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New law to enable pension contributors 

access mortgage using RSA balance 

P. 2 

NEWS YOU CAN TRUST I ** THURSDAY 21 MAY 2015 I VOL. 13, NO 100 I NGN300 

Shrinking space, 

regulation push 

brokers out of business 

MODESTUS ANAESORONYE 

Small scale brokerage firms 

in Nigeria risk extinction 

over their inability to generate 

substantial income to remain 

in business. They likewise face 

the hazard of tightening regulatory 

requirements, BusinessDay 

investigation reveals. 

Their plight becomes more 

dire, as the business environment 

gets more sophisticated 

and competitive, as a result of 

shrinking opportunities in the 

commercial insurance space 

which brokers typically find 

most profitable. 

Analysts who spoke to BusinessDay 

last night, said small 

brokerage firms would have to 

contend with a lot of regulatory 

requirements, which are not 

unique to Nigeria, but constitute 

a demand across the global 

insurance space, requiring regulatory 

authorities to institute 

corporate governance culture to 

protect consumers. 

The analysts say a test cases 

is compliance with the International 

Financial Reporting 

Standard (IFRS), monthly and 

quarterly returns, which has 

posed a lot of problems for many 

brokers, in terms of compliance. 

Nicholas Okpara, director, 

supervision, National Insurance 

Commission (NAICOM) 

said most brokers have been 

unable to comply with the 

transition to IFRS, blaming 

it on lack of organisational 

structure in most firms. 

“A large number of the in- 

Inside 

Continues on page 4 

News 6 

Comment 10 

Editorial 12 

Companies & Markets 13 

Money 17 

Investor 19 

Garden City Business 23 

Legal Business 29 

Politics 37 

Nigerians to contend with 

disruptive TV signals in June 

Nation set to miss digital switch-over deadline 

BEN UZOR 

Millions of Nigerians 

will likely 

contend with 

disruptive television 

signal 

interference from neighbouring 

countries from June 16. 

FRC board moves to right Obazee’s wrongs 

After series of revelations 

which cast a pall on 

the corporate governance 

structure of the 

Financial Reporting Council of 

Nigeria (FRC), the board members 

rose from a meeting this 

week, deciding to right some 

of the anomalies caused by Jim 

Obazee, the council’s executive 

secretary. 

This will be as a result of 

the failure of successive governments 

to empower the National 

Broadcasting Commission 

(NBC) to meet the much 

anticipated June 17 deadline set 

by the International Telecommunications 

Union (ITU) for 

the transition from analogue to 

A member of the board, 

who described last Monday’s 

meeting as ‘turbulent,’ insisted 

they are now striving to 

save the image of FRC, having 

also confirmed that they were 

‘hard’ on Obazee. 

As part of face-saving measures 

by the FRC, BusinessDay 

exclusively gathered that the 

board members have constituted 

two committees. The first 

committee is the Staff Promotion 

digital television broadcasting. 

Parts of Nigeria that could 

be most affected by signal disruptions 

include those sitting 

close to the border with Niger 

Republic, Benin and Cameroon, 

especially since these nations 

are likely to achieve migration 

ahead of Nigeria. 

Committee, while the second is 

the Policy Committee. 

It was further learnt that the 

Promotion Committee is mandated 

to implement a‘long overdue 

promotion exercise’ of the 

majority of FRC staff, in line with 

the new salary structure. Recall 

that there was a two grade-level 

demotion of all the staff of FRC 

contrary to Civil Service rules. 

“The question is how realistic 

will the constituted Promotion 

Digital Broadcasting Migration 

(DBM) is a process in which 

broadcasting services offered on 

the traditional analogue technology 

are replaced with digital based 

networks over a specific period. 

Experts say digital broadcasting 

will offer the viewing 

public sharper picture quality, 

with reduced ‘ghosting’ and 

interference. Beyond that, the 

audio signal is much clearer, so 

TV viewers will enjoy improved 

sound quality. 

Nigerian TV viewers will not 

enjoy these benefits because 

the appropriate infrastructure 

and financial resources are not 

available to aid to the migration 

process, experts have said. 

It became evident last week 

that the country would not meet 

the ITU deadline when Emeka 

Mba, director-general of the 

NBC said that the earliest possible 

date for Nigeria to switch 

over from analogue to digital 

broadcasting is December 2017. 

This also implies that Nigerians, 

especially those living 

in close proximity to the 

borders with neighbouring 

countries may have to contend 

with disruptive signals 

for the next 18 months. 

With about a month to the 

L-R: Roman Zyla, lead regional corporate governance, International Finance Corporation (IFC) Africa; Eme Essien, country 

manager, IFC Nigeria, and Uyi Akpata, country senior partner, PwC/guest speaker, at the launch of the Africa Corporate 

Governance Programme in Nigeria, Lagos. Pic by Olawale Amoo Continues on page 4 

Constitutes promotion, policy committees 

BY OUR REPORTER 

Committee function because 

the staff conversion exercise was 

already wrong?” a source privy to 

the decision asked. 

The board meeting may 

be the last for all FRC board 

members before the incoming 

government of Muhamadu 

Buhari dissolves it, alongside 

other board members of Federal 

Government agencies. 

Maryam Ibrahim, chairman, 

FRC, at a press briefing this 

week, denied that there were 

Continues on page 4

2 BUSINESS DAY 

Thursday 21 May 2015 

NEWS 

Mu’azu resigns as PDP chair 

*Uche Secondus in in acting capacity; party probes Fani-Kayode; Anenih resigns as BoT chair 

OWEDE AGBAJILEKE, Abuja 

Adamu Mu’azu, 

the national 

chairman of the 

Peoples Democratic 

Party 

(PDP), on Wednesday threw 

in the towel. 

This followed intense 

pressure from some party 

members who insisted that 

the party leadership must 

resign for leading the party 

to embarrassing defeat at 

the just-concluded general 

elections. 

Briefing journalists on 

Wednesday on the resolutions 

of the 399th National 

Working Committee meeting, 

Wale Oladipo, national 

secretary of the party, hinted 

that Uche Secondus, the 

deputy national chairman 

of the party, steps in in acting 

capacity, pending the 

appointment of a chairman 

from the North East in line 

with the party’s constitution. 

He also disclosed that the 

status of the chairman of the 

board of trustees of the PDP, 

Tony Anenih, will be known 

on Thursday (today) after another 

round of NWC meeting 

which holds today. 

While stressing that 

Mu’azu’s resignation was 

voluntary, Oladipo also revealed 

that the NWC has set 

up a seven-man disciplinary 

committee to discipline erring 

members of the party. 

As at the time of filing in 

this report, it was discovered 

that Mu’azu is still abroad for 

medical attention, just as his 

chief press secretary, Tony 

Amadi, told BusinessDay 

that he was yet to return. 

He said: “The National 

Working Committee (NWC) 

of the Peoples Democratic 

Party (PDP) at its 399th 

meeting, Wednesday, May 

20, 2015 received and accepted 

the voluntary resignation 

of the national 

chairman of our great party, 

Ahmadu Adamu Mu’azu. 

“Consequently, in line 

with the provisions of sections 

45 (2) of the PDP 

constitution, the deputy 

national chairman, Prince 

Uche Secondus acts in place 

of the national chairman 

pending a replacement from 

the North East zone. 

The seven-man disciplinary 

panel which will be 

inaugurated Tuesday next 

week is headed by Michael 

Addul, with Tony Okeke as 

secretary. Other members 

include Mike Ogiadomhe, 

Teslim Folarin, Akilu Indabawa, 

Hassan Kafayas and 

Nonye Nwangwu. 

The party also asked its 

state chairman in Osun to 

investigate the membership 

of the spokesperson 

of the PDP Presidential 

Campaign Organisation, 

Femi Fani-Kayode. 

This followed his outburst 

against the Mu’azuled 

NWC on Tuesday 

where he also called for 

their resignation. 

A letter written by Oladipo 

on Wednesday to the Osun 

State chairman - a copy of 

which was made available 

to BusinessDay - requested 

the chairman to confirm if 

Fani-Kayode is a registered 

and financial member of the 

party and met out proper 

disciplinary action against 

him in line with section 58 (1) 

(b) of the party’s constitution. 

However, in a swift reaction, 

the former aviation 

minister described the action 

as laughable, insisting that all 

NWC members must resign. 

He wondered why the 

party would single him out 

when governors of Ekiti, Ayo 

Fayose; his counterparts in 

Jigawa and Niger, Sule Lamido 

and Babangida Aliyu, 

had made earlier calls for the 

NWC to resign honourably. 

Meanwhile, Tony Anehih, 

chairman, Peoples 

Democratic Party (PDP) 

board of trustees (BoT), on 

Wednesday resigned his 

position. 

L-R: Mohammed Abba-Gana, former minister of FCT; Emmanuel Awodu, representative, minister of FCT; Barnabas Gemade, former 

national chairman, PDP/chairman of the occasion; Nosike Ogbuenyi, author and Tanko Yeldin, executive officer, Naval Unit, Abuja, during 

the official unveiling of the book, ‘Fragrance of Diversity’ in Abuja. 

Picture by TUNDE ADENIYI 

Tiger Brands’ Nigerian arm 

hit by naira weakness 

Tiger Brands, South 

Africa’s biggest consumer 

foods manufacturer, 

reported 

flat first-half earnings on 

Wednesday, weighed down 

by its operations in Nigeria, 

reports Reuters. 

Tiger Brands, which 

makes cereal, energy drinks, 

pasta and rice, said diluted 

headline earnings per share 

fell by 1 percent to 837 cents in 

the six months ended March. 

Headline earning per 

share is the main profit 

gauge in South Africa that 

strips out certain one-off 

items. Sales rose 7 percent 

to 15.9 billion rand ($1.3 

billion). 

The company incurred 

significant foreign exchange 

losses in Nigeria, where its 

struggling Dangote Flour 

FG upgrades four colleges 

of education to universities 

ELIZABETH ARCHIBONG, Abuja 

The Federal Government 

has approved 

the upgrade of four 

colleges of education 

to federal universities 

of education. 

It also approved a new 

university of health sciences, 

which has been operating 

under the Federal 

University of Agriculture, 

Markudi, Benue State, 

granting it autonomy. 

This was disclosed at 

the post Federal Executive 

Council (FEC) meeting 

briefing by Patricia Akwashiki, 

information minister, 

alongside Ibrahim 

Shekarau, the minister of 

education. 

Akwashiki also announced 

that there will be a 

small handover ceremony 

on May 28, where President 

Goodluck Jonathan 

will hand over all the briefs 

collated by the secretary 

to the government of the 

federation, Anyim Pius 

New law to enable pension contributors access mortgage using RSA balance 

ONYINYE NWACHUKWU, Abuja 

Nigeria is about 

to reach another 

milestone 

in its pension 

industry as the 

National Pension Commission 

(PenCom) finalises a 

set of guidelines that would 

allow pension fund contributors 

access primary 

mortgages using their Retirement 

Savings Account 

(RSA) balances. 

Chinelo Anohu-Amazu, 

director general, PenCom, 

announced this on Wednesday 

in Abuja at a conference 

which discussed the new 

provisions and developments 

ushered in by the 

2014 Pension Reform Act endorsed 

by President Goodluck 

Jonathan last July. 

A major provision introduced 

by the new Act is to 

allow contributors seeking 

to own residential homes to 

apply part of their RSA balance 

as equity contributions 

for residential mortgage, 

subject to the guidelines to 

be issued by the commission. 

This is happening for the 

first time in Nigerian history 

and according to Anohu- 

Amazu, this remains the 

most important provision in 

the new law. 

“For the first time this is 

happening and it is fantastic 

because in a place where we 

have over 15 million housing 

deficit, the over 6 million 

contributors under the contributory 

pension will now 

be able to utilise part of what 

they have saved,” she stated. 

The second important 

provision, according to 

Anohu-Amazu, is the introduction 

of the minimum 

pension guarantee which assures 

that no matter what the 

RSA holder has contributed, 

he is guaranteed the basic 

minimum to satisfy and take 

care of him at old age. 

The new Pension Act repealed 

the PRA 2004 which 

among other things provided 

for the establishment 

of the Contributory Pension 

Scheme, uniform standards 

for pension administration 

as well as the National Pension 

Commission as the sole 

regulator and supervisor of 

pension matters in Nigeria. 

But it also introduced 

some provisions which, experts 

said, looked promising 

in the new era. Such include 

an upward review of the 

minimum pension contribution 

by the employee 

and employer from 15 to 18 

percent and has empowered 

PenCom to enforce sanctions 

and penalties against 

infractions. 

The Act has equally extended 

coverage for the informal 

sector which Anohu- 

Amazu said the commission 

is passionate about, having 

discovered that in the ten 

years of PenCom existence, 

the bulk of the working population 

remains outside of 

those in the formal sector. 

“We have the plumber, 

the electrician, the hairdressers, 

who have absolutely 

no retirement benefit 

plan. But our aim is to 

bring them in under the 

aegis of this 2014 Act so 

Mills business was hit by a 

25 percent devaluation in 

the naira, partly related to 

the impact of lower global 

crude oil prices. 

But Dangote Flour Mill’s 

underlying trading performance 

was healthy, which 

resulted in a 38 percent reduction 

in its trading losses, 

excluding currency effects. 

The company wrote 

down the value of its Nigerian 

arm by 849 million 

rand in May last year and 

by another 105 million in 

November. 

It said further foreign 

exchange losses could hit 

its Nigerian business in the 

second half of the year. The 

full inflationary impact of 

the weaker naira is yet to 

be felt by consumers in the 

country, Tiger Brands said. 

…as Jonathan hands over documents to Buhari May 28 

Anyim, from ministries, 

departments and agencies 

(MDAs) as his final handover 

note to president-elect, 

Muhammadu Buhari. 

The outgoing president 

and Vice President Namadi 

Sambo as well as the 

president-elect and his 

vice, Yemi Osinbajo, will 

proceed on a tour of Aso 

Rock facilities and end 

the day with a presidential 

gala night at the Aso Rock 

Banquet Hall. 

Before the approval of 

the conversion of the colleges 

of education, there 

were over 21 degree certificate 

awarding colleges 

of education in the country. 

Following the approval 

by FEC, the Adeyemi College 

of Education, Ondo 

State; Federal College of 

Education, Zaria, Kaduna 

State; Federal College of 

Education, Kano, Kano 

State and Alvan Ikoku College 

of Education, Owerri, 

Imo State were all upgraded 

to full university status. 

that they will be provided 

for in their old age.” 

She said PenCom has 

huge investable funds, but 

have been there primarily 

to pay retirement benefitsbut 

PenCom is now trying 

to insist that those funds 

are also deployed for investments 

in infrastructure 

such as power, transportation 

which would be 

utilised to ameliorate the 

austerity measure facing 

contributors. 

“This means that the 

funds will now be invested 

in projects that affect the 

contributors directly as well 

as retires alike.”


3



NEWS 

Shrinking space, regulation push brokers out... 

Continued from page 1 

surance brokers are one-man 

portfolio offices. The managing 

director is the CEO, he is the accountant 

and the secretary and he 

is also the dispatch rider, how can 

he understand what we are saying 

about IFRS? 

“At NAICOM, we have organised 

series of seminars to educate 

them on IFRS, and we have given 

them reporting format, but up till 

now, many of them have not submitted 

their 2012 IFRS returns,” 

Okpara disclosed. 

He further noted that a situation 

where the CEO attends 

IFRS training meant for the accountants 

and auditors is very 

disturbing. 

One of the brokers who shared 

his experience with BusinessDay, 

said the operating environment is 

tough; “We are finding it difficult 

to renew our licenses, we can’t 

meet regulatory requirements and 

business is not there.” 

He added,”the fact that the 

entire market space is controlled 

by ten percent of the brokers and 

government and their agencies, is 

not helping the rest of us”. 

Chris Davies, senior broker 

and account executive, Afro-Asian 

Insurance Services Limited, said 

“these are changing times for the 

global insurance market”, pointing 

out that local insurance brokers in 

Nigeria must begin to acquire new 

skills to be able to remain relevant. 

“If you want to control a reasonable 

share of the market, you 

must be ready to provide compelling 

services that make insurance 

consumers want to deal with you 

directly, instead of the underwriters, 

and you must at the same time 

be in tune with modern technology 

because that is the direction 

of the world today”, Davies stated. 

A senior council member of 

the Nigerian Council of Registered 

Insurance Brokers (NCRIB) 

who preferred not to be named, 

said it’s an acknowledged fact 

that the insurance industry generally 

is facing an uphill task in 

view of the parlous state of the 

economy, which is taking its 

toll on the insurance broking 

practice, in view of the fact that 

brokers are the professional intermediaries 

who interface with 

the clients that feel the pinch of 

the economy most. 

He however observed that the 

NCRIB is seeking ways to grow the 

market and the survival of the professionals 

by encouraging them to 

embrace the options of mergers 

or the shared services scheme. 

“The shared services scheme 

seems to generate better appeal 

from the brokers, as it helps them 

maintain their identity. Under the 

shared services, the collaborating 

entities share services at reduced 

cost, while they have greater opportunities 

to prospect for clients”. 

The greatest challenge the 

council member observed, is 

how to grow the market generally 

in such a way that even with less 

L-R: Precious Gbeneol, senior special assistant to the president on the Millennium Development Goals; 

Bala Mohammed, minister of FCT; Musliu Obanikoro, minister of state 2 for foreign affairs, and Tanimu 

Turaki, minister of special duties, at the valedictory Federal Executive Council meeting in Abuja, yesterday. 

NAN 

insurance broking involvement in 

terms of percentage, the little they 

get will enable them break even. 

Painting a global picture, he 

said a recent report from the British 

Insurance Brokers Association 

(BIBA), indicated that brokers 

control only about 54 percent of 

insurance market share, leaving 

the rest to other distribution 

channels. 

“It is ironic that brokers in Nigeria 

control up to 75 per cent, yet 

they are not as solvent as their UK 

counterparts. This tells us there is 

a need to grow the market and 

implore government to revive the 

FRC board moves to right Obazee... 


internal squabbles among the 

board members. 

Ibrahim told journalists 

(not BusinessDay) that: “I 

think what happened was that 

there were some arrears that 

needed to be paid to some 

categories of staff, but you 

know, this is a young board 

and eventually they were paid. 

Some members of staff also 

needed to be promoted, but 

it has to follow due process.” 

At the briefing, Ibrahim 

also refuted the allegation of 

financial impropriety leveled 

against the FRC management, 

saying that the board members 

had seen all the council’s bank 

documents and did not discover 

any missing funds. 

However, she forgot that 

there were questions raised by 

a board member on why the 

2014 accounts of FRC were audited 

late, explaining that as a 

regulator, it was inconceivable 

that the FRC was operating 

outside the ambits of the law 

that established it. 

It is particularly stated in 

section 38(2) that the accounts 

of the Council shall be audited 

not later than 60 days after the 

end of each financial year by 

external auditors appointed 

by the board. 

economy and promote insurance 

growth. 

According to him, countries 

such as Australia, are already 

practicing the variant of mergers, 

through the shared Brokers 

Administration Scheme, and it is 

hoped that this will help brokers 

stay afloat in Nigeria. 

The NCRIB does not subscribe 

to the view in some quarters, that 

existing brokers are too many, 

considering the population of 

Nigeria and the huge potentials 

that the industry has. 

Nigeria has over 500 registered 

brokerage firms. 

Before now, some board 

members had expressed dissatisfaction 

over the internal 

corporate governance style of 

the FRC leadership. 

In a letter which the chairman 

herself was privy to, a 

board member had questioned 

why the council’s account with 

Union Bank was overdrawn 

by about N40million. Among 

others, receivables of about 

N21.08 million, were questioned 

and the tenor of the 

advances and recipients were 

requested –an issue Ibrahim 

did not clarify. 

Also, there were questions 

on FRC bank charges valued 

at N636,440 which a board 

member say “does not tally 

with the information given at 

the last audit meeting, where 

it was stated that it was due to 

high cash withdrawal charges 

from banks. Why should the 

council be involved in large 

cash payments against the 

CBN guidelines on cash less 

society?” the board member 

asked. 

The Financial Reporting 

Council of Nigeria cancelled 

the public hearing on the draft 

National Code of Corporate 

Governance scheduled to hold 

last Tuesday following a court 

injunction. 

Nigerians to contend with disruptive TV signals... 


June 2015 deadline, Mba had 

also explained at a media forum 

held in Abuja, that three years 

into the process of digitisation, 

with zero allocation from 

the government and myriads 

of challenges before the NBC, 

such as aggregate content development, 

distribution and 

production, as well as unavailability 

of Set Top Boxes (STBs), 

the June 17 deadline was really 

uncertain. Speaking at a workshop 

organised for members 

of the National Assembly by 

the Nigerian Communications 

Commission (NCC) in Lagos 

recently, Stephen Bello, former 

acting executive vice chairman 

of the NCC, said the country 

was bound to miss the deadline 

because local manufacture or 

massive importation of STBs 

were yet to commence. 

According to industry experts 

familiar with the situation, the 

STBs would enable the present 

analogue TV sets to receive digital 

signals if there was a switch 

over in 2015. 

“Digital broadcasting is coming 

upstream, but the 2015 target 

for switchover to digital television 

is not achievable. Transmitting 

stations may be able to 

broadcast digital TV signals, but 

90 percent of television sets will 

not be able to receive the signals”, 

explained Bello. François 

Rancy,the ITU’s director of Radio 

Communication Bureau, had 

earlier warned that the June 17 

date, as set by the Regional Conference, 

could not be changed or 

extended. 

Rancy noted that “No revision 

of the agreement shall be undertaken 

except by a competent 

regional radio communication 

conference convened in accordance 

with the procedure 

laid down in the constitution 

and convention, to which all the 

member states in the planning 

area shall be invited.” 

While lamenting the inability 

of Nigeria to meet the ITU’s 

deadline, Mba explained that it 

took the United Kingdom (UK) a 

few attempts over about 14 years 

and nearly £6.4 billion to digitise 

broadcasting, but said that Nigeria 

need not take such length 

of time, if funds are made available 

and resources, efficiently 

managed. 

The Federal Government is 

yet to release the N60 billion 

to the NBC, a figure long earmarked 

as the cost of the Digital 

Switchover (DSO) process in the 

country. 

There are concerns amongst 

stakeholders in the telecoms 

industry. Market observers are 

however of the view that digital 

migration will free up requisite 

frequency spectrum under the 

control of the NBC, which the 

NCC can then clean up and re-allocate 

to deserving operators for 

the deployment of efficient and 

affordable broadband services. 

The country has an abysmal 

broadband penetration level, at 

10 percent. 

STANBIC IBTC MUTUAL FUNDS 

08/05/2015 

Stanbic IBTC Nigeria Equity Fund 

Offer price N8,957.42 

Bid price N 8,806.01 

Stanbic IBTC Ethical Fund 

Offer price N0.91 

Bid price N0.90 

Stanbic IBTC Guaranteed 

Investment Fund 



Stanbic IBTC Balanced Fund 

Offer price 

Bid price 

Stanbic IBTC Bond Fund 

N1,764.05 

N1,748.80 



Annualized Return 9.99% 

Stanbic IBTC Iman Fund 



Stanbic IBTC ETF 30 

Closing NAV Per Unit N106.71 

Stanbic IBTC Money Market Fund 

Yield 3.37% 06/05/15 

www.stanbicibtcassetmanagement.com 

“Past performance is not an 

Te1: +234 1 2801266 

indication of future performance”


5



NEWS 

SEC suspends BGL from all capital market activities 

IHEANYI NWACHUKWU 

Fashola inaugurates Nigeria’s only 

agrochemicals manufacturing plant by Candel 

The Candel Company 

Limited, Nigeria’s 

leading agricultural 

inputs development 

and distribution company, 

has announced that its integrated 

manufacturing facility 

for crop protection chemicals 

and foliar fertilizers at the Lekki 

Free Zone, Lagos, will be 

commissioned on Tuesday, 

May 26 by Governor Babatunde 

Fashola of Lagos State. 

The multi-billion naira 

project which is only in its first 

phase when completed will 

deliver a facility with capacity 

for 80 million litres of formulated 

products per annum. 

It will enable Candel to 

deliver solutions most suited 

to Nigeria’s tropical climate 

and peculiar farming systems. 

There is currently no local 

production of crop protection 

agrochemicals in Nigeria with 

over $400 million in foreign 

exchange expended annually 

to import them. 

Crop protection chemicals 

protect crops from 

weeds, pests and diseases 

when in the field, during 

transportation and in the 

store and help the quest for 

increased crop yields and 

better preservation by Nigerian 

farmers. Candel’s factory 

is configured to produce 

products specially targeted 

at small scale farmers as well 

as customized formulations 

with different surfactant levels 

for large scale farmers. 

The facility has five process 

plants for soluble liquids 

(SL), emulsifiable concentrates 

(EC) and suspension 

concentrates (SC) of products 

from diverse chemical 

families. It has sufficient 

capacity to supply Candel’s 

own distribution network 

in Nigeria and Ghana with 

enough spare capacity for 

third parties in Nigeria and 

overseas. The target of the 

international market influenced 

its location at the Lekki 

Free Zone. 

Construction of the production 

facility began in early 

2014 after an extensive Environmental 

Impact Assessment 

(EIA) exercise under the 

full supervision and guidance 

of the Federal and Lagos State 

ministries of environment. 

The Securities and 

Exchange Commission 

(SEC) 

has suspended 

BGL Asset Management 

Limited, BGL 

Capital Limited and BGL 

Securities Limited from all 

capital market activities. 

The capital market regulator 

also suspended all 

sponsored individuals of 

BGL Asset Management 

Limited, BGL Capital Limited 

and BGL Securities 

Limited whose particulars 

are contained in the 

commission’s record as at 

December 2014 from performing 

any capital market 

activity. 

These are the verdicts of 

the Executive Management 

Committee of SEC following 

its meeting held on May 

19, 2015 which considered 

the report of a detailed investigation 

into the various 

complaints received from 

investors against subsidiaries 

of BGL Group. 

SEC also ruled that Albert 

Okumagba, the group 

managing director of BGL 

Group, should cease to be 

a registered sponsored individual 

with the commission 

following the withdrawal of 

the registration of BGL Plc 

as a capital market operator. 

“He is therefore no longer 

entitled to carryout 

capital market activities”, 

SEC said. 

Also, SEC said that all 

suspicious transactions 

Charles Anudu, the chairman 

of the Candel Company, 

underlined the company’s innovative 

and entrepreneurial 

spirit as well as the many years 

of experience in the field of 

crop protection and nutrition 

thus: “Our company has a 

reputation for being at the 

leading edge of innovation 

and entrepreneurship that 

have helped to frame our 

industry in the context of 

the local realities. Our world 

class factory is geared towards 

tailor-made solutions that 

address the peculiarities of 

our farming systems thereby 

improving the industry economics 

and competitiveness 

of West Africa’s crop farmers”. 

“We are determined to 

restore the quality standard 

that has since declined in 

our industry by ensuring that 

every product that is made in 

our facility meets the highest 

international standard 

for such a product. Nigerian 

farmers will get peace of mind 

when they buy any of the 

products made in this factory”, 

added Emmanuel Kattie, the 

managing director of Candel. 

observed in the course of 

the investigation have been 

referred to the appropriate 

law enforcement agencies 

for further investigation and 

that BGL Asset Management 

Limited, BGL Capital 

Limited and BGL Securities 

Limited and all individuals 

involved in the management 

of the said companies 

have been referred to the 

SEC Administrative Proceedings 

Committee (APC) 

which will give all parties to 

the cases fair hearing. 

L-R: Chinua Azubuike, managing director, DLM Advisory Partners; Kehinde Ogundimu, chief finance officer, Nigeria Mortgage 

Refinance Company Plc (NMRC), and Charles Inyangete, MD/CEO, NMRC, at the NMRC bond issuance investor 

roadshow in Lagos. Pic by Olawale Amoo 

Oshiomhole moves to 

boost IGR, sets up board 

Governor Adams 

Oshiomhole of 

Edo State has 

taken a practical 

step to boost the internally 

generated revenue of the 

state which has continued 

to dwindle by inaugurating 

the Edo State Internal Revenue 

Service Board. 

Speaking while inaugurating 

the board in his 

office, Wednesday, the governor 

said there was the 

need to build strong institutions 

rather than strong 

individuals if the country 

is to make progress in the 

comity of nations. 

He said: “We have since 

established the Edo State 

Board of Internal Revenue 

and the whole idea is to create 

an institution that is not 

going to be bogged down 

by the usual civil service 

bureaucracy. We do need to 

be able to collect taxes and 

to collect efficiently and to 

ensure that taxes collected 

are all reflected in the accounts 

of government. 

“The taxes we collect, 

small as it is has even reduced 

and yet government 

is still working on projects 

in various areas. The Federal 

Government immediately 

after the elections abandoned 

their projects. We 

will not deceive our people 

at the eve of election, for us 

service is the basis why we 

are in government and we 

must sustain it. 

“Some of the modest 

NNPC $20bn scam: Alison-Madueke sells 

NPDC to escape probe, striking unions allege 

YANGE IKYAA, Abuja 

lion of which, he said, was 

linked with NPDC. 

On Tuesday, the Petroleum 

and Natural Gas 

Senior Staff Association 

of Nigeria (PENGASSAN) 

and the National Union 

of Petroleum and Natural 

Gas Workers (NUPENG) 

directed all employees of 

the Nigerian Petroleum 

Development Company 

(NPDC), a subsidiary of 

the Nigerian National 

Petroleum Corporation 

(NNPC), to shut down indefinitely 

their locations 

and all oil production 

facilities nationwide. 

The NNPC headquarters 

in Abuja was also shut 

down on Wednesday, as 

union members barricaded 

the main entrance 

into the facility, preventing 

anyone from gaining 

access into the complex, 

except some general 

managers who were seen 

being conveyed through 

the partially withdrawn 

barricades in their official 

jeeps. 

“Madam (Diezani) 

Ni gerian oil 

workers who 

commenced an 

indefinite strike 

on Wednesday over the 

“controversial” privatisation 

of NNPC assets have 

accused Diezani Alison- 

Madueke, the minister of 

petroleum, of transferring 

government assets 

to private owners in order 

to evade possible probe 

over NNPC’s missing $20 

billion. 

Sanusi Lamido Sanusi, 

former CBN governor 

and now Emir of Kano, 

in September 2013 wrote 

President Goodluck Jonathan, 

alleging that $49 

billion was not remitted 

to the federation account 

by the NNPC. 

Following the controversy 

generated by his 

letter, a committee was 

set up by the Federal Government 

to reconcile the 

corporation’s accounts, 

and Sanusi later said the 

unremitted fund was $12 

billion and finally settled 

at $20 billion, about $6 bilachievements 

we have 

made are the result of 

meticulous planning, but 

also a determination to 

do things differently. The 

basis for the last election 

campaign was change. 

We have changed not just 

the president, we have 

changed the way Nigerian 

is governed, and we have 

changed the way Edo State 

is governed. So these reforms 

are attempts to make 

these changes a reality. 

“Today, I am proud to 

say to our people that we 

are one of the few states, 

maybe not up to ten or 

fifteen states across the 

country that is able to pay 

salaries as at when due 

and as the economy deteriorates 

further the challenge 

will become even 

much tougher and as they 

say tough times don’t last, 

tough people do”, he said. 

“Rather than we lamenting, 

we rather take extraordinary 

steps to ensure 

that we succeed. We cannot 

influence international oil 

prices, that is beyond us, 

we cannot even influence 

how much we sell that. It is 

in the hands of the Federal 

Government, but we can 

influence what we do to 

ensure that those who are 

taxable under our laws that 

is the laws of the Federal 

Republic of Nigeria pay tax 

and when they do pay the 

money is kept in government 

coffers. 

...urge FG to reverse sale of OMLs 40, 42 

has sold what seems to 

be the whole of NPDC 

(Nigerian Petroleum Development 

Company) to 

so-called private investors, 

but what we suspect 

is that she is only trying to 

play safe and avoid being 

probed by the incoming 

government of General 

Muhammadu Buhari over 

the missing $20 billion, 

as she thinks the government 

will be logically 

blocked from probing the 

new owners,” one of the 

protesters wearing red 

robes told BusinessDay 

on condition of anonymity 

Ȧccording to him, “The 

deal has already been 

sealed and approved for 

take-off next week Monday 

and the workers don’t 

want it to happen, that’s 

why they have started 

their protest now. The 

over N200 billion being 

owed oil marketers is 

another issue we want 

resolved and we are doing 

it for generations yet 

unborn.”


Reps suspend 

consideration 

of PIB 

KEHINDE AKINTOLA, Abuja 

Ongoing consideration 

of the Petroleum 

Industry 

Bill (PIB) in the 

House of Representatives 

on Wednesday suffered 

major setback due to some 

conflicting overlapping 

clauses. 

The lawmakers during 

the consideration of the 

recommendations of the 

ad hoc committee on PIB 

and the principal bill failed 

to reach compromise on 

the proposed revenue accruable 

to the federation 

account from exploratory 

licences issued to prospective 

companies in the petroleum 

industry as contained 

in clause 209. 

Some of the lawmakers, 

who spoke on the clause, 

kicked against $4 per barrel 

of gas and 20 cents on a barrel 

of crude revenue from 

activities of oil companies 

to be used for the take off 

of River Basins exploratory 

activities. 

In his remarks, Abdurahman 

Terab (APC-Borno) 

noted that such charges are 

peculiar to all oil producing 

countries. 

APC governors adopt 

strategies for improved 

governance 

Outgoing and 

incoming governors 

on the 

platform of the 

All Progressives Congress 

(APC) have resolved to 

replicate positive governance 

strategies in all 

APC-controlled states. 

This is contained in 

a communiqué released 

shortly after a one-day retreat 

attended by the APC governors 

in Abuja on Wednesday. 

According to the communiqué, 

the governors 

agreed to embark on a 

peer review mechanism 

to facilitate and replicate 

positive governance strategies 

and policies in all 

their respective states. 

They further resolved 

that: ‘’All those who hold 

leadership positions in the 

party should be ready to instigate 

the right followership 

that will produce results. 

“The country cannot 

decide to entirely ban importation 

of foreign products 

but look for ways to 

create competitive markets 

to compete with imported 

products. 

“The Nigerian economy 

needs to be diversified 

especially towards agriculture.’’ 

Blair asks Buhari to crack vested 

interests in NNPC in 100 days 

KEHINDE ABDULSALAM, Abuja 

Tony Blair, former 

British prime minister, 

has urged the 

incoming administration 

of Muhammadu 

Buhari to spare no effort in 

“cracking” the vested interests 

that have shrouded 

the nation’s oil sector in 

secrecy with emphasis on 

Nigerian National Petroleum 

Cooperation (NNPC) 

in 100 days of assumption 

of office as president. 

Blair, who was represented 

by Peter Mandelson, 

a British Labour 

politician, at the All Progressives 

Congress’ (APC) 

two-day policy dialogue on 

the implementation of the 

agenda for change in Abuja 

on Wednesday, implored 

the incoming government 

not to get entangled in 

the schemes of “vested 

interest” in the nation’s oil 

sector, but do all it can to 

crack it. 

Blair argued that the 

people could easily see 

through a government that 

Fire guts BusinessDay Aba city office 

GODFREY OFURUM, Aba 

City staff of BusinessDay 

Media 

Limited, the leading 

publishers of 

daily business newspaper in 

Nigeria, are currently counting 

their losses following an 

inferno that engulfed their 

Aba office, situated at 61 St. 

Michael’s Road, in the heart 

of the commercial city of 

Abia State. 

was held captive by vested 

interests, hence the need 

for the Buhari government 

to take tough decisions in 

breaking the vested interests 

in different sectors of 

the country. 

“What you do in the first 

100 days is important; your 

vulnerability in Nigeria 

is corruption, that is not 

new to you but particularly 

around the oil sector. 

People in this country seem 

to do things with high level 

of impunity and beyond 

the reach of the rule of law 

or any sort of proper accountability 

let alone the 

judicial system. You can 

crack the NNPC knot or 

at least make a start on it 

in your first one hundred 

days in office and if you 

do so, you will have built a 

very strong foundation for 

what you have to do in the 

next four years and beyond, 

that’s how important it is”, 

he said. 

The former British prime 

minister also applauded 

Nigeria for its conduct of the 

largely peaceful elections. 

The inferno, which 

started about 10.00p.m on 

Saturday, according to eyewitnesses, 

was attributed 

to power surge. However, 

the fire was quickly extinguished 

by residents before 

it could affect other offices 

and buildings close by. 

According to Ken 

Okonkwo, a resident, who 

participated in dousing the 

fire, the fire department at 

Constitution Crescent were 

“There were many people 

in the international 

community who doubted 

Nigeria, some believed 

that the elections would 

divide Nigeria and make 

her weaker, but you have 

proved them wrong.” 

While he advised the 

incoming APC government 

to be true to its word 

and keep its promises to 

Nigerians, the former British 

prime minister emphasised 

on the need to 

operate a single account 

for revenues generated by 

the government, saying this 

will be vital to sustaining 

the country’s future. 

“Take advantage of the 

goodwill that comes with 

being elected and take difficult 

decisions. It is also 

important for your government 

to ensure that all 

government revenues are 

deposited into a single government 

account. Those 

revenues from your huge 

natural resources are so 

vital for your country and 

its future”, he noted. 

He said his Labour party 

contacted immediately the 

fire was noticed, saying 

they couldn’t wait for the 

firemen to arrive as the fire 

continued to spread. 

“After waiting for a while 

and the firemen were nowhere 

around, we decided 

to make effort, using water 

from a borehole situated 

opposite the three-storey 

building”, he said. 

Continuing, he said, 

“A little delay would have 

in Britain had kept the trust 

of the British people for 30 

years, but lost control of 

the government in 2010 

because it lost direction. 

“You will get more 

goodwill and authority to 

do difficult things at the beginning 

of your term than 

at the end,” he said. 

Blair advised against 

the discrimination of some 

sections of the country who 

did not vote for the APC in 

the presidential candidate. 

“You need to show the 

people who did not vote 

for you that you care about 

their interest,” he said. 

He further urged the 

incoming government to 

remain focused in the face 

of distractions. 

“Don’t get distracted, 

your job is to make sure 

things don’t turn out as 

usual. Don’t keep compromising. 

Your job is to keep 

on track,” he advised. 

“And with a good dose of 

luck, you will get the verdict 

you need four years after 

to know how well you’re 

working.” 

L-R: Loro Mandelson, representing Tony Blair with Yemi Osinbajo, vice president-elect, at the implementation of the agenda 

for change with theme ‘Implementing Change: From Vision to Reality’ held in Abuja. Picture by TUNDE ADENIYI 

been disastrous, as the fire 

would’ve affected other offices 

in the building as well 

as surrounding buildings. 

The DSTV office, which is 

very close to the building, 

wouldn’t have been spared”. 

He, however, noted that 

the firemen came minutes 

after they had put out the fire. 

Items destroyed in the inferno 

included office furniture, 

piles of unsold newspapers 

and important documents. 

BUSINESS DAY 

7 

NEWS 

Jonathan calls on 

global community, 

Nigerians to support 

Buhari’s government 

ELIZABETH ARCHIBONG, Abuja 

President Goodluck 

Jonathan on 

Wednesday in Abuja 

called on the global 

community and Nigerians to 

support the incoming government 

of president-elect, 

Muhammadu Buhari. 

Receiving members of 

the African Ambassadors 

Group, who were on a farewell 

and solidarity visit to the 

State House, the president 

said the incoming government 

will need the cooperation 

and commitment of the 

global community and Nigerians 

to effectively deliver on 

its promises to the people. 

“The president-elect is 

not new to governance in 

Africa so I want you to show 

the same commitment to 

him as you have to me. The 

president-elect knows that 

our commitment is always 

to project Africa. I am urging 

you to extend the same 

warmth and solidarity you 

have shown to me to him,” 

he said. 

President Jonathan further 

enjoined African leaders 

to encourage trade within 

the continent by building 

infrastructure and institutions 

that promote trade and 

relationships. 

The president recalled 

working extensively for more 

than five years with other 

African presidents to forestall 

crisis in some African 

countries, especially in the 

West African sub-region, 

and also leading peace efforts 

in some of the countries 

like Cote ‘d’Ivoire, Mali and 

Guinea Bissau. 

“I have been involved in 

solving many problems in 

African countries for more 

than five years and I know 

the enormity and cost of 

conflicts, especially on the 

citizenry. We cannot afford 

that in Nigeria. 

“If we were to have a 

political conflict in Nigeria, 

I am not sure the sub-region 

will be able to accommodate 

our citizens. My commitment 

is to always put the 

country before my personal 

ambition and that is what 

I have demonstrated,” he 

said. 

President Jonathan, who 

said he would always be 

committed to strengthening 

democracy in Nigeria 

and Africa, noted that his 

decision to concede victory 

was to show example to the 

world that democracy can 

survive and thrive in Africa 

without conflicts. 

“I believe that character 

matters in leadership. 

And it is not just about who 

becomes the president of a 

country, but somebody has 

to be there and the person 

needs the support of all to 

succeed. I made a choice to 

keep the country away from 

conflict.”

8 

Thursday 21 May 2015


9



COMMENT 

BILKIS BAKARE 

Bakare is of the Features Unit, Lagos 

State Ministry of Information & Strategy, 

Alausa, Ikeja. 

With the emergence 

of Akinwunmi 

Ambode 

as the 

governor-elect 

of Lagos State, the question of 

who succeeds Governor Babatunde 

Fashola when he leaves 

office has now been finally laid 

to rest. Many people are understandably 

interested in who succeeds 

Fashola judging from the 

unusual style of governance he 

brought on board in Lagos State. 

That Fashola has transformed 

Lagos State in the last eight years 

is an understatement. Without a 

doubt, Fashola has done enough 

to ignite hope on revival of value 

delivery in public administration 

in Nigeria. Lagos State under 

his leadership has become a 

model for good governance in the 

country and a brand that markets 

Nigeria to the international 

community. 

Right from the inception of his 

administration in 2007, Fashola 

promised a “Brighter, Rewarding 

Future” for the inhabitants 

of the state. To actualize his 

vision of making Lagos State 

Africa’s model megacity and 

global economic and financial 

hub through the eradication of 

poverty, sustainable economic 

growth and aggressive infrastructure 

renewal and development, 

he created a development document 

called Ten Point Agenda 

(TPA). The TPA is the compass for 

the implementation of policies, 

No doubt, with his 

pedigree, the incoming 

governor, Akinwunmi 

Ambode, is up to the task 

as he is passionate about 

developmental issues. He 

has been raising young 

leaders and professionals 

through his NGO and 

contributing to the society 

comment is free 

Send 800word comments to comment@businessdayonline. 

Consolidating Fashola’s successes in Lagos 

programmes and projects of the 

Fashola administration. Under 

the agenda, the state’s development 

challenges are grouped 

into roads and transportation, 

power and water supply, public 

security, food security, health, 

education, housing, environment 

management and physical 

planning, employment generation 

and revenue enhancement. 

On each of the TPA’s areas of 

focus, the Fashola administration 

has recorded landmark 

achievements. For instance, the 

administration has demonstrated 

creativity and doggedness in 

its environmental regeneration 

programme. An example that 

readily comes to mind is the 

transformation of the once-notorious 

Oshodi. Equally, Lagos 

highways and streets are now 

cleaner and beautiful as flowers 

and trees adorn once-neglected 

and rejected spots which have 

now been transformed into recreational 

centres. 

