Sterling Bank, inflammatory properties the awareness of usefulness of sourcing. This can be provided for Institute of Tropical Agriculture Ebrima Faai, director, AFDB, Kayode ameliorating rheumatism, joint moringa is gaining ground every serious minded investors. (IITA), Oyo Road, Ibadan became Pitan, MD, Bank of Industry, Sani pains, arthritis, edema and lupus. day. imperative in order to bridge the gap Dangote, group vice president, It is effective against digestive Moringa leaves are plucked, Profitability among farmers, agro producers, agro- Dangote Industries Limited, Paul disorders including colitis, washed, sterilized and well dried. The project has potentials to allied industries, research institutes, Gbadebo, MD, Flour Mills of Nigeria diarrhea, flatulence (gas, ulcer or The dried leaves are later milled generate a turnover of N300 million government, agricultural banks and and Kenton Dashiell, deputy gastritis. into powdery form and now on annual bases with a minimum private companies among others. director, IITA. It is an anti-bacterial, anti- flavoured. We can have different pre-tax profit of N130 million already Oyewumi stated that Oyo State The commissioner said that microbial and anti-viral agent, flavours such as strawberry, computed. This is another income the summit is free for exhibitors of Agriculture Investment Summit it is effective against urinary vanilla, ginger and others. The next and job generating opportunity (OYSAIS) is aimed to trigger the agricultural produce, adding that tract infection, typhoid, Syphilis, Folashade Joseph of NAIC, Ayodeji step is to package in permeable tea that has far reaching positive effect industrial and agro-allied sector of dental carries and toothaches, Balogun of AFEX, Venkataramani bags. Tea bags are now stuffed in on the Nigerian Economy. Serious the state, explaining that the summit fungus, thrush, common cold, will complement the efforts of the S. of Olam Nigeria, Bolaji Akinboro small packs. Attractive and good minded investors can be assisted Epsetein-Barr virus, Herpes state government in its AgricOyo of Cellulant also serve as keynote packaging is a pre-requisite to in the establishment of this project. programme. speakers. – simplex, HIV AIDS, warts market acceptability. Serious Contact author on 08023058045 or The commissioner said that OYSAI The summit is schedule to hold parasites, worms, schistosomes minded investors can be put [email protected] and is designed to attract private sector 11th and 12th of October, 2018. and trypanosomes. through the technicality. [email protected] 24 BUSINESS DAY C002D5556 Wednesday 10 October 2018

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FBN General Insurance unveils three new retail products to deepen penetration

nderwriting firm, FBN is a home content insurance policy, General Insurance has designed to ensure adequate cover unveiled three new prod- for customers’ treasured home ucts into the Nigerian including the contents. Umarket, targeting to increase con- “The FBN General Insurance sumer appetite with simple, afford- Flexi Home is a home content able and flexible products. insurance cover that compensates According to the company, this the insured in the event of loss or is part of its efforts to deepen insur- damage to property belonging to ance penetration, having taken into the insured as a result of fire and/or consideration class of people in allied perils,” the MD added. terms of affordability. The product is available in The three new products, Auto four variants, namely: Flexi Home Flexi Insurance, Flexi Home Insur- Bronze, Flexi Home Silver, Flexi ance and Flexi Guard Insurance, Home Gold and Flexi Home Plati- L-R: Modupe Akinwande, head, Enterprise Risk Management; Elizabeth Agugoh, head, Marketing and Corporate Communications; according to the management of num for agreed insured value of N1 Bode Opadokun, managing director; Tunde Mimiko, executive director; Pauline Ogebe, head, Legal; Dunni Oladokun, head, Retail the company, have been approved million, N2 million, N3 million and and Jacqueline Agweh, head, Claims all of FBN General Insurance at a press conference held recently in Lagos. by the National Insurance Commis- N5 million for an annual premium sion (NAICOM). of N7,500, N15,000, N20,000 and Speaking on the benefits and val- N30,000 respectively. ues of the products at a press con- On the Flexi Guard, the MD ference in Lagos, Bode Opadokun, said “Flexi Guard is a protection CHI reaffirms commitment to deepening managing director/CEO of the policy that pays compensation to Company said the new products the insured in the event of injuries, are simple, affordable and flexible. disability or death caused solely by insurance education, research in Nigeria He said Auto Flexi is designed external and visible event.” to meet customers’ specific needs. The policy is available in three nderwriting firm, Con- impact of digitalization on marketing of Nigeria and Yetunde Ilori, director variants of Flexi Guard Silver, Flexi of Insurance services’ is quite appro- general, CIIN who were in attend- “Auto Flexi came out of the needs solidated Hallmark that customers have in terms of Guard Gold and Flexi Guard Plati- Insurance (CHI) Plc priate in view of the increasing pull of ance to witness the exciting event num. The policy covers among private as well as corporate organiza- said the programme has in a big way request. We have seen several in- has reaffirmed its com- stances where some of our custom- other things bodily injury, death or mitment towards en- tions to usage of new media channels assisted the work of the Institute in permanent disability to the tune of for payments and also as the primary deepening insurance education in ers both existing even prospective Ucouraging research, as well as body having issue of pricing. Pricing in N500, 000 for a premium of N1,500, of Knowledge in insurance industry source of information. The insurance Nigeria. N1 million for a premium of N3,000 industry cannot but tap into rapidly They also expressed optimism, terms of affordability and ability to in Nigeria. pay the premium that is applicable and N2 million for a premium of Eddie Efekoha, managing direc- unfolding cash-less society. that having sustained the pro- N5,000. The overall winner of this year’s gramme in the last seven years, there based on the value of some of the tor/CEO of the Company, who is also vehicles.” This insurance product, accord- the CIIN President, gave the assur- edition Olumodeji Damilola of the is no doubt that it has come stay. ing to the MD, provides cover for Lagos State Polytechnic went away It is in two levels - first level is the The products, according to him, ance at the 2017 edition of the award is designed to cover the insured other eventualities such as any form ceremony of CHI Annual National with N250, 000.00, and opportu- students’ departmental assessment of accidents; strike, riot and civil nity for interview for employment panel constituted by their HODs against specific, pre-agreed losses; Essay Competition for higher Insti- legal liability to pay compensation commotion; Dog bite, wild animal tutions in Nigeria offering insurance in CHI on graduation from school. which usually forward the best three attack as well as motorcycling either While the second prize winner is entries to the company. to a third party in the event of an ac- and actuarial sciences held in Lagos. cident that cause property damage as a rider or as a passenger. The Annual National Essay Onyeneke Chukwuemeka from Imo The second level of assessment On what should be expected State University who got N150, 000, is usually by an independent panel or bodily injury to the third party. Competition commenced with the He said the policy also covers the from FBN General as the year winds maiden edition in 2011 based on the 00 and third prize winner, Asunlegan of distinguished insurance practi- down, the MD said, the firm will Babatunde from Imo State Univer- tioners constituted by the company. insured in the event of damages due firm belief by the CEO in developing to an accident and fire damage up continue in its profitability trajec- talent and expanding the industry sity who took away N100, 000.00. All They grade the best entries received tory, having recovered from a loss the first prize winners in previous from the various Institutions while to the agreed value insured. knowledge whilst encouraging The policy is divided into three position to a profit position since research. editions took up employment posi- average scores are arrived at to 2016, adding that the company will tions with us in CHI Plc. determine the final winners in the variants of Flexi Gold, Flexi Silver It entered its 7th edition in 2017 and Flexi Bronze with agreed in- continue to sustain a robust top line and has since been attracting signifi- Stakeholders who were in attend- three categories. and bottom line while maintain- ance including the vice chancellor The Annual CHI Plc Essay Com- sured value up to N1 million for a cant interest with participation from premium of N40,000; N500,000, ing a steady growth profile in her institutions of higher learning spread Imo State University commended petition for Tertiary Institutions has profitability margin and return on CHI for the initiative, while urging since carved a niche for itself, and for a premium of N25,000 and across the country, with winners in N100,000 for a premium of N15,000 investments. the past emerging from University of other institutions in the industry students of Insurance and Actually On his achievement as the MD/ to emulate the as this will increase Science now increasingly look for- respectively. Lagos, University of Uyo, The Poly- The product also covers third CEO of the company in the past technic Ibadan, Lagos State Poly- the bonding and interrelationship ward to participating in it. It is now two years, he said he has been able between the universities and the an integral part of the company’s party property damage up to N2 technic and the second prize winner million in all the three variants. to take the company from a loss receiving awards today coming from corporate world. Corporate Social Responsibility position to profitability even as he Richard Borokini, director gen- projects to which we shall continue Speaking also on Flexi Home the Imo state university. policy, Opadokun said the product promised to sustain the momen- Topic for the 2017 edition – ‘The eral, Chartered Insurance Institute to commit resources to annually. tum going forward. NAICOM/ADV/CA/2018/1955 Wednesday 10 October 2018 C002D5556 BUSINESS DAY 25 Pension Today In Association with Leaving a secured tomorrow…write a ‘WILL’

ccidents, you die. It is simply a writ- personal possessions and misfortunes, ten declaration or state- money, as well as his pen- natural disas- ment by a person (the sions. ters and other “Testator”) naming one Getting help from a unfortunate or more persons, human solicitor eventsA happen every day or entity, as beneficiaries When someone dies and no one is completely of his/her property after without leaving a Will, shielded from these inci- death. Another person or dealing with their estate dents. Since we cannot tell persons are also named can be complicated. It if and when such incidents in the Will as executors of can also take a long time will happen, wisdom dic- the Estate with property - months or even years in tates we make plans for to be distributed after the some very complex cases. such eventualities. Testator’s death. If matters are complex According to industry Writing a Will can be or you feel you need help, statistics, only 1 percent as simple as typing out it’s a good idea to con- of learned Nigerians have how you want your assets sult a solicitor as soon as a WILL in place, which to be transferred to loved possible. It’s advisable to means that many of us ones or charitable organi- show them all the informa- would be creating prob- zations after your death. tion and documentation lem to our families and If you don’t have a Will you have about the de- dependants should the when you die, your estate ceased person’s property, unexpected occur today. will be handled in probate, belongings and financial Make the plan today, and your property could affairs. In the meantime, it be responsible by writing a be distributed differently may be a good idea to put WILL or set up a Trust so it realization that there is life of the Will or the personal The law states than what you would like. small valuable items away is easier to know who your and there is also death, the law of the deceased em- It may help to get legal for safekeeping. Usually a beneficiary is(are). Note CPS has taken care of the ployee, as the case may be. that where an advice when writing a Will, close relative like a spouse, that there is a difference contributor, directly or In another case where particularly when it comes child or parent will have between your Next-of-Kin indirectly, should either an employee is declared employee dies, to understanding all the the legal right to sort out (NOK) and your benefi- of the two happen as long missing and if is not found his entitlements rules of the estate disposi- the estate of the person ciary (ies), experts said. as the person has made his within a period of one tion process. who has died. Many people including contribution through his year from the date he was under the life A Will must be writ- Letters of Administra- pension contributors keep employer. declared missing, a board insurance policy ten in sound judgment tion asking what age and at The law states that of inquiry is set up by the and mental capacity to In order to be able to what point should some- where an employee dies, National Pension Com- maintained in be valid; The document administer someone’s es- body write a will. This arti- his entitlements under the mission (PenCom), which this Act shall must clearly state that it tate you normally need cle is intended to open the life insurance policy main- concludes that it is reason- is your Will. An executor to apply to the Probate eyes of many who think tained in this Act shall be able to presume that he be paid by an of your will, who ensures Registry for a Letters of ‘WILL’ is for old people, paid by an underwriter to has died, and in this case, underwriter your estate is distributed Administration. You can rich people or those near- the named beneficiary. the provisions of this sec- according to your wishes, ask your solicitor to help ing retirement. That, upon receipt of tion shall apply. to the named must be named; It is not you with applying for a In simple terms, it is for a valid Will admitted to While this law is there necessary to notarize or grant or you can make a everybody as long as you probate or a Letter of Ad- to enhance the welfare of beneficiary. record your Will, but these personal application. have asset or investment ministration, confirming the contributor, there are can safeguard against any On receipt of the grant that you could transfer to a the beneficiaries under a number of challenges claims that your Will is you become the ‘admin- beneficiary or beneficiar- the estate of the deceased which beneficiaries would invalid and to be valid, istrator’ of the estate. The ies. Specifically, if you are employee, the Pension have to contend with if you must sign a Will in the grant provides proof to contributing to pensions, Fund Administrator(PFA) there was no prior effort presence of at least two banks, building societies this advice is for you. shall, with the approval of to address them before it important that a pension witnesses. and your pension fund ad- The Nigeria Contrib- the Commission, release death occurs. This is the contributor should pro- What to do if there is ministrator that you have utory Pension Scheme the amount standing in issue of not having a Will cure ‘Will’ for manage- no Will authority to access and (CPS) introduced by the the retirement savings and dying interstate. ment of his or her estate If someone dies with- distribute funds that were Pension Reform Act rec- account of the decease to One of the challenges should the unexpected out making a Will, they are held in the deceased’s ognizes the importance of the personal representa- which families of the de- happen. said to have died ‘intestate’. name. The overall process the contributor, his contri- tive of the deceased or to ceased pension contribu- A Will is the most prac- If this happens, the law sets is often referred to as ‘ob- bution and what happens any other person as may tor faces after the death of tical first step in estate out who should deal with taining probate’, though to him while in employ- be directed by a court of their loved one is the pro- planning, and makes clear the deceased’s affairs and technically this term ap- ment. This is both alive competent jurisdiction, in cess of claiming his pen- how you want your prop- who should inherit their plies where there was a and in death. With this accordance with the terms sion entitlements, making erty to be distributed after estate including property, Will.

This section is created to increase awarness and deepen knowledge about RC634453 the contributory Diamond Pension Fund Custodian Limited pension scheme. 1A, Tiamiyu Savage Street, Victoria Island, Lagos State. If you have enquiries Tel: 01-4613753, 2713680, 2713954 or contributions, Fax: 01-2713955 send to this e-mail: Email: [email protected] [email protected] Website: www.diamondpfc.com 26 BUSINESS DAY C002D5556 Wednesday 10 October 2018

E-mail: [email protected] ‘We are positioned to play big in the nation’s insurance industry’ Nigerian insurance industry is going through a transformation, with major players strategising to take prime positions for growth. Polycarp Didam, managing director/CEO, Veritas Kapital Assurance Plc in this interview with Modestus Anaesoronye unveils his plans, direction of the company and what the year holds for shareholders. Excerpt:

ou were recently ap- customer service unit. Also, our through digitization. pointed the Managing customer interactive lines have Director/CEO of Veri- been commissioned to ensure our This is just one of the numerous tas Kapital Assurance, customers are able to reach us. strategies being implemented to what is your vision for Special Risk: We also set up our reinforce and grow our company’s theY company? special risk team to allow them market share. It has been a privilege to be focus on needs of client operating How do you plan to close the tasked with overseeing the future within sectors of Oil & Gas, Aviation year in terms of business perfor- of our company. As we all know, and Engineering. mance, and what should your the Nigerian insurance industry The insurance industry is un- shareholders be expecting? is going through renewed efforts dergoing through a transforma- Our published half year result to recapitalize the sector and en- tion now, how prepared is Veritas shows marked improvement com- sure companies conduct business Kapital Assurance to key into the pared to prior year performance. within their ability. new era? Our gross premium written grew To this end, I envision Veritas I am a firm believer that every by 30 percent as at June 2018 while Kapital Assurance becoming the challenge provides an opportunity, there were improvements on other pacesetter in several aspects of the if one only has the strength of char- operating indices also. We can as- industry; especially in the areas acter to see it. sure our stakeholders are that we of underwriting excellence and Our company welcomes the are well positioned to surpass prior expertise, prompt claims process- introduction of the NAICOM Tier year performance. ing and payment as well as astute Based Minimum Solvency Capital Why should somebody invest use of cutting edge information model as we see this as an oppor- or retain their investment in Veri- technology for the benefit of our tunity to consolidate on past efforts tas Kapital Assurance Plc? customers. while we lay the foundation for Our financial indicators are im- Furthermore, we intend to future footprint on the insurance proving. There is steady growth in become a composite insurance sector. As reiterated during the our top line business as premium company before the end of our just concluded AGM, we are well continues to inch upwards. Same current strategy cycle which ends positioned to remain a key player applies to investment income as in 2021. All these are in line with underwriting risk in all sectors. we seek to diversify our revenue our vision statement of becoming Polycarp Didam, MD, Veritas Kapital Assurance Hence, we would operate in Tier 1 sources. the top insurer of choice in Africa and we have communicated this to Operationally, we have imple- What major changes took internal processes for efficient within our I.T portfolio, these our regulators. mented a comprehensive cutting- place in the last one year since service delivery. Turnaround time include installation and configu- Retail market is the way to go edge cloud based application that coming on board of the new man- for core transactions has reduced ration of I.T help desk, Redesign in deepening penetration, what enables us to speed-up our entire agement? and we continue to work on this of e-business portal & ongoing is your plan in this area? process viz-a-viz risk management, In the last one year, our focus to achieve efficiency above current implementation of core business In this regard, and as an underwriting, excellent customer has been on transformation. This industry levels software aspect of our revised corpo- service as well as a guarantee of has been all encompassing touch- Product Enhancement: We have Delivery Channel: Expansion rate strategy, we have recently prompt claims settlement to our ing on all areas; People, Service continued to work on our current of our service delivery channel set up our retail team. The clients. Delivery, Product Enhancement, product bouquets to create unique through introduction of retails team is responsible for com- We have invested in the right Information Technology, Cus- value for our customers. E.g, Recent sales team focused on driving municating our product value people from right from board ap- tomer Service etc. review of comprehensive motor insurance penetration for the eve- proposition within the retail pointments to every individual staff People: Scaled human capital policy where we included addi- ryday man space. Also, we are investing within the company. capacity with recruitment of ex- tional features as well as reward for Customer Interaction: As part of in technology to provide sup- To reiterate our company is perienced personnel customer loyalty. effort to get closer to our customer port to the retail team as the strongly positioned to generate Service Delivery: Streamlined Information Technology: We and better understand their needs, long term plan of delivering sustainable value to its investors in continue to develop capacities we have set up a fully functional convenient services to our the long run. customer can only be achieved IEI Anchor Pension takes on Hepatitis in CSR

he Corporate Ser- Nigeria, especially in re- tions of repute such as vice Unit of IEI- cent times. Tagged as one the Global Burden of Dis- as well as public enlight- Anchor Pensions of the “silent killers”, with ease, a non-governmental enment in all there is to has stated that , a record of about 5 mil- body as well as the World know about this disease. Tas part of activities lined lion deaths annually by a Health Organization. The For our Customer Service up for the global Cus- February 2018 report, Ni- situation is made even Week we will be engaging tomer Service Week, the geria had one of the high- more worrisome consid- our customers in health Management of IEI An- est prevalence of hepatitis ering the limited num- lectures as well as checks chor Pensions has chosen b infections in the world ber of health facilities as to ascertain their health a very modest way to give in 2016. well as experts who have status in relation to this back to the society; which It is quite dishearten- to contend with the large dreaded ailment. We re- alize that this silent killer the company has gained ing to note that while number of patients, con- Glory Etaduovie, MD, Anchor IEI Pension so much from. deaths attributed to other sidering the population can only make incursions The Corporate Social diseases of great public and size of our country. into a nation’s health sys- Responsibility (CSR) drive concern are on the de- Patients who detect tem where ignorance is of the organization has cline, the same cannot be these infections early ingrained. benefits it presents to the seen the development of said about viral hepatitis enough however have a As the major stake hold- nation. a plan of action to address which seems to witness greater chance of survival ers in our operations and Our doors are wide the issue of Hepatitis, a steady rise in fatalities which is the thrust of IEI success story, we see our open to our customers as which has become a major despite advances made in Anchor Pensions posi- customers as partners in we would love nothing public health concern. It prevention and treatment. tion in this fight. We want the growth and develop- more than a healthy soci- is responsible for so much These surveys have been to champion a course of ment of the pension in- ety which surely is a hap- needless loss of lives in carried out by organiza- periodic health checks dustry and the economic py and successful one.

Glory Etaduovie, MD, IEI Anchor Pensions Wednesday 10 October 2018 C002D5556 BUSINESS DAY 27 Tax Issues Taxing multinational enterprises: Tax Inspectors Without Borders makes significant progress

IHEANYI NWACHUKWU Shehu Usman velopment (OECD) and the United Ladan, president and Nations Development Programme n innovative international chairman, Coun- (UNDP), is boosting domestic rev- co-operation initiative cil Association of enue mobilisation by improving tax that deploys qualified ex- National Accountants auditing and tightening compliance perts in developing coun- of Nigeria; Samuel efforts across Africa, Asia, Europe, tries to strengthen their Nzekwe, past presi- Latin America and the Caribbean. Aability to effectively tax multinational dent, Association of TIWB has fully completed 10 pro- National Accountants enterprises (MNE) has achieved sig- grammes, while 34 programmes are nificant milestones over the past year. of Nigeria; Elemanya Ebilah, chairman, ongoing and a further 20 are in the This is according to a new annual pipeline. TIWB is on track to meet its report from Tax Inspectors Without Professional Women Accountants of Nigeria goal of delivering 100 deployments Borders (TIWB) from May 2017 to (PROWAN), and Fola- of tax auditor experts to developing April 2018. sade Adesoye, head of countries by 2020. Increased tax revenues directly at- service, Lagos State, TIWB programmes are driven by tributable to TIWB programmes and at the recently held the needs of host administrations TIWB-style support as of April 2018 2018 annual semi- and cover a range of technical is- are estimated at $414 million, accord- nar of Professional sues and industry sectors. Current ing to the report, which documents Women Accountants of programmes specialise in risk-based activities over the second full year of Nigeria in Association audit case selection, audit processes operations under the OECD/UNDP of National Account- and negotiation of advance pricing partnership arrangements. ants of Nigeria. arrangements. Revenues raised have been about Audits under TIWB programmes 100 times programme costs, meaning mainly deal with different issues of every US dollar spent on TIWB brings transfer pricing and international in $100 in additional tax revenues. and while the immediate impact on that puts developing countries in the in handling complex international taxation, including permanent estab- Eleven countries have deployed revenues is important, we are even driver’s seat for better using taxation to transactions. lishment, validation of management their serving tax officials to provide more excited about the long-term raise the revenues so badly needed for Its programmes have helped im- and service fees and the valuation of hands-on, learning-by-doing as- positive outcomes,” said James Karan- economic and social development,” prove trust and co-operation with intellectual property. sistance to auditors in developing ja, TIWB head of secretariat. Karanja said. taxpayers. It has also contributed to Audits cover a cross-section of countries. New South-South op- “The transfer of skills now under- The report shows that TIWB’s improving political-level understand- industry sectors including agricul- portunities are being identified, with way is driving organisational change “learning by doing” approach has led ing of transfer pricing’s importance, ture, construction, financial services, India, Kenya, Nigeria and South Africa in tax authorities worldwide, which to increased confidence of their tax among others. information technology and commu- among those now offering expertise. will prompt much great taxpayer auditors, who are now able to better Tax Inspectors Without Borders, nications, hospitality, manufacturing “Tax Inspectors Without Borders is compliance in the future. We are de- understand case selection and man- a joint initiative of the Organisation and mining. delivering excellent value for money, veloping a model for systemic change agement of MNE audits, particularly for Economic Co-operation and De- CITN issues position paper on freezing of taxpayers’ accounts, rights of taxpayers’ appeal The Chartered Institute of Taxation of Nigeria (CITN) has issued a position paper on freezing of taxpayers’ accounts and rights of taxpayers’ appeal. Below is the Institute’s position as signed by Cyril Ikemefuna Ede, its president/chairman of council.

Preamble be unfrozen. entities’ account between the bank fords either the FIRS or the aggrieved same approach, and may therefore n recent times, the Nigerian gov- Is Confidentiality in Banking and the account holder. Despite the taxpayer to appeal to the Tax Appeal end up killing the goose that lays the ernment, in a quest to diversify the Transactions Over? position above, the FIRS under its Tribunal and this can continue until golden egg. Taxpayers, on the other Ieconomy and increase tax revenue Generally, banks have a legal duty domestic Establishment Act and the the Supreme Court. hand, are encouraged to embrace the has introduced numerous measures to protect the confidentiality of exist- CITA is empowered to access any •Implications available self-assessment process, file to widen the tax base at the domestic ing and former customers, but four banking information voluntarily given The bold step taken by the FIRS to appropriate tax returns and meet their level and internationally. The Fed- broad situations have been identified or on request as provided in section freeze the relevant accounts suggests respective obligations as provided eral Inland Revenue Service (FIRS) in in which a bank can lawfully disclose 28(i) of the FIRS (Establishment) Act. that our tax system is still weak and under the law. particular has been developing strate- confidential information: When the Powers to Appoint Agents for needs to be strengthened as: About the Institute gies and approaches to improve the law compels it, where it has a public Collection of Taxes •There are a number of Taxpay- The Chartered Institute of Taxation non –oil tax revenue collection and duty to, when a bank must disclose The FIRS cited the provisions of ers without Taxpayer Identification of Nigeria (CITN) was established even recovery processes, in order to information to protect its interests and Section 31(Powers of Substitution) of Numbers, in 1982 and Chartered by Act No. 76 improve the revenue yield. when a customer agrees. the Federal Inland Revenue Service •Some have TINs and have not of 1992 to regulate Tax Practice and Some of the measures include In a number of countries, banks (Establishment) Act, Cap. F 36 Laws of filed any tax returns as taxpayers, and Administration in the country. It is Auto-VAT Collect initiative, Waiver of can also be required to give informa- Federation of Nigeria (LFN), as well as •Such taxpayers failed to take ad- the only professional body in Nigeria Penalty and Interest and Automation tion to the Tax Authority as it is not Section 49 of the Companies Income vantage of the VAIDS. vested with power to regulate and of tax collection through Informa- only in Nigeria also in other coun- Tax Act (CITA), Cap. C 21 LFN 2004 Another implication is that, while control the practice of taxation in all its tion Technology. One of Nigeria’s tries e.g. In New Zealand the Inland (as amended) in first appointing the the FIRS is well within its remit to ramifications to the exclusion of any latest strategy was the just concluded Revenue Department is authorized relevant commercial Banks as agents invoke this power of substitution other professional body or Institute Voluntary Assets and Income Decla- under the Tax Administration Act of collection and directing such banks and other powers under the Act, in Nigeria. ration Scheme (VAIDS) which gener- 1994 to do so. to help recover the amount deemed as collection of the taxes would not be The Chartered Institute of Taxation ated significant revenue in billions of Furthermore, it seems globally tax liabilities from the tax defaulters. achieved by fiat but through compli- of Nigeria has over the years always naira and enlarged taxpayers’ base. Bank secrecy is over. In August Section 50 of Personal Income Tax ance with all the appeal processes. been an advocate for reforms in the The VAIDS was jointly handled by 2017, FIRS signed two major multi- Act Cap P 8 LFN 2004 (as amended), Meanwhile, it also follows that Nigerian tax system. The Institute was the FIRS and the States Internal Rev- lateral instruments one of which is under “Power to Appoint Agent” has while the banks may have moved part of the 2002/2003 Study Group on enue Service. Continuing with this the Common Reporting Standard a similar provision. swiftly, in contemplation of the pro- the Review of the Nigerian Tax System, stance, the FIRS is determined to go Multilateral Competent Authority Disputes and Appeals visions of section 34 of FIRSEA, which was inaugurated by the then after the bank accounts of defaulting Agreement (CRS MCAA). According Section 50 of CITA gives cover which considers any amount due, Federal Minister of Finance on 6th taxpayers who are raking in billions to Pascal Saint-Amans, Director of to persons who pay taxes due from by way of tax, as constituting a debt August, 2002. of Naira in Nigeria and are not paying the OECD’s Centre for Tax Policy and monies held on behalf of companies due to the Service, recoverable by a Further to the report of the Group, taxes. Through data-mining, FIRS has Administration (CTPA), the signing from whom taxes are due, by way of civil action brought by the Service, it a private-sector driven Working identified over six thousand seven of the agreements makes Nigeria the indemnification under the law. The is still expected that accounts of the Group was constituted in 2004 to hundred and seventy two (6,772) de- 71st jurisdiction to sign the MLI and provisions of that same section further respondent entities are unfrozen, if review the recommendations of the faulting billionaire taxpayers through the 94th jurisdiction to join the CRS proceed to state that disputes and for any reason they did so, as soon as 2002/2003 Study Group which invari- records obtained from the banks of MCAA. In effect, the agreements appeals procedure would apply as it is established that the taxpayer has ably gave birth to eight tax reform bills, such taxpayers. This is in FIRS bid to empower Nigeria to automatically though the Customer/Taxpayer had engaged the relevant dispute and ap- some of which had been passed into correctly ascertain their complaint exchange tax and financial informa- been issued an assessment, in the or- peal mechanism. law while the remaining are still go- status and widen the tax net. tion among other 102 tax jurisdictions dinary course of transacting with the Conclusion ing through the legislative processes Consequently, FIRS notified the and enhance Nigeria’s ability and tax authorities. Such provisions have The FIRS should be commended at the National Assembly. It also led banks of affected taxpayers of this those of the other countries to contain implications for the tax administrator for seeking out taxpayers that were to the formulation of the National development and in some instances, tax avoidance and evasion as well as as well as the taxpayer. hitherto non-compliant. In doing Tax Policy document, which was had ordered the banks, who are share financial data. As at 7th August, Disputes and appeal procedures so, however, they must endeavour launched by the Federal Government deposit takers to freeze the bank ac- 2018, 103 countries have signed to the are clearly spelt out in Section 59 and to stay within the ambits of the laws. in April of 2012. The revised National counts of alleged defaulters to dem- CRS/MCAA. the Fifth Schedule of The FIRS (Es- This is very important since based Tax Policy document, 2016, has since onstrate the level of her seriousness. The Banking and Other Financial tablishment) Act 2007. For instance, on similar provisions in the Personal been approved by the Federal Execu- The affected taxpayers had been given Institutions Act, Laws of Federation, aggrieved tax payers can object to Income Tax Act, it is not impossible tive Council and the Institute was part defined timelines to comply with the 2004 guarantees the confidentiality the assessments within 30 days of that 36 different tax authorities may of the Committee that performed the Demand Notices for their accounts to of the transaction flows in various receipt. The appeal process further af- start to run after taxpayers, using the assignment. 28 BUSINESS DAY C002D5556 Wednesday 10 October 2018 In Association with Rewarding and renewing Union Bank introduces innovative local letter of credit commitment to banks’ customers s part of efforts to be able to identify and to provide tai- exploit opportunities for Stories by HOPE MOSES-ASHIKE lored services growth, following the to different Nigeria’s recent emer- sectionsA of its customer gence from economic ast week, Ni- base, Union Bank re- recession. gerian banks cently organised a trade Speaking at the event, joined its coun- finance conference for Okonkwo said; terparts across its corporate customers “The launch of our the world to in Lagos. local letter of credit to- celebrateL this year’s cus- The focus of the event day is in line with our tomer service week with was to equip C-suite Exec- commitment to provide a reward and renewed utives and decision mak- innovative and tailored commitment to their cus- ers from large corporate solutions that meet the tomers. organisations with market unique needs of our Customer Service insights and opportuni- corporate customers. Week is an international ties they can leverage to At Union Bank, we re- celebration of the impor- drive growth and greater main focused on helping tance of customer service operational efficiency for our customers identify and of the people who their businesses. and leverage sustain- serve and support cus- The event was also an able ways to build their tomers on a daily basis. opportunity for Union businesses as Nigeria In 1992 the U.S. Congress Bank to unveil its Local navigates through the proclaimed Customer Letter of Credit, a variant economic recovery pro- Service Week a nation- of the standard letter of cess. ” ally recognized event, credit adapted for use in Also speaking at the celebrated annually dur- ted to excellence in prod- on Monday and ended ficers and rewarded for domestic trade – a first event, Ozeomena Nnaji, ing the first full week in ucts and services delivery on Friday last week, to consistently banking with in the Nigerian banking deputy director, trade October. at all its touch points. reward its customers. was FCMB for over 26 years. sector. and exchange at the Consequently, Ni- “This is another mo- visited by the bank of- Sanusi Umar, the The newly introduced Central Bank of Nigeria gerian deposit money ment to celebrate you. We bank’s oldest customer local letter of credit (CBN) said; “We applaud banks keyed into this will always celebrate you. (based in Bauchi State), seamlessly bridges the the innovation of Union event to design various You are the reason why Umar said, “FCMB has payment gap between Bank with the introduc- programmes, aimed at we are in business. Excel- been excellent and has local buyers and sup- tion of the Local Letter addressing the needs of lent customer service is a impressed me in vari- pliers, with Union Bank of Credit which is one their customers. vital part of our promise You are the ous aspects, especially assuming the liability way of deepening the Flagging off the 2018 as a bank. For us, this is prompt over-the-counter for payment to the seller. relationship with cus- Customer Service Week more than jZust providing reason why cheque payments, quick This positions the buyer tomers and promoting at the Ikorodu branch on answers. It’s helping cus- online transfers, efficient more favorably, provid- their businesses. This Tuesday, Patrick Akin- tomers even when they we are in alternate channels and ing them with greater initiative will also help wuntan, managing di- don’t know they need flexibility of the bank’s leverage in commercial the Bank’s customers rector, Ecobank Nigeria help. It’s teaching them business. products”, Umar said, negotiations. Also, with save costs and stay in restated the bank’s com- how to do more with our adding that “I am proud the local letter of credit, business. We encourage mitment to excellent ser- products. It starts with a Excellent to say that my wife, four customers are able to other Banks to follow suit vice delivery to meet the smile and a friendly word, children and five other obtain preferential con- in providing innovative needs and aspirations of and finishes with sharing customer relatives have accounts ditions like extended solutions to help busi- its customers at all times. our expertise, even when with FCMB and they are payment days, thereby nesses grow.” Akinwuntan, saw the it has nothing at all to do service is a very satisfied with the reducing working capi- Speakers at the event customer week as a huge with our products. We are bank.” tal costs. included Chidi IIeka, opportunity to say thank committed to bringing vital part of Oluwakayode Adigun, Highlighting the criti- head of transaction you and to celebrate cus- you superior customer senior vice president and cal role of trade to the banking at Union Bank tomers of the bank. He service, whenever, wher- our promise divisional head, service growth of the economy, and Sola Olubi, head, assured that the bank will ever, and however you management and tech- Emeka Okonkwo, head corporate banking group remain committed to ex- need it. Thank you for as a bank nology, FCMB, said the of corporate and invest- specialized unit who sat cellence in products and choosing Ecobank”, he bank would continue to ment banking at Union on an informative panel services delivery at all its noted. focus on initiatives that Bank explained that the to discuss ways to drive touch points. Also, FCMB, keyed into would meet the needs forum was organised at business growth and op- He assured that the the customers service and aspirations of its cus- this period when corpo- erational efficiency with bank will remain commit- week, which commenced tomers. rate organisations need trade finance structures. Wednesday 10 October 2018 C002D5556 BUSINESS DAY 29

