BusinessDay 22 Mar 2018

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Thursday 22 March 2018 PIGB: NEITI makes case for speedy passage of remaining bills Nigeria Extractive Industries Transparency Initiative (NEITI) has alerted the nation that time is running out over Nigeria’s inability to put in place the necessary laws required to fix the numerous governance problems confronting the oil and gas sector. This is as they make case for the speedy passage of the remaining parts of the bill by the National Assembly, pointing out that the delays in passing these laws are responsible for the uncertainties and lack of investment opportunities in the sector. Waziri Adio, executive secretary of NEITI, said in Abuja at the opening of a symposium to set the agenda on the Petroleum Industry Governance Bill (PIGB) passed by the two chambers of the National Assembly and awaiting harmonisation. “NEITI published a policy brief in October 2016, entitled “The Urgency of a New Petroleum Sector Law.” The paper estimated the cost of business uncertainty, lack of clarity and adequate transparency mechanism in eight years at more than $200 billion. The paper showed how Nigeria is increasingly in competition for oil and gas investment with many other African countries, not to talk of other jurisdictions,” Adio stated. The executive secretary explained in a statement that the motive for convening the symposium was to discuss what needed to be done and urgently too to build on the successes recorded so far by the passage of the PIGB by both the Senate and the House of Representatives. “Now that we are hopefully close to the end of these circuitous journeys, it is important for us to focus on the next tasks in a way that will proactively and strategically ensure that the intentions of the proposed laws are fully realised; that we have not undertaken the long journey in vain,” he said. In a message, the minister of state for petroleum resources, Ibe Kachikwu, underlined the importance of early passage of the relevant laws required to reposition the sector in view of the strategic implications towards increasing revenue generation, inflow of investments, job creation and improved governance of the industry. “The long-held aspiration of the Nigeria Upstream Sector is to grow crude oil reserves to 40 billion barrels and production to 4 million barrels of oil per day (bopd), improving local content, maximizing sectors value and most importantly derive as much revenues from oil and gas. L-R: Abdullahi Bashir, executive council member; Frank Jacob, president; Segun Ajayi- Kadir, directorgeneral, and Ifeanyi Okoye, executive council member, all of Manufacturers Association of Nigeria (MAN), during a press conference on African Continental Free Trade Area by MAN in Lagos, yesterday. Pic by Olawale Amoo Sahel Capital announces investment in Coscharis Farms efitted from Anambra State’s drive to emerge as a leading hub for agribusiness in Nigeria, and in particular the state’s focus on critical road infrastructure and the creation of an enabling environment for businesses to function. The company plans to continue to take advantage of the various initiatives offered by the state while implementing its expansion plans. Cosmas Maduka, president/ CEO of Coscharis Group, and chairman of Coscharis Farms, said, “We are excited to welcome Sahel Capital and FAFIN into our fold. We have set out to build a company that is not only an industry leader, but also one that will also provide economic opportunities for smallholder farmers and young people in Anambra State. “The Sahel Capital team has already demonstrated their ability to add value to our operations over the past 12 months, and we look forward to their support as we continue to expand our operations.” Also commenting on the investment, Mezuo Nwuneli, managing partner at Sahel Capital, said, “The investment in Coscharis Farms allows us to invest in an integrated rice platform which can be scaled up to meet the staple food requirements of Nigerians. “FAFIN’s investment will provide the company with the resources it needs to invest in critical infrastructure for both its farming and milling operations, as it further expands over the next two years. “We are delighted to partner with Dr. Cosmas Maduka and Coscharis Group, proven business operators, as well as the management team of Coscharis Farms who have laid the groundwork for the Company’s significant progress till date.” “FAFIN’s investment has come at a time when we are ready to scale up our operations quite significantly,” Godwin Umeaka, managing director for Coscharis Farms, said, saying further, “We look forward to the strategic and operational support that they will provide to the manage- Sahel Capital and Coscharis Group have announced the execution of definitive agreements for a significant investment in Coscharis Farms Limited, currently developing a 2,500ha rice cultivation scheme with an irrigation system to enable multi-cycle rice cultivation, and is in the process of installing a 40,000MT per year rice mill. According to a statement from Sahel Capital, fund managers for the Fund for Agricultural Finance in Nigeria (FAFIN), Coscharis Farms is an integrated rice processor that started operations in 2014 to meet part of the estimated 5.9 million MT annual rice demand in Nigeria. Coscharis Farms also plans to incorporate a robust farmer out-grower development programme within Ayamelum, Anambra State, and neighbouring communities to reach 2,000 farmers that could provide rice paddy to its mill when completed. Coscharis Farms has benment team as we work to execute on our business plan for Coscharis Farms.” With the investment in Coscharis Farms, the Board of Directors is being reconstituted to include two independent directors: Igwe Nnaemeka Alfred Achebe, the Obi of Onitsha, and Kanayo Nwanze, the immediate former president of the International Fund for Agricultural Development (IFAD). As independent directors, they will provide leadership and board-level