The administration developed 

an integrated transportation 

system through the Bus 

Rapid Transit (BRT) scheme, 

first of its kind in sub-Saharan 

Africa. The administration also 

commenced the construction 

of the light rail system which 

the in-coming administration is 

expected to complete. Various 

road projects were embarked 

upon, both in the urban and 

rural areas. The latter was geared 

towards opening up the hinterland 

with the vision of achieving 

improved economic activities in 

these areas. 

Also, Lagosians now have 

access to qualitative health care 

without financial, cultural or political 

barriers. This was achieved 

through the various Eko Free 

Health Missions, the revitalization 

of primary health-care 

centres to run for 24 hours with 

the aim of decongesting the secondary 

health facilities. Maternal 

and child-care centres were built 

in various locations in the state as 

well as the construction of 20-bed 

Highway Accident and Emergency 

Centre at the Toll Gate, Lagos/ 

Ibadan Expressway. 

However, based on new realities, 

the administration’s recent focus 

on PATH (Power, Agriculture, 

Transportation and Housing) is a 

reflection of a new resolve to move 

the state forward and along the 

path of emerging world economies 

such as Brazil, India, China 

and South Africa. 

In order to address the shortfall 

and ensure stable power supply, 

the administration constructed Independent 

Power Plants at Ikeja, 

Ikorodu, Akute and Lagos Island. 

It is currently pursuing similar 

projects at various locations in 

the state. 

Nigeria was listed by the World 

Bank as one of the countries with 

the highest domestic food price 

increase among 58 countries surveyed 

by the Food and Agricultural 

Organisation. To correct this imbalance, 

the administration built a 

20,000-metric-tonnes-per-annum 

rice milling plant, established 

the rice-for-job programme to 

productively engage the youths 

in the state, and set up the Lagos 

State Marine Agriculture 

Development Programme for 

the utilization of the state water 

resources. 

Emphasis was placed on the 

intermodal model of transportation 

through the implementation 

of two rail lines – Red line to run 

from Agbado to Marina and Blue 

line to run from Okokomaiko to 

Marina. Operation of efficient 

ferry service system, side by 

side with the now-tested-andtrusted 

BRT system and very 

comfortable privately-operated 

taxis shows that the Lagos State 

government is already breaking 

new grounds in the transportation 

sector. 

Delivering on its promise to 

provide functional and comfortable 

shelter for the residents 

of the state, regardless of their 

status and cultural backgrounds, 

the Babatunde Fashola administration 

introduced the Lagos 

Home Ownership Mortgage 

Scheme (Lagos-HOMS). The 

progress made on the scheme 

was as a result of rigorous planning, 

financial discipline, prudent 

management of resources 

and sheer commitment. 

A visionary and creative leader, 

Fashola has always reiterated 

the need to prepare for a future 

without oil. According to him, 

the most visible way to achieve 

this is to embrace tourism. Tourism 

in the state could as well 

become a major source of investment 

and revenue for the state. 

Diverse programmes such as 

the Black Heritage Festival, The 

Lagos Carnival, etc are some of 

the various ways in which the 

government is attracting tourists 

and subsequently generating 

employments and revenue 

for the people and the state, 

respectively. 

There is no doubt that the 

Fashola administration has rebranded 

Lagos State and its 

legacies will, undoubtedly, remain 

indelible. It has, therefore, 

become a huge task for the incoming 

administration to consolidate 

as well as surpass the 

achievements of the outgoing 

administration. The incoming 

administration should be ready 

to build on the existing policies 

and programmes in Lagos State 

to further maximize the potentials 

inherent in them. No doubt, 

with his pedigree, the incoming 

governor, Akinwunmi Ambode, is 

up to the task as he is passionate 

about developmental issues. He 

has been raising young leaders 

and professionals through his 

NGO and contributing to the 

society from which he has gained 

so much. 

A retired civil servant who 

served Lagos State meritoriously 

for 27 years, Ambode held key 

positions across all cadres of the 

state’s civil service such as the 

auditor general for local governments, 

permanent secretary, 

Ministry of Finance, and accountant 

general of Lagos State. These 

experiences coupled with his 

youthful energy and vision will 

assist him in delivering on his 

electoral promises to the people 

of the state. 

So, Lagosians should be prepared 

for a jolly good ride because 

Ambode’s campaign slogan 

– Itesiwaju Eko, ohun loje wa 

logun (I am concerned about the 

progress of Lagos) – is a pointer to 

the fact that the gains of the Tinubu 

and Fashola years are about to 

be properly consolidated for the 

common good of all Lagosians. 

Send reactions to: 

comment@businessdayonline.com 

OWOLABI ADEKUNLE 

Adekunle is a financial analyst. 

With May 29, 2015 

around the corner, 

many critics 

and self-appointed 

analysts of the Goodluck 

Jonathan administration have 

become more vociferous than 

ever. Ordinarily, this should not 

come as a surprise. But when 

criticisms begin to take on elements 

of personal vendetta, 

then someone has to stand up 

for the truth and set the record 

straight. 

One major theme that runs 

through the various anti-Jonathan 

arguments has to do 

with the management of the 

economy. And expectedly, 

Ngozi Okonjo-Iweala has been 

the prime target of mudslingers. 

Dear governors, where is our money? 

agement of the oil price crisis 

by the outgoing administration. 

One major step in this regard was 

the implementation of measures 

like surcharges on luxury items, 

reduction in overseas trainings 

by government officials, voluntary 

cut in National Assembly 

budget, salaries of President 

Goodluck Jonathan and other 

top government functionaries as 

well as State House budget. 

Furthermore, the minister of 

finance has relentlessly pointed 

out the need for the country 

to save more. Picking up from 

where she left off in former 

President Olusegun Obasanjo’s 

administration, Ngozi Okonjo- 

Iweala continued to stress the 

importance of saving for the 

rainy day. But today, Nigeria 

cannot boast the kind of savings 

As the minister of finance 

and coordinating minister of 

the economy, Okonjo-Iweala 

has always been in the spotlight. 

The personal integrity 

and professional acumen with 

which she has managed the 

Nigerian economy in these 

trying times are nothing short 

of commendable. Although 

most Nigerians have known 

this for a long time, her ingenuity 

was again applauded at 

the recently-concluded World 

Bank/International Monetary 

Fund Spring Meeting in the 

United States of America. 

Commending Nigeria’s 

strategic response to the decline 

in oil revenue, the IMF 

managing director, Christine 

Lagarde, passed a vote of confidence 

on the efficient manit 

had in 2008 when $22 billion 

in the Excess Crude Account 

shielded the country from the 

global economic recession. 

Against the commonsense 

position of Okonjo-Iweala, 

the state governors favoured a 

culture of sharing over the discipline 

of saving. Ironically, these 

same governors are the first to 

shift the blame on the minister 

of finance when their revenue 

could no longer sustain their extravagant 

practices or even fulfil 

basic responsibilities such as 

paying salaries. The governors 

should be honourable enough 

to admit the short-sightedness 

with which they arm-twisted 

the Federal Government to 

drain the reserves and the carelessness 

with which they blew 

the proceeds on electioneering. 

The attempt by some sections 

of the political class to 

hoodwink the public into believing 

that Ngozi Okonjo- 

Iweala drained our reserves 

is an ill-contrived plan that 

cannot see the light of day. 

By now, the detractors should 

know that no amount of attacks 

against this woman of impeccable 

character can tarnish her 

image. The governors would 

do well to stop hiding behind 

a finger. They must take responsibility 

for their rapacious 

proclivities which they have 

continually catered to at the 

expense of the people they are 

voted to serve. 


comment@businessdayonline.com


comment is free 

Send 800word comments to comment@businessdayonline. 

KAYODE OLUWA 

Oluwa, a former secretary-general 

of Nigerian Council of International 

Chamber of Commerce, wrote in from 

The Executive Business School, Lagos. 

The prospects for economic 

transformation, 

prosperity and 

sustainable development 

will depend to a 

large extent on the political will, 

strength of character, sincerity 

of purpose and strong commitment 

of the leadership – much 

more than the mere vision statements 

or contents of economic 

policies – in terms of bold, pragmatic 

and effective implementation 

of the economic reform 

agenda. 

At this juncture, let me serve 

a note of caution to the new 

government which, considering 

the present dire financial straits 

of the country, may want to be 

tempted to go for external borrowings/foreign 

loans, especially 

from the Bretton Woods insti- 

BUSINESS DAY 

11 

COMMENT 

Economic agenda for the new government (2) 

es and leakages in the economy, 

the country should be able to 

mobilise enough internally generated 

resources without having 

to succumb to the temptation of 

external loan with the attendant 

prohibitive cost of a potential 

debt trap and untoward consequences 

on the long-term development 

of the economy. In this 

regard, Nigeria can learn from the 

experiences of the “Asian Tigers”, 

especially their type of homegrown 

structural adjustment 

What Nigerians expect 

from the Buhari administration 

is a visible, 

fundamental change that 

will positively impact 

on their lives in terms of 

stable and uninterrupted 

electricity power supply, 

functional and affordable 

education at all levels, 

employment generation 

for the teeming jobless 

youths 

tutions. While bilateral loans/ 

foreign assistance from friendly 

countries may be considered 

purely on their economic merits 

and national interests, the government 

must avoid the temptation 

of externally-imposed 

multilateral financial institutions 

such as World Bank/IMF’s 

‘prescriptions’ of “wrenching 

structural adjustment and devastating 

austerity measures”. 

We, as a nation, have travelled 

this tenuous route before with 

the concomitant unsalutary 

impact on the economy. 

The need to avoid the dictated 

terms and “conditionalities” 

of the IMF, especially for a developing 

country like ours, has 

been further espoused by Paul 

Volcker and Toyo Gyohten in 

their book ‘Changing Fortunes’ 

in which they underscored the 

double standard of IMF’s crisis 

resolution. As they put it, “When 

the [International Monetary] 

Fund consults with a poor and 

weak country, the country gets 

in line. When it consults with a 

strong country, the Fund gets 

in line.” 

I strongly believe that if the 

new government can effectively 

tackle corruption and plug all 

the inherent loopholes, wastagreforms 

undertaken without 

external borrowings, which 

have culminated in their spectacular 

economic performances 

and competiveness today – 

from their hitherto crisis-torn, 

inflation-ridden economies. 

The new government should, 

therefore, be able to manage 

and resolve the “tension between 

short-term palliatives 

and commitment to a long-term 

strategy” of economic reforms, 

without external borrowings, 

if we are to rebuild our ailing 

economy along the lines of sustainable 

development. 

Finally, as Buhari assumes 

office as Nigeria’s president 

come May 29, 2015, he must 

avoid the euphoria of change 

voyeurism and realise that the 

change Nigerians desire and 

have been yearning for is not a 

mere cosmetic change for the 

sake of change, nor a symbolic, 

momentary change of political 

power at the Presidential Villa! 

What Nigerians expect from 

the Buhari administration is a 

visible, fundamental change 

that will positively impact on 

their lives in terms of stable 

and uninterrupted electricity 

power supply, functional and 

affordable education at all levels, 

employment generation for 

the teeming jobless youths, good 

network of roads and integrated 

mode of transportation system, 

efficient and modern public infrastructure, 

well-equipped hospitals 

and affordable health-care 

system, access to potable water 

supply, adequate and affordable 

housing and food supply, 

security of lives and property, 

including the protection of citizens 

from internal and external 

aggression, defeat and routing of 

Boko Haram out of the country 

including the return of the kidnapped 

Chibok girls, visible and 

drastic reduction in the poverty 

level and gap between the rich 

and the poor, stemming of the 

rising inflation rate, enhanced 

value of the naira, improved 

economic, business and investment 

climate, elimination of 

corruption, especially in the 

public sector and government 

at all levels, institution of good 

governance and democratic tenets, 

visionary leadership and an 

egalitarian society where the rule 

of law, justice, fairness, equity, 

peace and progress shall prevail. 


comment@businessdayonline.com 

OLUSEGUN SOTOLA 

Sotola is head of research with the 

Initiative for Public Policy Analysis, a 

public policy research organisation 

based in Lagos. 

Reports indicate there is 

fiscal crisis in 22 of the 36 

states in Nigeria. Salaries 

and allowances are in 

arrears in these states and many 

welfarist policies like free school 

lunch, social benefit payments 

and ongoing infrastructure projects 

have been suspended. Before 

now, many of the affected states 

have used external funding sources 

like bonds and short-term loans 

as buffer but they have stretched 

that option. The servicing of those 

debts is partly responsible for the 

financial crisis across states. 

The major concern is that the 

future outlook is gloomy as there 

are no indications that states’ fiscal 

situation will likely improve 

soon. Since mid-2014 when crude 

oil prices crashed from $115 to 

about $50 per barrel in April, the 

size of federal sharable funds has 

depleted. There are no strong indications 

that the crude oil price will 

rise significantly in the immediate 

future. A report by The Brookings 

Institute, a US think-tank, finds 

that crude price will most probably 

hover around the current 

price till 2016. 

Also the Excess Crude Account, 

which has been the usual shock 

absorber, is almost exhausted. It 

currently has a balance of $2.45 

billion, down from over $20 billion 

in January 2009. It will eventually 

get exhausted if crude price situation 

failed to improve soon. Similarly, 

it is less likely that banks will 

States’ fiscal crisis self-inflicted 

mercially viable. What is the benefit 

of an airport to a state 80 percent of 

whose citizens are below the poverty 

mark, and why build an airport 

that only state-owned or chartered 

aircraft use occasionally? The level 

of income that informed the decision 

to embark on those projects 

has eroded and these states cannot 

curtail these expenses without collateral 

damage. 

The crude oil crash is only an 

immediate cause; the problem 

touches fundamentally on the nature 

of the Nigerian state. The idea 

of state creation that started from 

1967 has undermined the very essence 

of federalism as it has disincentivised 

states’ ability to develop 

at their pace, design their economy 

in a way that is sustainable from locally 

generated revenue. The states 

in Nigeria are not federating units 

as expected in a federal structure, 

rather they are provinces created 

for administrative convenience 

thereby creating a dependency 

problem. 

Given that there is bound to 

be occasional bust cycle in crude 

price, states must design their 

growth independently of each 

other and according to their income. 

Salary, emoluments and 

conditions of service of staff should 

be determined by a state’s ability. 

There is no point for Kebbi and 

Rivers States to be paying the same 

salary scale. Resource control by 

states has been championed as 

a solution, but this could be a 

medium-term solution as states are 

differently endowed. The ultimate 

solution is for the Nigerian state to 

be willing to give unbridled loan 

going by their previous cataclysmic 

experience to over-exposure. 

In fact, there is an existing Central 

Bank of Nigeria (CBN) regulation 

that banks should not give public 

sector loan in excess of 10 percent 

of their overall credit portfolios. 

It is doubtful whether many of 

the states could substantially increase 

their internally generated 

revenue beyond the present level. 

Apart from two or three states, 

economic activities are at subsistence 

level in the remaining states. 

Effort to boost internal revenue 

might not actually translate to 

increase in available fund. States’ 

power to tax citizen is dependent 

on citizens’ ability to pay and 

their perception of how efficient 

the state is. Where this is lacking, 

there is a natural inclination to 

resist further payment. 

It is easy for state officials to 

blame the global crude price fall 

or the Federal Government as 

some states have done. There are, 

however, facts that suggest the 

fiscal problem is self-inflicted. 

Buoyed by the rise in global crude 

oil prices between 2003 and 2013, 

states bit more than they could 

chew. Some state governments 

set up more agencies, bureaucracies 

and recruited more political 

appointees while imitating 

economically-vibrant states. 

Some initiated the so-called empowerment 

programmes. Many 

states remembered they ought 

to have a university, while others 

doubled theirs. Some built an 

airport despite that it is not compractice 

federalism in spirit and 

principle. 

The above points touch on 

the issue of viability of the states. 

The present cash crunch in some 

states exposes the folly of using 

political exigencies as the sole 

criteria for state creation. State as 

a coordinate unit in a federal system 

serves the purpose of independently 

driving development 

within its territory and as such 

must have adequate economic 

power to fulfil this mission. The 

reality is that states in Nigeria are 

not functioning as independent 

and coordinate units but more as 

administrative units in a unitary 

system. 

It is typical for states to want 

to shift the blame on global crude 

instability and embrace another 

form of short-termism, like seeking 

overdraft in banks or running 

cap in hand around for bailout. 

Such approach is not sustainable. 

The immediate solution to this 

fiscal crisis is for state governments 

to do what is reasonable 

in the face of cash crunch: limited 

government. Scrap or merge 

agencies and ministries that seem 

duplicative. Reduce the number 

of political appointees. There is 

no defensible need for senior 

special assistants, special advisers, 

senior special advisers and 

the likes. They render no obvious 

services. Quite a number of them 

are unwarranted and ultimately 

constitute a drain in the state’s 

purse. 

State governments in this 

situation might be tempted to 

increase taxes and levies as a 

way of generating more internal 

revenues. This will be counterproductive. 

It will kill existing 

businesses and frustrate new 

ones. Already, many states are 

harsh on business. According to 

the recent World Bank doing business 

report, some states impose 

levy and unnecessary permits 

which successfully kill new initiatives 

and frustrate existing businesses. 

Rather, emphasis should 

be placed on blocking the leaks in 

revenue collection. A reasonable 

way to boost IGR is to stop the corrupt 

practices associated with it. 

Every state governor is keen on 

sharing the Excess Crude revenue. 

The primary purpose of setting 

up the account is not to augment 

recurrent expenses but for capital 

projects such as power and infrastructure. 

The Federal Government 

should not be tempted to 

use the ECA balance for patronage 

among the states. Instead state 

governors should be made to understand 

that running their states 

aground financially is tantamount 

to bankruptcy. 

The newly-elected governments 

across the country should 

use their popularity to take hard 

decisions and address the fundamental 

cause of the cycle of 

fiscal issues. History teaches us 

that crude oil price by nature is 

unstable and state development 

should not be unstable. 


comment@businessdayonline.com



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LEGAL ADVISERS 

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EDITORIAL ADVISORY BOARD 

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Chuka Mordi 

Sim Shagaya 

Mezuo Nwuneli 

Emeka Emuwa 

Charles Anudu 

Tunji Adegbesan 

Eyo Ekpo 

No to NASS members’ over-bloated aides 

It is very disturbing 

that the country’s incoming 

469-member 

National Assembly is 

reportedly contemplating 

employing 2,445 

legislative aides in a period 

of “formidable economic 

challenges principally arising 

from precipitous decline 

in oil prices”; at a time when 

revenues available to the 

federal and state governments 

continue to drop, 

leaving virtually all the states 

incapable of meeting their 

financial obligations, including 

payment of workers’ 

salaries. 

According to reports, 

each federal lawmaker will 

have five aides, while each 

of the 20 principal officers 

of both chambers of the National 

Assembly (the Senate 

and House of Representatives) 

will have five additional 

aides, making a total 

of 10 aides for each principal 

officer. These include senior 

legislative aides, legislative 

aides, secretary, personal 

assistant and legislative assistant, 

while the additional 

aides for principal officers 

include special advisers, 

senior special assistants, 

special assistants, media relations 

officers and protocol 

officers. Senior legislative 

aides are on Salary Grade 

Level 14 to 16, legislative 

aides are on SGL 10 to 12, while 

secretary, personal assistant 

and legislative assistant are 

on SGL 7-8, SGL 8, and SGL 9, 

respectively. 

This plan by the National Assembly 

in these perilous times, 

to put it mildly, is the height of 

insensitivity to the economic 

realities of the times and to 

the plight of Nigerians. Just on 

Tuesday, BusinessDay reported 

that the Federation Account 

Allocation Committee last Friday 

distributed N388 billion as 

revenue for the month of April 

2015, which is 11 percent lower 

than the previous month and 

about 50 percent lower than a 

one-year peak distribution in 

June 2014. 

Over the years, watchers of 

the Nigerian economy have 

relentlessly raised alarms 

that huge cost of governance 

in the country, if not tackled 

headlong, would soon bring 

the economy to its knees. The 

alarms have grown louder recently 

given the prevailing 

economic conditions. One area 

that commentators have often 

pointed to, and justifiably, is the 

National Assembly. 

Indeed, the budgets for the 

federal legislature over the 

years have been a drain on 

the economy. For example, 

in the four years of President 

Goodluck Jonathan’s administration, 

the National Assembly 

has been allocated N600 billion, 

representing N150 billion per 

annum. This amount, observers 

say, covers the capital votes 

of 20 ministries, departments 

and agencies, and represents 

3.4 percent of the country’s 

total budget. This wastage, for 

us, must be stopped forthwith 

beginning with cutting down 

the size of the lawmakers’ aides. 

This is why we agree with Olisa 

Agbakoba, a senior advocate 

of Nigeria (SAN) and a former 

president of the Nigerian Bar 

Association, who challenged 

the incoming Muhammadu Buhari 

administration to show his 

seriousness in the war against 

corruption by first of all tackling 

the unconstitutional salary 

payment of members of the 

National Assembly. 

According to Agbakoba in a 

recent interview, “The Revenue 

Mobilization Allocation and 

Fiscal Commission (RMAFC) 

sets salaries, but the National 

Assembly refused to follow it. 

You remember when El-Rufai 

accused them of earning huge 

sums of money, the same with 

former governor of the Central 

Bank, Sanusi. They are getting 

large sums of money; they 

consume about 25 percent of 

the total annual budget of the 

country. Why wouldn’t I want 

to go to the National Assembly if 

being a member of the House of 

Representatives I can get N600 

million a year? ... Some of them 

in the other side of the National 

Assembly get as much as N1 billion 

a year. So, the motivation 

is not to go and pass laws, they 

go there because of the money 

they make; that’s why they perform 

below average.” 

Similarly, we agree with 

Emeka Ononamadu, executive 

director, Citizens Centre for 

Integrated Development and 

Social Rights, that seriousminded 

lawmakers who mean 

well for the country must lead 

the way in the effort for the reduction 

of cost of governance. 

“Even without the drop in 

oil price, the campaign and 

advocacy for reduction of cost 

of governance had been there 

because we believe that Nigeria 

is suffering from infrastructural 

decay that is almost at opposite 

direction with the kind of resources 

we generate on a yearly 

basis .... This is a new dawn and 

even if the oil price hits $200 

per barrel, it is unreasonable 

for us to maintain high cost of 

governance. In America and 

other countries that are 20 

times richer than Nigeria, they 

don’t run costs the way we do,” 

Ononamadu said. 

In our view, the change that 

is permeating the length and 

breadth of the country must 

transcend a mere change of 

party baton. Old ways of doing 

things must begin to give way 

to the new. And the National 

Assembly must change with 

the times. 

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BUSINESS DAY 

13 

COMPANIES 

& MARKETS 

COMPANY NEWS 

ANALYSIS AND INSIGHT 

SMEs driving innovation 

in Nigeria – GE report 

P.14 

Investors eye huge 

investment in Ogun 

P.16 

Continental Re profit up 

46% to N1.1bn in Q1 


Continental Reinsurance 

plc 

has recorded a 

profit before tax 

of N1.1 billion 

in first quarter (Q1) 2015 

financial period from N764 

million in the same period of 

2014, showing a 46 percent 

increase. 

Femi Oyetunji, group 

managing director, Continental 

Re, says the performance 

reflects the impact of 

the gradual evolution of the 

company from 2011 that positioned 

it to directly exploit 

the benefits of a diversified 

client base of over 200 insurance 

entities across Africa. 

“Underpinning our strategy 

is our commitment to 

sustainable growth and profitability 

through localisation 

of our operations in key markets. 

We aim to continue to 

escalate our returns from the 

investments we have already 

undertaken that are focused 

on meeting market demand 

and ultimately positioning 

our company for sustainable 

growth and profitability,” 

says Oyetunji. 

He says various projections 

still hype opportunities 

and considerable potential 

for future growth on 

the continent, saying the 

company’s profit after tax 

rose by 38 percent to N837 

million in the period under 

review from N606 million in 

the corresponding period 

of 2014. 

Its gross premium income 

rose by 12.6 percent 

to N4.9 billion in Q1 of this 

year from N4.3 billion in Q1 

of 2014. 

Continental Re recorded 

a retrocession premium 

of N413 million, which is 

a ratio of 8.4 percent from 

a figure of N429 million in 

the corresponding period 

of 2014, at the ratio of 9.8 

percent, an indication of 

better management. 

Underwriting profit decreased 

by 26 percent to 

N479 million in 2015 from 

N651 million in 2014, which 

still reflects strong performance 

displaying positive 

outcomes across most key 

technical indices but dampened 

by an adverse development 

in the claims ratio 

due to settlement of legacy 

US dollar denominated 

claims that were inflated 

by the effects of negative 

currency movement experienced 

in the last quarter 

of 2014. 

Its loss ratio increased 

to 49.3 percent from 42.9 

percent due to the impact of 

high claims for both life and 

non-life businesses. 

The company’s total assets 

grew by 13.3 percent to 

N30.7 billion in 2015 from 

N 27.2 billion in 2014, its 

shareholders’ funds rose 

to N16.7 billion from N14.7 

billion and return on equity 

for the quarter stood at 5 

percent, which was higher 

than 4 percent recorded 

last year. 

“The company is poised 

to build upon this promising 

start to the year to deliver on 

expectations through the 

second quarter to year end 

by continuing to leverage its 

strong financial condition 

and market positioning in 

Africa. Primary focus areas 

remain sustained volume 

growth, improved operational 

efficiencies, and development 

of critical skills,” 

Oyetunji says. 

L-R: Chidi Ajaegbu, president, The Institute of Chartered Accountant of Nigeria (ICAN); Uwadiae Oduware, partner, accounting & financial 

advisory, Deloitte, and Abel Asein, deputy registrar, technical services, ICAN, at the ICAN faculty induction ceremonies in Lagos. Pic by 

Olawale Amoo 

Premium Pensions consolidated net 

asset value grows 13.7% to N367.8bn 


Premium Pensions 

Limited, a top Pension 

Fund Administrators 

(PFAs) in 

Nigeria, has grown its consolidated 

net asset portfolio 

by 13.69 percent to 

N367.768 billion at the end 

of 2014 financial year, as 

against N323.427 billion 

that had been reported in 

December, 2013. 

The RSA (active) fund, 

which as of December 31, 

2013, had a net asset value 

of N219.288 billion, closed 

the year 2014 with N268.198 

billion, signifying a growth 

of 22.30 percent. 

Also, the RSA (retiree) 

fund that had N41.415 billion 

as of the end of the year 

2013, recorded a decline of 

N1.144 billion or 2.76 percent 

to close the year with 

a net asset value of N40.271 

billion, while the legacy 

fund that had N62.770 billion 

in 2013 financial year 

decreased to N57.898 billion 

or a 7.76 percent decline in 

growth. 

Meanwhile, the number 

of RSAs registered by the 

company both in the public 

and private sector organisations 

increased from 

613,449 as of December, 

2013, to 662,628 during the 

review year, out of which a 

total of 514,446 RSA’s were 

funded while 148,162 were 

still being persuaded for 

funding. 

Aliyu Dikko, chairman of 

the company who disclosed 

this at its 10th annual general 

meeting in Abuja, said 

the company continues 

to perform very well despite 

the harsh economic 

environment, attributing 

the slow growth of RSA to 

withdrawal of investment 

and closure of companies 

in insecurity ridden parts of 

the country. 

“Our company has maintained 

its enviable position 

as one of the leading PFAs in 

Nigeria. Despite the declining 

employment opportunities 

that had negatively 

impacted on our business 

generation drives, the company 

has expanded its horizon 

in terms of funds under 

management and number 

of Retirement Savings Accounts,” 

Dikko said. 

During the year under 

review, the turnover for the 

company grew from N4.226 

billion in 2013 to N5.252 billion, 

resulting in a growth of 

24.28 percent, profit before 

tax grew from N2.351 billion 

in 2013 to N2.609 billion, 

signifying a growth of 10.97 

percent, while profit after 

tax grew from N1.625 billion 

to N1.766 billion or a growth 


The above impressive 

performance is a reflection 

of the various strategies 

the company had adopted 

and the commitment of 

the board, management 

and staff in ensuring that 

new businesses were won 

and existing customers well 

served through the delivery 

of superior customer service, 

Dikko said. 

Meanwhile, shareholders 

approved a dividend 

of N2.00 per share gross, 

making the seventh time in 

a series that the company 

paid dividend. “Shareholders 

would agree with me 

that this is a remarkable 

improvement over the dividend 

of one naira, twenty 

kobo per share paid in respect 

of the accounts for the 

year ended 31st December 

2013,” he said. 

According to him, one of 

the key projects undertaken 

within the year under review 

is the strategic upgrade of 

CPAS v5.0 to v5.7, which 

involves a total rebuilding of 

the operating system, hence 

we can rightly say that it is 

the acquisition of a brand 

new Corporate Enterprise 

Pension Management Application.



COMPANIES & MARKETS 

SMEs driving innovation 

in Nigeria – GE report 

General Electric 

Nigeria has presented 

its 2014 

annual Innovation 

Barometer 

report for Nigeria. The event, 

which held in Lagos, was attended 

by select audience 

made up of chief executives 

of companies and senior level 

managers. 

The report, which has become 

an annual fixture on 

GE’s calendar, is distilled from 

a wide ranging opinion survey 

of senior business executives, 

all actively engaged in the management 

of their firm’s innovation 

strategy and it is carried 

out on behalf of GE by Edelman 

Berland in 26 countries including 

Nigeria. This year’s report is 

the second for Nigeria. 

Speaking on this year’s report, 

Lazarus Angbazo, president/CEO 

for GE Nigeria, 

said: “At GE, we are all about 

innovation which makes us 

very delighted to be presenting 

a report that measures the 

innovation health of Nigerian 

businesses.” 

To produce the report, 

the survey examines every 

country’s uniquely developed 

framework for Innovation; 

profiles the most efficient policies 

to support Innovation; 

while adopting a firm centric 

approach to understand the 

way businesses adapt their innovation 

practices and strategies 

in a challenging economic 

environment. 

This year’s report, as with 

past editions, offers interesting 

insights and amazing perspectives 

on the trajectory of 

innovation currently playing 

out in the Nigerian corporate 

ecosystem with majority of 

those polled agreeing that innovation 

is a key driver of business 

growth and development. 

One interesting insight, 

according to the report, is that 

39 percent of those polled say 

SMEs are at the forefront of innovation 

while 82 percent saw 

innovation as a positive force 

which has improved the quality 

of life of people in Nigeria 

at a scale only imagined 10 

years ago. 

The report also noted that 

some segments of the Nigerian 

economy have embraced 

innovation faster than 

others. The report indicated 

that the High tech, Telecom 

and Energy industries have 

embraced innovation faster 

than the Manufacturing and 

Healthcare industries. 

Majority of respondents 

described innovation as a 

global phenomenon which 

will grow and continue to 

deliver impressive dividends 

through the merging and 

combining of talents, ideas, 

insights and resources across 

the world with a higher number 

of respondents agreeing 

that the framework for innovation 

has slightly improved 

in Nigeria vis a vis 

‘an innovation-conducive 

environment’ compared to 

18 months ago. 

Business Event 

L-R:. Abiola Akindolire; secretary, 10th anniversary committee of the National Lottery Regulation Agency, 

Nkolika Okoli, head, retail banking group, Skye Bank Plc, and Henry Uwadiae, chairman of the committee, 

during the visit of the agency’s team to the Skye Bank in Lagos. 

Dangote Cement boosts CSR projects 

in 16 Ibese communities 

Ibese communities, host 

to Dangote Cement plc, 

and indigenes of Yewa 

and Ewekoro in Ogun 

State are in for better times 

as the company announced 

the inauguration of some 

19 different corporate social 

responsibility (CSR) projects 

for the communities. 

The projects cover various 

social sectors, including 

water, education, electricity, 

roads, IT, etc. 

It would be recalled that 

the company had some years 

ago instituted scholarships 

for the indigenes of any of 

the host communities in any 

higher institution and secondary 

schools. Over 90 of 

them have since benefitted 

from the scholarships since 

last year. 

According to the management, 

it is poised to making 

life more meaningful to 

all members of the over 16 

communities bordering the 

cement plant and that all 

projects would be ensure 

to meet the specific need of 

each community. 

Mansur Ahmed, executive 

director, Stakeholder 

Management and Corporate 

Communication, explained 

that the projects were agreed 

upon after a careful deliberation 

and discussion with the 

communities obas, chiefs 

and the youth leaders so that 

the project could be relevant 

to their needs. 

He thanked the obas and 

other community leaders for 

their cooperation with the 

firm, saying it was as a result 

of the collaboration that 

made possible the peace and 

tranquillity being enjoyed in 

the host communities. 

Ahmed promised the 

community leaders that Dangote 

Cement would continue 

to be alive to its social responsibilities 

and urged them to 

come forward to offer useful 

ideas and advises that could 

propel the company to do 

more for the development of 

the communities. 

He highlighted some of 

the projects to included: 

three domestic boreholes 

for Elere, Babalawo and Kajola 

communities; 10 domestic 

boreholes for Afami, 

Ajibawo, Aga-Akinronbi, 

Aga-Owoyele, Aga-Ashade, 

Abule Oke, Abule Maria, 

Ijako-Orile, Wasimi-Imasayi 

and Balogun; four industrial 

boreholes for Ibese (two) and 

Imasayi (two); construction 

of 10 classrooms for Ibese 

and construction of another 

five classrooms for Balogun 

communities. 

He listed others as the 

award of scholarship to 77 

between 2013 and 2014 sessions 

for secondary school, 

polytechnic and university 

students who are native of 

the host communities. The 

company is also providing 

community information 

technology training at Ibese, 

Aga-Olowo, and Ijako-Orile, 

where two batches have already 

finished training, while 

the construction of Ibese/ 

Ilaro road, and that of Ibese/ 

Itori road are ongoing. 

These are aside the grading 

of community internal 

road network along Wasimi- 

Imasayi, which is under construction, 

and the drain work 

at Olu of Ilaro/Paramount 

Ruler’s road, Ilaro, is nearing 

completion, Ahmed said. 

L-R:. Sharm Kulkarni, MD, Champion Breweries Plc; Senas Ukpanah, chairman, and Tosan Atle Aiboni, 

company secretary, during the company’s 39th Annual General Meeting, in Lagos. 

L-R: Yeo Ziobeieton, regional marketing director, Unilever Nigeria Plc; Margriet-Van Toorenburg, rep 

director, savoury Africa; Nnenna Osi- Anugwa, category manager, sAVOURY, and Nsima Ogedi-Alakwe, 

brand building director, at a symposium on tackling iron deficiency anaemia/ unveiling of new fortified 

iron Knorr maggi in Lagos. Pic by Francis Abiagam. 

L-R: Felix Anyanwu, business manager, South, New Heights Pharma; Olugbenga Abiodun, country 

manager (ASM) for Nigeria, Omron Healthcare Europe B.V; Olayinka Ebenezer, marketing manager, 

Diagnostics, New Heights Pharma; and Abdul Abiola, Business Manager, Lagos/West, New Heights 

Pharma during a press briefing to mark World Hypertension Day in Lagos.

Wednesday 20 May 2015 


BUSINESS DAY 

Cornerstone Insurance profit before tax up 48% to N1.39bn 

15 

Skye Bank’s profit 

after tax grows 85% 

to N5bn in Q1 2015 

MODESTUS ANAESORONYE corded profit before tax (PBT) and position itself for market statements for 2014 show 60 

of N1.39 billion in the financial 

year ended December According to Musa, “we ing profit to N1.5 billion from 

leadership. 

percent growth in underwrit- 

Cornerstone Insurance 

plc has 31, 2014, representing a 48 are pleased that we have N939 million in the previous 

announced a 48 percent growth over its 2013 achieved the highest ever year. Profit after tax (PAT) increased 

by 29 percent to N1.19 

percent growth in PBT of N940 million. 

profit before tax (PBT), crossing 

the billion naira mark for billion from N946 million. 

profit before tax Its financial performance 

for the financial year ended in 2014 is a reflection of the the first time in our company’s Claims paid in the year under 

December 31, 2014, launching 

the company to a billion underwriting and investment our continued focus to be Similarly, investment in- 

deliberate focus on profitable history. The results reflect review was over N1.2 billion. 

naira mark in profitability. performance, while cautiously 

pursuing topline growth. By financial services group by from N792 million to N1.81 

the leading insurance-based come grew by 129 percent 

Commenting on the results, 

Ganiyu Musa, group leveraging its solid brand and delivering value beyond expectations 

to our customers grew by 17 percent from N6.97 

billion. Shareholders’ equity 

managing director of the growing suite of innovative 

company, said despite the products, the company aims and shareholders.” 

billion to N8.16 billion. Return 

challenging operating environment, 

the company reformation 

of the industry company’s approved financial percent in 2014 from 14 

to contribute to the trans- 

Other highlights of the on equity improved to 17 

percent 

in 2013. The company’s 

retained earnings moved from 

a negative of N491 million 

to a positive of N499 million 

during the year, and will be 

proposing a dividend for 

ratification by shareholders 

at the next annual general 

meeting. 

Cornerstone Insurance 

is a composite insurance 

company that offers a wide 

range of products in both 

General and Life businesses 

including motor vehicle, aviation, 

marine, engineering 

all risks, asset protection, 

liability to third party, oil and 

gas, bancassurance products, 

group life, credit life, mortgage 

protection, term assurance, 

wealth creation products and 

Takaful (Islamic insurance). 

As part of its strategy to support 

sustenance of economic 

development in Nigeria and 

increase penetration of insurance 

products and services, 

Cornerstone, in partnership 

with Airtel and Microensure 

launched Nigeria’s first truly 

innovative product that offers 

value rich insurance to 

subscribers of Airtel for free. 

HOPE MOSES-ASHIKE 

Skye Bank plc has 

recorded a profit before 

tax of N6.2 billion 

for the first quarter 

ended March 31, 2015, 

representing an increase 

of 82 percent over the N3.4 

billion recorded during the 

same period in 2014. 

Similarly, the bank’s 

profit after tax grew to N5 

billion during the review 

period compared with N2.7 

billion achieved during the 

corresponding period in 

2013, showing a rise of 85 

percent. 

According to the unaudited 

result submitted on 

the floor of the Nigerian 

Stock Exchange (NSE), the 

bank also recorded strong 

growth in all the performance 

indicators. 

Reflecting on the bank’s 

inclination towards feebased 

transactions, its fee 

and commission income 

which was N6.2 billion in 

2014, increased to N10.2 

billion in the first quarter of 

2015, representing a growth 


The expanded business 

activities of the bank also 

manifested in a big rise in its 

gross earnings, which rose to 

N42.3 billion from N34.3 billion 

in 2014, appreciating by 

23 percent. The shareholders’ 

fund also rose to N137.3 

billion from N132 billion. 

The IFRS compliant result 

also shows the bank’s 

total assets hitting N1.43 

billion as against N1.42 billion 

during the same period 

in 2014. Similarly, its total 

liabilities, including total 

deposits, stood at N1.3 trillion 

as against N1.2 trillion 

in the preceding year. 

Commenting on the 

first quarter result, Timothy 

Oguntayo, Skye Bank’s 

group managing director/ 

CEO, said the bank was set 

to deliver superior value and 

returns to the shareholders 

as it entered its new strategic 

growth phase.




Investors eye huge investment in Ogun 

… as works begin on 37.65km Atan-Igbesa-Agbara road 

RAZAQ AYINLA, ABEOKUTA 

A 

cross-section of 

investors and 

entrepreneurs in 

manufacturing 

and agro-allied 

sectors of economy have foreseen 

massive investment in 

Atan-Igbesa-Agbara as well as 

Agbado-Akute and Magboro- 

Ojodu axis of Ogun State when 

the current infrastructure 

upgrade, especially various 

road constructions currently 

undertaken by the state government, 

are completed. 

Various proposals on different 

types of investment, 

including real sector and micro, 

small and medium-scale 

enterprises came against the 

backdrop of 37.65km Agbara, 

Atan, Lusada-Igbesa 

and Lusada Alapoti roads 

construction in Ado Odo/ 

Ota Local Government; $3.5 

billion inter-city light rail project 

linking major cities and 

about 60km Ijoko-Agbado- 

Magboro-Ojodu road construction. 


Governor Ibikunle Amosun 

pledged to start construction 

of 37.65km Atan-Igbesa-Agbara 

road and a light 

rail project linking Agbara 

and other major cities in the 

state at the commissioning 

of Allied Atlantic Distilleries, 

ethanol plant in Igbesa last 

year, which he later approved 

for re-construction into four 

lanes, though a Federal Government-owned. 

According to Lekan Adegbite, 

commissioner for works 

and infrastructure, the roads 

would be reconstructed into 

four lanes while Lusada-Alapoti 

road that links Ogun 

Gunagdong Free Trade Zone 

would be in two lanes with a 

four lane carriage way grade 

separator at Lusada junction. 

He said the road projects 

when completed would also 

ensure reduction of travel 

time, especially with the Average 

Daily Traffic (ADT) 

volume of 115,750 vehicles 

per day that was above the 

capacity of the roads presently, 

revealing that contractors had 

been mobilised to site and 

the road project was expected 

to be completed within 24 

months. 

Speaking on the envisaged 

investment and economic 

development expected in few 

months, 

Wale Adegbite, chiarman, 

Manufacturers Association 

of Nigeria (MAN), Ogun State 

chapter, said appreciable 

commitments would come 

from investors and entrepreneurs 

once the roads were 

started, especially in Igbesa- 

Agbara axis, saying the road 

incentive would surely drive 

in more investors. 

“A wonderful news story 

for we, manufacturers; we are 

very much excited about that. I 

believe transportation is a very 

key infrastructure and in as 

much as His Excellency, Senator 

Ibikunle Amosun, the excutive 

governor of Ogun State 

has awarded the important 

road in the state; Atan-Igbesa- 

Agbara, we, the manufacturers 

should be excited. 

“Because, the road when 

completed, will reduce the 

cost of production and transportation 

of raw materials to 

our factories and haulage of 

finished goods to market will 

be quicker and easier, thereby 

improving industrialization 

and stimulating economy. 

SON moves for standardisation of African products 

The emergence of Joseph 

Odumodu, director-general, 

Standards 

Organisation 

of Nigeria (SON), as president, 

African Organisation 

for Standardisation (ARSO), 

may signpost movement towards 

integration of African 

standards in products aand 

services. This is predicated on 

the various measures taken 

towards maintenance of standards 

in made-in-Nigeria 

goods and servives. 

At a stakeholders’ forum, 

Tuesday in Lagos, Odumodu 

said at this stage of Africa’s development 

and the constant 

infiltration of sub-standard 

products into the continent, 

there was an urgent need for 

African countries to seek to 

integrate African standardisation 

to eliminate those problems 

inhibiting trade within 

the continent, at the unveiling 

of forum for Chief Executives 

Officers (CEOs) of National 

Standards Bodies (NSBs) in 

Africa, holding in Abuja, June 

22 - 24, 2015. 