NB, FRSC flags-off year-end New A6 renews rivalry on E-Class, 5-Series safety campaign n a move aimed at creating safety …Flaunts styling language, more tech awareness on Nigerian roads in Iorder to minimise the dangers of drink driving, the Nigerian Breweries plc in collaboration with the Federal Stories by MIKE OCHONMA Road Safety Corps (FRSC) has kicked off this year’s edition of the Don’t ollowing in the path of Drink and Drive campaign among the recently redesigned drivers. range-topping A8 and At the 11th edition of the campaign the sporty A7 hatchback, held at the Nigerian Breweries head- the new mid-size Audi quarters, Iganmu, Lagos last week FA6 sedan is based on the MLB Evo Thursday, Jordi Borrut Bel, managing architecture and adopts the brand’s director and chief executive officer latest styling themes, which are of the brewery giant, said, the ‘Don’t intended to move beyond the boxy Drink and Drive’ campaign is a Cor- and less appealing designs seen on porate Social Responsibility (CSR) the current A4 and Q7. initiative designed to improve safety on the roads by discouraging the habit The proportions and shapes of of drink driving especially among the A6 have been preserved, includ- commercial drivers, motorcycle riders ing the arched roofline that has and private car owners. become an Audi signature, while He said the campaign involves the new model is only fractionally enlightenment rallies for drivers in bigger than its predecessor (0.3 inch various cities, deployment of print and longer, 0.5 inch wider and 0.1 inch electronic media messages, fliers, free taller). medical checks such as blood pres- The front end has become more sure and eye tests for drivers during angular and is a little more com- essentially identical to what we’ve sions, depending on the market: a today. the rallies. plex than even the new A7 and A8 seen in the A7 and distinguishing standard steel-spring suspension, An S6 with a stronger twin-turbo Borrut Bel explained that since the designs. In back, the haunches are the A6’s interior from its competi- a lowered Sport version, another V-6 will follow later. All A6 models start of the initiative, the company has accentuated with a crisp fold remi- tors by the generous use of glass and with adaptive dampers, and an air- will have electrically assisted pow- held enlightenment rallies in motor niscent of the original Audi Quattro, aluminum. spring setup also fitted with adap- ertrains; they can recuperate kinetic parks and other locations in 42 cities while the wide taillights feature a An optional ambient-lighting tive damping. energy under braking and are fit- and towns across the country. futuristic, sculptural look. system offers a choice of 30 colors. While Europe will see a plethora ted with an ultra-quiet belt-driven “In the process, we have directly The horizontal character line on The available four-spoke steering of diesel offerings, the U.S. will have starter/generator to facilitate stop/ engaged over 20,000 drivers, other the flanks curves inward and drops wheel seems more fitting for a a choice between two gasoline start technology. road users and a higher number of at both ends, which makes the car premium sedan than the pseudo- engines: a turbocharged 2.0-liter In Europe, the new A6 sedan people through media messages. look wide when viewed from an sporty three-spoke wheel. The inline-four producing around 250 launches in early summer; we There will be mega rallies this year in Eket, Akwa Ibom state, Ojota in Lagos angle and highlights the long-hood/ materials look extremely modern horsepower and a turbocharged expect it to come out in the United throughout, and the head-up dis- 3.0-liter V-6 good for 335 horses. States in late 2018 as a 2019 model. and Minna in Niger state.” he stated. short-deck theme when seen in According to him, some behav- profile. Wheels are sized from 17 to play is far better integrated than on The latter pairs with Audi’s S With this new sedan, competition ioural changes have been recorded 21 inches; we expect 18s will be the the current model. tronic seven-speed dual-clutch has gotten a lot more interest- among drivers from evaluations con- smallest offered in the United States. The A6’s pretty surface hides automatic transmission, which also ing again: Next to the luxurious ducted by research experts. According to Audi, there’s more cutting-edge technology. The MLB serves the only four-cylinder offered Mercedes-Benz E-class and the Boboye Oyeyemi, corps marshall rear legroom, and head and shoul- Evo architecture is designed for at launch in Europe, a turbo-diesel. somewhat conservative BMW 5-se- of the FRSC, commended Nigerian der room are increased in both front- or all-wheel drive and offers Audi may employ a conventional ries, the Audi A6 is once again the Breweries for the laudable campaign front and rear. More impressive is optional all-wheel steering. eight-speed automatic with the coolly elegant, technology-driven which he said is worth emulating by the techno-futuristic cabin design, There are four different suspen- 2.0-liter gasoline four, as it does alternative. other organisations. He said the campaign’s impact Nigeria Limited will continue to try attention by regularly maintaining on road users, especially commercial Elizade forum engages Toyota drivers, customers its best to reason from the customer their vehicles as and when due. drivers, has been high, since the Corps point of view and that is why, the com- The objective of hosting this year’s signed a memorandum of under- leet and individual customers of owned Nigerian company operating pany is customer-centric, adding that, Driver Education programme tagged standing with the leading brewing Elizade Nigeria Limited, front- with world class outlook, its corporate it is desirous of managing customers’ ‘’know your vehicles according to company. Fline franchisees of the Toyota survival can only be attributed to God vehicles at a considerably affordable the chief operating officer of Elizade He noted that, in order to promote range of vehicles gathered in Lagos and its loyal customers, given the very cost. He called on fleet operators of Nigeria Limited is to among other responsible drinking, the FRSC has ac- last week for the company’s annual harsh operating environment. Toyota model of vehicles to pay more things create a forum where both quired digital alcoylser to test the level customers forum; which has become According to the COO, at a time the dealership could of alcohol in drivers. “If the alcoholic a yearly programme used to gauge the when a lot of companies are strug- share its knowledge content exceeds 0.05mm in a driver, feeling of its clientele in the course of gling to remins afloat, Elizade Nigeria about the its vehicles then it is considered abnormal and using the Toyota vehicles bought from Limited has made a great investment with the customers, a not good for driving,” Oyeyemi said. the company. to sustain its business over the years platform for better Meanwhile, for the purposes of During this year’s gathering in- through among which is its renewed understanding be- wider reach to the motoring public side the Academy Inn, Ikeja, Lagos efforts at making its customers happy. tween both parties, a across the country, the mega rallies for which attracted representatives of He stated that, the depressed state forum for mutual ed- this year’s edition has been expanded the Federal Roads Safety Commis- of the national economy, which has ucation of each other to include the National Union of Road sion (FRSC), the Lagos State Traffic culminated in the forced devaluation and a gathering that Transport Workers (NURTW), Road Management Authority (LASTMA), of the naira by over 40 percent in the would elicit a process Transport Employers Association the Vehicle Inspection Service and last few months’ gas further adversely, for jointly providing of Nigeria (RTEAN), Tanker Drivers, other automotive and allied services affected the various sectors of the Luxury Bus Drivers, Keke and Okada Participants at the just concluded annual Drivers Educa- solutions to problems providers, James Olubanwo, chief economy in terms of available funds that are peculiar to the Riders, Non-Governmental Organisa- operating officer, Elizade Nigeria for business operations. tion Programme organised by Elizade Nigeria Limited in Lagos on Thursday October 4, 2018. operating environ- tions and members of the National Limited declared that, as a wholly Olubanwo stated that Elizade ment. Youth Service Corps, among others. 32 BUSINESS DAY C002D5556 Wednesday 10 October 2018 odern MTRAVEL Transcorp Hilton Abuja emerges The impact of technology on travel industry new study has revealed making travel experiences Africa’s top business hotel the impact of technol- more alluring and exciting. Aogy on travel intention, The research, centered selection and timing. If you around a survey of more ….As continent’s hospitality giants get honoured by WTA are one of the hundreds of than 2,000 leisure travelers millions people worldwide by Pollfish this summer, Stories by MIKE OCHONMA who will fly this year, your yielded some notable sta- travel choices and selections tistics. Nearly half of those [email protected] are being influenced by the polled say the Internet and connected economy. device connectivity makes igeria’s hospitality sec- Whether you are a smart travel better. tor is gaining traction and well-informed travel A further 42 percent be- Nas Transcorp Hilton planner, a “relaxed nomad” lieve technology innova- Abuja has emerged as Africa’s ready to roam without stress tions and advancements Leading Business Hotel along- or strife, or a deal-seeker across all modes of travel side other winners that was an- on a budget, technology is have improved the experi- nounced during a recent red- transforming your travel ex- ence, and 38 percent say carpet reception held at the perience, findings show, in a these tech advancements just concluded World Travel way that makes it even more have helped them find Awards (WTA) Africa & Indian accessible and frequent. deals, discounts and desti- Ocean Gala Ceremony 2018 at According to new re- nations more easily. the Durban International Con- search – entitled “What’s More than 51 percent of vention Centre, South Africa. Changing the Way You travelers surveyed say great The elite of the travel indus- Travel Today” undertaken deals and discounts are try assembled for the World by the CMO Council’s Geo- what prompts them to make Travel Awards Africa & Indian Branding Center and AIG a travel booking. Easier, do- Ocean Gala Ceremony 2018 at Travel, today’s diverse lei- it-yourself travel planning the Durban International Con- from across Africa and the Airport. is a series of regional events to sure travelers are smarter, is also a major factor for 32 vention Centre was put togeth- Indian Ocean attended the Meanwhile in the Indian acknowledge the world’s out- more informed and better percent of travelers. er to find out who among the ceremony at the Durban ICC, Ocean, Air Mauritius claimed a standing travel brands. prepared than ever before. Other influences are contenders would be crowned the state-of-the-art events and lion’s share of the honours, win- Events on the tour include Beliefs, values and inter- referrals from family and best of the best. entertainment venue, which ning Indian Ocean’s Leading Ras al Khaimah (United Arab ests are influencing where, friends (29 percent), excit- The finest travel brands in was opened by the late Nelson Airline, Indian Ocean’s Leading Emirates), Athens (Greece), how and why people travel. ing images or video (21 per- Africa and the Indian Ocean Mandela in 1997. Airline – Business Class, Indian Hong Kong, Guayaquil (Ecua- Technology and service cent), and interesting stories was unveiled at a star-studded Graham Cooke, founder, Ocean’s Leading Airline Brand, dor) and Montego Bay (Jamaica). innovations are making it or articles (21 percent). gala ceremony in Durban, World Travel Awards, said: and Indian Ocean’s Airport The regional winners will easier and cheaper to dis- “We’re in the thick of a South Africa. “The Durban ICC has rein- Lounge (The Amédée Maingard progress to the Grand Final cover, reach and enjoy travel monstrous growth in glob- Durban, which is enjoy- forced its standing as a world- Lounge @ Mauritius Interna- 2018, which is being hosted in destinations. al travel,” notes Donovan ing a renaissance thanks to a class entertainment venue on tional Airport). Lisbon (Portugal) on December While deals, specials and Neale-May, executive direc- series of landmark develop- what has been a magnificent Hospitality winners includ- 1st. Find a full list of winners on promotions are driving de- tor of the Chief Marketing ment projects, was named Af- evening of travel industry tri- ed Hilton Hotels & Resorts the official WTA website. sire and action, visually Officer (CMO) Council, rica’s Leading City Destination, umph, as well as a highlight of (Africa’s Leading Hotel Brand), WTA was established in enriched and personalized which operates the Geo- while Cape Town’s captivating our 25th anniversary. Saxon Hotel, Villas & Spa (Af- 1993 to acknowledge, reward digital content channels are Branding Center. mix of cultures, cuisines and “We have had the privilege rica’s Leading Boutique Hotel), and celebrate excellence landscapes was acknowledged of recognising the leading ho- Thanda Island, Tanzania (Af- across all sectors of the tour- as it picked up Africa’s Leading tels, airlines and hospitality pro- rica’s Leading Luxury Island), ism industry. Festival & Event Destination. viders from across Africa and Hilton Cabo Verde Sal Resort Today, the WTA brand is In the Indian Ocean catego- the Indian Ocean and my con- (Africa’s Leading New Resort), recognised globally as the ulti- ries, Mauritius cemented its gratulations to each of them’’. Hilton Durban (South Africa’s mate hallmark of quality, with reputation as the definitive ro- In the aviation sector, Ethio- Leading Business Hotel), Leg- winners setting the benchmark mantic island by being named pian Airlines was voted Africa’s end Golf Resort & Spa, South to which all others aspire. Indian Ocean’s Leading Hon- Leading Airline, while Kenya Africa (Africa’s Leading Sports Each year, it covers the eymoon Destination, while Airlines picked up Africa’s Resort), and Transcorp Hilton globe with a series of regional the paradise archipelago of the Leading Airline – Business Abuja (Africa’s Leading Busi- gala ceremonies staged to Maldives was heralded Indian Class and Africa’s Leading ness Hotel). recognise and celebrate indi- Ocean’s Leading Destination. Airline – Economy Class, while The ceremony marked the vidual and collective success Hundreds of the leading Africa’s Leading Airport went sixth leg of the World Travel within each key geographical travel industries figureheads to Cape Town International Awards Grand Tour 2018 which region. Checked baggage cost on US flights increases for first time S flights have be- can Airlines have not yet knock-on effect on travel- gun to increase increased their baggage lers. Utheir baggage costs costs, where it still costs JetBlue CEO Robin for the first time, mean- $25 per bag. However, most Hayes explained that this ing customers could now airlines charge for baggage means passing those costs face a much more expen- for passengers to take on onto low-fare passengers. sive journey when book- A number of airlines in ing their travel across the the UK already charge for country and Delta Airline is Delta became the checked baggage. the latest to announce the latest airline to EasyJet allows passen- changes, following United announce the same gers one free suitcase in the Airlines and JetBlue. fee changes also cabin yet charges for bags Flights travelling do- to be checked in. Airlines mestically between North such as Ryanair and Jet2 American and Central also charge for checked America are to be affected their flight. suitcases. by the new changes. This Southwest is the only However, low-cost air- will mean flights are to be- bag that is checked in will JetBlue. Today, Delta be- while a second checked airline in the US to current- lines are also introducing come much more expen- now cost passengers $40, came the latest airline to bag will cost $50, even as ly allow two free checked fees for cabin bags to be sive for passengers. up from $35. announce the same fee other airlines such as Spir- bags included in the ticket brought on-board. Ryanair Last August, JetBlue an- Earlier this month, Unit- changes also. it and Allegiant already fare. The increase has been is the latest to only allow nounced an increase for ed Airlines announced Air Canada and WestJet charge $30 for passengers attributed to rising fuel handbags the cabin with- the first checked baggage they had increased their have also increased their to check a bag in. costs which are up by 33 out a fee, unless purchasing from $25 to $30. A second baggage costs alongside first checked bag fee to $30 Airlines such as Ameri- per cent, which has had a a checked bag. Wednesday 10 October 2018 C002D5556 BUSINESS DAY 31

Local and global rail news as it breaks NRC moves to refurbish locomotive engines Britain to retain EU rail MIKE OCHONMA standards after Brexit ritain will continue he Nigerian Railway to abide by Europe- only affected by EU mem- Corporation (NRC) has Ban Union (EU) rail bership if they are referred Tplaced orders for pro- standards and protocols to in EU directives. Accord- curement of spare parts for after it leaves the EU, even ing to RSSB, this only affects the overhaul of locomotive in the event of a ‘no deal’ less than 20% of applicable engines that are awaiting Brexit, according to a state- standards. The application repairs in its fleet. ment issued by the Railway of European standards from Over the years, the aban- Safety and Standards Board CEN, CENELEC and ETSI, doned dilapidated old coach- (RSSB) last week. as well as international es and other materials have “Regardless of whether standards such as ISO, IEC continued to deface and the government strikes a and ITU, is unaffected by alter the beauty of the rail deal with the EU or not, Britain’s departure from line transport services by the the legal requirements de- the EU. corporation. signed to promote common The current govern- This announcement made by Lagos district man- safety and technical princi- ment’s policy is to maintain ager of the corporation Jerry ples across all EU railways regulatory alignment with Oche is in reaction to series will still need to be met by the EU for goods, which of complaints by passengers UK rail companies and sup- means there is unlikely to be of Lagos mass transit train pliers,” RSSB states. any short-term-divergence service over the frequent This means European from EU-derived require- unscheduled movement of Technical Specifications for ments such as TSIs. trains and brake down of Interoperability (TSIs) will “We have been work- few functional locomotive continue to apply during the ing very closely with the engines at regular intervals. transition period if Britain Department for Transport According to him, “We reaches a deal with the EU. over the past year to ensure have awarded contract for If no deal is reached, TSIs that requirements derived supply of spare parts and will be adapted as domestic from the EU framework are as you know spare parts are legislation, published as Na- legally fit for purpose for not what you can buy off the tional Technical Specifica- application in Britain with shelve. You place order and tion Notices by the Secretary workable solutions in place, wait for it to arrive” of State for Transport. even in a potential ‘no deal’ “Once the spare parts ar- The RSSB says Network scenario,” says RSSB stand- rive I can assure you that Rail and other main line ards director, Tom Lee. most of the engines awaiting repairs will be fixed and our Meanwhile the corpora- opment of railway as be- construction of Kafanchan- infrastructure firms, rail Tom Lee explained that service will be better”, he tion in the second quarter of gan in Nigeria with a 32km Bauchi rail line (238km) from freight operators, rolling the Railway Safety and declared. this year, made 584 trips with line of 1067mm gauge from 1958 to 1961 and the Bauchi- stock leasing companies Standards Board want to Michael Tochukwu-Nwo- its mass transit train (MTT) Iddo (Lagos) to Ota (Ogun). Maiduguri line (302km) in and suppliers should plan ensure that day one post- su, a regular train passenger service from Ijoko/Kajola to This was in 1901 extended to 1961–1964 that brought the to continue using relevant Brexit, the British stand- who spoke to our reporter Iddo/Apapa and vice-versa. Ibadan, a distance of 193km, total rail route of the Nigerian cross-industry standards ards framework is suitably on telephone regretted the On the other hand, the according to ‘Facts and Fig- railway network to 3,505km. after Britain’s formal with- aligned to the EU for im- neglect on the infrastructures Lagos district manager stated ures’, a handbook produced The Nigerian railway has drawal from the EU, which is mediate continuity and is belong to the NRC. further that, a total of 457,000 by the NRC in 2006. been seen as playing a pivotal due to take place on March legally robust, whilst pro- He however noted that passengers and 43 tons of “Subsequently, railway role in increasing the tempo 29 2019. viding for possible future something urgent needed to luggage and passenger were construction experienced of commercial activities in European standards are divergence, if beneficial’’. be done to give the a face-lift respectively carried during continual extension from the many towns along the by removing the abandoned the period under review. Ibadan to Jebba (295km) rail routes. passenger coaches, Nigeria For the Lagos to Kano 1901-1910; Kano–Baro It has also boosted inter- National Petroleum Cor- passenger and goods train (562km), 1907-1911; Jeb- ethnic marriages, acquisition poration (NNPC) wagons service, statistics shows ba–Minna (252km), 1909- of new dressing habits, food Ghana’s railways rehabilitation and others that were used to that seven passenger trains 1915; Port-Harcourt-Enugu and languages and caused transport both passengers, worked in six months while (243km), 1914-1916; and the emergence of mega to create 750 jobs petroleum products and coal 3,092 passengers and 276 Kafanchan-Jos (17 km), towns referred to as railway to other parts of the country, tons of goods were conveyed 1922–1927,” it states. towns such as Lagos, Umua- and to make the area condu- between January and June For 31 years, from 1927 hia, Zaria, Kano, Kafanchan, cive for the workers and for this year. to 1958, there was no rail- Jos, Enugu, Aba and Port security reasons. Historically, the devel- way development. It was the Harcourt. World’s first passenger railway plan found lans by railway pio- neer George Ste- of and budget for the Pphenson for the Stockton and Darlington world’s first passenger line line and became the he rehabilitation of from China and Germany to use locomotives have blueprint for the rail- the railway network have submitted proposals been found by an archive ways that followed. Tin the country would for the rehabilitation works. assistant. It shows Stephen- create employment oppor- Nii Lamptey Wilkinson, The 1822 notebook of son’s survey of fellow tunities for 750 youth in the the Ga West Municipal Chief the Stockton and Darling- engineer George Over- society. Executive, appealed to the ton Railway was found ton’s original 1821 line Joe Ghartey, Ghana’s chief and people of Ga West by John Page at Network and the amendments he minister for Railways Devel- Municipality to stop the opment, said the rehabilita- construction of illegal struc- Rail’s archive in York. The recommended. Peter Hendy, chair tion works would include tures along the railway lines. 26-mile (41km) railway the construction of 33 new book that had not been ticed amongst hundreds He said the revival of the was the world’s first pub- of Network Rail, said: modern train stations with train services in the coun- lic steam railway when it seen for decades, when he of other packets. “George Stephenson’s two to be located at Adjen try would help generate opened in 1825. searched for documents “I was looking for a original survey of the Kotoku and Nsawam. more money for farmers The notebook with its in a deeds room earlier in deed and purely out of Stockton and Darlington Ghartey said the reha- and traders. Frank Annor detailed notes on the sug- the year. curiosity decided to look Railway ushered in the bilitation of the rail lines Domporeh, the Nsawam / gested route is now on dis- He found the book through the packets and railway age; not only in would help in the evacua- Adoagyiri Members of Par- play at the city’s National among about 20,000 docu- there it was and what a Britain, but around the tion of foodstuff from the liament, also used the op- Railway Museum. Page, a ments on the shelves. Page thrill it was to find.” world. The book is on rural areas to the cities and portunity to emphasise on create more jobs for the the need to halt all unap- records assistant at the ar- said: “Since the 1950s, it The notebook outlines display at the museum has sat on a shelf unno- Stephenson’s redesign until December. youth. He said 14 compa- proved structures along the chive uncovered the note- nies including companies rail lines. 32 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 C002D5556 BUSINESS DAY 33 Financial Inclusion & INNOVATION Supported by: Impact of banking crises on consumer trust and financial inclusion The news of the revoca- financial crises. This has led IBUKUN TAIWO & tion of Skye Bank’s operating to a call for new legal and OLAYINKA DAVID-WEST license in September sent regulatory frameworks to shockwaves through the en- prevent future financial crises he role trust plays tire ecosystem. This was soon as well as build confidence in the drive for an followed by the revocation of in financial markets. This be- inclusive financial operating licenses from an- comes even more imperative services ecosystem other 182 financial institutions, as Nigeria continues to wit- has been identified 154 being microfinance banks. ness the influx of fintechs into asT critical to financial services While the Skye Bank interven- the financial services space. adoption. In spite of the various tion has been in operation Likewise, through effec- dimensions of trust, the recent since 2016, the revocation rea- tive governance and manage- developments in the banking sons of microfinance banking ment systems, the operators sector have elevated the need licenses range from insolvency need to focus on building to revisit the topic, this time to distress. sustainable organisations. drawing our insights from the Through these crises, de- While various factors led to body of evidence available. positors continually question the failure of these financial Trust is the firm belief in the safety of their funds, espe- institutions, the philosophy the reliability, truth, or ability cially access to these monies of rent-seeking without re- of someone or something. It amidst regulatory incursions! course to society is not only means being confident that a The CBN, on its part, through harmful but also erodes con- person or an institution will these interventions has averted fidence. deliver on their promises. Trust trust among the populace and 2011 - Three Bank Licenses banks almost tripled. the complete closures we wit- Finally, consumer educa- is a powerful driver of human its further impact on financial Revoked 2016 - Board of Skye Bank nessed with the likes of Savan- tion is also an essential third behavior and a foundation of inclusion. Two years after the infa- sacked, CBN takes over nah Bank and ABC Bank. The leg to the trust conversation. all relationships. In the case of 2009 - Sanusi Lamido’s mous 2009 “banking tsunami”, By 2016, financial exclusion process of deposit insurance, Improvements in financial money, the importance of trust Banking Reforms Afribank, Spring Bank and levels worsened to 41.6 percent especially for depositors with literacy and financial educa- cannot be over-emphasized. This was the year five bank Bank PHB tapped out of the from 39.5 percent in 2014. Attri- vast amounts, still leaves a sour tion amongst all spheres of Research studies have re- MDs and board of directors Nigerian banking sector due butes of this spike include, but taste in the mouths of the af- the population are welcome. peatedly identified trust as a were summarily removed by to the CBN revocation of their not limited to, the economic fected and their families. The National Financial Lit- major inhibitor to the adoption the CBN governor for various operating licenses. recession, the BVN enrolment While the impacts of trust in eracy Framework published of formal financial services and infractions including weak cor- Fortuitously the 2012 EFinA exercise, and others. Nigeria may seem somewhat by the CBN in 2015 recog- most people would admit that porate governance practices. survey reported that 6.9 per- However, it appears that negligible and may never be nises the diverse needs of trust is a fundamental pillar The 2010 EFinA Access to cent - about 3.9 million adult consumers were also still reel- completely eliminated, trust banking populace, affirms in driving financial inclusion. Finance Survey reported about Nigerians - preferred to live ing from the effects of the being one of the tenets of bank- the absence of a one-size-fits- However, it may not be im- 54 million Nigerian adults were without a bank account due to banking industry’s tumul- ing needs to be continually all approach and identifies mediately apparent just how without bank accounts, and the lack of trust in the banking tuous journey through the strengthened in the banking consumer segments for the important trust is to the Nige- about 4 million of them - 8.3 sector. An additional 2.8 per- years. With 40.1 million adults industry. effective development and rian financial service customer. percent - attributed this to the cent (1.4 million people) didn’t excluded, 2.6 percent of them The responsibility is none- delivery of financial educa- We decided to juxtapose lack of trust in the banking sys- feel their funds were safe in a (about 1.04 million people) still theless shared between the tion. the EFinA Access to Finance tem. Another 1 percent - more formal financial institution. did not trust banks enough to operators and their regulators measure of financial inclu- than 500,000 - did not feel their While the percentage is open or maintain an active - CBN and NDIC. The depth of Dr Olayinka David-West sion in Nigeria (2008 - 2016) funds were safe in the bank. relatively lower than reported bank account. In spite of these supervision, amongst others, and Ibukun Taiwo are with the dates of the banking Unsurprisingly, the shake- in 2010, the absolute numbers improvements, trust remains needs to ensure the adher- members of the Sustain- industry incidents, namely up of the previous year were of adults lacking trust in the a concern. ence to prudential guidelines able and Inclusive Digital 2009 and 2016. Our aim is to top-of-mind, hence attributed banking system are equivalent. 2018 - Skye Bank bows out, as well as managing the pos- Financial Services initia- explore the impact of the CBN to the relatively high levels of In addition, perceptions of the along with 154 microfinance sibility of systemic risk that tive of the Lagos Business interventions on the level of mistrust. safety of funds domiciled in banks occurred in the 2008 global School CBN to deepen rural financial inclusion with PSBs …proposes minimum start-up capital of N5bln ENDURANCE OKAFOR “The key objective of set- communities as well as the posit insurance scheme; verage on mobile and digital to use other channels in- ting up PSBs is to enhance need to complement the carry out payments and re- services to enhance finan- cluding electronic platforms n furtherance of its financial inlusion in rural services provided by other mittance (including cross- cial inclusion and stimulate to reach-out to its custom- mandate to promoting areas by increasing access to licensed entities, the CBN boarder personal remittance) economic activities at the ers; establish coordinating a sound financial system deposit products and paym- therefore issues the draft services through various grassroots through the pro- centres in clusters of outlets in Nigeria and the need nets/ remiitance services to regulation to provide for the channels within Nigeria; is- vision of financial services,” to superintend and control Ito enhance access to finan- small businesses, low-in- licensing and operations of sue debit and pre-paid cards; the country’s highest lender the activities of the various cial services for the unbanked come households and other PSBs in Nigeria. and operate eletconic purse. cited. access points and banking rural segments of the society, entities through high-volume Although, the PSBs are Meanwhile, CBN dis- On the structure of PSbs, agents; be technology-driven the Central Bank of Nigeria low-value transactions in a expected to have a minimum closed also, that PSBs shall the Nigeria apex bank dis- and shall conform to best (CBN) has proposed Pay- scured tehcnology-driven capital requirement of N5 not carry out the follow- closed on the guideline practices on data storage; ment Service Banks (PSB), enviroment,” CBN explained. billion, the CBN proposed in ing; grant any form of loans, that the PSBs shall; operate security and integrity; and the apex bank’s exposure CBN also discoed that the draft. Nigeria’s apex bank advances and guarantees; mostly in the rural centres set up consumer help desks draft on the guidelines for in the circumstance and in is also proposing that entities Trade in the foreign exchange and unbanked locations, at its main office and coor- licensing and regulation of collaboration with critical applying for a PSB license market except carry out pay- with not less than 50percent dinating centres to attend to PSBs disclosed last Friday. stakeholders in the digital should pay a non-refundable ments and remittance servic- access point in ‘rural areas’ consumers-related issues. Meanwhile, BusinessDay financial ecosystem, such as application fee of N500,000 es through various channels as defined by the CBN from Meanwhile, the National survey revealed that the lack the Nigerian Communication as well as a non-refundable within Nigeria; insurance time to time; establish ATMs Financial Inclusion Strategy of proximity to, and availabil- Commission (NCC), Com- licensing fee of N2 million. underwriting; under taking in some of these areas; and be (NFIS) seeks to ensure that ity of, financial service points mercial Banks, Mobile Money A breakdown of the expo- any other transaction which at liberty to operate through over 80 percent of the bank- (FSPs) — bank branches or Operators and Telecommu- sure draft revealed that the is not prescribed by the pay- banking agents (in line with able adults in Nigeria have agents which are meant to nication companies, it has PSBs that will be granted the ment Service Bank Guide- the CBN’s guideline for regu- access to financial services by provide account opening conducted several study tours license will only render the lines; establish any subsid- lation of agent banking and 2020. CBN in collaboration and other customer service of other jurisdiction that have following services; maintain iary except as prescribed in agent banking relationships with stakeholders launched activities are the major barri- made significant progress in savings accounts and accept the CBN regulations on the in Nigeria). the NFIS on 23rd October, ers preventing rural inhabit- driving financial inclusion. deposits from individuals scope of banking and ancil- Other structures in which 2012 with the view to reduc- ants from accessing financial In view of the challenges and small businesses, which lary matters, No3, 2010. PSBs must operate as cited ing the exclusion rate to 20 services and products. to effective outreach to rural shall be covered by the de- “PSBs are expected to le- by CBN includes; for them prcent by 2020. 34 BUSINESS DAY C002D5556 Wednesday 10 October 2018