oversight to steer the company towards achieving its vision and objectives. Mezuo Nwuneli will also join the Board, along with a second Sahel Capital representative, and Cosmas Maduka (chairman of the Board), Charity Maduka, and Okey Nwuke would represent Coscharis Group on the Board. Godwin Umeaka, the managing director, and Rotimi Alashe, who recently joined the company as chief financial officer, will also be executive directors on the Board. C002D5556 BUSINESS DAY A1 NEWS Environmentalists call for urgent action as 60m Nigerians lack access to water Concerned about lack of access to decent water in many parts of Nigeria, environmentalists are calling for urgent action for its provision, noting that 60 million Nigerians, representing about 33 percent of the country’s population, live without access to this all-important element. Most rural communities in Nigeria have little or no access to water and this goes with high implications for the people, as it not only makes life uncomfortable, but also makes sanitation and hygiene difficult. The statistics obtained from WaterAid, an international not-for-profit organisation working in 34 countries to change the lives of the poorest and most marginalised people, is thought provoking. “Over 120 million people in Nigeria, representing 67 percent of the population do not have a decent toilet,” the statistics reveal. Furthermore, about 47 million people, about 26 percent of the population, practice open defecation while accessibility, availability and quality of water vary widely in Nigeria with national averages masking significant inequalities between sub-national regions. FAAN automates PSC collections at domestic airports IFEOMA OKEKE As part of efforts aimed at easing passenger facilitation at the nation’s airports, the Federal Airports Authority of Nigeria (FAAN) has automated the collection of Passenger Service Charge (PSC) at local airports. This is in line with the directive by the Presidential Enabling Business Environment Council (PEBEC) that checkin procedures at the airports Int’l Day of Forests: Obaseki harps on conservation, diversity, greener cities Governor of Edo State, Godwin Obaseki, has called for concerted efforts to protect forests and green areas in urban and reserved areas, even as the state government is pushing for initiatives to create greener cities and harness the state’s rich and diverse forest assets. The governor said this in commemoration of the International Day of Forests 2018 marked by the United Nations and other partner agencies on March 21 every year. The governor, who stressed the need for collaboration between government and civil society groups in preserving environmental diversity, said that the Edo State’s plan to set up a forestry commission and an agency for parks and gardens are all geared towards protecting her diverse forest assets. According to Obaseki, “Edo CHUKA UROKO State has rich forest assets that require nurturing. Much as some parks are within the purvey of the Federal Government, we are also looking at exploiting the rich forest assets we have to drive tourism, aside the overarching objective of conserving and preserving the environment. “We are in talks with investors to help harness our forest reserve and ensure that we halt deforestation in the state.” He noted that measures taken to safeguard the Ogba Zoo and Nature Park in the city centre and prevent its deforestation were pointers to some of the initiatives to be taken to preserve such assets in the state. He said this year’s theme: “Forest and Sustainable Cities” is not just apt but captures his administration’s reserve to ensure that the state safeguards its flora and fauna. He said, “The case for Water challenge is, increasingly, assuming a global dimension. About 844 million people in the world are said to be living without clean water close to their homes just as 2.3 billion people in the world, almost one in three persons, do not have decent toilets of their own. WaterAid adds that about 289,000 children under five die every year from diarrhoeal diseases caused by poor water and sanitation, meaning that almost 800 children die every day or one child every two minutes. The international body, which has reached 25.8 million people with clean water and 25.1 million people with decent toilets, says urgent action to finance water and sanitation, to integrate it with efforts on health, nutrition and other related development, and to make progress sustainable is essential to reach everyone, everywhere. “Faster progress on all three will save lives, boost development and change the lives of billions of people living in extreme poverty globally. For every $1 spent on water and sanitation, on average $4 is returned in economic benefits,” assured ChiChi Aniagolu-Okoye, WaterAid Nigeria’s country director at a forum in Nigeria recently. be streamlined to improve the facilitation of passengers. In a statement, Yakubu Henrietta, general manager, corporate affairs, FAAN, said with the development, the use of the PSC sticker at the departure gate was discontinued with effect from Monday, March 19, 2018. Henceforth, departing passengers who have checked-in prior to arrival at the airport can proceed directly to the boarding gates. greener cities cannot be overemphasised as it is evidently the way to go in a world bedevilled with deforestation and the perils of climate change. This is why we want to ensure that the state exploits its forest assets for tourism receipts. He urged federal agencies charged with enforcing policies and laws on conservation and preservation to be alive to their responsibilities, as the state was ready to support them in fulfilling their mandate. According to the United Nations, “Forests and trees store carbon, which helps mitigate the impacts of climate change in and around urban areas. Trees also improve the local climate, helping to save energy used for heating by 20-50 percent. Strategic placement of trees in urban areas can cool the air by up to 8 degrees Celsius.