According to Odumodu, 

hosting the ARSO president’s 

forum was one of the resolutions 

made at the 20th General 

Assembly of ARSO in 

Kigali-Rwanda in June 2014, 

where delegates endorsed the 

need for the director-general/ 

chief executive of SON as the 

ARSO president to convene 

a forum for CEOs of all NSBs 

in Africa for engagement on 

ARSO standardisation programmes 

with the expected 

outcome of increasing the 

membership from the current 

34 countries to 55. 

“In recognition of the importance 

of Standarsation to 

Africa’s integration, the 9th 

Ordinary Session of the AU 

Conference of ministers of 

trade who convened at the 

ministerial level at the African 

Union headquarters in 

Addis Ababa, Ethiopia, from 

December 4, 2014, also made 

a recommendation that: 

“All AU member states that 

are currently not members 

of ARSO should endeavour 

to attain membership by the 

year 2017,” the SON boss said. 

The mobilisation of all 

NSBs into the membership 

of ARSO would drive the standardisation 

programmes necessary 

for the strengthening of 

the competitiveness of “made 

in Africa” products a well 

as engender regional and/ 

or continental fusion into a 

economic bloc, he explained. 

The forum is also a response 

to the African leaders’ 

week-long meeting in Addis 

- Ababa, Ethiopia in January, 

2012 under the theme: 

“Boosting Intra-African 

Trade” (BIAT), as a strategy 

to boost trade within the African 

continent by at least 

25 - 30 percent. Also the AU 

conference of ministers of 

trade, held in Addis Ababa, 

2014, also took note of the 

annual report by ARSO and 

made the following recommendations: 

All AU member states that 

are currently not members of 

ARSO should endeavour to 

attain membership by 2017; 

ARSO and other pan-African 

standardisation organisations 

to refer to the year 2017 

as African Year of Quality 

infrastructure; the AUC and 

ARSO should increase awareness 

and mobilise all stakeholders 

on the role of Quality 

Infrastructure; The AUC and 

quality infrastructure institutions 

should assess the status 

of Quality Infrastructure in 

Africa, and develop a strategic 

plan on quality infrastructure 

in Africa 

On expected output of the 

conference, Paul Angya, director/secretary, 

SON, and secretary 

to the planning committee 

on the forthcoming Abuja 

forum, said the forum among 

many outputs will provide an 

opportunity for the African 

CEOs to strategies on actualising 

the recommendations 

made by the ministers to 

ensure the smooth take off of 

the CFTA by 2017.


This is M NEY 

A daily guide to your Personal Finance 

BUSINESS DAY 

• Savings 

• Travel 

• Debt & Borrowing 

• Utilities 

• Managing your Tax 

17 

Times you shouldn’t take money from your family 

When it 

comes to 

our families, 

we 

all have 

the best of intentions. 

We’re often willing to offer 

money to help each 

other out in situations 

when we would never do 

it for a stranger. 

But this also means 

that when we accept financial 

help from a family 

member, the rules can 

be very different than 

when we borrow money 

from a bank or some other 

impersonal lending 

institution. The potential 

for problems resulting 

from a loan or a gift are 

very different when we’re 

dealing with family — to 

the point that it is better 

to just refuse the generosity 

even it seems like the 

easiest choice. Here are 

five scenarios where it’s 

probably better to politely 

say no. 

• Refuse the money 

if it isn’t clear whether 

it’s a loan or a gift: Any 

time that the nature of 

the money being offered 

could be misunderstood, 

it probably will be. Due 

to the way many families 

interact, a relative who 

wants to make a loan may 

not discuss repayment or 

interest in an effort not to 

worry the borrower — but 

will eventually need the 

money back. Avoiding a 

misunderstanding with 

family is generally more 

important than getting an 

interest-free loan. 

• Refuse the money if 

there are strings attached: 

Since many family members 

want what’s best for 

you, some may be willing 

to do whatever it takes to 

get you to go along with 

their version of what’s 

best. Offering money with 

the understanding that 

you’ll follow their ‘suggestions’ 

is just one strategy, 

and, even if you pay back 

the money immediately, 

those strings may last for 

years. 


your relative can’t afford 

to offer it: Family members 

do things out of love and 

have been known to take 

that to an extreme, offering 

up more than they truly can 

afford to. No one ever wants 

to put a relative in a bad financial 

situation. It can be 

tough to tell the truth of the 

matter, but make sure that 

if you’re borrowing money 

from a family member, 

it won’t cause issues for 

them. 


repayment won’t be an 

option: While money may 

be offered as a gift between 

family members, 

it’s especially critical that 

— if it is offered as a loan 

— you are sure you’ll be 

able to repay it without a 

problem. Just in case cir- 

cumstances change, it’s 

generally best to try to 

put yourself in a position 

where you can repay gifts 

or help your family out 

yourself in return. 


there’s any potential for 

a problem. You probably 

won’t ever see your lender 

at your bank in person after 

taking out a loan, but 

you’ll see your relatives 

at the holidays, at birthday 

parties and plenty of 

other occasions. Avoiding 

problems is usually worth 

going outside your family 

for financial help. 

There are situations 

in which money matters 

among family members 

are routine. But it’s always 

important to remember 

the value of your family 

isn’t a question of dollar 

signs. 

Dealing with money 

matters amongst family 

members is complicated 

whenever the amount 

is significant enough for 

the parties involved. If at 

all possible, avoid it like a 

plague. If you really need 

help, make sure both 

sides understand the exact 

terms and how it will 

be repaid. Laying out all 

the facts at the beginning 

may sound like it’s breaking 

the family bond, but 

not understanding all the 

facts will for sure create 

tension later on. Culled 

from MoneyNing. 

Debt: To consolidate, or not to consolidate? 

Are you in overwhelming 

debt? 

If so, you’ve probably 

considered debt consolidation. 

Some experts suggest 

taking advantage of 

non-profit credit counselling 

and consolidating 

your debt. They say 

it can help you gain financial 

traction more 

quickly. Others claim 

that consolidations loans 

are financial traps that 

should be avoided. 

Below, I’ll explain 

debt consolidation - in 

hopes you’ll be able 

make the decision for 

yourself. 

What is debt consolidation? 

Debt consolidation is 

simply rolling all of your 

existing debts into one 

large debt. After doing 

this, you’ll start to make 

one payment per month 

to one creditor. 

There are several 

ways you can consolidate 

debt. For example, 

you can use any of the 

following methods: 

Non-Profit Credit 

Counselling: Non-profit 

credit counsellors work 

with creditors to come 

up with solutions that 

satisfy both parties. For 

instance, a credit counsellor 

might work with 

your existing debtors 

to have your late fees 

removed and interest 

rates lowered. A credit 

counsellor will also help 

you create a budget, and 

many will have you send 

them one monthly payment 

which they will 

then disburse to your 

creditors. 

Home Equity Line of 

Credit (HELOC): Another 

popular method for consolidation 

is to take out 

a line of credit through 

your home equity. This 

way, you can pay all of 

your debtors off and 

make payments on your 

HELOC, which normally 

comes equipped with a 

low interest rate. 

Debt consolidation 

loans: Many banks have 

loans designated for debt 

consolidation. You’re 

usually required to put 

up collateral to take out 

one of these loans. If you 

don’t have collateral, you 

may be able to qualify 

for an unsecured loan — 

but these will come with 

much higher interest 

rates. 

Other popular options 

are putting all of 

your debt onto a low interest 

credit card, or taking 

out a personal loan. 

The pros of debt consolidation 

Contrary to what 

some of the popular financial 

gurus claim, 

there are indeed pros to 

debt consolidation. 

If you’re constantly 

being hounded by debt 

collectors, this is an easy 

way to get them off your 

back. 

It also simplifies 

things: you’ll be making 

one payment to one 

creditor. Not to mention 

you’ll probably be able to 

get a lower interest rate 

than what you’re paying 

now (especially if you 

have credit card debt), 

and therefore you’ll have 

a lower monthly payment. 

Lastly, if you work 

with a credit counsellor, 

you can have late fees 

waived and interest lowered 

— which lowers the 

total amount of money 

that you owe. 

The cons of debt consolidation 

Anybody who follows 

financial guru Dave 

Ramsey will recognise 

the following statement: 

“Debt consolidation is 

dangerous because you 

only treat the symptom.”



CITYFile 

L-R: Peter Olusegun 

Olukoju, acting head, 

clinical services, Federal 

Medical Centre 

(FMC), Ebute Metta; 

Munirah Yewande 

Jinadu, medical 

director; Eme Agha, 

president, Rotary 

Club, Lekki Phase 1, 

and Femi Bola-Sadipe, 

past assistant 

governor, Rotary 

Club, Lekki Phase 1, 

during the handing 

over of 2 incubator to 

the FMC Ebute Metta 

by Rotary Club Lekki 

Phase 1 in Lagos. 

Two suspected drug traffickers 

arrested at Kano airport 

The National Drug Law Enforcement 

Agency (NDLEA), 

Mallam Aminu Kano International 

Airport (MAKIA) command, 

Kano, has arrested two 

suspected drug traffickers with 2.7 kg of 

cocaine. 

Ambrose Umoru, the NDLEA commander, 

MAKIA, disclosed this while 

briefing newsmen in Kano on Tuesday. 

Umoru said the suspects were apprehended 

on May 5, during a routine inward 

screening of passengers of an Ethiopian 

Airline flight number ET 911 from Nairobi, 

Kenya, en route Addis Ababa and 

to Mallam Aminu Kano International 

Airport, Kano. 

He said one of the suspects, David Ikechukwu, 

32-year-old, who hails from Orlu 

in Imo state, was arrested with 60 ingested 

wraps of cocaine weighing 1.250kg. 

According to him, the other suspect, 

Patrick Otaka, aged 48, an indigene of 

Abriba in Abia state, excreted 72 wraps 

of cocaine weighing 1.450kg. 

Ambrose added that the two suspects 

had separately boarded Ethiopian Airline 

flight in Nairobi and headed to deliver the 

drugs in Nigeria. 

“The suspects planned to traffic in 

3,782 hawkers 

face prosecution in FCTA 


No fewer than 3,782 street traders/hawkers 

were arrested and 

prosecuted by the Federal Capital 

Territory Administration (FCTA) 

over the past four months. 

Bala Mohammed, FCT minister, who 

made this known in Abuja, said the arrest 

and prosecution of the street traders and 

hawkers was an ongoing issue in line with the 

determination of the FCT administration to 

enforce its environmental regulations. 

Meanwhile, the minister has directed 

Abuja Environmental Protection Board 

(AEPB) to rid the capital city of all environmental 

nuisance. Mohammed stressed that 

no stone must be left unturned in keeping 

the Abuja environment clean and healthy; 

pointing out that the city is the window 

through which the world sees Nigeria. 

On the environmental situations in the 

area councils and satellite towns, the Mohammed 

frowned at the attitudes of area 

council officials and warned that the trend 

must be reversed. He noted that the administration 

in the first quarter of this year evacuated 

a total of 81,950.17 tons of solid waste at 

designated dumpsites in Abuja. 

According to him, a total of 23,865 tons 

of solid waste was collected and disposed 

at designated sites in the month of March 

2015 alone. 

The outgoing FCT minister also put the 

total healthcare and special wastes collected 

during the period January-March 

2015 at 1,723.37 tons. He remarked that in 

order to give full coverage to the 250 square 

kilometres of the FCT, his administration 

has established new Enforcement Posts at 

Kado District, AYA, Olusegun Obasanjo Way, 

Nnamdi Azikiwe Way 

He said that it’s not enough to clean only 

the Federal Capital City; stressing that the 

entire 8,000 square kilometres of the Federal 

Capital Territory must be holistically cleaned. 

Mohammed insisted that the area councils 

must fund solid waste evacuation in the 

Area Councils and cautioned them against 

nonchalant altitudes. 

drugs so as to raise money to revitalise 

their families and crashing businesses. 

However, luck run out of them as the 

collaboration with our narcotics International 

Intelligence Network yielded the 

desired result,” he said. 

He said when the suspects were subjected 

to body scanner, it was discovered 

that they indigested a total of 132 wraps of 

substance suspected to be cocaine. 

“The command will not fold its arms 

and allow a situation where MAKIA will 

be used as a gateway for import or export 

of illegal drugs and other incriminating 

items,” Umoru warned. (NAN) 

Groups partner to fight violence against women 

IFEOMA OKEKE 

The Women Rights and Health Project 

(WRAHP) has entered into partnership 

with Justice for All in Lagos 

to strengthen the capacity of law 

enforcement officials in the police stations 

in Ejigbo Idimu, Igando-Ikotun and Isheri 

Oshun areas of the state to properly respond 

to reports on violence against women. 

WRAHP, a non-governmental organisation 

aimed at promoting women and 

community health, hopes to train the police 

officers to properly resolve matters on violence 

against women through effective investigation 

which will increase the chances 

of successful prosecution of offenders. 

The group has resolved to also continue 

to support the network developed in the 

previous year by providing technical support 

for awareness creation and support for 

survivors from such violence. 

Speaking during the inauguration of the 

partnership, Agbonmerele Iro-Nsi, WRAPH 

executive director, said the intervention 

would make community members feel 

more secure to report their cases to the 

police and work with other stations on 

violence against women. 

Ikorodu residents applaud 

police on crime reduction 

Residents of Ikorodu in Lagos have 

applauded the efforts of the state 

police command in reducing 

crime in the area. 

The residents had been complaining 

of regular robbery by armed gangs, 

particularly at the roundabout and at 

Benson Bus Stop in Ikorodu during 

traffic jams. Some of the residents applauded 

the decline in the crime rate 

and confessed that they had been able 

to sleep in their homes at night without 

fear of robbery attacks. 

However, some said that armed robbery 

attacks were still going on in their 

neighbourhoods. Babatunde Oyesola, a 

businessman, said that the presence of 

policemen in the area had help to scare 

hoodlums in the area. 

“The crime rate in Ikorodu has reduced, 

especially with the presence of 

policemen everywhere. Robbers have 

stopped attacking residential houses or 

shops at nights. I believe it is because of 

the active police presence everywhere,” 

he said. 

Olatunji Samuel, a teacher, said that 

the collaboration of vigilante groups and 

the police had helped in checking crime 

in the area. 

“The high crime rate in the area has 

reduced drastically with our vigilante 

and neighbourhood watch helping the 

police. We can go to sleep with our two 

eyes closed now,’’ he said. 

In his opinion, a commercial motorcyclist 

known as “Alfa”, said that the 

presence of policemen in the area had 

helped increase the rate of crime. 

“When some of these criminals get 

arrested, they were bailed by their gang 

members and go back to the streets. 

Sometimes, the police ignore the culprits 

and focus on us to get something from 

us,’’ he said. 

He added that one of their members 

was attacked by armed robbers but was 

able to escape being killed. 

Reacting, the command’s spokesman, 

DSP Kenneth Nwosu, confirmed 

that the people appreciated the efforts 

of the police in fighting crime and 

thanked them. 

“We realised that in police stations, they 

don’t document issues of domestic violence 

because domestic violence issues are seen as 

domestic issues and the parties are told to settle 

it on their own. The intervention will therefore, 

bring gender-based violence survivors one 

step closer to accessing justice under existing 

legislation in Lagos State,” Iro-Nsi said. 

She noted that WRAHP intends to implement 

a 12-month intervention, adding that 

the organisation has handled over 150 cases 

involving gender-based violence within the 

last 36 months and all the cases involved 

females as there was notable lack of awareness 

among the survivors of the legal provisions 

to ensure their personal security. 

Ajibola Ijimakinwa, regional coordinator, 

Justice for All in Lagos, said organisation 

pursues a programme that aims at 

increasing personal security and providing 

access to justice for all Nigerians, especially 

women, children and the vulnerable. 

“We are supporting them to ensure the 

police begin to understand their roles as 

agents of change in society and know how to 

handle victims of domestic violence with care. 

It should not be handled as a family issue but 

in ways that will make the victims know that 

they have access to justice,” she added.


I 

NVESTO 

Helping you to build wealth & make wise decisions 

BUSINESS DAY 

R 

19 

NSE All Share Index Market capitalisation 

NSE - 30 Index NSE consumer good 10 Index NSE Banking -10 Index NSE Insurance -10 Index NSE Oil/Gas -5 Index NSE Lotus 

NSE-Industrial Goods Index NSE-ASem Index 

Year Open 34,657.15 1,848.46 1,086.58 422.11 118.49 325.40 

2,501.21 2,501.21 

945.65 

Week open (08 – 05–15) 34,388.21 N11.678 trillion 1,579.54 397.25 

147.12 

858.42 

379.47 

2,241.51 2,214.08 

1,214.94 

Week close (15 – 05–15) 

Percentage change (WoW) 

34,439.40 

0.15% 

N11.697 trillion 1,583.59 

0.26% 

396.51 

-0.19% 

146.91 

-0.14% 

864.08 

0.66% 

381.84 

0.62% 

2,253.07 

0.52% 

2,217.20 

0.14% 

1,213.52 

0.05% 

Percentage change (YTD) 1.46% -0.63% 0.33% 1.30% 12.84% -1.83% -4.37% 

38.73% 0.46% 0.41% 

7.02% 3.63% 1.08% 0.01% 

Market sentiment weak over uncertain 

broader economic policy direction 

… as bargain hunters see opportunity ahead post-May 29 rally 

Stories by IHEANYI NWACHUKWU 

Se ntiment of 

investors at the 

Nigerian stock 

market remains 

weak due to 

persisting issues bedeviling 

the nation’s economic 

policy direction as the 

country prepares for a new 

set of leaders at the federal 

level. 

Ahead of next week’s 

official handover (May 29, 

2015), many investors at 

Customs Street, particularly 

foreigners who account for 

larger chunk of trade at the 

nation’s bourse, are caught 

in the web of speculation 

over the kind of policy path 

the incoming government 

will choose. 

“General Buhari sweeps 

to victory in Nigeria, 

promising to strike rebel 

forces led by Boko Haram 

and escape the clutches of 

corruption. Little noticed 

but increasingly powerful, 

reform has awoken in 

Pakistan, Romania and 

Egypt, bringing hope to 

investors,” says Charlie 

Robertson, global chief 

economist at Rencap. 

Investors fear effect 

of dwindling oil revenue 

on government spending 

powers. On the corporate 

front, many companies are 

battling the challenges of 

cross-border transactions 

due to a less valued naira 

against the greenback in the 

forex market – as Nigeria’s 

foreign reserve declined. 

Despite developments 

at the macro level, the 

current state of most 

Nigerian equities offers an 

opportunity for bargain 

hunting for investors who 

want to position ahead of 

post-May 29 rally. 

Despite mixed 

performance recorded last 

week, the equities market 

closed the week positive, 

recording marginal week- 

Rank 

Current Previous 

1 1 

2 2 

3 4 

4 3 

5 5 

6 6 

7 8 

8 7 

9 9 

10 10 

11 11 

12 * 

13 12 

14 13 

15 14 

on-week (WoW) return of 

0.1 percent. 

The Nigerian Stock 

Exchange (NSE) All Share 

Index (ASI) closed last 

week at 34,429.52 points 

from 34,388.12 points the 

NASD OTC PARTICIPATING INSTITUTION 

Arthur Steven Asset Management Limited 

Valmon Securities Limited 

Cordros Capital Limited 

Stanbic Ibtc Stockbrokers Limited 

Csl Stockbrokers Limited 

Resort Securities & Trust Limited 

Anchoria Investment & Securities 

Primera Africa Securities Limited 

Magnartis Finance & Investment Limited 

Meristem Securities Limited 

Imperial Asset Managers Limited 

Valueline Securities & Investments Limited 

Bgl Securities Limited 

Apt Securities And Funds Limited 

Skyview Capital Limited 

preceding week, while 

market capitalisation rose 

to settle at N11.70 trillion 

from N11.67 trillion. 

Analysts note that the 

gains last week, spurred 

by positive momentum 

Value(#’mm’) 

333.73 

307.48 

264.51 

236.74 

219.98 

165.00 

132.93 

115.62 

94.49 

87.14 

57.09 

44.13 

38.57 

32.41 

31.50 

towards the end of the 

week, were prompted by 

speculative activities in 

non-financials and bargain 

hunting in value stocks. 

The Nigerian equities 

market had also risen on 

NSE Top 10 price gainers 

Company Open Close Gain (N) % Change 

BERGER PAINTS NIGERIA PLC 9.07 10.00 0.93 10.25 

UNIVERSITY PRESS PLC 5.48 6.03 0.55 10.04 

BETA GLASS COMPANY (NIG.) PLC 30.00 33.00 3.00 10.00 

NEIMETH INTERNATIONAL PHARM. PLC 1.00 1.10 0.10 10.00 

7-UP BOTTLING COMPANY PLC 162.00 176.00 14.00 8.64 

CAVERTON OFFSHORE SUPPORT GRP. PLC 3.45 3.70 0.25 7.25 

FORTE OIL PLC 163.01 173.23 10.22 6.27 

CONOIL PLC 38.02 39.92 1.90 5.00 

UNILEVER NIGERIA PLC 43.00 45.03 2.03 4.72 

RED STAR EXPRESS PLC 4.70 4.92 0.22 4.68 

NSE Top 10 price lossers 

Company Open Close Loss (N) % Change 

GLAXO SMITHKLINE CONSUMER NIG. PLC 54.00 44.20 -9.80 -18.15 

UNITY BANK PLC 2.62 2.23 -0.39 -14.89 

SKYE BANK PLC 2.50 2.17 -0.33 -13.20 

HONEYWELL FLOUR MILL PLC 3.96 3.47 -0.49 -12.37 

ECOBANK TRANSNATIONAL INC. PLC 24.49 21.56 -2.93 -11.96 

MAY & BAKER NIGERIA PLC 1.79 1.60 -0.19 -10.61 

LEARN AFRICA PLC 1.27 1.15 -0.12 -9.45 

TOTALFINAELF NIGERIA PLC 165.00 150.00 -15.00 -9.09 

R. T. BRISCOE (NIG.) PLC 1.01 0.92 -0.09 -8.91 

TRANS NATIONWIDE EXPRESS PLC 1.16 1.06 -0.10 -8.62 

investors’ broadened 

appetite for some stocks 

following their impressive 

scorecards, particularly the 

blue-chip companies. 

Investment analysts at 

Lagos-based Meristem 

Securities Limited say 

the late rally observed 

last week, following a 

predominantly bearish 

trading period, suggests 

that “discerning investors 

are slowly returning to the 

bourse to take advantage 

of fundamentally justified 

and attractively priced 

stocks.” 

The analysts insist that 

going by the oscillatory 

movement of market 

returns in recent times, 

“we do not consider the 

current mood sustainable. 

Hence, we anticipate 

that there will be pockets 

of profit-taking activities 

in the coming week, while 

noting their expectation 

that the considerations 

and outcome of the twoday 

Monetary Policy 

Committee (MPC) meeting 

which held Monday and 

Tuesday, is expected to 

influence market activities. 

MPC had discussed and 

reviewed key macro 

indicators. 

Market analysts at 

Cowry Asset Management 

Limited say “we anticipate 

sustained positive 

performance in the equities 

market amid bargainhunting 

opportunities.” 

“Despite the bullish 

run witnessed towards the 

end of last week, we still 

believe the overall market 

sentiment remains weak 

driven by uncertainties 

relating to broader 

economic policy direction. 

“Furthermore, we think 

investors are being largely 

speculative hence profittaking 

on the back of the 

last three-day gains might 

come to play this week. 

We therefore expect the 

market to close the week 

on the negative, though 

marginal,” according to 

market analysts at United 

Capital plc. 

Standard Alliance, 

CSL, other 8 stockbroking 

firms lead in 

April equities deal 

The duo of Standard Alliance 

Capital and Asset Management 

Limited and CSL Stockbrokers 

Limited led other stockbroking firms 

in the volume equities they traded last 

month at the Nigerian Stock Exchange 

(NSE). 

The broker performance report of 

the NSE in the review month of April 

shows that Standard Alliance Capital 

and Asset Management Limited 

accounted for 2,348,476,031 units, 

representing 10.95 percent of the total 

equities traded, while CSL Stockbrokers 

Limited accounted for 2,347,396,467 

units, representing 10.95 percent. 

Only 10 stockbroking firms 

accounted for 11,998,137,601 units, 

which represents 55.95 percent of the 

total volume of equities exchanged at 

the Nigerian bourse last month. 

Also, Stanbic IBTC Stockbrokers 

Limited occupied the third place in 

the basket of top 10 stockbroking 

firms after trading 1,977,847,206 units, 

which represents 9.22 percent of the 

total volume of equities traded at the 

Nigerian bourse. 

Others are: Rencap Securities 

(Nig.) Limited, which accounted for 

1,161,698,607 units or 5.42 percent; 

FBN Securities Limited (991,370,719 

units), representing 4.62 percent, and 

Stanbic IBTC Stockbrokers Limited- 

MM (853,963,154 units), representing 

3.98 percent. Also, CardinalStone 

Securities Limited traded 774,445,023 

units, which represents 3.61 percent 

of the total volume of deals at the NSE 

last month; EFCP Limited (652,422,157 

units) or 3.04 percent; ARM Securities 

Limited (471,735,250 units) or 2.20 

percent, and Cordros Capital Limited 

(418,782,987 units) or 1.95 percent. In 

terms of value of equities traded, CSL 

Stockbrokers led the pack of 10 top 

stockbroking firms after accounting for 

equities deals valued at N29.271 billion, 

representing 14.09 percent of the total 

value of equities traded on the floors of 

the NSE last month. Rencap Securities 

(Nig.) Limited was ranked second after 

it accounted for deals valued at N28.521 

billion or 13.73 percent, while equities 

deals by Stanbic IBTC Stockbrokers 

Limited in April was put at N22.547 

billion or 10.85 percent of the total value 

of stocks traded last month. 

Others top 10 stockbroking firms 

and the value of their deals are: EFCP 

Limited (N10.3bn) or 4.96 percent; 

FBN Securities Limited (N10.274bn) 

or 4.94 percent; Chapel Hill Denham 

Securities Limited (N7.833bn) or 3.77 

percent; CardinalStone Securities 

Limited (N7.549bn) or 3.63 percent; 

ARM Securities Limited (N4.340bn) 

or 2.09 percent; Partnership Securities 

Limited (N4bn) or 1.93 percent, and 

Cordros Capital Limited (N3.969bn) 

or 1.91 percent.



I 

NVESTOR 


Earnings season 

Courteville Business Solution commits to 

enhancing shareholders’ value 


Co urteville 

Business 

Solutions 

plc last week 

held its 

‘Facts behind the figures’ 

at the Nigerian Stock 

Exchange (NSE) where 

the management told 

stockbrokers, investment 

analysts, investors and 

other market stakeholders 

about their journey so far 

and the future plans of the 

company listed under the 

ICT sector of the NSE. 

Courteville Business 

Solutions is aiming for a 

profit after tax (PAT) of 

N500 million for the 2015 

financial year; the target 

represents a 57 percent 

growth on the N317.6 

million profit the group 

made in the 2014 financial 

year. 

The company also 

recorded 5 percent growth 

in turnover to N1.35 billion 

in 2014 from 2013 level of 

N1.29 billion. Earnings per 

share (EPS) moved up by 

3 percent to 8.94 kobo in 

2014 financial year from 

8.67 kobo in 2013. 

Net profit margin 

remained relatively stable 

at 38 percent in 2014 from 

35 percent in 2013. Profit 

before tax (PBT) grew by 

13 percent to N457 million 

in 2014 from N403 million 

in 2013. 

The company’s 

turnover rose by 14.48 

percent from first-quarter 

(Q1) 2014 level of N313 

million to N358.35 million 

in the first-quarter (Q1) 

of 2015. Profit before tax 

(PBT) declined by 6.41 

percent to N105.5 million 

from N112.74 million in 

Q1’14. Shareholders fund 

rose by 13.08 percent to 

N3.28 billion from N2.9 

billion. 

The company has 

consistently declared 

yearly dividend since 

listing on the NSE. Among 

other services, Courteville 

Business Solutions is 

the country partner for 

Rackspace to provide 

dedicated and shared 

hosting. The company is 

also a business process reengineering 

consultant, 

and IT infrastructure 

and process audit and 

advisory. 

At the ‘Facts behind the 

figures,’ Adebola Akindele, 

group managing director, 

Courteville Business 

Solutions, said the 

company was diversifying 

its operations to ensure 

that it did not only hit 

its top-to-bottomline 

financial target, it would 

also achieve greater but 

sustained growth. 

As part of its future 

plans aimed at 

enhancing shareholder 

value, Courteville 

Business Solutions 

targets construction of 

the AutoReg Business 

platform into a dominant 

franchise in sub-Saharan 

Africa; full diversification 

into and enhancement 

of e-business solution 

development and services; 

continue the accelerated 

expansion into the 

Africana and Caribbean 

market; expansion of 

AutoReg MVAD franchise 

into other states in Nigeria; 

extending its coverage 

to Kenya and Senegal; 

enhancement of the 

existing Egole Shopping 

platform, and creation 

of universal e-payment 

solutions. 

As part of the 

diversification, 

Akindele said the group 

would embark on the 

construction of its AutoReg 

business platform into 

a dominant franchise in 

sub-Saharan Africa. 

According to Akindele, 

between the start of 2013 

and now, the Courteville 

Business Solutions 

group had designed and 

developed an obligatory 

biometric healthcare 

insurance card project for 

the Republic of Guinea, 

among other things. 

Other projects, 

according to him, 

include the deployment 

of a national insurance 

industry database for 

the Insurance Council 

of Zimbabwe, design 

and development of a 

web-based and mobileresponse 

market hub and 

financial management 

portal for Small and 

Medium Enterprises. 

Some of the company’s 

footprints include: 100 

percent accuracy of 

data capture; processes 

40,000 transactions daily; 

grows client’s revenue 

by 250 percent within 12 

months; employs over 

10,000 operatives; created 

the largest data capture 

platform in sub-Saharan 

Africa, and consistent 

99.8 percent web activity 

uptime. 

Dangote Cement, Transcorp Hotels, Union Bank, others 

get compliance due dates for ‘free-float deficiency’ 

The Nigerian Stock 

Exchange (NSE) 

has instructed 

some listed 

companies to comply with 

the minimum free-float in 

line with the set standards 

under which they are listed. 

In stock market, freefloat 

represents the portion 

of shares of a company 

that are in the hands of 

public investors as opposed 

to locked-in stock held 

by promoters, company 

officers, controllinginterest 

investors, or 

government. 

It helps to better calculate 

the market capitalisation 

of companies because it 

provides a more accurate 

reflection (than entire 

market capitalisation) 

of what public investors 

consider the company to 

be worth. 

Companies identified by 

the NSE for being deficient 

in free-float of their shares 

are: Dangote Cement plc, 

Transcorp Hotels plc, 

Union Bank of Nigeria plc, 

Capital Hotel plc, Great 

Nigerian Insurance plc, 

Chellerams plc, Nigerian 

Ropes plc, Aluminum 

Extrusion Industries plc, 

A.G. Leventis plc, Interlink 

Technology plc, and 

Infinity Trust Mortgage plc. 

The NSE in its 

“X-Compliance Report” 

noted that companies 

listed on the Exchange 

must maintain a minimum 

free float for the set 

standards under which 

they are listed in order 

to ensure that there is an 

orderly and liquid market 

in their securities. 

The free float 

requirement for companies 

listed on the NSE main 

board is 20 percent, 

while for companies in 

the Alternative Securities 

Market (ASeM) is 15 

percent. 

The NSE said the 

companies are expected 

to provide quarterly 

disclosure reports to the 

Exchange detailing their 

level of implementation of 

the compliance plans. 

Dangote Cement plc 

has percentage free float of 

9.07 percent and has been 

given compliance due date 

of October 26, 2016; Union 

Bank of Nigeria, which has 

percentage free float of 

14.94 percent has till June 

30, 2017 to comply. 

Other companies are: 

Capital Hotel plc (2.23%), 

given till April 20, 2016, 

to comply with the set 

standards; Great Nigerian 

Insurance plc (16%), given 

till July 8, 2016, to comply; 

Chellerams plc (14.87%), 

also has till July 8, 2016, 

to comply with the NSE 

directives. 

In addition, Nigerian 

Ropes plc (a company 

which has notified the 

Exchange of its intention 

to delist from the Daily 

Official) has its percentage 

free float at 13.96 percent 

but was given January 

7, 2015, to comply; 

Aluminium Extrusion 

Industries plc (17.55%), 

was also given till April 3, 

2015, to comply with the 

directive; A.G. Leventis 

plc (11.64%), has up to 

March 31, 2017, to comply 

with the standard; Interlink 

Technology plc, which has 

free float of 14.26 percent, 

has up to December 31, 

2015, to company, while 

Infinity Trust Mortgage plc 

has percentage of free float 

at 1.13 percent.


Meristem Investment Guide 

Market mood swings positive 

The bulls fought back 

during the week to 

end a seven-day 

bearish trend. The 

Equities market 

All Share Index (NSE ASI) 

ended the week 0.15 percent 

up, having gained on three 

out of five trading days. The 

positive momentum observed 

towards the end of the week was, 

however, not strong enough to 

erase previous losses as Yearto-Date 

(YtD) return settled at 

-0.63 percent. 

Volume of transactions for 

the week increased marginally 

by 2.52 percent, while value 

traded declined by 28.44 percent 

from the previous week. Market 

breadth for the week pegged at 

0.76x, representing 41 losers 

against 31 gainers. 

Top gainers for the week 

were BERGER, UPL, 7UP, and 

CAVERTON, which posted 

respective gains of 10.25 percent, 

10.04 percent, 8.64 percent, 7.25 

percent, with BETAGLAS and 

NEIMETH appreciating by 10.00 

percent each. On the converse, 

GLAXOSMITH topped the 

underperformers’ chart with 

an 18.15 percent loss in value. 

Other top losers for the week 

were UNITYBNK, SKYEBANK, 

HONYFLOUR and ETIwhich 

recorded losses of 14.89 percent, 

13.20 percent, 12.37 percent and 

11.96 percent, accordingly. 

The late rally observed 

during the week, following a 

predominantly bearish trading 

period, suggests that discerning 

investors are slowly returning 

to the bourse to take advantage 

of fundamentally justified and 

attractively priced stocks. Going 

by the oscillatory movement of 

market returns in recent times, 

we do not consider the current 

mood sustainable. Hence, we 

anticipate that there will be 

pockets of profit-taking activities 

in the coming week. We also 

expect the considerations and 

outcome of the approaching 

MPC meeting to influence 

market activities. 

In this report, we review 

events in the economy, laying 

emphasis on performance 

of different segments of 

the financial market, while 

presenting our expectations for 

the week ahead. 

Economic update: Inflation 

climbs to 8.7%, GDP stems in 

Q1:2015 

National Bureau of Statistics 

(NBS) released the April 

Consumer Price Index, showing 

a 20bps rise in inflation rate to 

8.7 percent up from 8.5 percent 

in March, to mark the fourth 

consecutive increase in 2015. 

Core inflation and food inflation 

surged by 0.2 percent and 0.1 

percent to 7.7 percent and 9.5 

percent, respectively (vs. 7.5% 

and 9.4% in March). We are of 

the opinion that the inflation 

was cost driven, owing to the 

continuous depreciation of the 

naira against the dollar, which 

has impacted adversely on 

production cost. 

GDP growth suffered a 

significant decline in the first 

quarter of 2015, as it settled at 

3.96 percent, implying a 1.98 

percent slide relative to the 

5.94 percent growth recorded 

in Q4:2014. The non-oil sector 

grew by 5.59 percent, with 

growth largely driven by the 

trade, agriculture, construction 

and telecommunication 

sectors. Low global oil prices 

and inefficient supply of crude 

(pegged at 2.18mbpd), impacted 

negatively on oil-sector growth 

as real growth settled at -8.15 

percent, while the contribution 

of the oil sector to GDP was 

10.45 percent. 

NBS also released a 

controversial unemployment 

statistics, stating that 

unemployment rate declined 

from 23.9 percent in 2011 to 6.4 

percent as of Q4:2014. 

Business and economic 

activities slowed during the 

week, owing to petroleum 

product scarcity. This is 

expected to persist as petroleum 

marketers insist on receiving 

subsidy debt of over N200 

billion owed by the government, 

FUND PRICE OF PFAs AS AT MAY 15, 2015 

before supplying the product. 

Considering the cash-flow 

crunch facing the country, 

and with only a few days to 

the swearing-in of the new 

government, we anticipate that 

the situation might be sustained 

if the present government is 

unable to settle. 

Fixed income: Apex bank 

activities dominate during 

the week 

The week was somewhat 

eventful, starting with two OMO 

auctions early in the week in a 

bid to reduce excess liquidity 

in the system. At the interbank 

market, the Call, 1M, 3M and 

6M tenors closed at respective 

rates of 13.54 percent, 14.76 

percent, 15.69 percent and 16.61 

percent for the week. OBB and 

OVN rates also closed at 14.29 

percent and 14.67 percent, 

respectively, which represent 

WtD changes of 6.04 percent 

and 5.88 percent accordingly. 

The Nigerian Treasury Bills 

market enjoyed moderate buy 

sentiments during the week. 

This demand was particularly for 

the shorter-term instruments, 

and the WtD change in yields 

were 2.46 percent, 0.66 percent, 

0.80 percent, 1.07 percent, 1.46 

percent and -0.32 percent for 

the 1M, 2M, 3M, 6M, 9M and 

12M bills, respectively. 

Yields in the bond space 

trended downwards generally 

during the week; the average 

offer yields on Benchmark and 

Off-the-run bonds pegged at 

13.82 percent and 15.22 percent, 

respectively, at the end of the 

week. Also in the week, the 

DMO conducted auctions of 

five-year, 10-year and 20-year 

bond instruments worth N60 

billion and was fully subscribed. 

Continuous demand for 

the greenback resulted in the 

depreciation of the domestic 

currency. Although naira saw 

pockets of gains during the 

week, YtD return remains 

negative at -6.64 percent. Naira 

closed the week at a mid-price 

of N197.67/dollar, while forward 

quotes remained flat. 

S/N PFAs CURRENT PRICE 

1 CrusaderSterling Pensions 2.7204 

2 ARM Pension Mgrs. 2.7122 

3 Premium Pensions 2.6736 

4 Stanbic-IBTC Pensions 2.6093 

5 Legacy PFA 2.5387 

6 NLPC PFA 2.4283 

7 Trustfund Pensions 2.4029 

8 PAL Pensions 2.3855 

9 SigmaVaughn Pensions 2.3041 

10 First Guarantee Pension 2.2895 

11 Leadway Pensure PFA 2.2182 

12 AIICO Pension Managers 2.0882 

13 Fidelity Pensions 1.9142 

14 APT Pensions 1.8746 

15 FUG Pensions 1.8411 

16 OAK Pensions 1.8196 

17 Investment One Pension Mgrs. 1.7769 

18 Penman Pensions 1.7768 

19 IEI Anchor Pension Managers 1.6801 

20 IGI Pension Fund Managers 1.4225 

Investor’s Square 

•Have you been shabbily treated by your registrar, stockbroke r or 

other capital market operators? 

Let us know and investor will help you investigate and report back. 

E-mail: investor@businessdayonline.com 

Africa investor index 

Company Ticker Sector Country Price Price MKT P/E Shares 

US$ Chan. on Cap in issue 

the week SMn Mn. 

SAB Miller SAB SJ Beverages South Africa 56.75 -3.0% 91,029.28 21.3 1,604.0 

Anglo American AGL SJ Mining South Africa 17.13 -1.4% 23,930.61 6.2 1,396.7 

Sasol SOL SJ Oil & gas South Africa 38.13 0.8% 25,885.28 11.4 678.9 

MTN Group MTN SJ Telecommunications South Africa 19.82 -3.1% 36,113.35 15.6 1,822.2 

Standard Bank SBK SJ Banking & finance South Africa 14.30 -0.4% 23,144.43 12.4 1,618.4 

Anglo Platinum AMS SJ Mining South Africa 26.17 4.8% 6,988.14 22.2 267.0 

ANGLOGOLD ASHANTI LTD ANG SJ Mining South Africa 11.01 0.7% 4,447.49 12.4 404.0 

Tullow Oil plc TLW GN Oil & gas Ghana 8.51 1.0% 7,704.15 330.0 904.9 

Maroc Telecom IAM MC Telecommunications Morocco 13.31 0.5% 11,702.25 18.1 879.1 

DANGOTE CEMENT PLC DANG NL Building Materials Nigeria 0.90 0.3% 15,409.98 16.7 17,040.5 

Orascom Construction OCIC EY Construction Egypt 37.37 0.0% 7,731.67 -39.6 206.9 

Attijariwafa Bank ATW MC Banking & finance Morocco 36.63 2.6% 6,960.52 14.5 190.0 

Nigerian Breweries NB NL Breweries Nigeria 0.98 -0.5% 7,385.83 28.4 7,562.6 

Banque Marocaine du Commerce BCE MC Banking & finance Morocco 22.96 0.5% 4,120.51 54.5 179.5 

Telecom Egypt ETEL EY Telecommunications Egypt 1.03 23.2% 1,766.29 6.3 1,707.1 

VODAFONE EGYPT VODE EY Telecommunications Egypt 9.81 0.0% 2,353.25 7.4 240.0 

BANQUE CENT. POPULAIRE BCP MC Banks Morocco 23.49 1.3% 4,067.53 14.4 173.1 

Lafarge LAC MC Building materials Morocco 177.42 -0.5% 3,104.84 18.8 17.5 

Douja Prom Addoha ADH MC Real Estate Morocco 3.27 0.8% 1,053.67 5.4 322.6 

Sonatel Sn SNTS BC Telecommunications Brvm 40.95 -2.7% 4,094.82 12.3 100.0 

Guaranty Trust Bank GUARANTY NL Banking & finance Nigeria 0.15 -1.7% 4,398.57 8.4 29,431.2 

Zenith Bank ZENITH NL Banking & finance Nigeria 0.11 -3.8% 3,534.27 6.9 31,396.0 

CGI CGI MC Real Estate Morocco 75.66 0.5% 1,392.83 35.5 18.4 

Guinness Nigeria PLC GUINNES NL Beverages Nigeria 0.79 4.2% 1,182.51 83.9 1,505.9 

Commercial International Bank CIB EY Banks Egypt 7.34 -0.2% 6,666.08 12.5 908.2 

First Bank FIRSTBAN NL Banks Nigeria 0.05 1.8% 1,634.85 4.7 35,895.2 

Abu Kir Fertilizers ABUK EY Chemicals Egypt 21.03 0.0% 1,768.85 10.9 84.1 

East African Breweries EABL KN Breweries Kenya 3.20 7.4% 2,527.37 37.6 790.8 

Safaricom Ltd SAFCOM KN Telecommunications Kenya 0.17 5.3% 6,932.61 20.5 40,065.4 

Mauritius Comm. Bank MCB MP Banking & finance Mauritius 7.21 0.0% 1,768.74 12.4 237.8 

Mobinil EMOB EY Telecommunications Egypt 14.92 12.1% 1,492.47 -41.7 100.0 

T M G HOLDING TMGH EY Real Estate Egypt 1.19 11.2% 2,463.42 26.9 2,063.6 

Poulina Group Holding PGH TU Holding Companies-Divers Tunisia 2.67 2.2% 481.36 13.8 180.0 

Ecobank Transnational Inc ETIT BC Banks Brvm 0.10 -0.4% 1,672.42 5.1 17,212.2 

STANBIC IBTC BANK PLC IBTCCB NL Banks Nigeria 0.15 0.6% 1,519.86 11.3 10,000.0 

State Bank Mauritius SBM MP Banking & finance Mauritius 0.03 -1.3% 980.24 - 31,000.0 

Barclays Bank Kenya BCBL KN Banking & finance Kenya 0.16 4.6% 885.30 10.0 5,432.0 

Banque De Tunisie BT TU Banking & finance Tunisia 5.66 -1.3% 849.46 15.7 150.0 

Equity Bank Limited EQBNK KN Banking & finance Kenya 0.52 -4.6% 1,929.94 10.4 3,702.8 

Kenya Comm. Bank Ltd KNCB KN Banking & finance Kenya 0.61 5.4% 1,831.76 10.0 2,984.2 

Africa investor Ai40 Weekly Commentary – 18 May 2015 

The very slightest of 

movements saw the Ai40 

Investors Index tiptoe into 

positive territory. With a 

gain of just 0.05 points, the 

Index moved up by 0.04% 

to reach a close of 113.94 – 

up from last week’s value 

of 113.89. Egypt and Kenya 

were the week’s winners, 

dominating the top 

performers’ list. Investor 

confidence is returning to 

Egypt and the bourse has a 

number of IPOs lined up for 

the year. 