SHIPPING LOGISTICS MARITIME e-COMMERCE Supplementary port concession agreement to be ready in December – Bala Usman Stories by ing with the World Bank as performance of automotive UZOAMAKA ANAGOR-EWUZIE a technical partner. What policy on the economy. we have discovered is that She noted that govern- he supplemen- there is no clarity on sanc- ment needs to review the tary port conces- tions for any of the partners policy to ensure that licensed sion agreement that violate the rules. No assembling plants, are cur- between the clarity as to what form of rently assembling vehicles; Nigerian Ports penalty. These are part of the number of assembled TAuthority (NPA) and the the things we are looking at vehicles and the purchasing private terminal operators and we have gone far in the power of Nigerians vis-a-vis is expected to be ready in process.” she said. their ability to buy newly as- December 2018, the man- Usman, who confirmed sembled vehicles. agement of the NPA has said. that the supplementary Speaking on the infra- According to the NPA, all agreement will be ready in structural challenges around necessary arrangement it’s the next three months, said the port, Riliwanu Akiolu, being concluded to sign the that NPA is in talks with the Oba of Lagos, expressed con- supplementary agreement terminal operators to ensure cern on the Nigerian ports, with port concessionaires. the agreement becomes particularly on the poor state The new agreement, they functional. of Lagos port roads. say, hopes to address some “We have an inter-agency He said the Federal Gov- of the controversial and which has all the agencies of ernment needs to appeal to ambiguous issues around government that are part of Lagosians and compensate the port concession regime the concessioning process them for the hardship. entered into by the Federal Marvin Abe, managing director of Apapa Bulk Terminal Ltd (ABTL), with Hadiza Bala-Usman, including the office of the Akiolu, who spoke Government with private managing director of Nigerian Ports Authority (NPA), during the International Association of Ports Attorney General of Fed- through a chief, Nurudeen and Harbous (IAPH) Regional Conference in Abuja …recently. terminal operators in 2006. eration; Bureau of Public Agoro, said: “The most hit by Recall that Nigeria’s port Enterprise(BPE); Infrastruc- the hinterland challenges is concession agreement, payment to government and the agreement comes into led to massive smuggling ture Concession Regulatory Lagos State. We are suffering which has lasted for 12 year, among others. effect as a perfect document. of vehicles and rice into the Commission (ICRC); Federal from infrastructure decay is yet to be reviewed since Hadiza Bala-Usman, Usman said the review country. Ministry of Transportation; around the ports. The im- inception of port concession managing director of NPA, will be more definite on According to her, the plan NPA and we also have tech- porters and clearing agents regime in 2006. who disclosed this at the the issues of sanctions for is also to attract private in- nical support from the World are suffering so much hard- As result, industry play- African conference of the both operators and govern- vestors to Nigerian ports, Bank,” she added. ship and they pay heavily. ers including terminal op- International Association of ment as regulator, in case assuring of government’s On issues around im- This adds to cost of goods to erators, NPA and port users Ports and Harbours (IAPH) of default to the provisions determination to continue pact of government poli- final consumers.” have blamed the non review held in Abuja recently, said of the agreement; redefine to provide necessary infra- cies on cargo throughput at He therefore called on of the agreement for notable the NPA is seriously work- the Guarantee Minimum structure at the ports. the port, Usman said that the government to as a mat- failures in the port system ing with the World Bank, Tonnage (GMT); and ad- “We are currently re- the authority has written ter of urgency; intervene to especially in areas of infra- terminal operators and other dress other issues around viewing the concession to Federal Government to save the port axis from total structural provisions, dollar stakeholders to ensure that government policies that agreement. We are work- assess and report back, the collapse.

Expert calls for removal of overtime, Lekki Port welcomes Presidential directive detained goods from port terminals on connecting rail lines to seaports ucky Amiwero, from the terminal/shed proper officer, and such ekki Port LFTZ En- the directive, describing it as ness as targeted under the member, Presiden- to the federal government place shall be deemed to be terprise (LPLE), a positive step towards facili- Economic Recovery and tial Task Force for warehouse at Ikorodu. a government warehouse promoters of Lekki tating efficient movement of Growth plan (ERGP). So, Reform of Nigeria The letter dated 2nd Oc- where the goods shall be Deep Seaport has cargo in Nigerian seaports I have directed that every Lcommended President Mu- including Lekki Port when port must have the comple- LCustoms Service (NCS) has tober 2018, stated that termi- deposited in. called the attention of the nal operators by the provi- He further stated in the hammadu Buhari on his operational. ment of rail infrastructure recent directive that all the Recall that the President and our projection is that Presidency on the need sion of CIMA Act C45 of 2004 letter that only the Nigeria nation’s seaports must be made this pronouncement by the end of 2021, we will to decongest the port by section 31-(2), are expected Customs is charged with linked to the rail infrastruc- while declaring open the have standard gauge railway removing un-cleared and to transfer all such goods as the responsibility of col- ture in order to enhance IAPH conference which was across the main North-South seized cargos from various supplied in the list by the lecting rent on all goods cargo evacuation. attended by esteemed stake- trading route,” he said. terminals in the seaports. proper officer to government deposited in the government Steven Heukelom, gen- holders, senior government According to him, gov- To him, the cargos in warehouse. warehouse as contained in eral manager projects, who officials and participants ernment has been giving question need to be moved “We hereby request the section 20-(b) of CIMA Act, spoke on behalf of LPLE dur- from all over Africa and the the same level of serious to the federal government federal government to com- which clearly states that ing the recent Africa Region World. attention to the improve- warehouse at Ikorodu, as ply with the provision of rent must be paid on goods of International Associa- “We understand that con- ment of road infrastructure. statutorily provided in the section 31, 20 and 97 of the deposited in government tion of Ports and Harbours necting the ports to the rail “At the moment, 25 major Customs and Excise Man- CIMA Act, by transferring the warehouse. (IAPH) Conference & Exhi- lines will improve the coun- highways and 44 roads are agement (CIMA) Act C45 un-entered, un-cleared and “Nigeria Customs Service bition held in Abuja, lauded try’s economic competitive- under construction across of 2004. seized goods to the govern- is conferred with the author- the six geo political zones of Amiwero, who wrote a ment warehouse in Ikorodu, ity to fix the rent charge on the country.” letter to President Muham- to ease the port of conges- goods deposited in the ware- The conference, which madu Buhari on the need tion and raise revenue for house. The service is also the was organised by the Ha- to decongest the ports, said government in consonance custodian of all un-cleared diza Bala Usman led man- that Nigeria Customs is stat- with the provision of the Act and un-entered goods stored agement of the Nigerian utorily authorised to remove and international best prac- in the terminals as overtime Ports Authority (NPA), was un-cleared and seized goods tice,” Amiwero noted. cargo and seized goods that well attended, and industry after the days specified in According to him, goods need to be deposited in gov- stakeholders believed, will section 31-(1-9) of CIMA, are removed or store at ernment warehouse,” he no doubt yield visible im- and transfer such goods a place approved by the added. provements in port services. Wednesday 10 October 2018 C002D5556 BUSINESS DAY 35 LegalPerspectives With Odunayo Oyasiji Case Review Prof. Theophilus Adelodun Okin & Anor V. Mrs. Agnes Iyeba Okin (2016) LPELR- CA/IL/55/2015 The court further held “the fact What to note: that the Respondent and 1st Ap- his is a matter that was pellant were married did not in decided at the Court any way disadvantage the fact of Appeal. This matter that partnership could be implied deals with issues that by the way and manner they car- bothers on creation ried on the business of the school. andT dissolution of partnership. The law indeed recognises fam- ily partnership, which is where Fact two or more persons who are The 1st Appellant (defendant at related, voluntarily ancestors, the lower court) was the husband lineal descendants, siblings, and of the Respondent (plaintiff at the any trusts established primarily lower court). The Respondent for the benefit of such persons”. was responsible for the manage- On the effect of dissolution of ment and day to day running of partnership, the court held that two educational institutions i.e. “where as in this case, a partner- Kinsey Academy and Kinsey Col- ship is for a period undefined, lege of Education. The 1st Appel- any of the parties can give notice lant claimed that the Respondent or approach the Court for the was running the schools on his dissolution of the partnership behalf. He claimed that he had provided the right is exercised to disengage the Respondent bonafide, not for the purpose from running the school due to of taking undue advantage of her financial obsession which the business of the partnership. was affecting the administration Whether such dissolution is by of the school. reason of the state of agreement The Respondent on the other of the partnership or by Court hand claimed that she got mar- decree each party is entitled to ried to the 1st Appellant in 1994. be indemnified to the tune of ex- penses he had rightfully incurred At the time of the marriage, she owned by his junior brother. The presented by the Respondent was a staff of Uthman Dan Fodio on behalf of the partnership in Respondent opposed this move to show partnership. He stated Judgement of Court University, Sokoto. She stated the ordinary course of its busi- and this led to her disengage- that it was obvious from the ness or for the preservation of that she retired after the mar- ment and to the breakdown of evidences before the court that The Court defined partnership as riage and relocated to Ilorin to the partnership. Then again every the marriage. Kinsey Academy was established “a legally recognized organiza- partner is in law jointly and sever- start Kinsey Academy with the The Respondent challenged her in 1997 while the Respondent tional structure, an association of 1st Appellant between 1997-1999. ally liable with other co-partners disengagement at the Federal joined the administration of the a business owned by two or more for all debts and liabilities of the She claimed that she invested all High Court, Ilorin on the ground school in 2001. people who share the profits her retirement savings into the partnership. Consequently, I will that the school was run on the He further stated that marriage and are personally liable for all add, each member unless there is school and that all the furniture basis of partnership. She asked is not enough evidence to estab- business debts. In partnership of her former private school in a formal agreement stating oth- the court to dissolve the partner- lish the fact that whatever one there may be a formal agree- erwise, will be entitled equally to Sokoto was transferred to the ship, wind down the affairs of party owns is jointly owned by ment, which may be expressed or school. All that the 1st Appellant the sharing of both the physical or the schools, liquidate their assets the couple. He submitted that implied between the parties of a liquid assets of the partnership… invested in the school was his and share them equally between evidence of joint ownership must partnership to endeavour to en- building which was on eight plots to this extent therefore since her and the 1st Appellant. The always be shown to establish gage in business and how it is to the partnership in question was of land. Federal High Court ruled in fa- same. He stated that “the issue be conducted, such as profit and The school progressed and other implied, I hold that the learned vour of the Respondent and the of joint ownership and partner- loss sharing, capital contribution trial Judge was right when in his properties in the neighbourhood appellants being dissatisfied with ship is a special contract and the or more. In other words, partner- were acquired. The 1st Appellant judgment he decreed that the the judgement decided to appeal. Court only interprets any instru- ship is a voluntary association or Respondent and 1st Appellant and the Respondent were joint ment to that effect made by the coming together of two or more signatories to the account of the share equally the capital and Issues for determination parties voluntarily “. He argued persons who jointly own and profits of the partnership since school. They registered Kinsey that a cordial relationship is in carry on a business for profit”. Academy as a partnership under there was no implied evidence The Appellants raised a sole is- law not the basis to hold that two The court summarised the argu- to the contrary.” Companies and Allied Matters sue for determination and the people are partners. The counsel ment of the Appellants as that Act in 2003. Also, they both ap- The Court of Appeal ruled in Respondent also adopted the admitted that partnership can be the Respondent who is claiming favour of the Respondent and plied and got approval for the sole issue. The sole issue raised inferred but that the Respondent partnership and joint ownership establishment of Kinsey College upheld the judgement of the was “whether from the evidence did not give evidence that can of the schools could not present lower court. of Education in 2012. and findings of the lower court, lead to such inference. any document in form of agree- The Respondent concentrated on the lower court was right to have Counsel to the Respondent con- ment to that effect. Conclusion the administration and day to day held that, the two educational tended that the Appellants did The court pointed out the fact that running of the school while the institutions were a business not give evidence to contradict at least 12 of the Respondent’s 1st Appellant focused on infra- Partnership can be implied from owned by the 1st Appellant and the evidences given by the Re- statement on oath was not con- the way parties conduct the structural facilities development the Respondent jointly and to spondent and that the implica- tradicted in the processes filed by in the school. business. This is also applicable have granted the reliefs sought”. tion of this uncontroverted oral the Appellants and neither were in marriage. The implication The relationship between the 1st and documentary evidence is they discredited through cross- Appellant and the Respondent of dissolution of partnership is Submissions/Arguments that the court should rely on them examination. Therefore, the evi- that all partners are to partake in went sour in 2012 when the 1st and give judgement in favour of dences of the Respondent as to Appellant solely decided to give the sharing of both physical and The Appellant’s counsel argued the Respondent. He urged the the co-ownership of the school liquid assets of the partnership- the premises and structures of the that the lower court was wrong Court of Appeal to uphold the remained intact without any form school to Grace Owens University except where there is an agree- to have relied on the evidence judgement of the lower court. of contradictions or denial. ment to the contrary. Wednesday 10 October 2018 36 BUSINESS DAY C002D5556 Wednesday 10 October 2018 Leadership BUSINESS DAY 37 SHAPING PEOPLE INTO A TEAM The chairman of Nokia on ensuring every employee understands machine learning — Including him

RISTO SIILASMAA 4. IMPLEMENT MACHINE LEARN- ’ve long been both paranoid ING INTERNALLY. There are numer- and optimistic about the po- ous jobs that can be done bet- tential of artificial intelligence ter and faster if we augment the to disrupt — well, almost ev- people working on those tasks with erything. Last year, I was struck machine learning. For that, we’ll byI how fast machine learning was need to change people’s behavior developing and I was concerned so that they look at everything that both Nokia and I had been around them as an opportunity to slow on the uptake. What could I automate. do to educate myself and help the 5. INTEGRATE MACHINE LEARN- company along? ING INTO PRODUCTS AND SER- As chairman of Nokia, I was VICES.We must constantly analyze fortunate to be able to worm my ways to leverage machine learning way onto the calendars of several of to improve competitiveness with the world’s top AI researchers. But I our customers. only understood bits and pieces of Because these five steps are all what they told me, and I became equally important parts of our AI frustrated when some of them future, they must be implemented seemed more intent on showing simultaneously. While we start off their own advanced knowledge teaching our employees the ba- of the topic than helping me truly sics of machine learning, we can understand it. start building our IT infrastructure, Then I realized that as a longtime searching for talent and adding CEO and chairman, I had fallen into the more complicated architectures. experience has been creating a could be an in-house competence machine learning competencies to the trap of being defined by my Then I dug into the most difficult template I call “the Five Steps to AI center or it could even be out- our products and services. role: I had grown accustomed to part: how to explain the essence of Competence.” I hope leaders across sourced to a third-party AI company. I often describe myself as an having things explained to me. Why machine learning in the simplest all industries can learn from these These data scientists will para- entrepreneur. When you have an not study machine learning myself way possible, but without dumbing steps as they seek insights about chute into a business unit’s R&D entrepreneurial mindset, absolutely and then explain what I learned to it down. The presentation I came up using machine learning in their team to show its members how everythingis your responsibility. You others who were struggling with with is available on YouTube (view businesses: to do what’s necessary. With every truly care and your actions commu- the same questions? That might it here: bit.ly/2C0q7Sh), and so far project, the data scientists will nicate that loud and clear. help them and raise the profile of nearly 45,000 people have watched 1. MAKE EVERYONE leave behind people who now I could have just supported machine learning in Nokia at the it. I’ve also given it to, among others, LEARN THEIR AI ABCs.We plan have hands-on experience with Nokia’s CEO and management same time. the entire Finnish Cabinet, many of to make familiarity with the fun- machine learning, and when our team in talking about the need to the commissioners of the European damentals of machine learning a scientists return to the centralized kick-start our machine learning GOING BACK TO SCHOOL Union and 200 teenage girls to get mandatory process, and will require competence center, they can share capabilities. But talk is cheap. Taking After a quick internet search, them interested in science. employees to take an online test. their experience about what works actions that people can see and are I found Andrew Ng’s courses on Thousands of Nokia employees The point isn’t just to ensure that on the ground. motivated to copy is better than any Coursera, an online learning plat- have seen my presentation and each individual has a basic under- 3. PAIR ROBUST INFORMATION speech. The fact that the chairman form. Ng turned out to be a great been inspired by it. Many of our re- standing of the technology. The TECHNOLOGY SYSTEMS WITH A of a global company went back to teacher and I had a lot of fun getting search and development folks have deeper message is that learning SOLID DATA STRATEGY. We’ll need school to learn about a new tech- reacquainted with programming come to me to confess that they is something we should be doing to build IT systems that can combine nology was novel enough to get after a break of nearly 20 years. were a bit ashamed that their chair- throughout our lives and that we any subset of data the company has people’s attention and encourage After completing the first course man was coding machine learning can understand really complicated access to with any other subset to them to act on their own. on machine learning, I took a follow- systems while they hadn’t even topics even if we don’t think we amass the exact data necessary to up class on deep learning and started. But now they were devoting can at first. implement a particular machine I hope it’s just the beginning. another focuses on convolutional their own free time to studying the learning system. Setting up a data neural networks, which are com- topic and were working on the first 2. CREATE A COMPETENT POOL lake of this kind is pure IT work. monly used in analyzing visual machine learning projects for Nokia. OF EXPERTS.When a business leader The strategy half of the equation imagery. As I became more familiar comes up with an idea — “Hey, we involves anticipating our future with the topic, I also spent time THE FIVE STEPS TO AI COMPE- could save a ton of money if we did data needs. In three to five years, Risto Siilasmaa has been reading research papers and articles TENCE this” or “We could make this prod- the competitiveness of parts of our chairman of Nokia since 2012 on machine learning architectures Ultimately, I wanted to promote uct more competitive if we could business will be largely defined and is founder and chairman and algorithms not covered by Ng’s a wider understanding of machine teach a machine learning system to by our machine learning systems. of F-Secure. He is the author courses. After three months and learning — not just for engineers, help” — we’ll have a pool of experts That means that today we have to of “Transforming Nokia: The six courses, I had covered both the but for everyone at Nokia. To that on hand to evaluate it and decide acquire the data we need to train Power of Paranoid Optimism to simple algorithms as well as many of end, the most valuable part of my whether it makes sense to try. This those systems. Lead Through Colossal Change.” c 2017 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate 38 BUSINESS DAY C002D5556 Wednesday 10 October 2018 NEWS