A2 BUSINESS DAY C002D5556 NEWS Analysts differ as Lagos ranks among world’s top 10 cheapest cities HOPE MOSES-ASHIKE Lagos, Nigeria’s biggest commercial hub, is among world’s 10 cheapest cities, ranking 130 out of over 133 cities in the world in terms of cost of living, according to Worldwide Cost Of Living 2018 report by The Economist Intelligence Unit (EIU) Limited. Lagos scored 40 out of 100 on New York index point, making two upward movement, says the EIU report. The report shows that Singapore retains its title as the world’s most expensive city for the fifth consecutive year in a top 10 that is largely split between Asia and Europe. Damascus, capital of Syria, takes the first position as the cheapest city, having fallen 14 places in the past 12 months. The country ranks 133 and is rated 26 on 100 New York index point. But Nigerian analysts differ on the report, saying the ranking should be put into Silicon Valley Women Tech leaders visit Nigeria for weeklong mentorship programme SEYI JOHN SALAU A 16-member delegation of senior women technology executives and professionals from Silicon Valley, California, are in Nigeria as part of the TechWomen programme holding this week in Lagos. The delegation is working with Nigerian Fellows of the TechWomen programme to carry out mentoring sessions in Lagos and Abuja for young women working in the areas of science, technology, engineering and mathematics (STEM). During the weeklong programme, the delegation will visit non-governmental organisations, private and public enterprises, universities, schools, tech incubators and innovation hubs to expand networks of women in STEM teaching and learning in Nigeria. The delegation represent context. “The comparison provided by the ranking does not tell the full story. Lagos used to be ranked as an expensive city before the significant devaluation of the naira, and also slowdown on the economy, which has put a downward pressure on costs like rent. “So, the current ranking as a cheap city needs to be put into context. I disagree that cheap cities are less liveable, I think it is economic prosperity and attendant high demand that drive cost of living up,” Taiwo Oyedele, head of tax and regulatory services, PWC, said. The Worldwide Cost of Living is a biannual Economist Intelligence Unit survey that compares more than 400 individual prices across 160 products and services. These include food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs. The survey itself is a purpose-built Internet tool organizations as diverse as Twitter, LinkedIn, Netflix, Mozilla, Autodesk, WomenCollegeTech, Stanford Graduate School of Business, Juniper Networks, as well as Fairrer Samani Group, Northgate Environmental Management, Jessica Dickinson Goodman Consulting, and the Institute of International Education. Leedjia Svec, Director WomenCollegeTech and former Director of Programs at the National Aeronautics and Space Administration’s Ames Research Centre in Silicon Valley, alongside Maile Smith, Principal Geologist/ Chief Operating Officer at Northgate Environmental Management, are part of the travelling delegation. Other members of the delegation include Larissa Shapiro, Head of Mozilla’s Global Diversity and Inclusion Division, and Twitter’s Senior designed to help human resources and finance managers calculate cost-of-living allowances and build compensation packages for expatriates and business travellers. An average of the indices for all cities surveyed by EIU using New York as base city; the global cost of living has risen to 74 percent, up slightly from 73 percent last year. This remains significantly lower than five years ago, when the average cost of living index across the cities surveyed was 85.5 percent. The report revealed that the average US dollar price for 1kg loaf of bread is currently $1.16 in Lagos as against $1.27. It was $2.64 and $3.41 five and 10 years ago, respectively. Commenting on the report, Kehinde Bamigbetan, commissioner for information, Lagos, said the consideration of Lagos as one of the two cities on the African continent that the report found worthy of benchmarking with other 132 cities signified the global acknowledgement of Software Engineer, Elizabeth Deng. Deng, a computer science graduate of the University of Southern California, co-organised “Girls Who Code Summer Immersion Program” for the micro-blogging website in 2017. Launched in 2011, Tech- Women is an initiative of the Department of State, which supports the U.S. government’s global commitment to advance the participation of women and girls around the world in the business and technology sectors. In addition to sending delegations of American women technology mentors abroad, the TechWomen exchange program brings young women leaders from the Middle East, Central Asia, North Africa, and sub-Saharan Africa including Nigeria to the United States for a professional mentorship at leading technology companies. its developmental strides and its potential for growth. He said the use of New York, which by economic standards, was more advanced in capital development and commerce, as the base city for this report predictably posted negative. “I think residents of Lagos, in the context of recent developments would still be surprised to be told that they live in one of the cheapest cities in the world. However, the report does not justify the proposition that cities with lower cost of living are logically less liveable. “There are other conditions which shape liveability which are not determined by price, the foreign exchange rate or commercial transactions. The provision of free health services, subsidised education, cheap loans for small businesses