Friday ended quietly with 

major US markets mostly 

unmoved. The S&P 500 did 

however edge up to a record 

high for a second straight 

session. Weak industrial 

output and consumer sentiment 

reports did little to 

scare investors and a sense 

of optimism dominated the 

day’s trading. 

At Friday’s close, the 

Dow Jones Industrial Average 

gained 0.11%, or 20.32 

points, to close at a value 

of 18,272.56. The Nasdaq 

Composite Index dropped 

I 

NVESTOR 


0.05%, or 2.50 points, to 

end the week on a value of 

5,048.29, while the S&P 500 

was up 1.63 points, or 0.08%, 

to close at 2,122.73. 

Gainers 

Egypt took the top three 

spots on the winners’ list this 

session. Top performer was 

Telecom Egypt, gaining a 

massive 23.2% on the Index. 

The telecoms firm, which released 

its first-quarter results 

last week, recorded a rise in 

net profit of 9.9% to 604 million 

Egyptian pounds (US 

$79.16m), thanks to strong 

retail growth. It was followed 

by another telecoms 

firm, Mobinil, which gained 

12.1%. Real estate firm TMG 

Holding was close behind 

with a jump of 11.2%. 

Kenya’s East African 

Breweries gained 7.4% and 

was followed by Kenya Commercial 

Bank (KCB), which 

increased its price by 5.4%. 

KCB shareholders recently 

approved formation of KCB 

Group Limited, a non-operating 

holding company 

BUSINESS DAY 

21 

which will own the bank and 

all its other interests. 

Losers 

Kenya’s Equity Bank 

didn’t have the good fortune 

of its compatriots this 

session. It recorded the worst 

performance on the Index 

for the week, losing 4.6%. The 

bank is planning an ambitious 

ten-nation expansion 

across the continent. It was 

followed by Nigeria’s Zenith 

Bank, which lost 3.8%. The 

bank and three others were 

fined by the Central Bank of 

Nigeria for contravening the 

Banks and Other Financial 

Institutions Act last year. 

Two South Africans followed: 

telecoms giant MTN 

Group and brewer SABMiller 

lost 3.1% and 3.0% respectively. 

The list was rounded 

off by BRVM-listed, Senegalbased 

telecoms firm Sonatel, 

which dropped 2.7%. 

For more on the Ai40 Index, 

please visit the Africa investor 

website at www.africainvestor. 

com.



BUSINESS 

TRAVEL 

and managing director of 

Quantum Travels Limited, 

said that the decision of the 

four companies to form this 

consortium was not made 

from the comfort of their financial 

success but from the 

depth of their experience in 

the market. 

He explained that together, 

the companies pooled a 

wealth of experience, skills 

and competencies that give 

TICO the competitive advantage 

and its drive to work 

In Association with 

First travel agencies’ consolidation yields N36bn revenue in 2014 

...launch new brand 

SADE WILLIAMS 

To uchdown 

Travels Limited, 

Finchglow 

Travels Limited, 

Dees Travels and 

Tours Limited and Quantum 

Travels Limited under 

their new body, Travel Investment 

Company (TICO), 

generated a combined revenue 

of N36bn in 2014, underscoring 

the fact that the 

travel industry is a multibillion 

naira sector. 

The N36bn combined 

revenue is said to represent 

20 percent of the market 

share, with the TICO targeting 

to grow by 15 percent 

year on year. The companies 

also say they have put their 

share capitalisation at N100 

million. 

This was disclosed at 

the weekend during the 

formal launch of TICO in 

Lagos; a body that midwifed 

the consolidation 

of four of the biggest travel 

companies in Nigeria. 

This idea of consolidation 

in the travel industry is 

about the first in Nigeria 

Michael Otubu, managing 

director of the board 

Caverton’s Choms elected HeliOffshore board member 

Josiah Choms, managing 

director, Caverton 

Helicopters, has been 

elected as a member to 

the Board of HeliOffshore. 

HeliOffshore is a global 

safety-focused organisation 

formed by major providers 

of offshore helicopter transportation 

namely Bristow, 

CHC, ERA and PHI. 

By his election to the 

Board, Caverton Helicopters 

have joined this renowned 

group in driving technology, 

setting flight safety stand- 

From L-R: Bankole Bernard managing director, Finchglow Travels Limited; Irene Uti-Egbeogu, chief 

executive officer, Travel Management Company (TICO; Michael Otubu, chairman of the board and 

managing director of Quantum Travels Limited; Daisi Olotu, managing director of Dees Travels and 

Tours Limited, and Dayo Adeola, managing director, Touchdown Travels Limited, at the launch of 

first ever consolidation in the travel industry in Nigeria, held at Intercontinental hotel, Victoria Island, 

Lagos. 

Photo: Sylvester Okoruwa. 

towards building a brand 

that will become a foremost 

leader in the global travel 

industry. 

Otubu hinted that their 

objective is to diversify 

their operations by adding 

TICO cargo, airports 

drop-off services as part 

of their operations, by 

putting together travel 

finance options. 

“The decision by the concerned 

travel agencies to 

consolidate was more of a 

Captain Josiah CHOMS (PhD) far left is welcomed into the Board of 

HeliOffshore by it’s CEO Gretchen Haskins far right with the CEO’s 

of CHC, PHI, ERA, Bristow and WestStar Aviation. 

ards, sharing best practices, 

and advocating for harmonised 

safety standards for 

offshore helicopter opera- 

natural decision given the 

competitive nature of the 

industry. So, in that regard, 

this is not a new business 

model. 

“However, given the circumstance 

of the industry 

changes and looking at the 

prospects consolidation 

presents, it is a welcome development 

to explore other 

means of revenue generation,” 

he added. 

Speaking on how the 

individual agencies hope to 

tions. 

As the MD of Caverton 

Helicopters, Choms brings 

to the Board more than 20 

years’ continuous experience 

in fixed wing and rotary 

wing operations. He holds 

the Airplane Transport Pilot 

Licenses (Aeroplanes and 

Helicopters) and is a certified 

flight instructor and 

an authorised examiner for 

the Nigerian Civil Aviation 

Authority. He is also an ISO 

9001:2008 Lead Auditor. 

During his inaugural 

bury their egos in a business 

of such magnitude, Dayo 

Adeola, managing director 

of Touchdown Travels 

Limited, stated that ego is a 

personal thing and has no 

place in the duty of making 

business decisions. 

He noted that TICO’s 

principals are indeed very 

successful in their own 

rights but in the face of a 

common industry challenge, 

they had drawn on 

from their experiences to 

come together with a collective 

vision which can 

only benefit them as a consortium 

and as individual 

companies as well. 

According to him, “Consolidation 

is widely adopted 

in Europe, South Africa and 

USA. We can say it started 

in mid-90s in the USA in the 

face of stiff competition in 

the American travel industry. 

Europe caught on not 

too long after.” 

To him, Asia picked up 

on it within months and 

now the rest of the world is 

seeing it as a viable strategy 

for cost reduction and profit-making, 

adding that Nigeria 

is not exempted from the 

pressures characterised in 

global business operations 

speech, Choms stressed 

the importance of sharing 

best safety practices 

amongst the HeliOffshore 

operating members, explaining 

that implementing 

the HeliOffshore lessons 

ensure that the industry’s 

safety performance 

will further improve. 

“This way, we will provide 

our passengers with the safest 

and most comfortable 

flight possible while proceeding 

to the offshore worklocations,” 

he said. 

and has no option but to toll 

the line. 

Irene Uti-Egbeogu, chief 

executive officer of TICO, 

said TICO is the brain behind 

this new initiative, 

noting that consolidation 

is desirable at this point in 

time. 

She stated that the travel 

industry in evolving and 

consolidation is an extract 

from that evolution. 

“Consolidation is sweeping 

the global travel industry 

and bringing about tighter 

affiliations and stronger 

brands. In Nigeria, I believe 

that it will bring about 

efficiency in terms of the 

operations aspect. TICO has 

looked into the future and 

seen that there is strength 

in number not just by statistic 

but by strength in competence 

and negotiation 

standpoint. 

“When you need to broker 

deals for your clients and 

partners, you want to do it 

from a place of strength and 

not weakness. At the end of 

the day, it is really about the 

customer getting the best 

value and travel experience 

they are looking for. Consolidation 

can drive that in 

this market,” she added. 

Choms indicated further 

that Caverton Helicopters is 

committed to the HeliOffshore-mission 

of “Collaborating 

for Safety” and that his 

talented safety professionals 

will play an active role in the 

Safety Activity Groups that 

have been formed by the 

association. 


Choms was appointed the 

MD of Caverton Helicopters 

as part of a strategic move to 

deepen the aviation logistics 

business of COSG.


BUSINESS DAY 

23 

GARDEN CITY 

BUSINESS DIGEST 

Electricity consumers in PH 

District join global rating 

IGNATIUS CHUKWU 

By the stroke of two 

signatures which 

sealed a deal between 

the Port Harcourt 

Electricity 

Distribution Company (PHED) 

and CRC Credit Bureau, consumers 

in the Port Harcourt 

District or Disco made up of 

Rivers, Bayelsa, Akwa Ibom and 

Cross River (4-Power region), 

are now part of a group of rated 

consumers around the world 

with over 200 years backup 

experience. 

Other economic sectors in 

Port Harcourt would also come 

under data net. The CRC Credit 

Bureau has already revealed 

that all the micro-finance banks 

in Port Harcourt would be captured 

by the bureau while all 

non-banked micro-lending organisations 

both in Rivers State 

and beyond have been mapped. 

The CRC boss said most persons 

who had no bank accounts 

would be captured in the CRC 

data bank through cooperatives 

and over 8000 micro-lending 

organisations in Nigeria that 

were not banked. 

This came to limelight on 

Monday, May 11, 2015, at the 

signing of partnership agreement 

between the Port Harcourt 

Electricity Distribution 

Company (PHED) and CRC 

Credit Bureau at Swiss International 

Hotel in Trans-Amadi 

section of Port Harcourt. 

For a start, the consumers 

would soon be captured on a 

data bank and their payment 

behaviour could help them 

access bank loans. PHED’s 

CEO, Jon Abbas, signed for 

his company while the CEO of 

CRC Credit Bureau, Popoola, 

endorsed for his firm. 

The consumers in the 4-Power 

zone (PH) would automatically 

join those in oil and gas, 

merchant banks, engineering 

world, commercial banks, primary 

mortgage banks, microfinance 

banks, cooperative 

societies, and other financial 

institutions. There are also 

those in recruitment consultancy, 

courier companies, noninterest 

earning institutions, 

pharmaceuticals, travel/tours/ 

hospitality industry, retailers, 

and transportation. 

Other categories already in 

the global rating net in Nigeria 

include insurance companies, 

L-R: Kingsley Achife, COO, PHED; Jon Abbas, CEO PHED; Tunde Popoola, MD/CEO, CRC Credit Bureau Limited; and Tayo 

Arinkembe, Head Operations CRC Credit Bureau Ltd 

accounting/audit firms, government 

institutions/specialised 

banks, leasing companies, 

discount houses, and telecom 

companies. 

The rating will provide complete, 

accurate and reliable 

information on credit status 

and history thus improving 

the ability of credit providers 

to make informed lending decisions. 

This way, aggregated 

credit information through 

credit reference reports would 

come from banks and institutions 

to business users in the 

various sectors. 

The advantage to consumers 

would include belonging 

to a global network of rated 

consumers which helps for 

referencing and easy access to 

credit and loans. 

CRC Credit Bureau is said to 

be linked to the global organ 

with over 200 years experience. 

It is also said to be formed by 11 

top banks in Nigeria with the 

strong approval of the Central 

Bank of Nigeria (CBN). 

Abbas of PHED had explained 

that the Disco was 

seeking ways to improve power 

supply to consumers in the face 

of numerous challenges, and 

that data gathering and clean 

up of data were some of the 

ways. 

He also talked about new 

billing system on the way as 

a strategy for better service, 

as well as synergy with other 

stakeholders to help customers 

to gain credit rating. The profiling 

would involve corporations 

and residential categories. 

Tunde Popoola, the CEO of 

CRC Credit Bureau, was full of 

joy, saying a new chapter was 

opening in Nigeria, adding that 

customers with good utility 

rating could secure waivers for 

loan history required by banks. 

He said credit rating of consumers 

in Nigeria would help 

the nation’s image and reduce 

the stigma of advanced fee 

fraud perception (419). “This 

is a sign of eagerness to run on 

credibility. CRC is owned by 11 

top banks, partnering an international 

risk management solutions 

firm, with over 200 years. 

“This is taking place overseas, 

warehousing data of borrowers 

for ease of loans. CRC 

has two products; Credit History, 

and Credit Score. We 

collect from all utility groups 

so that credibility can be crosschecked.” 

He said CRC has captured 

over 600 companies so far in Nigeria. 

“The CBN has mandated 

all to hand over all borrowers 

data to CRC, other companies 

do so not by force of law but by 

choice; hotels, leasing companies, 

auto dealers, etc. It helps 

in appraisal; consumers can go 

with their credit rating to PHED 

for post-paid services or go for 

loans, it gives character.” 

On answering a question on 

how the credit rating would 

reliable in a high job volatility 

economy and a situation 

where utility providers had poor 

image, Abbas tried to exonerate 

the PHED and the Discos 

for the poor services. He said 

power supply was too low for 

the 170m Nigerians and that 

to manage just about 4000mw, 

infrastructure has been a huge 

constraint. “There are issues. 

There are energy thieves and 

other constraints causing about 

50 per cent loss.” 

He said that in another five 

years, things would be better, 

and there could be reliability. 

“The data project is aimed at 

long-term solution; taking responsibility 

is to say, yes, we 

are ready. We improve to supply 

power, you improve in paying 

bills.” 

Popoola chipped in: “This is 

a building block, and a hopesystem 

whereby some facilities 

enjoy power uninterrupted. 

There is a value chain for creditability: 

power – payment – 

diesel.” 

It was further revealed that 

over 250,000 meters were now 

in Port Harcourt for release 

to consumers. “This project is 

about behaviour modification; 

our study reveals shocking 

neglect of payment behaviour. 

A lot of us are doing the right 

thing. 

“Paying your bills gives you 

credibility. Landlords ask for 

two years upfront because of 

lack of trust that the tenant 

will pay. We urge consumers 

to give correct information at 

all as data is being gathered. It 

gives success. Cash economy is 

backwardness.” 

In South Africa, he said, over 

three million credit transactions 

take place per day. 

“That is the way we want 

to go.” On the vexed issue of 

identity protection, Popoola 

said the CRC Credit Bureaus 

was licensed by the CBN. “They 

also crosscheck what we do 

with data. That is why we use 

a 400-year old platform. There 

are processes for accessing 

information. Soon, we link up 

with data base of banks.” 

Throwing some light from 

an international angle, Chris 

Newsom of the Stakeholder 

Democratic Network (SDN), a 

non-governmental organisation 

(NGO), said the upcoming 

exercise would create predictability 

in Nigeria’s growing 

consumer market. “It is the 

beginning of change from prepaid 

market to post-paid system 

of service. For now, Nigeria’s is 

a cash-economy, but this will 

lead a predictable system of 

business relationship.” 

Members of the business 

community, especially from 

the Rivers State Entrepreneurs 

and Investors Forum (REIF), 

expressed preparedness to embrace 

the experiment. Chapp 

Jombo, a REIF trustee, said;



GARDEN CITY BUSINESS DIGEST 

UST and business education management: 

Security key to Nigeria’s economic 

development – Greenocean CEO 

Maureen Koko emerges top professor at Nigeria’s best state university 


Only the likes of A.J. Toby, 

the erudite professor and 

university orator of the 

Rivers State University of 

Science and Technology, 

(RSUST, Nigeria’s foremost e-University), 

could find the right phrases to 

present the inaugural lecturer of April 

29, 2015, in the best state university in 

Nigeria. 

Toby prepared the minds of the elite 

audience that filled the amphitheatre 

to the brim to listen to a woman who 

was withdrawn from secondary/commercial 

school on account of being a 

girl-child (to give way for the boys to 

see the light); a woman who refused 

to accept this bitter fate by resort to an 

adult education opening later in life; a 

woman who served other academics 

thinking hers was over; a woman who 

later fought back until she became not 

just a professor but a hard-nut that 

corrects other professors; an academic 

who had was about to be initiated into 

the special cult of tested and inaugural 

professors of the Nigeria’s 12th overall 

best university. 

At the UST now, it is very significant 

to belong to the rare class of inaugural 

professor, those who have presented 

a body of scholarly knowledge. An 

inaugural lecture is an occasion of 

significance in an academic staff member’s 

career at any university. Inaugural 

lectures also provide newly appointed 

professors with the opportunity to inform 

colleagues, the campus community 

and the general public of their work 

to date, including current research and 

future plans. In some universities, professors 

are usually required to give their 

inaugural lecture within 12 months of 

their appointment. 

Inaugural lectures are a ceremonial 

occasion and the UST, it is now something 

else. Academic robes are worn by 

the inaugural professor and the rest of 

the platform party. 

It is an honour to be presented and 

to present others. And so, Toby read out 

an account that stated thus; on Tuesday, 

June 1, 1954, at Imo River town in 

present day Oyigbo local government 

area of Rivers State, Maureen Nmema 

Koko was born a fourth surviving child 

of her parents. Koko’s career path, he 

stated, spans through many years from 

little beginnings. 

Toby said; “After her primary education, 

she spent a little time in a secondary/commercial 

school and was later 

withdrawn because girls’ education 

was not valued at the time”. The young 

Nmema (as she was called by many) 

was pretty but beneath that beauty was 

a hidden desire to disobey tradition 

and escape to destiny. Thus, her beauty 

attracted a husband and she accepted 

what was seen as the only plate for girls, 

marriage. 

Fate later threw pretty Nmema (now 

Koko’s wife) to London at the age of 23 

and took revenge by quickly enrolling 

at ‘Brixton College for Further Education’, 

as an adult learner where she 

obtained a few GCE O/level papers. 

Pursuing her luck further, she trained 

as a professional secretary at Crown 

Secretarial College, London (affiliate 

of Pitmans College) and obtained a 

diploma; opportunities made possible 

by her husband. 

Back to Nigeria and to Rivers State, 

she continued her education while in 

the employment of RSUST, and obtained 

a Bachelor of Science Degree in 

Business Education (Secretarial Option), 

2nd Class Upper Division in 1987. 

Apparently provoked by what she could 

achieve academically, she enrolled 

for the Masters Degree in Educational 

Management in 1993. 

All this while, she eyed the world 

of academic staff members and the 

pride of lecturers, but bide her time. In 

1995, Nmema shocked the university 

community by presenting unassailable 

evidence that she was capable of holding 

her own in classrooms and in the 

academic side of university workforce. 

After her conversion from the nonacademic 

cadre to academics, she 

enrolled for a doctorate degree in 

Educational Management majoring 

in ‘High Education Administration/ 

Education Laws’, at the University of 

Port Harcourt. She graduated in 1998. 

While Toby was reeling out all this, 

some of those in the back seats who 

worked closely with the rare woman 

kept shaking and swearing that all was 

true. They found in her everything they 

ever wished for themselves and so, 

cheered on with a frenzy only found 

in football fans. Toby went on: “As a 

non-academic staff (Confidential Secretary), 

Koko rose to rank of assistant 

chief executive officer (Secretarial), 

before her conversion.” 

He said her academic career started 

in 1995 as Lecturer Two. “She was 

promoted to Lecturer 1 in 1997, Senior 

Lecturer in 2000, Reader in Business 

Education in 2003, and (wait for it), 

a professor in 2006”. According to the 

orator, Koko teaches both undergraduate 

and postgraduate courses and has 

supervised and graduated four Ph.D., 

M.Ed. and 15 PGDE students to date. 

The hall shook to its foundation with 

explosive cheering. 

He read on: “Koko has held very 

important positions in the University 

including: Acting Head of Department, 

Business Education (1999-2001, 2006- 

2007 and 2014-date), Acting Dean, 

Faculty of Technical and Science 

Education (2007-2009) and Director, 

Academic Planning and Statistics Unit 

(2010-date) as well as Coordinator 

of the University’s Entrepreneurship 

Development Centre. 

She is also chairman/member/ 

coordinator of various committees and 

units of the University such as Senate 

Research and Publication, Senate Adhoc 

Committee on Undergraduate 

Indiscipline, Vice Chancellor’s Ad-hoc 

committee on Staff Misconduct, Departmental 

Examination Officer, Adhoc 

committee on Entrepreneurship 

Studies, Senate Ad-hoc Committee on 

Undergraduate Students Orientation, 

FTSE Accreditation Task Force, etc.” 

Koko has not been found rare and 

useful only in the UST but she renders 

Fighting the odds: from school withdrawal to professor: Maureen Koko 

community services as; External Assessor 

(Professorial)/External Examiner 

(postgraduate) for Universities of 

Nigeria, Port Harcourt, Calabar, Uyo 

and Niger Delta University as well as 

Accreditation Panel Member for the 

National Universities Commission and 

National Commission for College of 

Education (NCCE), Toby stated. 

He told the audience that Koko’s 

academic prowess could be better 

appreciated in the volume of her publications 

from her non-academic days 

to this time that she was presenting her 

107-page inaugural lecturer. “These 

include eight books, nine chapters 

in edited research books, 50 journal 

articles (local and international), 21 

conference/workshop/seminar papers; 

over a 100 contribution packages! 

She is a fellow, Association of 

Personal Assistants and Secretaries 

(FAPAS), Associate, Institute of 

Qualified Private Secretaries (AIQPS), 

Licensed Member, Association of 

University Administrators (all in Great 

Britain); Nigerian Association of Education 

Administration and Planning 

(NAEAP), National Association of Business 

Educators (NABE), Curriculum 

Organisation of Nigeria, (CON), etc. 

She was recently honoured by her alma 

mater, UNIPORT, as a Distinguished 

Alumnus for her contributions to humanity 

and society.” 

It was at this point that Toby began 

the descent: “Ladies and Gentlemen, 

here is an Amazon, who through doggedness, 

determination and hard work, 

improved her life working through low 

ranks and qualifications as a non-academic 

staff and rising to the pinnacle 

of academic excellence. She is also a 

Consultant in Business Management 

and Human Resources Management.” 

The orator saw the fire in the crowd 

and applied some brakes: “Koko is 

happily married to the deacon, Sam 

Koko of the ancient town of Ogoloma in 

Okrika Local Government Area, Rivers 

State, and the marriage is blessed with 

five children (Henry, Loretta, Ibinabo, 

Piriye and Sharon) and three grand 

Children, Soibi, Belema and Mikaila.” 

A huge applause followed this because 

of the way Africans value children and 

offspring. 

This woman’s’ life is true to what 

she believes in “With God all things 

are possible to those who believe”, the 

orator noted. No wonder without the 

privileges of a full formal secondary 

education, today, Nmema has risen to 

an enviable position within the university 

and the larger society,” he added. 

Toby released all the brakes and 

the audience pursued his breathtaking 

narrative descent: “Who is this roundly 

and thoroughly educated woman 

that has risen from common typist to 

professor? Who is this professor that 

has held nearly all possible offices in 

a university? 

“Yes! Who is this published scholar 

who has drawn from and enriched 

professional bodies and community 

services at several levels? Who is this 

Christian wife, a worthy ambassador of 

our Lord Jesus Christ that is not only an 

international scholar but also a mother, 

benefactor and loyalist to the core? In 

answer to these questions, I urge all 

to behold our 34th Inaugural Lecture: 

the grandma professor, Mrs Maureen 

Nmema Koko.” 

When the woman stepped onto 

the podium, and after surviving the 

endless applause, she exploded in 

what looked like washing dirty line 

in public by looking the academic 

community in the face to point out 

what always went wrong in university 

management in most universities, especially 

wrong decisions and policy 

summersault. Her refrain, ‘what you 

do not know may hurt’, seemed to rub 

in the pepper. It was made clear that it 

was avoiding ‘Koko’s Triangle’ that the 

UST has recently excelled to a leading 

university. She however concluded by 

warning that her points should be seen 

as a review to excel.


BUSINESS DAY 

25 


Nigeria’s change in a change 

Port Harcourt by Boat 

With 


Mu hammadu 

Buhari’s emergence 

on the 

democratic 

leadership 

landscape in Nigeria after the 

March 28, 2015 is a big change 

in Nigeria’s socio-political 

transformational history. The 

key observation, however, is 

that many groups have many 

kinds of change in mind. 

It is how to aggregate these 

change-mantras that could 

make or mar the Man of Change 

and his party, the All Progressives 

Congress (APC). To many 

people, this change means 

transfer of power from the 

South to the North for the second 

time since 1999. 

The first time came when 

then outgoing president, Olusegun 

Obasanjo, moved power to 

ailing Umaru Musa Yar’Adua, 

and his death two years later 

meant power returned to the 

south via Ijaw’s Goodluck Jonathan. 

They craved so much for the 

return of power that they for 

once resolved this time around 

to recapture it by force or by 

fire. Many may not know how 

much this meant to the north 

and how much implication 

it had held for the continued 

existence of the country called 

Nigeria. Many seers foretold 

many impending dooms of the 

last election. 

A business man in a part of 

the North gave testimony of his 

return to the east. He had done 

a big favour to his landlord and 

also wrote off a debt of N300,000 

his landlord had borrowed from 

him to help treat his wife. 

The landlord then invited 

him into the bedroom and 

showed him two rifles and 

ammunition said to have been 

shared to all landlords ahead of 

the elections. The instruction 

was that if the north lost the 

election, each landlord should 

start killing in his domain. 

He therefore instructed his 

good tenant to sell off all important 

things, to take his family, 

and to move home. The elections 

came and went and the 

landlord asked his beloved tenant 

to feel free to return, and he 

did. Those who do not appreciate 

the sacrifice Jonathan made 

to avert massive bloodshed and 

a possible violent break-up of 

Nigeria may still be talking out 

of order. 

So, the north sees the change 

in their own way; the recovery 

of their right to rule; the return 

of access to power, and the start 

of the perceived rebuilding of 

their part of the country. To 

such apostles, if the change ignores 

this and fails to give them 

positions, access to power, 

etc, would they understand? 

To them, change has only one 

definition. 

There are those who believe 

that a Muslim should never be 

ruled by a non-Muslim. To such 

group, the right people have 

come back to power. To them 

change means getting the right 

religious group back to power, 

the way it ought to be. Would 

this group be comfortable if 

things turn out later not to be 

so? Would they accept anyone 

telling them that all religions 

were equal and that the new 

Man of Change did not come 

to lay one religion on top of the 

other? 

There are those who understand 

the change to mean 

punishment meted out to the 

PDP for not shifting power to 

the next zone. They particularly 

see it as punishment to 

Jonathan for not heeding to a 

so-called deal with the north 

to do only one term. Some of 

those in the PDP claimed it 

was the reason a faction led by 

governors broke away to the 

APC in the first place. To them, 

anyone attempting to breach a 

deal in future would remember 

what happened in 2015 and 

think twice. 

Yet, there are those who understand 

the change to mean 

end to impunity, corruption 

and insecurity. They want to 

see things done properly and 

legally at all times. They want 

Nigeria to stop being a laughing 

stock before in international 

community due to upside down 

actions. 

They argue that Nigeria was 

looted blue and dry under one 

particular military dictator 

and that the scenario seemed 

to have re-emerged, needing 

a stop. They point to several 

acts of impunity in the land; 16 

made greater than 19; a woman 

allowed to snatch microphone 

in public from her host governor 

to pour dirt; a commissioner of 

police rising above a governor; 

impeachment of governors for 

small offences while governors 

with larger offences clapped; 

the embrace of kings of corruption 

just to expand electoral 

fortunes and coasts, etc. 

They said pension funds vanish, 

snipers pardoned, states 

denied funding windows, oil 

wells moved to friendlier states, 

oil blocs handed out like snacks 

of favours, etc. Those in this 

category fought like lions with 

the sole intent of stopping the 

rot and saving their states, 

their political careers, and the 

treasury. If this group wakes up 

one day to find that Change is 

not bringing this change, they 

may kick to seek a real Change. 

There are those who fought 

for power to come to the opposition. 

Their only motivation 

was that there should be no one 

party enjoying Nigeria and that 

the country must not become 

a one party state. To them, 

power in the PDP for 16 years 

meant that those in other top 

opposition parties had suffered 

for long. 

So, change must come to 

compensate those who had 

been denied for long. Those in 

this group may not actually be 

keen about change in governance 

style but change of personnel. 

So, if this group wakes 

up to find that favours were not 

changing hands enough, or that 

old faces were still allowed, they 

could kick. 

The problem is that all these 

shades of change-agents are 

under one Mr Change. It is when 

each group begins to exercise 

the change it understands that 

internal democracy would begin 

a process of reconciliation, 

and this may cause change 

within change. 

Election is beyond change of 

personnel but change in philosophy, 

governance strategy, 

policy, and focus. It is when 

Buhari’s train takes off that Nigerians 

would find the kind of 

change-agents that are passengers. 

For now, Nigerians have 

proved that they do not care 

about systems but about what 

is there for them. 

When they do not get their 

expected dividends, they can 

do anything to disturb the train 

and cause confusion. Most of 

the investors in the change that 

came put in huge funds that 

were got in shady ways. They 

want returns fast, but is their 

target the target of Mr Change? 

This is yet to play out. When it 

does, Nigerians may hear the 

noise of breaking of bones. 

The APC has many change 

dreamers to contend with. They 

would need to sit down to draw 

the change path and targets, 

and decide how to pursue it. If 

this is not done, they would find 

that other change menus would 

be put on the dinning table by 

Satan and his followers. 

That may cause implosion as 

was in the PDP and Nigerians 

would be forced to ask: Are ye 

he who is to come, or shall we 

wait for another? What might 

save Nigeria may not be what 

the APC alone would be able to 

do, but how much the ordinary 

Nigerians put in as prayer, patience 

and sacrifice. After all, 

Nigeria actually belongs to the 

ordinary folks who cannot afford 

to fly away like Bode George 

would, in the event of disaster. 

Update: Tales from evil forests: 

The university student was 

abducted for ritual killing after 

boarding a bus in Port Harcourt 

on her way to a private university 

and ended up at a forest in 

Elele has opened up. 

She was in trauma and shock 

all of last week but she has talked 

about an ‘old man’ emerging 

to untie three of the girls in one 

room and escaping with them. 

Information is that they were 

found in a vehicle on the road to 

a part of Western Nigeria. 

Passers-by stopped and rescued 

them. If it be the will of 

God, this column will pass on 

the full account, should the police 

clear the rest of the matter to 

newsmen. Dear readers please 

apply vigilance at all times and 

endeavour to keep safe wherever 

you are! 

BUSINESS DICTIONARY SERIES 

Term of the Week: 

SWOT or PEST Analysis 

Situation analysis in which 

internal strengths and weaknesses 

of an organisation, and 

external opportunities and threats 

faced by it are closely examined to 

chart a strategy. SWOT stands for 

strengths, weaknesses, opportunities, 

and threats. See also PEST 

analysis. 

Usage Example 

They used the SWOT Analysis 

method of evaluating their start-up 

business and came to the conclusion 

that it was not a good idea. 

PEST Analysis 

A type of situation analysis in 

which political-legal (government 

stability, spending, taxation), economic 

(inflation, interest rates, 

unemployment), socio-cultural 

(demographics, education, income 

distribution), and technological 

(knowledge generation, conversion 

of discoveries into products, rates of 

obsolescence) factors are examined 

to chart an organisation’s longterm 

plans. (PEST: P – Pol-legal; 

E – Economic; S – Socio-cultural; 

T – Technological) 

Usage: 

Our pest analysis chart really 

showed us a lot of valuable information 

that we needed in our company 

to move forward.




PH business school to create world class managers 

- Aims to turn workers to business owners 


There is tension over salaries 

owed workers; if governments 

cannot pay, is it wrong to hand 

over salaries to incoming government 

It will be very unfortunate for 

any sitting government to do 

that. It will amount to an irresponsible 

act. If you don’t 

pay, and the next governor comes 

to clear it, how do you want workers 

to remember you? I appeal to all 

governors owing salaries to clear it. 

Yes, the governments are complaining 

of dwindling revenues and 

economic hardships but workers 

also witnessed the mega rallies 

and world class campaigns that 

took place this year. Those were not 

campaigns of poor people or cashstrapped 

governments. 

They competed with the best 

in the world in terms of cost and 

class. It will be difficult for workers 

to believe that their salaries should 

be withheld on account of poor 

economy. 

As an economist, it would be 

wrong for me not to admit that 

revenue has gone down or that oil 

prices have gone down by about 50 

percent, and so government revenues 

must have gone down, but 

what have governments down to 

reflect it? If they campaigned as if 

The three-year old Port 

Harcourt Business School 

established by the University 

of Port Harcourt 

(Nigeria’s entrepreneurial 

university) is focusing on creating a 

corps of world class managers that 

could hold their own in any country, 

the managers of the school have 

explained. 

This is said to be in tandem with 

the growing status of the Garden City 

as the hub of the oil industry, capital 

of the Gulf of Guinea, new manufacturing 

centre in oil and gas, the host of 

the fastest oil-and-gas free trade zone 

in the world, and an international 

melting pot for entrepreneurs and 

business moguls. 

A business school is indicated 

as a university-level institution that 

confers degrees in business administration 

or management. A business 

school teaches topics such as accounting, 

administration, strategy, 

economics, entrepreneurship (entrepreneury), 

finance, human resource 

management, information systems, 

logistics, marketing, organisational 

psychology, organisational behaviour, 

public relations, research methods 

and real estate, among others. 

The first business school in the 

world, ESCP Europe, was founded 

in Paris (France) in 1819, now with 

campuses in four other countries. 

The first in Africa was founded in 

Pretoria (South Africa) in 1949. The 

Lagos Business School (LBS) founded 

in 1991, is perhaps the most famous 

in Nigeria, though there are five others 

in Lagos alone and a total of 19 in 

Nigeria at the moment. 

Clifford O. Ofurum, a professor 

of accounting/finance and teacher 

of Entrepreneury who is also the director 

of the Port Harcourt Business 

School, in an exclusive interview 

with BusinessDay, disclosed that the 

University of Port Harcourt Business 

School (located off Abacha Road in 

the reserved area) in Port Harcourt 

strives to be different from the Lagos 

Business School and the others in 

Lagos. 

He explained that the Lagos Business 

School is designed principally 

for business owners with its executive 

(master) class while the Port Harcourt 

Business School targets caters for aspiring 

workers who want to transform 

to world class managers. Thus, the 

Lagos school is mostly patronised by 

CEOs while the Port Harcourt counterpart 

is attracted mostly by workers 

who want to climb faster to the top. 

He said the Port Harcourt strategy 

therefore is to expose those 

academic-minded student-workers 

to entrepreneurship education and 

spur them into the world of Small and 

Medium Enterprises (SMEs) and turn 

them into business owners. 

Ofurum, a highly sought-after entrepreneurial 

expert and teacher, said 

Port Harcourt was very ripe for one or 

more international standard business 

schools. The business school idea for 

Port Harcourt was conceived by Don 

Baridom, the professor of management 

and former vice chancellor of 

the University of Port Harcourt, but 

the present one, Joseph Ajienka, midwifed 

it by erecting the buildings and 

money was no problem, then, they 

must pay salaries as if the economy 

is not down. 

How do tell workers I represent 

to forfeit their salaries because 

economy is bad, when they saw 

the flamboyant and expensive 

campaigns? This would put many 

Labour leaders in trouble because 

their followers would not take none 

of that. This would force many of the 

leaders to succumb to pressure of 

strike from the members. Whether 

strike will get the salary from now 

to May 29, as an industrial relations 

expert, I do not know. 

I leave it to the various unions 

to decide whether to go on strike or 

not, according to their perceptions. 

What I mean by this is, it is their 

decision to decide if the governor 

they are dealing with has credibility, 

then they can try strike because he 

may fear for his image and try to 

pay, but if they were dealing with 

a hard man, no matter how you go 

on strike from now till May 29, he 

may not budge. All I know is that a 

labourer deserves his wages. 

I think the various unions should 

make salary a priority from now till 

May 29, in fact abandon all other 

union matters. The FG can decide to 

raise a special FAAC to clear it, else 

the incoming government would 

begin to appeal to workers to bear 

Uniport dons pioneering study of entrepreneursy in the Garden City 

setting up the structure proper. 

It started with some 36 students 

for both Masters and Post Graduate 

Diploma (PGD) students, but now 

has over 250 students in both categories. 

It renders academic, community 

and consultancy services because 

the university system began with 

teaching, then research, and now 

community service, he explained. 

Ofurum said: “If you need business 

support, then think of the Port 

Business School. It is ideal for workers 

in this region. We groom workers to 

run their SMEs, share ideas, and go 

back home to experiment them.” He 

said some couples are studying there, 

having found the rare benefits. 

The expert agreed that there was 

an attitude problem to business in 

tive programme is not a good ground 

in this place but research is attractive; 

they want the academic side.” 

On the future of the Port Harcourt 

Business School, the director said the 

industrial sector was about to fly higher 

in the region, leveraging on oil and 

gas. “Companies here have enough 

potential to grow due to new zeal for 

enterprise and hunger for diversity. 

One day, the Port Harcourt Business 

School will do segmentation between 

entrepreneurs and academics. 

The view is that Port Harcourt 

Business School has huge potentials 

to grow because it is the only one between 

Lagos and Port Harcourt, and 

between Abuja and Port Harcourt, 

except ESUT Business School. Some 

say most of the students that have 

been patronising the Enugu Business 

School were from Port Harcourt. Ofurum 

said: “We control the share of the 

market. We may sound quiet but the 

population is growing, making us to 

raise entry points.” 

There are two business schools 

in Warri (Delta State), one in Akure 

and Ilorin, and a micro, small and 

medium enterprise (MSME) business 

school in nearby Owerri, Imo State 

capital. Yet, the Port Harcourt Business 

School seems to take over the air. 

The expert believes that Nigeria needs 

the impact these schools would make 

in grooming real business people, 

entrepreneurs and investors of all 

categories. 

The professor warned that, “We 

must understand that this country 

needs millions of SMEs to grow instead 

of needing few corporations to 

employ millions.” 

‘Why workers will not accept handover of salaries!’ 

Chika Onuegbu, chairman of the Rivers State wing of the Trade Union Congress of Nigeria (TUC), is regarded as the powerhouse of Labour in Rivers State and a strong 

force in Nigeria’s labour movement. The industrial relations expert also spoke with IGNATIUS CHUKWU explaining why Rivers State must repeal the Pensions Law, now. 

Chika onuegbu, TUC boss 

certain parts of the country including 

Port Harcourt, especially on how to 

treat capital. He however said: “We 

emphasise the need to start with 

any capital available, even N10,000 

to N100,000. This region is not full 

of business consciousness; there is a 

hunger to land big job and grow from 

there, but we are in the task of changing 

the orientation of the people of 

this region to know that business is 

the only way to make people or the 

poor to grow big.” 

Ofurum said the University of Port 

Harcourt did what he called ‘conception 

mapping’ and found out that the 

students in the region want to grow 

on the job. “We are making them to 

imbibe SME interest, to do business 

by the side. For this reason, the execuwith 

them. This would annoy the 

workers and it would not augur well 

for the next government, to start off 

with labour anger. 

I advise Goodluck Jonathan 

and Muhammadu Buhari to act as 

statesmen and put heads together 

and solve this matter. It is not good 

for any of them. If FG pays and states 

do not pay, pressure will move from 

down to up. It calls for urgent action 

between Jonathan and Buhari to see 

how they can calm the crisis. 

What is Labour proposing as 

solution to increasing wages, to 

sack workers, cut salaries 

Let there be an engagement 

between Labour and Government 

at all levels. There may be areas 

governments have not looked into, 

some cost-cutting may be needed, 

instead of sack of workers. We 

workers believe that corruption and 

waste take away 40 per cent of budgets. 

You do not start government 

by cutting salaries and sacking; 

else they run into labour crisis and 

would be distracted. 

There is need to engage the workers 

because they know where money 

is being wasted. I told you that 

we did it in Rivers State when the 

government wanted to sack some 

directors. We met the governor and 

revealed things about people earning 

wrong scales. On this score, we 

reached a deal with him, thus; if we 

could prove it, government would 

use the savings to reengage the 

directors. It worked out. 

This is what the governments can 

do. The revenue loss is huge and 

action is needed now. The straight 

jacket method of sacking workers 

or cutting salaries is lazy. There are 

options. 

Final word here is, engage the 

workers. They will show you the 

solution. 

Why are you moving with force 

on the quest for amendment of 

the Rivers State Pension Law, 

can’t it be done by the incoming 

parliament 

I think the issue here is, if it can 

be done now, so why wait? I have 

had informal discussions with some 

of the lawmakers, and we agreed to 

wait for the elections to be through. 

So, the elections are over and we 

want the law repealed and amended 

to meet current realities. 

We promised to bring it in the 

form of a bill to save time, so they 

can just add or adjust here and 

there and pass it. We are doing this 

because the workers are losing as 

it is. Right now, the subsisting pension 

law which is the 2014 Act has 

been repealed which had contribution 

rate of 7.5 percent for both the 

employer and employee, making 

15 percent. 

Now that the law has been 

changed, we think the government 

and Labour should act to harmonise 

it (2014 Pensions Act) to the present 

rate if 10 per cent by employer and 

8 per cent by employee, making a 

minimum of 18 per cent.


Harvard 

Business 

Review 

Global Business Perspectives 

CONNECTING THE WORLD ONE BUSINESS AT A TIME 

BUSINESS DAY 

27 

Locked in: The high cost of cheap oil 

DEEPAK GOPINATH 

The view that the collapse in 

oil prices is a net positive 

for the world economy and 

global growth is a popular 

one. Sure, exporters such 

Russia and Venezuela suffer, this view 

holds, but that’s outweighed by the increased 

spending by governments and 

consumers with more cash to burn - no 

small thing when the global economy is 

suffering from a crisis in demand. 