the latter month. billion as under-recovery for Octo- very expensive and lead to misal- FG to lose 29% of October earnings as... Oil prices in January averaged ber, which is the result of adding N7.2 location of capital in the economy. Continued from page 1 in October and arrived at a monthly $69.08 per barrel and the NNPC billion (12 percent) to the average The decrepit state of the country’s The Federal Government ear- value of $4.1 billion. reported a lower under recovery of under-recovery of N60.1 billion. refineries means Abuja relies on im- marked oil revenues of N2.4 trillion In forecasting the Federal Gov- N45.78 billion, compared to N59.5 This means the Federal Govern- ports of refined petroleum to meet its in the 2018 budget, using an oil price ernment’s share of the total oil rev- billion in February even though oil ment, through the NNPC, would lose daily consumption needs despite be- and production benchmark of $51 enue for the month, we worked out price was lower at $65.73. as much as N67 billion in October, ing the largest oil producer in Africa. per barrel and 2.3 million barrels 18.6 percent of $4.1 billion and got March 2018 however recorded the highest under-recovery after the The government then subsidises daily, respectively. $763 million (N233.4 billion). the lowest under recovery by NNPC. $88 billion lost in May, defending a the price of petrol, a practice it justi- The budgeted amount is 18.6 per- The NNPC makes provisions for During the period, under recovery N145 per litre petrol price. fies as protection for vulnerable cent of the total oil revenue (N12.9 the subsidy under a line item called declined by 43 percent amounting to Further analysis shows that the N67 Nigerians living in poverty. trillion) that the country would “Under-recovery.” Between Janu- N34.03 billion despite average oil price billion is equivalent to 29 percent of The N145 litre retail pump price earn for the full-year using the same ary to May, the NNPC reported an for the month was up about 2 percent. the Federal Government’s estimated for petrol was fixed as far back as May benchmark set in the budget ($51 per under-recovery of N301 billion, an The average oil price in the period revenue of N233.4 billion in October. 2016 when the prevailing oil price barrel and 2.3mbpd). average of N60.1 billion a month. between January and May was $71.2 The Federal Government has was $40 per barrel and the exchange This implies that after the Inter- BusinessDay used an average per barrel, 12.4 percent lower than halted the practice of paying direct rate was N280 per US dollar. national Oil Companies (IOCs) and figure to level out sharp volatility in October’s $80 forecast. subsidies since state-owned Nige- As at Monday, October 8, the the states have taken their share, the monthly losses reported, given that To forecast under-recovery for the rian National Petroleum Corporation price of Brent crude, Nigeria’s bench- Federal Government lays claim to as under-recovery in some months month, we factored in the oil price (NNPC) became the sole importer of mark grade, was $83 per barrel, while much as 18.6 percent. surpassed months when the average differential of 12 percent in average refined products in 2017 after indepen- the naira has since weakened to BusinessDay then plugged in an oil price was higher. under-recovery of previous months, dent marketers downed tools on the N306 per dollar. oil price of $80 per barrel and pro- For example, under-recovery in given that under-recovery is usually back of an unfavourable price regime. At the prevailing oil price and duction of 1.7 million barrels per day February was higher than in January, higher when oil prices increase. While Nigeria has kept the retail exchange rate, the landing cost for even though oil prices were higher in We derived an estimate of N67.3 price of petrol at N145 per litre, petrol is around N212.7 according to landing costs are over N200 per BusinessDay estimates, using avail- litre, thanks to higher oil prices and able NNPC data. a weaker naira/dollar exchange rate. With the average PMS price of The marketers pushed for a price re- N158.8 this year, the Federal Govern- view but the de-facto peg has remained, ment has covered around N54 per forcing them to quit importation and litre for every Nigerian. rely on NNPC imports for their supply. Petrol consumption in the coun- Nigerians may not feel it nor try was estimated by NBS to have know it but the pump price of petrol exceeded more than 10 billion litres is currently the eight cheapest in the in the first and second quarter this world according to data compiled by year, putting estimate subsidy pay- BusinessDay. ments at around N540 billion. Every day, Nigerians go to gas Although the size of the subsidy stations to buy petrol; they pay an payment is high, it is not uncommon for average of N146.9 per litre (accord- oil producing countries to heavily sub- ing to National Bureau of Statistics sidize gasoline prices for their citizens. August average pump price) which Organisation for Petroleum exporting is a 65 percent discount to the aver- countries (OPEC) which is a cartel of age global price, thanks largely to some the world’s largest oil producers expensive government subsidies have six of its members included in the and crude oil swap deals which have top 10 cheapest countries to buy petrol. helped supress petrol prices. Nigeria’s petrol price is the sixth Though popular, subsidies are cheapest among OPEC countries. BusinessDay holds 2018 edition of CEO... L-R: Osa Owieadolor, MD, Platform Petroleum, FNSE; Austin Avuru, CEO, Seplat; Victoria Avuru, and Amaechi Continued from page 2 Senior Partner at McKinsey Global Moshe, platform shareholder, at the occasion of the 58th founder’s day lecture of the University of Nigeria, Nsukka, Forum has become the foremost Institute Council. and conferment of Doctor of Business Administration on Avuru. event dedicated to the development This year’s conference, as in pre- of the private sector in Nigeria and vious editions, will provide a unique platform for the attendees and del- mestic Product (GDP) growth of -3.88 the overall economy. Last year’s edition was mind- egates to debate and exchange ideas Property prices seen dropping as politicians... percent in Q2, compared to the -9.40 on the issues and trends impacting percent rate recorded in the previous blowing as it featured the best hands Continued from page 1 etokunbo Ajayi, CEOO, Property- from across the globe. Last year saw upon Nigeria’s economic growth and gate Development and Investment quarter, meaning that the sector has development. elections. been in negative trajectory since the the presence of Richard Dobbs, In February 2019, Nigeria will be Company, agrees that the market will be receiving what he describes as last quarter of 2016. The Q2 figure going into general elections that are is 5.52 percent points better than the expected to cost governments at all distressed assets as the electioneer- ing campaign heats up. contraction reported for the sector Focus shifts to Air Peace financing... levels, individuals and political office in the first quarter, but not enough seekers, a lot of money for prosecut- “Those who want to contest elec- Continued from page 2 For regional operations, the airline tions and need money desperately reason for investors to clink glasses. goes to five routes and operates not ing the elections. Analysts advise however, that that they want to go to all the airports The property market is a haven will resort to selling their assets, more less than 22 flights on these routes. It so if they have no other sources of the present challenges in the mar- within Nigeria. They have the Air- operates six flights from Lagos to Gha- for politicians where they launder ket provide huge opportunities for Peace hopper, where they use smaller money through proxies and return credit. The money they need is time- na, two flights from Abuja to Ghana, bound and so, unlike other sellers savvy investors who are patient and aircraft to feed the major routes. I two flights from Lagos to Freetown, to the same market to raise funds have a long term view of the market. will have suggested that they remain for their elections by off-loading the who can wait, these people will not four flights from Lagos to Monrovia, have the patience and because they “A time like this, when distressed relevant first in the domestic and re- four flights from Accra to Monrovia, properties for quick cash. Elections assets are coming to the market is gional routes. With this relevance and into political office are capital in- are coming to a market where sup- two flights from Lagos to Bangul and ply already outstrips demand, they time for investors to take position in the growth sustainable over three to two flights from Lagos to Dakar. tensive and high risk ventures which the market”, an analyst, who craved five years, this will help them become banks avoid like lepers. have to drop their prices. That may All together, the airline operates not help the market”, Ajayi noted in anonymity, posited. a feeder to other airlines,” Ojuri said. not less than 107 flights daily. The -av “The expectation is that many The electioneering period is one The operating cost of an airline for new assets will be coming to the a telephone interview. erage cost of air tickets from Lagos to Since most of these expected for much spending as politicians an hour’s flight is between N1million Accra is between N43,000 to N83,000. market from people who want to will be pushing money into printing to N1.5million, depending on the air- run for elective positions. By simple properties are high end, they will be Air Peace already operates Boe- coming to an already challenged seg- posters, organising rallies, placing craft type. These include cost of avia- ing 737s between major cities in economics, when supply outstrips adverts in both print and electronic tion fuel, dispatchers, charges from demand, especially in an environ- ment of the market where demand Central and West Africa. The airline, and prices are low or stagnant in some media, wooing the electorate for major aviation agencies, ground which recently added a Boeing 777s ment where you don’t have liquidity, votes with consumables and cash handlers and crew, amongst others. price will fall. Again, because these locations, forcing the seller to drop his to its fleet, is looking to soon launch price in order to stimulate demand. and the impact will be positive on The airline currently operates Boe- its international flight operations people want quick cash, they will sell real estate. ing 777, 737, DONAIR 328, CRJ. Air- the assets at very low prices”, Gbenga The property market, in the last with the new order for ten 737 MAX 24 to 30 months, has been grappling “All these will put a lot of money Peace operates an average of 85daily 8 airplanes. Ismail, an estate surveyor and valuer, into people’s pockets; people will flights locally. The airline’s daily turn- told BusinessDay on phone. with widening vacancy rates and Each of the Boeing 737 MAX falling rents, rent payment arrears feed well, pay children’s school fees over from tickets sales no doubt is at- costs an average of $113million. Ismail observed that already, and the next thing to think about is tracting banks’ interest in its expansions. prices have started dropping in and reduced up-take of new office This will amount to $1.130billion. and retail spaces. A quarter one 2018 how to pay their house rents and, in Lagos to Abuja 11 flights, Lagos to Furthermore, one Boeing 737 MAX Abuja and it is speculated that the some cases, how to own a home,” Asaba, Abuja to Asaba to Lagos; four coming election could be responsi- report by the Nigerian Bureau of employs about 500 people and 10 of Statistics (NBS) shows that the sec- Femi Akintunde, CEO, Alpha Mead flights; Lagos to Port Harcourt, four these aircraft will employ over 5,000 ble for the drop. “Already the market Group, affirmed in an interview. flights ; Lagos to Kano to Abuja to has seen an over 10 percent drop in tor plunged deeper into recession people. Air Peace will commence in this quarter. Akintunde stressed that the com- Kano to Lagos four flights, Lagos to Dubai and Sharjah routes by Novem- prices and it can only get worse as ing election was going to be an ad- Yola, two flights, Lagos to Benin is two the we move closer to the election Though the sector showed signs ber. Air Peace is speedily breaking of rebound in Q2 2018 as shown by vantage to real estate because a lot of flights, Lagos to Enugu is six flights. even in the aviation sector despite proper”, he added. money was going to come out. “The The airline also operates the Owerri, Though Chudi Ubosi, president, figures from the NBS, analysts hinge operators call for the government to that good but negative figures on a current government knows that they Calabar and Uyo routes daily. create an enabling environment for International Real Estate Federation have to spend their way to win the An airline carries an average of (FIABCI), Africa region, does not number of factors, including improved operations. infrastructure and capital injection election and come back. They have to 100 domestic passengers daily. Aver- see the election having significant convince Nigerians why they should age cost for an economy ticket locally impact on property prices, Ad- into the sector by domestic investors. •Continues online at The sector reported Gross Do- still vote for them,” he said. will be between N23,400 to N42,700. www.businessdayonline.com Wednesday 10 October 2018 C002D5556 BUSINESS DAY 39 NEWS CBN financial inclusion targets: One step forward, two steps backward! Continued from Back Page where will he use it and will he understand the short-term which the terms and conditions of formal banks are unwill- the card, (iv). Will the ing and unable to provide card be pre-paid or will or service due to the high it be like a normal credit administration costs. card. There are so many In addition to the in- unanswered questions to strumental needs, the in- which the answers will formal finance sector also help us in appreciating provides for the intrinsic the importance of adopt- needs of the majority of ing a sociological ap- those classified as finan- proach to banking and cially excluded- the poor especially for financial and uneducated. Exam- inclusion. This approach ples of intrinsic needs in- will ensure that any finan- clude sharing in the joys cial inclusion policy con- and sorrows of members tains both instrumental like bereavement, child and intrinsic needs of the dedication, daughter’s target group to generate marriage etc. As these the required buy-in and L-R: Temitope Oguntokun, head of sustainability and brand, Lafarge Africa; Saliat Bolanle Isola, assistant director, Universal intrinsic needs are cul- effectiveness of the pol- Basic Education Commission (UBEC); John Edeh, assistant director, Planning, Research and Statistics, National Commission turally oriented and en- icy. It will require using for Mass Literacy, Adult and Non-Formal Education; Adeola Awogbemi, executive director, Ovie Brume Foundation; Moshood couraged, the preference some of our development Lawal, representative of the senior special assistant to the president on SDG, and winners of Lafarge Africa National Literacy of the informal finance priorities such as educa- Competition (North Central), during the presentation in Abuja. groups is guaranteed. tion and agriculture to Moreover, the regulations innovate strategies to en- and operations of the in- hance the integration of Ghana inches close to league of big oil producers formal finance groups are our formal and informal properly understood, ac- financial sectors. In some DAVID PILLING the whole country eats and a heritage fund, rainy-day Jubilee field, at about 100,000 cepted, internalised and instances, the informal fi- dreams about.” funds for emergencies and barrels a day, and the Twen- complied with due to the nance sector should serve hen Kos- Ghana has escaped that future generations. eboa Enyenra Ntomme, or normative (cultural) ori- as role models for the for- mos En- fate. This is largely because One indication that Gha- Ten, fields, at 70,000. gin and approach of the mal sector. ergy of the it already has a diversified na has not succumbed to Both fields are operated rules. Avoiding or delaying US discov- economy in which oil — Dutch disease — the term by Tullow of the UK, which In promoting formal in adopting this approach ered the at least for now — plays a given to over-dependence on joined forces with Kosmos financial inclusion, there will sustain our limited JubileeW oilfield off the coast relatively minor role. a single commodity — is that — at the Ghanaian govern- are certain questions that financial sector develop- of Ghana in 2007, the West At today’s production its currency has not strength- ment’s urging — shortly after our policy makers need ment especially financial African country had already levels, the country is still a ened excessively. oil was discovered a decade to evaluate and possibly inclusion evident in our been harvesting cocoa for big net importer of crude. Quite the reverse. While ago. In addition, Eni pumped answer. Some of the ques- in-ability to achieve more 60 years and mining gold Oil revenue contributes once there had been con- the first oil from its Sankofa tions include: (i). why than 40million formal for a century. only about 6 percent of cern that Ghana’s exports field in 2017. a poor village man will bank account holders in a Charles Adu Boahen, government income, ac- could be hindered if the cedi Sankofa is, furthermore, prefer to use the formal country of about 200 mil- deputy finance minister, cording to data from the hit parity with the dollar, to- part of the $8bn Offshore financial sector instead of lion people. says his country is lucky. finance ministry. Nigeria’s day Ghana’s currency trades Cape Three Points inte- his well understood infor- By finding oil reasonably present daily output is at five cedi to the dollar. grated oil and gas project, mal sector, (ii). Does he late in its development cy- 2.2mbpd. As things stand, Ghana which is expected to dou- CHANGE OF NAME need a national ID/Mas- I, formerly known and addressed cle, he says, it stands a bet- Officials describe Ghana’s will secure its place as a ble domestic gas supply to ter-card for his daily ex- as Obinna Monday Obi now ter chance of avoiding the Petroleum Revenue Manage- top-five oil producer in sub- 360m cubic feet by the end istence and especially for resource curse that has be- ment Act of 2011 as a solid Saharan Africa by 2020 with of next year. Gas is already his financial transactions, wish to be known and addressed document. The act prevents fallen other nations. production of about 250,000 piped from the Jubilee field (iii). Even if he decides to as Obinna Victor Christian. All “When I was growing Ghanaian governments, of barrels, according to Eco- to power a 200MW thermal use the ID/Master-card, former documents remain valid. up, Nigeria was the number whatever stripe, from front- bank, a pan-African bank. station built by the Chinese. one competitor on cocoa loading revenue by selling oil That would still put it a General Public please take note. exports,” he says. “Today, I on the futures markets. Mod- long way behind Nigeria, CHANGE OF NAME CHANGE OF NAME CHANGE OF NAME don’t even think there is one elled on Norwegian regula- with production of 2.2m I, formerly known and addressed I, formerly known and ad- I, formerly known and addressed cocoa tree left in the whole tion, it stipulates that 30 per barrels a day, and Angola, at as Miss Demurin Abiola Omoy- dressed as Miss. Maxine as Miss Elizabeth Olaide cent of petroleum revenue be 1.8m. Ghana’s production is of Nigeria. Everybody has emi now wish to be known and Hamilton now wish to be Babatunde now wish to be paid into a stabilisation and largely accounted for by the moved to oil; that’s what addressed as Mrs Akinloye known and addressed as Mrs. known and addressed as Mrs Abiola Omoyemi. All former Maxine Hamilton-Coker. All Elizabeth Olaide Akinola. All Corporate governance, infrastructure key to attract investment in aviation - experts documents remain valid. Gen- former documents remain valid. former documents remain valid. eral Public please take note. General Public please take note. General Public please take note. IFEOMA OKEKE governance, cash flow for “Existing standards must setting up airlines must be be enforced and airlines pe- professionally scrutinised to nalised for non-compliance, CHANGE OF NAME CHANGE OF NAME CHANGE OF NAME xperts in the avia- I, formerly known and addressed I, formerly known and addressed I, formerly known and addressed tion sector have make business sense. appointment of Independ- as Miss Alionye Juliana Amaka as Miss Okanlawon Abiodun According to Kuru, the ent Directors with requisite as Umeileka Ifeoma Faith now stressed that except now wish to be known and ad- Abioye now wish to be known aviation industry operates experience on the Board of wish to be known and addressed the government pro- dressed as Mrs Ikechukwu and addressed as Mrs Owoade Evides the right infrastructure on a low profit margin, and all Airlines, sole-proprietor- as Njoku Ifeoma Faith. All for- Juliana Amaka. All former Abiodun Abioye. All former a low profit margin requires ship should be discouraged. across the country’s airports documents remain valid. Gen- mer documents remain valid. prudence that can only Just like in banking, owner- documents remain valid. Gen- and operators implement eral Public please take note. eral Public please take note. corporate governance, the come with good Corporate ship should be diversified General Public please take note. country may not attract the Governance. and adoption of the code of CHANGE OF NAME CHANGE OF NAME CHANGE OF NAME needed investment to turn Reeling out ways to im- Corporate Governance for I, formerly known and ad- I, formerly known and addressed I, formerly known and addressed the sector around. plement corporate govern- the Aviation Industry.” dressed as Miss Coker as Grace Tolulope Aire now wish as Miss. Adeyinka Basheerat They say for any change ance, he said, “Regulators There are two major Ifeoluwa Opeyemi now wish to be known and addressed as Taiwo now wish to be known to be effected in the Corpo- should provide affordable problems with the airlines to be known and addressed and addressed as Mrs. Raheem rate Governance of the Air- sources of funding and ac- in Nigeria, one of which is as Mrs. Olu-Omodayo Grace Tolulope Olorunnisola. All Ifeoluwa Opeyemi. All former Basheerat Taiwo. All former line, it must be regulatory cess to foreign exchange, lack of an effective Board of former documents remain valid. documents remain valid. Gen- scrutinise the ownership Directors, thereby affecting documents remain valid. Gen- driven, as self-regulation eral Public please take note. General Public please take note. eral Public please take note. has not worked so far. and source of funding of internal policies and disci- Speaking during the 2018 the prospective investors pline, he said. CHANGE OF NAME CHANGE OF NAME CHANGE OF NAME colloquium organised by to confirm fitness, vet and On the other hand, he I, formerly known and addressed I, formerly known and addressed I, formerly known and ad- check all the prospective said regulations were either the Nigeriatravelsmart.com, as Aliu Rashidat Abolore now as Miss Izukah Chinyere Joy now dressed as Miss. Omowumi Ahmed Lawan Kuru, man- owners of the company, weak and lack the cour- Bamidele Ayoola now wish to wish to be known and addressed wish to be known and addressed aging director, Asset Man- conduct routine and deep age to enforce compliance be known and addressed as Mrs. agement Corporation of examination of the opera- based on current standards as Aliu Rashidat Anike. All for- as Mrs Ajayi Chinyere Joy. All Omowumi Bamidele Ezenwanne. Nigeria (AMCON), said in a tions and books of the air- or need more fine tuning to mer documents remain valid. former documents remain valid. All former documents remain valid. line to ensure compliance ensure effectiveness of the bid to implement corporate General Public please take note. General Public please take note. General Public please take note. to set standards. airline. Wednesday 10 October 2018 BUSINESS DAY A1 A2 BUSINESS DAY C002D5556 Wednesday 10 October 2018 NEWS Reforms: Edo not owing workers’ Nigeria downgrades pile as IMF cuts growth forecast salaries, BudgIT survey shows HOPE MOSES-ASHIKE, Indonesia & LOLADE AKINMURELE … cuts global growth forecast for first time since July 2016 n independent ment of workers’ salaries, cut its growth forecast to 1.7 second quarter of 2018 from cut its global growth forecast survey by civic and “civil servants can tes- n the same week the percent from 2.1 percent, 1.95 percent in the first quar- for this year to 3.7 percent start-up, BudgIT, tify that they get their sala- World Bank down- blaming “weak consumer ter. from 3.9 percent last April. has shown that ries before the 26th of every graded its economic EdoA State does not owe month.” demand, a rising cost envi- The agriculture sector “At the time of our last growth outlook for Ni- ronment, and a slump in ag- growth almost halved in Q2, World Economic Outlook in workers’ salaries. According to Osagie, “The geria, the International riculture output.” expanding only 1.91 percent April, the world economy The survey, conducted verdict of the survey by the Monetary Fund (IMF) fol- I These factors are tipped in Q2 from 3 percent in the broad-based momentum across Nigeria’s 36 states, independent researchers lowed, trimming its growth to offset the impact of higher first quarter, as crop produc- led us to project a 3.9 per- showed state governments once again affirms what is al- expectations for Africa’s oil prices, which has climbed tion slipped to 1.49 percent cent growth rate for both this that currently owe out- ready known by all. It goes to largest economy to 1.9 per- to a four-year high of over to 3.45 percent, according to year and next,” IMF Chief standing workers’ salaries show everyone what workers cent from 2.1 percent last $80 per barrel this month. NBS data. Economist Maurice Obst- in the education and health in Edo enjoy and the fact that April. Growth of 1.9 percent “The economic man- feld told reporters Tuesday sectors, secretariats as well we are indeed committed to Herder-farmer clashes in this year means average in- agers need to implement in Bali, Indonesia, as he ex- as backlog of pension. the welfare of workers.” Northern Nigeria, which dis- comes in Nigeria will con- growth enhancing policies plained that developments The survey, tagged State He said that the ability rupted crop production and tract for the fourth straight in the country that will lead since then makes the earlier of States: 2018 Sub-National to pay workers as and when led to the slowest growth in year, as population growth to economic development,” forecast overoptimistic. Salary Survey, which is valid due is the result of the fru- agriculture in two decades, has consistently eclipsed said Ayodele Akinwunmi, “Rather than rising, as of September 24, 2018, gal, time-tested resource was fingered as the main economic growth, according head of research at FSDH growth has plateaued at 3.7 showed that the Governor management strategy driver of the downgrade, as to data compiled by Busi- Merchant bank. percent,” Obstfeld said. Godwin Obaseki-led ad- adopted by Governor God- the IMF joined the World ness Day. The IMF expects In a dampener on inves- “There are clouds on the ministration does not owe win Obaseki in managing Bank in cutting its growth the trend to last another four tor sentiment, the Interna- horizon. Growth has proven salaries due school teach- the state’s resources. outlook for Nigeria. years. tional Monetary Fund also to be less balanced than we ers, midwives in govern- Osagie said, “The state The World Bank, this While the country’s pop- downgraded its global eco- had hoped. Not only have ment hospitals and secre- government has been able month, cut Nigeria’s eco- ulation rate has averaged 3 nomic growth projections some downside risks that tariat workers. to meet her statutory finan- nomic growth expectations percent in the past decade, for the first time since July the last world economic In a statement, Crusoe cial obligation to workers as for the year to 1.9 percent economic growth has been 2016. outlook identified been re- Osagie, special adviser to a result of her efficient- fi from an initial forecast of below 2.5 percent since Citing escalating trade alized, mother likelihood the Governor on Media and nancial management prin- 2.1 percent, also citing slug- 2015. Despite a year-on- tensions and stresses in of further negative shocks Communication Strategy, ciple. We are happy that gish agricultural output. Lo- year increase, the economy emerging markets, the to our growth forecast has notes the survey confirms other people are also ac- cal investment bank, Vetiva, slowed to 1.5 percent in the Washington based lender risen,” Obstfeld added. the state government’s knowledging this with sur- stance on the early pay- veys like this.” Pension fund assets rise to N8.33trn in August CYNTHIA IKWUETOGHU nancing Company (NMRC) and the Federal Mortgage ummary of Pension Bank of Nigeria (FMBN) Fund Assets released had N10.91 billion, Sukuk by National Pen- bonds had N53.03 billion sion Commission and Green bond had N6.95 S(PENCOM) states that the billion. total pension assets rose six Local Money Market se- months in a row to hit N8.33 curities followed behind with trillion as of August 2018. an investment of N965.84 The assets rose by 0.13 billion, representing about percent from N8.32 trillion 11.6 percent of the total pen- in July 2018 with 4.22 trillion sion assets and consisting of invested in Federal Govern- Banks with N849.09 billion ment Securities by the Pen- (10.2 percent) and Commer- sion Fund Administrators cial papers with N116.75 bil- (PFAs). The investment rep- lion (1.4%). resented 69.3 percent of the Domestic ordinary total pension assets. shares came third adding A breakdown of invest- N630.25 billion or 7.6 per- ments in FGN securities in- cent weight on total assets. dicated that FGN bonds had The local ordinary shares N4.22 trillion, treasury bills fell by 7.2 percent from its L-R: Tony Anonyai, executive director/co-CEO, Planet Capital Limited; Tumi Sekoni, associate executive director, FMDQ OTC had approximately N1.49 figure in July while foreign Securities Exchange; Andrew Otike-Odibi, MD/CEO, C&I Leasing plc, and Efe Akhigbe, executive director/co-CEO, Planet Capital trillion, Agency bond like ordinary shares rose by 0.8 Limited, at the C&I Leasing plc Bond Listing Ceremony held at FMDQ OTC Securities Exchange, Exchange Place in Lagos. the Nigeria Mortgage Refi- percent to N63.95 billion. Innovation in energy storage wins World Mental Health Day: Obaseki proffers multi-sectoral NLNG’s $100,000 Science Prize partnership on treatment, decries stigma FRANK UZUEGBUNAM assistant professor in the In- of electric power from renew- do State governor, health problems. This at- tor. We have commenced organic Chemistry and Ca- able energy sources and for Godwin Obaseki, titude further compounds the construction of primary he Advisory Board talysis group of the Debye explosion prevention in high has proffered aefforts by governments, ex- health centres across the of the Nigeria Prize Institute for Nanomaterials voltage power transformers” more robust part- perts and other stakehold- state to reach all Edo people for Science Tuesday Science, Utrecht Univer- is a new type of energy storage Enership involving state ac- ers at designing products and residents irrespective announced “Nano- sity in The Netherlands. He with implications on renew- tors, the organised private for the treatment of patients of where they reside. Tstructured metal hydrides for is the recipient of the pres- able energy development. sector (OPS), donor agen- and reintegrating them into “The Benin Specialist the storage of electric power tigious KNCV (The Royal The work also contributes to cies, research institutes, the society,” he said. Hospital will be open to from renewable energy sourc- Dutch Chemical Association) surmounting challenges in charities and governments, Obaseki explained that offer specialist care to pa- es and for explosion preven- Van Arkel best PhD thesis Nigeria around power trans- in the treatment of mental people with mental health tients before the end of the tion in high voltage power (2012/2013) award, and the formers explosions due to illnesses. problems deserve our love, year and we have received transformers,” a work by chair of the 2013 Gordon Re- degradation of insulators in Obaseki made the sub- care, understanding and letters of intent from ex- Peter Ngene, as the winning search Seminar (GRS) on Met- the transformers. mission in commemoration support and urged thought perts in the health sector, work for this year’s The Nige- al-Hydrogen system in Italy. Reacting to the verdict, of the celebration of World and opinion leaders in com- who want to partner with ria Prize for Science, worth a He was also recently rec- the manager, corporate com- Mental Health Day, marked munities across the globe to us to ensure that our health $100,000. ognised as one of African munications and Public Af- on October 10, each year. lead the fight against exclu- system can meet the needs The announcement leading young scientists by fairs Department at NLNG, The governor decried sion, stigma and prejudices of our people,” he added. was made by the chair- the award of the prestigious Andy Odeh, said “With each the attitude of many socie- held against sufferers of Celebrating the 2018 man of the Advisory Board NEF (Next Einstein Forum) passing year, our belief grows ties towards people having mental illnesses. World Mental Health Day, for the Science Prize and fellowship by the Chairman stronger that there is a place mental health problems “As a government, we the World Health Organi- a science prize laureate, of the African Union (Presi- for The Nigeria Prize for Sci- and called for a change. have delineated our health sation (WHO), urges regu- Akpoveta Susu at a press dent Paul Kagame). ence in the quest to develop “Across the globe, some system for easy apprecia- lar checks for symptoms of conference in Lagos. The “Nanostructuredour country through science societies still discriminate tion of the roles required by mental illnesses beginning The winner, Ngene, is an metal hydrides for the storage research and technology. “ against people with mental all stakeholders in the sec- at a young age. Wednesday 10 October 2018 C002D5556 BUSINESS DAY A3 NEWS Nigeria may benefit from petrochemicals boom on strategic private investments STEPHEN ONYEKWELU 2050, adding nearly 7 mil- feedstock, poor mainte- lion barrels of oil a day by nance and lack of technical etrochemicals then. They are also poised and managerial capacity. are set to drive to consume an additional One of the plants at El- growth in world 56 billion cubic metres eme was sold to Indorama oil demand, and (bcm) of natural gas by Petrochemicals in 2006 Nigeria can ben- 2030, and 83bcm by 2050. and now operates at an an- Pefit in the long run if it puts “Our economies are nual average availability of its acts together and en- heavily dependent on pet- 99 per cent, having newly- courages strategic private rochemicals, but the sec- built largest single-train sector investment into its tor receives far less atten- fertilizer plant in the world. petrochemicals industry. tion than it deserves,” Fatih Indorama today is building Petrochemicals are Birol, the IEA’s executive a petrochemical hub in Af- components derived from director said. “Petrochemi- rica at Eleme. oil and gas that are used in cals are one of the key blind “Nigeria spends about daily products such as plas- spots in the global energy $11 billion on imported tics, fertilizers, packaging, debate, especially given petrochemical related clothing, digital devices, the influence they will ex- products in a year. You can medical equipment, deter- ert on future energy trends. understand why Dangote gents and tyres. They are In fact, our analysis shows Industries is building one becoming the largest driv- they will have a greater in- of the largest petrochemi- ers of global oil demand, fluence on the future of oil cal complexes in the world in front of cars, planes demand than cars, trucks in Nigeria” Emmanuel Any- and trucks, according to a and aviation.” aeto, director/CEO of Cali- major study by the Paris- Nigeria built three pet- fornia-based Integrated Gas based International Energy rochemical plants in El- and Energy Services, LLC Agency (IEA), ‘The Future eme, Warri and Kaduna. said in an interview with a of Petrochemicals released These plants have com- Nigerian national daily. October 5. bined capacity to produce Demand for plastics, the The Future of Petro- 240,000 metric tons of pol- key driver for petrochemi- chemicals is part of a new yethylene; 130,000 metric cals from an energy per- IEA series shining a light on tons of polypropylene; and spective has outpaced all “blind spots” of the global 18,000 metric tons of car- other bulk materials (such energy system; issues that bon black per annum. as steel, aluminium, or ce- are critical to the evolution However, a few years of ment), nearly doubling of the energy sector but operation and all the plants since 2000. Advanced econ- that receive less attention became moribund. A re- omies currently use up to 20 than they deserve. search conducted by the times more plastic and up Petrochemicals are set University of Benin, Nige- to 10 times more fertiliser to account for more than a ria, identified the reasons than developing economies third of the growth in world for collapse of the petro- on a per capita basis, under- oil demand to 2030, and chemical plants to include scoring the huge potential nearly half the growth to irregular importation of for global growth. Benin Monarch proposes satellite town of 24-hour power supply … as heads of government, diplomatic corps, traditional rulers, others to grace book launch IDRIS UMAR MOMKH, Benin the country would grace the and outside Nigeria on Be- book launch scheduled to nin history, 598 pages of s part of plans take place October 20, 2018. meticulously researched ar- to boost Benin Uhomoibhi, former ticles and 441 iconic images. cultural herit- Nigeria ambassador to On his part, Gregory age, the Benin Switzerland and perma- Akenzua, the Onogie of Monarch,A Oba Ewuare 11, nent representative to the Evbuobanosa and Abudu, has proposed to establish United Nations office -Ge who commended the a satellite town at Ugoneki neva, also disclosed that scholars for the book, said in Uhunmwode Local Gov- members of the diplomatic the book was a new di- ernment Area of Edo State. corps, captains of indus- mension to other previous Martin Uhomoibhi, try, notable curators and books personally written chairman, Global Book archivists, distinguished by Oba Erediauwa, as the Presentation Commit- academics, as well as his- latest book was bigger and tee, who disclosed this at tory and art aficionados voluminous than the previ- a press conference on the from across the world were ous ones. public presentation of the expected at the event. He further said that the Benin Red Book, titled, While noting that the British Museum and other “Benin Monarchy,” an an- occasion promises to be an notable national and inter- thology of Benin history in epochal one, he added that national organisations had Benin City on Monday, said it would also herald the un- indicated interest to also the satellite town would veiling of the culmination of join in the book launch in provide 24 hours power the Oba’s committed efforts Benin City and other states. supply to the people. to uphold Bini heritage and Edo State commissioner Uhomoibhi said the sat- effectuate the regeneration for arts, culture and Diaspo- ellite town at Ugoneki village of the unique essence of the ra, Osaze Osemwegie-Ero, along Benin- Agbor road Benin kingdom in the con- commended Wells Crimson would also have the basic in- sciousness of the world. Limited, publisher of the frastructure such as security, He also said the book, book, under the auspices water, among others. which weighs about 6.8 of the Oba Ewuare Foun- He said heads of gov- kilograms, had contribu- dation in collaboration ernment at national and tion from 18 scholars, some with the Benin Traditional sub-national levels as well of them the most highly re- Council for further boosting as traditional rulers across spected authorities within the Benin cultural heritage. A4 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 BUSINESS DAY A5 A6 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 BUSINESS DAY A7 INSIGHT Impact of the economy and poverty on the ease of doing business