by the current administration of Governor Akinwunmi Ambode support liveability by lowering the cost of living,” Bamigbetan said. L-R: Obi Brown of Insight Africa; Tayo Aduloju, senior fellow, public policy/ institutional development, NESG; Toluleke Adenmosun, managing director, financial services, Accenture Nigeria; Niyi Yusuf, managing director, Accenture Nigeria, and Ladipo Lawani, L&L Foods, at a cocktail meeting of Accenture and 23rd Nigerian Economic Summit (NES23) Startup Pitch Winners in Lagos. Thursday 22 March 2018 Nigeria must do cost-benefit analysis on AfCFTA before signing - MAN Disease alert: NAFDAC warns against importation of processed meat products ANTHONIA OBOKOH The National Agency for Food and Drug Administration and Control (NAFDAC) has warned against the importation of processed meat products due to the recent outbreak of Listeriosis disease in South Africa, caused by contaminated processed meat products. As of March 2, 2018, 948 laboratory confirmed cases of Listeriosis were recorded with 180 deaths, according to the Public Alert cited on the NAFDAC website dated March 17, 2018. Listeriosis is a bacterial infection most commonly caused by Listeria monocytogenes. It can cause severe illness, including severe sepsis, meningitis, or encephalitis, sometimes resulting in lifelong harm and even death. ODINAKA ANUDU Manufacturers Association of Nigeria (MAN) says it is opposed to the African Continental Free Trade Area (AfCFTA) because the Federal Government did not duly consult with critical stakeholders on the trade policy. The association says it is worried that specific attention was not given to the cost and benefit analysis of the agreement and the sectors/ sub-sectors that would benefit or be worse off if AfCFTA is signed. Speaking at a press conference in Lagos on Wednesday, Frank Jacobs, president of MAN, said it rejected the African trade agreement because it needed to understand the strategy that government intended to adopt to enhance the capacity of the manufacturing sector to compete effectively. “The absence of substantive consultation with stakeholders depicts a blatant and fundamental departure from the practice in the past regarding trade negotiations, and most importantly, the requirements by the AU that the private sector in the various States be actively involved in the negotiation process,” Jacobs said. Forty-four out of 55 African countries signed the free trade agreement in Kigali on Wednesday in a deal that was targeted at boosting intra-African market and creating $3.4 billion opportunity for continent’s 1.2 billion people. The deal is also targeted at removing trade bottlenecks and reducing reliance on commodities that are volatile. Jacobs said the association understood the ben- Listeria is everywhere and is primarily transmitted via the oral route after ingestion of contaminated food products. The agency publicised that the South African Minister of Health issued a press statement to confirm the source of the outbreak as processed meat products manufactured by Enterprise Corporation and Rainbow Chicken Limited. In addition, the Consumer Protection Act of South African issued a safety recall notices on March 4, to manufacturers of these products. The safety recall includes the manufacturer’s entire distribution network, both domestic and international. Laboratory investigation established that the source of the outbreak was confirmed as ready-to-eat processed meat products efits of the agreement but wanted the government to examine its impact on nation’s tax structure, government revenue and the welfare of over 180 million Nigerians. Morocco is a North African country but has signed the Economic Partnership Agreement (EPA) with the European Union, which MAN and other private sector players have rejected. Morocco has applied to join the ECOWAS but Nigeria is totally opposed to it. Jacobs fears that the absence of clarity in rules of origin in AfCFTA will allow Europe to export to Morocco, which will now ship their products to Nigeria without paying duties. He said Nigeria needed to renegotiate the free trade agreement to understand the justifications for agreeing to the proposed movement of 90 percent of tariff lines to zero duty. Jacobs further said the free trade agreement allowed only 10 percent of tariff lines to be protected, which was a far cry from what was even obtainable in Common External Tariff, another free trade agreement in West Africa. He urged the government to set in motion a process that would enable all stakeholders on the international trade value chain in Nigeria to quickly review the text of the draft AfCFTA agreement and come up with comments on areas that are not in the best interest of the Nigerian economy and sectors; “Consider tariff lines rates along the line of efficiency, sectoral and sub-sectoral preferences that would be most beneficial to Nigerian businesses under the AfCFTA dispensation,” he stated. – polony, followed by Vienna sausages and other “cold meat” manufactured by Enterprise Corporation Food Facility and Rainbow Chicken Limited in Polokwane, South Africa. However, NAFDAC has strengthened surveillance to prevent importation of contaminated processed meat products produced by Enterprise Corporation and Rainbow Chicken Limited, South Africa. The Agency has also strengthened surveillance on wholesale and retail outlets to seize and sanction any organisation in possession of meat products produced by these companies. “All importers are warned to desist from importing processed meat products produced by Enterprise Corporation and Rainbow Chicken Limited, South Africa.
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