Meanwhile environmentalists take 

comfort in the shelving of billions of 

dollars’ worth of dirty oil and gas projects 

by cash-strapped energy companies. 

More important, smaller exploration 

and production budgets will help 

the world meet the international goal of 

limiting the global-mean-temperature 

rise to 2 degrees Celsius above preindustrial 

levels by keeping more fossil 

fuels in the ground. 

However, this Pollyanna narrative 

surrounding the benign impact of low 

energy costs overlooks a subtle and 

powerful process known as “lock-in.” 

Far from ushering in a post-fossil-fuel 

world, cheaper oil will only lock us 

into energy-supply, transportation, industrial 

and agricultural systems that 

depend on continued use of hydrocarbons 

while discouraging attempts to 

develop alternatives. 

In a 2011 report, the International 

Energy Agency issued a warning: Fourfifths 

of the total energy-related CO2 

emissions permissible by 2035 if we 

are to limit global warming to 2 degrees 

Celsius already are locked in by existing 

capital stock. High-carbon infrastructure 

built today, including power 

plants, pipelines, factories and inefficient 

buildings, roads and transport vehicles, 

will last and pollute for decades 

to come. According to the I.E.A., as of 

2011 the world had only five years to retool 

its hydrocarbon-based infrastructure 

to avoid missing emission targets. 

The available time is running out, and 

the task has been complicated by the 

collapse in oil, coal and natural-gas 

prices. 

The concept of lock-in was devised 

by economists in the 1990s to describe 

how technological systems tend to follow 

specific paths that are difficult and 

costly to escape, thanks to scale and 

learning effects, user-friendliness and 

the support of governments and private 

interest groups. As a result such technologies 

remain in vogue even after the 

development of superior substitutes. 

This is why we still type on QWERTY 

keyboards. It also explains why, despite 

knowing better and having alternatives, 

we continue to rely on hydrocarbonintensive 

technologies developed in 

the early 20th century, when fossil fuels 

were abundant and the long-term consequences 

of greenhouse-gas emissions 

were poorly understood. 

Here’s how lock-in works in advanced 

economies: The American 

agricultural system is extremely good 

at producing vast quantities of corn, 

wheat, soybeans and meat at low 

prices. However, the industry is heavily 

dependent on oil and gas, and extremely 

energy-inefficient. Agriculture 

accounts for 20% of America’s fossil-fuel 

use, counting the oil and gas used in 

making fertilizers and pesticides, running 

farm machinery and transporting 

food across the country, but almost a 

third of its greenhouse-gas emissions. 

Moving away from the existing, 

fossil-fuel-based industrial agricultural 

system to one that relies directly 

on sunlight to produce goods would 

be difficult and expensive, however. 

Industry resistance and political opposition 

would run high, especially to 

any rise in prices. As a result the United 

States is locked into a carbon-intensive 

agricultural system. Cheaper fossil fuel 

only tightens those chains. 

Lower energy prices lock society 

into a fossil-fuel future in other ways. In 

automobile-dependent countries public 

transportation continues to get short 

shrift in government budgets. Boeing 

and Airbus are concerned that lower 

fuel prices will reduce airlines’ demand 

for their energy-efficient jets: Fuel is 

an airline’s single largest expense and, 

with fuel prices down, airlines may prefer 

to keep aging planes in their fleets 

for longer. Other types of companies 

might similarly delay moving to energyefficient 

designs. 

In addition, lower oil prices stimulate 

demand for fossil-fueled technologies. 

U.S. car sales have rebounded, led 

by purchases of gas-guzzling SUVs. If 

those vehicles last an average of seven 

years before they are scrapped, that will 

lock in higher fuel consumption and 

emissions for that period, regardless of 

oil prices. An increase in the number of 

cars creates demand for new and better 

roads and bridges, which in turn 

reduce the effective cost of driving and 

purchasing personal vehicles, further 

fueling demand and greenhouse-gas 

emissions in a vicious cycle. 

Consider how these dynamics likely 

will play out in fast-growing economies 

such as those of China and India. 

Countries outside the Organization for 

Economic Cooperation and Development 

will account for 90% of population 

growth, 70% of the increase in 

economic output and 90% of energydemand 

growth from 2010 to 2035, 

according to the International Energy 

Agency. Choices made today regarding 

energy-supply infrastructure and manufacturing, 

building, agricultural and 

transportation technologies determine 

what kind of world our children and 

grandchildren will inherit. Indeed, one 

of the few ways developing countries 

can avoid hydrocarbon lock-in is to skip 

the hydrocarbon stage in their development 

and move directly to alternatives. 

Unfortunately, emerging markets 

are busily locking themselves into hydrocarbon-intensive 

technologies and 

infrastructure. Indian megacities such 

as New Delhi are ringed by sprawling 

suburbs and satellite cities, which 

encourage automobile ownership in 

the absence of public transportation. 

In New Delhi alone 1,400 vehicles are 

added to the roads every day. That in 

turn creates demand for more roads, 

which then encourage more car purchases. 

Instead of developing comprehensive 

policies to curb the use of 

automobiles, the Indian government 

has sought to make them cheaper and 

easier to own. 

Beijing and other major Chinese 

cities suffer from the same malaise. 

A 2009 World Bank study found that 

extensive road investments around 

Beijing had encouraged and locked 

in urban sprawl and decentralization, 

making subsequent investments in 

public transit less effective in reducing 

vehicle miles, gasoline use and carbondioxide 

emissions. 

Both countries continue to make 

poor energy-supply choices. India is 

taking advantage of abundant and 

cheap coal to embark on a plan to double 

its coal-fired electricity generation, 

which currently accounts for 60% of its 

total, by 2022 - this despite the fact that 

India’s thermal power plants operate at 

some of the lowest efficiencies in the 

world. China too remains heavily dependent 

on coal, despite government 

efforts to increase the use of natural 

gas. With few exceptions, these patterns 

of hydrocarbon-intensive development 

are being replicated throughout the developing 

world. 

How can we neutralize the reinforcing 

effects that cheap oil has on hydrocarbon 

lock-in? One partial solution 

is to go beyond eliminating fossil-fuel 

subsidies, which many countries already 

have done, and impose significant 

consumption taxes as well. These 

would mitigate the negative impact of 

low fossil-fuel costs and encourage the 

exploration of alternatives to hydrocarbon-based 

technologies. 

These changes will be expensive 

and politically unpopular, but they are 

necessary. The costs of inaction are unimaginable. 

(Deepak Gopinath is a New Delhibased 

economic analyst and writer.) 

2015 Harvard Business School Publishing Corp. Distributed by The New York Times Syndicate

28 



BUSINESS DAY 

29 

Legal 

BUSINESS 

• Law & Business 

• Research 

• Intelligence 

• Practice Management 

• Industry Report 

• Partnerships 

30 

BARREPORT 

32 

SBL COUNTDOWN 

35 BD COMMERCIAL LAW REPORT 

LAW WEEK: NBA Lagos branch gets backing 

of Lagos Chief Judge & others 

31 PHOTONEWS 

Building Competitive Advantage In Fast 

Moving Markets 

Meet the speakers… 

33 

INDUSTRY FILE 

“An enabling environment 

with probusiness 

regulators 

will provide a 

competitive advantage 

in attracting 

investment 

flows...” 

Right to Property – What’s yours is 

yours 

MAIL TO THE EDITOR: 

theodora@businessdayonline.com

30 BUSINESS DAY Thursday 21 May 2015 

BAR REPORT 

Indian Nigerian Business Forum (INBF) in view... 

LegalBusiness 

LAW WEEK: NBA Lagos branch gets backing of Lagos Chief Judge & others 

The Chief Judge of Lagos State, 

Justice Olufunmilayo Atilade 

has assured the Nigerian Bar 

Association (NBA), Lagos 

Branch of her full support 

in hosting a successful Law Week for 

its members. The annual high-profile 

event is scheduled for 24th to 26th June, 

2015 at the MUSON Centre and City 

Hall, Lagos. 

Meanwhile, former NBA President, 

Chief Wole Olanipekun (SAN) has 

also pledged to support the chapter in 

ensuring that the Law Week is a huge 

success, even as he made an immediate 

cheque donation to cushion teething logistical 

challenges usually encountered 

in hosting such event while promising 

to do more. 

Justice Atilade made the pledge while 

receiving a high-powered joint delegation 

of NBA Lagos Executive Committee 

and the Law Week Committee members 

in her chambers at Ikeja. The State Chief 

Judge promised that the judiciary would 

play an active role in the three-day 

programme, adding: “We look forward 

to the Law Week. I assure you of our 

participation as usual, especially at the 

Law Dinner. We would make sure judges 

attend.” 

Justice Atilade, who received the delegation 

alongside Justice Abdulfattah 

Lawal, Magistrate Emmanuel Ogundare 

(Chief Registrar) and Magistrate Demi 

Ajayi (DCR, Legal) among other senior 

officers of the State judiciary, also promised 

the delegation that the judiciary 

would take active part in the Bar/Bench 

Forum to be held during the Law Week. 

NBA Lagos Branch Chairman, Mr. 

Alex Muoka who led the delegation had 

while speaking earlier, informed the Justice 

Atilade that the theme for this year’s 

Law Week is “The Future of the Legal 

Profession: Protection from Exploitation.” 

He noted that the special sessions 

and workshops would hold at MUSON 

Centre while a 

high-profile Bar Dinner in honour 

of the outgoing Lagos State Governor 

Babatunde Raji Fashola (SAN) would 

hold at The City Hall, Lagos. The week 

will also witness Variety Night and 

prison visits. 

Muoka noted that though the Bar/ 

Bench Forum was an initiative of the 

branch, “We need substantial buy-in 

from the judiciary to make it a success. 

We are therefore inviting the judiciary 

towards having a robust Bar/Bench 

Forum that will discuss issues on the 

front-burner between the Bar and 

Bench, though we still need the regular 

Bar/Bench Forum.” 

The NBA Lagos Branch chairman also 

briefed the Chief Judge on the Stamp 

Scheme initiated by the NBA national 

leadership as well as other pressing 

needs of the branch, even as the Chief 

Judge pledged to “look into” the issues. 

Olanipekun who is one of the pillars 

of the branch, having contributed 

extensively in the upliftment of young 

lawyers, traced the genesis of the resurrection 

of the NBA after the 1996 

crisis, noting that all lawyers must join 

hands to build the profession. According 

to him, “Law is the profession of 

the universe now. We are who we are 

because it has pleased God to make us 

members of the profession. The Premier 

Bar has remained at the fore-front in 

driving initiatives at the Bar. This must 

be sustained.” 

The former NBA boss said he felt 

“honoured” by the courtesy visit and 

commended Muoka on his sterling 

leadership qualities. Underscoring the 

pressing need for a befitting Bar Centre 

for the branch, the foremost lawyer also 

noted the challenges of successfully 

hosting a Law Week programme of this 

magnitude. He commended the delegation 

also comprising Law Week Chairman, 

Mrs. Tolani Edu-Adeola; Branch 

Secretary, Mr. Adebola Lema and Law 

Week Director of Publicity, Mr. Emeka 

Nwadioke for their efforts. 

Lagos State Chief Judge, Justice Olufunmilayo Atilade welcoming Nigerian Bar Association 

(NBA), Lagos Branch Chairman, Mr. Alex Muoka to her office when the branch executives 

and 2015 Law Week Committee members paid the chief judge a courtesy visit recently 

FRONT ROW: Lagos State Chief Judge, Justice Olufunmilayo Atilade (middle) with Nigerian 

Bar Association (NBA), Lagos Branch Chairman, Mr. Alex Muoka (left) and Justice 

Abdulfattah Lawal of the Lagos State High Court alongside top judicial officers and branch 

executives/2015 Law Week Committee members when the later paid the chief judge a courtesy 

visit recently 

Lagos State Chief Judge, Justice Olufunmilayo 

Atilade (middle) with Nigerian Bar 

Association (NBA), Lagos Branch Chairman, 

Mr. Alex Muoka (left) and Justice 

Abdulfattah Lawal of the Lagos State High 

Court 

Nigerian Bar Association (NBA), Lagos Branch 

Chairman, Mr. Alex Muoka in a warm handshake 

with the Chief Registrar of Lagos State 

High Court, Magistrate Emmanuel Ogundare 

Ahead of its Indian Nigerian Business Forum (INBF), Osaro Eghobamien, SAN, managing partner, Perschstone & Graeys leads a team to Afe Babalola University, Ado Ekiti, on a courtesy visit 

to Aare Afe Babalola, in view of the use of ICT to improve tertiary learning. In this photo, are top management staff of the University. The Afe Babalola University is a key partner of the Indian 

Summit which holds in September.


PHOTO NEWS 

BUSINESS DAY 31 

LegalBusiness 

Building Competitive Advantage In Fast Moving Markets 

As markets mature and competition 

increases, businesses are faced with 

some tough decisions: to continue 

as they are – with increasing price 

pressure and an inevitable fall in 

profits – or launch into new areas of business. 

If they are bold enough to do the latter, how 

do they know which new markets to enter 

and what that requires? 

This was the subject of the discourse at the IE 

Business School and Detail Commercial Solicitors 

(DCS) workshop in Lagos. 

At the programme themed ‘BUILDING COM- 

PETITIVE ADVANTAGE IN FAST MOVING MARKETS’, 

Facilitators and participants investigated the 

nature of Competitive Advantage and the 

extent to which a business can create unique 

and sustainable advantages over competitors. 

Among the facilitators were Steve Blundell, 

Managing Director of Redstone Consultants 

and Moray Mclaren Associate Professor, IE 

Business School. IE Business School was 

ranked 3RD best business school in Europe by 

the Financial Times in 2014. 

L-R: Moray Mclaren, director, Redstone; Eniola Harrison, representative IE Business School, 

Nigeria; Stephen Blundell, director, Redstone; Dolapo Kukoyi, partner, Detail Commercial Solicitors, 

and Ayuli Jemide, lead partner, a one-day workshop organised by Detail Commercial 

Eno Ukpe, manager, GTBank Plc (l) with Olujide 

Kuti, partner, Koya & Kuti Solicitors. Solicitors in conjunction with I.E. Business School in Lagos yesterday. Pic by Francis Abiagam. 

SEE PHOTOS FROM THE WORKSHOP 

Chika Ochonogor, associate, Detail Commercial Solicitors (l) 

with Ayodele Agbedana, senior associate, Liwaters Solocitors. 

Michael Awanayah, GM, business transformation, Lafarge 

WAPCO Operations (l) with Mobola Akinkugbe of Auctus 

Legal. 

Toun Olumide, solicitor, Detail Commercial Solicitors (l) with 

Olusakin Labeodan, ED, sales & marketing, Leadway Pensure. 

Olufemi Olusogbon, IT manager, Mayowa Olugonwa, solicitor, 

Detail Commercial Solicitors (l) with Tunde Layeni, director, 

Templetons Realty. 

Tony Makoko of infrastructure and power group, Zenith Bank 

plc (l) with Abiodun Oyeladun, associate, Detail Commercial 

Solicitors. 

Mayowa Olugunwa, solicitor (l) with Tutu Sanusi, associate, 

both of Detail Commercial Solicitors. 

L-R: Sanusio Kayode; Yeni Alabi, both member, power & energy, 

local corporate, Ecobank, and Frank Abang, COO, The 

Republic Media Limited. 

Mathew Oladepo, head, direct marketing, International Energy 

Insurance (l) with Chinanu Osuji, solicitor, Detail Commercial 

Solicitors. 

Munachi Oleoye, MD, MCO Real Estate (l) with Rita Okoye, 

CEO, Majestically Rare Limited.

32 

BUSINESS DAY 

INDUSTRY FILE 

SBL COUNTDOWN 

Meet the speakers… 


LegalBusiness 

“An enabling environment 

competitive advantage in at 

The Council of the Nigerian Bar Association Section on Business Law (NBA-SBL) and the 2015 

Conference Planning Committee has unveiled the speakers and panelists for the 9th Annual Business 

Law Conference, which takes place from Sunday June 7-9, 2015 at the Expo Centre of the Eko Hotel 

and Suites in Victoria Island, Lagos. 

As we join the rest of the business law community in its countdown to the conference, you will find 

here weekly highlights of the conference, its speakers and panelists. 

This year, the Annual Business Law Conference will feature an array of dynamic and erudite speakers 

addressing topical issues including the impact of global trends on the Nigerian economy, Nigeria’s 

ease of doing business and business development strategies for law firms. 

Scheduled to speak at the PREMIUM PLENARY SESSION is the Chief economist of PwC’s UK 

firm, JOHN HAWKSWORTH. 

Based in London, Hawksworth leads 

the macroeconomic research and 

thought leadership programme covering 

not just the UK but also the global 

economy more generally. He has over 

ON CHINA’S GROWING INVESTMENT 

PORTFOLIO IN AFRICA 

Much of this investment has been driven by 

China’s ravenous appetite for natural resources, 

including oil and gas, metals and other minerals. It 

All is now set for the 9th Annual Business Law Conference of the 

SBL). The conference, which seeks to engage industry regulators 

environment, will hold from June 7-9, 2015, at the Eko Hotel & 

Q: Regulators as Catalysts for 

Economic Growth…” What 

informed the theme for this 

year’s conference? 

By the nature of the work we 

do, we have observed over the last few years, 

(especially after the international financial 

crisis), a growing and sustained international 

investment interest in emerging African 

economies. We also observed that most of 

the long term capital flows have gone into 

economies with large markets but markets 

which have enabling statutory and regulatory 

environments. We believe that an enabling 

regulatory environment, where our regulators 

are fair, certain, effective and pro-business, 

will provide a competitive advantage in attracting 

investment flows. So, we decided 

that at our conference this year we would 

engage our Regulators as it concerns ‘ease 

of doing business’ in Nigeria. The objective 

is to shape government policies and enhance 

business processes in Nigeria. We believe our 

Annual Business Law conference is a good 

platform to focus on these discussions. It is 

fundamental for our economic well being as 

a nation that Nigeria is a preferred investment 

destination. 

25 years of experience as an economics consultant 

in the UK and overseas, working with a wide range 

of blue chip companies and governments, as well 

as international institutions such as the World Bank 

and the European Commission. He is also a regular 

commentator on economic issues in the UK media. 

In this edition, Hawksworth who will be speaking 

on the ‘Long-Term Global Economic Trends And 

Implications For Nigeria’ shares with us a sneakpeak 

of his session at the conference. 

HE SAID: 

“I will take a look at some of the megatrends 

that will influence the development of the global 

economy over the next few decades, including demographics, 

natural resource scarcity, technological 

change and the shift in economic power to China, 

India and other leading emerging economies. I will 

then discuss the many opportunities this creates for 

Nigeria, but also the challenges to be overcome to 

realise this great potential. 

HE ALSO SPEAKS ABOUT PwC’s WORLD 

IN 2050 REPORT AND WHAT IT PROJECTS 

FOR NIGERIA? 

Our projections suggest that Nigeria could break 

into the top 10 economies in the world, ranked by 

GDP, by 2050 if it can follow appropriate growthfriendly 

policies. But fulfilling this potential will 

not be automatic, it requires sustained investments 

in infrastructure, education and industrial development, 

as well as enhanced political stability and rule 

of law (as discussed further below). 

is also aimed at getting access for Chinese goods to 

fast-growing African consumer markets, not least in 

Nigeria. In return, China has made valuable investments 

in areas like transport infrastructure. I think 

this investment will continue, but it needs to be on 

terms that support development of more diversified 

domestic economies in Nigeria and other African 

countries. The nature of the Chinese investment 

may also change as its economy shifts away from 

a focus on low-cost manufactured exports towards 

higher valued products and domestic-led consumer 

growth that may be less resource-intensive. 

ON DROPPING CRUDE OIL PRICES AND 

WHAT NIGERIA SHOULD DO 

In the short term, this clearly poses some challenges 

for Nigeria, but there is also an opportunity 

if it provides a stimulus to take faster action to diversify 

Nigeria’s exports and government revenues 

away from their current heavy reliance on oil and 

gas. This would make the economy less sensitive 

to global commodity price shocks and could create 

more skilled jobs in areas like manufacturing and 

business and financial services. This would make 

growth more stable and sustainable in the long run. 

He also speaks on significant demographic dividends 

for Nigeria, increased investments, and other 

critical issues about this economy. To hear more 

and participate in the discourse, make it a date to 

attend the 9th Annual Business Law Conference in 

Lagos, May 7-9, 2015 

How does the chosen theme for each year 

drive participation? Are your participants 

largely the same every year or would you 

say the audience is driven either by the 

theme, the sub-topics or the selected panel 

at each conference? 

It is always important that our theme is contemporary, 

relevant, educative and topical to 

drive the right kind of feet into the conference. 

Participants, who cut across the private and 

public sectors, and international investors, 

also pay attention to the specific topics and 

to the speakers chosen to discuss these topics. 

We also have a large primary constituency of 

our members who make it a duty to be part 

of the conference each year. Participation is 

driven by all of these factors. 

“ With dwindling 

and unstable oil 

prices the diversification 

of our economy 

has become 

even more critical. 

We must do everything 

possible to 

attract new long 

term money into 

other areas of our 

economy...” 

If yes, who is your target audience for 

the 2015 Annual Business Law Conference 

(ABLC)? 

Our conferences are structured to bring 

value to a large target audience, the Public 

Sector, the Private Sector, international investment 

community, the judiciary and those 

in the informal sector of the economy. There’s 

a large offering for a wide range of participants. 

This year we will focus on regulators 

and how their work and the rules they set can 

enhance our economic growth. 

The ABLC this year has only nine (9) 

sessions, albeit fully packed and cutting 

across sectors. Is there a particular reason


INDUSTRY FILE 

BUSINESS DAY 

LegalBusiness 

with pro-business regulators will provide a 

tracting investment flows...” SBL Chair, Asue Ighodalo 

33 

Nigerian Bar Association Section on Business Law (NBAon 

key regulatory issues that affect Nigeria’s business 

Suites, Victoria Island, Lagos. 

would have some very useful insights to 

share at the conference. 

for this departure from the usual practice 

of several committee breakout sessions at 

the conferences? 

We thought we should tweak our format 

a bit to emphasise our focus on our theme 

and the specific discussion topics. More than 

anything else, this should drive home the 

importance of the theme and topics we have 

chosen this year. With dwindling and unstable 

oil prices the diversification of our economy 

has become even more critical. We must do 

everything possible to attract new long term 

money into other areas of our economy. To 

do this we need to heighten the awareness 

that we must create an enabling and attractive 

environment. 

In the course of the year, each of our 20 

committees focus on sector specific events 

in their various areas of commercial law 

practice. The committees will organise many 

more events this year thereby affording us the 

opportunity to focus primarily on the conference 

theme and the topics around it. 

According to the programme unveiled by 

the 2015 Conference Planning Committee, 

the 8th session of the three-day conference 

speaks of Power Privatization “Learning” 

Curves. Is this a training programme 

designed to be different from the other 

sessions? 

During this session, Advisers who worked 

on the implementation of our power privatization 

will share their experiences and proffer 

views on how to ensure we get the process 

right in the long term. It is fundamental to 

the growth of our economy that the reforms 

in our power sector succeed. 

At the session, which will be chaired by 

Engr. Joseph Makoju, Former Special Adviser 

to the President on Power and Honorary Adviser 

to the CEO, Dangote Group; the guest 

speaker, Nina Bowyer, a Partner at Herbert 

Smith Freehills (an international law firm), 

will speak of her experiences handling energy, 

mining and infrastructure projects across Africa 

- particularly in West Africa. Nina, who 

is a frequent visitor to Nigeria, has worked on 

over 30 transactions in the last 10 years. She 

How does the SBL promote the delivery 

of qualitative business services 

to the public (directly or indirectly)? 

Directly, we engage in the effective 

training and exposure of our members 

to enhance their capacity and skills. The 

idea is that any of our members can, 

in their areas of specialization, match, 

actually surpass, the quality of service 

provided in other major business centers 

of the world. Indirectly, we seek to influence, 

the enthronement of best practices, 

the advancement of positive business 

policies, law making to enhance business 

development. This we do through collaborations 

and continuous engagement 

with government, law makers, regulators, 

policy makers, professional organisations 

and the business community. 

Do the SBL conferences garner CLE 

points for members of the Section? 

Yes it does. Our parent body, the Nigerian 

Bar Association (NBA) sees to it 

that every lawyer who attends not just 

the SBL conferences but also those of 

the other sections of the NBA, get CLE 

credits for participating. 

Do deliberations at these conferences 

actually drive policy changes or lead 

to the enactment of legislations that 

affect the development of commerce 

and business in Nigeria? 

I would like to think so. We will deliberate 

on issues in various areas of the 

law, business and our socio- economy. 

Some of these issues we identify as 

‘hot topics’ or burning issues in national 

development; we bring together 

legal practitioners, law makers, business 

people, government officials, judges and 

academics; we engage all of them; facilitating 

discussions around these topical 

issues and exchanging ideas in an open 

forum. We know that many of these ideas 

are discussed at both federal and state 

level and will influence law making. 

What do you hope to see from the 

sort of interactions at this conference? 

We have put together some of the best 

legal, policy formulation, regulatory, financial, 

business and commercial minds 

to facilitate our discussions at this year’s 

conference. Looking through our list of 

speakers and panellist, our sessions at 

the conference will be engaging, rich, 

diverse, deep, informative and farreaching, 

x-raying the matters and issues 

at hand in great detail. 

On a final note, speaking as a leader 

of the bar and the business law community, 

what direction do you think 

the discourse will take in terms of 

setting an agenda for the incoming 

administration? 

The incoming administration will set 

its own agenda and run by it. Hopefully, 

the output from our conference will help 

in some way to fine tune parts of their 

agenda especially around the creation 

of an enabling business and investment 

environment.


34 

BUSINESS DAY 

PERSPECTIVE with Tolulope Aderemi 

LegalBusiness 

The Petroleum Host Community Fund: A disincentive? 

Recently, the National Assembly resumed its debate 

on the controversial Petroleum Industry Bill (popularly 

referred to as the PIB). In its clause-by-clause review, 

the Lower Chamber (“The House”) reconsidered the 

percentage share allocated to the ‘host community’ from 

10% now to 7.5% levy on oil & gas profit. 

At Section 116 to 118 of the PIB, the Host Community 

Fund (“HCF”) is expected to cater for the mitigation of 

all negative environmental impacts on host communities 

arising from exploratory activities of oil companies. 

This invariably is seeking to create an independent fund 

separate from whatever interventionist funds already 

in existence; a salient point which has been further 

considered below. 

With a few more weeks to left for the 7th Assembly, 

it is unlikely that this bill will become law. If that is the 

case, it is therefore important that the 8th Assembly set 

out to quickly appreciate the philosophy underpinning 

many of the provisions of the bill (the Host Community 

Fund being one) and their consequential effect(s) on 

the industry as a whole, if it ever becomes law in its 

present form. 

The Ownership Theory: 

Today (in Nigeria), it does appear that there is an 

advocacy that the ownership of crude oil should be 

treated in the same way as it is in the United States of 

America. In the United States, rights to crude oil may be 

owned by private individuals, corporations, or by local, 

state, or federal government. That is not the case under 

the Nigerian Statutes. Section 44(3) of the Constitution 

of Federal Republic of Nigeria (as amended) vests the 

entire ownership and control of all minerals, mineral 

oils and natural gas in, under or upon any land in Nigeria 

or in, under or upon the territorial waters and the 

Exclusive Economic Zone in the Federal Government. 

In Malaysia, unlike Nigeria, the Petroliam Nasional 

Berhad (Petronas), holds exclusive ownership rights to 

all oil and gas exploration and production projects, and 

is only subject to the Prime Minister’s control. In Ghana, 

Angola and like Nigeria, the ownership and control of 

oil & gas is vested in the government. 

Moreover, Sections 44(3) of the 1999 Constitution as 

well as Section 1 of the Petroleum Act, Cap C10 Laws 

of the Federation of Nigeria, 2004 (“The Act”) vests the 

entire ownership and control of all petroleum in, under 

or upon any lands to which Petroleum Act applies, in the 

State. The Act further extends its application to all land 

(including land covered by water) which is in Nigeria; 

is under the territorial waters of Nigeria; forms part of 

the continental shelf. 

Furthermore, the use of the word “State” is defined 

by the Black’s Law Dictionary 6th Edition, page 1407 

defines a State as either to body politic of a nation (e.g. 

United State). Similarly, the Interpretation Section of 

the Petroleum Act has defined the word State to mean 

‘State, except in Section 1 of the Act means a state of the 

Federation’. Apart from Section 1 of the Act, the word 

‘State’ was also used six times within the Act either as a 

verb or reference to the constituent part of the Federation. 

It is therefore no doubt that the reference to a State 

in both Section 44 (3) of the CFRN and 1 of the Petroleum 

Act vests the ownership and control of petroleum in the 

Federal Government. 

The above notwithstanding, one must not trivialize 

the environmental damage oil & gas operation may 

have caused the Littoral region. Again, it must be argued 

that it was for that reason that each Littoral State gets 

additional 13% derivation over and above other nonproducing 

States, individual GMOU’s entered with the 

host communities etc. To consider AT ALL the Host 

Community Fund, the 8th Assembly must seek answers 

to the following questions: 

Has it been established that the 13% Derivation allocated 

to each Governor of a producing State is inadequate 

for economic and social infrastructure? 

Have the Governor’s dutifully accounted for the 

disbursement of the Funds to specific infrastructural 

projects? 

Does the government have an infrastructural development 

monitoring Group (such as the Good Governance 

Tour) to monitor projects in the States benefitting from 

the 13% Derivation? 

Has it been proven that both the allocation of 13% as 

well as the individual GMOU’s are grossly inadequate 

to compensate for the damage caused by exploration 

and production activities? 

Will the Host Community Funds not prevent accountability 

of each State as regards the way and manner its 

13% Derivation had been expended? 

How will the HCF be administered and are there 

check-mechanisms to monitor performance of development 

of social and economic infrastructure? 

The above in no way undermines the rights to good 

life of the people living in Littoral States, however, the 

Buhari-led administration/8th Assembly must also 

guide itself properly to ensure that it is not misled to 

encouraging corruption, recklessness and wasteful 

spending; it, having not been satisfied that the provisions 

already made (for the compensation for these 

environmental damage) have proven inadequate such 

as would warrant the establishment of the HCF. 

Digital Oilfield in Nigeria 

The process of oil exploration by both Nigerian oil 

companies and International Oil Companies is saddled 

with a lot of challenges both infrastructural and otherwise. 

Before now, traditionally, accessing information 

from pumps, lifts, wellheads, and other equipment’s 

used in oil exploration was typically a labor-intensive 

process; workers were required to drive from platform 

to platform and physically gather data with one person 

stationed at each platform to monitor performance. 

Such a procedure not only puts workers at risk in the 

line of duty, it is also time-consuming, and data obtained 

thereof is usually marred with potential human error. 

Hence, the need for a better and more effective means 

of ascertaining the level of commercial viability in assets; 

less risk and high productivity becomes necessary. 

The term “Digital Oilfield” has been used to describe 

a wide variety of activities. The term simply introduces 

the various uses of advanced software and data analysis 

techniques to improve the profitability of oil & gas 

production operations. In a more practical definition, 

a Digital Oilfield is defined by how a petroleum business 

deploys its technology, people and processes to 

enhance efficiency. The purpose of the digital oilfield is 

to maximize oilfield recovery, eliminate non-productive 

time, and increase profitability through the design and 

deployment of integrated workflows. It combines business 

process management with advanced information 

technology and engineering expertise to streamline 

and, in many cases, automate the execution of tasks performed 

by oil companies in exploration of oil. Through 

a digital oilfield, a company optimizes hydrocarbon 

production, improves operational safety, protects the 

environment, maximize and discover reserves in addition 

to maintaining a competitive edge. 

Furthermore, this concept though new, presents 

an opportunity for oil companies to reach strategic 

business decisions that are tailored towards avoiding 

waste of time and resources in their operations. Oil 

companies can remotely access and monitor equipment 

which are typically miles apart, and data and oil/gas 

analytics by leveraging on Information Communication 

technologies platforms. This reduces business cost for 

companies as they need not expend human resources 

in oil operations that can be resolved through the use 

of mobile phone applications or perhaps others of 

electronic platforms. 

In conclusion, digital oilfields provides oil firms with 

more accuracy in terms of monitoring assets with a view 

to rationalize exploration, effectively allocate resources, 

predict changes in well data, and make assumptions 

based on the continuous process data variables. 

The Next Ten Years: OPEC’S Pessimistic Prediction 

for Oil Prices 

Towards the end of 2014 and so far into 2015, the 

global oil market has suffered from a drastic decline in 

oil prices; the biggest losers being major oil producing 

countries such as Nigeria, Russia, Venezuela, Algeria etc 

whose economies and revenues are largely dependent 

on income from oil exports and are predominantly 

members of the Organization of the Petroleum Export 

Countries (OPEC),. However, oil producers are gradually 

experiencing what may be termed a “recovery phase” 

as global oil prices has gradually been risen above $60 a 

barrel in the last couple of days, which is above the $53 

dollar benchmark in Nigeria’s 2015 budget. The recent 

upswing in prices is igniting fresh hopes of perhaps a 

brighter economic future for Nigeria; however it remains 

debatable whether it will ever return to its once boisterous 

level of over $100 per barrel. While Nigeria clings to 

the hope of a total recovery of oil prices, one cannot help 

but wonder if this global decline which has left a dent 

on the economy has come to stay. 

According to an article in the Wall Street Journal, 

a draft of OPEC’s latest strategy report,reveals that 

oil prices may stay below $100 per barrel for about a 

decade. The Report’s predictions for oil prices range 

from around $76/bbl to below $40/bbl in 2025. In either 

case, a crossing of the $100 mark is not contemplated 

in those scenarios. Most OPEC countries need prices 

to be well above $100/bbl in order to achieve their respective 

Benchmarks, which at the moment have been 

significantly reduced. 

One of the recommendations submitted by experts 

and stakeholders alike is that OPEC should seriously 

consider returning to a production quota system. It 

abandoned this system in 2011 due to conflicts as to the 

amount of oil each member nation would be allowed 

to produce. Understandably, members were reluctant 

to set limits on production as it would have a stifling 

effect on the acquisition of new business. Rather, some 

member nations (most notably Saudi Arabia) have done 

the direct opposite and instead flooded the market with 

more oil at cheaper prices in a bid to retain customer 

patronage. However, with a production quota system, 

there will be a reduced level of supply of oil in the market 

thus bumping up crude prices. 

Earlier this year, OPEC had objected to the reduction 

of output despite constant pressure from different 

oil producers. However, it has been reported that the 

recently released draft strategy report makes recommendation 

to the effect that production quotas could 

be enacted if OPEC’s share of the global market drops 

below its current level of 32% (OPEC once produced 

more than half the world’s oil). This remedy is termed 

a “targeted remedy” in which the output quotas would 

permit the group’s poorest members to produce more, 

to the benefit of economies that have been particularly 

distressed by the price drop. 

It has been further recommended that OPEC must 

necessarily become generally more organized and 

disciplined in order to enable it hold sway in the oil 

markets and sustain itself. This recommendation can 

well be justified against the background of the refusal 

of its own members to adhere to its directive in 2011 as 

regards the 30 million barrels a day group production 

cap to accommodate Libya’s return; this serves as a clear 

illustration of the gaps in its internal affairs. 

Perhaps it is worthy of note to consider arguments 

that OPEC’s members in direct contravention of its 

directive may actually have the answer to the problem. 

Over-supply coupled with low prices could force oil that 

is more cost-intensive out of the market, such as that 

of the Americans, granting member nations a larger 

chunk of the market. 

In any event, the release of this report will be highly 

anticipated by stakeholders in the industry as it will 

likely influence the steps to be taken in the near future. 

Naming and shaming bank debtors: An Ace deterrent to growing non-performing Loans? 

UGOCHUKWU OBI 

The apex bank, the Central Bank of Nigeria 

(CBN) recently issued a directive to deposit 

money banks to publish the list of customers 

with non-performing loans in at least three 

national daily newspapers from the end of 

July this year. According to the CBN, it is expected that 

this move would reduce the growing volume of nonperforming 

loans (NPLs) and maintain the solvency and 

health of Nigerian banks. 

In light of the potential consequences of complying 

with this directive especially with respect to the implied 

duty of confidentiality owed by a bank to its customers 

in respect of information that comes into its knowledge 

by virtue of the banker-customer relationship, the questions 

that readily beg answers would be, first, are the 

apex bank’s regulatory powers that extensive? Second, 

would the obligation to comply with this directive suffice 

to absolve a bank from the liabilities that may arise as a 

result of that implied duty of confidentiality? 

Whilst on the one hand, there are no express provisions 

in its enabling statute; the CBN Act for that purpose, on 

the other hand, a cursory review of a few sections of the 

CBN Act namely sections 2(d) and 42(1) (c) of the Act 

might provide some answers. The former section identifies 

promotion of a sound financial system as one of the 

principal objects of the CBN and the latter empowers the 

CBN to seek the co-operation of other banks in Nigeria 

to, inter alia, further policies that it considers to be in the 

national interest. 

Indeed, a combined reading of both provisions may 

permit an interpretation that the apex bank is authorized 

to exercise its powers, in the national interest and 

for the preservation of the solvency of Nigerian banks. 

Consequently, to the extent that it can be argued that the 

CBN can issue such directive, the question then remains, 

what are the potential consequences of compliance with 

same on any bank especially with respect to its duty of 

confidentiality as identified above? 

On the face of it, compliance with this directive exposes 

such a bank to two potential risks: a claim in contract for 

breach of the duty of confidentiality and a claim in tort 

for libel by virtue of the publication in the newspapers. 

In order to determine whether compliance will open 

the flood gate of litigations on banks under any of these 

heads of claim, it is perhaps appropriate at this juncture to 

shed some light on one of the legal incidents of a bankercustomer 

relationship. 

The banker-customer relationship, like any other 

contractual relationship, creates rights and obligations 

between the parties. The relationship, amongst other 

things, imposes a duty of confidentiality and secrecy 

upon the bank in relation to the customer’s information 

and data which comes to its knowledge in its capacity as 

a banker. This duty was first clarified in the English case 

of Tournier v National Provincial and Union Bank of 

England [1924] 1 KB 461 and by virtue of that decision, it 

is an implied term of the contract between a banker and a 

customer, that the banker will keep the customer’s information 

confidential. It is however important to note that 

this duty is not absolute but subject to a number of exceptions. 

Indeed, these exceptions were recently upheld by 

the English Court of Appeal in Christofi v Barclays Bank 

Plc [2000] 1 WLR 937 and they are as follows: 

1. where the disclosure of the information is required 

by law or by a court; or 

2. where it is required in the public interest; or 

3. where the disclosure is in the bank’s interest; or 

4. where the disclosure is authorized by the customer. 

These exceptions notwithstanding, the chances that 

customers whose names and indebtedness are published 

in compliance with this directive, will make claims in 

contract and tort, are not in doubt. For instance, to successfully 

maintain an action in libel, which is a form of 

defamation, the claimant only has to prove the following: 

a. that the imputation complained of is defamatory; 

b.that the imputation refers to the claimant; 

c.that the imputation was published i.e. communicated 

at least to one person other than the claimant by the 

defendant; and 

d.that the claimant suffered some injury to his reputation 

as a result of the publication. 

In light of the foregoing and having regard to the nature 

of publication contemplated under this directive, there 

is no doubt that establishing a claim for libel may not 

be difficult for any aggrieved customer. What should 

ordinarily raise concern is the prospects/chances of the 

defenses available to any bank in the event such an action 

is instituted. Firstly, it is almost certain that banks would 

seek protection within the 1st part of the 1st exception or 

the 2nd exception to their general duty of confidentiality 

identified above. 

With the 1st exception, the bank may argue that 

disclosing the customer’s information (indebtedness) 

through the publication was required by law (albeit a 

directive of its regulator) and hence not a breach of its duty 

of confidentiality. In addition, a bank can also justify the 

disclosure by arguing that, compliance with this directive 

is in the public interest (prevention of systemic failure in 

the financial sector) and thus falls within the exceptions 

to its duty of confidentiality. In other words, disclosing 

the customer’s indebtedness would assist the CBN to 

cure the mischief underlying that directive, preventing a 

repeat of the 2009 banking crisis. 

Whilst the CBN may have the powers to issue the directive 

and those exceptions remain available to the banks 

as defenses against any claim, it is doubtful that naming 

and shaming these defaulting bank customers through 

the publication, would achieve the overall objective. This 

is especially so because a similar move in the past was just 

a flash in the pan and gave rise to protests by debtors who 

claimed that their accounts were not properly reconciled 

before the publication. 

Consequently, banks will do well to consider preceding 

any such publication with proper reconciliation of 

the debtors’ accounts. Put differently, it is necessary for 

banks to make certain that these debts are actually outstanding, 

and remain unpaid by the debtors, before any 

such publications are made. Finally, it is perhaps more 

important for banks to address the existing lapses in the 

creation of new loans and the management of existing 

loans in order to eliminate the need to have to comply 

with this kind of directive or resort to litigation to recover 

their delinquent loans. 

*Ugochukwu Obi is a Senior Associate in the commercial 

law firm, Perchstone & Graeys


BDCOMMERCIAL LAW REPORT 

BUSINESS DAY 

35 

LegalBusiness 

Right to Property – What’s yours is yours 

DENCA SERVICES LTD v. LEO OLEKA & SONS LTD & 2 ORS. 

COURT OF APPEAL (LAGOS DIVISION) 

(IYIZOBA; ABUBAKAR; OBASEKI-ADEJUMO, JJ.CA) 

The Appellant engaged the Respondent 

to convey a 20ft container 

from SCOA Kirikiri Terminal to a 

location in Lagos State. The waybill 

stated that the contents of the 

container were padlocks. However, the 3rd 

Respondent (the Nigeria Customs Service) 

arrested the 1st Respondent’s truck in transit 

claiming that it had received a tip-off that the 

truck was carrying contraband goods. 

The 1st and 2nd Respondents alleged that 

the contraband items were released to the 

Appellant but the 3rd Respondent refused to 

release the truck. They further claimed that 

the 3rd Respondent unlawfully detained 

the truck for two years. The 1st and 2nd Respondents 

instituted the suit at the trial court 

under the Fundamental Rights Enforcement 

Procedure Rules. 

The Appellant raised a Preliminary Objection 

which the trial court dismissed and subsequently 

granted some of the reliefs sought 

by the 1st & 2nd Respondents. 

Dissatisfied with the ruling, the Appellant 

appealed to the Court of Appeal. 

One of the issues raised for the determination 

was: 

“In view of S. 44(1) & (2)(k) of 

the Nigerian Constitution, was the applicants/ 

respondents action for arrest and detention 

of truck number AW 213 EKY competently 

commenced by way of Fundamental Rights 

Enforcement Procedure and if so was the 

action not time barred thus impairing the 

jurisdiction of the trial court over the action?” 

On this issue, learned counsel for the Appellant 

submitted that the suit was wrongly 

commenced under the Fundamental Rights 

Enforcement Procedure Rules and that the 

trial court lacked jurisdiction to entertain the 

suit. Counsel argued that section 4 4 ( 1 ) 

of the Constitution deals with fundamental 

rights in relation to compulsory acquisition 

of property and that 1st & 2nd Respondents’ 

claim in this suit is for arrest and detention of 

their truck. 