Nigeria had less people living in Poverty. In 1981 approximately 47% out of the ....Why government must look beyond just regulations population of 75.7 million people lived in poverty representing 35.6m people, Per capita is not increasing as it should nothings at all but also affected the faiths by year 2000 the percentage had in- ROMAN O. OSEGHALE be and population is increasing, it ulti- of the haves. The North East Nigeria creased to 65% of the 122.3m people mately makes the country poorer and Recovery and Peace Building Assess- bringing the total headcount of people s long as Poverty, Injustice standard of living starts to fall. ment (RPBA) team had announced in living in poverty to 79.5m people. and Gross Inequality persist While less peaceful countries expe- early 2016 that the impact of the conflict By 2010, percentage living in pov- “ in our world, none of us rience economic stagnation, GDP per in the region had cost US$9 billion and erty had further increased to 70% of the can truly rest”……Nelson capita has grown on average by just one also indicated that US$6 billion will be total population of 158.6m people, the Mandala. percent over the last 70 years resulting needed to perform recovery efforts in headcount living in poverty increased AWith an average of 8,000 people be- in economic factors such as high levels the region. to 111m, this means that between 1981 ing added to Extreme Poverty daily in of poverty, unemployment, and infla- Even as Nigeria declares war on and 2010, a total of 75.4m had been Nigeria according to the World Poverty tion which are major risk factors for terror, we must not fail to understand added to poverty. The Percentage living clock, and Nigeria’s subsequent move both political unrest and insecurity. the deeper cause of the instability, in Poverty has remained at 70% ever 24 points up the ladder on The Ease As the low peace countries experience the truth is that the increased military since while population continues to of Doing Business index from 169 in poor economic performance it leaves surveillance and expenditure will not increase thereby increasing the head- 2016 to 145 in 2017, Nigeria must look them more vulnerable to political solve the problem unless we address count of people living in poverty, by the deeper and beyond the regulatory instability and conflicts the very fac- the fundamental cause. Had Nigeria end of 2015, headcount had increased regime on The Ease of Doing Business tors the multinational companies list invested the increased expenditures it is to 126.8m out of a population of 181.2m. and address the major factors that at- as critical factor before investing in an using today on military surveillance and The worrisome part is that GDP has tract Foreign Investors into emerging economy, and according to the Global hardware to fight insurgencies and ter- increased from $61.1 bn in 1981 and economies if the country must benefit Peace Index, Nigeria falls within the ror on developing the people, the story reaching an all-time high of $568.5 bn in from the advantages of Foreign Direct very low peaceful countries. would have been different. 2014, an increase of $507.4 bn (830.4%), Investments. Countries with higher level of peace While carrying out the research, within the same period Nigeria added Foreign Direct Investments have have lower interest rates which ulti- there were two major findings amongst 87.9m people to poverty and by 2016 different effects in an economy, which mately helps financing in the domestic countries where internal conflicts had added 94.6m people to poverty. includes important avenue for im- market attracting Foreign Investors degenerates into terror afflicted zones, Today Nigeria can be said to be in provement in the economy, increase compared to countries that have low they were low education expenditure a situation called the Poverty Trap….A mechanism which makes it very diffi- in competitiveness, regional devel- levels of peace with higher interest and high poverty rate. On January 14th, points, from 169 to 145 but the question cult for people to escape poverty. A pov- make such a giant stride?...... it was leading to deeper Poverty, this is why the opment, a major source of Foreign rates which makes domestic financing 2011, the Arab spring began in Tunisia is will it be sustainable with the increas- erty trap is created when an economic because the Asian countries changed number of Extreme Poverty in Nigeria Capital Inflow which can help grow expensive and in most cases leads to which later spread to other Arab coun- ing Poverty and Extreme Poverty?. system requires a significant amount their economic model in the mid-80’s will continue to increase threatening the economy, strengthen the local cur- higher overheads and business fail- tries igniting mass protests, but the root If we must attract Foreign Investors of various forms of capital in order to by investing in Human Capital Devel- peace and limiting foreign investments. rency, create employment, and most ures. Inflation is on average three times cause were: Economic Mismanage- we have got to reduce Poverty and earn enough to escape poverty. When opment thereby driving Sustainable EFFECT OF INCREASING POVERTY important the transfer of technologies higher and ten times more volatile in ment, Corruption, and Increasing Pov- Extreme Poverty, only then can Nige- individuals lack this capital, they may Development, ironically from research ON THE GLOBAL PEACE INDEX AND which can help propel a country to the low peace countries than high peace erty which had reached their heights, ria guarantee security, and to reduce also find it difficult to acquire it, creating it was the same time Nigeria started TI INTERNATIONAL world stage in manufacturing, become countries and the reason why compa- today the consequences are still being invest in Nigeria still remains Political the country, the question has been why Nigeria able to positively affect the population. poverty we have got to change our Eco- a self-reinforcing cycle of poverty. reducing its investments in Human The increasing Poverty over the more competitive and further grows nies in developed economies rate low felt in places like Libya and Syria where Stability and Security. In 2017, the World has recorded economic growth over the years The Human Development Index is a com- nomic Model from a mineral resource Looking back at the economy from Capital Development. years has led to increased crime, social the economy. peace and unstable economies as high the situations have degenerated into full Bank conducted a survey to know what and poverty increasing at the same time. Today posite index of life expectancy, education, and economy by building a Sustainable 1981 to date, Nigeria has had both Reaching 5% of GDP in 1981, Nigeria unrest, and corruption in Nigeria, with While Governments around the risk zones for businesses. scale civil war with millions displaced CEO’s of multinational companies re- the Asian countries have continued to lift their per capital income, it is no surprise that the Economy which invests in Human Economic Recessions and Economic continued to reduce its Education Ex- the Social unrest leading to both state world try to woo investors into their While all these factors play a critical and thousands killed seven years after. ally want before investing in Emerging citizens out of poverty and extreme poverty index of life expectancy and education falls Capital Development, by investing in Growth with Poverty Increasing at both penditure from the mid-80’s reaching and regional instability between 2012 economy through easier regulations role, they are all linked to low peace According to the Broker, a think Economies which was published in the while recording economic growth, China is under Human Capital Development which Education it enables the people create times, so no matter what happens in the an all-time low of 0.76% (Less than 1%) and 2015 when Boko Haram insurgency in the Ease of Doing Business, the countries and studies shows that For- tank organization which carries out 2017/2018 Global Investment Competi- an example where almost 800 million has when invested in leads to higher per capita wealth and improve their standard of economy poverty continues to increase. in 1992 and it has remained below 1% unleashed terror on North-Eastern same governments must look beyond eign Direct Investment inflow are more research to help policy makers with tiveness Report, Political Stability and been lifted out of poverty from 1981 while the income and this is where Nigeria has failed living. Enhancing regulations is not As Poverty continues to increase, Crime, ever since, while it continued to treat Nigeria. The Global Peace Index which the factors of regulations and at other than two times higher in countries with better decisions makings…. “Looking at Security was top on the list with 50% opposite is happening in Nigeria. If we have woefully and hence has remained at the Low what will bring in investors but a stable Social Unrest, and Corruption will con- education as an expense rather than measures Global Peacefulness through factors which play a greater role in higher levels of peace relative to less inequality between countries essentially of the CEO’s holding it to be critically economic growth and at the same time in- Human Development quartile of the Human political and security environment will tinue to increase which can lead to both an Investment. Investing in Human 1). The level of Societal Safety and Secu- determining whether foreign investors peaceful countries and the GDP of least means looking at poverty. Research by important, and only 2% saying it is not creasing poverty then it means that something Development Index. not only attract investors but attract long State and Regional Instability. Capital Development is what helps rity, 2) Extent of Ongoing Domestic and will come or stay in their economies. peaceful countries could increase by internationally renowned experts like important at all. is wrong and we are probably operating the Countries that have sustained economic term investments and not just Foreign By 2016, China’s Economy had individuals create wealth by attaining International Conflicts, and 3) Degree of Policies must be created around these US$527 by 2030 if they were to grow at Paul Collier and Nicholas Sambanis Large domestic market size came wrong economic model. progress despite moving up the Human De- Portfolio Investments. grown from $196bn in 1981 to $11.2 their potentials and this has long been Militarisation, ranks countries annually factors and must not be tempered the same rate equivalent to the most has shown a strong link between the second with 42% as critically important, Economic Growth should lead to Econom- velopment Index have managed to reduce Most foreign investors would rather trillion in 2016 (5617%) lifting 789.5m the economic model of the western on peace. with, bipartisan politics is what will peaceful countries. wealth of a country and the probability while only 4% says it is not important at ic Development, and Economic Development their levels of violence and have escaped what invest in economies with high level of people out of poverty, India’s Economy world, this was what Nigeria did in the The number one factor which drives promote the positive results for the In his Book “The End of Poverty” of it suffering from civil war.” all. Legal and Regulatory Environment leading to better Human Development, but has been termed the conflict trap: a tendency peace, a lower return on investments grew from $196.9bn in 1981 to $2.264 60’s, 70’s, and early 80’s and why Nigeria foreign investors’ confidence in an common interest of all. While Nigeria Prof. Jeffrey Sachs states that “The For instance, in the Democratic Re- comes third with 40% saying it is criti- Nigeria has over the years recorded Economic where countries with low income, low growth, where long term sustainability of busi- trillion in 2016 (1050%) and lifted 137m was ahead of the Asian countries. Im- economy is Political Stability and Se- has concentrated on promoting the Destinies of the haves are intrinsically public of Congo, a senior officer’s salary cally important while 2% says it is not Growth that has not positively impacted Hu- and primary commodity dependence to re- ness can operate than investing in a people out of poverty, Indonesia’s mediately Nigeria stopped the Asian curity, in 2008 Nigeria ranked 118 out of Ease of Doing Business through easier linked to the faiths of the have nothing is less than $100 a month and often goes important at all. Macro-Economic Sta- man Development while creating poverty. main trapped in a cycle of violence, political country where there is low level of peace economy grew from $85.5bn in 1981 countries started their massive invest- 163 countries in the Global Peace Index, regulations, the country has neglected at all, if we didn’t know this already it unpaid. One of the commanders of a bility and Favourable Exchange Rates and economic instability. Economic instabil- and higher return on investments. This to $932.3bn in 2016 (990%) and lifted ments in Human Capital Development, by 2011 the country had moved down the most important factors that will became too clear on September 11, rebel group in the east of the country comes fourth with 34% and Available ity is a known catalyst for political upheaval is why investors tend to concentrate SUSTAINABLE DEVELOPMENT…… 78.7m out of poverty, Thailand lifted building sustainable development and the ranking to 142, and by 2013 it had attract foreign investors. 2001. The perpetrators of 9/11 might recalled the moment he was recruited: Talent and Skills of Labour comes fifth According to the International Institute for and social unrest which further reinforces their Greenfield investments in coun- out 29.4m people with an economic growth which has led to the reduction further moved down to 148, this was According to the 2018 Global Peace have been wealthy Saudis but is was “I had spent five months in a training with 28%. Sustainable Development (IISD) Sustainable poor economic performance. INCREASING tries with high level of peace and the growth of $34.8bn in 1981 to $411.7bn in of poverty across the region. the same time Boko Haram terrorized Index report, The Institute for Econom- in the collapsed poverty stricken state camp in Kinshasa with no salary. My But the interesting thing is that all development is development that meets the POVERTY…. countries ultimately benefit from tech- 2016 (1083%), Malaysia lifted out 2.93m With abysmal investment in Hu- the North-East of the country. By 2014 ics and Peace, a non-profit think tank of Afghanistan they found sucker and family was going hungry. When [Gen- the indicator sets which makes up The needs of the present without compromising In the 60’s, 70’s, and early 80’s Nigeria had nology transfers compared to countries people with an economic growth, and man Capital Development, there is no and 2015, Nigeria’s ranking reached that has authored the report for the last sanctuary. Africa is not in the front line eral Laurent] Nkunda began recruiting, I Ease of Doing Business can’t function the ability of future generations to meet their a better standard of living than most Asian with low level of peace where investors Bangladesh lifted out 24.3m people. meaningful investment in the people to 151 at the height of the insurgency, not 12 years, outlines “The Economic Im- against terror but it soon could be” saw I didn’t have any option”. Ironically, in a country that lacks peace, stability, own needs. In conclusion, it is the Economic and African countries because of the heavy are more interested in short term invest- How did the Asian countries who create wealth, and as poverty increases surprisingly Foreign Direct Investments pacts of Violence: How the use of force As at 2016, the Boko Haram insur- The Democratic Republic of Congo is and plagued by insecurity, eight of the Development that is conducted without deple- investments in Human Capital, especially ments through FPI’s and cash in on high were behind countries like Nigeria corruption continues to increase as into the country started reducing after hurts global economic output”. The gency in North-Eastern Nigeria had where 71% of the population lives in eleven indicators have to do with proce- tion of Natural Resources, it is an economic Education which most Asian countries and returns due to high interest rates and in the 60’s, 70’s, and early 80’s able to well….Poverty leads to Corruption and reaching its peak of $8.84bn in 2011 to 2018 Reports states that the Economic claimed no fewer than 20,000 lives Extreme Poverty. dures and time it will take to get things model that drives Education, Innovation, and African countries were not investing in, hence Corruption further reinforces Poverty $7.07bn in 2012 and reaching $3.13bn investments are not really beneficial Impact of Violence in 2017 was $14.8 while about 1.8 million people had While the Nigerian government may done, and a country that lacks peace Required Skills. It is then logical to conclude in 2015. to the people in the real sector of the trillion in constant Purchasing Power been displaced from their homes and enhance the regulations surrounding or stability cannot guarantee that time that we are not operating the right economic Poverty leads to corruption and economy where it would have made Parity and roughly 12.4% of global communities grounding economic ac- the Ease of Doing Business, the greater frame, the North east as an example model. corruption breeds social unrest which much impact. GDP or $1,988 per person, with Syria tivities which not only affected the have restrictions for companies coming to where when things starts to fall apart Nigeria’s economic model is wrong and leads to insecurity, it is no surprise that As Poverty and Extreme Poverty recording an Impact of 68% of its GDP, you can hardly get things done. has not created wealth over the past 37 years almost all the countries at the bottom of increases we should expect increase Afghanistan 63%, South Sudan 49%, According to our findings, Nigeria as the creation of wealth comes from em- the Transparency International Index in social unrest and insecurity in the Central African Republic 38%, Somalia has failed to focus on the major critical powering the people through investments in are the same countries at the bottom of future, and as Nigeria leads the world 30%, and Nigeria at 11% (equivalent factor which will attract Foreign Inves- Human Capital Development and helping the Global Peace Index. Almost all the in Extreme Poverty with 44.3% of its to $150.2 bn) of GDP at Purchasing tors despite its massive advantage of reduce the number of people living in Poverty countries at the bottom of the Global population and 70% living in Poverty, Power parity. population and geographical location. and Extreme Poverty and affecting the people Peace Index are the same countries on the country might just be building up The Economic Impact of Peace Over the years the country has contin- positively leading to economic progress a bet- the Global Conflict Tracker, a platform both state and regional instability in goes beyond just affecting GDP ued to witness security issues which ter human development index. Nigeria has which tracks all the major conflicts in the future repeating what happened growth, study shows that over the last has continued to plague its chances of been operating an Expense Budget since the the world and which affects The United between 2012 and 2015 and investors 70 years, GDP per capita has been attracting investors into strategic sectors Mid-80’s rather than an Investment Budget, States interests globally. will avoid investing in the economy no three times higher in highly peaceful like manufacturing. The simple truth Investment creates wealth and not expense. Since Political Stability and Security matter how good the regulations are countries compared to countries with is that as long as poverty and extreme This can be seen on the Human Develop- is the number one factor that deter- in the Ease of Doing Business and the low level of Peace. Countries with the poverty is on the rise the security chal- ment Index where the country has stayed at mines the Ease of Doing Business, the reasons why the government must look largest improvements in peace also re- lenges will not reduce. We may be able the Low Human Development Quartile since same countries dominate the bottom of beyond just regulations. corded 7 times higher per capita GDP to subdue terrorism for a while but there 1990 despite recording economic growth and the Global Ranking in the Ease of Doing growth than those that deteriorated the are willing tools and people who poverty Expansion without being able to move up to Business and are the same countries most over the last decade and would will push against their will and their very the Medium Development Quartile whereas ravaged by Poverty and Extreme Pov- Roman O. Oseghale. MSc, have added US$13.87 trillion to global own consciences. some countries have been able to move up erty. Nigerian may have succeeded in EMBA GDP had the low peaceful countries While Poverty and Extreme Poverty from Low Human Development to Medium reducing the insurgencies in the North- Head Consultant/CEO achieved GDP growth equivalent to continues to increase as a percentage of Human Development as they record economic East and moving up the global ranking IntelServe Inc. Canada highly peaceful countries. When GDP population and threatens the stability of growth, a scenario where the growth has been in the Ease of Doing Business by 24

Tile 1 of 2 (Page 1) A6 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 BUSINESS DAY A7 INSIGHT Impact of the economy and poverty on the ease of doing business

Nigeria had less people living in Poverty. In 1981 approximately 47% out of the ....Why government must look beyond just regulations population of 75.7 million people lived in poverty representing 35.6m people, Per capita is not increasing as it should nothings at all but also affected the faiths by year 2000 the percentage had in- ROMAN O. OSEGHALE be and population is increasing, it ulti- of the haves. The North East Nigeria creased to 65% of the 122.3m people mately makes the country poorer and Recovery and Peace Building Assess- bringing the total headcount of people s long as Poverty, Injustice standard of living starts to fall. ment (RPBA) team had announced in living in poverty to 79.5m people. and Gross Inequality persist While less peaceful countries expe- early 2016 that the impact of the conflict By 2010, percentage living in pov- “ in our world, none of us rience economic stagnation, GDP per in the region had cost US$9 billion and erty had further increased to 70% of the can truly rest”……Nelson capita has grown on average by just one also indicated that US$6 billion will be total population of 158.6m people, the Mandala. percent over the last 70 years resulting needed to perform recovery efforts in headcount living in poverty increased AWith an average of 8,000 people be- in economic factors such as high levels the region. to 111m, this means that between 1981 ing added to Extreme Poverty daily in of poverty, unemployment, and infla- Even as Nigeria declares war on and 2010, a total of 75.4m had been Nigeria according to the World Poverty tion which are major risk factors for terror, we must not fail to understand added to poverty. The Percentage living clock, and Nigeria’s subsequent move both political unrest and insecurity. the deeper cause of the instability, in Poverty has remained at 70% ever 24 points up the ladder on The Ease As the low peace countries experience the truth is that the increased military since while population continues to of Doing Business index from 169 in poor economic performance it leaves surveillance and expenditure will not increase thereby increasing the head- 2016 to 145 in 2017, Nigeria must look them more vulnerable to political solve the problem unless we address count of people living in poverty, by the deeper and beyond the regulatory instability and conflicts the very fac- the fundamental cause. Had Nigeria end of 2015, headcount had increased regime on The Ease of Doing Business tors the multinational companies list invested the increased expenditures it is to 126.8m out of a population of 181.2m. and address the major factors that at- as critical factor before investing in an using today on military surveillance and The worrisome part is that GDP has tract Foreign Investors into emerging economy, and according to the Global hardware to fight insurgencies and ter- increased from $61.1 bn in 1981 and economies if the country must benefit Peace Index, Nigeria falls within the ror on developing the people, the story reaching an all-time high of $568.5 bn in from the advantages of Foreign Direct very low peaceful countries. would have been different. 2014, an increase of $507.4 bn (830.4%), Investments. Countries with higher level of peace While carrying out the research, within the same period Nigeria added Foreign Direct Investments have have lower interest rates which ulti- there were two major findings amongst 87.9m people to poverty and by 2016 different effects in an economy, which mately helps financing in the domestic countries where internal conflicts had added 94.6m people to poverty. includes important avenue for im- market attracting Foreign Investors degenerates into terror afflicted zones, Today Nigeria can be said to be in provement in the economy, increase compared to countries that have low they were low education expenditure a situation called the Poverty Trap….A mechanism which makes it very diffi- in competitiveness, regional devel- levels of peace with higher interest and high poverty rate. On January 14th, points, from 169 to 145 but the question cult for people to escape poverty. A pov- make such a giant stride?...... it was leading to deeper Poverty, this is why the opment, a major source of Foreign rates which makes domestic financing 2011, the Arab spring began in Tunisia is will it be sustainable with the increas- erty trap is created when an economic because the Asian countries changed number of Extreme Poverty in Nigeria Capital Inflow which can help grow expensive and in most cases leads to which later spread to other Arab coun- ing Poverty and Extreme Poverty?. system requires a significant amount their economic model in the mid-80’s will continue to increase threatening the economy, strengthen the local cur- higher overheads and business fail- tries igniting mass protests, but the root If we must attract Foreign Investors of various forms of capital in order to by investing in Human Capital Devel- peace and limiting foreign investments. rency, create employment, and most ures. Inflation is on average three times cause were: Economic Mismanage- we have got to reduce Poverty and earn enough to escape poverty. When opment thereby driving Sustainable EFFECT OF INCREASING POVERTY important the transfer of technologies higher and ten times more volatile in ment, Corruption, and Increasing Pov- Extreme Poverty, only then can Nige- individuals lack this capital, they may Development, ironically from research ON THE GLOBAL PEACE INDEX AND which can help propel a country to the low peace countries than high peace erty which had reached their heights, ria guarantee security, and to reduce also find it difficult to acquire it, creating it was the same time Nigeria started TI INTERNATIONAL world stage in manufacturing, become countries and the reason why compa- today the consequences are still being invest in Nigeria still remains Political the country, the question has been why Nigeria able to positively affect the population. poverty we have got to change our Eco- a self-reinforcing cycle of poverty. reducing its investments in Human The increasing Poverty over the more competitive and further grows nies in developed economies rate low felt in places like Libya and Syria where Stability and Security. In 2017, the World has recorded economic growth over the years The Human Development Index is a com- nomic Model from a mineral resource Looking back at the economy from Capital Development. years has led to increased crime, social the economy. peace and unstable economies as high the situations have degenerated into full Bank conducted a survey to know what and poverty increasing at the same time. Today posite index of life expectancy, education, and economy by building a Sustainable 1981 to date, Nigeria has had both Reaching 5% of GDP in 1981, Nigeria unrest, and corruption in Nigeria, with While Governments around the risk zones for businesses. scale civil war with millions displaced CEO’s of multinational companies re- the Asian countries have continued to lift their per capital income, it is no surprise that the Economy which invests in Human Economic Recessions and Economic continued to reduce its Education Ex- the Social unrest leading to both state world try to woo investors into their While all these factors play a critical and thousands killed seven years after. ally want before investing in Emerging citizens out of poverty and extreme poverty index of life expectancy and education falls Capital Development, by investing in Growth with Poverty Increasing at both penditure from the mid-80’s reaching and regional instability between 2012 economy through easier regulations role, they are all linked to low peace According to the Broker, a think Economies which was published in the while recording economic growth, China is under Human Capital Development which Education it enables the people create times, so no matter what happens in the an all-time low of 0.76% (Less than 1%) and 2015 when Boko Haram insurgency in the Ease of Doing Business, the countries and studies shows that For- tank organization which carries out 2017/2018 Global Investment Competi- an example where almost 800 million has when invested in leads to higher per capita wealth and improve their standard of economy poverty continues to increase. in 1992 and it has remained below 1% unleashed terror on North-Eastern same governments must look beyond eign Direct Investment inflow are more research to help policy makers with tiveness Report, Political Stability and been lifted out of poverty from 1981 while the income and this is where Nigeria has failed living. Enhancing regulations is not As Poverty continues to increase, Crime, ever since, while it continued to treat Nigeria. The Global Peace Index which the factors of regulations and at other than two times higher in countries with better decisions makings…. “Looking at Security was top on the list with 50% opposite is happening in Nigeria. If we have woefully and hence has remained at the Low what will bring in investors but a stable Social Unrest, and Corruption will con- education as an expense rather than measures Global Peacefulness through factors which play a greater role in higher levels of peace relative to less inequality between countries essentially of the CEO’s holding it to be critically economic growth and at the same time in- Human Development quartile of the Human political and security environment will tinue to increase which can lead to both an Investment. Investing in Human 1). The level of Societal Safety and Secu- determining whether foreign investors peaceful countries and the GDP of least means looking at poverty. Research by important, and only 2% saying it is not creasing poverty then it means that something Development Index. not only attract investors but attract long State and Regional Instability. Capital Development is what helps rity, 2) Extent of Ongoing Domestic and will come or stay in their economies. peaceful countries could increase by internationally renowned experts like important at all. is wrong and we are probably operating the Countries that have sustained economic term investments and not just Foreign By 2016, China’s Economy had individuals create wealth by attaining International Conflicts, and 3) Degree of Policies must be created around these US$527 by 2030 if they were to grow at Paul Collier and Nicholas Sambanis Large domestic market size came wrong economic model. progress despite moving up the Human De- Portfolio Investments. grown from $196bn in 1981 to $11.2 their potentials and this has long been Militarisation, ranks countries annually factors and must not be tempered the same rate equivalent to the most has shown a strong link between the second with 42% as critically important, Economic Growth should lead to Econom- velopment Index have managed to reduce Most foreign investors would rather trillion in 2016 (5617%) lifting 789.5m the economic model of the western on peace. with, bipartisan politics is what will peaceful countries. wealth of a country and the probability while only 4% says it is not important at ic Development, and Economic Development their levels of violence and have escaped what invest in economies with high level of people out of poverty, India’s Economy world, this was what Nigeria did in the The number one factor which drives promote the positive results for the In his Book “The End of Poverty” of it suffering from civil war.” all. Legal and Regulatory Environment leading to better Human Development, but has been termed the conflict trap: a tendency peace, a lower return on investments grew from $196.9bn in 1981 to $2.264 60’s, 70’s, and early 80’s and why Nigeria foreign investors’ confidence in an common interest of all. While Nigeria Prof. Jeffrey Sachs states that “The For instance, in the Democratic Re- comes third with 40% saying it is criti- Nigeria has over the years recorded Economic where countries with low income, low growth, where long term sustainability of busi- trillion in 2016 (1050%) and lifted 137m was ahead of the Asian countries. Im- economy is Political Stability and Se- has concentrated on promoting the Destinies of the haves are intrinsically public of Congo, a senior officer’s salary cally important while 2% says it is not Growth that has not positively impacted Hu- and primary commodity dependence to re- ness can operate than investing in a people out of poverty, Indonesia’s mediately Nigeria stopped the Asian curity, in 2008 Nigeria ranked 118 out of Ease of Doing Business through easier linked to the faiths of the have nothing is less than $100 a month and often goes important at all. Macro-Economic Sta- man Development while creating poverty. main trapped in a cycle of violence, political country where there is low level of peace economy grew from $85.5bn in 1981 countries started their massive invest- 163 countries in the Global Peace Index, regulations, the country has neglected at all, if we didn’t know this already it unpaid. One of the commanders of a bility and Favourable Exchange Rates and economic instability. Economic instabil- and higher return on investments. This to $932.3bn in 2016 (990%) and lifted ments in Human Capital Development, by 2011 the country had moved down the most important factors that will became too clear on September 11, rebel group in the east of the country comes fourth with 34% and Available ity is a known catalyst for political upheaval is why investors tend to concentrate SUSTAINABLE DEVELOPMENT…… 78.7m out of poverty, Thailand lifted building sustainable development and the ranking to 142, and by 2013 it had attract foreign investors. 2001. The perpetrators of 9/11 might recalled the moment he was recruited: Talent and Skills of Labour comes fifth According to the International Institute for and social unrest which further reinforces their Greenfield investments in coun- out 29.4m people with an economic growth which has led to the reduction further moved down to 148, this was According to the 2018 Global Peace have been wealthy Saudis but is was “I had spent five months in a training with 28%. Sustainable Development (IISD) Sustainable poor economic performance. INCREASING tries with high level of peace and the growth of $34.8bn in 1981 to $411.7bn in of poverty across the region. the same time Boko Haram terrorized Index report, The Institute for Econom- in the collapsed poverty stricken state camp in Kinshasa with no salary. My But the interesting thing is that all development is development that meets the POVERTY…. countries ultimately benefit from tech- 2016 (1083%), Malaysia lifted out 2.93m With abysmal investment in Hu- the North-East of the country. By 2014 ics and Peace, a non-profit think tank of Afghanistan they found sucker and family was going hungry. When [Gen- the indicator sets which makes up The needs of the present without compromising In the 60’s, 70’s, and early 80’s Nigeria had nology transfers compared to countries people with an economic growth, and man Capital Development, there is no and 2015, Nigeria’s ranking reached that has authored the report for the last sanctuary. Africa is not in the front line eral Laurent] Nkunda began recruiting, I Ease of Doing Business can’t function the ability of future generations to meet their a better standard of living than most Asian with low level of peace where investors Bangladesh lifted out 24.3m people. meaningful investment in the people to 151 at the height of the insurgency, not 12 years, outlines “The Economic Im- against terror but it soon could be” saw I didn’t have any option”. Ironically, in a country that lacks peace, stability, own needs. In conclusion, it is the Economic and African countries because of the heavy are more interested in short term invest- How did the Asian countries who create wealth, and as poverty increases surprisingly Foreign Direct Investments pacts of Violence: How the use of force As at 2016, the Boko Haram insur- The Democratic Republic of Congo is and plagued by insecurity, eight of the Development that is conducted without deple- investments in Human Capital, especially ments through FPI’s and cash in on high were behind countries like Nigeria corruption continues to increase as into the country started reducing after hurts global economic output”. The gency in North-Eastern Nigeria had where 71% of the population lives in eleven indicators have to do with proce- tion of Natural Resources, it is an economic Education which most Asian countries and returns due to high interest rates and in the 60’s, 70’s, and early 80’s able to well….Poverty leads to Corruption and reaching its peak of $8.84bn in 2011 to 2018 Reports states that the Economic claimed no fewer than 20,000 lives Extreme Poverty. dures and time it will take to get things model that drives Education, Innovation, and African countries were not investing in, hence Corruption further reinforces Poverty $7.07bn in 2012 and reaching $3.13bn investments are not really beneficial Impact of Violence in 2017 was $14.8 while about 1.8 million people had While the Nigerian government may done, and a country that lacks peace Required Skills. It is then logical to conclude in 2015. to the people in the real sector of the trillion in constant Purchasing Power been displaced from their homes and enhance the regulations surrounding or stability cannot guarantee that time that we are not operating the right economic Poverty leads to corruption and economy where it would have made Parity and roughly 12.4% of global communities grounding economic ac- the Ease of Doing Business, the greater frame, the North east as an example model. corruption breeds social unrest which much impact. GDP or $1,988 per person, with Syria tivities which not only affected the have restrictions for companies coming to where when things starts to fall apart Nigeria’s economic model is wrong and leads to insecurity, it is no surprise that As Poverty and Extreme Poverty recording an Impact of 68% of its GDP, you can hardly get things done. has not created wealth over the past 37 years almost all the countries at the bottom of increases we should expect increase Afghanistan 63%, South Sudan 49%, According to our findings, Nigeria as the creation of wealth comes from em- the Transparency International Index in social unrest and insecurity in the Central African Republic 38%, Somalia has failed to focus on the major critical powering the people through investments in are the same countries at the bottom of future, and as Nigeria leads the world 30%, and Nigeria at 11% (equivalent factor which will attract Foreign Inves- Human Capital Development and helping the Global Peace Index. Almost all the in Extreme Poverty with 44.3% of its to $150.2 bn) of GDP at Purchasing tors despite its massive advantage of reduce the number of people living in Poverty countries at the bottom of the Global population and 70% living in Poverty, Power parity. population and geographical location. and Extreme Poverty and affecting the people Peace Index are the same countries on the country might just be building up The Economic Impact of Peace Over the years the country has contin- positively leading to economic progress a bet- the Global Conflict Tracker, a platform both state and regional instability in goes beyond just affecting GDP ued to witness security issues which ter human development index. Nigeria has which tracks all the major conflicts in the future repeating what happened growth, study shows that over the last has continued to plague its chances of been operating an Expense Budget since the the world and which affects The United between 2012 and 2015 and investors 70 years, GDP per capita has been attracting investors into strategic sectors Mid-80’s rather than an Investment Budget, States interests globally. will avoid investing in the economy no three times higher in highly peaceful like manufacturing. The simple truth Investment creates wealth and not expense. Since Political Stability and Security matter how good the regulations are countries compared to countries with is that as long as poverty and extreme This can be seen on the Human Develop- is the number one factor that deter- in the Ease of Doing Business and the low level of Peace. Countries with the poverty is on the rise the security chal- ment Index where the country has stayed at mines the Ease of Doing Business, the reasons why the government must look largest improvements in peace also re- lenges will not reduce. We may be able the Low Human Development Quartile since same countries dominate the bottom of beyond just regulations. corded 7 times higher per capita GDP to subdue terrorism for a while but there 1990 despite recording economic growth and the Global Ranking in the Ease of Doing growth than those that deteriorated the are willing tools and people who poverty Expansion without being able to move up to Business and are the same countries most over the last decade and would will push against their will and their very the Medium Development Quartile whereas ravaged by Poverty and Extreme Pov- Roman O. Oseghale. MSc, have added US$13.87 trillion to global own consciences. some countries have been able to move up erty. Nigerian may have succeeded in EMBA GDP had the low peaceful countries While Poverty and Extreme Poverty from Low Human Development to Medium reducing the insurgencies in the North- Head Consultant/CEO achieved GDP growth equivalent to continues to increase as a percentage of Human Development as they record economic East and moving up the global ranking IntelServe Inc. Canada highly peaceful countries. When GDP population and threatens the stability of growth, a scenario where the growth has been in the Ease of Doing Business by 24