Counsel further submitted that assuming 

without conceding that the suit could have 

been properly brought under the Fundamental 

Rights (Enforcement) Procedure Rules 

1979, the 1st and 2nd Respondents violated 

Order 1 Rule 3(1) of the Rule which required 

the application for leave to enforce their Fundamental 

Rights to be filed within 12 months 

from the date of the happening of the event. 

Counsel submitted that the application was 

filed 24 months after the event. The action was 

therefore time barred and ought to have been 

dismissed by the trial court. 

The Respondents’ briefs were held to be 

incompetent and were discountenanced. 

The Court of Appeal decided the issue partly 

in favour of the Appellant, and found that the 

application was time barred. However the 

court noted as follows in relation to the means 

of commencing the suit: 

“I have carefully examined the reliefs sought 

in this appeal which I have set out earlier in 

this judgment. The reliefs which an applicant 

may seek and obtain under Section 46 (1) of 

the Constitution of the Federal Republic of 

Nigeria 1999 and in an action commenced 

under the Fundamental Rights (Enforcement 

Procedure) Rules must be one of those affecting 

any of the fundamental rights entrenched 

in Chapter IV of the Constitution. In the applicant’s 

written response to the respondent’s 

preliminary objection at page 48 of the record 

counsel stated: 

‘The complaint of the applicants is that their 

truck/trailer, the mainstay of their sustenance 

has been illegally and unconstitutionally arrested 

by the respondents thereby breaching 

the applicants’ rights to property, life and 

dignity of their person as guaranteed by the 

1999 Constitution under Chapter IV... .’ 

Right to property, life and dignity are 

provided for in sections 44, 33 and 34 of the 

Constitution. From the facts of this case as 

deposed to in the supporting affidavit and 

as summarized earlier in this judgment, the 

arrest and detention of the truck/trailer of the 

respondents relates to their property rights 

and has nothing to do with right to life and 

dignity of the human person. The 1st and 

2nd respondents attempted to bring it in by 

deposing in paragraph 15 of their affidavit in 

support of the motion on notice at page 24 of 

the record “that the applicants, their workers, 

members of their families and dependants suffered 

financially, emotionally, economically 

and physically (with some dead) as a result of 

the said illegal arrest and detention of the said 

Truck/Trailer”. This averment is too remote 

and the facts certainly cannot form the basis 

of a claim for breach of right to life or dignity 

of the human person. 

Section 44(1) of the CFRN 1999 provides 

that: 

‘No movable property or any interest in an 

immovable property shall be taken possession 

of compulsorily and no right over or interest 

in any such property shall be acquired compulsorily 

in any part of Nigeria except in the 

manner and for the purpose prescribed by a 

law that, among other things- 

(a) requires the prompt payment of compensation 

therefor; 

.......................................................... 

(2) Nothing in subsection (1) of this 

section shall be construed as affecting any 

general law- 

......................................................... 

(k) relating to the temporary taking of possession 

of property for the purpose of 

any examination, investigation or enquiry;... 

.’ 

See Eronini v. Eronini (2013) 14 NWLR 

(Pt. 1373) 32 @ 53 E- G; Adeyemi-Bero v. 

L.S.D.P.C. (2013) 8 NWLR (Pt. 1356) 

238 @ 282 C - G. From the above provision, the 

3rd respondent is authorised under Section 

44 (2) (k) to take possession of 

the 1st and 2nd respondents’ truck for the 

purpose of investigation relating to the contraband 

goods the truck was caught carrying. 

Further, by section 169 of the Customs and 

Excise Management Act Cap C45 Laws of the 

Federation of Nigeria 2004, the 3rd respondent 

is entitled in the lawful operation of its duties 

to seize any vehicle in which goods regarded 

as contraband pursuant to section 167 of the 

Customs and Excise Management Act (supra) 

are conveyed. The arrest and detention was 

not therefore ab initio illegal. See the case of 

Nwanna v. A.G. Federation (2010) 15 WRN 

178 @ 187 referred to by learned counsel for 

the appellant where Mukhtar JCA (as he then 

was) observed: 

‘An arrest or detention the subject of Fundamental 

Rights Enforcement Procedure Rules 

is only that which violates any provision in the 

Constitution or any Federal or State law for the 

time being in force’ 

But by the continued detention of the truck 

for up to two years, especially after the contraband 

goods were returned, the 3rd respondent 

removed itself from the protection provided by 

section 44 (2) (k) of the Constitution. 

It was also no longer protected under Section 

169 of the Customs and Excise Management 

Act Cap C45 Laws of the Federation of Nigeria 

2004 because it was no longer acting in lawful 

operation of its duties. Its illegal act in detaining 

the truck for such a long period and after it 

had released the contraband goods it was conveying 

was in breach the fundamental rights 

of the 1st and 2nd respondent as guaranteed 

by Section 44 of the 1999 Constitution. This 

action filed under the Fundamental Rights 

Enforcement Procedure Rules was therefore 

competent.” 

Counsel: 

J. O. Mbamalu with O. F. Emodi for the Appellant. 

T. Bashorun with O. C. Mbadiwe for the 3rd 

Respondent. 

This summary is fully reported at (2015) 3 

CLRN 

info@clrndirect.com 

www.clrndirect.com 

Join in our discussion of the above report at 

www.commerciallawreportsnigeria.blogspot. 

com 

CLRN 

© Commercial Law Reports Nigeria Limited

36 



Policies • Issues • Debates 

BUSINESS DAY 

37 

POLITICS 

Ikpeazu will reposition Abia, says Soludo 

GODFREY OFURUM, Aba 

Chukwuma Soludo, a former 

governor of Central 

Bank of Nigeria (CBN), 

has described Victor 

Okezie Ikpeazu, Abia State governor-elect, 

as a man with clarity of 

vision and capacity to reposition 

the state. 

Soludo, who made the observation, 

while playing host to the 

Ikpeazu at his Enugu residence, 

stressed that he was not in doubt 

that Ikpeazu would reposition 

Abia. 

According to him, Ikpeazu, has 

the capacity and all it takes to reposition 

Abia and make Igboland 

great again. 

Soludo confessed that he had 

not been to Aba, the commercial 

hub of Abia State, in the last 20 

Okezie Ikpeazu (l) with Chukwuma Soludo 

years, but promised to visit the 

South-East state soon, after listening 

to Ikpeazu. 

very important town to Ndi Igbo, “Repositioning Abia is a task that Abia, Ndigbo and Nigeria is always 

“I’ve not been to Aba in the last because there is no Igbo family we must accomplish God helping on the down slope, but all of that 

20 years, but after listening to you, that does not have link to Aba. I us, and we need the support and will be history after May 29, we 

I’ve decided to visit Aba very soon. commend you. 

partnership of people like you to are prepared to hit the ground 

“Abia is surely at the heart of “You have the clarity of vision. drive our vision. 

running.” 

rescuing Igboland and it will be And you’ve also done a thorough “I thank you for your kind “I appeal to you to leave your 

my pleasure to always brainstorm diagnosis of the Abia problem words and willingness to partner doors always open for us because 

with you to ensure this happens. that alone tells me you have the us in our resolve to reposition all hands must be on deck for us to 

I’ve seen the potential and I will capacity to reposition Abia and Abia. “The present state of Aba, the make Aba work again. We believe 

do anything you want me to do to make Igboland great again. You commercial town of our people, that if you get Aba right, Abia will 

help you succeed in Abia,” he said. will surely fill vacuum”. 

which is almost comatose, is part be right and we are determined,” 

Soludo further said: “Aba is a In response, Ikpeazu said: of the reasons the economy of Ikpeazu further said. 

‘I’m proud to be Edo Assembly 

speaker not impeached’ 

Uyi Igbe, speaker, of the fifth session of the Edo State House of Assembly, last weekend celebrated his 

50 birthday in Benin-City. In this impromptu interview with IDRIS UMAR MOMOH, he attributed his 

success as the first speaker of the house that will be completing his tenure since the advent of democracy 

in 1999 to openness, commitment and truthfulness to members. Excerpts: 

I 

How do you feel at 50? 

feel a bit younger. Thirty 

years ago, I never thought 

I am going to feel this 

way but now I feel quite 

young. Also, I know I 

don’t feel and look 50. If I don’t 

feel and look 50, then age is just 

a number. Therefore, to me, 50 

is just a number, but I am really 

thankful to God. I am really 

thankful to God because in a 

week’s time or there about the 

fifth assembly of the Edo State 

House of Assembly will come to 

a close and by His grace, unless 

the members see something 

wrong in me within the remaining 

period I will be the first 

speaker that has presided over 

the assembly successfully in the 

state that was not impeached 

by the members. So, I am really 

very grateful to God in this my 

50th birthday. 

Moreso, for your information 

my wife just gave birth to 

a bouncing baby girl few weeks 

ago. So, I am still in shape. 

Igbe 

What’s responsible for 

your success as speaker? 

Openness, commitment and 

truthfulness to members are my 

hallmark. I was a regular member 

of the house from 2007-2011 

and I can tell you that, then I 

didn’t really understand the 

workings of the executives of 

the Principal Officers Council 

(POC) of the house. For me 

then it was a misery. What I 

tried to do was to demystify 

the POC of the state House of 

Assembly for everybody to see 

that there is really nothing in 

it, because before then a lot of 

people were thinking that there 

were issues to the POC. But I 

decided to open it up for members 

to see what is really there, 

understand the workings and 

avoid unnecessary suspicions. 

For me, there is nothing so 

special to be a speaker, deputy 

speaker or majority leader. My 

success in the past four years 

was as a result of my openness, 

truthfulness and commitment 

to the members. When the 

members accept you then you 

don’t have a problem and that’s 

what I tried to do. I tried to get 

the members to accept me. 

INEC denies 

plans to scuttle 

inspection of 

election materials 

ANIEFKIOK UDONQUAK, Uyo 

Austin Okojie, resident 

electoral commissioner 

in Akwa Ibom State, 

has denied the allegation 

of non-compliance with the 

directive of the Elections Petition 

Tribunal sitting in the state 

to allow the opposition parties 

inspect the materials used in the 

Presidential/National elections 

of April 28, 2015. 

Okojie said all the materials 

including voter register, ballot 

papers and all other sensitive 

materials needed for inspection, 

sorting, counting and 

scanning had been released 

and presented by the commission 

for inspection by the 

representatives of the various 

political parties as ordered by 

the tribunal. 

Besides, he said five instead 

of three representatives from 

each political party were approved 

for the exercise to check 

suspicion. 

Representatives of the All 

Progressives Congress (APC) 

at the ongoing inspection of 

electoral materials used for 

the Presidential/National Assembly 

elections of April 28, 

2015 in Akwa-Ibom State had 

alleged collusion between the 

commission and the People’s 

Democratic Party (PDP) to 

scuttle the exercise. 

One of the APC representatives, 

Adedoyin Ewederin 

who spoke with Journalists 

at the Independent National 

Electoral Commission-INEC 

Secretariat in Uyo where the 

exercise was going on, alleged 

late commencement of the 

exercise on the instructions of 

the PDP chieftains and commission 

to make it impossible 

to complete the exercise within 

the scheduled ten days by the 

Presidential/National Assembly 

Elections Petition Tribunal sitting 

in the state. 

But Uwemedimo Nwoko, 

commissioner for justice and attorney-general 

of the state, denied 

the allegations, saying the 

exercise has been smooth and 

without rancour or suspicion 

as all the representatives of the 

political parties were working 

assiduously to ensure the success 

of the exercise. 

“Even if this exercise is not 

completed within the stipulated 

10 days, there is always a room 

for making up because I believe 

that the ultimate purpose of 

this exercise is to ensure that 

the ends of justice as it relates 

to the integrity of the electoral 

exercise is upheld,” Nwoko said.



THOMSON REUTERS 

Italy’s Renzi says may 

lower retirement age 

in next budget 

Italy is considering rolling 

back part of a landmark 

pension reform passed in 

2012 to allow people to retire 

years earlier on a slightly 

lower pension, Prime Minister 

Matteo Renzi said on 

Tuesday. 

Italian public spending 

on pensions amounts to 

around 15 percent of national 

income, more than 

any other European country. 

A reform adopted by former 

Prime Minister Mario 

Monti at the height of the 

euro zone debt crisis sharply 

increased the retirement age 

to 66 for men and women, to 

come into full effect by 2018, 

in an attempt to make the 

system more sustainable. 

The reform, named after 

Monti’s Welfare Minister 

Elsa Fornero, helped calm 

financial markets but was 

deeply unpopular in Italy. 

“We’re studying a 

mechanism not to cancel 

Britain’s top share 

index rose on Tuesday, 

led by Land 

Securities which raised 

its dividend payout and 

helped offset a drop in 

heavily weighted miners 

and telecoms firm Vodafone. 

The blue-chip FTSE 100 

index was up 26.23 points, 

or 0.4 percent at 6,995.10 

points at the close. The 

index has gained nearly 

7 percent so far this year. 

Shares in Land Securities 

rose 4 percent, one 

of the biggest FTSE 100 

gains, after Britain’s largest 

listed property developer 

hiked its dividend 

by 3.7 percent, saying 

a boom in demand for 

commercial property 

had boosted its net asset 

value by 27.6 percent in 

the year ended March 31. 

“Land Securities 

numbers were good and 

highlight that the office 

space market will continue 

to improve with 

a further pickup in the 

economy. The company 

will benefit from a rise in 

the rental demand,” Securequity 

trader Jawaid 

Afsar said. 

Bottler Coca Cola 

HBC was the top riser, 

gaining 4.3 percent after 

the Fornero law but to give 

people a bit more freedom,” 

Renzi, who faces important 

regional elections later this 

month, told state television 

broadcaster RAI. 

“If a woman wants to 

retire at 60 or 61 instead of 

working until 65 while accepting 

about 30 euros (per 

month) less in her pension 

she’ll be able to do it,” he 

said, adding that he planned 

to present the changes in the 

autumn, as part of the 2016 

budget. 

Pensions are always a 

highly sensitive issue in Italy, 

which has one of the world’s 

oldest populations. 

Earlier this week Renzi 

promised to make a one-off 

payment averaging around 

500 euros to almost 4 million 

pensioners in response 

to a constitutional court 

ruling that another part of 

the Fornero reform was illegitimate. 

Britain’s FTSE gains, Land Securities 

up after dividend hike 

ATUL PRAKASH AND 

ALISTAIR SMOUT 

Barclays lifted its target 

price to 1220 pence from 

1175 pence following 

above expectation earnings 

reported last week. 

Gains in the broader 

stock market were 

capped by a drop in miners 

after prices of key 

industrial metals fell. 

The UK mining index was 

down 2.5 percent. 

BHP Billiton dropped 

3.9 percent after J.P. Morgan 

cut its target price for 

the stock to 1,425 pence 

from 1,600 pence. 

The FTSE 100 performed 

less strongly than 

continental European 

indexes, with analysts 

attributing much of its 

underperformance to its 

heavy weighting in mining 

stocks. 

The materials sector, 

including miners, 

trimmed over 11 points off 

the FTSE 100. 

“We see no near-term 

catalyst for an improvement 

in the outlook for 

metal prices,” said Jeremy 

Batstone-Carr, market 

analyst at Charles Stanley, 

adding that he had a 

preference for euro zone 

shares over Britain’s blue 

chips. 

“The pressure is still on 

the mining sector... and 

UK shares look comparatively 

less attractive than 

other places.” 

A street of the municipality of Salgar in Antioquia department is seen covered in mud and debris after a landslide in this May 19, 2015. A 

landslide sent mud and water crashing onto homes in a town in Colombia’s northwest mountains on Monday, killing more than 50 people 

and injuring dozens, officials said. REUTERS 

Hollande vows to push on with 

reform despite French teacher strike 

• Hollande pledges reform will pass despite critics 

• Teachers oppose Socialists’ secondary school reform 

INGRID MELANDER AND 

JESSICA CHEN 

Tens of thousands 

of teachers went 

on strike across 

France on Tuesday 

to protest 

against measures aimed at 

revamping the country’s 

creaking school system, but 

the government pledged to 

stick by its reform plan. 

Billed as countering elitism 

and ensuring fairer 

use of teaching resources, 

the reform has faced criticism 

from trade unions, 

the conservative opposition, 

sections of the left and 

even Germany, which fears 

German-language teaching 

will suffer. 

France’s 840,000 teachers 

have long been a bastion 

of support for the Socialists 

and many voted for President 

Francois Hollande 

in the 2012 presidential 

election. But the proposed 

reform has turned many 

against his already unpopu- 

Russia demands access to two Russians detained in Ukraine 

Russia’s foreign ministry 

on Tuesday demanded 

the right to 

visit two citizens detained last 

week in eastern Ukraine who 

Kiev says are Russian soldiers 

guilty of carrying out “terrorist 

acts” on its territory. 

Kiev said on Monday the 

two men had killed Ukrainian 

troops and would be 

prosecuted. It has used them 

to support its accusations of 

lar government. 

“They’re getting it completely 

wrong. We want a 

reform but not this one,” 

34-year-old physics teacher 

Sebastien Bourdellot said at 

a protest march in Paris. “I 

voted for Hollande in 2012, I 

even put up posters for him, 

but I really regret it.” 

Opinion polls show that 

while one in two teachers 

backed Hollande in the first 

round of the 2012 election, 

he is losing support and 

some are now tempted by 

the far-right National Front. 

The plan, labelled a 

“shipwreck for France” by 

one conservative deputy, 

is to give schools more leeway 

on what they teach, 

promote inter-disciplinary 

learning and counter elitism. 

The government says it is 

essential to help more children 

succeed and promised 

on Tuesday to push ahead 

with the reform. 

“There will be a reform, 

and it will be one that aldirect 

Russian participation 

in the separatist conflict. 

Moscow denies active military 

involvement. 

Russia’s embassy in Kiev 

has asked to meet the detained 

men and to provide 

them with “necessary help in 

accordance with the norms 

of international law”, the 

foreign ministry said in a 

statement. 

“The Defence Ministry 

lows everyone to succeed,” 

Hollande told a joint news 

conference with German 

Chancellor Angela Merkel 

in Berlin. He assured her 

that learning German was 

a priority in French schools. 

LOST SUPPORT 

Around one in four 

teachers in lower secondary 

schools affected by the 

reform joined the strike, the 

Education Ministry said. Police 

estimated that around 

3,500 people took part in 

the march in Paris, much 

lower than past protests on 

school issues. 

The SNES-FSU union put 

strike turnout at over 50 percent 

of all secondary school 

teachers and said that over 

10,000 people rallied in the 

capital. 

Critics argue the reform 

will increase competition 

between schools and so exacerbate 

inequalities. Others 

fear a shift of resources 

away from German, Latin 

and Greek -- currently the 

choice of a minority of the 

of the Russian Federation 

... has already said these 

citizens are not currently 

serving in the Russian armed 

forces,” the ministry statement 

added. 

TASS news agency quoted 

Russian Defence Ministry 

spokesman Major General 

Igor Konashenkov on Monday 

as saying the two prisoners 

had served in the Russian 

armed forces but were no 

most gifted pupils -- that 

will drag down overall standards. 

Much of the criticism 

has focused on 37-year-old 

Education Minister Najat 

Vallaud-Belkacem, a 

Moroccan-born daughter of 

working-class parents and 

a rising star in the government 

who is often hailed as 

a success story for French 

integration efforts. 

Ex-president Nicolas Sarkozy, 

now head of the opposition 

UMP, said she was 

an icon of what he called the 

government’s “unrelenting 

quest for mediocrity.” 

An Odoxa opinion poll 

last week showed that over 

60 percent of French people 

oppose the reform and 

think it will harm pupils’ 

performance rather than 

improve it. 

“People are often very 

wary of reform in France, 

there is a real fear of reform,” 

said Eric Charbonnier, education 

policy analyst at the 

OECD think tank group. 

longer Russian soldiers on 

May 17, the day they were 

captured. 

In a video posted online 

by the Ukrainian interior 

ministry on Monday, one of 

the prisoners who gave his 

name as Alexander Alexandrov 

said he had been on a 

spying mission as part of a 

14-member special forces 

group from the Russian town 

of Togliatti.


BUSINESS DAY 

39 


Oil down over 3 pct on dollar rally, 

ample supply worry 

• Dollar at two-week high against basket of currencies 

• U.S., Saudi Arabia crank out more oil than needed 

BARANI KRISHNAN 

Oil prices fell 

more than 3 

percent on 

Tuesday, with 

U.S. crude extending 

losses for a fifth 

straight day, as the dollar 

rallied amid evidence that 

the United States and top 

oil exporter Saudi Arabia 

were pumping more than 

the world needed. 

North Sea Brent and U.S. 

crude were down more than 

$2 a barrel each as the dollar 

hit two-week highs against 

a basket of currencies, making 

crude and other dollardenominated 

commodities 

less affordable for holders of 

currencies such as the euro. 

The sell-off in oil also 

came ahead of Tuesday’s 

end-of-business expiry in 

Takata to declare 33.8 million vehicles defective - Detroit News 

ATUL PRAKASH AND 

LIONEL LAURENT 

Japanese air bag manufacturer 

Takata Corp 

is expected to declare 

about 33.8 million vehicles 

defective on Tuesday, 

a move that is expected to 

lead to the largest auto recall 

in U.S. history, the Detroit 

News reported, citing three 

officials briefed on the announcement. 

The company is expected 

to announce that it has filed 

U.S. crude’s front-month 

contract, which often results 

in unusually heavier 

market activity. Volume in 

U.S. crude’s July contract, 

the new front-month from 

Wednesday, was markedly 

higher than the expiring 

June contract , Reuters data 

showed. 

The tumble in crude 

came despite an industry 

report scheduled later in the 

day that was expected to cite 

a third straight weekly decline 

in U.S. crude stockpiles. 

The American Petroleum 

Institute (API) report 

is due at 4:30 p.m. EDT 

(2030 GMT), ahead of official 

inventory numbers on 

Wednesday from the U.S. 

government’s Energy Information 

Administration. 

“There is certainly a degree 

of profit-taking going 

on today before the expiry 

of the June contract, but it’s 

primarily driven by the dollar’s 

strength,” said Sal Umek 

of the Energy Management 

Institute in New York. 

“Regardless of what the 

API and EIA say, we are 

nearly 90 million barrels 

higher in U.S. crude, and 

about 14 million higher in 

gasoline, from a year ago, 

putting us well above the 

five-year average,” Umek 

said. 

U.S. crude’s front-month 

contract was down $2.20 at 

$57.23 a barrel by 1:15 p.m. 

EDT (1715 GMT). 

Brent fell $2.24 to $64.03 

a barrel. 

Goldman Sachs said it 

expects the current oil rally, 

which began at the end of 

the first quarter, to fizzle and 

U.S. crude futures to trade 

near the year’s low at around 

$45 a barrel by October. 

Saudi Arabia’s crude 

exports hit their highest 

level in almost a decade in 

March, official data showed 

on Monday. . 

Analysts said investors 

also were less worried over 

the risks to Middle East oil 

supplies from fighting in 

Iraq, where Shi’ite militiamen 

have been deployed 

to battle Islamic State militants 

who seized the city of 

Ramadi. Saudi-led forces 

are meanwhile carrying out 

strikes in Yemen against 

Houthi rebels aligned to 

Iran. 

“Such concerns are exaggerated,” 

said Carsten 

Fritsch, analyst at Commerzbank. 

“In actual fact, the oil 

supply from the region has 

continued to grow.” 

Residents wait for help after a landslide sent mud and water crashing onto homes close to the municipality of Salgar, in Antioquia department, 

Colombia May 19, 2015. A landslide sent mud and water crashing onto homes in a town in Colombia’s northwest mountains on 

Monday, killing more than 50 people and injuring dozens, officials said. REUTERS 

a series of four defect information 

reports with the 

U.S. National Highway Traffic 

Safety Administration 

(NHTSA), declaring both 

driver and passenger air 

bag inflators defective in 

the vehicles, the report said. 

(http://bit.ly/1L6KRCx) 

The U.S. Department 

of Transportation and the 

NHTSA said earlier that they 

would make a “major” announcement 

related to the 

air bag recall. 

Takata had no immediate 

comment on the report. 

The number of vehicles 

with potentially defective 

Takata air bags recalled 

globally since 2008 has risen 

to around 36 million following 

recalls over the past 

week by Japan’s Toyota Motor 

Corp, Nissan Motor Co 

Ltd and Honda Motor Co 

Ltd. 

The automakers have said 

that they decided to proceed 

with the recalls after finding 

some Takata air bag inflators 

were not sealed properly, allowing 

moisture to seep into 

the propellant casing. Moisture 

damages the propellant 

and can lead to an inflator 

exploding with too much 

force, shooting shrapnel 

inside the vehicle. 

Six deaths have been 

linked to the defective air 

bags, all in cars made by 

Honda, which has borne the 

brunt of the Takata recalls to 

date and which gave a disappointing 

profit forecast last 

month due to higher costs 

related to quality fixes. 

Shell-BG deal may be end 

point rather than harbinger 

CLYDE RUSSELL 

There is a widespread 

assumption that weak 

commodity prices are 

likely to spark a wave of 

merger and acquisition activity 

as stronger companies 

seek to buy assets on the 

cheap. 

The $70 billion buyout 

of BG Plc by larger rival 

Royal Dutch Shell is generally 

viewed by investors and 

analysts as the first big deal 

in a likely series of major 

mergers and acquisitions in 

the resource sector. 

After all, the last time 

commodity prices fell 

sharply, around 15 years 

ago, there was a rash of mega-mergers, 

such as Exxon 

with Mobil and Conoco 

with Phillips in the energy 

space, and BHP with Billiton 

and Rio Tinto’s purchase of 

Alcan. 

Notwithstanding the 

Shell-BG deal, it appears 

executives may be more 

cautious this time around, 

eschewing mega-mergers 

in favour of smaller acquisitions 

and in-house projects 

to add shareholder value. 

Ryan Lance, the chief executive 

of ConocoPhillips, 

was adamant that he didn’t 

expect a “big M&A wave any 

time soon”. 

Speaking at the Asia Oil 

& Gas Conference in Kuala 

Lumpur on Monday, Lance 

said the rationale that drove 

the previous round of major 

deals doesn’t quite apply 

any more. 

Why would a giant international 

energy or resource 

company want to go down 

the M&A route currently? 

The normal motivators 

for such mega-deals 

are the cost synergies that 

executives believe can be 

extracted, the ability to acquire 

reserves at attractive 

prices and the addition of 

assets that fill gaps in existing 

portfolios. 

The Shell-BG deal was 

most probably motivated 

by the desire to build on 

assets in liquefied natural 

gas (LNG), particularly in 

Australia where BG already 

has an operating coal seam 

to LNG plant on the east 

coast, and Shell effectively 

has stranded gas reserves 

after it deferred a decision 

to build its own plant. 

It’s likely that there will 

be more of these kinds of 

deals, but on a smaller scale, 

as companies attempt to 

add assets that are complementary 

to their existing 

businesses. 

COST REDUCTION, IN- 

TERNAL PROJECTS 

But Lance was also clear 

that while ConocoPhillips 

looked at deals from time 

to time, it hadn’t seen anything 

that was as attractive 

as developing the internal 

pipeline of projects. 

In the energy space, he 

said that the advent of U.S. 

shale oil and gas production, 

and the massive addition 

of reserves they provided, 

had made acquisitions 

for the sake of adding to 

reserves less likely. 

Both large and mid-size 

companies also had less 

need to fill in their portfolios 

with large deals, he said, 

while the need to merge to 

drive cost reductions had 

been less urgent with the 

work being done to strip 

out costs within companies. 

The cost reduction mantra 

was one highlighted 

repeatedly at the conference 

in the Malaysian capital, but 

the focus of most speakers 

was on how to drive efficiencies 

within existing businesses, 

and how to deliver 

greenfield projects without 

the cost blowouts that typify 

the resource industry. 

What this is likely to 

mean is a move toward 

“modularity” in resource 

projects, meaning the repeated 

construction of 

identical units to identical 

standards in order to cut 

down on both building and 

operating costs. 

There is no shortage of 

resource projects being 

planned around the world, 

from deepwater oil in Brazil 

and Africa, to LNG in western 

Canada. 

What has changed is that 

these projects will now have 

to be far more rigorously 

costed than they were before, 

and companies are 

more likely to concentrate 

their efforts in these areas 

as opposed to seeking to 

use mega-deals to try and 

drive shareholder returns 

in a low commodity price 

environment. 

Perhaps instead of large 

M&A deals, this time the 

commodity cycle will deliver 

more spinoff-type deals, 

such as BHP Billiton’s demerger 

of its aluminium 

and energy coal assets into 

South 32, which started 

trading on Monday. 

South 32 actually reverses 

much of the BHP merger 

with Billiton, and Rio Tinto 

is looking to do something 

similar, albeit on a smaller 

scale, with the planned sale 

of its Pacific Aluminium 

assets. 

Currently, with the industry’s 

focus on cutting 

costs in order to preserve 

dividends and thus shareholder 

value, the valuations 

of companies that may present 

as M&A targets are likely 

still too high.




Pilgrims from the Fuengirola brotherhood pray as they cross Guadalquivir river on a boat on their way to the shrine of El Rocio in Coria 

del Rio, southern Spain May 19, 2015. Every spring hundreds of thousands of devotees converge at a shrine to pay homage to the Virgin 

del Rocio during an annual pilgrimage which combines religious fervour and festive colour. REUTERS 

South Africa probes global 

banks for FX price fixing 

• Watchdog accuses dealers of sharing info in chatrooms 

TJ STRYDOM 

South Africa is investigating 

several 

global banks for 

allegedly fixing 

foreign exchange 

trades, joining a worldwide 

push to probe allegations 

of price-rigging in currency 

markets. 

The banks being investigated 

are BNP Paribas, Citigroup, 

Barclays, JP Morgan, 

Investec , Standard Bank 

and Standard Chartered , the 

Competition Commission 

said on Tuesday. 

The investigation is focusing 

on trading in currency 

pairs involving the rand, 

whose daily value of trades 

Turkey’s Netlog to meet with potential investors soon over stake sale 

STEPHANIE NEBEHAY 

Turkish logistics firm 

Netlog is looking to 

sell a stake to an investor 

to help to expand its 

business, which already has 

distribution warehouses in 

Europe, the Middle East and 

North Africa after a string of 

acquisitions. 

Netlog hired U.S. bank Citi 

last year to look at various options 

and is planning to enter 

formal negotiations with potential 

investors by the end of 

the summer, Gokalp Cak, vice 

chairman of the firm, said. 

“Meetings with potential 

investors are likely to begin 

at the end of August,” Cak told 

Reuters in an interview. 

Private equity funds 

ranges between 10 billion 

rand and 15 billion rand 

($840 million to $1.26 billion). 

While similar foreign exchange 

price-fixing probes 

are underway in Europe, Asia 

and the United States, this is 

the first time regulators have 

investigated banks’ trading in 

the South African currency. 

The watchdog accused 

dealers at the banks of colluding, 

using electronic chat 

rooms and instant messaging, 

to coordinate their trading 

activities when giving quotes 

to customers who buy or sell 

currencies. 

“This coordination has the 

effect of eliminating competition 

among the respondents, 

and investment banks were 

among the parties interested 

in buying a stake in the company, 

which has an estimated 

value of more than $700 million, 

Cak said. 

“We’re looking for a partner 

that could properly assess 

the value of the company and 

want to tap their expertise to 

further expand.” 

Netlog mainly operates in 

warehousing and distribution 

of food items, fashion and 

lifestyle, pharmaceuticals 

and general industrial goods. 

The size of the stake to put 

up for sale is not yet clear but 

the family will keep control 

of the firm. 

The company, established 

by Cak’s father, has seen sales 

grow by at least 25 percent 

as it enabled them to charge 

an agreed price for a specific 

amount of currency,” the 

Commission said. 

Barclays Africa Group, the 

South African unit of Barclays 

Plc, Standard Chartered and 

Investec said they would 

co-operate fully with the investigation. 

JP Morgan, which paid 

nearly $100 million to settle 

a similar case in the United 

States, declined to comment, 

as did BNP Paribas. Standard 

Bank said it could not immediately 

comment, while 

Citigroup did not immediately 

respond to an emailed 

request for comment. 

South Africa’s financial 

markets are highly liquid, 

every year since 2009. In 2014, 

annual sales were 1.6 billion 

lira ($616 million), producing 

earnings before interest, tax, 

depreciation and amortisation 

of 126 million lira. It has 

about 7,000 employees. 

“We would either stay 

as a niche firm operating 

in the Turkish market, or 

would expand to operate at 

a broader regional level to 

draw in global customers,” 

Cak said, explaining why 

the company decided to buy 

Belgian warehousing and 

distribution firms Belspeed 

and TNT Fashion in 2013 

and 2014. 

These purchases allowed 

Netlog to offer services across 

Europe, the Middle East, 

North Africa and central 

making it easy for assets to 

flow in and out of the country 

during episodes of volatility. 

The rand is also highly 

vulnerable to downturns in 

investor risk appetite because 

of South Africa’s national 

budget and current account 

deficits. 

Last year, regulators in the 

United States, Britain and 

Switzerland fined six major 

banks a total of $4.3 billion 

for failing to stop traders from 

trying to manipulate the foreign 

exchange market. 

The global inquiry has 

shaken the industry, with 

dozens of top dealers put 

on leave or fired and banks 

under pressure to improve 

their supervision of traders. 

Asian countries. It has warehouses 

in Britain, the Netherlands, 

Belgium, Dubai and 

Turkey, Cak said. 

“Now I can come out and 

pitch for hub-and-spoke operations 

of bigger companies 

for the region.” 

If the stake sale goes 

ahead, it would be the latest 

in a string of foreign deals 

in Turkey that accelerated 

in May. 

Early this month, French 

dairy producer Lactalis 

bought 80 percent of Turkish 

dairy producer Ak Gida with 

an estimated market value of 

$1 billion. German food distribution 

platform Delivery 

Hero bought Turkish online 

food distributor Yemeksepeti 

in a deal worth $589 million. 

Out of Africa? Texans offer 

sanctuary to endangered rhinos 

JIM FORSYTH 

In the Texas grassland, 

home to white-tailed 

deer and rattlesnakes, 

outdoorsman Charly Seale 

sees a vast sanctuary of 

open spaces that could be 

used to protect the wild African 

rhino from its biggest 

enemy - poachers in search 

of the animals’ valuable 

horns. 

Seale is part of an ambitious 

project organized by 

animal welfare groups in the 

United States and African 

countries to bring hundreds 

of orphaned baby southern 

white rhinos to the south 

Texas grasslands, whose 

climate and geography are 

similar to their native South 

African veld. 

That is if governments 

will let them and the Texans 

can afford a transportation 

bill that could run tens of 

millions of dollars, all paid 

for by private donations. 

“This is not for the faint 

of heart or for the faint of 

checkbook,” said Seale, 

head of the Texas-based 

Exotic Wildlife Association’s 

Second Ark Foundation, 

pointing out no public 

money will be sought for 

the effort, which is still in its 

early stages. 

Rhino poaching hit a 

record in South Africa last 

year, home to almost all the 

rhinos in Africa, with 1,215 

killed in 2014, according to 

South Africa’s Environment 

Ministry. 

International crime syndicates 

are after rhino horns, 

which are used in traditional 

Asian medicine and sell at 

prices higher than gold to the 

newly affluent in places such 

as Vietnam, where a belief, 

with no scientific basis, exists 

that they can cure cancer. 

In January, South Africa 

said it had moved about 

100 rhinos to neighboring 

states to combat poaching. 

In 2015, another 200 rhinos 

will be moved to what Environment 

Minister Edna 

Molewa said are “strongholds” 

where the animals 

will be safer from poaching. 

Some have ended up 

in Botswana, a country 

that allows the shooting of 

poachers on sight. 

FORMIDABLE CHAL- 

LENGES 

But what about Texas? If 

the plan goes forward - and 

there are many issues yet 

to be resolved - it would 

likely be the largest attempt 

outside of Africa to move 

rhinos out of harm’s way. 

The South African Environment 

Ministry says it 

has yet to receive a formal 

request for export but added 

that strict criteria under 

international endangered 

species agreements would 

have to be met, including 

zoo accreditation, standards 

of care and record 

keeping. 

South Africa is home 

to about 20,000 rhinos, 

but under the Texas plan, 

called Project 1,000, far 

fewer rhinos would likely 

be approved for export to 

the U.S. state. Africa has two 

different species of rhinos: 

white, which number about 

20,000, and black, whose 

population is about 5,000, 

according to the website 

savetherhino.org. 

The Second Ark Foundation, 

which has worked to 

preserve the African addax 

and the scimitar-horned 

Oryx, is working with South 

African wildlife organizations 

to handle the logistics. 

“There is a lot of red tape 

on both sides and there 

would be a need to quarantine 

the animals,” Seale 

said. “Most of the rhinos 

that would be transferred 

are orphan, baby rhinos.” 

The challenges are formidable. 

Most of the rhinos 

would be under three years 

old and younger animals 

would have to be fed milk 

by bottle. They are typically 

darted in South Africa, and 

would then be transported 

by truck and shipped as air 

cargo. 

Rhinos are not the best 

of travelers. Their health 

could be put in jeopardy 

by a long trip and airplanes 

can only move a handful 

at a time. But if it goes according 

to plan, the rhinos 

would be housed on ranches 

in south or southwest 

Texas that can run in size to 

100,000 acres-plus (40,000 

ha-plus).


NEWS 

APC government to inherit $60bn 

debt from Jonathan, says Osinbajo 

KEHINDE ABDULSALAM, Abuja 

Yemi Osinbajo, the 

vice presidentelect, 

on Wednesday 

disclosed that 

the incoming administration 

of the All Progressives 

Congress (APC) 

led Federal Government 

will be inheriting $60 billion 

as foreign and domestic 

debts from the outgoing 

administration of President 

Goodluck Jonathan. 

Speaking at the opening 

of a two-day policy dialogue 

on the implementation of 

the agenda for change, Osinbajo 

also said current estimate 

revealed that about 

110 million Nigerians are 

suffering from poverty. 

He also lamented the 

state of the Nigerian economy, 

saying it was unfortunate 

that the nation has to spend 

21 percent of its 2015 budget 

PENGASSAN urges declaration of 

state of emergency in oil, gas sector 

on debt servicing, while twothirds 

of the states in the 

country cannot pay salaries 

due to dwindled resources. 

According to him, “The 

economy is currently in 

perhaps its worst moment 

in history, local and international 

debt stands at $60 

billion. Our debt servicing 

bill for 2015 is N953.6 billion, 

about 21 percent of our budget. 

On account of severely 

dwindled resources, over 

two-thirds of the states in 

Nigeria owe salaries. Federal 

institutions are not in 

much better shape. Today, 

the nation borrows to fund 

recurrent expenditure. 

“The figures of extreme 

poverty in our society- 110 

million by current estimatesmakes 

it clear that our biggest 

national problem is 

the extreme poverty of the 

majority. Thus, no analysis 

is required to conclude that 

Oil workers under 

the aegis of Petroleum 

and Natural 

Gas Senior 

Staff Association of Nigeria 

(PENGASSAN) have called 

on the in-coming Federal 

Government to declare a 

state of emergency in the 

oil and gas sector of the 

economy to address the 

plethora of challenges currently 

plaguing the sector. 

Some of the challenges, 

according to the workers, 

are pipeline vandalism, 

crude oil theft, state of the 

refineries, persistent scarcity 

of petroleum products, 

subsidy payment controversies, 

divestment, illegal 

transfer or allocation of 

oil blocks, irregular Joint 

Venture (JV) funding with 

emphasis on delay in cash 

call payment, inadequate 

funding of government 

agencies in the oil and gas 

sector and undue interference 

in the management of 

government agencies. 

Francis Johnson, the 

president of the union, who 

made the call, said that 

many issues in the sector 

required urgent attention 

from the government to reposition 

the industry for efficient 

and effective delivery 

dealing with poverty and its 

implications is a priority. 

“In the course of the election 

campaign, we ran an 

issues-based campaign that 

identified certain areas of 

public policy as high priorities 

for propelling Nigeria forward. 

We addressed the challenges 

of the economy, insecurity, 

corruption and jobs creation. 

“We spoke on the challenge 

of providing opportunities 

for self-actualisation to 

millions of our young people 

who face an uncertain future 

with understandable 

anxiety. We also addressed 

the challenge of providing 

for the most vulnerable segments 

of our population 

by equipping them with 

the tools to emerge from 

the crippling limitations of 

poverty to achieve dignified 

and productive citizenship. 

“This is also against the 

backdrop of a highly unequal 

society in which, by 

some reckoning, the largest 

chunk of the benefits of our 

national wealth accrues to 

a small percentage of our 

population. Our manifesto 

offered a vision of shared 

prosperity and socio-economic 

inclusion for all Nigerians 

that leaves no one 

behind in the pursuit of a 

prosperous and fulfilling life. 

“Our goal this morning 

is to interrogate these positions 

and propositions 

before a wider audience 

and to launch a robust public 

conversation on policy 

directions and priorities 

that will help inform our 

administration’s approach 

in the next four years. This 

forum exemplifies the sort of 

consultative and consensual 

approach to policy-making 

that our party and the new 

administration intend to 

model in office.” 

President Goodluck Jonathan (m); Vice-President Namadi Sambo (5th-l); Musliu Obanikoro (4th-r), minister of state 2 for 

foreign affairs, and a delegation of ambassadors of African countries to Nigeria after their meeting with President Jonathan 

at the Presidential Villa in Abuja. 

JOSHUA BASSEY 

of its benefits to Nigerians. 

He noted that one major 

first step to take by the 

government would be the 

convening of an all-inclusive 

stakeholders’ forum 

to critically examine and 

proffer workable and enduring 

solutions to all the 

problems in the interest of 

the economy. 

“All the subsectors of the 

oil and gas industry have 

one challenge or the other 

and all these challenges are 

affecting the deliveries of 

the benefits of our God-given 

hydrocarbon resources 

to the country and the entire 

people of Nigeria. 

“These challenges are results 

of past neglects, wrong 

policies and policy summersault 

in some areas of 

the sub-sectors. All these 

are inflicting pains on Nigerians 

who ought to be 

enjoying the benefits of the 

natural resources that God 

bequeathed to the country.” 

The union leader said 

that the stakeholders’ forum 

will chart ways of attending 

to the critical challenges 

affecting the industry and 

evolve a framework that will 

facilitate its stability, adding 

that machineries should be 

set in motion for periodic 

meetings to evaluate and review 

the success and workability 

of the framework. 

BUSINESS DAY 

41 

Reps amend House order to 

override president’s veto 


The House of Representatives 

on 

Wednesday took 

hard stance and 

amended the House standing 

rules with the introduction 

of new clauses which 

provide for overriding of 

president’s veto. 

The resolution was 

passed after the adoption of 

a motion on the amendment 

of standing orders XIII Rule 

98 of the House of Representatives 

sponsored by Albert 

Sam-Tsokwa, chairman, 

House Committee on Rules 

and Business and 22 others. 

Accordingly, the House 

introduced sub-rules 10-13 

which provides that “The 

final copy of the clauses in 

the bill that received the support 

of two-thirds majority of 

the state Houses of Assembly 

shall be complied and if 

passed by a concurrent resolution 

of the House, shall 

thereafter be transmitted to 

the president. 

“Where the president 

withholds assents, the bill, 

if passed again by two-thirds 

majority of members of the 

House, as required by Section 

58 of the constitution of the 

Federal Republic of Nigeria, 

1999, shall become law. 

“Notwithstanding the 

provisions in these Rules, 

the process of passage of a 

constitution alteration bill 

shall continue from one session 

to the other and from 

one Assembly to another as 

if the tenure of each preceding 

session or Assembly had 

not come to an end. 

“When all requirements 

of sub-rules 1-10 have been 

met and the president either 

withholds his assent 

or fails to communicate the 

withholding thereof, or any 

circumstance arises which 

makes it impracticable for 

the National Assembly to 

consider the issue of overriding 

the president’s veto 

before the end of the tenure 

of the Assembly, the succeeding 

Assembly may, 

upon such bill being gazetted 

again and circulated, 

resolve to commence the 

process of veto override 

under Section 58 of the 

constitution of the Federal 

Republic of Nigeria, 1999.” 

The resolution came on 

the heels of the recent exercise 

of veto power by President 

Goodluck Jonathan 

on the fourth alteration of 

the 1999 constitution, 2015. 

While ruling on the motion, 

Emeka Ihedioha, deputy 

speaker, who presided 

on the plenary noted that 

the imbroglio over the just 

concluded constitutional 

amendment necessitated 

the move by the House. 

FirstBank introduces USSD transfers 

First Bank of Nigeria 

Limited, Nigeria’s 

most valuable bank 

brand, has again asserted 

its leadership in mobile 

financial offerings with the introduction 

of USSD transfers. 

The bank has been offering 

mobile payment 

services to both banked 

and unbanked customers 

through its Unstructured 

Supplementary Service 

Data (USSD) - *894#. 

The USSD is a protocol 

used by GSM cellular telephones 

to communicate 

with the service provider’s 

computers. USSD stands 

for Unstructured Supplementary 

Services Data and 

the USSD Gateway is based 

upon the ability of the delivery 

agent or the source 

to send and receive USSD 

messages. Unlike similar 

services (SMS and MMS), 

which are store and forward 

based, USSD establishes a 

real time session between 

mobile handset and application 

handling the service 

FirstBank has improved 

its USSD “*894#” access 

channel to become quicker 

and more robust with the 

incorporation of various 

banking services into USSD 

codes. To transfer money, 

simply dial *894# and select 

1; dial *894# and select 2 to 

withdraw money, dial *894# 

and select 3 to make purchase; 

dial *894# and select 

4 to pay bills; dial *894# and 

select 5 to buy airtime; and 

dial *894# and select 7 to 

manage account. 

According to a statement 

by Folake Ani-Mumuney, 

group head, marketing & 

corporate communications, 

the bank would continue 

to create customer friendly 

products to dominate the 

mobile money market, 

drive financial inclusion, 

while enhancing banking 

convenience and security 

for its customers. 

In addition to the quick 

service codes, FirstBank has 

a large bouquet of services 

available on the USSD platforms 

which include funds 

transfers to mobile wallet 

through telephone numbers, 

FirstBank accounts, 

other bank accounts and 

mobile money operators; 

withdrawals from agents 

locations, FirstBank ATMs 

and the bank; purchase 

of goods and services at 

merchant locations across 

the country; bill payments 

such as DSTV, PHCN, water 

board, amongst others; purchase 

of airtime from MTN, 

Airtel, Globacom, and Etisalat; 

check balance; check 

and print mini statement.




EU lawmakers seek ban on 

“blood metals” in surprise vote 

• Vote reflect rise of protest, anti-business parties 

• Parliament’s position seen as too onerous on EU companies 

U.S. Senator and Republican presidential candidate Marco Rubio (R-FL) laughs as he listens to a comment from U.S. Senator Ron 

Johnson (R-WI) during a U.S. Senate Foreign Relations committee hearing on U.S.-Cuba relations on Capitol Hill in Washington May 20, 

2015. REUTERS 

Libya’s Lisco keeps the steel mill 

rolling despite war 

ULF LAESSING 

Libyan steelmaker 

Lisco is struggling 

to keep its mill rolling 

in a war zone, 

no easy feat when 

the power cuts off every night, 

shippers are reluctant to dock 

and foreign contractors are 

long gone. 

Lisco Chairman Mohamed 

Abdelmalik al-Faqih 

may have an office overlooking 

the Mediterranean, but 

the steel plant in Libya’s thirdlargest 

city Misrata looks 

more like a military base. A 

tank guards the melt shops, 

mills and furnaces, and the 

nearby port is protected by 

anti-aircraft guns. 

“The position of the com- 

Gulf banks increase lending footprints in Asia, Africa 

ARCHANA NARAYANAN 

An $85 million loan taken 

out by a Ugandan bank 

this year points to an 

emerging trend in international 

capital markets: the rise 

of the Gulf as a syndicated loan 

market for Africa and Asia. 

Stanbic Bank Uganda originally 

intended to raise $75 

million through the 18-month 

deal in January, but expanded 

that because of strong interest 

from banks wanting a slice of 

the business. 

The list of participating 

banks eventually included 

Dubai’s Emirates NBD, which 

was sole co-ordinator and 

bookrunner, mandated lead 

arranger Al Ahli Bank Kuwait 

, and Qatar’s Al Khalij 

Commercial Bank and Commercial 

Bank of Qatar as lead 

pany is not good, even worse 

than 2013 or 2014, (but) we 

are working,” Faqih told Reuters 

in an interview. 

Power and gas shortages 

are perhaps the biggest 

day-to-day challenge for the 

energy-hungry steel business 

as more than a dozen oilfields 

across Libya have been forced 

to shut due to protests, fighting 

and militant attacks. 

The Tripoli-based electricity 

ministry had forced Lisco, 

one of North Africa’s largest 

steelmakers, to cut output to 

one third of capacity for six 

months to save power. That’s 

on top of having to shut furnaces 

down each evening. 

The Libyan Iron and Steel 

Company (Lisco) is caught up 

in the armed struggle that has 

arrangers, as well as Western 

heavyweight Standard Chartered. 

“The Gulf banks have not 

faced the same regulatory and 

capital constraints that European 

banks have faced, so they 

are able to provide liquidity 

to African banks,” said Patrick 

Mweheire, chief executive of 

Stanbic Bank Uganda. 

Several years ago, Gulf 

banks largely participated as 

junior partners in international 

syndicated loans; they 

rarely took most of the key 

management roles in syndications 

or dominated them by 

volume of money provided. 

Over the last six months, 

several deals have suggested 

that picture is changing, for a 

wide variety of reasons - not 

all of them under the control 

of the Gulf banks. 

enveloped the country as two 

rival governments vie for control 

fours years after the ousting 

of Muammar Gaddafi. 

“The main problems are 

shortages of natural gas and 

electricity,” Faqih said. 

Yet the company hopes 

to keep output near steady 

this year compared to 2014, 

planning to produce between 

500,000 tonnes and 600,000 

tonnes of liquid steel, its main 

base product, in 2015. This is 

roughly in line with last year’s 

output, already hit hard by 

gas shortages. 

Output at iron plants will 

reach up to 700,000 tonnes 

or half of the annual target, 

Faqih said. Last year, it 

was around 800,000 tonnes, 

then only half the intended 

When ICBC Financial 

Leasing, a wholly owned unit 

of Industrial and Commercial 

Bank of China, raised a $500 

million, three-year loan last 

November, eight of the 10 

banks involved were from 

the Gulf. There were three 

mandated lead arrangers and 

bookrunners: Emirates NBD, 

Qatar National Bank and ICBC 

itself. 

South African bank FirstRand 

raised $235 million in 

a two-year loan last week; the 

entire deal was syndicated to 

nine Gulf lenders, with Emirates 

NBD the sole arranger. 

Other Asian companies 

to have tapped the Gulf loan 

market since last year include 

Indonesian auto financing 

firm Astra Sedaya Finance 

and airline Garuda Indonesia. 

Chinese equipment leasing 

amount. 

This included around 

300,000 tonnes of hot briquetted 

iron, a steel making 

ingredient, short of the goal 

of 500,000 tonnes. 

Lisco’s bar mill would produce 

350,000 tonnes, missing 

an original plan of 485,000 

tonnes, he said. The hot-strip 

mill would reach 250,000 

tonnes, short of a plan of 

332,000 tonnes. 

SHIPPERS RELUCTANT 

The firm has also struggled 

to persuade foreign shipping 

companies to dock at Misrata 

after the commercial port in 

the free zone was hit in January 

by war planes. 

“Sometimes it is difficult 

to fix a ship but eventually we 

succeed,” Faqih said. 

company Far East Horizon 

is currently arranging a Gulf 

loan. 

“Recently the leading 

banks in the GCC (Gulf Cooperation 

Council) have started 

to expand their footprint into 

Asia and Africa, and this development 

is providing a new 

source of bank liquidity in 

those markets,” said Jonathan 

Macdonald, global head of 

syndicated finance at National 

Bank of Abu Dhabi . 

LIQUIDITY 

The rise of the Gulf banks 

as syndicated lenders is partly 

a natural result of their growth 

over the last several years. 

They have opened opened 

branches and offices in Asia 

and Africa to take advantage 

of rapidly expanding trade and 

investment ties between those 

areas and the Gulf. 

ROBIN EMMOTT 

The European Parliament 

voted on 

Wednesday to ban 

all products that contain 

“blood metals” sold by 

African warlords, but the 

legislation is likely to be 

blocked by EU governments 

who fear it would impose 

an unrealistic burden on 

business. 

The surprise result 

marked a defeat for the probusiness 

European People’s 

Party (EPP), the parliament’s 

biggest grouping, 

who need fellow centrist 

allies to pass laws following 

last year’s EU elections 

where protest parties did 

well. 

The European Parliament 

voted 402 in favour 

versus 118 against with 171 

abstentions on a proposal to 

require companies, including 

electronics firms, that 

buy gold, tantalum, tin and 

tungsten to certify imports 

do not finance warlords in 

Africa. 

“Parliament votes for 

mandatory transparency 

against conflict minerals. 

Big success!” tweeted German 

Green Ska Keller after 

the vote in Strasbourg as 

some lawmakers broke out 

in applause while others 

stood in huddles, surprised 

by the result. 

The result is set to paralyse 

the bill because European 

Union governments 

say firms across the 28 EU 

countries cannot track materials 

from small mines all 

Tiger Brands’ Kenyan business 

hit by fraud allegations 

TJ STRYDOM 

Tiger Brands, South 

Africa’s biggest consumer 

foods manufacturer, 

said executives at its 

Kenyan business had cheated 

to reach targets as it reported 

flat first-half earnings also 

weighed down by a weak 

naira currency in Nigeria. 

Disciplinary action had 

been taken against senior 

personnel at the Haco Industries 

operation in Kenya, 

in which the company 

bought a 51 percent stake 

in 2008, Tiger Brands Chief 

Executive Peter Matlare told 

investors on Wednesday. 

Matlare said Geoffrey 

Kiarie, Haco’s managing 

director, had left the company 

and that the company 

planned to take legal action 

against him. Kiarie could 

not be reached for comment. 

the way through commodity 

exchanges to component 

manufacturers and the final 

product. 

Greens, centre-left and 

protest lawmakers from 

the far-left and far-right 

gained critical mass in the 

vote to challenge a more 

pro-business proposal from 

the European Commission 

that would make blood-free 

certification only voluntary. 

While party discipline 

is traditionally poor in the 

European Parliament, the 

result bodes poorly for the 

grand coalition that the 

centre-right and the centreleft 

had hoped to form to 

channel European Commission 

proposals through the 

751-seat body. 

Rights groups lobbied 

EU lawmakers to toughen 

up the Commission plan 

for a voluntary scheme, 

in a campaign backed by 

filmmaker Edward Zwick, 

whose hit “Blood Diamond” 

chronicled how gemstones 

financed war in Sierra Leone. 

Campaigners and some 

EU lawmakers said Europe 

should echo the U.S. law 

that requires companies 

such as Apple to check their 

suppliers use only “conflictfree” 

metals. 

But centre-right EU lawmaker 

Iuliu Winkler, who 

wants only smelters and 

refiners to be required to 

certify their imports, said 

the U.S. law was a failure because 

U.S. companies now 

try to avoid doing business 

with sub-Saharan Africa. 

“They were key executives 

right at the top. It was 

difficult to pick this up,” 

Matlare said, noting that auditors 

had failed to uncover 

the irregularities. 

Haco’s top executive 

allegedly influenced his 

colleagues, who had since 

faced disciplinary hearings, 

to pre-invoice sales and 

move stock to third party 

warehouses to make it look 

like they had hit their performance 

targets. 

Tiger Brands’ shares fell 

4 percent at 295.40 rand at 

1450 GMT after the disclosure 

of the Kenyan problems. 

Tiger Brands, which 

makes cereal, energy drinks, 

pasta and rice, also said it 

incurred significant foreign 

exchange losses in Nigeria, 

where its Dangote Flour 

Mills business was hit by a 

25 percent devaluation in 

the naira.



BUSINESS DAY 

43 

Burundi president 

appeals for 

ethnic harmony, 

soldier killed 

• President urges ethnic unity between Hutus, Tutsis 

• “Blood spilt a lesson to us all” - Nkurunziza 

GORAN TOMASEVIC AND 

EDMUND BLAIR 

Burundian President 

Pierre 

Nkurunziza appealed 

for ethnic 

harmony on 

Wednesday, addressing fears 

that weeks of political unrest 

could trigger another bout of 

bloodletting between Hutus 

and Tutsis in the heart of 

Africa’s Great Lakes. 

In an address on national 

television, Nkurunziza, who 

is under pressure from street 

protesters to end his bid for 

a third term, said the risk of 

the former Belgian colony 

descending once again into 

genocide or civil war was 

too great. 

“No Burundian wants to 

revive the tensions of ethnic 

division or any other nature,” 

Nkurunziza, who has mixed 

Nigeria’s outgoing president approves 2015 budget 

Outgoing Nigerian 

President Goodluck 

Jonathan has approved 

the 4.5 trillion naira 

($22.6 billion) budget for 

2015, which was passed by 

parliament in late April, the 

president’s spokesman said 

on Wednesday. 

The budget is 3.2 percent 

smaller than last year’s as 

Africa’s biggest oil producer 

is facing a cash crunch 

following the halving of 

global crude prices in the 

past year. 

It was passed later than 

BHP Billiton Plc will pay 

$25 million to settle 

charges that it violated 

a U.S. anti-bribery law by 

failing to properly monitor a 

program under which it paid 

for dozens of foreign government 

officials to attend the 

2008 Summer Olympics in 

Beijing. 

The accord resolves U.S. 

Securities and Exchange 

Commission charges that 

BHP, one of the world’s biggest 

mining companies, 

violated the Foreign Corrupt 

Practices Act when it 

sponsored the attendance of 

Hutu-Tutsi parentage, said. 

“The blood that was spilt 

in the past has taught us a 

lesson.” 

More than 20 people 

have been killed in the unrest, 

which includes a failed 

military coup a week ago, 

and there are fears of more 

bloodshed as determined 

anti-Nkurunziza demonstrators 

confront an intensifying 

crackdown by security 

forces. 

There have been few 

signs so far of the struggle 

being driven by anything 

other than the desire of 

urban Burundians to stop 

Nkurunziza seeking another 

term, which they say breaks 

the constitution and a peace 

deal that ended civil war in 

2005. 

An estimated 300,000 

people died in the conflict 

in Burundi, which has the 

usual in part due to the 

presidential election on 

March 28. 

“I can confirm to you 

that Mr. President had 

signed the 2015 budget into 

law some days back without 

the usual fanfare,” spokesman 

Reuben Abati said. 

There could be supplements 

to the budget after 

incoming president Muhammadu 

Buhari takes office 

next week. He has yet to 

outline his economic policy 

although he is expected to 

crack down on excessive 

officials who were “directly 

involved with, or in a position 

to influence” its business and 

regulatory affairs. 

BHP, which has offices 

in London and Melbourne, 

Australia, neither admitted 

nor denied wrongdoing in 

agreeing on Wednesday to 

settle the civil case. It also said 

the U.S. Department of Justice 

ended a related criminal 

probe without taking action, 

and that all U.S. investigations 

into the matter are complete. 

The SEC said BHP invited 

176 government officials to 

attend the Olympics at company 

expense, including 98 

who worked for state-owned 

same ethnic mix as neighbouring 

Rwanda, where 

800,000 - most of them 

Tutsis and moderate Hutus 

- were killed in a 1994 

genocide. 

However, with people 

being killed almost daily 

on the streets of Bujumbura 

and more than 110,000 

seeking refuge in Tanzania, 

Rwanda and Democratic 

Republic of Congo, rights 

groups fear it is only a matter 

of time before ethnicity 

spending by government 

officials, including the use 

of official cars. 

The finance ministry was 

forced to revise down the 

assumed oil price in the 

budget several times before 

submitting it at $65 a barrel 

in December. Lawmakers 

ultimately passed the budget 

at an even lower level of 

$53 a barrel. 

The fuel subsidy, a 

heavy burden on the nation’s 

purse, was also subsequently 

slashed by 90 

percent because of low 

income. 

The government relies 

on oil sales for up to 80 percent 

of revenues and an expensive 

election campaign 

helped drain its already 

limited rainy day fund. 

The finance ministry 

said earlier this month that 

it has already been forced to 

use up half of its budgeted 

borrowing allowance to pay 

overheads and salaries and 

has not released any funds 

for capital expenditure so 

far this year. 

U.S. SEC fines BHP Billiton $25 mln in 2008 Olympics bribery probe 

JONATHAN STEMPEL 

Workers clean up an oil slick along the coast of Refugio State Beach in Goleta, California, United States, May 20, 2015. A pipeline ruptured 

along the scenic California coastline on Tuesday, spilling some 21,000 gallons (79,000 liters) of oil into the ocean and on beaches before 

it could be secured, a U.S. Coast Guard spokeswoman said. REUTERS 

becomes a factor. 

“The situation is so unstable 

and volatile that every 

day appears to be a flashpoint,” 

said Carina Tertsakian, 

Human Rights Watch’s 

senior Burundi researcher. 

“The demonstrators are 

not backing down and the 

government is intensifying 

its crackdown.” 

On Wednesday, a soldier 

was shot dead on the 

streets of the capital, with 

witnesses saying he had 

enterprises that were customers 

or suppliers, under a 

“global hospitality” program 

tied to its sponsorship of the 

games. 

According to the SEC, 60 

invitees plus some spouses 

and guests ultimately attended, 

mainly from Africa and 

Asia, and enjoyed packages 

worth $12,000 to $16,000 that 

included luxury hotels, event 

tickets and sightseeing. 

The SEC said BHP did not 

properly monitor the invitation 

process or train employees to 

ensure that the program would 

remain untainted by bribery. 

“BHP Billiton recognized 

that inviting government officials 

to the Olympics created 

a heightened risk of violating 

anti-corruption laws, yet the 

company failed to implement 

sufficient internal controls to 

address that heightened risk,” 

said Andrew Ceresney, director 

of the SEC enforcement 

division. 

In one illustration, the SEC 

said BHP extended an invitation 

to a provincial governor 

in the Democratic Republic 

of the Congo who the company 

thought “could be the 

key” to a copper exploration 

transaction it was negotiating. 

The governor accepted the 

invitation but later canceled, 

the SEC said. 

been hit in the chest by a 

round fired by police, an 

incident that could inflame 

tensions between different 

wings of the security forces. 

Army spokesman Gasper 

Baratuza could not confirm 

details of the soldier’s death. 

In another incident in 

the volatile Musaga neigbourhood 

of Bujumbura, 

a Reuters photographer 

monitoring protests heard 

a loud explosion in an area 

from which a slightly injured 

South African union says 2,000 

workers strike at mobile group MTN 

TIISETSO MOTSOENENG 

About 2,000 South 

African workers of 

MTN Group went on 

strike on Wednesday demanding 

more pay, the first 

major industrial action to 

hit Africa’s biggest mobile 

phone operator since its 

formation in 1994. 

About 700 workers, clad 

in red T-shirts and carrying 

placards with slogans such 

as “MTN integrity is gone,” 

temporarily blocked the 

main road leading to MTN’s 

head office, where they delivered 

their demands. 

South Africa’s mostly 

black labour force is increasingly 

restive two decades 

after the end of apartheid, 

with perceptions prevalent 

that the earnings made in 

a range of industries have 

not flowed fairly to workers. 

“MTN continues to rake 

in profits as the biggest mobile 

operator on the continent 

and cannot deny the 

very people who make it 

possible to prosper the right 

to share in its success,” Thabo 

Magalane, deputy general 

secretary of the Communications 

Workers Union, said 

in an address to workers. 

The CWU wants a 10 

policeman walked away 

soon afterwards. 

“The protesters have 

thrown a grenade,” an officer 

at the scene shouted. 

“ARMY NOT DIVIDED” 

Nkurunziza, a 51-yearold 

former sports lecturer, 

has so far yielded no ground 

to the protesters, whom his 

government has tried to 

associate with the failed 

military takeover, a tactic 

that has made no dent in the 

numbers on the streets. 

percent pay rise, a 16 percent 

bonus payment and 

higher allowances for work 

done over weekends and 

holidays. 

“We can no longer tolerate 

the arrogance and plain 

refusal of the company to 

meet legitimate, reasonable 

demands of workers,” 

Magalane said. 

Ahmad Farouk, head 

MTN’s South African operations, 

had to be escorted 

by police back to the company’s 

offices through the 

crowd of protesters. 

MTN, along with rivals 

in Africa’s most advanced 

economy, is trying to contain 

costs in the face of 

tough competition that has 

hit profit margins. 

The company, which reported 

a 9 percent increase in 

full-year profit in March, employs 

about 6,500 people in its 

home market, where it trails 

rival Vodacom by subscribers. 

MTN spokesman Chris 

Maroleng had no comment. 

MTN’s shares slid 3.3 

percent to 228.01 rand by 

1231 GMT, on track for their 

biggest daily percentage decline 

in about two months 

and lagging closest rival 

Vodacom Group which was 

down 1.4 percent.



LIVE @ THE STOCK EXCHANGE 

Stock Market Update As At Wednesday 20 May 2015 

Company 

No of 

Deals 

Closing 

Price (N) 

Quantity 

Traded 

Value of 

Shares (N) 

Company 

No of 

Deals 

Closing 

Price (N) 

Quantity 

Traded 

Value of 

Shares (N) 

2ND-TIER SECURITIES 

AGRICULTURE 

Crop Production 

FTN COCOA PROCESSORS PLC 1 0.50 200,000 100,000.00 

OKOMU OIL PALM PLC. 17 28.90 156,855 4,500,826.07 

PRESCO PLC 51 30.69 2,061,734 63,280,710.86 

Crop Production Totals 69 2,418,589 67,881,536.93 

Livestock/Animal Specialties 

LIVESTOCK FEEDS PLC. 35 2.45 1,616,809 3,913,588.31 

Livestock/Animal Specialties Totals 35 1,616,809 3,913,588.31 

AGRICULTURE Totals 104 4,035,398 71,795,125.24 

CONGLOMERATES 

Diversified Industries 

TRANSNATIONAL CORPORATION OF NIGERIA PLC 136 3.20 12,076,399 38,414,915.67 

U A C N PLC. 48 41.40 1,839,813 76,161,914.09 

Diversified Industries Totals 184 13,916,212 114,576,829.76 

CONGLOMERATES Totals 184 13,916,212 114,576,829.76 

CONSTRUCTION/REAL ESTATE 

Building Structure/Completion/Other 

COSTAIN (W A) PLC. 5 0.81 63,500 49,925.00 

Building Structure/Completion/Other Totals 5 63,500 49,925.00 

Infrastructure/Heavy Construction 

JULIUS BERGER NIG. PLC. 11 51.70 25,388 1,316,697.23 

Infrastructure/Heavy Construction Totals 11 25,388 1,316,697.23 

Real Estate Development 

UACN PROPERTY DEVELOPMENT CO. LIMITED 12 10.40 39,868 419,972.55 

Real Estate Development Totals 12 39,868 419,972.55 

Real Estate Investment Trusts (REITs) 

UPDC REAL ESTATE INVESTMENT TRUST 2 10.00 50,000 500,005.00 

Real Estate Investment Trusts (REITs) Totals 2 50,000 500,005.00 

CONSTRUCTION/REAL ESTATE Totals 30 178,756 2,286,599.78 

CONSUMER GOODS 

Automobiles/Auto Parts 

DN TYRE & RUBBER PLC 2 0.50 37,000 18,500.00 

Automobiles/Auto Parts Totals 2 37,000 18,500.00 

Beverages--Brewers/Distillers 

CHAMPION BREW. PLC. 33 6.74 714,291 4,828,571.90 

GOLDEN GUINEA BREW. PLC. 1 0.93 7,800 6,942.00 

GUINNESS NIG PLC 57 159.05 1,190,314 190,389,906.17 

INTERNATIONAL BREWERIES PLC. 3 20.00 6,833 136,660.00 

NIGERIAN BREW. PLC. 155 154.60 9,494,408 1,471,466,946.43 

PREMIER BREWERIES PLC 1 3.43 874 2,849.24 

Beverages--Brewers/Distillers Totals 250 11,414,520 1,666,831,875.74 

Beverages--Non-Alcoholic 

7-UP BOTTLING COMP. PLC. 22 178.00 15,042 2,648,802.48 

Beverages--Non-Alcoholic Totals 22 15,042 2,648,802.48 

Food Products 

DANGOTE FLOUR MILLS PLC 37 4.50 1,119,685 5,037,503.80 

DANGOTE SUGAR REFINERY PLC 51 6.49 554,858 3,642,999.92 

FLOUR MILLS NIG. PLC. 100 34.98 1,423,707 49,732,953.12 

HONEYWELL FLOUR MILL PLC 35 3.60 699,318 2,479,501.30 

MULTI-TREX INTEGRATED FOODS PLC 1 0.50 20,000 10,000.00 

NATIONAL SALT CO. NIG. PLC 38 8.15 803,511 6,556,584.49 

U T C NIG. PLC. 1 0.50 250 125.00 

Food Products Totals 263 4,621,329 67,459,667.63 

Food Products--Diversified 

CADBURY NIGERIA PLC. 27 39.90 181,573 7,017,586.12 

NESTLE NIGERIA PLC. 123 880.00 1,059,642 933,665,160.49 

Food Products--Diversified Totals 150 1,241,215 940,682,746.61 

Household Durables 

VITAFOAM NIG PLC. 60 5.29 1,460,827 7,411,098.46 

VONO PRODUCTS PLC. 4 1.02 133,000 137,310.00 

Household Durables Totals 64 1,593,827 7,548,408.46 

Personal/Household Products 

P Z CUSSONS NIGERIA PLC. 56 29.29 1,039,925 30,172,041.46 

UNILEVER NIGERIA PLC. 31 45.10 485,808 21,909,640.70 

Personal/Household Products Totals 87 1,525,733 52,081,682.16 

CONSUMER GOODS Totals 838 20,448,666 2,737,271,683.08 

FINANCIAL SERVICES 

Banking 

ACCESS BANK PLC. 201 6.21 25,238,742 159,226,541.23 

DIAMOND BANK PLC 67 4.49 6,499,300 29,223,707.00 

ECOBANK TRANSNATIONAL INCORPORATED 64 21.60 1,611,749 35,229,932.77 

FIDELITY BANK PLC 100 1.90 7,067,974 13,313,898.63 

GUARANTY TRUST BANK PLC. 269 29.30 9,784,066 286,577,904.16 

SKYE BANK PLC 355 2.87 56,792,969 160,528,918.16 

STERLING BANK PLC. 172 2.18 11,494,211 24,631,364.15 

UNITED BANK FOR AFRICA PLC 277 5.32 40,174,115 214,628,142.81 

UNION BANK NIG.PLC. 36 10.50 649,922 6,776,648.76 

UNITY BANK PLC 114 2.30 8,282,845 19,338,488.31 

WEMA BANK PLC. 4 1.04 117,260 122,000.40 

ZENITH INTERNATIONAL BANK PLC 245 22.70 12,776,724 290,018,728.50 

Banking Totals 1,904 180,489,877 1,239,616,274.88 

Insurance Carriers, Brokers and Services 

AIICO INSURANCE PLC. 40 1.00 4,349,755 4,356,637.16 

CONTINENTAL REINSURANCE PLC 22 1.00 3,572,850 3,545,665.50 

CORNERSTONE INSURANCE COMPANY PLC. 2 0.50 20,000 10,000.00 

CONSOLIDATED HALLMARK INSURANCE PLC 2 0.50 105,000 52,500.00 

INTERNATIONAL ENERGY INSURANCE COMPANY PLC 1 0.53 1,200 612.00 

LASACO ASSURANCE PLC. 4 0.50 1,577,001,000 788,500,500.00 

LAW UNION AND ROCK INS. PLC. 3 0.50 7,800 3,900.00 

MANSARD INSURANCE PLC 9 3.00 479,691 1,403,089.81 

MUTUAL BENEFITS ASSURANCE PLC. 3 0.50 46,550 23,275.00 

N.E.M INSURANCE CO (NIG) PLC. 60 0.84 15,722,956 13,179,476.27 

NIGER INSURANCE CO. PLC. 2 0.50 401,000 200,500.00 

SOVEREIGN TRUST INSURANCE PLC 1 0.50 20,000 10,000.00 

UNIVERSAL INSURANCE COMPANY PLC 2 0.50 70,000 35,000.00 

WAPIC INSURANCE PLC 37 0.53 3,022,839 1,615,421.15 

Insurance Carriers, Brokers and Services Totals 188 1,604,820,641 812,936,576.89 

Micro-Finance Banks 

NPF MICROFINANCE BANK PLC 20 1.27 1,285,763 1,662,541.90 

Micro-Finance Banks Totals 20 1,285,763 1,662,541.90 

Mortgage Carriers, Brokers and Services 

RESORT SAVINGS & LOANS PLC 2 0.50 510,000 255,000.00 

Mortgage Carriers, Brokers and Services Totals 2 510,000 255,000.00 

Other Financial Institutions 

AFRICA PRUDENTIAL REGISTRARS PLC 31 3.08 278,650 850,163.29 

CUSTODIAN AND ALLIED PLC 27 4.00 3,343,829 13,384,768.40 

DEAP CAPITAL MANAGEMENT & TRUST PLC 1 0.67 37,500 24,000.00 

FBN HOLDINGS PLC 378 9.28 17,349,941 161,476,283.93 

FCMB GROUP PLC. 99 3.10 9,259,266 28,648,645.52 

ROYAL EXCHANGE PLC. 3 0.50 85,500 42,750.00 

STANBIC IBTC HOLDINGS PLC 28 30.00 343,045 10,291,665.40 

UBA CAPITAL PLC 73 1.54 3,463,182 5,334,131.48 

Other Financial Institutions Totals 640 34,160,913 220,052,408.02 

FINANCIAL SERVICES Totals 2,754 1,821,267,194 2,274,522,801.69 

HEALTHCARE 

Healthcare Providers 

UNION DIAGNOSTIC & CLINICAL SERVICES PLC 1 0.50 200,000 100,000.00 

Healthcare Providers Totals 1 200,000 100,000.00 

Pharmaceuticals 

EVANS MEDICAL PLC. 3 1.99 4,000 7,600.00 

FIDSON HEALTHCARE PLC 7 3.30 93,273 303,845.47 

GLAXO SMITHKLINE CONSUMER NIG. PLC. 48 44.00 585,533 25,685,298.98 

MAY & BAKER NIGERIA PLC. 25 1.78 1,212,402 2,153,377.52 

NEIMETH INTERNATIONAL PHARMACEUTICALS PLC 10 1.05 421,600 443,216.50 

NIGERIA-GERMAN CHEMICALS PLC. 1 6.32 2,000 12,020.00 

PHARMA-DEKO PLC. 5 2.23 101,755 226,913.65 

Pharmaceuticals Totals 99 2,420,563 28,832,272.12 

HEALTHCARE Totals 100 2,620,563 28,932,272.12 

ICT 

IT Services 

NCR (NIGERIA) PLC. 5 11.02 82,000 904,780.00 

IT Services Totals 5 82,000 904,780.00 

Processing Systems 

CHAMS PLC 1 0.50 1,000 500.00 

Processing Systems Totals 1 1,000 500.00 

ICT Totals 6 83,000 905,280.00 

INDUSTRIAL GOODS 

Building Materials 

ASHAKA CEM PLC 23 21.50 199,417 4,256,919.28 

BERGER PAINTS PLC 16 10.00 102,516 1,015,267.59 

CAP PLC 19 41.50 188,335 7,779,202.62 

CEMENT CO. OF NORTH.NIG. PLC 22 10.51 155,560 1,632,900.26 

DANGOTE CEMENT PLC 27 177.64 159,555 28,364,645.60 

FIRST ALUMINIUM NIGERIA PLC 1 0.50 10,000 5,000.00 

LAFARGE AFRICA PLC. 29 96.17 146,427 14,116,562.78 

Building Materials Totals 137 961,810 57,170,498.13 

Packaging/Containers 

BETA GLASS CO PLC. 15 34.67 590,651 20,787,546.66 

Packaging/Containers Totals 15 590,651 20,787,546.66 

INDUSTRIAL GOODS Totals 152 1,552,461 77,958,044.79 

NATURAL RESOURCES 

Metals 

ALUMINIUM EXTRUSION IND. PLC. 1 10.43 100 991.00 

Metals Totals 1 100 991.00 

NATURAL RESOURCES Totals 1 100 991.00 

OIL AND GAS 

Energy Equipment and Services 

JAPAUL OIL & MARITIME SERVICES PLC 5 0.50 445,180 222,590.00 

Energy Equipment and Services Totals 5 445,180 222,590.00 

Integrated Oil and Gas Services 

OANDO PLC 271 18.00 7,115,384 127,215,114.82 

Integrated Oil and Gas Services Totals 271 7,115,384 127,215,114.82 

Petroleum and Petroleum Products Distributors 

CONOIL PLC 36 41.91 65,267 2,647,025.67 

ETERNA PLC. 19 2.78 431,437 1,183,806.15 

FORTE OIL PLC. 74 186.99 138,446 25,307,098.21 

MOBIL OIL NIG PLC. 13 154.00 41,099 6,266,821.94 

TOTAL NIGERIA PLC. 12 150.51 4,507 689,868.62 

Petroleum and Petroleum Products Distributors Totals 154 680,756 36,094,620.59 

Exploration and Production 

SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD 25 386.00 26,570 10,263,336.70 

Exploration and Production Totals 25 26,570 10,263,336.70 

OIL AND GAS Totals 455 8,267,890 173,795,662.11 

SERVICES 

Courier/Freight/Delivery 

RED STAR EXPRESS PLC 6 5.00 126,100 615,742.75 

TRANS-NATIONWIDE EXPRESS PLC. 13 1.05 371,858 390,450.90 

Courier/Freight/Delivery Totals 19 497,958 1,006,193.65 

Employment Solutions 

C & I LEASING PLC. 47 0.66 7,231,375 4,812,669.31 

Employment Solutions Totals 47 7,231,375 4,812,669.31 

Hotels/Lodging 

IKEJA HOTEL PLC 8 3.90 91,500 339,825.00 

TRANSCORP HOTELS PLC 1 9.63 500 4,575.00 

Hotels/Lodging Totals 9 92,000 344,400.00 

Media/Entertainment 

DAAR COMMUNICATIONS PLC 2 0.50 21,000 10,500.00 

Media/Entertainment Totals 2 21,000 10,500.00 

Printing/Publishing 

ACADEMY PRESS PLC. 2 1.05 72,422 76,043.10 

LEARN AFRICA PLC 8 1.15 66,610 75,551.50 

UNIVERSITY PRESS PLC. 6 6.00 63,248 360,627.03 

Printing/Publishing Totals 16 202,280 512,221.63 

Road Transportation 

ASSOCIATED BUS COMPANY PLC 13 0.60 152,700 89,888.00 

Road Transportation Totals 13 152,700 89,888.00 

Transport-Related Services 

AIRLINE SERVICES AND LOGISTICS PLC 26 2.36 418,721 978,378.10 

NIGERIAN AVIATION HANDLING COMPANY PLC 34 6.10 765,221 4,607,360.81 

Transport-Related Services Totals 60 1,183,942 5,585,738.91 

Support and Logistics 

CAVERTON OFFSHORE SUPPORT GRP PLC 7 3.51 73,900 255,925.30 

Support and Logistics Totals 7 73,900 255,925.30 

SERVICES Totals 173 9,455,155 12,617,536.80 

EQTY Board Totals 4,797 1,881,825,395 5,494,662,826.37 

Equity Activity Totals 4,797 1,881,825,395 5,494,662,826.37


45



LIVE @ THE STOCK EXCHANGE 

GAINERS 

Top Gainers/Losers as at Wednesday 20 May 2015 

Company Opening Closing Change 

MOBIL 151 154 3 

NB 154 154.6 0.6 

ASHAKACEM 21 21.5 0.5 

SKYEBANK 2.61 2.87 0.26 

OANDO 17.75 18 0.25 

LOSERS 

Company Opening Closing Change 

NESTLE 905.02 880 -25.02 

FO 188.99 186.99 -2 

BETAGLAS 36.38 34.67 -1.71 

PRESCO 32.3 30.69 -1.61 

NCR 12.19 11.02 -1.17 

Market Statistics as at Wednesday 20 May 2015 

ASI (Points) 34,533.40 

DEALS (Numbers) 4,797.00 

VOLUME (Numbers) 1,881,825,395.00 

VALUE (N billion) 5.494 

MARKET CAP (N Trn) 11.733 

Sell pressure pushes YtD 

CIS parleys varsity students 

on investor education 

returns to red zone 


With only 

19 gaine 

r s 

against 

36 losers 

yesterday, the yearto-date 

(YtD) returns 

of the Nigerian equities 

market has re-entered 

the red zone at -0.36 percent. 

As sell pressure persists 

on the trading 

floor of Nigerian Stock 

Exchange (NSE), the 

benchmark performance 

indicator All Share Index 

(ASI) decreased yesterday 

by 0.50 percent. 

The All Share Index 

closed at 34,533.40 

points against the preceding 

day’s level of 

34,706.93 points while 

market capitalisation 

closed at N11.733trn 

against preceding level 

of N11.792trn, an indication 

that investors lost 

about N59billion from 

the value of their stocks 

at the Nigerian bourse. 

Analysis of trade 

shows volume increased 

by 426.78 percent, 

from 357.23 million to 

1881.82million, while the 

Unity Bank plc is 

targeting profit 

before tax (PBT) 

of N30.41bn in 

2017, according to Henry 

James Semenitari, managing 

director of the bank. He 

disclosed this at the bank’s 

‘Facts behind the figures’ 

held at the Nigerian Stock 

Exchange (NSE) in Lagos. 

According to Semenitari, 

the bank was targeting 

a profit before tax of 

N20.26bn for the financial 

year ending December 

31, 2015 and N26.13bn in 

2016 financial year, adding 

that the bank would 

achieved the target barring 

total value of stock traded 

increased by 32.41 

percent from N4.15bn to 

N5.49bn in 4,797 deals. 

Nestle Nigeria plc led 

the losers’ table after 

its share price declined 

from N905.02 to N880, 

losing N25.02; Forte Oil 

plc dipped by N2, from 

N188.99 to N186.99; Beta 

Glass plc also declined 

from N36.38 to N34.67, 

losing N1.71; Presco plc 

lost N1.61, from N32.3 

to N30.69; while NCR plc 

declined from N12.19 to 

N11.02, losing N1.17. 

“We expect to see further 

sell-offs in the market 

in the next trading 

day as investors’ sentiment 

remain weak,” according 

to investment 

analysts at United Capital 

plc. 

On the gainers’ table, 

Mobil Oil Nigeria rose 

by N3, from N151 to 

N154; Nigerian Breweries 

plc rose from N154 

to N154.6, adding N0.6; 

Ashaka Cement plc rallied 

from N21 to N21.5, 

adding N0.5; Skye Bank 

plc gained N0.26, from 

N2.61 to N2.87; while 

Oando plc from N17.75 

to N18, adding N0.25. 

Unity Bank targets N30.41bn profit by 2017 

Henry James Semenitari, managing director, Unity Bank 

unforeseen circumstances 

and stable business environment. 

The managing director 

said that the bank was 

also targeting gross earnings 

of N109.49bn in 2017, 

N88.52bn in 2016 and 

N76.26bn in 2015 financial 

years respectively. 

Semenitari attributed 

the bank’s growth strategy 

to operational efficiency 

derived from its business 

model and strategic intent. 

He said that agriculture 

sector remained 

a major strategic focus of 

the bank based on its historical 

strength, noting that 

As part of its 

prime activities 

of taking 

investor education 

to the grassroots, 

the Chartered Institute 

of Stockbrokers (CIS) recently 

played host to the 

Finance students of University 

of Lagos. 

The students who 

were led by Rufus Olowe, 

their course adviser, interacted 

with the top officials 

of the CIS on many 

aspects of the capital 

market. They were exposed 

to the operations 

of the institute and the 

need for professionalism. 

The one-day interactive 

session covered 

areas such as the concept 

of the capital market 

and stock market, 

regulators, operators 

and investors in the 

market, financial instruments, 

reward and 

risk elements in investment, 

elementary risk 

aversion measures and 

how the government 

at various tiers, companies 

and individuals 

can utilise the market 

optimally. 

Addressing the students, 

Vincent Adubor, 

the institute’s head, 

corporate services, ex- 

the bank would focus on 

emerging middle market 

entrepreneurs to remain 

retail bank of choice. 

The bank recorded a 

tremendous growth from 

a loss position of N33.64bn 

in December 2013 to a 

profit position of N13.6bn 

before tax in 2014 financial 

year. 

On the bank’s share 

reconstruction, Semenitari 

said that the bank embarked 

on the exercise to 

sustain its business module 

toward commencement of 

dividend payment. 

He said that the exercise 

would enable the 

plained the processes 

involved in becoming a 

stockbroker, roles of the 

CIS and the global recognition 

accorded the 

institute’s certification 

and its membership of 

many professional associations. 

Adedeji Ajadi, the 

institute’s registrar and 

chief executive, advised 

the students to 

take advantage of the 

visit to make career in 

the financial market. 

Ajayi explained that the 

students’ finance background 

would position 

them to become market 

players. 

Olowe expressed 

gratitude to the management 

of the institute 

for hosting the students 

and providing a platform 

for discussing issues 

that can advance 

their careers in the financial 

market. 

The institute has 

embarked on membership 

drive through series 

of unique activities. 

Apart from the youths, 

there are programmes 

designed for churches, 

mosques, market women 

and professionals to 

take advantage of opportunities 

in the capital 

market. 

bank to ensure enhanced 

dividend pay-out to all 

shareholders in the nearest 

future. The managing 

director explained 

that the volume of shares 

when compared with 

the shareholders’ funds 

would not enable the 

bank generate profit that 

would enhance shareholders 

value. 