Tile 2 of 2 (Page 1) A6 BUSINESS DAY Wednesday 10 October 2018 Wednesday 10 October 2018 BUSINESS DAY A7 INSIGHT Impact of the economy and poverty on the ease of doing business

Nigeria had less people living in Poverty. In 1981 approximately 47% out of the ....Why government must look beyond just regulations population of 75.7 million people lived in poverty representing 35.6m people, Per capita is not increasing as it should nothings at all but also affected the faiths by year 2000 the percentage had in- ROMAN O. OSEGHALE be and population is increasing, it ulti- of the haves. The North East Nigeria creased to 65% of the 122.3m people mately makes the country poorer and Recovery and Peace Building Assess- bringing the total headcount of people s long as Poverty, Injustice standard of living starts to fall. ment (RPBA) team had announced in living in poverty to 79.5m people. and Gross Inequality persist While less peaceful countries expe- early 2016 that the impact of the conflict By 2010, percentage living in pov- “ in our world, none of us rience economic stagnation, GDP per in the region had cost US$9 billion and erty had further increased to 70% of the can truly rest”……Nelson capita has grown on average by just one also indicated that US$6 billion will be total population of 158.6m people, the Mandala. percent over the last 70 years resulting needed to perform recovery efforts in headcount living in poverty increased AWith an average of 8,000 people be- in economic factors such as high levels the region. to 111m, this means that between 1981 ing added to Extreme Poverty daily in of poverty, unemployment, and infla- Even as Nigeria declares war on and 2010, a total of 75.4m had been Nigeria according to the World Poverty tion which are major risk factors for terror, we must not fail to understand added to poverty. The Percentage living clock, and Nigeria’s subsequent move both political unrest and insecurity. the deeper cause of the instability, in Poverty has remained at 70% ever 24 points up the ladder on The Ease As the low peace countries experience the truth is that the increased military since while population continues to of Doing Business index from 169 in poor economic performance it leaves surveillance and expenditure will not increase thereby increasing the head- 2016 to 145 in 2017, Nigeria must look them more vulnerable to political solve the problem unless we address count of people living in poverty, by the deeper and beyond the regulatory instability and conflicts the very fac- the fundamental cause. Had Nigeria end of 2015, headcount had increased regime on The Ease of Doing Business tors the multinational companies list invested the increased expenditures it is to 126.8m out of a population of 181.2m. and address the major factors that at- as critical factor before investing in an using today on military surveillance and The worrisome part is that GDP has tract Foreign Investors into emerging economy, and according to the Global hardware to fight insurgencies and ter- increased from $61.1 bn in 1981 and economies if the country must benefit Peace Index, Nigeria falls within the ror on developing the people, the story reaching an all-time high of $568.5 bn in from the advantages of Foreign Direct very low peaceful countries. would have been different. 2014, an increase of $507.4 bn (830.4%), Investments. Countries with higher level of peace While carrying out the research, within the same period Nigeria added Foreign Direct Investments have have lower interest rates which ulti- there were two major findings amongst 87.9m people to poverty and by 2016 different effects in an economy, which mately helps financing in the domestic countries where internal conflicts had added 94.6m people to poverty. includes important avenue for im- market attracting Foreign Investors degenerates into terror afflicted zones, Today Nigeria can be said to be in provement in the economy, increase compared to countries that have low they were low education expenditure a situation called the Poverty Trap….A mechanism which makes it very diffi- in competitiveness, regional devel- levels of peace with higher interest and high poverty rate. On January 14th, points, from 169 to 145 but the question cult for people to escape poverty. A pov- make such a giant stride?...... it was leading to deeper Poverty, this is why the opment, a major source of Foreign rates which makes domestic financing 2011, the Arab spring began in Tunisia is will it be sustainable with the increas- erty trap is created when an economic because the Asian countries changed number of Extreme Poverty in Nigeria Capital Inflow which can help grow expensive and in most cases leads to which later spread to other Arab coun- ing Poverty and Extreme Poverty?. system requires a significant amount their economic model in the mid-80’s will continue to increase threatening the economy, strengthen the local cur- higher overheads and business fail- tries igniting mass protests, but the root If we must attract Foreign Investors of various forms of capital in order to by investing in Human Capital Devel- peace and limiting foreign investments. rency, create employment, and most ures. Inflation is on average three times cause were: Economic Mismanage- we have got to reduce Poverty and earn enough to escape poverty. When opment thereby driving Sustainable EFFECT OF INCREASING POVERTY important the transfer of technologies higher and ten times more volatile in ment, Corruption, and Increasing Pov- Extreme Poverty, only then can Nige- individuals lack this capital, they may Development, ironically from research ON THE GLOBAL PEACE INDEX AND which can help propel a country to the low peace countries than high peace erty which had reached their heights, ria guarantee security, and to reduce also find it difficult to acquire it, creating it was the same time Nigeria started TI INTERNATIONAL world stage in manufacturing, become countries and the reason why compa- today the consequences are still being invest in Nigeria still remains Political the country, the question has been why Nigeria able to positively affect the population. poverty we have got to change our Eco- a self-reinforcing cycle of poverty. reducing its investments in Human The increasing Poverty over the more competitive and further grows nies in developed economies rate low felt in places like Libya and Syria where Stability and Security. In 2017, the World has recorded economic growth over the years The Human Development Index is a com- nomic Model from a mineral resource Looking back at the economy from Capital Development. years has led to increased crime, social the economy. peace and unstable economies as high the situations have degenerated into full Bank conducted a survey to know what and poverty increasing at the same time. Today posite index of life expectancy, education, and economy by building a Sustainable 1981 to date, Nigeria has had both Reaching 5% of GDP in 1981, Nigeria unrest, and corruption in Nigeria, with While Governments around the risk zones for businesses. scale civil war with millions displaced CEO’s of multinational companies re- the Asian countries have continued to lift their per capital income, it is no surprise that the Economy which invests in Human Economic Recessions and Economic continued to reduce its Education Ex- the Social unrest leading to both state world try to woo investors into their While all these factors play a critical and thousands killed seven years after. ally want before investing in Emerging citizens out of poverty and extreme poverty index of life expectancy and education falls Capital Development, by investing in Growth with Poverty Increasing at both penditure from the mid-80’s reaching and regional instability between 2012 economy through easier regulations role, they are all linked to low peace According to the Broker, a think Economies which was published in the while recording economic growth, China is under Human Capital Development which Education it enables the people create times, so no matter what happens in the an all-time low of 0.76% (Less than 1%) and 2015 when Boko Haram insurgency in the Ease of Doing Business, the countries and studies shows that For- tank organization which carries out 2017/2018 Global Investment Competi- an example where almost 800 million has when invested in leads to higher per capita wealth and improve their standard of economy poverty continues to increase. in 1992 and it has remained below 1% unleashed terror on North-Eastern same governments must look beyond eign Direct Investment inflow are more research to help policy makers with tiveness Report, Political Stability and been lifted out of poverty from 1981 while the income and this is where Nigeria has failed living. Enhancing regulations is not As Poverty continues to increase, Crime, ever since, while it continued to treat Nigeria. The Global Peace Index which the factors of regulations and at other than two times higher in countries with better decisions makings…. “Looking at Security was top on the list with 50% opposite is happening in Nigeria. If we have woefully and hence has remained at the Low what will bring in investors but a stable Social Unrest, and Corruption will con- education as an expense rather than measures Global Peacefulness through factors which play a greater role in higher levels of peace relative to less inequality between countries essentially of the CEO’s holding it to be critically economic growth and at the same time in- Human Development quartile of the Human political and security environment will tinue to increase which can lead to both an Investment. Investing in Human 1). The level of Societal Safety and Secu- determining whether foreign investors peaceful countries and the GDP of least means looking at poverty. Research by important, and only 2% saying it is not creasing poverty then it means that something Development Index. not only attract investors but attract long State and Regional Instability. Capital Development is what helps rity, 2) Extent of Ongoing Domestic and will come or stay in their economies. peaceful countries could increase by internationally renowned experts like important at all. is wrong and we are probably operating the Countries that have sustained economic term investments and not just Foreign By 2016, China’s Economy had individuals create wealth by attaining International Conflicts, and 3) Degree of Policies must be created around these US$527 by 2030 if they were to grow at Paul Collier and Nicholas Sambanis Large domestic market size came wrong economic model. progress despite moving up the Human De- Portfolio Investments. grown from $196bn in 1981 to $11.2 their potentials and this has long been Militarisation, ranks countries annually factors and must not be tempered the same rate equivalent to the most has shown a strong link between the second with 42% as critically important, Economic Growth should lead to Econom- velopment Index have managed to reduce Most foreign investors would rather trillion in 2016 (5617%) lifting 789.5m the economic model of the western on peace. with, bipartisan politics is what will peaceful countries. wealth of a country and the probability while only 4% says it is not important at ic Development, and Economic Development their levels of violence and have escaped what invest in economies with high level of people out of poverty, India’s Economy world, this was what Nigeria did in the The number one factor which drives promote the positive results for the In his Book “The End of Poverty” of it suffering from civil war.” all. Legal and Regulatory Environment leading to better Human Development, but has been termed the conflict trap: a tendency peace, a lower return on investments grew from $196.9bn in 1981 to $2.264 60’s, 70’s, and early 80’s and why Nigeria foreign investors’ confidence in an common interest of all. While Nigeria Prof. Jeffrey Sachs states that “The For instance, in the Democratic Re- comes third with 40% saying it is criti- Nigeria has over the years recorded Economic where countries with low income, low growth, where long term sustainability of busi- trillion in 2016 (1050%) and lifted 137m was ahead of the Asian countries. Im- economy is Political Stability and Se- has concentrated on promoting the Destinies of the haves are intrinsically public of Congo, a senior officer’s salary cally important while 2% says it is not Growth that has not positively impacted Hu- and primary commodity dependence to re- ness can operate than investing in a people out of poverty, Indonesia’s mediately Nigeria stopped the Asian curity, in 2008 Nigeria ranked 118 out of Ease of Doing Business through easier linked to the faiths of the have nothing is less than $100 a month and often goes important at all. Macro-Economic Sta- man Development while creating poverty. main trapped in a cycle of violence, political country where there is low level of peace economy grew from $85.5bn in 1981 countries started their massive invest- 163 countries in the Global Peace Index, regulations, the country has neglected at all, if we didn’t know this already it unpaid. One of the commanders of a bility and Favourable Exchange Rates and economic instability. Economic instabil- and higher return on investments. This to $932.3bn in 2016 (990%) and lifted ments in Human Capital Development, by 2011 the country had moved down the most important factors that will became too clear on September 11, rebel group in the east of the country comes fourth with 34% and Available ity is a known catalyst for political upheaval is why investors tend to concentrate SUSTAINABLE DEVELOPMENT…… 78.7m out of poverty, Thailand lifted building sustainable development and the ranking to 142, and by 2013 it had attract foreign investors. 2001. The perpetrators of 9/11 might recalled the moment he was recruited: Talent and Skills of Labour comes fifth According to the International Institute for and social unrest which further reinforces their Greenfield investments in coun- out 29.4m people with an economic growth which has led to the reduction further moved down to 148, this was According to the 2018 Global Peace have been wealthy Saudis but is was “I had spent five months in a training with 28%. Sustainable Development (IISD) Sustainable poor economic performance. INCREASING tries with high level of peace and the growth of $34.8bn in 1981 to $411.7bn in of poverty across the region. the same time Boko Haram terrorized Index report, The Institute for Econom- in the collapsed poverty stricken state camp in Kinshasa with no salary. My But the interesting thing is that all development is development that meets the POVERTY…. countries ultimately benefit from tech- 2016 (1083%), Malaysia lifted out 2.93m With abysmal investment in Hu- the North-East of the country. By 2014 ics and Peace, a non-profit think tank of Afghanistan they found sucker and family was going hungry. When [Gen- the indicator sets which makes up The needs of the present without compromising In the 60’s, 70’s, and early 80’s Nigeria had nology transfers compared to countries people with an economic growth, and man Capital Development, there is no and 2015, Nigeria’s ranking reached that has authored the report for the last sanctuary. Africa is not in the front line eral Laurent] Nkunda began recruiting, I Ease of Doing Business can’t function the ability of future generations to meet their a better standard of living than most Asian with low level of peace where investors Bangladesh lifted out 24.3m people. meaningful investment in the people to 151 at the height of the insurgency, not 12 years, outlines “The Economic Im- against terror but it soon could be” saw I didn’t have any option”. Ironically, in a country that lacks peace, stability, own needs. In conclusion, it is the Economic and African countries because of the heavy are more interested in short term invest- How did the Asian countries who create wealth, and as poverty increases surprisingly Foreign Direct Investments pacts of Violence: How the use of force As at 2016, the Boko Haram insur- The Democratic Republic of Congo is and plagued by insecurity, eight of the Development that is conducted without deple- investments in Human Capital, especially ments through FPI’s and cash in on high were behind countries like Nigeria corruption continues to increase as into the country started reducing after hurts global economic output”. The gency in North-Eastern Nigeria had where 71% of the population lives in eleven indicators have to do with proce- tion of Natural Resources, it is an economic Education which most Asian countries and returns due to high interest rates and in the 60’s, 70’s, and early 80’s able to well….Poverty leads to Corruption and reaching its peak of $8.84bn in 2011 to 2018 Reports states that the Economic claimed no fewer than 20,000 lives Extreme Poverty. dures and time it will take to get things model that drives Education, Innovation, and African countries were not investing in, hence Corruption further reinforces Poverty $7.07bn in 2012 and reaching $3.13bn investments are not really beneficial Impact of Violence in 2017 was $14.8 while about 1.8 million people had While the Nigerian government may done, and a country that lacks peace Required Skills. It is then logical to conclude in 2015. to the people in the real sector of the trillion in constant Purchasing Power been displaced from their homes and enhance the regulations surrounding or stability cannot guarantee that time that we are not operating the right economic Poverty leads to corruption and economy where it would have made Parity and roughly 12.4% of global communities grounding economic ac- the Ease of Doing Business, the greater frame, the North east as an example model. corruption breeds social unrest which much impact. GDP or $1,988 per person, with Syria tivities which not only affected the have restrictions for companies coming to where when things starts to fall apart Nigeria’s economic model is wrong and leads to insecurity, it is no surprise that As Poverty and Extreme Poverty recording an Impact of 68% of its GDP, you can hardly get things done. has not created wealth over the past 37 years almost all the countries at the bottom of increases we should expect increase Afghanistan 63%, South Sudan 49%, According to our findings, Nigeria as the creation of wealth comes from em- the Transparency International Index in social unrest and insecurity in the Central African Republic 38%, Somalia has failed to focus on the major critical powering the people through investments in are the same countries at the bottom of future, and as Nigeria leads the world 30%, and Nigeria at 11% (equivalent factor which will attract Foreign Inves- Human Capital Development and helping the Global Peace Index. Almost all the in Extreme Poverty with 44.3% of its to $150.2 bn) of GDP at Purchasing tors despite its massive advantage of reduce the number of people living in Poverty countries at the bottom of the Global population and 70% living in Poverty, Power parity. population and geographical location. and Extreme Poverty and affecting the people Peace Index are the same countries on the country might just be building up The Economic Impact of Peace Over the years the country has contin- positively leading to economic progress a bet- the Global Conflict Tracker, a platform both state and regional instability in goes beyond just affecting GDP ued to witness security issues which ter human development index. Nigeria has which tracks all the major conflicts in the future repeating what happened growth, study shows that over the last has continued to plague its chances of been operating an Expense Budget since the the world and which affects The United between 2012 and 2015 and investors 70 years, GDP per capita has been attracting investors into strategic sectors Mid-80’s rather than an Investment Budget, States interests globally. will avoid investing in the economy no three times higher in highly peaceful like manufacturing. The simple truth Investment creates wealth and not expense. Since Political Stability and Security matter how good the regulations are countries compared to countries with is that as long as poverty and extreme This can be seen on the Human Develop- is the number one factor that deter- in the Ease of Doing Business and the low level of Peace. Countries with the poverty is on the rise the security chal- ment Index where the country has stayed at mines the Ease of Doing Business, the reasons why the government must look largest improvements in peace also re- lenges will not reduce. We may be able the Low Human Development Quartile since same countries dominate the bottom of beyond just regulations. corded 7 times higher per capita GDP to subdue terrorism for a while but there 1990 despite recording economic growth and the Global Ranking in the Ease of Doing growth than those that deteriorated the are willing tools and people who poverty Expansion without being able to move up to Business and are the same countries most over the last decade and would will push against their will and their very the Medium Development Quartile whereas ravaged by Poverty and Extreme Pov- Roman O. Oseghale. MSc, have added US$13.87 trillion to global own consciences. some countries have been able to move up erty. Nigerian may have succeeded in EMBA GDP had the low peaceful countries While Poverty and Extreme Poverty from Low Human Development to Medium reducing the insurgencies in the North- Head Consultant/CEO achieved GDP growth equivalent to continues to increase as a percentage of Human Development as they record economic East and moving up the global ranking IntelServe Inc. Canada highly peaceful countries. When GDP population and threatens the stability of growth, a scenario where the growth has been in the Ease of Doing Business by 24 Wednesday 10 October 2018 A8 BUSINESS DAY C002D5556 Wednesday 10 October 2018 BUSINESS DAY A9 A10 BUSINESS DAY C002D5556 Wednesday 10 October 2018 FT World Business NewspaperFINANCIAL TIMES US threatens to block trade talks with China at G20 White House wants to list of concessions from Beijing before Trump-Xi negotiations

TOM MITCHELL AND LUCY HORNBY S officials have warned China that Donald Trump will not engage in trade talks with Xi Jinping at next month’s UG20 summit if Beijing does not pro- duce a detailed list of concessions, according to two people briefed on negotiations between the countries. The Chinese, however, say they have such a list but would not pres- ent it without some guarantee of it being received in a stable political climate in Washington, including a point person with a mandate to negotiate on behalf of the Trump administration, according to the two people. US officials have been frustrated by what they see as Beijing’s un- willingness to discuss substantive “structural issues” related to its economic and trade policies. Bei- jing has been similarly irritated by the erratic approach of the Trump administration, and the inability of US cabinet officials to negotiate binding deals. At the first round of trade talks But Mr Liu’s team has not yet Both Mr Liu and his deputy ne- The following day, the Pentagon the Chinese government was in early May, US negotiators pre- presented its detailed response to gotiator, Vice Commerce Minister released a report warning about the attempting to influence the out- sented Vice Premier Liu He with US negotiators. Chinese officials Wang Shouwen, remain reluctant consequences of Beijing’s alleged come of next month’s congres- a detailed list of more than 140 were prepared to do so at a fifth to visit Washington after a dramatic grip on military and industrial sional elections — an allegation specific demands, ranging from round of trade talks in Washington deterioration in bilateral relations. supply chains. repeated by Mr Pence last week, market access barriers to large, last month, but the discussions Chinese negotiators have instead In another reflection of escalat- without citing any evidence. long-term purchases of US energy were abruptly cancelled after Mr suggested that a US cabinet official ing tensions, Terry Branstad, the Mr Pence’s recent move to and agricultural commodities that Trump slapped tariffs on more should visit Beijing in the coming US ambassador to Beijing, has speak publicly on China issues would reduce Beijing’s large goods than half of all Chinese exports to weeks to advance the talks. been summoned by Chinese for- has officials in Beijing wonder- trade surplus with the US. the US. On Monday, Chinese foreign eign ministry officials twice over ing if he is an appropriate point In August, Chinese negotiators Officials now say that they need minister Wang Yi and US secre- recent weeks. The first dressing person after overtures to Jared indicated that they could reach China’s response well in advance tary of state Mike Pompeo traded down occurred on September 23 Kushner, Mr Trump’s son-in-law, agreement on about a third of the of the G20 summit in Buenos Aires barbs, with each blaming the other after the US government sanc- and various cabinet officials have demands relatively quickly and scheduled for November 30, in for undermining the relationship tioned a Chinese military unit failed to yield a reliable line of com- were willing to engage in discus- order to pave the way for substan- between Washington and Beijing. and its commander for buying munication to the White House. sions on another third. tive trade discussions between the The unusually testy public ex- armaments from a Russian com- China has designated top eco- The remainder, they added, two leaders. Mr Xi and Mike Pence, change came just days after Mr pany that had been blacklisted by nomic official Liu He and vice- were off-limits because of national the US vice-president, are also due Pence launched a scathing attack Washington. president Wang Qishan to deal security or other concerns. These to attend the annual Asia-Pacific on Beijing, accusing China of try- Mr Branstad was summoned with the US. But some visiting included US demands that China’s Economic Cooperation leaders’ ing to sway the outcome of the US for a second time after Mr Trump Americans worry that Mr Wang’s domestic cloud computing market summit in Papua New Guinea on midterm elections through propa- alleged, in a speech to the United discursive style will quickly exhaust be opened to foreign companies. November 18. ganda and influence operations. Nations on September 26, that Mr Trump’s attention span. Growth policies and populism threaten BoE warns EU that £41tn of derivatives at risk after Brexit global economy, IMF warns UK central bank predicts Europe will bear cost of disruption to clearing if no action taken World Economic Outlook downgrades most country forecasts for this year and next central counterparties such as LCH rise in trading costs — or an inability CAROLINE BINHAM to take action. to hedge their market exposures. CHRIS GILES at the country level — that extend he Bank of England has is- The UK government has said that EU law states that members such the momentum and raise medium- sued its starkest warning to it will authorise European clearing as banks must use authorised cen- isks are building in the global term growth for the benefit of all, Tdate that as much as £41tn houses, and give temporary permis- tral counterparties to clear deriva- economy, with growth sup- while building buffers for the next of derivatives contracts maturing sions for three years from 2019 that tives and interest-rate swaps. Rported by increasingly un- downturn”. after Brexit are at risk unless Eu- would allow financial companies to The European Central Bank esti- sustainable policies and global The fund had unusually stern ropean officials address regulatory continue with their current regula- mates EU-based groups clear 90 per co-operation undermined by na- words for the US, its largest share- uncertainty. tory authorisations. But no parallel cent of their interest-rate swaps in tionalist policies, the IMF warned holder, criticising the Trump ad- The BoE said on Tuesday that, announcement has been forthcom- the UK, with EU-based companies on Tuesday. ministration’s imposition of tariffs unless a statement is forthcoming ing from the EU. having over-the-counter derivative The fund’s comments came as it and tax cuts near the top of the from the European Commission, While regulatory bodies such as contracts with a notional value of revised down its economic forecasts economic cycle and calling for both clearing houses will have to tell their the European Securities and Mar- £69tn at UK clearing houses, an in- modestly for most countries for to be reversed. European members such as banks kets Authority have said they will creasing share of which — at £41tn this year and next in its twice yearly It warned that if Donald Trump, to move their books of businesses, enter into a series of memoranda of — will mature after March 2019, World Economic Outlook. US president, erected further trade or risk falling foul of European law. understanding with UK regulators, when the UK is due to leave the EU. Positive features that drove eco- Ultimately, the BoE said, EU those are yet to be negotiated while “Absent action by EU authorities barriers with China and imposed political discussions continue. nomic momentum in 2017 were banks will bear the cost of the disrup- to address these issues, the contracts tariffs on the automotive sector, the tion. It cited industry estimates that Clearing houses, largely run by EU clearing members have with UK ebbing away and financial markets combined effect would knock 1 per suggest that for every single basis exchanges, sit between parties in a CCPs will need to be closed out, or had not yet reflected the rise in cent off the US economy in the long point increase in the cost of clearing deal and manage the impact to the transferred, before March 2019,” threats to the world economy, the term and about half that from the interest rate swaps alone could cost market if one side defaults. London the BoE wrote in its Financial Policy report said. global economy. EU businesses about €22bn a year. is the heart of the global business. Its Committee statement on Tuesday. Warning that the world was now Mr Trump’s fiscal policy was Clearing houses must give mem- three clearing houses — LCH, ICE “The movement of a large volume in “an environment where finan- “unsustainable”, it said, and the bers three months’ notice to move Clear Europe and LME Clear — pro- of contracts in a short timeframe cial conditions could tighten sud- US should instead concentrate on their business, which effectively cess more than $450tn in interest- would be costly to, and disrupt the denly and sharply,” the IMF urged stabilising and reducing the level of means that any commission an- rate, credit, forex and metals-related derivatives positions of EU busi- countries “to advance policies and nouncement over derivatives must swaps from around the world. With- nesses and could strain capacity in reforms — both multilaterally and Continues on page A11 happen before Christmas to allow out access, participants face a hefty the derivatives market.” Wednesday 10 October 2018 C002D5556 BUSINESS DAY A11 FT NATIONAL NEWS Growth policies and Tata Motors hits the populism threaten skids as JLR plans Continued from page A10 factory shutdown Shares fall more than 15% in response to public debt. move blamed on weak car demand “Procyclical stimulus, which is contributing to rising global imbal- SIMON MUNDY AND MICHAEL POOLER ances and heightened risks to the ndian carmaker Tata Motors lost US and global economies, should be nearly a sixth of its market capi- withdrawn,” the report said. Italisation a day after subsidiary With the global burden of public Jaguar Land Rover announced a two- and private debt still growing, the week shutdown at one of its factories IMF said financial vulnerabilities because of weak demand. were increasing. The pressure was Shares in Tata Motors — the likely to mount because economic biggest unit by revenue of India’s growth rates were expected to slow largest conglomerate — were down in the medium term. International 15.7 per cent on Tuesday afternoon co-operation was also undermined in Mumbai. by rising inequality and the advance JLR’s global sales fell 12.3 per cent of populist governments following in September from a year earlier. The An AfD march in Berlin. Critics claim that the far-right party ‘legitimises people’s grievances and amplifies their anger and rage’ © Getty primary factor was a 46 per cent de- nationalist policies. cline in China — which the company Maurice Obstfeld, the IMF’s chief Rightwing terror in Europe draws fuel from populism and xenophobia blamed in part on “trade tensions” — economist, said: “With geopolitical while European sales fell 4.7 per cent, tensions also relevant in several re- Warnings grow that extremists are becoming more sophisticated and more violent adding to a run of weak demand for gions, we judge that, even for the near its UK factories. small compared with the number of and demonstrations fell sharply last future, the possibility of unpleasant DAVID BOND AND GUY CHAZAN On Monday JLR said it would shut individuals arrested on suspicion of ji- year. surprises outweighs the likelihood its Solihull plant in the Midlands, hadist extremism or violence. Europol According to a report on political of unforeseen good news.” hen German police arrested which employs 9,000 people, for two recorded there were 20 rightwing violence from Germany’s domestic The downbeat tone of the report seven men last week, accus- weeks this month. arrests in all EU countries in 2017 intelligence agency, the Verfassungss- contrasts with global growth fore- ing them of forming a righ- The strong market reaction to the W compared with 705 jihadist arrests. chutz, or the BfV, there were 1,054 twing terror group called “Revolution announcement reflects Tata Motors’ casts only a little weaker than those But security analysts and police acts of extreme rightwing violence in Chemnitz”, prosecutors said they had heavy reliance on JLR, after a severe the IMF published in April and up- say that while the numbers are low Germany last year, down from 1,600 in foiled an extremist plot to strike at the loss of market share in its domestic dated in July. The global economy and serious attacks rare, the groups 2016 — a decline of 34 per cent. heart of Germany’s establishment. business. was set to grow 3.7 per cent in 2018 are becoming more sophisticated in While experts say that the number After a summer of fierce clashes Since its takeover by Tata Motors and 2019, it predicted, a downgrade their planning and more likely to use of rightwing terrorists in Germany and rising tensions in the east German a decade ago, Jaguar Land Rover of 0.2 percentage points in both years. weapons and serious violence. That has not necessarily grown in recent town that has become a byword for has been the emblem of a resurgent The 2018 downgrade stemmed point was borne out by the arrest of years, they have become increasingly hard right violence and xenophobia, British car industry. Overall domestic mostly from weaker data than ex- a group of 10 rightwing extremists confident. That is largely due to the the arrests have thrown a new spot- output in 2016 was its highest since pected earlier this year in the euro- across France this summer who had success of Alternative for Germany, a light on a Europe-wide expansion of the turn of the millennium. But the plotted to kill Muslims. far-right, anti-immigration party that zone, UK and Latin America. rightwing terror. number of vehicles rolling off UK “The rightwing threat was not is now polling at around 18 per cent The IMF said US growth this year Europol, the EU’s law enforcement production lines decreased in 2017, previously organised,” said Mark Row- nationally. It entered the Bundestag was “exceptionally robust” on the agency, recorded a near doubling in the first decline in eight years. ley, the Metropolitan Police’s former for the first time last year. back of historically low unemploy- the number of individuals arrested for The UK car industry’s domestic head of counter terrorism, this year. “The extreme-right terror scene ment and tax cuts, but it downgraded rightwing extremist offences last year, market has been hit by weak con- “Every now and then there’s been an has been given a big boost by the its US growth forecast for 2019 by 0.2 a trend analysts say is being driven by sumer confidence amid heightened individual motivated by that rhetoric AfD,” said Joachim Krause from the percentage points to 2.5 per cent, to social media and a dangerous mix of economic uncertainty in the coun- who has committed a terrorist act but University of Kiel. “They feel they have reflect the likely damaging effects of populist politics, economic inequality try. Across Europe, sales of diesel we’ve not had an organised rightwing the wind in their sails.” tariffs. The eurozone is expected to and a dissatisfaction with liberal elites vehicles have been hurt by tougher threat like we do now.” Marcel Dirsus from the Konrad and institutions. regulations imposed in the wake of expand 1.9 per cent next year. Last Monday’s arrests in Chemnitz Adenauer Foundation, a think-tank, “There’s no doubt there’s an at- the Volkswagen emissions scandal Growth in the US and eurozone is came at a time when far-right violence added: “The AfD legitimises people’s mosphere where a spark could really in 2015. expected to slow in the medium term is declining in Germany. After reach- grievances and amplifies their anger set things off,” said Nick Ryan from The two-week shutdown is just and converge at a sustainable rate of ing a peak in 2016, when refugees and rage. That might end up encour- Hope not Hate, the British anti-racism the latest move by JLR to respond 1.4 per cent, the IMF thinks. were still pouring into the country, the aging people with rightwing views campaign group. to slumping demand. Last month it Forecasts for some emerging mar- number of attacks on migrant hostels to resort to violence to achieve their Nevertheless the jump in the implemented a three-day working ket economies, notably oil producers number of rightwing arrests is still and extremist, anti-foreigner protests political objectives.” benefiting from the rise in crude week at its Castle Bromwich factory prices this year such as Russia and until Christmas, while earlier this Saudi Arabia, were revised higher. year it laid off 1,000 agency staff. Sony commits to successor for PlayStation 4 Estimating that the UK subsidiary But the IMF sharply downgraded accounts for nearly two thirds of Tata forecasts for crisis-hit Argentina Next generation hardware is ‘necessary’, says president of Japanese group Motors’ earnings before interest, and Turkey. Argentina’s economy tax, depreciation and amortisation, is expected to shrink by 2.6 per cent KANA INAGAKI, LEO LEWIS games and movie divisions. to enhance the social role of games. On Monday, Microsoft said it People in the games publishing analysts at Fitch warned that JLR this year and 1.6 per cent in 2019, AND LIONEL BARBER needed to move quickly away from while Turkey is expected to grow 3.5 would begin public tests of Project industry with knowledge of Sony’s diesel engines in response to higher per cent this year and 0.4 per cent in he president of Sony has xCloud next year to allow gamers plans for a future console said that taxes in Europe. “A disorderly Brexit 2019, compared with growth of 7.4 confirmed that the company to play across different platforms. early indications were that it might could significantly disrupt JLR’s sup- per cent in 2017. Tis working on a successor to “The test runs on devices (mobile not represent a major departure ply chain,” they added, endorsing Reflecting an end to the global the PlayStation 4, as speculation phones, tablets) paired with an from the PS4, and that the fun- pointed public warnings from the synchronised upswing of 2017, intensifies over whether traditional Xbox Wireless Controller through damental architecture would be company itself. the IMF calculated that 45 poorer gaming consoles have a future. Bluetooth, and it is also playable similar. The move away from diesel en- countries — accounting for 10 per “At this point, what I can say is using touch input,” said Kareem “Sony would likely seek to use gines has forced JLR to step up its cent of the global economy — would it’s necessary to have a next-gen- Choudhry, corporate vice-presi- this successful PS4 platform as capital investment dramatically to see their living standards fall further eration hardware,” said Kenichiro dent, gaming cloud, in a blog post. long as possible,” said Kazunori Ito, £4.5bn in the current financial year. behind those of rich countries over Yoshida, in an interview with the Sony has also been slow to em- analyst at research firm Ibbotson This has hurt its finances, resulting the next five years. Financial Times. He declined to brace the surging potential for Associates Japan. in a negative operating cash flow To address the darkening outlook, formally name Sony’s future con- esports, a market based around Since the PS4 went on sale in of £1.7bn in the second quarter of the IMF recommended countries sole the “PlayStation 5”. a global audience estimated at 2013, it has sold more than 80m the year and a loss of £194m before His comments came after 167m that watch online streams of units, becoming the fastest-selling interest and tax. focused on policies that would gener- The mounting costs have alarmed ate inclusive growth and rising wages. mounting debate over how Sony professionals playing games at the console for Sony. should address the spectacular rise highest level. Gaming experts also say it would analysts tracking the company. “JLR Even with historically low unemploy- would benefit from the discipline im- ment in advanced economies, wage of the $70bn global smartphone Industry analysts believe that be premature for Sony to move away gaming market and the shifting Sony will be keen to rectify that from consoles to cloud-based gam- posed by publicly stated cost targets, growth has not picked up. and the empowerment of a senior The fund also urged countries to habits among its customers as it through its next console, by ensur- ing after the PS4 reaches the end ‘hatchet man’,” analysts at Bernstein improve their public finances and readies games studios and the ing that its machines are deemed of its cycle because it would miss wrote recently. consolidate their budgets so they global market for a successor to powerful enough to host top level out on markets that will not have The problems in Europe have would have more firepower in the the PS4. esport events. next-generation 5G data connectiv- compounded a slowing of sales in next downturn. There have been industry ru- Sony Interactive Entertainment, ity to download the games via the China, which was the primary growth Germany, with its low public debt mours that Sony might be planning the division responsible for PlaySta- internet. driver for JLR over much of the past and high trade surplus, was singled a tablet that would connect to mul- tion, said it was considering various Still, analysts detect a balance decade. Beyond the increasing satu- out as an exception. Angela Merkel’s tiple devices as online streaming of options to strengthen its position in shift within Sony where executives ration of that market, it has been hit government was urged to invest games becomes more widespread esports, which it sees as an effective must adapt to a fast changing mar- this year by heavily fluctuating sales more to improve infrastructure and and the company seeks to derive way to encourage users to play a ket rather than to expect to control as consumers respond to import duty raise long-term growth performance. ever greater synergies between its game for a longer period of time and it from top to bottom. changes. Wednesday 10 October 2018 A12 BUSINESS DAY C002D5556 BUSINESS DAY NEWS YOU CAN TRUST I WEDNESDAY 10 OCTOBER 2018 C002D5556 Opinion CBN financial inclusion targets: One step forward, two steps backward!

as pursuing financial inclusion belong. Expectedly, as the integration strategies. supporting institutions and needs. Examples of instru- and other policies with flawed meaning of financial inclusion Even if we in the formal development partners such as mental needs include for in- models or approaches can only is misunderstood, so are the sector argue that we know World Bank and other agencies stance the need to save, transfer result in limited outcomes. causes and suggestions of pos- better than those using the and experts. The situation is money to a friend, pay school Some people will inevitably be sible solutions. Consequently, informal banking sector and FRANKLIN NNAEMEKA NGWU like a team of medical doctors fees, buy a property and pay included but the outcome will the limited outcomes we are as such can make suggestions that prescribe medication for for flight tickets etc. Expectedly, Dr. Ngwu is a Senior Lecturer in be below the target and unsus- achieving. for them, I think that the best a patient without interacting if the above needs can be met Strategy, Finance and Risk Man- tainable. This is the reason why To get the appropriate defi- approach will be to genuinely with the patient to find out his/ without using the formal finan- agement, Lagos Business School the number of formal bank ac- nition, it might be important engage and ask them why they her symptoms. Expectedly, the cial sector, the need to use the and a Member, Expert Network, counts is less than 40million in to clarify that those errone- don’t use the formal financial patient might improve but will formal financial sector or to be World Economic Forum. a country of 200million people ously presented as financially sector. In 2012 CBN financial not be effectively cured due to ‘formal- financially’ included is with insurance penetration of excluded are not in the real inclusion strategy, no ‘formal improper diagnosis of his/her therefore absent. Incidentally, n a recent circular, Central about 1% even when formal sense of it financially excluded. financially’ excluded person or ailment. This is what has been this is the situation in Nigeria Bank of Nigeria (CBN) financial sector has been in As majority of them use the group were deemed important happening in our financial and with those wrongly classified as lamented that we are Nigeria for over 122 years! informal financial sector, it is to be included as stakeholders other sectors of the economy. financially excluded. Majority not meeting any of the To achieve a sustainable and wrong to describe them as fi- in the financial inclusion drive. We keep adopting policies of their financial instrumental financial inclusion tar- effective financial inclusion nancially excluded. Moreover, The lucky and important 3 and models without careful needs can be met within their getsI agreed and contained in Nigeria, there is a funda- as the informal finance sector stakeholders include first, the examination of the suitability respective vibrant informal in the 2012 Financial Inclu- mental need for a change of users in Nigeria are over 100 providers such as formal banks and amenability of the policies financial groups in addition to sion Strategy. Not only are we our approach to banking and million people as compared and insurance companies, to our peculiar contexts. our cash dominated economy. not meeting the targets, we other financial services. It will to less than 40million within second are the enablers which If we can effectively ap- Even their basic financial needs are even retrogressing! For require a change from our the formal banking sector, our are the regulatory institutions preciate our contextual pecu- (savings and lending) can be instance, while we achieved present economic approach to approach is further flawed. such as CBN, NDIC. The third liarities in our policy proposals better met within their informal 60.3% in 2012, it declined to a sociological (socio-cultural/ A situation where the minor- group of stakeholders are the and implementation, then the finance groups than within 58.4% in 2016 against a target economic) approach. With a ity dictates for the majority appropriate term should be the formal financial sector. For of 69.5%. This translates to a sociological understanding describing them as excluded ‘Formal Financial Inclusion’ instance, the rotating local sav- financial exclusion of about of the meaning and causes of can therefore be argued to be There are so many unan- and the definition should be ings and loans provide a more 41.6%. Focusing on adults, the financial inclusion and exclu- undemocratic and dictatorial if ‘increasing access to formal effective and reliable financial report revealed that while 36.9 sion, a new approach and we use democratic principles. swered questions to which financial services and prod- system to the ‘formal finan- million adults were banked, strategy will emerge. The reality is that Nigeria has the answers will help us in ucts to those that do not use cially excluded’ than the formal over 59 million remain un- Defining financial inclu- two functional but limitedly in- appreciating the importance the formal financial sector banking sector. So there is no banked. According to the CBN sion as increasing access to terconnected sub-economies: of adopting a sociological ap- especially those that use the incentive or benefit to use the “performance did not meet ex- financial services and products the formal and the informal proach to banking and espe- informal banking sector’. This formal banking sector. Not only pectations across all inclusion to those that are excluded is economies. As both are func- cially for financial inclusion. clarification will help us in is there no incentive or benefit targets for products, channels fundamentally flawed. This tionally vibrant due to good This approach will ensure that understanding the causes of to use the formal banking sec- and enabler. Among product definition presents finan- population of economic par- any financial inclusion policy formal financial inclusion/ex- tor, there is inherent mismatch categories- credit, insurance cial services and products as ticipants, any effort to promote contains both instrumental clusion and possible solutions between the needs of the ‘for- and pension all fell short of only possible from the formal more interaction of the sub- and contribution such as the mal financially excluded’ and targets by the most significant and intrinsic needs of the banking sector and as such economies will require first a target group to generate the National ID Card. the services/products of the margins. Point of sale termi- ignores the vibrant function- genuine and comprehensive required buy-in and effec- The fundamental problem formal banking sector. Their nals and Automated Teller ing of the informal finance/ appreciation of the inherent with our current economic savings and loans are of very Machines showed the least banking sector to which mil- institutional peculiarities of the tiveness of the policy approach is that the use(s) of small amounts, volatile and progress among channels.” lions wrongly described as two sub-economies and then a formal financial sector are dic- The above is not surprising financially excluded use and carefully planned and effective tated mainly by instrumental Continues on page 39 THE PUBLIC SPHERE STEM and our societal values

the STEM, mainly ICT, ecosys- The contests do not add any 10, 000 schools in the country. STEM Competition. It offers a tem in the 11 states of the two values beyond recreation. Au- Interswitch says SPAK will star prize of N400, 000. Mikano geopolitical zones. The fact Prizes in Nigerian STEM diences learn hardly any new include mentoring and mas- STEM targets undergradu- of a fourth edition confirms skills, knowledge or expertise. terclass sessions with the CEO ates ages 17-25 in science consistency and a deliberate competitions compared They extend the notion of the Mitchell Elegbe playing a role and engineering courses. It effort to keep pushing until to the prizes we place on Nigerian nay African as unin- with the support of industry holds between September something positive happens. non-intellectual contests terested in development but experts. There will be science and December so readers can StartUp South targets 11 states, more interested in jokes and boot camps, Adopt-A-School still point their undergraduate 13 cities, 120,000+KM2 and proclaim our societal laughter. where employees of Inters- students, relatives and friends over 60million people, accord- values... The many contests The many contests in the witch would volunteer to teach to this one on www.mikano- CHIDO NWAKANMA ing to its founder Uche Aniche. in the Nigerian STEM arena Nigerian STEM arena do not at a local secondary school and intl.com. Last week, we pushed the attract interest and mass par- a TV series. Payments firm In- The Cowbell National Nwakanma is a Visiting Member case for the education system do not attract interest and ticipation because the organis- terswitch runs the Interswitch Mathematics Competition of the BusinessDay Editorial in Nigeria to pay more atten- mass participation because ers have placed a cultural value SPAK Science Competition deserves kudos for value and Board and serves on the Adjunct tion to competitions in Sci- the organisers have placed of non-importance on them aimed at promoting STEM. longevity. It offers a star prize Faculty at the School of Media ence, Technology, Engineering through the prizes on offer. The Speed, Precision, Accu- of N1million, second prize and Communication, Pan Atlantic and Mathematics, with the a cultural value of non- They do not get promotion and racy and Knowledge (SPAK) of N750, 000 and third prize University, Lagos. Email chidon- acronym STEM. Vice President importance on them build-up in the media nor do National Science Competition of N500, 000 for all catego- [email protected]. Yemi Osinbajo has asked for through the prizes on offer we celebrate their winners the ambitiously targets 20million ries. There is a televised quiz the incorporation of the Arts way they celebrate winners of teens and 10, 000 schools in competition for 13 weeks or a as part of this system to derive the other prizes. the country. Interswitch says broadcast quarter and visibil- he home state of the a new acronym STEAM. The Competitions out there SPAK would include men- ity for the schools and teach- 2018 Technovation point is that we live in an era promoting science include toring and master class ses- ers. For 2018, prizes included winners upped the where science and technology marketing we know that the the National Under-17 ICT sions featuring their CEO and an all-expenses-paidvacation. ante Tuesday, October dominate and are pushing the third P of price is what creates competition. Categories on the industry experts. There would Cowbellpedia remains prime 9T with the first Anambra STEM narratives of the world in all value exchange between buyer feature are coding skills, hard- be Science boot camps and an in promoting mathematics. Fair. The fair in Awka featured areas. Nigeria cannot be danc- and seller. Prizes in Nigerian ware and general computer Adopt-A-School programme Others include the contests presentations, exhibitions and ing backwards. STEM competitions compared appreciation. New Horizons at a local school where Inter- by the Nigerian Mathematical motivation by a notable player The good news is that some to the prizes we place on non- Nigeria, an educational ser- switch employees would vol- Society and the National Infor- in ICT Emeka Okoye. The An- competitions aim to promote intellectual contests proclaim vices organisation, sponsors unteer as teachers. Then there mation Technology Whizkids ambra STEM Fair received science literacy in our domain. our societal values. the annual competition. It would be a series on terrestrial Competition endorsed by the good airplay within the state. The bad news is that while they Over the years, people win seeks to promote ICT literacy TV. The Interswitch SPAK Na- Nigerian Computer Society. Anambra STEM Fair held exist, many are tokenistic in attractive prizes for doing by discovering them young tional Science Competiton fits Value is at the heart of the ahead of a significant ICT approach and impact. Nigeria nothing more challenging than while developing the use of the narrative of the STEM as appeal or lack thereof of the event, StartUp South 4, to hold needs much more than science sitting in a house for 90 days in such skills in the school cur- tokenistic CSR. Note how they competitions. Value is also a on Friday, November 2 with a contests as “let’s-give-them- attempts to showcase man at riculum. Check them out at would limit it to terrestrial TV function of society. Sponsors, preconference on Friday, Oc- something” CSR initiatives at his lowly best or walking in the www.u-17ictcompetition.com. rather than the more glamorous policymakers and the school tober 11, also in Awka. StartUp this point. jungle to find a supposed treas- Payments firm Interswitch cable TV! The 2018 competition system need to work in col- South seeks to “connect, ex- The difference between ure or being the best dancing recently introduced the Inter- ended in May. Does anyone laboration to change the narra- pose and attract investment to the contests in Nigeria and family and such no-brainers. switch SPAK National Science have a name for the winner? tive of these competitions. Let startups and founders residing those abroad rests on cultural They get brand new cars, huge Competition aimed at promot- How did Interswitch celebrate us use them to focus our future and operating out of South- communication and values. cash prizes and become am- ing STEM. The Speed, Preci- the winner? What prize did he stars on creating solutions ap- South and South East Nigeria.” Prizes are the primary ways of bassadors for brands. They sion, Accuracy and Knowledge or she win? Is she trending? plicable to our environment The goal is to draw attention communicating what values become stars in the Nigerian (SPAK) contest ambitiously Enter Mikano, marketers of like the Onitsha Five Coding to and empower the players in we place on things, just as in firmament. targets 20million teens and generators, with the Mikano Girls.

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: 08034743892. Subscriptions 01-2950687, 07045792677. Newsroom: 08169609331 Editor: Anthony Osae-Brown. All correspondence to BusinessDAY Media Ltd., Box 1002, Festac Lagos. ISSN 1595 - 8590. WEST AFRICA ENERGY intelligence oil gas power Wednesday 10 October 2018 C002D5556 BUSINESS DAY

POLICY

Nigeria: Schneider Electric promotes micro-grid development Page 4

finance people Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote; Senator Ita Giwa; King of Ochia Autonomous Community, Eze Ekwueme Paulinus Ekwueme; Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu; Refinery Project Manager for Lambert, Mr. Mohamad Chit; COO,Gas & Power, appointments Nigerian National Petroleum Corporation Engr. Saidu Mohammed,and Chairman/CEO, WalterSmith Petroman Oil Limited Mr. Abdulrazaq Isa, during the ground-breaking ceremony of 5,000 barrels per day WalterSmith’s modular refinery at Ibigwe, Ohaji Egbema Local Government Area, Imo state . Debrief In a world where plastic is king than they deserve. will exert on future energy trends. while substantial increases in recy- ISAAC ANYAOGU Petrochemicals – components In fact, our analysis shows they will cling and efforts to curb single-use derived from oil and gas that are have a greater influence on the fu- plastics are underway, especially lastics will displace fuels used in all sorts of daily products ture of oil demand than cars, trucks in Europe, Japan and Korea, the Sleepy gas prices as the main driver for such as plastics, fertilisers, pack- and aviation.” impact these efforts can have on crude oil demand, Par- aging, clothing, digital devices, Demand for plastics – the key demand for petrochemicals is far stir but Nigeria is-based International medical equipment, detergents driver for petrochemicals from an outweighed by sharply increasing Energy Agency said in a and tyres – are becoming the larg- energy perspective – has outpaced plastic consumption in emerging might not get Preport released October 5, adding est drivers of global oil demand, in all other bulk materials (such as economies. that petrochemicals will come to front of cars, planes and trucks, ac- steel, aluminium, or cement), Worse still in these emerging aboard account for more than 33 percent cording to the IEA. nearly doubling since 2000. Ad- economies, there is a tendency to not of oil demand growth globally in Plastics have become so pervasive vanced economies currently use allow environmental concerns inter- Page 5 the period to 2030. that it seems impossible to imagine up to 20 times more plastic and up fere with their economic goals. In Af- By 2050, according to IEA pro- a world without them. Not only are to 10 times more fertiliser than de- rican countries some analysts have jections, they will drive half of the they used for many household uses, veloping economies on a per cap- argued that it will decades worth global oil demand growth, raising they are also required to manufacture ita basis, underscoring the huge of population from the continent OPEC weekly basket price this demand by 7 million barrels many parts of the modern energy potential for global growth. to match the damage western in- per day (bpd) by that year. They system, including solar panels, wind Taming plastics dustries have wrought on the earth. DAY PRICE are also poised to consume an ad- turbines, batteries, thermal insulation Despite its many uses, plastics This may be true, but this shouldn’t ditional 56 billion cubic metres and electric vehicles. morph into a race to the bottom. 05/10/18 83.17 constitute an environmental night- (bcm) of natural gas by 2030, and “Our economies are heavily de- mare and if they are poised to even To address these challenges, the 28/9/18 80.64 83 bcm by 2050. pendent on petrochemicals, but become more indispensible, then report outlines a Clean Technology In a report titled The Future of the sector receives far less attention the world must embrace actions to Scenario (CTS), which provides 21/9/18 76.71 Petrochemicals, which the organ- than it deserves,” said Fatih Birol, curtail the drastic consequences. an alternative future in line with 14/9/18 76.59 isation says was part of a series of the IEA’s executive director. “Petro- The seas and oceans are filled with key UN Sustainable Development reports that aim to uncover “blind chemicals are one of the key blind plastics threatening aquatic life Goals, such as climate action, re- 07/9/18 75.16 spots”, or facets of the global energy spots in the global energy debate, and the earth’s ecosystem. sponsible consumption and life Source: OPEC industry that receive less attention especially given the influence they The IEA expressed concern that below water, among others. 02 BUSINESS DAY C002D5556 Wednesday 10 October 2018 WEST AFRICA Outlook oil Brief West Africa: China: China boosts West African oil Lukoil set eyes on new projects in West Africa imports to offset trade war impact espite drilling a are planning to cooperate to re- sortium will be signed soon,” Lukoil holding the remaining number of dry duce investment risks on four he said. 25 percent in the block, esti- hina is set to boost its return of sanctions on Iranian wells in West Africa blocks in the Gulf of Mexico that In March, Lukoil in part- mated to contain 100 million crude imports from West crude further limits the availabil- in the past, Russia’s they won licenses for in recent nership with Eni won the barrels of oil equivalent. CAfrica to the highest in ity for Chinese buyers. DLukoil is still interested in the tenders. Lukoil will be operator right to explore Block 28 in Lukoil also won the right at least seven years this month The majors in China need sub-region, according to Vagit on one, and Eni the operator the Cuencas del Sureste basin to explore Mexico’s Block 12, as the trade war with the US to “make up not only for lost US Alekperov, the company chief at the remaining blocks, Alek- of the Gulf of Mexico, during which is thought to hold 409 prompts the Asian nation’s refin- grades, but more importantly for executive who also said that perov told reporters. the round 3.1 shallow water million boe in the same basin ers to find alternatives. a cut in imports from Iran,” said the company “gained valu- “Most likely, a final agree- auction. Eni owns a 75 per- last year, with Eni owning sev- Chinese refiners have bought Michal Meidan, an analyst at able experience through that ment on establishing the con- cent stake in the license, with eral other licenses in the region. about 1.71 MMbpd of crude for researcher Energy Aspects. Chi- drilling.” Lukoil quit a num- October loading from West Afri- nese refineries also need to re- ber of projects in Ghana, Cote ca, the most since at least August plenish their crude stocks which d’Ivoire and Sierra Leone in 2011 when Bloomberg started are well below year-ago levels, 2015, following unsuccessful compiling the data, according to she said. a survey of traders and analysis of UNIPEC bought about 30 drilling. loading programs. In total, Asia’s MMbbl of West African crude “We are considering new crude imports from West Af- for loading in October, the high- projects in West Africa,” Alek- rica in October will jump to 2.44 est since at least August 2011, perov said. MMbpd, also a seven-year high. according to the survey. Other Lukoil is already working The trade war with the US Chinese companies, including on a project with Chevron in has cut China’s interest in buying independent refineries, or tea- Nigeria where the two found shale oil which is similar in qual- pots, also boosted their purchas- commercial crude reserves in ity to West African crude. UNI- es. Teapot refineries typically in- 2015. Alekperov previously ex- PEC, the trading arm of top Chi- crease their imports in the fourth pressed interest in additional nese refiner SINOPEC, recently quarter as they need to use up assets in Nigeria during a trip put a plan to boost US crude im- their crude import quota before it to the country. Lukoil and Eni ports on hold. The impending expires at the end of the year. are negotiating cooperation in “After heavy maintenance West Africa. over the summer and tight credit, Also, Lukoil expects to ink they are now coming back to the a final agreement with Italy’s market to try and exhaust their Eni on joint exploration work import licences for the year and offshore the Gulf of Mexico to capitalise on strong margins as very soon. The two companies well as rising domestic product