He assured stakeholders 

that the basis of the reconstruction 

was largely on 

performance which would 

enable the bank to ensure 

enhanced dividend payment 

to all shareholders in 

the nearest future.


BUSINESS DAY 

47

BUSINESS DAY 

NEWS 

YOU CAN TRUST I THURSDAY 21 MAY 2015 

LIBERAL VIEW 

As Buhari prepares to hit the ground running 

STEVE AYORINDE 

Ayorinde, a journalist, author 

and media consultant is the 

Vice-President (West) of the 

Nigerian Guild of Editors. 

stevo@businessdayonline. 

com 

A 

two-day conference 

aimed 

at unveiling its 

policy roadmaps, 

which ends today 

in Abuja by the All Progressives 

Congress, is a good way 

to further kit Muhammadu 

Buhari as he takes over government 

next Friday. 

An initiative of Policy, 

Research and Strategy Directorate 

of the APC Presidential 

Campaign Council, 

the conference hinges its 

objective on the theme “Implementing 

Change: From 

Vision to Reality”. The sense 

in this type of talk-shop is 

obvious – the president and 

his core team should be well 

kitted with ideas and realistic 

execution of vision in order 

to hit the ground running. 

With expectation among 

Nigerians very high, the 

change mantra through 

which Buhari earned victory 

at the polls must translate 

into quick deliverables 

without excuses. Using the 

type of conference that is 

holding in Abuja now is a 

way of wading through the 

gale of election promises 

and settling down to some 

early wins that must reassure 

the citizens that this General 

really means business. 

It is remarkable that a 

Buhari, who understands 

governance being a tested 

hand – as a former head of 

state, military governor and 

petroleum minister – could 

subject himself to this type 

of intellectual fortification. 

It speaks volumes about 

his readiness to lead a team 

that debates and why it is 

imperative to make his advisory 

template robust by 

expanding the quantum of 

discussions that will shape 

his government. 

It is unlikely that anybody 

in his shoes, particularly 

elected governors, will easily 

wade through the haze 

of governance in these economically-challenging 

times 

if he does not encourage and 

subject himself to a rigorous 

intellectual immersion and 

the culture of debates that 

should interrogate the vision 

and policies to be executed 

in government. 

Buhari’s example of generating 

good content that 

will drive his administration 

is therefore commendable. 

And it shows not just in the 

robust manifesto of his party 

or the elaborate discourse of 

the Abuja conference, but 

also in welcoming the Strategic 

Report by the Obasanjo 

think tank last week. 

Many people have hastily 

picked faults with former 

President Olusegun Obasanjo’s 

decision to constitute 

a committee that will assess 

the economy and produce 

a document that aims to 

guide the president-elect. 

Not a few have read political 

and ethnic meaning into 

Obasanjo’s gesture. Those 

who hate the former president’s 

guts say his intention 

is at best suspect, knowing 

his penchant for control 

and vainglory, and at worst 

perfunctory since he is the 

longest-serving president 

Nigeria ever had, having 

spent three-and-a-half years 

as head of state in the 1970s 

and as an elected president 

between 1999 and 2007. If he 

had fixed the rot, the naysayers 

say, the need would not 

have arisen for him to present 

a manual of operation 

to any of his successors. 

Given Obasanjo’s largerthan-life, 

often overbearing 

influence on those he 

chooses to assist, one might 

be tempted to query his 

intention. One might even 

question his moral qualification 

considering that just 

one week before his intervention 

to the presidentelect, 

he was forced to fire a 

trustee and London-based 

chief executive officer of his 

foundation after the United 

Kingdom Charity Commission 

raised concerns over 

allegation of money laundering. 

It turned out that 

the lady, Anne Welsh, was 

culpable. But rather than 

look the other way, as others 

in his place may have done, 

Obasanjo gave the CEO the 

boot. 

And so, it will be harsh 

to pick holes in his strategic 

intervention to Buhari just 

because it shouldn’t have 

come from him. Sure, helpful 

thoughts such as this 

could have come from anybody 

with an abiding interest 

in the Nigerian Project or 

anybody who wants Buhari 

to succeed. It will be 

the new president’s prerogative, 

however, to implement 

which advice best suits his 

purpose. But to reject strategic 

interventions based on its 

source will amount to a snub 

and will be in bad taste. 

In any case, it is not just 

Obasanjo’s idea. The thinktank 

was made up of eminent 

personalities like the 

former minister of finance, 

Idika Kalu, who served as the 

vice-chairman of the committee; 

Akin Mabogunje, 

chairman of the Governing 

Board, Centre for Human 

Security of the Olusegun 

Obasanjo Presidential 

Library; and Christopher 

Kolade, who headed the 

Power Committee in the 

think-tank and who once de- 

scribed President Goodluck 

Jonathan as lacking requisite 

leadership quality. These 

are well-meaning Nigerians 

whose opinions shouldn’t be 

discounted. 

What are they proposing 

to Buhari anyway? The 

things that most Nigerians 

already know: concentrate 

on economy, security, power, 

education and infrastructure. 

They could not have 

suggested a bogus plan on 

how Nigeria should send 

people to Mars or the need 

to develop nuclear power. 

The things that are holding 

the country down border on 

those five key areas identified: 

the need to truly free the 

economy from the shackles 

of corruption and transform 

it into a job creator, which of 

course can only be helped by 

a secure polity and 24-hour 

economy made possible by 

constant power supply. 

All these must have 

been captured in Buhari’s 

roadmap already. What are 

needed from the strategic 

document are specific recommendations 

on how the 

challenges in those areas can 

be effectively tackled. Buhari 

has already welcomed the 

initiative as one of the efforts 

to help him hit the ground 

running. The only thing left 

is to ask Obasanjo to assist by 

detailing the unsaid reasons 

why his own administration 

was unsuccessful in fixing 

the power sector after $16 

billion expended on it and 

the late Bola Ige had to be 

removed from that ministry 

abruptly. Granted that the 

Jonathan administration 

has eroded most of the gains 

from the Obasanjo years; yet, 

the former president ought 

to help with information on 

why the petroleum sector 

still defied solution under his 

reign even when he directly 

supervised that ministry in 

his first year in office and 

had to increase petroleum 

pump price a record 14 times 

without successfully fixing 

the four local refineries. 

He may then add an explanation 

on why Ngozi 

Okonjo-Iweala was redeployed 

from the Finance 

Ministry to Foreign Affairs 

before she resigned in protest. 

Knowing the things 

that got her removed under 

Obasanjo may well explain 

why the finances of this nation 

won’t just add up under 

a woman who purports to be 

the chief driver of the entire 

economy. 

The type of economy that 

Buhari should run must be 

at variance with Jonathan’s 

profligate type and several 

notches higher than Obasanjo’s. 

Having insider information 

on why the former 

president faltered in fixing 

power and the petroleum 

sectors and why he ignored 

the corruption in road infrastructure 

will be of value to 

the Buhari administration. 

Economy in transition (2) 

As the presidentelect 

has himself 

already noted, attracting 

FDI or a return 

of Diasporan funds will 

be critical to kick-starting 

our moribund economy. To 

do that we need to reduce 

the barriers to entry, make 

our economy more competitive 

and allay the fears of potential 

investors who clearly 

have a choice of where to put 

their money. 

As I have noted, the importance 

of an enabling 

infrastructure has been well 

documented. Muhammadu 

Buhari has already made 

tackling the problems of 

security and corruption two 

of his priorities. In last week’s 

column I noted investors’ 

fears about their ability to 

manage their investment 

effectively, without undue 

interference – what we call 

the ‘ease of doing business’ 

question. So, how does the 

new administration help 

Nigerian industry become 

more competitive by improving 

the business environment 

and thus our 

competitiveness? 

In several columns I 

have argued the case for 

implementation of Stephen 

Oronsaye’s report. Earlier 

this year I wrote: “It has 

been recognised that this 

duplication and regulatory 

inefficiencies are a cost and 

an administrative burden. 

The Oronsaye report itself 

recommended abolition of 

38 agencies, merger of 52 

and reversion of 14 agencies 

to departments. A breakdown 

of what could be saved 

was quoted as N124.8bn 

from agencies proposed for 

abolition; N100.6bn from 

agencies proposed for mergers; 

N6.6bn from professional 

bodies; N489.9bn from 

universities; N50.9bn from 

polytechnics; N32.3bn from 

colleges of education, and 

N616m from boards of federal 

medical centres. This is 

in addition to the increased 

efficiency and savings in 

the private sector. The CME 

herself told This Day recently 

that in reference to reducing 

the nation’s recurrent expenditure, 

‘you are right, we 

should look at the Oronsaye 

report’, but cited legislative 

hurdles for the failure to take 

action. She went on to say, 

‘We have to bite the bullet 

…. We have to look at those 

agencies that are duplicating 

efforts’. But over two years 

on from the report, nothing 

seems to have been done.” 

This is not a new problem. 

The Oronsaye report 

itself noted that “the Ahmed 

Joda Committee (1999) posited 

that the challenge of 

ministerial interference and 

bureaucratic control needed 

to be eliminated in order to 

restore the effectiveness and 

efficiency of parastatals in 

the delivery of service to the 

public. In addition, the Joda 

report alluded to the challenge 

of lack of managerial 

competence in some of the 

parastatals as well as the 

incompetence and unnecessary 

size of some boards that 

had over 10 members”. 

This then is a ‘win-winwin’. 

The government reduces 

recurrent expenditure 

AND increases the efficiency 

of our governance structure 

AND improves the business 

environment. I will not say 

‘at a stroke’ because it will 

have its difficulties. As the 

CME herself noted, some of 

these agencies are enshrined 

in law. The fact that so many 

administrative regulations 

are enshrined in statute is 

itself a problem and would 

benefit from a thorough 

overhaul but being realistic, 

this would be a major 

task and not achievable as a 

quick win. So, somehow, we 

need to be pragmatic and 

push through these changes 

by making an absolute case 

for the reform. This will also 

entail hurdling another barrier 

in that it would require 

a major programme of retrenchment 

and redundancies. 

No government will do 

this lightly, especially one 

that is prioritising employment 

as a policy. However, 

in the longer term, taking 

the tough decision will free 

up funds for investment, 

increase efficiency and productivity 

and will lead to 

the creation of more jobs. 

Employment not for pen 

pushers and timeservers but 

for people ready to provide 

value add and productivity 

to our economy. If this seems 

harsh, I will take a longer 

look at the issue. 

In a 2013 paper on the 

‘Civil Service and the Cost of 

Governance’ for the University 

of Nigeria, Okechukwu 

Eme and Ogbechie Andrew 

quoted some typical examples 

of inefficiency: “The cost 

of running the government 

is also questioned in the incessant 

and uncontrollable 

duplication of government 

agencies and its attendant 

cost of funding. An example 

of such duplication is the Nigerian 

Maritime and Safety 

Agency (NIMASA), whose 

functions are duplicated 

by the Presidential Implementation 

Committee on 

Maritime Safety and Security 

(PICOMSS). Also, many of 

the functions of the Nigeria 

Police Force are performed 

by other agencies. For instance, 

the Special Fraud 

Unit of the Police carries out 

functions that are not exactly 

dissimilar to what the Economic 

and Financial Crimes 

Commission and the Independent 

Corrupt Practices 

Commission carry out. The 

functions of its traffic divi- 

sion are duplicated by the 

Federal Road Safety Commission 

and Road Traffic 

Service, also known as VIO, 

while the National Security 

and Civil Defence Corps perform 

the security role of the 

Police. Yet another example 

is the Border Community 

Development Agency and 

National Boundary Commission.” 

(Continues next week) 

OUTSIDER 

KEITH RICHARDS 

Richards is a director of a number 

of Nigerian institutions and 

businesses and lives in Lagos. 

outsiderinsideng@gmail.com 

@Outsiderinside1 

INSIDE 

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BUSINESS DAY 


FT FINANCIAL TIMES 

A1 

M&S profits rise for first 

time in four years 

Page A3 

World Business Newspaper 

Top Democrat backs 

US patrols close 

to disputed South 

China Sea islands 

The Uk And Europe - 

The British question 

Page A4 

In association with 

DEMETRI SEVASTOPULO 

Pentagon plans to consider 

military patrols 

near disputed islands 

claimed by China in 

the South China Sea 

have won the approval of a leading 

Democratic senator. 

US patrols within 12 nautical 

miles of reefs that China has been 

building up in the Spratly Island 

chain would be a “positive step” 

that would help protect vital marine 

commerce lanes, said Ben 

Cardin, the top Democrat on the 

Senate foreign relations committee 

He said China would be less 

likely to react aggressively to US 

military patrols than similar efforts 

by its southeast Asian neighbours. 

“What it is doing is preventing 

an incident or a provocative action 

from China,” said Mr Cardin. 

“If it were China versus one of the 

countries where it has territorial 

disputes, it is more likely that China 

would take action, but if it is the 

United States then I think it is less 

likely that they would take action.” 

Beijing has reacted angrily to 

signs that the Pentagon was considering 

patrols. Southeast Asian 

countries have urged the US to 

take a more visible role. China 

has taken a more assertive stance 

in the South China Sea in recent 

years, with concerns among its 

neighbours intensifying as it has 

reclaimed land around contested 

reefs and built new installations. 

In the Senate last week, Daniel 

Russel, the senior US diplomat 

for East Asia, urged Mr Cardin 

not to give up on diplomacy after 

the senator said the US appeared 

to be letting Chinese actions in 

the South China Sea go unchallenged. 

Mr Cardin responded to those 

remarks by saying: “We’re not really 

showing any response to these 

type of provocative actions, other 

than issuing a press release. And 

I think we’d like to do more. And 

we’d like to have our allies know 

that we are very much on their side 

against these provocative actions.” 

President Barack Obama 

launched a “pivot” to Asia in 2012 

aimed at deploying a greater proportion 

of US naval assets in the 

Pacific to help counter the rise of 

the Chinese military. But many 

countries in South East Asia have 

complained that the “pivot” was 

more talk than action. 

The US and China attempted 

to publicly diffuse some tensions 

at the weekend during a visit by 

John Kerry, secretary of state, to 

Beijing. But Wang Yi, China’s foreign 

minister, stressed that China’s 

determination to protect its “sovereignty 

and territorial integrity is as 

firm as a rock”. 

Six big banks fined $5.6bn over 

rigging of forex markets 

GINA CHON, CAROLINE 

BINHAM AND LAURA NOONAN 

‘Massive scale’ criminality, says FBI 

Traders colluded in online chat 

rooms 

Six global banks will pay more 

than $5.6bn to settle allegations 

that they rigged foreign 

exchange markets, in a scandal the 

FBI said involved criminality “on a 

massive scale”. 

Four of the banks agreed to 

plead guilty to conspiring to fix 

prices and rig bids in the $5.3tna-day 

forex market, in what they 

hope will draw a line under one of 

the biggest cases of misconduct in 

banking since the global financial 

crisis. 

Announcing the settlement, 

the US Department of Justice said 

that between December 2007 and 

January 2013, traders at Citigroup, 

JPMorgan Chase, Barclays and 

Royal Bank of Scotland, who described 

themselves as The Cartel, 

used an exclusive chatroom and 

coded language to manipulate 

benchmark exchange rates “in an 

effort to increase their profits”. 

The four banks, as well as UBS 

and Bank of America, also settled 

with the Federal Reserve, and 

Continues on page A2 

U.S. President Barack Obama walks through an honor cordon as the arrives for the 134th Commencement Exercises of 

the United States Coast Guard Academy in New London, Connecticut, yesterday. REUTERS 

Hanergy shares in 47% collapse as 

chairman skips annual meeting 

JENNIFER HUGHES, LUCY 

HORNBY AND MILES JOHNSON 

Almost $19bn was wiped 

off the value of Hanergy 

Thin Film Power yesterday 

when the Hong Kong-listed 

solar equipment supplier’s 

shares plunged 47 per cent, on 

the same day as its chairman 

failed to turn up to its annual 

meeting. 

Hanergy: The 10-minute 

trade FT investigation of two 

years of trading data of Hanergy 

Thin Film stock shows that 

shares consistently surged late 

in the day, about 10 minutes before 

the exchange’s close, from 

the start of 2013 until February 

this year. 

Breakneck growth raises 

questions The breakneck growth 

of Hanergy Group has helped 

to make its founder China’s 

fifth richest man. Shares in its 

$18bn Hong Kong-listed subsidiary, 

Hanergy Thin Film Power 

Group, have risen more than 300 

per cent since the start of 2014. 

FT View: Hanergy’s soaring 

share price raises questions 

Hong Kong authorities need to 

satisfy themselves on the solar 

group 

Li taps shadow lenders An 

FT investigation has found that 

Hanergy Group has borrowed 

billions of renminbi through 

high-interest Chinese “trust 

products” marketed to wealthy 

individuals, and taken out loans 

secured through pledging shares 

in its Hong Kong-listed subsidiary. 

Li Hejun, chairman of HTF 

and its Chinese parent Hanergy 

group, has become one of 

China’s richest men as the Hong 

Kong-listed subsidiary’s shares 

surged about 600 per cent over 

the past two years. 

In recent months, an investigation 

by the Financial Times 

has raised questions over HTF’s 

business model and patterns in 

the trading of its shares. 

HTF’s stock was suspended 

yesterday, about 30 minutes after 

the share price drop, pending an 

announcement by the company. 

No other information was given. 

Hong Kong’s markets regulator 

has recently been probing 

trading in HTF shares, sending 

written requests for information 

and meeting investment groups 

and brokers who have bought 

and sold stock in the company, 

according to people familiar 

with the matter. The Securities 

and Futures Commission declined 

to comment. 

HTF’s public relations company 

confirmed that Mr Li, who 

is the controlling shareholder 

at both Hanergy group and its 

Hong Kong-listed subsidiary, 

did not attend yesterday’s annual 

meeting. HTF managers, 

including Frank Dai Mingfang, 

chief executive, and Eddie Lam, 

finance director, were present. 

Hanergy group said Mr Li 

was at the opening of the Hanergy 

clean energy expo centre 

in Beijing. 

HTF’s meteoric rise from an 

unknown small company to 

a solar giant previously worth 

more than Twitter and Tesla has 

raised suspicions because its 

revenue comes almost entirely 

from sales to Hanergy group, its 

mainland parent. 

The group makes so-called 

thin film solar panels, using 

equipment supplied by HTF.


A2 BUSINESS DAY 

FT 

NATIONAL NEWS 


Investors rehearse scenarios for Greek default 

FERDINANDO GIUGLIANO 

Government’s murky cash position 

makes it difficult to assess the date 

of any reneging 

With Greece fast running 

out of cash, investors and 

policy makers have begun 

contemplating the possibility 

of a default and its consequences. 

The question they are asking 

Six big banks fined 

$5.6bn over ... 

Continued from page A1 

Barclays settled with several other 

regulators. 

One Barclays trader said in a 

November 5 2010 chat: “If you aint 

cheating, you aint trying,” according 

to the New York Department of 

Financial Services, which was part 

of the settlement. 

Loretta Lynch, the US attorneygeneral, 

said that the penalties the 

banks would pay were “commensurate 

with the pervasive harm that 

was done”. The fines should “deter 

competitors from chasing profits 

without regard to fairness to law 

or public welfare”. 

“This is a major blow for these 

banks, both financially and for 

their reputation,” said Mark Taylor, 

Dean of Warwick Business School. 

The revelation that traders colluded 

to move around currency 

exchange rates was particularly 

embarrassing for the banks because 

it occurred after they had 

paid billions of dollars to settle 

claims that their traders had tried 

to rig the London interbank offered 

rate. 

It has raised questions as to 

whether the industry had learnt 

any lessons from the previous 

scandal. 

Three banks were also fined 

an additional total of $400m for 

manipulating the Libor and Isdafix 

benchmarks, bringing the tally for 

the day to $6bn. 

Global banks have now paid 

more than $10bn in relation to 

the forex scandal, exceeding the 

$9bn paid by a larger group of 

institutions to settle the Libor rigging 

claims. 

UBS escaped criminal charges 

on forex because it was the first to 

co-operate with investigators. But 

the DoJ found it had violated the 

terms of its Libor settlement, so 

the bank will plead guilty to rigging 

Libor and pay an additional fine 

over that issue. 

is whether it is possible to keep 

Athens in the currency union 

even if it failed to repay some of 

its creditors, thereby sparing the 

global economy a renewed phase 

of uncertainty. 

“Our base-case scenario remains 

that Greece and its international 

partners will reach an 

agreement,” wrote Reinhard Cluse, 

an economist at UBS, in a research 

note. “Nevertheless . . . the risk of 

failure and eventual Grexit should 

not be underestimated”. 

The cash position of the Greek 

government is murky, making it 

hard to assess when exactly Athens 

might be forced to renege on its 

obligations. 

Silvia Merler, an economist at 

Bruegel, a European think-tank, 

has calculated that the government 

is running a better than 

expected primary budget surplus. 

Tunisian delegation attend a sign ceremony between U.S. Secretary of State John Kerry (L) and Tunisian Minister for Political Affairs 

Mohsen Marzouk, next to Tunisian President Beji Caid Essebsi (2nd L), in Washington, yesterday. REUTERS 

Cœure spurs debate on central bankers’ cosy ties 

LAIRE JONES AND SAM 

Policy makers need to be in touch with 

financial market participants but 

their links fuel concerns over conflicts 

of interest 

On Monday evening at halfpast 

seven, Benoît Cœuré, 

a European Central Bank 

board member, dropped a profitable 

nugget of information on an 

audience of hedge fund managers, 

academics and finance officials at 

a private event in London’s five-star 

Berkeley Hotel. The region’s policy 

makers, he said, planned to frontload 

bond purchases in May and 

June. 

The euro barely moved on the 

revelation. But the next morning, it 

plunged. 

The reason for that discrepancy 

is that those outside the room were 

unaware of Mr Cœuré’s remarks 

until the ECB published them on its 

website at 9am Frankfurt time - more 

than 12 hours later. After the remarks 

appeared, the euro fell more than 1.2 

per cent against the dollar in minutes. 

An ECB statement attributed the 

publication delay to “an internal procedural 

error”. The central bank also 

said that while the event - co-organised 

by a centre funded by hedge fund 

Brevan Howard - took place under 

Chatham House rules, it was always 

the intention to publish the speech at 

the time Mr Cœuré made his remarks. 

The episode has ignited a debate 

about the intimate ties between 

the world’s top central bankers and 

private-sector players. 

Central bankers often mix with 

bankers and hedge fund managers. 

Policy makers have a duty to explain 

their policies to markets - doing so can 

make their actions more effective. In 

turn, they must also keep abreast of 

the financial sector and its players if 

they are to design proper monetary 

policies and counter financial turmoil. 

The dangers of losing touch with 

markets were evident during the early 

stages of the world financial crisis in 

2007, when the Bank of England’s 

senior management failed to realise 

for some time that all the UK’s banks 

were suffering from a potentially cata- 

However, this is largely the result 

of a severe squeeze on public 

spending. 

Most importantly, the government 

faces a challenging debt 

redemption schedule with approximately 

€2bn due to the International 

Monetary Fund and around 

€6.5bn to the European Central 

Bank and other eurozone central 

banks between June and August. 

Athens also has to pay its civil 

strophic shortage of liquidity. 

But as the Berkeley episode shows, 

how and when central bankers communicate 

can risk the appearance of 

conflicts of interest, and encourage 

the suspicion that wealthy and wellconnected 

financiers are receiving 

better information than everyone 

else. 

“Even by the standards of conspiracy 

theories, it’s far-fetched to 

believe that there was any intention 

by the ECB to selectively disclose 

sensitive information to a privileged 

set of investors,” said Richard Barwell, 

economist at Royal Bank of Scotland. 

“But there is a wider issue for all 

central banks about how to communicate 

with the markets.” 

As guardians of currency, a symbol 

of sovereignty that above all else 

relies on trust to preserve its value, 

central bankers may be under even 

more scrutiny than other public 

servants. A perceived revolving door 

between financial officialdom and 

the private sector - and a string of 

recent scandals over the leaking of 

market-sensitive information - may 

have also raised public concern. 

servants and pensioners, just as 

the existing rescue programme 

with the eurozone, which is 

stalled, terminates at the end of 

June. The government is adamant 

that an agreement is in sight, 

but the possibility of an accident 

remains. While a default need 

not necessarily lead to a “Grexit”, 

economists warn the risks of a 

departure would increase substantially 

if it did occur. 

Japan growth 

struggles to gain 

momentum 

ROBIN HARDING 

Recovery seems on track but pace 

of expansion disappoints when 

inventories stripped out 

Japan’s economy grew at an 

annualised pace of 2.4 per 

cent in the first quarter but 

mainly due to a huge build-up in 

inventories. 

The stock market surged, with 

the market capitalisation of the Tokyo 

Stock Exchange’s first section, 

for large companies, exceeding its 

1989 peak, as headline growth in 

gross domestic product beat analyst 

forecasts of 1.5 per cent. 

But the data were scrambled 

by the conflicting effects of the 

surge in inventories and a plunging 

oil price. After stripping out 

inventories, the annualised pace 

of expansion was 0.4 per cent. 

Overall, the report showed a 

moderate expansion in consumer 

and business spending, implying 

Japan’s economic recovery is still 

on track. However, the pace of that 

recovery will disappoint the government 

of Prime Minister Shinzo 

Abe and the Bank of Japan, more 

than two years after they launched 

a massive economic stimulus. 

“The acceleration in GDP 

growth last quarter was mostly 

due to a jump in inventories, and a 

range of indicators point to a slowdown 

in the second quarter,” said 

Marcel Thieliant, Japan economist 

at Capital Economics in Singapore. 

Private consumption and investment 

both grew at an annualised 

pace of 1.4 per cent, 

suggesting the economy is slowly 

regaining vitality after a drop 

into recession in the middle of 

last year. Growth of 1.4 per cent 

is higher than Japan’s long-run 

potential - thought to be less 

than 1 per cent - so the economy 

is growing fast enough to soak up 

spare capacity. 

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@ FINANCIAL TIMES LIMITED 2015 

M&S profits rise 

for first time in 

four years 

ANDREA FELSTED 

High street chain pledges £150m 

cash return this year via share 

buyback 

Marks and Spencer 

has reported its 

first increase in 

underlying pretax 

profit for four 

years, and pledged to buy back 

£150m of shares this financial year. 

The high street stalwart, which 

has endured a difficult period as it 

battled falling clothing sales and 

nimbler rivals, said yesterday that 

underlying pre-tax profit rose 6.1 

per cent from £622.9m to £661.2m 

in the year to March 28, ahead of 

analysts’ expectations of about 

£650m. It is the first increase in 

underlying profit under the stewardship 

of chief executive Marc 

Bolland. 

The buyback is the first since 

November 2007, when former 

chief executive Sir Stuart Rose announced 

a £1bn programme. That 

financial year, M&S’s pre-tax profit 

hit £1bn. Statutory pre-tax profit 

rose 3.4 per cent from £580.4m to 

£600m. 

However, Mr Bolland refused to 

declare that his work was done in 

turning round M&S. 

“We know where we are going, 

and this is a step-by-step approach,” 

he said. “We clearly took 

Private debt boom lifts 

ICG assets to record 

JOSEPH COTTERILL 

Assets at Intermediate Capital 

Group, a UK-listed private 

debt manager, have risen to 

a record €18bn, underlining a drive 

by institutional investors to replace 

banks as lenders to businesses. 

In the year to the end of March 

ICG had raised €6.4bn in new 

money, an increase of nearly 40 

per cent on the year before, it said 

in results yesterday. 

Pre-tax group profits rose 9 

per cent to £178.5m as the group 

continued its shift towards raising 

third-party, fee-paying funds over 

less profitable investing using its 

own capital. 

Third-party assets under management 

rose 39 per cent to €12.3bn. 

Nearly half the new funds raised 

were for investing in the senior or 

mezzanine debt of midsized European 

companies and in UK real 

estate, areas from which banks have 

retreated. 

“We see this ongoing trend as 

structural and expect the banks’ 

FINANCIAL TIMES 


a step forward, and we took a step 

in the right direction.” 

He also defended the level of 

cash return, which Tony Shiret, 

analyst at Espirito Santo, described 

as “more emblematic than meaningful”. 

Mr Bolland said it was an ongoing 

programme accompanied by 

“a strong increase in the dividend”, 

with the final payout up 7.4 per cent 

to 11.6p, lifting the total for the year 

from 17p to 18p. 

The profit increase and cash 

return have been underpinned by 

an improvement in profitability in 

M&S’s clothing after the retailer 

brought in Mark and Neal Lindsey, 

the architects of rival Next’s supply 

chain. 

M&S said its gross margin - the 

difference between the price at 

which it buys and sells goods - for 

clothing and homewares rose 1.9 

percentage points in the year to 

March 2015, at the upper end of 

analysts’ expectations. 

It expects the gross margin in 

clothing and homewares to rise a 

further 1.5 to 2 percentage points 

this year. 

However, it also expects operating 

costs to increase by 4 per cent 

due to inflation and new food selling 

space, which Nick Bubb, the 

independent analyst, said would 

raise eyebrows in the City. 

Sales were broadly flat at 

£10.3bn. 

appetite for private mid-market 

lending to remain subdued,” said 

Christophe Evain, ICG chief executive. 

Long-term investors, including 

pension funds and insurers, have 

been drawn to alternative forms 

of lending as yields in more liquid 

credit markets have collapsed. 

In March ICG raised a second 

direct lending fund of €3bn, only 

a year after its first, which was half 

the size. 

“We’ve had an alignment of 

funds this year,” Mr Evain said. “A 

big number of strategies have been 

raising money at the same time.” 

The private debt market recently 

surpassed $500bn in size, according 

to Preqin, a data provider, and is 

becoming more competitive with 

several alternative managers raising 

money. 

This may reduce returns in future. 

Mr Evain said borrowers favoured 

ICG over its smaller rivals. 

“Because of the size of our funds, 

we’re a credible counterparty.” 


Thomas Cook shows how to turn private tragedy into public outrage 

JONATHAN GUTHRIE 

In 2006 Bobby and Christi Shepherd, 

who were 6 and 7, died of 

carbon monoxide poisoning in a 

Corfu hotel during a holiday sold by 

Thomas Cook. 

This column approaches business 

stories irreverently. But there 

can be no gags concerning this sad 

case. What is permissible is to examine 

what Thomas Cook got wrong 

and how other companies can avoid 

its errors. 

The business is taking a beating 

in the media, including the social 

kind, for receiving a £3m compensation 

payment from the hotel owner. 

Bobby and Christi’s parents reportedly 

got a fraction of that from the 

same source. They were incensed 

by the disparity and Thomas Cook’s 

failure to apologise. 

The company had no direct 

responsibility for the deaths of 

the children. But last week an inquest 

jury ruled Thomas Cook had 

breached its duty of care. Yesterday, 

chief executive 

Peter Fankhauser was thoroughly, 

if belatedly, penitent while talking 

to journalists writing in print and on 

Sutherland bows out as Goldman chairman 

LAURA NOONAN 

Ireland’s former attorney-general 

Peter Sutherland is ending 

his 20-year stint as chairman of 

Goldman Sachs International so he 

can spend more time working for 

the UN on migrant issues, the US 

bank told staff yesterday. 

The 69-year-old’s retirement, 

which takes effect from the end of 

June, was announced to staff in a 

memo from Goldman Sachs chief 

executive Lloyd Blankfein and 

president Gary Cohn. 

A replacement has not yet been 

named, and it is understood that his 

duties will be temporarily shared by 

the bank’s non-executive directors. 

One of the City of London’s most 

the web. He told Lombard: “I am 

deeply sorry for the tragic deaths 

of Bobby 

and Christi. We failed to show the 

compassion we should have.” 

Lawyers are blamed for stopping 

Mr Fankhauser from apologising 

before. However, one City litigation 

specialist disputes this. She says: 

“Lawyers can advise you on how to 

express sympathy without admitting 

liability.” 

Ben Magara, boss of platinum 

miner Lonmin, demonstrated how 

to do it yesterday. He announced 

that the life of an employee had been 

“cut tragically short” in a mining 

accident and “everyone at Lonmin 

shares my distress”. 

Thomas Cook blundered again 

by donating £1.5m to Unicef. 

Why £1.5m? No one cares this 

was the balance of compensation 

from the hotel company after insurer’s 

legal costs were deducted. 

Why Unicef? This a children’s 

charity, certainly. But the money 

should have gone to the Shepherds 

instead. It is too early to tell whether 

Thomas Cook’s sales will be hurt by 

the furore. 

Mr Fankhauser has forestalled 

some potential damage with his 

BUSINESS DAY 

A3 

Chinese Premier Li Keqiang (C) and Brazil’s President Dilma Rousseff look on during a welcoming ceremony before a 

meeting at the Planalto Palace in Brasilia, yesterday. REUTERS 

prominent figures, Mr Sutherland 

has been associated with Goldman 

since 1990 when he joined the bank 

as an international adviser. 

Goldman won many contracts 

in Mr Sutherland’s native Ireland 

over his tenure, most recently 

winning the role of advising the 

government on the sale of nationalised 

bank AIB. 

Mr Sutherland will “continue to 

provide strategic advice to the firm 

on global business development 

opportunities as an international 

adviser” after he retires, the staff 

memo said. 

His main activity in retirement 

will be his role as a special representative 

of the secretary-general 

of the UN for Migration and Depress 

interviews. He could reduce 

that burden further by repeating his 

comments on TV, a course he told 

me he would not take. Broadcast 

clips of him lifted from an analysts’ 

webcast do not cut it. Television still 

shapes public consciousness in a 

way no other medium can. 

The final error Thomas Cook 

bosses made was failing to meet 

the Shepherds face-to-face. Mr 

Fankhauser expects to do that soon. 

Chief executives receive generous 

pay packets for only one thing: taking 

responsibility. That can mean 

dealing with grieving relatives as 

well as deferential employees and 

advisers. 

Bright bulb 

To mark the Chelsea Flower 

Show, Lombard’s horticulture correspondent 

Daphne Trug profiles 

City blooms: 

“The Perennial Marc Bolland 

(Tulipa robusta) is putting on an 

impressive display in the Marks & 

Spencer show garden this Chelsea 

Week. Underlying full-year profits 

have grown 6.1 per cent and the 

dividend is 5.9 per cent higher. This 

Dutch import has put down deep 

roots, proving himself hardy in 

tough British conditions. 

velopment. Mr Sutherland recently 

spoke on Irish radio about his support 

of EU proposals that would 

share the burden of migrants more 

broadly across the continent. 

“The fundamental issue here is 

saving people who are drowning 

in the Mediterranean . . . this is not 

about getting into battles about 

quotas when we are facing a humanitarian 

crisis,” he said. 

He is also honorary president 

of the European Policy Centre 

in Brussels, and president of the 

International Catholic Migration 

Commission. Mr Sutherland could 

not immediately be contacted 

to comment on whether he will 

pursue other financial services 

interests in retirement.


A4 BUSINESS DAY 

FT ANALYSIS In association with 

The UK and Europe - The British question 

David Cameron must balance pursuit of a reformed EU against the anger of his party’s eurosceptic 

fringe if he is to avoid losing a referendum that could see Britain leave the economic bloc. 

GEORGE PARKER AND ALEX 

David Cameron had 

not expected to win 

outright. But Britain’s 

electorate had 

just presented the 

prime minister with a spectacular 

election victory and the rest of 

Europe with a big problem. “We 

have got a mandate,” Mr Cameron 

told journalists in the House 

of Commons as he prepared to 

address 300 jubilant Conservative 

MPs last week. “It’s going to 

be tough but we have a mandate.” 

Mr Cameron’s victory means 

that he now has to make good 

on his promise to put the country’s 

membership of the EUto a 

referendum, a high-risk strategy 

intended to pacify his eurosceptic 

party and settle a question that 

has bedevilled British politics 

since the country last voted on 

the issue 40 years ago. 

Angela Merkel, Germany’s 

chancellor, declared Mr Cameron’s 

victory as “simply great”; 

François Hollande, French president, 

invited the British leader to 

Paris. But behind the diplomatic 

niceties was a simple calculation: 

the time has now come for 

Europe to address the “British 

question”. 

While Europe has been obsessed 

in recent years by a potential 

Greek exit from the eurozone, 

the possibility of a British exit 

from the EU has suddenly assumed 

even greater significance 

for the 28-member club. “For 

Britain it would be a disaster; for 

Germany it would be a catastrophe,” 

admits one senior German 

minister. 

For Britain, a trading nation, 

unlimited access to a single market 

of 500m consumers could be 

called into doubt. Deutsche Bank 

this week announced it could 

move operations out of Britain 

if the country voted to leave in a 

referendum, which Mr Cameron 

has promised by the end of 2017. 

Brexit could even accelerate the 

break-up of the United Kingdom: 

polls show Scots remain firmly in 

favour of EU membership. 

The departure of Britain would 

be an unprecedented blow to the 

European project. The UK might 

be a troublesome member that is 

badly trying the patience of its allies, 

but it adds global reach, military 

force, budgetary discipline 

and liberal instincts to a Europe 

suffering a crisis of confidence. 

Both sides have much to lose. 

The question being asked in 

European capitals is what is Mr 

Cameron’s price - he insists there 

has to be fundamental reform 

of the EU for Britain to remain 

a member - and can we afford 

to pay it? 

Mr Cameron is bullish. He 

wants to use his newfound electoral 

authority to press ahead 

with his renegotiation starting 

tomorrow in informal talks with 

EU leaders on the margins of a 

summit in the Latvian capital 

Riga. 

Next week he will introduce a 

parliamentary bill to pave the way 

for his in-out referendum; Philip 

Hammond, foreign secretary, 

says he wants to move “fast”, with 

ministers eyeing a vote as early 

as 2016. 

Although European leaders 

frequently urge Mr Cameron to 

spell out exactly what he wants, 

the British prime minister’s negotiating 

demands are already in 

plain sight, set out in a series of 

speeches and newspaper articles. 

“We’ve already shown a lot of leg,” 

says one British official. 

Mr Cameron has deliberately 

set the bar at what he believes is 

a realistic level - a view not shared 

in some other European capitals 

- because he wants to secure his 

objectives and then go on to campaign 

for Britain to stay in the EU. 

Although he leads a eurosceptic 

party, the majority of Conservative 

MPs see the case for 

remaining part of the world’s 

richest single market. David 

Davis, a hardline eurosceptic, 

estimates that some 60 of the 

total 331 Tory MPs will vote for a 

Brexit whatever deal Mr Cameron 

negotiates in Brussels. But dozens 

of others are waiting to see: if the 

prime minister fails to get a better 

deal, the party’s uneasy peace 

on Europe could be blown apart. 

British public opinion, according 

to most polls, is in favour 

of the country staying in, but 

last year’s close-run Scottish 

independence referendum is a 

reminder of how such votes can 

shred nerves. Although the main 

opposition parties, most business 

groups and the City of London 

will oppose Brexit, the debate 

would take place in a hostile 

eurosceptic media atmosphere. 

Mr Cameron needs a good 

deal in Europe and his strategy 

is built around three main areas: 

making the EU more competitive, 

reducing its power in relation to 

member states and curbing the 

access of migrant workers to British 

welfare - an attempt to allay 

public concerns about the scale 

of immigration. 

Nick Clegg, the pro-European 

former leader of the Liberal Democrats, 

characterises Mr Cameron’s 

agenda as “motherhood and 

apple pie” and the main Labour 

opposition party broadly agrees. 

In other words, Mr Cameron’s 

stance is not the pipe dream of 

hardline Tory eurosceptics; it is 

in line with mainstream British 

political opinion. 

While Mr Cameron’s approach 

is nowhere near tough enough for 

some in his party, the question 

Britain’s Prince Charles and his wife Camilla stands during the planting of a London Oak after a service of peace and 

reconciliation at St. Columba’s Church in Drumcliffe in Ireland, yesterday. REUTERS 

is whether it goes too far for his 

negotiating partners. 

There are two looming obstacles. 

The first is that eastern 

European countries are opposed 

to what they see as Mr Cameron’s 

discriminatory approach on 

benefits for migrant Poles, Lithuanians 

and others who come to 

Britain to work. 

“As soon as you have a discrimination 

between EU citizens 

it is forbidden in the treaties,” says 

Jean-Claude Piris, a former top 

legal adviser to EU leaders. 

The second big problem is 

the opposition of virtually every 

EU member state to Mr Cameron’s 

desire for a “full-on treaty 

change” to enshrine his new 

deal. No country wants to go 

through the trauma of trying to 

ratify with a national referendum 

a new European treaty. Mr 

Hollande and Ms Merkel do not 

want British neuralgia interfering 

with their 2017 domestic election 

campaigns. 

Mr Hammond said last week 

that treaty change was not needed 

“for the politics” but simply to 

ensure that an agreement was 

legally watertight. 

But senior British officials 

admit there is a significant risk 

of failure. There is concern Mr 

Hollande may scupper a deal, or 

that UK demands could trigger an 

unmanageable race for concessions 

from other member states. 

Above all, senior EU officials 

say Britain’s growing marginalisation 

in Brussels will make it hard 

for Mr Cameron to demand favours. 

“The [Brits] must not overestimate 

their leverage - they’ve 

done so in the past. Solutions 

can be found,” says one senior official 

who will be closely involved 

in the talks. “But asking for too 

much, aiming high, will bring the 

negotiation to a dead end. Other 

member states have domestic 

politics to handle as well.” 

Brussels officials say a deal is 

possible, provided Mr Cameron 

does not seek unrealistic changes 

to appease his own hardliners. 

The precedents are not auspicious: 

after all the prime minister 

only agreed to the referendum 

in the first place under pressure 

from his own eurosceptic MPs. 

Mr Cameron told Jean-Claude 

Juncker, European Commission 

president, that he had to be able 

to sell the deal to “the man in the 

pub” ; then, he believes, he can 

end the debate about Britain’s 

role in Europe and prevent it from 

“sleepwalking towards the exit”. 

“People say no, no, no, that cannot 

possibly be done until the point 

when they say OK we will do it,” 

says Mr Ham mond. “As Chancellor 

Merkel says, where there is a will 

there is a way. The EU has shown 

time and again that for all its rhetoric, 

in practice it is very pragmatic when 

it needs to get something done.” 

Timeline 

The route to the referendum 

May 27 2015 Queen’s Speech. 

Bill announced to set in train a 

British referendum on the EU 

June 26-27 2015 EU summit in 

Brussels. Cameron under pressure 

to set out his demands 

Early 2016 EU referendum bill 

on statute book 

Summer 2016 Likely earliest 

date for fast-track referendum 

Autumn 2016 Another referendum 

window 

May 2017 French presidential 

elections 

June 2017 EU Brussels summit. 

Last realistic date for Cameron to 

get a deal (with a possible new 

French president) 

September 2017 Expected date 

for German elections 

December 2017 Cameron’s 

deadline for holding referendum 

UK - Leading voices 

DAVID CAMERON - PRIME 

MINISTER 

The party leader told jubilant 

Tory MPs after his re-election 

that he had a ‘mandate’ to push 

for reforms but said talks would 

be ‘tough’. The work begins at a 

summit in Riga tomorrow 

GEORGE OSBORNE - CHAN- 

CELLOR 

Mr Cameron’s deputy will 

oversee the push for economic 

reform and wants guarantees that 

Britain will not lose out in the 

single market because it is not in 

the eurozone

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