Niger: Savannah makes 5th consecutive discovery in Zomo-1, South Niger

avannah Petroleum made in the exploration on the interpretation of the 5.4 m of net oil-bearing res- exist in the well, but will re- 3D seismic dataset. PSDM PLC, the British inde- campaign conducted by Sa- available data set (which ervoir sandstones in the E1 quire further technical eval- processing is intended to Spendent oil and gas vannah’s Niger subsidiary in includes wireline logs, fluid reservoir unit within the uation and/or testing to con- provide Savannah Niger company focused around the R3 portion of the R3/R4 sampling and pressure data) primary Eocene Sokor Alter- firm. Wireline logs indicate with a significantly en- oil and gas activities in Niger PSC Area in the Agadem Rift indicate that the well has en- nances objective. Additional the reservoir properties to be hanced definition of the oil and Nigeria, has announced Basin, South East Niger. countered a total estimated pay is thought to potentially good quality and the avail- pay zones at the crests of the result of the Zomo-1 ex- “The discovery of the able data indicates light oil each of the discoveries and ploration well as an oil dis- Amdigh, Bushiya, Eridal, consistent with Savannah’s significantly assist in full covery. Kunama and Zomo fields discoveries to date, and in “field scale” evaluations Steve Jenkins, Chairman in the R3 East PSC area has line with offset wells and the and associated develop- of Savannah Petroleum, said: delivered material value for depth/API trend observed ment well planning. “Following the Zomo-1 dis- our stakeholders. The dis- across the basin. Oil samples Savannah Niger contin- covery, our maiden explora- coveries have also served to have been taken and re- ues to expect to perform a tion campaign in Niger has demonstrate the world class turned to surface using wire- well test on Amdigh-1 in De- delivered five discoveries exploration potential of our line testing equipment. cember 2018, and prepara- from five wells and resulted wider PSC areas, where we Following the successful tions for this are underway. in the discovery of more have identified 120 potential results of the five explora- It is anticipated that follow- than sufficient oil to enable drilling targets which we ex- tion wells drilled to date, ing completion of the well us to proceed towards our pect to high grade for inclu- Savannah Niger has elected test, production from Savan- planned 2019 Early Produc- sion in future drilling cam- to commission Pre-Stack nah’s planned Early Produc- tion System.” paigns,” said Andrew Knott, Depth Migration (“PSDM”) tion System (EPS) will com- Zomo-1 is the fifth con- CEO of Savannah Petroleum. processing of the R3 East mence in early 2019. secutive discovery to be Preliminary results based Wednesday 10 October 2018 C002D5556 BUSINESS DAY 03 WEST AFRICA gas ENERGY intelligence Brief Nigeria: Egypt: Rising oil bill may erase Egypt’s NGA to showcase investment savings from gas milestone opportunities in West Africa gas o sooner to phase out fuel subsi- has Egypt dies by mid-2019; burden est African ties, gas based manufacturing achieved its the population by lifting region strong industries, pipe milling and fabrication yards including fi- milestone of prices higher and faster capabilities in the gas sector nancial services that exist in regainingN self-sufficiency than expected or aban- and invest- the gas sector, the two (2) days in natural gas than an- don its deficit target alto- Wment opportunities available conference side will x-ray how other corner of the en- gether. will be highlighted in Abuja Ni- governments, industry and ergy market threatens to “It boils down to a geria from 14th -16th October. customers will adapt to a robust deal a new blow to fragile political choice for the This will be reinforced gas economy government finances. government: either raise through attendance of Ghana The benefits of natural gas National Gas Company; West in meeting our future energy A six-fold increase prices sharply and face African Gas Pipeline Company; needs are well-documented. in production at the gi- social discontent, or find Shell Companies in Nigeria; Its supply is increasingly abun- ant offshore Zohr field other sources of funding Nigeria LNG Limited; Chevron dant and diverse, which means means Egypt can now such as raising taxes on Nigeria and range of Nigerian greater energy security. It is a meet its own needs do- the rich,” said Salma Hus- oil and gas companies. clean-burning ally to renew- mestically. The govern- sein, a researcher with “The international gas con- ables like wind and solar. Gen- ment may now save the Cairo-based Egyptian ference and exhibition held erating electricity from gas also every two (2) year, has provided requires relatively low capital some $2 billion a year af- Initiative for Personal the perfect platform to highlight investment. And it’s highly ter receiving what it said Rights. “The government West Africa’s region long his- flexible. It can be converted to was the final shipment will probably choose tory of oil and gas production, liquid fuels, transported easily, substantial reserves and status and used to make other prod- as a leading global player in the which theme is ´Shift to Gas Trinidad and Tobago to Nigeria ucts, Dada Thomas added. sector”, Engr. Dada Thomas, the Economy: Pace and Scale of Wendell Vincent Carlton De The Nigerian Gas Associa- President of the Nigerian Gas Innovation in the West African Landro; the Managing Director tion (NGA) formed in 1999 is Association (NGA) said. Sub-Region’ include the Sec- of Nigeria LNG Limited, Tony a chartered member of the In- He opined that, the transfor- retary General of International Attah and Chairman of Chev- ternational Gas Union (IGU). It mation we are seeing across the Gas Union Luis Bertron; CEO of ron Nigeria Limited Jeffrey Ew- has come a long way in its quest energy industry signals an era Ghana National Gas Company ing among others to contribute to the develop- of opportunity for producers Ben Asante; Managing Direc- For a sector with billions ment of the Nigerian gas indus- and consumers, both in devel- tor of West African Gas Pipeline worth of investment opportu- try with advocacy tended to- oping nations and established Company Walter Perez; Coun- nities and potentials for growth wards ensuring the right policy markets try Chair of Shell Companies in such areas as; LNG plants, environment for the realization Speakers at the NGA 2018 in Nigeria Osagie Okunbor; NGL plants, gas transmission of a viable gas sector for the Sub international gas conference the High Commissioner of pipelines, gas processing facili- Saharan Africa region. United Kingdom: Gas fracking to start in England next week after 7-year halt of expensive liquefied what it did in the past natural gas last week. But couple of years, increase relief for the most popu- borrowing, in addition hale gas developer Cua- the public and campaigners tice led to work at Cuadrilla’s The industry’s future in lous Arab country, a net to cutting subsidies and drilla Resources expects concerned about the environ- site being halted in 2011. Europe may hinge on the out- importer of refined gaso- wages.” Sto start gas fracking in mental impact of fracking and But the government, keen come. Although fracking has northwest England soon, sev- the pollution caused by fossil to cut Britain’s reliance on grown rapidly in the United line and diesel, could be Egypt’s population of en years after its first attempt fuels. Protests against the prac- gas imports which soared to States, it has not been proved short-lived. nearly 100 million has to hydraulically fracture a well more than 50 percent of gas viable in Europe despite sev- Egypt’s 2018-2019 seen real incomes gut- led to earth tremors, public supplies, has tightened regu- eral attempts, including proj- budget assumes oil prices ted since the pound was protests and an overhaul of lations and earlier this year ects that failed in Poland five at $67/bbl but crude has allowed to trade freely regulations. gave consent for Cuadrilla to years ago. already surged past $80, in 2016, propelling infla- The process, behind a go ahead again. Fracking has been banned surge in US gas production, Francis Egan, Cuadrilla in France, Germany and sev- threatening plans to cut tion to over 30 percent involves fracturing rock deep Chief Executive said that frack- eral other European coun- the deficit under an eco- for much of last year. The underground using a mixture ing of two wells and associated tries. nomic overhaul program nation has seen three of water, sand and chemi- work would test gas flows. Cuadrilla’s well will be the backed by a $12-billion rounds of cuts in fuel sub- cals to encourage the flow of “From that we will be able first fracked horizontal well in International Monetary sidies since then, and re- hydrocarbons from shale, a to make an assessment of how Britain and the results will be Fund loan. It also poses a moving them altogether dense and tightly-packed sed- much gas is recoverable and watched by shale explorers dilemma for the govern- is certain to inflict more imentary rock. whether it will be commercially such as IGas, Egdon and Third It has drawn criticism from viable to develop the site,” he said. Energy. ment, which had sought pain on households. 04 BUSINESS DAY C002D5556 Wednesday 10 October 2018 WEST AFRICA ENERGY intelligence power Ghana: Akufo-Addo meets Eni CEO on Nigeria: renewable energy Schneider Electric promotes resident Akufo-Addo met mate actions; and SDG 15 on land the CEO of Eni, Claudio management and re-and/or af- Descalzi, in Accra recently forestation. Pwith the meeting focusing on re- “Improving access to energy, micro-grid development newable energy as a new area of especially in Africa, is core to Eni’s focus for the operator of Sankofa values; and it is an intrinsic part of oil and gas field. the company’s business. Eni in- To push its renewable en- vests more than half of its budget ergy agenda, Eni recently signed in Africa, boosting the domestic a partnership with the UNDP potential and promoting local de- and says it wants Ghana to play a velopment,” the company said in ‘frontrunner role’ in efforts on the a statement. development of renewable ener- The release further noted gy, energy efficiency, forestry and that “Eni is already committed to clean-cooking initiatives in Africa. the sustainable development of The partnership, it said, aims Ghana. The $7bn investment in at achieving the Sustainable De- the integrated OCTP project rep- velopment Goals (SDGs) and resents Eni’s firm commitment to specifically SDG 7 on affordable providing long-term domestic gas and clean energy; SDG 13 on cli- supply”. Ghana’s OCTP project will, it said, deliver stable, secure, reli- able, and affordable volumes of gas to feed power plants for over 20 years. “The use of domestic gas will allow Ghana to cut the use of liq- uid fuel, reducing CO2 emissions by 30 percent; and to limit the more expensive gas importation whose entire value chain lies out- side the country.

World: Global renewable investments to hit $228.3bn in 2018

arket research and expansion is being challenged analysis firm Frost & by resource unavailability, high chneider Elec- ings, large sites and in- cent of Nigeria’s trans- the company was com- MSullivan have issued risks associated with investing in tric has said it dustries, utilities and mission and distribu- mitted to corporate so- the 2018 Global Renewable En- the market and the high upfront ergy Outlook identifying global costs required to implement a is committed cities, and rural commu- tion substations using cial responsibility and renewable investments to reach project. to developing nities,” he added. its solutions to deliver local content develop- $228.3 billion in 2018. This Asia is expected to invest micro-grids Odoh, in his presen- safe and reliable power ment in Nigeria. growth is despite a detected slow- $114.98 billion, account for 58 inS Nigeria as part of ef- tation titled, ‘Digital to homes and business- “Schneider Electric er year-on-year growth rate of 0.7 percent of the global total install- forts to increase access micro-grids: Powering es. has placed a high fo- percent due to China reducing its ments in 2018. Solar, wind and to electricity across the commercial and indus- Mojola Ola, Head, cus on energy training solar uptake. biomass will account for 96 per- country. trial business’ which he Building Business, in Nigeria. Our latest The renewable energy cent of the total investments. “Schneider has delivered at the Pow- Schneider Electric, said actions in the past two market is expected to achieve Investments by stakeholders brought clean energy to er Nigeria conference the company was work- months were to spon- 154.6GW of new energy capacity in North America are expected rural communities/vil- in Lagos, described ing with qualified part- sor the training of STEM by the end of this year. to reach $33.17 billion, although The majority of the energy low natural gas prices and the lages in Nigeria through Schneider Electric as ners to respond to the girls with the Visiola capacity will come from solar current US administration’s mea- multiple mini-grids proj- the leader in digital needs of the market and Foundation in solar en- photovoltaics with almost 90GW, sures are significant barriers to ects”, said Ifeanyi Odoh, transformation of ener- promote local content ergy, rewarding the top followed by wind with 53GW. renewable energy development. Head of Marketing and gy management and au- by continuously trans- students with a two-day Factors driving the renew- Latin America will reach Business Development, tomation. He said smart ferring knowledge and discovery trip to Schnei- able energy market include rising $17.7 billion in investments Schneider Electric. microgrids would lead expertise to local part- der Electric facilities electricity demand, decarboni- owing to the heavy focus on re- “We believe access to to enhanced efficiency ners. and technology center. sation goals, and government newables in countries including energy is a basic human and significant energy “Technology is af- We have also donated incentives. Mexico, Argentina, Brazil, and right. Energy creates so- savings in business. fecting the way we do electrical training equip- On the other hand, market Colombia. Investments in Europe are cial and economic devel- According to him, things and our prod- ment to the University of driven by efforts by the region to opment and a better life. Schneider Electric has ucts are connected and Ibadan with continuous meet 20 percent renewables in Microgrids contribute been providing energy smart,” he added. training of trainer pro- the energy mix by 2020 and 32 positively to the energy management solutions The Marketing Com- gramme to ensure the percent by 2030, goals set under future. Our microgrid to key markets across munication Manager, equipment is put to good the Renewable Energy Directive. markets include build- West Africa with 50 per Viviane Mike-Eze, said use,” she added. Wednesday 10 October 2018 C002D5556 BUSINESS DAY 05 WEST AFRICA POLIY C ENERGY intelligence

Sleepy gas prices stir but Nigeria might not get aboard

in mild, then this current stor- tion of train 6 in 2007, no new increase in production capacity to the roots of the rally. While STEPHEN ONYEKWELU age shortfall is a speed bump train has been developed. The would increase Nigeria’s gas ex- low stockpiles provide a bearish on the way to a looser market six trains have a total produc- port, enabling the country regain backdrop, it is largely the unsea- in 2019. If cold weather comes tion capacity of 22 million its place as one of the top three sonably warm weather and un- to fruition, though, the tenor of tonnes/annum of LNG and 5 gas exporters globally, and en- planned nuclear power outages atural gas prices the 2019 outlook is fundamen- million tonnes/annum natural courage diversification of energy that are to blame. surged to a ten- tally changed and the market gas liquids (NGL) from 3.5 bil- resources. Cooling degree days, or days month-high on the will spend a good portion of lion cubic feet of natural gas re- Thomas said in an interview that were warm enough to re- back of low United next year just digging out of the serves. with a Nigeria national daily and quire air-conditioning, were 20 States gas stock- storage deficit,” Michael Cohen, Around October 2017, there emphasised that amplification percent higher in September Npiles, higher-than-usual power head of energy markets research was a report that approval for in gas exports would boost LNG than the 10-year average, ac- demand due to a warm autumn at Barclays, wrote in a research the Final Investment Decision, export earnings by 17 per cent to cording to Barclays. Meanwhile, and nuclear plant outages but note on Thursday. (FID), for the production of approximately $5.13bn, which Hurricane Florence forced pow- Nigeria will be unable to con- With widened global deficit, the Bonny Train 7 was given by would create more bulwark to er plants in the Carolinas region tribute to narrow this demand- Nigeria, world’s fourth largest NLNG Ltd, this still lingers. enable the Central Bank of Nige- to shut down as much as 17 giga- supply gap because of its stalled liquefied natural gas producer NLNG Ltd is seeking $7billion ria (CBN) prop the naira. watts of nuclear power, or about gas development projects. could have naturally stepped from the global financial mar- Barclay’s view that natural 10 gigawatts more than usual Natural gas prices are up up to the plate to fill the stor- kets for the sustainability of its gas prices will moderate speaks over the last four years. about 12 percent over the last age shortfall just as Russia and operations through investment The Energy Information Ad- month to roughly $3.16 per mil- Saudi Arabia are doing to fill in Nigeria’s upstream gas sec- ministration (EIA), the statistical lion British thermal unit. On the supply shortfall created by tor, and expansion project. The London-based arm of the US Energy Depart- Wednesday of the week ending Venezuela and Iran. This will project is expected to increase ment, said more than half (53 October 5, they hit a more-than- not happen. total production capacity by ap- Barclays Bank expects per cent) of the US LNG exports seven-month high, at $3.26 per The Nigeria Liquefied Natu- proximately 36 per cent to 30mn a volatile winter for in 2017 were shipped to three mmBtu. ral Gas (NLNG) is one the fast- tonnes/annum. countries: Mexico, South Korea, London-based Barclays Bank est growing LNG companies According to Dada Thomas, natural gas prices, and China, all of which had re- expects a volatile winter for nat- globally, with the development president Nigerian Gas Asso- with supply and ceived the LNG volumes from ural gas prices, with supply and of new trains between 2000 - ciation (NGA), the project is ad- Nigeria. Falling US gas stockpiles demand balanced on a “knife’s 2007. vantageous to both Nigeria and demand balanced on would have meant an opportu- edge” However, after the comple- NLNG Ltd, and the expected nity for Nigeria. No, Nigeria will “If winter weather comes a “knife’s edge not seize the day. 06 BUSINESS DAY C002D5556 Wednesday 10 October 2018 WEST AFRICA ENERGY intelligence finance people appointments Brief Total ‘Startupper’ project to boost Sonatrach to launch offshore drilling with Total, ENI in Algeria next year capacity of local enterprises lgeria’s state- We have gas in the east owned oil and around Skikda, and oil in otal Nigeria has an- gas company the west around Mostag- nounced the com- mencement of the Sonatrach will anem,” he added. 2nd edition of its Alaunch offshore drilling Sonatrach and Total ‘Startupper of the with France’s Total and have also agreed to in- Tyear’ project, an initiative fo- Italy’s ENI on two sites in vest $406 million to boost cused on promoting entrepre- the east and west of Al- the output of the gas field neurial drive of young business geria at the start of 2019, named Tin Fouye Taban- people in the country by pro- viding financing support and mentorship. The first edition of the initia- tive unveiled in 2015 and held across 34 African countries targeted young entrepreneurs with innovative ideas across all business sectors as a way to L-R: Bruno Dormoy, Executive Director, Finance & Development, Total; Vincent Nnadi, Executive encourage business develop- General Manager, CSR & Medical Services, Total; Bayo Rotimi, CEO Quest Advisory Services; Bunmi Popoola-Mordi, General Manager, Human Resources & Corporate Services/Company Secretary of ment. Total, during the press conference organized to announce the commencement of the second edition At the launch of the second of Startupper by Total in Lagos yesterday. edition of the project in Lagos, the company said it has a duty ward young entrepreneurs up The projects will be judged sho who shared his experience to create opportunities for all its to 35 years of age who have a on three criteria which includes said he was able to boost his gas stakeholders especially at this project or have created a com- their innovative nature, social cylinder production with the Abdelmoumene Ould kort Sud. period when Africa is pursuing pany in the past two years, re- and community impact and financial support from Total. inclusive social and economic gardless of their business sector. feasibility and development Today he said about 12 people Kaddour, Sonatrach chief “Our partnership with development. She said that in each par- potential. This year’s edition are in his employment and is executive said. Total is good and it allows After recording huge suc- ticipating country, a local jury would give priority attention looking forward to expand his “We should start drill- us to implement our long cess at inception, Total is now made up of Total experts, lead- that will lead to an award to top plant capacity. ing at the beginning of next term strategy,” Ould Kad- launching the project at global ers of business incubators, female entrepreneur. According to him, with the year,” Abdelmoumene dour said. scale in almost 60 countries company chief executives and She said winner of this support he has been able to Ould Kaddour told report- Patrick Pouyanne, To- and on every continent. prominent local actors would year’s project which will be source 80 per cent of produc- ers on the sidelines of a tal Chairman and Chief Addressing the media on select three winners. Each win- concluded in the first quarter tion materials locally. signing ceremony with Executive said in a state- expectations from this year’s ner will receive the ‘Startupper of 2019 will receive a financial He said he is prompted to Total for a petrochemical ment earlier that Total and Startupper project, Bunmi of the year by Total’ label and support of N6 million, while the go into the business having plant that will produce Sonatrach had signed new Popoola-Mordi general man- would be eligible to receive fi- second runner up will receive realised the investment poten- nancial assistance, professional N3.6 million and third person tials as Nigeria ranks as lowest 550,000 tonnes of polypro- agreements, including a ager human resources and corporate services/secretary support and an advertising will get N2.4 million. consumer of cooking gas in sub contract to develop the Erg pylene per year. of Total, said the programme campaign to provide their proj- The winner of 2015/2016 Saharan Africa despite its huge “The potential is huge. Issouane gas field. is designed to support and re- ect with visibility. maiden edition Opeyemi Owo- gas reserves. Egypt signs deal for sale of stake in oil company ENPPI

gypt has signed the ministry said in a panies for more than a state-owned compa- a total of 23 offer- hopes the sales will an agreement statement. It did not decade. nies are expected by ings over the next few help reduce its budget with three give the timing of the Five of the sales in the end of 2018 from years. The government deficit and promote banks to man- offer. ageE the sale of a 24 The ENPPI share of- competition. percent stake in state fer has been pushed The state oil company Engineer- back several times, owns vast ing for Petroleum and with officials initially swathes of Process Industries saying it would take Egypt’s econo- (ENPPI) on the Egyp- place before the end of my, including at tian stock exchange, 2017. least three of the the petroleum minis- The sale is part of country’s larg- try said. a series of public and est banks along The government private share offer- with much of its signed the deal with ings expected over the oil industry and investment bank CI coming months, in- large chunks of Capital, Jefferies bank, cluding the first sales real estate. ?? and Emirates NDB, in state-owned com- Wednesday 10 October 2018 C002D5556 BUSINESS DAY 07 WEST AFRICA marketinsight ENERGY intelligence Oil prices rise ahead of November US sanctions against OPEC Flakes OPEC compliance 110 percent in il prices rose, lifted September by loom- PEC’s 15 countries ing US boosted crude oil sanctions output in September to 33.07 million b/d, Oagainst Iran’s crude ex- Oa-180,000 b/d rise from August ports that are set to start as the producer group seeks to next month. instill confidence in its ability to The gains helped keep the market well-supplied. That is the most OPEC claw back some of the has pumped since July 2017, if to 1.51 million b/d, due to the losses from the previ- the Republic of Congo, which ramp up of the Kaombo off- joined the organization in June, shore field. ous session due to rising The UAE (3.01 million US inventories and after is not included. OPEC and its 10 non-OPEC b/d) and Kuwait (2.82 million Saudi Arabia and Rus- partners, led by Russia, have b/d) pumped their most since sia said they would raise surpassed their stated aim of December 2016, the survey found. output to at least partly raising production by a com- bined 1 million b/d from May OPEC’s second largest pro- make up for expected levels. OPEC’s September ducer Iraq saw a 30,000 b/d disruptions from Iran. output was 850,000 b/d above month-on-month fall to 4.65 “Crude oil prices tions,” ANZ bank said. ber of short positions in where it was in May, not in- million b/d, as its crude ex- International bench- ports saw a slight dip, accord- mark Brent crude oil drifted lower on combi- Overall oil market the six most important cluding Congo while Russia on Tuesday reported a record ing to the survey. futures hit $84.94 per nation of rising oil pro- sentiment is bullish. Fi- petroleum futures and In all, the 12 OPEC mem- options contracts has high in its September output of barrel, up 36 cents, or duction in Saudi Arabia nancial traders have ac- 11.356 million b/d, up 390,000 bers with quotas brought com- and Russia and a build- cumulated bullish long fallen to the lowest level b/d from May. pliance down to 110 percent, 0.4 percent from their from 115 percent in August, as last close. US West Tex- up of inventories in the positions betting on a since before 2013, creat- Libya tied with Saudi Ara- bia for the biggest monthly the bloc intends to end over- as Intermediate (WTI) US. That said, prices re- further rise in prices ing a near-record imbal- compliance with cuts that have ance between bullish gain, with its output rising to crude futures were up mained resilient as sup- amounting to almost 1.2 1.05 million b/d, as militancy been in force since January 2017 ply worries persist amid billion barrels of oil. and bearish positions in around its oil facilities quieted. under its plan to boost produc- 41 cents, or 0.6 percent, tion by 1 million b/d. Libya and at $77.74 a barrel. looming Iranian sanc- Meanwhile, the num- financial crude markets. Angola also showed a signifi- cant gain, with production ris- Nigeria were exempted from the cuts, while Congo was never ing 50,000 b/d in September Oil producers need to pump more or put demand growth at risk - IEA given a quota. US accuses OPEC of withholding

ising oil prices boost supplies, according executive director of the Birol said. “The oil export- 1.42 million b/d of spare capacity may hurt demand to the International Energy Paris-based adviser, said, ing countries must, in my he US State Depart- in some of the Agency. referring to the IEA’s fore- view, take these develop- ment accused OPEC of world’s fastest- “I would not be sur- cast for demand growth ments into consideration withholding 1.42 mil- Rgrowing nations unless prised if we revise our this year of 1.4 MMbpd. and it is high time for those T lion b/d of spare capacity from producers take steps to numbers,” Fatih Birol, the High energy prices are countries to put more oil in the world market. hurting consumers today, the markets and comfort Citing an OPEC spare ca- and could hurt the econo- the markets.” pacity estimate from the US mies of exporting coun- India is among emerg- Energy Information Adminis- tries tomorrow, he said. ing market economies tration, State said that Trump Brent crude, bench- struggling with a combina- administration officials are mark for half the world’s tion of a weakening cur- working with OPEC to pro- oil, has gained more than rency and rising oil prices. duce the spare capacity they are “not deploying.” State said 1 million b/d within a year. 20 percent since mid- The nation, which enjoyed that US was “doing its part” to August due to concern a 12th straight month of “The United States is doing meet rising global demand. its part to add to the oil supply,” over supply losses from demand growth in August, “The United States con- Venezuela and Iran. Saudi could see its trade defi- the spokesperson said. tinues to engage with OPEC The statement comes as Arabia, the world’s largest cit worsen because of the countries and we encourage President Donald Trump has exporter of crude, is com- high crude, according to them to utilize their spare ca- pressed Saudi Arabia to boost fortable with Brent above Birol. The nation moved to pacity to ensure world oil sup- oil output in order to stabilize $80/bbl as the global mar- cut retail fuel prices. ply meets the demand,” the prices and continues to criti- ket adjusts to the loss of “With these prices, I State spokesperson said in a cize OPEC nations for driving Iranian supply from US would expect that the de- statement. up prices. sanctions. Brent traded mand growth in India, The spokesperson said OPEC, Russia and nine near $86/bbl, the highest other parts of Asia and in that while OPEC and non- other countries pledged in OPEC producers, including June to reduce overcompli- in almost four years. the Americas will be nega- Russia, “continue to withhold “We are rather worried tively affected,” Birol said, ance with production cuts production,” the US is ramp- that have been in force since that the expensive energy adding that there may ing up output, citing an EIA is back, which may be be slowdown in demand January 2017, which they say estimate that domestic pro- will result in a 1 million b/d hurting the global econo- growth. duction will increase by nearly output rise from May levels. my at a vulnerable time,” 08 BUSINESS DAY C002D5556 Wednesday 10 October 2018 WEST AFRICA ENERGY intelligence In association with talking points Pipeline sabotage shortchanged Nigeria’s higher oil prices revenue

DIPO OLADEHINDE

s the prices of crude, Nigeria’s biggest revenue earner hit fresh high of $86 last week; Nigeria major oil compa- nies are losing more output of up to 40A percent to Nembe Creek line vandalism. The challenge of escalating pipeline van- dalism has being one major issue confronting the Nigeria Petroleum industry since crude oil was discovered in Oloibiri, a small community in Ogbia local government area, Bayelsa state. Aiteo, Eroton and Newcross, three of Nige- ria’s oil independents are losing as much as 40 per cent of their crude production to oil theft along the Nembe Creek Trunk Line (NCTL), which has continued to be a favorite area for oil thieves and vandals, according to sources familiar with the happenings. Aiteo Group, one of the oil industry’s well positioned oil production companies in the country, which also jointly owns the Nembe Creek Trunk Line; Eroton Exploration and led to decline in the country’s total crude line where illegal connections for diversion of put NNPC at a disadvantaged competitive posi- Production Company Limited and Newcross exports. According to the company, “NCTL products had been observed almost on a daily tion as a total of 1, 621 vandalized points have Petroleum all pump their crude output through has been shut down for over 145 days and an basis,” NNPC said. been recorded between May 2017 to May2018 the troubled 150,000 capacity pipeline which approximate deferment of 50.386 million bar- Oil capitalism coupled with poor gover- which increased compared to the total of 1, 484 has up to 24 illegal bunkering points. rels per day for the six injectors into the trunk nance and neglect of basic human rights has vandalized points have been recorded between The NCTL was the single largest project line since Aiteo took over the operatorship in created a myriad of problems in the communi- April 2017 to April 2018. undertaken by the SPDC in the Niger Delta. It 2015.” Aiteo purchased a 45 percent stake from ties in the Niger Delta. Pervasive poverty, lack According to the report, the Aba-Enugu was commissioned in 2010 and cost $1.1 bil- Shell in September 2015. of employment, fuel shortages and pursuit of pipeline segment accounted for 78 vandalized lion to construct. It was constructed to replace In the first half of 2018, NNPC lamented entitlements from the petroleum sector drives points, representing 84.78 per cent of total the ageing and often vandalized Nembe Creek about the high rate of pipeline vandalism wit- citizens towards the vandalizing the pipelines vandalized points on the nation’s network of Pipeline, which had suffered significant losses nessed in the south-eastern part of the country. that criss-cross their communities. products pipelines. due to incessant fire outbreaks, sabotage and The Corporation’s spokesman, Ndu The Niger Delta, which fuels Nigeria’s econ- The report further showed NNPC gains of theft. Ughamadu stated that more than 50 per cent of omy and accounts for 95 percent of Nigeria’s N180.7 million made by NNPCs upstream and Aiteo produces 90,000 barrels per day, one petroleum products pumped through the Aba- export earnings and over 80 percent of Federal gas processing subsidiaries such as the Nigerian of the highest by an independent in Nigeria Enugu pipeline network was mostly stolen. Government’s revenue, remains the one of the Petroleum Development Company (NPDC), and is operating company of oil mining license In the press statement, NNPC spokesman poorest regions of the country. RETAIL and Nigerian Gas Processing Trans- (OML) 29; Eroton, operating OML 18, produces noted that at some point about 700 breaches Theft of oil and gas products and pipeline portation Company Limited and Pipelines and 63,000 per day, while Newcross, operator of were recorded on the pipeline adding that the vandalism in Nigeria trail movements in the Product Marketing Company (PPMC), were OML 24, pumps an average of 30,000 barrels situation had hampered efficient supply and global oil prices, rising prices have foreshad- wiped off largely by its downstream subsidiary per day, Nigerian National Petroleum Corpora- distribution of petroleum products not only in owed increased incidents of vandalism, data operations which recorded deficits north of tion’s (NNPC) data showed. the state, but in the entire South-East region. compiled by BusinessDay showed. N118.7 million according to figures from the The Aiteo-operated pipeline has experi- “The Osisioma and Nsirimo areas (both in Further analysis of NNPC monthly report organization’s operations and financial report enced long periods of shut-in this year, which Abia State) as well as Ishiagwu (in Ebonyi State) for the month May showed products theft and for 2018 actual. were the major vandalism flash points along the vandalism have continued to destroy value and